Note 12: Income Taxes The provision for income taxes includes these components: | ($ in thousands) | | For The Year Ended
December 31, | | | | | 2016 | | | 2015 | | | Taxes currently payable | | $ | 3,379 | | | $ | 1,885 | | | Deferred provision | | | 738 | | | | 1,519 | | | Income tax expense | | $ | 4,117 | | | $ | 3,404 | |
A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below: | ($ in thousands) | | For The Year Ended
December 31, | | | | | 2016 | | | 2015 | | | Computed at the statutory rate (34%) | | $ | 4,387 | | | $ | 3,748 | | | Increase (decrease) resulting from | | | | | | | | | | Tax exempt interest | | | (218 | ) | | | (240 | ) | | BOLI Income | | | (98 | ) | | | (99 | ) | | Other | | | 46 | | | | (5 | ) | | Actual tax expense | | $ | 4,117 | | | $ | 3,404 | |
The tax effects of temporary differences related to deferred taxes shown on the balance sheets are: | ($ in thousands) | | At December 31, | | | | | 2016 | | | 2015 | | | Deferred tax assets | | | | | | | | Allowance for loan losses | | $ | 2,627 | | | $ | 2,377 | | | Net deferred loan fees | | | 98 | | | | 104 | | | Other | | | 361 | | | | 757 | | | | | | 3,086 | | | | 3,238 | | | Deferred tax liabilities | | | | | | | | | | Depreciation | | | (1,385 | ) | | | (1,335 | ) | | Mortgage servicing rights | | | (2,930 | ) | | | (2,468 | ) | | Unrealized gains on available-for-sale
securities | | | (26 | ) | | | (335 | ) | | Purchase accounting adjustments | | | (1,659 | ) | | | (1,489 | ) | | Prepaids | | | (188 | ) | | | (285 | ) | | FHLB stock dividends | | | (466 | ) | | | (465 | ) | | | | | (6,654 | ) | | | (6,377 | ) | | Net deferred tax liability | | $ | (3,568 | ) | | $ | (3,139 | ) |
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