The Tax Cuts and Jobs Act was enacted on December 22, 2017. Among other things, the new law (i) establishes a new, flat corporate federal statutory income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee remuneration to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums. The Tax Cuts and Jobs Act also significantly changes U.S. tax law related to foreign operations; however, such changes do not currently impact us.

As stated above, as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017, we remeasured our deferred tax assets and liabilities based upon the newly enacted U.S. statutory federal income tax rate of 21%, which is the tax rate at which these assets and liabilities are expected to reverse in the future.

Management of the Company considers the likelihood of changes by taxing authorities in its filed income tax returns and discloses potential significant changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions in previously filed income tax returns that require disclosure in the accompanying consolidated financial statements. The Company is subject to U.S. federal income taxes.

	2020			2019			2018
Current federal tax expense	$	10,542		$	6,097		$	5,288
Deferred federal tax (benefit) expense		(4,647	)		(319	)		(683	)
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate		—			—			(6	)
Total	$	5,895		$	5,778		$	4,599

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:

	2020			2019			2018
Federal statutory income tax at 21%	$	6,992		$	6,732		$	5,291
Tax exempt interest income		(1,065	)		(1,027	)		(968	)
Revaluation of net deferred tax assets due to change in U.S. federal statutory income tax rate		—			—			(6	)
Earnings of bank owned life insurance		(182	)		(192	)		(113	)
Nondeductible expenses		356			462			566
Other		(206	)		(197	)		(171	)
Total	$	5,895		$	5,778		$	4,599

Income tax expense for 2018 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. As a result of the new law, and as detailed in the table above, we recognized a net tax benefit resulting from the finalization of those calculations totaling $6 in 2018.

The following table summarizes the components of our deferred tax assets and liabilities as of December 31, 2020 and 2019, and includes a $955 increase to the deferred tax assets associated with the day one effect of our transition to CECL on January 1, 2020. Our net deferred tax assets are included in other assets in the accompanying consolidated balance sheets.

	2020			2019
Deferred tax assets:
Allowance for credit losses	$	7,060		$	3,402
Deferred compensation		920			857
Bonus accrual		422			399
Deferred loan fees, net		259			—
Accretion of acquisition allowance		112			183
Other real estate owned		2			134
Other		437			420
Total deferred tax assets		9,212			5,395
Deferred tax liabilities:
Unrealized gain on available for sale securities		(3,717	)		(526	)
Premises and equipment		(2,721	)		(2,353	)
Prepaid expenses		(343	)		(270	)
Deferred loan costs, net		—			(137	)
Intangibles		(350	)		(470	)
Other		(42	)		(101	)
Total deferred tax liabilities		(7,173	)		(3,857	)
Net deferred tax asset	$	2,039		$	1,538