INCOME TAXES	9 Months Ended
Sep. 30, 2016
INCOME TAXES
INCOME TAXES	11.INCOME TAXES The Corporation has reported deferred tax assets of $9.287 million at September 30, 2016. A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized. The Corporation, as of September 30, 2016 had a net operating loss and tax credit carryforwards for tax purposes of approximately $11.200 million, and $2.300 million, respectively. The Corporation evaluated the future benefits from these carryforwards as of September 30, 2016 and determined that it was “more likely than not” that they would be utilized prior to expiration. The net operating loss carryforwards expire twenty years from the date they originated. These carryforwards, if not utilized, will begin to expire in the year 2023. A portion of the NOL and credit carryforwards are subject to the limitations for utilization as set forth in Section 382 of the Internal Revenue Code. The annual limitation is $1.404 million for the NOL and the equivalent value of tax credits, which is approximately $.476 million. These limitations for use were established in conjunction with the recapitalization of the Corporation in December 2004. The Corporation will continue to evaluate the future benefits from these carryforwards in order to determine if any adjustment to the deferred tax asset is warranted. The Corporation recognized a federal income tax expense of approximately $.922 million for the three months ended September 30, 2016 and an expense of $1.481 million for the nine months ended September 30, 2016 and a deferred tax expense of $.526 million and $2.074 million for the three and nine months ended September 30, 2015.

INCOME TAXES

9 Months Ended

Sep. 30, 2016

11.INCOME TAXES

The Corporation has reported deferred tax assets of $9.287 million at September 30, 2016. A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized. The Corporation, as of September 30, 2016 had a net operating loss and tax credit carryforwards for tax purposes of approximately $11.200 million, and $2.300 million, respectively. The Corporation evaluated the future benefits from these carryforwards as of September 30, 2016 and determined that it was “more likely than not” that they would be utilized prior to expiration. The net operating loss carryforwards expire twenty years from the date they originated. These carryforwards, if not utilized, will begin to expire in the year 2023. A portion of the NOL and credit carryforwards are subject to the limitations for utilization as set forth in Section 382 of the Internal Revenue Code. The annual limitation is $1.404 million for the NOL and the equivalent value of tax credits, which is approximately $.476 million. These limitations for use were established in conjunction with the recapitalization of the Corporation in December 2004. The Corporation will continue to evaluate the future benefits from these carryforwards in order to determine if any adjustment to the deferred tax asset is warranted.

The Corporation recognized a federal income tax expense of approximately $.922 million for the three months ended September 30, 2016 and an expense of $1.481 million for the nine months ended September 30, 2016 and a deferred tax expense of $.526 million and $2.074 million for the three and nine months ended September 30, 2015.