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Note 11: Income Taxes | 12 Months Ended
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Jun. 30, 2017
Notes |
Note 11: Income Taxes | NOTE 11: Income Taxes The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2011. The Company recognized no interest or penalties related to income taxes. The components of net deferred tax assets are summarized as follows:
(dollars in thousands) | June 30, 2017 | June 30, 2016
Deferred tax assets: |  |
Provision for losses on loans | $ 5,563 | $ 4,760
Accrued compensation and benefits | 1,068 | 885
Other-than-temporary impairment on available for sale securities | 128 | 139
NOL carry forwards acquired | 513 | 631
Minimum Tax Credit | 130 | 130
Unrealized loss on other real estate | 131 | 183
Total deferred tax assets | 7,533 | 6,728
Deferred tax liabilities: |  |
Purchase accounting adjustments | 1,193 | 1,132
Depreciation | 2,734 | 1,781
FHLB stock dividends | 203 | 194
Prepaid expenses | 213 | 177
Unrealized gain on available for sale securities | 295 | 977
Other | 991 | 82
Total deferred tax liabilities | 5,629 | 4,343
Net deferred tax (liability) asset | $ 1,904 | $ 2,385
As of June 30, 2017, the Company had approximately $1.3 million and $3.2 million in federal and state net operating loss carryforwards, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc. and the August 2014 acquisition of Peoples Service Company. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027. A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:
| For the year ended June 30
(dollars in thousands) | 2017 | 2016 | 2015
Tax at statutory rate | $ 7,565 | $ 7,536 | $ 6,903
Increase (reduction) in taxes resulting from: |  |  |
Nontaxable municipal income | (513) | (567) | (530)
State tax, net of Federal benefit | 215 | 624 | 523
Cash surrender value of Bank-owned life insurance | (397) | (325) | (193)
Tax credit benefits | (367) | (286) | (364)
Other, net | (441) | (300) | (283)
Actual provision | $ 6,062 | $ 6,682 | $ 6,056
Tax credit benefits are recognized under the flow-through method of accounting for investments in tax credits.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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