Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense are summarized as follows (in thousands):

	2016			2015		2014
Current:
Federal	$	4,029		$	2,794	$	1,630
State		759			168		333
		4,788			2,962		1,963
Deferred:
Federal		(395	)		314		373
State		100			194		76
		(295	)		508		449
Total	$	4,493		$	3,470	$	2,412

Schedule of Reconciliation of Actual Income Tax Expense

A reconciliation of actual income tax expense in the financial statements to the “expected” tax expense (computed by applying the statutory federal income tax rate of 34% to income before income taxes) for the years ended December 31, 2016, 2015 and 2014 is as follows (in thousands):

	2016			2015			2014
Computed "expected" tax expense	$	4,621		$	3,750		$	2,517
State income taxes, net of effect of federal income taxes		567			239			270
Tax-exempt interest income		(394	)		(367	)		(311	)
Earnings on bank owned life insurance contracts		(204	)		(213	)		(223	)
Disallowed expenses		60			71			62
Expiration of capital loss carryforward		—			—			98
Other		(157	)		(10	)		(1	)
Total	$	4,493		$	3,470		$	2,412

Schedule of Deferred Tax Assets and Liabilities

Significant items that gave rise to deferred taxes at December 31, 2016 and 2015 were as follows (in thousands):

	December 31, 2016		December 31, 2015
Deferred tax assets:
Allowance for loan and lease losses	$	4,320	$	3,787
Depreciation		326		341
Net operating loss carryforward		1,548		1,705
Organization and preopening costs		987		1,142
Stock-based compensation		1,071		941
Acquired loans		224		401
Acquired deposits		60		109
Nonaccrual interest		39		60
Write-downs of other real estate		—		171
Accrued incentive compensation		688		694
Reserve for contingencies		1,061		462
Accrued contributions		197		140
Unrealized loss on securities available for sale		1,493		995
Unrealized loss on securities held to maturity		752		816
Cash flow hedge		588		1,209
Accrued vacation		54		53
Other		51		74
Deferred tax assets		13,459		13,100
Deferred tax liabilities:
Prepaid expenses		133		—
Goodwill		343		204
Amortization of core deposit intangible		27		47
Deferred tax liabilities		503		251
Net deferred tax asset	$	12,956	$	12,849