Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Components of Income Tax Expense (Benefit)

The components of applicable income tax expense for the years ended December 31, 2016, 2015 and 2014, are as follows:



Dollars in thousands	2016			2015		2014
Current
Federal	$	7,738		$	6,219	$	3,380
State	627			484		294
	8,365			6,703		3,674
Deferred
Federal	(353		)	165		920
State	(4		)	25		84
	(357		)	190		1,004
Total	$	8,008		$	6,893	$	4,678

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, 2016, 2015 and 2014 is as follows:



	2016					2015					2014
Dollars in thousands	Amount			Percent		Amount			Percent		Amount			Percent
Computed tax at applicable statutory rate	$	8,857		35		$	8,048		35		$	5,612		35
Increase (decrease) in taxes
resulting from:
Tax-exempt interest
and dividends, net	(1,080		)	(4	)	(1,047		)	(4	)	(996		)	(6	)
State income taxes, net
of Federal income tax benefit	405			2		331			1		245			1
Non-deductible merger-related expenses	108			—		—			—		—			—
Low-income housing and
rehabilitation tax credits	(55		)	—		—			—		—			—
Other, net	(227		)	(1	)	(439		)	(2	)	(183		)	(1	)
Applicable income taxes	$	8,008		32		$	6,893		30		$	4,678		29

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, 2016 and 2015, are as follows:



Dollars in thousands	2016		2015
Deferred tax assets
Allowance for loan losses	$	4,320	$	4,245
Depreciation	97		168
Foreclosed properties	4,184		4,506
Deferred revenue	38		—
Deferred compensation	3,118		2,554
Other deferred costs and accrued expenses	440		387
Other-than-temporarily impaired securities	257		257
Net unrealized loss on securities available for sale	208		—
Net unrealized loss on interest rate swaps	1,706		1,876
NOL and tax credit carryforwards	—		25
Total	14,368		14,018
Deferred tax liabilities
Accretion on tax-exempt securities	—		3
Net unrealized gain on securities available for sale	—		1,609
Purchase accounting adjustments and goodwill	701		743
Total	701		2,355
Net deferred tax assets	$	13,667	$	11,663