Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components Of The Provision For Income Taxes

Components of the provision for income taxes are as follows:



(In Thousands)	Current Tax Expense (Benefit)		Deferred Expense(Benefit)		Total Expense
2014:
Federal		$5,448		$39		$5,487
State	1,337		12		1,349
Total		$6,785		$51		$6,836
2013:
Federal		$3,227		$1,034		$4,261
State	835		181		1,016
Total		$4,062		$1,215		$5,277
2012:
Federal		$4,169		$750		$4,919
State	1,106		131		1,237
Total		$5,275		$881		$6,156

Reconciliation Of Actual To Expected Tax Expense

The actual expense for 2014, 2013, and 2012, differs from the “expected” tax expense (computed by applying the U.S. Federal Statutory Tax Rate of 35% for the year ended December 31, 2014, 2013, and 2012) as follows:



(In Thousands)	2014			2013			2012
Computed “expected” income tax expense		$8,646			$6,192			$6,864
State income taxes, net	886			660			803
Non-deductible merger expenses	130			—			—
Tax-exempt interest on investment securities	(415		)	(461		)	(476		)
Tax-exempt gain on purchase of mortgage affiliate	(1,050		)	—			—
Low income housing credits	(1,298		)	(955		)	(896		)
Other	(63		)	(159		)	(139		)
Total		$6,836			$5,277			$6,156

Components Of Net Deferred Tax Asset

The components of the net deferred tax asset are as follows:



(In Thousands)	2014			2013			2012
Deferred Tax Asset:
Allowance for loan losses		$5,900			$6,543			$6,650
Loan fees, net of costs	1,871			1,653			1,411
Depreciation and amortization	(60		)	446			537
Other real estate owned	50			174			1,381
Deferred compensation	1,691			1,665			1,973
Net operating loss carryforwards	589			—			—
Equity compensation	502			507			502
Loan discount	1,003			—			—
Fair market value adjustment on certificates of deposit	321			—			—
Other	1,637			1,122			1,029
Total Deferred Tax Asset		$13,504			$12,110			$13,483

Deferred Tax Liability:
Unrealized gain on available-for-sale investment securities		($173	)		($451	)		($955	)
Intangible amortization	(2,206		)	(1,949		)	(1,807		)
Other	(1,036		)	(934		)	(730		)
Total Deferred Tax Liability		($3,415	)		($3,334	)		($3,492	)
Net Deferred Tax Asset		$10,089			$8,776			$9,991