NET DEFERRED TAX ASSET AND INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of income tax provision

Years ended December 31, (in thousands)		2017		2016		2015
Federal	$	1,831	$	1,344	$	2,186
State		195		288		432
Current provision		2,026		1,632		2,618
Federal		840		852		896
State		48		105		49
Deferred expense		888		957		945
Income tax provision	$	2,914	$	2,589	$	3,563

Reconciliation of expected federal statutory tax to income tax provision

Years ended December 31, (in thousands)	2017		2016		2015
Income tax at statutory federal tax rate	34.00	%	34.00	%	34.00	%
State tax, net of federal tax benefit	1.74		2.80		2.63
Tax exempt income and dividends received deduction	(7.00	)	(9.07	)	(7.38	)
Remeasurement of net deferred tax assets	4.85		—		—
Other	(1.81	)	0.19		0.39
Change in valuation allowance	—		—		—
Effective income tax rates	31.78	%	27.92	%	29.64	%

Components of net deferred tax assets

December 31, (dollars in thousands)		2017			2016
Allowance for loan losses	$	1,499		$	2,023
Interest on non-performing loans		210			362
Accrued deferred compensation		248			268
Post-retirement benefits		11			17
Other real estate owned write-downs		6			184
Restricted stock awards		77			62
Mark-to-market purchase accounting adjustments		122			513
Write-down of securities		154			588
Other		51			64
Gross deferred tax assets		2,378			4,081
Deferred loan costs, net		(312	)		(457	)
Goodwill and core deposit intangible asset		(534	)		(848	)
Accelerated depreciation		(752	)		(1,048	)
Mortgage servicing rights		(56	)		(116	)
Net unrealized holding gain on available-for-sale securities		(47	)		(245	)
Gross deferred tax liabilities		(1,701	)		(2,714	)
Net deferred tax asset	$	677		$	1,367