Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes [Abstract]

Income Taxes

NOTE 16 – Income Taxes

The components of income tax expense were as follows:

	For the years ended December 31,
(dollars in thousands)	2016	2015	2014
Current income taxes:
Federal	$  6,429	6,184	4,238
State	548	441	297
Total current tax expense	6,977	6,625	4,535
Deferred income tax expense (benefit)	356	(1,256)	(1,422)
Income tax expense	$  7,333	5,369	3,113

The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:

	For the years ended December 31,
(dollars in thousands)	2016	2015	2014
Tax expense at statutory rate	$  7,129	5,438	3,311
Effect of state income taxes, net of federal benefit	356	287	196
Exempt income	(162)	(151)	(170)
Other	10	(205)	(224)
Income tax expense	$  7,333	5,369	3,113

The components of the deferred tax assets and liabilities are as follows:

	December 31,
(dollars in thousands)	2016	2015
Deferred tax assets:
Allowance for loan losses	$  5,199	4,770
Unrealized loss on securities available for sale	260	2
Net deferred loan fees	691	597
Interest on nonaccrual loans	-	829
Deferred compensation	1,597	1,323
Sale of real estate owned	262	531
Accrued expenses	401	166
Other	250	440
	8,660	8,658
Deferred tax liabilities:
Property and equipment	1,467	1,530
Other	368	205
	1,835	1,735
Net deferred tax asset	$  6,825	6,923

The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.