Note 11 - Income Taxes

12 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

1

1

—INCOME TAXES

The provision for income taxes consisted of the following for the years ended

June 

30,

calculated utilizing a statutory federal income tax rate of

21.0%

:

	20 20			201 9
Current income taxes	$	1,273		$	840
Deferred income tax expense		(361	)		173
Total income tax expense	$	912		$	1,013

The net deferred income tax asset consisted of the following components at

June 

30:

	20 20			201 9
Deferred tax assets:
Allowance for loan losses	$	1,119		$	701
Deferred compensation		722			616
Deferred income		46			55
Non-accrual loan interest income		42			50
Other		9			7
Gross deferred tax asset		1,938			1,429
Deferred tax liabilities:
Depreciation		(742	)		(645	)
Loan fees		(402	)		(278	)
FHLB stock dividends		(102	)		(102	)
Prepaid expenses		(72	)		(42	)
Intangible assets		(102	)		—
Net unrealized securities gain		(1,132	)		(416	)
Gross deferred tax liabilities		(2,552	)		(1,483	)
Net deferred liability	$	(614	)	$	(54	)

The difference between the provision for income taxes and amounts computed by applying the statutory income tax rate of

21.0%

to income before taxes consisted of the following for the years ended

June 

30:

	20 20			201 9
Income taxes computed at the statutory rate on pretax income	$	1,352		$	1,382
Tax exempt income		(317	)		(319	)
Cash surrender value income and death benefit		(124	)		(57	)
Tax credit		(25	)		(28	)
Other non-deductible expenses		26			35
Total income tax expense	$	912		$	1,013

The effective tax rate was

14.2%

for the year ended

June 30, 2020

compared to

15.4%

for the year ended

June 30, 2019.

At

June 30, 2020

and

June 30, 2019,

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, 2020

and

2019

and there were

no

amounts accrued for interest and penalties at

June 30, 2020

and

2019.

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

2016.