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