Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes [Abstract]

Income tax expense

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

	2013		2012			2011
Current Federal (Benefit) Expense	$	156,642	$	(6,114	)	$	311,174
Deferred Federal (Benefit) Expense		2,178,222		1,204,439			867,006
Federal Income Tax (Benefit) Expense		2,334,864		1,198,325			1,178,180
Current State Income Tax (Benefit) Expense		-		2,526			(74,297	)
	$	2,334,864	$	1,200,851		$	1,103,883

Difference between financial statement tax expense and amount computed by applying statutory federal tax rate to income before income taxes

The federal income tax (benefit) expense of $2,334,864 in 2013, $1,198,325 in 2012 and $1,178,180 in 2011 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:

	2013			2012			2011
Statutory Federal Income Taxes	$	2,367,729		$	1,306,331		$	1,228,538
Tax-Exempt Interest		(110,752	)		(94,891	)		(126,468	)
Interest Expense Disallowance		6,445			4,908			8,751
Premiums on Officers’ Life Insurance		(111,749	)		(59,603	)		(52,431	)
Meal and Entertainment Disallowance		26,549			25,567			20,693
Other		156,642			16,013			99,097
Actual Federal Income Taxes	$	2,334,864		$	1,198,325		$	1,178,180

Deferred tax assets and liabilities

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

	2013			2012
Deferred Tax Assets
Allowance for Loan Losses	$	4,014,035		$	4,330,553
Other Real Estate		1,404,812			1,668,653
Deferred Compensation		303,380			342,547
Investments		340,000			-
Goodwill		301,238			345,762
Net Operating Loss Carryforward		730,484			2,310,708
Other		343,919			529,706
		7,437,868			9,527,929
Deferred Tax Liabilities
Premises and Equipment		(1,322,377	)		(1,232,905	)
Other		(2,874	)		(4,185	)
		(1,325,251	)		(1,237,090	)
Deferred Tax Assets (Liabilities) on Unrealized Securities Gains (Losses)		4,550,362			77,177
Net Deferred Tax Assets	$	10,662,979		$	8,368,016

Unrecognized taxes

The deferred tax assets are included in Other Assets in the consolidated balance sheets.  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 as of December 31 follows.

	2013			2012			2011
Balance, Beginning	$	38,676		$	33,368		$	78,121
Positions Taken During the Current Year		7,247			11,794			14,275
Reductions Resulting from Lapse of Statutes of Limitation		(3,596	)		(6,486	)		(59,028	)
Balance, Ending	$	42,327		$	38,676		$	33,368