Federal Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for income taxes for the years ended September 30, 2017, 2016 and 2015 were as follows (dollars in thousands):



	2017		2016		2015
Current:
Federal	$	6,656	$	4,618	$	3,996
State	35		—		—
Deferred	385		283		196
Provision for income taxes	$	7,076	$	4,901	$	4,192

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities at September 30, 2017 and 2016 were as follows (dollars in thousands):



	2017		2016
Deferred Tax Assets
Allowance for loan losses	$	3,380	$	3,508
Allowance for OREO losses	443		519
Unearned ESOP shares	148		224
CDI	103		151
OTTI credit impairment on investment securities	173		174
Accrued interest on loans	29		31
Net unrealized losses on investment securities	66		90
Deferred compensation and bonuses	94		90
Reserve for loan commitments	75		54
Other	39		34
Total deferred tax assets	4,550		4,875



Deferred Tax Liabilities
Goodwill	1,714		1,549
MSRs	639		539
Depreciation	480		403
FHLB stock dividends	137		419
Prepaid expenses	140		145
Other	35		6
Total deferred tax liabilities	3,145		3,061

Net deferred tax assets	$	1,405	$	1,814

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes for the years ended September 30, 2017, 2016 and 2015 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands):



	2017			2016			2015
Expected federal income tax provision at statutory rate	$	7,435		$	5,160		$	4,268
BOLI income	(191		)	(189		)	(184		)
Dividends on ESOP	(102		)	(83		)	(58		)
Other - net	(66		)	13			166
Provision for income taxes	$	7,076		$	4,901		$	4,192