INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Components of deferred tax assets and liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands):

	2013		2012
Deferred tax assets:
Allowance for loan losses	$	5,359	$	6,325
Alternative minimum tax credit		-		1,300
Other		2,193		2,575
Total deferred tax assets		7,552		10,200
Deferred tax liabilities:
Premises and equipment		5,153		4,958
FHLB stock dividends		59		57
Unrealized gains on securities		1,227		5,914
Other		1,884		1,747
Total deferred tax liabilities		8,323		12,676
Net deferred tax liability	$	771	$	2,476

Components of income tax expense

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

	2013		2012		2011
Current	$	3,323	$	2,128	$	1,055
Deferred expense (benefit)		2,828		1,651		(491	)
Total income tax expense	$	6,151	$	3,779	$	564

Income tax reconciliation

The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% for 2013 and 2012 and 34% for 2011 on pre-tax income as follows (in thousands):

	December 31,
	2013			2012			2011
Taxes calculated at statutory rate	$	7,114		$	4,697		$	1,713
Increase (decrease) resulting from:
Tax-exempt interest, net		(1,095	)		(988	)		(1,121	)
Tax credits		-			-			-
Other		132			70			(28	)
	$	6,151		$	3,779		$	564