Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

Components of income tax expense for 2018, 2017, and 2016 are as follows:

	2018		2017		2016
Current expense	$	28,779	$	1,101,902	$	1,163,230
Deferred taxes (benefit)		639,637		517,998		(10,754	)
Total income taxes	$	668,416	$	1,619,900	$	1,152,476

Schedule of Income Taxes

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:

	2018						2017						2016
	Amount			%			Amount			%			Amount			%
Taxes at statutory income tax rate	$	1,116,262			21.0		$	1,845,313			34.0		$	1,763,394			34.0
Reductions in taxes resulting from exempt income		(272,486	)		(5.1	)		(524,347	)		(9.7	)		(547,556	)		(10.6	)
Other timing differences		(175,360	)		(3.3	)		298,934			5.5			(63,362	)		(1.2	)
Total income taxes	$	668,416			12.6		$	1,619,900			29.8		$	1,152,476			22.2

Schedule of Effective Income Tax Rate Reconciliation

The sources of timing differences for tax reporting purposes and the related deferred taxes recognized in 2018, 2017, and 2016 are summarized as follows:

	2018			2017			2016
Nonqualified retirement plan	$	0		$	0		$	0
Intangible asset amortization		0			172,816			0
Deferred gain on covered transaction		5,004			9,352			498
Nonaccrual loan interest		8,369			(6,896	)		32,157
Recognition of AMT tax credit carryforward		332,776			0			0
Foreclosed assets expenses		41,530			(42,075	)		(3,413	)
Bad debt expense in excess of tax		(80,902	)		423,203			(31,405	)
Realized impairment gain on equity securities		0			0			0
Accretion of discounted bonds		16,805			14,772			33,187
Gain on disposition of discounted bonds		(4,188	)		(28,215	)		(23,059	)
Book and tax depreciation difference		357,266			(24,959	)		(18,719	)
Other timing differences		(37,023	)		0			0
Total deferred taxes	$	639,637		$	517,998		$	(10,754	)

Schedule of Deferred Tax Assets and Liabilities

	December 31
	2018		2017
Deferred tax assets:
Nonaccrual loan interest	$	474	$	8,843
Deferred gain on covered transaction		9,300		14,304
Alternative minimum tax		0		332,776
Foreclosed assets expenses		10,163		51,693
Intangible asset amortization		125,883		125,883
Bad debt expense in excess of tax		720,063		639,161
Realized loss on other-than-temporarily impaired equity securities		214,353		214,353
Deferred directors compensation		133,057		104,561
Capital loss carryforward		32,878		32,878
Pension plan		443,698		435,172
Unrealized losses on securities available for sale		137,761		0
Total deferred tax assets		1,827,630		1,959,624
Deferred tax liabilities:
Accretion on bonds and gain on discounted bonds		68,307		55,690
Book and tax depreciation difference		575,899		218,634
Unrealized gains on securities available for sale		0		1,982
Total deferred tax liabilities		644,206		276,306
Net deferred tax assets	$	1,183,424	$	1,683,318