UNITED BANCORP INC /OH/ Income Taxes Disclosure
Note 9: Income Taxes
The provision for income taxes includes these components:
| 2025 | | 2024 | |||
(In thousands) | ||||||
Taxes currently payable | $ | 547 | $ | 797 | ||
Deferred income taxes |
| (633) |
| (904) | ||
Income tax (benefit) expense | $ | (86) | $ | (107) | ||
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below for the period ending 2025:
| 2025 | | 2025 |
| |||
(In thousands) | |||||||
Computed at the statutory rate (21%) |
| $ | 1,610 |
| 21 | % | |
(Decrease) increase resulting from | |||||||
Low-income housing and historic tax credits | (28) |
| (0.4) | ||||
Other nontaxable and nondeductible items |
| ||||||
Tax exempt interest | (1,649) |
| (21.5) | ||||
Earnings on bank-owned life insurance - net | (84) |
| (1.1) | ||||
Other | 67 |
| 0.9 | ||||
Other | (2) |
| 0.0 | ||||
| $ | (86) | $ | (1.1) | |||
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense for the period ending December 31, 2024 is shown below:
| 2024 | ||
(In thousands) | |||
Computed at the statutory rate (21%) | $ | 1,532 | |
(Decrease) increase resulting from |
| ||
Tax exempt interest |
| (1,571) | |
Earnings on bank-owned life insurance - net |
| (90) | |
Low income housing credit |
| (63) | |
Other |
| 85 | |
Actual (benefit) tax expense | $ | (107) | |
The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:
| 2025 | | 2024 | |||
(In thousands) | ||||||
Deferred tax assets | ||||||
Allowance for credit losses | $ | 925 | $ | 865 | ||
Stock based compensation |
| 185 |
| 241 | ||
Other real estate | 175 | — | ||||
Accrued expenses | 172 | 61 | ||||
Deferred compensation |
| 585 |
| 513 | ||
Non-accrual loan interest |
| 53 |
| 1 | ||
Lease liability | 621 | 603 | ||||
Net operating loss carryforward | 715 | 561 | ||||
Tax credit carryforward | 930 | 474 | ||||
Unrealized loss on securities available for sale | 1,385 | 2,547 | ||||
Other |
| — |
| 12 | ||
Total deferred tax assets |
| 5,746 |
| 5,878 | ||
|
| | ||||
Deferred tax liabilities |
| |
| | ||
Depreciation |
| (734) | (433) | |||
Deferred loan costs, net |
| (3) | (7) | |||
FHLB stock dividends |
| (60) | (60) | |||
Prepaid expenses |
| (32) | (36) | |||
Intangibles |
| — | (30) | |||
Right of use asset | (549) | (566) | ||||
Employee benefit expense |
| (985) | (735) | |||
Total deferred tax liabilities |
| (2,363) | (1,867) | |||
Net deferred tax asset | $ | 3,383 | $ | 4,011 | ||
The Company has a federal net operating loss carryforward of $3.4 million which may be carried forward indefinitely. Additionally, the Company has tax credits of $930,000 which may be carried forward 20 years and expire beginning in 2044. The Company expects to utilize the tax credit carryforwards prior to expiration therefore no valuation allowance has been recorded.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 17, 2023 | |
| 2021 | Mar 18, 2022 | |
| 2019 | Mar 20, 2020 | |
| 2018 | Mar 20, 2019 | |
| 2017 | Mar 20, 2018 | |
| 2016 | Mar 20, 2017 | |
| 2015 | Mar 16, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.