INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018		2017		2016
Current:
Federal	$	2,203	$	2,635	$	4,885
State	1,031		771		1,197
	$	3,234	$	3,406	$	6,082
Deferred expense
Federal	$	117	$	1,268	$	665
State	22		81		42
	139		1,349		707
Income tax expense	$	3,373	$	4,755	$	6,789

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:

	2018					2017					2016
(Dollars in thousands)	Amount			%		Amount			%		Amount			%
Tax at Federal tax rate	$	3,229		21	%	$	4,369		34	%	$	6,689		34	%
Tax effect of:
State income tax	738			4.8	%	771			6.0	%	1,197			6.0	%
Tax exempt earnings	(594		)	(3.9	)%	(1,031		)	(6.4	)%	(1,097		)	(5.5	)%
Impact of deferred tax rate change	$	—		—	%	$	646		5.0	%	$	—		—	%
	$	3,373		21.9	%	$	4,755		38.6	%	$	6,789		34.5	%

Deferred Income Tax Assets and (Liabilities)

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

(Dollars in thousands)	2018			2017
Allowance for loan losses	$	3,084		$	2,798
Minimum pension liability	1,266			1,342
Unrealized loss on securities available-for-sale	1,252			2
Other	1			—
Gross deferred tax assets	5,603			4,142
Depreciation	(1,143		)	(1,137		)
Pension	(138		)	(21		)
Goodwill	(1,827		)	(1,523		)
Gross deferred tax liabilities	(3,108		)	(2,681		)
Net deferred tax asset	$	2,495		$	1,461