Southern Missouri Bancorp (SMBC) investor relations material

Executive summary

• Net income for Q2 fiscal 2026 was $18.2 million, up 23.9% year-over-year and 17.4% sequentially, with diluted EPS of $1.62, up 17.4% from the prior quarter and 24.6% year-over-year.

• Net income for the six months ended December 31, 2025, was $33.8 million, up 24.7% year-over-year, with fully diluted EPS of $3.00 and annualized ROAA of 1.33%.

• Management remains optimistic about sustaining solid profitability and growth, supported by continued asset growth and capital strength.

Financial highlights

• Net interest margin was 3.57% for the quarter and six months, up 23 bps year-over-year; would have been 3.63% excluding $678,000 in reversed interest income from non-accrual loans.

• Net interest income rose 12.4% year-over-year to $42.9 million for the quarter and 14.0% to $85.3 million for the six months.

• Tangible book value per share increased by 14.8% year-over-year to $44.65.

• Efficiency ratio improved to 50.9% from 55.3% year-over-year.

• Return on assets was just over 1.4% for the quarter; annualized ROAA was 1.33% for the six months.

Outlook and guidance

• Expectation for mid-single-digit loan growth for fiscal year 2026 remains intact, with asset growth funded by deposits and supplemented by brokered funding and FHLB borrowings.

• Margin tailwinds are anticipated from lower deposit costs rather than loan pricing.

• Personnel costs are expected to rise by mid-single digits in the March quarter due to annual merit increases.

• Charge-offs are expected to normalize to historical averages in coming quarters.

• Market expectations are for further reductions in the federal funds rate and some steepening of the yield curve.