INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

Total income taxes for the years ended December 31, 2018, 2017 and 2016 are presented in the table below.

	For the year ended December 31,
	2018		2017			2016
Income tax expense	$	1,108,982	$	2,814,634		$	1,688,433
Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income (loss)		(192,280)		(116,007	)		(939,482	)
Total	$	916,702	$	2,698,627		$	748,951

Income tax expense was as follows:

	For the year ended December 31,
	2018			2017		2016
Current income taxes
Federal	$	1,326,619		$	2,538,272	$	2,438,687
State		—			—		—
Total current tax expense		1,326,619			2,538,272		2,438,687
Deferred income tax (benefit) expense		(217,637	)		276,362		(750,254	)
Total income tax expense	$	1,108,982		$	2,814,634	$	1,688,433

Schedule of income tax reconciliation

The differences between actual income tax expense and the amounts computed by applying the U.S. federal income tax rate of 21% to pretax income from continuing operations for the periods indicated are reconciled in the table below.

	For the year ended December 31,
	2018			2017			2016
Computed “expected” tax expense	$	1,686,702		$	2,623,595		$	2,358,069
Increase (reduction) in income taxes resulting from:
Tax rate change impact		—			666,674			—
Amortization of credit and gain		196,477			163,411			163,411
Stock based compensation		15,205			24,378			26,012
Valuation Allowance		7,538			16,952			4,314
Other		38,936			(4,768	)		(203,854	)
State income tax, net of federal benefit		(226,578	)		(329,412	)		(319,525	)
Federal Credits		(454,985	)		—			—
Tax exempt interest income		(154,315	)		(346,196	)		(339,994	)
	$	1,108,980		$	2,814,634		$	1,688,433

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, 2018 and 2017 are presented below.

	December 31, 2018			December 31, 2017
Deferred tax assets:
Allowance for loan losses	$	850,964		$	782,714
State credit carryforward		647,190			488,052
Unrealized gain (loss) on securities available for sale		472,421			284,877
Passthrough income		68,438			70,603
State net operating loss carryforward		74,791			67,253
Nonaccrual interest		27,956			19,209
Other real estate owned		—			18,157
Other		6,155			5,214
Total gross deferred tax assets		2,147,915			1,736,079
Valuation allowance		(74,791	)		(67,253	)
Total gross deferred tax assets, net of valuation allowance		2,073,124			1,668,826
Deferred tax liabilities:
Fixed assets, principally due to differences in depreciation		(39,294	)		(36,424	)
Deferred loan fees		(32,825	)		(31,930	)
Other		(56,481	)		(53,591	)
Prepaid expenses		(210	)		(210	)
		(128,810	)		(122,155	)
Net deferred tax assets	$	1,944,314		$	1,546,671