Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

Components of income tax expense for 2016, 2015, and 2014 are as follows:

	2016			2015			2014
Current expense (benefit)	$	1,163,230		$	900,543		$	435,943
Deferred taxes (benefit)		(10,754	)		(73,379	)		303,614
Total income taxes	$	1,152,476		$	827,164		$	739,557

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:

	2016						2015						2014
	Amount			%			Amount			%			Amount			%
Taxes at statutory income tax rate	$	1,763,394			34.0		$	1,428,272			34.0		$	1,238,752			34.0
Reductions in taxes resulting from exempt income		(547,556	)		(10.6	)		(540,861	)		(12.9	)		(454,779	)		(12.5	)
Other timing differences		(63,362	)		(1.2	)		(60,247	)		(1.4	)		(44,416	)		(1.2	)
Total income taxes	$	1,152,476			22.2		$	827,164			19.7		$	739,557			20.3

The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2016, 2015, and 2014 are summarized as follows:

	2016			2015			2014
Nonqualified retirement plan	$	0		$	(7,229	)	$	0
Deferred gain on covered transaction		498			(24,154	)		0
Nonaccrual loan interest		32,157			(34,104	)		0
Foreclosed assets expenses		(3,413	)		(4,577	)		74,130
Bad debt expense in excess of tax		(31,405	)		27,850			(12,441	)
Realized impairment gain on equity securities		0			13,233			163,625
Accretion of discounted bonds		33,187			26,370			20,058
Gain on disposition of discounted bonds		(23,059	)		(3,503	)		(2,470	)
Book and tax depreciation difference		(18,719	)		(67,265	)		60,712
Total deferred taxes	$	(10,754	)	$	(73,379	)	$	303,614

	December 31
	2016			2015
Deferred tax assets:
Nonaccrual loan interest	$	1,947		$	34,104
Deferred gain on covered transaction		23,657			24,154
Alternative minimum tax		434,920			564,920
Foreclosed assets expenses		9,618			6,205
Intangible asset amortization		298,699			298,699
Bad debt expense in excess of tax		1,062,364			1,030,959
Realized loss on other-than-temporarily impaired equity securities		214,353			214,353
Nonqualified retirement plan		0			0
Pension plan		875,641			838,137
Total deferred tax assets		2,921,199			3,011,531
Deferred tax liabilities:
Accretion on bonds and gain on discounted bonds		69,133			59,005
Book and tax depreciation difference		243,593			262,312
Unrealized gain (loss) on securities available for sale		(44,416	)		243,979
Total deferred tax liabilities		268,310			565,296
Net deferred tax assets	$	2,652,889		$	2,446,235