SOUTHERN MISSOURI BANCORP, INC.

June 30, 2026

Cumulative Amount of Fair Value

Hedging Adj Included in

(dollars in thousands)

Hedged Assets

Carrying Amount of Hedged Assets

1-4 Family interest rate swaps

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

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

For the fiscal year ended June 30, 2026 OR

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

Commission File Number: 0-23406


SOUTHERN MISSOURI BANCORP, INC.
(Exact name of registrant as specified in its charter)

Missouri		43-1665523
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

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

Registrant’s telephone number, including area code: (573) 778-1800

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


Title of Each Class		Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share		SMBC	The NASDAQ Stock Market, LLC

Securities Registered Pursuant to 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ◻ No ⌧

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ◻ No ⌧

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 and posted on its corporate web site, if any, every interactive data file required to be submitted and posted 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 registration 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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


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 has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ◻

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant, computed by reference to the average of the high and low traded price of such stock as of the last business day of the registrant’s most recently completed second fiscal quarter, was $581.1 million. (The exclusion from such amount of the market value of the shares owned by any person shall not be deemed an admission by the registrant that such person is an affiliate of the registrant.)

As of September 10, 2026, there were issued and outstanding 11,013,279 shares of the Registrant’s common stock.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of Form 10-K - Portions of the Proxy Statement for the 2026 Annual Meeting of Stockholders.

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SOUTHERN MISSOURI BANCORP, INC.

FORM 10-K

TABLE OF CONTENTS


		Page
PART I		3

Item 1.	Description of Business	3
Item 1A.	Risk Factors	38
Item 1B.	Unresolved Staff Comments	52
Item 1C.	Cybersecurity, Risk Management, Strategy and Governance	53
Item 2.	Description of Properties	55
Item 3.	Legal Proceedings	55
Item 4.	Mine Safety Disclosures	55
Item 4A.	Information About Our Executive Officers	55

PART II		58

Item 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	58
Item 6.	[Reserved]	59
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	59
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	73
Item 8.	Financial Statements and Supplementary Information	75
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	132
Item 9A.	Controls and Procedures	132
Item 9B.	Other Information	136
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	136

PART III		137

Item 10.	Directors, Executive Officers, and Corporate Governance	137
Item 11.	Executive Compensation	137
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	138
Item 13.	Certain Relationships, Related Transactions, and Director Independence	138
Item 14.	Principal Accountant Fees and Services	138

PART IV		139

Item 15.	Exhibits and Financial Statement Schedules	139
Item 16.	Form 10-K Summary	140
Signatures		141

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PART I

Item 1. Description of Business

The disclosures set forth in this Item 1. are qualified by Item 1A. Risk Factors and the section captioned “Forward Looking Statements” in this section and other cautionary statements set forth elsewhere in this report.

General

Southern Missouri Bancorp, Inc. ("Company") is a bank holding company and the parent company of Southern Bank (“Bank”). The Company changed its state of incorporation to Missouri on April 1, 1999, after originally incorporating in Delaware on December 30, 1993, for the purpose of becoming the holding company for the Bank, which was known as Southern Missouri Savings Bank upon completion of its conversion from a state chartered mutual savings and loan association to a state chartered stock savings bank. The Company’s common stock is quoted on the NASDAQ Global Market under the symbol "SMBC".

The Bank was originally chartered by the state of Missouri as a mutual savings and loan association in 1887. On June 4, 2004, Southern Missouri Bank & Trust Co. converted from a Missouri chartered stock savings bank to a Missouri chartered trust company with banking powers ("Charter Conversion"). On June 1, 2009, the institution changed its name to Southern Bank.

The primary regulator of the Bank is the Missouri Division of Finance. The Bank is a member of the Federal Reserve, and the Board of Governors of the Federal Reserve System ("Federal Reserve Board" or "FRB") is the Bank’s primary federal regulator. The Bank’s deposits continue to be insured up to applicable limits by the Deposit Insurance Fund ("DIF") of the Federal Deposit Insurance Corporation ("FDIC"). With the Bank’s conversion to a trust company with banking powers, the Company became a bank holding company regulated by the FRB.

The principal business of the Bank consists of attracting retail deposits from the general public and using such deposits along with wholesale funding from the Federal Home Loan Bank of Des Moines, ("FHLB"), and brokered deposits, to invest in one- to four-family residential mortgage loans, mortgage loans secured by commercial real estate, commercial non-mortgage business loans, construction loans, and consumer loans. These funds are also used to purchase mortgage-backed and related securities ("MBS"), municipal bonds, and other permissible investments.

At June 30, 2026, the Company had total assets of $5.2 billion, total deposits of $4.4 billion and stockholders’ equity of $590.7 million. The Company has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this report, including financial statements and related data, relates primarily to the Bank. The Company’s revenues are derived principally from interest earned on loans and investment securities, and, to a lesser extent, banking service charges, bank card interchange fees, gains on sales of loans and loan servicing income, wealth management fees, increases in the cash surrender value of bank owned life insurance, and other fee income.

Acquisitions During The Last Ten Years

On January 20, 2023, the Company completed its acquisition of Citizens Bancshares, Co. (“Citizens”), the parent company of Citizens Bank & Trust Company (“Citizens Bank”). At closing, before purchase accounting adjustments, Citizens held total assets of $985.7 million, loans, net, of $456.0 million, and deposits of $851.0 million. The acquisition resulted in goodwill of $23.5 million, which was attributable to synergies and economies of scale expected to result from combining the operations of the Bank and Citizens Bank. Goodwill from this transaction was recorded at the Company level, and was not deductible for tax purposes.

On February 25, 2022, the Company completed its acquisition of Fortune Financial, Inc. (“Fortune”), the parent company of FortuneBank (“FB”) in a stock and cash transaction. At closing, before purchase accounting adjustments, Fortune held total assets of $253.0 million, loans, net, of $202.1 million, and deposits of $218.3 million. The acquisition resulted in goodwill of $12.8 million, which was attributable to synergies and economies of scale expected to result from

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combining the operations of the Bank and FB. Goodwill from this transaction was recorded at the Company level, and was not deductible for tax purposes.

On December 15, 2021, the Company completed its acquisition of the Cairo, Illinois, branch (“Cairo”) of First National Bank, Oldham, South Dakota. The deal resulted in Southern Bank relocating its facility from its prior location in Cairo to the First National Bank location in Cairo. The Company views the acquisition and updates to the new facility as an expression of its continuing commitment to the Cairo community. The acquisition resulted in goodwill of $442,000, which was recorded at the Bank level, and was not deductible for tax purposes.

On May 22, 2020, the Company completed its acquisition of Central Federal Bancshares, Inc. (“Central”) and its wholly owned subsidiary, Central Federal Savings & Loan Association of Rolla (“Central Federal”), in an all-cash transaction. At closing, Central held total assets of $70.6 million, loans, net, of $51.4 million, and deposits of $46.7 million. The acquisition resulted in a bargain purchase gain of $123,000, while none of the purchase price was allocated to goodwill.

On November 21, 2018, the Company completed its acquisition of Gideon Bancshares Company (“Gideon”) and its wholly owned subsidiary, First Commercial Bank (“First Commercial”), in a stock and cash transaction. At closing, Gideon held total assets of $217 million, loans, net, of $144 million, and deposits of $171 million. The acquisition resulted in goodwill of $1.0 million, which was attributable to synergies and economies of scale expected to result from combining the operations of the Bank and First Commercial. Goodwill from this transaction was recorded at the Bank level, and was not deductible for tax purposes.

On February 23, 2018, the Company completed its acquisition of Southern Missouri Bancshares, Inc. (“Bancshares”), and its wholly owned subsidiary, Southern Missouri Bank of Marshfield (“SMB-Marshfield”), in a stock and cash transaction. SMB-Marshfield was merged into the Bank at acquisition. At closing, Bancshares held total assets of $86.2 million, loans, net, of $68.3 million, and deposits of $68.2 million. The acquisition resulted in goodwill of $4.4 million, which was attributable to synergies and economies of scale expected to result from combining the operations of the Bank and SMB-Marshfield. Goodwill from this transaction was recorded at the Company level, and was not deductible for tax purposes.

On June 16, 2017, the Company completed its acquisition of Tammcorp, Inc. (Tammcorp), and its subsidiary, Capaha Bank (Capaha), Tamms, Illinois, in a stock and cash transaction. Capaha was merged into the Bank at acquisition. At closing, Tammcorp held total assets of $187 million, loans, net, of $153 million, and deposits of $167 million. A Tammcorp note payable of $3.7 million was contractually required to be repaid in conjunction with the acquisition. The acquisition resulted in goodwill of $4.1 million, which was attributable to synergies and economies of scale expected to result from combining the operations of the Bank and Capaha. Goodwill from this transaction was recorded at the Company level, and was not deductible for tax purposes.

The Company completed each of the above whole bank acquisitions primarily for the purpose of expanding its commercial banking activities where it believes the Company’s business model will perform well and for the long-term value of its core deposit franchise.

Capital Raising Transactions During the Last Ten Years

On June 20, 2017, the Company completed an at-the-market common stock issuance. A total of 794,762 shares of the Company’s common stock were sold at a weighted-average price of approximately $31.46 per share, representing gross proceeds to the Company of approximately $25.0 million. The proceeds from the transaction have been used for general corporate purposes, including working capital to support organic growth at Southern Bank, and to support acquisitions to the extent available.

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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 relate to our financial condition, results of operations, and 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 the 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;

●

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;

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●

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;

●

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.

Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. The Company wishes to advise readers that the factors listed above and other risks described in this Annual Report on Form 10-K, including, without limitation, those described under Item 1A. “Risk Factors,” and other documents filed or furnished from time to time by the Company with the SEC (and are available on our website at investors.bankwithsouthern.com and on the SEC’s website at www.sec.gov) could affect the Company’s financial performance and cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

Market Area

The Bank provides its customers with a full array of community banking services and conducts its business from its headquarters in Poplar Bluff, as well as 63 full service branch offices, two limited service branch offices, and three loan production offices, as of June 30, 2026. The branch offices are located in Poplar Bluff (three and headquarters), Van Buren, Dexter (two), Kennett, Doniphan, Sikeston, Qulin, Springfield (three), Thayer (two), West Plains (two), Alton, Clever, Forsyth, Fremont Hills, Kimberling City, Ozark, Nixa, Rogersville, Marshfield, Cape Girardeau (two), Jackson, Gideon, Chaffee, Benton, Advance, Bloomfield, Essex, Rolla, Arnold, Oakville, Sunset Hills, Kansas City (two), Kearney, Lee’s Summit, Macon, Maryville, Boonville, Brookfield, Chillicothe (two), Smithville, St. Joseph (two), and Trenton, Missouri; Jonesboro (two), Paragould, Batesville, Searcy, Bald Knob, Bradford, and Cabot, Arkansas; Anna, Cairo, and Tamms, Illinois; and Leawood, Kansas.

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For purposes of management and oversight of its operations, the Bank has organized its facilities into five regional markets. The Bank’s east region includes 24 of its facilities, one of which is limited service, which are situated in Butler, Cape Girardeau, Carter, New Madrid, Ripley, Scott, and Stoddard counties in Missouri, and Alexander and Union counties in Illinois. These counties have a total population of approximately 245,000, and included within this market area is the Cape Girardeau MSA, which has a population of approximately 99,000. The Bank’s south region includes 13 of its facilities, one of which is limited service, which are situated in Dunklin, Howell, and Oregon counties in Missouri, and Craighead, Greene, Independence, Lonoke, and White counties in Arkansas. These counties have a total population of approximately 436,000, and included within this market area is the Jonesboro MSA, which has a population of approximately 139,000. The Cabot, Arkansas, branch in Lonoke County, is located in the northeast corner of the Little Rock MSA, which has a population of approximately 778,000. The Bank’s west region includes 12 of its facilities, which are situated in Christian, Greene, Phelps, Stone, Taney, and Webster counties in Missouri. These counties have a total population of approximately 584,000, and included within this market area is the Springfield MSA, which has a population of approximately 501,000. The Bank’s north region includes four of its facilities, which are situated in Jefferson and St. Louis counties, and the City of St. Louis. The counties and the city have a total population of approximately 1.5 million. The north region market area is within the St. Louis MSA, which has a population of approximately 2.8 million. The Bank’s northwest region includes 15 of its facilities, one of which is limited service, which are situated in Buchanan, Clay, Cooper, Grundy, Jackson, Linn, Livingston, Macon, Nodaway, and Platte counties in Missouri, and Johnson County in Kansas. These counties have a total population of approximately 1.9 million, and some counties in this market area are located within the Kansas City MSA, or the St. Joseph MSA, which has a combined population of approximately 2.4 million. Each of these markets may also serve other communities just outside the area described, but without a notable impact on the demographics of the market area.

The Bank’s east and south regions, and part of the northwest region, are generally rural in nature with economies supported by manufacturing activity, agriculture (livestock, dairy, poultry, rice, timber, soybeans, wheat, melons, corn, and cotton), healthcare, and education. Large employers include hospitals, manufacturers, school districts, and colleges. In the west region, the Bank’s operations are generally more concentrated in the Springfield, Missouri, MSA, and major employers include healthcare providers, educational institutions, federal, local, and state governments, retailers, transportation and distribution firms, and leisure, entertainment, and hospitality interests. In the north region, major employers include aviation and transportation, healthcare providers, medical research, educational institutions, retailers, manufacturers, energy/utilities, and hospitality. In the portion of the northwest region within the Kansas City MSA, major employers include healthcare providers, manufacturers, medical research, educational institutions, retailers, and hospitality. For purposes of the Bank’s lending policy, the Bank’s primary lending area is considered to be the counties where the Bank has a branch facility, and any contiguous county.

Competition

The Bank faces strong competition in attracting deposits (its primary source of lendable funds) and originating loans. The most recent market share data by the FDIC reflected that the Bank was one of 261 bank or saving association groups located in Missouri competing for approximately $268.9 billion in deposits at FDIC-insured institutions. The Bank’s market share was approximately 1.38% in the state of Missouri, where the majority of our deposits reside amongst the 54 locations in the state.

Competitors for deposits include commercial banks, credit unions, digital payment applications, money market funds, and other investment alternatives, such as mutual funds, full service and discount broker-dealers, equity markets, brokerage accounts and government securities. The Bank’s competition for loans comes principally from other financial institutions, mortgage banking companies, mortgage brokers and life insurance companies. The Bank expects competition to continue to increase in the future as a result of legislative, regulatory and technological changes within the financial services industry. Technological advances, for example, have lowered barriers to market entry, allowed banks to expand their geographic reach by providing services over the Internet and made it possible for non-depository institutions to offer products and services that traditionally have been provided by banks. The Gramm-Leach-Bliley Act, which permits affiliation among banks, securities firms and insurance companies, also has changed the competitive environment in which the Bank conducts business.

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Lending Activities

General. The Bank’s lending activities consist of originating loans secured by mortgages on one- to four-family and multi-family residential real estate, commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans, and consumer loans. The Bank has also occasionally purchased loan participation interests originated by other lenders. At June 30, 2026, the Bank had purchased participation interests in 62 loans with balances outstanding totaling $147.1 million.

Supervision of the loan portfolio is the responsibility of our Chief Lending Officer, Rick Windes, Chief Banking Officer, Justin Cox, and our Chief Credit Officer, Mark Hecker (our “Senior Lending and Credit Officers”). The Chief Lending Officer and Chief Banking Officer are responsible for oversight of loan production. The Chief Credit Officer is responsible for oversight of underwriting, loan policy, and administration. Loan officers have varying amounts of lending authority depending upon experience and types of loans. Loans beyond their authority are presented to the next level of authority, which may include one of five Regional Loan Committees, the Senior Loan Committee, the Bank’s Agricultural Loan Committee, a Senior Agricultural Loan Committee, an SBA Loan Committee, or a Bank Executive Loan Committee.

The Regional Loan Committees each consists of one director appointed by the Board of Directors and lenders selected by our Senior Lending and Credit Officers, and is authorized to approve lending relationships up to $4.0 million. The Senior Loan Committee consists of our Senior Lending and Credit Officers and lenders selected by them that have a higher level of lending experience. The Senior Loan Committee is authorized to approve lending relationships up to $10.0 million. The Bank’s Agricultural Loan Committee consists of several lending officers with agricultural lending experience selected by our Senior Lending and Credit Officers, and is authorized to approve agricultural lending relationships up to $4.0 million. The Senior Agricultural Loan Committee is authorized to approve agricultural lending relationships up to $10.0 million and consists of our Chief Credit Officer, as well as several senior lending officers with agricultural lending experience selected by our Senior Lending and Credit Officers. The Bank Executive Loan Committee consists of our Senior Lending and Credit Officers, plus our Chairman/CEO, and our President/Chief Administrative Officer, and is authorized to approve lending relationships up to $10.0 million.

In addition to the approval of the Senior Loan Committee or the Bank Executive Loan Committee, lending relationships in excess of $10.0 million require the approval of the Directors’ Loan Committee, which is comprised of all Bank directors. All loans are subject to ratification by the full Board of Directors.

The aggregate amount of loans that the Bank is permitted to make under applicable federal regulations to any one borrower, including related entities, or the aggregate amount that the Bank could have invested in any one real estate project, is based on the Bank’s capital levels. At June 30, 2026, the maximum amount which the Bank could lend to any one borrower and the borrower’s related entities was approximately $150.4 million. At June 30, 2026, the Bank’s ten largest credit relationships, as defined by loan to one borrower limitations, ranged from $26.5 million to $75.8 million, net of participation interests sold. As of June 30, 2026, the majority of these credits were multi-family real estate, commercial real estate, agriculture, or commercial business loans, and all of these relationships were performing in accordance with their terms.

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Loan Portfolio Analysis. The following table sets forth the composition of the Bank’s loan portfolio by type of loan and type of security as of the dates indicated.


	At June 30,
	2026				2025				2024				2023				2022
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent

	(Dollars in thousands)
Type of Loan:
Mortgage Loans:
One- to four-family residential	$	1,085,512	25.03	%	$	992,445	24.51	%	$	925,397	24.37	%	$	845,010	23.66	%	$	661,703	24.63	%
Non-owner occupied commercial real estate		924,144	21.31			888,317	21.94			899,770	23.70			836,153	23.41			603,316	22.46
Owner occupied commercial real estate		471,990	10.88			442,984	10.94			427,476	11.26			425,385	11.91			276,885	10.31
Multifamily real estate		469,968	10.84			422,758	10.44			384,564	10.13			392,947	11.00			307,958	11.46
Construction and land development		310,006	7.15			332,405	8.21			290,541	7.65			253,634	7.10			187,801	6.99
Agriculture real estate		295,803	6.82			244,983	6.05			232,520	6.12			238,062	6.67			213,088	7.93
Total mortgage loans		3,557,423	82.03			3,323,892	82.09			3,160,268	83.23			2,991,191	83.75			2,250,751	83.78
Other Loans:
Commercial and industrial (1)		552,557	12.74			510,259	12.60			450,147	11.85			424,905	11.90			308,873	11.50
Agriculture production		219,155	5.05			206,128	5.09			175,968	4.63			138,284	3.87			110,266	4.10
Automobile Loans		22,248	0.51			23,249	0.57			22,517	0.59			21,761	0.61			17,328	0.65
Other Loans:		40,425	0.94			37,240	0.93			41,135	1.09			43,056	1.22			32,625	1.23
Total other loans		834,385	19.24			776,876	19.19			689,767	18.16			628,006	17.60			469,092	17.48
Total loans		4,391,808	101.27			4,100,768	101.28			3,850,035	101.39			3,619,197	101.35			2,719,843	101.26
Less:
Deferred fees and discounts		—	—			178	—			232	0.01			299	0.01			453	0.02
Allowance for credit losses		54,912	1.27			51,629	1.28			52,516	1.38			47,820	1.34			33,192	1.24
Net loans receivable	$	4,336,896	100.00	%	$	4,048,961	100.00	%	$	3,797,287	100.00	%	$	3,571,078	100.00	%	$	2,686,198	100.00	%

Type of Security:
Residential real estate
One-to four-family	$	1,068,310	24.63	%	$	970,022	23.96	%	$	846,538	22.29	%	$	791,747	22.17	%	$	641,133	23.87	%
Multi-family		578,491	13.34			619,236	15.29			507,683	13.37			454,323	12.72			342,276	12.74
Commercial real estate		1,420,475	32.75			1,412,984	34.90			1,388,846	36.57			1,339,741	37.52			935,367	34.82
Land		386,903	8.92			324,539	8.02			294,077	7.74			300,841	8.42			266,472	9.92
Commercial		747,825	17.24			510,259	12.60			668,292	17.60			599,030	16.77			441,598	16.44
Consumer and other		189,804	4.39			263,728	6.51			144,599	3.82			133,515	3.75			92,997	3.47
Total loans		4,391,808	101.27			4,100,768	101.28			3,850,035	101.39			3,619,197	101.35			2,719,843	101.26

Less:
Deferred fees and discounts		—	—			178	—			232	0.01			299	0.01			453	0.02
Allowance for credit losses		54,912	1.27			51,629	1.28			52,516	1.38			47,820	1.34			33,192	1.24
Net loans receivable	$	4,336,896	100.00	%	$	4,048,961	100.00	%	$	3,797,287	100.00	%	$	3,571,078	100.00	%	$	2,686,198	100.00	%

(1)	Commercial business loan balances included PPP loans of $94,000, $264,000, $433,000, $601,000, and $6.1 million as of June 30, 2026, 2025, 2024, 2023, and 2022, respectively.

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The following table shows the fixed and adjustable rate composition of the Bank’s loan portfolio at the dates indicated.


	At June 30,
	2026				2025				2024				2023				2022
	Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent		Amount		Percent

	(Dollars in thousands)
Type of Loan:
Fixed-Rate Loans:
One- to four-family residential	$	700,255	16.15	%	$	670,414	16.56	%	$	649,194	17.10	%	$	611,292	17.12	%	$	513,987	19.13	%
Non-owner occupied commercial real estate		669,325	15.43			720,863	17.80			763,855	20.12			716,470	20.06			534,984	19.92
Owner occupied commercial real estate		305,940	7.05			289,558	7.15			287,023	7.56			307,187	8.60			205,612	7.65
Multi-family real estate		359,068	8.28			330,576	8.16			298,082	7.85			336,632	9.43			275,715	10.26
Construction and land development		204,845	4.72			220,179	5.44			207,233	5.46			182,890	5.12			165,838	6.17
Agriculture real estate		242,099	5.58			212,002	5.24			206,550	5.44			213,641	5.98			197,269	7.34
Commercial and industrial		304,491	7.02			281,912	6.96			273,956	7.21			254,321	7.12			207,417	7.72
Agriculture production		72,675	1.68			65,433	1.62			65,794	1.73			61,818	1.73			50,502	1.88
Consumer		51,847	1.20			54,099	1.34			58,136	1.53			57,007	1.60			43,815	1.64
All other loans		9,529	0.22			5,102	0.13			3,981	0.11			6,755	0.20			5,037	0.21
Total fixed-rate loans		2,920,074	67.33			2,850,138	70.40			2,813,804	74.11			2,748,013	76.96			2,200,176	81.92
Adjustable-Rate Loans:
One- to four-family residential		385,257	8.88			322,031	7.95			276,203	7.27			233,718	6.54			147,716	5.50
Non-owner occupied commercial real estate		254,819	5.88			167,454	4.14			135,915	3.58			119,683	3.35			68,332	2.54
Owner occupied commercial real estate		166,050	3.83			153,426	3.79			140,453	3.70			118,198	3.31			71,273	2.65
Multi-family real estate		110,900	2.56			92,182	2.28			86,482	2.28			56,315	1.58			32,243	1.20
Construction and land development		105,161	2.42			112,226	2.77			83,308	2.19			70,744	1.98			21,963	0.82
Agriculture real estate		53,704	1.24			32,981	0.81			25,970	0.68			24,421	0.68			15,819	0.59
Commercial and industrial		248,066	5.72			228,347	5.64			176,191	4.64			170,584	4.78			101,456	3.78
Agriculture production		146,480	3.38			140,695	3.47			110,174	2.90			76,466	2.14			59,764	2.22
Consumer		1,297	0.03			1,288	0.03			1,535	0.04			1,055	0.03			1,101	0.04
All other loans		—	—			—	—			—	—			—	—			—	—
Total adjustable-rate loans		1,471,734	33.94			1,250,630	30.88			1,036,231	27.28			871,184	24.39			519,667	19.34
Total loans		4,391,808	101.27			4,100,768	101.28			3,850,035	101.39			3,619,197	101.35			2,719,843	101.26
Less:

Deferred fees and discounts		—	—			178	—			232	0.01			299	0.01			453	0.02
Allowance for credit losses		54,912	1.27			51,629	1.28			52,516	1.38			47,820	1.34			33,192	1.24
Net loans receivable	$	4,336,896	100.00	%	$	4,048,961	100.00	%	$	3,797,287	100.00	%	$	3,571,078	100.00	%	$	2,686,198	100.00	%

Residential Mortgage Lending. The Bank actively originates loans for the acquisition or refinance of one- to four-family residences. These loans are originated as a result of customer and real estate agent referrals, existing and walk-in customers, and from responses to the Bank’s marketing campaigns. At June 30, 2026, residential loans secured by one- to four-family residences totaled $1.1 billion, or 25.0% of net loans receivable.

The Bank currently offers both fixed-rate and adjustable-rate mortgage (“ARM”) loans. During the year ended June 30, 2026, the Bank originated $80.6 million of ARM loans and $142.6 million of fixed-rate loans that were secured by one- to four-family residences, for retention in the Bank’s portfolio. An additional $32.1 million in fixed-rate one- to four-family residential loans were originated for sale on the secondary market. Substantially all of the one- to four-family residential mortgage originations in the Bank’s portfolio are secured by property located within the Bank’s market area. Fixed rate one- to four- family loans represented 61.1% of the one- to four- family portfolio with a weighted average maturity of 12.5 years.

The Bank generally originates one- to four-family residential mortgage loans for retention in its portfolio in amounts up to 90% of the lower of the purchase price or appraised value of residential property. For loans originated in excess of 80% loan-to-value, the Bank generally charges an additional 25-75 basis points, but does not require private mortgage insurance. At June 30, 2026, the outstanding balance of loans originated with a loan-to-value ratio in excess of 80% was $172.6 million. For fiscal years ended June 30, 2026, 2025, 2024, 2023, and 2022, originations of one- to four-family loans in excess of 80% loan-to-value have totaled $39.4 million, $33.6 million, $28.3 million, $27.3 million, and $50.8 million, respectively, totaling $179.4 million. The outstanding balance of those loans originated in the last five years at June 30, 2026, was $129.1 million. Originating loans with higher loan-to-value ratios presents additional credit risk to the Bank. Consequently, the Bank limits this product to borrowers with a favorable credit history and a demonstrable ability to service the debt. The interest rates charged on these loans are competitively priced based on local

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market conditions, the availability of funding, and anticipated profit margins. Fixed and ARM loans originated by the Bank are amortized over periods as long as 30 years, but typically are repaid over shorter periods.

Fixed-rate loans secured by one- to four-family residences have contractual maturities up to 30 years, and are generally fully amortizing with payments due monthly. These loans normally remain outstanding for a substantially shorter period of time because of refinancing and other prepayments. A significant change in the interest rate environment can alter the average life of a residential loan portfolio. The one- to four-family fixed-rate loans do not contain prepayment penalties. At June 30, 2026, one- to four-family loans with a fixed rate totaled $700.3 million and had a weighted-average maturity of 150 months.

The Bank also originates one- to four-family ARM loans, which adjust annually, after an initial period of one to seven years. Typically, originated ARM loans secured by owner occupied properties reprice at a margin of 2.75% to 3.00% over the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year (“CMT”). Generally, ARM loans secured by non-owner occupied residential properties are tied to the Wall Street Journal prime rate. Owner occupied residential ARM loan originations are subject to annual and lifetime interest rate caps and floors. As a consequence of using interest rate caps, initial rates which may be at a premium or discount, and a CMT loan index, the interest earned on the Bank’s ARMs will react differently to changing interest rates than the Bank’s cost of funds. At June 30, 2026, one- to four-family loans tied to the CMT index totaled $151.1 million. One- to four-family loans tied to other indices totaled $229.3 million.

In underwriting one- to four-family residential real estate loans, the Bank evaluates the borrower’s ability to meet debt service requirements at current as well as fully indexed rates for ARM loans, and the value of the property securing the loan. Most properties securing real estate loans made by the Bank during fiscal 2026 had appraisals performed on them by independent fee appraisers approved and qualified by the Board of Directors. The Bank generally requires borrowers to obtain title insurance and fire, property and flood insurance (if indicated) in an amount not less than the amount of the loan. Real estate loans originated by the Bank generally contain a "due on sale" clause allowing the Bank to declare the unpaid principal balance due and payable upon the sale of the security property.

Home equity loans totaled $97.6 million, or 2.3% of net loans receivable, and represented 9.0% of the Bank’s one- to four-family residential loan portfolio at June 30, 2026.

Home equity lines of credit (HELOCs) are secured with a deed of trust or mortgage and are generally issued for up to 90% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage for a period of ten years. Interest rates on HELOCs are adjustable and are tied to the current prime interest rate, generally with an interest rate floor in the loan agreement. This rate is obtained from the Wall Street Journal and adjusts on a daily basis. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. HELOCs are secured by residential properties, which is generally considered to be stronger collateral than that securing other consumer loans. In addition, because of the adjustable rate structure, HELOCs present less interest rate risk to the Bank, when compared to 30 year fixed rate mortgages.

Commercial Real Estate Lending. The Bank actively originates loans secured by commercial real estate including single- and multi-tenant retail properties, restaurants, hotels, nursing homes and other healthcare related facilities, land (improved and unimproved), convenience stores, automobile dealerships, and other automotive-related services, warehouses and distribution centers, and other businesses generally located in the Bank’s market area. At June 30, 2026, the Bank had $1.9 billion in commercial real estate loans, which represented 43.0% of net loans receivable. Fixed rate commercial real estate loans represented 71.5% of the commercial real estate portfolio with a weighted average maturity of 3.3 years.

The Bank also originates loans secured by multi-family residential properties that are often located outside the Company’s primary market area, but made to borrowers who operate within the primary market area. The multi-family residential real estate loan portfolio typically includes loans secured by properties currently participating in the Low-Income Housing Tax Credit (LIHTC) program or those that have exited the program. The Company continues to closely monitor its commercial real estate concentration and the performance of individual segments to manage risk effectively. At June 30, 2026, the Bank had $470.0 million, or 10.8% of net loans receivable, secured by multi-family residential real

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estate. Fixed rate loans secured by multi-family residential properties represented 76.4% of the multi-family residential property portfolio with a weighted average maturity of 3.8 years.

The primary risk associated with multi-family loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in borrowers having to provide rental rate concessions to achieve adequate occupancy rates. In an effort to reduce these risks, the Bank evaluates the guarantor’s ability to inject personal funds as a tertiary source of repayment.

Non-owner occupied and owner occupied commercial real estate loans originated by the Bank are generally based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, these loans have fixed interest rates and maturities ranging up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually, based on the Wall Street Journal prime rate, after an initial fixed-rate period up to seven years. The Bank typically includes an interest rate "floor" in the loan agreement. The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Bank to include an interest rate “floor” and “ceiling” in variable-rate loan agreements. Variable-rate loans typically adjust daily, monthly, quarterly or annually based on the Wall Street prime interest rate. Generally, loans for improved non-owner occupied and owner-occupied commercial properties do not exceed 80%, while multi-family loans do not exceed 85%, of the lower of the appraised value or the purchase price of the secured property.

Generally, loans secured by commercial real estate involve a greater degree of credit risk than one- to four-family residential mortgage loans. These loans typically involve large balances to single borrowers or groups of related borrowers. Because payments on loans secured by commercial real estate are often dependent on the successful operation or management of the secured property, repayment of such loans may be subject to adverse conditions in the real estate market or the economy. See "Asset Quality."

Construction Lending. The Bank originates real estate loans secured by property or land that is under construction or development. At June 30, 2026, the Bank had $310.0 million, or 7.1% of net loans receivable in construction loans outstanding.

Construction loans originated by the Bank are generally secured by mortgage loans for the construction of owner occupied residential real estate or to finance speculative construction secured by residential real estate, land development, or owner-occupied or non-owner occupied commercial real estate. At June 30, 2026, $177.1 million of the Bank’s construction loans outstanding were secured by one- to four-family residential real estate, $108.5 million were secured by multi-family residential real estate, and $24.4 million were secured by commercial real estate. During construction, these loans typically require monthly interest-only payments with single-family residential construction loans maturing in nine to twelve months, while multi-family or commercial construction loans typically mature in 12 to 36 months. Once construction is completed, construction loans may be converted to permanent financing, generally with monthly payments using amortization schedules of up to 30 years on residential and up to 25 years on commercial real estate.

Speculative construction and land development lending generally affords the Bank an opportunity to receive higher interest rates and fees with shorter terms to maturity than those obtainable from residential lending. Nevertheless, construction and land development lending is generally considered to involve a higher level of credit risk than one- to four-family residential lending due to (i) the concentration of principal among relatively few borrowers and development projects, (ii) the increased difficulty at the time the loan is made of accurately estimating building or development costs and the selling price of the finished product, (iii) the increased difficulty and costs of monitoring and disbursing funds for the loan, (iv) the higher degree of sensitivity to increases in market rates of interest and changes in local economic conditions, and (v) the increased difficulty of working out problem loans. Due in part to these risk factors, the Bank may be required from time to time to modify or extend the terms of some of these types of loans. In an effort to reduce these risks, the application process includes a submission to the Bank of accurate plans, specifications and costs of the project to be constructed. These items are also used as a basis to determine the appraised value of the subject property. Loan amounts are generally limited to 80% of the lesser of current appraised value and/or the cost of construction.

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At June 30, 2026, construction loans outstanding included 55 loans, totaling $35.1 million, for which a modification had been agreed to. At June 30, 2025, construction loans outstanding included 59 loans, totaling $29.5 million, for which a modification had been agreed to. In general, these modifications were solely for the purpose of extending the maturity date due to conditions described above, pursuant to the Company’s normal underwriting and monitoring procedures. As these modifications were not executed due to financial difficulty on the part of the borrower, they were not accounted for as modifications to borrowers experiencing financial difficulty.

Agricultural Real Estate Lending. Agricultural real estate loans are generally comprised of term loans to fund the purchase of equipment, farmland, or livestock. The Bank originates substantially all agricultural real estate lending to borrowers headquartered in the Bank’s primary lending area. Agricultural real estate terms generally 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. Agricultural real estate loans generally require annual, instead of monthly, payments. Before credit is extended, the Bank analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property and the value of the property itself. Generally, personal guarantees are obtained from the borrower in addition to obtaining the secured property as collateral for such loans. The Bank also generally requires appraisals on properties securing the real estate to be performed by a Board-approved independent certified fee appraiser. At June 30, 2026, agricultural real estate loans totaled $295.8 million, or 6.8% of net loans receivable.

Commercial Business Lending. The Bank’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit. At June 30, 2026, the Bank had $771.7 million in commercial business loans outstanding, or 17.8% of net loans receivable. Of this amount, $219.2 million were loans related to agriculture, including amortizing equipment loans and annual production lines. The Bank expects to maintain, and may increase, the percentage of commercial business loans in its total loan portfolio.

The Bank currently offers both fixed and adjustable rate commercial business loans. At fiscal year end, fixed rate commercial loans represented 48.9% of the commercial loan portfolio with a weighted average maturity of 2.6 years. The adjustable rate business loans typically reprice daily, monthly, quarterly, or annually, in accordance with the Wall Street prime rate of interest. The Bank typically includes an interest rate "floor" in the loan agreement.

Commercial business loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. The Bank’s commercial business loans are evaluated based on the loan application, a determination of the applicant’s payment history on other debts, business stability and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount.

Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income, and which are secured by real property whose value tends to be more easily ascertainable, commercial business loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial business loans may be substantially dependent on the success of the business itself. Further, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

Small Business Administration (SBA) Lending. The Bank’s commercial and construction business lending activity includes some loans guaranteed by the SBA. In fiscal 2026, $3.4 million in originations was guaranteed by the SBA, and as of June 30, 2026, the Company held balances of $18.3 million in its portfolio, of which $6.4 million was guaranteed. The Company had sold and was servicing $39.9 million of the guaranteed portion of SBA loans as of June 30, 2026.

Consumer Lending. The Bank offers a variety of secured consumer loans, including automobile and deposit-secured loans. The Bank originates substantially all of its consumer loans in its primary market area. Generally,

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consumer loans are originated with fixed rates for terms of up to approximately 66 months. At June 30, 2026, the Bank’s consumer loan portfolio totaled $53.1 million, or 1.2% of net loans receivable.

Consumer loans for the purchase of automobiles represented 41.9% of the Bank’s consumer loan portfolio at June 30, 2026, and totaled $22.2 million, or 0.5% of net loans receivable. Of that total, an immaterial amount was 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.

Consumer loan rates and terms vary according to the type of collateral, length of contract and creditworthiness of the borrower, which is evaluated using credit scoring. Consumers with additional qualifying Bank products are eligible for additional pricing discounts. The underwriting standards employed for consumer loans include employment stability, a determination of the applicant’s payment history on other debts, and an assessment of ability to meet existing and proposed obligations. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security, if any, in relation to the proposed loan amount.

Consumer loans may entail greater credit risk than do residential mortgage loans, because they are generally unsecured or are secured by rapidly depreciable or mobile assets, such as automobiles. In the event of repossession or default, there may be no secondary source of repayment or the underlying value of the collateral could be insufficient to repay the loan. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. The Bank’s delinquency levels for these types of loans are reflective of these risks. See "Asset Classification."

Contractual Obligations and Commitments, Including Off-Balance Sheet Arrangements. The following table discloses our fixed and determinable contractual obligations and commercial commitments by payment date as of June 30, 2026. Commitments to extend credit totaled $948.5 million at June 30, 2026.


	Less Than						More Than
	1 Year		1-3 Years		4-5 Years		5 Years		Total

	(Dollars in thousands)
Federal Home Loan Bank advances	$	65,424	$	65,000	$	—	$	—	$	130,424
Certificates of deposit		1,442,684		247,154		50,329		—		1,740,167
Total	$	1,508,108	$	312,154	$	50,329	$	—	$	1,870,591


	Less Than						More Than
	1 Year		1-3 Years		4-5 Years		5 Years		Total

	(Dollars in thousands)
Construction unfunded commitments	$	43,070	$	90,024	$	68,730	$	39,448	$	241,272
Other loan commitments		502,696		96,412		30,365		77,711		707,184
	$	545,766	$	186,436	$	99,095	$	117,159	$	948,456

Loan Maturity and Repricing

The following table sets forth certain information at June 30, 2026, regarding the dollar amount of loans maturing or repricing in the Bank’s portfolio based on their contractual terms to maturity or repricing, but does not include scheduled payments or potential prepayments. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. Mortgage loans that have adjustable rates are shown as maturing at their next repricing date. Listed loan balances are shown before deductions for undisbursed loan proceeds, unearned discounts, unearned income and allowance for credit losses.

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			After		After
			One Year		5 Years
	Within		Through		Through		After
	One Year		5 Years		15 Years		15 Years		Total

	(Dollars in thousands)
One- to four-family residential	$	369,771	$	343,224	$	111,888	$	260,629	$	1,085,512
Non-owner occupied commercial real estate		376,043		405,592		139,235		3,274		924,144
Owner occupied commercial real estate		209,622		221,570		37,270		3,528		471,990
Multi-family real estate		153,724		178,598		137,096		550		469,968
Construction and land development		208,135		92,431		9,368		72		310,006
Agriculture real estate		90,543		170,280		29,701		5,279		295,803
Commercial and industrial		343,325		186,609		20,127		2,496		552,557
Agriculture production		164,841		49,923		4,391		—		219,155
Consumer		10,920		37,931		4,050		243		53,144
All other loans		6,125		3,250		154		—		9,529
Total loans	$	1,933,049	$	1,689,408	$	493,280	$	276,071	$	4,391,808

As of June 30, 2026, loans with a maturity date after June 30, 2027, with fixed interest rates totaled $2.2 billion, and fixed rate loans maturing within one year totaled $670.2 million at June 30, 2026.

Loan Originations, Sales and Purchases

Generally, loans are originated by the Bank’s staff, who are salaried loan officers. All loan officers are eligible for bonuses based on production, market performance, and credit quality. Certain lenders, in particular those originating higher volume of residential loans for sale on the secondary market, may earn a relatively higher percentage of their total compensation through bonuses. Loans are originated both to be held for investment and to be sold into the secondary market. Loan applications are generally taken and processed at each of the Bank’s full-service locations and online for single-family residential loans.

While the Bank originates both adjustable-rate and fixed-rate loans, the ability to originate loans is dependent upon the relative customer demand for loans in its market. In fiscal 2026, the Bank originated $1.2 billion of loans, compared to $988.3 million and $917.3 million, respectively, in fiscal 2025 and 2024. Of these loans, mortgage loan originations were $929.2 million, $774.6 million, and $691.5 million in fiscal 2026, 2025, and 2024, respectively. Increases in originations over recent periods are attributed to increased lending activity, borrower refinancing, and an expanded market area and customer base following recent mergers.

From time to time, the Bank has purchased loan participations consistent with its loan underwriting standards. During fiscal 2026, the Bank committed to purchase $53.0 million of new loan participations. At June 30, 2026, outstanding balances on loan participations purchased totaled $147.1 million, or 3.4% of net loans receivable. An additional $58.0 million is available to be drawn on these purchased participation loans. At June 30, 2026, all of these participations were performing in accordance with their respective terms. The Bank evaluates additional loan participations on an ongoing basis, based in part on local loan demand, liquidity, portfolio and capital levels.

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The following table shows total loans originated, purchased, sold and repaid during the periods indicated.


	Year Ended June 30,
	2026		2025		2024

	(Dollars in thousands)
Total loans at beginning of period	$	4,100,768	$	3,850,035	$	3,619,197

Loans originated:
One- to four-family residential		255,327		199,754		181,184
Non-owner occupied commercial real estate		161,180		81,267		91,541
Owner occupied commercial real estate		90,099		48,261		45,166
Multi-family real estate		53,170		78,247		35,785
Construction and land development		269,288		317,324		319,348
Agriculture real estate		100,110		49,762		30,888
Commercial and industrial		202,760		129,887		121,209
Agriculture production		60,275		47,600		54,519
Consumer		37,489		33,853		36,000
All other loans		5,667		2,362		1,707
Total loans originated		1,235,365		988,317		917,347

Loans purchased:
Total loans purchased		81,771		126,320		126,192

Loans sold:
Total loans sold		(52,818)		(42,638)		(61,605)

Principal repayments		(846,051)		(695,641)		(642,518)
Participation principal repayments		(120,482)		(125,000)		(107,203)

Foreclosures		(6,745)		(625)		(1,376)
Net loan activity		291,040		250,733		230,838
Total loans at end of period	$	4,391,808	$	4,100,768	$	3,850,035

Loan Commitments

The Bank issues commitments for single- and multi-family residential mortgage loans, commercial real estate loans, operating or working capital lines of credit, and standby letters-of-credit. Such commitments may be oral or in writing with specified terms, conditions and at a specified rate of interest. The Bank had outstanding net loan commitments of approximately $948.5 million at June 30, 2026. See Note 13 of Notes to the Consolidated Financial Statements contained in Item 8.

Loan Fees

In addition to interest earned on loans, the Bank receives income from fees in connection with loan originations, loan modifications, late payments and for miscellaneous services related to its loans. Income from these activities varies from period to period depending upon the volume and type of loans made and competitive conditions.

Asset Quality

Delinquent Loans. Generally, when a borrower fails to make a required payment, the Bank begins the collection process by mailing a computer generated notice to the customer. If the delinquency is not cured promptly, the customer is contacted again by notice or telephone. After an account secured by real estate becomes over 60 days past due, the Bank will typically send a demand notice to the customer which, if not cured within the time provided or unless satisfactory arrangements have been made, will lead to foreclosure. Foreclosure may not begin until the loan reaches

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120 days delinquency in the case of consumer residential loans. For consumer loans, the Missouri Right-To-Cure Statute is followed, which requires issuance of specifically worded notices at specific time intervals prior to repossession or further collection efforts.

The following table sets forth the Bank’s loan delinquencies by type and by amount at June 30, 2026.


		Loans Delinquent For:												Total Loans
														Delinquent 60 Days
		60-89 Days						90 Days and Over						or More
		Numbers			Amounts			Numbers			Amounts			Numbers			Amounts

		(Dollars in thousands)
One- to four-family residential			27		$	2,232			22		$	2,475			49		$	4,707
Non-owner occupied commercial real estate			—			—			—			—			—			—
Owner occupied commercial real estate			2			292			5			889			7			1,181
Multi-family real estate			—			—			—			—			—			—
Construction and land development			1			101			2			5,933			3			6,034
Agriculture real estate			2			408			3			1,708			5			2,116
Commercial and industrial			7			635			42			1,066			49			1,701
Agriculture production			3			5,302			3			2,192			6			7,494
Consumer			16			96			7			32			23			128
All other loans			—			—			—			—			—			—
Totals			58		$	9,066			84		$	14,295			142		$	23,361

Non-Performing Assets. The table below sets forth the amounts and categories of non-performing assets in the Bank’s loan portfolio. Loans are placed on non-accrual status when the collection of principal and/or interest becomes doubtful, and as a result, previously accrued interest income on the loan is removed from current income. The Bank has no reserves for uncollected interest and does not accrue interest on non-accrual loans. A loan may be transferred back to accrual status once a satisfactory repayment history has been restored. Foreclosed assets held for sale include assets acquired in settlement of loans and are shown net of reserves.

The increase in nonperforming assets in fiscal 2026 was attributable to increases in both nonaccrual loans and other real estate owned (OREO). The year-over-year increase in nonaccrual loans was primarily attributable to three borrower relationships: one commercial relationship with a total loan balance of $6.5 million consisting of multiple related loans collateralized by commercial real estate and equipment; a second consisting of two related agricultural production loans totaling $2.2 million secured by crops and equipment; and the third, which was added during the quarter ended June 30, 2026, consisting of several related agricultural production loans totaling $5.9 million secured by crop insurance claims, restricted cash, crops, and equipment. The increase in OREO was primarily due to the foreclosure of a previously reported nonaccrual commercial loan relationship consisting of multiple loans collateralized by commercial real estate and equipment totaling $3.6 million, net of charge-offs. For information regarding accrual of interest on loans, see Note 1 of Notes to the Consolidated Financial Statements contained in Item 8.

The Company may treat purchased credit deteriorated loans as an accruing asset because these loans are recorded at acquisition at fair value, which includes an accretable discount recorded as interest income over the expected life of the obligation.

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The following table sets forth information with respect to the Bank’s non-performing assets as of the dates indicated.


	At June 30,
	2026			2025			2024			2023			2022

	(Dollars in thousands)
Nonaccruing loans:
1-4 Family residential real estate	$	3,402		$	2,847		$	1,391		$	1,153		$	1,688
Non-owner occupied commercial real estate		3,575			5,784			—			1,518			137
Owner occupied commercial real estate		1,071			1,309			1,102			141			664
Multi-family real estate		—			—			—			—			—
Construction and land development		5,974			5,789			108			753			408
Agriculture real estate		1,989			3,268			1,896			2,850			1,049
Commercial and industrial		3,688			3,442			1,703			703			97
Agriculture production		7,898			505			461			388			42
Consumer		58			96			19			37			33
All other loans		—			—			—			—			—
Total		27,655			23,040			6,680			7,543			4,118

Loans 90 days past due accruing interest:
1-4 Family residential real estate		—			—			—			109			—
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		—			—			—			109			—

Total nonperforming loans		27,655			23,040			6,680			7,652			4,118
Nonperforming investments		—			—			—			—			—
Foreclosed assets held for sale:
Real estate owned		5,631			625			3,865			3,606			2,180
Other nonperforming assets		209			32			23			32			11
Total nonperforming assets	$	33,495		$	23,697		$	10,568		$	11,290		$	6,309

Total nonperforming loans to net loans		0.64	%		0.57	%		0.18	%		0.21	%		0.15	%
Total nonperforming loans to total assets		0.53	%		0.46	%		0.15	%		0.17	%		0.13	%
Total nonperforming assets to total assets		0.64	%		0.47	%		0.23	%		0.26	%		0.20	%

The Company adopted ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures,” effective July 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of TDRs and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. At June 30, 2026, modifications totaled $31.8 million. Modifications made during the year ended June 30, 2026, totaled $5.8 million, of which none were considered nonperforming. Of the remaining $26.0 million in modifications, two loans totaling $769,000 were considered nonperforming and were included in the nonaccrual loan total above. At June 30, 2025, modifications totaled $28.2 million. Modifications made during the year ended June 30, 2025, totaled $25.7 million, of which one loan totaling $24,000 was considered nonperforming and included in the nonaccrual loan total above. The remaining $25.6 million in modifications as of June 30, 2025, complied with the modified terms for a reasonable period of time and were therefore considered by the Company to be accrual status loans at that date.

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Real Estate Owned. Real estate properties acquired through foreclosure or by deed in lieu of foreclosure are recorded at the lower of cost or fair value, less estimated disposition costs, which establishes a new cost basis. If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged-off to the ACL at the time of transfer. Management periodically updates real estate valuations and if the value declines, a specific provision for losses on such property is established by a charge to noninterest expense. At June 30, 2026, the Company’s balance of real estate owned totaled $5.6 million, of which $5.5 million was in non-residential properties.

Asset Classification. Applicable regulations require that each insured institution review and classify its assets on a regular basis. In addition, in connection with examinations of insured institutions, regulatory examiners have authority to identify problem assets and, if appropriate, require them to be classified. There are three classifications for problem assets: substandard, doubtful and loss. Substandard assets must have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. When an insured institution classifies problem assets as loss, it charges off the balance of the assets. Assets which do not currently expose the Bank to sufficient risk to warrant classification in one of the aforementioned categories but possess weaknesses, may be designated as special mention. The Bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by the FRB and the Missouri Division of Finance, which can order the establishment of additional loss allowances.

On the basis of management’s review of the assets of the Company, at June 30, 2026, adversely classified assets totaled $59.5 million, or 1.14% of total assets as compared to $50.3 million, or 1.00% of total assets at June 30, 2025. Of the amount adversely classified as of June 30, 2026, $53.7 million was considered substandard, and none was considered doubtful. Included in adversely classified assets at June 30, 2026, were various loans totaling $53.7 million (see Note 3 of Notes to the Consolidated Financial Statements contained in Item 8 for more information on adversely classified loans) and foreclosed real estate and repossessed assets totaling $5.8 million. Adversely classified loans are so designated due to concerns regarding the borrower’s ability to generate sufficient cash flows to service the debt. Adversely classified loans totaling $24.8 million had been placed on nonaccrual status at June 30, 2026, of which $18.5 million were more than 30 days delinquent. Of the remaining $28.9 million of adversely classified loans, $1.2 million was more than 30 days delinquent.

Other Loans of Concern. In addition to the adversely classified assets above, there were also other loans with respect to which management has concerns as to the ability of the borrowers to continue to comply with present loan terms, which may ultimately result in the adverse classification of such assets. These loans continued to perform according to contractual terms as of June 30, 2026, but were identified as having elevated risk due to concerns regarding the borrower’s ability to continue to generate sufficient cash flows to service the debt. At June 30, 2026, these other loans of concern totaled $105.7 million, as compared to $77.0 million at June 30, 2025. This increase was primarily from 41 loans, mostly secured by agriculture real estate, agriculture production, owner-occupied commercial real estate, and commercial and industrial loans, which properties were experiencing decreases in cashflow. Agricultural real estate and production lending borrowers continue to experience financial pressure from lower commodity prices and elevated input costs.

Allowance for Credit Losses. The Bank’s ACL is established through a provision for credit losses based on management’s expectation of lifetime credit losses on financial assets held at amortized cost. 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, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. These provisions for credit losses are charged against earnings in the year they are established. The Bank had an ACL at June 30, 2026, of $54.9 million, which represented 164% of nonperforming assets as compared to an allowance of $51.6 million, which represented 218% of nonperforming assets at June 30, 2025.

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At June 30, 2026, the Bank also had an ACL for off-balance sheet credit exposures of $4.4 million, as compared to $3.9 million at June 30, 2025. 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 increase was attributable primarily to an increase in unfunded commitments.

Although management believes that it uses the best information available to determine the allowance, unforeseen market conditions could result in adjustments and net earnings could be significantly affected if circumstances differ substantially from assumptions used in making the final determination. Future additions to the allowance will likely be the result of periodic loan, property and collateral reviews and thus cannot be predicted with certainty in advance. Further discussion of the methodology used in establishing the allowance is provided in Note 1 and Note 3 of the Notes to the Consolidated Financial Statements contained in Item 8, and in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates – Allowance for Credit Losses” section of Item 7 of this Form 10-K.

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The following table sets forth an analysis of the Bank’s ACL for the periods indicated. Where specific loan loss reserves have been established, any difference between the loss reserve and the amount of loss realized has been charged or credited to current income.


	Year Ended June 30,
	2026			2025

	(Dollars in thousands)
Allowance at beginning of period	$	51,629		$	52,516
Recoveries:
One- to four-family residential		1			46
Non-owner occupied commercial real estate		2,000			—
Owner occupied commercial real estate		122			—
Multi-family real estate		—			47
Construction and land development		1			—
Agriculture real estate		—			—
Commercial and industrial		69			67
Agriculture production		66			2
Consumer		389			87
All other loans		2			—
Total recoveries		2,650			249

Charge offs:
One- to four-family residential		813			89
Non-owner occupied commercial real estate		2,986			3,800
Owner occupied commercial real estate		81			122
Multi-family real estate		—			—
Construction and land development		192			1
Agriculture real estate		—			—
Commercial and industrial		2,467			1,508
Agriculture production		2,696			1,052
Consumer		1,103			411
All other loans		—			—
Total charge offs		10,338			6,983

Net charge offs		(7,688)			(6,734)
Provision for credit losses		10,971			5,847
Balance at end of period	$	54,912		$	51,629

Ratio of ACL to total loans outstanding at the end of the period		1.25	%		1.26	%
Ratio of nonaccrual loans to total loans outstanding at the end of the period		0.69	%		0.56	%
Ratio of ACL to nonaccrual loans		198.56	%		224.08	%

Average loans outstanding by loan category:
One- to four-family residential	$	1,042,989		$	962,110
Non-owner occupied commercial real estate		887,942			861,165
Owner occupied commercial real estate		453,501			429,444
Multi-family real estate		451,558			409,836
Construction and land development		297,862			322,245
Agriculture real estate		284,215			237,495
Commercial and industrial		530,912			494,663
Agriculture production		210,570			199,828
Consumer		51,062			53,694
All other loans		9,156			4,946
Total average loans outstanding by loan category	$	4,219,767		$	3,975,426

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Ratio of net charge offs to average loans outstanding by loan category:
One- to four-family residential	0.08	%	0.00	%
Non-owner occupied commercial real estate	0.11	%	0.44	%
Owner occupied commercial real estate	(0.01)	%	0.03	%
Multi-family real estate	—	%	(0.01)	%
Construction and land development	0.06	%	0.00	%
Agriculture real estate	—	%	—	%
Commercial and industrial	0.45	%	0.29	%
Agriculture production	1.25	%	0.53	%
Consumer	1.40	%	0.60	%
All other loans	(0.02)	%	—	%
Ratio of net charge offs to average loans outstanding during the period	0.18	%	0.17	%

The following table sets forth the breakdown of the ACL by loan category for the periods indicated.


		At June 30,
		2026						2025
					Percent of						Percent of
					Loans in						Loans in
					Each						Each
					Category						Category
					to Total						to Total
		Amount			Loans			Amount			Loans

		(Dollars in thousands)
One- to four-family residential		$	12,085			24.72	%	$	10,274			24.20	%
Non-owner occupied commercial real estate			10,952			21.04			12,241			21.66
Owner occupied commercial real estate			5,265			10.75			4,521			10.80
Multi-family real estate			3,095			10.70			4,329			10.31
Construction and land development			3,202			7.06			4,788			8.11
Agriculture real estate			6,388			6.74			4,194			5.97
Commercial and industrial			6,604			12.58			6,952			12.44
Agriculture production			6,275			4.99			3,374			5.03
Consumer			1,043			1.21			952			1.35
All other loans			3			0.21			4			0.13
Total allowance for credit losses		$	54,912			100.00	%	$	51,629			100.00	%

For additional information regarding our allowance for credit losses, see Note 3 “Loans and Allowance for Credit Losses” of the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K.

Investment Activities

General. Under Missouri law, the Bank is permitted to invest in various types of liquid assets, including U.S. Government and State of Missouri obligations, securities of various federal agencies, certain certificates of deposit of insured banks and savings institutions, banker’s acceptances, repurchase agreements, federal funds, commercial paper, investment grade corporate debt securities and obligations of States and their political sub-divisions. Generally, the investment policy of the Company is to invest funds among various categories of investments and repricing characteristics based upon the Bank’s need for liquidity, to provide collateral for borrowings and public unit deposits, to help reach financial performance targets and to help maintain asset/liability management objectives.

The Company’s investment portfolio is managed in accordance with the Bank’s investment policy which was adopted by the Board of Directors of the Bank and is implemented by members of the asset/liability management committee which consists of the Chairman of the Board, the President/Chief Administrative Officer, the Chief Financial Officer, the Chief Operations Officer, the Chief Lending Officer, and four outside directors.

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Investment purchases and/or sales must be authorized by the asset/liability management committee or an authorized executive officer, depending on the aggregate size of the investment transaction, prior to any investment transaction. The Board of Directors of the Bank reviews all investment transactions. All investment purchases are identified as available-for-sale ("AFS") at the time of purchase. The Company has not classified any investment securities as held-to-maturity over the last five years. Securities classified as AFS must be reported at fair value with unrealized gains and losses, net of tax, recorded as a separate component of stockholders’ equity. At June 30, 2026, AFS securities totaled $450.8 million (not including FHLB and Federal Reserve Bank membership stock, or other equity securities without readily-determinable fair values). For information regarding the amortized cost and market values of the Company’s investments, see Note 2 of Notes to the Consolidated Financial Statements contained in Item 8.

During fiscal 2025, the Company entered 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. As of June 30, 2026, the Company had executed four interest rate swaps, designated as fair value hedges, with original notional amounts totaling $60.0 million.

During fiscal 2026, 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 interest rate swap contracts with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty.

Debt and Other Securities. At June 30, 2026, the Company’s debt and other securities portfolio totaled $96.7 million, or 1.8% of total assets as compared to $101.4 million, or 2.0% of total assets at June 30, 2025. During fiscal 2026, the Bank had $11.5 million in maturities, no sales, and $14.0 million in purchases of these securities. Of the securities that matured, $10.3 million was called for early redemption. At June 30, 2026, the investment securities portfolio included $23.4 million in obligations of states and political subdivisions, and $28.1 million in corporate obligations. All of the obligations of states and political subdivisions and corporate obligations are subject to early redemption at the option of the issuer. The investment portfolio also included $42.3 million of asset-backed securities at June 30, 2026, all of which are subject to early redemption. The remaining portfolio consists of $3.0 million in other securities, primarily SBA pools. Based on projected maturities, the weighted average life of the debt and other securities portfolio at June 30, 2026, was 49 months. Membership stock held in the FHLB of Des Moines, totaling $10.9 million, and in the Federal Reserve Bank of St. Louis, totaling $9.2 million, along with equity stock of $929,000 in various correspondent (bankers’) banks, was not included in the above totals.

Mortgage-Backed Securities. At June 30, 2026, mortgage-backed securities (“MBS”) totaled $354.1 million, or 6.8%, of total assets, as compared to $359.5 million, or 7.2%, of total assets at June 30, 2025. During fiscal 2026, the Bank had maturities and prepayments of $61.8 million, no sales, and $46.3 million in purchases of MBS. At June 30, 2026, the MBS portfolio included $146.0 million in fixed-rate residential MBS issued by government-sponsored enterprises (GSEs), $98.9 million in fixed-rate commercial MBS issued by GSEs, and $109.2 million in fixed rate collateralized mortgage obligations (“CMOs”) issued by GSEs generally consisting of underlying residential property loans, all of which passed the Federal Financial Institutions Examination Council’s sensitivity test. Based on projected prepayment rates, the weighted average life of the fixed rate MBS and CMOs at June 30, 2026, was 56 months. Actual prepayment rates experienced, which often vary due to changes in market interest rates, may cause the anticipated average life of MBS portfolio to extend or shorten as compared to prepayment rates anticipated.

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Investment Securities Analysis

The following table sets forth the Company’s debt and other securities portfolio, at carrying value, at the dates indicated.


		At June 30,
		2026						2025						2024
		Fair			Percent of			Fair			Percent of			Fair			Percent of
		Value			Portfolio			Value			Portfolio			Value			Portfolio

		(Dollars in thousands)
Obligations of states and political subdivisions		$	23,384			24.18	%	$	24,263			23.94	%	$	27,753			22.56	%
Corporate obligations			28,072			29.02			30,642			30.23			31,277			25.42
Asset-backed securities			42,306			43.74			42,481			41.92			58,679			47.69
Other securities			2,955			3.06			3,964			3.91			5,333			4.33
Total		$	96,717			100.00	%	$	101,350			100.00	%	$	123,042			100.00	%

At June 30, 2026, the Company had no debt securities that were not carried at fair value.

The following table sets forth the maturities and weighted average yields of AFS debt securities in the Company’s investment securities portfolio at June 30, 2026.


	Available for Sale Securities
	June 30, 2026
	Amortized		Fair		Tax-Equiv.
	Cost		Value		Wtd.-Avg. Yield

	(Dollars in thousands)
Obligations of states and political subdivisions:
Due within 1 year	$	1,433	$	1,430	2.27	%
Due after 1 year but within 5 years		7,505		7,232	2.09
Due after 5 years but within 10 years		14,303		13,506	2.64
Due over 10 years		1,305		1,216	3.21
Total		24,546		23,384	2.48

Corporate obligations:
Due within 1 year		7,061		7,066	1.64
Due after 1 year but within 5 years		11,241		11,316	3.21
Due after 5 years but within 10 years		9,926		9,690	2.64
Due over 10 years		—		—	—
Total		28,228		28,072	2.64

Asset-backed securities:
Due within 1 year		—		—	—
Due after 1 year but within 5 years		5,420		5,504	3.74
Due after 5 years but within 10 years		—		—	—
Due over 10 years		36,591		36,802	4.00
Total		42,011		42,306	3.97

Other securities:
Due within 1 year		5		5	6.99
Due after 1 year but within 5 years		—		—	—
Due after 5 years but within 10 years		2,758		2,711	5.56
Due over 10 years		230		239	7.58
Total		2,993		2,955	5.72

Total debt and other securities	$	97,778	$	96,717	3.75	%

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The following table sets forth certain information at June 30, 2026 regarding the dollar amount of MBS and CMOs at amortized cost due, based on their contractual terms to maturity, but does not include scheduled payments or potential prepayments. MBS and CMOs that have adjustable rates are shown at amortized cost as maturing at their next repricing date.


	At June 30, 2026
	(Dollars in thousands)
Amounts due:
Within 1 year	$	3,847
After 1 year through 3 years		19,503
After 3 years through 5 years		25,014
After 5 years		317,126
Total	$	365,490

The following table sets forth the dollar amount of all MBS and CMOs at amortized cost due, based on their contractual terms to maturity, one year after June 30, 2026, which have fixed, floating, or adjustable interest rates.


		At June 30, 2026
		(Dollars in thousands)
Interest rate terms on amounts due after 1 year:
Fixed		$	201,078
Adjustable			164,412
Total		$	365,490

The following table sets forth certain information with respect to each MBS and CMO security at the dates indicated.


	At June 30,
	2026				2025				2024
	Amortized		Fair		Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value		Cost		Value

		(Dollars in thousands)
Residential MBS issued by GSEs	$	148,840	$	146,007	$	138,377	$	134,995	$	110,918	$	104,755
Commercial MBS issued by GSEs		103,148		98,886		96,377		92,002		65,195		59,746
CMOs issued by GSEs		113,502		109,165		137,346		132,497		148,382		140,360
Total	$	365,490	$	354,058	$	372,100	$	359,494	$	324,495	$	304,861

Deposit Activities and Other Sources of Funds

General. The Company’s primary sources of funds are deposits, borrowings, payments of principal and interest on loans, MBS and CMOs, interest and principal received on investment securities and other short-term investments, and funds provided from operating results. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are significantly influenced by general market interest rates and overall economic conditions.

Borrowings, including FHLB advances, have been used at times to provide additional liquidity. Borrowings are used on an overnight or short-term basis to compensate for periodic fluctuations in cash flows, and are used on a longer term basis to fund loan growth and to help manage the Company’s sensitivity to fluctuating interest rates.

Deposits. The Bank’s depositors are generally residents and entities located in the States of Missouri, Arkansas, Illinois, or Kansas. Deposits are attracted from within the Bank’s market area through the offering of a broad selection of deposit instruments, including interest-bearing and noninterest-bearing transaction accounts, money market deposit accounts, saving accounts, certificates of deposit and retirement savings plans. At times, the Company will utilize brokered deposits in lieu of borrowings, subject to market pricing and availability. For larger depositors, such as public units, the Company often utilizes a reciprocal deposit program to provide additional FDIC coverage to our customer

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through other financial institutions while conveniently allowing management of the deposit relationship through our institution. Deposit account terms vary according to the minimum balance required, the time periods the funds may remain on deposit and the interest rate, among other factors. In determining the terms of its deposit accounts, the Bank considers current market interest rates, profitability to the Bank, managing interest rate sensitivity and its customer preferences and concerns. The Bank’s Asset/Liability Committee regularly reviews its deposit mix and pricing.

The Bank will periodically promote a particular deposit product as part of its overall marketing plan. Deposit products have been promoted through various mediums, which include digital and social media, television, radio and newspaper advertisements, as well as “grassroots” marketing techniques, such as sponsorship of – or activity at – community events. The emphasis of these campaigns is to increase consumer awareness and market share of the Bank.

The flow of deposits is influenced significantly by general economic conditions, changes in prevailing interest rates, and competition. Based on its experience, the Bank believes that its deposits are relatively stable sources of funds. However, the ability of the Bank to attract and maintain money market deposit accounts, savings accounts, and certificates of deposit, and the rates paid on these deposits, has been and will continue to be significantly affected by market conditions. The following table depicts the composition of the Bank’s deposits as of June 30, 2026:


As of June 30, 2026
Weighted
Average												Percentage
Interest						Minimum						of Total
Rate		Term		Category		Amount			Balance			Deposits
									(Dollars in thousands)
0.00	%	None		Non-interest Bearing		$	100		$	560,704		12.72	%
1.76		None		NOW Accounts			100			1,074,489		24.38
2.33		None		Savings Accounts			100			707,482		16.05
2.59		None		Money Market Deposit Accounts			1,000			325,004		7.37

				Certificates of Deposit
3.82		6 months or less		Fixed Rate/Term			1,000			345,815		7.85
3.51		6 months or less		IRA Fixed Rate/Term			1,000			11,208		0.25
3.76		7-12 months		Fixed Rate/Term			1,000			751,837		17.06
3.56		7-12 months		IRA Fixed Rate/Term			1,000			47,338		1.07
4.00		13-24 months		Fixed Rate/Term			1,000			394,344		8.95
3.88		13-24 months		IRA Fixed Rate/Term			1,000			42,814		0.97
3.49		13-24 months		Variable Rate/Term			1,000			1,794		0.04
2.77		13-24 months		IRA Variable Rate/Term			1,000			2,713		0.06
4.05		25-36 months		Fixed Rate/Term			1,000			57,782		1.31
3.38		25-36 months		IRA Fixed Rate/Term			1,000			3,742		0.08
3.49		48 months and more		Fixed Rate/Term			1,000			70,840		1.61
2.95		48 months and more		IRA Fixed Rate/Term			1,000			9,940		0.23
									$	4,407,846		100.00	%

As of June 30, 2026 and 2025, an estimated $835.1 million and $834.9 million respectively, of our deposit portfolio was uninsured. At June 30, 2026, $254.9 million of the uninsured amount was collateralized and at June 30, 2025, $294.3 million of the uninsured amount was collateralized. The uninsured amounts are estimates based on the methodologies and assumptions used for Southern Bank’s regulatory reporting requirements.

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The following table sets forth the portion of our time deposits that are in denominations in excess of $250,000, by remaining time until maturity, as of June 30, 2026.


Maturity Period		Amount
		(Dollars in thousands)
Three months or less		$	175,296
Over three through six months			142,645
Over six through twelve months			195,414
Over 12 months			172,207
Total		$	685,562

For additional information regarding our deposits, see Note 5, “Deposits” of the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K.

Time Deposits by Rates

The following table sets forth the time deposits in the Bank classified by rates at the dates indicated.


		At June 30,
		2026			2025			2024

		(Dollars in thousands)
0.00 - 0.99%		$	1,932		$	6,211		$	17,862
1.00 - 1.99%			7,915			14,021			33,395
2.00 - 2.99%			36,413			8,314			46,195
3.00 - 3.99%			1,186,394			240,321			149,095
4.00 - 4.99%			507,413			1,347,081			671,562
5.00 - 5.99%			100			32,646			412,418
6.00% and above			—			—			4,879

Total		$	1,740,167		$	1,648,594		$	1,335,406

The following table sets forth the amount and maturities of all time deposits at June 30, 2026.


		Amount Due
																				Percent
		Less																		of Total
		Than One			1-2			2-3			3-4			After						Certificate
		Year			Years			Years			Years			4 Years			Total			Accounts

		(Dollars in thousands)
0.00 – 0.99%		$	1,832		$	100		$	—		$	—		$	—		$	1,932		0.11	%
1.00 – 1.99%			6,737			1,007			85			86			—			7,915		0.45
2.00 - 2.99%			33,912			2,501			—			—			—			36,413		2.09
3.00 - 3.99%			1,023,378			112,857			15,027			16,910			18,222			1,186,394		68.18
4.00 - 4.99%			376,725			68,852			46,725			9,944			5,167			507,413		29.16
5.00 - 5.99%			100			—			—			—			—			100		0.01
6.00% and above			—			—			—			—			—			—		—

Total		$	1,442,684		$	185,317		$	61,837		$	26,940		$	23,389		$	1,740,167		100.00	%

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Deposit Flow

The following table sets forth the balance of deposits in the various types of accounts offered by the Bank at the dates indicated.


		At June 30,
		2026								2025								2024
					Percent of		Increase						Percent of		Increase						Percent of		Increase
		Amount			Total		(Decrease)			Amount			Total		(Decrease)			Amount			Total		(Decrease)

		(Dollars in thousands)
Noninterest bearing		$	560,704		12.72	%	$	52,594		$	508,110		11.87	%	$	(5,997)		$	514,107		13.01	%	$	(83,493)
NOW checking			1,074,489		24.38			(57,809)			1,132,298		26.45			(107,365)			1,239,663		31.36			(88,760)
Savings accounts			707,482		16.05			46,367			661,115		15.44			144,031			517,084		13.08			234,331
Money market deposit			325,004		7.37			(6,247)			331,251		7.74			(5,548)			336,799		8.52			(115,929)
Fixed-rate certificates which mature⁽¹⁾:
Within one year			1,442,684		32.73			218,212			1,224,472		28.60			141,901			1,082,571		27.39			392,071
Within three years			233,161		5.29			(126,087)			359,248		8.39			209,639			149,609		4.02			(128,305)
After three years			50,329		1.14			(552)			50,881		1.19			(45,135)			96,016		2.43			394
Variable-rate certificates which mature:
Within one year			—		—			—			—		—			—			—		—
Within three years			13,993		0.32			—			13,993		0.33			6,783			7,210		0.18			7,210
Total		$	4,407,846		100.00	%	$	126,478		$	4,281,368		100.00	%	$	338,309		$	3,943,059		100.00	%	$	217,519

(1)	At June 30, 2026, 2025, and 2024, certificates in excess of $100,000 totaled $1.2 billion, $1.2 billion, and $887.9 million, respectively.

The following table sets forth the deposit activities of the Bank for the periods indicated.


		At June 30,
		2026			2025			2024

		(Dollars in thousands)
Beginning Balance		$	4,281,368		$	3,943,059		$	3,725,540

Net increase before interest credited			17,269			222,536			115,813
Interest credited			109,209			115,773			101,706
Net increase in deposits			126,478			338,309			217,519

Ending balance		$	4,407,846		$	4,281,368		$	3,943,059

In the unlikely event the Bank is liquidated, depositors will be entitled to payment of their deposit accounts prior to any payment being made to the Company as the sole stockholder of the Bank.

Borrowings. As a member of the FHLB of Des Moines, the Bank has the ability to apply for FHLB advances. These advances are available under various credit programs, each of which has its own maturity, interest rate and repricing characteristics. Additionally, FHLB advances have prepayment penalties as well as limitations on size or term. In order to utilize FHLB advances, the Bank must be a member of the FHLB system, have sufficient collateral to secure the requested advance and own stock in the FHLB equal to 4.00% of the amount borrowed and 0.10% for letters of credit. See "REGULATION – The Bank – Federal Home Loan Bank System."

Although deposits are the Bank’s primary and preferred source of funds, the Bank has actively used FHLB advances as a source of funds as well. The Bank’s general policy has been to utilize borrowings to meet short-term liquidity needs, or to provide a longer-term source of funding loan growth when other cheaper funding sources are unavailable or to aide in asset/liability management. As of June 30, 2026, the Bank had $130.4 million in outstanding FHLB advances, including $102.0 million in fixed-rate long term advances, and $28.4 million in daily reset borrowings. In order for the Bank to borrow from the FHLB, it has reported $1.6 billion of its residential, multi-family, and commercial real estate loans to the FHLB as eligible collateral for available credit of approximately $1.0 billion, and has purchased $10.9 million in membership stock in the FHLB of Des Moines. Of the available credit, in addition to the

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amount advanced, $656,000 is encumbered in relation to residential real estate loans sold onto the secondary market through the FHLB, while there were no letters of credit issued to secure public unit deposits. At June 30, 2026, the Bank had additional borrowing capacity on its reported residential and commercial real estate loans pledged to the FHLB of approximately $918.4 million, as compared to $752.6 million at June 30, 2025.

Additionally, the Bank is approved to borrow from the Federal Reserve Bank’s discount window on a primary credit basis. Primary credit is available to approved institutions on a generally short-term basis at the “discount rate” set by the FOMC. The Bank has pledged agricultural real estate and other loans to farmers as collateral for any amounts borrowed through the discount window. As of June 30, 2026, the Bank was approved to borrow up to $355.4 million through the discount window, but no balance was outstanding.

Southern Missouri Statutory Trust I, a Delaware business trust subsidiary of the Company, issued $7.0 million in Floating Rate Capital Securities (the "Trust Preferred Securities") with a liquidation value of $1,000 per share in March, 2004. The securities are due in 30 years, were redeemable after five years and bear interest at a floating rate based on SOFR. At June 30, 2026, the current rate was 6.68%. The securities represent undivided beneficial interests in the trust, which was established by Southern Missouri Bancorp 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 of the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of Southern Missouri Bancorp. Southern Missouri Bancorp is using the net proceeds for working capital and investment in its subsidiaries. Trust Preferred Securities currently qualify as Tier I Capital for regulatory purposes. See "Regulation" for further discussion on the treatment of the trust-preferred securities.

In its October 2013 acquisition of Ozarks Legacy, the Company assumed $3.1 million in floating rate junior subordinated debt securities. The securities had been issued in June 2005 by Ozarks Legacy 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 June 30, 2026, the carrying value was $2.8 million, and bore interest at a current coupon rate of 6.38% and an effective rate of 7.97%.

In the Peoples Acquisition, the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PBC 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 June 30, 2026, the carrying value was $5.7 million and bore interest at a current coupon rate of 5.73% and an effective rate of 7.91%.

In the February 2022 acquisition of Fortune Financial Corporation (Fortune), 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, bore interest through May 2026 at a fixed rate of 4.5% and were to bear interest thereafter at SOFR plus 3.77%. The Company retired this debt in May, 2026 when the notes became redeemable.

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The following table sets forth certain information regarding short-term borrowings by the Bank at the end of the periods indicated:


		Year Ended June 30,
		2026			2025			2024

		(Dollars in thousands)
Year end balances
Short-term FHLB advances		$	28,400		$	—		$	—
Securities sold under agreements to repurchase			20,000			15,000			9,398
		$	48,400		$	15,000		$	9,398

Weighted average rate at year end			4.01	%		5.35	%		4.80	%

The following table presents the maturity of term borrowings, along with associated weighted average rates as of June 30, 2026.


		June 30, 2026	Wtd-Avg
FHLB Advance Maturities by Fiscal Year	(dollars in thousands)		Rate
2027	$	65,424	3.99	%
2028		45,000	4.08
2029		20,000	4.12
2030		—	—
2031		—	—
Thereafter		—	—
Total	$	130,424	4.04	%

The following table sets forth certain information as to the Bank’s borrowings for the periods indicated:


		Year Ended June 30,
		2026			2025			2024

		(Dollars in thousands)
FHLB advances
Daily average balance		$	112,026		$	110,254		$	123,986
Weighted average interest rate			4.16	%		4.16	%		4.03	%
Maximum outstanding at any month end		$	168,327		$	134,352		$	247,286

Subordinated Debt
Daily average balance		$	22,298		$	23,182		$	23,130
Weighted average interest rate			6.53	%		7.02	%		7.53	%
Maximum outstanding at month end		$	23,253		$	23,208		$	23,156

Other Services

The Bank offers fiduciary and investment management services through its Southern Wealth Management division. The division has traditionally offered investment management services, and in fiscal 2023, as part of the Citizens merger, added fiduciary services including trust management and employee benefits. Assets under management were $818.7 million at June 30, 2026, as compared to $645.8 million at June 30, 2025. The Bank offers commercial and consumer insurance products through Southern Insurance Services, LLC, an independent insurance agency. Commission revenue was $1.4 million for fiscal 2026, compared to $1.3 million for fiscal 2025.

Subsidiary Activities

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

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a limited partnership formed for the purpose of generating low income housing tax credits. The initial investment in this subsidiary was $1.5 million, and at June 30, 2026, the carrying value of the investment was $24,000. SB Real Estate Investments, LLC is a wholly owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a REIT which is majority-owned by the investment subsidiary, but has other preferred shareholders in order to meet the requirements to be a REIT. At June 30, 2026, SB Real Estate Investments, LLC held assets of approximately $1.7 billion. Southern Bank Real Estate Investments, LLC held assets of approximately $1.5 billion. Southern Insurance Services, LLC is an entity acquired in the Gideon acquisition, and is engaged in the brokerage of commercial and consumer insurance products. Assets held by this subsidiary are immaterial. Fortune Investment Group, LLC is an entity acquired in the Fortune acquisition that was engaged in the brokerage of wealth management products, with no assets or liabilities at June 30, 2026, and is currently inactive. Fortune Insurance Group, LLC is an entity acquired in the Fortune acquisition that was engaged in the sale of commercial and consumer insurance products, and is currently inactive. Fortune SBA, LLC is an entity acquired in the Fortune acquisition, and was engaged in the origination of SBA guaranteed loans, sale of the guaranteed portion of the loan, and servicing of loans. At June 30, 2026, Fortune SBA, LLC held no assets or liabilities and is currently inactive. SMS Financial Services, Inc. is a wholly owned subsidiary of the Bank, which had no assets or liabilities at June 30, 2026, and is currently inactive.

Employees and Human Capital Resources

As of June 30, 2026, the Company had 711 full-time employees and 28 part-time employees for a total of 739 employees (collectively, our “Team Members”). The Company believes that our Team Members play the most important role in the success of a service company like the Bank, and that the Company’s relationship with its Team Members is good. None of the Company’s Team Members are represented by a collective bargaining unit.

Our human capital objectives include attracting, developing, and retaining the best available talent from a diverse pool of candidates for our team. To do so, we maintain competitive pay and benefits, regularly updating our compensation structure and periodically working with outside consultants to review our compensation and benefit programs. Additionally, the Company’s training committee identifies opportunities and paths for development of our staff, and our Company seeks to, whenever possible, fill positions by promotion from within. Among our senior leadership and leadership teams, 38% of these leaders have been promoted to their position from within. Training opportunities include Team Member-directed pursuits, internally developed training programs, professional development conferences and seminars, as well as other programs or studies that are appropriate for Team Members based on their current position and career path.

We recognize the importance of our Team Members’ financial health, and offer benefits such as a 401(K) retirement savings plan and make both matching and profit-sharing contributions to that plan, which also includes the Company’s stock as an investment option. Our health benefit options include PPO and HSA-eligible coverage at affordable cost to participants.

Our talent acquisition practices are designed to attract top talent and foster an inclusive and respectful workplace. We recruit, hire, and promote employees based on their individual ability and experience and in accordance with laws and regulations. Our policy is that we do not discriminate on the basis of race, color, religion, sex, gender, sexual orientation, ancestry, pregnancy, medical condition, age, marital status, national origin, citizenship status, disability, veteran status, gender identity, genetic information, or any other status protected by law. We believe that a sense of belonging is essential for providing a work environment where everyone can perform their very best. We are committed to fostering an environment that encourages diverse viewpoints, backgrounds and experiences.

We are committed to serving the communities where our Team Members live, work and play, believing that by strengthening our communities and demonstrating our commitment to them, we build relationships with existing and potential customers and with the larger community. We support our communities through a variety of sponsorships and financial contributions to non-profit agencies across our footprint. We also make Team Member involvement in our communities a priority, encourage Team Members to spend time supporting local organizations, and specifically budget funds each year to support local programs. We are proud of the efforts Team Members make to invest their time in their communities, and we appreciate the impact of that investment on the health of our communities and our organization.

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GOVERNMENT SUPERVISION AND REGULATION

The following is a brief description of certain laws and regulations applicable to the supervision and regulation of the Company and the Bank. Descriptions of laws and regulations here and elsewhere in this report do not purport to be complete and are qualified in their entirety by reference to the actual laws and regulations. Legislation is introduced from time to time in the United States Congress or the Missouri state legislature that may affect the operations of the Company and the Bank. In addition, the regulations governing us may be amended from time to time. Any such legislation or regulatory changes in the future could adversely affect our operations and financial condition.

The Bank

General. As a state-chartered, federally insured trust company with banking powers, the Bank is subject to extensive regulation. Lending activities and other investments must comply with various statutory and regulatory requirements, including prescribed minimum capital standards. The Bank is regularly examined by the FRB and the Missouri Division of Finance and files periodic reports concerning the Bank’s activities and financial condition with its regulators. The Bank’s relationship with depositors and borrowers also is regulated to a great extent by both federal law and the laws of Missouri, especially in such matters as the ownership of deposit accounts and the form and content of mortgage documents.

Federal and state banking laws and regulations govern all areas of the operation of the Bank, including reserves, loans, mortgages, capital, trust services issuance of securities, payment of dividends, and establishment of branches. Federal and state bank regulatory agencies also have the general authority to limit the dividends paid by insured banks and bank holding companies if such payments should be deemed to constitute an unsafe and unsound practice, and in other circumstances. The FRB, as the primary federal regulator of the Company and the Bank, has authority to impose penalties, initiate civil and administrative actions and take other steps intended to prevent banks from engaging in unsafe or unsound practices.

State Regulation and Supervision. As a state-chartered trust company with banking powers, the Bank is subject to applicable provisions of Missouri law and the regulations of the Missouri Division of Finance. Missouri law and regulations govern the Bank’s ability to take deposits and pay interest thereon, to make loans on or invest in residential and other real estate, to make consumer loans, to invest in securities, to offer various banking services to its customers, and to establish branch offices.

Federal Reserve System. Depository institutions like the Bank are subject to reserve requirements established by the FRB. These reserves may be in the form of cash or deposits with the institution’s regional Federal Reserve Bank. In March, 2020, the FRB reduced the reserve requirement ratio to 0% for all account types, eliminating reserve requirements for all depository institutions, to support lending to households and businesses. At June 30, 2026, the reserve requirement continued to be 0%.

The Bank is authorized to borrow from the Federal Reserve Bank "discount window." The purpose of the discount window is to provide an additional backstop funding option for eligible depository institutions seeking to supplement their funding sources, particularly to meet unexpected short-term funding needs. Depository institutions like the Bank would typically utilize FHLB borrowings before borrowing from the Federal Reserve Bank’s discount window.

Federal Home Loan Bank System. The Bank is a member of the FHLB of Des Moines, which is one of 11 regional FHLBs that provide home financing credit. Each FHLB serves as a reserve or central bank for its members within its assigned region. It is funded primarily from proceeds derived from the sale of consolidated obligations of the FHLB System and makes loans or advances to members in accordance with policies and procedures established by the Board of Directors of the FHLB of Des Moines, which are subject to the oversight of the Federal Housing Finance Agency. All advances from the FHLB are required to be fully secured by sufficient collateral as determined by the FHLB. In addition, all long-term advances are required to provide funds for residential home financing. See Business - Deposit Activities and Other Sources of Funds - Borrowings.

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As a member, the Bank is required to purchase and maintain stock in the FHLB of Des Moines. At June 30, 2026, the Bank had $10.9 million in FHLB stock, which was in compliance with this requirement. The Bank received $841,000 and $795,000 in dividends from the FHLB of Des Moines for the years ended June 30, 2026 and 2025, respectively.

Federal Deposit Insurance Corporation. The Bank’s deposits are insured up to applicable limits by the Deposit Insurance Fund (“DIF”) of the FDIC. The general insurance limit is $250,000 per account relationship. As insurer, the FDIC imposes deposit insurance premiums and is authorized to conduct examinations of and to require reporting by FDIC-insured institutions. It also may prohibit any FDIC-insured institution from engaging in any activity the FDIC determines by regulation or order to pose a serious risk to the DIF. The FDIC also has the authority to initiate enforcement actions against a member bank of the FRB after giving the FRB an opportunity to take such action. In accordance with the Dodd-Frank Act, the FDIC has issued regulations setting insurance premium assessments based on an institution’s total assets minus its Tier 1 capital instead of its deposits. The Bank’s FDIC premiums are based on its supervisory ratings and certain financial ratios.

The FDIC has authority to increase insurance assessments and any significant increases would have an adverse effect on the operating expenses and results of operations of the Bank. We cannot predict what assessment rates will be in the future.

Insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. Management of the Bank is not aware of any practice, condition or violation that might lead to termination of the Bank’s deposit insurance.

Standards for Safety and Soundness. The federal banking regulatory agencies have prescribed, by regulation, standards for all insured depository institutions relating to: (i) internal controls, information systems and internal audit systems; (ii) loan documentation; (iii) credit underwriting; (iv) interest rate risk exposure; (v) asset growth; (vi) asset quality; (vii) earnings; and (viii) compensation, fees and benefits ("Guidelines"). The Guidelines set forth the safety and soundness standards that the federal banking agencies use to identify and address problems at insured depository institutions before capital becomes impaired. If the FRB determines that the Bank fails to meet any standard prescribed by the Guidelines, the agency may require the Bank to submit to the agency an acceptable plan to achieve compliance with the standard.

Guidance on Subprime Mortgage Lending. The federal banking agencies have issued guidance on subprime mortgage lending to address issues related to certain mortgage products marketed to subprime borrowers, particularly adjustable rate mortgage products that can involve "payment shock" and other risky characteristics. Although the guidance focuses on subprime borrowers, the banking agencies note that institutions should look to the principles contained in the guidance when offering such adjustable rate mortgages to non-subprime borrowers. The guidance prohibits predatory lending programs; provides that institutions should underwrite a mortgage loan on the borrower’s ability to repay the debt by its final maturity at the fully-indexed rate, assuming a fully amortizing repayment schedule; encourages reasonable workout arrangements with borrowers who are in default; mandates clear and balanced advertisements and other communications; encourages arrangements for the escrowing of real estate taxes and insurance; and states that institutions should develop strong control and monitoring systems.

The federal banking agencies have announced their intention to carefully review the risk management and consumer compliance processes, policies and procedures of their supervised financial institutions and their intention to take action against institutions that engage in predatory lending practices, violate consumer protection laws or fair lending laws, engage in unfair or deceptive acts or practices, or otherwise engage in unsafe or unsound lending practices.

Guidance on Commercial Real Estate Concentrations. The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending. The particular focus is on exposure to commercial real estate loans that are dependent on the cash flow from the real estate held as collateral and that are likely to be sensitive to conditions in the commercial real estate market (as opposed to real estate collateral held as a secondary source of repayment or as an abundance of caution). The purpose of the guidance is not to limit a bank’s

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commercial real estate lending but to guide banks in developing risk management practices and maintaining capital levels commensurate with the level and nature of real estate concentrations. A bank that has experienced rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk: total loans for construction, land development, and other land represent 100% or more of the bank’s total capital; or total commercial real estate loans (as defined in the guidance) greater than 300% of the Bank’s total capital and an increase in the bank’s commercial real estate portfolio of 50% or more during the prior 36 months. See also, “Risk Factors- We currently exceed thresholds defined in interagency guidance on commercial real estate concentrations, and as such, we may incur additional expense or slow the growth of certain categories of commercial real estate lending.”

Regulatory Capital Requirements. The Bank is required to maintain specified levels of regulatory capital under federal banking regulations. The capital adequacy requirements are quantitative measures established by regulation that require the Bank to maintain minimum amounts and ratios of capital to risk-weighted assets and, in the case of the leverage ratio, to average assets. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by bank regulators that, if undertaken, could have a direct material effect on the Company’s financial statements.

Under applicable capital regulations, the minimum capital ratios to be considered adequately capitalized are: (1) a Common Equity Tier 1 (“CET1”) capital ratio of 4.5% of risk-weighted assets; (2) a Tier 1 capital ratio of 6.0% of risk-weighted assets; (3) a total capital ratio of 8.0% of risk-weighted assets; and (4) a leverage ratio (the ratio of Tier 1 capital to average total adjusted assets) of 4.0%. In addition to the minimum CET1, Tier 1 and total capital ratios, the capital regulations require a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based in order to avoid limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions. At June 30, 2026, the Bank reported risk-based capital ratios meeting the capital conservation buffer.

CET1 generally consists of common stock; retained earnings; accumulated other comprehensive income (“AOCI”) except in the case of banking organizations that have elected to exclude AOCI from regulatory capital, as discussed below; and certain minority interests; all subject to applicable regulatory adjustments and deductions. Regulatory capital is also subject to adjustments and deductions relating to certain items, including deferred tax assets, mortgage servicing assets and other specified assets, depending upon applicable regulatory thresholds.

In addition to the capital requirements, the Bank is subject to the prompt corrective action (PCA) standards of the FRB, in order to be considered well-capitalized, the Bank must have a ratio of CET1 capital to risk-weighted assets of at least 6.5%, a ratio of Tier 1 capital to risk-weighted assets of at least 8%, a ratio of total capital to risk-weighted assets of at least 10%, and a leverage ratio of at least 5%; and in order to be considered adequately capitalized, it must have the minimum capital ratios described above. At June 30, 2026, the Bank was categorized as “well capitalized” under these prompt corrective action standards. Although only the Bank is subject to the PCA guidelines, the Company is subject to, and exceeds, the following minimum regulatory capital requirements: a common equity tier 1 capital ratio of 4.5 percent, a tier 1 capital ratio of 6 percent, a total capital ratio of 8 percent of risk-weighted assets, and a leverage ratio of 4 percent. For additional information regarding regulatory capital, see Note 12 of Notes to the Consolidated Financial Statements contained in Item 8.

Activities and Investments of Insured State-Chartered Banks. Subject to certain regulatory exceptions, the FDIA and FDIC regulations provide that an insured state-chartered bank may not, directly, or indirectly through a subsidiary, engage as "principal" in any activity that is not permissible for a national bank unless the FDIC has determined that such activities would pose no risk to the Deposit Insurance Fund and that the bank is in compliance with applicable regulatory capital requirements.

Under regulations dealing with equity investments, an insured state bank generally may not directly or indirectly acquire or retain any equity investment of a type, or in an amount, that is not permissible for a national bank. An insured state bank is not prohibited from, among other things, (i) acquiring or retaining a majority interest in a

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subsidiary, (ii) investing as a limited partner in a partnership the sole purpose of which is direct or indirect investment in the acquisition, rehabilitation or new construction of a qualified housing project, provided that such limited partnership investments may not exceed 2% of the bank’s total assets, (iii) acquiring up to 10% of the voting stock of a company that solely provides or reinsures directors’, trustees’ and officers’ liability insurance coverage or bankers’ blanket bond group insurance coverage for insured depository institutions, and (iv) acquiring or retaining the voting shares of a depository institution if certain requirements are met.

Affiliate Transactions. The Company and the Bank are separate and distinct legal entities. Various legal limitations restrict the Bank from lending to or otherwise engaging in transactions with the Company (or any other affiliate), generally limiting such transactions with an affiliate to 10% of the Bank’s capital and surplus and limiting all such transactions with all affiliates to 20% of the Bank’s capital and surplus. Such transactions, including extensions of credit, sales of securities or assets and provision of services, also must be on terms and conditions consistent with safe and sound banking practices, including credit standards, that are substantially the same or at least as favorable to the Bank as those prevailing at the time for transactions with unaffiliated companies.

Federally insured banks are subject, with certain exceptions, to certain additional restrictions (including collateralization) on extensions of credit to their parent holding companies or other affiliates, on investments in the stock or other securities of affiliates and on the taking of such stock or securities as collateral from any borrower. In addition, such banks are prohibited from engaging in certain tying arrangements in connection with any extension of credit or the providing of any property or service.

Community Reinvestment Act. Banks are also subject to the provisions of the Community Reinvestment Act of 1977 ("CRA"), which requires the appropriate federal bank regulatory agency, in connection with its regular examination of a bank, to assess the bank’s record in meeting the credit needs of the community serviced by the bank, including low and moderate income neighborhoods. The regulatory agency’s assessment of the bank’s record is made available to the public. Further, such assessment is required of any bank which has applied, among other things, to establish a new branch office that will accept deposits, relocate an existing office or merge or consolidate with, or acquire the assets or assume the liabilities of, a financial institution. The Bank received a “satisfactory” rating during its most recent CRA examination.

In 2024, the federal banking regulators adopted a final rule that was intended to modernize the CRA. The final rule was subsequently challenged in litigation, and its implementation was enjoined. In July 2025, in consideration of the court’s injunction, the federal banking regulators proposed a rule that would rescind the final rule and replace it with the 1995 CRA regulations with some conforming changes.

In July 2026, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation proposed additional amendments to the CRA regulations that would, among other things, modify the standards applicable to certain banks and change certain CRA evaluation and reporting requirements. The Federal Reserve did not join that proposal. As a state-chartered Federal Reserve member bank, the Bank remains subject to the CRA regulations administered by the Federal Reserve. The Company cannot predict whether the proposed changes will be adopted, whether additional CRA rulemaking will be undertaken, or what effect any future changes to the CRA regulatory framework may have on the Bank.

Dividends. Dividends from the Bank constitute the major source of funds that may be paid by the Company. The amount of dividends payable by the Bank to the Company depends upon the Bank’s earnings and capital position, and is limited by federal and state laws, regulations and policies.

The amount of dividends actually paid by the Bank during any one period will be strongly affected by the Bank’s management policy of maintaining a strong capital position. Dividends can be restricted if the capital conservation buffer is not maintained as described under “Capital Rules” above.

A bank holding company is required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the

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company’s consolidated net worth. The FRB may disapprove such a purchase or redemption if it determines that the proposal would constitute an unsafe or unsound practice or would violate any law, regulation, FRB order, or any condition imposed by, or written agreement with, the FRB. This notification requirement does not apply to any company that meets the well-capitalized standard for bank holding companies, is well-managed, and is not subject to any unresolved supervisory issues.

Under Missouri law, the Bank may pay dividends from certain undivided profits and may not pay dividends if its capital is impaired.

Bank Secrecy Act / Anti-Money Laundering Laws. The Bank is subject to the Bank Secrecy Act, as amended, and other federal anti-money laundering and countering the financing of terrorism laws and regulations, including provisions of the USA PATRIOT Act of 2001. These laws and regulations require the Bank to implement policies, procedures, and controls to detect, prevent, and report money laundering and terrorist financing and to verify the identity of their customers. Violations of these requirements can result in substantial civil and criminal sanctions. In addition, provisions of the USA PATRIOT Act require the federal financial institution regulatory agencies to consider the effectiveness of a financial institution's anti-money laundering activities when reviewing mergers and acquisitions.

Privacy Standards and Cybersecurity. The Bank is subject to federal regulations implementing the privacy protection provisions of the Gramm-Leach-Bliley Financial Services Modernization Act of 1999. These regulations require the Bank to disclose its privacy policy, including informing consumers of their information sharing practices and informing consumers of their rights to opt out of certain practices. In addition, on November 18, 2021, the federal banking agencies announced the adoption of a final rule providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents. Specifically, the new rule requires a banking organization to notify its primary federal regulator as soon as possible, and no later than 36 hours after, the banking organization determines that a “computer-security incident” rising to the level of a “notification incident” has occurred. Notification is required for incidents that have materially affected or are reasonably likely to materially affect the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector. Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization’s customers for four or more hours.

Further, on July 26, 2023, the SEC adopted final rules that require public companies to promptly disclose material cybersecurity incidents on Form 8-K and detailed information regarding their cybersecurity risk management and governance on an annual basis on Form 10-K. Companies will be required to report on Form 8-K any cybersecurity incident they determine to be material within four business days of making that determination. In addition to incident reporting, the new rules will also require companies to describe their cybersecurity processes and governance.

The Company

Federal Securities Law. The stock of the Company is registered with the SEC under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As such, the Company is subject to the information, proxy solicitation, insider trading restrictions and other requirements of the SEC under the Exchange Act.

The Company’s stock held by persons who are affiliates (generally officers, directors and principal stockholders) of the Company may not be resold without registration or unless sold in accordance with certain resale restrictions. If the Company meets specified current public information requirements, each affiliate of the Company is able to sell in the public market, without registration, a limited number of shares in any three-month period.

Bank Holding Company Regulation. Bank holding companies are subject to comprehensive regulation by the FRB under the Bank Holding Company Act (“BHCA”). As a bank holding company, the Company is required to file reports with the FRB and such additional information as the FRB may require, and the Company and its non-banking affiliates are subject to examination by the FRB. Under FRB policy, a bank holding company must serve as a source of financial strength for its subsidiary banks. Under this policy the FRB may require, and has required in the past, a holding company to contribute additional capital to an undercapitalized subsidiary bank. Under the Dodd-Frank Act, this policy

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is codified and rules to implement it are to be established. Under the BHCA, a bank holding company must obtain FRB approval before: (i) acquiring, directly or indirectly, ownership or control of any voting shares of another bank or bank holding company if, after such acquisition, it would own or control more than 5% of such shares (unless it already owns or controls the majority of such shares); (ii) acquiring all or substantially all of the assets of another bank or bank holding company; or (iii) merging or consolidating with another bank holding company.

The Company is subject to the activity limitations imposed on bank holding companies that are not financial holding companies. The BHCA prohibits a bank holding company, with certain exceptions, from acquiring direct or indirect ownership or control of more than 5% of the voting shares of any company which is not a bank or bank holding company, or from engaging directly or indirectly in activities other than those of banking, managing or controlling banks, or providing services for its subsidiaries. The principal exceptions to these prohibitions involve certain activities which are permitted, by statute or by FRB regulation or order, have been identified as activities closely related to the business of banking or managing or controlling banks. The list of activities permitted by the FRB includes, among other things, operating a savings institution, mortgage company, finance company, credit card company or factoring company; performing certain data processing operations; providing certain investment and financial advice; underwriting and acting as an insurance agent for certain types of credit-related insurance; leasing property on a full-payout, non-operating basis; selling money orders, travelers’ checks and United States Savings Bonds; real estate and personal property appraising; providing tax planning and preparation services; and, subject to certain limitations, providing securities brokerage services for customers.

TAXATION

Federal Taxation

General. The Company and the Bank report their income on a fiscal year basis using the accrual method of accounting and are subject to federal income taxation in the same manner as other corporations with some exceptions, including particularly the Bank’s reserve for bad debts discussed below. The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to the Bank or the Company.

Bad Debt Reserve. The Bank’s average assets for the current year exceeded $500 million, thus classifying it as a large bank for purposes of IRC Section 585. Under IRC Section 585(c)(3), a bank that becomes a large bank must change its method of accounting from the reserve method to a specific charge-off method under IRC Section 166. The Bank is required to follow the specific charge-off method which only allows a bad debt deduction equal to actual charge-offs, net of recoveries, experienced during the fiscal year of the deduction. In a year where recoveries exceed charge-offs, the Bank would be required to include the net recoveries in taxable income.

Dividends-Received Deduction. The Company may exclude from its income 100% of dividends received from the Bank as a member of the same affiliated group of corporations. The corporate dividends-received deduction is generally 50% in the case of dividends received from unaffiliated corporations with which the Company and the Bank will not file a consolidated tax return, except that if the Company or the Bank owns more than 20% of the stock of a corporation distributing a dividend, then 65% of any dividends received may be deducted.

Missouri Taxation

General. Missouri-based banks, such as the Bank, are subject to a Missouri bank franchise and income tax.

Bank Franchise Tax. The Missouri bank franchise tax is imposed on the bank’s taxable income at the rate of 4.48%, less credits for certain Missouri taxes, including income taxes. However, the credits exclude taxes paid for real estate, unemployment taxes, bank tax, and taxes on tangible personal property owned by the Bank and held for lease or rentals to others - income-based calculation.

Income Tax. The Bank and its holding company and related subsidiaries are subject to an income tax that is imposed on the consolidated taxable income apportioned to Missouri at the rate of 4.0%. The return is filed on a consolidated basis by all members of the consolidated group including the Bank.

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Earnings Tax. Due to its loan activity and the acquisition of Kansas City banks in fiscal 2023, the Bank is subject to a Kansas City earnings tax. The tax is imposed on the Bank’s apportioned taxable income at a rate of 1.0%.

Arkansas Taxation

General. Due to its loan activity and the acquisitions of Arkansas banks in recent periods, the Bank is subject to an Arkansas income tax. The tax is imposed on the Bank’s apportioned taxable income at a rate of 4.3%.

Illinois Taxation

General. Due to its loan activity and the acquisitions of Illinois banks in recent periods, the Bank and its holding company and related subsidiaries are subject to an income tax that is imposed on the consolidated taxable income apportioned to Illinois at the rate of 9.5%.

Kansas Taxation

Privilege Tax. Due to its loan activity and the acquisitions of Kansas banks in the most recent period, the Bank is subject to a Kansas privilege tax. The tax is imposed on the Bank’s apportioned taxable income at a rate of 4.065%.

Texas Taxation

Franchise Tax. Due to its loan activity and employees located in Texas, the Bank is subject to the Texas franchise tax. The tax is imposed on the Bank’s taxable margin apportioned to Texas based on Texas gross receipts at a rate of 0.75%.

Audits

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. There have been no IRS or other state audits of the Company’s federal or state income tax returns during the past five years.

For additional information regarding taxation, see Note 10 of Notes to the Consolidated Financial Statements contained in Item 8.

INTERNET WEBSITE

We maintain a website with the address of www.bankwithsouthern.com. The information contained on our website is not included as a part of, or incorporated by reference into, this Annual Report on Form 10-K. This Annual Report on Form 10-K and our other reports, proxy statements and other information, including earnings press releases, filed with the SEC are available at http://investors.bankwithsouthern.com. For more information regarding access to these filings on our website, please contact our Corporate Secretary, Southern Missouri Bancorp, Inc., 2991 Oak Grove Road, Poplar Bluff, Missouri, 63901; telephone number (573) 778-1800.

Item 1A. Risk Factors

An investment in our securities is subject to inherent risks. Before making an investment decision, you should carefully consider the risks and uncertainties described below together with all of the other information included in this report. In addition to the risks and uncertainties described below, other risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and results of operations. The value or market price of our securities could decline due to any of these identified or other risks, and you could lose all or part of your investment.

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Risks Relating to the Company and the Bank

Risks Relating to Marcoeconomic Conditions

Changes in economic conditions, particularly an economic slowdown in Missouri or northern Arkansas, could hurt our business.

Our business is directly affected by broad macroeconomic and policy factors including, inflation or deflation, changes in monetary policy, interest rate volatility, trends in industry and finance, legislative and regulatory changes, and changes in governmental monetary and fiscal policies, all of which are beyond our control. Future deterioration in economic conditions including declining employment, reduced consumer spending, business failures or adverse weather events, particularly within our primary market area, could result in the following consequences, among others, any of which could hurt our business materially:

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loan delinquencies may increase;

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problem assets and foreclosures may increase;

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demand for our products and services may decline which may lead to lower loan originations, deposits and other revenues;

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loan collateral may decline in value, in turn reducing a customer’s borrowing power and reducing the value of collateral securing our loans;

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the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;

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the need to increase the allowance for credit losses; and

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reduction in our low-cost or noninterest-bearing deposits.

In addition, a decline in local or regional economic conditions may have a greater effect on our earnings and capital than on the earnings and capital of larger financial institutions whose real estate loan portfolios are more geographically diverse.

Downturns in the real estate markets in our primary market area could hurt our business.

Our business activities and credit exposure are primarily concentrated in Missouri and northern Arkansas. While we did not and do not have a sub-prime lending program, our residential real estate, construction and land loan portfolios, our commercial and multi-family loan portfolios and certain of our other loans could be affected by the downturn in the real estate market. We anticipate that significant declines in the real estate markets in our primary market area would hurt our business and would mean that collateral for our loans would hold less value. As a result, our ability to recover on defaulted loans by selling the underlying real estate would be diminished, and we would be more likely to suffer losses on defaulted loans. The events and conditions described in this risk factor could therefore have a material adverse effect on our business, results of operations and financial condition.

Inflationary pressures and rising prices may adversely affect our results of operations and financial condition.

Inflation and higher costs for goods, services, labor and other operating expenses could adversely affect our customers and our business. Although inflationary pressures have moderated from the elevated levels experienced in recent years, the continued uncertainty surrounding inflation, interest rates and other economic conditions could affect consumer and business activity and the financial condition of our customers. Small and medium-sized businesses may be impacted more during periods of high inflation, as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses. Consequently, the ability of our business customers to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact our results of

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operations and financial condition. Furthermore, increases in employee compensation and benefits costs, occupancy, technology, insurance and other operating costs could increase our expenses and reduce our profitability. Any of these factors could have a material adverse effect on our business, results of operations and financial condition.

Severe weather and other natural disasters, acts of war or terrorism, new public health issues or other adverse external events could harm our business.

Severe weather and other natural disasters, acts of war or terrorism, new public health issues or other adverse external events could have a significant impact on our ability to conduct business. Such events could harm our operations through interference with communications, including the interruption or loss of our computer systems, which could prevent or impede us from gathering deposits, originating loans and processing and controlling the flow of business, as well as through the destruction of our facilities and our operational, financial and management information systems. There is no assurance that our business continuity and disaster recovery program can adequately mitigate these risks. Such events could also affect the stability of our deposit base, cause significant property damage, adversely affect our employees, adversely impact the values of collateral securing our loans and/or interfere with our borrowers’ abilities to repay their debt obligations to us.

Risks Relating to Credit and Lending Activities

Our ACL may be insufficient to absorb losses in our loan portfolio.

Lending money is a substantial part of our business. Every loan carries a certain risk that it will not be repaid in accordance with its terms or that any underlying collateral will not be sufficient to ensure repayment. This risk is affected by, among other things:

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cash flow of the borrower and/or the project being financed;

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in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral;

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the credit history of a particular borrower;

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changes in economic and industry conditions; and

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the duration of the loan.

We maintain an ACL which we believe is appropriate to provide for expected losses over the life of loans in our portfolio. The amount of this allowance is determined by our management through a periodic review and consideration of several factors, including, but not limited to:

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historical default and loss experience;

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historical recovery experience;

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economic conditions;

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evaluation of non-performing loans;

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the amount and quality of collateral, including guarantees, securing the loans.

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risk characteristics of the various classifications of loans; and

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the rate of growth, quality, size and diversity of the loan portfolio;

If actual credit losses exceed the projections modeled in arriving at our estimate of the allowance for credit losses, our business, financial condition and profitability may suffer.

The Financial Accounting Standards Board (FASB), adopted Accounting Standards Update (ASU), 2016 13 “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” on June

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16, 2016, which changed previous allowance for loan losses methodology to consider current expected credit losses (CECL).

Our determination of the appropriate level of the ACL under CECL inherently involves a high degree of subjectivity and requires us to make significant estimates of current credit risks and future trends, all of which may undergo material changes over time. If our estimates are incorrect, the ACL may not be sufficient to cover the expected losses in our loan portfolio, resulting in the need for increases in our ACL. Management also recognizes that significant new growth in loan portfolios, new loan products and the refinancing of existing loans can result in portfolios comprised of unseasoned loans that may not perform in a historical or projected manner and will increase the risk that our ACL may be insufficient to absorb losses without significant additional provisions.

In addition, bank regulatory agencies periodically review our ACL and may require an increase in the provision for credit losses or the recognition of further loan charge-offs based on judgments different than those of management, if charge-offs in future periods exceed the ACL, we may need additional provisions to increase the ACL. Any increases in the ACL will result in a decrease in net income and possibly capital and may have a material adverse effect on our financial condition and results of operations.

If our nonperforming assets increase, our earnings will be adversely affected.

At June 30, 2026, our nonperforming assets were $33.5 million, or 0.64% of total assets. Our nonperforming assets adversely affect our net income in various ways:

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We do not accrue interest income on nonaccrual loans, nonperforming investment securities, or other real estate owned.

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We must provide for expected credit losses through a current period charge to the provision for credit losses.

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Non-interest expense increases when we must write down the value of properties in our other real estate owned portfolio to reflect changing market values.

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There are legal fees associated with the resolution of problem assets, as well as carrying costs, such as taxes, insurance, and maintenance fees related to our other real estate owned.

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The resolution of nonperforming assets requires active involvement of management, which can divert management’s attention from more profitable activities.

If additional borrowers become delinquent and do not pay their loans and we are unable to successfully manage our nonperforming assets, our losses and troubled assets could increase significantly, which could have a material adverse effect on our financial condition and results of operations. See also “Regulation – Regulatory Capital Requirements.”

Our construction lending exposes us to significant risk.

Our construction loan portfolio, which totaled $310.0 million, or 7.1% of loans at June 30, 2026, includes residential and non-residential construction and development loans. Construction and development lending, especially non-residential construction and development lending, is generally considered to have more complex credit risks than traditional one-to-four-family residential lending because the principal is concentrated in a limited number of loans with repayment dependent on the successful completion and sale, leasing, or operation of the related real estate project. Consequently, these loans are often more sensitive to adverse conditions in the real estate market or the general economy than other real estate loans. These loans are generally less predictable and more difficult to evaluate and monitor and collateral may be difficult to dispose of in a market decline. Additionally, we may experience significant construction credit losses because independent appraisers or project engineers inaccurately estimate the cost or value of construction loan projects.

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Deterioration in our construction portfolio could result in increases in the provision for credit losses and an increase in charge-offs, all of which could have a material adverse effect on our financial condition and results of operations.

Our loan portfolio possesses increased risk due to our percentage of commercial real estate and commercial business loans.

At June 30, 2026, 55.8% of our loans consisted of commercial real estate, excluding construction as previously mentioned above, and commercial business loans to small and mid-sized businesses, generally located in our primary market area, which are the types of businesses that have a heightened vulnerability to local economic conditions. At June 30, 2026, our loan portfolio included $1.9 billion of commercial real estate loans and $552.6 million of commercial business loans. The credit risk related to these types of loans is considered to be greater than the risk related to one- to four-family residential loans because the repayment of commercial real estate loans and commercial business loans typically is dependent on the successful operation and income stream of the borrower’s business or the real estate securing the loans as collateral, which can be significantly affected by economic conditions. Additionally, commercial loans typically involve larger loan balances to single borrowers or groups of related borrowers compared to residential real estate loans. If loans that are collateralized by real estate become troubled and the value of the real estate has been significantly impaired, then we may not be able to recover the full contractual amount of principal and interest that we anticipated at the time we originated the loan, which could require us to increase our provision for credit losses and adversely affect our operating results and financial condition. Commercial loans not collateralized by real estate are often secured by collateral that may depreciate over time, be difficult to appraise and fluctuate in value (such as accounts receivable, inventory and equipment).

Several of our commercial borrowers have more than one commercial real estate or business loan outstanding with us. Consequently, an adverse development with respect to a single loan or credit relationship can expose us to significantly greater risk of loss compared to an adverse development with respect to a single one- to four-family residential mortgage loan. Finally, if we foreclose on a commercial real estate loan, our holding period for the collateral, if any, typically is longer than for one- to four-family residential property because there are fewer potential purchasers of the collateral. Since we plan to continue to increase our originations of these loans, it may be necessary to increase the level of our ACL due to the increased risk characteristics associated with these types of loans. Any increase to our provision credit losses would adversely affect our operating results and financial condition. Any delinquent payments or the failure to repay these loans would hurt our operating results and financial condition.

Our loan portfolio possesses risk due to our agricultural lending.

Our agricultural real estate loans totaled $295.8 million, or 6.8% of our loan portfolio at June 30, 2026. Agricultural real estate lending involves a greater degree of risk and typically involves larger loans to single borrowers than lending on one-to-four-family residences. Payments on agricultural real estate loans are dependent on the profitable operation or management of the farm property securing the loan. The success of the farm may be affected by many factors outside the control of the farm borrower, including adverse weather conditions that prevent the planting of a crop or limit crop yields (such as hail, drought and floods), loss of livestock due to disease or other factors, declines in market prices for agricultural products (both domestically and internationally) and the impact of government regulations (including changes in price supports, subsidies, and environmental regulations). In addition, many farms are dependent on a limited number of key individuals whose injury or death may significantly affect the successful operation of the farm. If the cash flow from a farming operation is diminished, the borrower’s ability to repay the loan may be impaired. The primary agricultural activity in our market areas is livestock, dairy, poultry, rice, timber, soybeans, wheat, melons, corn, and cotton. Accordingly, adverse circumstances affecting these activities could have an adverse effect on our agricultural real estate loan portfolio.

Our agricultural production and equipment loans totaled $219.2 million, or 5.1%, of our loan portfolio at June 30, 2026, these loans. As with agricultural real estate loans, the repayment of operating loans is dependent on the successful operation or management of the farm property. The same risk applies to agricultural operating loans which are unsecured or secured by rapidly depreciating assets such as farm equipment or assets such as livestock or crops. Any

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repossessed collateral for a defaulted loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation to the collateral.

At times, various agricultural commodity prices have been negatively impacted by recent actions taken, or which are feared could be taken, by governments in markets where U.S. agricultural products are exported. Declines in the pricing available to U.S. farmers negatively impacts cash flows for these borrowers to service their debts, and negatively affects the value of real estate and equipment which may be pledged as collateral to secure borrowings. In addition to the various risks to farm operations and management noted above, agricultural loans often are structured for annual payments, to coincide with borrower cash flows. As compared to other loan types which generally require monthly payments, an annual payment schedule may increase risk that the Company would not timely identify a borrower experiencing financial difficulties, hindering its ability to work to mitigate losses.

Continued growth of our commercial real estate and commercial business loan portfolios may increase the risk of credit defaults in the future.

Due to our emphasis on commercial real estate and commercial business lending, a substantial amount of the loans in our commercial real estate and commercial business portfolios and our lending relationships are of relatively recent origin. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process referred to as “seasoning.” A portfolio of older loans will usually behave more predictably than a newer portfolio. Commercial real estate and commercial business loans naturally create portfolio “churn” as loans are originated and repaid. As a result, our portfolio consists of a mix of seasoned and unseasoned loans. We believe that our underwriting practices are sound and based on industry standards and best practices. However, a significant portion of our loan portfolio is relatively new. Therefore, the current level of delinquencies and defaults may not be representative of the level that will prevail as the portfolio becomes more seasoned, which may be higher than current levels. If delinquencies and defaults increase, we may be required to increase our provision for credit losses, which would adversely affect our results of operations and financial condition.

Credit losses on investment securities could require charges to earnings, which could negatively impact our results of operations.

In assessing the potential credit losses of investment securities, we are required to evaluate instances in which the fair value of particular securities are less than their amortized cost basis. The evaluation considers factors including; past events, current conditions, and reasonable & supportable forecasts, and the Company’s ability and intent to hold the security until maturity. A qualitative determination is acceptable. There were no credit-related factors underlying unrealized losses on AFS securities at June 30, 2026, or June 30, 2025.

Risks Relating to Market Interest Rates

Changes in interest rates may negatively affect our earnings and the value of our assets.

Our earnings and cash flows depend substantially upon our net interest income. Net interest income is the difference between interest income earned on interest-earning assets, such as loans and investment securities, and interest expense paid on interest-bearing liabilities, such as deposits and borrowed funds. Interest rates are sensitive to many factors that are beyond our control, including general economic conditions, competition and policies of various governmental and regulatory agencies and, in particular, the policies of the Federal Reserve Board. Changes in monetary policy, including changes in interest rates, could influence not only the interest we receive on loans and investment securities and the amount of interest we pay on deposits and borrowings, but these changes could also affect: (i) our ability to originate loans and obtain deposits; (ii) the fair value of our financial assets and liabilities, including our securities portfolio; and (iii) the average duration of our interest-earning assets. This also includes the risk that interest-earning assets may be more responsive to changes in interest rates than interest-bearing liabilities, or vice versa (repricing risk), the risk that the individual interest rates or rate indices underlying various interest-earning assets and interest-bearing liabilities may not change in the same degree over a given time period (basis risk), and the risk of changing interest rate relationships across the spectrum of interest-earning asset and interest-bearing liability maturities (yield curve risk), including a prolonged flat or inverted yield curve environment. Changes in interest rates may also

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affect the composition and stability of our deposit base, as customers may move funds among deposit products or from deposits to other investments, which could increase our funding costs and adversely affect our net interest margin. They could also move their funds out of the Bank into other investment products, which could result in an increase in funding costs to replace these funds. Any substantial, unexpected, prolonged change in market interest rates could have a material adverse effect on our financial condition and results of operations. See also, Part II, Item 7(a) “Interest Rate Sensitivity Analysis”.

We may incur losses on our securities portfolio due to factors beyond our control, including changes in interest rates.

Factors beyond our control can significantly influence the fair value of securities in our portfolio and can cause potential adverse changes to the fair value of these securities. These factors include, but are not limited to, rating agency actions in respect of the securities, defaults by, or other adverse events affecting the issuer or the underlying securities, and changes in market interest rates and continued instability in the capital markets. Any of these factors, among others, could cause credit impairments and realized and/or unrealized losses in future periods and declines in other comprehensive income, which could have a material effect on our business, financial condition, and results of operations. The process for determining whether impairment of a security is due to credit usually requires complex, subjective judgments about the future financial performance and liquidity of the issuer and any collateral underlying the security to assess the probability of receiving all contractual principal and interest payments on the security. Furthermore, there can be no assurance that the declines in market value will not result in losses realized on these assets and lead to provision for credit loss charges that could have a material adverse effect on our net income and capital levels. For the year ended June 30, 2026, we did not incur any credit impairments on our securities portfolio.

Risks Relating to Liquidity

Liquidity risk could impair our ability to fund operations and jeopardize our financial condition.

Liquidity is essential to our business and our ability to meet the financial obligations of our customers, fund loans and investments, and satisfy deposit withdrawal requests. Our primary sources of liquidity include deposits, repayments and maturities of loans and investment securities, proceeds from the sale or maturity of investment securities, borrowings from the Federal Home Loan Bank and other financial institutions, and other sources of funding. Our deposits represent our primary source of funding, and we compete with banks, credit unions, money market funds and other financial institutions for deposits. Changes in interest rates, customer preferences, market conditions or concerns about the financial condition of financial institutions could cause customers to withdraw or transfer deposits, potentially at a rapid pace. A significant portion of our deposits may also consist of balances that exceed applicable FDIC insurance limits. The loss of significant deposits could reduce our liquidity and increase our reliance on wholesale or other sources of funding, which may be more expensive or less readily available. Our access to these sources of liquidity could be adversely affected by economic conditions, market disruptions, changes in interest rates, regulatory requirements, the financial condition or performance of the Company, or other factors beyond our control.

Factors that could detrimentally impact our access to liquidity sources include a decrease in the level of our business activity as a result of a downturn in the markets in which our loans are concentrated or an adverse regulatory action against us. Our ability to borrow could also be impaired by factors that are not specific to us, such as a disruption in the financial markets or negative views and expectations about the prospects for the financial services industry generally. A significant deterioration in our liquidity position could adversely affect our ability to meet our obligations, fund loans, maintain required liquidity levels or continue to operate our business as planned. While we maintain liquidity management policies and contingency funding arrangements designed to address potential liquidity needs, these measures may not be sufficient to address all circumstances, particularly in the event of rapid or significant deposit outflows or broader market disruption. Any significant reduction in the availability of deposits or other funding sources, or any material increase in our cost of funding, could have a material adverse effect on our business, results of operations and financial condition.

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Risks Relating to Merger and Acquisition Activities

We may fail to realize all of the anticipated benefits of our acquisition activities.

The success of our acquisition activities depends on, among other things, our ability to realize anticipated cost savings and to combine the businesses of the companies in a manner that does not materially disrupt the existing customer relationships of the companies or result in decreased revenues from customers. If we are unable to achieve these objectives, the anticipated benefits of the acquisitions may not be realized fully, if at all, or may take longer to realize than expected.

We have pursued a strategy of supplementing internal growth by acquiring other financial companies or their assets and liabilities that we believe will help fulfill our strategic objectives and enhance our earnings. There are risks associated with this strategy, including the following:

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We may be exposed to potential asset quality issues or unknown or contingent liabilities of the banks, businesses, assets and liabilities we acquire. If these issues or liabilities exceed our estimates, our results of operations and financial condition may be adversely affected;

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Prices at which acquisitions can be made fluctuate with market conditions. We have experienced times during which acquisitions could not be made in specific markets at prices we considered acceptable and expect that we will experience this condition in the future;

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The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity into us to make the transaction economically successful. This integration process is complicated and time-consuming and can also be disruptive to the customers of the acquired business. If the integration process is not conducted successfully and with minimal effect on the acquired business and its customers, we may not realize the anticipated economic benefits of particular acquisitions within the expected time frame, or at all, and we may lose customers or employees of the acquired business. We may also experience greater than anticipated customer losses even if the integration process is successful;

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To the extent our costs of an acquisition exceed the fair value of the net assets acquired, the acquisition will generate goodwill. We are required to assess our goodwill for impairment at least annually, and any goodwill impairment charge could have a material adverse effect on our results of operations and financial condition;

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To finance an acquisition, we may borrow funds, thereby increasing our leverage and diminishing our liquidity, or raise additional capital, which could dilute the interests of our existing shareholders;

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We expect our net interest income will increase following our acquisitions; however, we also expect our general and administrative expenses to increase; and

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We have completed seven acquisitions since June 2017 which enhanced our rate of growth. We do not necessarily expect to be able to maintain our past rate of growth, and may not be able to grow at all in the future.

Risks Relating to Future Growth

Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. While we anticipate that our capital resources will satisfy our capital requirements for the foreseeable future, we may at some point need to raise additional capital to support our operations or continued growth, both internally and through acquisitions. Any capital we obtain may result in the dilution of the interests of existing holders of our common stock, or otherwise adversely affect your investment.

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Our ability to raise additional capital, if needed, will depend on conditions in the capital markets at that time, which are outside our control, and on our financial condition and performance. Accordingly, we cannot make assurances of our ability to raise additional capital if needed, or if the terms will be acceptable to us. If we cannot raise additional capital when needed, our ability to further expand our operations through internal growth and acquisitions could be materially impaired and our financial condition and liquidity could be materially and adversely affected.

Risks Relating to Regulation

Legislative or regulatory changes or actions, or significant litigation, could adversely impact us or the businesses in which we are engaged.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. Laws and regulations may change from time to time and are primarily intended for the protection of consumers, depositors and the deposit insurance funds, and not to benefit our shareholders. The impact of any changes to laws and regulations or other actions by regulatory agencies may negatively impact us or our ability to increase the value of our business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the imposition of restrictions on the operation of an institution, the classification of assets by the institution and the adequacy of an institution’s allowance for credit losses. Additionally, actions by regulatory agencies or significant litigation against us could require us to devote significant time and resources to defending our business and may lead to penalties that materially affect us and our shareholders. See “Government Supervision and Regulation.”

Non-compliance with USA Patriot Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions.

The USA Patriot and Bank Secrecy Acts require financial institutions to develop programs to prevent financial institutions from being used for money laundering and terrorist activities. If such activities are detected, financial institutions are obligated to file suspicious activity reports with the U.S. Treasury’s Office of Financial Crimes Enforcement Network. These rules require financial institutions to establish procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Failure to comply with these regulations could result in fines or sanctions. Several banking institutions have received large fines for non-compliance with these laws and regulations. Although we have developed policies and procedures designed to assist in compliance with these laws and regulations, no assurance can be given that these policies and procedures will be effective in preventing violations of these laws and regulations.

We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations, some of which is expected to increase our costs of operations.

We are currently subject to extensive examination, supervision and comprehensive regulation by the FDIC, the Missouri Division of Finance, and the Federal Reserve. The FDIC, the Missouri Division of Finance, and the Federal Reserve govern the activities in which we may engage, primarily for the protection of depositors and the Deposit Insurance Fund. These regulatory authorities have extensive discretion, including the ability to restrict an institution’s operations, require the institution to reclassify assets, determine the adequacy of the institution’s ACL and determine the level of deposit insurance premiums assessed. Any change in such regulation and oversight, whether in the form of regulatory policy, new regulations or legislation or additional deposit insurance premiums could have a material adverse impact on our operations. Because our business is highly regulated, the laws and applicable regulations are subject to frequent change. See “Government Supervision and Regulation.”

The Federal Reserve as our primary federal bank regulator and the Missouri Division of Finance regulate the activities in which the Bank may engage primarily for the protection of depositors and not for the protection or benefit of stockholders. In addition, new laws and regulations may increase our costs of regulatory compliance and of doing business and otherwise affect our operations. New laws and regulations may significantly affect the markets in which we do business, the markets for and value of our loans and investments, the fees we can charge and our ongoing operations, costs and profitability. Regulatory changes regarding card interchange fee income do not currently apply to us but could

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change in the future. Further, legislative proposals limiting our rights as a creditor could result in credit losses or increased expense in pursuing our remedies as a creditor.

The level of our non-owner occupied commercial real estate portfolio may subject us to additional regulatory scrutiny.

The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending (see “Government Supervision and Regulation – Guidance on Commercial Real Estate Concentrations”). For the purposes of this guidance, “commercial real estate” includes, among other types, construction and land development loans, multi-family residential loans, and non-owner occupied nonresidential loans, which have been a source of loan growth for the Company. A bank that has experienced rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk: total loans for construction land development and other land representing 100% or more of the bank’s tier 1 regulatory capital plus the allowance for credit losses includable in total regulatory capital; or total commercial real estate loans (as defined in the guidance) that exceed 300% of the bank’s tier 1 regulatory capital plus the ACL includable in total regulatory capital and the bank’s commercial real estate portfolio has increased by 50% or more during the prior 36 months.

The Bank’s concentration in non-owner occupied commercial real estate loans was 287.9% of Tier 1 capital and ACL at June 30, 2026, as compared to 301.1% as of June 30, 2025, with these loans representing 38.8% of total loans at June 30, 2026. The 36-month growth rate at June 30, 2026, inclusive of acquisitions, was 14.9%. The Company’s non-owner occupied commercial real estate loans was 275.8% of Tier 1 capital and ACL at June 30, 2026, as compared to 288.6% as of June 30, 2025.

The Company’s non-owner occupied commercial real estate includes other nonfarm nonresidential real estate (149.6% as a percentage of Tier 1 capital and ACL), multifamily properties (76.1% as a percentage of Tier 1 capital and ACL), and construction and land development (50.2% as a percentage of Tier 1 capital and ACL). The majority of these loans are concentrated within the company’s primary operational footprint. The other nonfarm nonresidential real estate portfolio includes a variety of collateral types, with hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common. 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.

Commercial real estate lending represents a significant portion of our loan portfolio. Although our commercial real estate concentration is currently below the supervisory screening criteria under the interagency guidance, we continue to maintain enhanced risk management, monitoring and reporting processes appropriate for the size and composition of our commercial real estate portfolio. These processes include monitoring our commercial real estate concentrations by property type and other relevant risk characteristics and assessing the potential impact of changes in economic and commercial real estate market conditions.

Our commercial real estate concentration could increase in the future and may approach or exceed the supervisory screening criteria. If this occurs, we may be subject to additional costs. In addition, we may determine to slow the growth of our commercial real estate portfolio or particular concentrations within that portfolio. Any decision to limit or slow commercial real estate lending could adversely affect our asset growth, net interest margin, earnings or other strategic objectives.

Climate change may materially affect our business and the value of collateral securing our loans.

Climate change and severe weather events may adversely affect our customers, the communities in which we operate and the value and condition of real estate and other assets securing our loans. The frequency, severity and geographic distribution of severe weather events, including storms, flooding, droughts, wildfires and other natural disasters, may affect property values, business operations, insurance availability and costs, and the financial condition of our borrowers.

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The physical effects of severe weather events could damage or reduce the value of real estate and other collateral securing our loans. In addition, borrowers may experience business interruptions, property damage, increased operating or insurance costs, loss of income or other financial difficulties as a result of severe weather events. If insurance coverage is unavailable, inadequate or insufficient to cover losses to collateral or other property, the resulting deterioration in the value of collateral or the borrower's financial condition could increase our credit losses.

Climate-related risks may also affect regional and local economic conditions and the financial condition of businesses and consumers in our markets. In addition, changes in laws, regulations, market practices, technology or consumer preferences associated with efforts to address climate change could affect certain of our borrowers or industries and could indirectly affect our credit exposure to those borrowers. The extent and timing of these effects are difficult to predict and may vary significantly across geographic regions and industries.

Although the federal banking agencies have withdrawn their interagency Principles for Climate-Related Financial Risk Management for Large Financial Institutions, financial institutions remain subject to existing safety-and-soundness requirements to identify, monitor and manage material risks appropriate to the size, complexity and risk of their activities.

The effects of climate change, severe weather events and related economic or financial impacts could increase our credit, operational or other risks and could have a material adverse effect on our business, results of operations and financial condition.

Risks Relating to Technology and Cyber Security and Other Operational Matters

The Company continually encounters technological change.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services, including the entrance of financial technology companies offering new financial service products. The Company regularly upgrades or replaces core technological systems. The effective use of technology increases efficiency and enables financial institutions to better serve customers and reduce costs. The Company’s future success depends, in part, upon its ability to address the needs of its customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in the Company’s operations. Many of the Company’s competitors have substantially greater resources to invest in technological improvements. The Company may encounter significant problems or may not be able to effectively implement new technology-driven products, including the core deposit system, and services, or be successful in marketing the new products and services to its customers. These problems might include significant time delays, cost overruns, loss of key people, and technological system failures. Failure to successfully keep pace with technological change affecting the financial services industry or failure to successfully complete the replacement of the core deposit system, or another core technological system, could have a material adverse effect on the Company’s business, financial condition and results of operations.

We are subject to security and operational risks relating to our use of technology that could damage our reputation and business.

Security breaches in our mobile and consumer and commercial internet banking activities and wealth management or mobile access could expose us to possible liability and damage our reputation. Any compromise of our security also could deter customers from using our internet banking services that involve the transmission of confidential information. We rely on internet security systems to provide the security and authentication necessary to effect secure transmission of data. These precautions may not protect our systems from compromises or breaches of our security measures, which could damage our reputation and business.

We face significant operational risks because the financial services business involves a high volume of transactions and increased reliance on technology, including risk of loss related to cyber-security breaches.

We operate in diverse markets and rely on the ability of our employees and systems to process a high number of transactions and to collect, process, transmit and store significant amounts of confidential information regarding our

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customers, employees and others and concerning our own business, operations, plans and strategies. Operational risk is the risk of loss resulting from our operations, including but not limited to, the risk of fraud by employees or persons outside our company, the execution of unauthorized transactions by employees, errors relating to transaction processing and technology, systems failures or interruptions, breaches of our internal control systems and compliance requirements, and business continuation and disaster recovery. Insurance coverage may not be available for such losses, or where available, such losses may exceed insurance limits. This risk of loss also includes the potential legal actions that could arise as a result of operational deficiencies or as a result of non-compliance with applicable regulatory standards or customer attrition due to potential negative publicity. In addition, we outsource some of our data processing to certain third-party providers. If these third-party providers encounter difficulties, including as a result of cyber-attacks or information security breaches, or if we have difficulty communicating with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely affected.

The financial services industry has noted recent increases in electronic fraudulent activity, attempted security breaches, and cyber-attacks, including attempts to initiate fraudulent activity through consumer, commercial, and public unit accounts. We are regularly the target of attempted cyber and other security threats and must continuously monitor and develop our information technology networks and infrastructure to prevent, detect, address and mitigate the risk of unauthorized access, misuse, computer viruses and other events that could have a security impact. Insider or employee cyber and security threats are increasingly a concern for companies, including ours. We are not aware that we have experienced any material misappropriation, loss or other unauthorized disclosure of confidential or personally identifiable information as a result of a cybersecurity breach or other act, however, some of our clients may have been affected by these breaches, which could increase their risks of identity theft, credit card fraud and other fraudulent activity that could involve their accounts with us.

In the event of a breakdown in our internal control systems, improper operation of systems or improper employee actions, or a breach of our security systems, including if confidential or proprietary information were to be mishandled, misused or lost, we could suffer financial loss, face regulatory action, civil litigation and/or suffer damage to our reputation.

Our information technology systems may be subject to failure, interruption, or security breaches.

Our business depends heavily on information technology systems, including systems used to process and maintain customer information, deposits, loans, securities, payments and other financial transactions. We also rely on third-party service providers for certain technology, data processing, communications, cloud-based and other services. A failure, interruption, cybersecurity incident or other disruption affecting our systems or those of our third-party service providers could adversely affect our ability to conduct business and serve our customers.

Financial institutions and their service providers continue to face increasingly sophisticated cybersecurity threats, including ransomware, malware, phishing, social engineering, credential theft, denial-of-service attacks, business email compromise, fraud and other attempts to obtain unauthorized access to systems or confidential information. The techniques used to obtain unauthorized access or disrupt systems are continually evolving and may be difficult to detect or prevent. The increasing use of mobile and online banking, cloud computing, remote access, artificial intelligence and other technologies may increase the number and complexity of potential vulnerabilities and attack vectors.

A cybersecurity incident or other technology disruption could result in the theft, destruction, loss, alteration or unauthorized disclosure of confidential, proprietary or customer information; unauthorized transactions or fraud; disruption of our operations; damage to our systems or those of our service providers; or the inability of our customers to access banking services. We may also experience business interruption, reputational damage, loss of customers, increased operating costs or other adverse consequences. Although we have policies, procedures and controls designed to prevent, detect and respond to cybersecurity incidents and other technology disruptions, we cannot guarantee that these measures will prevent or adequately mitigate every incident.

Our reliance on third-party service providers also exposes us to risks arising from the cybersecurity practices, systems and controls of those providers. A cybersecurity incident or operational failure at a significant service provider could adversely affect us even if our own systems and controls remain secure. In addition, a disruption affecting multiple

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financial institutions or critical third-party providers could limit the availability of alternative services and make recovery more difficult.

Cybersecurity incidents and other technology-related events may also subject us to regulatory scrutiny, increased compliance costs, contractual liabilities, litigation, claims for damages, remediation expenses and other financial losses. We may be required to notify affected customers, regulators or other parties following certain incidents, and applicable laws and regulations governing cybersecurity, privacy and data protection may impose additional obligations and costs. The costs associated with investigating, responding to and remediating a significant cybersecurity incident could be substantial.

As cybersecurity threats continue to evolve, we may be required to devote additional financial and operational resources to protecting our systems, enhancing our controls, replacing or upgrading technology, and responding to incidents. Despite these efforts, there can be no assurance that our information technology systems, or those of our third-party service providers, will not experience failures, interruptions or cybersecurity incidents. Any such event could have a material adverse effect on our business, reputation, financial condition and results of operations.

The Company’s operations rely on certain external vendors.

The Company relies on third-party vendors to provide products and services necessary to maintain day-to-day operations. For example, the Company outsources a portion of its information systems, communication, data management, and transaction processing to third parties. Accordingly, the Company is exposed to the risk that these vendors might not perform in accordance with the contracted arrangements or service level agreements for a number of reasons, including, but not limited to, changes in the vendor’s organizational structure, financial condition, support for existing products and services, or strategic focus. Such failure to perform could be disruptive to the Company’s operations, which could have a materially adverse impact on its business, results of operations and financial condition. These third parties are also sources of risk associated with operational errors, system interruptions or breaches and unauthorized disclosure of confidential information. If the vendors encounter any of these issues, the Company could be exposed to disruption of service, damage to reputation and litigation. Because the Company is an issuer of debit cards, it is periodically exposed to losses related to security breaches which occur at retailers that are unaffiliated with the Company (e.g., customer card data being compromised at retail stores). These losses include, but are not limited to, costs and expenses for card reissuance as well as losses resulting from fraudulent card transactions.

The occurrence of any system failures, interruption, or breach of security could damage our reputation and result in a loss of customers and business, subject us to additional regulatory scrutiny, or could expose us to litigation and possible financial liability. Any of these events could have a material adverse effect on our financial condition and results of operations.

The soundness of other financial institutions could adversely affect us.

Our ability to engage in routine funding transactions could be adversely affected by the actions and commercial soundness of other financial institutions. Financial services institutions are interrelated as a result of trading, clearing, counterparty or other relationships. We have exposure to many different industries and counterparties, and we routinely execute transactions with counterparties in the financial industry. As a result, defaults by, or even rumors or questions about, one or more financial services institutions, or the financial services industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us or by other institutions. Many of these transactions expose us to credit risk in the event of default of our counterparty or client. In addition, our credit risk may be exacerbated when the collateral we hold cannot be realized upon or is liquidated at prices insufficient to recover the full amount of the loan. We cannot assure you that any such losses would not materially and adversely affect our business, financial condition or results of operations.

Significant legal actions could subject us to substantial liabilities.

We are from time to time subject to claims related to our operations. These claims and legal actions, including supervisory actions by our regulators, could involve large monetary claims and significant defense costs. As a result, we

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may be exposed to substantial liabilities, which could adversely affect our results of operations and financial condition. See also, Item 3. “Legal Proceedings”.

Risks Relating to Earnings and Capital from Potential Impairment of Intangible or Deferred Tax Assets

Impairment of intangible assets or deferred tax assets could require charges to earnings, which could negatively impact our results of operations.

Deferred tax assets are only recognized to the extent it is more likely than not they will be realized. Should our management determine it is not more likely than not that the deferred tax assets will be realized, a valuation allowance with a charge to earnings would be reflected in the period. At June 30, 2026, our net deferred tax asset was $10.3 million, none of which was disallowed for regulatory capital purposes. Based on the levels of taxable income in prior years and our expectation of profitability in the current year and future years, management has determined that no valuation allowance was required at June 30, 2026. If we are required in the future to take a valuation allowance with respect to our deferred tax asset, our financial condition, results of operations and regulatory capital levels would be negatively affected.

Risks Relating to Our Common Stock

The price of our common stock may fluctuate significantly, and this may make it difficult for you to resell our common stock when you want or at prices you find attractive.

We cannot predict how our common stock will trade in the future. The market value of our common stock will likely continue to fluctuate in response to a number of factors including the following, most of which are beyond our control, as well as the other factors described in this “Risk Factors” section:

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actual or anticipated quarterly fluctuations in our operating and financial results;

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developments related to investigations, proceedings or litigation;

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changes in financial estimates and recommendations by financial analysts;

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dispositions, acquisitions and financings;

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actions of our current shareholders, including sales of common stock by existing shareholders and our directors and executive officers;

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fluctuations in the stock prices and operating results of our competitors;

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regulatory developments; and

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other developments in the financial services industry.

The market value of our common stock may also be affected by conditions affecting the financial markets in general, including price and trading fluctuations. These conditions may result in (i) volatility in the level of, and fluctuations in, the market prices of stocks generally and, in turn, our common stock and (ii) sales of substantial amounts of our common stock in the market, in each case that could be unrelated or disproportionate to changes in our operating performance. These broad market fluctuations may adversely affect the market value of our common stock.

Regulatory and contractual restrictions may limit or prevent us from paying dividends on and repurchasing our common stock.

Southern Missouri Bancorp, Inc., is an entity separate and distinct from its subsidiary bank and derives substantially all of its revenue in the form of dividends from the Bank. Accordingly, the Company is and will be dependent upon dividends from its subsidiary bank to pay the principal of and interest on its indebtedness, to satisfy its other cash needs and to pay dividends on its common and preferred stock. The Bank’s ability to pay dividends is subject to its ability to earn net income and to meet certain regulatory requirements. In the event the subsidiary bank is unable to

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pay dividends to the Company, the Company may not be able to pay dividends on its common or preferred stock. Also, the Company’s right to participate in a distribution of assets upon the subsidiary’s liquidation or reorganization is subject to the prior claims of the subsidiary’s creditors. In addition, holders of our common stock are entitled to receive dividends only when, as and if declared by our Board of Directors. Although we have historically paid cash dividends on our common stock, we are not required to do so and our Board of Directors could reduce, suspend or eliminate our common stock cash dividend in the future.

If we defer interest payments on our outstanding junior subordinated debt securities or if certain defaults relating to those debt securities occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation payments with respect to, our common stock.

As of June 30, 2026, we had outstanding $16.8 million aggregate principal amount of junior subordinated debt securities issued in connection with the sale of trust preferred securities by subsidiaries of ours that are statutory business trusts. As of that date, those debt securities were carried at a book value of $15.8 million.

We guarantee the trust preferred securities described above. The indentures under which the junior subordinated debt securities were issued, together with the guarantee, prohibit us, subject to limited exceptions, from declaring or paying any dividends or distributions on, or redeeming, repurchasing, acquiring or making any liquidation payments with respect to, any of our capital stock at any time when (i) there shall have occurred and be continuing an event of default under the indenture; (ii) we are in default with respect to payment of any obligations under the guarantee; or (iii) we have elected to defer payment of interest on the junior subordinated debt securities. In that regard, we are entitled, at our option but subject to certain conditions, to defer payments of interest on the junior subordinated debt securities from time to time for up to five years.

Events of default under the indentures generally consist of our failure to pay interest on the junior subordinated debt securities under certain circumstances, our failure to pay any principal of or premium on such junior subordinated debt securities when due, our failure to comply with certain covenants under the indenture, and certain events of bankruptcy, insolvency or liquidation relating to us.

As a result of these provisions, if we were to elect to defer payments of interest on the junior subordinated debt securities, or if any of the other events described in clause (i) or (ii) of the second paragraph of this risk factor were to occur, we would be prohibited from declaring or paying any dividends on our common stock, from redeeming, repurchasing or otherwise acquiring any of our common stock, and from making any payments to holders of our common stock in the event of our liquidation, which would likely have a material adverse effect on the market value of our common stock. Moreover, without notice to or consent from the holders of our common stock, we may issue additional series of junior subordinated debt securities in the future with terms similar to those of our existing junior subordinated debt securities or enter into other financing agreements that limit our ability to purchase or to pay dividends or distributions on our capital stock, including our common stock.

Anti-takeover provisions could negatively impact our shareholders.

Provisions of our articles of incorporation and bylaws, Missouri law and various other factors may make it more difficult for companies or persons to acquire control of us without the consent of our board of directors. These provisions include limitations on voting rights of beneficial owners of more than 10% of our common stock, the election of directors to staggered terms of three years and not permitting cumulative voting in the election of directors. Our bylaws also contain provisions regarding the timing and content of shareholder proposals and nominations for service on the Board of Directors.

Item 1B. Unresolved Staff Comments

None.

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Item 1C. Cybersecurity

Cybersecurity, Risk Management, Strategy and Governance

There continues to be a rise in electronic fraudulent activity security breaches and cyber-attacks within the financial services industry. We are confronted with a spectrum of cyber threats, ranging from common attacks such as ransomware to sophisticated, organized assaults by nation-state actors. These risks extend to our customers, shareholders, suppliers, and partners. Maintaining resilience in our cybersecurity posture is not just a priority but a fundamental necessity to safeguard our operations, performance, and to maintain customer confidence in our financial services.

The Board of Directors oversees management’s processes for identifying and mitigating risks, including cybersecurity risks, to help align our risk appetite with our strategic objectives. Our risk management program is designed to identify, measure, monitor and control all significant risks across various aspects of the Company. Cybersecurity risk management processes are integrated into this program, given the increasing reliance on technology and potential of cyber threats. Our Information Security (“IS”) Officer leads our cybersecurity program, reporting directly to the Director of Risk Management and provides reports and updates to the Information Technology (“IT”) Committee, and the Board of Directors monthly or more frequently as required.

Our objective for managing cybersecurity risk is to maintain appropriate layers of safeguards to protect information systems from possible threats and to avoid or minimize the impacts of external threat events or other efforts to penetrate, disrupt or misuse our systems or information. Our information security program aligns with industry frameworks, such as the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework, Federal Financial Institutions Examination Council (“FFIEC”) Information Technology Examination Handbooks, and the FFIEC Cybersecurity Assessment Tool, and is periodically reviewed and updated at least annually or more frequently upon significant changes to our operating environment. Our Information Security Program is led by our Information Security Officer in conjunction with our Information Technology Officer.

We maintain an Incident Response Plan (“IRP”) that provides a documented framework for responding to actual or potential cybersecurity incidents. The Incident Response Team (‘IRT”) members include senior management and other relevant personnel with defined roles and responsibilities. The IRP addresses roles, responsibilities, and communication and contract strategies in the event of a compromise, including analysis of reportable events in accordance with applicable legal and compliance requirements. The IRT is notified of all incidents, and incidents are elevated to the Board of Directors when warranted.

We rely on a series of processes to identify threats, hazards, and other risks to our information assets. We employ a variety of preventative and detective tools designed to monitor, detect, block, and provide alerts regarding suspicious and unauthorized activity and to report on suspected advanced persistent threats. In addition to regular risk assessments, we rely on independent assessments, audits, and cybersecurity feeds from vendors, including directly into patch and vulnerability management tools. We engage cybersecurity experts and third-party specialists to perform regular assessments of our infrastructure, software systems and network architecture. We also leverage internal and external auditors and independent external partners to periodically review our processes, systems, and controls, including with respect to our information security program, to assess their design and operating effectiveness. We have regular and ongoing security education and training for employees and recovery and resilience tests. The Bank also retains third-party experts to conduct intrusion and penetration testing on an annual basis. All risk and security assessments results are shared with the IT Committee and Board of Directors.

Our information assets are classified and protected based on the results of our risk assessment practices, which assess a variety of critical factors, including the type of data stored, system availability needs, confidentiality requirements, recovery time objectives, transactional processing, the number of users, and the volume and magnitude of transactions. Our IS and IT teams meet to ensure that risks are timely identified, patches and vulnerability requirements are monitored, and the necessary changes are implemented.

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Our IT governance ensures alignment between the Company's technological strategy and business goals. We strive for efficient utilization of IT resources while effectively managing IT risks within the Company's risk appetite.

Oversight and Identification of Risks Associated with Third Parties

Third party risk management is a component of our vendor management program. New vendors are reviewed prior to onboarding to ensure proper oversight and identify potential risks. Ongoing monitoring of emerging risks related to third-party services providers is performed periodically according to the vendor’s risk rating. Vendor reviews include risk reviews for financial, reputation, information security, cybersecurity and business resiliency risk. These reviews are reported to the IT Committee and Board of Directors for approval.

Identified Cybersecurity Risks

Federal regulators have issued multiple statements and guidance regarding cybersecurity and that financial institutions need to design multiple layers of security controls to establish lines of defense and to ensure that their risk management processes also address the risk posed by compromised client credentials, including security measures to reliably authenticate clients accessing internet-based services of the financial institution. In addition, a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the timely recovery, resumption and maintenance of the institution’s operations in the event of a cyber-attack. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address rebuilding network capabilities and restoring data if the institution or its critical service providers fall victim to a cyber-attack. If a financial institution fails to observe the regulatory guidance, they could be subject to various regulatory sanctions, including financial penalties.

In the ordinary course of business, we rely on electronic communications and information systems to conduct our operations to store and transmit sensitive data. We employ a layered, defensive approach that leverages people, processes, and technology to manage and maintain cybersecurity controls. We employ a variety of preventative and detective tools to monitor, block, and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats. Notwithstanding the strength of our defensive measures, the threat from cyber-attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures. While to date we have not detected a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, our systems and those of our clients and third-party service providers are under constant threat and there can be no assurance that our cybersecurity risk management program will be fully effective in protecting the confidentiality, integrity and availability of our information systems and our solutions. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of internet banking, mobile banking and other technology-based products and services by us and our customers. See Item 1A. Risk Factors for further discussion of risks related to cybersecurity. See “Risks Related to Cybersecurity, Third Parties and Technology” under “Item 1A. Risk Factors” in this Form 10-K for a further discussion of risks related to cybersecurity.

Management and Board Oversight of Cybersecurity Risks

Our cybersecurity program is managed by the Information Security Officer who leads our IS team responsible for leading enterprise-wide cybersecurity strategy, policy, standards, architecture, and processes. The Information Security Officer provides periodic reports to the IT Committee and Board of Directors. These reports address key cybersecurity topics, including the implementation and operation of preventative controls and the detection, mitigation, and remediation of cybersecurity incidents. The Chief Information Officer, Director of Risk Management, and board-level committees of the Bank provide comprehensive reports to the full Board of Directors regarding pertinent cybersecurity risk management topics.

Our Information Security Officer has 20 years of experience in financial services, with relevant expertise and formal training in the areas of information security, information technology, and cybersecurity risk management and is accountable for managing our enterprise information security department and developing and implementing our

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cybersecurity and information security programs. These qualifications and experience include a bachelor’s degree from Western Governor’s University in Information Technology Management.

Item 2. Description of Properties

At June 30, 2026, the Bank operated from its headquarters, 63 full-service branch offices, two limited-service branch offices, and three loan production offices (“LPOs”). The Bank owns the office building and related land in which its headquarters are located, and 60 of its branch offices. The remaining five branch offices and three LPOs are either leased or partially owned.

For additional information regarding our properties, see "Part II, Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 4 – Premises and Equipment".

Management believes that our current facilities are adequate to meet our present and immediately foreseeable needs. However, we will continue to monitor customer growth and expand our branching network, if necessary, to serve our customers’ needs.

Item 3. Legal Proceedings

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

Item 4. Mine Safety Disclosures

Not applicable.

Item 4A. Information About Our Executive Officers

Pursuant to General Instruction G(3) of Form 10-K and the instructions of Form 401 and Regulation S-K, the following information is furnished in lieu of being included in the Registrant’s definitive proxy statement.

The following information as to the business experience during the past five years is supplied with respect to executive officers of the Company who are not directors of the Company or the Bank, with the exception of Mr. Steffens, who is Chairman of the Board of the Company and the Bank, and Mr. Funke, who is a director of the Bank. There are no arrangements or understandings between the persons named and any other person pursuant to which such officers were selected.

Greg A. Steffens, age 59, the Company’s Chairman of the Board (“Chairman”), and Chief Executive Officer (“CEO”), joined our Company in 1998 as Chief Financial Officer, and was appointed President and CEO in 1999. He has over 34 years of experience in the banking industry, including service from 1993 to 1998 as chief financial officer of Sho-Me Financial Corp (Mount Vernon, Missouri), prior to the sale of that company to Union Planters Corporation. Mr. Steffens also served from 1989 to 1993 as an examiner with the Office of Thrift Supervision. Mr. Steffens holds a Bachelor of Science Degree in Business Administration-Accounting and Finance from the University of Central Missouri, Warrensburg, Missouri. Effective July 1, 2022, Mr. Steffens became Chairman and CEO of the Company.

Matthew T. Funke, age 49, the Company’s President and Chief Administrative Officer, joined our Company in 2003. He has more than 27 years of banking and finance experience. Mr. Funke was initially hired to establish an

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internal audit function for the Company, and served as internal auditor and compliance officer until 2006, when he was named Chief Financial Officer. Previously, Mr. Funke was employed with Central Bancompany, Inc. (Jefferson City, Missouri), where he advanced to the role of internal audit manager, and as a fiscal analyst with the Missouri General Assembly. Mr. Funke holds a Bachelor of Science Degree in Accounting from Missouri State University, Springfield, Missouri, and is a graduate of the Southwest Graduate School of Banking at SMU, Dallas, Texas. Effective July 1, 2022, Mr. Funke was promoted to President and Chief Administrative Officer of the Company and to President and CEO of the Bank. He was also named a director of the Bank.

Stefan Chkautovich, age 41, became the Company’s Chief Financial Officer and Principal Accounting Officer on September 18, 2023. In November, 2024, Mr. Chkautovich was appointed the Principal Financial Officer of the Company. Mr. Chkautovich, has over 19 years of banking experience, having most recently been Chief Financial Officer of Midwest Regional Bank (St. Louis, Missouri) for two years. Prior to that, Mr. Chkautovich worked at Kennedy Capital Management (St. Louis, Missouri) as assistant portfolio manager of Kennedy Capital’s Bank Sector Strategy and a financial analyst focusing on the financial services sector for six years. Mr. Chkautovich also served in several positions as an examiner for the Federal Reserve Bank of St. Louis, for over nine years, with the last one being Senior Bank Examiner, and is a commissioned bank examiner. Mr. Chkautovich holds a Bachelor of Science Degree in Business Administration-Finance from the University of Dayton, Dayton, Ohio.

Kimberly A. Capps, age 58, the Company’s Chief Retail Officer, joined our Company in 1994. She has over 33 years of banking experience. Ms. Capps is responsible for the Company’s retail deposit operations, product development and marketing. Ms. Capps was initially hired by our bank subsidiary as controller, and was named Chief Financial Officer in 2001. In 2006, Ms. Capps was named Chief Operations Officer. Prior to joining the Company, Ms. Capps was employed for more than three years with the accounting firm of Kraft, Miles & Tatum (Poplar Bluff, Missouri), where she specialized in financial institution audits and taxation. She holds a Bachelor of Science Degree in Business Administration-Accounting from Southeast Missouri State University, Cape Girardeau, Missouri.

Justin G. Cox, age 46, is our Chief Banking Officer and has joint oversight for loan production activity, wealth management and retail banking. Mr. Cox joined our Company in 2010 as a lending officer, as an integral part of the team which established our presence in Springfield, Missouri, through the opening of a loan production office in that market until 2017, when he was named Regional President for the Bank’s west region. Mr. Cox has more than 23 years banking experience. He previously worked for Metropolitan National Bank (Springfield, Missouri), and advanced to the role of Vice President of Lending for that institution. Mr. Cox holds a Bachelor of Science Degree in Business Administration-Marketing & Management from Southwest Baptist University, Bolivar, Missouri.

Mark E. Hecker, age 60, the Company’s Chief Credit Officer, joined our Company in January 2017. Mr. Hecker is responsible for administration of the Company’s credit portfolio, including the approval process for proposed new credits and monitoring of the portfolio’s credit quality. Mr. Hecker has over 36 years of banking experience, having most recently served twelve years with BankLiberty (Liberty, Missouri) as its Chief Lending Officer. Prior to that, Mr. Hecker served as a commercial banker for Midland Bank (Lee’s Summit, Missouri) and its successor organization, Commercial Federal Bank (Omaha, Nebraska) for eight years. Mr. Hecker was employed as an examiner with the FDIC for more than six years and is a Commissioned Bank Examiner. Mr. Hecker holds a Bachelor of Science Degree in Business Administration-Accounting from the University of Central Missouri, Warrensburg, Missouri.

Rick A. Windes, age 62, the Company’s Chief Lending Officer, joined our Company in May 2018. Mr. Windes is responsible for the Company’s loan production. Mr. Windes has 33 years of experience in commercial lending and lending management. Most recently, he served as a regional president in Springfield, Missouri, for Bear State Bank (Little Rock, Arkansas), prior to its merger with Arvest Bank. Previously, he was the senior lender for Metropolitan National Bank (Springfield, Missouri) prior to its acquisition by Bear State Bank. Mr. Windes holds a Bachelor of Science Degree in Business Administration from Truman State University, Kirksville, Missouri, and is a graduate of the Graduate School of Banking at Colorado, Boulder, Colorado.

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Lance K. Greunke, age 55, the Company’s Chief Operations Officer, is responsible for overseeing the Company’s deposit and loan operations and facility management and security functions. Mr. Greunke joined our Company in February 2022 through the Fortune acquisition serving as the Chief Risk Officer responsible for the oversight of the Company’s information technology, information security, internal audit, loan review, BSA, CRA, and compliance functions. Mr. Greunke began his banking career as a part-time teller at Southern Commercial Bank (St. Louis, Missouri) in 1988. Mr. Greunke’s full-time banking career began in 1992 as a staff accountant at Central West End Bank, AFSB (St. Louis, Missouri) where he progressed to Chief Financial Officer. In 2006, after the sale of Central West End Bank, Mr. Greunke joined Reliance Bancshares, Inc. (St. Louis, Missouri), a publicly traded bank holding company as a banking subsidiary Controller. In 2008, Mr. Greunke was Section 32 qualified by the FDIC and Federal Reserve Bank to serve as EVP and CFO of Concord Bancshares, Inc. and Concord Bank (St. Louis, Missouri) and during his tenure he was named Interim President of Concord Bank. In 2012, Mr. Greunke joined Fortune Financial Corporation and FortuneBank (St. Louis, Missouri) as EVP and CFO and in 2016 was promoted to President with oversight of the bank’s daily operations. Mr. Greunke holds a Bachelor of Science in Business Administration with an emphasis in Accounting from the University of Missouri, St. Louis, Missouri.

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PART II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information

The common stock of Southern Missouri Bancorp, Inc., is traded under the symbol “SMBC” on the Nasdaq Global Market. At September 10, 2026, there were 11,013,279 shares of common stock outstanding and approximately 468 common stockholders of record. Certain shares are held in “nominee” or “street” name and accordingly the number of beneficial owners of such shares is not known or included in the foregoing number.

Our cash dividend payout policy is continually reviewed by management and the Board of Directors. The Company intends to continue its policy of paying quarterly dividends; however, future dividend payments will depend upon a number of factors, including capital requirements, regulatory limitations (See “Item 1. Description of Business – Regulation”), the Company’s financial condition, results of operations and the Bank’s ability to pay dividends to the Company. The Company relies significantly upon such dividends originating from the Bank to accumulate earnings for payment of cash dividends to stockholders. See “Item 1A. Risk Factors – Risks Relating to our Common Stock – Regulatory and Contractual Restrictions may limit or prevent us from paying dividends on and repurchasing our common stock.”

Information regarding our equity compensation plans is included in Part II, Item 11 of this Form 10-K.

Stock Repurchases

From time to time, the Company has utilized share repurchase programs. 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. This program was completed during fiscal 2026.

On January 20, 2026, the Board of Directors approved a new program to repurchase up to 550,000 shares of the Company’s common stock, or approximately 5.0% of shares outstanding, following the completion of the Company’s prior repurchase program announced on May 20, 2021, which occurred during the current fiscal year. As of June 30, 2026, 103,508 of these shares had been purchased at an average price of $65.17 per share.

Repurchased shares were purchased at prevailing market prices in the open market or in privately-negotiated transactions, subject to availability and general market conditions, and have been held as treasury shares to be used for general corporate purposes.

From time to time, the Company may utilize a pre-arranged trading plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 to repurchase its shares under its repurchase programs.

The following table summarizes the Company’s stock repurchase activity for each month during the three months ended June 30, 2026.


							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⁾
04/01/26 - 04/30/26 period		—		$	—		—		450,710
05/01/26 - 05/31/26 period		1,504			69.21		1,504		449,206
06/01/26 - 06/30/26 period		2,714			69.04		2,714		446,492
Total		4,218		$	69.10		4,218		446,492

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

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Item 6. Reserved

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion and analysis reviews our consolidated financial statements and other relevant statistical data and is intended to enhance your understanding of our financial condition and results of operations. The information in this section has been derived from the Consolidated Financial Statements and notes thereto, which are included in Item 8 of this Form 10-K. You should read the information in this section in conjunction with the business and financial information regarding us as provided in this Form 10-K.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

The following tables set forth selected consolidated financial information and other financial data of the Company. The summary statement of financial condition information and statement of income information are derived from our consolidated financial statements, which have been audited by Forvis Mazars, LLP. See Item 8. “Financial Statements and Supplementary Data.” Results for past periods are not necessarily indicative of results that may be expected for any future period.


(Dollars in thousands)	At June 30,
Financial Condition Data:	2026			2025			2024			2023			2022
Total assets	$	5,236,381		$	5,019,607		$	4,604,316		$	4,360,211		$	3,214,782
Loans receivable, net		4,336,896			4,048,961			3,797,287			3,571,078			2,686,198
Mortgage-backed securities		354,058			359,494			304,861			270,252			170,585
Cash, interest-bearing time deposits and debt securities		187,683			294,455			184,437			202,523			156,369
Deposits		4,407,846			4,281,368			3,943,059			3,725,540			2,815,075
Securities sold under agreement to repurchase		20,000			15,000			9,398			—			—
Borrowings		130,424			104,052			102,050			133,514			37,957
Subordinated debt		15,766			23,208			23,156			23,105			23,055
Stockholder's equity		590,678			544,692			488,748			446,058			320,772


(Dollars in thousands, except per share data)	For the Year Ended June 30,
Operating Data:	2026			2025			2024			2023			2022
Interest income	$	288,986		$	277,365		$	248,375		$	176,416		$	116,867
Interest expense		116,137			122,749			108,892			49,671			13,300

Net interest income		172,849			154,616			139,483			126,745			103,567
Provision (benefit) for credit losses		11,454			6,523			3,600			17,061			1,487

Net interest income after provision (benefit) for credit losses		161,395			148,093			135,883			109,684			102,080

Noninterest income		27,797			27,984			24,844			26,204			21,203
Noninterest expense		102,088			102,083			97,617			86,425			63,379

Income before income taxes		87,104			73,994			63,110			49,463			59,904
Income taxes		15,265			15,416			12,928			10,226			12,735
Net Income	$	71,839		$	58,578		$	50,182		$	39,237		$	47,169

Basic earnings per share available to common stockholders	$	6.44		$	5.19		$	4.42		$	3.86		$	5.22
Diluted earnings per share available to common stockholders	$	6.43		$	5.18		$	4.42		$	3.85		$	5.21
Dividends per share	$	1.00		$	0.92		$	0.84		$	0.84		$	0.80

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	At June 30,
Other Data:	2026		2025		2024		2023		2022
Number of:
Real Estate Loans	10,655		10,272		10,073		9,707		9,190
Deposit Accounts	158,725		156,155		151,374		144,219		107,038
Full service offices	64		63		63		63		49
Limited service offices	2		2		3		3		2
Loan production offices	3		2		2		—		—


		At or for the year ended June 30,
Key Operating Ratios:		2026		2025		2024		2023		2022
Return on assets (net income divided by average assets)		1.41	%	1.21	%	1.10	%	1.03	%	1.59	%

Return on average common equity (net income available to common stockholders divided by average common equity)		12.66		11.37		10.74		10.39		15.44

Average equity to average assets		11.12		10.63		10.25		9.91		10.30

Interest rate spread (spread between weighted average rate on all interest-earning assets and all interest-bearing liabilities)		3.10		2.84		2.71		3.21		3.61

Net interest margin (net interest income as a percentage of average interest-earning assets		3.62		3.40		3.27		3.54		3.72

Noninterest expense to average assets		2.00		2.11		2.14		2.27		2.14

Average interest-earning assets to average interest-bearing liabilities		121.39		120.71		121.96		123.57		124.20

Allowance for credit losses to gross loans⁽¹⁾		1.25		1.26		1.36		1.32		1.22

Allowance for credit losses to nonperforming loans⁽¹⁾		198.56		224.08		786.17		624.93		806.02

Net charge-offs (recoveries) to average outstanding loans during the period		0.18		0.17		0.05		0.02		0.00

Ratio of nonperforming assets to total assets⁽¹⁾		0.64		0.47		0.23		0.26		0.20

Dividend payout ratio		15.50		17.72		18.98		22.00		15.25

(1)

Total loans before ACL and deferred loan fees at end of period.

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OVERVIEW

Southern Missouri Bancorp, Inc., is a Missouri corporation originally organized for the principal purpose of becoming the holding company of Southern Bank. The principal business of Southern Bank consists of attracting deposits from the communities it serves and investing those funds in loans secured by residential and commercial real estate, as well as commercial business and consumer loans. These funds have also been used to purchase municipal, corporate, and asset-backed investment securities, residential and commercial mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs), U.S. government and federal agency obligations and other permissible securities.

Southern Bank’s results of operations are primarily dependent on the levels of its net interest margin and noninterest income, and its ability to control operating expenses and net charge-offs. Net interest margin is dependent primarily on the difference or spread between the average yield earned on interest-earning assets (including loans, mortgage-related securities, and investments) and the average rate paid on interest-bearing liabilities (including deposits, securities sold under agreements to repurchase, and borrowings), as well as the relative amounts of these assets and liabilities. Southern Bank is subject to interest rate risk to the degree that its interest-earning assets mature or reprice at different times, or on a varying basis, from its interest-bearing liabilities.

Southern Bank’s noninterest income consists primarily of fees charged on transaction and loan accounts, interchange income from customer debit and ATM card use, gains on sales of loans, trust and wealth management services, insurance brokerage commissions, and increased cash surrender value of bank owned life insurance (BOLI). Southern Bank’s operating expenses include: employee compensation and benefits, occupancy and data processing expenses, legal and professional fees, federal deposit insurance premiums, amortization of intangible assets, and other general and administrative expenses.

Southern Bank’s operations are significantly influenced by general economic conditions, including monetary and fiscal policies of the U.S. government and the Federal Reserve Board. Additionally, Southern Bank is subject to policies and regulations issued by financial institution regulatory agencies, including the Federal Reserve, the Missouri Division of Finance, and the Federal Deposit Insurance Corporation. Each of these factors may influence interest rates, loan demand, prepayment rates and deposit flows. Interest rates available on competing investments as well as general market interest rates influence the Bank’s cost of funds. Lending activities are affected by the demand for real estate and other types of loans, which in turn is affected by the interest rates at which such financing may be offered. Lending activities are funded through the attraction of deposit accounts consisting of checking accounts, passbook and statement savings accounts, money market deposit accounts, certificate of deposit accounts with terms of 60 months or less, securities sold under agreements to repurchase, advances from the Federal Home Loan Bank of Des Moines, and brokered deposits. The Bank intends to continue to focus on its lending programs for one- to four-family and multi-family residential real estate, commercial real estate, commercial business, and consumer financing on loans secured by properties or collateral located in its primary lending area or to borrowers who operate within that area.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting estimates are those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant, and provide qualitative and quantitative information necessary to understand the estimation uncertainty and the impact the critical accounting estimate has had or is reasonably likely to have on financial condition or results of operations to the extent the information is material and reasonably available. This information should include why each critical accounting estimate is subject to uncertainty and, to the extent the information is material and reasonably available, how much each estimate and/or assumption has changed over a relevant period, and sensitivity of the reported amount to the methods, assumptions and estimates underlying its calculation.

The Company has established various accounting policies, which govern the application of accounting principles generally accepted in the United States of America in the preparation of our financial statements. Our significant accounting policies are described in Item 8 of this Form 10-K under the Notes to the Consolidated Financial

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Statements. Certain accounting policies involve significant judgments and assumptions by management that have a material impact on the carrying value of certain assets and liabilities; management considers such accounting policies to be critical accounting policies. The judgments and assumptions used by management are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions made by management, actual results could differ from these judgments and estimates that could have a material impact on the carrying values of assets and liabilities and the results of operations of the Company.

Allowance for Credit Losses. The Company's ACL is its estimate of credit losses expected in the loan portfolio, on unfunded lending commitments, and held-to maturity securities over the expected life of those assets or in securities available-for-sale when credit loss is identified, which is limited to the difference in fair value and cost. While these estimates are based on substantive methods for determining the required allowance, actual outcomes may differ significantly from estimated results, especially when determining required allowances for larger, complex commercial credits or unfunded lending commitments to commercial borrowers. Consumer loans, including single family residential real estate, are individually smaller and generally behave in a similar manner, and loss estimates for these credits are considered more predictable. Additionally, the Company estimates the ACL as a calculation of expected lifetime credit losses utilizing a forward-looking forecast of macroeconomic conditions, which may differ significantly from actual results. Further discussion of the methodology used in establishing the allowance is provided in Note 1 and Note 3 to the Notes to the Consolidated Financial Statements included in Item 8 of this Form 10-K, and in the “Financial Condition – Loans” and “Allowance for Credit Losses” sections of this Item 7.

FINANCIAL CONDITION

General. The Company experienced balance sheet growth in fiscal 2026, with total assets of $5.2 billion at June 30, 2026, reflecting an increase of $216.8 million, or 4.3%, as compared to June 30, 2025. Growth primarily reflected increases in net loans receivable and investments in tax credits in the other assets category, partially offset by decreases in cash equivalents and time deposits and available-for-sale (AFS) securities.

Cash equivalents and time deposits. Cash equivalents and time deposits were $91.0 million at June 30, 2026, a decrease of $102.1 million, or 52.9%, as compared to June 30, 2025. The decrease was primarily utilized to fund loan generation that outpaced deposit growth during the period, which was partially offset by earnings retained after the payment of cash dividends.

Investments. AFS securities were $450.8 million at June 30, 2026, down $10.1 million, or 2.2%, as compared to June 30, 2025.

Loans. Loans, net of the ACL, were $4.3 billion at June 30, 2026, an increase of $287.9 million, or 7.1%, as compared to June 30, 2025. Gross loan balances increased by $291.2 million, or 7.1%, while the ACL attributable to outstanding loan balances increased $3.3 million, or 6.4%, as compared to June 30, 2025. See “Allowance for Credit Losses” below.

The Company noted growth primarily in 1-4 family residential real estate, agriculture real estate, multi-family real estate, commercial and industrial, non-owner occupied commercial real estate, owner occupied commercial real estate, and agriculture production loan balances. These increases were partially offset by decreases in construction and land development, and consumer loan balances.

Nonperforming loans (NPLs) were $27.7 million, or 0.63% of gross loans, at June 30, 2026, as compared to $23.0 million, or 0.56% of gross loans, at June 30, 2025. The year-over-year increase in nonaccrual loans was primarily attributable to three borrower relationships: one commercial relationship with a total loan balance of $6.5 million consisting of multiple related loans collateralized by commercial real estate and equipment; a second consisting of two related agricultural production loans totaling $2.2 million secured by crops and equipment; and the third, which was added during the quarter ended June 30, 2026, consisting of several related agricultural production loans totaling $5.9 million secured by crop insurance claims, restricted cash, crops, and equipment. Nonperforming assets (NPAs) were $33.5 million, or 0.64% of total assets, at June 30, 2026, as compared to $23.7 million, or 0.47% of total assets, at June 30, 2025.

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Allowance for Credit Losses. The ACL at June 30, 2026, totaled $54.9 million, representing 1.25% of gross loans and 199% 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 June 30, 2026, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. Economic uncertainty continues, including the potential effects of elevated and uncertain interest rates, as inflation remains above the Federal Reserve's long-term target, and evolving labor market and broader economic conditions. The increase in the ACL was primarily attributable to higher reserves required for pooled loans, driven largely by loan growth and the Bank’s annual ACL model update, which reflected an increase in modeled loss drivers compared to the prior assessment as of June 30, 2025, and increased reserves on agriculture loans reflecting ongoing pressure in the agricultural sector. This was partially offset by net charge-offs. In the fiscal year ended June 30, 2026, net charge offs were $10.3 million due primarily to a $2.6 million partial charge-off of the agricultural production loan relationship which was placed on nonaccrual status during the fiscal year, a previously identified nonperforming commercial loan relationship that was transferred to OREO following foreclosure resulting in a charge-off of $1.2 million, and a $1.3 million net charge-off for a special purpose CRE relationship that was reserved for in the prior fiscal year. For fiscal year 2026, net charge-offs as a percentage of average loans were 0.18%, as compared to 0.17% for fiscal year 2025. See also, “Provision for Credit Losses, under Comparison of Operating Results for the Years Ended June 30, 2026 and 2025” and Note 1 and Note 3 of the Notes to Consolidated Financial Statements, “Critical Accounting Policies”, and “Asset Quality” in Item 1 of this Form 10-K.

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 holds no 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. For a summary of changes in the ACL during the current and prior fiscal years, and a breakdown of the ACL by loan category as of the current and prior fiscal year end, see Description of Business – Asset Quality, Allowance for Credit Losses, contained within Item 1 of this Form 10-K.

The estimate involves consideration of quantitative and qualitative factors relevant to the loans as segmented by the Company, and is based on an evaluation, at the reporting date, of historical loss experience and peer data, 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

●Quantified supported model adjustments and general imprecision adjustments

Premises and Equipment. Premises and equipment totaled $93.2 million at June 30, 2026, down $2.8 million as compared to $96.0 million at June 30, 2025. An increase in depreciation was partially offset by purchases of premises, furniture, fixtures, equipment, and land.

BOLI. The Bank has purchased “key person” life insurance policies (BOLI) on employees at various times since fiscal 2003, and has acquired additional BOLI in connection with certain mergers. At June 30, 2026, the cash surrender value of all such policies was $77.1 million, up $1.4 million, or 1.9%, as compared to June 30, 2025.

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Intangible Assets. The July 2009 acquisition of the Southern Bank of Commerce resulted in goodwill of $126,000. The October 2013 acquisition of Ozarks Legacy Community Financial, Inc., resulted in goodwill of $1.5 million. The August 2014 acquisition of Peoples Service Company, Inc., and its subsidiary, Peoples Bank of the Ozarks (the “Peoples Acquisition”) resulted in goodwill of $3.0 million. The June 2017 acquisition of Tammcorp, Inc., and its subsidiary, Capaha Bank (the “Capaha Acquisition”) resulted in goodwill of $4.1 million and a $3.4 million core deposit intangible which was amortized over a seven-year period using the straight-line method. The February 2018 acquisition of SMB-Marshfield resulted in goodwill of $4.4 million and a $1.3 million core deposit intangible which was amortized over a seven-year period using the straight-line method. The November 2019 Gideon acquisition resulted in goodwill of $1.0 million and a $4.1 million core deposit intangible which was amortized over a seven-year period using the straight-line method. The May 2020 Central Federal Acquisition resulted in a bargain purchase gain of $123,000 and a $540,000 core deposit intangible which was amortized over a six-year period using the straight-line method. The December 2021 Cairo acquisition resulted in goodwill of $442,000 and a $168,000 core deposit intangible which is being amortized over a seven-year period using the straight-line method. The February 2022 Fortune acquisition resulted in goodwill of $12.8 million and a $1.6 million core deposit intangible which is being amortized over a seven-year period using the straight-line method. The January 2023 Citizens merger resulted in goodwill of $23.5 million, as well as a $22.1 million core deposit intangible which is being amortized over a ten-year period using the straight-line method, and a $2.6 million intangible related to the acquired trust and wealth management business line which is being amortized over a ten-year period using the straight-line method. Goodwill from these acquisitions is not being amortized, but is tested for impairment at least annually. Mortgage and SBA servicing rights totaling $2.8 million are also included in intangible assets.

Prepaid expenses and other assets. Prepaid expenses and other assets totaled $68.1 million at June 30, 2026, an increase of $41.7 million as compared to June 30, 2025. The increase was due primarily to higher low-income housing tax credit equity investments (LIHTCs). The Company records LIHTCs in prepaid expenses and other assets in the consolidated balance sheets and totaled $34.3 million as of June 30, 2026, as compared to $196,000 at June 30, 2025. For all legally binding unfunded equity commitments, the Company increases its recorded investment and recognizes a liability. As of June 30, 2026, the Company had liabilities of $29.4 million and none at June 30, 2025, related to these investments that are included in accounts payable and other liabilities in the consolidated balance sheets.

Deposits. Deposits were $4.4 billion at June 30, 2026, an increase of $126.5 million, or 3.0%, as compared to June 30, 2025. Certificate of deposit growth was relatively balanced between brokered and non-brokered deposits. Nonmaturity deposit growth was primarily attributable to increases in non-interest bearing deposits, savings accounts, and brokered money market deposit accounts, partially offset by declines in NOW accounts and non-brokered money market deposit accounts.

Public unit balances totaled $517.8 million at June 30, 2026, a decrease of $33.0 million compared to June 30, 2025, primarily due to competitive pricing dynamics on certain time deposits and normal fluctuations in operating account balances. Brokered deposits totaled $290.6 million at June 30, 2026, an increase of $55.6 million as compared to June 30, 2025, primarily attributable to brokered certificates of deposit. The average loan-to-deposit ratio for the fourth quarter of fiscal 2026 was 99.7%, as compared to 94.5% for the same period of the prior fiscal year.

Borrowings. FHLB advances were $130.4 million at June 30, 2026, an increase of $26.4 million, or 25.3%, as compared to June 30, 2025. Outstanding FHLB daily reset borrowings were $28.4 million as of June 30, 2026, as compared to none outstanding as of June 30, 2025.

Subordinated Debt. In March 2004, $7.0 million of Floating Rate Capital Securities of Southern Missouri Statutory Trust I, with a liquidation value of $1,000 per share were issued. The securities bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2034. In connection with its October 2013 acquisition of Ozarks Legacy, the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by Ozarks Legacy in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are redeemable at par, and mature in 2035. The carrying value of these debt securities was approximately $2.8 million at June 30, 2026 and at June 30, 2025. In connection with the Peoples Acquisition, the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by Peoples, in connection with the sale of trust preferred securities, bear interest at a floating

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rate based on SOFR, are redeemable at par, and mature in 2035. The carrying value of these debt securities was approximately $5.7 million at June 30, 2026, and $5.6 million 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 were to bear interest thereafter at SOFR plus 3.77%. The Company retired this debt in May 2026 when the notes became redeemable. The carrying value of the note was $0 at June 30, 2026 and approximately $7.5 million at June 30, 2025.

Stockholders’ Equity. The Company’s stockholders’ equity was $590.7 million at June 30, 2026, an increase of $46.0 million, or 8.4%, as compared to June 30, 2025. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $1.6 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to tighter credit spreads and continued principal paydowns within the investment portfolio. The AOCL totaled $9.8 million at June 30, 2026, as 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 $18.6 million utilized to repurchase 317,000 shares of the Company’s common stock during fiscal 2026 at an average price of $58.59 per share.

COMPARISON OF OPERATING RESULTS FOR THE YEARS ENDED JUNE 30, 2026 AND 2025

Net Income. The Company’s net income for the fiscal year ended June 30, 2026, was $71.8 million, an increase of $13.3 million, or 22.6%, as compared to the prior fiscal year.

Net Interest Income. Net interest income for fiscal 2026 was $172.8 million, an increase of $18.2 million, or 11.8%, when compared to the prior fiscal year. The increase was attributable to a 4.9% increase in the average balance of interest-earning assets, and an increase in the net interest margin, from 3.40% to 3.62%. Average earning asset balance growth was due primarily to loan growth, partially offset by decreases in investment securities. The decrease in the average cost of funding, primarily attributable to a lower cost of deposits and a decline in the cost of borrowings, more than offset the decrease in earning asset yields, and contributed to the expansion of net interest margin as compared to 2025.

Interest Income. Interest income for fiscal 2026 was $289.0 million, an increase of $11.6 million, or 4.2%, when compared to the prior fiscal year. The increase was due to an increase of $222.4 million, or 4.9%, in the average balance of interest-earning assets, partially offset by a four-basis point decrease in the average yield earned on interest-earning assets, from 6.09% in fiscal 2025, to 6.05% in fiscal 2026.

Interest income on loans receivable for fiscal 2026 was $265.2 million, an increase of $14.4 million, or 5.7%, when compared to the prior fiscal year. The increase was due to a $244.3 million, or 6.1%, increase in the average balance of loans receivable, combined with a three-basis point decrease in the average yield earned on loans receivable. The decrease in the average yield was attributed to originations and repricing of loans and borrower refinancings at current lower market interest rates compared to the average loan portfolio rates of the prior fiscal year.

Interest income on the investment portfolio and other interest-earning assets was $23.8 million for fiscal 2026, a decrease of $2.7 million, or 10.3%, when compared to the prior fiscal year. The decrease was attributable to a $22.0 million, or 3.8%, decrease in the average balance of such assets, combined with a 31-basis point decrease in the average yield of this portfolio, to 4.28%, in fiscal 2026. The decrease in these average balances was due to decreases in other investment securities and correspondent balances, partially offset by increases in mortgage-backed and collateralized mortgage obligations. The decrease in yield was primarily attributable to the decrease in the short end of the yield curve compared to the year ago period.

Interest Expense. Interest expense was $116.1 million for fiscal 2026, a decrease of $6.6 million, or 5.4%, when compared to the prior fiscal year. The decrease was due to a 30-basis point decrease in the average rate paid on interest-bearing liabilities, to 2.95% in fiscal 2026, from 3.25% in fiscal 2025, partially offset by an increase of $162.0 million, or 4.3%, in the average balance of interest-bearing liabilities.

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Interest expense on deposits was $109.2 million for fiscal 2026, a decrease of $6.6 million, or 5.7%, as compared to the prior fiscal year. The decrease was due to a 30-basis point decrease in the average rate paid on interest-bearing deposits, partially offset by a $155.9 million, or 4.3%, increase in the average balance of those deposits. The decrease in the average rate paid on deposits was attributable primarily to deposits rates, particularly certificates of deposits and savings accounts, adjusting down to lower market interest rates over the course of fiscal 2026, when compared to average rates in fiscal 2025.

Interest expense on securities sold under agreements to repurchase was $806,000 for fiscal 2026, an increase of $40,000, or 5.2%, when compared to the prior fiscal year. The increase was due to a $5.2 million, or 36.2%, increase in the average balance of these securities sold, partially offset by a 122-basis point decrease in the average rate paid.

Interest expense on FHLB advances was $4.7 million for fiscal 2026, an increase of $83,000, or 1.8%, when compared to the prior fiscal year. The increase was due primarily to a $1.8 million, or 1.6%, increase in the average balance of these advances, while the average rate paid on advances was unchanged from the prior year at 4.16%.

Interest expense on subordinated debt was $1.5 million for fiscal year 2026, a decrease of $171,000, or 10.5%, when compared to the prior fiscal year. The decrease was due to a 49-basis point decrease in the average rate paid on subordinated debt, attributable to lower market interest rates over the course of the fiscal year, which impacted adjustable-rate debt.

Provision for Credit Losses. The Company recorded a provision for credit losses (PCL) of $11.5 million for fiscal 2026, as compared to a PCL of $6.5 million for the prior fiscal year. In fiscal 2026, the Company had an $11.0 million PCL for on-balance sheet exposure and a $482,000 PCL for off-balance sheet exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit. The factors considered when estimating a required ACL and PCL for loan balances outstanding is detailed below in “Note 3: Loans and Allowance for Credit Losses”.

Noninterest Income. Noninterest income was $27.8 million for fiscal 2026, a decrease of $187,000, or 0.7%, when compared to the prior fiscal year. The decrease was primarily attributable to a decrease in 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. Partially offsetting that decrease were increases in deposit account charges, bank card interchange income, BOLI earnings, wealth management fees, and insurance brokerage commissions. Increased deposit account charges and related fees were primarily attributable to an increase in non-sufficient fund activity and increased wire fee income primarily due to an increase of our wire fee rates and elevated wire activity.

Noninterest Expense. Noninterest expense was $102.1 million for fiscal 2026, relatively unchanged when compared to the prior fiscal year. Increases in data processing costs for new systems, software licensing costs, occupancy expenses from higher building maintenance expenses, advertising expenses and IT equipment purchases, were offset by decreases in compensation expenses recognized in recent periods as a result of our refined accounting for loan origination expenses under ASC 310-20, and by decreases in legal and professional fees, and intangible amortization.

Provision for Income Taxes. The Company recorded an income tax provision of $15.3 million for fiscal 2026, a decrease of $151,000, or 1.0%, as compared to the prior fiscal year, which was attributable to benefits recognized on tax credit investments, partially offset by tax provisions on higher pretax income. The effective tax rate was 17.5% for fiscal 2026, as compared to 20.8% for fiscal 2025.

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COMPARISON OF OPERATING RESULTS FOR THE YEARS ENDED JUNE 30, 2025 AND 2024

Net Income. The Company’s net income for the fiscal year ended June 30, 2025, was $58.6 million, an increase of $8.4 million, or 16.7%, as compared to the prior fiscal year.

Net Interest Income. Net interest income for fiscal 2025 was $154.6 million, an increase of $15.1 million, or 10.8%, when compared to the prior fiscal year. The increase was attributable to a 6.7% increase in the average balance of interest-earning assets, and an increase in the net interest margin, from 3.27% to 3.40%. Average earning asset balance growth was due primarily to loan growth, increases in investment securities, and funds held with correspondent banks. The increase in earning asset yields, primarily attributable to the increase in loan yields, more than offset the increase in average cost of funding, contributed to the expansion in net interest margin as compared to 2024.

Interest Income. Interest income for fiscal 2025 was $277.4 million, an increase of $29.0 million, or 11.7%, when compared to the prior fiscal year. The increase was due to an increase of $286.1 million, or 6.7%, in the average balance of interest-earning assets, combined with a 27-basis point increase in the average yield earned on interest-earning assets, from 5.82% in fiscal 2024, to 6.09% in fiscal 2025.

Interest income on loans receivable for fiscal 2025 was $250.8 million, an increase of $28.3 million, or 12.7%, when compared to the prior fiscal year. The increase was due to a $257.3 million, or 6.9%, increase in the average balance of loans receivable, combined with a 33-basis point increase in the average yield earned on loans receivable. The increase in the average yield was attributed to originations and repricing of loans and borrower refinancings at current higher market interest rates compared to the average loan portfolio rates of the prior fiscal year.

Interest income on the investment portfolio and other interest-earning assets was $26.5 million for fiscal 2025, an increase of $656,000, or 2.5%, when compared to the prior fiscal year. This increase was attributable to a $28.8 million, or 5.2%, increase in the average balance of such assets. The increase in these average balances were due to increases in mortgage-backed and collateralized mortgage obligations, and correspondent balances. This was partially offset by decreases in other investment securities and FHLB stock, and a decrease in the average yield of this portfolio of 12 basis points, to 4.59%, in fiscal 2025. The decrease in yield was primarily attributable to the decrease in the short end of the yield curve compared to the year ago.

Interest Expense. Interest expense was $122.7 million for fiscal 2025, an increase of $13.9 million, or 12.7%, when compared to the prior fiscal year. The increase was due to a 14-basis point increase in the average rate paid on interest-bearing liabilities, to 3.25% in fiscal 2025, from 3.11% in fiscal 2024, combined with an increase of $273.4 million, or 7.8%, in the average balance of interest-bearing liabilities.

Interest expense on deposits was $115.8 million for fiscal 2025, an increase of $14.1 million, or 13.8%, as compared to the prior fiscal year. The increase was due to a 15-basis point increase in the average rate paid on interest-bearing deposits, combined with the $282.2 million, or 8.4%, increase in the average balance of those deposits. The increase in the average rate paid on deposits was attributable primarily to deposits rates, particularly certificates of deposit and savings accounts, adjusting up to higher market interest rates over the course of fiscal 2025, when compared to average rates in fiscal 2024.

Interest expense on securities sold under agreements to repurchase was $766,000 for fiscal 2025, an increase of $315,000, or 69.8%, when compared to the prior fiscal year. The increase was due primarily to a $4.9 million, or 52.5%, increase in the average balance of these securities sold and a 55-basis point increase in the average rate paid on advances. The increase in the average rate paid was attributable primarily to the term advances being made in a rate environment with higher market interest rates, compared to the portfolio of term advances in the prior year.

Interest expense on FHLB advances was $4.6 million for fiscal 2025, a decrease of $411,000, or 8.2%, when compared to the prior fiscal year. The decrease was due primarily to a $13.7 million, or 11.1%, decrease in the average balance of these advances, which was partially offset by a 13-basis point increase in the average rate paid on advances. The increase in the average rate paid was attributable primarily to the maturity of term advances with interest rates below the portfolio’s average rate.

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Interest expense on subordinated debt was $1.6 million for fiscal year 2025, a decrease of $114,000, or 6.5%, when compared to the prior fiscal year. The decrease was due primarily to a 51-basis point decrease in the average rate paid on subordinated debt. The decrease in the average rate paid was attributable primarily to lower market interest rates over the course of the fiscal year, which impacted adjustable-rate debt.

Provision for Credit Losses. The Company recorded a provision for credit losses (PCL) of $6.5 million for fiscal 2025, as compared to a PCL of $3.6 million for the prior fiscal year. In fiscal 2025, the Company had a $5.8 million PCL for on-balance sheet exposure and a $676,000 PCL for off-balance sheet exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances of loans and an increase in the expected funding rate on available credit.

Noninterest Income. Noninterest income was $28.0 million for fiscal 2025, an increase of $3.1 million, or 12.6%, when compared to the prior fiscal year. In the prior year, $1.5 million net realized losses on AFS securities were recognized, compared to a net realized gain of $48,000 in fiscal 2025. In addition, the increase was attributable to increased other loan fees and deposit account charges and related fees. The increase in other loan fees was primarily due to an increase in loan origination volume, in both commercial and residential real estate loans. Increased deposit account charges and related fees were primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected. These increases were partially offset by lower other income, loan late charges, and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. This has resulted in lower other fee income for fiscal 2025 of $701,000, as current year tax credit amortization for investments accounted for under proportional amortization reduces tax provisions. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which resulted in a negative adjustment of $108,000 in fiscal 2025, as compared to a benefit of $131,000 in fiscal 2024, due to changes in market rates and prepayment assumptions.

Noninterest Expense. Noninterest expense was $102.1 million for fiscal 2025, an increase of $4.5 million, or 4.6%, when compared to the prior fiscal year. The increase was primarily attributable to increases in compensation and benefits and legal and professional fees. The increase in compensation and benefits as compared to the prior year period was primarily due to increased headcount, as well as annual merit increases and inflation adjustments. The Company experienced elevated legal and professional fees associated with consulting costs related to a performance improvement project with one-time cost for this review totaling $840,000 and consulting expenses to negotiate a new contract with a large vendor totaling $425,000. These increases as compared to the prior year were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

Provision for Income Taxes. The Company recorded an income tax provision of $15.4 million for fiscal 2025, an increase of $2.5 million, or 19.2%, as compared to the prior fiscal year, which was attributable to higher pre-tax income and an adjustment of tax accruals of $650,000 attributable to completed merger activity. This was partially offset by the change in accounting for recognition of tax credits accounted for under proportional amortization, as mentioned above. The effective tax rate was 20.8% for fiscal 2025, as compared to 20.5% for fiscal 2024.

LIQUIDITY AND CAPITAL RESOURCES

The Bank’s primary potential sources of funds include deposit growth, FHLB advances, amortization and prepayment of loan principal, investment maturities and sales, and capital generated from ongoing operations. While scheduled repayments on loans and securities as well as the maturity of short-term investments are a relatively predictable source of funding, deposit flows and loan and security prepayment rates are significantly influenced by factors outside of the Bank’s control, including general economic conditions and market competition. The Bank has relied on FHLB advances as a stable source for funding cash or liquidity needs, particularly for longer maturities.

The Bank uses its liquid assets as well as other funding sources to meet ongoing commitments, to fund loan demand, to repay maturing certificates of deposit and FHLB advances, to make investments, to fund other deposit

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withdrawals, and to meet operating expenses. At June 30, 2026, the Bank had outstanding commitments to extend credit of $948.5 million (including $692.5 million in unused lines of credit). Total commitments to originate fixed-rate loans with terms in excess of one year were $182.4 million at rates ranging from 4.65% to 8.25%, with a weighted-average rate of 6.59%. Management anticipates that current funding sources will be adequate to meet foreseeable liquidity needs.

For the fiscal year ended June 30, 2026, Southern Missouri increased deposits by $126.5 million and FHLB advances by $26.4 million. During the prior fiscal year, the Bank increased deposits by $338.3 million, and increased FHLB advances by $2.0 million. At June 30, 2026, the Bank reported $1.6 billion of its single-family residential, home equity, and commercial real estate loan portfolios as eligible collateral to the FHLB for available credit of approximately $1.0 billion, of which $130.4 million was advanced, while $656,000 was encumbered in relation to residential real estate loans sold onto the secondary market through the FHLB. The Bank had also pledged $409.1 million of its agricultural real estate and agricultural operating and equipment loans to the Federal Reserve Bank of St. Louis’s discount window for available credit of approximately $355.4 million, as of June 30, 2026, none of which was advanced. In addition, as of June 30, 2026, the Bank had other assets available to pledge to the FHLB and Federal Reserve to access additional liquidity. In total, FHLB borrowings are limited to 45% of Bank assets, or approximately $2.3 billion as most recently reported by the FHLB as of June 30, 2026, which means that an amount up to $2.2 billion may still be eligible to be borrowed from the FHLB, subject to available collateral. Along with the ability to borrow from the FHLB and Federal Reserve Bank of St. Louis, management believes its liquid resources will be sufficient to meet the Company’s liquidity needs.

Liquidity management is an ongoing responsibility of the Bank’s management. The Bank adjusts its investment in liquid assets based upon a variety of factors including (i) expected loan demand and deposit flows, (ii) anticipated investment and FHLB advance maturities, (iii) the impact on profitability, and (iv) asset/liability management objectives.

At June 30, 2026, the Bank had $1.4 billion in CDs maturing within one year and $2.7 billion in non-maturity deposits, as compared to $1.2 billion in CDs maturing within one year and $2.6 billion in non-maturity deposits as of June 30, 2025. Management believes that most maturing interest-bearing liabilities will be retained or replaced by new interest-bearing liabilities. Also, at June 30, 2026, the Bank had $28.4 million in overnight advances from the FHLB, $37.0 million in term FHLB advances maturing within one year, and $65.0 million in FHLB advances with a maturity date in excess of one year. Of the advances with maturity dates in excess of one year, none was eligible for early redemption by the lender within one year.

We also incur capital expenditures on an ongoing basis to expand and improve our product offerings, enhance and modernize our technology infrastructure, and to introduce new technology-based products to compete effectively in our markets. We evaluate capital expenditure projects based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and customer retention) and our expected return on investment. The amount of capital investment is influenced by, among other things, current and projected demand for our services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations. At June 30, 2026, we had other future obligations and accrued expenses of $53.9 million. Based on our current capital allocation objectives, during fiscal 2026 we project expending approximately $8.0 million to $11.0 million of cash for capital investment in technology, property, plant and equipment. In addition, for the fiscal year ending June 30, 2026, we project that our fixed commitments will include (i) $1.0 million of operating and finance lease and other fixed payments and (ii) $1.1 million of scheduled interest payments on subordinate notes. We believe that our liquid assets combined with the available lines of credit provide adequate liquidity to meet our current financial obligations for at least the next 12 months.

REGULATORY CAPITAL

Federally insured financial institutions are required to maintain minimum levels of regulatory capital. Federal Reserve regulations establish capital requirements, including a tier 1 leverage (or core capital) requirement and risk-based capital requirements. The Federal Reserve Board is also authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis.

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At June 30, 2026, the Bank exceeded regulatory capital requirements with tier 1 capital, total risk-based capital, and common equity tier 1 capital of $536.9 million, $592.4 million and $536.9 million, respectively. The Bank’s tier 1 capital represented 10.45% of total adjusted assets and 12.12% of total risk-weighted assets, while total risk-based capital was 13.37% of total risk-weighted assets, and common equity tier 1 capital was 12.12% of total risk-weighted assets. To be considered adequately capitalized under the FDIC Prompt Corrective Action (PCA) guidelines, the Bank must maintain tier 1 capital levels of at least 4.0% of adjusted total assets and 6.0% of risk-weighted assets, total risk-based capital of 8.0% of risk-weighted assets, and common equity tier 1 capital of 4.5% of risk-weighted assets. To be considered well capitalized, the Bank must maintain tier 1 capital levels of at least 5.0% of adjusted total assets and 8.0% of risk-weighted assets, total risk-based capital of 10.0% of risk-weighted assets, and common equity tier 1 capital of 6.5% of risk-weighted assets.

At June 30, 2026, the Company exceeded regulatory capital requirements with tier 1 capital, total risk-based capital, and common equity tier 1 capital of $562.9 million, $619.0 million and $547.2 million, respectively. The Company’s tier 1 capital represented 11.03% of total adjusted assets and 12.56% of total risk-weighted assets, while total risk-based capital was 13.81% of total risk-weighted assets, and common equity tier 1 capital was 12.20% of total risk-weighted assets. Under 12 CFR Part 217 – Capital Adequacy of Bank Holding Companies, Savings and Loan Holding Companies, and State Member Banks (Regulation Q), the Company is subject to the following minimum regulatory capital requirements: common equity tier 1 capital ratio of 4.5%, tier 1 capital ratio of 6%, total capital ratio of 8% of risk-weighted assets, and leverage ratio of 4%.

See Item 1 – Business – Regulation, and Note 12 of the Notes to the Consolidated Financial Statements contained in Item 8 of this Form 10-K for additional detail on the Company’s capital requirements.

IMPACT OF INFLATION

The consolidated financial statements and related data presented herein have been prepared in accordance with U.S. generally accepted accounting principles, which require the measurement of financial position and operating results in historical dollars without considering changes in the relative purchasing power of money over time due to inflation. The primary impact of inflation on the operations of the Company is reflected in increased operating costs. Unlike most industrial companies, virtually all of the assets and liabilities of a financial institution are monetary in nature. As a result, changes in interest rates generally have a more significant impact on a financial institution’s performance than does inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. In the current interest rate environment, liquidity and maturity structure of the Company’s assets and liabilities are critical to the maintenance of acceptable performance levels.

AVERAGE BALANCE, INTEREST AND AVERAGE YIELDS AND RATES

The following table sets forth certain information relating to the Company’s average interest-earning assets and interest-bearing liabilities and reflects the average yield on assets and the average cost of liabilities for the periods indicated. These yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the years indicated. Nonaccrual loans are included with other noninterest-earning assets.

The table also presents information with respect to the difference between the weighted-average yield earned on interest-earning assets and the weighted-average rate paid on interest-bearing liabilities, or interest rate spread, which financial institutions have traditionally used as an indicator of profitability. Another indicator of an institution’s net interest income is its net yield (or net interest margin) on interest-earning assets, which is its net interest income divided by the average balance of interest-earning assets. Net interest income is affected by the interest rate spread and by the relative amounts of interest-earning assets and interest-bearing liabilities. When interest-earning assets approximate or exceed interest-bearing liabilities, any positive interest rate spread will generate net interest income.

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	Years Ended June 30,
	2026							2025							2024
(dollars in thousands)	Average			Interest and		Yield/		Average			Interest and		Yield/		Average			Interest and		Yield/
	Balance			Dividends		Cost		Balance			Dividends		Cost		Balance			Dividends		Cost
Interest-earning assets:
Mortgage loans ⁽¹⁾	$	3,326,871		$	202,141	6.08	%	$	3,175,179		$	190,062	5.99	%	$	3,009,263		$	168,894	5.61	%
Other loans ⁽¹⁾		892,896			63,067	7.06			800,247			60,784	7.60			708,881			53,618	7.56
Total net loans		4,219,767			265,208	6.28			3,975,426			250,846	6.31			3,718,144			222,512	5.98
Mortgage-backed securities		361,359			15,554	4.30			356,293			16,567	4.65			304,778			14,631	4.80
Investment securities ⁽²⁾		117,339			4,962	4.23			130,445			5,808	4.45			165,307			6,877	4.16
Other interest-earning assets		77,350			3,262	4.22			91,278			4,144	4.54			79,116			4,355	5.50
TOTAL INTEREST- EARNING ASSETS ⁽¹⁾		4,775,815			288,986	6.05			4,553,442			277,365	6.09			4,267,345			248,375	5.82
Other noninterest-earning assets ⁽³⁾		325,627			—	—			291,057			—	—			290,952			—	—
TOTAL ASSETS	$	5,101,442			288,986	—		$	4,844,499			277,365	—		$	4,558,297			248,375	—

Interest-bearing liabilities:
Savings accounts	$	697,532			16,275	2.33		$	584,185			15,733	2.69		$	382,713			8,176	2.14
NOW accounts		1,129,614			19,905	1.76			1,153,650			22,249	1.93			1,265,325			26,528	2.10
Money market accounts		330,678			8,549	2.59			338,132			9,735	2.88			403,170			12,596	3.12
Certificates of deposit		1,622,647			64,480	3.97			1,548,584			68,056	4.39			1,291,163			54,406	4.21
TOTAL INTEREST- BEARING DEPOSITS		3,780,471			109,209	2.89			3,624,551			115,773	3.19			3,342,371			101,706	3.04
Borrowings:
Securities sold under agreements to repurchase		19,511			806	4.13			14,330			766	5.35			9,398			451	4.80
FHLB advances		112,026			4,665	4.16			110,254			4,582	4.16			123,986			4,993	4.03
Junior subordinated debt		22,298			1,457	6.53			23,182			1,628	7.02			23,130			1,742	7.53
TOTAL INTEREST- BEARING LIABILITIES		3,934,306			116,137	2.95			3,772,317			122,749	3.25			3,498,885			108,892	3.11
Noninterest-bearing demand deposits		539,313			—	—			523,710			—	—			561,004			—	—
Other liabilities		60,582			—	—			33,370			—	—			31,366			—	—
TOTAL LIABILITIES		4,534,201			116,137	—			4,329,397			122,749	—			4,091,255			108,892	—
Stockholders’ equity		567,241			—	—			515,102			—	—			467,042			—	—
TOTAL LIABLITIES AND STOCKHOLDERS’ EQUITY	$	5,101,442			116,137	—		$	4,844,499			122,749	—		$	4,558,297			108,892	—

Net interest income				$	172,849						$	154,616						$	139,483
Interest rate spread ⁽⁴⁾						3.10	%						2.84	%						2.71	%
Net interest margin ⁽⁵⁾						3.62	%						3.40	%						3.27	%
Ratio of average interest-earning assets to average interest-bearing liabilities		121.39	%						120.71	%						123.57	%

(1)	Calculated net of deferred loan fees and loan discounts. Nonaccrual loans are not included in average loans.

(2)	Includes FHLB membership stock, Federal Reserve membership stock, and related cash dividends.

(3)	Includes equity securities and related cash dividends.

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

(5)	Represents net interest income divided by average interest-earning assets.

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YIELDS EARNED AND RATES PAID

The following table sets forth for the periods and as of the dates indicated, the weighted average yields earned on the Company’s assets, the weighted average interest rates paid on the Company’s liabilities, together with the net yield on interest-earning assets.


		For The Year Ended June 30,
		2026		2025		2024
Weighted-average yield on loan portfolio		6.28	%	6.31	%	5.98	%
Weighted-average yield on mortgage-backed securities		4.30		4.65		4.80
Weighted-average yield on investment securities ⁽¹⁾		4.23		4.45		4.16
Weighted-average yield on other interest-earning assets		4.22		4.54		5.50
Weighted-average yield on all interest-earning assets		6.05		6.09		5.82
Weighted-average rate paid on interest-bearing deposits		2.89		3.19		3.04
Weighted-average rate paid on securities sold under agreements to repurchase		4.13		5.35		4.80
Weighted-average rate paid on FHLB advances		4.16		4.16		4.03
Weighted-average rate paid on subordinated debt		6.53		7.02		7.53
Weighted-average rate paid on all interest-bearing liabilities		2.95		3.25		3.11
Interest rate spread (spread between weighted average rate on all interest-earning assets and all interest- bearing liabilities)		3.10		2.84		2.71
Net interest margin (net interest income as a percentage of average interest-earning assets)		3.62		3.40		3.27

(1)	Includes Federal Home Loan Bank and Federal Reserve Bank stock.

RATE/VOLUME ANALYSIS

The following table sets forth the effects of changing rates and volumes on net interest income of the Company. Information is provided with respect to (i) effects on interest income attributable to changes in volume (changes in volume multiplied by prior rate), (ii) effects on interest income attributable to changes in rate (changes in rate multiplied by prior volume), and (iii) changes in rate/volume (change in rate multiplied by change in volume).


	Years Ended June 30,								Years Ended June 30,
	2026 Compared to 2025								2025 Compared to 2024
	Increase (Decrease) Due to								Increase (Decrease) Due to
					Rate/								Rate/
(dollars in thousands)	Rate		Volume		Volume		Net		Rate		Volume		Volume		Net
Interest-earning assets:
Loans receivable ⁽¹⁾	$	(1,399)	$	16,117	$	(356)	$	14,362	$	11,463	$	16,223	$	648	$	28,334
Mortgage-backed securities		(1,231)		236		(18)		(1,013)		(460)		2,473		(77)		1,936
Investment securities ⁽²⁾		(378)		(592)		124		(846)		707		(1,450)		(326)		(1,069)
Other interest-earning deposits		(294)		(632)		44		(882)		(762)		669		(118)		(211)
Total net change in income on interest-earning assets		(3,302)		15,129		(206)		11,621		10,948		17,915		127		28,990

Interest-bearing liabilities:
Deposits		(11,740)		5,668		(492)		(6,564)		1,299		10,789		1,979		14,067
Securities sold under agreements to repurchase		(174)		277		(63)		40		51		237		27		315
FHLB advances		9		74		—		83		159		(553)		(17)		(411)
Subordinated debt		(113)		(62)		4		(171)		(118)		4		—		(114)
Total net change in expense on interest-bearing liabilities		(12,018)		5,957		(551)		(6,612)		1,391		10,477		1,989		13,857
Net change in net interest income	$	8,716	$	9,172	$	345	$	18,233	$	9,557	$	7,438	$	(1,862)	$	15,133

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

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

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Item 7A. Quantitative and Qualitative Disclosures About 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, commercial business loans, agricultural real estate, and agricultural operating lines, which typically provide higher yields and shorter repricing periods, but inherently increase credit risk, (ii) utilizing hedges, such as pay fixed/receive floating swaps on longer maturity 1-4 family residential real estate loans (iii) limiting the price volatility of the investment portfolio by maintaining a relatively short weighted average maturity, (iv) actively soliciting less rate-sensitive nonmaturity deposits, and (v) 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 generate long-term, fixed-rate residential loans. During the fiscal year ended June 30, 2026, fixed rate residential loan originations totaled $174.7 million (of which $32.1 million was originated for sale into the secondary market), compared to $141.4 million during the prior fiscal year (of which $21.6 million was originated for sale into the secondary market). At June 30, 2026, the fixed-rate, single-family residential loan portfolio totaled $663.2 million, with a weighted average maturity of 150 months, compared to $632.9 million, with a weighted average maturity of 163 months at June 30, 2025. The Company originated $80.6 million in adjustable rate residential loans during the fiscal year ended June 30, 2026, compared to $58.4 million during the prior fiscal year. At June 30, 2026, fixed rate loans with remaining maturities in excess of 10 years totaled $323.9 million, or 7.5%, of loans receivable, compared to $350.4 million, or 8.7%, of loans receivable, at June 30, 2025. The Company originated $440.9 million in fixed rate commercial, commercial real estate, and multi-family loans during the year ended June 30, 2026, compared to $375.2 million during the prior fiscal year. The Company also originated $226.7 million in adjustable rate commercial, commercial real estate, and multi-family loans during the fiscal year ended June 30, 2026, compared to $119.5 million during the prior fiscal year. At June 30, 2026, adjustable-rate home equity lines of credit totaled $97.5 million, compared to $86.7 million as of June 30, 2025. At June 30, 2026, the Company’s weighted average life of its investment portfolio was 4.2 years, compared to 5.0 years at June 30, 2025. Effective duration of the portfolio indicates a relatively stable price sensitivity of approximately 2.2% per 100 basis points movement in market rates at June 30, 2026, down from 2.6% per 100 basis points in the year ago period. At June 30, 2026, CDs with original terms of two years or more totaled $267.4 million, compared to $322.5 million at June 30, 2025. 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.

INTEREST RATE SENSITIVITY ANALYSIS

The following table sets forth as of June 30, 2026, 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 100, 200, and 300 bp decreases in market interest rates. The table for June 30, 2025, contains management’s estimates of the projected changes in 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.

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June 30, 2026
						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	$	514,899	$	(145,286)	(22)	10.72	(210)
+300 bp		560,550		(99,635)	(15)	11.46	(136)
+200 bp		598,912		(61,273)	(9)	12.03	(79)
+100 bp		634,274		(25,911)	(4)	12.52	(30)
0 bp		660,185		—	—	12.82	—
‑100 bp		677,752		17,567	3	12.96	14
‑200 bp		686,275		26,090	4	12.93	11
‑300 bp		668,877		8,692	1	12.44	(39)


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. 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. The Company’s balance sheet remains liability sensitive, meaning liabilities are expected to reprice more quickly than earning assets as market rates change, which could negatively impact NPV in a rising rate environment but could increase NPV in a declining rate environment. Compared to June 30, 2025, such sensitivity increased modestly during the current period primarily due to a decrease in cash balances. NPV sensitivity increased year over year in declining-rate scenarios, primarily due to higher loan floors and

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starting deposit discount rates, resulting in a net benefit across all declining-rate scenarios compared with less favorable results in the prior year.

Since June 30, 2025, higher market interest rates, coupled with lower repricing on savings accounts, increased the modeled premium value of the deposit portfolio at June 30, 2026. This benefit was partially offset by the negative impact of higher rates on the modeled value of fixed-rate loans and bonds. 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 support stable net interest income 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 16: 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.

Item 8. Financial Statements and Supplementary Information

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Report of Independent Registered Public Accounting Firm

To the Shareholders, Board of Directors, and Audit Committee

Southern Missouri Bancorp, Inc.

Poplar Bluff, Missouri

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Southern Missouri Bancorp, Inc. (the “Company”) as of June 30, 2026 and 2025 and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2026, and the related notes (collectively referred to as the “financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated September 11, 2026, expressed an unqualified opinion thereon.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowances for Credit Losses on Loans – Default Assumptions

As discussed in Notes 1 and 3, the Company’s loan portfolio totaled $4.4 billion as of June 30, 2026 and the associated allowance for credit losses on loans (“ACL”) was $54.9 million. In calculating the ACL, loans were segmented into pools based upon similar risk characteristics. For each of these loan pools, management measured expected credit losses over the life of each loan utilizing either a remaining life model or a discounted cash flow (DCF) model. The models utilize loss data from similar peers to calculate an expected loss percentage for each loan pool and apply a default assumption that defines the point at which a loan is considered to have defaulted based on specified credit deterioration events, including certain adverse internal risk ratings, delinquency thresholds, modifications for borrowers experiencing financial difficulty, or placement on nonaccrual status. The models were adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a reasonable and supportable forecast period. Additional qualitative adjustments are applied for risk factors that are not considered within the modeling process but are relevant in assessing the expected credit losses within the loan pools. Loans that do not share risk characteristics are evaluated on an individual basis, which may be based on the fair value of the collateral or a discounted cash flow model of expected cash flows.

We identified the default assumption used within the quantitative ACL model as a critical audit matter. The principal considerations for our determination included the high degree of judgment and subjectivity involved in management’s selection and application of the default assumption to collectively evaluated loans and the sensitivity of the ACL to that assumption. Auditing this assumption required a high degree of subjectivity and auditor effort.

The primary audit procedures we performed to address this critical audit matter included:

•

Obtained an understanding and evaluated and tested the design and operating effectiveness of controls relating to management’s estimate of the ACL, including controls over:

The completeness and accuracy of loan data used in the quantitative model, including selected risk rating information utilized in certain default assumptions

The selection of certain assumptions within the quantitative model, including whether the use of those assumptions is adequately supported and accurately applied and management’s review and approval process over the final determination of the ACL

•

Tested the mathematical accuracy of the calculation of the ACL, including the application of the default assumption within the model.

•

Evaluated default assumptions utilized in the quantitative model, including performing sensitivity analyses over selected assumptions and loan segments, assessing the reasonableness and basis of the documented methodology, credit quality trends, and supporting loan risk rating information.

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/s/ Forvis Mazars, LLP

We have served as the Company’s auditor since 2004.

Springfield, Missouri

September 11, 2026

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> CONSOLIDATED BALANCE SHEETS <

JUNE 30, 2026 AND 2025

Southern Missouri Bancorp, Inc.


	2026		2025
(dollars in thousands)

Assets
Cash and cash equivalents	$	90,966	$	192,859
Interest-bearing time deposits		—		246
Available-for-sale-securities (Note 2)		450,775		460,844
Stock in FHLB		10,930		9,361
Stock in Federal Reserve Bank of St. Louis		9,181		9,139
Loans held for sale		1,787		431
Loans receivable, net of ACL of $54,912 and $51,629 at June 30, 2026 and June 30, 2025, respectively (Note 3)		4,336,896		4,048,961
Accrued interest receivable		26,868		26,018
Premises and equipment, net (Note 4)		93,191		95,982
Bank owned life insurance – cash surrender value		77,117		75,691
Goodwill		50,727		50,727
Other intangible assets, net		19,893		22,994
Prepaid expenses and other assets		68,050		26,354
TOTAL ASSETS	$	5,236,381	$	5,019,607

Liabilities and Stockholders' Equity
Deposits (Note 5)	$	4,407,846	$	4,281,368
Securities sold under agreements to repurchase (Note 6)		20,000		15,000
Advances from FHLB (Note 7)		130,424		104,052
Accounts payable and other liabilities		59,885		37,101
Accrued interest payable		11,782		14,186
Subordinated debt (Note 8)		15,766		23,208
TOTAL LIABILITIES		4,645,703		4,474,915

Commitments and contingencies (Note 13)

Common stock, $.01 par value; 25,000,000 shares authorized; 12,009,617 and 11,980,887 shares issued at June 30, 2026 and June 30, 2025, respectively		120		120
Additional paid-in capital		223,597		221,347
Retained earnings		420,283		359,576
Treasury stock of 998,508 and 681,420 shares at June 30, 2026 and June 30, 2025, respectively, at cost		(43,550)		(24,973)
Accumulated other comprehensive loss		(9,772)		(11,378)
TOTAL STOCKHOLDERS' EQUITY		590,678		544,692
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,236,381	$	5,019,607

See accompanying notes to consolidated financial statements.

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> CONSOLIDATED STATEMENTS OF INCOME <

YEARS ENDED JUNE 30, 2026, 2025 AND 2024

Southern Missouri Bancorp, Inc.




(dollars in thousands except per share data)	2026		2025		2024

Interest Income
Loans	$	265,208	$	250,846	$	222,512
Investment securities		4,962		5,808		6,877
Mortgage-backed securities		15,554		16,567		14,631
Other interest-earning assets		3,262		4,144		4,355
TOTAL INTEREST INCOME		288,986		277,365		248,375
Interest Expense
Deposits		109,209		115,773		101,706
Securities sold under agreements to repurchase		806		766		451
Advances from FHLB		4,665		4,582		4,993
Subordinated debt		1,457		1,628		1,742
TOTAL INTEREST EXPENSE		116,137		122,749		108,892
NET INTEREST INCOME		172,849		154,616		139,483
Provision for credit losses (Note 3)		11,454		6,523		3,600
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		161,395		148,093		135,883
Noninterest Income
Deposit account charges and related fees		9,481		8,625		7,399
Bank card interchange income		6,480		5,981		5,744
Loan late charges		—		—		579
Loan servicing fees		1,005		909		1,277
Other loan fees		464		3,767		2,375
Net realized gains on sale of loans		904		751		713
Net realized gains (losses) on sale of AFS securities		—		48		(1,489)
Earnings on bank owned life insurance		2,571		2,084		1,911
Insurance brokerage commissions		1,431		1,294		1,217
Wealth management fees		3,773		3,300		3,166
Other income		1,688		1,225		1,952
TOTAL NONINTEREST INCOME		27,797		27,984		24,844
Noninterest Expense
Compensation and benefits		54,899		55,758		53,253
Occupancy and equipment, net		15,448		14,887		14,405
Data processing expense		10,600		9,327		8,968
Telecommunications expense		1,252		1,423		1,928
Deposit insurance premiums		2,195		2,335		2,463
Legal and professional fees		2,707		3,595		1,731
Advertising		2,285		2,070		2,119
Postage and office supplies		1,369		1,274		1,237
Intangibles amortization		3,076		3,540		4,071
Foreclosed property expenses, net		240		104		148
Other operating expense		8,017		7,770		7,294
TOTAL NONINTEREST EXPENSE		102,088		102,083		97,617
INCOME BEFORE INCOME TAXES		87,104		73,994		63,110
Income Taxes (Note 10)
Current		16,562		14,722		12,234
Deferred		(1,297)		694		694
TOTAL INCOME TAXES		15,265		15,416		12,928
NET INCOME	$	71,839	$	58,578	$	50,182

Basic earnings per share	$	6.44	$	5.19	$	4.42
Diluted earnings per share	$	6.43	$	5.18	$	4.42
Dividends paid per share	$	1.00	$	0.92	$	0.84

See accompanying notes to consolidated financial statements.

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> CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <

YEARS ENDED JUNE 30, 2026, 2025 AND 2024

Southern Missouri Bancorp, Inc.




(dollars in thousands)	2026		2025		2024

Net Income	$	71,839	$	58,578	$	50,182
Other comprehensive income:
Unrealized gains on securities available-for-sale		2,058		7,836		4,234
Less: reclassification adjustment for realized gains (losses) included in net income		—		48		(1,489)
Defined benefit pension plan net gain		1		2		5
Tax expense		(453)		(1,713)		(1,258)
Total other comprehensive income		1,606		6,077		4,470
Comprehensive Income	$	73,445	$	64,655	$	54,652

See accompanying notes to consolidated financial statements.

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> CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY <

YEARS ENDED JUNE 30, 2026, 2025 AND 2024

Southern Missouri Bancorp, Inc.


			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury		Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Loss		Equity
BALANCE AS OF JUNE 30, 2023	$	119		218,260		270,720		(21,116)		(21,925)		446,058

Net Income						50,182						50,182
Change in unrealized loss on available-for-sale securities, net										4,465		4,465
Defined benefit pension plan net gain										5		5
Dividends paid on common stock ($.84 per share)						(9,526)						(9,526)
Stock option expense				333								333
Stock grant expense				696								696
Exercise of stock options				391								391
Common stock issued		1										1
Treasury stock purchased								(3,857)				(3,857)
BALANCE AS OF JUNE 30, 2024		120		219,680		311,376		(24,973)		(17,455)		488,748

Net Income						58,578						58,578
Change in unrealized loss on available-for-sale securities, net										6,075		6,075
Defined benefit pension plan net gain										2		2
Dividends paid on common stock ($.92 per share)						(10,378)						(10,378)
Stock option expense				369								369
Stock grant expense				1,298								1,298
BALANCE AS OF JUNE 30, 2025		120		221,347		359,576		(24,973)		(11,378)		544,692

Net Income						71,839						71,839
Change in unrealized loss on available-for-sale securities, net										1,605		1,605
Defined benefit pension plan net gain										1		1
Dividends paid on common stock ($1.00 per share)						(11,132)						(11,132)
Stock option expense				420								420
Stock grant expense				1,370								1,370
Exercise of stock options				460								460
Treasury stock purchased								(18,577)				(18,577)
BALANCE AS OF JUNE 30, 2026	$	120	$	223,597	$	420,283	$	(43,550)	$	(9,772)	$	590,678

See accompanying notes to consolidated financial statements.

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> CONSOLIDATED STATEMENTS OF CASH FLOWS <

YEARS ENDED JUNE 30, 2026, 2025 AND 2024

Southern Missouri Bancorp, Inc.




(dollars in thousands)	2026		2025		2024

Cash Flows From Operating Activities:
Net Income	$	71,839	$	58,578	$	50,182
Items not requiring (providing) cash:
Depreciation		6,509		6,482		6,021
Loss on disposal of fixed assets		—		73		—
Stock option and stock grant expense		1,790		1,667		1,029
Loss (gain) on sale/write-down of foreclosed property		77		(56)		74
Amortization of intangible assets		3,076		3,540		4,071
Accretion of purchase accounting adjustments		(2,200)		(3,924)		(5,325)
Increase in cash surrender value of bank owned life insurance (BOLI)		(2,571)		(2,084)		(1,911)
Provision for credit losses		11,454		6,523		3,600
(Gain) loss realized on sale of AFS securities		—		(48)		1,489
Net amortization of premiums and discounts on securities		(778)		(1,511)		(842)
Originations of loans held for sale		(32,098)		(22,206)		(21,857)
Proceeds from sales of loans held for sale		31,646		23,209		22,044
Gain on sales of loans held for sale		(904)		(751)		(713)
Gain on sale of investment tax credit		(305)		—		—
Changes in:
Accrued interest receivable		(850)		(2,192)		(4,955)
Prepaid expenses and other assets		(6,209)		6,682		8,943
Accounts payable and other liabilities		3,748		6,217		(141)
Deferred income taxes		(1,297)		40		414
Accrued interest payable		(2,404)		1,318		8,145
Net cash provided by operating activities		80,523		81,557		70,268
Cash Flows From Investing Activities:
Net increase in loans		(303,952)		(254,933)		(228,444)
Net change in interest-bearing deposits		249		248		744
Proceeds from maturities of available-for-sale securities		73,249		68,622		42,322
Proceeds from sales of available-for-sale securities		—		72		32,243
Purchases of Federal Home Loan Bank stock		(17,127)		(12,069)		(13,377)
Redemptions of Federal Home Loan Bank stock		15,558		11,421		16,204
Purchases of Federal Reserve Bank of St. Louis stock		(42)		(50)		(28)
Purchases of available-for-sale securities		(60,344)		(92,288)		(79,837)
Purchases of long-term investments and other assets		(375)		(612)		(410)
Redemptions of long-term investments and other assets		432		—		—
Purchases of premises and equipment		(3,959)		(6,263)		(9,047)
Investments in state & federal tax credits		(10,207)		(3,270)		(7,381)
Proceeds from sale of fixed assets		—		—		15
Proceeds from sale of foreclosed assets		1,485		4,010		1,261
Proceeds from sale of investment tax credits		315		—		—
Proceeds from BOLI claim		1,150		—		—
Net cash used in investing activities		(303,568)		(285,112)		(245,735)
Cash Flows From Financing Activities:
Net increase (decrease) in demand deposits and savings accounts		34,983		25,152		(53,833)
Net increase in certificates of deposits		91,573		313,188		280,768
Net increase in securities sold under agreements to repurchase		5,000		5,602		—
Proceeds from Federal Home Loan Bank advances		394,300		260,000		303,200
Repayments of Federal Home Loan Bank advances		(367,955)		(258,054)		(334,752)
Repayments of long-term debt		(7,500)		—		—
Common stock issued		—		—		1
Exercise of stock options		460		—		391
Purchases of treasury stock		(18,577)		—		(3,857)
Dividends paid on common stock		(11,132)		(10,378)		(9,526)
Net cash provided by financing activities		121,152		335,510		182,392
(Decrease) increase in cash and cash equivalents		(101,893)		131,955		6,925
Cash and cash equivalents at beginning of period		192,859		60,904		53,979
Cash and cash equivalents at end of period	$	90,966	$	192,859	$	60,904

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Supplemental disclosures of cash flow information:
Noncash investing and financing activities:
Conversion of loans to foreclosed real estate	$	6,328	$	625	$	1,376
Conversion of loans to repossessed assets		417		98		209
Right of use (ROU) assets obtained in exchange for lease obligations: Operating Leases		241		322		2,332
Termination of lease right of use asset and related lease obligation		—		—		1,401
Investment tax credits obtained in exchange for delayed capital contributions		29,393		—		—
Investment tax credits obtained in exchange for settlement of loans		500		—		—
Investment tax credits cancelled in exchange for sale of membership interest		4,855		—		—

Cash paid during the period for:
Interest (net of interest credited)	$	7,813	$	8,148	$	7,706
Income taxes		9,139		7,530		2,298

See accompanying notes to consolidated financial statements.

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NOTE 1: 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. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold 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 shareholders in order to meet the requirements to be a REIT. At June 30, 2026, assets of the REIT were approximately $1.5 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 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 shareholders. Changes in these regulations, actions by supervisory authorities, or significant litigation could impose operational restrictions, require substantial compliance resources, and result in penalties that may negatively impact our business and shareholder value.

Principles of Consolidation. The 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 and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $42.1 million and $136.9 million at June 30, 2026 and 2025, respectively. The deposits are held in various commercial banks with a total of $1.7 million and $1.8 million exceeding the FDIC deposit insurance limits at June 30, 2026 and 2025, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

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

Available-for-sale Securities. Available-for-sale (“AFS”) securities, which include any security for which the Company has no immediate plan to sell but may be sold in the future, are carried at fair value. Unrealized gains and

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losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as AFS.

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 income (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 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 impairment is attributable to credit risk is acceptable. There were no credit-related factors contributing to the unrealized losses on AFS securities at June 30, 2026, 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 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

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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 to 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, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant 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 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 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.

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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 will 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 will 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 on 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 Property. 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. Costs for development and improvement of the property are capitalized.

Valuations are periodically performed by management, and an allowance for losses is established by a charge to 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

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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 method 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 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 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 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 consolidated financial statements. As of June 30, 2026, 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.

Intangible Assets. The Company’s intangible assets at June 30, 2026 included gross core deposit intangibles of $39.1 million with $23.9 million accumulated amortization, gross other identifiable intangibles of $6.6 million with accumulated amortization of $4.8 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 intangible assets are being amortized using the straight line method, over periods ranging from five to ten years, with amortization expense expected to be approximately $2.7 million in fiscal 2027, $2.7 million in fiscal 2028, $2.7 million in fiscal 2029, $2.5 million in fiscal 2030, $2.5 million in fiscal 2031, and $3.9 million thereafter. As of June 30, 2026, and June 30, 2025, there was no impairment indicated.

The Company records mortgage servicing rights (MSR) at fair value for all 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. MSRs totaled $2.3 million at June 30, 2026 and June 30, 2025.

Low-income housing tax credit equity investments: The Company records LIHTCs in prepaid expenses and other assets in the consolidated balance sheets and totaled $34.3 million and $196,000 as of June 30, 2026 and 2025, respectively. In accordance with ASU 2023-02, the Company accounts for tax equity investments using the proportional amortization method. For all legally binding unfunded equity commitments, the Company increases its recognized investment and recognizes a liability. As of June 30, 2026, the Company had liabilities of $29.4 million and none at June 30, 2025, related to these investments that are included in accounts payable and other liabilities in the consolidated balance sheets. The federal income tax credits are claimed over a ten-year credit allowance period. The Company’s maximum exposure to loss related to its investments in these unconsolidated variable interest entities is limited to the carrying amount of the investments, net of any unfunded capital commitments and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level, if applicable. The Company believes potential losses from these investments are remote and does not have any loss reserves recorded related to these investments.

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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 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 (benefit) 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 the 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 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. 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 16.

Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plans (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.

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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.

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 (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized appreciation (depreciation) on AFS securities, unrealized appreciation (depreciation) on AFS 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.

Revenue Recognition. Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes a revenue recognition model for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Most of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans and investment securities, and revenue related to mortgage servicing activities, which are subject to other accounting standards. A description of the revenue-generating activities that are within the scope of ASC 606, and included in other income in the Company’s condensed consolidated statements of income are as follows:

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 in 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 held fiduciary assets totaling $180.0 million and $107.6 as of June 30, 2026 and 2025, respectively, and investment management assets totaling $638.7 million and $538.2 million as of June 30, 2026 and 2025, respectively.

Insurance commissions. The Company’s insurance agency subsidiary, Southern Insurance Services, LLC, receives commissions on premiums of new and renewed business policies. Southern Insurance Services, LLC records commission revenue on direct bill policies as the cash is received. For agency bill policies, Southern Insurance Services, LLC retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the entire performance obligation is held by the carriers.

Service charges on deposits. The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.

ATM/debit card revenue. The Company generates revenue through service charges on the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used and the performance obligation is satisfied.

Other income. Treasury management fees and lock box fees are received and recorded after the service performance obligation is completed. Merchant bank card fees are received from various vendors; however, the

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performance obligation is with the vendors. The Company records gains on the sale of loans and the sale of OREO properties after the transactions are complete and transfer of ownership has occurred.

The following paragraphs summarize the impact of 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) are 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 are 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 was effective for PBEs for fiscal years beginning after December 15, 2024. The Company adopted this ASU for the fiscal year beginning July 1, 2025, and the accounting and disclosure of this ASU did not have a material impact on the consolidated financial statements, and can be seen in ‘Note 10: Income Taxes’ of the notes to the consolidated financial statements.

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 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

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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.

NOTE 2: Available-for-sale Securities

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


		June 30, 2026
					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		$	24,546		$	18		$	(1,180)		$	—		$	23,384
Corporate obligations			28,228			112			(268)			—			28,072
Asset-backed securities			42,011			404			(109)			—			42,306
Other securities			2,993			9			(47)			—			2,955
Total debt securities			97,778			543			(1,604)			—			96,717

Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)			148,840			1,557			(4,390)			—			146,007
Commercial MBS issued by GSEs			103,148			291			(4,553)			—			98,886
CMOs issued by GSEs			113,502			229			(4,566)			—			109,165
Total MBS and CMOs			365,490			2,077			(13,509)			—			354,058
Total AFS securities		$	463,268		$	2,620		$	(15,113)		$	—		$	450,775


	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

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The amortized cost and 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.


		June 30, 2026
		Amortized			Estimated
(dollars in thousands)		Cost			Fair Value
Within one year		$	8,495		$	8,501
After one year but less than five years			24,166			24,052
After five years but less than ten years			26,992			25,908
After ten years			38,125			38,256
Total investment securities			97,778			96,717
MBS and CMOs			365,490			354,058
Total AFS securities		$	463,268		$	450,775

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $254.1 million and $294.3 million at June 30, 2026 and 2025 respectively.

There were no gains or losses recognized from sales of AFS securities in fiscal 2026. Gross gains of $48,000 and no gross losses were recognized from sales of AFS securities in fiscal 2025. Gross gains of $67,000 and gross losses of $1.6 million were recognized from sales of AFS securities in fiscal 2024.

The Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders’ equity at June 30, 2026.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2026, was $253.8 million, which is approximately 56.3% of the Company’s AFS investment portfolio, as compared to $264.5 million or approximately 57.4% of the Company’s AFS investment portfolio at June 30, 2025. The Company does not consider available-for-sale securities with unrealized losses at June 30, 2026, to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell a significant amount of these investments, and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase.

The following tables below show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which ACL has not been recorded at June 30, 2026 and 2025.


	June 30, 2026
	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 states and political subdivisions	$	4,948	$	39	$	12,778	$	1,141	$	17,726	$	1,180
Corporate obligations		3,972		28		7,554		240		11,526		268
Asset-backed securities		8,997		10		884		100		9,881		110
Other securities		—		—		2,653		47		2,653		47
MBS and CMOs		69,804		529		142,219		12,979		212,023		13,508
Total AFS securities	$	87,721	$	606	$	166,088	$	14,507	$	253,809	$	15,113

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	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 states 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

Obligations of States and Political Subdivisions. The unrealized losses on the Company’s investments in obligations of states and political subdivisions include 12 individual securities which have been in an unrealized loss position for less than 12 months and 25 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.

Corporate and Other Obligations. The unrealized losses on the Company’s investments in corporate obligations include three individual securities which have been in an unrealized loss position for less than 12 months and ten individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing. 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 two individual securities which have 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 and spreads 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 23 individual securities which have been in an unrealized loss position for less than 12 months, and 101 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 June 30, 2026 was attributable to credit-related factors. Should credit conditions of an issuer deteriorate or expected cash flows decline, the Company could be required to recognize an allowance for credit losses on its AFS securities in future periods.

Credit Losses Recognized on Investments. There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the fiscal years ended June 30, 2026 and 2025.

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NOTE 3: Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:


(dollars in thousands)		June 30, 2026		June 30, 2025

1-4 Family residential real estate		$	1,085,512	$	992,445
Non-owner occupied commercial real estate			924,144		888,317
Owner occupied commercial real estate			471,990		442,984
Multi-family real estate			469,968		422,758
Construction and land development			310,006		332,405
Agriculture real estate			295,803		244,983
Total loans secured by real estate			3,557,423		3,323,892

Commercial and industrial			552,557		510,259
Agriculture production			219,155		206,128
Consumer			53,144		55,387
All other loans			9,529		5,102
Gross loans			4,391,808		4,100,768

Deferred loan fees, net			—		(178)
Allowance for credit losses			(54,912)		(51,629)
Net loans		$	4,336,896	$	4,048,961

At June 30, 2026, net deferred loan fees of ($937,000) were included in the gross loan balances, by type, in the table above. The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At June 30, 2026, the Bank had purchased participation interests in 62 loans totaling $147.1 million, as compared to 71 loans totaling $188.0 million at June 30, 2025.

Risk characteristics applicable to each class of the loan portfolio are described as follows:

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

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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 term of 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 the Company typically includes 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 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 on 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 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

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as farmland and farm equipment values. As with agricultural real estate loans, the repayment of operating loans is dependent on the successful operation or management of the farm property. The same risk applies to agricultural operating loans which are unsecured or secured by rapidly depreciating assets such as farm equipment or assets such as livestock or crops. As compared to other loan types which generally require monthly payments, an annual payment schedule may increase risk that the Company would not timely identify a borrower experiencing financial difficulties, hindering its ability to work to mitigate losses.

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 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, 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 $7.3 million and $8.2 million at June 30, 2026 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

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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.

Qualitative factors. In addition to 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. In connection with the Citizens Bancshares, Co. (“Citizens”) merger on January 20, 2023, the Company acquired loans both with and without evidence of credit quality deterioration since origination. 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.

The following tables present the activity in the ACL based on portfolio segment for the fiscal years ended June 30, 2026, 2025, and 2024:


	Balance		Provision						Balance
(dollars in thousands)	beginning		(benefit) charged		Losses				end
June 30, 2026	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,274	$	2,623	$	(813)	$	1	$	12,085
Non-owner occupied commercial real estate		12,241		(303)		(2,986)		2,000		10,952
Owner occupied commercial real estate		4,521		703		(81)		122		5,265
Multi-family real estate		4,329		(1,234)		—		—		3,095
Construction and land development		4,788		(1,395)		(192)		1		3,202
Agriculture real estate		4,194		2,194		—		—		6,388
Commercial and industrial		6,952		2,050		(2,467)		69		6,604
Agriculture production		3,374		5,531		(2,696)		66		6,275
Consumer		952		805		(1,103)		389		1,043
All other loans		4		(3)		—		2		3
Total	$	51,629	$	10,971	$	(10,338)	$	2,650	$	54,912

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	Balance		Provision						Balance
(dollars in thousands)	beginning		(benefit) charged		Losses				end
June 30, 2025	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,528	$	(211)	$	(89)	$	46	$	10,274
Non-owner occupied commercial real estate		19,055		(3,014)		(3,800)		—		12,241
Owner occupied commercial real estate		4,815		(172)		(122)		—		4,521
Multi-family real estate		5,447		(1,165)		—		47		4,329
Construction and land development		2,901		1,888		(1)		—		4,788
Agriculture real estate		2,107		2,087		—		—		4,194
Commercial and industrial		6,233		2,160		(1,508)		67		6,952
Agriculture production		835		3,589		(1,052)		2		3,374
Consumer		578		698		(411)		87		952
All other loans		17		(13)		—		—		4
Total	$	52,516	$	5,847	$	(6,983)	$	249	$	51,629


	Balance		Provision						Balance
(dollars in thousands)	beginning		(benefit) charged		Losses				end
June 30, 2024	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	9,474	$	1,067	$	(46)	$	33	$	10,528
Non-owner occupied commercial real estate		13,863		5,688		(496)		—		19,055
Owner occupied commercial real estate		5,168		(353)		—		—		4,815
Multi-family real estate		6,806		(880)		(479)		—		5,447
Construction and land development		3,414		(242)		(289)		18		2,901
Agriculture real estate		2,567		(460)		—		—		2,107
Commercial and industrial		5,235		1,356		(395)		37		6,233
Agriculture production		782		53		—		—		835
Consumer		490		400		(350)		38		578
All other loans		21		(4)		—		—		17
Total	$	47,820	$	6,625	$	(2,055)	$	126	$	52,516

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The following tables present the activity in the allowance for off-balance credit exposure based on portfolio segment for the fiscal years ended June 30, 2026, 2025 and 2024:


	Balance		Provision		Balance
(dollars in thousands)	beginning		(benefit) charged		end
June 30, 2026	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	202	$	30	$	232
Non-owner occupied commercial real estate		134		57		191
Owner occupied commercial real estate		161		51		212
Multi-family real estate		—		44		44
Construction and land development		2,279		233		2,512
Agriculture real estate		81		(13)		68
Commercial and industrial		1,074		(430)		644
Agriculture production		—		510		510
Consumer		—		4		4
All other loans		8		(3)		5
Total	$	3,939	$	483	$	4,422


	Balance		Provision		Balance
(dollars in thousands)	beginning		(benefit) charged		end
June 30, 2025	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	140	$	62	$	202
Non-owner occupied commercial real estate		153		(19)		134
Owner occupied commercial real estate		136		25		161
Multi-family real estate		31		(31)		—
Construction and land development		1,912		367		2,279
Agriculture real estate		60		21		81
Commercial and industrial		782		292		1,074
Agriculture production		37		(37)		—
Consumer		12		(12)		—
All other loans		—		8		8
Total	$	3,263	$	676	$	3,939


	Balance		Provision		Balance
(dollars in thousands)	beginning		(benefit) charged		end
June 30, 2024	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	126	$	14	$	140
Non-owner occupied commercial real estate		154		(1)		153
Owner occupied commercial real estate		182		(46)		136
Multi-family real estate		16		15		31
Construction and land development		4,897		(2,985)		1,912
Agriculture real estate		50		10		60
Commercial and industrial		730		52		782
Agriculture production		107		(70)		37
Consumer		16		(4)		12
All other loans		10		(10)		—
Total	$	6,288	$	(3,025)	$	3,263

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The following tables present gross charge-offs by loan class and year of origination for the years ended June 30, 2026, 2025 and 2024:


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
June 30, 2026
1-4 Family residential real estate	$	—	$	—	$	182	$	200	$	7	$	424	$	—	$	813
Non-owner occupied commercial real estate		—		—		—		2,800		186		—		—		2,986
Owner occupied commercial real estate		—		—		—		—		—		81		—		81
Construction and land development		—		—		—		31		—		161		—		192
Commercial and industrial		60		316		300		1,280		438		73		—		2,467
Agriculture production		—		2,579		29		68		20		—		—		2,696
Consumer		710		175		148		43		20		7		—		1,103
Total gross charge-offs	$	770	$	3,070	$	659	$	4,422	$	671	$	746	$	—	$	10,338


													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
June 30, 2025
1-4 Family residential real estate	$	—	$	—	$	—	$	—	$	—	$	89	$	—	$	89
Non-owner occupied commercial real estate		—		—		—		3,800		—		—		—		3,800
Owner occupied commercial real estate		—		—		122		—		—		—		—		122
Construction and land development		—		—		—		—		1		—		—		1
Commercial and industrial		25		505		212		507		217		42		—		1,508
Agriculture production		—		1,052		—		—		—		—		—		1,052
Consumer		131		131		84		41		7		17		—		411
Total gross charge-offs	$	156	$	1,688	$	418	$	4,348	$	225	$	148	$	—	$	6,983


													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
June 30, 2024
1-4 Family residential real estate	$	—	$	—	$	6	$	—	$	—	$	40	$	—	$	46
Non-owner occupied commercial real estate		—		496		—		—		—		—		—		496
Multi-family real estate		—		—		382		97		—		—		—		479
Construction and land development		—		100		78		111		—		—		—		289
Commercial and industrial		—		190		195		10		—		—		—		395
Consumer		38		162		100		41		—		9		—		350
Total gross charge-offs	$	38	$	948	$	761	$	259	$	—	$	49	$	—	$	2,055

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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.

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 evaluated under the Company's credit risk rating process that do not meet the criteria above are considered 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. In addition, a sample of smaller pass rated loans is completed. 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 year of origination as of June 30, 2026. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

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													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
1-4 Family residential real estate
Pass	$	267,372	$	144,308	$	79,615	$	102,798	$	145,247	$	206,727	$	133,453	$	1,079,520
Watch		730		620		285		45		316		150		11		2,157
Special Mention		—		—		—		—		—		—		—		—
Substandard		393		332		893		414		1,062		727		14		3,835
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	268,495	$	145,260	$	80,793	$	103,257	$	146,625	$	207,604	$	133,478	$	1,085,512

Non-owner occupied commercial real estate
Pass	$	253,267	$	114,283	$	58,459	$	137,095	$	223,813	$	98,749	$	10,864	$	896,530
Watch		1,512		165		—		—		188		—		—		1,865
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		1,393		2,086		22,270		—		—		25,749
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	254,779	$	114,448	$	59,852	$	139,181	$	246,271	$	98,749	$	10,864	$	924,144

Owner occupied commercial real estate
Pass	$	134,106	$	56,579	$	49,383	$	51,235	$	63,481	$	80,131	$	24,821	$	459,736
Watch		1,564		724		3,844		498		1,997		148		351		9,126
Special Mention		—		—		—		—		—		—		—		—
Substandard		559		—		983		870		283		433		—		3,128
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	136,229	$	57,303	$	54,210	$	52,603	$	65,761	$	80,712	$	25,172	$	471,990

Multi-family real estate
Pass	$	61,626	$	78,690	$	15,190	$	184,640	$	61,734	$	58,412	$	8,142	$	468,434
Watch		—		1,534		—		—		—		—		—		1,534
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	61,626	$	80,224	$	15,190	$	184,640	$	61,734	$	58,412	$	8,142	$	469,968

Construction and land development
Pass	$	159,733	$	86,681	$	26,671	$	23,875	$	4,274	$	193	$	2,238	$	303,665
Watch		—		—		—		—		—		53		—		53
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		355		5,743		190		—		—		—		6,288
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	159,733	$	87,036	$	32,414	$	24,065	$	4,274	$	246	$	2,238	$	310,006

Agriculture real estate
Pass	$	86,362	$	29,729	$	18,924	$	23,922	$	33,715	$	34,350	$	24,771	$	251,773
Watch		22,209		9,767		211		494		5,285		3,450		903		42,319
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		3		940		—		—		768		—		1,711
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	108,571	$	39,499	$	20,075	$	24,416	$	39,000	$	38,568	$	25,674	$	295,803

Commercial and industrial
Pass	$	193,173	$	84,533	$	18,829	$	7,633	$	23,615	$	13,235	$	185,896	$	526,914
Watch		5,388		810		4,028		2,066		—		214		8,414		20,920
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,196		3,225		136		20		17		129		—		4,723
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	199,757	$	88,568	$	22,993	$	9,719	$	23,632	$	13,578	$	194,310	$	552,557

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Agriculture production
Pass	$	46,222	$	13,214	$	5,622	$	2,533	$	723	$	511	$	114,435	$	183,260
Watch		9,340		3,170		1,303		151		69		621		13,076		27,730
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5,611		2,346		141		17		50		—		8,165
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	55,562	$	21,995	$	9,271	$	2,825	$	809	$	1,182	$	127,511	$	219,155

Consumer
Pass	$	29,342	$	11,259	$	5,148	$	3,584	$	1,373	$	871	$	1,502	$	53,079
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		15		27		18		—		—		5		65
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	29,342	$	11,274	$	5,175	$	3,602	$	1,373	$	871	$	1,507	$	53,144

All other loans
Pass	$	1,625	$	6,027	$	691	$	102	$	41	$	1,043	$	—	$	9,529
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	1,625	$	6,027	$	691	$	102	$	41	$	1,043	$	—	$	9,529

Total Loans
Pass	$	1,232,828	$	625,303	$	278,532	$	537,417	$	558,016	$	494,222	$	506,122	$	4,232,440
Watch		40,743		16,790		9,671		3,254		7,855		4,636		22,755		105,704
Special Mention		—		—		—		—		—		—		—		—
Substandard		2,148		9,541		12,461		3,739		23,649		2,107		19		53,664
Doubtful		—		—		—		—		—		—		—		—
Total	$	1,275,719	$	651,634	$	300,664	$	544,410	$	589,520	$	500,965	$	528,896	$	4,391,808

At June 30, 2026, PCD loans were comprised of $24.7 million of credits rated “Pass”; $69,000 of credits rated “Watch”; no credits rated “Special Mention”; $6.5 million of credits rated “Substandard”; and no credits rated “Doubtful”.

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

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													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		—		—		—		—		—		—		—		—
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		—		—		—		—		—		—		—		—

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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

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

At June 30, 2025, PCD loans comprised $35.1 million of credits rated “Pass”; $2.7 million of credits rated “Watch”; none rated “Special Mention”; $8.0 million of credits rated “Substandard”; and none rated “Doubtful”.

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Past Due Loans. The following tables present the Company’s loan portfolio aging analysis as of June 30, 2026 and 2025. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:


								Greater Than												Greater Than 90
(dollars in thousands)		30-59 Days			60-89 Days			90 Days			Total						Total Loans			Days Past Due
June 30, 2026		Past Due			Past Due			Past Due			Past Due			Current			Receivable			and Accruing
1-4 Family residential real estate		$	1,077		$	2,232		$	2,475		$	5,784		$	1,079,728		$	1,085,512		$	—
Non-owner occupied commercial real estate			—			—			—			—			924,144			924,144			—
Owner occupied commercial real estate			590			292			889			1,771			470,219			471,990			—
Multi-family real estate			—			—			—			—			469,968			469,968			—
Construction and land development			196			101			5,933			6,230			303,776			310,006			—
Agriculture real estate			—			408			1,708			2,116			293,687			295,803			—
Commercial and industrial			1,231			635			1,066			2,932			549,625			552,557			—
Agriculture production			864			5,302			2,192			8,358			210,797			219,155			—
Consumer			326			96			32			454			52,690			53,144			—
All other loans			—			—			—			—			9,529			9,529			—
Total loans		$	4,284		$	9,066		$	14,295		$	27,645		$	4,364,163		$	4,391,808		$	—


					Greater Than								Greater Than 90
(dollars in thousands)	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
June 30, 2025	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 June 30, 2026 there were two PCD loans totaling $6.2 million that were greater than 90 days past due, and there were three at June 30, 2025 totaling $6.2 million.

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.

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Collateral-dependent Loans. The following table presents the Company’s collateral-dependent loans and related ACL at June 30, 2026 and 2025:




									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
June 30, 2026	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	2,224	$	—	$	—	$	2,224	$	—
Non-owner occupied commercial real estate		25,749		—		—		25,749		4,319
Owner occupied commercial real estate		3,827		—		468		4,295		512
Construction and land development		5,743		545		—		6,288		143
Agriculture real estate		2,949		—		—		2,949		125
Commercial and industrial		1,114		—		3,246		4,360		993
Agriculture production		—		—		8,080		8,080		1,198
Total loans	$	41,606	$	545	$	11,794	$	53,945	$	7,290




									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 June 30, 2026 and 2025.


	June 30,
(dollars in thousands)	2026		2025
1-4 Family residential real estate	$	3,402	$	2,847
Non-owner occupied commercial real estate		3,575		5,784
Owner occupied commercial real estate		1,071		1,309
Construction and land development		5,974		5,789
Agriculture real estate		1,989		3,268
Commercial and industrial		3,688		3,442
Agriculture production		7,898		505
Consumer		58		96
Total loans	$	27,655	$	23,040

At June 30, 2026, there were 40 nonaccrual loans totaling $11.9 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.

Modifications to Borrowers Experiencing Financial Difficulty. During fiscal 2026, four loans totaling $5.8 million, were modified for borrowers experiencing financial difficulty. During fiscal 2025, ten loans totaling $25.7 million were modified for borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding at June 30, 2026 and 2025 are shown in the following tables 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.

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	June 30, 2026
							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			—			—			—		0.16	%
Owner occupied commercial real estate		—			3,731			—			—		0.79	%
Multi-family real estate		—			—			—			—		—	%
Construction and land development		—			—			—			—		—	%
Agriculture real estate		—			—			—			—		—	%
Commercial and industrial		—			589			—			—		0.11	%
Agriculture production		—			—			—			—		—	%
Consumer		—			—			—			—		—	%
All other loans		—			—			—			—		—	%
Total	$	1,512		$	4,320		$	—		$	—		0.13	%


	June 30, 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	$	—		$	—		$	24		$	—		0.00	%
Non-owner occupied commercial real estate		—			22,270			—			—		2.51	%
Owner occupied commercial real estate		—			—			—			2,701		0.61	%
Multi-family real estate		—			—			—			—		—	%
Construction and land development		—			—			—			661		0.20	%
Agriculture real estate		—			—			—			—		—	%
Commercial and industrial		—			54			—			—		0.01	%
Agriculture production		—			—			—			—		—	%
Consumer		—			—			—			—		—	%
All other loans		—			—			—			—		—	%
Total	$	—		$	22,324		$	24		$	3,362		0.63	%

None of the modifications made during fiscal 2026 or 2025 were more than 90 days past due. There were no loans that experienced a default during the fiscal years ended June 30, 2026 or June 30, 2025, after being granted a modification within the preceding twelve months. As of June 30, 2026, there were no commitments to lend funds to these borrowers. For modifications to loans made to borrowers experiencing financial difficulty that are adversely classified, the Company determines the ACL on an individual basis, using the same process that it utilizes for other adversely classified loans. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the allowance. As a result, a change to the ACL is generally not recorded upon modification.

Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure, deed in lieu, or in-substance repossession. As of June 30, 2026 and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $88,000 and $0, respectively. In addition, as of June 30, 2026 and 2025, the Company had residential mortgage loans and home equity loans with a carrying value of $903,000 and $769,000 respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

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Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2026 and 2025, respectively:


		June 30,
(dollars in thousands)		2026			2025
Beginning Balance		$	14,377		$	11,101
Additions			11,043			8,816
Repayments			(9,248)			(7,228)
Change in related party			22,949			1,688
Ending Balance		$	39,121		$	14,377

NOTE 4: Premises and Equipment

Following is a summary of premises and equipment:


	June 30,
(dollars in thousands)	2026		2025
Land	$	15,509	$	15,386
Buildings and improvements		89,731		85,512
Construction in progress		43		2,754
Furniture, fixtures, equipment and software		31,274		29,386
Automobiles		128		118
Operating leases ROU asset		6,750		6,991
		143,435		140,147
Less accumulated depreciation		50,244		44,165
	$	93,191	$	95,982

Leases. The Company elected certain relief options under ASU 2016-02, Leases (Topic 842), including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less). At June 30, 2026, the Company had ten leased properties, which included banking facilities, administrative offices and ground leases, and numerous office equipment lease agreements in which it is 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, net 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 at June 30, 2026, was 3.5% to 5.7%, and the expected lease terms ranged from 18 months to 21.6 years. At June 30, 2026, the weighted-average lease term was 15.0 years and the weighted-average discount rate was 4.75%. At June 30, 2025, the weighted-average lease term was 16.1 years and the weighted-average discount rate was 4.76%.

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		June 30, 2026		June 30, 2025
Consolidated Balance Sheets
Operating leases ROU asset		$	6,750	$	6,991
Operating leases liability		$	6,750	$	6,991


	At or For the Twelve		At or For the Twelve
	Months Ended		Months Ended
(dollars in thousands)	June 30, 2026		June 30, 2025
Consolidated Statements of Income
Operating lease costs classified as occupancy and equipment, net expense	$	1,229	$	1,192
(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	$	872	$	760
ROU assets obtained in exchange for operating lease obligations:	$	127	$	—

At June 30, 2026, future expected lease payments for leases with terms exceeding one year were as follows:


(dollars in thousands)
2027	$	897
2028		911
2029		882
2030		851
2031		858
Thereafter		7,025
Future lease payments expected		11,424
Less: present value discount		(4,674)
Total lease liability	$	6,750

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 years ended June 30, 2026 and 2025, income recognized from these lessor agreements was $541,000 and $432,000, respectively. Income from lessor agreements was included in net occupancy and equipment, net expense.

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NOTE 5: Deposits

Deposits are summarized as follows:


	June 30,
(dollars in thousands)	2026		2025
Non-interest bearing deposits	$	560,704	$	508,110
NOW accounts		1,074,489		1,132,298
MMDAs - non-brokered		314,350		329,837
Brokered MMDAs		10,654		1,414
Savings accounts		707,482		661,115
TOTAL NON-MATURITY DEPOSITS		2,667,679		2,632,774

Certificates of deposit - non-brokered		1,460,172		1,414,945
Brokered certificates of deposit		279,995		233,649
TOTAL CERTIFICATES		1,740,167		1,648,594
TOTAL DEPOSITS	$	4,407,846	$	4,281,368

Certificates
0.00-0.99%		1,932		6,211
1.00-1.99%		7,915		14,021
2.00-2.99%		36,413		8,314
3.00-3.99%		1,186,394		240,321
4.00-4.99%		507,413		1,347,081
5.00-5.99%		100		32,646
TOTAL CERTIFICATES	$	1,740,167	$	1,648,594

The aggregate amount of deposits with a minimum denomination of $250,000 was $1.5 billion and $1.4 billion at June 30, 2026 and 2025, respectively.

Certificate maturities are summarized as follows:


(dollars in thousands)
July 1, 2026 to June 30, 2027		$	1,442,684
July 1, 2027 to June 30, 2028			185,317
July 1, 2028 to June 30, 2029			61,837
July 1, 2029 to June 30, 2030			26,940
July 1, 2030 to June 30, 2031			23,389
TOTAL		$	1,740,167

Brokered certificates totaled $280.0 million and $233.6 million at June 30, 2026 and 2025, respectively. Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2026 and 2025 totaled approximately $12.7 million and $14.4 million, respectively.

NOTE 6: Repurchase Agreements

Securities sold under agreements to repurchase totaled $20.0 million at June 30, 2026, 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 June 30, 2026 and June 30, 2025:

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	June 30,			June 30,
(dollars in thousands)	2026			2025
Period-end balance	$	20,000		$	15,000
Average balance during the period		19,511			14,330
Maximum month-end balance during the period		20,000			15,000
Average interest during the period		4.13	%		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:


	June 30,		June 30,
(dollars in thousands)	2026		2025
Mortgage-backed securities (MBS)	$	19,301	$	15,353

NOTE 7: Advances from Federal Home Loan Bank

Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate loans, one- to four-family mortgage loans and multi-family mortgage loans pledged. To secure outstanding advances and the Bank’s line of credit, loans totaling $1.6 billion and $1.5 billion were pledged to the FHLB at June 30, 2026 and 2025, respectively. The principal maturities and weighted average rates of FHLB advances at June 30, 2026 and 2025, are below:


		June 30, 2026				June 30, 2025
			Amount	Weighted			Amount	Weighted
FHLB Advance Maturities			(dollars in thousands)	Rate			(dollars in thousands)	Rate
Maturing within one year		$	65,424	3.99	%	$	16,995	4.04	%
Maturing one year through two years			45,000	4.08	%		37,057	4.00	%
Maturing two years through three years			20,000	4.12	%		45,000	4.08	%
Maturing three years through four years			—	—	%		5,000	4.19	%
Maturing four years through five years			—	—	%		—	—	%
Thereafter			—	—	%		—	—	%
TOTAL		$	130,424	4.04	%	$	104,052	4.05	%

Of the advances outstanding at June 30, 2026, none are callable by the FHLB prior to maturity. In addition to the above advances, the Bank had additional available credit amounting to $918.4 million and $752.6 million with the FHLB at June 30, 2026 and 2025, respectively.

NOTE 8: 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

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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 June 30, 2026, the Debentures carried an interest rate of 6.68%. The balance of the Debentures outstanding was $7.2 million at June 30, 2026 and June 30, 2025. The Company used its net proceeds 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 redeemable at par, and mature in 2035. At June 30, 2026, the current rate was 6.38%. The carrying value of the debt securities was approximately $2.8 million at June 30, 2026 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 June 30, 2026, the current rate was 5.73%. The carrying value of the debt securities was approximately $5.7 million at June 30, 2026 and $5.6 million at June 30, 2025.

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 was carried at a value of $474,000 and $471,000 at June 30, 2026 and June 30, 2025, respectively.

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 were to bear interest thereafter at SOFR plus 3.77%. The Company retired this debt in May 2026 when the notes became redeemable. The carrying value of the notes were $0 million at June 30, 2026 and approximately $7.5 million at June 30, 2025.

NOTE 9: Employee Benefits

401(k) Retirement Plan. The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank makes “safe harbor” matching contributions of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee. Additional profit-sharing contributions of 5% of eligible salary have been accrued for the plan year ended June 30, 2026, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2026. Total 401(k) expense for fiscal 2026, 2025, and 2024, was $3.3 million, $2.4 million, and $2.8 million, respectively. At June 30, 2026 and 2025, 401(k) plan participants held approximately 424,000 and 418,000 shares, respectively, of the Company’s stock in the plan. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.

2003 Stock Option Plan. The Company adopted a stock option plan in October 2003 (the 2003 Plan). Under the plan, the Company granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 197,000 shares (split-adjusted) have been exercised, and options to purchase 45,000 shares (split-adjusted) have been forfeited. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the 2003 Plan.

As of June 30, 2026, no options remained outstanding and there was no remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan. No options to purchase shares were vested in fiscal 2026, 2025, or 2024. There were no shares exercised in fiscal 2026 or fiscal 2025, and 10,000 shares were exercised in fiscal 2024.

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2017 Omnibus Incentive Plan. The Company adopted an equity-based incentive plan in October 2017 (the 2017 Plan). Under the 2017 Plan, the Company reserved for issuance 500,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2017 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2017 Plan. Under the 2017 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.

Under the 2017 Plan, as of June 30, 2026, options to purchase 161,500 shares had been granted to employees and directors, of which 18,200 options had been exercised, 18,300 had been forfeited, and 125,000 remained outstanding. As of June 30, 2026, there was $435,000 in remaining unrecognized compensation expense related to unvested stock options under the 2017 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2017 Plan at June 30, 2026, was $4.3 million, and there were no options exercisable that were out-of-the-money at June 30, 2026, with a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2026, 2025, and 2024 was $592,000, $218,000, and $126,000, respectively.

Under the 2017 Plan, full value awards totaling 26,600 were issued to employees and directors in fiscal 2024, and none in fiscal 2025 or fiscal 2026. All full value awards were in the form of either:

●

restricted stock vesting at the rate of one-fifth of such shares per year,

●

performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period,

●

restricted stock vesting at the rate of one-third of such shares per year, or

●

restricted stock vesting after a three-year service requirement.

During fiscal 2026, 2025, and 2024, full value awards of 15,403, 29,523, and 16,624 shares were vested, respectively. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the vesting period. Compensation expense for full value awards under the 2017 Plan for fiscal 2026, 2025, and 2024 was $536,000, $845,000, and $903,000, respectively. At June 30, 2026, unvested compensation expense related to full value awards under the 2017 Plan was approximately $833,000.

2024 Omnibus Incentive Plan. The Company adopted an equity-based incentive plan in October 2024 (the 2024 Plan). Under the 2024 Plan, the Company reserved for issuance 650,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2024 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2024 Plan. Under the 2024 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.

Under the 2024 Plan, as of June 30, 2026, options to purchase 34,250 shares had been granted to employees and directors, of which none had been exercised or forfeited, and 34,250 remained outstanding. As of June 30, 2026, there was $411,000 in remaining unrecognized compensation expense related to unvested stock options under the 2024 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2024 Plan at June 30, 2026, was $626,000, and there were no options exercisable that were out-of-the-money at June 30, 2026, with a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2026 was $38,000, and $0 in fiscal 2025.

Under the 2024 Plan, full value awards totaling 25,000 and 22,800 shares were issued to employees and directors in fiscal 2026 and 2025, respectively. All full value awards were in the form of either:

●

restricted stock vesting at the rate of one-fifth of such shares per year,

●

performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period.

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During fiscal 2026, full value awards of 4,550 shares were vested, and none were vested in fiscal 2025. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the vesting period. Compensation expense for full value awards under the 2024 Plan for fiscal years 2026 and 2025 was $388,000 and $115,000, respectively. At June 30, 2026, unvested compensation expense related to full value awards under the 2024 Plan was approximately $2.3 million.

Changes in options outstanding under the 2003 Plan, the 2017 Plan, and the 2024 Plan were as follows:


	2026			2025			2024
	Weighted			Weighted			Weighted
	Average			Average			Average
	Price		Number	Price		Number	Price		Number
Outstanding at beginning of year	$	42.76	152,500	$	34.43	140,500	$	39.63	148,000
Granted		56.58	22,250		60.42	12,000		40.74	23,500
Exercised		37.67	(12,200)		—	—		24.49	(16,000)
Forfeited		43.78	(3,300)		—	—		42.35	(15,000)
Outstanding at year-end	$	45.06	159,250	$	42.76	152,500	$	34.43	140,500
Options exercisable at year-end	$	41.00	96,800	$	39.51	88,500	$	38.44	65,800

The following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal years 2026, 2025, and 2024:


	2026			2025			2024
Assumptions:
Expected dividend yield		1.79	%		1.52	%		2.06	%
Expected volatility		33.35	%		36.53	%		34.89	%
Risk-free interest rate		4.02	%		4.55	%		4.12	%
Weighted-average expected life (years)		10.00			10.00			10.00
Weighted-average fair value of options granted during the year	$	22.27		$	27.06		$	15.88

The table below summarizes information about stock options outstanding under the 2017 Plan, and the 2024 Plan at June 30, 2026:


Weighted	Options Outstanding			Options Exercisable
Average		Weighted			Weighted
Remaining		Average			Average
Contractual	Number	Exercise		Number	Exercise
Life	Outstanding	Price		Exercisable	Price
19 mo.	11,500		37.31	11,500		37.31
30 mo.	11,500		34.35	11,500		34.35
44 mo.	11,500		37.40	11,500		37.40
55 mo.	20,000		34.91	20,000		34.91
67 mo.	10,000		53.82	8,000		53.82
73 mo.	7,500		46.59	4,500		46.59
80 mo.	31,000		46.94	18,600		46.94
87 mo.	3,500		40.28	1,400		40.28
91 mo.	18,500		40.82	7,400		40.82
104 mo.	12,000		60.42	2,400		60.42
112 mo.	11,000		50.05	—		50.05
116 mo.	11,250		62.96	—		62.96

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NOTE 10: Income Taxes

The Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the expected income tax expense (benefit) and effective tax rate, computed by applying the effective statutory rate of 21% for the year ended June 30, 2026 as follows:


	For the year ended June 30
(dollars in thousands)	2026
U.S. Federal statutory tax rate	$	18,292	21.0	%
State and local income taxes, net of federal income tax effect ⁽¹⁾		431	0.5	%
Nontaxable or nondeductible items:
Nontaxable municipal income		(564)	(0.6)	%
Cash surrender value of Bank-owned life insurance		(540)	(0.6)	%
Tax credit benefits		(2,447)	(2.8)	%
Other, net		93	0.1	%
Actual provision	$	15,265	17.5	%

⁽¹⁾ State taxes in Missouri made up the majority (greater than 50%) of the tax effect in this category.

The following table presents the required disclosures prior to the Company's adoption of ASU 2023-09 and reconciles the expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:


	For the years ended June 30,
(dollars in thousands)	2025		2024
Tax at statutory rate	$	15,539	$	13,253
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(332)		(471)
State tax, net of Federal benefit		653		412
Cash surrender value of Bank-owned life insurance		(438)		(401)
Tax credit benefits		(710)		(12)
Other, net		704		147
Actual provision	$	15,416	$	12,928

For the years ended June 30, 2026, 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.

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


(dollars in thousands)		June 30, 2026		June 30, 2025
Deferred tax assets:
Provision for losses on loans		$	13,053	$	12,225
Accrued compensation and benefits			1,283		1,210
NOL carry forwards acquired			18		24
Unrealized loss on available-for-sale securities			2,749		3,201
Other			887		552
Total deferred tax assets			17,990		17,212

Deferred tax liabilities:
Purchase accounting adjustments			2,423		2,604
Depreciation			4,606		4,468
FHLB stock dividends			120		120
Prepaid expenses			563		586
Total deferred tax liabilities			7,712		7,778
Net deferred tax asset		$	10,278	$	9,434

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 and state tax examinations by tax authorities for tax years ending June 30, 2022 and before. The Company’s Missouri income tax returns for the fiscal years ended 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.

As of June 30, 2026, the Company had approximately $82,000 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.

The Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table represents income taxes paid, net of refunds received, disaggregated by federal, and state taxes, including income taxes paid, net of refunds received, in individual jurisdictions that are equal to or greater than 5% of total income taxes paid:


	For the year ended
	June 30,
(dollars in thousands)	2026
U.S. Federal income taxes paid	$	9,128
State income taxes paid		11
Total income taxes paid	$	9,139

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NOTE 11: Accumulated Other Comprehensive Loss (AOCL)

The components of AOCL, included in stockholders’ equity, are as follows:


		June 30,
(dollars in thousands)		2026			2025
Net unrealized loss on securities available-for-sale		$	(12,493)		$	(14,551)
Unrealized loss from defined benefit pension plan			(24)			(25)
			(12,517)			(14,576)
Tax effect			2,745			3,198
Net of tax amount		$	(9,772)		$	(11,378)

Amounts reclassified from AOCL and the affected line items in the consolidated statements of income during the years ended June 30, 2026 and 2025, were as follows:


		Amounts Reclassified From AOCL
(dollars in thousands)								Affected Line Item in the Condensed
		2026			2025			Consolidated Statements of Income
Unrealized gain on securities available-for-sale		$	—		$	48			Net realized gains (losses) on sale of AFS securities
Amortization of defined benefit pension items		$	1		$	2			Compensation and benefits (included in computation of net periodic pension costs)
Total reclassified amount before tax			1			50
Tax benefit			0			11			Provision for income tax
Total reclassification out of AOCL		$	1		$	40			Net Income

NOTE 12: Stockholders’ Equity and 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.

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 June 30, 2026 and 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 now allows institutions that adopt 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, and have fully completed the transition period as of June 30, 2026.

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As of June 30, 2026, 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. There are no conditions or events since that notification that management believes have changed the Bank’s category.

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


									To Be Well Capitalized Under
									Prompt Corrective Action
	Actual				For Capital Adequacy Purposes				Provisions
As of June 30, 2026	Amount		Ratio		Amount		Ratio		Amount		Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$	618,987	13.81	%	$	358,650	8.00	%	$	n/a	n/a
Southern Bank		592,351	13.37	%		354,515	8.00	%		443,143	10.00	%
Tier I Capital (to Risk-Weighted Assets)
Consolidated		562,917	12.56	%		268,988	6.00	%		n/a	n/a
Southern Bank		536,920	12.12	%		265,886	6.00	%		354,515	8.00	%
Tier I Capital (to Average Assets)
Consolidated		562,917	11.03	%		204,072	4.00	%		n/a	n/a
Southern Bank		536,920	10.45	%		205,606	4.00	%		257,007	5.00	%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated		547,151	12.20	%		201,741	4.50	%		n/a	n/a
Southern Bank		536,920	12.12	%		199,414	4.50	%		288,043	6.50	%


									To Be Well Capitalized Under
									Prompt Corrective Action
	Actual				For Capital Adequacy Purposes				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	%

The Bank’s ability to pay dividends on its common stock to the Company is restricted to maintain adequate capital as shown in the above tables. Additionally, prior regulatory approval is required for the declaration of any dividends generally in excess of the sum of net income for that calendar year and retained net income for the preceding two calendar years. At June 30, 2026, approximately $102.7 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval.

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NOTE 13: Commitments and Contingencies

Standby Letters of Credit. In the normal course of business, the Company issues various financial standby, performance standby, and commercial letters of credit for its customers. As consideration for the letters of credit, the institution charges letter of credit fees based on the face amount of the letters and the creditworthiness of the counterparties. These letters of credit are standalone agreements, and are unrelated to any obligation the depositor has to the Company.

Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers.

The Company had total outstanding standby letters of credit amounting to $7.5 million at June 30, 2026, and $4.6 million at June 30, 2025, with terms ranging from 12 to 24 months. At June 30, 2026, the Company’s deferred revenue under standby letters of credit agreements was nominal.

Off-balance-sheet and Credit Risk. The Company’s Consolidated Financial Statements do not reflect various financial instruments to extend credit to meet the financing needs of its customers.

These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments.

The Company had $948.5 million in commitments to extend credit at June 30, 2026, and $944.0 million at June 30, 2025.

At June 30, 2026, total commitments to originate fixed-rate loans with terms in excess of one year were $182.4 million at rates ranging from 4.65% to 8.25%, with a weighted-average rate of 6.59%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Company’s policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period.

The Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri, Arkansas, and Illinois. Although the Company has a diversified portfolio, loans aggregating $1.6 billion at June 30, 2026, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area.

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

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NOTE 14: Earnings Per Share

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



	June 30,
(dollars in thousands except per share data)	2026		2025		2024


Net income	$	71,839	$	58,578	$	50,182
Less: distributed earnings allocated to participating securities		(49)		(47)		(49)
Less: undistributed earnings allocated to participating securities		(265)		(217)		(208)
Net income available to common stockholders	$	71,525	$	58,314	$	49,925

Denominator for basic earnings per share
Weighted-average shares outstanding		11,101,806		11,234,703		11,292,634
Effect of dilutive securities stock options or awards		29,234		23,266		8,645
Denominator for diluted earnings per share		11,131,040		11,257,969		11,301,279

Basic earnings per share available to common stockholders	$	6.44	$	5.19	$	4.42
Diluted earnings per share available to common stockholders	$	6.43	$	5.18	$	4.42

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 34,250, 81,175, and 79,830 were excluded from the computation of diluted earnings per share for the fiscal years ended June 30, 2026, 2025 and 2024, respectively.

NOTE 15: 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 and significant to the fair value of the assets or liabilities

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Recurring Measurements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying 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 June 30, 2026 and 2025:


	Fair Value Measurements at June 30, 2026, 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 states and political subdivisions	$	23,384	$	—	$	23,384	$	—
Corporate obligations		28,072		—		28,072		—
Asset-backed securities		42,306		—		42,306		—
Other securities		2,955		—		2,955		—
MBS and CMOs		354,058		—		354,058		—
Mortgage servicing rights		2,313		—		—		2,313
Derivative financial instruments		320		—		320		—
Liabilities:
Derivative financial instruments		274		—		274		—


	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 states 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 year ended June 30, 2026.

AFS 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, our 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

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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 16: 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.

The following table summarizes the change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended June 30, 2026 and 2025:


	June 30,
(dollars in thousands)	2026			2025
MSR, beginning	$	2,297		$	2,448
Originations		234			171
Amortization		(231)			(214)
Change in fair value		13			(108)
MSR, ending	$	2,313		$	2,297

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 June 30, 2026 and 2025:


	Fair Value Measurements at June 30, 2026, 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	$	1,160	$	—	$	—	$	1,160
Collateral dependent loans		30,443		—		—		30,443


	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 gains and losses recognized on assets measured on a non-recurring basis for the years ended June 30, 2026 and 2025:


(dollars in thousands)	2026		2025
Foreclosed and repossessed assets held for sale	$	737	$	(45)
Total losses (gains) on assets measured on a non-recurring basis	$	737	$	(45)

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 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

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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.

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 table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at June 30, 2026 and 2025.

Range

Fair value at

Valuation

Unobservable

Weighted-average

(dollars in thousands)

June 30, 2026

technique

inputs

inputs applied

Nonrecurring Measurements

Foreclosed and repossessed assets

1,160

Third party appraisal

Marketability discount

11.8 - 25.3

12.8

Collateral dependent loans

30,443

Collateral value

Marketability discount

8.0 - 100.0

32.6

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

0.0 -100.0

14.1

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Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2026 and 2025:


		June 30, 2026
					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		$	90,966		$	90,966		$	—		$	—
Stock in FHLB			10,930			—			10,930			—
Stock in Federal Reserve Bank of St. Louis			9,181			—			9,181			—
Loans held for sale			1,787			—			1,787			—
Loans receivable, net			4,336,896			—			—			4,275,156
Accrued interest receivable			26,868			—			26,868			—
Financial liabilities
Deposits			4,407,846			2,669,144			—			1,736,455
Securities sold under agreements to repurchase			20,000			—			20,000			—
Advances from FHLB			130,424			—			130,428			—
Accrued interest payable			11,782			—			11,782			—
Subordinated debt			15,766			—			—			15,358
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans			—			—			—			—
Letters of credit			—			—			—			—
Lines of credit			—			—			—			—

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	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 held for sale		431		—		—		—
Loans receivable, net		4,048,961		—		—		3,976,696
Accrued interest receivable		26,018		—		26,018		—
Mortgage servicing rights		2,297		—		—		2,297
Derivative financial instruments		912		—		912		—
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
Derivative financial instruments		877		—		877		—
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		—		—		—		—
Letters of credit		—		—		—		—
Lines of credit		—		—		—		—

NOTE 16: 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 is 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 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 June 30, 2026, 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 consolidated statements of income during the year ended June 30, 2026 was $18,000 compared to $364,000 and $28,000 in the fiscal years ended June 30, 2025 and June 30, 2024, respectively.

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The notional amounts and estimated fair values of the Company’s interest rate swaps at June 30, 2026 and June 30, 2025 are presented in the table below.


	June 30, 2026
			Fair Value
			Prepaid		Accounts Payable
		Notional	Expenses and		and Other
(dollars in thousands)		Amount	Other Assets		Liabilities
1-4 Family interest rate swaps	$	60,000	$	171	$	125


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

The carrying amount of the hedged assets, located in loans receivable, net and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets at June 30, 2026 and June 30, 2025 are presented in the table below.


	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 fiscal year ended June 30, 2026, 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 interest rate swap contracts 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 June 30, 2026 are summarized as follows:


	June 30, 2026
			Fair Value
			Prepaid		Accounts Payable
	Notional		Expenses and		and Other
(dollars in thousands)	Amount		Other Assets		Liabilities
Non-Hedging interest rate swap contracts	$	28,500	$	149	$	—
Non-Hedging interest rate swap contracts		28,500		—		149

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NOTE 17: Condensed Parent Company Only Financial Statements

The following condensed balance sheets, statements of income and comprehensive income and cash flows for Southern Missouri Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto:


	June 30,
(dollars in thousands)	2026			2025

Condensed Balance Sheets
Assets
Cash and cash equivalents	$	13,535		$	18,449
Other assets		51,715			51,483
Investment in common stock of Bank		542,113			498,347
TOTAL ASSETS	$	607,363		$	568,279

Liabilities and Stockholders' Equity
Accrued expenses and other liabilities	$	919		$	379
Subordinated debt		15,766			23,208
TOTAL LIABILITIES		16,685			23,587
Stockholders' equity		590,678			544,692
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	607,363		$	568,279


	Year ended June 30,
(dollars in thousands)	2026		2025		2024

Condensed Statements of Income
Interest income	$	33	$	37	$	41
Interest expense		1,457		1,628		1,742
Net interest expense		(1,424)		(1,591)		(1,701)
Dividends from the Bank		33,500		17,000		16,000
Operating expenses		1,145		1,248		1,018
Income before income taxes and equity in undistributed income of the Bank		30,931		14,161		13,281
Income tax (expense) benefit		539		(54)		571
Income before equity in undistributed income of the Bank		31,470		14,107		13,852
Equity in undistributed income of the Bank		40,369		44,471		36,330
NET INCOME	$	71,839	$	58,578	$	50,182
COMPREHENSIVE INCOME	$	73,445	$	64,655	$	54,652

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		Year ended June 30,
(dollars in thousands)		2026			2025			2024
Condensed Statements of Cash Flow
Cash Flows from operating activities:
Net income		$	71,839		$	58,578		$	50,182
Changes in:
Equity in undistributed income of the Bank			(40,369)			(44,471)			(36,330)
Other adjustments, net			825			753			56
NET CASH PROVIDED BY OPERATING ACTIVITIES			32,295			14,860			13,908

NET CASH USED IN INVESTING ACTIVITIES			—			—			—

Cash flows from financing activities:
Dividends on common stock			(11,132)			(10,378)			(9,526)
Payments to acquire treasury stock			(18,577)			—			(3,857)
Repayments of subordinated debt			(7,500)			—			—
NET CASH USED IN FINANCING ACTIVITIES			(37,209)			(10,378)			(13,383)

Net (decrease) increase in cash and cash equivalents			(4,914)			4,482			525
Cash and cash equivalents at beginning of year			18,449			13,967			13,442
CASH AND CASH EQUIVALENTS AT END OF YEAR		$	13,535		$	18,449		$	13,967

NOTE 18: Segment Reporting

The Company operates as a single segment entity for financial reporting purposes and has 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’s financial statement disclosures fully comply with ASU 2023-07, and no additional qualitative segment disclosures are necessary.

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Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

An evaluation of the Company’s disclosure controls and procedures (as defined in Rule13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) as of June 30, 2026, 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 our disclosure controls and procedures were effective as of June 30, 2026, in ensuring that the information required to be disclosed in the reports the Company files or submits under the Exchange Act is (i) accumulated and communicated to our 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. We intend to continually review and evaluate the design and effectiveness of the Company’s disclosure controls and procedures and to improve the Company’s controls and procedures over time and to correct any deficiencies that we may discover in the future. The goal is to ensure that senior management has timely access to all material financial and non-financial information concerning the Company’s business. While we believe the present design of the disclosure controls and procedures is effective to achieve its goal, future events affecting its business may cause the Company to modify its disclosure controls and procedures. 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 year ended June 30, 2026, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company does not expect that its disclosure controls and procedures and internal control over financial reporting will prevent all error 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 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.

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Management’s Report on Internal Control Over Financial Reporting

The management of Southern Missouri Bancorp, Inc., is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance to the Company’s management and board of directors regarding the reliability of financial reporting and the preparation of the consolidated financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements. All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human error and the circumvention of overriding controls. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of the Company’s internal control over financial reporting as of June 30, 2026. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on our assessment, we believe that, as of June 30, 2026, the Company’s internal control over financial reporting was effective based on those criteria. The Company’s internal control over financial reporting as of June 30, 2026, has been audited by Forvis Mazars, L.L.P., an independent registered public accounting firm. Their attestation report on the effectiveness of the Company’s internal control over financial reporting as of June 30, 2026, is set forth below.


Date: September 11, 2026	By:	/s/ Greg A. Steffens
		Greg A. Steffens
		Chairman and Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Stefan Chkautovich
		Stefan Chkautovich
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer)
	By:	/s/ Jane E. Butler
		Jane E. Butler
		Sr. Vice President and Chief Accounting Officer
		(Principal Accounting Officer)

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Report of Independent Registered Public Accounting Firm

To the Shareholders, Board of Directors, and Audit Committee

Southern Missouri Bancorp, Inc.

Poplar Bluff, Missouri

Opinion on the Internal Control over Financial Reporting

We have audited Southern Missouri Bancorp, Inc.’s (the “Company”) internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2026, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of June 30, 2026 and 2025, and for each of the three years in the period ended June 30, 2026, and our report dated September 11, 2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definitions and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of reliable financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Forvis Mazars, LLP

Springfield, Missouri

September 11, 2026

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Changes in Internal Controls

There were no changes in our internal control over financial reporting (as defined in SEC Rule 13a-15(f) under the Exchange Act) that occurred during the June 30, 2026, fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

(a)

Nothing to report.

(b)

During the quarter ended June 30, 2026, 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.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

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PART III

Item 10. Directors, Executive Officers, and Corporate Governance

Directors

Information concerning the directors of the Company required by this item is incorporated herein by reference from the definitive proxy statement for the annual meeting of shareholders to be held in October 2026, a copy of which will be filed not later than 120 days after the close of the fiscal year.

Executive Officers

Information concerning the executive officers of the Company required by this item is contained in Part I of this Annual Report on Form 10-K under the heading “Information about our Executive Officers,” and is incorporated herein by reference.

Insider Trading Policy

Information concerning our insider trading policy is incorporated herein by reference from our definitive Proxy Statement for the annual meeting of shareholders to be held in October 2026, a copy of which will be filed no later than 120 days after the close of the fiscal year. In addition, a copy of our insider trading policy is filed as Exhibit 19 to our Annual Report on Form 10-K for the year ended June 30, 2026.

Audit Committee Matters and Audit Committee Financial Expert

The Board of Directors of the Company has a standing Audit/Compliance Committee, which has been established in accordance with Section 3(a)(58)(A) of the Exchange Act. The members of that committee are Directors Love (Chairman), Bagby, Schalk, Brooks, Hensley, Robison, Tooley, and McClain, all of whom are considered independent under applicable Nasdaq listing standards. The Board of Directors has determined that Mr. Love is an "audit committee financial expert" as defined in applicable SEC rules. Additional information concerning the audit committee of the Company’s Board of Directors is incorporated herein by reference from the Company’s definitive proxy statement for its Annual Meeting of Stockholders to be held in October 2026, except for information contained under the heading "Report of the Audit Committee of the Board of Directors", a copy of which will be filed not later than 120 days after the close of the fiscal year.

Code of Ethics

The Company has adopted a written Code of Conduct and Ethics (the "Code") that applies to our Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, and persons with similar functions, and to all our other team members and our directors. The Code may be reviewed at the Company’s website, www.bankwithsouthern.com, by following the "investor relations" and "corporate governance" links. You may also obtain a copy by writing to the Corporate Secretary of the Company, 2991 Oak Grove Road, Poplar Bluff, MO 63901, or by calling 573-778-1800.

Nomination Procedures

There have been no material changes to the procedures by which stockholders may recommend nominees to the Company’s Board of Directors since last disclosed to shareholders.

Item 11. Executive Compensation

The information required by this item is incorporated herein by reference from the definitive proxy statement for the annual meeting of shareholders to be held in October 2026, a copy of which will be filed not later than 120 days after the close of the fiscal year.

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Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management

Information concerning security ownership of certain beneficial owners and management required by this item is incorporated herein by reference from the definitive proxy statement for the annual meeting of shareholders to be held in October 2026, a copy of which will be filed not later than 120 days after the close of the fiscal year.

Change in Control

Management is not aware of any arrangements, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.

Equity Compensation Plan Information

The following table sets forth information as of June 30, 2026, with respect to compensation plans under which shares of common stock may be issued.


	Number of securities to	Weighted-average		Number of Securities
	be issued upon exercise	exercise price of		remaining available for
	of outstanding options	outstanding options		future issuance under
Plan Category	warrants and rights	warrants and rights		equity compensation plans
Equity Compensation Plans Approved By Security Holders	159,250	$	45.06	503,788	⁽¹⁾
Equity Compensation Plans Not Approved By Security Holders	—		—	—
Total	159,250	$	45.06	503,788

(1)

Under the terms of the 2024 Omnibus Incentive Plan, the total number of shares available for awards under that plan is 650,000, against which limit, full value shares are to be counted on a 2.5-for-1 basis. The 503,788 shares remaining available for future awards under the plan, as of June 30, 2026, reflects the 650,000 shares originally available under the shares authorization, less awards of 34,250 option shares, and 47,800 full value shares (counted on a 2.5-for-1 basis, or 119,500) plus forfeitures of 3,015 full value shares (counted on a 2.5-for-1 basis, or 7,538 shares).

Item 13. Certain Relationships, Related Transactions, and Director Independence

Information concerning certain relationships and related transactions and Director independence required by this item is incorporated herein by reference from the definitive proxy statement for the annual meeting of shareholders to be held in October 2026, a copy of which will be filed not later than 120 days after the close of the fiscal year.

Item 14. Principal Accountant Fees and Services

Information concerning fees and services by our principal accountants required by this item is incorporated herein by reference from our definitive Proxy Statement for the 2026 Annual Meeting of Shareholders, a copy of which will be filed not later than 120 days after the close of the fiscal year. The Independent Registered Public Accounting Firm is Forvis Mazars, LLP (PCAOB Firm ID No. 686) located in Springfield, Missouri.

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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1)Financial Statements:

The following are contained in Part II, Item 8 of this Form 10-K:

Report of Independent Registered Public Accounting Firm. Forvis Mazars, LLP, Springfield, MO, Firm ID 686.

Consolidated Balance Sheets at June 30, 2026 and 2025

Consolidated Statements of Income for the Years Ended June 30, 2026, 2025, and 2024

Consolidated Statements of Stockholders’ Equity for the Years Ended June 30, 2026, 2025, and 2024

Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2026, 2025, and 2024

Consolidated Statements of Cash Flows for the Years Ended June 30, 2026, 2025, and 2024

Notes to the Consolidated Financial Statements, June 30, 2026, 2025, and 2024

(a)(2)Financial Statement Schedules:

All financial statement schedules have been omitted as the information is not required under the related instructions or is not applicable.

(a)(3)Exhibits:

(b)Exhibits incorporated by reference below are incorporated by reference pursuant to Rule 12b-32.


Regulation S-K
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)

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	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, 1999)
		(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)
	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 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 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 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 Agreement for fiscal 2026
10.2	Director Fee Arrangements for 2026
19	Insider Trading Policy
21	Subsidiaries of the Registrant
23	Consent of Auditors
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)
97	Policy Relating to Recovery of Erroneously Awarded Compensation (filed as an exhibit to the Registrant’s Annual Report on Form 10-K for the year ended June 30, 2024 and incorporated herein by reference)
101	Includes the following financial and related information from Southern Missouri Bancorp, Inc.’s Annual Report on Form 10-K as of and for the year ended June 30, 2026, 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 Annual Report on Form 10-K, formatted in Inline XBRL

Item 16. Form 10-K Summary

None.

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SIGNATURES

Pursuant to the requirements of section 13 or 15(d) 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.
Date:	September 11, 2026	By:	/s/ Greg A. Steffens
			Greg A. Steffens
			Chairman and Chief Executive Officer
			(Duly Authorized Representative)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Greg A. Steffens	September 11, 2026
	Greg A. Steffens
	Chairman and Chief Executive Officer
	(Principal Executive Officer)

By:	/s/ L. Douglas Bagby	September 11, 2026
	L. Douglas Bagby
	Vice-Chairman and Director

By:	/s/ Rebecca McLane Brooks	September 11, 2026
	Rebecca McLane Brooks
	Director

By:	/s/ Charles R. Love	September 11, 2026
	Charles R. Love
	Director

By:	/s/ Dennis C. Robison	September 11, 2026
	Dennis C. Robison
	Director

By:	/s/ David J. Tooley	September 11, 2026
	David J. Tooley
	Director

By:	/s/ Todd E. Hensley	September 11, 2026
	Todd E. Hensley
	Director

By:	/s/ Daniel L. Jones	September 11, 2026
	Daniel L. Jones
	Director

By:	/s/ David L. McClain	September 11, 2026
	David L. McClain
	Director

By:	/s/ Kenneth J. Bower	September 11, 2026
	Kenneth J. Bower Director

By:	/s/ Daniel P. McCoy	September 11, 2026
	Daniel P. McCoy Director

By:	/s/ Stefan Chkautovich	September 11, 2026
	Stefan Chkautovich
	Chief Financial Officer (Principal Financial Officer)
By:	/s/ Jane E. Butler	September 11, 2026
	Jane E. Butler
	Chief Accounting Officer (Principal Accounting Officer)