v2.4.0.6
INCOME TAXES
12 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

NOTE 10—INCOME TAXES

 

The provision for income taxes consists of the following for the years ended June 30:

 

   

2012

 
   

2011

 
 
Current income taxes   $ 1,070     $ 540  
Deferred income taxes (benefits)     (271 )     81  
    $ 799     $ 621  

 

The net deferred income tax asset consists of the following components at June 30:

 

   

2012

 
   

2011

 
 
Deferred tax assets:                
Allowance for loan losses   $ 627     $ 520  
Deferred compensation     532       413  
Recognized loss on impairment of security     265       265  
Intangibles     109       122  
OREO deferred gain     16       18  
Nonaccrual loan interest income     74       47  
Gross deferred tax asset     1,623       1,385  
                 
Deferred tax liabilities:                
Depreciation     (261 )     (270 )
Loan fees     (211 )     (202 )
Prepaid expenses     (80 )     (113 )
FHLB stock dividends     (165 )     (165 )
Net unrealized securities gain     (826 )     (509 )
Gross deferred tax liabilities     (1,543 )     (1,259 )
Net deferred asset   $ 80     $ 126  

 

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:

 

   

2012

 
   

2011

 
 
Income taxes computed at the statutory rate on pretax income   $ 1,211     $ 975  
Tax exempt income     (359 )     (304 )
Cash surrender value income     (66 )     (62 )
Other     13       12  
    $ 799     $ 621  

 

At June 30, 2012 and June 30, 2011, 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, 2012 and 2011 and there were no amounts accrued for interest and penalties at June 30, 2012 and 2011.

 

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 2008.