SOUTHERN MISSOURI BANCORP, INC.

Southern Missouri Bancorp, Inc.

Nature of business

• Southern Missouri Bancorp, Inc. (SMBC) is the bank holding company and parent of Southern Bank.
• Southern Bank is a Missouri-chartered institution with a history as a mutual savings institution. It is regulated by the Missouri Division of Finance, is a member of the Federal Reserve System (the FRB is the Bank’s primary federal regulator), and deposit insurance is provided by the FDIC (DIF).
• Core business model: attract retail deposits and use those deposits, together with wholesale funding from FHLB Des Moines and brokered deposits, to originate and hold mortgage and other loans and to invest in mortgage-backed securities, municipal bonds, and other permissible investments.
• Revenue sources include interest income from loans and investments as well as fees from banking services, card interchange, loan sales and servicing, wealth management, bank-owned life insurance, and other fee income.

Scale and positions (as of June 30, 2026)

• Total assets: $5.2 billion
• Total deposits: $4.4 billion
• Stockholders’ equity: $590.7 million
• Net loans receivable: $4.3369 billion (total loans: $4.3918 billion)
• Branch network: 63 full-service branches, 2 limited-service branches, and 3 loan production offices
• Operations organized into five regions: East, South, West, North, Northwest across Missouri, Arkansas, Illinois, and Kansas
• Employees: 739 total (711 full-time and 28 part-time)

Acquisitions and growth (last ten years)

• 1/20/2023 — Acquired Citizens Bancshares, Co. (Citizens Bank)
  • At closing: assets $985.7 million; loans (net) $456.0 million; deposits $851.0 million
  • Goodwill: $23.5 million (not deductible for tax)
• 2/25/2022 — Acquired Fortune Financial, Inc. (Fortune Bank)
  • At closing: assets $253.0 million; loans (net) $202.1 million; deposits $218.3 million
  • Goodwill: $12.8 million (not deductible for tax)
• 12/15/2021 — Acquired Cairo, Illinois branch from First National Bank
  • Goodwill: $442,000 (not deductible)
• 5/22/2020 — Acquired Central Federal Bancshares, Inc. and Central Federal Savings & Loan Association of Rolla
  • At closing: assets $70.6 million; loans $51.4 million; deposits $46.7 million
  • Bargain purchase gain: $123,000; no goodwill
• 11/21/2018 — Acquired Gideon Bancshares Company and First Commercial Bank
  • At closing: assets $217 million; loans $144 million; deposits $171 million
  • Goodwill: $1.0 million
• 2/23/2018 — Acquired Bancshares, Inc. (Southern Missouri Bancshares) and Southern Missouri Bank of Marshfield
  • At closing: assets $86.2 million; loans $68.3 million; deposits $68.2 million
  • Goodwill: $4.4 million
• 6/16/2017 — Acquired Tammcorp, Inc. and Capaha Bank (Tamms, IL); Capaha merged into the Bank
  • At closing: assets $187 million; loans $153 million; deposits $167 million
  • Goodwill: $4.1 million
• 6/20/2017 — Capital raise via at-the-market common stock issuance
  • 794,762 shares sold; gross proceeds ≈ $25.0 million
  • Proceeds used for general corporate purposes, including organic growth and acquisitions

Revenue model

Revenues are principally generated from:

• Interest earned on loans and investment securities
• Banking service charges
• Bank card interchange fees
• Gains on sales of loans and loan servicing income
• Wealth management fees
• Increases in cash surrender value of bank-owned life insurance
• Other fee income

Lending activities and portfolio highlights (as of June 30, 2026)

• Total loans: $4.392 billion
  • Fixed-rate loans: $2.920 billion (67.33%)
  • Adjustable-rate loans: $1.472 billion (33.94%)
• Mortgage loans (total): $3.557 billion (82.03% of total loans)
  • One- to four-family residential: $1.086 billion
  • Non-owner occupied CRE: $924.1 million
  • Owner-occupied CRE: $472.0 million
  • Multi-family: $470.0 million
  • Construction and land development: $310.0 million
  • Agriculture real estate: $296.0 million
• Other loans: $834.4 million
  • Commercial and industrial: $552.6 million
  • Agriculture production: $219.2 million
  • Automobile loans: $22.2 million
  • Consumer and other: remaining balance
• Asset quality and reserves
  • Nonperforming assets (NPA): $33.5 million (0.64% of total assets)
  • Total nonaccrual loans: $27.7 million (2026)
  • Allowance for credit losses (ACL): $54.9 million (1.25% of total loans)
  • ACL as a percentage of nonaccruals: ~198.6%
• Loan activity (2026)
  • Loans originated in 2026: ≈ $1.235 billion
    • Mortgage originations: ≈ $929.2 million
  • Loan commitments outstanding at 6/30/2026: ≈ $948.5 million
• Portfolio focus: concentration in commercial real estate and commercial lending, with agricultural real estate and production lending comprising a substantial portion of the portfolio. The Bank monitors concentrations and maintains ongoing credit risk management.

Investments and securities

• Available-for-sale (AFS) securities: $450.8 million
• Debt and other securities: $96.7 million
• Mortgage-backed securities (MBS/CMOs): $354.1 million
• Composition of debt/other securities (carrying values as of 6/30/2026):
  • States and political subdivisions: $23.4 million
  • Corporate obligations: $28.1 million
  • Asset-backed securities: $42.3 million
  • Other securities: $3.0 million
• MBS/CMO weighted-average life: ≈ 56 months; prepayments can shorten or extend expected life
• Equity holdings: FHLB stock ≈ $10.9 million; FRB stock ≈ $9.2 million; other bank equity ≈ $0.9 million

Funding, liquidity, and capital

• Primary funding sources: retail deposits, FHLB advances, and brokered deposits
• FHLB advances outstanding: $130.4 million (mix of long-term fixed-rate advances and daily reset borrowings)
• Liquidity capacity: substantial available FHLB credit and access to the discount window (no discount window balance outstanding at 6/30/2026)
• Deposits breakdown (as of 6/30/2026):
  • Non-interest bearing: 12.72%
  • NOW accounts: 24.38%
  • Savings: 16.05%
  • Money market: 7.37%
  • Certificates of deposit (CDs): mix across maturities; total deposits ≈ $4.408 billion
• Time deposits > $250k: ≈ $685.6 million
• Uninsured deposits: ≈ $835.1 million; collateralized uninsured portion ≈ $254.9 million
• Capital position: the Bank meets well-capitalized thresholds under PCA standards and is subject to FDIC, state, and FRB capital requirements

Operations and subsidiaries

• Subsidiaries:
  • SB Corning, LLC (investment in a low-income housing partnership)
  • SB Real Estate Investments, LLC (holds Southern Bank Real Estate Investments, REIT)
  • Southern Insurance Services, LLC (insurance brokerage)
• Inactive subsidiaries include Fortune Investment Group, LLC; Fortune Insurance Group, LLC; Fortune SBA, LLC; SMS Financial Services, Inc.
• Wealth management and trust services
  • Southern Wealth Management assets under management: about $818.7 million (as of 6/30/2026; $645.8 million in 2025)
• Insurance services
  • Southern Insurance Services, LLC revenue: $1.4 million in 2026 (vs. $1.3 million in 2025)

Markets and customers

• Branch footprint spans Missouri, Arkansas, Illinois, and Kansas, with a primary presence in rural and mixed economies and major regional markets including Cape Girardeau, Springfield, the St. Louis metro area, and the Kansas City area.
• Management emphasizes exposure to manufacturing, agriculture, healthcare, education, and government employment across its regional markets.

Regulation and supervision

• The Bank is regulated by the Federal Reserve and the Missouri Division of Finance and maintains FDIC deposit insurance.
• The Bank operates with capital ratios that meet well-capitalized standards and maintains compliance programs for consumer protection, privacy, cybersecurity, and other regulatory requirements.

Note: Data are as of June 30, 2026 and reflect the company’s Form 10-K disclosures.