| Income Taxes |
Income Taxes
The current and deferred components of income tax expense on the consolidated statements of income were as follows: | | | | | | | | | | | | | | For The Years Ended December 31, | | 2014 | | 2013 | | 2012 | Current: | |
| | |
| | |
| Federal | $ | 11,435 |
| | $ | 11,853 |
| | $ | 5,107 |
| State | 505 |
| | 400 |
| | 457 |
| | 11,940 |
| | 12,253 |
| | 5,564 |
| Deferred: | |
| | |
| | |
| Federal | (500 | ) | | (121 | ) | | 5,318 |
| Income tax expense | $ | 11,440 |
| | $ | 12,132 |
| | $ | 10,882 |
|
The income tax expense differs from the amount computed by applying the statutory federal income tax rate as a result of the following: | | | | | | | | | | | | | | For The Years Ended December 31, | | 2014 | | 2013 | | 2012 | Computed tax expense | $ | 12,604 |
| | $ | 12,220 |
| | $ | 12,008 |
| Increase (reduction) in income taxes resulting from: | |
| | |
| | |
| Tax exempt income | (704 | ) | | (510 | ) | | (623 | ) | Income from life insurance | (503 | ) | | (459 | ) | | (484 | ) | State taxes, net of federal benefit | 328 |
| | 260 |
| | 297 |
| Low income housing credits | (286 | ) | | (299 | ) | | (328 | ) | Goodwill impairment | — |
| | 991 |
| | — |
| Other | 1 |
| | (71 | ) | | 12 |
| Income tax expense | $ | 11,440 |
| | $ | 12,132 |
| | $ | 10,882 |
|
Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities: | | | | | | | | | | | | | | | | | | December 31, | | 2014 | | 2013 | | Asset | | Liability | | Asset | | Liability | Allowance for possible losses on loans | $ | 7,397 |
| | $ | — |
| | $ | 7,564 |
| | $ | — |
| Pension and other benefits | 4,018 |
| | — |
| | 3,900 |
| | — |
| Net unrealized losses on derivative instruments | 3,200 |
| | — |
| | 1,369 |
| | — |
| Net unrealized losses on postretirement plans | 1,165 |
| | — |
| | 992 |
| | — |
| Deferred compensation and benefits | 945 |
| | — |
| | 963 |
| | — |
| Purchase accounting and deposit premium | 329 |
| | — |
| | 321 |
| | — |
| Net unrealized losses on AFS securities | 172 |
| | — |
| | 4,288 |
| | — |
| Allowance for OREO valuation | 107 |
| | — |
| | 59 |
| | — |
| Allowance for OTTI of investments | 71 |
| | — |
| | 71 |
| | — |
| Depreciation | — |
| | 1,910 |
| | — |
| | 1,765 |
| Deferred loan origination fees | — |
| | 1,581 |
| | — |
| | 1,390 |
| Prepaid expenses | — |
| | 620 |
| | — |
| | 766 |
| MSRs | — |
| | 172 |
| | — |
| | 254 |
| Other | 1,313 |
| | — |
| | 695 |
| | — |
| | $ | 18,717 |
| | $ | 4,283 |
| | $ | 20,222 |
| | $ | 4,175 |
|
Deferred income taxes have been calculated using a rate of 35%. No valuation allowance established on the Company's deferred tax assets as of December 31, 2014 or 2013.
Although not currently under review, income tax returns for the years ended December 31, 2011 through 2013 are open to audit by federal and Maine authorities. If the Company, as a result of an audit, were assessed interest and penalties, the amounts would be recorded within non-interest expense on the consolidated statements of income. |