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Income Taxes | 12 Months Ended
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Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | 12. Income Taxes The Company files federal income tax returns on a calendar year basis. Income tax (benefit) expense for the years indicated is summarized as follows:
(dollars in thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Current |  | $ | 5,001 |  |  | $ | 4,281 |  |  | $ | 988 |
Deferred |  |  | (1,265 | ) |  |  | 324 |  |  |  | 1,647 |
Total income tax expense |  | $ | 3,736 |  |  | $ | 4,605 |  |  | $ | 2,635 |
The components of the Company’s net deferred tax asset as of December 31 of the years indicated are as follows:
(dollars in thousands) |  | 2013 |  |  | 2012 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
FHLB stock dividends |  | $ | (7 | ) |  | $ | 10 |
Provision for loan losses |  |  | 2,421 |  |  |  | 1,809 |
Accumulated depreciation |  |  | (1,166 | ) |  |  | (1,204 | )
Intangible assets |  |  | 311 |  |  |  | 203 |
Unrealized gain on securities available for sale |  |  | (105 | ) |  |  | (1,668 | )
Discount on purchased loans |  |  | (372 | ) |  |  | (435 | )
Borrowings |  |  | — |  |  |  | 67 |
Premium on purchased deposits |  |  | 9 |  |  |  | 34 |
Mortgage servicing rights |  |  | (181 | ) |  |  | (208 | )
Deferred compensation |  |  | 763 |  |  |  | 284 |
Stock-based compensation |  |  | 790 |  |  |  | 623 |
Other |  |  | 1,060 |  |  |  | 1,116 |
Deferred tax asset |  | $ | 3,523 |  |  | $ | 631 |
For the years ended December 31, 2013, 2012 and 2011, the provision for federal income taxes differed from the amount computed by applying the federal income tax statutory rate of 35% for the year 2013 and 34% for previous years on income from operations as indicated in the following analysis:
(dollars in thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Federal tax based on statutory rate |  | $ | 3,857 |  |  | $ | 4,686 |  |  | $ | 2,637 |
State tax based on statutory rate |  |  | 10 |  |  |  | 13 |  |  |  | 16 |
(Decrease) increase resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Effect of tax-exempt income |  |  | (294 | ) |  |  | (160 | ) |  |  | (76 | )
Other |  |  | 163 |  |  |  | 66 |  |  |  | 58 |
Income tax expense |  | $ | 3,736 |  |  | $ | 4,605 |  |  | $ | 2,635 |
Effective tax rate |  |  | 33.9 | % |  |  | 33.4 | % |  |  | 34.0 | %
Retained earnings as of December 31, 2013, 2012 and 2011, included $5,837,000 for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reductions of amounts so allocated for purposes other than bad debt losses would create income for tax purposes only, which would be subject to the then-current federal statutory income tax rate. The unrecorded deferred income tax liability on the above amount was $1,985,000 as of December 31, 2013, 2012 and 2011. Current accounting standards do not require the accrual of this deferred tax amount to be recorded unless it is probable that the reserve (for tax purposes) will be significantly depleted by loan losses deductible for tax purposes in the future. Based on current estimates of losses within the Company’s loan portfolio, accrual of the deferred tax liability associated with this reserve was not required as of December 31, 2013, 2012 and 2011.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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 FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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