Financial Performance - Preliminary net income for Q1 fiscal 2026 was $15.7 million, an increase of $3.2 million or 25.6% year-over-year[1] - Earnings per diluted common share were $1.38, up $0.28 or 25.5% compared to the same quarter last year[2] - Net interest income for the quarter ended September 30, 2025, was $42.4 million, an increase of $5.8 million or 15.7% year-over-year, attributed to an 8.1% rise in average interest-earning assets and a 23 basis point increase in net interest margin[18] - Noninterest income decreased to $6.6 million, down $601,000 or 8.4% year-over-year, primarily due to lower loan fees and net realized gains on loan sales[21] - Net income for Q3 2025 was $15,650,000, slightly down from $15,786,000 in Q2 2025[32] Asset and Loan Growth - Gross loan balances increased by $91.2 million or 2.2% during Q1 fiscal 2026[2] - Total assets reached $5.0 billion, reflecting an increase of $16.7 million or 0.3% from June 30, 2025[5] - Total assets increased to $5,036,332 thousand as of September 30, 2025, compared to $4,729,200 thousand a year earlier, reflecting a growth of 6.5%[31] - Loans receivable, gross rose to $4,191,743 thousand, up from $3,966,518 thousand year-over-year, representing an increase of 5.7%[31] Credit Quality - Provision for credit loss (PCL) was $4.5 million, an increase of $2.3 million from the prior year[2] - Nonperforming loans (NPLs) were $26.0 million, or 0.62% of gross loans, up from $23.0 million or 0.56% at June 30, 2025[11] - The allowance for credit losses stood at $52,081 thousand, with a coverage ratio of 200.07% for nonperforming loans as of September 30, 2025[31] - Nonperforming assets totaled $27,082 thousand, which is 0.54% of total assets, compared to 0.26% a year ago, indicating a deterioration in asset quality[31] - Total nonperforming loans increased to $26,031 thousand, up from $8,206 thousand a year earlier, indicating a significant rise in credit risk[31] Dividends and Stockholder Equity - The company declared a quarterly cash dividend of $0.25 per common share, marking the 126th consecutive quarterly dividend[3] - Stockholders' equity increased to $560.2 million at September 30, 2025, up $15.5 million or 2.9% from June 30, 2025, driven by retained earnings and a decrease in accumulated other comprehensive losses[16] - Total stockholders' equity reached $560,221 thousand, an increase from $505,629 thousand year-over-year, marking a growth of 10.8%[31] - Book value per common share increased to $49.83, up from $45.06 a year earlier, reflecting a growth of 6.1%[31] Efficiency and Cost Management - Noninterest expense for the quarter was $25.1 million, a decrease of $790,000 or 3.1% compared to the prior year, mainly due to lower compensation and benefits[22] - The efficiency ratio improved to 51.1% for the quarter, compared to 59.0% in the same period last year, driven by increased net interest income and a modest decline in noninterest expenses[23] - Efficiency ratio improved to 51.1% in Q3 2025 from 54.6% in Q2 2025, indicating better cost management[33] Interest Income and Margin - Net interest margin increased to 3.57%, up from 3.34% a year ago, with net interest income rising by $5.8 million or 15.7% year-over-year[2] - Total interest income for Q3 2025 reached $73,030,000, an increase of 3.3% from $70,638,000 in Q2 2025[32] - Net interest income for Q3 2025 was $42,418,000, up 5.2% from $40,333,000 in Q2 2025[32] - The company recorded $876,000 in net interest income from loan discount accretion and liability premium amortization related to previous acquisitions, contributing seven basis points to net interest margin[19] Deposits and Cash Management - Total deposits were $4.3 billion as of September 30, 2025, a decrease of $878,000 compared to June 30, 2025, primarily due to declines in certificates of deposit and NOW accounts[15] - Brokered deposits totaled $220.5 million at September 30, 2025, a decrease of $14.6 million from June 30, 2025, with short-term brokered money market accounts partially replacing outflows[15] - Cash equivalents and time deposits decreased by $68.7 million or 35.6% compared to June 30, 2025[6] Taxation - The income tax provision increased by 12.2% to $3.8 million, with an effective tax rate of 19.5%, down from 21.3% in the prior year[24]

Core Insights - Southern Missouri Bancorp, Inc. reported preliminary net income of $15.7 million for Q1 fiscal 2026, a 25.6% increase from the previous year, driven by higher net interest income and lower non-interest expenses [2][3][18] - The company declared a quarterly cash dividend of $0.25, marking the 126th consecutive quarterly dividend [4] - The company will host a conference call on October 23, 2025, to discuss the financial results [5] Financial Performance - Earnings per diluted share increased to $1.38, up $0.28 or 25.5% year-over-year [5][18] - Annualized return on average assets (ROA) was 1.24%, and return on average common equity (ROE) was 11.3%, compared to 1.07% and 9.9% respectively in the same quarter last year [5][18] - Net interest margin improved to 3.57%, up from 3.34% a year ago [5][18] Balance Sheet Highlights - Total assets reached $5.0 billion, reflecting a 0.3% increase from the previous quarter [7] - Gross loan balances increased by $91.2 million or 2.2% during the quarter, and by $225.2 million or 5.7% year-over-year [9] - Deposit balances decreased slightly by $878,000 during the quarter but increased by $240.3 million or 5.9% over the last twelve months [15] Loan and Credit Quality - Provision for credit losses (PCL) was $4.5 million, an increase of $2.3 million from the previous year [20][13] - Nonperforming loans (NPLs) rose to $26.0 million, or 0.62% of gross loans, compared to $23.0 million or 0.56% in the prior quarter [12][33] - The allowance for credit losses (ACL) was $52.1 million, representing 1.24% of gross loans [13][33] Non-Interest Income and Expenses - Non-interest income decreased by $601,000 or 8.4% year-over-year, primarily due to lower loan fees and net realized gains on loan sales [21] - Non-interest expenses decreased by $790,000 or 3.1% compared to the same period last year, driven by lower compensation and benefits [22] - The efficiency ratio improved to 51.1%, down from 59.0% in the same quarter last year [23] Tax and Equity - The income tax provision increased by 12.2% to $3.8 million, with an effective tax rate of 19.5% [24] - Stockholders' equity rose to $560.2 million, a 2.9% increase from the previous quarter [17]

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, which can come from various sources including dividends [1][2] Company Overview - Southern Missouri Bancorp (SMBC) is a bank holding company in the Finance sector, with shares experiencing a price change of -16.59% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.09%, which is lower than the Financial - Savings and Loan industry's yield of 2.84% and the S&P 500's yield of 1.52% [3] Dividend Performance - SMBC's current annualized dividend of $1.00 represents an 8.7% increase from the previous year, with an average annual increase of 8.50% over the last five years [4] - The company's current payout ratio is 18%, indicating that it paid out 18% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, SMBC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.61 per share, reflecting an expected increase of 8.30% from the previous year [5] Investment Considerations - SMBC is considered a compelling investment opportunity due to its strong dividend profile, despite the challenges faced by high-yielding stocks during periods of rising interest rates [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]

Core Insights - Jefferies and SMBC Group have signed a memorandum to enhance their strategic capital and business alliance, focusing on a joint venture in Japan to consolidate their wholesale Japanese equities business [1][9] Group 1: Joint Venture Details - The joint venture, named SMBC Nikko Jefferies Securities, will encompass equity capital markets (ECM), equity sales and trading, and equity research globally, with SMBC Nikko holding the economic and voting majority [2] - SMBC Group plans to increase its economic ownership stake in Jefferies to up to 20% on a fully-diluted basis while keeping voting interests under 5% [3] Group 2: Growth Drivers for Jefferies - The integration of SMBC Nikko's domestic operations with Jefferies' overseas activities will enhance issuer coverage, order flow from global investors, and research capabilities, allowing Jefferies to underwrite Japanese ECM deals starting January 2027 [4] - The $2.5 billion credit facility will enable Jefferies to strengthen its exposure in pre-IPO financing, leveraged lending in EMEA, and structured finance, which are areas with high margin potential [5] Group 3: Financial Expectations - SMBC Group anticipates that by the fifth year of the alliance, profit contributions from the joint venture will reach approximately JPY 50 billion, with JPY 10 billion from the Japanese equities business alone, indicating significant incremental revenues for Jefferies [7] Group 4: Strategic Implications - The partnership offers Jefferies the potential for accelerated growth in Asia through expanded market share, new revenue streams, and more stable capital backing, which could lead to outperforming peers in Japanese ECM and related markets [11]

Core Viewpoint - Jefferies Financial Group and Sumitomo Mitsui Financial Group are significantly expanding their Global Strategic Alliance, which was initially established in 2021 to enhance collaboration in corporate and investment banking [1]. Group 1: Companies Involved - Jefferies Financial Group, Inc. (NYSE: JEF) is a key player in this expanded alliance [1]. - Sumitomo Mitsui Financial Group, Inc. (NYSE: SMFG) is also a major participant in the alliance, along with its subsidiaries, Sumitomo Mitsui Banking Corporation and SMBC Nikko Securities Inc. [1]. Group 2: Strategic Alliance Details - The initial Strategic Alliance was formed in 2021, focusing on collaboration in corporate and investment banking [1]. - The expansion of this alliance indicates a commitment to enhancing services and capabilities in the financial sector [1].

Market Position and Operations - The Bank's market share in Missouri is approximately 1.36%, competing for around $252.2 billion in deposits[32] - The Bank operates 62 full-service branch offices and two loan production offices as of June 30, 2025[27] - The Bank's east region has a total population of approximately 245,000, while the south region has around 433,000[30] - The Bank's northwest region includes 15 facilities with a total population of approximately 1.9 million[30] Loan Portfolio and Lending Activities - As of June 30, 2025, the total loan portfolio amounted to $4,100,768 thousand, representing an increase from $3,850,035 thousand in 2024[41] - Mortgage loans accounted for 82.09% of the total loan portfolio in 2025, up from 83.23% in 2024[41] - The amount of one- to four-family residential mortgage loans reached $992,445 thousand, a 7.25% increase from $925,397 thousand in 2024[41] - Commercial real estate loans decreased to $888,317 thousand, representing 21.94% of the total loan portfolio in 2025, down from 23.70% in 2024[41] - The total amount of other loans, including commercial and industrial loans, was $776,876 thousand, which is 19.19% of the total loan portfolio in 2025[41] - The Bank's lending activities include residential, commercial, and agricultural loans, with oversight by senior lending officers[36][37] - The Senior Loan Committee can approve lending relationships up to $10.0 million[38] Credit Quality and Allowance for Losses - The allowance for credit losses was $51,629 thousand, which is 1.28% of net loans receivable in 2025, compared to 1.38% in 2024[41] - Nonperforming loans totaled $23.04 million as of June 30, 2025, representing 0.57% of net loans, an increase from 0.18% in 2024[96] - The bank's total nonperforming assets reached $23.7 million as of June 30, 2025, compared to $10.6 million in 2024[96] - The total charge-offs for the year ended June 30, 2025, were $6.983 million, significantly higher than $2.055 million in the previous year[108] - The allowance for credit losses (ACL) at June 30, 2025, was $51.6 million, which is 218% of nonperforming assets, down from $52.5 million or 497% at June 30, 2024[103] Deposits and Funding - The Bank's deposits totaled $4.28 billion as of June 30, 2025, with 11.87% in non-interest bearing accounts and 26.45% in NOW accounts[131] - As of June 30, 2025, total deposits reached $4.28 billion, an increase of $338.3 million from the previous year[140] - The bank's net increase in deposits before interest credited was $222.5 million for the year ending June 30, 2025, compared to $115.8 million in 2024[140] - Certificates in excess of $100,000 totaled $1.2 billion as of June 30, 2025, up from $887.9 million in 2024[138] - The bank's savings accounts increased by $144.0 million to $661.1 million, representing a 15.44% share of total deposits[137] Capital Adequacy and Regulatory Compliance - The Bank's CET1 capital ratio must be at least 4.5% of risk-weighted assets to be considered adequately capitalized[179] - The minimum Tier 1 capital ratio required is 6.0% of risk-weighted assets[179] - The total capital ratio must be at least 8.0% of risk-weighted assets[179] - As of June 30, 2025, the Bank was categorized as "well capitalized" under prompt corrective action standards, exceeding the minimum capital ratios[182] - The Bank's capital adequacy is subject to regulatory capital reforms required by the Dodd-Frank Act and Basel III requirements[178] Investment Portfolio - The company's investment portfolio included $460.8 million in available-for-sale (AFS) securities as of June 30, 2025[113] - The debt and other securities portfolio totaled $101.4 million, or 2.0% of total assets, down from $123.0 million, or 2.7% of total assets at June 30, 2024[115] - The total debt and other securities portfolio was valued at $101.35 million as of June 30, 2025, with a weighted average yield of 5.00%[120] Employee and Operational Metrics - The Bank had a total of 739 employees as of June 30, 2025, comprising 696 full-time and 43 part-time employees[155] - The Bank's compliance with FHLB stock requirements was maintained with $9.4 million in stock as of June 30, 2025[168] Miscellaneous - The Bank is subject to a Missouri bank franchise tax imposed on taxable income at a rate of 4.48%[205] - The Company is subject to comprehensive regulation by the FRB under the Bank Holding Company Act[198] - The Company continues to focus on customer retention and satisfaction while offering new products to increase less rate-sensitive deposit accounts[431]

Financial Data and Key Metrics Changes - Earnings for Q4 2025 were $1.39 diluted, unchanged from Q3 but up $0.20 or about 17% year over year [6] - For the full fiscal year 2025, earnings increased to $5.18 from $4.42 in fiscal 2024, driven by stronger interest income and a 7% growth in earning assets [7] - Tangible book value per share increased by $5.19 or just above 14% over the last twelve months to $41.87 [7] - Net interest margin for the quarter was 3.46%, up from 3.39% in the previous quarter [7][23] Business Line Data and Key Metrics Changes - Gross loan balances increased by $76 million or 7.6% annualized during the quarter, and by $250 million or 6.5% compared to the previous year [8] - Noninterest income increased by 9.2% compared to the linked quarter, driven by an additional card network bonus [25] - Noninterest expense was up 2.3% compared to the linked quarter, primarily due to consulting expenses related to a new contract [27] Market Data and Key Metrics Changes - Deposit balances increased by $20 million or about 2% annualized compared to the linked quarter [8] - The agricultural sector is facing rising input costs and expenses, with many farmers drawing more heavily on credit lines [20][18] Company Strategy and Development Direction - The company plans to change its reported quarterly net interest margin calculation to reduce volatility [7] - There is optimism about achieving mid-single-digit loan growth for the upcoming year despite potential prepayment activity [22] - The company is exploring M&A opportunities, with a solid capital base and proven financial performance [31] Management's Comments on Operating Environment and Future Outlook - Management noted that credit quality has deteriorated somewhat but remains relatively strong [9] - There is a cautious outlook regarding the agricultural sector, with many farmers facing difficult margins and potential operational wind-downs [18][20] - The company is focused on driving continued growth and sustaining long-term value creation for shareholders [29] Other Important Information - The company recorded a provision for credit losses of $2.5 million, up from $932,000 in the previous quarter [29] - The allowance for credit losses totaled $51.6 million, representing 1.26% of gross loans [28] Q&A Session Summary Question: Loan growth momentum - Loan growth was steady throughout the quarter, with larger credits indicating plans to pay off in the near term, potentially increasing prepayment activity [35] Question: Margin expectations - The company is neutral to rate movements currently but expects natural net interest margin expansion from loan origination activity [37] Question: Funding growth expectations - The company does not expect growth to be heavily weighted towards CDs this year, given a strong funding position [45] Question: M&A environment - There has been an increase in M&A discussions, with optimism about potential opportunities [48]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section highlights the company's strong financial performance, with increased net income and improved profitability for Q4 and FY2025 [Preliminary Results (Q4 & FY2025)](index=1&type=section&id=Preliminary%20Results%20%28Q4%20%26%20FY2025%29) Southern Missouri Bancorp reported a significant increase in net income for both Q4 and the full fiscal year 2025, driven primarily by higher net interest income and lower income tax provision, despite increases in provision for credit loss and noninterest expense Net Income and Diluted EPS (Q4 & FY2025) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | :--------- | | Net Income | $15.8 million | $13.5 million | $2.3 million | 16.7% | | Diluted EPS | $1.39 | $1.19 | $0.20 | - | | Metric | FY2025 | FY2024 | Change ($) | Change (%) | | :-------------------------------- | :------- | :------- | :--------- | :--------- | | Net Income | $58.6 million | $50.2 million | $8.4 million | 16.7% | | Diluted EPS | $5.18 | $4.42 | $0.76 | - | - The increase in **net income** was primarily due to higher **net interest income** and lower **provision for income taxes**, partially offset by higher **provision for credit loss (PCL)**, **noninterest expense**, and lower **noninterest income**[1](index=1&type=chunk) [Key Performance Indicators (Q4 FY2025)](index=1&type=section&id=Key%20Performance%20Indicators%20%28Q4%20FY2025%29) The company demonstrated strong performance in Q4 FY2025 with improved profitability ratios and net interest margin, alongside significant loan growth. Noninterest income saw a decrease year-over-year due to accounting changes for tax credits but increased linked-quarter due to card network fees Key Performance Indicators (Q4 FY2025) | Metric | Q4 FY2025 | Q4 FY2024 | QoQ (Q3 FY2025) | YoY Change | QoQ Change | | :-------------------------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | | Diluted EPS | $1.39 | $1.19 | $1.39 | Up $0.20 (16.8%) | Unchanged | | Annualized ROA | 1.27% | 1.17% | 1.27% | Up 0.10% | Unchanged | | Annualized ROE | 11.8% | 11.2% | 12.1% | Up 0.6% | Down 0.3% | | Net Interest Margin | 3.46% | 3.25% | 3.39% | Up 0.21% | Up 0.07% | | Net Interest Income | $40.3 million | $35.1 million | $39.5 million | Up $5.2 million (14.9%) | Up $854,000 (2.2%) | | Noninterest Income | $7.3 million | $7.8 million | $6.7 million | Down 6.3% | Up 9.2% | | Gross Loan Balances Increase (Q4) | $76.2 million | - | - | - | - | | Gross Loan Balances Increase (FY2025) | $249.9 million | - | - | 6.5% | - | - The decrease in **noninterest income** compared to the prior year was primarily due to a change in accounting for **tax credit benefits** (ASU 2023-02), which are now recognized as a direct reduction from the **provision for income taxes**, and a negative adjustment to **mortgage servicing rights**[2](index=2&type=chunk)[22](index=22&type=chunk) - The increase in **non-interest income** compared to the linked quarter was largely due to additional **card network fees** based on volume incentives totaling **$537,000**[2](index=2&type=chunk) [Dividend Declaration](index=3&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of $0.25 per common share, marking the 125th consecutive quarterly dividend and an 8.7% increase from the previous payment Quarterly Dividend Details | Metric | Value | | :-------------------- | :---- | | Quarterly Dividend | $0.25 per share | | Increase from Previous | $0.02 per share (8.7%) | | Payable Date | August 29, 2025 | | Record Date | August 15, 2025 | - This is the **125th consecutive quarterly dividend** since the Company's inception, reflecting confidence in future prospects and commitment to stockholder value[3](index=3&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Southern Missouri Bancorp will host a conference call on July 24, 2025, to discuss the preliminary results, with details provided for live access and telephone playback - A conference call is scheduled for **Thursday, July 24, 2025, at 9:30 a.m. Central Time** to review the press release information[4](index=4&type=chunk) - Dial-in details: **1-833-470-1428 (US)** with participant access code **617584**. Playback available until **July 29, 2025**, by dialing **1-866-813-9403** with passcode **612450**[4](index=4&type=chunk) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) This section analyzes the balance sheet, detailing asset, loan, and deposit growth, credit quality, and stockholders' equity changes [Asset Growth](index=3&type=section&id=Asset%20Growth) The Company experienced significant balance sheet growth in fiscal 2025, with total assets increasing by 9.0% to $5.0 billion, primarily driven by increases in net loans receivable, cash equivalents, and available-for-sale (AFS) securities Asset Growth (June 30, 2025 vs. June 30, 2024) | Asset Category | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Assets | $5.0 billion | $4.6 billion | $415.3 million | 9.0% | | Cash Equivalents & Time Deposits | $193.1 million | $61.4 million | $131.7 million | 214.5% | | AFS Securities | $460.8 million | $427.9 million | $32.9 million | 7.7% | - **Cash equivalents** decreased by **$34.0 million (15.0%)** linked-quarter (compared to March 31, 2025), primarily used to fund loan growth, partially offset by deposit growth and earnings retention[6](index=6&type=chunk) [Loan Portfolio](index=3&type=section&id=Loan%20Portfolio) Net loans receivable grew by 6.6% to $4.0 billion in FY2025, with growth across various loan types, particularly residential real estate and commercial and industrial loans. The bank maintains a significant concentration in non-owner occupied commercial real estate Loans, Net of ACL (June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Loans, net of ACL | $4.0 billion | $3.8 billion | $250.8 million | 6.6% | | Gross Loans Increase (FY2025) | $249.9 million | - | - | - | | ACL attributable to loans | $51.6 million | $52.5 million | -$887,000 | -1.7% | - **Loan growth** was primarily in residential real estate, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws, partially offset by payoffs in non-owner occupied commercial real estate and consumer loans[7](index=7&type=chunk)[9](index=9&type=chunk) Summary Loan Data (in thousands) | Loan Type | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | 1-4 residential real estate | $991,553 | $925,397 | | Non-owner occupied commercial real estate | $888,317 | $899,770 | | Owner occupied commercial real estate | $442,984 | $427,476 | | Multi-family real estate | $422,758 | $384,564 | | Construction and land development | $332,405 | $290,541 | | Agriculture real estate | $244,983 | $232,520 | | Commercial and industrial | $510,259 | $450,147 | | Agriculture production | $206,128 | $175,968 | | Consumer | $55,387 | $59,671 | | Total Gross Loans | $4,099,698 | $3,849,803 | - Loans anticipated to fund in the next 90 days totaled **$224.1 million** at June 30, 2025, up from **$157.1 million** at June 30, 2024[9](index=9&type=chunk) [Loan Composition](index=4&type=section&id=Loan%20Composition) - Concentration in **non-owner occupied commercial real estate loans** was **301.9% of Tier 1 capital and ACL** at June 30, 2025, down from **317.5%** a year prior, representing **40.1% of total loans**[10](index=10&type=chunk) - Common collateral types within non-owner occupied commercial real estate include multi-family residential, hospitality, care facilities, strip centers, retail stand-alone, and storage units[10](index=10&type=chunk) - Non-owner occupied office property types comprised **33 loans** totaling **$24.3 million (0.59% of total loans)** at June 30, 2025, with none adversely classified[10](index=10&type=chunk) [Nonperforming Assets & Credit Quality](index=4&type=section&id=Nonperforming%20Assets%20%26%20Credit%20Quality) Nonperforming Assets (June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------- | | Nonperforming Loans (NPLs) | $23.0 million | $6.7 million | $16.3 million | 243.3% | | NPLs as % of Gross Loans | 0.56% | 0.17% | - | - | | Nonperforming Assets (NPAs) | $23.7 million | $10.6 million | $13.1 million | 123.6% | | NPAs as % of Total Assets | 0.47% | 0.23% | - | - | - The year-over-year increase in **NPLs** was primarily due to several commercial relationships added in Q3 and Q4 FY2025, including a **$5.7 million construction loan** for a senior living facility and three commercial loans totaling **$6.2 million** (after charge-offs) secured by vacant special-purpose commercial properties[11](index=11&type=chunk)[12](index=12&type=chunk) - Compared to March 31, 2025, **NPAs** declined by **$104,000**[11](index=11&type=chunk) [Allowance for Credit Losses](index=6&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for Credit Losses (June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------------- | :------------ | :------------ | :--------- | :--------- | | ACL | $51.6 million | $52.5 million | -$0.9 million | -1.7% | | ACL as % of Gross Loans | 1.26% | 1.36% | - | - | | ACL as % of Nonperforming Loans | 224% | 786% | - | - | | Annualized Net Charge-offs (Q4) | 0.53% | 0.06% | - | - | | Net Charge-offs (Q4) | $5.3 million | - | - | - | | Annualized Net Charge-offs (FY2025) | 0.17% | 0.05% | - | - | - The decrease in **ACL** was primarily due to net charge-offs (including a **$3.8 million special-purpose CRE charge-off** and a **$742,000 commercial and industrial charge-off**) and a decline in certain qualitative adjustments, partially offset by higher required reserves for pooled loans reflecting a deteriorating economic outlook and increased modeled loss drivers[13](index=13&type=chunk) - Management believes the **ACL** was adequate as of June 30, 2025, despite significant uncertainty as borrowers adjust to relatively high market interest rates[13](index=13&type=chunk) [Liabilities](index=6&type=section&id=Liabilities) Total liabilities increased by 8.7% in fiscal 2025, primarily driven by growth in total deposits, which saw increases in certificates of deposit and savings accounts due to the higher rate environment Total Liabilities (June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Liabilities | $4.5 billion | $4.1 billion | $359.3 million | 8.7% | | Total Deposits | $4.3 billion | $3.9 billion | $338.3 million | 8.6% | | FHLB Advances | $104.1 million | $102.1 million | $2.0 million | 2.0% | - Growth in liabilities also reflected increases in other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase[14](index=14&type=chunk) [Deposit Growth & Composition](index=6&type=section&id=Deposit%20Growth%20%26%20Composition) - Deposit portfolio increases were seen in **certificates of deposit** and **savings accounts**, as customers moved balances into special rate time deposits and high yield savings accounts[15](index=15&type=chunk) Summary Deposit Data (in thousands) | Deposit Type | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Non-interest bearing deposits | $508,110 | $514,107 | | NOW accounts | $1,132,298 | $1,239,663 | | MMDAs - non-brokered | $329,837 | $334,774 | | Brokered MMDAs | $1,414 | $2,025 | | Savings accounts | $661,115 | $517,084 | | Certificates of deposit - non-brokered | $1,414,945 | $1,163,650 | | Brokered certificates of deposit | $233,649 | $171,756 | | Total Deposits | $4,281,368 | $3,943,059 | | Public unit deposits | $550,836 | $594,589 | | Brokered deposits (total) | $233.6 million | $171.8 million | | Average Loan-to-Deposit Ratio (Q4) | 94.5% | 96.3% | | Period End Loan-to-Deposit Ratio | 97.6% | 95.8% | - **Public unit balances** decreased by **$43.8 million** due to losing a bid to retain a larger local public unit depositor[15](index=15&type=chunk) [Stockholders' Equity](index=7&type=section&id=Stockholders%27%20Equity) Stockholders' equity increased by 11.4% to $544.7 million, primarily due to retained earnings and a reduction in accumulated other comprehensive losses (AOCL) as investment market values appreciated Stockholders' Equity (June 30, 2025 vs. June 30, 2024) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Stockholders' Equity | $544.7 million | $488.7 million | $55.9 million | 11.4% | | AOCL | $11.4 million | $17.5 million | -$6.1 million | -34.9% | | Tangible Book Value per Share | $41.87 | $36.68 | $5.19 | 14.1% | - The reduction in **AOCL** was due to the appreciation of the Company's investments as market interest rates decreased[17](index=17&type=chunk) - The Company does not hold any securities classified as held-to-maturity[17](index=17&type=chunk) [Income Statement Analysis (Quarterly)](index=7&type=section&id=Income%20Statement%20Analysis%20%28Quarterly%29) This section analyzes quarterly income statement performance, covering net interest income, credit loss provision, noninterest items, and income taxes [Net Interest Income & Margin](index=7&type=section&id=Net%20Interest%20Income%20%26%20Margin) Net interest income increased by 14.9% year-over-year, driven by a 21 basis point expansion in net interest margin, primarily due to a decrease in the cost of interest-bearing liabilities Net Interest Income and Margin (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Net Interest Income | $40.3 million | $35.1 million | $5.2 million | 14.9% | | Net Interest Margin | 3.46% | 3.25% | Up 21 bps | - | | Cost of Interest-Bearing Liabilities | - | - | Down 20 bps | - | | Yield on Interest-Earning Assets | - | - | Up 7 bps | - | | Average Interest-Earning Assets Growth | 7.9% | - | - | - | - Acquisition-related loan discount accretion and deposit premium amortization contributed **5 basis points** to net interest margin in Q4 FY2025, down from **10 basis points** in the prior year and **13 basis points** in the linked quarter[19](index=19&type=chunk) [Provision for Credit Losses](index=7&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses significantly increased year-over-year, primarily to cover higher net charge-offs and support loan growth, as well as increased unfunded balances and expected funding rates Provision for Credit Losses (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Provision for Credit Losses | $2.5 million | $0.9 million | $1.6 million | 177.8% | | Provision for ACL (loans) | $2.0 million | - | - | - | | Provision for Off-Balance Sheet Exposures | $0.475 million | - | - | - | - The increase was primarily attributable to providing for **net charge-offs** and to support **loan growth**, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit[20](index=20&type=chunk)[21](index=21&type=chunk) [Noninterest Income](index=9&type=section&id=Noninterest%20Income) Noninterest income decreased year-over-year due to accounting changes for tax credits and negative adjustments to mortgage servicing rights, partially offset by increases in other loan fees and deposit account charges Noninterest Income (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Noninterest Income | $7.3 million | $7.8 million | -$0.487 million | -6.3% | | Tax Credit Benefit (Q4 FY2024) | - | $0.675 million | - | - | | Mortgage Servicing Rights Adjustment (Q4 FY2025) | -$0.108 million | - | - | - | | Mortgage Servicing Rights Benefit (Q4 FY2024) | - | $0.131 million | - | - | - The decrease was primarily due to the adoption of **ASU 2023-02**, which now recognizes **tax credit benefits** as a direct reduction to income tax provision instead of noninterest income, and a negative fair value adjustment to **mortgage servicing rights**[22](index=22&type=chunk) - These decreases were partially offset by higher other loan fees from increased originations and increased deposit account charges due to higher non-sufficient fund activity and maintenance fees[22](index=22&type=chunk) [Noninterest Expense & Efficiency](index=9&type=section&id=Noninterest%20Expense%20%26%20Efficiency) Noninterest expense increased year-over-year due to higher legal and professional fees, data processing expense, and other noninterest expenses, but the efficiency ratio improved due to faster net interest income growth Noninterest Expense and Efficiency Ratio (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Total Noninterest Expense | $26.0 million | $25.0 million | $0.974 million | 3.9% | | Efficiency Ratio | 54.6% | 58.3% | Down 3.7% | - | - Key drivers of expense increase included elevated **legal and professional fees ($425,000)** for vendor contract negotiation, **data processing expense** (third-party software), and other noninterest expense (card fraud losses, deposit product expenses)[23](index=23&type=chunk) - These increases were partially offset by decreases in intangible amortization expense (due to full amortization of an older merger's core deposit intangible) and reduced telecommunication expenses[23](index=23&type=chunk) [Income Taxes](index=9&type=section&id=Income%20Taxes) The income tax provision remained flat year-over-year, but the effective tax rate decreased significantly due to a tax benefit from recognizing tax credits under the proportional amortization method (ASC 2023-02) Income Tax Provision and Effective Tax Rate (Q4 FY2025 vs. Q4 FY2024) | Metric | Q4 FY2025 | Q4 FY2024 | Change ($) | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | | Income Tax Provision | $3.4 million | $3.4 million | $0 | 0% | | Effective Tax Rate | 17.5% | 20.2% | Down 2.7% | - | | Income Tax Benefit from Tax Credits | $0.701 million | - | - | - | - The decrease in the **effective tax rate** was primarily attributable to a **$701,000 income tax benefit** from the recognition of tax credits utilizing the proportional amortization method under **ASC 2023-02**[25](index=25&type=chunk) - In the prior fiscal year, similar benefits were recognized through noninterest income[25](index=25&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section outlines various known and unknown risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including economic conditions, merger integration, interest rate fluctuations, regulatory changes, and technological impacts - Forward-looking statements are subject to risks and uncertainties, including potential adverse impacts to economic conditions, challenges in realizing merger benefits, fluctuations in interest rates, and governmental policies[27](index=27&type=chunk) - Other risks include changes in loan delinquencies, ability to access funding, acceptance of new products, real estate value fluctuations, legislative/regulatory changes, accounting principle changes, and results of regulatory examinations[27](index=27&type=chunk) - The Company undertakes no obligation to publicly update or revise any forward-looking statements[27](index=27&type=chunk) [Unaudited Condensed Consolidated Financial Information](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Information) This section provides unaudited condensed consolidated financial data, including balance sheets, nonperforming assets, income statements, and key ratios [Summary Balance Sheet Data](index=11&type=section&id=Summary%20Balance%20Sheet%20Data) This section provides a detailed breakdown of the Company's balance sheet at various quarter-ends, highlighting asset and liability composition, equity, and key per-share metrics Summary Balance Sheet Data (dollars in thousands, except per share data) | Item | June 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Cash equivalents and time deposits | $193,105 | $227,136 | $146,078 | $75,591 | $61,395 | | AFS securities | $460,844 | $462,930 | $468,060 | $420,209 | $427,903 | | Loans receivable, gross | $4,099,698 | $4,023,509 | $4,026,979 | $3,966,518 | $3,849,803 | | Allowance for credit losses | $51,629 | $54,940 | $54,740 | $54,437 | $52,516 | | Loans receivable, net | $4,048,069 | $3,968,569 | $3,972,239 | $3,912,081 | $3,797,287 | | Total assets | $5,019,607 | $4,976,496 | $4,907,674 | $4,729,200 | $4,604,316 | | Interest-bearing deposits | $3,773,258 | $3,747,964 | $3,696,428 | $3,536,933 | $3,428,952 | | Noninterest-bearing deposits | $508,110 | $513,418 | $514,199 | $503,209 | $514,107 | | Total liabilities | $4,474,915 | $4,447,706 | $4,395,303 | $4,223,571 | $4,115,568 | | Total stockholders' equity | $544,692 | $528,790 | $512,371 | $505,629 | $488,748 | | Equity to assets ratio | 10.85% | 10.63% | 10.44% | 10.69% | 10.61% | | Book value per common share | $48.42 | $47.01 | $45.62 | $45.06 | $43.56 | | Tangible book value per common share | $41.87 | $40.37 | $38.91 | $38.26 | $36.68 | [Nonperforming Asset Data](index=11&type=section&id=Nonperforming%20Asset%20Data) This table provides a detailed view of nonperforming assets, including nonaccrual loans, other real estate owned, and their ratios to total assets and gross loans, showing a significant increase in nonperforming loans year-over-year Nonperforming Asset Data (dollars in thousands) | Item | June 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Nonaccrual loans | $23,040 | $21,970 | $8,309 | $8,206 | $6,680 | | Total nonperforming loans | $23,040 | $21,970 | $8,309 | $8,206 | $6,680 | | Other real estate owned (OREO) | $625 | $1,775 | $2,423 | $3,842 | $3,865 | | Total nonperforming assets | $23,697 | $23,801 | $10,769 | $12,069 | $10,568 | | Total nonperforming assets to total assets | 0.47% | 0.48% | 0.22% | 0.26% | 0.23% | | Total nonperforming loans to gross loans | 0.56% | 0.55% | 0.21% | 0.21% | 0.17% | | Allowance for credit losses to nonperforming loans | 224.08% | 250.07% | 658.80% | 663.38% | 786.17% | | Allowance for credit losses to gross loans | 1.26% | 1.37% | 1.36% | 1.37% | 1.36% | | Performing modifications to borrowers experiencing financial difficulty | $26,642 | $23,304 | $24,083 | $24,340 | $24,602 | [Quarterly Summary Income Statement Data](index=12&type=section&id=Quarterly%20Summary%20Income%20Statement%20Data) This table presents a detailed quarterly breakdown of the Company's income statement, including interest income and expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income Quarterly Summary Income Statement Data (dollars in thousands, except per share data) | Item | June 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Total interest income | $70,638 | $69,925 | $69,424 | $67,378 | $64,667 | | Total interest expense | $30,305 | $30,446 | $31,281 | $30,717 | $29,572 | | Net interest income | $40,333 | $39,479 | $38,143 | $36,661 | $35,095 | | Provision for credit losses | $2,500 | $932 | $932 | $2,159 | $900 | | Total noninterest income | $7,280 | $6,666 | $6,865 | $7,174 | $7,767 | | Total noninterest expense | $25,976 | $25,391 | $24,876 | $25,841 | $25,002 | | Net income before income taxes | $19,137 | $19,822 | $19,200 | $15,835 | $16,960 | | Income taxes | $3,351 | $4,139 | $4,547 | $3,377 | $3,430 | | Net income | $15,786 | $15,683 | $14,653 | $12,458 | $13,530 | | Diluted earnings per common share | $1.39 | $1.39 | $1.30 | $1.10 | $1.19 | | Dividends per common share | $0.23 | $0.23 | $0.23 | $0.23 | $0.21 | [Quarterly Average Balance Sheet Data & Key Ratios](index=13&type=section&id=Quarterly%20Average%20Balance%20Sheet%20Data%20%26%20Key%20Ratios) This section provides average balance sheet data for key interest-earning assets and interest-bearing liabilities, along with critical performance ratios such as return on average assets, return on average common stockholders' equity, net interest margin, net interest spread, and efficiency ratio Quarterly Average Balance Sheet Data (dollars in thousands) | Item | June 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Total interest-earning assets | $4,668,640 | $4,655,400 | $4,534,252 | $4,355,474 | $4,324,839 | | Total assets | $4,967,857 | $4,946,139 | $4,825,469 | $4,638,530 | $4,610,795 | | Total interest-bearing liabilities | $3,870,090 | $3,882,225 | $3,760,996 | $3,575,958 | $3,552,664 | | Total liabilities | $4,431,964 | $4,426,664 | $4,317,316 | $4,141,641 | $4,127,499 | | Total stockholders' equity | $535,893 | $519,475 | $508,153 | $496,889 | $483,296 | Key Ratios | Ratio | June 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | :------------ | | Return on average assets | 1.27% | 1.27% | 1.21% | 1.07% | 1.17% | | Return on average common stockholders' equity | 11.8% | 12.1% | 11.5% | 10.0% | 11.2% | | Net interest margin | 3.46% | 3.39% | 3.36% | 3.37% | 3.25% | | Net interest spread | 2.92% | 2.87% | 2.79% | 2.75% | 2.65% | | Efficiency ratio | 54.6% | 55.1% | 55.3% | 59.0% | 58.3% |

Core Viewpoint - Southern Missouri Bancorp, Inc. reported a preliminary net income of $15.8 million for Q4 fiscal 2025, marking a 16.7% increase year-over-year, driven by higher net interest income and lower tax provisions [1][2]. Financial Performance - Preliminary net income for fiscal year 2025 was $58.6 million, an increase of $8.4 million compared to fiscal 2024, with diluted earnings per share rising to $5.18 from $4.42 [1]. - Earnings per diluted common share for Q4 fiscal 2025 were $1.39, up $0.20 or 16.8% from the same quarter last year [3]. - The annualized return on average assets (ROA) was 1.27%, and the return on average common equity (ROE) was 11.8%, compared to 1.17% and 11.2% respectively in the same quarter last year [3]. Income and Expenses - Net interest income for Q4 fiscal 2025 was $40.3 million, a 14.9% increase from the previous year, attributed to a 7.9% rise in average interest-earning assets and a 21 basis point increase in net interest margin [16]. - Noninterest income decreased by 6.3% to $7.3 million, primarily due to lower loan servicing fees and changes in tax credit accounting [19]. - Noninterest expenses rose by 3.9% to $26.0 million, driven by increased legal fees and data processing expenses [20]. Balance Sheet Highlights - Total assets reached $5.0 billion, reflecting a 9.0% increase year-over-year, primarily due to growth in net loans and cash equivalents [6]. - Gross loan balances increased by $76.2 million in Q4 and by $249.9 million or 6.5% for the entire fiscal year [3][8]. - Deposit balances increased by $19.9 million in Q4 and by $338.3 million or 8.6% for the fiscal year [3][14]. Credit Quality - The provision for credit losses (PCL) was $2.5 million in Q4, up from $900,000 in the same period last year, driven by higher net charge-offs [18]. - Nonperforming loans (NPLs) increased to $23.0 million, or 0.56% of gross loans, compared to $6.7 million or 0.17% a year earlier [11]. - The allowance for credit losses (ACL) totaled $51.6 million, representing 1.26% of gross loans, down from 1.36% a year ago [12]. Dividends and Shareholder Returns - A quarterly cash dividend of $0.25 per share was declared, marking the 125th consecutive quarterly dividend, representing an 8.7% increase from the previous dividend [4][3]. - The tangible book value per share increased to $41.87, a 14.1% rise compared to the previous year [3].

Core Points - The American Camp Association (ACA) has launched a $500,000 grant initiative supported by the Sumitomo Mitsui Banking Corporation (SMBC) Global Foundation to fund nonprofit camps through the Camp-School Partnership Project [1][2] - The initiative aims to enhance camp capacity for high-quality programming in collaboration with schools and community partners, focusing on increasing access for youth in underserved communities [2][3] - For summer 2025, ACA will distribute $280,000 to eight organizations, selected from nearly 120 applications, to support programming for approximately 550 campers from lower socio-economic backgrounds [3][4] Grant Details - The grants will be awarded for one year, covering the summers of 2025 and 2026, with the next application window opening in fall 2025 [1][4] - Priority will be given to camps serving youth in specific states where SMBC employees are located, including New York, New Jersey, Arizona, California, Florida, North Carolina, and Texas [4][5] About ACA - The American Camp Association serves over 15,000 camps in the US, providing quality camp experiences for 26 million campers annually [6] - ACA is the only independent national accrediting body for organized camps, ensuring health, safety, and overall well-being of campers and staff [6] About SMBC Group - SMBC Group is a leading global financial institution with a history of 400 years, offering a wide range of financial services and operating in nearly 40 countries [9][10] - The group has a significant presence in the Americas, providing commercial and investment banking services to a diverse client base [10]