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Note 8: Income Taxes | 9 Months Ended
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Mar. 31, 2017
Notes |
Note 8: Income Taxes | Note 8: Income Taxes The Company and its subsidiary file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state examinations by tax authorities for fiscal years before 2011. The Company recognized no interest or penalties related to income taxes. The Company’s income tax provision is comprised of the following components:
| For the three-month period ended | For the nine-month period ended
(dollars in thousands) | March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016
Income taxes |  |  |  |
Current | $1,457 | $437 | $4,316 | $4,562
Deferred | 6 | 1,107 | 240 | 468
Total income tax provision | $1,463 | $1,544 | $4,556 | $5,030
The components of net deferred tax assets are summarized as follows:
(dollars in thousands) | March 31, 2017 | June 30, 2016
Deferred tax assets: |  |
Provision for losses on loans | $5,318 | $4,760
Accrued compensation and benefits | 874 | 885
Other-than-temporary impairment on available for sale securities | 129 | 139
NOL carry forwards acquired | 534 | 631
Minimum Tax Credit | 130 | 130
Unrealized loss on other real estate | 122 | 183
Unrealized loss on available for sale securities | 132 | -
Other | - | -
Total deferred tax assets | 7,239 | 6,728
Deferred tax liabilities: |  |
Purchase accounting adjustments | 877 | 1,132
Depreciation | 1,890 | 1,781
FHLB stock dividends | 184 | 194
Prepaid expenses | 190 | 177
Unrealized gain on available for sale securities | - | 977
Other | 844 | 82
Total deferred tax liabilities | 3,985 | 4,343
Net deferred tax (liability) asset | $3,254 | $2,385
As of March 31, 2017 and June 30, 2016, the Company had approximately $1.4 million and $3.1 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 is shown below:
| For the three-month period ended | For the nine-month period ended
(dollars in thousands) | March 31, 2017 | March 31, 2016 | March 31, 2017 | March 31, 2016
Tax at statutory rate | $1,896 | $1,703 | $5,738 | $5,669
Increase (reduction) in taxes resulting from: |  |  |  |
Nontaxable municipal income | (124) | (142) | (385) | (418)
State tax, net of Federal benefit | 52 | 145 | 160 | 473
Cash surrender value of Bank-owned life insurance | (176) | (50) | (323) | (256)
Tax credit benefits | (81) | (63) | 267 | (188)
Other, net | (104) | (49) | (900) | (250)
Actual provision | $1,463 | $1,544 | $4,556 | $5,030
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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