INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes Tables

Schedule of components of income tax expense

Total income taxes for the years ended December 31, 2012, 2011 and 2010 are as follows

	YEARS ENDED DECEMBER 31,
	2012		2011		2010
Income tax expense	$	1,604,250	$	1,347,949	$	1,384,431
Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income		109,467		1,035,557		(311,158	)
Total	$	1,713,717	$	2,383,506	$	1,073,273

Schedule of Income Tax Breakdown between Federal and State and Local

Income tax expense attributable to income before income tax expense consists of:

YEAR ENDED DECEMBER 31, 2012	Current		Deferred			Total
U.S. Federal	$	1,619,265	$	(183,607	)	$	1,435,658
State and local		168,592		—			168,592
	$	1,787,857	$	(183,607	)	$	1,604,250

YEAR ENDED DECEMBER 31, 2011	Current		Deferred			Total
U.S. Federal	$	1,292,984	$	(85,291	)	$	1,207,693
State and local		140,256		—			140,256
	$	1,433,240	$	(85,291	)	$	1,347,949

YEAR ENDED DECEMBER 31, 2010	Current		Deferred		Total
U.S. Federal	$	1,233,179	$	12,409	$	1,245,588
State and local		138,843		—		138,843
	$	1,372,022	$	12,409	$	1,384,431

Schedule of reconciliation of expected income tax to actual

Income tax expense attributable to income before income tax expense was $1,604,250, $1,347,949, and $1,384,431 for the years ended December 31, 2012, 2011 and 2010, respectively, and differed from amounts computed by applying the U.S. federal income tax rate of 34% to pretax income from continuing operations as a result of the following:

	YEARS ENDED
	DECEMBER 31,
	2012			2011			2010
Computed “expected” tax expense	$	1,792,167		$	1,542,671		$	1,532,200
Increase (reduction) in income taxes Resulting from:
Tax exempt interest income		(338,592	)		(317,802	)		(270,759	)
State income tax, net of federal benefit		111,271			92,569			91,637
Other, net		39,404			30,511			31,353
	$	1,604,250		$	1,347,949		$	1,384,431

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2012 and 2011 are presented below:

	DECEMBER 31,
	2012			2011
Deferred tax assets:
State Net Operating Loss Carryforward	$	32,307		$	26,101
Allowance for loan losses		1,098,416			987,589
Other		88,991			38,550
Total gross deferred tax assets		1,219,714			1,052,240
Less valuation allowance		(32,307	)		(26,101	)
Net deferred tax assets		1,187,407			1,026,139
Deferred tax liabilities:
Prepaid expenses		(19,100	)		(25,071	)
Unrealized gain on securities available for sale		(1,292,117	)		(1,182,650	)
Deferred loan fees		(20,470	)		(20,115	)
Fixed assets, principally due to differences in depreciation		(48,414	)		(65,137	)
Other Bond Accretion		(27,750	)		(27,750	)
Total gross deferred tax liabilities		(1,407,851	)		(1,320,723	)
Net deferred tax liability	$	(220,444	)	$	(294,584	)