v3.26.1
Income Taxes
 12 Months Ended
Jun. 30, 2026
Income Taxes  
Income Taxes

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NOTE 10: Income Taxes

The Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the expected income tax expense (benefit) and effective tax rate, computed by applying the effective statutory rate of 21% for the year ended June 30, 2026 as follows:

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For the year ended June 30

(dollars in thousands)

​

2026

U.S. Federal statutory tax rate

​

$

18,292

​

21.0

%

State and local income taxes, net of federal income tax effect (1)

​

​

431

​

0.5

%

Nontaxable or nondeductible items:

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​

​

​

​

​

Nontaxable municipal income

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(564)

​

(0.6)

%

Cash surrender value of Bank-owned life insurance

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(540)

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(0.6)

%

Tax credit benefits

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(2,447)

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(2.8)

%

Other, net

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93

​

0.1

%

Actual provision

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$

15,265

​

17.5

%

(1) State taxes in Missouri made up the majority (greater than 50%) of the tax effect in this category.

The following table presents the required disclosures prior to the Company's adoption of ASU 2023-09 and reconciles the expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:

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For the years ended June 30,

(dollars in thousands)

​

2025

​

2024

Tax at statutory rate

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$

15,539

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$

13,253

Increase (reduction) in taxes resulting from:

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​

​

 

​

Nontaxable municipal income

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(332)

​

 

(471)

State tax, net of Federal benefit

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653

​

 

412

Cash surrender value of Bank-owned life insurance

​

 

(438)

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(401)

Tax credit benefits

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(710)

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(12)

Other, net

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704

​

 

147

Actual provision

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$

15,416

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$

12,928

​

For the years ended June 30, 2026, 2025, and 2024, 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.

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

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(dollars in thousands)

  ​ ​ ​

June 30, 2026

  ​ ​ ​

June 30, 2025

Deferred tax assets:

 

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  ​

 

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  ​

Provision for losses on loans

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$

13,053

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$

12,225

Accrued compensation and benefits

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1,283

​

 

1,210

NOL carry forwards acquired

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18

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24

Unrealized loss on available-for-sale securities

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​

2,749

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​

3,201

Other

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887

​

 

552

Total deferred tax assets

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17,990

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17,212

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​

​

​

​

​

​

Deferred tax liabilities:

​

 

​

​

 

​

Purchase accounting adjustments

​

 

2,423

​

 

2,604

Depreciation

​

 

4,606

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4,468

FHLB stock dividends

​

 

120

​

 

120

Prepaid expenses

​

 

563

​

 

586

Total deferred tax liabilities

​

 

7,712

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7,778

Net deferred tax asset

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$

10,278

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$

9,434

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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 and state tax examinations by tax authorities for tax years ending June 30, 2022 and before. The Company’s Missouri income tax returns for the fiscal years ended 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.

As of June 30, 2026, the Company had approximately $82,000 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.

The Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table represents income taxes paid, net of refunds received, disaggregated by federal, and state taxes, including income taxes paid, net of refunds received, in individual jurisdictions that are equal to or greater than 5% of total income taxes paid:

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For the year ended

​

​

June 30,

(dollars in thousands)

​

2026

U.S. Federal income taxes paid

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$

9,128

State income taxes paid

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11

Total income taxes paid

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$

9,139

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