11. Income Taxes

Income taxes for the years ended December 31 consisted of the following:

	2014			2013			2012
	(in thousands)
Current income tax provision:
Federal	$	9,628		$	7,008		$	6,403
State	3,466			2,329			2,026
Total current income tax provision	13,094			9,337			8,429

Deferred income tax provision (benefit):
Federal	(1,789		)	(3,129		)	1,262
State	(586		)	(621		)	298
Total deferred income tax provision (benefit)	(2,375		)	(3,750		)	1,560

Total income tax provision	$	10,719		$	5,587		$	9,989

A reconciliation from statutory federal income taxes to the Company’s effective income taxes for the years ended December 31 is as follows:

	2014			2013			2012
	(in thousands)

Statutory federal income tax provision	$	9,459		$	5,103		$	8,760
California franchise tax, net of federal income tax effect	1,926			1,027			1,842
Other, including tax exempt income	(666		)	(543		)	(613		)
Total income tax provision	$	10,719		$	5,587		$	9,989

Deferred tax assets (liabilities) were comprised of the following temporary differences between the financial statement carrying amounts and the tax basis of assets at December 31:

	2014			2013			2012
	(in thousands)
Deferred tax assets:
Accrued expenses	$	1,616		$	891		$	442
Net operating loss	2,703			3,353			3,673
Allowance for loan losses, net of bad debt charge-offs	5,158			3,336			3,390
Directors deferred compensation	1,750			1,896			—
Unrealized loss on available for sale securities	(362		)	2,160			—
State taxes	1,238			858			765
Other-than-temporary impairment	—			684			2,180
Stock based compensation	313			273			6
Total deferred tax assets	12,416			13,451			10,884
Deferred tax liabilities:
Federal Home Loan Bank stock dividends	(169		)	(306		)	(560		)
Deferred FDIC gain	(1,731		)	(1,944		)	(2,367		)
Core deposit intangibles	(1,518		)	(1,813		)	—
Depreciation	321			(216		)	(111		)
Other	(991		)	(695		)	(187		)
Total deferred tax liabilities	(4,088		)	(4,974		)	(3,997		)
Net deferred tax asset	$	8,328		$	8,477		$	6,887

At December 31, 2014, there was no valuation allowance against the Company’s deferred tax asset. The Company has a net operating loss carry forward of approximately $7.7 million for federal income tax purposes which expires in 2023. In addition, the Company has a net operating loss carry forward of approximately $162,000 for California franchise tax purposes. However, the state of California has suspended the net operating loss deduction utilization for the tax years 2010, 2011, 2012, and 2013. The net operating loss deduction for the state is now scheduled to expire in 2033. With the completion of the secondary offering in October 2003, the Company had an “ownership change” as defined under Internal Revenue Code Section 382. Under Section 382, which has also been adopted under California law, if during any three-year period there is more than a 50 percentage point change in the ownership of the Company, then the future use of any pre-change net operating losses or built-in losses of the Company are subject to an annual percentage limitation based on the value of the company at the ownership change date. The ownership change reduced the net operating loss carry forward for federal and state tax purposes. The annual usable net operating loss carry forward going forward is approximately $932,000 per year.

As of December 31, 2014, tax years for 2011 through 2013 remain open to audit by the Internal Revenue Service and 2010 through 2013 by various state taxing agencies.