INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2013

INCOME TAX

Schedule of income tax expense (benefit)

Year Ended December 31	2013		2012			2011
Income tax expense
Currently payable	$	3,616	$	4,419		$	3,746
Deferred		1,589		1,731			(1,165	)
Change in valuation allowance		114		(123	)		1,157
Total income tax expense	$	5,319	$	6,027		$	3,738

Schedule of differences between effective tax rates and the federal statutory rate applied to income before income taxes

Federal statutory income tax rate		35	%		35	%		35	%
Federal statutory income tax	$	11,082		$	11,650		$	9,643
Tax exempt interest		(4,529	)		(4,527	)		(4,631	)
Effect of state income taxes		111			192			72
Non-deductible expenses		504			349			163
Tax exempt income on life insurance		(482	)		(422	)		(469	)
Tax credits		(757	)		(861	)		(898	)
Change in valuation allowance		114			(123	)		1,157
Captive insurance premiums		(91	)		—			—
Other		(633	)		(231	)		(1,299	)
Income tax expense	$	5,319		$	6,027		$	3,738

Schedule of components of the net deferred tax asset (liability)

December 31	2013			2012
Assets
Allowance for loan losses	$	10,717		$	12,427
State net operating loss carryforward		6,357			5,898
Credit carryforwards		9,987			8,595
OREO write-downs		884			953
Other		2,755			2,765
Total assets		30,700			30,638
Liabilities
Depreciation		(3,639	)		(3,664	)
Mortgage servicing rights		(2,046	)		(1,722	)
Unrealized gain on securities AFS		(611	)		(13,854	)
Intangibles		(2,197	)		(1,085	)
Deferred loan fees/costs		(1,513	)		(1,241	)
Other		(1,290	)		(1,322	)
Total liabilities		(11,296	)		(22,888	)
Less: Valuation allowance		(6,030	)		(5,916	)
Net deferred tax asset	$	13,374		$	1,834