INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of the components of income tax expense

	2012			2011			2010
Current tax expense (benefit)	$	(86,388	)	$	675,212		$	(227,637	)
Deferred tax expense (benefit)		(814,682	)		(1,757,769	)		(675,112	)
Total income tax expense (benefit)	$	(901,070	)	$	(1,082,557	)	$	(902,749	)

Schedule of reconciliation of income tax expense with the amounts computed by applying the statutory federal income tax rate to earnings before income taxes

	2012			2011			2010
Income tax expense at statutory rate	$	(44,963	)	$	(276,737	)	$	(93,008	)
Tax-exempt interest income—net of disallowed interest expense		(593,130	)		(593,502	)		(600,841	)
Nondeductible expenses		—			—			14,165
Cash surrender value of life insurance income		(205,634	)		(125,420	)		(130,151	)
Other—net		(57,343	)		(86,898	)		(92,914	)
Income tax expense (benefit)	$	(901,070	)	$	(1,082,557	)	$	(902,749	)

Schedule of the tax effects of temporary differences that give rise to significant amounts of deferred tax assets and deferred tax liabilities

	2012			2011
Deferred tax assets:
Net operating losses and credits	$	1,114,223		$	1,199,939
Loans, principally due to difference in allowance for loan losses and deferred loan fees		1,207,696			1,377,136
Nonaccrual loan interest		1,096,904			1,009,721
Postretirement benefit accrual, deferred compensation		1,073,002			1,032,690
Other real estate owned		808,479			734,217
Other		1,213,850			468,851
Gross deferred tax asset		6,514,154			5,822,554
Valuation allowance		(128,474	)		(130,823	)
Total deferred tax assets		6,385,680			5,691,731
Deferred tax liabilities:
Net unrealized gain on securities available for sale		1,399,858			1,351,989
Purchased loan discount		68,417			102,625
Premises and equipment		364,990			310,796
Other		73,050			213,764
Total deferred tax liabilities		1,906,315			1,979,174
Net deferred tax assets	$	4,479,365		$	3,712,557