INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision

The income tax expense included in the accompanying statements of income consists of the following (in thousands):

	Years Ended December 31,
	2018		2017		2016
Current income tax expense	$	4,009	$	12,607	$	8,557
Deferred income tax expense	6,154		3,514		1,768
Income tax expense	$	10,163	$	16,121	$	10,325

Schedule of net deferred tax assets and liabilities

The components of the net deferred tax asset (liability) as of December 31, 2018 and 2017 are summarized below (in thousands):

	Assets		Liabilities
Allowance for loan losses	$	5,673	$
Retirement and other benefit plans			(2,519	)
Premises and equipment			(6,360	)
Core deposit intangible			(2,748	)
Unrealized losses on securities available for sale	7,926
Effective hedging derivatives			(1,761	)
Fair value adjustment on loans	1,894
Fair value adjustment on time deposits			(6	)
Unfunded status of defined benefit plan	6,979
State business tax credit	483
Stock-based compensation	797
Other			(582	)
Gross deferred tax assets (liabilities)	23,752		(13,976	)
Net deferred tax asset at December 31, 2018	$	9,776
Allowance for loan losses	$	4,364	$
Retirement and other benefit plans			(2,102	)
Premises and equipment			(5,716	)
Core deposit intangible			(3,660	)
Unrealized losses on securities available for sale	4,285
Effective hedging derivatives			(1,701	)
Fair value adjustment on loans	2,607
Fair value adjustment on time deposits			(54	)
Alternative minimum tax credit	6,943
Unfunded status of defined benefit plan	7,018
State business tax credit	544
Stock-based compensation	642
Other			(966	)
Gross deferred tax assets (liabilities)	26,403		(14,199	)
Net deferred tax asset at December 31, 2017	$	12,204

Schedule of income tax reconciliation

A reconciliation of tax at statutory rates and total tax expense is as follows (dollars in thousands):

	Years Ended December 31,
	2018					2017					2016
	Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income
Statutory tax expense	$	17,703		21.0	%	$	24,652		35.0	%	$	20,886		35.0	%
Increase (decrease) in taxes from:
Tax rate changes	(767		)	(0.9	)%	2,416			3.4	%	—			—
Tax exempt interest	(6,257		)	(7.4	)%	(10,195		)	(14.5	)%	(9,879		)	(16.6	)%
Bank owned life insurance	(613		)	(0.7	)%	(885		)	(1.2	)%	(915		)	(1.5	)%
Share-based compensation	(191		)	(0.2	)%	(482		)	(0.7	)%	—			—
Acquisition costs	—			—		467			0.7	%	—			—
State business tax	297			0.3	%	68			0.1	%	71			0.1	%
Other, net	(9		)	—		80			0.1	%	162			0.3	%
Income tax expense	$	10,163		12.1	%	$	16,121		22.9	%	$	10,325		17.3	%