XML 80 R22.htm IDEA: XBRL DOCUMENT v2.4.1.9
Income Tax
 12 Months Ended
Dec. 31, 2014
Income Tax Disclosure [Abstract]  
Income Tax
Note 12: Income Tax
2014
2013
Income tax expense
Currently payable
Federal
$
407
$
1,286
State
 
95
 
204
Deferred
Federal
 
836
(40
)
State
 
106
 
8
Total income tax expense
$
1,444
$
1,458
Reconciliation of federal statutory to actual tax expense
Federal statutory income tax at 34%
$
2,119
$
2,005
Effect of state income taxes
 
133
 
140
Tax exempt interest
(598
)
(525
)
Cash value of life insurance
(85
)
(110
)
Other
(125
)
(52
)
Actual tax expense
$
1,444
$
1,458
Effective tax rate
23.2
%
24.7
%

 
The cumulative net deferred tax asset is included in the consolidated balance sheets in other assets. The components of the asset are as follows:
2014
2013
Assets
Allowance for loan losses
$
1,537
$
1,719
Available-for-sale securities
 
-
 
1,019
Deferred compensation
 
550
 
545
Purchase accounting adjustments
 
378
 
599
Nonaccrual interest
 
28
 
109
Real estate held for sale
 
1
 
69
Pension and employee benefits
 
48
 
-
AMT
 
227
 
-
Other
 
23
 
52
Total assets
 
2,792
 
4,112
Liabilities
Depreciation and amortization
(944
)
(585
)
Loan fees
(195
)
(184
)
Mortgage servicing rights
(224
)
(247
)
Federal Home Loan Bank stock dividends
(75
)
(90
)
Prepaid expenses
(665
)
(228
)
Available-for-sale securities
(362
)
 
-
Intangibles
(124
)
(153
)
Other
(4
)
(103
)
Total liabilities
(2,593
)
(1,590
)
$
199
$
 2,522
 
As of December 31, 2014, the Corporation had approximately $227,000 of alternative minimum tax credits available to offset future federal income taxes. The credits have no expiration date.
Retained earnings include approximately $2,100,000 for which no deferred income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions as of December 31, 1987 for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which income would be subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on the above amount was approximately $714,000.