NOTE 9—INCOME TAXES

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

	2015		2014
Current income taxes	$	740	$	627
Deferred income tax expense (benefit)		(22)		27
	$	718	$	654

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

	2015		2014
Deferred tax assets:
Allowance for loan losses	$	704	$	698
Deferred compensation		707		645
Recognized loss on impairment of security		265		265
Intangibles		—		22
OREO deferred gain		14		15
Non-accrual loan interest income		65		100
Gross deferred tax asset		1,755		1,745

Deferred tax liabilities:
Depreciation		(223)		(288)
Loan fees		(248)		(223)
Prepaid expenses		(121)		(94)
FHLB stock dividends		(166)		(165)
Net unrealized securities gain		(463)		(661)
Gross deferred tax liabilities		(1,221)		(1,431)
Net deferred asset	$	534	$	314

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:

	2015		2014
Income taxes computed at the statutory rate on pretax income	$	1,250	$	1,187
Tax exempt income		(483)		(483)
Cash surrender value income		(62)		(61)
Other		13		11
	$	718	$	654

At June 30, 2015 and June 30, 2014, 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, 2015 and 2014 and there were no amounts accrued for interest and penalties at June 30, 2015 and 2014.

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 2011.