INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

The consolidated provision for income taxes were as follows as of December 31:

	2019			2018			2017
Current federal tax expense	$	6,097		$	5,288		$	5,803
Deferred federal tax (benefit) expense		(319	)		(683	)		740
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate		—			(6	)		1,695
Total	$	5,778		$	4,599		$	8,238

Schedule of Effective Income Tax Rate Reconciliation

The provision for federal income taxes differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis as of December 31:

	2019			2018			2017
Federal statutory income tax at 21% for 2019 and 2018, and 35% for 2017	$	6,732		$	5,291		$	7,937
Tax exempt interest income		(1,027	)		(968	)		(1,560	)
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate		—			(6	)		1,695
Earnings of bank owned life insurance		(192	)		(113	)		(161	)
Nondeductible expenses		462			566			577
Other		(197	)		(171	)		(250	)
Total	$	5,778		$	4,599		$	8,238

Schedule of Deferred Tax Assets and Liabilities

The components of the deferred tax assets (liabilities), in the accompanying consolidated balance sheets consisted of the following as of December 31:

	2019			2018
Deferred tax assets:
Allowance for loan losses	$	3,402		$	3,077
Deferred compensation		857			770
Unrealized loss on available for sale securities		—			1,464
Bonus accrual		399			328
Accretion of acquisition allowance		183			327
Other real estate owned		134			65
Other		420			484
Total deferred tax assets		5,395			6,515
Deferred tax liabilities:
Unrealized gain on available for sale securities		(526	)		—
Premises and equipment		(2,353	)		(2,334	)
Prepaid expenses		(270	)		(179	)
Deferred loan costs, net		(137	)		(118	)
Intangibles		(470	)		(590	)
Other		(101	)		(85	)
Total deferred tax liabilities		(3,857	)		(3,306	)
Net deferred tax asset	$	1,538		$	3,209