Income Tax

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax

Note 18 – Income Tax

	December 31 2015			December 31 2014			December 31 2013
Income tax expense
Currently payable
Federal	$	5,270		$	4,710		$	3,900
State		241			(149	)		(88	)
Deferred		1,721			1,594			3,236
Total income tax expense	$	7,232		$	6,155		$	7,048
Reconciliation of federal statutory to actual tax expense
Federal statutory income tax at 35%	$	9,724		$	8,488		$	9,424
Tax exempt interest		(1,708	)		(1,628	)		(1,517	)
Tax exempt income		(488	)		(366	)		(362	)
Other tax exempt income		(199	)		(309	)		(342	)
Nondeductible and other		(97	)		(30	)		(176	)
Effect of state income taxes		—			—			21
Actual tax expense	$	7,232		$	6,155		$	7,048

	December 31 2015			December 31 2014
Assets
Allowance for loan losses	$	5,329		$	5,680
Net operating loss (from acquisitions)		1,679			3,509
Director and employee benefits		2,223			1,953
Unrealized loss on AFS securities and fair value hedge		711			588
Accrued Pension		1,725			—
Other		1,029			596
Total assets		12,696			12,326
Liabilities
Depreciation		(2,180	)		(1,563	)
Difference in expense recognition		—			—
State tax		(192	)		(126	)
Federal Home Loan Bank stock dividends		(343	)		(200	)
Difference in basis of intangible assets		(2,938	)		(2,839	)
FHLB Penalty		(123	)		(283	)
Other		(1,671	)		(1,303	)
Total liabilities		(7,447	)		(6,314	)
Net deferred tax asset	$	5,249		$	6,012

As of December 31, 2015, the Company had approximately $17.3 million of state tax loss carryforward available to offset future franchise taxable income. Also, at December 31, 2015, the Company had approximately $1.6 million of federal loss carryforward available to offset future federal income tax. The state loss carryforward began to expire in 2024. The federal loss carryforward expires in 2029. Due to these losses being incurred by Peoples, Heartland and Summit prior to the acquisitions by Horizon, the annual losses which can be used are subject to an annual limitation. Management believes that the Company will be able to utilize the benefits recorded for both state and federal loss carryforwards within the allotted time periods.

The Company files income tax returns in the U.S. federal jurisdiction. With a few exceptions, the Company is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2012.