Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Summary of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) are as follows for the years ended December 31:

(in thousands)

 

2016

 

 

2015

 

 

2014

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

  Federal

 

$

12,194

 

 

$

9,060

 

 

$

7,068

 

  State

 

 

1,850

 

 

 

1,452

 

 

 

1,087

 

 

 

 

14,044

 

 

 

10,512

 

 

 

8,155

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

  Federal

 

 

(670

)

 

 

(217

)

 

 

78

 

  State

 

 

(101

)

 

 

(33

)

 

 

13

 

Deferred

 

 

(771

)

 

 

(250

)

 

 

91

 

Income tax expense

 

$

13,273

 

 

$

10,262

 

 

$

8,246

 

 
Summary of Combined Federal and State Income Tax Expense Differs from Federal Statutory Corporate Tax Rate

The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows:

 

 

2016

 

 

2015

 

 

2014

 

Federal statutory rate

 

 

35.0

%

 

 

35.0

%

 

 

35.0

%

State taxes, net of federal income tax benefit

 

 

3.1

%

 

 

3.1

%

 

 

3.1

%

Tax-exempt interest and income

 

 

(2.1

)%

 

 

(2.4

)%

 

 

(2.9

)%

Equity awards expense

 

 

(0.3

)%

 

 

-

 

 

 

-

 

Other, net

 

 

0.3

%

 

 

(1.4

)%

 

 

0.4

%

Effective tax rate

 

 

36.0

%

 

 

34.3

%

 

 

35.6

%

 
Summary of Components of Net Deferred Income Tax Assets

The nature and components of the Company’s net deferred income tax assets are as follows as of December 31:

(in thousands)

 

2016

 

 

2015

 

Deferred income tax assets:

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

6,724

 

 

$

6,565

 

Deferred loan fees and costs

 

 

1,594

 

 

 

1,486

 

OREO reserve and other

 

 

-

 

 

 

256

 

Fair value adjustments on certificates of deposit

 

 

79

 

 

 

300

 

Deferred compensation

 

 

565

 

 

 

534

 

Unrealized loss on securities

 

 

626

 

 

 

203

 

State franchise taxes

 

 

630

 

 

 

500

 

Other

 

 

563

 

 

 

527

 

 

 

 

10,781

 

 

 

10,371

 

 

 

 

 

 

 

 

 

 

Deferred income tax liabilities:

 

 

 

 

 

 

 

 

FHLB dividends

 

 

241

 

 

 

241

 

Mortgage servicing rights

 

 

328

 

 

 

375

 

Basis difference in premises, equipment and other assets

 

 

413

 

 

 

1,149

 

 

 

 

982

 

 

 

1,765

 

Net deferred income tax assets

 

$

9,799

 

 

$

8,606