Federal Income Taxes

12 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

Federal Income Taxes

Federal Income Taxes

The components of the provision for federal income taxes for the years ended September 30, 2013, 2012 and 2011 were as follows (dollars in thousands):

	2013		2012		2011
Current	$	1,737	$	1,627	$	148
Deferred	777		154		156
Provision	$	2,514	$	1,781	$	304

At September 30, 2013 and 2012, the Company had income taxes receivable of $80,000 and $708,000, respectively, which are included in other assets in the accompanying consolidated balance sheets.

The components of the Company’s deferred tax assets and liabilities at September 30, 2013 and 2012 were as follows (dollars in thousands):

	2013		2012
Deferred Tax Assets
Accrued interest on loans	$	83	$	278
Unearned ESOP shares	282		301
Allowance for loan losses	4,018		4,293
Allowance for OREO losses	794		516
CDI	259		264
Unearned MRDP shares	8		25
Net unrealized securities losses	139		192
Capital loss carry-forward	—		677
OTTI credit impairment	198		194
Other	166		156
Total deferred tax assets	5,947		6,896

	2013		2012
Deferred Tax Liabilities
FHLB stock dividends	$	840	$	874
Depreciation	147		294
Goodwill	1,153		1,024
MSR's	770		683
Prepaid expenses	233		172
Other	11		13
Total deferred tax liabilities	3,154		3,060
Valuation allowance for capital loss on sale of securities	—		(213		)
Net deferred tax assets	$	2,793	$	3,623

The provision for federal income taxes for the years ended September 30, 2013, 2012 and 2011 differs from that computed at the statutory corporate tax rate as follows (dollars in thousands):

	2013			2012			2011
Expected tax provision at statutory rate	$	2,472		$	2,166		$	474
BOLI income	(196		)	(206		)	(175		)
Change in estimated utilization of net capital loss carry-forward	281			(208		)	—
Dividends on ESOP	(24		)	—			—
Other - net	(19		)	29			5
Provision forfederal income taxes	$	2,514		$	1,781		$	304

During the year ended September 30, 2012, the Company adjusted its valuation allowance for deferred taxes to reflect anticipated tax strategies to utilize a capital loss carry-forward related to a previous redemption in kind of investment securities. During the year ended September 30, 2013, the Company utilized $183,000 of the capital loss carry-forward and wrote-off the remaining portion of the related deferred tax asset and valuation allowance due to the expiration of the capital loss carry-forward period.