XML 38 R40.htm IDEA: XBRL DOCUMENT

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

The components of income tax expense are as follows:

	2012			2011		2010
Current
Federal	$	2,124,566		$	2,088,090	$	2,672,328
State		457,585			478,495		595,026
Total current		2,582,151			2,566,585		3,267,354
Deferred		(174,151	)		10,215		(303,854	)
Total	$	2,408,000		$	2,576,800	$	2,963,500

Components of deferred taxes

The components of the deferred taxes are as follows:

Nonaccrual loan interest	$	(26,841	)	$	(31,226	)	$	(51,858	)
Provision for loan losses		(45,115	)		122,641			(136,361	)
Provision for impairment of investment value		31,197			(74,549	)		-
Other real estate owned		(136,545	)		(22,075	)		(84,356	)
Employee benefit		8,294			4,225			4,250
Depreciation		(21,256	)		16,579			(28,384	)
Discount accretion		16,115			(5,380	)		(7,145	)
	$	(174,151	)	$	10,215		$	(303,854	)

Components of net deferred tax liability

The components of the net deferred tax liability are as follows:

Deferred tax assets
Nonaccrual loan interest	$	119,919		$	93,078		$	61,852
Allowance for loan losses		61,585			16,470			139,111
Other than temporary impairment of investment value		43,352			74,549			-
Other real estate owned		266,835			130,290			108,215
Employee benefit		8,385			16,679			20,904
		500,076			331,066			330,082
Deferred tax liabilities
Depreciation		128,260			149,516			132,937
Discount accretion		16,115			-			5,380
Unrealized gain on securities available for sale		418,283			405,133			575,091
		562,658			554,649			713,408
Net deferred tax liability	$	(62,582	)	$	(223,583	)	$	(383,326	)

Reconciliation of the provision for taxes on income from statutory federal income tax rates to the effective income tax rates

A reconciliation of the provision for taxes on income from the statutory federal income tax rates to the effective income tax rates follows:

Statutory federal income tax rate	34.00	%	34.00	%	34.00	%
Increase (decrease) in tax rate resulting from
Tax-exempt income	(2.92	)	(2.51	)	(2.01	)
Non-deductible expenses	0.05		0.04		0.04
State income taxes net of federal income tax benefit	4.46		4.28		4.29
	35.59	%	35.81	%	36.32	%

- Definition

Tabular disclosure of deferred tax liabilities not recognized because of the exceptions to comprehensive recognition of deferred taxes, including a description of the temporary differences, events that would cause the temporary differences to become taxable, the cumulative amounts of the temporary differences and the amounts not recognized as deferred tax liabilities or a statement that the determination of the deferred tax liabilities is not practicable.

+ References+ Details