Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Components of federal and state income tax expense (benefit)

The components of federal and state income tax expense for the years ended December 31, 2013, 2012 and 2011 were as follows:



	2013		2012		2011
Current
Federal	$	5,899	$	6,247	$	5,558
State	1,976		1,933		1,641
Total Current	7,875		8,180		7,199
Deferred
Federal	750		219		(435		)
State	221		11		(235		)
Total Deferred	971		230		(670		)
Total	$	8,846	$	8,410	$	6,529

Effective income tax rate reconciliation

The principal reasons for the difference are as follows:



	2013			2012			2011
Expected income taxes	$	8,249		$	7,852		$	6,265
Effects of:
Tax-exempt income	(877		)	(761		)	(618		)
Nondeductible interest expense	9			14			16
State taxes, net of federal taxes	1,429			1,264			914
Other items	36			41			52
Effect of marginal tax rate	—			—			(100		)
Total	$	8,846		$	8,410		$	6,529

Deferred tax assets and deferred tax liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2013 and 2012 are presented below:



	2013		2012
Deferred tax assets:
Allowance for loan losses	$	5,348	$	4,753
Available-for-sale investment securities	5,353		—
Deferred compensation	1,070		1,014
Supplemental retirement	351		365
Core deposit premium amortization	255		192
Interest on non-accrual loans	31		93
Other-than-temporary impairment on securities	449		1,610
Expense from other real estate properties held for sale	—		46
Deferred loan costs	—		96
Other	407		346
Total gross deferred tax assets	13,264		8,515
Deferred tax liabilities:
Deferred loan costs	110		—
Goodwill	3,004		2,534
Prepaid expenses	258		260
FHLB stock dividend	285		285
Depreciation	731		786
Purchase accounting	66		168
Accumulated accretion	33		87
Available-for-sale investment securities	—		2,903
Total gross deferred tax liabilities	4,487		7,023
Net deferred tax assets	$	8,777	$	1,492