SMBC

Southern Missouri Bancorp is executing a textbook community-bank playbook: net income grew 16.7% to $58.6M in FY2025 with diluted EPS up 17.2% to $5.18, while total assets expanded 9.0% to $5.02B and deposits grew to $4.28B. The MD&A confirms the quality of that growth — net interest margin expanded to 3.40% from 3.27%, interest rate spread widened to 2.84% from 2.71%, and return on average equity climbed to 11.37%. Net interest income rose to $154.6M (+10.8%) as the bank repriced assets faster than deposits, a meaningful pivot after the 2023 squeeze when NIM compressed to 3.54% on its way down. The stockholder-return graph in the filing shows SMBC at 246.84 vs. 100 in June 2020, beating the KBW Bank Index (219.86) and the S&P U.S. Midwest Banks Index (186.37) — a real outperformance, not just beta.

The balance sheet supports the call. Equity grew 11.4% to $545M, cash tripled to $193M (cited explicitly in the filings as $294M of cash, interest-bearing deposits and investment securities), and operating cash flow of $81.6M comfortably funds the modest $10.4M dividend (17.7% payout ratio per the 10-K) plus growth capex. Credit quality remains pristine: nonperforming assets are 0.47% of total assets and ACL coverage of nonperforming loans is 224%, with net charge-offs at just 0.17% of average loans. Yes, NPAs doubled from 0.23% YoY and ACL/NPL coverage fell from 786% — worth monitoring — but absolute levels are still excellent for a CRE-heavy lender.