TAXES (Tables)

12 Months Ended

Dec. 31, 2019

TAXES

Schedule of income tax provision (benefit)

The Company’s income tax provision (benefit) consists of the following (in thousands):

	Years ended December 31,
	2019		2018		2017
Federal	$	6,080	$	8,680	$	9,933
State		336		518		417
Current tax provision		6,416		9,198		10,350
Federal		1,215		(659)		3,738
State		129		12		73
Deferred tax provision (benefit)		1,344		(647)		3,811
Total tax provision	$	7,760	$	8,551	$	14,161

Schedule of income tax provision differences to federal statutory rate

	Years ended December 31,
	2019		2018		2017
Federal tax at the statutory rate	21.00	%	21.00	%	35.00	%
State tax (net of federal benefit)	1.00	%	0.99	%	1.00	%
Permanent items	0.90	%	0.90	%	0.34	%
Tax credits	(0.84)	%	(1.08)	%	(0.82)	%
Excess tax benefits on stock-based compensation	(2.49)	%	(1.94)	%	(3.42)	%
Tax Cuts and Jobs Act of 2017	—	%	—	%	3.57	%
Other	0.04	%	0.19	%	—	%
	19.61	%	20.06	%	35.67	%

Schedule of components of the deferred income tax assets and liabilities

The components of the deferred income tax assets and liabilities at December 31, 2019 and 2018, as presented in the consolidated balance sheets, are as follows (in thousands): 

	2019		2018
DEFERRED TAX ASSETS
Stock-based compensation	$	2,613	$	2,018
Compensation and benefits		623		466
Bad debt reserves		—		1
Accrued expenses		307		679
Fixed assets and depreciation		—		1,048
Base stock		4		4
Other reserves		5		—
Right of use lease liability		3,457		—
NOLs & credit carry-forwards		1,444		1,761
Deferred income tax asset	$	8,453	$	5,977
DEFERRED TAX LIABILITIES
Intangibles and amortization	$	(341)	$	(600)
Prepaid expenses		(1,354)		(1,067)
Bad debt reserves		(32)		—
Fixed assets and depreciation		(519)		—
Real estate taxes		—		(180)
Right of use asset		(3,454)		—
Other reserves		—		(5)
Federal deduction on deferred state taxes		(70)		(98)
Deferred income tax liability	$	(5,770)	$	(1,950)
NET DEFERRED INCOME TAX ASSET	$	2,683	$	4,027