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Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
(9) Income Taxes

 

The composition of income tax expense for the years ended December 31, 2014, 2013, and 2012 was as follows:

 

Current:                        
Federal   $ 1,105     $ 584     $ 651  
State     137       71       156  
Total current     1,242       655       807  
Deferred:                        
Federal     2,353       1,485       (197 )
State     447       282       (64 )
Total deferred     2,800       1,767       (261 )
                         
Total income tax expense   $ 4,042     $ 2,422     $ 546  

  

Applicable income tax expense for financial reporting purposes differs from the amount computed by applying the statutory federal income tax rate for the reasons noted in the table for the years ended December 31, 2014, 2013, and 2012 are as follows:

 

(in thousands)
 ​ ​
2014
 ​ ​
2013
 ​ ​
2011
 ​
​ ​ ​
Amount
 ​ ​
%
 ​ ​
Amount
 ​ ​
%
 ​ ​
Amount
 ​ ​
%
 ​
Income before provision for income tax expense
 ​ ​ ​ $  11,696 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $  7,396 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $  3,368 ​ ​ ​ ​ ​ ​ ​ ​
Tax at statutory federal income tax rate ​ ​ ​ $ 3,977 ​ ​ ​ ​ ​ 34.00% ​ ​ ​ ​ $ 2,515 ​ ​ ​ ​ ​ 34.00% ​ ​ ​ ​ $ 1,145 ​ ​ ​ ​ ​ 34.00% ​ ​
Tax-exempt income ​ ​ ​ ​ (348) ​ ​ ​ ​ ​ (2.98) ​ ​ ​ ​ ​ (353) ​ ​ ​ ​ ​ (4.77) ​ ​ ​ ​ ​ (380) ​ ​ ​ ​ ​ (11.27) ​ ​
State income tax, net of federal tax benefit
 ​ ​ ​ ​ 385 ​ ​ ​ ​ ​ 3.30 ​ ​ ​ ​ ​ 233 ​ ​ ​ ​ ​ 3.15 ​ ​ ​ ​ ​ 61 ​ ​ ​ ​ ​ 1.81 ​ ​
Release of prior year over accrual ​ ​ ​ ​ 0 ​ ​ ​ ​ ​ 0.00 ​ ​ ​ ​ ​ 0 ​ ​ ​ ​ ​ 0.00 ​ ​ ​ ​ ​ (371) ​ ​ ​ ​ ​ (11.01) ​ ​
Other, net ​ ​ ​ ​ 28 ​ ​ ​ ​ ​ 0.24 ​ ​ ​ ​ ​ 27 ​ ​ ​ ​ ​ 0.37 ​ ​ ​ ​ ​ 91 ​ ​ ​ ​ ​ 2.70 ​ ​
Provision for income tax expense
 ​ ​ ​ $ 4,042 ​ ​ ​ ​ ​ 34.56% ​ ​ ​ ​ $ 2,422 ​ ​ ​ ​ ​ 32.75% ​ ​ ​ ​ $ 546 ​ ​ ​ ​ ​ 16.23% ​ ​
​

The components of deferred tax assets and deferred tax liabilities at December 31, 2014 and 2013 are as follows:

(in thousands)   2014     2013  
             
Deferred tax assets:                
Allowance for loan losses   $ 3,458     $ 5,213  
Impairment of other real estate owned     1,233       1,771  
Goodwill     1,786       2,134  
Available-for-sale securities     0       914  
Deferred taxes on pension     0       0  
Nonaccrual loan interest     1,069       1,015  
Core deposit intangible     689       822  
Pension     985       896  
Deferred taxes on pension     998       0  
Deferred compensation     130       44  
Other     250       322  
                 
Total deferred tax assets   $ 10,598     $ 13,131  
                 
Deferred tax liabilities:                
Available-for-sale securities   $ 131     $ 0  
Premises and equipment     1,160       988  
Mortgage servicing rights     1,022       1,114  
Deferred taxes on pension     0       328  
Assets held for sale     114       112  
FHLB stock dividend     0       100  
Other     53       72  
                 
Total deferred tax liabilities     2,480       2,714  
                 
Net deferred tax assets   $ 8,118     $ 10,417  

  

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these temporary differences at December 31, 2014 and, therefore, did not establish a valuation reserve.

 

The Company follows ASC Topic 740, Income Taxes, which addresses the accounting for uncertain tax positions. As of December 31, 2014, 2013, and 2012, respectively, the Company did not have any uncertain tax provisions.