Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Components of federal and state income tax expense (benefit)

The components of federal and state income tax expense for the years ended December 31, 2014, 2013 and 2012 were as follows:



	2014			2013		2012
Current
Federal	$	6,956		$	5,899	$	6,247
State	2,287			1,976		1,933
Total Current	9,243			7,875		8,180
Deferred
Federal	(17		)	750		219
State	28			221		11
Total Deferred	11			971		230
Total	$	9,254		$	8,846	$	8,410

Effective income tax rate reconciliation

The principal reasons for the difference are as follows:



	2014			2013			2012
Expected income taxes	$	8,650		$	8,249		$	7,852
Effects of:
Tax-exempt income	(954		)	(877		)	(761		)
Nondeductible interest expense	10			9			14
State taxes, net of federal taxes	1,505			1,429			1,264
Other items	43			36			41
Total	$	9,254		$	8,846		$	8,410

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, 2014 and 2013 are presented below:



	2014		2013
Deferred tax assets:
Allowance for loan losses	$	5,522	$	5,348
Available-for-sale investment securities	559		5,353
Deferred compensation	1,108		1,070
Supplemental retirement	317		351
Core deposit premium and other intangible assets	341		255
Interest on non-accrual loans	35		31
Other-than-temporary impairment on securities	449		449
Other	412		407
Total gross deferred tax assets	8,743		13,264
Deferred tax liabilities:
Deferred loan costs	110		110
Goodwill	3,441		3,004
Prepaid expenses	296		258
FHLB stock dividend	285		285
Depreciation	600		731
Purchase accounting	—		66
Accumulated accretion	39		33
Total gross deferred tax liabilities	4,771		4,487
Net deferred tax assets	$	3,972	$	8,777