INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of the provision for income tax expense

	For the Years Ended December 31,
(Dollars in thousands)	2017		2016		2015
Current federal income tax	$	13,364	$	11,269	$	12,353
Current state income tax		157		140		102
Deferred income tax		2,932		601		(1,664)
Total income tax expense	$	16,453	$	12,010	$	10,791

Schedule of effective tax rates

	For the Years Ended December 31,
(Dollars in thousands)	2017			2016			2015
Tax expense calculated at statutory rate	$	15,408		$	13,726		$	12,225
Increase (decrease) resulting from:
State income tax		102			140			102
Tax exempt interest income		(1,504)			(1,585)			(1,349)
Life insurance		(553)			(485)			(464)
Impact of tax law rate change		3,857			—			—
Other		(857)			214			277
Total income tax expense	$	16,453		$	12,010		$	10,791
Effective tax rate		37.4	%		30.7	%		30.9	%

Schedule of net deferred tax asset (liability)

		December 31,
(Dollars in thousands)		2017		2016
Deferred tax assets:
	Allowance for possible credit losses	$	5,203	$	8,752
	Compensation related		2,228		1,334
	Deferred loan origination fees and loan costs		988		1,512
	Loan related		423		1,037
	Unrealized loss on securities available for sale		103		496
	Other		215		788
	Total deferred tax assets		9,160		13,919
Deferred tax liabilities:
	Accumulated depreciation		(1,228)		(2,205)
	Compensation 481(a) adjustment		(713)		—
	Core deposit intangibles		(1,378)		(2,662)
	Other		(61)		(21)
	Total deferred tax liabilities		(3,380)		(4,888)
Net Deferred Tax Asset		$	5,780	$	9,031