INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2014

INCOME TAX

Schedule of income tax expense (benefit)

Year Ended December 31	2014			2013		2012
Income tax expense
Currently payable	$	4,578		$	3,616	$	4,419
Deferred		5,950			1,589		1,731
Change in valuation allowance		(2,749	)		114		(123	)
Total income tax expense	$	7,779		$	5,319	$	6,027

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	$	12,871		$	11,082		$	11,650
Tax exempt interest		(4,425	)		(4,529	)		(4,527	)
Effect of state income taxes		3,199			111			192
Non-deductible expenses		338			504			349
Tax exempt income on life insurance		(454	)		(482	)		(422	)
Tax credits		(369	)		(757	)		(861	)
Change in valuation allowance		(2,749	)		114			(123	)
Captive insurance premiums		(371	)		(91	)		—
Other		(261	)		(633	)		(231	)
Income tax expense	$	7,779		$	5,319		$	6,027

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

December 31	2014			2013
Assets
Allowance for loan losses	$	8,425		$	10,717
State net operating loss carryforward		3,708			6,357
Credit carryforwards		9,953			9,987
OREO write-downs		559			884
Other		2,940			2,755
Total assets		25,585			30,700
Liabilities
Depreciation		(3,736	)		(3,639	)
Mortgage servicing rights		(1,932	)		(2,046	)
Unrealized gain on securities AFS		(7,065	)		(611	)
Intangibles		(2,706	)		(2,197	)
Deferred loan fees/costs		(1,691	)		(1,513	)
Other		(2,163	)		(1,290	)
Total liabilities		(19,293	)		(11,296	)
Less: Valuation allowance		(3,281	)		(6,030	)
Net deferred tax asset	$	3,011		$	13,374