INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Summary of Income Tax Expense

The following table summarizes income tax expense for the years ended December 31, 2019, 2018 and 2017.

	2019		2018		2017
Current expense	$	934	$	1,097	$	1,260
Deferred expense	1,776		543		443
Expense due to enactment of federal tax reform legislation	—		—		2,635
Income tax expense	$	2,710	$	1,640	$	4,338

Reconciliation of Effective Income Tax Rate to Statutory Federal Rate

The following table reconciles the Company's effective income tax rate to its statutory federal rate for the years ended December 31, 2019, 2018 and 2017.

	2019		2018		2017
Statutory federal tax rate	21.0	%	21.0	%	34.0	%
Increase (decrease) resulting from:
Tax exempt interest income	(4.2)	%	(7.7)	%	(13.0)	%
Income from life insurance	(1.7)	%	(1.7)	%	(2.4)	%
Disallowed interest expense	0.3	%	0.8	%	1.0	%
Low-income housing credits and related expense	(1.3)	%	(2.5)	%	(4.6)	%
Merger related	0.7	%	0.6	%	—	%
Expense due to enactment of federal tax reform legislation	—	%	—	%	21.2	%
Other	(1.0)	%	0.9	%	(1.3)	%
Effective income tax rate	13.8	%	11.4	%	34.9	%

Summary of Deferred Tax Assets and Liabilities

The following table summarizes the Company's deferred tax assets and liabilities at December 31, 2019, 2018 and 2017.

	2019		2018
Deferred tax assets:
Allowance for loan losses	$	3,418	$	3,143
Deferred compensation	415		723
Retirement and salary continuation plans	2,357		1,416
Share-based compensation	631		742
Off-balance sheet reserves	234		219
Nonaccrual loan interest	697		537
Net unrealized losses on securities available for sale	127		791
Purchase accounting adjustments	4,081		1,795
Bonus accrual	493		470
Low-income housing credit carryforward	—		641
Net operating loss carryforward	1,872		—
Other	672		321
Total deferred tax assets	14,997		10,798
Deferred tax liabilities:
Depreciation	452		458
Mortgage servicing rights	694		590
Purchase accounting adjustments	1,599		1,021
Other	275		150
Total deferred tax liabilities	3,020		2,219
Net deferred tax asset, included in other assets	$	11,977	$	8,579