Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Taxes

Schedule of components of net deferred tax assets

The components of net deferred tax assets are summarized as follows:

(dollars in thousands)	June 30, 2020		June 30, 2019
Deferred tax assets:
Provision for losses on loans	$	5,802	$	4,601
Accrued compensation and benefits		825		692
NOL carry forwards acquired		149		199
Minimum Tax Credit		130		130
Unrealized loss on other real estate		257		134
Purchase accounting adjustments		—		255
Losses and credits from LLC's		—		1,206
Other		26		—
Total deferred tax assets		7,189		7,218
Deferred tax liabilities:
Purchase accounting adjustments		64		—
Depreciation		1,665		1,749
FHLB stock dividends		120		120
Prepaid expenses		259		313
Unrealized gain on available for sale securities		1,265		364
Other		104		61
Total deferred tax liabilities		3,477		2,607
Net deferred tax asset	$	3,712	$	4,611

Schedule of reconciliation of income tax expense at the statutory rate

	For the year ended June 30
(dollars in thousands)	2020		2019		2018
Tax at statutory rate	$	7,231	$	7,550	$	8,074
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(444)		(400)		(441)
State tax, net of Federal benefit		299		487		553
Cash surrender value of Bank-owned life insurance		(214)		(279)		(266)
Tax credit benefits		(48)		(270)		(871)
Adjustment of deferred tax asset for enacted changes in tax laws		—		—		1,124
Other, net		63		(41)		(370)
Actual provision	$	6,887	$	7,047	$	7,803