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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Taxes |
Income Taxes | Note 11: Income Taxes Income tax expense (benefit) for year s ending December 31, 2015, 2014 and 2013 were as follows:
|  | 2015 |  | 2014 |  | 2013
Current federal |  | $ | 220 |  | $ | 122 |  | $ | 105
Current state |  |  | - |  |  | 6 |  |  | 29
Deferred federal |  |  | 7,023 |  |  | 3,120 |  |  | 2,780
Deferred state |  |  | 1,733 |  |  | 4,876 |  |  | 989
Change in valuation allowance |  |  | - |  |  | (2,363) |  |  | (74,145)
|  | $ | 8,976 |  | $ | 5,761 |  | $ | (70,242)
The following were the components of the deferred tax assets and liabilities as of December 31, 2015 and December 31, 2014:
|  | 2015 |  | 2014
Allowance for loan losses |  | $ | 7,099 |  | $ | 9,579
Deferred compensation |  |  | 690 |  |  | 787
Amortization of core deposit |  |  | 1,629 |  |  | 1,859
Goodwill amortization/impairment |  |  | 11,623 |  |  | 13,129
Stock based compensation |  |  | 814 |  |  | 663
OREO write-downs |  |  | 6,917 |  |  | 8,639
Federal net operating loss (“NOL”) carryforward |  |  | 24,105 |  |  | 27,001
State net operating loss (“NOL”) carryforward |  |  | 8,746 |  |  | 9,405
Deferred tax credit |  |  | 1,749 |  |  | 1,551
Other assets |  |  | 792 |  |  | 1,006
Total deferred tax assets |  |  | 64,164 |  |  | 73,619
Accumulated depreciation on premises and equipment |  |  | (601) |  |  | (802)
Mortgage servicing rights |  |  | (2,484) |  |  | (2,320)
State tax benefits |  |  | (4,686) |  |  | (5,290)
Other liabilities |  |  | (336) |  |  | (394)
Total deferred tax liabilities |  |  | (8,107) |  |  | (8,806)
Net deferred tax asset before adjustments related to other comprehensive loss |  |  | 56,057 |  |  | 64,813
Tax effect of adjustments related to other comprehensive loss |  |  | 8,495 |  |  | 5,328
Net deferred tax asset |  | $ | 64,552 |  | $ | 70,141
At December 31, 2015, the Company had a $68.9 million federal net operating loss carryforward of which, $13.6 million expires in 2030, $31.4 million expires in 2031, $8.6 million expires in 2032, and $15.3 million expires in 2033. The Company had a $112.9 million state net operating loss carryforward of which, $17.2 million expires in 2021, and $95.7 million expires in 2025. In addition, the Company had a $1.7 million alternative minimum tax credit subject to indefinite carryforward. Included in the tax effect of adjustments related to other comprehensive loss above are net unrealized losses on held-to-maturity securities that were transferred from available-for-sale securities of $2.4 million and $2.8 million as of December 31, 2015 and December 31, 2014, respectively. The components of the provision for deferred income tax expense (benefit) for the years ending December 31 were as follows:
| 2015 |  | 2014 |  | 2013
Provision for loan losses | $ | 2,480 |  | $ | 3,146 |  | $ | 5,511
Deferred Compensation |  | 97 |  |  | 1 |  |  | (109)
Amortization of core deposit |  | 230 |  |  | (203) |  |  | (691)
Stock based compensation |  | (151) |  |  | (80) |  |  | 202
OREO write-downs |  | 1,722 |  |  | 1,402 |  |  | 6,591
Federal net operating loss carryforward |  | 2,896 |  |  | 1,022 |  |  | (7,287)
State net operating loss carryforward |  | 659 |  |  | 2,442 |  |  | (1,661)
Deferred tax credit |  | (198) |  |  | (107) |  |  | -
Depreciation |  | (201) |  |  | (233) |  |  | (28)
Net premiums and discounts on securities |  | - |  |  | (8) |  |  | (114)
Mortgage servicing rights |  | 164 |  |  | (251) |  |  | 752
Goodwill amortization/impairment |  | 1,506 |  |  | 2,123 |  |  | 1,544
State tax benefits |  | (604) |  |  | (1,704) |  |  | (321)
Change in valuation allowance |  | - |  |  | (2,363) |  |  | (74,145)
Other, net |  | 156 |  |  | 446 |  |  | (620)
Total deferred tax expense | $ | 8,756 |  | $ | 5,633 |  | $ | (70,376)
Effective tax rates differ from federal statutory rates applied to financial statement income (loss) for the years ended December 31 due to the following:
|  | 2015 |  | 2014 |  | 2013
Tax at statutory federal income tax rate |  | $ | 8,526 |  | $ | 5,564 |  | $ | 4,145
Nontaxable interest income, net of disallowed interest deduction |  |  | (253) |  |  | (233) |  |  | (245)
BOLI income |  |  | (487) |  |  | (508) |  |  | (694)
State income taxes, net of federal benefit |  |  | 1,126 |  |  | 872 |  |  | 662
Change in valuation allowance |  |  | - |  |  | (2,363) |  |  | (74,145)
Deficiency from restricted stock |  |  | - |  |  | - |  |  | 10
Impact of Illinois tax rate change |  |  | - |  |  | 2,363 |  |  | -
Other, net |  |  | 64 |  |  | 66 |  |  | 25
Tax at effective tax rate |  | $ | 8,976 |  | $ | 5,761 |  | $ | (70,242)
The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income. Significant positive evidence evaluated included recent and projected earnings, significantly improved asset quality and an improved capital position. Negative evidence identified included a reduction in net interest margin as a result of the current rate environment, and historic runoff of loans.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
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