Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Net deferred tax assets consist of the following components as of December 31, 2016 and 2015:



(Dollars in thousands)	2016		2015
Deferred tax assets:
Allowance for loan losses	$	3,877	$	3,756
Deferred compensation	687		647
Interest rate swap	67		99
Other real estate owned	288		257
Securities available for sale	654		—
Property and equipment	—		49
Other	1,427		2,028
Total deferred tax assets	$	7,000	$	6,836
Deferred tax liabilities:
Deferred loan costs, net	$	526	$	317
Securities available for sale	—		965
Property and equipment	79		—
Total deferred tax liabilities	$	605	$	1,282
Net deferred tax assets	$	6,395	$	5,554

Provision for income taxes charged to operations

The provision for income taxes charged to operations for the years ended December 31, 2016, 2015, and 2014, consists of the following:



(Dollars in thousands)	2016		2015		2014
Current tax expense	$	2,067	$	2,606	$	1,160
Deferred tax expense	746		109		1,181
Total income tax expense	$	2,813	$	2,715	$	2,341

Income tax provision differs from federal income tax rate to pretax income

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2016, 2015, and 2014, due to the following:



(Dollars in thousands)	2016			2015			2014
Computed "expected" tax expense	$	3,698		$	3,585		$	3,374
Increase (decrease) in income taxes resulting from:
Tax-exempt income	(796		)	(829		)	(959		)
Low income housing tax credits	(408		)	(120		)	(211		)
Merger related expenses	267			—			—
Other, net	52			79			137
	$	2,813		$	2,715		$	2,341