Income Taxes

6 Months Ended

Jun. 30, 2022

Income Taxes [Abstract]

Income Taxes

7.     INCOME TAXES

The Company’s effective tax rate for the six month periods ended June 30, 2022 was 21.3% compared to 21.4% for the same period in 2021. Effective rates are dependent upon components of pretax earnings and losses and the related tax effects.

Income tax expense for the six month periods ended June 30, 2022 and 2021 differed from the amounts computed by applying the U.S. federal tax rate of 21% to pretax income from continuing operations as demonstrated in the following table:

	For the Three-Months Ended
	June 30,
	2022		2021
Provision for income taxes at the statutory federal tax rates	$	(1,100,569)	$	151,435
Increase (reduction) in taxes resulting from:
Dividends received deduction		(11,117)		(7,967)
Tax-exempt interest income		(12,961)		(14,753)
Proration of tax-exempt interest and dividends received deduction		5,828		5,499
Nondeductible expenses		10,119		24,069
Officer life insurance, net		(3,335)		167
Total	$	(1,112,035)	$	158,450

	For the Six-Months Ended
	June 30,
	2022		2021
Provision for income taxes at the statutory federal tax rates	$	(1,144,657)	$	460,532
Increase (reduction) in taxes resulting from:
Dividends received deduction		(22,398)		(16,075)
Tax-exempt interest income		(26,312)		(29,547)
Proration of tax-exempt interest and dividends received deduction		11,798		11,063
Nondeductible expenses		27,411		42,095
Officer life insurance, net		(7,682)		333
Total	$	(1,161,840)	$	468,401

Management believes it is more likely than not that all deferred tax assets will be recovered as the result of future operations, which will generate sufficient taxable income to realize the deferred tax asset.

As of June 30, 2022 and December 31, 2021, the Company does not have any capital or operating loss carryforwards. Periods still subject to IRS audit include 2018 through current year. There are currently no open tax exams.