|12 Months Ended|
Dec. 31, 2015
|Income Tax Disclosure [Abstract]|
The provision for income taxes reflected in the statements of comprehensive income is comprised of the following components:
Income taxes provided were different than the tax expense computed by applying the statutory federal income tax rate of 35% to pre-tax income as a result of the following:
Deferred income tax liabilities and assets result from differences between assets and liabilities measured for financial reporting purposes and for income tax return purposes. These assets and liabilities are measured using the enacted tax rates and laws that are currently in effect. The net deferred tax asset and the temporary differences comprising that balance at December 31, 2015 and 2014 are as follows:
In the opinion of management, it is more likely than not that all of the deferred tax assets, with the exception of the separate state net operating loss carry-forward of the parent holding company, the separate state net operating loss carry-forwards of an inactive subsidiary, and certain of the Banks separate state tax credit carry-forwards, will be realized. Accordingly, a valuation allowance for the parent holding companys separate state net operating loss carry-forward was recorded in 2008 and increased for additional state operating loss carry-forwards generated in 2009 through 2015. This valuation allowance at December 31, 2015 was $1.1 million. In addition, a valuation allowance for the inactive subsidiarys separate state net operating loss carry-forwards and for certain of the Banks state tax credit carry-forwards totaled $0.3 million at December 31, 2015. At December 31, 2015, the Company had state loss and tax credit carry-forwards of approximately $5.1 million, which expire at various dates from 2016 through 2035, federal net operating and capital loss carry-forwards of approximately $0.3 million which expire at various dates from 2019 through 2035, and federal credit carry-forwards of approximately $1.0 million that never expire.
The Company had no unrecognized tax benefits at December 31, 2015 and December 31, 2014. The unrecognized tax benefit was $3.2 million at December 31, 2013.
A reconciliation of the beginning and ending unrecognized tax benefit is as follows:
It is the Companys policy to recognize interest and penalties accrued relative to unrecognized tax benefits in their respective federal or state income taxes accounts. For the year ended December 31, 2015, there were no interest and penalties recorded in the income statement income taxes. For the years ended December 31, 2014 and 2013, the Company reversed previously accrued interest and penalties of $800,000 and $139,000, respectively. There were no amounts for accrued interest and penalties at December 31, 2015 and 2014.
The Company and its subsidiaries file a consolidated U.S. federal income tax return, as well as file various returns in states where its banking offices are located. The Company is no longer subject to U.S. federal or state tax examinations for years before 2012.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef