Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Summary of Company's net deferred tax asset

	December 31,
	2016		2015
		(dollars in thousands)
Deferred tax assets
Allowance for loan and lease losses	$	8,371	$	8,551
Net operating loss carryforwards		4,851		7,682
Deferred compensation		1,780		1,608
Investment securities valuation		1,649		–
Forgone interest on non-accrual loans		1,498		1,472
Accruals		1,116		942
Deferred income		1,036		1,034
Alternative minimum tax credits		846		2,491
Fair value adjustment for acquired assets and liabilities		216		727
Total deferred tax assets		21,363		24,507
Deferred tax liabilities
State deferred tax		1,234		1,656
Deferred costs, prepaids and FHLB advances		584		573
Premises and equipment		400		638
Investment securities valuation		–		368
Total deferred tax liabilities		2,218		3,235
Net deferred tax assets	$	19,145	$	21,272

Summary for the current and deferred amounts of the Company's income tax provision

	For the Years Ended December 31,
	2016		2015		2014
		(dollars in thousands)
Current:
Federal	$	5,156	$	3,351	$	141
State		1,969		1,544		253
Total current provision		7,125		4,895		394
Deferred:
Federal	$	2,792	$	3,250	$	3,116
State		1,160		737		1,239
Total deferred provision		3,952		3,987		4,355
Total provision	$	11,077	$	8,882	$	4,749

Schedule of reconciliation of the statutory federal income tax expense rate to the Company's effective income tax expense and rate

	For the Years Ended December 31,
	2016						2015						2014
	Amount			Percent			Amount			Percent			Amount			Percent
		(dollars in thousands)
Tax provision at federal statutory tax rate	$	9,803			35.0		$	8,481			35.0		$	4,800			35.0
State income taxes, net of federal income tax benefit		2,004			7.2			1,568			6.5			970			7.1
Tax exempt income, net of interest expense		(987	)		(3.5	)		(962	)		(4.0	)		(826	)		(6.0	)
Bank owned life insurance		(303	)		(1.1	)		(224	)		(0.9	)		(217	)		(1.6	)
Merger and integration		294			1.1			–			–			61			0.4
Other, net		266			0.9			19			0.1			(39	)		(0.3	)
Total provision for income taxes	$	11,077			39.6		$	8,882			36.7		$	4,749			34.6