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 rate of 21% to income for the three and six months ended December 31, 2020 and December 31, 2019:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2020			2019			2020			2019
	(Dollars in Thousands)						(Dollars in Thousands)
Income before income taxes	$	22,562		$	14,199		$	36,825		$	29,386
Statutory federal tax rate		21	%		21	%		21	%		21	%
Federal income tax expense at statutory rate	$	4,738		$	2,982		$	7,733		$	6,171
(Reduction) increase in income taxes resulting from:
Tax exempt interest		(91	)		(138	)		(185	)		(282	)
State tax, net of federal tax effect		1,456			809			2,240			2,050
Incentive stock option compensation expense		20			20			40			37
Income from bank-owned life insurance		(338	)		(333	)		(665	)		(666	)
Non-deductible merger-related expenses		-			20			49			20
Bargain purchase gain		-			-			(641	)		-
Utilization of capital loss carryforward		(375	)		-			(375	)		-
Other items, net		727			187			825			34
		6,137			3,547			9,021			7,364
Reversal of valuation allowance		(523	)		-			(523	)		-
Total income tax expense	$	5,614		$	3,547		$	8,498		$	7,364
Effective income tax rate		24.88	%		24.98	%		23.08	%		25.06	%