v3.26.1
INCOME TAXES
 12 Months Ended
Mar. 31, 2026
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

​

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2024

Current

​

​

​

​

​

​

​

​

​

Federal

​

$

(23)

​

$

859

​

$

840

State

​

​

107

​

​

214

​

​

127

Deferred

​

 

​

​

 

​

​

 

​

Federal

​

​

(1,380)

​

​

229

​

​

(144)

State

​

​

(197)

​

​

33

​

​

(21)

Total

​

$

(1,493)

​

$

1,335

​

$

802

​

All pretax income from continuing operations for the periods presented was generated in domestic jurisdictions; the Company did not earn any foreign pretax income. As such, the Company has no foreign income tax expense from continuing operations.

​

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):

​

​

​

​

​

​

​

​

​

  ​ ​ ​

March 31,

  ​ ​ ​

March 31,

​

 

2026

 

2025

Deferred tax assets:

​

​

​

​

​

​

ACL

​

$

3,748

​

$

3,758

Accumulated depreciation and amortization

​

 

1,194

​

 

1,079

Net operating loss - federal

​

​

1,309

​

​

—

Net unrealized loss on investment securities available for sale

​

 

6,123

​

 

4,201

Operating lease liabilities

​

​

917

​

​

1,072

Other

​

 

671

​

 

560

Total deferred tax assets

​

 

13,962

​

 

10,670

Deferred tax liabilities:

​

 

  ​

​

 

  ​

FHLB stock dividends

​

 

(35)

​

 

(35)

Prepaid expenses

​

 

(351)

​

 

(339)

Operating lease ROU assets

​

​

(871)

​

​

(1,019)

Loan fees/costs

​

 

(581)

​

 

(652)

Total deferred tax liabilities

​

 

(1,838)

​

 

(2,045)

Deferred tax assets, net

​

$

12,124

​

$

8,625

​

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, 

​

​

2026

​

2025

​

2024

​

Amount

Percent

​

Amount

Percent

​

Amount

Percent

Statutory federal income (loss) tax rate

$

(1,225)

(21.0)

%

​

$

1,310

21.0

%

​

$

946

21.0

%

State and local income tax (benefit), net of federal income tax effect (1)

​

(71)

(1.2)

 

​

​

247

4.0

 

​

​

232

5.2

​

Nontaxable or nondeductible item

​

​

​

​

​

​

​

​

​

​

​

​

​

​

BOLI

​

(207)

(3.6)

 

​

​

(197)

(3.2)

 

​

​

(214)

(4.8)

​

Other, net

​

10

0.2

 

​

​

(25)

(0.4)

 

​

​

(162)

(3.6)

​

Effective federal income (loss) tax rate

$

(1,493)

(25.6)

%

​

$

1,335

21.4

%

​

$

802

17.8

%

(1)State taxes in Oregon contributed to the majority of the tax effect in this category.

​

The following table presents the cash paid for income taxes, net of refunds received, by jurisdiction for the fiscal years ended March 31, 2026, 2025, and 2024:

​

​

​

​

​

​

​

​

​

​

​

2026

​

2025

​

2024

Federal

$

965

​

$

(186)

​

$

1,500

State

​

​

​

​

​

​

​

​

Oregon

​

221

​

​

59

​

​

366

Other

​

1

​

​

—

​

​

—

Total

$

1,187

​

$

(127)

​

$

1,866

​

For the fiscal years ended March 31, 2026 and 2025, the Company utilized a federal corporate income tax rate of 21.0%. The Bank’s retained earnings at March 31, 2026 and 2025 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, 2026 and 2025 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.

As of March 31, 2026, the Bank had net operating loss carryforwards (“NOL”) for federal income tax purposes of $1.3 million. This NOL is carried forward indefinitely but is limited to 80% of taxable income.

At March 31, 2026 and 2025, 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, 2026 and 2025. 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.