Entity information:
(
9
)
Income
Taxes
 
The Tax Cuts and Jobs Act (the "
TCJ Act"), enacted on
December 22, 2017,
reduced the U.S. federal corporate tax rate to
21
percent.
As a result of the enactment of the TCJ Act we have remeasured our deferred tax assets and liabilities based upon the new U.S. statutory federal income tax rate of
21%,
which is the tax rate at which these assets and liabilities are expected to reverse in the future. Notwithstanding the foregoing, we are still analyzing certain aspects of the new law and refining our calculations, which could affect the measurement of these assets and liabilities or give rise to new deferred tax amounts. Nonetheless, we recognized additional income tax expense of
$2,040,946
in the
fourth
quarter of
2017
related to the remeasurement of our deferred tax assets and liabilities.
 
The
components of income tax expense for the years ended
December 31
are as follows:
 
   
20
1
7
    
20
16
    
20
15
  
                         
Current
Federal Expense
  
$
3,943,495
     $
3,629,213
     $
3,162,367
  
Deferred
Federal Expense
  
 
793,012
      
222,120
      
625,436
  
Deferred Tax Expense from Tax Rate Changes
  
 
2,040,946
    
 
-
   
 
-
 
                         
Federal
Income Tax Expense
  
 
6,777,453
      
3,851,333
      
3,787,803
  
Current
State Income Tax Expense
  
 
-
   
 
-
   
 
-
 
                         
Federal and State Income Tax Expense
  
$
6,777,453
     $
3,851,333
     $
3,787,803
  
 
The
federal income tax expense of
$6,777,453
in
2017,
$3,851,333
in
2016
and
$3,787,803
in
2015
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:
 
   
20
1
7
    
20
16
    
20
15
  
                         
Statutory
Federal
Income
Taxes
  
$
4,954,199
     $
4,283,394
     $
4,134,570
  
Tax-Exempt Interest
  
 
(102,345
)
    
(109,759
 )    
(83,903
 )
Income from Cash Value Life Insurance, net of premiums
  
 
(198,730
)
    
(182,532
 )    
(232,988
 )
Meal and Entertainment Disallowance
  
 
14,354
      
16,813
      
21,600
  
Other
  
 
69,029
      
(156,583
 )    
(51,476
 )
Tax Expense from Tax Rate Changes
  
 
2,040,946
      
-
      
-
  
                         
Actual
Federal
Income
Taxes
  
$
6,777,453
     $
3,851,333
     $
3,787,803
  
 
Deferred
taxes, which are included in Other Assets, in the accompanying consolidated balance sheets as of
December 31
include the following:
 
   
20
1
7
    
20
16
  
                 
Deferred
Tax
Assets
  
 
 
 
  
 
 
 
Allowance for Loan Losses
  
$
1,576,577
     $
3,033,920
  
Other Real Estate
  
 
304,813
      
688,162
  
Deferred Compensation
  
 
161,000
      
280,704
  
Investments
  
 
210,000
      
340,000
  
Goodwill
  
 
76,058
      
167,666
  
Other
  
 
237,591
      
379,304
  
                 
   
$
2,566,039
      
4,889,756
  
Deferred
Tax
Liabilities
  
 
 
 
  
 
 
 
Premises and Equipment
  
 
(995,190
)
    
(1,553,460
 )
Other
  
 
(2,585
)
    
(4,185
 )
                 
   
 
(997,775
)
    
(1,557,645
 )
Deferred
Tax Assets (Liabilities) on
Unrealized Securities Gains (Losses)
  
 
1,725,708
      
2,587,163
  
                 
Net
Deferred
Tax
Assets
  
$
3,293,972
     $
5,919,274