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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income tax expense applicable to income for the years ended December 31, 2015, 2014 and 2013 consists of the following:
|  | Year Ended December 31,
|  | 2015 |  | 2014 |  | 2013
|  | (In Thousands)
Current: |  |  |  |  |  |
Federal |  | $ | 5,881 |  |  | $ | 4,235 |  |  | $ | 3,605 |
State |  | 1,338 |  |  | 1,459 |  |  | 1,356 |
Current tax expense |  | 7,219 |  |  | 5,694 |  |  | 4,961 |
Deferred: |  |  |  |  |  |
Federal |  | 1,036 |  |  | 1,299 |  |  | 2,257 |
State |  | 122 |  |  | 90 |  |  | 171 |
Deferred tax expense (benefit) |  | 1,158 |  |  | 1,389 |  |  | 2,428 |
Total income tax expense |  | $ | 8,377 |  |  | $ | 7,083 |  |  | $ | 7,389 |
Deferred income tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax basis. Net deferred tax assets are included in other assets in the consolidated balance sheets. The significant components of the Corporation’s deferred tax assets and liabilities are as follows:
|  | At December 31,
|  | 2015 |  | 2014
|  | (In Thousands)
Deferred tax assets: |  |  |  |
Allowance for loan and lease losses |  | $ | 6,422 |  |  | $ | 5,501 |
Excess book basis over tax basis for net assets acquired |  | 697 |  |  | 2,082 |
Deferred compensation |  | 1,305 |  |  | 1,332 |
State net operating loss carryforwards |  | 666 |  |  | 694 |
Write-down of foreclosed properties |  | 14 |  |  | 1 |
Non-accrual loan interest |  | 813 |  |  | 751 |
Capital loss carryforwards |  | 33 |  |  | 32 |
Unrealized loss on securities |  | 50 |  |  | — |
Other |  | 328 |  |  | 305 |
Total deferred tax assets before valuation allowance |  | 10,328 |  |  | 10,698 |
Valuation allowance |  | (68 | ) |  | (68 | )
Total deferred tax assets |  | 10,260 |  |  | 10,630 |
Deferred tax liabilities: |  |  |  |
Leasing and fixed asset activities |  | 6,878 |  |  | 6,393 |
Loan servicing asset |  | 612 |  |  | 364 |
Unrealized gain on securities |  | — |  |  | 137 |
Other |  | 137 |  |  | 133 |
Total deferred tax liabilities |  | 7,627 |  |  | 7,027 |
Net deferred tax asset |  | $ | 2,633 |  |  | $ | 3,603 |
The tax effects of unrealized gains and losses on derivative instruments and unrealized gains and losses on securities are components of other comprehensive income. A reconciliation of the change in net deferred tax assets to deferred tax expense follows:
|  | At December 31,
|  | 2015 |  | 2014 |  | 2013
|  | (In Thousands)
Change in net deferred tax assets |  | $ | (970 | ) |  | $ | (119 | ) |  | $ | (861 | )
Deferred taxes allocated to other comprehensive income |  | (188 | ) |  | 352 |  |  | (1,567 | )
Acquired deferred tax assets |  | — |  |  | (1,622 | ) |  | — |
Deferred income tax (expense) benefit |  | $ | (1,158 | ) |  | $ | (1,389 | ) |  | $ | (2,428 | )
Realization of the deferred tax asset over time is dependent upon the Corporation generating sufficient taxable earnings in future periods. In making its determination that the realization of the deferred tax was more likely than not, the Corporation gave consideration to a number of factors including its recent earnings history, its expected earnings in the future, appropriate tax planning strategies and expiration dates associated with operating loss carry forwards. The Corporation had state net operating loss carryforwards of approximately $12.9 million and $13.4 million at December 31, 2015 and 2014, respectively, which can be used to offset future state taxable income. The carryforwards expire between 2023 and 2032. A valuation allowance has been established for the future benefits attributable to certain of the non-Wisconsin state net operating losses. The valuation allowance associated with these deferred tax assets was $68,000 as of December 31, 2015 and 2014. The Corporation believes it will be able to fully utilize its Wisconsin state net operating losses under this law and therefore no valuation allowance has been established on its Wisconsin state net operating losses. The provision for income taxes differs from that computed at the federal statutory corporate tax rate as follows:
|  | Year Ended December 31,
|  | 2015 |  | 2014 |  | 2013
|  | (Dollars In Thousands)
Income before income tax expense |  | $ | 24,891 |  |  | $ | 21,222 |  |  | $ | 21,135 |
Tax expense at statutory federal rate of 34.42% and 34% applied to income before income tax expense, respectively |  | $ | 8,568 |  |  | $ | 7,305 |  |  | $ | 7,275 |
State income tax, net of federal effect |  | 968 |  |  | 1,000 |  |  | 906 |
Tax-exempt security and loan income, net of TEFRA adjustments |  | (879 | ) |  | (736 | ) |  | (682 | )
Change in valuation allowance |  | — |  |  | (1 | ) |  | 59 |
Bank-owned life insurance |  | (330 | ) |  | (296 | ) |  | (291 | )
Non-deductible transaction costs |  | — |  |  | 124 |  |  | — |
Federal new market tax credit |  | (246 | ) |  | (375 | ) |  | — |
Other |  | 296 |  |  | 62 |  |  | 122 |
Total income tax expense |  | $ | 8,377 |  |  | $ | 7,083 |  |  | $ | 7,389 |
Effective tax rate |  | 33.65 | % |  | 33.38 | % |  | 34.96 | %
As of December 31, 2015 and 2014, the summary of all of the Corporation’s uncertain tax positions totaled $27,000 and $22,000, respectively. There were no material additions to or reductions from these uncertain tax positions for the year ended December 31, 2015. In addition, there were no settlements of uncertain tax positions. As of December 31, 2015, tax years remaining open for the State of Wisconsin tax were 2011 through 2014. Federal tax years that remained open were 2012 through 2014. As of December 31, 2015, there were no unrecognized tax benefits that are expected to significantly increase or decrease within the next twelve months.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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