v3.26.1
Income Taxes
 9 Months Ended
Mar. 31, 2026
Income Taxes  
Income Taxes

Note 9: Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal examinations by tax authorities for tax years ending June 30, 2021 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented.

The Company’s income tax provision is comprised of the following components:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

For the three-month periods ended

  ​ ​ ​

For the nine-month periods ended

(dollars in thousands)

​

March 31, 2026

​

March 31, 2025

​

March 31, 2026

​

March 31, 2025

Income taxes

 

​

  ​

 

​

  ​

​

​

  ​

 

​

  ​

Current

​

$

4,080

​

$

4,139

​

$

11,436

​

$

12,065

Deferred

​

 

101

​

 

—

​

 

1,082

​

 

—

Total income tax provision

​

$

4,181

​

$

4,139

​

$

12,518

​

$

12,065

​

The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows:

​

​

​

​

​

​

​

​

(dollars in thousands)

  ​ ​ ​

March 31, 2026

  ​ ​ ​

June 30, 2025

Deferred tax assets:

 

​

  ​

 

​

  ​

Provision for losses on loans

​

$

13,303

​

$

12,225

Accrued compensation and benefits

​

 

1,153

​

 

1,210

NOL carry forwards acquired

​

 

20

​

 

24

Unrealized loss on other real estate

​

 

12

​

 

—

Unrealized loss on available for sale securities

​

​

2,550

​

​

3,201

Other

​

 

—

​

 

552

Total deferred tax assets

​

 

17,038

​

 

17,212

​

​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

2,497

​

 

2,604

Depreciation

​

 

4,528

​

 

4,468

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

603

​

 

586

Other

​

 

1,589

​

 

—

Total deferred tax liabilities

​

 

9,337

​

 

7,778

Net deferred tax asset

​

$

7,701

​

$

9,434

​

As of March 31, 2026, the Company had approximately $89,000 in federal net operating loss carryforwards, which were acquired in the July 2009 Southern Bank of Commerce merger. 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 2030.

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

For the three-month periods ended

  ​ ​ ​

For the nine-month periods ended

(dollars in thousands)

​

March 31, 2026

​

March 31, 2025

​

March 31, 2026

​

March 31, 2025

Tax at statutory rate

​

$

4,608

​

$

4,163

​

$

13,456

​

$

11,520

Increase (reduction) in taxes resulting from:

​

 

​

​

 

​

​

 

​

​

 

​

Nontaxable municipal income

​

 

(200)

​

 

(74)

​

 

(398)

​

 

(256)

State tax, net of Federal benefit

​

 

117

​

 

196

​

 

313

​

 

480

Cash surrender value of Bank-owned life insurance

​

 

(142)

​

 

(108)

​

 

(373)

​

 

(326)

Tax credit benefits

​

 

(175)

​

 

(2)

​

 

(525)

​

 

(29)

Other, net

​

 

(27)

​

 

(36)

​

 

45

​

 

676

Actual provision

​

$

4,181

​

$

4,139

​

$

12,518

​

$

12,065

​

For the three- and nine-month periods ended March 31, 2026, and 2025, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).

Tax credit benefits are recognized under the proportional amortization method of accounting for investments in tax credits.