INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of components of income tax expense (benefit)

The components of income tax expense are as follows ($ in thousands):

	Years Ended December 31,
	2020		2019		2018
Current:
Federal	$	11,270	$	9,477	$	2,435
State		2,308		2,312		834
Deferred		(3,015)		912		2,523
Total income tax expense	$	10,563	$	12,701	$	5,792

Schedule of effective income tax rate reconciliation

The Company's income tax expense differs from the amounts computed by applying the federal income tax statutory rates to income before income taxes. A reconciliation of the differences is as follows ($ in thousands):

	Years Ended December 31,
	2020				2019				2018
	Amount		%		Amount		%		Amount		%
Income taxes at statutory rate	$	13,244	21	%	$	11,854	21	%	$	5,674	21	%
Tax-exempt income		(1,868)	(2)	%		(1,176)	(2)	%		(867)	(3)	%
Bargain purchase gain		(1,645)	(3)	%		—	—			—	—
Nondeductible expenses		188	—	%		348	1	%		403	1	%
State income tax, net of federal tax effect		1,600	3	%		1,969	4	%		1,058	4	%
Tax credits, net		(715)	(1)	%		(334)	(1)	%		(334)	(1)	%
Other, net		(241)	(1)	%		40	—	%		(142)	(1)	%
	$	10,563	17	%	$	12,701	23	%	$	5,792	21	%

Schedule of deferred tax assets and liabilities

The components of deferred income taxes included in the consolidated financial statements were as follows ($ in thousands):

	December 31,
	2020		2019
Deferred tax assets:
Allowance for loan losses	$	9,062	$	3,430
Net operating loss carryover		2,147		2,830
Nonaccrual loan interest		1,356		895
Other real estate		252		506
Deferred Compensation		1,285		1,190
Loan Purchase Accounting		2,268		3,467
Right-of-use asset		2,103		1,650
Other		2,046		2,146
		20,519		16,114
Deferred tax liabilities:
Unrealized gain on available-for-sale securities		(8,743)		(3,417)
Securities		(880)		(81)
Premises and equipment		(7,698)		(5,002)
Core deposit intangible		(7,051)		(6,864)
Goodwill		(1,906)		(1,631)
Right-of-use liability		(2,103)		(1,650)
Other		(550)		(331)
		(28,931)		(18,976)
Net deferred tax asset/(liability), included in other assets/(liabilities)	$	(8,412)	$	(2,862)