Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Taxes

Schedule of components of income tax expense (benefit)

	2016		2015		2014
Current federal	$	399	$	220	$	122
Current state		-		-		6
Deferred federal		6,824		7,023		3,120
Deferred state		1,597		1,733		4,876
Change in valuation allowance		-		-		(2,363)
Total income tax expenses	$	8,820	$	8,976	$	5,761

Schedule of components of deferred tax assets and liabilities

	2016		2015
Allowance for loan losses	$	7,057	$	7,099
Deferred compensation		735		690
Amortization of core deposit intangible		1,401		1,629
Goodwill amortization/impairment		10,127		11,623
Stock based compensation		946		814
OREO write-downs		5,110		6,917
Federal net operating loss (“NOL”) carryforward		19,362		24,105
State net operating loss (“NOL”) carryforward		7,735		8,746
Deferred tax credit		2,058		1,749
Other assets		1,199		792
Total deferred tax assets		55,730		64,164
Accumulated depreciation on premises and equipment		(681)		(601)
Mortgage servicing rights		(2,760)		(2,484)
State tax benefits		(4,127)		(4,686)
Other liabilities		(526)		(336)
Total deferred tax liabilities		(8,094)		(8,107)
Net deferred tax asset before adjustments related to other comprehensive loss		47,636		56,057
Tax effect of adjustments related to other comprehensive loss		5,828		8,495
Net deferred tax asset	$	53,464	$	64,552

Schedule of components of provision for deferred income taxes

	2016		2015		2014
Provision for loan losses	$	42	$	2,480	$	3,146
Deferred Compensation		(45)		97		1
Amortization of core deposit intangible		228		230		(203)
Stock based compensation		(132)		(151)		(80)
OREO write-downs		1,807		1,722		1,402
Federal net operating loss carryforward		4,743		2,896		1,022
State net operating loss carryforward		1,011		659		2,442
Deferred tax credit		(309)		(198)		(107)
Depreciation		80		(201)		(233)
Net premiums and discounts on securities		-		-		(8)
Mortgage servicing rights		276		164		(251)
Goodwill amortization/impairment		1,496		1,506		2,123
State tax benefits		(559)		(604)		(1,704)
Change in valuation allowance		-		-		(2,363)
Other, net		(217)		156		446
Total deferred tax expense	$	8,421	$	8,756	$	5,633

Schedule of difference between effective tax rates from federal statutory rates

Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31 due to the following:

	2016		2015		2014
Tax at statutory federal income tax rate	$	8,577	$	8,526	$	5,564
Nontaxable interest income, net of disallowed interest deduction		(347)		(253)		(233)
BOLI income		(449)		(487)		(508)
State income taxes, net of federal benefit		1,148		1,126		872
Change in valuation allowance		-		-		(2,363)
Impact of Illinois tax rate change		-		-		2,363
Other, net		(109)		64		66
Total tax at effective tax rate	$	8,820	$	8,976	$	5,761