11. INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of provision for (benefit from) income taxes

	Federal			State		Total
2017
Current	$	1,397		$	608	$	2,005
Deferred		1,222			25		1,247
Provision for income taxes	$	2,619		$	633	$	3,252
2016
Current	$	2,701		$	974	$	3,675
Deferred		(308	)		25		(283	)
Provision for income taxes	$	2,393		$	999	$	3,392
2015
Current	$	1,482		$	719	$	2,201
Deferred		409			64		473
Provision for income taxes	$	1,891		$	783	$	2,674

Schedule of deferred tax assets (liabilities)

	December 31,
	2017			2016
Deferred tax assets:
Allowance for loan and lease losses	$	1,458		$	2,207
Unrealized gains on available-for-sale investment securities		135			—
Deferred compensation		1,945			2,688
Future state tax deduction		132			347
Other		108			197
Total deferred tax assets		3,778			5,439
Deferred tax liabilities:
Future liability of state deferred tax assets		(237	)		(392	)
Unrealized gains on available-for-sale investment securities		—			(372	)
Deferred loan costs		(146	)		(229	)
Federal Home Loan Bank stock dividends		(150	)		(211	)
Other real estate owned		(55	)		(77	)
Premises and equipment		(45	)		(38	)
Total deferred tax liabilities		(633	)		(1,319	)
Net deferred tax assets	$	3,145		$	4,120

Schedule of reconciliation of effective income tax rate

	Year Ended December 31,
	2017			2016			2015
Federal income tax statutory rate		34.0	%		34.0	%		34.0	%
State franchise tax, net of Federal tax effect		6.5	%		7.1	%		6.5	%
Effect of Federal rate reduction on deferred tax assets		19.0	%		—			—
Tax benefit of interest on loans to/investments in states and political subdivisions		(6.1	)%		(4.7	)%		(4.5	)%
Tax-exempt income from life insurance policies		(1.7	)%		(1.1	)%		(1.3	)%
Equity compensation expense		0.1	%		0.1	%		0.1	%
Other		(1.4	)%		(0.8	)%		(1.1	)%
Effective tax rate		50.4	%		34.6	%		33.7	%