Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Schedule of provision for income taxes
(Dollars in Thousands) 2018 2017 2016
Current:
Federal $ (1,617) $ 5,792 $ 2,295
State 201 140 115
(1,416) 5,932 2,410
Deferred:
Federal 3,620 1,232 2,742
State 1,285 974 712
Expense Due to Enactment of Federal Tax Reform - 4,066 -
Change in Valuation Allowance (68) (1) 3
4,837 6,271 3,457
Total:
Federal 2,003 7,024 5,037
State 1,486 1,114 827
Expense Due to Enactment of Federal Tax Reform - 4,066 -
Change in Valuation Allowance (68) (1) 3
Total $ 3,421 $ 12,203 $ 5,867
Schedule of effective income tax rate reconciliation
(Dollars in Thousands) 2018 2017 2016
Tax Expense at Federal Statutory Rate $ 6,225 $ 8,074 $ 6,165
Increases (Decreases) Resulting From:
Tax-Exempt Interest Income (494) (805) (662)
2017 Provision to Return - Impact of Federal Tax Reform (3,590) - -
State Taxes, Net of Federal Benefit 1,174 724 538
Other 348 439 121
Change in Valuation Allowance (68) (1) 3
Tax-Exempt Cash Surrender Value Life Insurance Benefit (174) (294) (298)
Expense Due to Enactment of Federal Tax Reform - 4,066 -
Actual Tax Expense $ 3,421 $ 12,203 $ 5,867
Schedule of deferred income tax liabilities and assets
(Dollars in Thousands) 2018 2017
Deferred Tax Assets Attributable to:
Allowance for Loan Losses $ 3,602 $ 3,373
Accrued Pension/SERP 9,102 10,289
State Net Operating Loss and Tax Credit Carry-Forwards 4,532 5,074
Other Real Estate Owned 1,270 1,520
Federal Net Operating Loss and Tax Credit Carry-Forwards - 50
Accrued SERP Liability 1,869 1,398
Other 3,101 2,694
Total Deferred Tax Assets $ 23,476 $ 24,398
Deferred Tax Liabilities Attributable to:
Depreciation on Premises and Equipment $ 3,970 $ 3,272
Deferred Loan Fees and Costs 2,356 2,266
Intangible Assets 3,232 3,035
Accrued Pension Liability 5,001 907
Investments 469 469
Other 4 5
Total Deferred Tax Liabilities 15,032 9,954
Valuation Allowance 1,688 1,755
Net Deferred Tax Asset $ 6,756 $ 12,689