v3.25.2
Income Taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 8:
Income Taxes
The Company and its subsidiary file income tax returns in the U.S. federal jurisdiction and the States of Illinois, Missouri, Indiana and Iowa. During the years ended June 30, 2025 and 2024, the Company did not recognize expense for interest or penalties.
The provision for income taxes includes these components:
 
    
2025
     
2024
  
Taxes currently payable
    $ 1,499      $ 445  
Deferred income taxes
      114        120  
  
 
 
     
 
 
  
Income tax expense
    $  1,613      $ 565  
  
 
 
     
 
 
  
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:
 
    
2025
    
2024
  
Computed at the statutory rate of 21.0%
    $ 1,243     $ 495  
Increase (decrease) resulting from
     
Tax exempt interest
      (28 )      (30 ) 
Cash surrender value of life insurance
      (96 )      (106 ) 
State income taxes
      434       152  
Other
      60       54  
  
 
 
    
 
 
  
Actual tax expense
    $ 1,613     $ 565  
  
 
 
    
 
 
  
Tax rate as a percentage of
pre-tax
income
      27.3 %      24.0 % 
 
 
The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were:
 
    
2025
     
2024
  
Deferred tax assets
      
Allowance for credit losses (ACL) on loans
    $ 1,886      $ 2,134  
ACL on
off-balance
sheet credit exposures
      21        28  
Accrued retirement liability
      729        726  
Deferred compensation
      739        678  
Deferred loan fees
      55        99  
Unrealized losses on
available-for-sale
securities
      6,595        8,280  
Accrued vacation
      63        70  
MPF recourse liability
      24        29  
Deferred revenue Mastercard
      5        9  
Restricted stock
      33        20  
Accrued professional services
      22        21  
Other
      1        3  
  
 
 
     
 
 
  
     10,173        12,097  
  
 
 
     
 
 
  
Deferred tax liabilities
      
Depreciation
      (755 )       (815 ) 
Mortgage servicing rights
      (407 )       (425 ) 
Deferred loan expense
      (153 )       (214 ) 
Prepaid expenses
      (91 )       (77 ) 
Postretirement health plan
      (111 )       (83 ) 
  
 
 
     
 
 
  
     (1,517 )       (1,614 ) 
  
 
 
     
 
 
  
Net deferred tax asset
    $ 8,656      $ 10,483  
  
 
 
     
 
 
  
Retained earnings at both June 30, 2025 and 2024, include approximately $2,217,000, for which no deferred federal income tax liability has been recognized. These amounts represent an allocation of income to bad debt deductions for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which would be subject to the then-current corporate income tax rate. The deferred income tax liabilities on the preceding amounts that would have been recorded if they were expected to reverse into taxable income in the foreseeable future were approximately $466,000 at both June 30, 2025 and 2024.