Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012, are as follows:



Dollars in thousands	2014		2013		2012
Current
Federal	$	3,380	$	861	$	1,716
State	294		41		5
	3,674		902		1,721
Deferred
Federal	920		1,587		(610		)
State	84		199		108
	1,004		1,786		(502		)
Total	$	4,678	$	2,688	$	1,219

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation between the amount of reported income tax expense and the amount computed by multiplying the statutory income tax rates by book pretax income for the years ended December 31, 2014, 2013 and 2012 is as follows:



	2014					2013					2012
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	5,612		35		$	3,765		35		$	2,426		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(996		)	(6	)	(932		)	(9	)	(1,019		)	(15	)
State income taxes, net
of Federal income tax benefit	245			1		156			1		74			1
Other, net	(183		)	(1	)	(301		)	(3	)	(262		)	(4	)
Applicable income taxes	$	4,678		29		$	2,688		24		$	1,219		17

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which give rise to our deferred tax assets and liabilities as of December 31, 2014 and 2013, are as follows:



Dollars in thousands	2014		2013
Deferred tax assets
Allowance for loan losses	$	4,128	$	4,681
Depreciation	168		135
Foreclosed properties	5,197		4,928
Deferred compensation	2,265		2,006
Other deferred costs and accrued expenses	349		371
Other-than-temporarily impaired securities	257		931
Net unrealized loss on securities available for sale	—		308
Net unrealized loss on interest rate swaps	1,077		—
NOL and tax credit carryforwards	37		404
Total	13,478		13,764
Deferred tax liabilities
Accretion on tax-exempt securities	8		6
Net unrealized gain on securities available for sale	2,297		—
Net unrealized gain on interest rate swaps	—		297
Purchase accounting adjustments and goodwill	806		869
Total	3,111		1,172
Net deferred tax assets	$	10,367	$	12,592