FOR IMMEDIATE RELEASE Contact: Stefan Chkautovich, CFO April 29, 2024 (573) 778-1800 SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR THIRD QUARTER OF FISCAL 2024; DECLARES QUARTERLY DIVIDEND OF $0.21 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, APRIL 30, AT 9:30AM CENTRAL Exhibit 99.1 Highlights for the third quarter of fiscal 2024: 1 ● Earnings per common share (diluted) were $0.99, up $0.77, or 350%, as compared to the same quarter a year ago, and down $0.08, or 7.5% from the second ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 OR Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-23406 Southern Missouri Bancorp, Inc. | (Exact name of registrant as specified in its charter) | | | --- | --- ...

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q2 2024 Earnings Conference Call January 30, 2024 10:30 AM ET Company Participants Stefan Chkautovich - Chief Financial Officer Matt Funke - President & Chief Administrative Officer Greg Steffens - Chairman & Chief Executive Officer Conference Call Participants Kelly Motta - KBW Andrew Liesch - Piper Sandler Operator Good morning, everyone, and welcome to the Southern Missouri Bancorp Earnings Call. All lines have been placed on mute during the presentation port ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-23406 Southern Missouri Bancorp, Inc. | (Exact name of registrant as specified in its charter) | | | --- | --- ...

PART I [Item 1. Description of Business](index=5&type=section&id=Item%201.%20Description%20of%20Business) Southern Missouri Bancorp, Inc. is a bank holding company with **$4.4 billion** in assets, primarily funding real estate loans through deposits, with growth driven by acquisitions - **Financial Highlights as of June 30, 2023** | Metric | Value (in billions) | | :--- | :--- | | Total Assets | $4.4 | | Total Deposits | $3.7 | | Stockholders' Equity | $0.446 | - The company's principal business is attracting retail deposits to invest in various loan types, including residential, commercial real estate, commercial business, and consumer loans[16](index=16&type=chunk) [Acquisitions](index=6&type=section&id=Acquisitions) Strategic acquisitions, notably the **January 2023 Citizens Bancshares Co. merger**, significantly expanded the company's market presence and asset base - **Key Recent Acquisitions (Amounts in Millions)** | Acquired Company | Completion Date | Assets at Closing | Goodwill Generated | | :--- | :--- | :--- | :--- | | Citizens Bancshares, Co. | Jan 20, 2023 | $985.7 | $23.5 | | Fortune Financial, Inc. | Feb 25, 2022 | $253.0 | $12.8 | | Cairo, IL Branch (First National Bank) | Dec 15, 2021 | N/A | $0.442 | - The primary strategic purpose for these acquisitions is to expand commercial banking activities into markets where the company's business model is expected to perform well and to gain long-term value from the acquired core deposit franchises[27](index=27&type=chunk) [Market Area and Competition](index=12&type=section&id=Market%20Area%20and%20Competition) The Bank operates **65 branches** across four states, facing strong competition for deposits and loans in diverse regional markets - The Bank's operations are geographically diversified across five regional markets, serving a mix of rural and metropolitan statistical areas (MSAs) like Kansas City, St Louis, and Springfield[33](index=33&type=chunk)[34](index=34&type=chunk) - The company faces intense competition, competing with dozens of other banking groups for billions in deposits in each of its five regions[38](index=38&type=chunk) [Lending Activities](index=14&type=section&id=Lending%20Activities) The Bank's **$3.6 billion** loan portfolio focuses on real estate, with nonperforming assets increasing to **$11.3 million** due to the Citizens merger - **Loan Portfolio Composition (June 30, 2023 vs 2022, Amounts in Thousands)** | Loan Type | 2023 Amount | 2023 Percent | 2022 Amount | 2022 Percent | | :--- | :--- | :--- | :--- | :--- | | **Mortgage Loans** | | | | | | Residential real estate | $1,133,417 | 31.74% | $904,160 | 33.66% | | Commercial real estate | $1,562,379 | 43.75% | $1,146,673 | 42.69% | | Construction | $550,052 | 15.40% | $258,072 | 9.61% | | **Other Loans** | | | | | | Commercial business | $599,030 | 16.77% | $441,598 | 16.44% | | Other (Consumer, etc.) | $133,515 | 3.75% | $92,996 | 3.46% | | **Net Loans Receivable** | **$3,571,078** | **100.00%** | **$2,686,198** | **100.00%** | - **Non-Performing Assets (NPA, Amounts in Millions)** | Metric | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Total Nonperforming Assets | $11.3 | $6.3 | | NPA to Total Assets | 0.26% | 0.20% | - The increase in nonperforming assets in fiscal 2023 was primarily attributed to nonaccrual loans and other real estate owned acquired in the Citizens merger[95](index=95&type=chunk) - **Allowance for Credit Losses (ACL, Amounts in Millions)** | Metric | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | ACL Balance | $47.8 | $33.2 | | ACL to Gross Loans | 1.32% | 1.22% | | ACL to Nonaccrual Loans | 633.97% | 806.02% | [Investment Activities](index=39&type=section&id=Investment%20Activities) The company manages a **$417.6 million** available-for-sale investment portfolio for liquidity and asset/liability management, primarily MBS and other debt securities - **Investment Portfolio Composition (Fair Value, Amounts in Millions)** | Security Type | June 30, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Debt and Other Securities | $147.3 | $64.8 | | Mortgage-Backed Securities (MBS) | $270.3 | $170.6 | | **Total AFS Securities** | **$417.6** | **$235.4** | - All investment securities are classified as available-for-sale (AFS), with unrealized gains and losses recorded as a separate component of stockholders' equity[115](index=115&type=chunk) [Deposit Activities and Other Sources of Funds](index=43&type=section&id=Deposit%20Activities%20and%20Other%20Sources%20of%20Funds) Primary funding sources include **$3.7 billion** in deposits, with over **51%** in non-interest bearing and NOW accounts, supplemented by FHLB advances - **Deposit Composition as of June 30, 2023 (Amounts in Thousands)** | Deposit Type | Balance | Percentage of Total | | :--- | :--- | :--- | | Non-interest Bearing | $597,600 | 16.04% | | NOW Accounts | $1,328,423 | 35.66% | | Savings Accounts | $282,753 | 7.59% | | Money Market Accounts | $452,728 | 12.15% | | Certificates of Deposit | $1,064,036 | 28.56% | | **Total Deposits** | **$3,725,540** | **100.00%** | - As of June 30, 2023, an estimated **$750.0 million** of the deposit portfolio was uninsured, of which **$227.8 million** was collateralized[133](index=133&type=chunk) - The company actively uses FHLB advances for liquidity and funding, with **$133.5 million** outstanding and approximately **$539.5 million** in available credit as of June 30, 2023[144](index=144&type=chunk)[145](index=145&type=chunk) [Government Supervision and Regulation](index=56&type=section&id=Government%20Supervision%20and%20Regulation) The Company and Bank operate in a highly regulated environment, subject to extensive federal and state supervision covering capital adequacy and lending practices - The Bank is a state-chartered, federally insured trust company, with the FRB as its primary federal regulator and the Missouri Division of Finance as its primary state regulator[168](index=168&type=chunk) - The Company and Bank are subject to minimum regulatory capital requirements, including CET1, Tier 1, and total capital ratios, and must maintain a capital conservation buffer to avoid limitations on dividends and share repurchases[187](index=187&type=chunk)[190](index=190&type=chunk) - As a bank holding company, the Company is regulated by the FRB under the Bank Holding Company Act, which requires it to serve as a source of financial strength for its subsidiary bank[210](index=210&type=chunk) [Item 1A. Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from macroeconomic factors, credit concentrations in real estate, interest rate fluctuations, and operational vulnerabilities - Macroeconomic risks include the potential adverse effects of recent bank failures on depositor confidence, economic slowdowns impacting loan demand and collateral values, and inflationary pressures on business customers' ability to repay loans[229](index=229&type=chunk)[232](index=232&type=chunk)[236](index=236&type=chunk) - Significant credit risks stem from the loan portfolio's concentration in commercial real estate (**60.5%** of net loans), construction lending (**15.4%**), and agricultural lending, which are more vulnerable to economic downturns[246](index=246&type=chunk)[248](index=248&type=chunk)[251](index=251&type=chunk) - The company exceeds interagency guidance thresholds for commercial real estate concentrations, which may lead to increased supervisory scrutiny or require slowing growth in this loan category[257](index=257&type=chunk)[259](index=259&type=chunk) - The business is exposed to interest rate risk, which can negatively affect net interest income, and risks associated with the transition from LIBOR to alternative benchmark rates like SOFR[263](index=263&type=chunk)[265](index=265&type=chunk) - Operational risks include potential failures in technology systems, cybersecurity breaches, and reliance on third-party vendors, which could lead to financial loss and reputational damage[279](index=279&type=chunk)[282](index=282&type=chunk)[286](index=286&type=chunk) [Item 2. Description of Properties](index=97&type=section&id=Item%202.%20Description%20of%20Properties) The Bank operates from a headquarters and **65 branch offices**, with the majority of these properties owned rather than leased - The Bank owns the majority of its physical locations, including its headquarters and **58** of its **65** branch offices[304](index=304&type=chunk) [Item 3. Legal Proceedings](index=97&type=section&id=Item%203.%20Legal%20Proceedings) Management states no material pending legal proceedings are expected to significantly impact the company's financial condition or operations - There are no material pending legal proceedings expected to significantly impact the company's financial condition or operations[306](index=306&type=chunk)[307](index=307&type=chunk) [Item 4A. Information About Our Executive Officers](index=99&type=section&id=Item%204A.%20Information%20About%20Our%20Executive%20Officers) This section provides biographical information for the company's executive officers, including Chairman and CEO Greg A. Steffens and President Matthew T. Funke - Greg A Steffens serves as Chairman and CEO, having been with the company since 1998[311](index=311&type=chunk) - Matthew T Funke is the President and Chief Administrative Officer, promoted to the role effective July 1, 2022[312](index=312&type=chunk) PART II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=104&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq under 'SMBC', with **11.3 million** shares outstanding, and a policy of quarterly dividends - The company's common stock (SMBC) is traded on the Nasdaq Global Market[327](index=327&type=chunk) - A share repurchase program authorized in May 2021 has **306,375** shares remaining for purchase as of June 30, 2023 No repurchases were made during the three months ended June 30, 2023[329](index=329&type=chunk)[331](index=331&type=chunk) - **Cumulative Total Return Comparison** | Index | 6/30/2022 | 6/30/2023 | | :--- | :--- | :--- | | Southern Missouri Bancorp, Inc. | 124.49 | 107.78 | | KBW NASDAQ Bank Index | 109.47 | 90.06 | | S&P U.S. SmallCap Banks Index | 106.94 | 87.01 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=106&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal year 2023 net income decreased **16.8%** to **$39.2 million**, driven by higher provision for credit losses and noninterest expenses, despite net interest income growth - **Key Operating Data (Fiscal Year Ended June 30, Amounts in Millions)** | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Income | $39.2 | $47.2 | | Diluted EPS | $3.85 | $5.21 | | Net Interest Income | $126.7 | $103.6 | | Provision for Credit Losses | $17.1 | $1.5 | | Return on Assets (ROA) | 1.03% | 1.59% | | Return on Equity (ROE) | 10.39% | 15.44% | [Financial Condition](index=111&type=section&id=Financial%20Condition) As of June 30, 2023, the company's financial condition showed significant growth, with total assets increasing **35.6%** to **$4.4 billion** due to the Citizens merger - Total assets grew by **$1.1 billion** (**35.6%**) during fiscal 2023, largely driven by the Citizens merger[348](index=348&type=chunk) - Net loans increased by **$884.9 million** (**32.9%**), with **$447.4 million** of the increase attributable to the Citizens merger[351](index=351&type=chunk)[352](index=352&type=chunk) - Deposits increased by **$910.5 million** (**32.3%**), with the Citizens merger contributing **$851.1 million** of the growth[361](index=361&type=chunk) - Stockholders' equity increased by **$125.3 million** (**39.1%**), primarily due to **$98.3 million** in equity issued to Citizens shareholders[366](index=366&type=chunk) [Comparison of Operating Results for the Years Ended June 30, 2023 and 2022](index=117&type=section&id=Comparison%20of%20Operating%20Results%20for%20the%20Years%20Ended%20June%2030%2C%202023%20and%202022) Fiscal year 2023 net income decreased **16.8%** to **$39.2 million**, primarily due to increased provision for credit losses and noninterest expense - Net income decreased by **$7.9 million** (**16.8%**) compared to the prior fiscal year[367](index=367&type=chunk) - Net interest margin decreased from **3.72%** to **3.54%** due to a **113 basis point** increase in the average rate paid on interest-bearing liabilities, which outpaced the **73 basis point** increase in the average yield on interest-earning assets[368](index=368&type=chunk)[369](index=369&type=chunk)[372](index=372&type=chunk) - The provision for credit losses increased to **$17.1 million** from **$1.5 million**, partly due to a **$5.2 million** charge to fund the ACL for non-PCD loans and a **$1.8 million** charge for off-balance sheet exposures from the Citizens merger[376](index=376&type=chunk) - Noninterest expense increased by **$23.0 million** (**36.4%**), which included **$4.9 million** in merger-related costs and higher compensation, data processing, and occupancy expenses from the expanded operations[378](index=378&type=chunk) [Liquidity and Capital Resources](index=123&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity through deposit growth and FHLB advances, exceeding all regulatory capital requirements to be "well capitalized" - The Bank has substantial borrowing capacity, with **$541.3 million** available from the FHLB and **$276.6 million** from the Federal Reserve discount window as of June 30, 2023[397](index=397&type=chunk) - **Regulatory Capital Ratios (Southern Bank) - June 30, 2023** | Ratio | Actual | Well Capitalized Minimum | | :--- | :--- | :--- | | Total Capital (to Risk-Weighted Assets) | 11.77% | 10.00% | | Tier I Capital (to Risk-Weighted Assets) | 10.56% | 8.00% | | Tier I Capital (to Average Assets) | 9.54% | 5.00% | | Common Equity Tier I Capital | 10.56% | 6.50% | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=131&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed to maximize net interest income, with a **100 basis point** rate increase decreasing Net Portfolio Value by **11%** - **Net Portfolio Value (NPV) Sensitivity Analysis (June 30, 2023, Amounts in Thousands)** | Change in Rates | NPV Change | % Change | | :--- | :--- | :--- | | +300 bp | $(114,765) | (31)% | | +200 bp | $(77,850) | (21)% | | +100 bp | $(40,138) | (11)% | | 0 bp | $374,364 | — | | -100 bp | $51,879 | 14% | - The company's asset/liability strategy aims to match the repricing intervals of assets and liabilities, utilizing strategies like originating shorter-duration commercial loans and using longer-term FHLB advances to manage risk from fixed-rate residential lending[422](index=422&type=chunk)[423](index=423&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=134&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for fiscal year 2023, including balance sheets, income statements, and detailed notes [Report of Independent Registered Public Accounting Firm](index=135&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) FORVIS, LLP issued an unqualified opinion on the financial statements, identifying ACL estimation and business combination accounting as Critical Audit Matters - The auditor, FORVIS, LLP, issued an unqualified opinion on the company's consolidated financial statements[434](index=434&type=chunk) - Critical Audit Matters identified were the Allowances for Credit Losses (ACL) and the accounting for the recent Business Combination, both of which involved significant management judgment and subjectivity[439](index=439&type=chunk)[441](index=441&type=chunk)[446](index=446&type=chunk) [Consolidated Financial Statements](index=141&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position, with total assets of **$4.4 billion** and net income of **$39.2 million** for fiscal 2023 - **Consolidated Balance Sheet Highlights (June 30, Amounts in Thousands)** | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Total Assets | $4,360,211 | $3,214,782 | | Loans Receivable, Net | $3,571,078 | $2,686,198 | | Total Deposits | $3,725,540 | $2,815,075 | | Total Liabilities | $3,914,153 | $2,894,010 | | Total Stockholders' Equity | $446,058 | $320,772 | - **Consolidated Statement of Income Highlights (Year Ended June 30, Amounts in Thousands)** | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Net Interest Income | $126,745 | $103,567 | | Provision for Credit Losses | $17,061 | $1,487 | | Noninterest Income | $26,204 | $21,203 | | Noninterest Expense | $86,425 | $63,379 | | Net Income | $39,237 | $47,169 | [Notes to Consolidated Financial Statements](index=148&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical details supporting financial statements, covering accounting policies, loan portfolio analysis, business combinations, and regulatory capital - The company adopted the Current Expected Credit Loss (CECL) standard on July 1, 2020, which requires estimating credit losses over the life of financial assets The adoption resulted in a **$7.2 million** after-tax adjustment to retained earnings[464](index=464&type=chunk)[504](index=504&type=chunk) - Note 14 details the Citizens merger, showing total consideration of **$133.2 million**, resulting in **$23.5 million** of goodwill and **$24.7 million** in identifiable intangible assets[619](index=619&type=chunk)[621](index=621&type=chunk) - Note 3 provides a detailed breakdown of the loan portfolio's credit quality, including risk ratings (Pass, Watch, Substandard) and aging analysis As of June 30, 2023, **$46.3 million** in loans were rated Substandard[551](index=551&type=chunk)[557](index=557&type=chunk) [Item 9A. Controls and Procedures](index=213&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective, excluding the recently acquired Citizens Bancshares Co. operations - Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of June 30, 2023[648](index=648&type=chunk)[654](index=654&type=chunk) - The assessment of internal controls explicitly excluded the operations of Citizens Bancshares Co., which was acquired during fiscal year 2023 and represented approximately **23%** of consolidated assets[654](index=654&type=chunk)[661](index=661&type=chunk) PART III This section incorporates information by reference from the company's definitive proxy statement, covering directors, executive compensation, security ownership, and related transactions [Items 10-14 (Incorporated by Reference)](index=219&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) Information for Items 10-14 is incorporated by reference from the forthcoming proxy statement, covering governance, compensation, ownership, and auditor fees - Information regarding directors, executive compensation, security ownership, and principal accountant fees is incorporated by reference from the forthcoming proxy statement[670](index=670&type=chunk)[675](index=675&type=chunk)[677](index=677&type=chunk)[681](index=681&type=chunk)[682](index=682&type=chunk) - The company has adopted a Code of Conduct and Ethics applicable to all directors, officers, and employees[673](index=673&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=221&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report, including articles of incorporation and material contracts - This section lists all financial statements and exhibits included with or incorporated by reference into the Form 10-K filing[685](index=685&type=chunk)[686](index=686&type=chunk)

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q4 2023 Earnings Conference Call July 25, 2023 10:30 AM ET Company Participants Matt Funke – President Greg Steffens – Chairman and Chief Executive Officer Conference Call Participants Andrew Liesch – Piper Sandler Kelly Motta – KBW Operator Hello, and welcome to Southern Missouri Bancorp Earnings Conference Call. My name is Elliot, and I will be coordinating your call today. [Operator Instructions] I'd now like to hand over to Matt Funke, President. The floor i ...

[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The condensed financial statements detail the company's financial position, operations, and cash flows, reflecting asset growth and net income changes driven by an acquisition [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$4.29 billion**, driven by increased net loans and deposits, with stockholders' equity rising due to an acquisition Condensed Consolidated Balance Sheet Comparison (in thousands) | Account | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,292,666** | **$3,214,782** | | Cash and cash equivalents | $114,540 | $86,792 | | Available for sale securities | $429,798 | $235,394 | | Loans receivable, net | $3,434,519 | $2,686,198 | | Goodwill | $50,657 | $27,288 | | **Total Liabilities** | **$3,856,019** | **$2,894,010** | | Deposits | $3,755,193 | $2,815,075 | | **Total Stockholders' Equity** | **$436,647** | **$320,772** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income significantly decreased for both the quarter and nine-month periods, primarily due to a substantial increase in the provision for credit losses Income Statement Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $33,767 | $25,114 | $90,526 | $75,808 | | Provision for Credit Losses | $10,072 | $1,552 | $16,266 | $1,247 | | **Net Income** | **$2,409** | **$9,351** | **$23,676** | **$34,082** | | Diluted EPS | $0.22 | $1.03 | $2.41 | $3.80 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the quarter increased to **$3.1 million**, while the nine-month period saw a slight decrease to **$23.1 million** Comprehensive Income (in thousands) | Metric | Q3 2023 | Q3 2022 | 9 Months 2023 | 9 Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $2,409 | $9,351 | $23,676 | $34,082 | | Total other comprehensive income (loss) | $703 | $(7,471) | $(590) | $(9,371) | | **Comprehensive Income** | **$3,112** | **$1,880** | **$23,086** | **$24,711** | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity increased to **$436.6 million**, primarily driven by common stock issuance for an acquisition and net income - Key drivers for the increase in stockholders' equity during the nine months ended March 31, 2023, were the issuance of common stock valued at **$98.3 million**, net income of **$23.7 million**, and stock-based compensation, offset by dividends paid of **$6.3 million** and a **$0.6 million** increase in unrealized losses on securities[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$39.4 million**, while investing activities used **$73.7 million**, resulting in a **$27.7 million** increase in cash Net Cash Flow Summary (Nine Months Ended March 31, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,366 | $45,874 | | Net cash used in investing activities | $(73,719) | $(172,012) | | Net cash provided by financing activities | $62,101 | $251,130 | | **Increase in cash and cash equivalents** | **$27,748** | **$124,992** | - The company completed the acquisition of Citizens Bancshares Company on January 20, 2023, which involved assuming liabilities of **$887.0 million**[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed accounting policies, including ACL under CECL, and information on loan portfolio quality and recent business combinations - The company adopted ASU 2022-02, which eliminates Troubled Debt Restructuring (TDR) accounting guidance for entities that have adopted CECL, effective for fiscal years beginning after December 15, 2022[66](index=66&type=chunk) - On January 20, 2023, the Company completed its acquisition of Citizens Bancshares, Co. for a total consideration of **$130.8 million**, resulting in **$23.4 million** of goodwill and **$24.6 million** of identifiable intangible assets[151](index=151&type=chunk)[153](index=153&type=chunk) - The Allowance for Credit Losses (ACL) on loans was **$45.7 million** as of March 31, 2023, up from **$33.2 million** at June 30, 2022. The increase was driven by provisions for the acquired Citizens loan portfolio and organic loan growth[100](index=100&type=chunk)[243](index=243&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results, highlighting the Citizens merger's impact on balance sheet growth, decreased net income, and changes in asset quality and capital [Executive Summary](index=66&type=section&id=Executive%20Summary) The Citizens Bank & Trust acquisition significantly impacted results, leading to a **30.5%** net income decrease and **$1.1 billion** asset growth for the nine months Nine-Month Performance vs. Prior Year (FY2023 vs FY2022) | Metric | Nine Months FY2023 | Nine Months FY2022 | Change | | :--- | :--- | :--- | :--- | | Net Income | $23.7 million | $34.1 million | -30.5% | | Diluted EPS | $2.41 | $3.80 | -36.6% | | Net Interest Income | $90.5 million | $75.8 million | +19.4% | | Provision for Credit Losses | $16.3 million | $1.2 million | +1258% | | Noninterest Income | $17.3 million | $14.7 million | +17.4% | | Noninterest Expense | $61.6 million | $46.0 million | +33.7% | - The acquisition of Citizens Bank & Trust was a primary driver of balance sheet growth and increased expenses during the period[183](index=183&type=chunk)[184](index=184&type=chunk) [Comparison of Financial Condition](index=70&type=section&id=Comparison%20of%20Financial%20Condition) Total assets grew **33.5%** to **$4.3 billion** due to the Citizens merger, driving increases in net loans, deposits, and stockholders' equity - The company's concentration in non-owner occupied commercial real estate stood at **334%** of regulatory capital as of March 31, 2023, up from **299%** a year ago[199](index=199&type=chunk) - Uninsured deposits, excluding collateralized public unit funds, were estimated at **14%** of total deposits as of March 31, 2023[200](index=200&type=chunk) [Results of Operations](index=78&type=section&id=Results%20of%20Operations) Net income significantly decreased for both the quarter and nine-month periods, primarily due to merger-related expenses and increased provision for credit losses - Q3 2023 net income was significantly reduced by merger-related charges, including a **$7.0 million** provision for credit losses on the acquired loan portfolio and off-balance sheet exposures[216](index=216&type=chunk) - The net interest margin for Q3 2023 was **3.48%**, flat compared to Q3 2022. For the nine-month period, it decreased to **3.52%** from **3.74%** YoY, as the cost of interest-bearing liabilities rose faster than the yield on earning assets[205](index=205&type=chunk)[208](index=208&type=chunk)[218](index=218&type=chunk) - Noninterest expense for Q3 2023 increased **61.1%** YoY to **$27.0 million**, with **$3.3 million** directly related to merger and acquisition activities[226](index=226&type=chunk) [Allowance for Credit Loss Activity](index=85&type=section&id=Allowance%20for%20Credit%20Loss%20Activity) The Allowance for Credit Losses (ACL) increased to **$45.7 million**, primarily due to provisions for acquired loans and organic growth, impacting off-balance sheet exposures ACL Summary | Metric | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | | ACL Balance | $45.7 million | $33.2 million | | ACL as % of Gross Loans | 1.31% | 1.22% | | ACL as % of Nonperforming Loans | 618% | 806% | - The provision for credit losses for the nine months ended March 31, 2023, was **$16.3 million**, a sharp increase from **$1.2 million** in the prior-year period, driven by loan growth and the Citizens merger[237](index=237&type=chunk) - Adversely classified loans increased to **$46.9 million** (**1.35%** of total loans) from **$27.1 million** (**1.00%** of total loans) at June 30, 2022, partly due to loans acquired from Citizens[252](index=252&type=chunk) [Nonperforming Assets](index=89&type=section&id=Nonperforming%20Assets) Nonperforming assets increased to **$12.7 million**, primarily due to nonperforming loans and other real estate owned from the Citizens merger Nonperforming Assets (in thousands) | Category | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | | Nonperforming loans | $7,397 | $4,118 | | Foreclosed assets held for sale | $5,283 | $2,191 | | **Total nonperforming assets** | **$12,680** | **$6,309** | [Liquidity and Capital Resources](index=91&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity and remains well-capitalized, with strong Tier 1 leverage and Common Equity Tier 1 capital ratios above regulatory minimums - At March 31, 2023, the company had outstanding commitments to extend credit of approximately **$1.1 billion**, including **$723.2 million** in unused lines of credit[260](index=260&type=chunk) Consolidated Capital Ratios (Actual vs. Required for Adequacy) | Ratio | March 31, 2023 (Actual) | Required for Adequacy | | :--- | :--- | :--- | | Total Capital (to Risk-Weighted Assets) | 12.22% | 8.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 10.99% | 6.00% | | Common Equity Tier 1 Capital | 10.58% | 4.50% | | Tier 1 Capital (to Average Assets) | 10.02% | 4.00% | - The Company and the Bank have elected the five-year transition period to phase in the effects of CECL adoption on regulatory capital[265](index=265&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=95&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk, showing a moderately liability-sensitive position where a **200 basis point** rate increase would decrease NPV by **17%** Net Portfolio Value (NPV) Sensitivity Analysis (March 31, 2023) | Change in Rates (bp) | NPV Change (%) | | :--- | :--- | | +300 | -26% | | +200 | -17% | | +100 | -10% | | -100 | +10% | | -200 | +23% | | -300 | +34% | - The company's interest rate sensitivity has declined since June 30, 2022, benefiting from the asset-sensitive balance sheet acquired in the Citizens merger[276](index=276&type=chunk)[277](index=277&type=chunk) [Item 4. Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of March 31, 2023[281](index=281&type=chunk) - The company acknowledges the inherent limitations of any control system, stating it can provide only reasonable, not absolute, assurance against errors or fraud[282](index=282&type=chunk) [PART II. OTHER INFORMATION](index=100&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any pending legal proceedings expected to materially affect its financial condition or operations - Management states that the Company is not involved in any pending claims or lawsuits that are expected to materially impact its financial condition or operations[285](index=285&type=chunk) [Item 1a. Risk Factors](index=100&type=section&id=Item%201a.%20Risk%20Factors) A new risk factor highlights industry uncertainty, potentially leading to deposit outflows, increased funding costs, and heightened competition for liquidity - A new risk factor highlights the uncertainty in the financial services industry following recent events, which could drive deposit outflows, increase funding costs, and intensify competition for liquidity[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a stock repurchase program with **306,375** shares remaining available, though no shares were repurchased in Q3 2023 Stock Repurchase Activity (Q3 2023) | Period | Total of Shares Purchased | Average Price Paid Per Share | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Jan 2023 | 0 | $— | 306,375 | | Feb 2023 | 0 | $— | 306,375 | | Mar 2023 | 0 | $— | 306,375 | [Item 3. Defaults upon Senior Securities](index=100&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) Not applicable [Item 4. Mine Safety Disclosures](index=102&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Item 5. Other Information](index=102&type=section&id=Item%205.%20Other%20Information) None [Item 6. Exhibits](index=103&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate documents, material contracts, and required certifications - The filing includes certifications from the Chief Executive Officer, Chief Administrative Officer, and Chief Financial Officer pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[295](index=295&type=chunk)

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q3 2023 Earnings Conference Call May 2, 2023 10:30 AM ET Company Participants Lora Daves - Chief Financial Officer Matt Funke - President and Chief Administrative Officer Greg Steffens - Chairman and Chief Executive Officer Conference Call Participants Kelly Motta - KBW Andrew Liesch - Piper Sandler Operator Hello, everyone, and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. My name is Daisy, and I'll be coordinating your call today ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-23406 Southern Missouri Bancorp, Inc. | (Exact name of registrant as specified in its charter) | | | --- | --- ...

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q2 2023 Earnings Conference Call January 31, 2023 10:30 AM ET Company Participants Lora Daves - Chief Financial Officer Greg Steffens - Chairman and Chief Executive Officer Matt Funke - President and Chief Administrative Officer Conference Call Participants Andrew Liesch - Piper Sandler Kelly Motta - KBW Operator Ladies and gentlemen, welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. My name is Glenn and I will be the moderator for tod ...