Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense in Consolidated Statements of Income

The income tax expense in the consolidated statements of income consists of the following:

	For the Years Ended December 31,
	2013		2012		2011
	(Dollars in Thousands)
Current	$	5,742	$	4,760	$	2,506
Use of operating loss carryforward		–		–		2,958
Deferred		3,543		2,525		5,092
	$	9,285	$	7,285	$	10,556

Schedule of Reconciliation of Differences in Company's Income Tax Expense

The Company’s income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows:

	For the Years Ended December 31,
	2013			2012			2011
	(Dollars in Thousands)
Tax at federal income tax rate	$	10,256		$	7,602		$	11,077
Change resulting from:
Tax-exempt interest		(841	)		(675	)		(585	)
Increase in cash value of bank owned life insurance		(446	)		(34	)		–
Other		316			392			64
Provision for income taxes	$	9,285		$	7,285		$	10,556

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:

	December 31,
	2013		2012
	(Dollars in Thousands)
Deferred tax assets:
Allowance for loan losses	$	7,832	$	8,258
Deferred compensation		550		276
Deferred gain on interest rate swap		573		686
Unrealized loss on interest rate swap		130		1,042
Unrealized loss on securities available for sale		911		–
Nonaccrual interest		323		891
Purchase accounting adjustments		26,408		–
Other real estate owned		1,855		3,803
Capitalized costs, accrued expenses and other		1,976		1,155
		40,558		16,111
Deferred tax liabilities:
Depreciation and amortization		4,355		4,758
Intangible assets		–		60
Purchase accounting adjustments		7,534		–
Deferred gain on FDIC-assisted transactions		12,218		17,256
Unrealized gain on securities available for sale		–		3,570
		24,107		25,644
Net deferred tax asset (liability)	$	16,451	$	(9,533	)