Note 9 - Income Taxes

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 9—INCOME TAXES

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

	2016			2015
Current income taxes	$	421		$	740
Deferred income tax expense (benefit)		(142	)		(22	)
	$	279		$	718

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

	2016			2015
Deferred tax assets:
Allowance for loan losses	$	1,082		$	704
Deferred compensation		721			707
Recognized loss on impairment of security		265			265
AMT credit carryforward		143			—
Deferred income		140			—
OREO deferred gain		13			14
Non-accrual loan interest income		72			65
Gross deferred tax asset		2,436			1,755
Deferred tax liabilities:
Depreciation		(761	)		(223	)
Loan fees		(279	)		(248	)
Prepaid expenses		(91	)		(121	)
FHLB stock dividends		(166	)		(166	)
Net unrealized securities gain		(1,231	)		(463	)
Gross deferred tax liabilities		(2,528	)		(1,221	)
Net deferred asset (liability)	$	(92	)	$	534

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:

	2016			2015
Income taxes computed at the statutory rate on pretax income	$	825		$	1,250
Tax exempt income		(491	)		(483	)
Cash surrender value income		(65	)		(62	)
Other		10			13
	$	279		$	718

At June 30, 2016 and June 30, 2015, 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, 2016 and 2015 and there were no amounts accrued for interest and penalties at June 30, 2016 and 2015.

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 2012.