v3.26.3
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Taxes [Abstract]  
Schedule of Statutory Corporate Tax Rate

Federal income taxes on earnings differs from that computed at the statutory corporate tax rate for the years ended June 30, 2026 and 2025, as follows:

 

    2026     2025  
(in thousands)   Amount     Percent     Amount     Percent  
Income tax expense (benefit) at the statutory rate   $ 526       21.0 %   $ 50       21.0 %
Increase (decrease) resulting from:                                
Cash surrender value of life insurance     (18 )     (0.7 )     (18 )     (7.6 )
State income tax expense (benefit)     87       3.5       13       5.5  
Other     -               12       5.0  
Total income tax expense   $ 595             $ 57          
Effective income tax rate     23.76 %             23.95 %        
Schedule of Current and Deferred Income Tax Expense (Benefit)

Current and deferred income tax expense (benefit) at the federal and state level for the years ended June 30, 2026 and 2025, as follows:

 

(in thousands)   2026     2025  
Current income tax expense:                
Federal   $ 530     $ 200  
State     63       7  
      593       207  
Deferred income tax expense:                
Federal     (46 )     (146 )
State     48       (4 )
      2       (150 )
    $ 595     $ 57  
Schedule of Net Deferred Tax Liability

The composition of the Company’s net deferred tax liability at June 30 is as follows:

 

(in thousands)   2026     2025  
Taxes (payable) refundable on temporary differences at estimated corporate tax rate:            
Deferred tax assets:            
General loan loss allowance   $ 563     $ 542  
Unfunded Commitments     15       15  
Accrued expenses     45       45  
Fair value accounting adjustments at acquisition     55       63  
Nonaccrued interest on loans     121       105  
Unrealized loss on available-for-sale securities     43       48  
Depreciation     71       86  
Net operating loss carryforwards     -       45  
Total deferred tax assets     913       949  
                 
Deferred tax liabilities:                
Federal Home Loan Bank stock dividends     (171 )     (269 )
Deferred loan origination costs     (11 )     (24 )
Loan servicing rights     (73 )     (51 )
Accrual to cash adjustment     (160 )     (101 )
Fair value accounting adjustments on acquisition     (535 )     (534 )
Total deferred tax liabilities     (950 )     (979 )
Net deferred tax liability   $ (37 )   $ (30 )