Federal Income Taxes

12 Months Ended

Sep. 30, 2016

The components of the provision for federal income taxes for the years ended September 30, 2016, 2015 and 2014 were as follows (dollars in thousands):



	2016		2015		2014
Current	$	4,618	$	3,996	$	2,349
Deferred	283		196		451
Provision	$	4,901	$	4,192	$	2,800

At September 30, 2016 the Company had income taxes payable of $197,000, which is included in other liabilities in the accompanying 2016 consolidated balance sheet. At September 30, 2015 the company had income taxes receivable of $92,000, which is included in other assets in the accompanying 2015 consolidated balance sheet.

The components of the Company’s deferred tax assets and liabilities at September 30, 2016 and 2015 were as follows (dollars in thousands):



	2016		2015
Deferred Tax Assets
Allowance for loan losses	$	3,508	$	3,483
Allowance for OREO losses	519		564
Unearned ESOP shares	224		255
CDI	151		201
OTTI credit impairment on investment securities	174		176
Accrued interest on loans	31		130
Net unrealized losses on investment securities	90		114
Other	178		164
Total deferred tax assets	4,875		5,087



Deferred Tax Liabilities
Goodwill	1,549		1,417
MSRs	539		505
Depreciation	403		464
FHLB stock dividends	419		447
Prepaid expenses	145		125
Other	6		8
Total deferred tax liabilities	3,061		2,966

Net deferred tax assets	$	1,814	$	2,121

The provision for federal income taxes for the years ended September 30, 2016, 2015 and 2014 differs from that computed at the statutory corporate tax rate as follows (dollars in thousands):



	2016			2015			2014
Expected tax provision at statutory rate	$	5,160		$	4,268		$	2,941
BOLI income	(189		)	(184		)	(180		)
Dividends on ESOP	(83		)	(58		)	(41		)
Other - net	13			166			80
Provision for federal income taxes	$	4,901		$	4,192		$	2,800

No valuation allowance for net deferred tax assets was recorded as of September 30, 2016 and 2015, 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.