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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2019
INCOME TAXES [Abstract]  
Schedule of net deferred tax assets

    

2019

    

2018

Deferred tax assets:

 

  

 

  

Allowance for loan losses

$

2,235

$

2,686

Unearned loan fees and other

 

1,064

 

1,058

Other real estate owned write-downs

 

748

 

783

Lease liability

1,829

Other than temporary impairment charge

 

229

 

232

Net unrealized loss on investment securities available for sale

 

 

694

Purchase accounting

 

949

 

1,909

Federal and state net operating loss carryforward

 

 

762

Federal AMT credit carryforward

 

1,137

 

1,137

Federal low income housing credit carryforward

 

3,226

 

2,887

Deferred compensation

 

1,573

 

1,390

Depreciation

218

Other

 

511

 

729

Total deferred tax assets

 

13,719

 

14,267

Deferred tax liabilities:

 

  

 

  

FDIC indemnification asset

 

 

140

Right-of-use assets

1,731

Net unrealized gain on investment securities available for sale

200

Depreciation

 

 

23

Total deferred tax liabilities

 

1,931

 

163

Net deferred tax assets

$

11,788

$

14,104

Schedule of provision for income taxes

The provision for income taxes consists of the following for the years ended December 31, 2019, 2018 and 2017 (in thousands):

    

2019

    

2018

    

2017

Current tax expense

 

  

 

  

 

  

Federal

$

4,429

$

6,244

$

3,145

State

 

228

 

249

 

316

Total current tax expense

 

4,657

 

6,493

 

3,461

Deferred tax expense (benefit)

 

  

 

  

 

  

Federal

 

1,350

 

2,692

 

10,234

State

 

70

 

429

 

(548)

Total deferred tax expense

 

1,420

 

3,121

 

9,686

Total income tax expense

$

6,077

$

9,614

$

13,147

Schedule of income tax expense determined by applying the U.S. Federal income tax rate

The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 21% to pretax income for the years ended December 31, 2019 and 2018 and 34% to pretax income for the year ended December 31, 2017 due to the following (in thousands):

    

2019

    

2018

    

2017

Computed expected tax expense at statutory rate

$

8,241

$

9,094

$

5,294

Increase (decrease) in tax expense resulting from:

 

  

 

  

 

  

Remeasurement of deferred tax assets and liabilities

(1,659)

1,130

Low income housing tax credits, net of amortization

(255)

(502)

Income from bank-owned life insurance

 

(357)

 

(416)

 

(316)

Other, net

 

107

 

308

 

234

Transaction costs

 

 

 

724

Tax adjustment related to reduction in U.S. federal statutory income tax rate

 

 

 

7,211

Income tax expense

$

6,077

$

9,614

$

13,147