INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Summarized of differences between statutory federal income tax rate and effective tax rates

Allocation of federal and state income taxes between current and deferred portions is as follows:

	For the Year Ended June 30,
(In thousands)	2023			2022
Current tax provision:
Federal	$	268		$	313
State		31			42
		299			355
Deferred tax expense (benefit):
Federal		(62	)		(322	)
State		-			(200	)
Valuation allowance		64			115
		2			(407	)
Total income tax provision (benefit)	$	301		$	(52	)

Summary of effective tax rates

The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:

	Years Ended June 30,
(Dollars in thousands)	2023			2022
Statutory amount	$	367		$	82
Increase (decrease) resulting from:
State taxes, net of federal tax expense (benefit)		22			(120	)
Tax exempt interest		(85	)		(96	)
Bank-owned life insurance		(31	)		(34	)
Stock-based compensation		7			-
Other, net		(43	)		1
Valuation allowance		64			115
Effective tax (benefit)	$	301		$	(52	)
Effective tax rate		17.2	%		-13.3	%

Schedule of Deferred Tax Assets

The components of the net deferred tax asset are as follows:

	As of June 30,
(In thousands)	2023			2022
Deferred tax assets:
Allowance for loan losses	$	466		$	466
Employee benefit plans		360			328
ESOP		23			14
Stock-based compensation		22			-
Accrued rent		1			-
Net unrealized loss on available for sale securities		2			-
Depreciation and amortization		10			-
Charitable Foundation contribution carryforward		374			403
		1,258			1,211
Valuation allowance		(179	)		(115	)
Gross deferred tax assets		1,079			1,096
Deferred tax liabilities:
Depreciation and amortization	$	-		$	(17	)
		-			(17	)
Net deferred tax asset	$	1,079		$	1,079

Summary of the change in net deferred tax asset

A summary of the change in the net deferred tax asset is as follows:

	Years Ended June 30,
(In thousands)	2023			2022
Balance at beginning of fiscal year	$	1,079		$	665
Deferred tax (expense) benefit		(2	)		407
Deferred tax effects of net unrealized gain on available for sale securities		2			7
Balance at end of fiscal year	$	1,079		$	1,079