Income Taxes (Tables)

12 Months Ended

Jun. 30, 2026

The provision for income taxes consists of the following for the years ended June 30, 2026 and 2025:

(In thousands)		2026			2025
Current:
Federal	$	5,923		$	3,238
State		1,534			996
Total current		7,457			4,234
Deferred:
Federal		(1,464	)		(659	)
State		(183	)		(47	)
Total deferred		(1,647	)		(706	)
Total provision for income taxes:
Federal		4,459			2,579
State		1,351			949
Total provision for income taxes	$	5,810		$	3,528

Effective Tax Rate Reconciliation

The following table reconciles the statutory federal income tax rate to the effective income tax rate for the year ended June 30, 2026, presenting both dollar amounts and percentages in accordance with ASC 740-10-50-12A.


(In thousands, except percentages)		For the year ended June 30, 2026
		Amount		Percentage
Federal income tax at the statutory rate	$	9,835		21.00	%
State income taxes, net of federal effect ⁽¹⁾		1,028		2.20
Tax credits, net of amortization		(40	)	(0.08	)
Nontaxable or nondeductible items:
Tax-exempt income		(4,730	)	(10.10	)
Increase in cash surrender value of bank-owned life insurance		(579	)	(1.24	)
Other		296		0.63
Total provision for income taxes	$	5,810		12.41	%

⁽¹⁾

State taxes in New York contribute to the majority (greater than 50%) of the tax effect in this category.

The effective tax rate differs from the federal statutory rate as follows for the years ended June 30, 2025, in accordance with the guidance prior to the adoption of ASU 2023-09:

	2025
Tax based on federal statutory rate	21.00	%
State income taxes, net of federal benefit	2.14
Tax-exempt income	(11.71	)
Other, net	(1.25	)
Total income tax expense	10.18	%

Income Taxes Paid, Net of Refunds

The following table presents income taxes paid, net of refunds received, disaggregated by federal, state, and by individual jurisdictions that meet the 5% disclosure threshold under ASU 2023-09, for the year ended June 30, 2026.

(In thousands)		2026
U.S. Federal	$	1,486
New York State		717
Other States		65
Total income taxes paid	$	2,268

Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities at June 30, 2026 and 2025 were as follows:

(In thousands)		2026		2025
Deferred tax assets:
Allowance for credit losses	$	5,984	$	5,531
Allowance for credit losses on unfunded commitments		382		474
Unrealized losses on securities		4,101		4,694
Other benefit plans		5,314		5,108
Solar tax credit investments		1,077		253
Lease liability		611		632
Other		73		129
Total deferred tax assets		17,542		16,821

Deferred tax liabilities:
Depreciation		1,198		1,204
Net loan costs		1,275		1,296
Real estate investment trust income		2,955		2,990
Lease right of use asset		587		610
Pension benefits		88		179
Total deferred tax liabilities		6,103		6,279
Net deferred tax asset included in prepaid expenses and other assets	$	11,439	$	10,542