INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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)	2017		2016		2015
Current:
Federal	$	2,635	$	4,885	$	2,830
State	771		1,197		591
	$	3,406	$	6,082	$	3,421
Deferred expense (benefit)
Federal	$	1,268	$	665	$	(371	)
State	81		42		(24		)
	1,349		707		(395		)
Income tax expense (benefit)	$	4,755	$	6,789	$	3,026

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:

	2017					2016					2015
(Dollars in thousands)	Amount			%		Amount			%		Amount			%
Tax at Federal tax rate	$	4,369		34	%	$	6,689		34	%	$	3,346		34	%
Tax effect of:
State income tax	771			6.0	%	1,197			6.0	%	246			2.5	%
Tax exempt earnings	(1,031		)	(6.4	)%	(1,097		)	(5.5	)%	(566		)	(5.8	)%
Impact of deferred tax rate change	$	646		5.0	%	$	—		—	%	$	—		—	%
	$	4,755		38.6	%	$	6,789		34.5	%	$	3,026		30.7	%

Deferred Income Tax Assets and (Liabilities)

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

(Dollars in thousands)	2017			2016
Allowance for loan losses	$	2,798		$	2,641
Minimum pension liability	1,342			1,786
Unrealized loss on securities available-for-sale	2			1,066
Gross deferred tax assets	4,142			5,493
Depreciation	(1,137		)	(1,352		)
Pension	(21		)	(6		)
Goodwill	(1,523		)	(465		)
Gross deferred tax liabilities	(2,681		)	(1,823		)
Net deferred tax asset	$	1,461		$	3,670