Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

Note 10. Income Taxes

Net deferred tax assets consist of the following components as of December 31, 2011 and December 31, 2010:

		September 30,		September 30,
	December 31,
	2011		2010
Deferred tax assets:
Allowance for loan losses	$	841,541	$	766,610
Deferred compensation		789,676		683,449
Executive benefit plan		132,254		145,739
Other		492,641		529,391
		2,256,112		2,125,189
Deferred tax liabilities:
FHLB stock dividends		375,510		375,510
Depreciable assets		294,138		165,285
Other		644,029		442,334
		1,313,677		983,129
Net deferred tax assets	$	942,435	$	1,142,060

The provision for income taxes charged to income for the years ended December 31, 2011 and 2010, consists of the following:

		September 30,			September 30,
	Years Ended
	December 31,
	2011			2010
Current tax expense	$	888,055		$	706,863
Deferred benefit		(134,079	)		(713,470	)
Provision (benefit) for income taxes	$	753,976		$	(6,607	)

The income tax (benefit) provision is less than the expected tax provision computed by multiplying income before income taxes by the statutory federal income tax rates. The reasons for this difference are as follows:

		September 30,			September 30,			September 30,			September 30,
	Years Ended December 31,
	2011			%			2010			%
Expected tax at statutory rates	$	905,000			34.00	%	$	284,500			34.00	%
Tax-exempt earnings on life insurance policies		(132,700	)		(4.99	)		(122,600	)		(14.65	)
Tax-exempt interest		(79,049	)		(2.97	)		(76,500	)		(9.14	)
State income taxes, net of federal income tax benefit		114,200			4.29			35,900			4.29
Other		(53,475	)		(2.00	)		(127,907	)		(15.29	)
Provision (benefit) for income taxes	$	753,976			28.33	%	$	(6,607	)		(.79	)%