Entity information:
NOTE
9—INCOME
TAXES
 
The provision for income taxes consists of the following for the years ended
June 
30:
 
 
 
2017
 
 
2016
 
Current income taxes
   $
513
     $
421
  
Deferred income tax expense (benefit)
    
128
      
(142
 )
    $
641
     $
279
  
 
The net deferred income tax asset consists of the following components at
June 
30:
 
 
 
2017
 
 
2016
 
Deferred tax assets:
                
Allowance for loan losses
   $
919
     $
1,082
  
Deferred compensation
    
771
      
721
  
Recognized loss on impairment of security
    
265
      
265
  
AMT credit carryforward
    
220
      
143
  
Deferred income
    
119
      
140
  
Other real estate owned deferred gain
    
12
      
13
  
Other real estate owned write down
    
10
      
—
  
Non-accrual loan interest income
    
58
      
72
  
Gross deferred tax asset
    
2,374
      
2,436
  
                 
Deferred tax liabilities:
                
Depreciation
    
(788
 )    
(761
 )
Loan fees
    
(320
 )    
(279
 )
Prepaid expenses
    
(89
 )    
(91
 )
FHLB stock dividends
    
(166
 )    
(166
 )
Net unrealized securities gain
    
(229
 )    
(1,231
 )
Gross deferred tax liabilities
    
(1,592
 )    
(2,528
 )
Net deferred asset (liability)
   $
782
     $
(92
 )
 
The difference between the provision for income taxes and amounts computed by applying the statutory income tax rate of
34%
to statutory income before taxes consists of the following for the years ended
June 
30:
 
 
 
2017
 
 
2016
 
Income taxes computed at the statutory rate on pretax income
   $
1,236
     $
825
  
Tax exempt income
    
(498
 )    
(491
 )
Cash surrender value income
    
(83
 )    
(65
 )
Tax credit
    
(25
 )    
—
  
Other
    
11
      
10
  
    $
641
     $
279
  
 
At
June 30, 2017
and
June 30, 2016,
the Corporation had
no
unrecognized tax benefits recorded. The Corporation 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, 2017
and
2016
and there were
no
amounts accrued for interest and penalties at
June 30, 2017
and
2016.
 
The Corporation and the Bank are subject to U.S. federal income tax as an income-based tax and a capital-based franchise tax in the state of Ohio. The Corporation and the Bank are
no
longer subject to examination by taxing authorities for years before
2013.