INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Components of Income Tax Expense (Benefit)

The income tax expense (benefit) consists of the following components:

	For the Year Ended December 31,
	2017		2016		2015
	(Dollars in thousands)
Current	$	284	$	300	$	577
Deferred		9,466		7,843		7,316
Enactment of Federal Tax reform		1,545		—		—
Total	$	11,295	$	8,143	$	7,893

Summary of Difference in Effective Tax Rates and Statutory Federal Income Tax Rate of 35%

Effective tax rates differ from the statutory federal income tax rate of 35% due to the following:

	For the Year Ended December 31,
	2017						2016						2015
	Dollars			Rate			Dollars			Rate			Dollars			Rate
	(Dollars in thousands)
Tax at statutory rate	$	11,578			35.0	%	$	9,440			35.0	%	$	8,461			35.0	%
Increase (decrease) due to:
Tax exempt income		(553	)		(1.7	)%		(471	)		(1.7	)%		(45	)		(0.2	)%
Life insurance		(569	)		(1.7	)%		(523	)		(1.9	)%		(602	)		(2.5	)%
Tax exempt insurance premiums		(303	)		(0.9	)%		—			—	%		—			—	%
Equity compensation		(246	)		(0.7	)%		—			—	%		—			—	%
Enactment of federal tax reform		1,545			4.6	%		—			—	%		—			—	%
Disproportionate tax reversal		—			—	%		(511	)		(1.9	)%		—			—	%
Other		(157	)		(0.5	)%		208			0.7	%		79			0.3	%
Income tax provision	$	11,295			34.1	%	$	8,143			30.2	%	$	7,893			32.6	%

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are as follows:

	December 31,
	2017		2016
	(Dollars in thousands)
Deferred tax assets:
Loan loss reserves	$	4,452	$	6,680
Depreciation		413		748
Other real estate owned valuation		85		354
Tax credits carryforward		2,193		1,471
Unrealized loss on securities available for sale		241		1,685
Unrealized loss on securities held to maturity		217		431
Interest on nonaccrual loans		482		1,039
Net operating loss carryforward		914		8,574
Purchase accounting adjustment		442		—
Accrued bonuses		551		812
Other		176		221
Deferred tax assets		10,166		22,015
Deferred tax liabilities:
Deferred loan fees		1,145		1,275
Federal Home Loan Bank stock dividends		2,787		4,585
Mortgage servicing rights		1,401		2,124
FHLB prepayment penalty		307		786
Purchase accounting adjustment		—		371
Prepaid expenses		306		139
Deferred tax liabilities		5,946		9,280
Net deferred tax asset	$	4,220	$	12,735