Deferred Tax Assets and Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Deferred Tax Assets and Income Taxes

Summary of Company's net deferred tax asset

	December 31,
(dollar amounts in thousands)	2013		2012
Deferred tax assets
Reserves for loan losses	$	8,679	$	14,348
Forgone interest on non-accrual loans	933		884
Fixed assets	411		405
Accruals	1,025		792
Alternative minimum tax credit	2,855		2,153
Deferred income	2,190		1,838
Deferred compensation	1,603		1,477
Net operating loss carryforward	6		907
Other than temporary impairment	-		45
Investment securities valuation	2,395		-
Realized built-in loss subject to § 382	2,228		3,234
Charitable contribution	-		61
State deferred tax	961		59
Total deferred tax assets	23,286		26,203
Deferred tax liabilities
Fair value adjustment for purchased assets	330		455
Investment securities valuation	-		2,745
Deferred costs, prepaids and FHLB advances	1,332		1,070
Total deferred tax liabilities	1,662		4,270
Net deferred tax assets	$	21,624	$	21,933

Summary for the current and deferred amounts of the Company's income tax provision / (benefit)

	For The Years Ended December 31,
(dollar amounts in thousands)	2013		2012			2011
Current:
Federal	$	1,181	$	3,083		$	(524	)
State	368		1,264			504
Total current provision	1,549		4,347			(20		)
Deferred:
Federal	3,816		(455		)	2,852
State	1,632		(85		)	496
Total deferred provision / (benefit)	5,448		(540		)	3,348
Deferred Tax Valuation Allowance:
Federal	-		(3,662		)	(1,110		)
State	-		(1,943		)	(390		)
Total deferred tax valuation allowance change	-		(5,605		)	(1,500		)
Total income tax provision / (benefit)	$	6,997	$	(1,798	)	$	1,828

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

	2013					2012					2011
(dollar amounts in thousands)	Amount			Percent		Amount			Percent		Amount			Percent
Tax provision at federal statutory tax rate	$	6,243		35.0		$	3,934		35.0		$	3,344		35.0
State income taxes, net of federal income tax benefit	1,300			7.3		766			6.8		650			6.8
Change in deferred tax asset valuation allowance	-			-		(5,605		)	(49.9	)	(1,500		)	(15.7	)
Bank owned life insurance	(167		)	(0.9	)	(180		)	(1.6	)	(183		)	(1.9	)
Tax exempt income, net of interest expense	(610		)	(3.4	)	(608		)	(5.4	)	(545		)	(5.7	)
Merger and integration	271			1.5		-			-		-			-
Other, net	(40		)	(0.3	)	(105		)	(0.9	)	62			0.6
Total income tax provision / (benefit)	$	6,997		39.2		$	(1,798	)	(16.0	)	$	1,828		19.1