INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision

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

	Years Ended December 31,
	2019		2018		2017
Current income tax expense	$	13,099	$	4,009	$	12,607
Deferred income tax expense	122		6,154		3,514
Income tax expense	$	13,221	$	10,163	$	16,121

Schedule of net deferred tax assets and liabilities

The components of the net deferred tax asset/liability as of December 31, 2019 and 2018 are summarized below (in thousands):

	Assets		Liabilities
Allowance for loan losses	$	5,207	$
Retirement and other benefit plans			2,179
Premises and equipment			6,842
Operating lease liabilities	2,137
Operating lease right-of-use assets			2,049
Core deposit intangible			1,990
Unrealized gains on securities available for sale			10,278
Effective hedging derivatives	445
Fair value adjustment on loans	1,478
Unfunded status of defined benefit plan	8,540
State business tax credit	423
Stock-based compensation	914
Other			629
Gross deferred tax assets/liabilities	19,144		23,967
Net deferred tax liability at December 31, 2019			$	4,823
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

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,
	2019					2018					2017
	Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income		Amount			Percent of Pre-Tax Income
Statutory tax expense	$	18,433		21.0	%	$	17,703		21.0	%	$	24,652		35.0	%
Increase (decrease) in taxes from:
Tax rate changes	—			—		(767		)	(0.9	)%	2,416			3.4	%
Tax exempt interest	(4,875		)	(5.5	)%	(6,257		)	(7.4	)%	(10,195		)	(14.5	)%
Bank owned life insurance	(484		)	(0.5	)%	(613		)	(0.7	)%	(885		)	(1.2	)%
Share-based compensation	(167		)	(0.2	)%	(191		)	(0.2	)%	(482		)	(0.7	)%
Acquisition costs	—			—		—			—		467			0.7	%
State business tax	217			0.2	%	297			0.3	%	68			0.1	%
Other, net	97			0.1	%	(9		)	—		80			0.1	%
Income tax expense	$	13,221		15.1	%	$	10,163		12.1	%	$	16,121		22.9	%