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INCOME TAXES | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The components of income tax expense for the years ended December 31, 2017, 2016 and 2015, are as follows:
In thousands | 2017 |  | 2016 |  | 2015
Federal: |  |  |  |  |
Current | $ | 4,767 |  |  | $ | 3,530 |  |  | $ | 3,316 |
Deferred | 1,413 |  |  | 171 |  |  | 392 |
| 6,180 |  |  | 3,701 |  |  | 3,708 |
State: |  |  |  |  |
Current | 156 |  |  | 67 |  |  | 53 |
Deferred | 298 |  |  | — |  |  | — |
| 454 |  |  | 67 |  |  | 53 |
| $ | 6,634 |  |  | $ | 3,768 |  |  | $ | 3,761 |
Reconciliations of the statutory federal income tax to the income tax expense reported in the consolidated statements of income for the years ended December 31, 2017, 2016 and 2015, are as follows:
| Percentage of Income before Income Taxes
| 2017 |  | 2016 |  | 2015
Federal income tax at statutory rate | 35.0 | % |  | 34.0 | % |  | 34.0 | %
State income taxes, net of federal benefit | 1.8 | % |  | 0.3 | % |  | 0.2 | %
Tax-exempt income | (5.0 | )% |  | (4.8 | )% |  | (4.4 | )%
Earnings on investment in bank-owned life insurance | (2.3 | )% |  | (2.6 | )% |  | (2.5 | )%
Rehabilitation and low-income housing credits | (1.7 | )% |  | (2.0 | )% |  | (2.0 | )%
Reduction of federal tax rate | 10.2 | % |  | — | % |  | — | %
Other | 2.4 | % |  | 0.8 | % |  | 0.2 | %
| 40.4 | % |  | 25.7 | % |  | 25.5 | %
The provision for federal income taxes includes $0, $9,000 and $89,000 of income taxes related to net gains on sales of securities in 2017, 2016 and 2015, respectively. Rehabilitation and low-income housing income tax credits were $287,000, during 2017, 2016 and 2015, respectively. Projected credits are $287,000 in 2018 and 2019, and $876,000 thereafter. Components of deferred tax assets and liabilities at December 31 were as follows:
In thousands | 2017 |  | 2016
Deferred tax assets: |  |  |
Allowance for loan losses | $ | 3,052 |  |  | $ | 4,968 |
Available for sale securities | 282 |  |  | 143 |
Accrued deferred compensation | 852 |  |  | 1,166 |
Pension | 1,789 |  |  | 3,101 |
Other-than-temporary impairment | 43 |  |  | 70 |
Nonaccrual interest | 171 |  |  | 226 |
Deferred director fees | 520 |  |  | 686 |
Acquisition accounting | 1,357 |  |  | — |
Other | 521 |  |  | 982 |
| 8,587 |  |  | 11,342 |
Deferred tax liabilities: |  |  |
Deferred loan fees | 114 |  |  | 79 |
Available for sale securities | — |  |  | — |
Prepaid pension benefit cost | 4,248 |  |  | 6,632 |
Prepaid expenses | 132 |  |  | 123 |
Accumulated depreciation | 426 |  |  | 372 |
Goodwill/intangibles | 928 |  |  | 1,006 |
| 5,848 |  |  | 8,212 |
Net Deferred Tax Asset included in Other Assets | $ | 2,739 |  |  | $ | 3,130 |
The Corporation did not have any uncertain tax positions at December 31, 2017 and 2016. The Corporation’s policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense in the Consolidated Statements of Income. Years that remain open for potential review by the Internal Revenue Service are 2014 through 2017. On December 22, 2017, the United States government enacted comprehensive tax legislation, known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code, including a reduction in the base corporate tax rate from the prior existing statutory rate, which was 35% for ACNB, to 21%. Based on estimates and current accounting guidance, the Corporation estimated that the Tax Act resulted in a charge against 2017 net income of approximately $1.7 million, due to the write down of ACNB’s net deferred tax assets due to the Tax Act’s reduction in the base corporate tax rate to 21%. This estimate was based on a review and analysis of the Corporation’s net deferred tax assets at December 31, 2017, as well as adjustments to various deferred tax assets and deferred tax liabilities in the fourth quarter, including those accounted for in accumulated other comprehensive income.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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