Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Taxes

Schedule of Provision for Income Taxes

	Year Ended June 30,
(In Thousands)	2022		2021
Current:
Federal	$	1,781	$	1,547
State		844		598
		2,625		2,145
Deferred:
Federal		696		303
State		444		178
		1,140		481
Provision for income taxes	$	3,765	$	2,626

Schedule of estimated combined federal and state statutory tax rates

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to net income before income taxes as a result of the following differences for the years indicated:

	Year Ended June 30,
	2022				2021
(In Thousands)	Amount		Tax Rate		Amount		Tax Rate
Federal income tax at statutory rate	$	2,700	21.00	%	$	2,139	21.00	%
State income tax, net of federal income tax benefit		988	7.68	%		614	6.05	%
Changes in taxes resulting from:
Bank-owned life insurance		(39)	(0.31)	%		(40)	(0.39)	%
Non-deductible expenses		8	0.06	%		6	0.06	%
Non-deductible stock-based compensation		—	—	%		(30)	(0.30)	%
Excess tax benefit on stock-based compensation		—	—	%		(64)	—	%
Return to provision adjustment		107	0.84	%		—	—	%
Other		1	0.01	%		1	(0.64)	%
Effective income tax	$	3,765	29.28	%	$	2,626	25.78	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets at June 30, 2022 and 2021 by jurisdiction were as follows:

	June 30,
(In Thousands)	2022		2021
Deferred taxes - federal	$	947	$	1,617
Deferred taxes - state		485		926
Total net deferred tax assets	$	1,432	$	2,543

Net deferred tax assets at June 30, 2022 and 2021 were comprised of the following:

	June 30,
(In Thousands)	2022		2021
Loss reserves	$	1,968	$	2,734
Non-accrued interest		199		392
Deferred compensation		2,903		2,512
Accrued vacation		178		197
Depreciation		211		153
State tax		64		—
Other		245		307
Total deferred tax assets		5,768		6,295
FHLB - San Francisco stock dividends		(645)		(645)
Prepaid expenses		(28)		(41)
Unrealized loss (gain) on investment securities		1		(27)
Unrealized gain on interest-only strips		(2)		(3)
Deferred loan costs		(3,662)		(2,974)
State tax		—		(62)
Total deferred tax liabilities		(4,336)		(3,752)
Net deferred tax assets	$	1,432	$	2,543