Federal Income Taxes (Tables)

12 Months Ended

Sep. 30, 2014

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for federal income taxes for the years ended September 30, 2014, 2013 and 2012 were as follows (dollars in thousands):



	2014		2013		2012
Current	$	2,349	$	1,737	$	1,627
Deferred	451		777		154

Provision	$	2,800	$	2,514	$	1,781

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities at September 30, 2014 and 2013 were as follows (dollars in thousands):



	2014		2013
Deferred Tax Assets
Accrued interest on loans	$	—	$	83
Unearned ESOP shares	202		282
Allowance for loan losses	3,669		4,018
Allowance for OREO losses	628		794
CDI	249		259
Net unrealized securities losses	128		139
OTTI credit impairment	185		198
Other	180		174
Total deferred tax assets	5,241		5,947



Deferred Tax Liabilities
FHLB stock dividends	773		840
Depreciation	141		147
Goodwill	1,281		1,153
MSRs	572		770
Prepaid expenses	134		233
Other	9		11
Total deferred tax liabilities	2,910		3,154

Net deferred tax assets	$	2,331	$	2,793

Schedule of Effective Income Tax Rate Reconciliation

The provision for federal income taxes for the years ended September 30, 2014, 2013 and 2012 differs from that computed at the statutory corporate tax rate as follows (dollars in thousands):



	2014			2013			2012
Expected tax provision at statutory rate	$	2,941		$	2,472		$	2,166
BOLI income	(180		)	(196		)	(206		)
Change in estimated utilization of net capital loss carry-forward	—			281			(208		)
Dividends on ESOP	(41		)	(24		)	—
Other - net	80			(19		)	29

Provision for federal income taxes	$	2,800		$	2,514		$	1,781

During the year ended September 30, 2013, the Company utilized $183,000 of the capital loss carry-forward and wrote-off the remaining portion of the related deferred tax asset and valuation allowance due to the expiration of the capital loss carry-forward period. No valuation allowance for net deferred tax assets was recorded as of September 30, 2014 and 2013, as management believes that it is more likely than not that all of the net deferred tax assets will be realized based on management's expectations of future taxable income and/or because they were supported by recoverable taxes paid in prior years.