INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2017 and 2016 are as follows (in thousands):



	2017 ⁽¹⁾		2016
Deferred tax assets:
Allowance for loan losses	$	5,860	$	9,177
Loss on transfer of loans to held-for-sale	1,266		—
Unrealized losses on securities	713		890
Write-down on assets held-for-sale	285		—
Core deposit intangible	153		37
Deferred compensation	358		696
Other	667		640
Total deferred tax assets	9,302		11,440
Deferred tax liabilities:
Premises and equipment	1,589		3,318
Goodwill	1,321		1,820
FHLB stock dividends	57		80
Unrealized gains on cash flow hedges	226		346
Prepaid expenses	220		306
Purchase accounting adjustments on securities	392		753
Other	105		245
Total deferred tax liabilities	3,910		6,868
Net deferred tax asset	$	5,392	$	4,572

(1) For 2017, the amounts presented are reflective of the 21 percent tax rate.

Components of Income Tax Expense

Components of income tax (benefit) expense are as follows (in thousands):



	2017			2016			2015
Current	$	(1,719	)	$	5,439		$	6,368
Deferred benefit	(4,474		)	(1,582		)	(1,785		)
Write-down of net deferred tax asset resulting from the Tax Cuts and Jobs Act	3,595			—			—
Total income tax (benefit) expense	$	(2,598	)	$	3,857		$	4,583

Income Tax Reconciliation

The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% on pre-tax income as follows (in thousands):



	December 31,
	2017			2016			2015
Taxes calculated at statutory rate	$	(5,026	)	$	4,654		$	5,460
Increase (decrease) resulting from:
Tax-exempt interest, net	(524		)	(615		)	(766		)
Deferred compensation	(315		)	—			—
Write-down of net deferred tax asset resulting from the Tax Cuts and Jobs Act	3,595			—			—
Other	(328		)	(182		)	(111		)
	$	(2,598	)	$	3,857		$	4,583