SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR SECOND QUARTER OF FISCAL 2026; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JANUARY 22, AT 9:30 AM CENTRAL TIME

Core Viewpoint - Southern Missouri Bancorp, Inc. reported a preliminary net income of $18.2 million for the second quarter of fiscal 2026, reflecting a 23.9% increase compared to the same period last year, driven by higher net interest income despite increased provisions for credit loss and noninterest expenses [1]. Financial Performance - Preliminary net income per fully diluted common share was $1.62, up from $1.30 in the same quarter last year, marking a $0.32 increase [1]. - Net interest income rose by $4.7 million, or 12.4%, compared to the same quarter last year, attributed to a 5.0% increase in the average balance of interest-earning assets and a 23-basis point increase in net interest margin [19][20]. - Noninterest income decreased by $89,000, or 1.3%, primarily due to changes in fee recognition under ASC 310-20 [22]. Dividends and Share Repurchase - The Board of Directors declared a quarterly cash dividend of $0.25, marking the 127th consecutive quarterly dividend [3]. - A new share repurchase program was authorized for up to 550,000 shares, approximately 5.0% of outstanding shares, following the near completion of the previous program [4][5]. Balance Sheet Highlights - Total assets reached $5.1 billion, an increase of $74.8 million, or 1.5%, compared to June 30, 2025 [8]. - Loans, net of allowance for credit losses, were $4.2 billion, increasing by $123.1 million, or 3.0%, compared to June 30, 2025 [10]. - Total liabilities were $4.5 billion, reflecting a $52.1 million increase, or 1.2%, compared to June 30, 2025 [15]. Asset Quality - Nonperforming loans (NPLs) increased to $29.7 million, or 0.70% of gross loans, compared to $23.0 million, or 0.56%, at June 30, 2025 [13]. - The allowance for credit losses (ACL) totaled $54.5 million, representing 1.29% of gross loans, and was 184% of NPLs [14]. Deposits and Funding - Total deposits were $4.3 billion, an increase of $27.0 million, or 0.63%, compared to June 30, 2025 [16]. - The average loan-to-deposit ratio for the second quarter was 96.7%, compared to 94.5% for the quarter ended June 30, 2025 [16]. Efficiency and Expenses - Noninterest expense for the quarter was $25.3 million, an increase of $394,000, or 1.6%, compared to the same period last year [23]. - The efficiency ratio improved to 50.9%, down from 55.3% in the same period last year, indicating better operational efficiency [24].