INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES [Abstract]

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) was as follows:

	Years Ended December 31,
	2020			2019
Current expense
Federal	$	12,590		$	6,923
State		248			224
Deferred expense
Federal		(1,588	)		334
Total	$	11,250		$	7,481

Effective Income Tax Rate Reconciliation

Effective tax rates differ from the federal statutory rate of 21% applied to income before income taxes due to the following:

	Years Ended December 31,
	2020			2019
Federal statutory rate times financial statement income	$	11,887		$	7,707
Effect of:
Tax-exempt income		(863	)		(348	)
State taxes, net of federal benefit		196			177
Earnings from bank owned life insurance		(280	)		(272	)
Non-deductible expenses		248			190
Other, net		62			27
Total	$	11,250		$	7,481

Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following:

	December 31,
	2020			2019
Deferred tax assets
Allowance for loan loss	$	9,566		$	5,081
Deferred compensation		5,215			4,669
Other real estate owned		251			251
Nonaccrual loans		59			180
Other		221			162
Total deferred tax assets		15,312			10,343
Deferred tax liabilities
Depreciation		(2,432	)		(2,417	)
Intangibles		(847	)		(924	)
Prepaid expenses		(439	)		(419	)
Mortgage servicing rights		(1,900	)		(431	)
Unrealized gain on available-for-sale securities		(5,688	)		(255	)
Other		(1,545	)		(278	)
Total deferred tax liabilities		(12,851	)		(4,724	)
Net deferred tax asset	$	2,461		$	5,619