INCOME TAXES

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands):



	2015		2014
Deferred tax assets:
Allowance for loan losses	$	7,750	$	5,593
Alternative minimum tax credit	—		388
Other	1,118		1,914
Total deferred tax assets	8,868		7,895
Deferred tax liabilities:
Premises and equipment	3,634		4,336
Goodwill	1,446		1,035
FHLB stock dividends	70		65
Unrealized gains on securities	274		1,538
Other	1,272		1,798
Total deferred tax liabilities	6,696		8,772
Net deferred tax asset (liability)	$	2,172	$	(877	)

Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes that it is more likely than not that it will realize the benefits of these deductible differences existing at December 31, 2015. Therefore, no valuation allowance is necessary at this time. The net deferred tax asset for 2015 is included in other assets on the consolidated balance sheet. The net deferred tax liability for 2014 is included in other liabilities on the consolidated balance sheet.

Components of income tax expense are as follows (in thousands):



	2015			2014			2013
Current	$	6,368		$	8,847		$	3,323
Deferred (benefit) expense	(1,785		)	(1,489		)	2,828
Total income tax expense	$	4,583		$	7,358		$	6,151

The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% on pre-tax income as follows (in thousands):



	December 31,
	2015			2014			2013
Taxes calculated at statutory rate	$	5,460		$	9,264		$	7,114
Increase (decrease) resulting from:
Tax-exempt interest, net	(766		)	(923		)	(1,095		)
Executive officer life insurance proceeds	—			(1,050		)	—
Other	(111		)	67			132
	$	4,583		$	7,358		$	6,151

The Company’s federal income tax returns are open and subject to examination from the 2012 tax return year and forward. The various state income and franchise tax returns are generally open from the 2012 and later tax return years based on individual state statutes of limitation. We are not currently under examination by federal or state tax authorities for the 2012, 2013, or 2014 tax years.