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Income Taxes
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes
Note 10:    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, 2023 and 2022, the Company did not recognize expense for interest or penalties.
 
 
The provision for income taxes includes these components:
 
    
      2023      
     
      2022      
  
Taxes currently payable
    $ 1,756      $ 1,825  
Deferred income taxes
      (156 )       218  
  
 
 
     
 
 
  
Income tax expense
    $ 1,600      $ 2,043  
  
 
 
     
 
 
  
A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:
 
    
      2023      
    
      2022      
  
Computed at the statutory rate of 21.0%
    $ 1,315     $ 1,644  
Increase (decrease) resulting from
     
Tax exempt interest
      (22 )      (11 ) 
Cash surrender value of life insurance
      (81 )      (102 ) 
State income taxes
      451       570  
Other
      (63 )      (58 ) 
  
 
 
    
 
 
  
Actual tax expense
    $ 1,600     $ 2,043  
  
 
 
    
 
 
  
Tax rate as a percentage of
pre-tax
income
      25.6 %      26.1 % 
The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets were:
 
    
      2023      
     
      2022      
  
Deferred tax assets
      
Allowance for credit losses (ACL) on loans
    $ 2,033      $ 2,007  
ACL on
off-balance
sheet credit exposures
      62        —    
Accrued retirement liability
      693        714  
Deferred compensation
      612        557  
Deferred loan fees
      126        115  
Postretirement health plan
      —          33  
Unrealized losses on
available-for-sale
securities
      8,658        6,883  
Accrued vacation
      56        53  
MPF recourse liability
      36        50  
Deferred revenue Mastercard
      12        16  
Stock options—Directors
      54        54  
Restricted stock
      61        —    
Accrued professional services
      27        18  
Other
      28        22  
  
 
 
     
 
 
  
     12,458        10,522  
  
 
 
     
 
 
  
 
 
    
      2023      
     
      2022      
  
Deferred tax liabilities
      
Depreciation
      (698 )       (682 ) 
Mortgage servicing rights
      (423 )       (417 ) 
Deferred loan expense
      (204 )       (185 ) 
Restricted stock
      —          (32 ) 
Prepaid expenses
      (69 )       (40 ) 
Postretirement health plan
      (27 )       —    
  
 
 
     
 
 
  
     (1,421 )       (1,356 ) 
  
 
 
     
 
 
  
Net deferred tax asset
    $ 11,037      $ 9,166  
  
 
 
     
 
 
  
Retained earnings at both June 30, 2023 and 2022, 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, 2023 and 2022.