Core Viewpoint - Southern Missouri Bancorp, Inc. (SMBC) shows potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend may be forthcoming [1][2]. Technical Analysis - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), suggesting a bullish breakout [2]. - The formation of a golden cross typically follows a downtrend, a bottoming out, and then a trend reversal leading to higher prices [3]. Performance Metrics - SMBC has experienced a price rally of 12.2% over the past four weeks, indicating strong momentum [4]. - The company currently holds a 2 (Buy) rating on the Zacks Rank, suggesting favorable market sentiment [4]. Earnings Outlook - There has been one upward revision in earnings estimates for SMBC over the past 60 days, with no downward revisions, reflecting a positive earnings outlook for the current quarter [4]. - The Zacks Consensus Estimate for SMBC has also increased, further supporting the bullish case for the stock [4][5]. Investment Consideration - The combination of positive earnings estimate revisions and the technical breakout signals suggests that investors should monitor SMBC for potential gains in the near future [5].

Core Viewpoint - Southern Missouri Bancorp (SMBC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and upcoming years [2]. - The recent upgrade reflects a 7.9% increase in the Zacks Consensus Estimate for Southern Missouri Bancorp over the past three months, with expected earnings of $6.05 per share for the fiscal year ending June 2026, showing no year-over-year change [9]. Impact of Institutional Investors - Changes in earnings estimates are closely linked to stock price movements, largely due to institutional investors who adjust their valuations based on these estimates, leading to significant buying or selling activity [5][6]. Zacks Rating System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade of Southern Missouri Bancorp to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].

Core Viewpoint - Southern Missouri Bancorp Inc. (NASDAQ:SMBC) shares are currently trading at $56.66, reflecting a slight increase of 0.05% in the current session, with a notable 7.01% rise over the past month, but a decline of 13.69% over the past year, raising questions about potential undervaluation despite the company's current performance [1]. Group 1: Stock Performance - The stock has experienced a 7.01% increase over the past month [1]. - Over the past year, the stock has decreased by 13.69% [1]. Group 2: P/E Ratio Analysis - Southern Missouri Bancorp has a lower P/E ratio compared to the aggregate P/E of 11.2 for the Banks industry, which may suggest that the stock is undervalued or that shareholders do not expect better future performance [5][6]. - A lower P/E ratio can indicate potential undervaluation, but it may also reflect weak growth prospects or financial instability [10]. Group 3: Investment Considerations - The P/E ratio is a valuable tool for assessing market performance, but it should be used cautiously and in conjunction with other financial metrics and qualitative factors to make informed investment decisions [9][10].

Core Insights - SMBC Group has appointed Juan (JC) Kreutz as the Head of Structured Finance Solutions for the Americas and Deputy Head for the Americas business [1][3] - JC will manage various structured product businesses, including project finance debt & advisory, real estate finance, leveraged finance, fund finance, transportation, leasing, and global trade finance [2][3] Group 1: Leadership and Experience - JC Kreutz has over 10 years of experience at SMBC, contributing to the bank's strong position in U.S. project finance and expanding its presence in Latin America [3] - Before his current role, JC served as General Manager of Global Structured Finance for SMBC Americas, overseeing multiple industry groups [3][4] - JC has a background in Debt Capital Markets at BBVA Securities and has held positions in energy finance and investment banking at several major financial institutions [4] Group 2: Organizational Context - JC succeeds Carl Adams, who retired after 12 years of leadership at the bank [5] - SMBC Group is a leading global financial institution with a history of 400 years, offering a wide range of financial services across nearly 40 countries [6] - In the Americas, SMBC Group operates in several countries, including the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru [7]

Financial Performance - Net income for the first three months of fiscal 2025 was $15.7 million, an increase of $3.2 million, or 25.6%, compared to the same period of the prior fiscal year [177]. - Fully-diluted net income per share increased by $0.28, or 25.5%, to $1.38 for the three-month period ended September 30, 2025 [177]. - Net interest income increased by $5.8 million, or 15.7%, for the first three months of fiscal 2025 [177]. - Noninterest income decreased by $601,000, or 8.4%, to $6.6 million for the three-month period ended September 30, 2025 [181]. - Noninterest expense decreased by $790,000, or 3.1%, to $25.1 million for the three-month period ended September 30, 2025 [183]. - The annualized return on average assets for the three-month period ended September 30, 2025, was 1.24%, up from 1.07% in the same period last year [202]. Asset and Liability Management - Total assets increased by $16.7 million, or 0.3%, to $5.0 billion at September 30, 2025, compared to June 30, 2025 [185]. - Loans, net of the allowance for credit losses, increased by $90.7 million, or 2.2%, to $4.1 billion at September 30, 2025 [187]. - Cash equivalents and time deposits decreased by $68.7 million, or 35.6%, to $124.4 million at September 30, 2025 [186]. - Deposits were $4.3 billion at September 30, 2025, a decrease of $878,000 compared to June 30, 2025, with a notable decline in certificates of deposit by $33.2 million [191]. - Stockholders' equity increased to $560.2 million at September 30, 2025, an increase of $15.5 million or 2.9% from June 30, 2025, primarily due to retained earnings [193]. Credit Quality and Loss Provisions - Provision for Credit Losses (PCL) increased to $4.5 million for the three-month period ended September 30, 2025, compared to $2.2 million in the same period last year, reflecting a $4.1 million provision for loan balances and a $359,000 provision for off-balance sheet credit exposures [206]. - Net charge-offs for the quarter were $3.7 million, with a net charge-off rate of 0.36%, compared to 0.01% in the same quarter last year [216]. - Loans adversely classified increased to $55.1 million, or 1.31% of total loans, as of September 30, 2025, up from $49.6 million, or 1.21%, at June 30, 2025 [219]. - Total past due loans rose from $25.6 million at June 30, 2025, to $29.3 million at September 30, 2025, compared to $13.4 million at September 30, 2024 [219]. - The Allowance for Credit Loss (ACL) at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans, compared to $51.6 million or 1.26% at June 30, 2025 [214]. Interest Rate Risk Management - The net interest margin increased by 23 basis points to 3.57% during the first three months of fiscal 2026 [179]. - The yield on interest-earning assets increased by one basis point, while the cost of interest-bearing liabilities decreased by 28 basis points, resulting in a net interest margin increase from 3.34% to 3.57% [203]. - The Company aims to manage interest rate sensitivity to maximize net interest income while minimizing excessive interest rate risk exposure [236]. - The Company has utilized longer-term fixed-rate FHLB advances to offset interest rate risk from fixed-rate lending [237]. - The company maintained a $60 million notional amount of pay-fixed/receive-floating interest rate swaps to hedge against rising interest rates [244]. Regulatory Capital and Compliance - Total capital to risk-weighted assets ratio was 13.94% for the consolidated entity as of September 30, 2025, exceeding the required minimum of 8.00% [233]. - Tier I capital to risk-weighted assets ratio was 12.51% for the consolidated entity as of September 30, 2025, above the required minimum of 6.00% [233]. - The Bank was categorized as well capitalized under the regulatory framework for prompt corrective action as of September 30, 2025 [231]. Operational Adjustments and Customer Focus - The Company continues to focus on customer retention and satisfaction while offering new products to increase less rate-sensitive deposit accounts [238]. - Modifications to borrowers experiencing financial difficulty totaled $28.7 million as of September 30, 2025, with $1.6 million considered nonperforming [223]. Control Procedures and Limitations - The Company acknowledges that its control procedures cannot guarantee the prevention of all errors and fraud, providing only reasonable assurance [249]. - Inherent limitations in control procedures may lead to undetected misstatements due to error or fraud [249]. - Control procedures can be circumvented by individual acts, collusion, or management override [249]. - The design of control procedures is based on assumptions about future events, which may not hold true [249]. - Over time, controls may become inadequate due to changing conditions or deteriorating compliance [249].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][18] - Non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][22] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans [23] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, with a year-over-year increase of $225 million or 5.7% [6] - The growth in the quarter was led by non-owner occupied commercial real estate, one-to-four family residential, commercial & industrial, and multifamily loans [6] - Deposit balances were relatively flat compared to the linked quarter but up $240 million or 5.9% over the last 12 months [7] Market Data and Key Metrics Changes - Strong growth was experienced in the east region, particularly in agricultural activity, while the south region also showed good growth [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [7][20] - The company is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and utilize government programs to mitigate risk [17] - There is a modest uptick in M&A discussions, with the company well-positioned to act when the right partner is ready [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about performance in the new fiscal year, despite a larger provision for credit losses due to the evolving economic environment [3][24] - The company expects to see continued net interest income growth through the year, despite historical seasonal slowdowns in loan growth [20][21] - Management noted that charge-off activity is expected to drop from the levels of the last two quarters, with current delinquency levels trending back to historical ranges [33] Other Important Information - The company has repurchased just over 8,000 shares at an average price of just under $55, with an average purchase price at 127% of tangible book value [9] - The tangible book value increased by $5.09 or 13.3% over the last 12 months, attributed to earnings retention and improvements in the bank's unrealized loss in the investment portfolio [8][9] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels running similar to historical ranges [33] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability-sensitive, with expectations of being a net beneficiary of rate cuts, estimating a 1% to 3% increase in net interest income per 100 basis points of rate cuts [36] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations of mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [44] Question: Buyback activity and M&A discussions - Management anticipates being more active in buyback activity given current pricing and is in discussions for potential M&A opportunities, ideally targeting banks in the billion-dollar asset range [50][27]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][18] - Non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [22] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized [6] - Loan balances increased by $225 million or 5.7% over the last 12 months, led by non-owner occupied CRE, one-to-four family residential, C&I, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7] Market Data and Key Metrics Changes - Strong growth was experienced in the east region, where much of the agricultural activity is concentrated, with the south region following closely [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth in the upcoming quarters [7][20] - The company is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and utilize government programs to mitigate risk [17] - There is a modest uptick in M&A discussions, with the company well-positioned to act when the right partner is ready [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, despite a larger provision for credit losses due to the evolving economic environment [3][23] - The company expects to remain liability-sensitive and a net beneficiary of rate cuts over the next four years [20] - Management noted that while charge-offs and non-performing loans have remained elevated, they are comparable to national averages for banks under $10 million [25] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000 [9] - Tangible book value increased by $5.09 or 13.3% over the last 12 months, attributed to earnings retention and improvement in the bank's unrealized loss in the investment portfolio [8][9] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels running similar to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability-sensitive and expects to be a net beneficiary of rate cuts, estimating a 1%-3% increase in net interest income per 100 basis points of rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations for mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [41][43] Question: Appetite for buybacks and M&A activity - Management anticipates being more active in buybacks given current pricing and is exploring M&A opportunities, ideally targeting banks in the billion-dollar asset range [48][49]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June quarter, but up $0.28 from the same quarter a year ago [5] - Net interest margin for the quarter was 3.57%, up from 3.47% in the linked quarter and from 3.34% in the year-ago quarter [7] - Non-interest income decreased by 9.7% or $707,000 compared to the linked quarter, but was offset by a 3.6% decrease in non-interest expense [6][25] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, with a year-over-year increase of $225 million or 5.7% [8] - The growth in loans was led by non-owner occupied commercial real estate, one to four family residential, commercial and industrial, and multifamily loans [8] - Deposit balances were relatively flat compared to the linked quarter but increased by $240 million or 5.9% over the last twelve months [9] Market Data and Key Metrics Changes - The company experienced strong growth in its East Region, particularly in agricultural activity, with the South Region also showing good growth [8] - The loan pipeline anticipated to fund in the next ninety days remains strong, totaling about $195 million as of September 30 [8] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [9] - The management is focusing on improving credit quality and has been proactive in working with borrowers to assess their positions and plan for restructuring where necessary [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the performance in the new fiscal year, citing good momentum on pre-provision net revenue [5] - The company is monitoring economic conditions closely and has increased reserves for watch list agricultural borrowers due to prolonged weakness in the agricultural segment [20] Other Important Information - Tangible book value increased to $43.35 per share, up $5.9 or 13.3% over the last twelve months, attributed to earnings retention and improvements in the bank's unrealized loss in the investment portfolio [10] - The company repurchased just over 8,000 shares at an average price of just under $55, totaling $447,000 [10] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, indicating a return to more historical delinquency levels [36][37] Question: Bank's rate sensitivity and margin expansion - The bank remains overall liability sensitive but anticipates a net benefit of 1% to 3% net interest income per 100 basis points of rate cuts [39] Question: Update on loan pipeline and growth expectations - The loan pipeline remains consistent, with expectations for mid-single-digit growth for the fiscal year, though seasonal slowdowns are anticipated [47] Question: Buyback activity and M&A discussions - Management anticipates being more aggressive in share buybacks given current pricing and has ongoing discussions regarding potential M&A opportunities [53]

Financial Data and Key Metrics Changes - The diluted EPS for the current quarter was $1.38, down $0.01 from the linked June 2025 quarter, but up $0.28 from the September quarter a year ago [4] - Net interest margin for the quarter was 3.57%, up from 3.47% for the fourth quarter of fiscal 2025 and from 3.34% in the year-ago quarter [5][6] - Reported non-interest income was down by 9.7% or $707,000 compared to the linked quarter, but was more than offset by lower non-interest expense of $925,000 or a 3.6% decrease quarter over quarter [5][21] Business Line Data and Key Metrics Changes - Gross loan balances increased by $91 million or 2.2% during the first quarter, which would be 8.8% annualized, with significant growth in non-owner occupied commercial real estate, one-to-four family residential, commercial & industrial, and multifamily loans [6][7] - Deposit balances were relatively flat compared to the linked quarter, but up $240 million or 5.9% over the last 12 months [7][8] - The allowance for credit losses at September 30, 2025, totaled $52.1 million, representing 1.24% of gross loans and 200% of non-performing loans [23] Market Data and Key Metrics Changes - The company experienced strong growth in its east region, particularly in agricultural activity, while the south region also showed good growth [7] - The loan pipeline anticipated to fund in the next 90 days remains strong, totaling about $195 million at September 30 [7] Company Strategy and Development Direction - The company is optimistic about achieving mid-single-digit loan growth in the fiscal year despite expectations of a slowdown in loan growth due to seasonal factors [7][20] - The management highlighted a modest uptick in M&A discussions, indicating a potential for attractive opportunities in the market [26][27] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in the new fiscal year, citing good momentum on pre-provision net revenue [3] - The company is focused on improving credit quality and has been proactive in working with borrowers to mitigate risks [13][17] Other Important Information - The company repurchased just over 8,000 shares at an average price of just under $55 for a total of $447,000, with plans for more buybacks given current pricing [9][48] - The company has seen a general increase in agricultural production line utilization due to increased input costs, impacting the agricultural loan portfolio [15][16] Q&A Session Summary Question: Outlook for provision expense and charge-offs - Management expects charge-off activity to drop from the levels of the last two quarters, with current delinquency levels trending back to historical ranges [32][33] Question: Bank's rate sensitivity and margin expansion - Management indicated that the bank remains liability-sensitive but expects to benefit from net interest income growth with potential rate cuts [34][35] Question: Update on loan pipeline and growth expectations - The company has a consistent pipeline and anticipates mid-single-digit growth for the fiscal year, with seasonal slowdowns expected [41][43] Question: Buyback activity and M&A discussions - Management anticipates being more active in buybacks due to current pricing and is exploring M&A opportunities, ideally targeting banks with assets around $1 billion [48][49]