INCOME TAXES (Tables)

6 Months Ended

Dec. 31, 2024

INCOME TAXES

Summary of components of income tax expense

The components of income tax expense were as follows (dollars in thousands):

	For the Six Months Ended				For the Fiscal Years Ended
	December 31,				June 30,
	2024		2023		2024		2023
Current tax expense	$	2,469	$	1,708	$	4,337	$	5,052
Deferred tax expense (benefit)		342		4		(188)		855
Total income tax expense	$	2,811	$	1,712	$	4,149	$	5,907

Schedule of federal income tax statutory rate

Income tax expense differs from the amount expected based on the federal income tax statutory rate due to the following (dollars in thousands):

	For the Six Months Ended December 31,								For the Fiscal Year Ended June 30,
	2024				2023				2024				2023
	Amount		Rate		Amount		Rate		Amount		Rate		Amount		Rate
Income before tax at the federal tax rate	$	2,606	21.0	%	$	1,748	21.0	%	$	4,076	21.0	%	$	5,850	21.0	%
State expense, net of federal benefit		234	1.9	%		62	0.8	%		232	1.2	%		670	2.4	%
Tax-exempt income		(81)	(0.7)	%		(134)	(1.6)	%		(249)	(1.3)	%		(563)	(2.0)	%
Bank-owned life insurance		11	0.1	%		26	0.3	%		66	0.4	%		(63)	(0.2)	%
Other, net		41	0.3	%		10	0.1	%		24	0.1	%		13	—	%
Total income tax expense	$	2,811	22.6	%	$	1,712	20.6	%	$	4,149	21.4	%	$	5,907	21.2	%

Schedule of components of net deferred tax assets and liabilities

The tax effects that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below (dollars in thousands):

	December 31,		June 30,
	2024		2024		2023
Deferred tax assets
Allowance for credit losses	$	7,002	$	7,098	$	6,480
Net operating loss carryforward		144		144		—
OTTI – securities		—		325		325
Post-retirement benefit obligations		492		497		494
Unrealized losses on securities available for sale		835		967		4,849
Deferred compensation		77		68		137
Contribution carryforward		—		—		173
Lease liabilities		1,276		1,514		1,621
Other		748		627		688
Total deferred tax assets		10,574		11,240		14,767
Deferred tax liabilities
Depreciation		(1,420)		(1,687)		(1,839)
Net deferred loan origination costs		(637)		(634)		(560)
Prepaid pension		(2,315)		(2,293)		(2,404)
Prepaid expenses		(293)		(241)		(236)
Unfunded defined benefit and postretirement benefit plan assets		(2,797)		(2,716)		(1,463)
ROU assets		(1,197)		(1,436)		(1,551)
Other		(2,198)		(1,961)		(1,495)
Total deferred tax liabilities		(10,857)		(10,968)		(9,548)
Net deferred tax (liability) asset at end of year	$	(283)	$	272	$	5,219