INCOME TAXES

The provision for federal income taxes consists of (in thousands):



	2019		2018	2017
Income taxes currently payable	$	3,694	2,721	3,018
Revaluation of net deferred tax liability	—		—	(224	)
Deferred income tax provision (benefit)	419		228	1,478
Provision for income taxes	$	4,113	2,949	4,272

A reconciliation between the statutory income tax and the Company's effective tax rate follows:



	2019		2018		2017
Statutory tax rate	21.0	%	21.0	%	34.0	%
Increase (decrease) resulting from -
Tax exempt interest	(1.4	)%	(3.1	)%	(6.0	)%
Tax exempt income on bank owned life insurance	(0.9	)%	(0.9	)%	(1.7	)%
Revaluation of net deferred tax liability	—	%	—	%	(1.3	)%
Captive insurance premium income	(0.8	)%	(0.9	)%	(0.9	)%
Other – net	—	%	0.5	%	0.7	%
Effective tax rate	17.9	%	16.6	%	24.8	%

Deferred tax assets and liabilities, included in the Consolidated Balance Sheets with accrued interest and other liabilities in 2019 and other assets in 2018, consist of the following at December 31 (in thousands):



	2019			2018
Deferred tax assets:
Allowance for loan losses	$	849		849
Net unrealized losses on investment securities available-for-sale	—			1,240
Fair value adjustment on loans acquired from mergers	451			723
Write-down of other real estate owned	10			—
Deferred compensation	706			706
Other	459			432
	2,475			3,950
Deferred tax liabilities:
Depreciation of premises and equipment	(1,621		)	(1,551	)
Net unrealized gains on investment securities available-for-sale	(270		)	—
Amortization of intangibles	(1,537		)	(1,499	)
Prepaid expenses	(246		)	(243	)
Deferred loan fees	—			(1	)
FHLB stock dividends	(216		)	(216	)
Fair value adjustment on securities acquired from mergers	(3		)	(6	)
	(3,893		)	(3,516	)
Net deferred tax (liabilities) assets	$	(1,418	)	434

As of December 31, 2019 and 2018 there were no unrecognized tax benefits and the Company does not anticipate the total amount of unrecognized tax benefits will significantly change within the next twelve months. There were no amounts recognized for interest and penalties in the consolidated statements of income for the three-year period ended December 31, 2019.

The Company is no longer subject to examination by federal tax authorities for years before 2016.

The Tax Cuts and Jobs Act ("Tax Act") was enacted on December 22, 2017. Among other changes, the Tax Act reduced the US Federal corporate tax rate from 35% to 21%. At December 31, 2017, the Company had substantially completed its accounting for the tax effects of enactment of the Tax Act. For deferred tax assets and liabilities, amounts were remeasured based on the rates expected to reverse in the future, which is 21%.