Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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,
	2014		2013		2012
	(Dollars in Thousands)
Current – federal	$	10,499	$	5,237	$	4,732
Current - state		467		505		28
Deferred - federal		6,516		3,543		2,525

	$	17,482	$	9,285	$	7,285

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,
		2014		2013		2012
		(Dollars in Thousands)
Tax at federal income tax rate	$	19,672	$	10,256	$	7,602
Change resulting from:
Tax-exempt interest		(1,647)		(841)		(675)
Increase in cash value of bank owned life insurance		(568)		(446)		(34)
Other		25		316		392

Provision for income taxes	$	17,482	$	9,285	$	7,285

Components of Deferred Income Taxes

The components of deferred income taxes are as follows:


	December 31,
	2014		2013
	(Dollars in Thousands)
Deferred tax assets:
Allowance for loan losses	$	7,405	$	7,832
Deferred compensation		787		550
Deferred gain on interest rate swap		477		573
Unrealized loss on interest rate swap		460		130
Unrealized loss on securities available for sale		-		911
Nonaccrual interest		153		323
Purchase accounting adjustments		12,380		20,334
Other real estate owned		7,706		1,855
Net operating loss tax carryforward		12,146		6,074
Capitalized costs, accrued expenses and other		871		1,976

		42,385		40,558

Deferred tax liabilities:
Depreciation and amortization		4,821		4,355
Intangible assets		802		-
Purchase accounting adjustments		7,159		7,534
Deferred gain on FDIC-assisted transactions		8,809		12,218
Unrealized gain on securities available for sale		3,010		-

		24,601		24,107

Net deferred tax asset	$	17,784	$	16,451