v3.25.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2025
INCOME TAXES  
INCOME TAXES

10.  INCOME TAXES

Provision for income taxes consisted of the following for the years indicated (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

Year Ended March 31

​

    

2025

    

2024

    

2023

Current

​

$

1,074

​

$

967

​

$

5,754

Deferred

​

 

261

​

 

(165)

​

 

(144)

Total

​

$

1,335

​

$

802

​

$

5,610

​

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at the dates indicated (in thousands):

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​

​

​

​

​

​

​

​

    

March 31,

    

March 31,

​

 

2025

 

2024

Deferred tax assets:

​

​

​

​

​

​

Deferred compensation

​

$

22

​

$

17

ACL

​

 

3,758

​

 

3,768

Accrued expenses

​

 

185

​

 

520

Accumulated depreciation and amortization

​

 

1,079

​

 

977

Deferred gain on sale

​

 

—

​

 

17

Deferred income

​

​

29

​

​

43

Net unrealized loss on investment securities available for sale

​

 

4,201

​

 

5,093

Operating lease liabilities

​

​

1,072

​

​

1,387

Other

​

 

324

​

 

371

Total deferred tax assets

​

 

10,670

​

 

12,193

Deferred tax liabilities:

​

 

  

​

 

  

FHLB stock dividends

​

 

(35)

​

 

(38)

Prepaid expenses

​

 

(339)

​

 

(325)

Operating lease ROU assets

​

​

(1,019)

​

​

(1,315)

Loan fees/costs

​

 

(652)

​

 

(737)

Total deferred tax liabilities

​

 

(2,045)

​

 

(2,415)

Deferred tax assets, net

​

$

8,625

​

$

9,778

​

A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows for the years indicated:

​

​

​

​

​

​

​

​

​

​

​

Year Ended March 31, 

​

​

    

2025

    

2024

    

2023

​

Statutory federal income tax rate

 

21.0

%

21.0

%

21.0

%

State and local income tax rate

 

4.0

 

5.2

 

3.0

​

Employee Stock Ownership Plan ("ESOP") market value adjustment

 

(0.2)

 

(0.5)

 

(0.1)

​

BOLI

 

(3.2)

 

(4.8)

 

(0.8)

​

Other, net

 

(0.2)

 

(3.1)

 

0.6

​

Effective federal income tax rate

 

21.4

%

17.8

%

23.7

%

​

For the fiscal years ended March 31, 2025 and 2024, the Company utilized a federal corporate income tax rate of 21.0%. The Bank’s retained earnings at March 31, 2025 and 2024 include a base year ACL, which amounted to $2.2 million, for which no federal income tax liability has been recognized. The related unrecognized deferred tax liability at March 31, 2025 and 2024 was $528,000. This represents the balance of the ACL created for tax purposes as of December 31, 1987. This amount is subject to recapture in the unlikely event that the Company’s banking subsidiaries (1) make distributions in excess of current and accumulated earnings and profits, as calculated for federal tax purposes, (2) redeem their stock, or (3) liquidate. Management does not expect this temporary difference to reverse in the foreseeable future.

At March 31, 2025 and 2024, the Company had no unrecognized tax benefits or uncertain tax positions. In addition, the Company had no accrued interest or penalties related to income tax matters as of March 31, 2025 and 2024. It is the Company’s policy to recognize potential accrued interest and penalties related to income tax matters as a component of the provision for

income taxes. The Company is subject to U.S federal and State of Oregon income taxes. The years 2022 to 2024 remain open to examination for federal income taxes, and the years 2021 to 2024 remain open to State of Oregon examination.