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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Taxes [Abstract] |
Income Taxes | NOTE 16 – Income Taxes The components of income tax expense were as follows:
| For the years ended December 31, |
(dollars in thousands) |  | 2017 |  | 2016 |  | 2015 |
Current income taxes: |  |  |  |  |  |  |  |
Federal |  | $ | 7,139 |  | 6,429 |  | 6,184 |
State |  |  | 573 |  | 548 |  | 441 |
Total current tax expense |  |  | 7,712 |  | 6,977 |  | 6,625 |
Deferred income tax expense (benefit) |  |  | 2,904 |  | 356 |  | (1,256 | )
Income tax expense |  | $ | 10,616 |  | 7,333 |  | 5,369 |
The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory tax rate:
| For the years ended December 31, |
(dollars in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Tax expense at statutory rate |  | $ | 8,281 |  |  | 7,129 |  |  | 5,438 |
Effect of state income taxes, net of federal benefit |  |  | 372 |  |  | 356 |  |  | 287 |
Exempt income |  |  | (146 | ) |  | (162 | ) |  | (151 | )
Effect of change in federal tax rate |  |  | 2,441 |  |  | - |  |  | - |
Other |  |  | (332 | ) |  | 10 |  |  | (205 | )
Income tax expense |  | $ | 10,616 |  |  | 7,333 |  |  | 5,369 |
Income tax expense for the year ended December 31, 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Act, which was enacted on December 22, 2017. As a result of the new law, we recognized a provisional net tax expense totaling $2.4 million, as noted in the table above. As a result of the Tax Act, deferred taxes as of December 31, 2017 are based on the newly enacted U.S. statutory federal income tax rate of 21%, while deferred taxes as of December 31, 2016 are based on the previous federal income tax rate of 35%. The components of the deferred tax assets and liabilities are as follows:
| December 31,
(dollars in thousands) |  | 2017 |  | 2016
Deferred tax assets: |  |  |  |  |
Allowance for loan losses |  | $ | 3,260 |  | 5,199
Unrealized loss on securities available for sale |  |  | 121 |  | 260
Net deferred loan fees |  |  | 480 |  | 691
Deferred compensation |  |  | 1,124 |  | 1,597
Sale of real estate owned |  |  | 104 |  | 262
Accrued expenses |  |  | 16 |  | 401
Other |  |  | 136 |  | 250
|  |  | 5,241 |  | 8,660
Deferred tax liabilities: |  |  |  |  |
Property and equipment |  |  | 1,208 |  | 1,467
Hedging transactions |  |  | 88 |  | -
Other |  |  | 163 |  | 368
|  |  | 1,459 |  | 1,835
Net deferred tax asset |  | $ | 3,782 |  | 6,825
The Company has analyzed the tax positions taken or expected to be taken in its tax returns and concluded it has no liability related to uncertain tax positions.

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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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