INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense

Total income taxes for the years ended December 31, 2020, 2019 and 2018 are presented in the table below.

	For the year ended December 31,
	2020		2019			2018
Income tax expense	$	1,965,679	$	2,175,274		$	1,108,982
Unrealized gains (losses) on securities available for sale presented in accumulated other comprehensive income (loss)		315,546		(600,765	)		(192,280	)
Total	$	2,281,225	$	1,574,509		$	916,702

Income tax expense was as follows:

	For the year ended December 31,
	2020		2019		2018
Current income taxes
Federal	$	1,543,334	$	1,742,430	$	1,326,619
State		—		—		—
Total current tax expense		1,543,334		1,742,430		1,326,619
Deferred income tax (benefit) expense		422,345		432,844		(217,637	)
Total income tax expense	$	1,965,679	$	2,175,274	$	1,108,982

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,
	2020			2019			2018
Computed “expected” tax expense	$	1,769,525		$	1,993,679		$	1,686,702
Increase (reduction) in income taxes resulting from:
Amortization of credit and gain		—			1,685			196,477
Stock based compensation		19,527			16,391			15,205
Valuation allowance		8,083			7,123			7,538
Other		7,259			6,233			38,938
State income tax, net of federal benefit		238,729			268,000			(226,578	)
Federal credits		—			—			(454,985	)
Tax exempt interest income		(77,444	)		(117,837	)		(154,315	)
	$	1,965,679		$	2,175,274		$	1,108,982

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, 2020 and 2019 are presented below.

	December 31, 2020			December 31, 2019
Deferred tax assets:
Allowance for loan losses	$	849,159		$	806,982
State credit carryforward		5,762			307,950
Deferred loan fees		141,993			—
Passthrough income		26,525			68,438
State net operating loss carryforward		89,997			81,914
Nonaccrual interest		30,528			41,453
Other		9,432			6,934
Total gross deferred tax assets		1,153,396			1,313,671
Valuation allowance		(89,997	)		(81,914	)
Total gross deferred tax assets, net of valuation allowance		1,063,399			1,231,757
Deferred tax liabilities:
Fixed assets, principally due to differences in depreciation		(382,668	)		(109,169	)
Unrealized (gain) loss on securities available for sale		(443,889	)		(128,344	)
Deferred loan fees		—			(32,696	)
Other		(57,918	)		(57,741	)
Prepaid expenses		(21,633	)		(225	)
		(906,108	)		(328,175	)
Net deferred tax assets	$	157,291		$	903,582