Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2015, 2014 and 2013, are as follows:



Dollars in thousands	2015		2014		2013
Current
Federal	$	6,219	$	3,380	$	861
State	484		294		41
	6,703		3,674		902
Deferred
Federal	165		920		1,587
State	25		84		199
	190		1,004		1,786
Total	$	6,893	$	4,678	$	2,688

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, 2015, 2014 and 2013 is as follows:



	2015					2014					2013
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,048		35		$	5,612		35		$	3,765		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(1,047		)	(4	)	(996		)	(6	)	(932		)	(9	)
State income taxes, net
of Federal income tax benefit	331			1		245			1		156			1
Other, net	(439		)	(2	)	(183		)	(1	)	(301		)	(3	)
Applicable income taxes	$	6,893		30		$	4,678		29		$	2,688		24

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, 2015 and 2014, are as follows:



Dollars in thousands	2015		2014
Deferred tax assets
Allowance for loan losses	$	4,245	$	4,128
Depreciation	168		168
Foreclosed properties	4,506		5,197
Deferred compensation	2,554		2,265
Other deferred costs and accrued expenses	387		349
Other-than-temporarily impaired securities	257		257
Net unrealized loss on interest rate swaps	1,876		1,077
NOL and tax credit carryforwards	25		37
Total	14,018		13,478
Deferred tax liabilities
Accretion on tax-exempt securities	3		8
Net unrealized gain on securities available for sale	1,609		2,297
Purchase accounting adjustments and goodwill	743		806
Total	2,355		3,111
Net deferred tax assets	$	11,663	$	10,367