Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

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, 2021		June 30, 2020
Deferred tax assets:
Provision for losses on loans	$	7,626	$	5,802
Accrued compensation and benefits		826		825
NOL carry forwards acquired		147		149
Minimum Tax Credit		—		130
Unrealized loss on other real estate		180		257
Other		182		26
Total deferred tax assets		8,961		7,189
Deferred tax liabilities:
Purchase accounting adjustments		210		64
Depreciation		1,842		1,665
FHLB stock dividends		120		120
Prepaid expenses		283		259
Unrealized gain on available for sale securities		821		1,265
Other		1,193		104
Total deferred tax liabilities		4,469		3,477
Net deferred tax asset	$	4,492	$	3,712

Schedule of reconciliation of income tax expense at the statutory rate

	For the year ended June 30
(dollars in thousands)	2021		2020		2019
Tax at statutory rate	$	12,538	$	7,231	$	7,550
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(453)		(444)		(400)
State tax, net of Federal benefit		1,018		299		487
Cash surrender value of Bank-owned life insurance		(378)		(214)		(279)
Tax credit benefits		(11)		(48)		(270)
Other, net		(189)		63		(41)
Actual provision	$	12,525	$	6,887	$	7,047