INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provisions for income taxes for the years ended December 31, were as follows:

(Dollars in thousands)	2016		2015			2014
Current:
Federal	$	4,885	$	2,830		$	862
State	1,197		591			124
	$	6,082	$	3,421		$	986
Deferred expense (benefit)
Federal	$	665	$	(371	)	$	(1,017	)
State	42		(24		)	(65		)
	707		(395		)	(1,082		)
Income tax expense (benefit)	$	6,789	$	3,026		$	(96	)

Reconciliation of Income Taxes at Federal Statutory Rates to Recorded Income Taxes

Following is a reconciliation of income taxes at federal statutory rates to recorded income taxes for the year ended December 31:

	2016					2015					2014
(Dollars in thousands)	Amount			%		Amount			%		Amount			%
Tax at Federal tax rate	$	6,689		34	%	$	3,346		34	%	$	674		34	%
Tax effect of:
State income tax	1,197			6.0	%	246			2.5	%	50			2.5	%
Tax exempt earnings	(1,097		)	(5.5	)%	(566		)	(5.8	)%	(820		)	(41.3	)%
	$	6,789		34.5	%	$	3,026		30.7	%	$	(96	)	(4.8	)%

Deferred Income Tax Assets and (Liabilities)

Deferred income tax assets and (liabilities) were comprised of the following at December 31:

(Dollars in thousands)	2016			2015
Allowance for loan losses	$	2,641		$	2,904
Minimum pension liability	1,786			1,713
Unrealized loss on securities available-for-sale	1,066			242
Gross deferred tax assets	5,493			4,859
Depreciation	(1,352		)	(883		)
Pension	(6		)	(43		)
Goodwill	(465		)	(452		)
Gross deferred tax liabilities	(1,823		)	(1,378		)
Net deferred tax asset	$	3,670		$	3,481