Southern Missouri Bancorp (SMBC) investor relations material

Executive summary

• Q1 FY27 net income was $19.1 million, up 22.0% YoY; diluted EPS was $1.73, up 25.4% YoY and down 5.5% QoQ.

• Net interest income increased 8.3% YoY to $45.9 million; NIM was 3.70%, up from 3.57% YoY and 3.67% QoQ.

• Total assets reached $5.3 billion, up 1.4% QoQ; gross loans grew $63.9 million and deposits increased $66.1 million.

Financial highlights

• Provision for credit losses was $3.0 million, down $1.5 million YoY and $240,000 QoQ.

• Noninterest income was $7.1 million, up 8.7% YoY but down $212,000, or 2.9%, QoQ.

• Noninterest expense was $26.6 million, up 6.1% YoY and $1.0 million, or 4%, QoQ; compensation, other expense, and occupancy and equipment led the quarterly increase.

• Interest income was $75.8 million versus $73.0 million YoY; interest expense fell to $29.9 million from $30.6 million.

• Comprehensive income was $14.4 million, versus $18.7 million, reflecting a $4.7 million after-tax unrealized securities loss.

Outlook and guidance

• FY2027 loan growth guidance remains mid-single digits; growth may soften in the December quarter, with the March quarter historically the softest and seasonal ramp-up typically in Q4.

• FY expense growth guidance remains mid-single digits to high single digits; salary and benefits are expected to step up in the March quarter with merit increases.

• Near-term margin compression is expected from rate sensitivity and seasonal balance-sheet mix; a low-360-bps year-end exit is possible, with Q4 improvement anticipated as higher-spread loans grow and rates reset.

• Non-performing assets are expected to be meaningfully lower by fiscal year-end, though timing of individual workouts remains uncertain.

• Long-term plans include originating and occasionally purchasing loans and buying securities, primarily funded by deposits, with brokered funding and FHLB borrowings also available.