INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):



	2016		2015
Deferred tax assets:
Allowance for loan losses	$	9,177	$	7,750
Unrealized losses on securities	890		—
Core deposit intangible	436		351
Deferred compensation	696		712
Other	241		55
Total deferred tax assets	11,440		8,868
Deferred tax liabilities:
Premises and equipment	3,318		3,634
Goodwill	1,820		1,446
FHLB stock dividends	80		70
Unrealized gains on cash flow hedges	346		—
Unrealized gains on securities	—		274
Prepaid expenses	306		323
Purchase accounting adjustments on securities	753		854
Other	245		95
Total deferred tax liabilities	6,868		6,696
Net deferred tax asset	$	4,572	$	2,172

Components of Income Tax Expense

Components of income tax expense are as follows (in thousands):



	2016			2015			2014
Current	$	5,439		$	6,368		$	8,847
Deferred benefit	(1,582		)	(1,785		)	(1,489		)
Total income tax expense	$	3,857		$	4,583		$	7,358

Income Tax Reconciliation

The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% on pre-tax income as follows (in thousands):



	December 31,
	2016			2015			2014
Taxes calculated at statutory rate	$	4,654		$	5,460		$	9,264
Increase (decrease) resulting from:
Tax-exempt interest, net	(615		)	(766		)	(923		)
Executive officer life insurance proceeds	—			—			(1,050		)
Other	(182		)	(111		)	67
	$	3,857		$	4,583		$	7,358