INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of current and deferred amounts of income tax expense

The current and deferred amounts of income tax expense were as follows.



	Years Ended December 31,
(in thousands)	2018			2017		2016
Current	$	14,967		$	10,952	$	12,708
Deferred	(1,521		)	4,430		(3,337		)
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act	—			885		—
Income tax expense	$	13,446		$	16,267	$	9,371

Schedule of income tax reconciliation

The differences between the income tax expense recognized and the amount computed by applying the statutory federal income tax rate (21% for 2018 and 35% for 2017 and 2016) to the income before income taxes, less noncontrolling interest, for the years ended as indicated are included in the following table.



	Years Ended December 31,
(in thousands)	2018			2017			2016
Tax on pretax income, less noncontrolling interest, at statutory rates	$	11,441		$	17,296		$	9,742
State income taxes, net of federal effect	3,308			2,242			1,339
Tax-exempt interest income	(574		)	(1,073		)	(769		)
Non-deductible interest disallowance	30			28			18
Increase in cash surrender value life insurance	(508		)	(807		)	(452		)
Non-deductible business entertainment	156			168			106
Non-deductible merger expenses	—			65			18
Stock-based employee compensation	(50		)	(62		)	(35		)
Adjustment to the net deferred tax asset for the Tax Cuts and Jobs Act	—			885			—
Deduction attributable to share-based payments	—			(1,854		)	—
Other, net	(357		)	(621		)	(596		)
Income tax expense	$	13,446		$	16,267		$	9,371

Schedule of net deferred tax asset

The net deferred tax asset includes the following amounts of deferred tax assets and liabilities.



(in thousands)	December 31, 2018			December 31, 2017
Deferred tax assets:
ALLL	$	5,240		$	7,806
Net operating loss carryforwards	2,202			2,694
Credit carryforwards	43			1,433
Compensation	2,408			1,818
Other	2,549			1,379
Other real estate	103			—
Unrealized loss on securities AFS	1,740			794
Total deferred tax assets	14,285			15,924
Deferred tax liabilities:
Premises and equipment	(821		)	(954		)
Prepaid expenses	(693		)	(728		)
Investment securities	(1,723		)	(1,589		)
Core deposit and other intangibles	(3,563		)	(4,101		)
Estimated section 382 limitation	—			(543		)
Purchase accounting adjustments to liabilities	(2,011		)	(2,113		)
Other	(1,021		)	(868		)
Total deferred tax liabilities	(9,832		)	(10,896		)
Net deferred tax assets	$	4,453		$	5,028