PART I. Financial Information [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%2E%20Condensed%20Consolidated%20Financial%20Statements) This section presents Southern Missouri Bancorp, Inc.'s unaudited interim financial statements for Q3 2022, covering balance sheets, income, comprehensive income, equity, and cash flows with notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to **$3.44 billion** by September 30, 2022, driven by increased net loans, funded by FHLB advances and deposits Condensed Consolidated Balance Sheets (unaudited) | (dollars in thousands) | September 30, 2022 | June 30, 2022 | | :--- | :--- | :--- | | **Total assets** | **$ 3,444,843** | **$ 3,214,782** | | Loans receivable, net | $ 2,939,191 | $ 2,686,198 | | Cash and cash equivalents | $ 47,718 | $ 86,792 | | **Total liabilities** | **$ 3,118,443** | **$ 2,894,010** | | Deposits | $ 2,851,013 | $ 2,815,075 | | Advances from FHLB | $ 224,973 | $ 37,957 | | **Total stockholders' equity** | **$ 326,400** | **$ 320,772** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q3 2022 decreased to **$9.6 million** from **$12.7 million** year-over-year, primarily due to a **$5.1 million** provision for credit losses Condensed Consolidated Statements of Income (unaudited) | (dollars in thousands except per share data) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | | :--- | :--- | :--- | | Net Interest Income | $ 28,508 | $ 25,638 | | Provision for Credit Losses | $ 5,056 | $ (305) | | Noninterest Income | $ 5,514 | $ 4,515 | | Noninterest Expense | $ 16,920 | $ 14,224 | | **Net Income** | **$ 9,603** | **$ 12,746** | | **Diluted earnings per share** | **$ 1.04** | **$ 1.43** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q3 2022 decreased to **$7.5 million** from **$12.8 million** year-over-year, reflecting lower net income and a **$2.1 million** other comprehensive loss Condensed Consolidated Statements of Comprehensive Income (unaudited) | (dollars in thousands) | Three months ended September 30, 2022 | Three months ended September 30, 2021 | | :--- | :--- | :--- | | Net Income | $ 9,603 | $ 12,746 | | Total other comprehensive income (loss) | $ (2,091) | $ 10 | | **Comprehensive Income** | **$ 7,512** | **$ 12,756** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to **$326.4 million** by September 30, 2022, driven by net income, partially offset by dividends and AFS unrealized losses - For the three months ended September 30, 2022, stockholders' equity increased by **$5.6 million**, with net income of **$9.6 million** being the primary driver, offset by dividends and changes in AOCI[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased by **$39.1 million** for Q3 2022, with a **$267.1 million** investing outflow largely offset by **$221.0 million** from financing Cash Flow Summary (unaudited) | (dollars in thousands) | Three months ended September 30, 2022 | | :--- | :--- | | Net cash provided by operating activities | $ 7,060 | | Net cash used in investing activities | $ (267,146) | | Net cash provided by financing activities | $ 221,012 | | **Decrease in cash and cash equivalents** | **$ (39,074)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on accounting policies, ACL, AFS securities, loan portfolio, business combinations, and fair value measurements - The company estimates the Allowance for Credit Losses (ACL) using a discounted cash flow (DCF) methodology, incorporating a four-quarter forecast and a four-quarter reversion period to historical averages[37](index=37&type=chunk)[38](index=38&type=chunk) - On September 20, 2022, the Company entered into a merger agreement with Citizens Bancshares, Co. for approximately **$140.0 million**, expected to close in Q1 2023[142](index=142&type=chunk) - The company completed its acquisition of Fortune Financial Corporation on February 25, 2022, for **$35.5 million**, resulting in **$12.8 million** of goodwill and **$1.6 million** of core deposit intangible[143](index=143&type=chunk)[145](index=145&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2023 financial performance, highlighting a **24.7%** net income decrease due to credit loss provisions and loan growth - Net income for Q1 FY2023 was **$9.6 million**, a **24.7%** decrease from the prior year, primarily due to a swing from a **$305,000** credit loss recovery to a **$5.1 million** provision expense[172](index=172&type=chunk)[194](index=194&type=chunk) - Total assets grew by **$230.1 million** during the quarter, driven by a **$253.0 million** increase in net loans, funded by a **$187.0 million** increase in FHLB advances and a **$35.9 million** increase in deposits[170](index=170&type=chunk)[171](index=171&type=chunk)[180](index=180&type=chunk) - Net interest margin decreased to **3.65%** from **4.01%** year-over-year, largely due to reduced PPP loan fee accretion, which contributed less than one basis point compared to **34 basis points** a year ago[196](index=196&type=chunk) [Comparison of Financial Condition](index=42&type=section&id=Comparison%20of%20Financial%20Condition) Total assets reached **$3.4 billion** by September 30, 2022, a **7.2%** increase driven by a **9.4%** rise in net loans, funded by FHLB advances and deposits Balance Sheet Changes (Q1 FY2023) | Account | Change from June 30, 2022 (millions of dollars) | % Change | | :--- | :--- | :--- | | Total Assets | +$230.1 million | +7.2% | | Net Loans | +$253.0 million | +9.4% | | Deposits | +$35.9 million | +1.3% | | FHLB Advances | +$187.0 million | +492.7% | [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Net income for Q3 2022 decreased to **$9.6 million** from **$12.7 million** year-over-year, despite rising net interest income, due to a **$5.1 million** credit loss provision - The provision for credit losses was a charge of **$5.1 million**, compared to a credit of **$305,000** in the prior year, driven by significant loan growth and a modest decline in the economic outlook[204](index=204&type=chunk) - Noninterest income growth was driven by increases in other loan fees, loan servicing fees, and deposit account service charges[205](index=205&type=chunk) - Noninterest expense increased primarily due to higher compensation and benefits, occupancy costs, and data processing expenses, partly related to the Fortune merger[208](index=208&type=chunk) [Allowance for Credit Loss Activity](index=46&type=section&id=Allowance%20for%20Credit%20Loss%20Activity) The Allowance for Credit Losses (ACL) increased to **$37.4 million** by September 30, 2022, representing **1.26%** of gross loans, driven by a **$4.25 million** provision ACL Ratios | Metric | September 30, 2022 | June 30, 2022 | | :--- | :--- | :--- | | ACL | $37.4 million | $33.2 million | | ACL / Gross Loans | 1.26% | 1.22% | | ACL / Nonperforming Loans | 960% | 806% | - The allowance for off-balance sheet credit exposures also increased by **$806,000** to **$4.2 million**, primarily due to an increase in unfunded commitments[216](index=216&type=chunk)[217](index=217&type=chunk) [Nonperforming Assets](index=49&type=section&id=Nonperforming%20Assets) Total nonperforming assets (NPAs) decreased to **$5.7 million** by September 30, 2022, from **$6.3 million** in the prior quarter, due to reduced nonperforming loans Nonperforming Assets Summary | (dollars in thousands) | September 30, 2022 | June 30, 2022 | September 30, 2021 | | :--- | :--- | :--- | :--- | | Total nonperforming loans | $ 3,899 | $ 4,118 | $ 6,133 | | Foreclosed assets held for sale | $ 1,830 | $ 2,180 | $ 2,240 | | **Total nonperforming assets** | **$ 5,729** | **$ 6,309** | **$ 8,381** | [Liquidity and Capital](index=50&type=section&id=Liquidity%20and%20Capital) The company maintains strong liquidity and remains well-capitalized, exceeding all regulatory minimums with a **10.30%** Tier 1 leverage ratio - At quarter-end, the bank had **$225.9 million** in FHLB advances outstanding against total available credit of **$508.1 million**[226](index=226&type=chunk) Consolidated Capital Ratios (September 30, 2022) | Ratio | Actual | Minimum for Adequacy | | :--- | :--- | :--- | | Total Capital (to Risk-Weighted Assets) | 12.61% | 8.00% | | Tier 1 Capital (to Risk-Weighted Assets) | 11.22% | 6.00% | | Tier 1 Capital (to Average Assets) | 10.30% | 4.00% | | Common Equity Tier 1 Capital | 10.72% | 4.50% | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=53&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk by matching asset and liability repricing, with NPV analysis showing increased liability sensitivity Net Portfolio Value (NPV) Sensitivity Analysis (September 30, 2022) | Change in Rates | NPV % Change | | :--- | :--- | | +300 bp | (51)% | | +200 bp | (34)% | | +100 bp | (14)% | | 0 bp | 0% | | -100 bp | 18% | | -200 bp | 39% | | -300 bp | 65% | - The company's interest rate sensitivity has increased during the quarter due to origination of fixed-rate loans and the significant rise in market interest rates[244](index=244&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204%2E%20Controls%20and%20Procedures) As of September 30, 2022, management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control - Management concluded that the Company's disclosure controls and procedures were effective as of September 30, 2022[249](index=249&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=57&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is not party to any pending legal proceedings expected to materially affect its financial condition or operations, only routine claims - Management states that the Company is not a party to any pending claims or lawsuits expected to have a material effect on its financial condition or operations[253](index=253&type=chunk) [Item 1a. Risk Factors](index=57&type=section&id=Item%201a%2E%20Risk%20Factors) No material changes to risk factors have been reported from the Annual Report on Form 10-K for FY2022 - No material changes to risk factors from the Annual Report on Form 10-K for the year ended June 30, 2022, have been reported[254](index=254&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company has a stock repurchase program for up to **445,000** shares, with no repurchases made during Q3 2022 - No shares of common stock were repurchased during the three-month period ended September 30, 2022[256](index=256&type=chunk)[257](index=257&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206%2E%20Exhibits) This section lists exhibits filed with Form 10-Q, including management certifications and iXBRL financial data

Financial Data and Key Metrics Changes - The company reported earnings of $1.04 diluted for the September quarter, down $0.37 from the linked June quarter and down $0.39 from the September 2021 quarter [6] - Net interest margin for the quarter was 3.65%, compared to 4.01% for the same period last year and 3.66% for the linked quarter [6][22] - Net interest income was $28.5 million, an increase of $2.9 million or 11.2% compared to the same period last year [8] - The allowance for credit losses at September 30 was $37.4 million or 1.26% of gross loans, compared to $33.2 million or 1.22% at June 30 [30] Business Line Data and Key Metrics Changes - Gross loan balances increased by more than $257 million in the September quarter compared to one year ago, with a year-over-year increase of $695 million or almost 30% [9] - The investment portfolio remained relatively unchanged, while cash and equivalents decreased by almost $42 million [11] - Nonperforming loans were just under $4 million or 0.13% of gross loans at September 30, down from over $6 million or 0.27% one year ago [15] Market Data and Key Metrics Changes - Deposit balances increased by almost $36 million in the first quarter and have increased by $479 million compared to September 30 of last year [11] - The company experienced a higher than normal overnight position due to strong loan growth, with FHLB borrowings increasing by $187 million during the quarter [12] Company Strategy and Development Direction - The company announced a planned merger with Citizens Bancshares, which will enhance market share and provide opportunities for revenue growth [38][39] - The merger is expected to improve the company's asset-sensitive balance sheet and net interest margin in the current rising rate environment [40] Management's Comments on Operating Environment and Future Outlook - Management noted that credit performance remains strong, with low levels of nonperforming loans and charge-offs [13][15] - The company anticipates continued loan growth, with a pipeline of $230 million at September 30 [32] - Management expressed concerns about increased competition for deposits and the potential impact on cost of funds and margins [36] Other Important Information - Noninterest income was up just under $1 million compared to the year ago period, driven by increases in servicing and loan fees [26] - Noninterest expense increased by $2.7 million compared to the year ago quarter, primarily due to compensation and benefits [27] Q&A Session Summary Question: Loan growth and potential pay-downs - Management noted strong loan growth driven by increased usage of commercial lines of credit and a reduction in loan prepayment rates [46][47] Question: Funding growth and deposit costs - Management indicated that Citizens Bancshares has a low deposit cost, which will provide flexibility to replace borrowings with core funding [50][52] Question: Fee income and secondary market activity - Management mentioned that the decline in fee income was due to seasonal fluctuations and that they do not expect significant improvement in secondary market activity in the near term [55][56] Question: Yield on new loans and growth drivers - Multifamily loans, particularly LIHTC conversions, were identified as the primary growth driver, with current loan pricing in the upper fives to mid-sixes [64][65] Question: Provision for credit losses - The increase in the allowance for credit losses was attributed to economic conditions rather than specific loan performance, with management wanting to ensure a cushion for potential future downturns [68][69]

Acquisitions and Goodwill - The company completed the acquisition of Fortune Financial, Inc. on February 25, 2022, with total assets of $253.0 million and loans net of $202.1 million, resulting in goodwill of $12.8 million [18]. - The acquisition of the Cairo branch of First National Bank on December 15, 2021, resulted in goodwill of $442,000, reflecting the company's commitment to the Cairo community [19]. - The company acquired Central Federal Bancshares, Inc. on May 22, 2020, with total assets of $70.6 million and a bargain purchase gain of $123,000 [20]. - The Company assumed $7.5 million in fixed-to-floating rate subordinated notes from the acquisition of Fortune Financial Corporation, with a carrying value of approximately $7.7 million at June 30, 2022 [149]. Financial Performance and Loans - As of June 30, 2022, the Bank's total mortgage loans amounted to $2,308.9 million, representing 85.96% of total loans [49]. - The Bank's net loans receivable totaled $2,686.2 million as of June 30, 2022, an increase from $2,200.2 million in 2021 [49]. - The Bank originated $1.1 billion in loans during fiscal 2022, an increase from $971.8 million in fiscal 2021 and $848.1 million in fiscal 2020, attributed to increased lending activity and borrower refinancing [83]. - The consumer loan portfolio totaled $93.0 million, representing 3.5% of net loans receivable, with home equity loans making up 48.9% of this portfolio at $45.5 million [67][68]. - The Bank's total loans at the end of the period were $2.84 billion, up from $2.31 billion at the beginning of the period [87]. Loan Losses and Nonperforming Assets - The total nonperforming assets decreased to $6.3 million at June 30, 2022, from $8.1 million at June 30, 2021, representing a reduction of approximately 22% [99]. - The allowance for credit losses at June 30, 2022, was $33.2 million, which represented 526% of nonperforming assets, compared to 409% at June 30, 2021 [106]. - Nonaccruing loans totaled $4.1 million at June 30, 2022, down from $5.9 million at June 30, 2021, indicating a decrease of approximately 30% [99]. - The total nonperforming loans to net loans ratio was 0.15% at June 30, 2022, compared to 0.27% at June 30, 2021 [99]. Economic Conditions and Competition - The company anticipates potential adverse impacts from ongoing economic conditions due to the COVID-19 pandemic, which could affect future performance [33]. - The company has identified fluctuations in interest rates and inflation as key factors that could impact its financial performance [33]. - The Bank expects competition for deposits and loans to increase due to legislative, regulatory, and technological changes in the financial services industry [41]. Deposits and Funding - As of June 30, 2022, the total deposits amounted to $2,815,075 thousand, reflecting a net increase of $484,272 thousand from the previous year [140]. - The composition of deposits included 41.62% in NOW accounts, 15.17% in non-interest bearing accounts, and 10.79% in money market deposit accounts [132]. - The Bank's time deposits totaled $638,631 thousand as of June 30, 2022, with 63.96% maturing in less than one year [135]. - The Bank's borrowings from the FHLB are utilized for liquidity and to fund loan growth, with specific collateral and membership requirements [141]. Capital and Regulatory Compliance - The Bank is categorized as "well capitalized" under the prompt corrective action standards as of June 30, 2022 [194]. - The minimum capital ratios required include a CET1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total capital ratio of 8.0% [189]. - The capital conservation buffer requirement was fully implemented on January 1, 2019, requiring an additional CET1 capital greater than 2.5% of risk-weighted assets [193]. - The Company is subject to comprehensive regulation by the Federal Reserve Board under the Bank Holding Company Act, requiring it to file reports and serve as a source of financial strength for its subsidiary banks [210]. Employee and Community Engagement - The Company had a total of 511 full-time employees and 33 part-time employees as of June 30, 2022, totaling 544 employees [156]. - The Company maintains competitive pay and benefits, with 62% of its executive team promoted from within [157]. - The Company is committed to community involvement, budgeting funds each year to support local programs and encouraging Team Member participation [160].

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q4 2022 Earnings Conference Call July 26, 2022 10:30 AM ET Company Participants Lora Daves - CFO Matt Funke - President and Chief Administrative Officer Greg Steffens - President and CEO Conference Call Participants Andrew Liesch - Piper Sandler Kelly Motta - KBW Operator Good morning or good afternoon all and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. My name is Adam and I will be your operator today. [Operator Instructions] I ...

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 March 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) | | | --- | --- | | ...

Call Start: 10:30 January 1, 0000 10:59 AM ET Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q3 2022 Earnings Conference Call April 26, 2022, 10:00 AM ET Company Participants Greg Steffens – President and Chief Executive Officer Matt Funke – Chief Financial Officer Conference Call Participants Andrew Liesch – Piper Sandler Eleanor Hagan – Keefe, Bruyette & Woods Operator Hello and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. My name is Alex and will be coordinating the call t ...

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, 2021 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 2022 Earnings Conference Call January 25, 2022 10:30 AM ET Company Participants Greg Steffens – President & CEO Matthew Funke – EVP & CFO Conference Call Participants Andrew Liesch – Piper Sandler Kelly Motta – Keefe, Bruyette & Woods Operator Hello everyone, and welcome to the Southern Missouri Bancorp Quarterly Earnings Call. My name is Victoria and I will be coordinating your call today. [Operator Instructions] I will now pass over to your host, CFO, Matt ...

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of regula ...

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q1 2022 Earnings Conference Call October 26, 2021 10:30 AM ET Company Participants Matthew Funke - EVP & CFO Greg Steffens - President & CEO Conference Call Participants Andrew Liesch - Piper Sandler Kelly Motta - KBW Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assi ...