On this page of StockholderLetter.com we present the latest annual shareholder letter from SOUTHERN MISSOURI BANCORP, INC. — ticker symbol SMBC. Reading current and past SMBC letters to shareholders can bring important insights into the investment thesis.

 •  9/19/2025 Letter Continued (Full PDF)
 •  9/25/2023 SMBC Stockholder Letter
 •  9/23/2024 SMBC Stockholder Letter
 •  More "Banking & Savings" Category Stockholder Letters
 •  SMBC Benford's Law Stock Score = 98

SMBC Shareholder/Stockholder Letter Transcript:

2025
Annual
Report
Southern Missouri Bancorp

Financial Summary
2025
EA R N I N G S (dollars in thousands)
Net interest income
Provision for credit losses
Noninterest income
Noninterest expense
Income taxes
Net income
2024
CHANGE (%)

154,616
6,523
27,984
102,083
15,416
58,578

139,483
3,600
24,844
97,617
12,928
50,182
10.8%
81.2%
12.6%
4.6%
19.2%
16.7%

5.19
5.18
54.78
0.92

4.42
4.42
45.01
0.84
17.4%
17.2%
21.7%
9.5%
PE R C O MMON S H A R E
Net income:
Basic
Diluted
Closing market price
Cash dividends declared
AT Y E A R -E N D (dollars in thousands)
Total assets
Loans, net of allowance
Reserves as a percent of nonperforming loans
Deposits
Stockholder   s equity
$ 5,019,607
4,048,961
224 %
$ 4,281,368
544,692
$ 4,604,316
3,797,287
786 %
$ 3,943,059
488,748
11.37 %
1.21
3.40
55.91
1.26
11.24
10.74 %
1.10
3.27
58.87
1.36
10.72
FI N A N C I A L R AT I O S
Return on average shareholder equity
Return on average assets
Net interest margin
Efficiency ratio
Allowance for credit losses to loans
Equity to average assets at year-end
OTH E R D ATA ( 1)
11,299,467
Common shares outstanding
(2)
11,249,304
Common shares outstanding for book value calculation
11,257,969
Average common and dilutive shares outstanding
443
Common stockholders of record
719
Full-time equivalent employees
6,981
Assets per employee (in thousands)
65
Banking offices
9.0%
6.6%
8.3%
11.4%
11,277,737
11,219,781
11,301,279
468
714
6,449
66
$48.42
$43.56
$5.22 $5.21
$39.54
$5.18
$4.42
$0.80
$3.85
2021
2022
2023
$0.84 $0.84
$0.92
$34.91
$31.94
$0.62
2024
2025
Diluted Earnings per Share
2021
2022
2023
2024
2025
2021
Cash Dividends Per Share
(1) Other data is as of fiscal year-end, except for average shares. (2) Excludes unvested restricted stock award shares.
Southern Missouri Bancorp     Annual Report 2025
2
2022
2023
2024
Book Value Per Share
2025

D EA R SHA REHOL DERS,
Southern Missouri Bancorp, Inc. (the    Company   ) delivered strong results in fiscal year 2025, continuing
to advance our long-term strategy and deliver value for our shareholders. We increased diluted earnings
per share by 17.2% to $5.18 and grew tangible book value per share, a non-GAAP measure, by 14.1%.
In July 2025, the Board of Directors approved an 8.7% increase in the quarterly dividend to $0.25 per
share, our 125th consecutive quarterly dividend since our Company   s inception, underscoring both the
strength of our performance and our enduring commitment to returning value to shareholders.
These achievements came in a year shaped by a turbulent economic landscape. Financial markets
were volatile, inflationary pressures persisted, and geopolitical developments contributed to uncertainty.
Agriculture commodity prices were generally lower, though crop yields were strong in calendar year
2024. Favorable weather in our region looks to be supporting another productive year in 2025, but
pricing is still relatively weak. While interest rates remained elevated, improvements in the slope of the
yield curve and historically low unemployment provided balance. Against this backdrop, we successfully
navigated strong loan competition and sustained deposit pressures, creating growth through opportunity
and execution.
During the fiscal year, the Company undertook a performance improvement project with the ultimate goals
of a better customer and team member experience and value creation for shareholders. With the initial
evaluation phase complete, we have begun the process of implementing recommendations with the goal
to be fully implemented in the next three years. I am immensely proud of how our team members have
embraced this initiative and the progress made to date in this pivotal effort, laying the groundwork for
continued innovation and ensuring we remain competitive in a rapidly changing industry.
Our strong financial results amidst the challenging economic environment are a testament to our team
members    hard work and their dedication to serving our customers and communities. On behalf of our
Board and management team, I would like to thank our team members for their efforts in a challenging
year, our customers for the opportunities to serve them, and you, our shareholder, for your continued
confidence in Southern Missouri Bancorp.
Sincerely,
Greg Steffens
Chairman of the Board and Chief Executive Officer
Southern Missouri Bancorp, Inc.
20-Year Shareholder Return
1,200.00
1,000.00
800.00
600.00
400.00
200.00
(200.00)
2005
2007
2009
2011
Southern Bank (SMBC) - 1,081.61%
2013
2015
S&P United States BMI Banks Index
2017
2019
S&P 500 Bank
2021
2023
2025
Russell 2000
Source S&P Global Market Intelligence
Southern Missouri Bancorp     Annual Report 2025
3

D EA R SHA REHOL DERS,
Our Company made significant strides during the year, guided by our refined mission, vision, and
values. Our values are more than words on paper   they   re principles brought to life by our team.
These values were evident throughout the year in the way we supported one another as family,
embraced innovation, deepened community roots, prioritized service, built lasting trust, and
provided strength to our customers and shareholders. The alignment of our culture with our strategy
was a driving force behind the strong results we achieved in fiscal year 2025 and will continue to help
us succeed in the years ahead.
F IN A N CI A L P E R F O R M A N CE
The Company delivered strong financial results for fiscal year 2025 amid the challenging economic
environment. Net income increased $8.4 million, or 16.7%, and diluted earnings per share were $5.18,
an increase of 17.2%. The Company also reported strong growth in net interest income of 10.85%, as
the net interest margin increased 13 basis points compared to the prior fiscal year. Noninterest income
increased 12.6% as the Company worked to increase fee income and further diversify our revenue
streams across all products and segments. Although noninterest expense increased during the year,
strong revenue growth more than offset this rise. This drove an improvement in our efficiency ratio to
55.9% in fiscal year 2025, compared to 58.9% in the prior year, reflecting disciplined execution and
utilization of operating leverage. Despite some additional credit costs during fiscal 2025, we delivered
strong earnings growth for the year, increasing profitability to a 1.21% return on average assets and an
11.4% return on average equity.
The Company reported solid asset growth of $415.3 million, or 9.0%, for fiscal 2025. We experienced
well-rounded loan growth throughout our footprint, with larger growth from our northern and southern
regions, as net loans increased 6.6% to $4 billion. Despite strong competition throughout the year,
deposits increased $338.3 million, or 8.6%. Looking back over the past five years, even with the margin
and profitability pressure experienced in fiscal 2024, we have compounded tangible book value by 10%
annually, while also returning an average of 17% of earnings to shareholders through cash dividends.
These positive results reflect the Company   s commitment to delivering a sound return to our
shareholders, to providing our customers with superior service and expanding our relationships with
them to achieve their financial goals, and to providing our team members the tools and knowledge
to best serve our customers. We   re excited that our efforts   and the investments we make   help to
advance our communities    economic, social, and educational prospects.
S T R AT E GIC GR O W T H
The Company   s strategic growth in fiscal 2025 centered on organic expansion and strengthening our
presence in the Kansas City and St. Louis metropolitan markets. In Kansas City, fiscal 2025 marked the
second full year of integrated operations following the Citizen   s merger, supported by the addition of a
second loan production office. Looking ahead, we plan to open two new locations in the St. Louis market
during fiscal 2026, further expanding our footprint and positioning the Company for sustained growth.
Our loan pipeline remains strong across all regions, reflecting healthy customer demand, and we remain
disciplined in our approach, maintaining stringent underwriting standards to ensure quality loan growth
while effectively managing risk.
With a strong capital position and a positive outlook, the Company increased its quarterly dividend in
the first quarter of fiscal 2026, while still retaining a significant portion of earnings to support future
growth. We continue to carefully evaluate strategic uses of our capital, including investments in
organic expansion through traditional bank products and other financial services, pursuing merger and
acquisition opportunities that align with our strategic goals and to achieve scale in target markets, or
returning capital to shareholders through buybacks or dividends. As opportunities present themselves,
we   ll carefully evaluate our options to best deliver shareholder value over the long term.
Southern Missouri Bancorp     Annual Report 2025
4

CU S T O M E R E X P E R IE N CE A N D IN N O VAT IO N
The Company continues to invest in new technologies designed to provide more features and flexibility,
greater security, and an enhanced digital experience for our customers. As cybersecurity threats evolve,
the Company prioritizes the security and protection of our customer data. In addition, the performance
improvement project is leading us to reimagine the customer experience with innovative process
management. We are focused on offering the right products for our clients and enhancing our treasury
management solutions to remain a leader in the communities we serve, strengthen business client
relationships, and grow lower-cost operating deposits over time. Based upon our most recent customer
survey, customers most often described us as    trustworthy    and    reliable    while also highlighting both
personal service and digital access as reasons they are satisfied with the Company. We are pleased with
the progress to date and excited to show our customers new updates when fully tested and ready.
T E A M M E M B E RS AND COM M UNITY COM MITME NT
Our team members and the communities they serve are at the heart of our vision and values, and we are
firmly committed to their success. This fiscal year, our team members volunteered over 3,000 hours and
donated approximately $25,000 of their own funds to local charities and community nonprofit organizations
through fundraisers we organized. The Company also contributed over $500,000 in charitable donations to
support local community initiatives and to emphasize our commitment to our hometowns.
Another key initiative this year was our continuing project to strengthen our organizational culture.
Dedicated team member task forces are driving the actions recommended, and early results have been
positive and encouraging. A recent team member survey reflected these improvements, with notable
successes since the beginning of the project. By fostering a stronger, more engaged culture, we are
enhancing the experience for our team, elevating service for our customers, and continuing to improve
the Company   s performance.
During the year, the Company announced it had promoted Justin Cox to the newly created position of
Chief Banking Officer, hired Diane Wakefield to lead the Company   s wealth management departments,
and added key team members in our newer markets in the Kansas City and St. Louis metro areas. These
new team member additions have already yielded positive results as we continue to meet the evolving
financial needs of our customers. Other senior team members took on new roles as we realigned duties
in a way that will best help us carry out our strategic initiatives. We greatly appreciate the commitment
of our leadership team to take on new challenges for the long-term benefit of our organization.
F I S C A L 2 0 2 6 O U T L OO K
Looking ahead to 2026 and beyond, we are focused on driving long-term earnings growth and shareholder
value. Guided by our commitment to exceptional service, innovation, and a strong, engaged team, we
are well-positioned to seize opportunities, navigate challenges, and continue building a company that
strengthens our communities.
We   re here for you and your financial goals.
Sincerely,
Matt Funke
President & Chief Administrative Officer
Southern Missouri Bancorp, Inc.
Southern Missouri Bancorp     Annual Report 2025
5



 9/19/2025 Letter Continued (Full PDF)