Note 8 - Income Taxes
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
(8)
Income Taxes
 
The components of income tax expense for the years ended
December
31,
2016,
2015
and
2014
were as follows:
 
   
2016
    
2015
    
2014
  
Current
   $
8,500
     
3,836
     
2,607
 
Deferred
    
257
     
874
     
28
 
Expense of operating loss carryforwards
    
637
     
766
     
536
 
Change in valuation allowance
    
-
     
-
     
(12
 )
Total income tax expense
   $
9,394
     
5,476
     
3,159
 
 
The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended
December
31,
2016,
2015
and
2014
is as follows:
 
 
   
2016
    
2015
    
2014
  
Pre-tax income at statutory rate
   $
10,084
     
5,831
     
3,085
 
State income tax expense, net
    
727
     
416
     
224
 
Cash surrender value income
    
(284
 )    
(147
 )    
(83
 )
Tax-exempt interest
    
(295
 )    
(168
 )    
(65
 )
Noncontrolling interest
    
(547
 )    
(703
 )    
(174
 )
Merger-related expenses
    
108
     
114
     
111
 
Change in valuation allowance
    
-
     
-
     
(12
 )
Other
    
(399
 )    
133
     
73
 
Total income tax expense
   $
9,394
     
5,476
     
3,159
 
 
 
The following summarizes the components of deferred taxes at
December
31,
2016
and
2015.
 
 
   
2016
    
2015
  
Deferred income tax assets:
                
Allowance for loan losses
   $
7,318
     
7,252
 
Accrued expenses
    
6
     
106
 
Operating loss carryforwards and credits
    
5,611
     
6,159
 
Premises and equipment
    
733
     
826
 
Non-accrual interest income
    
91
     
104
 
Stock-based compensation
    
1,118
     
1,037
 
Other real estate
    
-
     
38
 
Deferred compensation
    
430
     
95
 
Goodwill and intangible assets
    
206
     
235
 
Other
   
233
     
540
 
Total gross deferred income tax assets
    
15,746
     
16,392
 
                 
Deferred income tax liabilities:
                
Unrealized gains on investment securities available-for-sale
    
135
     
295
 
Prepaid expenses
    
475
     
423
 
Core deposit intangible
    
772
     
1,060
 
Derivatives
    
80
     
-
 
Investment in pass-through entity
    
797
     
424
 
Total gross deferred income tax liabilities
    
2,259
     
2,202
 
Net deferred income tax assets
   $
13,487
     
14,190
 
 
As of
December
31,
2016,
the Company has net operating loss carryforwards totaling approximately
$15,083,000
for federal taxes and
$9,291,000
for state taxes that will begin to expire in
2030,
unless previously utilized. The federal operating loss carryforwards are subject to limitation under Section
382
of the Internal Revenue Code of
1986,
as amended (the “Code”), but are expected to be utilized within the carryforward period. The state net operating loss carryforwards are also subject to limitation under Section
382
of the Code. These net operating losses are also expected to be utilized during the carryforward period.