10-Q · May 8, 2026
Southern Missouri Bancorp, Inc. reported strong results for Q3 2026, with revenue of $50.245 million and diluted EPS of $1.60, exceeding analyst expectations. Driven by a 13.3% increase in net income year-over-year to…
Earnings analysis · 10-K
SMBC earnings analysis
Filed September 11, 2026 · Our reading of the company's report
The latest report
Southern Missouri Bancorp delivered a strong fiscal 2026, with net income up 22.6%, diluted EPS at $6.43, loan growth of 7.1% and net interest margin expansion to 3.62%. Capital generation and shareholder returns were…
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Southern Missouri Bancorp delivered a strong fiscal 2026, with net income up 22.6%, diluted EPS at $6.43, loan growth of 7.1% and net interest margin expansion to 3.62%. Capital generation and shareholder returns were supportive, while wealth management and other fee businesses also grew. However, rising nonperforming assets, higher charge-offs and loans of concern, combined with elevated CRE exposure and tighter funding metrics, offset the earnings momentum and support a neutral overall outlook.
Reported figures
- Earnings per share
- $6.43
- Segment
- Single reportable segment: community banking and related financial services; the company states that no additional segment disclosures are required.
What stood out
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Earnings and EPS accelerated
Fiscal 2026 net income increased 22.6% to $71.8 million from $58.6 million in fiscal 2025 and $50.2 million in fiscal 2024. Diluted EPS rose to $6.43 from $5.18 and $4.42, respectively.
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Margin expansion drove profitability
Net interest income increased 11.8% to $172.8 million, while net interest margin expanded to 3.62% from 3.40% in fiscal 2025 and 3.27% in fiscal 2024. The improvement reflected lower funding costs and a 4.9% increase in average interest-earning assets.
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Loan growth remained strong
Net loans grew 7.1% to $4.34 billion, with gross loans increasing 7.1% to $4.39 billion. Fiscal 2026 loan originations reached $1.24 billion, up from $988.3 million in fiscal 2025 and $917.3 million in fiscal 2024.
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Fee businesses expanded
Wealth management assets under management increased to $818.7 million from $645.8 million, while wealth management fees rose to $3.8 million from $3.3 million. Insurance brokerage commissions also increased to $1.4 million from $1.3 million.
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Capital returns increased
The company returned capital through $11.1 million of common dividends and $18.6 million of share repurchases in fiscal 2026, including 317,000 shares repurchased at an average price of $58.59. The new authorization permits repurchases of up to 550,000 shares, with 103,508 purchased by June 30, 2026.
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Capital position stayed strong
The Bank remained well capitalized, reporting a 12.12% CET1 ratio, 13.37% total risk-based capital ratio and 10.45% Tier 1 leverage ratio at June 30, 2026. Stockholders’ equity increased 8.4% to $590.7 million.
What to watch
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Credit metrics weakened
Asset quality deteriorated materially: nonperforming assets increased to $33.5 million, or 0.64% of assets, from $23.7 million, or 0.47%, while nonperforming loans rose to $27.7 million from $23.0 million. Net charge-offs increased to $10.3 million from $7.0 million, and loans of concern rose to $105.7 million from $77.0 million, primarily reflecting pressure in agricultural and commercial borrowers.
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CRE concentration remains elevated
Commercial real estate and business lending remain concentrated. Commercial real estate loans totaled $1.9 billion and commercial business loans $771.7 million at June 30, 2026; non-owner-occupied CRE equaled 287.9% of Tier 1 capital plus ACL and 38.8% of total loans, near the 300% supervisory screening threshold.
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Liquidity and deposit risk increased
Funding and liquidity became more dependent on costly or potentially less stable sources: the fourth-quarter loan-to-deposit ratio rose to 99.7% from 94.5%, cash equivalents and time deposits fell 52.9% to $91.0 million, and $835.1 million of deposits were uninsured. FHLB advances increased 25.3% to $130.4 million and brokered deposits rose to $290.6 million.
Management's outlook
No forward EPS or revenue guidance was provided in the 10-K. The filing discusses projected fiscal 2026 capital investment of approximately $8.0 million to $11.0 million, but does not provide an annual earnings or revenue outlook.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.