Southern Missouri Bancorp (SMBC) Status Update summary

Financial performance highlights

• Net income for Q3 FY2025 was $15.7 million, up 38.7% year-over-year, with diluted EPS of $1.39, a 40.4% increase from the prior year and 6.9% from the previous quarter.

• Net interest margin rose to 3.39%, benefiting from lower funding costs and fair value accretion, with net interest income increasing 14.4% year-over-year.

• Deposit balances grew by $51 million in the quarter and $275 million year-over-year, mainly from core CDs at lower rates, with total deposits up 6.9% to $4.26 billion.

• Tangible book value per share increased nearly 14% year-over-year to $40.37.

• Efficiency ratio improved to 55.1% from 61.2% a year ago, reflecting faster growth in income than expenses.

Balance sheet and capital

• Total assets reached $5.0 billion at March 31, 2025, up 8.1% since June 30, 2024, driven by increases in loans, cash equivalents, and AFS securities.

• Gross loans were $4.02 billion, up 6.7% year-over-year, with net loans at $3.97 billion after a $54.9 million ACL.

• Stockholders’ equity was $528.8 million, up 8.2% from June 30, 2024.

• Brokered deposits totaled $235.6 million, up $61.8 million year-over-year but down $18.5 million from the previous quarter.

• Deposit growth outpaced loan growth, leading to a significant increase in cash equivalents and time deposits.

Credit quality and loan portfolio

• Nonperforming loans rose to $22 million (0.55% of gross loans), mainly due to new commercial relationships and specific property loans.

• Adversely classified loans rose to $49 million (1.2% of total loans), with total delinquent loans at $24 million; no single loan over $1.5 million.

• ACL covered 250% of nonperforming loans and represented 1.37% of gross loans.

• Net charge-offs annualized at 0.11% of average loans, up from 0.01% a year ago, mainly due to a single agricultural relationship.

• Credit issues remain modest compared to industry, with strong underwriting and reserves in place.