Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

Components of income tax expense for 2015, 2014, and 2013 are as follows:

	2015			2014		2013
Current expense (benefit)	$	900,543		$	435,943	$	(120,244	)
Deferred taxes (benefit)		(73,379	)		303,614		484,908
Total income taxes	$	827,164		$	739,557	$	364,664

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:

	2015						2014						2013
	Amount			%			Amount			%			Amount			%
Taxes at statutory income tax rate	$	1,428,272			34.0		$	1,238,752			34.0		$	1,066,582			34.0
Reductions in taxes resulting from exempt income		(540,861	)		(12.9	)		(454,779	)		(12.5	)		(464,631	)		(14.8	)
Other timing differences		(60,247	)		(1.4	)		(44,416	)		(1.2	)		(237,287	)		(7.6	)
Total income taxes	$	827,164			19.7		$	739,557			20.3		$	364,664			11.6

The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2015, 2014, and 2013 are summarized as follows:

	2015			2014			2013
Nonqualified retirement plan	$	(7,229	)	$	0		$	0
Deferred gain on covered transaction		(24,154	)		0			0
Nonaccrual loan interest		(34,104	)		0			0
Foreclosed assets expenses		(4,577	)		74,130			297,004
Bad debt expense in excess of tax		27,850			(12,441	)		(310,694	)
Realized impairment gain on equity securities		13,233			163,625			509,736
Accretion of discounted bonds		26,370			20,058			9,175
Gain on disposition of discounted bonds		(3,503	)		(2,470	)		(7,106	)
Book and tax depreciation difference		(67,265	)		60,712			(13,207	)
Total deferred taxes	$	(73,379	)	$	303,614		$	484,908

	December 31
	2015		2014
Deferred tax assets:
Nonaccrual loan interest	$	34,104	$	0
Deferred gain on covered transaction		24,154		0
Alternative minimum tax		564,920		231,038
Foreclosed assets expenses		6,205		1,628
Intangible asset amortization		298,699		298,699
Bad debt expense in excess of tax		1,030,959		1,058,809
Realized loss on other-than-temporarily impaired equity securities		214,353		227,586
Nonqualified retirement plan		0		(7,229	)
Pension plan		838,137		487,245
Total deferred tax assets		3,011,531		2,297,776
Deferred tax liabilities:
Accretion on bonds and gain on discounted bonds		59,005		36,138
Book and tax depreciation difference		262,312		329,577
Unrealized gain on securities available for sale		243,979		198,156
Total deferred tax liabilities		565,296		563,871
Net deferred tax assets	$	2,446,235	$	1,733,905