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Income Taxes
 12 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense as of the dates indicated consisted of:
Year Ended June 30,
202220212020
Current
Federal$2,411 $(340)$80 
State730 188 748 
Total current expense (benefit)3,141 (152)828 
Deferred
Federal5,992 3,374 5,184 
State592 199 12 
Total deferred expense6,584 3,573 5,196 
Total income tax expense$9,725 $3,421 $6,024 
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to income before income taxes as a result of the following differences for the periods indicated:
Year Ended June 30,
202220212020
AmountRateAmountRateAmountRate
Tax at federal income tax rate$9,529 21 %$4,010 21 %$6,049 21 %
Increase (decrease) resulting from
Tax exempt income(844)(2)(911)(5)(872)(3)
State tax, net of federal benefit818 2 306 2 600 2 
Other222 — 16 — 247 1 
Total$9,725 21 %$3,421 18 %$6,024 21 %
The sources and tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at June 30, 2022 and 2021 are presented below:
June 30,
20222021
Deferred tax assets
Allowance for credit losses$8,796 $8,158 
Deferred compensation and post-retirement benefits8,407 8,349 
Impairments on real estate owned61 110 
Other than temporary impairment on investments— 2,205 
Net operating loss carryforward3,353 4,489 
Discount from business combinations1,228 2,474 
Unrealized loss on securities held for sale718 — 
Share-based compensation expense1,860 2,166 
Other2,000 1,412 
Total deferred tax assets26,423 29,363 
Deferred tax liabilities  
Depreciable basis of fixed assets(8,565)(6,555)
Deferred loan fees(774)(753)
FHLB stock, book basis in excess of tax(89)(89)
Unrealized gain on debt securities available for sale— (452)
BOLI available for redemption(4,679)(3,902)
Other(829)(711)
Total deferred tax liabilities(14,936)(12,462)
Net deferred tax assets$11,487 $16,901 
The Company had federal NOL carry forwards of $15,967 and $21,377 as of June 30, 2022 and June 30, 2021, respectively, with a recorded tax benefit of $3,353 and $4,489 included in deferred tax assets. The majority of these NOLs will expire for federal tax purposes from 2028 through 2036, if not previously used.
Retained earnings at June 30, 2022 and 2021 include $19,570 representing pre-1988 tax bad debt reserve base year amounts for which no deferred tax liability has been provided since these reserves are not expected to reverse and may never reverse. Circumstances that would require an accrual of a portion or all of this unrecorded tax liability are a failure to meet the definition of a bank, dividend payments in excess of current year or accumulated earnings and profits, or other distributions in dissolution or liquidation of the Bank. The Company is no longer subject to examination for federal and state purposes for tax years prior to 2018.