Southern Missouri Bancorp (SMBC) investor relations material

Executive summary

• Earnings and profitability improved year-over-year, with diluted EPS at $1.60, up 15.1% from the prior year, but declined slightly quarter-over-quarter due to higher operating expenses and credit loss provisions.

• Preliminary net income for Q3 FY2026 was $17.8 million, up 13.3% year-over-year, driven by higher net interest and noninterest income, partially offset by increased provision for credit losses, noninterest expense, and income tax expense.

• Tangible book value per share rose 13.5% year-over-year to $45.80.

• Quarterly dividend of $0.25 per share declared, marking the 128th consecutive quarterly dividend.

Financial highlights

• Net interest margin was 3.67%, up from 3.44% a year ago and 3.57% last quarter.

• Net interest income for Q3 FY2026 was $43.2 million, up 9.3% year-over-year, with noninterest income up 6.4% to $7.1 million.

• Noninterest expense rose 3.3% year-over-year to $26.2 million, mainly due to higher data processing, compensation, and occupancy costs.

• Efficiency ratio improved to 52.2% from 55.1% a year ago.

• Allowance for credit losses was $55.9 million (1.29% of gross loans), up from $54.5 million last quarter.

Outlook and guidance

• Optimism for continued strong earnings and profitability into the fourth quarter and fiscal 2027.

• Loan growth expected to reach the higher end of mid-single-digit range for fiscal 2026.

• Limited near-term NIM expansion anticipated without further rate cuts; some pressure expected from repricing of fixed-rate loans.

• Effective tax rate projected at 19.5%-20% going forward.

• Management and the board expressed confidence in future prospects, as reflected in the continued dividend and share repurchases.