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INCOME TAXES | 12 Months Ended
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Mar. 31, 2021
INCOME TAXES |
INCOME TAXES | 11. INCOME TAXES Provision for income taxes consisted of the following for the periods indicated (in thousands):
|  | Year Ended March 31
|  | 2021 |  | 2020 |  | 2019
Current |  | $ | 4,410 |  | $ | 5,404 |  | $ | 5,157
Deferred |  |  | (1,429) |  |  | (574) |  |  | (11)
Total |  | $ | 2,981 |  | $ | 4,830 |  | $ | 5,146
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 |  | March
|  | 31, |  | 31,
|  | 2021 |  | 2020
Deferred tax assets: |  |  |  |  |  |
Deferred compensation |  | $ | 75 |  | $ | 63
Allowance for loan losses |  |  | 4,725 |  |  | 3,143
Accrued expenses |  |  | 212 |  |  | 137
Accumulated depreciation and amortization |  |  | 862 |  |  | 935
Deferred gain on sale |  |  | 90 |  |  | 129
Purchase accounting |  |  | 101 |  |  | 123
Net unrealized loss on investment securities available for sale |  |  | 50 |  |  | —
Operating lease liabilities |  |  | 2,204 |  |  | 971
Other |  |  | 412 |  |  | 352
Total deferred tax assets |  |  | 8,731 |  |  | 5,853
Deferred tax liabilities: |  |  |  |  |  |
FHLB stock dividend |  |  | (38) |  |  | (38)
Prepaid expenses |  |  | (214) |  |  | (84)
Operating lease right-of-use assets |  |  | (2,108) |  |  | (947)
Net unrealized gain on investment securities available for sale |  |  | - |  |  | (663)
Loan fees/costs |  |  | (952) |  |  | (844)
Total deferred tax liabilities |  |  | (3,312) |  |  | (2,576)
Deferred tax assets, net |  | $ | 5,419 |  | $ | 3,277
A reconciliation of the Company’s effective income tax rate with the federal statutory tax rate is as follows for the years indicated:
|  | Year Ended March 31, |
|  | 2021 |  | 2020 |  | 2019 |
Statutory federal income tax rate |  | 21.0 | % | 21.0 | % | 21.0 | %
State and local income tax rate |  | 3.0 |  | 3.0 |  | 3.0 |
ESOP market value adjustment |  | (0.1) |  | (0.1) |  | (0.1) |
BOLI |  | (1.5) |  | (1.0) |  | (0.8) |
Other, net |  | (0.3) |  | 0.6 |  | (0.1) |
Effective federal income tax rate |  | 22.1 | % | 23.5 | % | 23.0 | %
For the fiscal years ended 2021 and 2020, the Company utilized a federal corporate income tax rate of 21.0%. The Bank’s retained earnings at both March 31, 2021 and 2020 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, 2021 and 2020 was $528,000. This represents the balance of the allowance for loan losses created for tax purposes as of December 31, 1987. This amount is 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, 2021 and 2020, the Company had no unrecognized tax benefits or uncertain tax positions. In addition, the Company had no accrued interest or penalties related to income tax matters as of March 31, 2021 and 2020. It is the Company’s policy to recognize potential accrued interest and penalties related to income tax matters as a component of the provision for income taxes. The Company is subject to U.S federal and State of Oregon income taxes. The years 2018 to 2020 remain open to examination for federal income taxes, and the years 2017 to 2020 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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