INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

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

	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

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:

	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

Schedule of Deferred Tax Assets and Liabilities

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