Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of components of the provision for income taxes

The components of the provision for income taxes for the years ended December 31, 2015,  2014 and 2013 are as follows:

	December 31,
	2015		2014		2013
	(Dollars in thousands)
Current income tax provision	$	13,723	$	7,970	$	7,446
Deferred income tax expense (benefit)		(3,409)		395		(540)
Total income tax provision	$	10,314	$	8,365	$	6,906

Schedule of effective income tax rate reconciliation

	December 31,
	2015		2014		2013
	(Dollars in thousands)
Current income tax provision	$	13,723	$	7,970	$	7,446
Deferred income tax expense (benefit)		(3,409)		395		(540)
Total income tax provision	$	10,314	$	8,365	$	6,906

The provision for income taxes differs from the amount computed by applying the federal income tax statutory rates of 35% to income from continuing operations for the year ended December 31, 2015,  35% for the year ended December 31, 2014 and 35% for the year ended December 31, 2013, as follows:

	December 31,
	2015		2014		2013
	(Dollars in thousands)
Taxes calculated at statutory rate	$	9,014	$	8,087	$	6,831
Increase (decrease) resulting from:
State tax expense, net of federal effect		196		209		174
Non-deductible expenses		45		35		65
Incentive stock compensation expense		31		34		5
Bank-owned life insurance income		(141)		-		-
Change in applicable statutory rate		-		-		(211)
Non-deductible acquisition related expenses		857		-		-
Other, net		312		-		42
Income tax provision—as reported	$	10,314	$	8,365	$	6,906

Schedule of significant deferred tax assets and liabilities

	December 31,
	2015		2014		2013
	(Dollars in thousands)
Taxes calculated at statutory rate	$	9,014	$	8,087	$	6,831
Increase (decrease) resulting from:
State tax expense, net of federal effect		196		209		174
Non-deductible expenses		45		35		65
Incentive stock compensation expense		31		34		5
Bank-owned life insurance income		(141)		-		-
Change in applicable statutory rate		-		-		(211)
Non-deductible acquisition related expenses		857		-		-
Other, net		312		-		42
Income tax provision—as reported	$	10,314	$	8,365	$	6,906

Significant deferred tax assets and liabilities at the dates indicated were as follows:

	December 31,
	2015		2014
	(Dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	11,531	$	5,462
Acquired loan valuation allowance		8,883		1,415
Real estate acquired by foreclosure write-downs		2,695		609
Net operating loss carryforward		1,755		1,862
Acquired deposit valuation allowance		1,631		392
Nonqualified stock options		1,464		1,229
Pre-opening expenses		144		167
Other		1,031		437
Total deferred tax assets		29,134		11,573
Deferred tax liabilities:
Goodwill and core deposit intangibles		4,532		1,630
Acquired subordinated debentures valuation allowance		3,143		-
Acquired investments valuation allowance		688		-
Deferred loan costs		603		658
Depreciable assets		381		239
Unrealized gain on available-for-sale securities		225		572
Other		52		6
Total deferred tax liabilities		9,624		3,105
Net deferred tax asset	$	19,510	$	8,468

Summary of uncertain tax positions

The uncertain tax position as of the dates indicated were as follows:

	2015		2014		2013
	(Dollars in thousands)
Unrecognized tax benefits - January 1	$	-	$	-	$	-
Gross increases - tax positions in current period		1,625		-		-
Unrecognized tax benefits - December 31	$	1,625	$	-	$	-