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The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows: 

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The Federal alternative minimum tax credit carry forward does not expire and totaled $1.6 million as of December 31, 2012. In addition, the Company has low income housing credit carry forwards of $340,000 which expire in varying amounts between 2026 and 2032. The Company has Kansas corporate net operating loss carry forwards totaling $10.3 million as of December 31, 2012, which expire between 2013 and 2022. The Company has recorded a valuation allowance against the Kansas corporate net operating loss carry forwards. The increase in the valuation allowance during 2012 is related to additional net operating loss carry forwards generated during 2012. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets at December 31, 2012. 

Retained earnings at December 31, 2012 and 2011 includes approximately $6.3 million for which no provision for federal income tax had been made. This amount represents allocations of income to bad debt deductions in years prior to 1988 for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses will create income for tax purposes only, which will be subject to the then current corporate income tax rate. 

