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INCOME TAXES | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The provision for income taxes is as follows:
| At June 30,
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 64,800 |  |  | $ | 61,827 |  |  | $ | 51,893 |
State | 43,843 |  |  | 37,037 |  |  | 33,852 |
| 108,643 |  |  | 98,864 |  |  | 85,745 |
Deferred: |  |  |  |  |
Federal | (5,600) |  |  | (5,562) |  |  | (3,814) |
State | (3,800) |  |  | (3,266) |  |  | (2,737) |
| (9,400) |  |  | (8,828) |  |  | (6,551) |
Total | $ | 99,243 |  |  | $ | 90,036 |  |  | $ | 79,194 |
The differences between the statutory federal income tax rate and the effective tax rates are summarized as follows:
| At June 30,
| 2022 |  | 2021 |  | 2020
Statutory federal tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Increase (decrease) resulting from: |  |  |  |  |
State taxes—net of federal tax benefit | 9.13 | % |  | 8.70 | % |  | 9.27 | %
Cash surrender value | (0.26) | % |  | (0.01) | % |  | (0.02) | %
Deferred tax asset write-off | — | % |  | — | % |  | 0.77 | %
Tax credits | (0.44) | % |  | (0.59) | % |  | (0.77) | %
Non-taxable income | (0.09) | % |  | (0.09) | % |  | (0.10) | %
Excess benefit RSU vesting | (1.31) | % |  | (0.64) | % |  | (0.05) | %
Other | 1.16 | % |  | 1.08 | % |  | 0.05 | %
Effective tax rate | 29.19 | % |  | 29.45 | % |  | 30.15 | %
The components of the net deferred tax asset are as follows:
| At June 30,
(Dollars in thousands) | 2022 |  | 2021
Deferred tax assets: |  |  |
Allowance for credit losses | $ | 59,045 |  |  | $ | 51,663 |
State taxes | 949 |  |  | 903 |
Stock-based compensation expense | 5,101 |  |  | 4,891 |
Unrealized net losses on securities | 1,261 |  |  | — |
Accrued compensation | 2,533 |  |  | 3,388 |
Securities impaired | 270 |  |  | 266 |
Non-accrual loan interest income | 2,608 |  |  | 4,182 |
Lease liability | 24,626 |  |  | 22,730 |
Net operating loss carryforward | 1,273 |  |  | 1,811 |
Other liabilities – accruals | 3,116 |  |  | — |
Total deferred tax assets | 100,782 |  |  | 89,834 |
Deferred tax liabilities: |  |  |
FHLB stock dividend | (842) |  |  | (830) |
Other assets—prepaids | (2,083) |  |  | (2,717) |
Depreciation and amortization | (8,838) |  |  | (9,998) |
Operating lease right-of-use asset | (22,757) |  |  | (20,771) |
Unrealized net gains on securities | — |  |  | (1,155) |
Total deferred tax liabilities | (34,520) |  |  | (35,471) |
Net deferred tax asset 1 | $ | 66,262 |  |  | $ | 54,363 |
1 Net deferred tax asset is included in the other assets line on the consolidated balance sheet. The Company records deferred tax assets for net operating losses when the benefit is more likely than not to be realized. As of June 30, 2022, the Company had federal net operating loss carryforwards of approximately $5.1 million. The annual 382 limitation is approximately $2.3 million for federal purposes. The Company also had state net operating loss carryforwards of $1.7 million. Of this amount, $1.6 million is subject to an annual 382 limitation of approximately $0.1 million for state purposes. These carryforwards begin to expire in 2034 and 2035 for federal and state purposes, respectively. The Company establishes a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. As of June 30, 2022, relating to a $2.4 million state net operating loss, the Company recognized a tax effected valuation allowance of $0.2 million. As of June 30, 2022 and 2021, the Company forecasts sufficient future consolidated earnings to realize its remaining deferred tax asset and has not provided for an additional allowance. The following is a reconciliation of the beginning and ending amount of unrecognized tax positions for the periods presented:
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Balance—beginning of period | $ | 3,369 |  |  | $ | 813 |  |  | $ | 1,084 |
Additions—current year tax positions | 690 |  |  | 355 |  |  | 115 |
Additions—prior year tax positions | 481 |  |  | 2,205 |  |  | 31 |
Reductions—prior year tax positions | (233) |  |  | (4) |  |  | (417) |
Total liability for unrecognized tax positions—end of period | $ | 4,307 |  |  | $ | 3,369 |  |  | $ | 813 |
The Company is subject to federal income tax and income tax of state taxing authorities. The Company’s federal income tax returns for the years ended June 30, 2019, 2020, and 2021 and its state taxing authorities income tax returns for the years ended June 30, 2018, 2019, 2020 and 2021 are open to audit under the statutes of limitations by the Internal Revenue Service and state taxing authorities. The Company received federal and state tax credits for the years ended June 30, 2022, 2021, and 2020, respectively. These tax credits reduced the effective tax rate by approximately 0.44%, 0.59%, and 0.77% respectively.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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