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Income Taxes | 12 Months Ended
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Dec. 31, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The current and deferred components of the income tax provision for each of the three years ended December 31 are as follows:
(in thousands) | 2016 |  | 2015 |  | 2014 |
Current tax provision |  |  |
Federal | $ | 9,710 |  | $ | 7,097 |  | $ | 8,523 |
State | 3,794 |  | 2,931 |  | 3,195 |
Total current | 13,504 |  | 10,028 |  | 11,718 |
Deferred tax provision (benefit) |  |  |
Federal | (206 | ) | 382 |  | (146 | )
State | 48 |  | 80 |  | 126 |
Total deferred | (158 | ) | 462 |  | (20 | )
Total income tax provision | $ | 13,346 |  | $ | 10,490 |  | $ | 11,698 |
The following table shows the tax effect of our cumulative temporary differences as of December 31:
(in thousands) | 2016 |  | 2015 |
Deferred tax assets: |  |
Allowance for loan losses and off-balance sheet credit commitments | $ | 6,871 |  | $ | 5,918 |
Net operating loss carryforwards | 3,582 |  | 4,090 |
Net unrealized loss on securities available-for-sale | 2,543 |  | 59 |
Deferred compensation plan and salary continuation plan | 1,773 |  | 1,619 |
State franchise tax | 1,300 |  | 1,005 |
Accrued but unpaid expenses | 1,251 |  | 1,188 |
Fair value adjustment on acquired loans | 799 |  | 1,197 |
Deferred rent and other lease incentives | 547 |  | 595 |
Depreciation and disposals on premises and equipment | 528 |  | 231 |
Other real estate owned | 448 |  | 448 |
Stock-based compensation | 398 |  | 273 |
Interest received on non-accrual loans | 185 |  | 864 |
Other | 196 |  | 381 |
Total gross deferred tax assets | 20,421 |  | 17,868 |
Deferred tax liabilities: |  |
Deferred loan origination costs and fees | (2,784 | ) | (2,567 | )
Unaccreted discount on subordinated debentures | (1,119 | ) | (1,200 | )
Core deposit intangible asset | (1,085 | ) | (1,309 | )
Accretion on investment securities | (54 | ) | (55 | )
Other | (42 | ) | (42 | )
Total gross deferred tax liabilities | (5,084 | ) | (5,173 | )
Net deferred tax assets | $ | 15,337 |  | $ | 12,695 |
As of December 31, 2016, federal and California net operating loss carryforwards ("NOLs") of $6.3 million and $19.3 million, respectively, corresponded to the total $3.6 million deferred tax asset above. If not fully utilized, the federal NOLs will begin to expire in 2029, and the California NOLs will begin to expire in 2028. Based upon the level of historical taxable income and projections for future taxable income over the periods during which the deferred tax assets are expected to be deductible, Management believes it is more likely than not we will realize the benefit of the remaining deferred tax assets. Accordingly, no valuation allowance has been established as of December 31, 2016 or 2015. The effective tax rate for 2016, 2015 and 2014 differs from the current federal statutory income tax rate as follows:
| 2016 |  | 2015 |  | 2014 |
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | %
Increase (decrease) due to: |  |  |
California franchise tax, net of federal tax benefit | 6.8 | % | 6.8 | % | 6.8 | %
Tax exempt interest on municipal securities and loans | (4.0 | )% | (4.2 | )% | (3.3 | )%
Tax exempt earnings on bank owned life insurance | (0.8 | )% | (1.0 | )% | (0.9 | )%
Low income housing and qualified zone academy bond tax credits | (0.3 | )% | (0.2 | )% | (0.1 | )%
Other | (0.1 | )% | (0.1 | )% | (0.3 | )%
Effective Tax Rate | 36.6 | % | 36.3 | % | 37.2 | %
Bancorp and the Bank have entered into a tax allocation agreement which provides that income taxes shall be allocated between the parties on a separate entity basis. The intent of this agreement is that each member of the consolidated group will incur no greater tax liability than it would have incurred on a stand-alone basis. We file a consolidated return in the U.S. Federal tax jurisdiction and a combined return in the State of California tax jurisdiction. There were no ongoing federal or state income tax examinations at the issuance of this report. We are no longer subject to examinations by tax authorities for years before 2013 for federal income tax and before 2012 for California. At December 31, 2016 and 2015, there were no unrecognized tax benefits, and neither the Bank nor Bancorp had accruals for interest and penalties related to unrecognized tax benefits.

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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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
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