INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES

Schedule of income tax expense (benefit)

Year Ended December 31	2015		2014		2013
Income tax expense
Currently payable	$	4,726	$	4,578	$	3,616
Deferred		5,697		5,950		1,589
Change in valuation allowance		(190)		(2,749)		114
Total income tax expense	$	10,233	$	7,779	$	5,319

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	$	16,021		$	12,871		$	11,082
Tax exempt interest		(4,676)			(4,425)			(4,529)
Effect of state income taxes		169			3,199			111
Non-deductible expenses		193			338			504
Tax exempt income on life insurance		(537)			(454)			(482)
Tax credits		(501)			(369)			(757)
Change in valuation allowance		(361)			(2,749)			114
Captive insurance premiums		(190)			(371)			(91)
Other		115			(261)			(633)
Income tax expense	$	10,233		$	7,779		$	5,319

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

December 31	2015		2014
Assets
Allowance for loan losses	$	8,173	$	8,425
State net operating loss carryforward		3,543		3,708
Credit carryforwards		8,401		9,953
OREO write-downs		514		559
Other		3,206		3,476
Total assets		23,837		26,121
Liabilities
Depreciation		(6,864)		(3,736)
Mortgage servicing rights		(2,209)		(2,044)
Unrealized gain on securities AFS		(6,798)		(7,065)
Intangibles		(3,301)		(3,152)
Deferred loan fees/costs		(1,901)		(1,691)
Other		(1,902)		(2,141)
Total liabilities		(22,975)		(19,829)
Less: Valuation allowance		(3,091)		(3,281)
Net deferred tax asset/(liability)	$	(2,229)	$	3,011