v3.26.1
Note 10 - Income Taxes
 12 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 10—INCOME TAXES

 

The provision for income taxes from continuing operations consisted of the following components in accordance with ASU 2023-09 for the years ended June 30, calculated utilizing a statutory federal income tax rate of 21%:

 

Federal Tax Provision

  

2026

    

2025

  

Current

   $ 2,161     $ 2,115  

Deferred

     (148

)

     (458 )

Total tax provision from continuing operations*

   $ 2,013     $ 1,657  

 

* The Company does not have pretax income from continuing foreign operations or foreign tax expense.

 

Income tax expense for the years ended June 30, 2026, and 2025 differed from the federal statutory rate applied to income before income taxes for the following reasons in accordance with ASU 2023-09 for the year ended June 30:

 

   

2026

    

2025

  
   

Amount

    

% of Pretax

Income

    

Amount

    

% of Pretax

Income

  

U.S. Federal statutory tax rate

   $ 2,767       21.0 %   $ 2,168       21.0 %

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

     —       —       —       —  

Tax Credits

                                

Affordable housing tax credit (2)

     (184

)

     (1.40 )     (118 )     (1.14 )

Other

     (17 )     (0.13 )     (16 )     (0.15 )

Nontaxable or Nondeductible Items

                                

Tax-exempt income, net of TEFRA

     (459 )     (3.48 )     (308 )     (2.98 )

Cash surrender value income

     (100 )     (0.76 )     (82 )     (0.79 )

Other

     6       0.05       13       0.13  

Total

   $ 2,013       15.28 %   $ 1,657       16.07 %

 

(1) The Company paid no state income taxes in 2026 and 2025 as the Company mainly pays Ohio financial institution tax.

(2) Includes tax credits, investment amortization and projected tax losses associated with tax-advantaged investments

 

The tax effects of temporary differences result in deferred income tax assets and liabilities as presented below at June 30:

 

   

2026

    

2025

  

Deferred tax assets:

                

Allowance for credit losses

   $ 2,069     $ 1,859  

Deferred compensation

     1,225       1,160  

Limited partnership interests

     594       503  

Deferred income

     102       116  

Non-accrual loan interest income

     19       19  

Net unrealized securities loss

     4,747       5,995  

Other

     —       25  

Gross deferred tax asset

     8,756       9,677  
                 

Deferred tax liabilities:

                

Depreciation

     (832

)

     (771

)

Loan fees

     (735

)

     (711

)

FHLB stock dividends

     (102

)

     (102

)

Prepaid expenses

     (252

)

     (205

)

Intangible assets

     (373

)

     (330

)

Other

     (4 )     —  

Gross deferred tax liabilities

     (2,298

)

     (2,119

)

Net deferred tax asset

   $ 6,458     $ 7,558  

 

The Company is subject to income tax within U.S. federal and various state jurisdictions and is subject to a capital-based financial institutions tax in the State of Ohio and Pennsylvania. At June 30, 2026 and June 30, 2025, the Company had no unrecognized tax benefits recorded. The Company does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. There were no interest or penalties recorded for the years ended June 30, 2026 and 2025 and there were no amounts accrued for interest and penalties at June 30, 2026 and 2025. The Company is no longer subject to examination by taxing authorities for years before 2022.