Southern Missouri Bancorp (SMBC) Q3 2026 earnings summary

Executive summary

• Net income for the nine months ended March 31, 2026, was $51.6 million, up 20.5% year-over-year, driven by higher net interest income and partially offset by increased provision for credit losses, noninterest expense, and lower noninterest income.

• Diluted EPS for Q3 FY2026 was $1.60, up 15.1% year-over-year and 21.1% for the nine months; annualized ROAA was 1.41% for Q3 and 1.35% for the nine months.

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

• Total assets grew 2.4% to $5.1 billion, with net loans up $217.5 million and deposits up $59.5 million since June 30, 2025.

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

Financial highlights

• Net interest income for Q3 FY2026 was $43.2 million, up 9.3% year-over-year, and $128.4 million for the nine months, up 12.4%; net interest margin rose to 3.67% for Q3 and 3.60% for the nine months.

• Noninterest income increased 6.4% year-over-year to $7.1 million in Q3, but declined 1.3% to $20.4 million for the nine months.

• Noninterest expense rose 3.3% year-over-year to $26.2 million in Q3 and 0.6% to $76.5 million for the nine months.

• Efficiency ratio improved to 52.2% in Q3 and for the nine months due to higher net interest income and stable expenses.

• Allowance for credit losses was $55.9 million (1.29% of gross loans) at March 31, 2026.

Outlook and guidance

• Management expects continued asset growth through loan origination and investment securities purchases, funded by deposit growth and FHLB borrowings.

• 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.