Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Components of federal and state income tax expense (benefit)

The components of federal and state income tax expense for the years ended December 31, 2015, 2014 and 2013 were as follows:



	2015			2014			2013
Current
Federal	$	7,357		$	6,956		$	5,899
State	1,841			2,287			1,976
Total Current	9,198			9,243			7,875
Deferred
Federal	(84		)	(17		)	750
State	104			28			221
Total Deferred	20			11			971
Total	$	9,218		$	9,254		$	8,846

Effective income tax rate reconciliation

The principal reasons for the difference are as follows:



	2015			2014			2013
Expected income taxes	$	9,006		$	8,650		$	8,249
Effects of:
Tax-exempt income	(1,103		)	(954		)	(877		)
Nondeductible interest expense	11			10			9
State taxes, net of federal taxes	1,264			1,505			1,429
Other items	41			43			36
Effect of marginal tax rate	(1		)	—			—
Total	$	9,218		$	9,254		$	8,846

Deferred tax assets and deferred tax liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below:



	2015		2014
Deferred tax assets:
Allowance for loan losses	$	5,735	$	5,522
Available-for-sale investment securities	—		559
Deferred compensation	1,046		1,108
Supplemental retirement	281		317
Core deposit premium and other intangible assets	400		173
Other-than-temporary impairment on securities	438		449
Stock Compensation Expense	197		183
Deferred Revenue	98		127
Acquisition Costs	430		168
Other	155		137
Total gross deferred tax assets	8,780		8,743
Deferred tax liabilities:
Deferred loan costs	133		110
Intangibles amortization	3,791		3,441
Prepaid expenses	340		296
FHLB stock dividend	278		285
Depreciation	766		600
Purchase accounting	7		—
Accumulated accretion	72		39
Available-for-sale investment securities	462		—
Total gross deferred tax liabilities	5,849		4,771
Net deferred tax assets	$	2,931	$	3,972