Income Taxes

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



	2015			2014			2013
	(in thousands)
Current income tax provision:
Federal	$	12,460		$	9,628		$	7,008
State	4,144			3,466			2,329
Total current income tax provision	16,604			13,094			9,337
Deferred income tax provision (benefit):
Federal	(887		)	(1,789		)	(3,129		)
State	(508		)	(586		)	(621		)
Total deferred income tax provision (benefit)	(1,395		)	(2,375		)	(3,750		)
Total income tax provision	$	15,209		$	10,719		$	5,587

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



	2015			2014			2013
	(in thousands)
Statutory federal income tax provision	$	14,253		$	9,459		$	5,103
California franchise tax, net of federal income tax effect	2,886			1,926			1,027
Cash surrender life insurance	(483		)	(324		)	(277		)
Tax exempt interest	(742		)	(614		)	(718		)
Merger costs	447			410			164
LIHTC investments	(871		)	(728		)	(237		)
Other	(281		)	590			525
Total income tax provision	$	15,209		$	10,719		$	5,587

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:



	2015			2014			2013
	(in thousands)
Deferred tax assets:
Accrued expenses	$	1,717		$	1,802		$	891
Net operating loss	5,192			2,703			3,353
Allowance for loan losses, net of bad debt charge-offs	6,252			5,158			3,336
Deferred compensation	2,547			1,750			1,896
State taxes	1,451			1,238			858
Depreciation	651			321			(216		)
Other-than-temporary impairment	—			—			684
Stock based compensation	639			313			273
Total deferred tax assets	18,449			13,285			11,075
Deferred tax liabilities:
Deferred FDIC gain	(1,656		)	(1,731		)	(1,944		)
Core deposit intangibles	(2,266		)	(1,518		)	(1,813		)
Unrealized (gain) loss on available for sale securities	(231		)	(362		)	2,160
Other	(2,785		)	(291		)	(1,001		)
Total deferred tax liabilities	(6,938		)	(3,902		)	(2,598		)
Net deferred tax asset	$	11,511		$	9,383		$	8,477

At December 31, 2015, there was no valuation allowance against the Company’s deferred tax asset. The Company has a net operating loss carry forward of approximately $13.0 million for federal income tax purposes which expires in 2034. In addition, the Company has a net operating loss carry forward of approximately $10.1 million for California franchise tax purposes. The net operating loss deduction for the state is scheduled to expire in 2034. Under Internal Revenue Code Section 382, which has also been adopted under California law, if during any three years 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 annual usable net operating loss carry forward for the following year is approximately $3.6 million.

As of December 31, 2015, tax years for 2012 through 2014 remain open to audit by the Internal Revenue Service and 2011 through 2014 by various state taxing agencies.