XML 75 R18.htm IDEA: XBRL DOCUMENT v2.4.1.9
Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Taxes
Note 9. Income Taxes
 
The components of income tax expense for the years ended December 31, 2014, 2013, and 2012 are as follows:
 
2014
2013
2012
Current:
Federal
 $ 408,056 $ 400,931 $ 448,832
State
 187,266 197,671 186,616
Total current
 595,322 598,602 635,448
Deferred income (benefits) taxes:
Federal
 (253,848 ) (9,542 ) (5,130 )
State
 (32,822 ) 44,795 43,489
Total deferred (benefits) taxes
 (286,670 ) 35,252 38,359
Income tax expense
 $ 308,652 $ 633,855 $ 673,807
 
A reconciliation of income tax expense computed at the statutory rate of 34% to the actual income tax expense for the years ended December 31, 2014, 2013, and 2012 is as follows:
 
2014
2013
2012
Income before income tax expense (benefit)
 $ 2,223,178 $ 3,248,032 $ 3,338,887
Taxes computed at Federal income tax rate
 $ 755,881 $ 1,104,331 $ 1,135,222
Increase (decrease) resulting from:
Tax-exempt income
 (531,764 ) (630,710 ) (644,546 )
State income taxes, net of Federal income tax benefit
 101,933 160,027 151,869
Other
 (17,398 ) 207 31,262
Income tax expense
 $ 308,652 $ 633,855 $ 673,807
 
The components of the net deferred income tax benefits as of December 31, 2014, 2013, and 2012 are as follows:

2014
2013
2012
Deferred income tax benefits:
Accrued deferred compensation
 $ 142,308 $ 129,101 $ 120,695
Impairment loss on investment securities
 1,305,584 1,218,497 1,212,351
Allowance for credit losses
 364,697 458,303 816,722
Nonaccrual interest
 445,173 339,765 283,045
Alternative minimum tax credits
 615,186 485,444 306,523
Accumulated depreciation
 72,354 60,627 75,650
Other real estate owned
 14,940 14,940 -
Reserve for unfunded commitments
 78,890 78,890 78,890
Other temporary differences
 2,116 1,332 -
Accumulated securities premium accretion
 71,834 39,514 -
Net unrealized depreciation on investment securities available for sale
 - 778,048 -
Total deferred income tax benefits
 3,113,082 3,604,461 2,893,876
Deferred income tax liabilities:
Accumulated securities discount accretion
 - - 32,209
Net unrealized appreciation on investment securities available for sale
 67,847 - 1,626,412
Total deferred income tax liabilities
 67,847 - 1,658,621
Net deferred income tax benefits
 $ 3,045,235 $ 3,604,461 $ 1,235,255
 
Management has determined that no valuation allowance is required as it believes it is more likely than not that all of the deferred tax assets will be fully realizable in the future. At December 31, 2014, 2013, and 2012, management believes there are no uncertain tax positions under ASC Topic 740 Income Taxes (formerly FIN 48, Accounting for Uncertainty in Income Taxes).
 
The Company’s federal income tax returns for 2013, 2012, and 2011 are subject to examinations by the IRS generally for three years after they were filed. In addition, the Company’s state tax returns for the same years are subject to examination by state tax authorities for similar time periods. The 2014 income tax return will be filed in 2015.