INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

The table below summarizes significant components of income tax expense (benefit) for the periods presented.



	Year ended December 31,
	2014			2013			2012
Current tax expense:
Federal	$	305		$	—		$	69
State	—			—			—
Total current tax expense	305			—			69
Deferred tax expense (benefit):
Federal	7,924			432			(1,163		)
State	1,981			2,042			(253		)
Total deferred tax expense (benefit)	9,905			2,474			(1,416		)
Income tax expense (benefit) before change in deferred tax asset valuation allowance	10,210			2,474			(1,347		)
Change in deferred tax asset valuation allowance	(4,797		)	(460		)	(1,869		)
Income tax expense (benefit)	$	5,413		$	2,014		$	(3,216	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) is reconciled to the amount computed by applying the statutory federal income tax rate of 35 percent to net income before income taxes as follows.



	Year ended December 31,
	2014			2013			2012

Tax computed at statutory rate of 35%	$	9,491		$	2,815		$	(815	)
Effect of state income taxes	1,287			1,348			11
Change in income tax rates	(1,899		)	1,544			—
Gain on acquisition	—			(2,643		)	—
Non-taxable interest income	(437		)	(79		)	(189		)
Non-taxable bank-owned life insurance	(549		)	(348		)	(247		)
Non-deductible merger costs	1,006			309			488
Write-off of acquired net operating losses subject to Section 382 limitation	652			—			—
Change in deferred tax asset valuation allowance	(4,797		)	(460		)	(1,869		)
Other	659			(472		)	(595		)
	$	5,413		$	2,014		$	(3,216	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred taxes are summarized below.



	December 31, 2014			December 31, 2013
Deferred tax assets:
Net operating loss carryforward	$	40,073		$	32,734
Recognized built-in loss carryforward	7,580			6,570
Acquisition accounting fair value adjustments	12,229			12,330
Allowance for loan losses	2,990			2,499
Federal tax credits carryforward	3,140			1,282
Unrealized losses on securities	667			4,109
Unrealized losses on cash flow hedges	728			—
Stock-based compensation	2,094			1,808
Capitalized leases	1,167			—
Deferred compensation	3,024			117
Other	2,942			497
Total deferred tax assets	76,634			61,946
Valuation allowance	(1,185		)	(5,130		)
Net deferred tax assets	75,449			56,816
Deferred tax liabilities:
Unrealized gains on cash flow hedges	—			1,490
Premises and equipment	2,568			203
Prepaid expenses	478			256
Total deferred tax liabilities	3,046			1,949
Net deferred tax asset	$	72,403		$	54,867