Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The components of income taxes are as follows:

	Years Ended June 30,
	2022		2021			2020
	(In Thousands)
Current income tax expense:
Federal	$	12,720	$	12,051		$	6,745
State		7,057		5,058			4,877
		19,777		17,109			11,622
Deferred income tax expense:
Federal		2,895		2,673			1,153
State		2,128		2,016			235
		5,023		4,689			1,388
Valuation allowance		-		(535	)		(723	)
Total income tax expense	$	24,800	$	21,263		$	12,287

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation between the reported income taxes for the periods presented and the income taxes which would be computed by applying the federal income tax rates applicable to those periods. The federal income tax rate of 21% was applicable for the years ended June 30, 2022, 2021 and 2020.

	Years Ended June 30,
	2022			2021			2020
	(Dollars In Thousands)
Income before income taxes	$	92,347		$	84,496		$	57,252
Statutory federal tax rate		21	%		21	%		21	%
Federal income tax expense at statutory rate	$	19,393		$	17,744		$	12,023
(Reduction) increases in income taxes resulting from:
Tax exempt interest		(266	)		(345	)		(497	)
State tax, net of federal tax effect		7,257			5,464			3,914
Incentive stock options compensation expense		45			85			78
Income from bank-owned life insurance		(1,281	)		(1,255	)		(1,314	)
Disqualifying disposition on incentive stock options		-			(33	)		-
Non-deductible merger-related expenses		-			49			148
Bargain purchase gain		-			(641	)		-
Tax benefit arising from the adoption of the CARES   Act provisions		-			-			(1,624	)
Other items, net		(348	)		730			282
		24,800			21,798			13,010
Valuation allowance		-			(535	)		(723	)
Total income tax expense	$	24,800		$	21,263		$	12,287
Effective income tax rate		26.86	%		25.16	%		21.46	%

Schedule of Deferred Income Tax Assets and Liabilities

The tax effects of existing temporary differences that give rise to deferred income tax assets and liabilities are as follows:

	June 30,
	2022		2021
	(In Thousands)
Deferred income tax assets:
Purchase accounting	$	6,327	$	8,417
Accumulated other comprehensive income
Defined benefit plans		26		326
Derivatives		-		94
Unrealized loss on securities available for sale		34,104		-
Allowance for credit losses		13,809		17,376
Benefit plans		2,494		2,432
Compensation		2,023		1,616
Stock-based compensation		2,834		2,937
Uncollected interest		1,705		1,484
Depreciation		1,931		1,691
Net operating loss carryover		4		5
Capital loss carryforward		141		313
Other items		844		1,048
		66,242		37,739
Valuation allowance		-		-
		66,242		37,739
Deferred income tax liabilities:
Deferred loan fees and costs		838		620
Accumulated other comprehensive income
Derivatives		11,542		-
Unrealized gain on securities available for sale		-		2,882
Goodwill		4,510		4,560
Other items		2		354
		16,892		8,416
Net deferred income tax asset	$	49,350	$	29,323