INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The consolidated provision for federal income tax expense at December 31, 2013 and 2012 was as follows:

	2013		2012
Current payable	$	105,000	$	0
Deferred liability		0		0
	$	105,000	$	0

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The net deferred tax asset includes the following amounts of deferred tax assets and liabilities as of December 31, 2013 and 2012:

	2013		2012
Deferred tax asset
Allowance for loan losses	$	527,146	$	720,764
Non-accrual loans		84,892		122,734
Deferred loan costs, net		18,477		18,918
AMT credit carryforward		85,306		0
Accrued Expenses (461h)		20,163		0
Foreclosed assets		1,069,467		1,359,106
Other		1,916		20,497
Net operating loss carryforward		2,555,381		3,971,753
		4,362,748		6,213,772
Deferred tax liabilities
Depreciation	$	(215,388)	$	(236,196)
Accretion on securities		(2,695)		(1,520)
Unrealized gain on securities available for sale		(217,229)		(217,229)
Prepaid expenses		(24,856)		(43,003)
Other		(11,645)		(11,645)
		(471,813)		(509,593)
	$	3,890,935	$	5,704,179
Valuation allowance		(3,890,935)		(5,704,179)
Net deferred tax asset	$	0	$	0

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the difference between federal income tax expense and the amount computed by applying the statutory rate of 34% in 2013 and 2012 is as follows:

	2013		2012
Tax at statutory rate	$	1,919,298	$	91,065
Tax-exempt interest income		(22,650)		(28,643)
Other		21,596		10,184
Change in valuation allowance		(1,813,244)		(72,606)
Federal income tax expense	$	105,000	$	0