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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the current and deferred components of income tax expense (benefit) for each of the years ended December 31, 2019, 2018 and 2017:
(in thousands) |  | 2019 |  | 2018 |  | 2017
Current: |  |  |  |  |  |
Federal tax expense |  | $ | 2,639 |  |  | $ | 6,775 |  |  | $ | 8,705 |
State tax expense |  | 550 |  |  | 1,230 |  |  | 1,039 |
Total current tax expense |  | 3,189 |  |  | 8,005 |  |  | 9,744 |
Deferred tax expense |  | 1,020 |  |  | (443 | ) |  | 2,898 |
Impact of federal tax reform enactment |  | — |  |  | — |  |  | 3,988 |
Total income tax expense |  | $ | 4,209 |  |  | $ | 7,562 |  |  | $ | 16,630 |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 21%, 35% for years prior to 2018) to recorded income tax expense for the years ended December 31, 2019, 2018 and 2017:
|  | 2019 |  | 2018 |  | 2017
(in thousands, except ratios) |  | Amount |  | Rate |  | Amount |  | Rate |  | Amount |  | Rate
Statutory tax rate |  | $ | 5,633 |  |  | 21.00 | % |  | $ | 8,505 |  |  | 21.00 | % |  | $ | 14,918 |  |  | 35.00 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  | 547 |  |  | 2.04 |  |  | 908 |  |  | 2.24 |  |  | 986 |  |  | 2.31 |
Tax exempt interest |  | (1,375 | ) |  | (5.13 | ) |  | (1,315 | ) |  | (3.25 | ) |  | (2,074 | ) |  | (4.87 | )
Federal tax credits |  | (282 | ) |  | (1.05 | ) |  | (125 | ) |  | (0.31 | ) |  | (130 | ) |  | (0.3 | )
Officers' life insurance |  | (431 | ) |  | (1.61 | ) |  | (382 | ) |  | (0.94 | ) |  | (538 | ) |  | (1.26 | )
Acquisition costs |  | — |  |  | — |  |  | — |  |  | — |  |  | 89 |  |  | 0.21 |
Stock-based compensation plans |  | (20 | ) |  | (0.07 | ) |  | (120 | ) |  | (0.3 | ) |  | (241 | ) |  | (0.57 | )
Impact of federal tax reform enactment |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,988 |  |  | 9.36 |
Other |  | 137 |  |  | 0.51 |  |  | 91 |  |  | 0.23 |  |  | (368 | ) |  | (0.86 | )
Effective tax rate |  | $ | 4,209 |  |  | 15.69 | % |  | $ | 7,562 |  |  | 18.67 | % |  | $ | 16,630 |  |  | 39.02 | %
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities at December 31, 2019 and December 31, 2018 were as follows:
|  | 2019 |  | 2018
(in thousands) |  | Assets |  | Liabilities |  | Assets |  | Liabilities
Allowance for loan losses |  | $ | 3,507 |  |  | $ | — |  |  | $ | 3,085 |  |  | $ | — |
Deferred compensation |  | 3,383 |  |  | — |  |  | 3,242 |  |  | — |
Unrealized gain or loss on securities available for sale |  | — |  |  | 1,858 |  |  | 2,641 |  |  | — |
Unrealized gain or loss on derivatives |  | 307 |  |  | — |  |  | 685 |  |  | — |
Depreciation |  | — |  |  | 1,722 |  |  | — |  |  | 1,517 |
Deferred loan origination costs |  | — |  |  | 862 |  |  | — |  |  | 725 |
Non-accrual interest |  | 381 |  |  | — |  |  | 374 |  |  | — |
Branch acquisition costs and goodwill |  | — |  |  | 712 |  |  | — |  |  | 784 |
Core deposit intangible |  | — |  |  | 1,231 |  |  | — |  |  | 1,309 |
Acquisition fair value adjustments |  | 2,223 |  |  | — |  |  | 3,171 |  |  | — |
Prepaid expenses |  | — |  |  | 311 |  |  | — |  |  | 215 |
Interest rate cap premium amortization |  | — |  |  | — |  |  | — |  |  | 257 |
Mortgage servicing rights |  | — |  |  | 703 |  |  | — |  |  | 721 |
Equity compensation |  | 468 |  |  | — |  |  | 335 |  |  | — |
Prepaid pension |  | — |  |  | 359 |  |  | — |  |  | 366 |
Contract incentives |  | 1,167 |  |  | — |  |  | 1,658 |  |  | — |
Right of use asset |  | — |  |  | 2,253 |  |  | — |  |  | — |
Lease liability |  | 2,273 |  |  | — |  |  | — |  |  | — |
Other |  | 160 |  |  | — |  |  | 217 |  |  | — |
Total |  | $ | 13,869 |  |  | $ | 10,011 |  |  | $ | 15,408 |  |  | $ | 5,894 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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