Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income tax expense for 2017, 2016 and 2015 consisted of the following:



	2017		2016		2015
	(Amounts in thousands)
Current tax expense:
Federal	$	7,126	$	6,826	$	6,007
State	1,093		1,564		1,026
	8,219		8,390		7,033
Deferred tax expense (benefit)	4,170		305		(190		)
Income tax expense	$	12,389	$	8,695	$	6,843

The components of the net deferred tax asset at December 31, 2017, 2016 and 2015 were as follows:



	2017			2016			2015
	(Amounts in thousands)
Deferred tax assets:
Allowance for loan losses	$	4,102		$	5,845		$	6,068
Depreciation	—			268			280
Supplemental Executive Retirement Plan ("SERP")	1,216			1,511			1,343
OREO writedowns	1,359			1,839			1,894
OTTI write down on securities	—			65			65
Nonaccrued interest	686			1,806			2,048
Partnership Income	—			76			71
Non-qualified stock options	26			25			—
Write-down on partnership investment	120			181			—
Unrealized loss	50			233			110
Accrued bonus	3			—			—
	7,562			11,849			11,879
Valuation allowance	(120		)	(181		)	—
Deferred tax Liabilities:
Depreciation	(173		)	—			—
Partnership Income	(19		)	—			—
Deferred loan costs	(830		)	(922		)	(951		)
Net deferred tax asset	$	6,420		$	10,746		$	10,928

A reconciliation of the Company’s effective income tax rate with the statutory federal rate for 2017, 2016 and 2015 is as follows:



	2017			2016			2015
	(Amounts in thousands)
At Federal statutory rate	$	8,480		$	9,397		$	6,387
Adjustments resulting from:
State income taxes, net of Federal tax benefit	852			1,009			854
Non-controlling interest	11			(147		)	(423		)
Tax exempt income	(34		)	(32		)	(31		)
BOLI	(228		)	(246		)	(121		)
Stock compensation	(18		)	—			—
Nondeductible expenses	3			1			4
Tax credit	—			(1,532		)	—
Increase in Valuation reserve	—			164			—
Impact of Federal Tax Reform	3,204			—			—
Other	119			81			173
	$	12,389		$	8,695		$	6,843