Income Taxes (Tables)

9 Months Ended

Mar. 31, 2023

Income Taxes

Schedule of Income Tax Provision

	For the three-month periods ended				For the nine-month periods ended
(dollars in thousands)	March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022
Income taxes
Current	$	2,572	$	1,852	$	8,269	$	8,114
Deferred		(1,994)		506		(1,981)		1,019
Total income tax provision	$	578	$	2,358	$	6,288	$	9,133

Schedule of components of net deferred tax assets

(dollars in thousands)	March 31, 2023		June 30, 2022
Deferred tax assets:
Provision for losses on loans	$	11,560	$	7,761
Accrued compensation and benefits		881		828
NOL carry forwards acquired		846		57
Tax credit carry forward		1,035		—
Unrealized loss on other real estate		868		72
Unrealized loss on available for sale securities		5,087		4,921
Total deferred tax assets		20,277		13,639
Deferred tax liabilities:
Purchase accounting adjustments		728		224
Depreciation		4,327		1,974
FHLB stock dividends		120		120
Prepaid expenses		545		415
Other		1,777		181
Total deferred tax liabilities		7,497		2,914
Net deferred tax asset	$	12,780	$	10,725

Schedule of reconciliation of income tax expense at the statutory rate

	For the three-month periods ended				For the nine-month periods ended
(dollars in thousands)	March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022
Tax at statutory rate	$	627	$	2,459	$	6,292	$	9,075
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(54)		(80)		(211)		(273)
State tax, net of Federal benefit		(179)		32		—		501
Cash surrender value of Bank-owned life insurance		(77)		(61)		(211)		(179)
Tax credit benefits		(3)		(13)		(7)		(34)
Other, net		264		21		425		43
Actual provision	$	578	$	2,358	$	6,288	$	9,133