Income Taxes
 12 Months Ended
Dec. 31, 2014
Income Taxes [Abstract]  
Income Taxes
(9)
Income Taxes

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

  
2014
  
2013
  
2012
 
       
Current Federal (Benefit) Expense
 
$
1,335,337
  
$
156,642
  
$
(6,114
)
Deferred Federal Expense
  
1,932,950
   
2,178,222
   
1,204,439
 
             
Federal Income Tax Expense
  
3,268,287
   
2,334,864
   
1,198,325
 
Current State Income Tax  Expense
  
-
   
-
   
2,526
 
             
Federal and State Income Tax Expense
 
$
3,268,287
  
$
2,334,864
  
$
1,200,851
 

The federal income tax (benefit) expense of $3,268,287 in 2014, $2,334,864 in 2013 and $1,198,325 in 2012 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:

  
2014
  
2013
  
2012
 
       
Statutory Federal Income Taxes
 
$
3,671,971
  
$
2,367,729
  
$
1,306,331
 
Tax-Exempt Interest
  
(74,138
)
  
(104,307
)
  
(89,983
)
Premiums on Officers’ Life Insurance
  
(186,712
)
  
(111,749
)
  
(59,603
)
Meal and Entertainment Disallowance
  
14,044
   
15,319
   
14,574
 
Other
  
(156,878
)
  
167,872
   
27,006
 
             
Actual Federal Income Taxes
 
$
3,268,287
  
$
2,334,864
  
$
1,198,325
 
 
Deferred taxes in the accompanying consolidated balance sheets as of December 31 include the following:

  
2014
  
2013
 
     
Deferred Tax Assets
    
Allowance for Loan Losses
 
$
2,992,787
  
$
4,014,035
 
Other Real Estate
  
1,178,278
   
1,404,812
 
Deferred Compensation
  
287,365
   
303,380
 
Investments
  
340,000
   
340,000
 
Goodwill
  
256,714
   
301,238
 
Net Operating Loss Carryforward
  
-
   
730,484
 
Other
  
427,924
   
343,919
 
         
   
5,483,068
   
7,437,868
 
Deferred Tax Liabilities
        
Premises and Equipment
  
(1,299,216
)
  
(1,322,377
)
Other
  
(4,185
)
  
(2,874
)
         
   
(1,303,401
)
  
(1,325,251
)
Deferred Tax Assets (Liabilities) on Unrealized Securities Gains (Losses)
  
2,495,896
   
4,550,362
 
         
Net Deferred Tax Assets
 
$
6,675,563
  
$
10,662,979
 

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.

  
2014
  
2013
  
2012
 
       
Balance, Beginning
 
$
42,327
  
$
38,676
  
$
33,368
 
             
Positions Taken During the Current Year
  
-
   
7,247
   
11,794
 
Reductions Resulting from Lapse of Statutes of Limitation
  
42,327
   
(3,596
)
  
(6,486
)
             
Balance, Ending
 
$
-
  
$
42,327
  
$
38,676
 

The net decrease of $42,327 is included in income tax expense for the year ended December 31, 2014, while the net increase of $3,651 is included in income tax expense for the year ended December 31, 2013.