Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consisted of the following components as of December 31, 2017 and 2016:



	December 31,
	2017		2016
	(In Thousands)
Deferred tax assets:
Allowance for loan losses	$	3,446	$	5,760
Deferred fees	682		857
Allowance for loan losses on mortgage loans sold	339		557
Allowance for off balance sheet losses	174		270
Stock options	44		79
Securities available for sale	617		869
Fair value adjustment for acquired assets/liabilities	698		—
Acquisition accounting adjustments	6,008		—
Other	144		197
	$	12,152	$	8,589
Deferred tax liability:
Depreciation	$	347	$	147
Acquisition accounting adjustments	6,067		—
Other	192		88
	$	6,606	$	235
Net deferred tax assets included in other assets	$	5,546	$	8,354

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes charged to operations for the years ended December 31, 2017, 2016, and 2015 consisted of the following:



	Year Ended December 31,
	2017		2016			2015
	(In Thousands)
Current tax expense	$	2,980	$	9,898		$	8,711
Deferred tax (benefit)	8,997		(698		)	(534		)
	$	11,977	$	9,200		$	8,177

Federal Income Tax Note

The income tax provision differs from the amount of income tax determined by applying the U.S. Federal income tax rate to pretax income for the years ended December 31, 2017, 2016, and 2015 as follows:



	Year Ended December 31,
	2017			2016			2015
	(In Thousands)
Computed "expected" tax expense	$	9,967		$	8,961		$	8,259
Increase (decrease) in income taxes resulting from:
Tax reform	3,524			—			—
State income taxes, net of federal benefit	127			117			92
Tax exempt income and interest	(1,305		)	(409		)	(257		)
Merger related expenses, nondeductible	550			344			—
Low income housing tax credits	(586		)	—			—
Other	(300		)	187			83
	$	11,977		$	9,200		$	8,177