INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2016

INCOME TAX

Schedule of income tax expense (benefit)

Year Ended December 31	2016		2015		2014
Income tax expense
Currently payable	$	8,455	$	4,726	$	4,578
Deferred		4,135		5,697		5,950
Change in valuation allowance		(453)		(190)		(2,749)
Total income tax expense	$	12,137	$	10,233	$	7,779

Schedule of differences between effective tax rates and the federal statutory rate applied to income before income taxes

		2016			2015			2014
Federal statutory income tax rate		35	%		35	%		35	%
Federal statutory income tax	$	17,661		$	16,021		$	12,871
Tax exempt interest		(4,799)			(4,676)			(4,425)
Effect of state income taxes		75			169			3,199
Non-deductible expenses		436			193			338
Tax exempt income on life insurance		(530)			(537)			(454)
Tax credits		(397)			(501)			(369)
Change in valuation allowance		(453)			(190)			(2,749)
Captive insurance premiums		(335)			(361)			(371)
Low income housing proportional amortization		419			363			—
Other		60			(248)			(261)
Income tax expense	$	12,137		$	10,233		$	7,779

Schedule of components of the net deferred tax asset (liability)

December 31	2016		2015
Assets
Allowance for loan losses	$	8,590	$	8,474
Net operating loss carryforward		3,876		3,543
Credit carryforwards		6,439		8,401
OREO write-downs		583		514
Other		3,456		3,019
Total assets		22,944		23,951
Liabilities
Depreciation		(6,041)		(6,864)
Mortgage servicing rights		(2,717)		(2,209)
Unrealized gain on securities AFS		(1,658)		(6,798)
Intangibles		(434)		(2,981)
Deferred loan fees/costs		(2,058)		(1,901)
Other		(3,725)		(2,336)
Total liabilities		(16,633)		(23,089)
Less: Valuation allowance		(2,934)		(3,091)
Net deferred tax asset/(liability)	$	3,377	$	(2,229)