|
(7) |
Income Taxes |
The components of income tax expense for the years ended September 30, 2017 and 2016 are as follows: (in thousands)
|
|
|
2017 |
|
|
2016 |
|
||
|
Current |
|
$ |
655 |
|
|
$ |
3 |
|
|
Deferred |
|
|
51 |
|
|
|
694 |
|
|
|
|
$ |
706 |
|
|
$ |
697 |
|
The difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes for the years ended September 30, 2017 and 2016 is as follows:
|
|
|
2017 |
|
|
2016 |
|
||
|
Pretax income at statutory rate (34%) |
|
$ |
704 |
|
|
$ |
630 |
|
|
State income tax, net of federal benefit |
|
|
23 |
|
|
|
68 |
|
|
Other |
|
|
(21 |
) |
|
|
(1 |
) |
|
Actual tax expense (34% and 38%, respectively) |
|
$ |
706 |
|
|
$ |
697 |
|
The following summarizes the sources and expected tax consequences of future deductions or income for income tax purposes which comprised the net deferred taxes at September 30, 2017 and 2016: (in thousands)
|
|
|
2017 |
|
|
2016 |
|
||
|
Deferred income tax assets: |
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
$ |
1,731 |
|
|
$ |
1,628 |
|
|
Deferred compensation |
|
|
1,487 |
|
|
|
1,464 |
|
|
Write downs on other real estate owned |
|
|
2 |
|
|
|
— |
|
|
Deferred gain on other real estate owned |
|
|
107 |
|
|
|
123 |
|
|
Alternative minimum tax credit carryforward |
|
|
— |
|
|
|
16 |
|
|
State tax credits |
|
|
227 |
|
|
|
251 |
|
|
Other |
|
|
38 |
|
|
|
104 |
|
|
Total deferred income tax assets |
|
|
3,592 |
|
|
|
3,586 |
|
|
Deferred income tax liabilities: |
|
|
|
|
|
|
|
|
|
FHLB stock dividends |
|
|
6 |
|
|
|
6 |
|
|
Premises and equipment |
|
|
47 |
|
|
|
— |
|
|
Unrealized gain on investment securities available-for-sale |
|
|
31 |
|
|
|
— |
|
|
Other |
|
|
87 |
|
|
|
77 |
|
|
Total deferred income tax liabilities |
|
|
171 |
|
|
|
83 |
|
|
Net deferred income tax asset |
|
$ |
3,421 |
|
|
$ |
3,503 |
|