Note 10 - Income Taxes

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE 10—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%:

	2024			2023
Current income taxes	$	2,087		$	2,344
Deferred income tax benefit		(242	)		(96	)
Total income tax expense	$	1,845		$	2,248

The net deferred income tax asset (liability) consisted of the following components at June 30:

	2024			2023
Deferred tax assets:
Allowance for credit losses	$	1,743		$	1,622
Deferred compensation		1,026			986
Partnership investment		154			—
Deferred income		132			31
Non-accrual loan interest income		22			20
Net unrealized securities loss		7,532			7,964
Other		3			3
Gross deferred tax asset		10,612			10,626
Deferred tax liabilities:
Depreciation		(776	)		(783	)
Loan fees		(663	)		(640	)
FHLB stock dividends		(102	)		(102	)
Prepaid expenses		(176	)		(150	)
Intangible assets		(258	)		(199	)
Gross deferred tax liabilities		(1,975	)		(1,874	)
Net deferred asset	$	8,637		$	8,752

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:

	2024			2023
Income taxes computed at the statutory rate on pretax income	$	2,189		$	2,714
Tax exempt income		(221	)		(400	)
Cash surrender value income		(58	)		(55	)
Affordable housing tax credit		(66	)		—
Tax credit		(16	)		(17	)
Other non-deductible expenses		17			6
Total income tax expense	$	1,845		$	2,248

The effective tax rate was 17.7% for the year ended June 30, 2024 compared to 17.4% for the year ended June 30, 2023. At June 30, 2024 and June 30, 2023, the Company had no unrecognized tax benefits recorded. The Company 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, 2024 and 2023 and there were no amounts accrued for interest and penalties at June 30, 2024 and 2023.

The Company and the Bank are subject to U.S. federal income tax as an income-based tax and a capital-based financial institutions tax in the State of Ohio. The Company and the Bank are no longer subject to examination by taxing authorities for years before 2020.