Southern Missouri Bancorp (NASDAQ: SMBC) grows earnings and loan portfolio

Q: How did Southern Missouri Bancorp (SMBC) perform in the quarter ended December 31, 2025?

Southern Missouri Bancorp generated net income of $18.2 million for the quarter ended December 31, 2025, up from $14.7 million a year earlier. Earnings per share rose to $1.62 from $1.30 , reflecting stronger profitability despite higher credit loss provisions.

Q: What is Southern Missouri Bancorp’s asset and loan base as of December 31, 2025?

As of December 31, 2025, Southern Missouri Bancorp had total assets of $5.09 billion . Net loans receivable were $4.17 billion , up from $4.05 billion at June 30, 2025, indicating continued loan growth across real estate, commercial, agriculture, and consumer portfolios.

Q: How did deposits and borrowings change at Southern Missouri Bancorp (SMBC) during 2025?

Deposits at Southern Missouri Bancorp were $4.31 billion at December 31, 2025, slightly higher than $4.28 billion at June 30, 2025. Federal Home Loan Bank advances were $102.0 million and securities sold under agreements to repurchase totaled $20.0 million , modestly above June levels.

Q: How did cash flows look for Southern Missouri Bancorp (SMBC) in the six months ended December 31, 2025?

Southern Missouri Bancorp generated $37.6 million of net cash from operating activities in the six months ended December 31, 2025. Net cash used in investing activities was $112.2 million , driven mainly by loan growth, while financing activities provided $15.9 million , primarily from deposit changes and repurchase agreements.

Filing Impact

(Moderate)

Filing Sentiment

(Neutral)

Form Type

10-Q

Rhea-AI Filing Summary

Southern Missouri Bancorp, Inc. reported solid growth for the quarter and six months ended December 31, 2025. Quarterly net income rose to $18.2 million from $14.7 million a year earlier, with basic and diluted earnings per share increasing to $1.62 from $1.30. Six-month net income reached $33.8 million versus $27.1 million and earnings per share improved to $3.00 from $2.40.

Total assets were $5.09 billion as of December 31, 2025, up from $5.02 billion in June, driven mainly by net loans of $4.17 billion. Deposits increased slightly to $4.31 billion. Net interest income for the six months climbed to $85.3 million, while provision for credit losses also increased to $6.2 million, reflecting ongoing credit risk management. Operating cash flow was $37.6 million, with significant loan growth contributing to $112.2 million of net cash used in investing activities.

02/06/2026 - 04:52 PM

0000916907--06-302026Q2falseSOUTHERN MISSOURI BANCORP, INC.http://fasb.org/us-gaap/2025#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2025#AccountsPayableAndOtherAccruedLiabilitiesP7YP3YP5YP6Mhttp://fasb.org/us-gaap/2025#PropertyPlantAndEquipmentNethttp://fasb.org/us-gaap/2025#AccountsPayableAndOtherAccruedLiabilitieshttp://fasb.org/us-gaap/2025#SecuredOvernightFinancingRateSofrMemberhttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetshttp://fasb.org/us-gaap/2025#AccountsPayableAndOtherAccruedLiabilitieshttp://fasb.org/us-gaap/2025#PrepaidExpenseAndOtherAssetshttp://fasb.org/us-gaap/2025#AccountsPayableAndOtherAccruedLiabilities0000http://www.bankwithsouthern.com/20251231#ForeclosedAndRepossessedAssetsMemberhttp://www.bankwithsouthern.com/20251231#ForeclosedAndRepossessedAssetsMember10000916907us-gaap:TreasuryStockCommonMember2025-10-012025-12-310000916907us-gaap:TreasuryStockCommonMember2025-07-012025-12-310000916907smbc:FortuneFinancialCorporationMembersmbc:SubordinatedNotesIssuedInMay2021Member2025-12-310000916907smbc:FortuneFinancialCorporationMembersmbc:SubordinatedNotesIssuedInMay2021Member2025-06-300000916907smbc:TrustPreferredSecuritiesMember2025-06-300000916907us-gaap:AdditionalPaidInCapitalMember2025-10-012025-12-310000916907us-gaap:TreasuryStockCommonMember2025-12-310000916907us-gaap:RetainedEarningsMember2025-12-310000916907us-gaap:CommonStockMember2025-12-310000916907us-gaap:AdditionalPaidInCapitalMember2025-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-12-310000916907us-gaap:TreasuryStockCommonMember2025-09-300000916907us-gaap:RetainedEarningsMember2025-09-300000916907us-gaap:CommonStockMember2025-09-300000916907us-gaap:AdditionalPaidInCapitalMember2025-09-300000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300000916907us-gaap:TreasuryStockCommonMember2025-06-300000916907us-gaap:RetainedEarningsMember2025-06-300000916907us-gaap:CommonStockMember2025-06-300000916907us-gaap:AdditionalPaidInCapitalMember2025-06-300000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300000916907us-gaap:TreasuryStockCommonMember2024-12-310000916907us-gaap:RetainedEarningsMember2024-12-310000916907us-gaap:CommonStockMember2024-12-310000916907us-gaap:AdditionalPaidInCapitalMember2024-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000916907us-gaap:TreasuryStockCommonMember2024-09-300000916907us-gaap:RetainedEarningsMember2024-09-300000916907us-gaap:CommonStockMember2024-09-300000916907us-gaap:AdditionalPaidInCapitalMember2024-09-300000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000916907us-gaap:TreasuryStockCommonMember2024-06-300000916907us-gaap:RetainedEarningsMember2024-06-300000916907us-gaap:CommonStockMember2024-06-300000916907us-gaap:AdditionalPaidInCapitalMember2024-06-300000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000916907srt:MinimumMemberus-gaap:EquipmentMember2025-12-310000916907srt:MinimumMemberus-gaap:BuildingMember2025-12-310000916907srt:MaximumMemberus-gaap:EquipmentMember2025-12-310000916907srt:MaximumMemberus-gaap:BuildingMember2025-12-310000916907us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2025-12-310000916907smbc:ConsolidatedBalanceSheetMember2025-12-310000916907smbc:ConsolidatedBalanceSheetMember2025-06-300000916907us-gaap:ResidentialRealEstateMemberus-gaap:HomeEquityLoanMember2025-12-310000916907us-gaap:ResidentialRealEstateMemberus-gaap:HomeEquityLoanMember2025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageServicingAssetsMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageServicingAssetsMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageServicingAssetsMember2025-06-300000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2025-06-300000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateMember2025-06-300000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-06-300000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherDebtSecuritiesMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageServicingAssetsMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMembersmbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-06-300000916907srt:MinimumMember2025-12-310000916907srt:MaximumMember2025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2025-06-300000916907us-gaap:InterestRateSwapMember2025-10-012025-12-310000916907us-gaap:InterestRateSwapMember2025-07-012025-12-310000916907us-gaap:InterestRateSwapMember2024-10-012024-12-310000916907us-gaap:InterestRateSwapMember2024-07-012024-12-310000916907srt:MinimumMemberus-gaap:CoreDepositsMember2025-12-310000916907srt:MaximumMemberus-gaap:CoreDepositsMember2025-12-310000916907us-gaap:ServicingContractsMember2025-12-310000916907us-gaap:ServicingContractsMember2025-06-300000916907us-gaap:OtherIntangibleAssetsMember2025-12-310000916907us-gaap:CoreDepositsMember2025-12-310000916907us-gaap:OtherIntangibleAssetsMember2025-06-300000916907us-gaap:CoreDepositsMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PaymentDeferralMember2025-07-012025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PrincipalForgivenessMember2025-07-012025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:PaymentDeferralMember2025-07-012025-12-310000916907us-gaap:PrincipalForgivenessMember2025-07-012025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2025-10-012025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-10-012025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-10-012025-12-310000916907srt:OtherPropertyMember2025-10-012025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2025-07-012025-12-310000916907srt:OtherPropertyMember2025-07-012025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-10-012024-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2024-10-012024-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2024-10-012024-12-310000916907srt:OtherPropertyMember2024-10-012024-12-310000916907smbc:AgricultureProductionPortfolioMember2024-10-012024-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-07-012024-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2024-07-012024-12-310000916907srt:OtherPropertyMember2024-07-012024-12-310000916907smbc:AgricultureProductionPortfolioMember2024-07-012024-12-310000916907us-gaap:RealEstateMember2025-12-310000916907us-gaap:RealEstateMember2025-06-300000916907smbc:AgricultureProductionPortfolioMember2025-10-012025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-10-012024-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2024-10-012024-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-07-012024-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2024-07-012024-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-10-012025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-10-012025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2025-10-012025-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2025-10-012025-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2025-10-012025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-07-012025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-07-012025-12-310000916907smbc:AgricultureProductionPortfolioMember2025-07-012025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2024-10-012024-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2024-10-012024-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2024-10-012024-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2024-07-012024-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2024-07-012024-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2024-07-012024-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2024-07-012024-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-09-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-09-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2025-09-300000916907us-gaap:RealEstateMembersrt:MultifamilyMember2025-09-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-09-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-09-300000916907us-gaap:ConsumerPortfolioSegmentMember2025-09-300000916907srt:OtherPropertyMember2025-09-300000916907smbc:CommercialAndIndustrialPortfolioMember2025-09-300000916907smbc:AgricultureProductionPortfolioMember2025-09-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2024-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2024-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2024-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2024-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2024-12-310000916907srt:OtherPropertyMember2024-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2024-12-310000916907smbc:AgricultureProductionPortfolioMember2024-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-09-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-09-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2024-09-300000916907us-gaap:RealEstateMembersrt:MultifamilyMember2024-09-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2024-09-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2024-09-300000916907us-gaap:ConsumerPortfolioSegmentMember2024-09-300000916907srt:OtherPropertyMember2024-09-300000916907smbc:CommercialAndIndustrialPortfolioMember2024-09-300000916907smbc:AgricultureProductionPortfolioMember2024-09-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2024-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2024-06-300000916907us-gaap:RealEstateMembersrt:MultifamilyMember2024-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2024-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2024-06-300000916907us-gaap:ConsumerPortfolioSegmentMember2024-06-300000916907srt:OtherPropertyMember2024-06-300000916907smbc:CommercialAndIndustrialPortfolioMember2024-06-300000916907smbc:AgricultureProductionPortfolioMember2024-06-300000916907us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-12-310000916907us-gaap:MortgageBackedSecuritiesMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-12-310000916907us-gaap:CollateralizedMortgageObligationsMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-12-310000916907us-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-12-310000916907us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-06-300000916907us-gaap:MortgageBackedSecuritiesMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-06-300000916907us-gaap:CollateralizedMortgageObligationsMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-06-300000916907us-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-06-3000009169072025-09-3000009169072024-09-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2024-07-012025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2024-07-012025-06-300000916907us-gaap:RetainedEarningsMember2025-10-012025-12-310000916907us-gaap:RetainedEarningsMember2025-07-012025-12-310000916907us-gaap:RetainedEarningsMember2024-10-012024-12-310000916907us-gaap:RetainedEarningsMember2024-07-012024-12-310000916907smbc:InterestRateSwapOneMember2025-06-300000916907smbc:InterestRateSwapTwoMember2024-06-300000916907smbc:InterestRateSwapTwoMemberus-gaap:NondesignatedMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-12-310000916907smbc:InterestRateSwapOneMemberus-gaap:NondesignatedMember2025-12-310000916907us-gaap:FairValueMeasurementsRecurringMember2025-12-310000916907us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-06-300000916907us-gaap:FairValueMeasurementsRecurringMember2025-06-300000916907us-gaap:InterestRateSwapMember2025-12-310000916907us-gaap:InterestRateSwapMember2025-06-300000916907us-gaap:FairValueInputsLevel3Member2025-12-310000916907us-gaap:FairValueInputsLevel3Member2025-06-300000916907srt:MaximumMember2025-07-012025-12-310000916907smbc:TrustPreferredSecuritiesMember2025-12-310000916907smbc:PeoplesServiceCompanyIncMember2025-12-310000916907smbc:OzarksLegacyCommunityFinancialIncMember2025-12-310000916907smbc:FortuneFinancialCorporationMembersmbc:SubordinatedNotesIssuedInMay2021Member2021-05-310000916907smbc:FortuneFinancialCorporationMembersmbc:SubordinatedNotesIssuedInMay2021Member2022-02-280000916907smbc:FortuneFinancialCorporationMembersmbc:SubordinatedNotesIssuedInMay2021Member2021-05-012021-05-3100009169072024-12-3100009169072024-06-300000916907us-gaap:FairValueInputsLevel1Member2025-12-310000916907us-gaap:FairValueInputsLevel1Member2025-06-300000916907us-gaap:InterestBearingDepositsMember2025-12-310000916907us-gaap:DemandDepositsMember2025-12-310000916907us-gaap:InterestBearingDepositsMember2025-06-300000916907us-gaap:DemandDepositsMember2025-06-300000916907us-gaap:USStatesAndPoliticalSubdivisionsMember2025-12-310000916907us-gaap:OtherDebtSecuritiesMember2025-12-310000916907us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-12-310000916907us-gaap:DebtSecuritiesMember2025-12-310000916907us-gaap:CorporateMember2025-12-310000916907us-gaap:CommercialMortgageBackedSecuritiesMember2025-12-310000916907us-gaap:CollateralizedMortgageObligationsMember2025-12-310000916907us-gaap:AssetBackedSecuritiesMember2025-12-310000916907smbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-12-310000916907us-gaap:USStatesAndPoliticalSubdivisionsMember2025-06-300000916907us-gaap:OtherDebtSecuritiesMember2025-06-300000916907us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2025-06-300000916907us-gaap:DebtSecuritiesMember2025-06-300000916907us-gaap:CorporateMember2025-06-300000916907us-gaap:CommercialMortgageBackedSecuritiesMember2025-06-300000916907us-gaap:CollateralizedMortgageObligationsMember2025-06-300000916907us-gaap:AssetBackedSecuritiesMember2025-06-300000916907smbc:MortgageBackedSecuritiesAndCollateralizedMortgageObligationsMember2025-06-300000916907us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-12-310000916907us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-06-300000916907us-gaap:OtherDebtSecuritiesMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-12-310000916907us-gaap:OtherDebtSecuritiesMemberus-gaap:AssetPledgedAsCollateralMemberus-gaap:DepositsMember2025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2025-12-310000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2025-12-310000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2025-06-300000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2025-06-300000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2025-06-300000916907smbc:StockOptionsAndRestrictedStockMember2025-10-012025-12-310000916907smbc:StockOptionsAndRestrictedStockMember2025-07-012025-12-310000916907smbc:StockOptionsAndRestrictedStockMember2024-10-012024-12-310000916907smbc:StockOptionsAndRestrictedStockMember2024-07-012024-12-310000916907us-gaap:AdditionalPaidInCapitalMember2025-07-012025-12-310000916907us-gaap:AdditionalPaidInCapitalMember2024-10-012024-12-310000916907us-gaap:AdditionalPaidInCapitalMember2024-07-012024-12-310000916907smbc:TrustPreferredSecuritiesMember2025-07-012025-12-310000916907smbc:ConsolidatedStatementOfIncomeMember2025-10-012025-12-310000916907smbc:ConsolidatedStatementOfIncomeMember2025-07-012025-12-310000916907smbc:ConsolidatedStatementOfIncomeMember2024-10-012024-12-310000916907smbc:ConsolidatedStatementOfIncomeMember2024-07-012024-12-310000916907smbc:SupplementalDisclosuresOfCashFlowInformationMembersmbc:CashPaidForAmountsIncludedInTheMeasurementOfLeaseLiabilitiesMember2025-10-012025-12-310000916907smbc:SupplementalDisclosuresOfCashFlowInformationMembersmbc:CashPaidForAmountsIncludedInTheMeasurementOfLeaseLiabilitiesMember2025-07-012025-12-310000916907smbc:SupplementalDisclosuresOfCashFlowInformationMembersmbc:CashPaidForAmountsIncludedInTheMeasurementOfLeaseLiabilitiesMember2024-10-012024-12-310000916907smbc:SupplementalDisclosuresOfCashFlowInformationMembersmbc:CashPaidForAmountsIncludedInTheMeasurementOfLeaseLiabilitiesMember2024-07-012024-12-310000916907smbc:ScenarioTwoMemberus-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-07-012025-12-310000916907smbc:ScenarioOneMemberus-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-07-012025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2025-07-012025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:HomeEquityLoanMember2025-07-012025-12-310000916907srt:MaximumMemberus-gaap:ConsumerBorrowerMembersrt:SingleFamilyMember2025-07-012025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:AutomobileLoanMember2025-07-012025-12-310000916907srt:MaximumMembersmbc:ConstructionPortfolioSegmentMember2025-07-012025-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2025-07-012025-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2025-07-012025-12-310000916907srt:MaximumMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-07-012025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel2Member2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel2Member2024-07-012025-06-3000009169072024-07-012025-06-300000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2025-07-012025-12-310000916907us-gaap:FairValueMeasurementsNonrecurringMember2025-07-012025-12-310000916907us-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsHeldForSaleMember2024-07-012024-12-310000916907us-gaap:FairValueMeasurementsNonrecurringMember2024-07-012024-12-310000916907srt:MaximumMemberus-gaap:RealEstateMembersrt:SingleFamilyMember2025-07-012025-12-310000916907us-gaap:CoreDepositsMember2025-07-012025-12-310000916907us-gaap:PaymentDeferralMember2025-10-012025-12-310000916907us-gaap:PaymentDeferralMember2025-07-012025-12-310000916907us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PaymentDeferralMember2024-10-012024-12-310000916907us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PaymentDeferralMember2024-07-012024-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:SubstandardMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:PassMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:PassMember2025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:CollateralPledgedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:ConsumerBorrowerMembersmbc:OtherCollateralizedAssetsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:ConsumerBorrowerMembersmbc:CommercialAndResidentialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:CommercialBorrowerMemberus-gaap:CollateralPledgedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:CommercialBorrowerMembersmbc:CommercialAndResidentialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-12-310000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2025-12-310000916907us-gaap:RealEstateMembersrt:MultifamilyMember2025-12-310000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-12-310000916907us-gaap:LandMembersmbc:ConstructionPortfolioSegmentMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:CollateralPledgedMembersrt:SingleFamilyMember2025-12-310000916907us-gaap:CollateralPledgedMembersmbc:ConstructionPortfolioSegmentMember2025-12-310000916907us-gaap:CollateralPledgedMembersmbc:CommercialAndIndustrialPortfolioMember2025-12-310000916907us-gaap:CollateralPledgedMembersmbc:AgricultureRealEstatePortfolioMember2025-12-310000916907us-gaap:CollateralPledgedMembersmbc:AgricultureProductionPortfolioMember2025-12-310000916907srt:OtherPropertyMemberus-gaap:PassMember2025-12-310000916907srt:OtherPropertyMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907smbc:OtherCollateralizedAssetsMembersmbc:CommercialAndIndustrialPortfolioMember2025-12-310000916907smbc:OtherCollateralizedAssetsMembersmbc:AgricultureProductionPortfolioMember2025-12-310000916907smbc:ConstructionPortfolioSegmentMemberus-gaap:SubstandardMember2025-12-310000916907smbc:ConstructionPortfolioSegmentMemberus-gaap:PassMember2025-12-310000916907smbc:ConstructionPortfolioSegmentMemberus-gaap:CriticizedMember2025-12-310000916907smbc:CommercialAndResidentialRealEstateMembersrt:SingleFamilyMember2025-12-310000916907smbc:CommercialAndResidentialRealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-12-310000916907smbc:CommercialAndResidentialRealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:SubstandardMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:PassMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:DoubtfulMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:CriticizedMember2025-12-310000916907smbc:AgricultureRealEstatePortfolioMemberus-gaap:SubstandardMember2025-12-310000916907smbc:AgricultureRealEstatePortfolioMemberus-gaap:PassMember2025-12-310000916907smbc:AgricultureRealEstatePortfolioMemberus-gaap:CriticizedMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:SubstandardMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:PassMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancialAssetPastDueMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-12-310000916907smbc:AgricultureProductionPortfolioMemberus-gaap:CriticizedMember2025-12-310000916907us-gaap:SubstandardMember2025-12-310000916907us-gaap:PassMember2025-12-310000916907us-gaap:LandMember2025-12-310000916907us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-12-310000916907us-gaap:FinancingReceivables60To89DaysPastDueMember2025-12-310000916907us-gaap:FinancingReceivables30To59DaysPastDueMember2025-12-310000916907us-gaap:FinancialAssetPastDueMember2025-12-310000916907us-gaap:FinancialAssetNotPastDueMember2025-12-310000916907us-gaap:DoubtfulMember2025-12-310000916907us-gaap:CriticizedMember2025-12-310000916907us-gaap:ConsumerPortfolioSegmentMember2025-12-310000916907us-gaap:CollateralPledgedMember2025-12-310000916907srt:OtherPropertyMember2025-12-310000916907smbc:OtherCollateralizedAssetsMember2025-12-310000916907smbc:ConstructionPortfolioSegmentMember2025-12-310000916907smbc:CommercialAndResidentialRealEstateMember2025-12-310000916907smbc:CommercialAndIndustrialPortfolioMember2025-12-310000916907smbc:AgricultureRealEstatePortfolioMember2025-12-310000916907smbc:AgricultureProductionPortfolioMember2025-12-310000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:PassMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:PassMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:PassMember2025-06-300000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:RealEstateMembersrt:MultifamilyMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:PassMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:PassMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:ConsumerBorrowerMemberus-gaap:CollateralPledgedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:ConsumerBorrowerMembersmbc:OtherCollateralizedAssetsMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:ConsumerBorrowerMembersmbc:CommercialAndResidentialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:RealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:CommercialBorrowerMemberus-gaap:CollateralPledgedMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:CommercialBorrowerMembersmbc:CommercialAndResidentialRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2025-06-300000916907us-gaap:RealEstateMembersrt:SingleFamilyMember2025-06-300000916907us-gaap:RealEstateMembersrt:MultifamilyMember2025-06-300000916907us-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-06-300000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-06-300000916907us-gaap:LandMembersmbc:ConstructionPortfolioSegmentMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:SubstandardMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:PassMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:CollateralPledgedMembersrt:SingleFamilyMember2025-06-300000916907us-gaap:CollateralPledgedMembersmbc:ConstructionPortfolioSegmentMember2025-06-300000916907us-gaap:CollateralPledgedMembersmbc:CommercialAndIndustrialPortfolioMember2025-06-300000916907us-gaap:CollateralPledgedMembersmbc:AgricultureRealEstatePortfolioMember2025-06-300000916907srt:OtherPropertyMemberus-gaap:PassMember2025-06-300000916907srt:OtherPropertyMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907smbc:OtherCollateralizedAssetsMembersmbc:CommercialAndIndustrialPortfolioMember2025-06-300000916907smbc:CommercialAndResidentialRealEstateMembersrt:SingleFamilyMember2025-06-300000916907smbc:CommercialAndResidentialRealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-06-300000916907smbc:CommercialAndResidentialRealEstateMembersmbc:CommercialAndIndustrialPortfolioMember2025-06-300000916907smbc:CommercialAndResidentialRealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:SubstandardMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:PassMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMemberus-gaap:CriticizedMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:SubstandardMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:PassMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancialAssetPastDueMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:FinancialAssetNotPastDueMember2025-06-300000916907smbc:AgricultureProductionPortfolioMemberus-gaap:CriticizedMember2025-06-300000916907us-gaap:SubstandardMember2025-06-300000916907us-gaap:PassMember2025-06-300000916907us-gaap:LandMember2025-06-300000916907us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2025-06-300000916907us-gaap:FinancingReceivables60To89DaysPastDueMember2025-06-300000916907us-gaap:FinancingReceivables30To59DaysPastDueMember2025-06-300000916907us-gaap:FinancialAssetPastDueMember2025-06-300000916907us-gaap:FinancialAssetNotPastDueMember2025-06-300000916907us-gaap:CriticizedMember2025-06-300000916907us-gaap:ConsumerPortfolioSegmentMember2025-06-300000916907us-gaap:CollateralPledgedMember2025-06-300000916907srt:OtherPropertyMember2025-06-300000916907smbc:OtherCollateralizedAssetsMember2025-06-300000916907smbc:CommercialAndResidentialRealEstateMember2025-06-300000916907smbc:CommercialAndIndustrialPortfolioMember2025-06-300000916907smbc:AgricultureProductionPortfolioMember2025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMembersmbc:ThirdPartyAppraisalMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMembersmbc:CollateralValueMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMembersmbc:ThirdPartyAppraisalMember2024-07-012025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMembersmbc:CollateralValueMember2024-07-012025-06-300000916907srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2025-07-012025-12-310000916907srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2025-07-012025-12-310000916907srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2025-07-012025-12-310000916907srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2025-07-012025-12-310000916907srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2024-07-012025-06-300000916907srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2024-07-012025-06-300000916907srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMemberus-gaap:MeasurementInputDiscountRateMembersmbc:ThirdPartyAppraisalMember2024-07-012025-06-300000916907srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMemberus-gaap:MeasurementInputDiscountRateMembersmbc:CollateralValueMember2024-07-012025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:ForeclosedAndRepossessedAssetsMember2024-07-012025-06-300000916907us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMembersmbc:CollateralDependentLoansMember2024-07-012025-06-300000916907srt:MaximumMemberus-gaap:RealEstateMembersmbc:ConstructionPortfolioSegmentMember2025-07-012025-12-310000916907srt:MinimumMembersmbc:ConstructionPortfolioSegmentMember2025-07-012025-12-310000916907srt:MinimumMembersrt:MultifamilyMember2025-07-012025-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-10-012025-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-10-012024-12-3100009169072024-10-012024-12-310000916907us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-12-310000916907srt:MaximumMembersrt:MultifamilyMember2025-07-012025-12-310000916907smbc:OzarksLegacyCommunityFinancialIncMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2025-10-012025-12-310000916907smbc:PeoplesServiceCompanyIncMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2025-07-012025-12-310000916907smbc:PeoplesServiceCompanyIncMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-07-012025-06-300000916907smbc:OzarksLegacyCommunityFinancialIncMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-07-012025-06-300000916907smbc:PeoplesServiceCompanyIncMember2014-08-012014-08-310000916907smbc:OzarksLegacyCommunityFinancialIncMember2013-10-012013-10-3100009169072024-07-012024-12-310000916907us-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-07-012025-12-310000916907srt:MaximumMemberus-gaap:RealEstateMembersmbc:AgricultureRealEstatePortfolioMember2025-07-012025-12-310000916907us-gaap:FairValueInputsLevel2Member2025-12-3100009169072025-12-310000916907us-gaap:FairValueInputsLevel2Member2025-06-3000009169072025-06-3000009169072025-10-012025-12-3100009169072026-02-0600009169072025-07-012025-12-31smbc:DerivativeInstrumentsmbc:segmentxbrli:sharesiso4217:USDxbrli:puresmbc:loansmbc:subsidiarysmbc:propertysmbc:itemiso4217:USDxbrli:sharessmbc:security

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-23406


Southern Missouri Bancorp, Inc.
(Exact name of registrant as specified in its charter)

Missouri		43-1665523
(State or jurisdiction of incorporation)		(IRS employer id. no.)

2991 Oak Grove Road Poplar Bluff, MO		63901
(Address of principal executive offices)		(Zip code)

(573) 778-1800

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	SMBC	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes	☒	No	☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes	☒	No	☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):


Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12 b-2 of the Exchange Act)


Yes	☐	No	☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:


Class		Outstanding at February 6, 2026
Common Stock, Par Value $.01		11,108,279 shares

Table of Contents

SOUTHERN MISSOURI BANCORP, INC.

FORM 10-Q

INDEX


PART I.		Financial Information		PAGE NO.

Item 1.		Condensed Consolidated Financial Statements		3

		- Condensed Consolidated Balance Sheets		3

		- Condensed Consolidated Statements of Income		4

		- Condensed Consolidated Statements of Comprehensive Income		5

		- Condensed Consolidated Statements of Stockholders’ Equity		6

		- Condensed Consolidated Statements of Cash Flows		7

		- Notes to Condensed Consolidated Financial Statements		8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		42

Item 3.		Quantitative and Qualitative Disclosures about Market Risk		60

Item 4.		Controls and Procedures		63

PART II.		OTHER INFORMATION		64

Item 1.		Legal Proceedings		64

Item 1a.		Risk Factors		64

Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		64

Item 3.		Defaults upon Senior Securities		64

Item 4.		Mine Safety Disclosures		64

Item 5.		Other Information		64

Item 6.		Exhibits		66

		- Signature Page		68

Table of Contents

PART I: Item 1: Condensed Consolidated Financial Statements

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND JUNE 30, 2025


		December 31, 2025		June 30, 2025
(dollars in thousands)		(unaudited)
Assets
Cash and cash equivalents		$	134,061	$	192,859
Interest-bearing time deposits			248		246
Available for sale securities			444,965		460,844
Stock in FHLB of Des Moines			9,406		9,361
Stock in Federal Reserve Bank of St. Louis			9,146		9,139
Loans held for sale			1,271		431
Loans receivable, net of ACL of $54,465 and $51,629 at December 31, 2025 and June 30, 2025, respectively			4,172,091		4,048,961
Accrued interest receivable			32,603		26,018
Premises and equipment, net			94,560		95,982
Bank owned life insurance – cash surrender value			76,793		75,691
Goodwill			50,727		50,727
Other intangible assets, net			21,322		22,994
Prepaid expenses and other assets			47,194		26,354
Total assets		$	5,094,387	$	5,019,607

Liabilities and Stockholders' Equity
Deposits		$	4,308,334	$	4,281,368
Securities sold under agreements to repurchase			20,000		15,000
Advances from FHLB			102,041		104,052
Accounts payable and other liabilities			59,325		37,101
Accrued interest payable			14,092		14,186
Subordinated debt			23,235		23,208
Total liabilities			4,527,027		4,474,915

Commitments and contingencies

Common stock, $.01 par value; 25,000,000 shares authorized; 11,980,632 and 11,980,887 shares issued at December 31, 2025 and June 30, 2025, respectively			120		120
Additional paid-in capital			221,589		221,347
Retained earnings			387,766		359,576
Treasury stock of 837,899 and 681,420 shares at December 31, 2025 and June 30, 2025, respectively, at cost			(33,476)		(24,973)
Accumulated other comprehensive loss			(8,639)		(11,378)
Total stockholders' equity			567,360		544,692
Total liabilities and stockholders' equity		$	5,094,387	$	5,019,607

See Notes to Condensed Consolidated Financial Statements

-3-

Table of Contents

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND SIX- MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 (Unaudited)


	Three months ended				Six months ended
	December 31,				December 31,
(dollars in thousands except per share data)	2025		2024		2025		2024
Interest Income
Loans	$	65,975	$	63,082	$	132,434	$	124,835
Investment securities		1,265		1,483		2,570		3,105
Mortgage-backed securities		3,933		4,075		8,084		8,001
Other interest-earning assets		1,059		784		2,174		862
Total interest income		72,232		69,424		145,262		136,803
Interest Expense
Deposits		27,699		29,538		56,639		58,334
Securities sold under agreements to repurchase		204		226		404		386
Advances from FHLB		1,080		1,099		2,161		2,425
Subordinated debt		379		418		770		853
Total interest expense		29,362		31,281		59,974		61,998
Net Interest Income		42,870		38,143		85,288		74,805
Provision for Credit Losses		1,680		932		6,180		3,091
Net Interest Income After Provision for Credit Losses		41,190		37,211		79,108		71,714
Noninterest Income
Deposit account charges and related fees		2,429		2,237		4,794		4,421
Bank card interchange income		1,614		1,301		3,144		2,801
Loan servicing fees		250		232		513		518
Other loan fees		164		944		358		2,007
Net realized gains on sale of loans		167		133		342		494
Earnings on bank owned life insurance		552		522		1,100		1,039
Insurance brokerage commissions		345		300		664		587
Wealth management fees		936		843		1,788		1,573
Other income		319		353		646		599
Total noninterest income		6,776		6,865		13,349		14,039
Noninterest Expense
Compensation and benefits		13,651		13,737		26,715		28,134
Occupancy and equipment, net		3,834		3,585		7,622		7,274
Data processing expense		2,666		2,224		5,179		4,395
Telecommunications expense		309		354		656		782
Deposit insurance premiums		600		588		1,220		1,060
Legal and professional fees		478		619		1,553		1,827
Advertising		538		442		1,152		988
Postage and office supplies		333		283		633		589
Intangibles amortization		808		897		1,664		1,794
Foreclosed property expenses/losses		31		73		90		85
Other operating expense		2,022		2,074		3,837		3,790
Total noninterest expense		25,270		24,876		50,321		50,718
Income Before Income Taxes		22,696		19,200		42,136		35,035
Total Income Taxes		4,546		4,547		8,336		7,925
Net Income	$	18,150	$	14,653	$	33,800	$	27,110

Basic earnings per share	$	1.62	$	1.30	$	3.00	$	2.40
Diluted earnings per share	$	1.62	$	1.30	$	3.00	$	2.40
Dividends paid per share	$	0.25	$	0.23	$	0.50	$	0.46

See Notes to Condensed Consolidated Financial Statements

-4-

Table of Contents

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 (Unaudited)


	Three months ended				Six months ended
	December 31,				December 31,
(dollars in thousands)	2025		2024		2025		2024

Net Income	$	18,150	$	14,653	$	33,800	$	27,110
Other comprehensive (loss) income:
Unrealized (losses) gains on securities available-for-sale		(346)		(7,519)		3,512		1,313
Tax benefit (expense)		76		1,654		(773)		(289)
Total other comprehensive (loss) income		(270)		(5,865)		2,739		1,024
Comprehensive Income	$	17,880	$	8,788	$	36,539	$	28,134

See Notes to Condensed Consolidated Financial Statements

-5-

Table of Contents

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 (Unaudited)


	For the three- and six-month periods ended December 31, 2025
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury			Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Loss		Equity

BALANCE AS OF SEPTEMBER 30, 2025	$	120	$	221,483	$	372,406	$	(25,419)	$	(8,369)	$	560,221

Net Income						18,150						18,150
Change in unrealized loss on available for sale securities										(270)		(270)
Dividends paid on common stock ($.25 per share)						(2,790)						(2,790)
Stock option expense				106								106
Treasury stock purchased								(8,057)				(8,057)
BALANCE AS OF DECEMBER 31, 2025	$	120	$	221,589	$	387,766	$	(33,476)	$	(8,639)	$	567,360

BALANCE AS OF JUNE 30, 2025	$	120	$	221,347	$	359,576	$	(24,973)	$	(11,378)	$	544,692

Net Income						33,800						33,800
Change in unrealized loss on available for sale securities										2,739		2,739
Dividends paid on common stock ($.50 per share)						(5,610)						(5,610)
Stock option expense				203								203
Stock grant expense				39								39
Treasury stock purchased								(8,503)				(8,503)
BALANCE AS OF DECEMBER 31, 2025	$	120	$	221,589	$	387,766	$	(33,476)	$	(8,639)	$	567,360


	For the three- and six-month periods ended December 31, 2024
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury		Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Loss		Equity

BALANCE AS OF SEPTEMBER 30, 2024	$	120	$	219,808	$	321,240	$	(24,973)	$	(10,566)	$	505,629

Net Income						14,653						14,653
Change in unrealized loss on available for sale securities										(5,865)		(5,865)
Dividends paid on common stock ($.23 per share)						(2,596)						(2,596)
Stock option expense				90								90
Stock grant expense				460								460
BALANCE AS OF DECEMBER 31, 2024	$	120	$	220,358	$	333,297	$	(24,973)	$	(16,431)	$	512,371

BALANCE AS OF JUNE 30, 2024	$	120	$	219,680	$	311,376	$	(24,973)	$	(17,455)	$	488,748

Net Income						27,110						27,110
Change in unrealized loss on available for sale securities										1,024		1,024
Dividends paid on common stock ($.46 per share)						(5,189)						(5,189)
Stock option expense				179								179
Stock grant expense				499								499
BALANCE AS OF DECEMBER 31, 2024	$	120	$	220,358	$	333,297	$	(24,973)	$	(16,431)	$	512,371

See Notes to Condensed Consolidated Financial Statements

-6-

Table of Contents

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX- MONTH PERIODS ENDED DECEMBER 31, 2025 AND 2024 (Unaudited)


	Six months ended
	December 31,
(dollars in thousands)	2025		2024

Cash Flows From Operating Activities:
Net Income	$	33,800	$	27,110
Items not requiring (providing) cash:
Depreciation		3,288		3,222
Loss on disposal of fixed assets		—		48
Stock option and stock grant expense		242		678
Loss (gain) on sale/write-down of foreclosed property		14		(19)
Amortization of intangible assets		1,664		1,794
Accretion of purchase accounting adjustments		(1,486)		(1,887)
Increase in cash surrender value of bank owned life insurance (BOLI)		(1,100)		(1,039)
Provision for credit losses		6,180		3,091
Net amortization of premiums and discounts on securities		(436)		(844)
Originations of loans held for sale		(13,115)		(7,977)
Proceeds from sales of loans held for sale		12,617		9,089
Gain on sales of loans held for sale		(342)		(494)
Changes in:
Accrued interest receivable		(6,585)		(4,254)
Prepaid expenses and other assets		662		968
Accounts payable and other liabilities		1,261		2,573
Deferred income taxes		980		—
Accrued interest payable		(94)		(1,929)
Net cash provided by operating activities		37,550		30,130
Cash Flows From Investing Activities:
Net increase in loans		(129,343)		(176,829)
Net change in interest-bearing deposits		—		248
Proceeds from maturities of available for sale securities		38,778		33,844
Purchases of Federal Home Loan Bank stock		(221)		(290)
Redemptions of Federal Home Loan Bank stock		176		—
Purchases of Federal Reserve Bank of St. Louis stock		(7)		(7)
Purchases of available-for-sale securities		(18,951)		(71,844)
Purchases of long-term investments and other assets		(150)		(50)
Redemptions of long-term investments and other assets		432		—
Purchases of premises and equipment		(1,998)		(3,415)
Investments in state & federal tax credits		(1,431)		(1,934)
Proceeds from sale of foreclosed assets		508		2,115
Net cash used in investing activities		(112,207)		(218,162)
Cash Flows From Financing Activities:
Net increase in demand deposits and savings accounts		83,581		41,536
Net (decrease) increase in certificates of deposits		(56,582)		226,040
Net increase in securities sold under agreements to repurchase		5,000		5,602
Proceeds from Federal Home Loan Bank advances		1,300		260,000
Repayments of Federal Home Loan Bank advances		(3,327)		(255,027)
Purchases of treasury stock		(8,503)		—
Dividends paid on common stock		(5,610)		(5,189)
Net cash provided by financing activities		15,859		272,962
(Decrease) increase in cash and cash equivalents		(58,798)		84,930
Cash and cash equivalents at beginning of period		192,859		60,904
Cash and cash equivalents at end of period	$	134,061	$	145,834
Supplemental disclosures of cash flow information:
Noncash investing and financing activities:
Conversion of loans to foreclosed real estate	$	1,305	$	625
Conversion of loans to repossessed assets		80		44
Right of use (ROU) assets obtained in exchange for lease obligations: Operating Leases		132		—
Investment tax credits obtained in exchange for delayed capital contributions		20,736		—
Investment tax credits obtained in exchange for settlement of loans		500		—
Cash paid during the period for:
Interest (net of interest credited)	$	3,877	$	4,240
Income taxes		7,411		4,038

See Notes to Condensed Consolidated Financial Statements

-7-

Table of Contents

SOUTHERN MISSOURI BANCORP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1: Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (“SEC”) Regulation SX. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of June 30, 2025, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and six-month periods ended December 31, 2025, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2025, Form 10-K, which was filed with the SEC.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Note 2: Organization and Summary of Significant Accounting Policies

Organization. Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities. The Bank has three active subsidiaries, SB Corning, LLC, SB Real Estate Investments, LLC, and Southern Insurance Services, LLC. In addition, the Bank has four inactive subsidiaries, Fortune Investment Group, LLC, Fortune Insurance Group, LLC, Fortune SBA, LLC, and SMS Financial Services, Inc. SB Corning, LLC represents investment in a limited partnership formed for the purpose of generating low income housing tax credits. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold a controlling interest in Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by SB Real Estate Investments, LLC, and has other preferred stockholders in order to meet the requirements to be a REIT. At December 31, 2025, assets of the REIT were approximately $1.3 billion, and consisted primarily of real estate loan participations acquired from the Bank.

The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

Basis of Financial Statement Presentation. The condensed consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

Regulatory risk is comprised of extensive state and federal laws and regulations designed primarily to protect consumers, depositors, and deposit insurance funds rather than stockholders. Changes in these regulations, actions by supervisory

-8-

Table of Contents

authorities, or significant litigation could impose operational restrictions, require substantial compliance resources, and/or result in penalties that may negatively impact our business and stockholder value.

Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions, interest-bearing deposits in other depository institutions, and securities purchased under agreements to resell with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $70.3 million and $136.9 million at December 31, 2025, and June 30, 2025, respectively. Securities purchased under agreements to resell totaled $35.4 million and $25.2 million at December 31, 2025, and June 30, 2025, respectively, and are included in these totals. Other correspondent deposits are held in various commercial banks with a total of $1.6 million and $1.8 million exceeding the FDIC’s deposit insurance limits at December 31, 2025, and June 30, 2025, respectively, as well as at the Federal Reserve and the Federal Home Loan Banks of Des Moines and Chicago.

Interest-Bearing Time Deposits. Interest bearing time deposits in banks mature within three years and are carried at cost.

Available for Sale Securities. Available for sale securities (AFS), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive loss, a component of stockholders’ equity. All securities have been classified as available for sale.

Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities.

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the Allowance for Credit Losses (ACL), by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.

The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the

-9-

Table of Contents

impairment is attributable to credit risk is acceptable. There were no credit-related factors underlying unrealized losses on AFS securities at December 31, 2025, or June 30, 2025.

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment of the Bank based upon a predetermined formula and is carried at cost.

Loans Held for Sale. Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at the lower of aggregate cost or fair value, taking into consideration future commitments to sell the loans.

Loans. Loans are generally stated at unpaid principal balances, less the ACL, any net deferred loan origination fees, and unamortized premiums or discounts on purchased loans.

Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Because of this, accrued interest receivable is excluded from the estimate of credit losses. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged against current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics identified below in the qualitative factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and thereafter immediately reverts to long-term historical averages.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (DCF) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilizes the remaining life method. The Company does not measure ACL on accrued interest for those pools utilizing the remaining life

-10-

Table of Contents

method, as the uncollectible accrued interest receivable balance is written off within 90 days. The DCF model implements probability of default (PD) and loss given default (LGD) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default in the ACL methodology, as an event of charge off, an adverse (substandard or worse) internal credit rating on most loan types, except agriculture production and agriculture real estate (watch or worse), becoming delinquent 90 days or more, being modified for experiencing financial difficulty, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

As part of the CECL methodology, the Company incorporates qualitative adjustments to the ACL calculation to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

The qualitative adjustments considered include internal factors such as:

●

Lending policies and procedures, including changes in underwriting standards, collection, charge-off, and recovery practices.

●

Nature and volume of the portfolio and term of loans.

●

Experience, depth, and ability of lending management.

●

Volume and severity of past due loans and other similar conditions.

●

Quality of the organization's review system.

●

Existence and effect of any concentrations of credit and changes in the levels of concentrations.

Qualitative adjustments considered also include external factors such as:

●

Value of underlying collateral for collateral-dependent loans.

●

International, national, regional and local conditions, if not adequately addressed through the modeled loss factors.

●

Effect of other external factors such as competition, legal and regulatory requirements.

Loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (PCD) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL for off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable.

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis. Any costs for development and improvement of the property that are warranted are capitalized.

-11-

Table of Contents

Valuations are periodically performed by management, and an allowance for losses is established by a charge against income if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.

Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method.

Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation and include expenditures for major betterments and renewals. Maintenance, repairs, and minor renewals are expensed as incurred. When property is retired or sold, the retired asset and related accumulated depreciation are removed from the accounts and the resulting gain or loss taken into income. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment loss recognized is measured by the amount by which the carrying amount exceeds the fair value of the assets.

Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.

Bank Owned Life Insurance. Bank owned life insurance policies are reflected in the condensed consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the condensed consolidated statements of income.

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. As of June 30, 2025, the date of the Company’s annual test, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the market value of the Company’s common stock; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations. There was no impairment of goodwill at December 31, 2025.

Intangible Assets. The Company’s intangible assets at December 31, 2025 included gross core deposit intangibles of $39.1 million with $22.6 million accumulated amortization, gross other identifiable intangibles of $6.6 million with accumulated amortization of $4.6 million, and mortgage and SBA servicing rights of $2.8 million. At June 30, 2025, the Company’s intangible assets included gross core deposit intangibles of $39.1 million with $21.1 million accumulated amortization, gross other identifiable intangibles of $6.4 million with accumulated amortization of $4.5 million, and mortgage and SBA servicing rights of $2.9 million. The Company’s core deposit and other intangible assets are being amortized using the straight line method, in accordance with ASC 350, over periods ranging from five to ten years, with amortization expense expected to be approximately $1.4 million in the remainder of fiscal 2026, $2.7 million in fiscal 2027, $2.7 million in fiscal 2028, $2.7 million in fiscal 2029, $2.5 million in fiscal 2030, and $6.4 million thereafter. As of December 31, 2025, and June 30, 2025, there was no impairment of other intangible assets indicated.

The Company records mortgage servicing rights (MSR) at fair value for all mortgage loans sold on a servicing retained basis with subsequent adjustments to fair value of MSR in accordance with FASB ASC 860. An estimate of the fair value of the Company’s MSR is determined utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Changes in the fair value of MSR are recorded in loan servicing fees in the consolidated statements of income.

Income Taxes. The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or

-12-

Table of Contents

liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns, with a tax year ended December 31.

Derivative Financial Instruments and Hedging Activities. The Company enters into derivative financial instruments, primarily interest rate swaps, to manage interest rate risk, facilitate asset/liability management strategies and manage other exposures. The Company’s derivative financial instruments also include interest swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. Derivative instruments are accounted pursuant to ASC Topic 815, “Derivatives and Hedging”, which requires companies to recognize derivative instruments as either assets or liabilities in the consolidated balance sheet. All derivative financial instruments are recognized as other assets or other liabilities, as applicable, at estimated fair value. The change in each of these financial statement line items is included as operating cash flows in the accompanying consolidated statements of cash flows. The Company does not speculate using derivative instruments. Derivative financial instruments are more fully described in Note 13.

Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

Non-Employee Directors’ Retirement. The Bank entered into directors’ retirement agreements beginning in April 1994 for non-employee directors and continued to do so for new non-employee directors joining the Bank’s board through December 2014. These directors’ retirement agreements provide that each participating non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board.

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

Stock Options. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

-13-

Table of Contents

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a credit loss has been recognized in income, and changes in the funded status of defined benefit pension plans.

Transfers Between Fair Value Hierarchy Levels. Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

Wealth Management Assets and Fees. Assets managed in fiduciary or investment management accounts by the Company are not included in the consolidated balance sheets since such items are not assets of the Company or its subsidiaries. Fees from fiduciary or investment management activities are recorded on a cash basis over the period in which the service is provided. Fees are generally a function of the market value of assets managed and administered, the volume of transactions, and fees for other services rendered, as set forth in the agreement between the customer and the Company. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on asset valuations and transaction volumes. Any out-of-pocket expenses or services not typically covered by the fee schedule for fiduciary activities are charged directly to the account on a gross basis as revenue is incurred. The Southern Wealth Management division, which is a division of the Bank, held fiduciary assets totaling $110.7 million and $107.6 million as of December 31, 2025, and June 30, 2025, respectively, and investment management assets totaling $587.4 million and $538.2 million as of December 31, 2025, and June 30, 2025, respectively.

New Accounting Pronouncements:

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments of this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this ASU for the fiscal year beginning July 1, 2024, and the accounting and disclosure of this ASU did not have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 was issued to address requests by investors and creditors for enhanced transparency and decision usefulness of income tax disclosures. Public business entities (PBEs) would be required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdictions that result in significant differences between the statutory and effective tax rates. All entities would be required to annually disclose taxes paid disaggregated by federal, state, and foreign taxes, as well as disaggregating taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. The ASU is effective for PBEs for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the adoption of ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”. ASU 2024-03 was issued to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The ASU is effective for

-14-

Table of Contents

PBEs for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of the adoption of ASU 2024-03.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which amends the accounting for acquired loans by introducing a category of purchased seasoned loans and expanding the use of the gross-up approach, requiring qualifying acquired loans to be recorded at purchase price plus an allowance for expected credit losses rather than recognizing a Day-1 provision through earnings. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, and is to be applied prospectively, with early adoption permitted. The Company is evaluating the impact of adoption, including the potential effect on the accounting for loans acquired in future acquisitions.

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,” which updates the hedge accounting guidance to improve alignment between hedge accounting and an entity’s risk management activities and to clarify and simplify the application of certain hedge accounting requirements. ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-09 on its financial statements and related disclosures, including its accounting for existing interest rate hedging relationships.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”. This ASU does not change the overall purpose of interim reporting or alter the scope of existing disclosure requirements; rather, the ASU is intended to provide more clarity and make interim disclosure requirements under Topic 270 easier to navigate. The ASU also requires entities to disclose events occurring after the end of the most recent annual reporting period that have a material impact on the entity. The ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact the adoption of ASU 2025-11 will have on the Company’s interim consolidated financial statements and disclosures.

-15-

Table of Contents

Note 3: Available for Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following:


		December 31, 2025
					Gross			Gross			Allowance			Estimated
		Amortized			Unrealized			Unrealized			for			Fair
(dollars in thousands)		Cost			Gains			Losses			Credit Losses			Value

Debt securities:
Obligations of states and political subdivisions		$	25,955		$	41		$	(1,167)		$	—		$	24,829
Corporate obligations			28,546			111			(452)			—			28,205
Asset-backed securities			37,612			497			(123)			—			37,986
Other securities			3,464			9			(51)			—			3,422
Total debt securities			95,577			658			(1,793)			—			94,442

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)			135,212			2,022			(4,249)			—			132,985
Commercial MBS issued by GSEs			99,308			535			(4,276)			—			95,567
CMOs issued by GSEs			125,908			434			(4,371)			—			121,971
Total MBS and CMOs			360,428			2,991			(12,896)			—			350,523
Total AFS securities		$	456,005		$	3,649		$	(14,689)		$	—		$	444,965


	June 30, 2025
			Gross		Gross		Allowance			Estimated
	Amortized		Unrealized		Unrealized		for			Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses			Value

Debt securities:
Obligations of states and political subdivisions	$	26,030	$	5	$	(1,772)	$	—		$	24,263
Corporate obligations		31,199		75		(632)		—			30,642
Asset-backed securities		42,059		567		(145)		—			42,481
Other securities		4,007		10		(53)		—			3,964
Total debt securities		103,295		657		(2,602)		—			101,350

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		138,377		1,623		(5,005)		—			134,995
Commercial MBS issued by GSEs		96,377		446		(4,821)		—			92,002
CMOs issued by GSEs		137,346		402		(5,251)		—			132,497
Total MBS and CMOs		372,100		2,471		(15,077)		—			359,494
Total AFS securities	$	475,395	$	3,128	$	(17,679)	$	—		$	460,844

The amortized cost and estimated fair value of available for sale securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

-16-

Table of Contents


		December 31, 2025
		Amortized			Estimated
(dollars in thousands)		Cost			Fair Value
Within one year		$	1,610		$	1,609
After one year but less than five years			27,313			27,087
After five years but less than ten years			35,499			34,450
After ten years			31,155			31,296
Total investment securities			95,577			94,442
MBS and CMOs			360,428			350,523
Total AFS securities		$	456,005		$	444,965

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $298.9 million and $294.3 million at December 31, 2025, and June 30, 2025, respectively. The securities pledged consisted of marketable securities, including $167.0 million and $151.6 million of MBS, $98.4 million and $109.8 million of CMOs, $28.5 million and $29.7 million of State and Political Subdivisions Obligations, and $5.0 million and $3.3 million of Other Securities at December 31, 2025, and June 30, 2025, respectively.

The following tables show the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at December 31, 2025, and June 30, 2025:


	December 31, 2025
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	3,290	$	12	$	14,053	$	1,155	$	17,343	$	1,167
Corporate obligations		7,610		63		9,013		389		16,623		452
Asset-backed securities		1,615		—		860		123		2,475		123
Other securities		—		—		3,062		51		3,062		51
MBS and CMOs		15,027		17		156,130		12,879		171,157		12,896
Total AFS securities	$	27,542	$	92	$	183,118	$	14,597	$	210,660	$	14,689


	June 30, 2025
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	4,882	$	84	$	15,807	$	1,688	$	20,689	$	1,772
Corporate obligations		1,936		6		18,194		626		20,130		632
Asset-backed securities		3,281		2		839		143		4,120		145
Other securities		15		—		3,578		53		3,593		53
MBS and CMOs		57,829		465		158,105		14,612		215,934		15,077
Total AFS securities	$	67,943	$	557	$	196,523	$	17,122	$	264,466	$	17,679

The following information pertaining to unrealized losses and ACL on securities, by security type, is presented as of December 31, 2025.

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include eight individual securities which have been in an unrealized loss position for less than 12 months and 29 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

-17-

Table of Contents

Corporate and Other Obligations. The unrealized losses on the Company’s investments in corporate obligations include five securities which have been in an unrealized loss position for less than 12 months and 11 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Asset-Backed Securities. The unrealized losses on the Company’s investments in asset-backed securities include one individual security which has been in an unrealized loss position for less than 12 months and two individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. The unrealized losses on the Company’s investments in MBS and CMOs include six individual securities which have been in an unrealized loss position for less than 12 months, and 106 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

The Company does not believe that any individual unrealized loss as of December 31, 2025, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

Credit Losses Recognized on Investments. There were no credit losses recognized in income and other losses or recorded in other comprehensive loss for the three- and six-month periods ended December 31, 2025, and 2024.

Note 4: Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:


(dollars in thousands)		December 31, 2025		June 30, 2025

1-4 Family residential real estate		$	1,043,090	$	992,445
Non-owner occupied commercial real estate			912,611		888,317
Owner occupied commercial real estate			460,064		442,984
Multi-family real estate			452,733		422,758
Construction and land development			298,412		332,405
Agriculture real estate			261,118		244,983
Total loans secured by real estate			3,428,028		3,323,892

Commercial and industrial			537,276		510,259
Agriculture production			202,892		206,128
Consumer			52,182		55,387
All other loans			6,178		5,102
Gross loans			4,226,556		4,100,768

Deferred loan fees, net			—		(178)
Allowance for credit losses			(54,465)		(51,629)
Net loans		$	4,172,091	$	4,048,961

-18-

Table of Contents

At December 31, 2025, net deferred loan fees of ($428,000) are included in the gross loan balances, by type, in the table above. The Company’s lending activities consist of originating loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, multi-family real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At December 31, 2025, the Bank had purchased participations in 63 loans totaling $147.6 million, as compared to 71 loans totaling $188.0 million at June 30, 2025.

1-4 Family Residential Real Estate Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (ARM) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are generally issued up to 90% of the appraised or estimated value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

Non-Owner Occupied and Owner Occupied Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area; however, the property may be located outside the Company’s primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally.

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property.

Multi-Family Real Estate Lending. The Company originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the Company’s primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand and supply, rental rates, and vacancies, as well as collateral values and borrower leverage.

Construction and Land Development Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction and land development loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multi-family or commercial construction loans

-19-

Table of Contents

typically mature in 12 to 36 months. Once construction is completed, construction loans may be converted to permanent financing with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and land development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further provide the Company an opportunity to assess risk.

Agriculture Production and Agriculture Real Estate Lending. Agriculture production and agriculture real estate loans are generally comprised of seasonal operating lines to farmers to plant crops and term loans to fund the purchase of equipment, farmland, or livestock. Agricultural real estate loans generally include loans secured by row crop ground, pasture, and forestry. The Company originates substantially all agriculture production and agriculture real estate lending to borrowers headquartered in the Company’s primary lending area. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Agriculture production operating lines are typically written for one year and secured by the crop. Agricultural real estate terms offered usually have amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Risks to agricultural lending include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland and farm equipment values.

Commercial and Industrial Lending. The Company’s commercial and industrial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit. The Company offers both fixed and adjustable rate commercial and industrial loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years. Commercial and industrial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally.

Consumer Lending. The Company offers a variety of secured consumer loans, direct and indirect automobile loans, recreational vehicle loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to 66 months.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. Typically, automobile loans are made for terms of up to 66 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

Allowance for Credit Losses. The ACL represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses (PCL) is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate ACL. In determining the adequacy of the ACL, and therefore the provision to be charged to current earnings, the Company relies primarily on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in developing assumptions for the allowance include historical net credit losses, the level and composition of nonaccrual,

-20-

Table of Contents

past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.

Individually Evaluated Loans. The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified through the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. The reviews use one of the three following alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral values are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. The ACL for individually evaluated loans totaled $9.1 million and $8.2 million at December 31, 2025, and June 30, 2025, respectively.

Non-Individually Evaluated (Pooled) Loans. Non-individually evaluated (pooled) loans comprise the majority of the Company’s total loan portfolio and include loans that were not individually evaluated. The Company primarily utilizes the discounted cash flow (DCF) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal, the Company utilizes the remaining life method. The DCF model implements probability of default (PD) and loss given default (LGD) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. The ACL for non-individually evaluated (pooled) loans totaled $45.4 million and $43.4 million at December 31, 2025, and June 30, 2025, respectively.

Qualitative factors. Included in the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

PCD Loans. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.

The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s ACL recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (non-PCD) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans.

-21-

Table of Contents

The following tables present the balance in the ACL based on portfolio segment as of December 31, 2025, and 2024, and activity in the ACL for the three- and six-month periods ended December 31, 2025, and 2024:


	At period end and for the six months ended December 31, 2025
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,274	$	1,307	$	(847)	$	1	$	10,735
Non-owner occupied commercial real estate		12,241		256		(2,875)		2,000		11,622
Owner occupied commercial real estate		4,521		516		(34)		122		5,125
Multi-family real estate		4,329		(446)		—		—		3,883
Construction and land development		4,788		1,118		(161)		—		5,745
Agriculture real estate		4,194		632		—		—		4,826
Commercial and industrial		6,952		2,638		(824)		38		8,804
Agriculture production		3,374		(945)		(116)		66		2,379
Consumer		952		746		(522)		167		1,343
All other loans		4		(1)		—		—		3
Total	$	51,629	$	5,821	$	(5,379)	$	2,394	$	54,465


	At period end and for the three months ended December 31, 2025
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	11,434	$	(3)	$	(697)	$	1	$	10,735
Non-owner occupied commercial real estate		10,514		(892)		—		2,000		11,622
Owner occupied commercial real estate		4,332		705		(34)		122		5,125
Multi-family real estate		3,979		(96)		—		—		3,883
Construction and land development		4,473		1,272		—		—		5,745
Agriculture real estate		4,762		64		—		—		4,826
Commercial and industrial		7,833		1,448		(483)		6		8,804
Agriculture production		3,608		(1,166)		(63)		—		2,379
Consumer		1,144		347		(231)		83		1,343
All other loans		2		1		—		—		3
Total	$	52,081	$	1,680	$	(1,508)	$	2,212	$	54,465


	At period end and for the six months ended December 31, 2024
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,528	$	2,140	$	(50)	$	46	$	12,664
Non-owner occupied commercial real estate		19,055		(5,395)		—		—		13,660
Owner occupied commercial real estate		4,815		1,014		(122)		—		5,707
Multi-family real estate		5,447		231		—		47		5,725
Construction and land development		2,901		1,817		(1)		—		4,717
Agriculture real estate		2,107		410		—		—		2,517
Commercial and industrial		6,233		1,858		(65)		37		8,063
Agriculture production		835		225		—		—		1,060
Consumer		578		215		(201)		11		603
All other loans		17		7		—		—		24
Total	$	52,516	$	2,522	$	(439)	$	141	$	54,740

-22-

Table of Contents


	At period end and for the three months ended December 31, 2024
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,637	$	1,983	$	(2)	$	46	$	12,664
Non-owner occupied commercial real estate		20,728		(7,068)		—		—		13,660
Owner occupied commercial real estate		4,814		1,015		(122)		—		5,707
Multi-family real estate		5,118		607		—		—		5,725
Construction and land development		3,675		1,043		(1)		—		4,717
Agriculture real estate		2,027		490		—		—		2,517
Commercial and industrial		6,114		1,943		(26)		32		8,063
Agriculture production		784		276		—		—		1,060
Consumer		526		202		(129)		4		603
All other loans		14		10		—		—		24
Total	$	54,437	$	501	$	(280)	$	82	$	54,740

The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of December 31, 2025, and 2024, and activity in the allowance for the three- and six-month periods ended December 31, 2025, and 2024:


	At period end and for the six months ended December 31, 2025
	Balance		Provision		Balance
(dollars in thousands)	beginning		(benefit) charged		end
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	202	$	(13)	$	189
Non-owner occupied commercial real estate		134		19		153
Owner occupied commercial real estate		161		11		172
Multi-family real estate		—		45		45
Construction and land development		2,279		333		2,612
Agriculture real estate		81		(47)		34
Commercial and industrial		1,074		(264)		810
Agriculture production		—		275		275
Consumer		—		4		4
All other loans		8		(4)		4
Total	$	3,939	$	359	$	4,298


	At period end and for the three months ended December 31, 2025
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	182	$	7	$	189
Non-owner occupied commercial real estate		160		(7)		153
Owner occupied commercial real estate		133		39		172
Multi-family real estate		63		(18)		45
Construction and land development		2,854		(242)		2,612
Agriculture real estate		91		(57)		34
Commercial and industrial		804		6		810
Agriculture production		—		275		275
Consumer		3		1		4
All other loans		8		(4)		4
Total	$	4,298	$	—	$	4,298

-23-

Table of Contents


	At period end and for the six months ended December 31, 2024
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	140	$	89	$	229
Non-owner occupied commercial real estate		153		32		185
Owner occupied commercial real estate		136		33		169
Multi-family real estate		31		34		65
Construction and land development		1,912		53		1,965
Agriculture real estate		60		(6)		54
Commercial and industrial		782		250		1,032
Agriculture production		37		90		127
Consumer		12		(6)		6
All other loans		—		—		—
Total	$	3,263	$	569	$	3,832


	At period end and for the three months ended December 31, 2024
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	170	$	59	$	229
Non-owner occupied commercial real estate		175		10		185
Owner occupied commercial real estate		122		47		169
Multi-family real estate		34		31		65
Construction and land development		2,000		(35)		1,965
Agriculture real estate		52		2		54
Commercial and industrial		802		230		1,032
Agriculture production		34		93		127
Consumer		12		(6)		6
All other loans		—		—		—
Total	$	3,401	$	431	$	3,832

-24-

Table of Contents

The following tables present year-to-date gross charge-offs by loan class and year of origination for the six-month periods ended December 31, 2025, and 2024:


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
December 31, 2025
1-4 Family residential real estate	$	—	$	—	$	182	$	200	$	47	$	418	$	—	$	847
Non-owner occupied commercial real estate		—		—		—		2,800		75		—		—		2,875
Owner occupied commercial real estate		—		—		—		—		—		34		—		34
Construction and land development		—		—		—		—		—		161		—		161
Commercial and industrial		—		241		135		55		337		56		—		824
Agriculture production		—		—		29		67		20		—		—		116
Consumer		331		83		57		32		15		4		—		522
Total gross charge-offs	$	331	$	324	$	403	$	3,154	$	494	$	673	$	—	$	5,379


													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
December 31, 2024
1-4 Family residential real estate	$	—	$	—	$	—	$	—	$	—	$	50	$	—	$	50
Owner occupied commercial real estate		—		—		122		—		—		—		—		122
Construction and land development		—		—		—		—		1		—		—		1
Commercial and industrial		—		16		38		—		—		11		—		65
Consumer		—		98		65		35		3		—		—		201
Total gross charge-offs	$	—	$	114	$	225	$	35	$	4	$	61	$	—	$	439

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. A sample of lending relationships are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring. Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days. This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding. These loans may exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.

-25-

Table of Contents

Doubtful – Loans classified as doubtful have all the weaknesses of substandard loans, and have deteriorated to the level that there is a high probability of substantial loss.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and fiscal year of origination as of December 31, 2025. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
1-4 Family residential real estate
Pass	$	142,969	$	167,681	$	96,163	$	118,826	$	156,546	$	233,869	$	121,669	$	1,037,723
Watch		198		545		151		495		328		240		11		1,968
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		285		439		1,209		1,423		43		3,399
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	143,167	$	168,226	$	96,599	$	119,760	$	158,083	$	235,532	$	121,723	$	1,043,090

Non-owner occupied commercial real estate
Pass	$	156,314	$	107,049	$	66,688	$	175,554	$	233,748	$	115,637	$	9,514	$	864,504
Watch		1,512		—		207		12,438		193		—		—		14,350
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		4,737		1,563		2,397		25,060		—		—		33,757
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	157,826	$	111,786	$	68,458	$	190,389	$	259,001	$	115,637	$	9,514	$	912,611

Owner occupied commercial real estate
Pass	$	73,845	$	63,684	$	55,421	$	69,542	$	70,466	$	87,813	$	26,763	$	447,534
Watch		123		1,109		5,227		285		2,564		71		500		9,879
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		13		850		870		287		631		—		2,651
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	73,968	$	64,806	$	61,498	$	70,697	$	73,317	$	88,515	$	27,263	$	460,064

Multi-family real estate
Pass	$	28,704	$	78,818	$	17,499	$	190,752	$	62,780	$	63,538	$	7,742	$	449,833
Watch		—		1,553		—		—		1,347		—		—		2,900
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	28,704	$	80,371	$	17,499	$	190,752	$	64,127	$	63,538	$	7,742	$	452,733

Construction and land development
Pass	$	68,470	$	127,839	$	24,911	$	62,606	$	4,544	$	1,858	$	1,876	$	292,104
Watch		17		—		—		190		—		58		—		265
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5,743		—		—		—		300		—		6,043
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	68,487	$	133,582	$	24,911	$	62,796	$	4,544	$	2,216	$	1,876	$	298,412

Agriculture real estate
Pass	$	32,695	$	49,224	$	21,955	$	29,180	$	36,874	$	42,565	$	22,580	$	235,073
Watch		4,950		3,981		1,469		2,082		5,348		4,045		1,528		23,403

-26-

Table of Contents

Special Mention		—		—		—		—		—		—		—		—
Substandard		—		40		1,438		257		139		768		—		2,642
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	37,645	$	53,245	$	24,862	$	31,519	$	42,361	$	47,378	$	24,108	$	261,118

Commercial and industrial
Pass	$	149,462	$	111,877	$	25,066	$	14,318	$	27,235	$	17,072	$	163,409	$	508,439
Watch		5,498		1,091		4,286		1,793		—		10		8,141		20,819
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,742		3,699		64		568		95		416		835		7,419
Doubtful		—		599		—		—		—		—		—		599
Total Commercial and industrial	$	156,702	$	117,266	$	29,416	$	16,679	$	27,330	$	17,498	$	172,385	$	537,276

Agriculture production
Pass	$	14,922	$	40,942	$	9,602	$	4,449	$	1,563	$	3,795	$	112,336	$	187,609
Watch		1,305		957		871		—		43		—		9,887		13,063
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		24		2,180		—		4		12		—		2,220
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	16,227	$	41,923	$	12,653	$	4,449	$	1,610	$	3,807	$	122,223	$	202,892

Consumer
Pass	$	16,545	$	17,172	$	7,644	$	5,665	$	2,098	$	1,426	$	1,507	$	52,057
Watch		9		—		—		—		—		—		—		9
Special Mention		—		—		—		—		—		—		—		—
Substandard		3		81		12		10		10		—		—		116
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	16,557	$	17,253	$	7,656	$	5,675	$	2,108	$	1,426	$	1,507	$	52,182

All other loans
Pass	$	665	$	3,154	$	783	$	164	$	41	$	1,371	$	—	$	6,178
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	665	$	3,154	$	783	$	164	$	41	$	1,371	$	—	$	6,178

Total Loans
Pass	$	684,591	$	767,440	$	325,732	$	671,056	$	595,895	$	568,944	$	467,396	$	4,081,054
Watch		13,612		9,236		12,211		17,283		9,823		4,424		20,067		86,656
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,745		14,337		6,392		4,541		26,804		3,550		878		58,247
Doubtful		—		599		—		—		—		—		—		599
Total	$	699,948	$	791,612	$	344,335	$	692,880	$	632,522	$	576,918	$	488,341	$	4,226,556

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and fiscal year of origination as of June 30, 2025. This table includes PCD loans, which were reported according to risk categorization after acquisition based on the Company’s standards for such classification:


													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
1-4 Family residential real estate
Pass	$	204,048	$	110,823	$	133,616	$	167,711	$	126,851	$	132,126	$	112,346	$	987,521
Watch		620		261		376		360		277		250		—		2,144
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		734		190		346		33		1,359		118		2,780
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	204,668	$	111,818	$	134,182	$	168,417	$	127,161	$	133,735	$	112,464	$	992,445

Non-owner occupied commercial real estate
Pass	$	115,266	$	82,983	$	213,647	$	273,348	$	76,522	$	70,869	$	7,570	$	840,205
Watch		—		1,770		15,146		213		—		—		—		17,129
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		64		4,490		26,429		—		—		—		30,983
Doubtful		—		—		—		—		—		—		—		—

-27-

Table of Contents

Total Non-owner occupied commercial real estate	$	115,266	$	84,817	$	233,283	$	299,990	$	76,522	$	70,869	$	7,570	$	888,317

Owner occupied commercial real estate
Pass	$	72,469	$	57,047	$	87,899	$	79,946	$	73,291	$	43,764	$	21,206	$	435,622
Watch		1,440		2,234		287		83		—		73		—		4,117
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		868		969		901		71		436		—		3,245
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	73,909	$	60,149	$	89,155	$	80,930	$	73,362	$	44,273	$	21,206	$	442,984

Multi-family real estate
Pass	$	79,658	$	19,078	$	179,905	$	69,862	$	56,328	$	13,577	$	1,402	$	419,810
Watch		1,571		—		—		1,377		—		—		—		2,948
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	81,229	$	19,078	$	179,905	$	71,239	$	56,328	$	13,577	$	1,402	$	422,758

Construction and land development
Pass	$	161,995	$	32,148	$	117,395	$	9,144	$	1,829	$	1,396	$	2,020	$	325,927
Watch		—		—		—		—		—		63		—		63
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5,743		—		—		—		672		—		6,415
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	161,995	$	37,891	$	117,395	$	9,144	$	1,829	$	2,131	$	2,020	$	332,405

Agriculture real estate
Pass	$	56,350	$	24,526	$	36,351	$	40,456	$	37,094	$	11,570	$	18,747	$	225,094
Watch		3,883		1,092		2,145		5,603		4,043		—		475		17,241
Special Mention		—		—		—		—		—		—		—		—
Substandard		35		2,206		257		150		—		—		—		2,648
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	60,268	$	27,824	$	38,753	$	46,209	$	41,137	$	11,570	$	19,222	$	244,983

Commercial and industrial
Pass	$	169,734	$	38,321	$	36,459	$	31,607	$	16,918	$	6,016	$	192,310	$	491,365
Watch		3,966		4,565		2,453		—		250		13		4,437		15,684
Special Mention		—		—		—		—		—		—		—		—
Substandard		753		111		165		935		53		239		954		3,210
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	174,453	$	42,997	$	39,077	$	32,542	$	17,221	$	6,268	$	197,701	$	510,259

Agriculture production
Pass	$	43,446	$	13,230	$	5,631	$	1,910	$	4,363	$	302	$	119,345	$	188,227
Watch		3,319		888		—		83		—		—		13,357		17,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		26		127		81		8		—		12		—		254
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	46,791	$	14,245	$	5,712	$	2,001	$	4,363	$	314	$	132,702	$	206,128

Consumer
Pass	$	29,912	$	11,264	$	8,330	$	3,189	$	938	$	172	$	1,483	$	55,288
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		50		20		12		17		—		—		—		99
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	29,962	$	11,284	$	8,342	$	3,206	$	938	$	172	$	1,483	$	55,387

All other loans
Pass	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102

-28-

Table of Contents

Total Loans
Pass	$	935,212	$	390,289	$	819,478	$	677,255	$	394,266	$	281,232	$	476,429	$	3,974,161
Watch		14,799		10,810		20,407		7,719		4,570		399		18,269		76,973
Special Mention		—		—		—		—		—		—		—		—
Substandard		864		9,873		6,164		28,786		157		2,718		1,072		49,634
Doubtful		—		—		—		—		—		—		—		—
Total	$	950,875	$	410,972	$	846,049	$	713,760	$	398,993	$	284,349	$	495,770	$	4,100,768

Past-due Loans. The following tables present the Company’s loan portfolio aging analysis as of December 31, 2025, and June 30, 2025. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:


		December 31, 2025
								Greater Than												Greater Than 90
		30-59 Days			60-89 Days			90 Days			Total						Total Loans			Days Past Due
(dollars in thousands)		Past Due			Past Due			Past Due			Past Due			Current			Receivable			and Accruing
1-4 Family residential real estate		$	972		$	2,230		$	2,297		$	5,499		$	1,037,591		$	1,043,090		$	16
Non-owner occupied commercial real estate			—			3,960			4,737			8,697			903,914			912,611			—
Owner occupied commercial real estate			467			217			401			1,085			458,979			460,064			—
Multi-family real estate			—			—			—			—			452,733			452,733			—
Construction and land development			50			67			5,760			5,877			292,535			298,412			—
Agriculture real estate			849			—			2,463			3,312			257,806			261,118			—
Commercial and industrial			1,651			576			2,282			4,509			532,767			537,276			—
Agriculture production			209			5			2,192			2,406			200,486			202,892			—
Consumer			389			110			95			594			51,588			52,182			—
All other loans			—			—			—			—			6,178			6,178			—
Total loans		$	4,587		$	7,165		$	20,227		$	31,979		$	4,194,577		$	4,226,556		$	16


	June 30, 2025
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 Family residential real estate	$	1,317	$	1,973	$	2,442	$	5,732	$	986,713	$	992,445	$	—
Non-owner occupied commercial real estate		62		—		5,784		5,846		882,471		888,317		—
Owner occupied commercial real estate		—		116		989		1,105		441,879		442,984		—
Multi-family real estate		—		—		—		—		422,758		422,758		—
Construction and land development		315		12		5,743		6,070		326,335		332,405		—
Agriculture real estate		178		11		2,613		2,802		242,181		244,983		—
Commercial and industrial		1,055		219		1,837		3,111		507,148		510,259		—
Agriculture production		163		164		78		405		205,723		206,128		—
Consumer		380		98		74		552		54,835		55,387		—
All other loans		—		—		—		—		5,102		5,102		—
Total loans	$	3,470	$	2,593	$	19,560	$	25,623	$	4,075,145	$	4,100,768	$	—

At December 31, 2025, there were two PCD loans totaling $6.2 million greater than 90 days past due, compared to three PCD loans totaling $6.2 million that were greater than 90 days past due at June 30, 2025.

-29-

Table of Contents

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

Collateral Dependent Loans. The following tables present the Company’s collateral dependent loans and related ACL at December 31, 2025, and June 30, 2025:



									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
December 31, 2025	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	1,327	$	—	$	—	$	1,327	$	92
Non-owner occupied commercial real estate		34,585		—		—		34,585		5,472
Owner occupied commercial real estate		3,041		—		468		3,509		358
Construction and land development		5,743		300		—		6,043		1,575
Agriculture real estate		2,499		—		—		2,499		—
Commercial and industrial		—		—		7,944		7,944		1,595
Agriculture production		—		—		2,215		2,215		—
Total loans	$	47,195	$	300	$	10,627	$	58,122	$	9,092



									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
June 30, 2025	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	752	$	—	$	—	$	752	$	117
Non-owner occupied commercial real estate		31,764		—		—		31,764		6,456
Owner occupied commercial real estate		811		—		541		1,352		290
Construction and land development		5,743		661		—		6,404		161
Agriculture real estate		1,695		—		—		1,695		—
Commercial and industrial		494		—		3,128		3,622		1,129
Total loans	$	41,259	$	661	$	3,669	$	45,589	$	8,153

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at December 31, 2025, and June 30, 2025. The table excludes performing modifications to borrowers experiencing financial difficulty.



(dollars in thousands)		December 31, 2025		June 30, 2025
1-4 Family residential real estate		$	2,988	$	2,847
Non-owner occupied commercial real estate			8,697		5,784
Owner occupied commercial real estate			1,037		1,309
Construction and land development			5,793		5,789
Agriculture real estate			2,893		3,268
Commercial and industrial			5,845		3,442
Agriculture production			2,297		505
Consumer			105		96
Total loans		$	29,655	$	23,040

At December 31, 2025, there were 34 nonaccrual loans totaling $7.0 million, and at June 30, 2025 there were four nonaccrual loans totaling $7.4 million, that were individually evaluated for which no ACL was recorded.

-30-

Table of Contents

Modifications to Borrowers Experiencing Financial Difficulty. During the three-month period ended December 31, 2025, there were three loan modifications, totaling $5.2 million, made to borrowers experiencing financial difficulty, and during the six-month period ended December 31, 2025, there were four loan modifications, totaling $5.8 million. During the three- and six-month periods ended December 31, 2024, there were no loan modifications made to borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding during the six-month period ended December 31, 2025 are shown in the following table segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.


	December 31, 2025
							Term			Interest			Total Class of
	Principal			Payment			Extension			Rate			Financing
	Forgiveness			Delays			Modifications			Reduction			Receivable
(dollars in thousands)
1-4 Family residential real estate	$	—		$	—		$	—		$	—		—	%
Non-owner occupied commercial real estate		1,512			—			—			—		0.17	%
Owner occupied commercial real estate		—			3,731			—			—		0.81	%
Multi-family real estate		—			—			—			—		—	%
Construction and land development		—			—			—			—		—	%
Agriculture real estate		—			—			—			—		—	%
Commercial and industrial		—			599			—			—		0.11	%
Agriculture production		—			—			—			—		—	%
Consumer		—			—			—			—		—	%
All other loans		—			—			—			—		—	%
Total	$	1,512		$	4,330		$	—		$	—		0.14	%

The loan modifications made during fiscal 2026 were made for principal forgiveness and to delay payments. The modified loans were not past due at December 31, 2025.

Residential Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of December 31, 2025, and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $911,000 and $0, respectively. In addition, as of December 31, 2025, and June 30, 2025, the Company had residential mortgage loans and home equity loans with a carrying value of $680,000 and $769,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Note 5: Premises and Equipment

Following is a summary of premises and equipment:



(dollars in thousands)		December 31, 2025		June 30, 2025
Land		$	15,478	$	15,386
Buildings and improvements			89,319		85,512
Construction in progress			54		2,754
Furniture, fixtures, equipment and software			30,184		29,386
Automobiles			118		118
Operating leases ROU asset			6,859		6,991
			142,012		140,147
Less accumulated depreciation			47,452		44,165
		$	94,560	$	95,982

Leases. The Company elected certain relief options under ASU 2016-02, Leases (Topic 842), including the option not to recognize ROU asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less). At December 31, 2025, the Company had ten leased properties, which included banking facilities, administrative offices

-31-

Table of Contents

and ground leases, and numerous office equipment lease agreements in which it was the lessee, with lease terms exceeding twelve months.

All of the Company’s leases are classified as operating leases. These operating leases are included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.

ASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The range of discount rates utilized was 4.0% to 5.7%. The expected lease terms range from 18 months to 20 years.


		December 31, 2025		June 30, 2025
Consolidated Balance Sheet
Operating leases ROU asset		$	6,859	$	6,991
Operating leases liability		$	6,859	$	6,991


		For the three- month				For the six- month
		periods ended				periods ended
		December 31,				December 31,
(dollars in thousands)		2025		2024		2025		2024
Consolidated Statement of Income
Operating lease costs classified as occupancy and equipment expense		$	302	$	297	$	600	$	595
(includes short-term lease costs)

Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases		$	218	$	205	$	435	$	411
ROU assets obtained in exchange for operating lease obligations:		$	—	$	—	$	52	$	—

At December 31, 2025, future expected lease payments for leases with terms exceeding one year were as follows:


(dollars in thousands)
2026	$	524
2027		853
2028		867
2029		850
2030		834
Thereafter		7,669
Future lease payments expected		11,597
Less: present value discount		(4,738)
Total lease liability	$	6,859

The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the three- and six-month periods ended December 31, 2025, income recognized from these lessor agreements was $117,000

-32-

Table of Contents

and $247,000, respectively. For the three- and six-month periods ended December 31, 2024, income recognized from these lessor agreements was $109,000 and $224,000, respectively.

Note 6: Deposits

Deposits are summarized as follows:



(dollars in thousands)		December 31, 2025		June 30, 2025
Non-interest bearing accounts		$	526,569	$	508,110
NOW accounts			1,167,626		1,132,298
Money market deposit accounts			320,623		331,251
Savings accounts			701,553		661,115
Certificates			1,591,963		1,648,594
Total Deposit Accounts		$	4,308,334	$	4,281,368

Brokered certificates totaled $179.6 million at December 31, 2025, compared to $233.6 million at June 30, 2025.

Note 7: Repurchase Agreements

Securities sold under agreements to repurchase totaled $20.0 million at December 31, 2025, an increase of $5.0 million from $15.0 million at June 30, 2025. The following table sets forth the outstanding amounts and interest rates as of December 31, 2025, and June 30, 2025:


	December 31,			June 30,
(dollars in thousands)	2025			2025
Period-end balance	$	20,000		$	15,000
Average balance during the period		19,022			14,330
Maximum month-end balance during the period		20,000			15,000
Average interest during the period		4.21	%		5.35	%
Period-end interest rate		4.05	%		5.11	%

The repurchase agreements mature daily and the following sets forth the collateral pledged by class for repurchase agreements:


	December 31,		June 30,
(dollars in thousands)	2025		2025
Mortgage-backed securities (MBS)	$	19,949	$	15,353

Note 8: Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:


		Three- month periods ended						Six- month periods ended
		December 31,						December 31,
(dollars in thousands except per share data)		2025			2024			2025			2024


Net income		$	18,150		$	14,653		$	33,800		$	27,110
Less: distributed earnings allocated to participating securities			(12)			(11)			(24)			(24)
Less: undistributed earnings allocated to participating securities			(67)			(50)			(123)			(99)
Net income available to common stockholders		$	18,071		$	14,592		$	33,653		$	26,987

Denominator for basic earnings per share

-33-

Table of Contents

Weighted-average shares outstanding		11,153,362		11,230,514		11,200,053		11,225,779
Effect of dilutive securities stock options or awards		25,416		29,463		25,300		23,820
Denominator for diluted earnings per share		11,178,778		11,259,977		11,225,353		11,249,599

Basic earnings per share available to common stockholders	$	1.62	$	1.30	$	3.00	$	2.40
Diluted earnings per share available to common stockholders	$	1.62	$	1.30	$	3.00	$	2.40

Certain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 48,500 were excluded from the computation of diluted earnings per share for each of the three- and six-month periods ended December 31, 2025, while outstanding options and shares of restricted stock totaling 0 and 51,000 were excluded from the computation of diluted earnings per share for the three- and six-month periods ended December 31, 2024, respectively.

Note 9: Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal examinations by tax authorities for tax years ending June 30, 2019 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented.

The Company’s income tax provision is comprised of the following components:


	For the three-month periods ended				For the six-month periods ended
(dollars in thousands)	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Income taxes
Current	$	4,445	$	4,547	$	7,355	$	7,925
Deferred		101		—		981		—
Total income tax provision	$	4,546	$	4,547	$	8,336	$	7,925

The components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows:


(dollars in thousands)		December 31, 2025		June 30, 2025
Deferred tax assets:
Provision for losses on loans		$	12,928	$	12,225
Accrued compensation and benefits			1,057		1,210
NOL carry forwards acquired			21		24
Unrealized loss on available for sale securities			2,429		3,201
Other			—		552
Total deferred tax assets			16,435		17,212

Deferred tax liabilities:
Purchase accounting adjustments			2,572		2,604
Depreciation			4,212		4,468
FHLB stock dividends			120		120
Prepaid expenses			596		586
Other			1,254		—
Total deferred tax liabilities			8,754		7,778
Net deferred tax asset		$	7,681	$	9,434

-34-

Table of Contents

As of December 31, 2025, the Company had approximately $96,000 in federal net operating loss carryforwards, which were acquired in the July 2009 Southern Bank of Commerce merger. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2030.

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:


	For the three-month periods ended				For the six-month periods ended
(dollars in thousands)	December 31, 2025		December 31, 2024		December 31, 2025		December 31, 2024
Tax at statutory rate	$	4,766	$	4,032	$	8,849	$	7,357
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(114)		(76)		(197)		(182)
State tax, net of Federal benefit		147		199		196		284
Cash surrender value of Bank-owned life insurance		(116)		(110)		(231)		(218)
Tax credit benefits		(175)		(3)		(350)		(27)
Other, net		38		505		69		711
Actual provision	$	4,546	$	4,547	$	8,336	$	7,925

For the three-month periods ended December 31, 2025, and 2024, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).

Tax credit benefits are recognized under the proportional amortization method of accounting for investments in tax credits.

Note 10: 401(k) Retirement Plan

The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank made “safe harbor” matching contributions to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2025. For fiscal 2026, the Bank has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and six-month periods ended December 31, 2025, retirement plan expenses recognized for the Plan totaled approximately $786,000 and $1.6 million, respectively, as compared to $661,000 and $1.4 million for the same periods of the prior fiscal year, respectively. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.

Note 11: Subordinated Debt

In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years, and bear interest at a floating rate based on SOFR. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At December 31, 2025, the Debentures carried an interest rate of 6.72%. The balance of the Debentures outstanding was $7.2 million at both December 31, 2025, and June 30, 2025. The Company used the net proceeds from the sale of the Debentures for working capital and investment in its subsidiaries.

In connection with the October 2013 Ozarks Legacy Community Financial, Inc. (OLCF) merger, the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now

-35-

Table of Contents

redeemable at par, and mature in 2035. At December 31, 2025, the current rate was 6.43%. The carrying value of the debt securities was approximately $2.8 million at both December 31, 2025, and June 30, 2025.

In connection with the August 2014 Peoples Service Company, Inc. (PSC) merger, the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2035. At December 31, 2025, the current rate was 5.78%. The carrying value of the debt securities was approximately $5.7 million and $5.6 million at December 31, 2025, and June 30, 2025, respectively.

The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $472,000 at December 31, 2025, and $471,000 at June 30, 2025.

In connection with the February 2022 Fortune merger, the Company assumed $7.5 million in fixed-to-floating rate subordinated notes. The notes had been issued in May 2021 by Fortune to a multi-lender group, bear interest through May 2026 at a fixed rate of 4.5% and will bear interest thereafter at SOFR plus 3.77%. The notes will be redeemable at par beginning in May 2026, and mature in May 2031. The carrying value of the notes was approximately $7.5 million at December 31, 2025, and $7.5 million at June 30, 2025.

Note 12: Fair Value Measurements

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1 Quoted prices in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3 Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets or liabilities

Recurring Measurements. The following table presents the fair value measurements recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2025, and June 30, 2025:


	Fair Value Measurements at December 31, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Obligations of state and political subdivisions	$	24,829	$	—	$	24,829	$	—
Corporate obligations		28,205		—		28,205		—
Asset backed securities		37,986		—		37,986		—
Other securities		3,422		—		3,422		—
MBS and CMOs		350,523		—		350,523		—
Mortgage servicing rights		2,295		—		—		2,295
Derivative financial instruments		1,244		—		1,244		—
Liabilities:
Derivative financial instruments		1,187		—		1,187		—

-36-

Table of Contents


	Fair Value Measurements at June 30, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Obligations of state and political subdivisions	$	24,263	$	—	$	24,263	$	—
Corporate obligations		30,642		—		30,642		—
Asset backed securities		42,481		—		42,481		—
Other securities		3,964		—		3,964		—
MBS and CMOs		359,494		—		359,494		—
Mortgage servicing rights		2,297		—		—		2,297
Derivative financial instruments		912		—		912		—
Liabilities:
Derivative financial instruments		877		—		877		—

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the three- and six-month periods ended December 31, 2025. There were no transfers between levels of the fair value hierarchy during the period ended December 31, 2025.

Available-for-sale Securities. When quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Derivative financial instruments. The Company’s derivative financial instruments consist of interest rate swaps on loans accounted for as fair value hedges. The fair value of interest rate swaps was determined by discounting the expected cash flows of the interest rate swaps. This valuation reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs. The Company’s derivative financial instruments also include interest swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. The inputs used to value the Company’s interest rate swaps fall within Level 2 of the fair value hierarchy and, as a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. See information regarding the Company’s derivative financial agreements in Note 13: Derivative Financial Instruments of these Notes to Consolidated Financial Statements.

Mortgage servicing rights. The Company records MSR at fair value on a recurring basis with subsequent remeasurement of MSR based on change in fair value. An estimate of the fair value of the Company’s MSR is determined by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. All of the Company’s MSR are classified as Level 3.

-37-

Table of Contents

The following table summarizes the change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three- and six-month periods ended December 31, 2025, and December 31, 2024:


	At period end and for the three months ended					At period end and for the six months ended
	December 31,					December 31,
(dollars in thousands)	2025			2024		2025			2024
MSR, beginning	$	2,299		$	2,419	$	2,297		$	2,448
Originations		47			24		97			58
Amortization		(51)			(51)		(99)			(114)
Change in fair value		—			—		—			—
MSR, ending	$	2,295		$	2,392	$	2,295		$	2,392

Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at December 31, 2025, and June 30, 2025:


	Fair Value Measurements at December 31, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Foreclosed and repossessed assets held for sale	$	911	$	—	$	—	$	911
Collateral dependent loans		32,965		—		—		32,965


	Fair Value Measurements at June 30, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Foreclosed and repossessed assets held for sale	$	625	$	—	$	—	$	625
Collateral dependent loans		24,368		—		—		24,368

The following table presents losses recognized on assets measured on a non-recurring basis for the six-month periods ended December 31, 2025, and 2024:


	For the six months ended
(dollars in thousands)	December 31, 2025		December 31, 2024
Foreclosed and repossessed assets held for sale	$	548	$	91
Total losses on assets measured on a non-recurring basis	$	548	$	91

The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

Foreclosed and Repossessed Assets Held for Sale. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

-38-

Table of Contents

Collateral-Dependent Loans. The Company records collateral-dependent loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the ACL specific to the loan.

Unobservable (Level 3) Inputs. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2025, and June 30, 2025.

Range

Fair value at

Valuation

Unobservable

Weighted-average

(dollars in thousands)

December 31, 2025

technique

inputs

inputs applied

Nonrecurring Measurements

Foreclosed and repossessed assets

911

Third party appraisal

Marketability discount

27.1 -27.1%

27.1

Collateral dependent loans

32,965

Collateral value

Marketability discount

13.4 -100.0

20.5

Range

Fair value at

Valuation

Unobservable

Weighted-average

(dollars in thousands)

June 30, 2025

technique

inputs

inputs applied

Nonrecurring Measurements

Foreclosed and repossessed assets

625

Third party appraisal

Marketability discount

25.6 -25.6

25.6

Collateral dependent loans

24,368

Collateral value

Marketability discount

4.3 -100.0

23.9

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at December 31, 2025, and June 30, 2025.


		December 31, 2025
					Quoted Prices
					in Active						Significant
					Markets for			Significant Other			Unobservable
		Carrying			Identical Assets			Observable Inputs			Inputs
(dollars in thousands)		Amount			(Level 1)			(Level 2)			(Level 3)
Financial assets
Cash and cash equivalents		$	134,061		$	134,061		$	—		$	—
Interest-bearing time deposits			248			—			248			—
Stock in FHLB			9,406			—			9,406			—
Stock in Federal Reserve Bank of St. Louis			9,146			—			9,146			—
Loans held for sale			1,271			—			1,271			—
Loans receivable, net			4,172,091			—			—			4,125,216
Accrued interest receivable			32,603			—			32,603			—
Financial liabilities
Deposits			4,308,334			2,717,711			—			1,595,505
Securities sold under agreements to repurchase			20,000			—			20,000			—
Advances from FHLB			102,041			—			102,056			—
Accrued interest payable			14,092			—			14,092			—
Subordinated debt			23,235			—			—			22,665
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans			—			—			—			—
Letters of credit			—			—			—			—
Lines of credit			—			—			—			—

-39-

Table of Contents


	June 30, 2025
			Quoted Prices
			in Active				Significant
			Markets for		Significant Other		Unobservable
	Carrying		Identical Assets		Observable Inputs		Inputs
(dollars in thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and cash equivalents	$	192,859	$	192,859	$	—	$	—
Interest-bearing time deposits		246		—		246		—
Stock in FHLB		9,361		—		9,361		—
Stock in Federal Reserve Bank of St. Louis		9,139		—		9,139		—
Loans receivable, net		4,048,961		—		—		3,976,696
Accrued interest receivable		26,018		—		26,018		—
Financial liabilities
Deposits		4,281,368		2,632,774		—		1,650,046
Securities sold under agreements to repurchase		15,000		—		15,000		—
Advances from FHLB		104,052		—		104,561		—
Accrued interest payable		14,186		—		14,186		—
Subordinated debt		23,208		—		—		21,722
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		—		—		—		—
Letters of credit		—		—		—		—
Lines of credit		—		—		—		—

Note 13: Derivative Financial Instruments

The Company enters into derivative financial instruments, primarily interest rate swaps, to convert certain long term fixed rate loans to floating rates to manage interest rate risk, facilitate asset/liability management strategies and manage other exposures. The fair value of derivative positions outstanding is included in other assets and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these line items in the operating section of the accompanying consolidated statements of cash flows. The unrealized gains and losses, representing the change in fair value of the derivative, are being recorded in interest income in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income.

Fair Value Hedges. The Company executed two interest rate swaps with an original notional amounts totaling $20.0 million during fiscal 2025, and executed two interest rate swaps with original notional amounts totaling $40.0 million during fiscal 2024, for a total of $60.0 million outstanding as of December 31, 2025, designated as fair value hedges, to convert certain long-term fixed rate 1-4 family residential real estate loans to floating rates to hedge interest rate risk exposure. The portfolio layer method is being used, which allows the Company to designate a stated amount of the assets that are not expected to be affected by prepayments, defaults or other factors that could affect the timing and amount of the cash flow, as the hedged item. The effect of the swaps on loan interest income in the income statement during the three- and six-month periods ended December 31, 2025, was $33,000 and $89,000, respectively, compared to $83,000 and $261,000, respectively, in the three- and six-month periods ended December 31, 2024.

The notional amounts and estimated fair values of the Company’s interest rate swaps at December 31, 2025, and June 30, 2025 are presented in the tables below:


	December 31, 2025
			Fair Value
		Notional	Other		Other
(dollars in thousands)		Amount	Assets		Liabilities
1-4 Family interest rate swaps	$	60,000	$	884	$	827

-40-

Table of Contents


	June 30, 2025
			Fair Value
		Notional	Other		Other
(dollars in thousands)		Amount	Assets		Liabilities
1-4 Family interest rate swaps	$	60,000	$	912	$	877

The carrying amount of the hedged assets, included in loans receivable, net and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets at December 31, 2025, and June 30, 2025 are presented in the tables below:


	December 31, 2025
	Carrying		Cumulative Amount of Fair Value
	Amount of		Hedging Adj Included in
(dollars in thousands)	Hedged Assets		Carrying Amount of Hedged assets
1-4 Family interest rate swaps	$	442,247	$	871


	June 30, 2025
	Carrying		Cumulative Amount of Fair Value
	Amount of		Hedging Adj Included in
(dollars in thousands)	Hedged Assets		Carrying Amount of Hedged assets
1-4 Family interest rate swaps	$	474,855	$	892

Non-Hedging Interest Rate Derivatives. During the six-month period ended December 31, 2025, the Company entered into two interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. Additionally, the Company receives an upfront, non-refundable fee from the upstream counterparty, dependent upon the pricing, that is recognized in noninterest income upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations.

Interest rate swaps that were not designated as hedging instruments as of December 31, 2025 are summarized as follows:


	December 31, 2025
			Fair Value
	Notional		Other		Other
(dollars in thousands)	Amount		Assets		Liabilities
Non-Hedging interest rate swap contracts	$	28,500	$	360	$	—
Non-Hedging interest rate swap contracts		28,500		—		360

Note 14: Segment Reporting

The Company operates as a single segment entity for financial reporting purposes and adopted ASU 2023-07 during the year ended June 30, 2025. The Chief Executive Officer, Greg Steffens, serves as the Company’s chief operating decision maker (CODM). The CODM allocates resources and assesses performance of the Company based on the consolidated net income, excluding all significant intercompany balances and transactions, of the Company and its wholly owned subsidiaries and does not significantly utilize disaggregated segment financial information for decision making and resource allocation. Management has reviewed the requirements of ASU 2023-07 and has determined that no additional segment disclosures are required.

Based on this assessment, the Company believes that its financial statement disclosures fully comply with ASC 2023-07, and no additional qualitative segment disclosures are necessary.

-41-

Table of Contents

PART I: Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

SOUTHERN MISSOURI BANCORP, INC.

General

Southern Missouri Bancorp, Inc. (Company) is a Missouri corporation and owns all of the outstanding stock of Southern Bank (Bank). The Company’s earnings are primarily dependent on the operations of the Bank. As a result, the following discussion relates primarily to the operations of the Bank. The Bank’s deposit accounts are generally insured up to a maximum of $250,000 by the Deposit Insurance Fund (DIF), which is administered by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2025, the Bank operated from its headquarters, 63 full-service branch offices, two limited-service branch offices, and three loan production offices. The Bank owns the office building and related land in which its headquarters are located, and 60 of its other branch offices. The remaining eight branches and offices are either leased or partially owned.

The significant accounting policies followed by Southern Missouri and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying consolidated financial statements.

The consolidated balance sheet of the Company as of June 30, 2025, has been derived from the audited consolidated balance sheet of the Company as of that date. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission.

Management’s discussion and analysis of financial condition and results of operations is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes. The following discussion reviews the Company’s condensed consolidated financial condition at December 31, 2025, and results of operations for the three- and six-month periods ended December 31, 2025, and 2024.

Forward Looking Statements

This document contains statements about the Company and its subsidiaries which we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, without limitation, statements with respect to anticipated future operating and financial performance, growth opportunities, interest rates, cost savings and funding advantages expected or anticipated to be realized by management. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements by the Company and its management are based on beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and are not guarantees of future performance. The important factors we discuss below, as well as other factors discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and identified in this filing and in our other filings with the SEC and those presented elsewhere by our management from time to time, could cause actual results to differ materially from those indicated by the forward-looking statements made in this document:

●

expected cost savings, synergies and other benefits from our merger and acquisition activities, including our recently completed acquisitions, might not be realized within the anticipated time frames, to the extent anticipated, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred;

-42-

Table of Contents

●

potential adverse impacts to economic conditions, both nationally and in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth;

●

the strength of the United States economy in general and the strength of the local economies in which we conduct operations;

●

fluctuations in interest rates and inflation, including the effects of a potential recession whether caused by Federal Reserve actions or otherwise or slowed economic growth caused by changes in oil prices or supply chain disruptions;

●

the impact of monetary and fiscal policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”) and the U.S. Government and other governmental initiatives affecting the financial services industry;

●

potential imposition of new or increased tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors;

●

the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment;

●

the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses (ACL) on loans;

●

our ability to access cost-effective funding and maintain sufficient liquidity;

●

the timely development of and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services;

●

fluctuations in real estate values and both residential and commercial real estate markets, as well as agricultural business conditions;

●

fluctuations in the demand for loans and deposits, including our ability to attract and retain deposits;

●

the impact of a federal government shutdown;

●

legislative or regulatory changes that adversely affect our business;

●

the effects of climate change, severe weather events, other natural disasters, war, terrorist activities or civil unrest and their effects on economic and business environments in which the Company operates;

●

changes in accounting principles, policies, or guidelines;

●

results of examinations of us by our regulators, including the impact on FDIC insurance premiums and the possibility that our regulators may, among other things, require an increase in our reserve for credit losses on loans or a write-down of assets;

●

the impact of technological changes and an inability to keep pace with the rate of technological advances;

-43-

Table of Contents

●

the inability of key third party providers to perform their obligations to us;

●

cyber threats, such as phishing, ransomware, and insider attacks, can lead to financial loss, reputational damage, and regulatory penalties if sensitive customer data and critical infrastructure are not adequately protected;

●

our ability to retain key members of our management team; and

●

our success at managing the risks involved in the foregoing.

The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

Critical Accounting Policies

Accounting principles generally accepted in the United States of America are complex and require management to apply significant judgments to various accounting, reporting and disclosure matters. Management of the Company must use assumptions and estimates to apply these principles where actual measurement is not possible or practical. For a complete discussion of the Company’s significant accounting policies, see “Note 1 of the Consolidated Financial Statements” in the Company’s 2025 Annual Report on Form 10-K and “Note 2 of the Notes to the Consolidated Financial Statements” in the Form 10-Q. Certain policies are considered critical because they are highly dependent upon subjective or complex judgments, assumptions and estimates. Changes in such estimates may have a significant impact on the financial statements. Management has reviewed the application of these policies with the Audit Committee of the Company’s Board of Directors. For a discussion of applying critical accounting policies, see “Critical Accounting Policies and Estimates” beginning on page 62 in the Company’s 2025 Annual Report.

Executive Summary

Our results of operations depend primarily on our net interest margin, which is directly impacted by the interest rate environment. The net interest margin represents interest income earned on interest-earning assets (primarily real estate loans, commercial and agricultural loans, and the investment portfolio), less interest expense paid on interest-bearing liabilities (primarily interest-bearing transaction accounts, certificates of deposit, savings and money market deposit accounts, and borrowed funds), as a percentage of average interest-earning assets. Net interest margin is directly impacted by the spread between long-term interest rates and short-term interest rates, as our interest-earning assets, particularly those with initial terms to maturity or repricing greater than one year, generally price off longer term rates while our interest-bearing liabilities generally price off shorter term interest rates. This difference in longer term and shorter term interest rates is often referred to as the steepness of the yield curve. A steep yield curve, in which the difference in interest rates between short term and long term periods is relatively large, could be beneficial to our net interest income, as the interest rate spread between our interest-earning assets and interest-bearing liabilities would be larger. Conversely, a flat or flattening yield curve, in which the difference in rates between short term and long term periods is relatively small or shrinking, or an inverted yield curve, in which short term rates exceed long term rates, could have an adverse impact on our net interest income, as our interest rate spread could decrease.

Results of operations may also be affected significantly by general and local economic and competitive conditions, particularly those with respect to changes in market interest rates, government policies, and actions of regulatory authorities.

During the first six months of fiscal 2026, total assets increased by $74.8 million. The increase was primarily attributable to an increase in net loans receivable, partially offset by decreases in cash and cash equivalents, and AFS securities. Loans, net of the ACL, increased $123.1 million; cash equivalents decreased by $58.8 million; and AFS securities decreased $15.9 million. Liabilities increased $52.1 million, primarily attributable to increases in deposits of $27.0 million, accounts payable and other liabilities of $22.2 million, and securities sold under agreements to repurchase of $5.0 million, partially offset by a decrease in FHLB advances of $2.0 million. Equity increased $22.7 million, attributable primarily to earnings retained after cash dividends paid, in combination with a $2.7 million reduction in

-44-

Table of Contents

accumulated other comprehensive losses (AOCL) due to the market value of the Company’s investments appreciating as a result of the decrease in market interest rates, partially offset by the purchase of treasury stock totaling $8.5 million. For more information, see “Comparison of Financial Condition at December 31, 2025, and June 30, 2025.”

We expect, over time, to continue to grow our assets through the origination and occasional purchase of loans, and purchases of investment securities. The primary funding for this asset growth is expected to come through deposits from retail and commercial clients, as well as public units. In addition, we may utilize brokered funding and short- and long-term FHLB borrowings. We have grown and intend to continue to grow deposits by offering desirable deposit products for our current customers and by attracting new depository relationships. We will also continue to explore strategic expansion opportunities in market areas that we believe will be attractive to our business model.

Net income for the first six months of fiscal 2026 was $33.8 million, an increase of $6.7 million, or 24.7% as compared to the same period of the prior fiscal year. The increase was due primarily to an increase in net interest income and a decrease in noninterest expense, partially offset by increases in PCL and provision for income taxes, and a decrease in noninterest income. For the six-month period ended December 31, 2025, fully-diluted net income per share available to common stockholders was $3.00, up $0.60, or 25.0%, as compared to the same period a year ago. Our annualized return on average assets for the six-month period ended December 31, 2025, was 1.33%, as compared to 1.14% for the same period of the prior fiscal year. Our annualized return on average common stockholders’ equity for the six-month period ended December 31, 2025, was 12.0%, as compared to 10.7% in the same period of the prior fiscal year. For the first six months of fiscal 2026, as compared to the same period of the prior fiscal year, net interest income increased $10.5 million, or 14.0%, and noninterest expense decreased $397,000, or 0.8%. These items were partially offset by an increase in PCL of $3.1 million, or 100.0%, an increase in provision for income taxes of $411,000, or 5.2%, and a decrease in noninterest income of $690,000, or 4.9%. For more information see “Results of Operations – Comparison of the six-month periods ended December 31, 2025, and 2024”.

Interest rates during the first six months of fiscal 2026 remained relatively stable and moved lower at the shorter end and mid-point of the curve as employment slowed somewhat and inflation remained relatively stable but above target. Market expectations are for further reductions in the federal funds rate over the next year, while there are concerns that economic conditions could keep inflation somewhat elevated and above the FOMC target range, which has led to some steepening of the yield curve. At December 31, 2025, the yield curve had a 71 basis point positive slope between the two-year and ten-year treasury rates.

As compared to the first six months of the prior fiscal year, our average yield on earning assets decreased by three basis points, primarily attributable to decreased yields on AFS securities, and a higher percentage of earning assets in securities and cash, partially offset by increased yields on loans receivable, as loans renewed and new loans were originated at higher market rates. The cost of interest-bearing liabilities decreased by 30 basis points due primarily to lower market rates. Driven by average interest-bearing liabilities repricing lower, the net interest spread increased 27 basis points from 2.76% to 3.03% and the net interest margin increased by 23 basis points from 3.34% to 3.57% during the first six months of fiscal 2026, as compared to the same period in fiscal 2025. In addition, net interest income benefitted from a 6.6% increase in average earnings assets, compared to the prior fiscal year period. The combination of a higher percentage of variable rate deposits compared to the prior fiscal year and lower short term rates, easing the pressure on interest expense, and loans repricing to higher market rates, has allowed the net interest spread and net interest margin to expand in the fiscal 2026 period.

The Company’s net income is also affected by the level of its noninterest income and noninterest expense. Noninterest income generally consists of deposit account service charges, bank card interchange income, loan-related fees, earnings on bank owned life insurance, gains on sales of loans, and other general operating income. Noninterest expense consists primarily of compensation and employee benefits, occupancy-related expenses, data processing expense, telecommunications expense, deposit insurance assessments, legal and professional fees, advertising, postage and office expenses, amortization of intangible assets, and other general operating expenses.

The Company’s noninterest income for the six-month period ended December 31, 2025, was $13.3 million, a decrease of $690,000, or 4.9%, as compared to the same period of the prior fiscal year. The decrease was primarily attributable to decreases in loan fees resulting from a refinement of fee recognition in our application of ASC 310-20, “Receivables -

-45-

Table of Contents

Nonrefundable Fees and Other Costs”, and lower realized gains on sales of loans, partially offset by increases in deposit account charges and related fees, bank card interchange income, wealth management fees, insurance brokerage income, and earnings on bank owned life insurance.

Noninterest expense for the six-month period ended December 31, 2025, was $50.3 million, a decrease of $397,000, or 0.8%, as compared to the same period of the prior fiscal year. The decrease was attributable primarily to lower compensation and benefits, legal and professional fees, intangible amortization, and telecommunication expenses. The decrease in compensation and benefits expense was primarily driven by a refinement of expense recognition in our applications of ASC 310-20. Legal and professional fees decreased from the prior-year period, which included $840,000 of costs related to a performance improvement project designed to enhance the Bank’s operations and revenue performance, while in the first six months of fiscal 2026, legal and professional fees included $572,000 of consulting costs associated with the negotiation of a new contract with a key vendor. These decreases were partially offset by higher data processing expenses, occupancy expenses, advertising, deposit insurance premiums, and various minor increases across other expense categories.

Comparison of Financial Condition at December 31, 2025, and June 30, 2025

The Company experienced balance sheet growth in the first six months of fiscal 2026, with total assets of $5.1 billion at December 31, 2025, reflecting an increase of $74.8 million, or 1.5%, as compared to June 30, 2025. Growth primarily reflected an increase in net loans receivable, partially offset by decreases in cash equivalents and time deposits and AFS securities.

Cash equivalents and time deposits were a combined $134.3 million at December 31, 2025, a decrease of $58.8 million, or 30.4%, as compared to June 30, 2025. The decrease was primarily the result of loan growth that outpaced deposit generation during the period. AFS securities were $445.0 million at December 31, 2025, down $15.9 million, or 3.4%, as compared to June 30, 2025, reflecting normal principal amortization as well as early redemptions from callable securities, which accelerated portfolio runoff during the period.

Loans, net of the ACL, were $4.2 billion at December 31, 2025, increasing by $123.1 million, or 3.0%, as compared to June 30, 2025. The Company noted growth primarily in 1-4 family residential real estate, multi-family real estate, commercial and industrial, both non-owner and owner occupied commercial real estate, and agriculture real estate loan balances. This was somewhat offset by decreases in construction and land development loans, agricultural production loans, and consumer loans.

Loans anticipated to fund in the next 90 days totaled $159.1 million at December 31, 2025, as compared to $224.1 million at June 30, 2025, and $172.5 million at December 31, 2024.

The Bank’s concentration in non-owner occupied commercial real estate, as defined for regulatory purposes, is estimated at 289.4% of Tier 1 capital and ACL at December 31, 2025, as compared to 301.9% as of June 30, 2025, with these loans representing 39.4% of gross loans at December 31, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 35 loans totaling $21.1 million, or 0.50% of gross loans at December 31, 2025, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Deposits were $4.3 billion at December 31, 2025, an increase of $27.0 million, or 0.63%, as compared to June 30, 2025. The deposit portfolio saw year-to-date increases in nonmaturity deposit accounts primarily from seasonal ag and public unit deposit inflows, which was partially offset by a decrease in certificates of deposit. Nonmaturity deposit growth was

-46-

Table of Contents

primarily driven by savings, NOW, and non-interest bearing accounts. The decrease in certificates of deposit was largely driven by a $54.1 million reduction in brokered certificates compared to June 30, 2025. Brokered deposits totaled $182.2 million at December 31, 2025, a decrease of $52.9 million as compared to June 30, 2025. Public unit balances totaled $584.1 million at December 31, 2025, an increase of $33.3 million compared to June 30, 2025. The average loan-to-deposit ratio for the second quarter of fiscal 2026 was 96.7%, as compared to 94.5% for the quarter ended June 30, 2025, and 96.4% for the same period of the prior fiscal year.

FHLB advances were $102.0 million at December 31, 2025, a decrease of $2.0 million, or 1.9%, as compared to June 30, 2025, due to maturing advances which were not renewed. For the quarter ended December 31, 2025, the Company continued to have no FHLB overnight borrowings at the end of the period.

The Company’s stockholders’ equity was $567.4 million at December 31, 2025, an increase of $22.7 million, or 4.2%, as compared to June 30, 2025. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $2.7 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $8.6 million at December 31, 2025 compared to $11.4 million at June 30, 2025. The Company does not hold any securities classified as held-to-maturity. The increase in stockholders’ equity was partially offset by $8.5 million utilized for the repurchase of 156,000 shares of the Company’s common stock year-to-date at an average price of $54.34 per share.

-47-

Table of Contents

Average Balance Sheet, Interest, and Average Yields and Rates for the Three- and Six-Month Periods Ended

December 31, 2025, and 2024

The table below presents certain information regarding our financial condition and net interest income for the three- and six-month periods ended December 31, 2025, and 2024. The table presents the annualized average yield on interest-earning assets and the annualized average cost of interest-bearing liabilities. We derived the yields and costs by dividing annualized income or expense by the average balance of interest-earning assets and interest-bearing liabilities, respectively, for the periods shown. Yields on tax-exempt obligations were not computed on a tax equivalent basis.


	Three-month period ended							Three-month period ended
	December 31, 2025							December 31, 2024
(dollars in thousands)	Average			Interest and		Yield/		Average			Interest and		Yield/
	Balance			Dividends		Cost (%)		Balance			Dividends		Cost (%)
Interest-earning assets:
Mortgage loans ⁽¹⁾	$	3,283,783		$	49,869	6.02		$	3,193,767		$	48,059	5.97
Other loans ⁽¹⁾		897,375			16,106	7.12			795,876			15,023	7.49
Total net loans		4,181,158			65,975	6.26			3,989,643			63,082	6.27
Mortgage-backed securities		362,048			3,933	4.31			348,580			4,075	4.64
Investment securities ⁽²⁾		116,171			1,265	4.32			131,053			1,483	4.49
Other interest-earning assets		103,156			1,059	4.08			64,976			784	4.79
TOTAL INTEREST- EARNING ASSETS ⁽¹⁾		4,762,533			72,232	6.02			4,534,252			69,424	6.07
Other noninterest-earning assets ⁽³⁾		321,042			—				291,217			—
TOTAL ASSETS	$	5,083,575		$	72,232			$	4,825,469		$	69,424

Interest-bearing liabilities:
Savings accounts	$	707,480		$	4,195	2.35		$	558,211		$	3,760	2.67
NOW accounts		1,131,607			5,007	1.76			1,150,961			5,557	1.92
Money market accounts		337,758			2,200	2.58			338,526			2,430	2.85
Certificates of deposit		1,605,919			16,297	4.03			1,568,069			17,791	4.50
TOTAL INTEREST- BEARING DEPOSITS		3,782,764			27,699	2.91			3,615,767			29,538	3.24
Borrowings:
Securities sold under agreements to repurchase		20,000			204	4.05			15,000			226	5.98
FHLB advances		102,046			1,080	4.20			107,054			1,099	4.07
Junior subordinated debt		23,228			379	6.47			23,175			418	7.16
TOTAL INTEREST- BEARING LIABILITIES		3,928,038			29,362	2.97			3,760,996			31,281	3.30
Noninterest-bearing demand deposits		541,110			—				524,878			—
Other liabilities		51,411			—				31,442			—
TOTAL LIABILITIES		4,520,559			29,362				4,317,316			31,281
Stockholders’ equity		563,016			—				508,153			—
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,083,575		$	29,362			$	4,825,469		$	31,281

Net interest income				$	42,870						$	38,143
Interest rate spread ⁽⁴⁾						3.05	%						2.77	%
Net interest margin ⁽⁵⁾						3.57	%						3.34	%
Ratio of average interest-earning assets to average interest-bearing liabilities		121.24	%						120.56	%

(1)	Calculated net of deferred loan fees, and loan discounts. Non-accrual loans are not included in average loans.

(2)	Includes FHLB membership stock, Federal Reserve Bank of St. Louis membership stock and related cash dividends.

(3)	Includes average balances for fixed assets and BOLI of $94.6 million and $76.4 million, respectively, for the three-month period ended December 31, 2025, as compared to $96.0 million and $74.3 million, respectively, for the same period of the prior fiscal year.

(4)	Interest rate spread represents the difference between the average rate on interest-earning assets and the average cost of interest-bearing liabilities.

(5)	Net interest margin represents annualized net interest income divided by average interest-earning assets.

-48-

Table of Contents


	Six-month period ended							Six-month period ended
	December 31, 2025							December 31, 2024
(dollars in thousands)	Average			Interest and		Yield/		Average			Interest and		Yield/
	Balance			Dividends		Cost (%)		Balance			Dividends		Cost (%)
Interest-earning assets:
Mortgage loans ⁽¹⁾	$	3,264,810		$	99,979	6.07		$	3,152,280		$	94,217	5.93
Other loans ⁽¹⁾		885,199			32,455	7.27			787,411			30,618	7.71
Total net loans		4,150,009			132,434	6.33			3,939,691			124,835	6.29
Mortgage-backed securities		366,795			8,084	4.37			335,292			8,001	4.73
Investment securities ⁽²⁾		118,877			2,570	4.29			134,619			3,105	4.61
Other interest-earning assets		100,552			2,174	4.29			35,261			862	4.85
TOTAL INTEREST- EARNING ASSETS ⁽¹⁾		4,736,233			145,262	6.08			4,444,863			136,803	6.11
Other noninterest-earning assets ⁽³⁾		311,836			—				287,137			—
TOTAL ASSETS	$	5,048,069		$	145,262			$	4,732,000		$	136,803

Interest-bearing liabilities:
Savings accounts	$	689,503		$	8,625	2.48		$	547,335		$	7,780	2.84
NOW accounts		1,117,226			10,105	1.79			1,143,663			11,417	1.98
Money market accounts		333,897			4,495	2.67			335,816			5,097	3.01
Certificates of deposit		1,621,437			33,414	4.09			1,489,445			34,040	4.53
TOTAL INTEREST- BEARING DEPOSITS		3,762,063			56,639	2.99			3,516,259			58,334	3.29
Borrowings:
Securities sold under agreements to repurchase		19,022			404	4.21			13,661			386	5.60
FHLB advances		102,228			2,161	4.19			115,388			2,425	4.17
Junior subordinated debt		23,221			770	6.58			23,169			853	7.30
TOTAL INTEREST- BEARING LIABILITIES		3,906,534			59,974	3.05			3,668,477			61,998	3.35
Noninterest-bearing demand deposits		537,460			—				528,412			—
Other liabilities		46,673			—				32,590			—
TOTAL LIABILITIES		4,490,667			59,974				4,229,479			61,998
Stockholders’ equity		557,402			—				502,521			—
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,048,069		$	59,974			$	4,732,000		$	61,998

Net interest income				$	85,288						$	74,805
Interest rate spread ⁽⁴⁾						3.03	%						2.76	%
Net interest margin ⁽⁵⁾						3.57	%						3.34	%
Ratio of average interest-earning assets to average interest-bearing liabilities		121.24	%						121.16	%

(1)	Calculated net of deferred loan fees, and loan discounts. Non-accrual loans are not included in average loans.

(2)	Includes FHLB membership stock, Federal Reserve Bank of St. Louis membership stock and related cash dividends.

(3)	Includes average balances for fixed assets and BOLI of $95.0 million and $76.2 million, respectively, for the six-month period ended December 31, 2025, as compared to $95.8 million and $74.1 million, respectively, for the same period of the prior fiscal year.

(4)	Interest rate spread represents the difference between the average rate on interest-earning assets and the average cost of interest-bearing liabilities.

(5)	Net interest margin represents annualized net interest income divided by average interest-earning assets.

-49-

Table of Contents

Rate/Volume Analysis

The following table sets forth the effects of changing rates and volumes on the Company’s net interest income for the three- and six-month periods ended December 31, 2025, compared to the three- and six-month periods ended December 31, 2024. Information is provided with respect to (i) effects on interest income and expense attributable to changes in volume (changes in volume multiplied by the prior rate), (ii) effects on interest income and expense attributable to change in rate (changes in rate multiplied by prior volume), and (iii) changes in rate/volume (change in rate multiplied by change in volume).


	Three-month period ended December 31, 2025
	Compared to three-month period ended December 31, 2024
	Increase (Decrease) Due to
					Rate/
(dollars in thousands)	Rate		Volume		Volume		Net
Interest-earning assets:
Loans receivable ⁽¹⁾	$	(129)	$	3,003	$	19	$	2,893
Mortgage-backed securities		(287)		156		(11)		(142)
Investment securities ⁽²⁾		(56)		(167)		5		(218)
Other interest-earning deposits		(115)		457		(67)		275
Total net change in income on interest-earning assets		(587)		3,449		(54)		2,808

Interest-bearing liabilities:
Deposits		(2,990)		1,324		(173)		(1,839)
Securities sold under agreements to repurchase		(72)		75		(25)		(22)
FHLB advances		(40)		1		—		(39)
Subordinated debt		34		(51)		(2)		(19)
Total net change in expense on interest-bearing liabilities		(3,068)		1,349		(200)		(1,919)
Net change in net interest income	$	2,481	$	2,100	$	146	$	4,727

(1)	Does not include interest on loans placed on nonaccrual status.

(2)	Does not include dividends earned on equity securities.


	Six-month period ended December 31, 2025
	Compared to six-month period ended December 31, 2024
	Increase (Decrease) Due to
					Rate/
(dollars in thousands)	Rate		Volume		Volume		Net
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,126	$	14,215	$	(7,742)	$	7,599
Mortgage-backed securities		(1,212)		1,491		(196)		83
Investment securities ⁽²⁾		(433)		(726)		624		(535)
Other interest-earning deposits		(197)		3,166		(1,657)		1,312
Total net change in income on interest-earning assets		(716)		18,146		(8,971)		8,459

Interest-bearing liabilities:
Deposits		(11,872)		9,440		737		(1,695)
Securities sold under agreements to repurchase		(190)		300		(92)		18
FHLB advances		27		(549)		258		(264)
Subordinated debt		(167)		4		80		(83)
Total net change in expense on interest-bearing liabilities		(12,202)		9,195		983		(2,024)
Net change in net interest income	$	11,486	$	8,951	$	(9,954)	$	10,483

(1)	Does not include interest on loans placed on nonaccrual status.

(2)	Does not include dividends earned on equity securities.

-50-

Table of Contents

Results of Operations – Comparison of the three-month periods ended December 31, 2025, and 2024

General. Net income for the three-month period ended December 31, 2025, was $18.2 million, an increase of $3.5 million or 23.9%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to an increase in net interest income, partially offset by increases in PCL and noninterest expense, and a decrease in noninterest income.

For the three-month period ended December 31, 2025, fully-diluted net income per share available to common stockholders was $1.62, up $0.32, or 24.6%, as compared to the same quarter a year ago. Our annualized return on average assets for the three-month period ended December 31, 2025, was 1.42%, as compared to 1.20% for the same period of the prior fiscal year. Our annualized return on average common stockholders’ equity for the three-month period ended December 31, 2025, was 12.8%, as compared to 11.4% in the same period of the prior fiscal year.

Net Interest Income. Net interest income for the three-month period ended December 31, 2025, was $42.9 million, an increase of $4.7 million, or 12.4%, as compared to the same period of the prior fiscal year. The increase was attributable to a 5.0% increase in the average balance of interest-earning assets and a 23-basis point increase in the net interest margin, from 3.34% to 3.57%, as the cost of interest-bearing liabilities decreased by 33 basis points, partially offset by a five-basis point decrease in the yield earned on interest earning assets.

Loan discount accretion and liability premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $653,000 in net interest income for the three-month period ended December 31, 2025, as compared to $987,000 in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended December 31, 2025, compared to nine basis points during the same period of the prior fiscal year.

Provision for Credit Losses. The Company recorded a PCL of $1.7 million in the three-month period ended December 31, 2025, as compared to a PCL of $932,000 in the same period of the prior fiscal year. The current period PCL had no provision attributable to the allowance for off-balance sheet credit exposures. The factors considered when estimating a required ACL and PCL for loan balances outstanding is detailed below under “Allowance for Credit Loss Activity”.

Noninterest Income. Noninterest income for the three-month period ended December 31, 2025, was $6.8 million, a decrease of $89,000, or 1.3%, as compared to the same period of the prior fiscal year. The decrease was primarily attributable to other loan fees, reflecting a refinement of our fee recognition under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, with a greater portion now recognized in interest income over the life of the loan. The decrease was partially offset by an increase in bank card interchange income, deposit account charges and related fees, and wealth management fees.

Noninterest Expense. Noninterest expense for the three-month period ended December 31, 2025, was $25.3 million, an increase of $394,000, or 1.6%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher data processing, occupancy and equipment, and advertising expenses. Data processing costs increased due to higher transaction volumes and increased software licensing costs. Occupancy and equipment expense growth was primarily driven by elevated maintenance and repair costs, additional depreciation associated with a new branch and remodel projects, and higher real estate taxes. Advertising expense increased due to increased marketing activity and charitable contributions. These increases were partially offset by lower legal and professional fees, reduced intangible amortization as certain merger-related intangibles became fully amortized, and lower compensation and benefits expense, reflecting refinements in the application of ASC 310-20, under which a greater portion of loan origination costs, including related compensation, is deferred and recognized as a reduction of interest income over the life of the loan.

Income Taxes. The income tax provision for the three-month period ended December 31, 2025, was $4.5 million, relatively unchanged from the same period in the prior fiscal year. The effective tax rate for the current quarter was

-51-

Table of Contents

20.0%, compared to 23.7% for the quarter ended December 31, 2024. The higher effective tax rate in the prior-year quarter primarily reflected adjustments to tax accruals related to completed merger and acquisition activity.

Results of Operations – Comparison of the six-month periods ended December 31, 2025, and 2024

General. Net income for the six-month period ended December 31, 2025, was $33.8 million, an increase of $6.7 million or 24.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to an increase in net interest income and a decrease in noninterest expense, partially offset by increases in PCL and provision for income taxes, and a decrease in noninterest income.

For the six-month period ended December 31, 2025, fully-diluted net income per share available to common stockholders was $3.00, up $0.60, or 25.0%, as compared to the same quarter a year ago. Annualized return on average assets for the six-month period ended December 31, 2025, was 1.33%, as compared to 1.14% for the same period of the prior fiscal year. Annualized return on average common stockholders’ equity for the six-month period ended December 31, 2025, was 12.0%, as compared to 10.7% in the same period of the prior fiscal year.

Net Interest Income. Net interest income for the six-month period ended December 31, 2025, was $85.3 million, an increase of $10.5 million, or 14.0%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.6% increase in the average balance of interest-earning assets in the current six-month period, as compared to the same period a year ago, and a 23 basis point increase in net interest margin, from 3.34% to 3.57%, as the cost of interest-bearing liabilities decreased by 30 basis points, and the yield earned on interest earning assets decreased by three basis points.

Loan discount accretion and liability premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $1.5 million of net interest income for the six-month period ended December 31, 2025, as compared to $2.0 million of net interest income for the same period a year ago. Combined, this component of net interest income contributed six basis points to net interest margin in the six-month period ended December 31, 2025, as compared to a nine-basis point contribution for the same period of the prior fiscal year.

Provision for Credit Losses. The Company recorded a PCL of $6.2 million in the six-month period ended December 31, 2025, as compared to a PCL of $3.1 million in the same period of the prior fiscal year. The current period PCL was the result of a $5.8 million provision attributable to the ACL for loan balances outstanding and a $359,000 provision attributable to the allowance for off-balance sheet credit exposures. The factors considered when estimating a required ACL and PCL for loan balances outstanding is detailed below under “Allowance for Credit Loss Activity” and the PCL for off-balance sheet credit exposure was primarily attributable to an increase in unfunded balances and an increase in required reserves for pooled loans.

Noninterest Income. Noninterest income for the six-month period ended December 31, 2025, was $13.3 million, a decrease of $690,000, or 4.9%, as compared to the same period of the prior fiscal year. The decrease was primarily attributable to lower other loan fees and a decrease in net realized gains on sales of loans driven by a lower volume of SBA production. Other loan fees declined, reflecting a refinement of our fee recognition under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, with a greater portion now recognized in interest income over the life of the loan. These decreases were partially offset by increases in deposit account charges and related fees, bank card interchange income, wealth management fees, insurance brokerage income, earnings on bank owned life insurance, and other noninterest income. Other noninterest income increased primarily due to the recognition of modest losses on the disposal of fixed assets in the year ago period, attributable to various equipment disposals, with no similar activity in the current period.

Noninterest Expense. Noninterest expense for the six-month period ended December 31, 2025, was $50.3 million, a decrease of $397,000, or 0.8%, as compared to the same period of the prior fiscal year. The decrease was attributable primarily to lower compensation and benefits, legal and professional fees, intangible amortization, and

-52-

Table of Contents

telecommunication expenses. The decrease in compensation and benefits expense was primarily driven by the aforementioned refinement in the application of ASC 310-20, under which a larger portion of loan origination costs, including related compensation, are being deferred and recognized as a reduction of interest income over the life of the loan. Legal and professional fees decreased from the prior-year period, which included $840,000 in costs related to a performance improvement project designed to enhance the Bank’s operations and revenue performance. By comparison, the first six months of fiscal 2026, legal and professional fees included $572,000 of consulting costs associated with the negotiation of a new contract with a key vendor. These decreases were partially offset by higher data processing costs, occupancy expenses, advertising, deposit insurance premiums, and various minor increases across other expense categories.

Income Taxes. The income tax provision for the six-month period ended December 31, 2025, was $8.3 million, an increase of $411,000, or 5.2%, as compared to the same period of the prior fiscal year, primarily due to the increase in net income before income taxes. The effective tax rate for the fiscal year to date was 19.8%, compared to 22.6% in the same period of the prior fiscal year. The lower rate was due to the absence of merger-related tax accrual adjustments that elevated the same period of the prior fiscal year’s rate, combined with the impact of lower state tax rates and a revised apportionment methodology, in the current period. The current period also benefited from the recognition of tax credits under the proportional amortization method in accordance with ASC 2023-02.

Allowance for Credit Loss Activity

The Company regularly reviews its ACL and makes adjustments to its balance based on management’s estimate of (1) the total expected losses included in the Company’s financial assets held at amortized cost, which is limited to the Company’s loan portfolio, and (2) any credit deterioration in the Company’s available-for-sale securities as of the balance sheet date. The Company does not hold any securities classified as held-to-maturity.

Although the Company maintains its ACL at a level that it considers sufficient to provide for losses, there can be no assurance that future losses will not exceed internal estimates. In addition, the amount of the ACL is subject to review by regulatory agencies, which can order the Company to record additional allowances. The required ACL has been estimated based upon the guidelines in ASC Topic 326, Financial Instruments – Credit Losses.

The estimate involves consideration of quantitative and qualitative factors relevant to the loan portfolio as segmented by the Company, and is based on an evaluation, at the reporting date, of historical loss experience, coupled with qualitative adjustments to address current economic conditions and credit quality, and reasonable and supportable forecasts. Specific qualitative factors considered include, but may not be limited to:

•Changes in lending policies and/or loan review system

•National, regional, and local economic trends and/or conditions

•Changes and/or trends in the nature, volume, or terms of the loan portfolio

•Experience, ability, and depth of lending management and staff

•Levels and/or trends of delinquent, non-accrual, problem assets, or charge offs and recoveries

•Concentrations of credit

•Changes in collateral values

•Agricultural economic conditions

•Risks from regulatory, legal, or competitive factors

-53-

Table of Contents

The following table summarizes changes in the ACL over the three- and six-month periods ended December 31, 2025, and 2024:


	For the three months ended				For the six months ended
	December 31,				December 31,
(dollars in thousands)	2025		2024		2025		2024
Balance, beginning of period	$	52,081	$	54,437	$	51,629	$	52,516
Loans charged off:
1-4 Family residential real estate		(697)		(2)		(847)		(50)
Non-owner occupied commercial real estate		—		—		(2,875)		—
Owner occupied commercial real estate		(34)		(122)		(34)		(122)
Multi-family real estate		—		—		—		—
Construction and land development		—		(1)		(161)		(1)
Agriculture real estate		—		—		—		—
Commercial and industrial		(483)		(26)		(824)		(65)
Agriculture production		(63)		—		(116)		—
Consumer		(231)		(129)		(522)		(201)
All other loans		—		—		—		—
Gross charged off loans		(1,508)		(280)		(5,379)		(439)
Recoveries of loans previously charged off:
1-4 Family residential real estate		1		46		1		46
Non-owner occupied commercial real estate		2,000		—		2,000		—
Owner occupied commercial real estate		122		—		122		—
Multi-family real estate		—		—		—		47
Construction and land development		—		—		—		—
Agriculture real estate		—		—		—		—
Commercial and industrial		6		32		38		37
Agriculture production		—		—		66		—
Consumer		83		4		167		11
All other loans		—		—		—		—
Gross recoveries of charged off loans		2,212		82		2,394		141
Net charge offs		704		(198)		(2,985)		(298)
Provision charged to expense		1,680		501		5,821		2,522
Balance, end of period	$	54,465	$	54,740	$	54,465	$	54,740

The ACL at December 31, 2025, totaled $54.5 million, representing 1.29% of gross loans and 184% of nonperforming loans, as compared to an ACL of $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans at June 30, 2025. The Company has estimated its expected credit losses as of December 31, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant economic uncertainty despite recent reductions in short-term interest rates as labor market conditions soften, while inflation remains above target. The increase in the ACL was primarily attributable to management’s assessment of reserve adequacy amid an evolving economic environment, additions to individually reviewed loans, slightly higher reserves required for pooled loans, and loan growth. This was partially offset by net charge-offs. As a percentage of average loans outstanding, the Company recorded net recoveries of 0.07% (annualized) during the current quarter, as compared to net charge-offs of 0.02% for the same period of the prior fiscal year. In the three-month period ended December 31, 2025, net recoveries were $704,000, which was primarily attributable to a $2.0 million recovery associated with one of the loan modifications to borrowers experiencing financial difficulty, which was reserved for in the fourth quarter of fiscal 2025 and charged off in the first quarter of fiscal 2026. At December 31, 2025, the Company had accrued within other liabilities an allowance for off-balance sheet credit exposures of $4.3 million, as compared to $3.9 million at June 30, 2025. The increase reflects the component of the PCL attributable to off-balance sheet credit exposures. This amount is maintained as a separate liability account to cover estimated credit losses associated with off-balance sheet credit instruments such as off-balance sheet loan commitments, standby letters of credit, and guarantees. The $359,000 increase in the estimated allowance for off-balance sheet credit exposures was primarily the result of an increase in unfunded balances and an increase in required reserves for pooled loans.

The following table sets forth the sum of the amounts of the ACL attributable to individual loans within each category, or the loan categories in general, and the percentage of the ACL that is attributable to each category, as of the reporting date. The table also reflects the percentage of loans in each category to the total loan portfolio, as of the reporting date.

-54-

Table of Contents


			% of				% of
	ACL as of		total		ACL as of		total
	December 31, 2025		ACL		June 30, 2025		ACL

1-4 Family residential real estate	$	10,735	19.7	%	$	10,274	19.9	%
Non-owner occupied commercial real estate		11,622	21.3	%		12,241	23.7	%
Owner occupied commercial real estate		5,125	9.4	%		4,521	8.8	%
Multi-family real estate		3,883	7.1	%		4,329	8.4	%
Construction and land development		5,745	10.5	%		4,788	9.3	%
Agriculture real estate		4,826	8.9	%		4,194	8.1	%
Commercial and industrial		8,804	16.2	%		6,952	13.5	%
Agriculture production		2,379	4.4	%		3,374	6.5	%
Consumer		1,343	2.5	%		952	1.8	%
All other loans		3	—	%		4	—	%
	$	54,465	100.0	%	$	51,629	100.0	%

For loans that do not exhibit similar risk characteristics, the Company evaluates the loan on an individual basis. Loans that are classified with an adverse internal credit rating or identified as modifications to borrowers experiencing financial difficulty are most commonly considered for individual evaluation. The ACL for individually evaluated loans may be estimated based on the fair value of the underlying collateral, or based on the present value of expected cash flows.

At December 31, 2025, the Company had loans of $58.8 million, or 1.39% of total loans, adversely classified ($58.2 million classified “substandard”; $599,000 classified “doubtful”), as compared to loans of $49.6 million, or 1.21% of total loans, adversely classified ($49.6 million classified “substandard”; none classified “doubtful”) at June 30, 2025, and $39.6 million, or 0.98% of total loans, adversely classified ($39.6 million classified “substandard”; none classified “doubtful”), at December 31, 2024. Classified loans were generally comprised of loans secured by commercial and residential real estate, and other commercial purpose collateral. All loans were classified due to concerns as to the borrowers’ ability to continue to generate sufficient cash flows to service the debt. Of our classified loans, the Company had ceased recognition of interest on loans with a carrying value of $25.9 million at December 31, 2025. The Company’s total past due loans increased from $25.6 million at June 30, 2025, to $32.0 million at December 31, 2025. The increase in classified loans and past dues was primarily attributable to two borrower relationships: one consisting of multiple loans collateralized by commercial real estate and equipment; and the other, consisting of two related agricultural production loans secured by crops and equipment, partially offset by improvement in previously nonperforming loans and net charge-offs. Both relationships noted were placed on nonaccrual status during the second quarter of fiscal 2026. See Note 4 – “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements. For additional information on the increase in substandard loans, see “Non-Performing Assets” within Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations.

-55-

Table of Contents

Nonperforming Assets

The ratio of nonperforming assets to total assets and nonperforming loans to net loans receivable is another measure of asset quality. Nonperforming assets of the Company include nonaccruing loans, accruing loans delinquent/past maturity 90 days or more, and assets which have been acquired as a result of foreclosure or deed-in-lieu of foreclosure. The table below summarizes changes in the Company’s level of nonperforming assets over selected time periods:



		December 31, 2025		June 30, 2025		December 31, 2024

Nonaccruing loans:
1-4 Family residential real estate		$	2,988	$	2,847	$	3,404
Non-owner occupied commercial real estate			8,697		5,784		—
Owner occupied commercial real estate			1,037		1,309		281
Multi-family real estate			—		—		—
Construction and land development			5,793		5,789		97
Agriculture real estate			2,893		3,268		1,825
Commercial and industrial			5,845		3,442		2,339
Agriculture production			2,297		505		286
Consumer			105		96		77
All other loans			—		—		—
Total			29,655		23,040		8,309

Loans 90 days past due accruing interest:
1-4 Family residential real estate			—		—		—
Non-owner occupied commercial real estate			—		—		—
Owner occupied commercial real estate			—		—		—
Multi-family real estate			—		—		—
Construction and land development			—		—		—
Agriculture real estate			—		—		—
Commercial and industrial			—		—		—
Agriculture production			—		—		—
Consumer			—		—		—
All other loans			—		—		—
Total			—		—		—

Total nonperforming loans			29,655		23,040		8,309
Nonperforming investments			—		—		—
Foreclosed assets held for sale:
Real estate owned			1,536		625		2,423
Other nonperforming assets			5		32		37
Total nonperforming assets		$	31,196	$	23,697	$	10,769

Total nonperforming loans to net loans			0.71%		0.57%		0.21%
Total nonperforming loans to total assets			0.58%		0.46%		0.17%
Total nonperforming assets to total assets			0.61%		0.47%		0.22%

At December 31, 2025, modifications to borrowers experiencing financial difficulty totaled $32.8 million, of which $793,000 was considered nonperforming and included in the nonaccrual loan total above. The remaining $32.0 million in modified loans have complied with the modified terms for a reasonable period of time and are therefore considered by the Company to be accrual status loans. On the basis of guidance under ASU No. 2022-02, in general, $25.3 million of these loans were subject to classification as modifications due to interest rate reductions, $1.6 million due to term extensions, $4.4 million due to payment delays, and $1.5 million due to principal forgiveness given to borrowers experiencing financial difficulty at December 31, 2025. At June 30, 2025, these modifications totaled $28.2 million, of

-56-

Table of Contents

which $1.6 million was considered nonperforming and included in the nonaccrual loan total above. The remaining $26.6 million in modifications at June 30, 2025, had complied with the modified terms for a reasonable period of time and were therefore considered by the Company to be accrual status loans.

At December 31, 2025, nonperforming assets totaled $31.2 million, as compared to $23.7 million at June 30, 2025, and $10.8 million at December 31, 2024. The increase in nonperforming assets, compared to June 30, 2025, primarily reflects an increase in NPLs. The increase in NPLs compared to June 30, 2025, was due to the previously mentioned increase in classified loans and past dues.

Liquidity Resources

The term “liquidity” refers to our ability to generate adequate amounts of cash to fund loan originations, loans purchases, deposit withdrawals and operating expenses. Our primary sources of funds include deposit growth, FHLB advances, brokered deposits, amortization and prepayment of loan principal and interest, investment maturities and sales, and funds provided by our operations. While the scheduled loan repayments and maturing investments are relatively predictable, deposit flows, FHLB advance redemptions, and loan and security prepayment rates are significantly influenced by factors outside of the Bank’s control, including interest rates, general and local economic conditions and competition in the marketplace. The Bank relies on FHLB advances and brokered deposits as additional sources for funding cash or liquidity needs.

The Company uses its liquid resources principally to satisfy its ongoing cash requirements, which include funding loan commitments, funding maturing certificates of deposit and deposit withdrawals, maintaining liquidity, funding maturing or called FHLB advances, purchasing investments, and meeting operating expenses.

At December 31, 2025, the Company had outstanding commitments and approvals to extend credit of approximately $981.2 million (including $654.1 million in unused lines of credit) in mortgage and non-mortgage loans. These commitments and approvals are expected to be funded through existing cash balances, cash flow from normal operations and, if needed, advances from the FHLB or the Federal Reserve’s discount window. At December 31, 2025, the Bank had pledged $1.4 billion of its single-family residential, home equity, and commercial real estate loan portfolios to the FHLB for available credit of approximately $854.7 million, of which $102.1 million was advanced, while $626,000 was encumbered by residential real estate loans sold onto the secondary market through the FHLB, and none was utilized as collateral for the issuance of letters of credit to secure public unit deposits. In total, FHLB borrowings are generally limited to 45% of Bank assets, or approximately $2.2 billion, subject to available collateral. Also, at December 31, 2025, the Bank had pledged a total of $410.6 million in loans secured by farmland and agricultural production loans to the Federal Reserve, providing access to $360.0 million in primary credit borrowings from the Federal Reserve’s discount window, none of which was advanced at December 31, 2025. In addition, the Bank has other assets available to pledge to the Federal Reserve, such as commercial loans, which could provide additional collateral for additional borrowings. Management believes its liquid resources will be sufficient to meet the Company’s liquidity needs.

Regulatory Capital

The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Company and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company and Bank’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

-57-

Table of Contents

Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Additionally, to make distributions or discretionary bonus payments, the Company and Bank must maintain a capital conservation buffer of 2.5% of risk-weighted assets. Management believes, as of December 31, 2025, and June 30, 2025, that the Company and the Bank met all capital adequacy requirements to which they are subject.

In August 2020, the Federal banking agencies adopted a final rule updating a December 2018 rule regarding the impact on regulatory capital of adoption of the CECL standard. The rule allows institutions that adopted the CECL standard in 2020 a five-year transition period to recognize the estimated impact of adoption on regulatory capital. The Company and the Bank elected to exercise the option to recognize the impact of adoption over the five-year period.

As of December 31, 2025, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category.

-58-

Table of Contents

The tables below summarize the Company’s and Bank’s actual and required regulatory capital at the dates indicated:


									To Be Well Capitalized
					For Capital				Under Prompt Corrective
	Actual				Adequacy Purposes				Action Provisions
As of December 31, 2025	Amount		Ratio		Amount		Ratio		Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$	598,653	13.91	%	$	344,347	8.00	%	n/a	n/a
Southern Bank		569,963	13.38	%		340,689	8.00	%	425,861	10.00	%
Tier I Capital (to Risk-Weighted Assets)
Consolidated		537,269	12.48	%		258,260	6.00	%	n/a	n/a
Southern Bank		519,712	12.20	%		255,517	6.00	%	340,689	8.00	%
Tier I Capital (to Average Assets)
Consolidated		537,269	10.77	%		199,566	4.00	%	n/a	n/a
Southern Bank		519,712	10.34	%		201,100	4.00	%	251,375	5.00	%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated		521,570	12.12	%		193,695	4.50	%	n/a	n/a
Southern Bank		519,712	12.20	%		191,638	4.50	%	276,810	6.50	%


									To Be Well Capitalized
					For Capital				Under Prompt Corrective
	Actual				Adequacy Purposes				Action Provisions
As of June 30, 2025	Amount		Ratio		Amount		Ratio		Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$	577,150	13.95	%	$	331,050	8.00	%	n/a	n/a
Southern Bank		545,293	13.34	%		326,920	8.00	%	408,650	10.00	%
Tier I Capital (to Risk-Weighted Assets)
Consolidated		517,842	12.51	%		248,288	6.00	%	n/a	n/a
Southern Bank		494,186	12.09	%		245,190	6.00	%	326,920	8.00	%
Tier I Capital (to Average Assets)
Consolidated		517,842	10.61	%		195,249	4.00	%	n/a	n/a
Southern Bank		494,186	10.05	%		196,782	4.00	%	245,977	5.00	%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated		502,197	12.14	%		186,216	4.50	%	n/a	n/a
Southern Bank		494,186	12.09	%		183,892	4.50	%	265,622	6.50	%

-59-

Table of Contents

PART I: Item 3: Quantitative and Qualitative Disclosures About Market Risk

SOUTHERN MISSOURI BANCORP, INC.

Asset and Liability Management and Market Risk

The goal of the Company’s asset/liability management strategy is to manage the interest rate sensitivity of both interest-earning assets and interest-bearing liabilities in order to maximize net interest income without exposing the Company to an excessive level of interest rate risk. The Company employs various strategies intended to manage the potential effect that changing interest rates may have on future operating results. The primary asset/liability management strategy has been to focus on matching the anticipated repricing intervals of interest-earning assets and interest-bearing liabilities. At times, however, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, the Company may increase its interest rate risk position in order to maintain its net interest margin.

In an effort to manage the interest rate risk resulting from fixed rate lending, the Company has at times utilized longer term (up to 10 year maturities), fixed-rate FHLB advances, which may be subject to early redemption, to offset interest rate risk. Other elements of the Company’s current asset/liability strategy include: (i) increasing originations of commercial real estate loans, commercial business loans, agricultural real estate loans, and agricultural operating lines, which typically provide higher yields and shorter repricing periods, but inherently increase credit risk, (ii) limiting the price volatility of the investment portfolio by maintaining a relatively short weighted average maturity, (iii) actively soliciting less rate-sensitive nonmaturity deposits, and (iv) offering competitively priced money market accounts and CDs with maturities of up to five years. The degree to which each segment of the strategy is achieved will affect profitability and exposure to interest rate risk.

The Company continues to originate long-term, fixed-rate single-family residential loans. During the first six months of fiscal year 2026, fixed rate single-family residential loan production totaled $79.8 million (of which $13.1 million was originated for sale into the secondary market), as compared to $67.8 million during the same period of the prior fiscal year (of which $8.0 million was originated for sale into the secondary market). At December 31, 2025, the fixed rate, single-family residential loan portfolio was $649.2 million with a weighted average maturity of 158 months, as compared to $631.3 million with a weighted average maturity of 168 months at December 31, 2024. The Company originated $37.4 million in adjustable-rate residential loans during the six-month period ended December 31, 2025, as compared to $26.8 million during the same period of the prior fiscal year. At December 31, 2025, fixed rate loans with remaining maturities in excess of 10 years totaled $345.9 million, or 8.3% of net loans receivable, as compared to $361.7 million, or 9.1% of net loans receivable at December 31, 2024. The Company originated $227.3 million in fixed rate commercial, commercial real estate, and multi-family loans during the six-month period ended December 31, 2025, as compared to $197.1 million during the same period of the prior fiscal year. The Company also originated $125.9 million in adjustable rate commercial, commercial real estate, and multi-family loans during the six-month period ended December 31, 2025, as compared to $62.9 million during the same period of the prior fiscal year. At December 31, 2025, adjustable-rate home equity lines of credit increased to $92.1 million, as compared to $82.1 million at December 31, 2024. At December 31, 2025, the Company’s investment portfolio had an expected weighted-average life of 4.1 years, compared to 4.9 years at December 31, 2024. Effective duration of the portfolio indicates a stable price sensitivity of approximately 2.3% per 100 basis points movement in market rates at December 31, 2025, as compared to 2.5% at December 31, 2024. Management continues to focus on customer retention, customer satisfaction, and offering new products to customers in order to increase the Company’s amount of less rate-sensitive deposit accounts.

-60-

Table of Contents

Interest Rate Sensitivity Analysis

The following table sets forth as of December 31, 2025, and June 30, 2025 management’s estimates of the projected changes in net portfolio value (NPV) in the event of 100, 200, 300, and 400 basis point (bp) instantaneous, permanent, and parallel increases or decreases in market interest rates. Dollar amounts are expressed in thousands.


December 31, 2025
						NPV as Percentage of
	Net Portfolio					PV of Assets
Change in Rates	Value		Change		% Change	NPV Ratio	Change

	(dollars in thousands)					(%)	(basis points)
+400 bp	$	522,358	$	(112,271)	(18)	10.84	(170)
+300 bp		560,466		(74,162)	(12)	11.64	(91)
+200 bp		593,502		(41,127)	(6)	12.11	(44)
+100 bp		617,504		(17,125)	(3)	12.39	(15)
0 bp		634,629		—	—	12.54	—
‑100 bp		647,329		12,701	2	12.60	6
‑200 bp		651,738		17,110	3	12.50	(4)
‑300 bp		643,194		8,565	1	12.17	(38)
‑400 bp		632,856		(1,772)	(0)	11.79	(75)


June 30, 2025
						NPV as Percentage of
	Net Portfolio					PV of Assets
Change in Rates	Value		Change		% Change	NPV Ratio	Change

	(dollars in thousands)					(%)	(basis points)
+400 bp	$	480,630	$	(94,952)	(16)	10.19	(140)
+300 bp		512,685		(62,896)	(11)	10.87	(72)
+200 bp		540,045		(35,536)	(6)	11.25	(35)
+100 bp		561,455		(14,127)	(2)	11.50	(10)
0 bp		575,582		—	—	11.60	—
‑100 bp		583,974		8,392	1	11.58	(2)
‑200 bp		581,715		6,133	1	11.37	(23)
‑300 bp		568,247		(7,335)	(1)	10.95	(65)
‑400 bp		552,615		(22,967)	(4)	10.49	(111)

Computations of prospective effects of hypothetical interest rate changes are based on an internally generated model using actual maturity and repricing schedules for the Bank’s loans and deposits, and are based on numerous assumptions, including relative levels of market interest rates, loan repayments and deposit run-offs. Further, the computations do not consider any reactions that the Bank may undertake in response to changes in interest rates. These projected changes should not be relied upon as indicative of actual results in any of the aforementioned interest rate changes.

Management cannot accurately predict future interest rates or their effect on the Bank’s NPV in the future. The shape of the yield curve may vary in certain interest rate environments and is not captured in an instantaneous parallel shock. Certain shortcomings are inherent in the method of analysis presented in the computation of NPV. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in differing degrees to changes in market interest rates. Additionally, certain assets, such as adjustable-rate loans, have an initial fixed rate period, typically from one to seven years, and over the remaining life of the asset changes in the interest rate are restricted. In addition, the proportion of adjustable-rate loans in the Bank’s portfolios could decrease in future periods due to refinancing activity if market interest rates remain steady in the future. Further, in the event of a change in interest rates, prepayment and early withdrawal levels could deviate significantly from those assumed in the table.

-61-

Table of Contents

Finally, the ability of many borrowers to service their adjustable-rate debt may decrease in the event of an interest rate increase.

The Company’s growth strategy has included origination of fixed-rate loans, as discussed under “Quantitative and Qualitative Disclosures About Market Risk,” above. Our fixed rate loan portfolio and the behavior of fixed-rate borrowers in a higher interest rate environment, especially over the course of fiscal 2023 and 2024, pressured our NPV. Since June 30, 2025, market interest rates at the mid-point of the curve have continued to decline, positively impacting the modeled value of our fixed rate loans and bonds at December 31, 2025. Additionally, the decrease in market rates benefited the modeled value of the deposit portfolio, which primarily benefited from savings accounts repricing lower. The Company’s sensitivity to rising rates modestly increased in this period due to a decrease in cash balances. This generally had an inverse response to decreasing rates as it positively impacted the modeled value of interest earning assets as market rates decline. However, additional downward shocks beyond 300 basis points negatively affect NPV due to reaching assumed floors on the pricing of deposits and other liabilities. The Company maintained the $60 million notional amount of its pay-fixed/receive-floating interest rate swaps, designed to hedge the residential loan portfolio against the risk of rising interest rates. The Company continues to manage its balance sheet to maximize earnings through interest rate cycles, while maintaining safe and sound risk management practices. Over time, the Company has worked to limit its exposure to rising rates by increasing the share of funding on its balance sheet obtained through lower cost non-maturity transaction accounts and retail time deposits, and by limiting short-term FHLB borrowings. See information regarding the Company’s derivative financial agreements in Note 13: Derivative Financial Instruments of the Notes to Consolidated Financial Statements.

The Bank’s board of directors is responsible for reviewing asset and liability management policies. The Bank’s Asset/Liability Committee meets monthly to review interest rate risk and trends, as well as liquidity, capital ratios, and other requirements. The Bank’s management is responsible for administering the policies and determinations of the board of directors with respect to the Bank’s asset and liability management goals and strategies.

-62-

Table of Contents

PART I: Item 4: Controls and Procedures

SOUTHERN MISSOURI BANCORP, INC.

An evaluation of Southern Missouri’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities and Exchange Act of 1934, as amended, (the “Act”)) as of December 31, 2025, was carried out under the supervision and with the participation of our Chief Executive Officer, our Chief Administrative Officer, our Chief Financial Officer, and several other members of our senior management. Our Chief Executive Officer, our Chief Administrative Officer, and our Chief Financial Officer concluded that, as of December 31, 2025, the Company’s disclosure controls and procedures were effective in ensuring that the information required to be disclosed by the Company in the reports it files or submits under the Act is (i) accumulated and communicated to management (including our Chief Executive Officer, our Chief Administrative Officer and our Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Act) that occurred during the quarter ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The Company does not expect that its disclosures and procedures will prevent all errors and all fraud. A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met. Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any control procedure also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected.

-63-

Table of Contents

PART II: Other Information

SOUTHERN MISSOURI BANCORP, INC.

Item 1: Legal Proceedings

In the opinion of management, the Company is not a party to any pending claims or lawsuits that are expected to have a material effect on the Company’s financial condition or operations. Periodically, there have been various claims and lawsuits involving the Company mainly as a defendant, such as claims to enforce liens, condemnation proceedings on properties in which the Company holds security interests, claims involving the making and servicing of real property loans and other issues incident to the Bank’s business. Aside from such pending claims and lawsuits, which are incident to the conduct of the Company’s ordinary business, the Company is not a party to any material pending legal proceedings that would have a material effect on the financial condition or operations of the Company.

Item 1a: Risk Factors

There have been no material changes to the risk factors set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended June 30, 2025.

Item 2: Unregistered Sales of Equity Securities, Use of Proceeds, Issuer Purchases of Equity Securities

On January 20, 2026, the Board of Directors approved an authorization to repurchase up to 550,000 shares of the Company’s common stock, or approximately 5.0% of shares outstanding, following the near completion of the Company’s prior repurchase program announced on May 20, 2021.

On May 20, 2021, the Company announced its intention to repurchase up to 445,000 shares of its common stock, or approximately 5.0% of its 8.9 million then-outstanding common shares. The shares will be purchased at prevailing market prices in the open market or in privately negotiated transactions, subject to availability and general market conditions. Repurchased shares will be held as treasury shares to be used for general corporate purposes.

The following table summarizes the Company’s stock repurchase activity for each month during the three months ended December 31, 2025.


							Total # of Shares
				Average			Purchased as Part of a		Maximum Number
		Total #		Price			Publicly		of Shares That
		of Shares		Paid Per			Announced		May Yet Be
		Purchased		Share			Program		Purchased ⁽¹⁾
10/01/25 - 10/31/25 period		65,976		$	53.54		65,976		139,459
11/01/25 - 11/30/25 period		78,845			54.71		78,845		60,614
12/01/25 - 12/31/25 period		3,513			60.08		3,513		57,101

(1)

Represents the remaining shares available for purchase as of the last calendar day of the month shown.

Item 3: Defaults upon Senior Securities

Not applicable

Item 4: Mine Safety Disclosures

Not applicable

Item 5: Other Information

a. None

b. None

-64-

Table of Contents

c. Trading Plans. During the quarter ended December 31, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement,” or “non-rule 10b5-1 trading arrangement, as each term is defined in Item 408(a) of Regulation S-K.

-65-

Table of Contents

Item 6: Exhibits


Exhibit Number	Document
3.1(i)	Articles of Incorporation of the Registrant (filed as an exhibit to the Registrant’s Annual Report on Form 10-KSB for the fiscal year ended June 30, 1999 and incorporated herein by reference)
3.1(i)A	Amendment to Articles of Incorporation of Southern Missouri increasing the authorized capital stock of Southern Missouri (filed as an exhibit to Southern Missouri’s Current Report on Form 8-K filed on November 21, 2016 and incorporated herein by reference)
3.1(i)B	Amendment to Articles of Incorporation of Southern Missouri increasing the authorized capital stock of Southern Missouri (filed as an exhibit to Southern Missouri’s Current Report on Form 8-K filed on November 8, 2018 and incorporated herein by reference)
3.1(ii)	Certificate of Designation for the Registrant’s Senior Non-Cumulative Perpetual Preferred Stock, Series A (filed as an exhibit to the Registrant’s Current Report on Form 8-K filed on July 26, 2011 and incorporated herein by reference)
3.2(i)	Bylaws of the Registrant (filed as an exhibit to the Registrant’s Current Report on Form 8-K filed on December 6, 2007 and incorporated herein by reference)
3.2(ii)	Amendment to Bylaws (filed as an exhibit to the Registrant’s Current Report on Form 8-k filed on November 25, 2025, and incorporated herein by reference)
4	Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (filed as an exhibit to the Registrant’s Annual Report on Form 10-K for the year ended June 30, 2020 and incorporated herein by reference).
10	Material Contracts:
	1.	Registrant’s 2024 Omnibus Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 23, 2024, and incorporated herein by reference)
	2.	Registrant’s 2017 Omnibus Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 26, 2017, and incorporated herein by reference)
	3.	2008 Equity Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 19, 2008 and incorporated herein by reference)
	4.	2003 Stock Option and Incentive Plan (attached to the Registrant’s definitive proxy statement filed on September 17, 2003 and incorporated herein by reference)
	5.	Employment Agreements
		(i)	Employment Agreement with Greg A. Steffens (filed as an exhibit to the Registrant’s Annual Report on Form 10-KSB for the year ended June 30, 2019 and incorporated herein by reference)
		(ii)	Amended and Restated Employment Agreement with Greg A. Steffens (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, and incorporated herein by reference)
	6.	Director’s Retirement Agreements
		(i)	Director’s Retirement Agreement with Sammy A. Schalk (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2000 and incorporated herein by reference)
		(ii)	Director’s Retirement Agreement with L. Douglas Bagby (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2000 and incorporated herein by reference)
		(iii)	Director’s Retirement Agreement with Rebecca McLane Brooks (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2004 and incorporated herein by reference)
		(iv)	Director’s Retirement Agreement with Charles R. Love (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-QSB for the quarter ended December 31, 2004 and incorporated herein by reference)
		(v)	Director’s Retirement Agreement with Dennis C. Robison (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2008 and incorporated herein by reference)
		(vi)	Director’s Retirement Agreement with David J. Tooley (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2011 and incorporated herein by reference)
		(vii)	Director’s Retirement Agreement with Todd E. Hensley (filed as an exhibit to the Registrant’s Annual Report on Form 10-K for the year ended June 30, 2014 and incorporated herein by reference)

-66-

Table of Contents

	7.		Tax Sharing Agreement (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 and incorporated herein by reference)
	8.		Change-in-Control Agreements
			(i)	Change-in-Control Agreement with Kimberly A. Capps (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)
			(ii)	Change-in -Control Agreement with Matthew Funke (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)
			(iii)	Change-in-Control Agreement with Justin G. Cox (filed as an exhibit to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference)
			(iv)	Amended and Restated Change-in-Control Agreement with Rick A. Windes (filed as an exhibit to the Registrant’s Form 8-K for the event on July 23, 2025 and incorporated herein by reference)
			(v)	Amended and Restated Change-in -Control Agreement with Mark Hecker (filed as an exhibit to the Registrant’s Form 8-K for the event on February 18, 2025 and incorporated herein by reference)
			(vi)	Amended and Restated Change-in-Control Agreement with Lance Greunke (filed as an exhibit to the Registrant’s Form 8-K for the event on February 18, 2025, and incorporated herein by reference)
			(vii)	Change-in-Control Agreement with Stefan Chkautovich (filed as an exhibit to the Registrant’s Form 8-K for the event on February 18, 2025, and incorporated herein by reference)
	10.1	Named Executive Officer Salary and Bonus Arrangements for fiscal 2025 (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2025 and incorporated herein by reference)
	10.2 Director Fee Arrangements for 2025 (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2025 and incorporated herein by reference)
19	Insider Trading Policy (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2025 and incorporated herein by reference)
21	Subsidiaries of the Registrant (filed as an exhibit to Registrant’s Annual Report on Form 10-K for the year ended June 30, 2025 and incorporated herein by reference)
31.1	Rule 13a-14(a) Certification of Chief Executive Officer
31.2	Rule 13a-14(a) Certification of Chief Financial Officer
32	Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
101	Includes the following financial and related information from Southern Missouri Bancorp, Inc.’s Quarterly Report on Form 10-Q as of and for the quarter ended December 31, 2025, formatted in Inline Extensible Business Reporting Language (iXBRL): (1) the Consolidated Balance Sheets, (2) the Consolidated Statements of Income, (3) the Consolidated Statements of Comprehensive Income, (4) the Consolidated Statements of Changes in Stockholders’ Equity, (5) the Consolidated Statements of Cash Flows, and (6) Notes to Consolidated Financial Statements.
104	The cover page from this Quarterly Report on Form 10-Q, formatted in Inline XBRL.

-67-

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		SOUTHERN MISSOURI BANCORP, INC.
		Registrant

Date: February 6, 2026		/s/ Greg A. Steffens
		Greg A. Steffens
		Chairman & Chief Executive Officer
		(Principal Executive Officer)

Date: February 6, 2026		/s/ Stefan Chkautovich
		Stefan Chkautovich
		Executive Vice President & Chief Financial Officer (Principal Financial Officer)
Date: February 6, 2026		/s/ Jane Butler
		Jane Butler
		Principal Accounting Officer

-68-

Source: View Original Filing on SEC EDGAR

FAQ

How did Southern Missouri Bancorp (SMBC) perform in the quarter ended December 31, 2025?

Southern Missouri Bancorp generated net income of $18.2 million for the quarter ended December 31, 2025, up from $14.7 million a year earlier. Earnings per share rose to $1.62 from $1.30, reflecting stronger profitability despite higher credit loss provisions.

What were Southern Missouri Bancorp’s (SMBC) results for the six months ended December 31, 2025?

For the six months ended December 31, 2025, Southern Missouri Bancorp reported net income of $33.8 million, compared with $27.1 million in the prior-year period. Basic and diluted earnings per share increased to $3.00 from $2.40, supported by higher net interest income.

What is Southern Missouri Bancorp’s asset and loan base as of December 31, 2025?

As of December 31, 2025, Southern Missouri Bancorp had total assets of $5.09 billion. Net loans receivable were $4.17 billion, up from $4.05 billion at June 30, 2025, indicating continued loan growth across real estate, commercial, agriculture, and consumer portfolios.

How did deposits and borrowings change at Southern Missouri Bancorp (SMBC) during 2025?

Deposits at Southern Missouri Bancorp were $4.31 billion at December 31, 2025, slightly higher than $4.28 billion at June 30, 2025. Federal Home Loan Bank advances were $102.0 million and securities sold under agreements to repurchase totaled $20.0 million, modestly above June levels.

What were Southern Missouri Bancorp’s (SMBC) net interest income and credit loss provisions for the six months ended December 31, 2025?

Net interest income for the six months ended December 31, 2025 was $85.3 million, compared with $74.8 million a year earlier. Provision for credit losses increased to $6.2 million from $3.1 million, reflecting higher reserves across several loan categories.

How did cash flows look for Southern Missouri Bancorp (SMBC) in the six months ended December 31, 2025?

Southern Missouri Bancorp generated $37.6 million of net cash from operating activities in the six months ended December 31, 2025. Net cash used in investing activities was $112.2 million, driven mainly by loan growth, while financing activities provided $15.9 million, primarily from deposit changes and repurchase agreements.

Southern Missouri Bancorp (NASDAQ: SMBC) grows earnings and loan portfolio

Rhea-AI Filing Summary

Positive

Negative

FAQ

How did Southern Missouri Bancorp (SMBC) perform in the quarter ended December 31, 2025?

What were Southern Missouri Bancorp’s (SMBC) results for the six months ended December 31, 2025?

What is Southern Missouri Bancorp’s asset and loan base as of December 31, 2025?

How did deposits and borrowings change at Southern Missouri Bancorp (SMBC) during 2025?

What were Southern Missouri Bancorp’s (SMBC) net interest income and credit loss provisions for the six months ended December 31, 2025?

How did cash flows look for Southern Missouri Bancorp (SMBC) in the six months ended December 31, 2025?

NASDAQ:SMBC

SMBC Rankings

SMBC Latest News

SMBC Latest SEC Filings

SMBC Stock Data

Trending News

Southern Missouri Bancorp (NASDAQ: SMBC) grows earnings and loan portfolio

Rhea-AI Filing Summary

Positive

Negative

FAQ

How did Southern Missouri Bancorp (SMBC) perform in the quarter ended December 31, 2025?

What were Southern Missouri Bancorp’s (SMBC) results for the six months ended December 31, 2025?

What is Southern Missouri Bancorp’s asset and loan base as of December 31, 2025?

How did deposits and borrowings change at Southern Missouri Bancorp (SMBC) during 2025?

What were Southern Missouri Bancorp’s (SMBC) net interest income and credit loss provisions for the six months ended December 31, 2025?

How did cash flows look for Southern Missouri Bancorp (SMBC) in the six months ended December 31, 2025?

NASDAQ:SMBC

SMBC Rankings

SMBC Latest News

SMBC Latest SEC Filings

SMBC Stock Data