NOTE 9—INCOME TAXES

The provision for income taxes consists of the following for the years ended June 30:

	2014		2013
Current income taxes	$	627	$	730
Deferred income tax expense (benefit)		27		(96)
	$	654	$	634

The net deferred income tax asset consists of the following components at June 30:

	2014		2013
Deferred tax assets:
Allowance for loan losses	$	698	$	742
Deferred compensation		645		581
Net unrealized securities loss		—		8
Recognized loss on impairment of security		265		265
Intangibles		22		66
OREO deferred gain		15		16
Nonaccrual loan interest income		100		82
Gross deferred tax asset		1,745		1,760

Deferred tax liabilities:
Depreciation		(288)		(294)
Loan fees		(223)		(217)
Prepaid expenses		(94)		(74)
FHLB stock dividends		(165)		(165)
Net unrealized securities gain		(661)		—
Gross deferred tax liabilities		(1,431)		(750)
Net deferred asset	$	314	$	1,010

The difference between the provision for income taxes and amounts computed by applying the statutory income tax rate of 34% to statutory income before taxes consists of the following for the years ended June 30:

	2014		2013
Income taxes computed at the statutory rate on pretax income	$	1,187	$	1,123
Tax exempt income		(483)		(437)
Cash surrender value income		(61)		(63)
Other		11		11
	$	654	$	634

At June 30, 2014 and June 30, 2013, the Corporation had no unrecognized tax benefits recorded. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. There were no interest or penalties recorded for the years ended June 30, 2014 and 2013 and there were no amounts accrued for interest and penalties at June 30, 2014 and 2013.

The Corporation and the Bank are subject to U.S. federal income tax as an income-based tax and a capital-based franchise tax in the state of Ohio. The Corporation and the Bank are no longer subject to examination by taxing authorities for years before 2010.