13. INCOME TAX EXPENSE (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Expense Tables

Components of the income tax expense

	2017			2016		2015
Current expense	$	3,671		$	3,046	$	3,227
Deferred expense (benefit)		(152	)		53		(341	)
Adjustments to deferred tax asset due to change in federal tax rate		811			-		-
Total deferred (benefit) expense		659			53		(341	)
Total Income Tax Expense	$	4,330		$	3,099	$	2,886

Components of the deferred taxes

	2017		2016
Deferred Tax Assets:
Allowance for loan losses	$	1,265	$	2,354
Split Dollar Life Insurance		3		4
Nonqualified deferred compensation		546		856
Low income housing partnerships losses		203		94
Core deposit amortization		108		165
Other real estate owned		173		280
Unfunded pension benefit obligation		1,096		1,633
Total Assets	$	3,394	$	5,386

	2017			2016
Deferred Tax Liabilities:
Unearned low income housing credits	$	180		$	307
Depreciation		340			437
Prepaid pension		1,010			1,840
Goodwill tax amortization		559			901
Net unrealized gain (loss) on securities available for sale		(5	)		3
Total Liabilities		2 084			3,488
Net Deferred Tax Asset (included in Other Assets on Balance Sheet)	$	1,310		$	1,898

Differences in actual income tax expense and the amounts computed using the federal statutory tax rates

	2017			2016			2015
Tax expense at federal statutory rates	$	4,511		$	4,307		$	3,843
Increases (decreases) in taxes resulting from:
State income taxes, net of federal benefit		-			6			8
Partially tax-exempt income		(59	)		(41	)		(46	)
Tax-exempt income		(212	)		(217	)		(223	)
LIH and historic credits		(633	)		(896	)		(701	)
Deferred Tax Asset rate change		811
Other		(88	)		(60	)		5
Total Income Tax Expense	$	4,330		$	3,099		$	2,886