FEDERAL INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

Components of Income Tax Expense Benefit

Income tax expense (benefit) was as follows:

	2012			2011			2010
Current expense (benefit)	$	—		$	(450,281	)	$	(4,695,438	)
Deferred expense (benefit)		(218,999	)		(2,978,446	)		5,426,287
Benefit of operating loss carryforwards		—			—			—
Establishment of valuation allowance		—			3,550,566			—
Total	$	(218,999	)	$	121,839		$	730,849

Federal Income Tax Statutory Rate to Income Before Federal Income Taxes

The provision for federal income taxes differs from the amounts computed by applying the U.S. federal income tax statutory rate to income before federal income taxes. These differences are reconciled as follows:

	2012						2011						2010
	Amount			%			Amount			%			Amount			%
Computed expected tax	$	(542,526	)		35.0	%	$	(3,349,248	)		35.0	%	$	760,097			35.0	%
Increase (decrease) in tax resulting from:
Effect of graduated rates		15,501			(1.0	)		95,693			(1.0	)		(21,717	)		(1.0	)
Bank-owned life insurance		(77,715	)		5.0			(93,859	)		1.0			(85,006	)		(3.9	)
Stock compensation		12,536			(0.8	)		39,849			(0.4	)		31,971			1.5
Increase in deferred tax valuation allowance		369,528			(23.9	)		3,550,566			(37.1	)		—			0.0
Other, net		3,677			(0.2	)		(121,162	)		1.2			45,504			2.1
	$	(218,999	)		14.1	%	$	121,839			(1.3	)%	$	730,849			33.7	%

Net Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The net tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at June 30, 2012 and 2011 are:

	2012			2011
Deferred tax assets:
Loan loss reserves	$	7,314,023		$	7,380,529
Deferred compensation		179,258			165,118
Deferred loan fees, net		123,361			340,042
Unrealized gains on loans and securities held for sale		108,246			41,852
Net operating loss carryforward		5,532,746			4,476,068
Other		93,425			131,765
Total gross deferred tax assets		13,351,059			12,535,374
Deferred tax liabilities:
FHLB stock dividend		(2,041,343	)		(2,041,343	)
Originated mortgage servicing asset		(2,334,894	)		(2,556,558	)
Fixed assets		(293,669	)		(336,641	)
Prepaid franchise tax		(122,767	)		(154,652	)
Debt discharge income deferral		(2,788,000	)		(2,788,000	)
Other		(982,187	)		(239,509	)
Total gross deferred tax liabilities		(8,562,860	)		(8,116,703	)
Deferred tax asset before valuation allowance	$	4,788,199		$	4,418,671
Deferred tax valuation allowance		(4,788,199	)		(4,418,671	)
Total net deferred tax asset	$	—		$	—