Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

Components of income tax expense for 2014, 2013, and 2012 are as follows:

	2014		2013			2012
Current expense (benefit)	$	435,943	$	(120,244	)	$	428,433
Deferred taxes (benefit)		303,614		484,908			(47,555	)
Total income taxes	$	739,557	$	364,664		$	380,878

The reasons for the difference between the federal income taxes in the consolidated statements of income and the amount and percentage computed by the applying the combine statutory federal and state income tax rate to income taxes are as follows:

	2014						2013						2012
	Amount			%			Amount			%			Amount			%
Taxes at statutory income tax rate	$	1,238,752			34.0		$	1,066,582			34.0		$	788,788			34.0
Reductions in taxes resulting from exempt income		(454,779	)		(12.5	)		(464,631	)		(14.8	)		(397,596	)		(17.1	)
Other timing differences		(44,416	)		(1.2	)		(237,287	)		(7.6	)		(10,314	)		(0.4	)
Total income taxes	$	739,557			20.3		$	364,664			11.6		$	380,878			16.5

The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2014, 2013, and 2012 are summarized as follows:

	2014			2013			2012
Nonaccrual loan interest	$	0		$	0		$	9,265
Foreclosed assets expenses		74,130			297,004			(94,690	)
Bad debt expense in excess of tax		(12,441	)		(310,694	)		86,733
Realized impairment (loss) gain on equity securities		163,625			509,736			0
Accretion of discounted bonds		20,058			9,175			8,057
Gain on disposition of discounted bonds		(2,470	)		(7,106	)		(8,272	)
Book and tax depreciation difference		60,712			(13,207	)		(48,648	)
Total deferred taxes	$	303,614		$	484,908		$	(47,555	)

	December 31
	2014			2013
Deferred tax assets:
Alternative minimum tax	$	231,038		$	231,038
Foreclosed assets expenses		1,628			75,758
Intangible asset amortization		298,699			298,699
Bad debt expense in excess of tax		1,058,809			1,046,368
Realized loss on other-than-temporarily impaired equity securities		227,586			391,211
Unrealized loss on securities available for sale		0			208,869
Nonqualified retirement plan		(7,229	)		(7,229	)
Pension plan		487,245			506,183
Total deferred tax assets		2,297,776			2,750,897
Deferred tax liabilities:
Accretion on bonds and gain on discounted bonds		36,138			18,550
Book and tax depreciation difference		329,577			268,865
Unrealized gain on securities available for sale		198,156			0
Total deferred tax liabilities		563,871			287,415
Net deferred tax assets	$	1,733,905		$	2,463,482