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Income Taxes | 12 Months Ended
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Jun. 30, 2020
Income Taxes |
Income Taxes. | NOTE 12: 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 tax years ending June 30, 2016 and before. 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, 2020 |  | June 30, 2019
Deferred tax assets: |  | ​ |  |  | ​ |
Provision for losses on loans | ​ | $ | 5,802 | ​ | $ | 4,601
Accrued compensation and benefits | ​ |  | 825 | ​ |  | 692
NOL carry forwards acquired | ​ |  | 149 | ​ |  | 199
Minimum Tax Credit | ​ |  | 130 | ​ |  | 130
Unrealized loss on other real estate | ​ |  | 257 | ​ |  | 134
Purchase accounting adjustments | ​ |  | — | ​ |  | 255
Losses and credits from LLC's | ​ |  | — | ​ |  | 1,206
Other | ​ |  | 26 | ​ |  | —
Total deferred tax assets | ​ |  | 7,189 | ​ |  | 7,218
Deferred tax liabilities: | ​ |  |  | ​ |  |
Purchase accounting adjustments | ​ |  | 64 | ​ |  | —
Depreciation | ​ |  | 1,665 | ​ |  | 1,749
FHLB stock dividends | ​ |  | 120 | ​ |  | 120
Prepaid expenses | ​ |  | 259 | ​ |  | 313
Unrealized gain on available for sale securities | ​ |  | 1,265 | ​ |  | 364
Other | ​ |  | 104 | ​ |  | 61
Total deferred tax liabilities | ​ |  | 3,477 | ​ |  | 2,607
Net deferred tax asset | ​ | $ | 3,712 | ​ | $ | 4,611
​ As of June 30, 2020, the Company had approximately $675,000 and $119,000 in federal and state net operating loss carryforwards, respectively, 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., the August 2014 acquisition of Peoples Service Company, and the June 2017 acquisition of Tammcorp, Inc. 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) |  | 2020 |  | 2019 |  | 2018
Tax at statutory rate | ​ | $ | 7,231 | ​ | $ | 7,550 | ​ | $ | 8,074
Increase (reduction) in taxes resulting from: | ​ |  |  | ​ |  |  | ​ |  |
Nontaxable municipal income | ​ |  | (444) | ​ |  | (400) | ​ |  | (441)
State tax, net of Federal benefit | ​ |  | 299 | ​ |  | 487 | ​ |  | 553
Cash surrender value of Bank-owned life insurance | ​ |  | (214) | ​ |  | (279) | ​ |  | (266)
Tax credit benefits | ​ |  | (48) | ​ |  | (270) | ​ |  | (871)
Adjustment of deferred tax asset for enacted changes in tax laws | ​ |  | — | ​ |  | — | ​ |  | 1,124
Other, net | ​ |  | 63 | ​ |  | (41) | ​ |  | (370)
Actual provision | ​ | $ | 6,887 | ​ | $ | 7,047 | ​ | $ | 7,803
​ For the years ended June 30, 2020 and 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR), compared to 28.1% for the year ended June 30, 2018, as a result of the Tax Cuts and Jobs Act ("Tax Act") signed into law December 22, 2017. The Tax Act ultimately reduced the corporate Federal income tax rate for the Company from 35% to 21%, and for the fiscal year ending June 30, 2018, the Company was administratively subject to a 28.1% AETR. U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the income tax effects of the Tax Act were recognized in the Company’s financial statements for the quarter ended December 31, 2017, and for the twelve months ended June 30, 2018. The Tax Act is complex and requires significant detailed analysis. During the preparation of the Company’s income tax returns for June 30, 2018 and 2019, no significant adjustments related to enactment of the Tax Act were identified. Tax credit benefits are recognized under the deferral 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=116825942&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 http://asc.fasb.org/extlink&oid=84230637&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 http://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 http://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 http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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