Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(9)  Income Taxes

The components of income tax expense for the years ended December 31 are as follows:

	2011			2010			2009
Current Federal (Benefit) Expense	$	311,174		$	(1,037,717	)	$	(4,075,442	)
Deferred Federal (Benefit) Expense		867,006			639,607			(5,869,055	)
Federal Income Tax (Benefit) Expense		1,178,180			(398,110	)		(9,944,497	)
Current State Income Tax (Benefit) Expense		(74,297	)		(61,104	)		(50,384	)
	$	1,103,883		$	(459,214	)	$	(9,994,881	)

The federal income tax (benefit) expense of $1,178,180 in 2011, $(398,110) in 2010 and $(9,944,497) in 2009 is different than the income taxes computed by applying the federal statutory rates to income before income taxes.  The reasons for the differences are as follows:

	2011			2010			2009
Statutory Federal Income Taxes	$	1,228,538		$	5,101		$	(9,920,776	)
Tax-Exempt Interest		(126,468	)		(117,586	)		(185,775	)
Interest Expense Disallowance		8,751			8,400			16,729
Premiums on Officers' Life Insurance		(52,431	)		(134,106	)		(58,906	)
Meal and Entertainment Disallowance		20,693			24,972			32,068
Goodwill		-			-			58,507
Other		99,097			(184,891	)		113,656
Actual Federal Income Taxes	$	1,178,180		$	(398,110	)	$	(9,944,497	)

Deferred taxes in the accompanying consolidated balance sheets as of December 31 include the following:

	2011			2010
Deferred Tax Assets
Allowance for Loan Losses	$	5,320,862		$	9,615,226
Other Real Estate		1,012,326			511,839
Deferred Compensation		386,225			423,233
Restricted Stock		508,547			504,772
Goodwill		392,124			439,100
Net Operating Loss Carryforward		2,992,777
Other		559,836			470,435
		11,172,697			11,964,605
Deferred Tax Liabilities
Premises and Equipment		(1,195,334	)		(1,184,064	)
Vested Restricted Stock		(476,540	)		(412,715	)
Other		(4,185	)		(4,185	)
		(1,676,059	)		(1,600,964	)
Deferred Tax Assets (Liabilities) on Unrealized Securities Gains (Losses)		(983,807	)		308,982
Net Deferred Tax Assets	$	8,512,831		$	10,672,623

As discussed in Note 1, certain positions taken in the Company's tax returns may be subject to challenge by the taxing authorities.  An analysis of activity related to unrecognized taxes follows as of        December 31, 2011 and 2010.

	2011			2010
Balance, Beginning	$	78,121		$	221,584
Positions Taken During the Current Year		14,275			17,259
Reductions Resulting from Lapse of Statutes of Limitation		(59,028	)		(160,722	)
Balance, Ending	$	33,368		$	78,121

The net reduction of $44,753 and $143,463 is included in income tax benefits for the years ended December 31, 2011 and 2010, respectively.