Income taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income taxes [Abstract]

Tax effects of temporary differences, comprise net deferred tax assets and liabilities

The following summarizes the tax effects of temporary differences which comprise net deferred tax assets and liabilities at December 31, 2013 and 2012:

	2013		2012		2011
Deferred tax assets
Net operating loss carryforward	$	5,315,578	$	4,786,458	$	1,541,937
Allowance for loan losses		2,461,146		3,674,661		5,464,284
Unrealized loss on available-for-sale securities		1,933,081		37,206		-
Interest on nonaccrual loans		912,901		541,392		808,249
Expenses and writedowns related to foreclosed property		2,225,103		2,318,413		758,073
Gain on disposal of fixed assets		-		52,885		-
Merger stock options replacement		89,796		134,200		134,200
Stock compensation		2,614		122,728		98,733
Employee benefits		845,128		378,831		283,398
Pension expense		44,199		48,615		53,031
Depreciation		45,798		-		-
Goodwill		70,288		85,908		101,528
Other, net		27,499		19,079		18,719
Total deferred tax assets		13,973,131		12,200,376		9,262,152
Deferred tax liabilities
Depreciation		-		955,198		830,146
Unrealized gain on available-for-sale securities		-		-		49,175
Loss on disposal of foreclosed real estate		-		919,719		276,629
Loss on disposal of fixed assets		-		-		12,541
Amortization of intangibles		100,485		167,305		235,889
Total deferred tax liabilities		100,485		2,042,222		1,404,380
Net deferred tax asset prior to valuation allowance		13,872,646		10,158,153		7,857,772
Less valuation allowance		11,939,565		10,158,153		3,928,886
Net deferred tax asset	$	1,933,081	$	-	$	3,928,886

Income tax expense (benefit) charged to operations

The income tax expense (benefit) charged to operations for the years ended December 31, 2013, 2012 and 2011 consists of the following:

	2013			2012			2011
Current tax expense (benefit)	$	70,772		$	-		$	64,000
Deferred tax expense (benefit)		(1,852,183	)		(2,174,411	)		(4,419,758	)
Valuation allowance		1,781,411			6,229,268			3,928,886
Provision (benefit) for income taxes	$	-		$	4,054,857		$	(426,872	)

Reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes

A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2013, 2012 and 2011:

	2013			2012			2011
Net income (loss) before income taxes	$	(4,006,738	)	$	(6,344,143	)	$	(12,246,994	)
Computed "expected" tax expense (benefit)	$	(1,362,301	)	$	(2,157,009	)	$	(4,163,978	)
Valuation allowance change		1,781,411			6,229,268			3,928,886
State taxes, net of fed		46,709			-			-
Cash surrender value of life insurance		(64,426	)		(64,907	)		(65,804	)
Other		(401,393	)		47,505			(125,976	)
Provision (benefit) for income taxes	$	-		$	4,054,857		$	(426,872	)