Southern Missouri Bancorp (SMBC) investor relations material

Executive summary

• Earnings increased in the June quarter due to lower income tax provision, higher net interest income, lower non-interest expenses, and higher non-interest income, partially offset by higher provision for credit losses.

• Fiscal 2026 saw net interest margin expansion, solid loan growth, and disciplined expense control, resulting in a 1.41% return on assets.

• Diluted EPS for the June quarter was $1.83, up 14% sequentially and 32% year-over-year; full-year EPS was $6.43, up 24% from fiscal 2025.

• Performance improvement initiatives and strategic hires in commercial lending and wealth management are expected to support future growth.

• Quarterly dividend increased to $0.27 per share, marking the 129th consecutive quarterly dividend.

Financial highlights

• Net interest margin for the quarter was 3.67%, unchanged sequentially but up from 3.47% a year ago.

• Net interest income for Q4 FY2026 rose 10.1% year-over-year to $44.4 million; noninterest income for Q4 FY2026 was $7.4 million, up 1.1% year-over-year.

• Non-interest expense declined 2.6% sequentially and 1.7% year-over-year, with full-year expense flat at $102.1 million.

• Efficiency ratio improved to 49.3% from 54.6% a year ago.

• Tangible book value per share rose 13% year-over-year to $47.43.

Outlook and guidance

• Expect mid-single-digit loan growth in fiscal 2027, moderating from 7% in 2026 as focus shifts to core deposit funding.

• Operating expenses projected to grow mid- to high-single digits in 2027, mainly from compensation and technology investments.

• Net interest margin may face near-term pressure from rising short-term rates and deposit competition.

• Effective tax rate expected to normalize to 19%-20% in 2027, with no repeat of large tax credit benefits.

• Management remains cautious amid economic uncertainty, including inflation, interest rates, and labor market conditions.