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INCOME TAXES | 12 Months Ended
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Mar. 31, 2017
Income Tax Disclosure [Abstract] |
INCOME TAXES |
12. | INCOME TAXES
Provision for income taxes consisted of the following for the periods indicated (in thousands):
| Year Ended March 31 |
| 2017 |  | 2016 |  | 2015 |
Current |  | $ | 284 |  |  | $ | 251 |  |  | $ | 16 |
Deferred |  |  | 3,103 |  |  |  | 3,175 |  |  |  | 2,140 |
Total |  | $ | 3,387 |  |  | $ | 3,426 |  |  | $ | 2,156 |
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at the dates indicated (in thousands):
|  | March 31, 2017 |  |  | March 31, 2016 |
Deferred tax assets: |  |  |  |  |  |
Deferred compensation |  | $ | 150 |  |  | $ | 128 |
Allowance for loan losses |  |  | 3,875 |  |  |  | 3,624 |
Accrued expenses |  |  | 217 |  |  |  | 199 |
Accumulated depreciation and amortization |  |  | 1,017 |  |  |  | 908 |
Deferred gain on sale |  |  | 361 |  |  |  | 418 |
Net operating loss carryforwards |  |  | 1,134 |  |  |  | 4,849 |
Purchase accounting |  |  | 228 |  |  |  | - |
REO expense |  |  | - |  |  |  | 49 |
Net unrealized loss on investment securities available for sale |  |  | 929 |  |  |  | - |
AMT credit |  |  | 471 |  |  |  | 229 |
Other |  |  | 332 |  |  |  | 350 |
Total deferred tax assets |  |  | 8,714 |  |  |  | 10,754 |
Deferred tax liabilities: |  |  |  |  |  |
FHLB stock dividend |  |  | (143 | ) |  |  | (143 | )
Net unrealized gain on investment securities available for sale |  |  | - |  |  |  | (596 | )
Prepaid expenses |  |  | (158 | ) |  |  | (172 | )
Loan fees/costs |  |  | (803 | ) |  |  | (654 | )
Total deferred tax liabilities |  |  | (1,104 | ) |  |  | (1,565 | )
Deferred tax assets, net |  | $ | 7,610 |  |  | $ | 9,189 |
A reconciliation of the Company's effective income tax rate with the federal statutory tax rate is as follows for the periods indicated:
|  | Year Ended March 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
Statutory federal income tax rate |  | 34.0 | % |  | 34.0 | % |  | 34.0 | %
State and local income tax rate |  | 1.5 |  |  | 1.5 |  |  | 1.6 |
ESOP market value adjustment |  | (0.1 | ) |  | (0.1 | ) |  | - |
BOLI |  | (3.8 | ) |  | (2.8 | ) |  | (3.8 | )
Other, net |  | (0.2 | ) |  | 2.2 |  |  | 0.4 |
Effective federal income tax rate |  | 31.4 | % |  | 34.8 | % |  | 32.2 | %
The tax effects of certain tax benefits related to stock options are recorded directly to shareholders' equity. The Bank's retained earnings at both March 31, 2017 and 2016 include a base year allowance for loan losses, which amounted to $2.2 million, for which no federal income tax liability has been recognized. The related unrecognized deferred tax liability at March 31, 2017 and 2016 was $781,000. This represents the balance of the allowance for loan losses created for tax purposes as of December 31, 1987. These amounts are subject to recapture in the unlikely event that the Company's banking subsidiaries (1) make distributions in excess of current and accumulated earnings and profits, as calculated for federal tax purposes, (2) redeem their stock, or (3) liquidate. Management does not expect this temporary difference to reverse in the foreseeable future. At March 31, 2017, the Company had total deferred tax assets of $1.1 million for federal and state net operating loss carryforwards which will expire in years 2032 through 2034. At March 31, 2017 and 2016, the Company had no unrecognized tax benefits or uncertain tax positions. In addition, the Company had no accrued interest or penalties as of March 31, 2017 or 2016. It is the Company's policy to recognize potential accrued interest and penalties as a component provision for income taxes. The Company is subject to U.S. federal and State of Oregon income taxes. The years 2014 to 2017 remain open to examination for federal income taxes, and the years 2013 to 2017 remain open to State of Oregon examination.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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