SMBC Hits $5B Assets, Driven by Aggressive M&A Strategy

TL;DR

**SMBC is a growth-by-acquisition machine, but watch for integration risks and economic headwinds to challenge its $5 billion asset base.**

AI Summary

SOUTHERN MISSOURI BANCORP, INC. (SMBC) reported total assets of $5.0 billion, total deposits of $4.3 billion, and stockholders' equity of $544.7 million as of June 30, 2025. The company's revenue is primarily derived from interest on loans and investment securities, supplemented by banking service charges and loan servicing income. SMBC has actively pursued growth through acquisitions, completing eight whole bank acquisitions in the last ten years, including Citizens Bancshares, Co. for $985.7 million in assets in January 2023, and Fortune Financial, Inc. for $253.0 million in assets in February 2022. These acquisitions often resulted in significant goodwill, such as $23.5 million from the Citizens acquisition, attributed to expected synergies. The company also raised $25.0 million in gross proceeds from an at-the-market common stock issuance in June 2017 to support organic growth and acquisitions. Key risks include potential adverse economic conditions, interest rate fluctuations, and integration challenges from mergers, which could impact expected cost savings and lead to goodwill impairment charges.

Why It Matters

SMBC's aggressive acquisition strategy, evidenced by eight bank purchases in a decade, has propelled its asset base to $5.0 billion, signaling a clear growth trajectory for investors. This expansion, particularly into new MSAs like Cape Girardeau and Springfield, enhances its competitive position against regional banks by diversifying its geographic footprint and customer base. For employees, rapid integration of acquired entities presents both opportunities and challenges, while customers benefit from an expanded branch network across Missouri, Arkansas, Illinois, and Kansas. The company's ability to successfully integrate these acquisitions and realize anticipated synergies will be crucial for sustained profitability and market share in a competitive banking landscape.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its extensive acquisition history, which introduces integration challenges and the potential for goodwill impairment, as seen with $23.5 million in goodwill from the Citizens Bancshares acquisition. Furthermore, the filing explicitly lists 'potential adverse impacts to economic conditions' and 'fluctuations in interest rates and inflation' as significant forward-looking risks, directly impacting its primary revenue streams from loans and investments.

Analyst Insight

Investors should closely monitor SMBC's future earnings reports for evidence of successful integration of its numerous acquisitions and the realization of expected synergies. Pay particular attention to net interest margin trends and asset quality metrics, especially in a rising interest rate environment, to assess the sustainability of its growth strategy.

Financial Highlights

debt To Equity

N/A

revenue

N/A

operating Margin

N/A

total Assets

$5.0 billion

total Debt

N/A

net Income

N/A

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $5.0 billion — Total Assets (as of June 30, 2025, reflecting significant growth)
• $4.3 billion — Total Deposits (as of June 30, 2025, funding loan and investment activities)
• $544.7 million — Stockholders' Equity (as of June 30, 2025, indicating financial strength)
• $985.7 million — Citizens Bancshares, Co. Total Assets (at acquisition closing, contributing significantly to SMBC's growth)
• $23.5 million — Goodwill from Citizens Acquisition (reflecting expected synergies and economies of scale)
• $25.0 million — Gross Proceeds from Stock Issuance (in June 2017, used for general corporate purposes and acquisitions)
• 62 — Full Service Branch Offices (as of June 30, 2025, demonstrating expanded market presence)
• 11,290,667 — Shares of Common Stock Outstanding (as of September 8, 2025)
• $557.3 million — Aggregate Market Value of Non-Affiliate Common Equity (as of the last business day of the most recently completed second fiscal quarter)
• $253.0 million — Fortune Financial, Inc. Total Assets (at acquisition closing, further expanding SMBC's footprint)

Key Players & Entities

• SOUTHERN MISSOURI BANCORP, INC. (company) — parent company of Southern Bank
• Southern Bank (company) — primary operating subsidiary
• Citizens Bancshares, Co. (company) — acquired by SMBC in January 2023
• Fortune Financial, Inc. (company) — acquired by SMBC in February 2022
• Federal Reserve Board (regulator) — primary federal regulator for Southern Bank
• Missouri Division of Finance (regulator) — primary state regulator for Southern Bank
• NASDAQ Global Market (regulator) — exchange where SMBC common stock is quoted
• Federal Home Loan Bank of Des Moines (company) — wholesale funding provider
• Poplar Bluff (person) — headquarters location
• SEC (regulator) — Securities and Exchange Commission

FAQ

Risk Factors

• Interest Rate Fluctuations [high — financial]: Adverse changes in interest rates can impact net interest margin and the fair value of investment securities. The company's profitability is sensitive to the spread between interest income and interest expense.
• Merger Integration Challenges [medium — operational]: Acquisitions, such as Citizens Bancshares for $985.7 million in assets and Fortune Financial for $253.0 million in assets, carry integration risks. Failure to achieve expected synergies could impact cost savings and lead to goodwill impairment charges.
• Adverse Economic Conditions [medium — market]: Downturns in the general economy can lead to increased loan delinquencies, defaults, and reduced demand for banking services, impacting asset quality and revenue.
• Regulatory Compliance [medium — regulatory]: As a bank holding company regulated by the Federal Reserve Board and with the Bank regulated by the Missouri Division of Finance, SMBC is subject to extensive regulations. Changes in these regulations could increase compliance costs or restrict business activities.
• Goodwill Impairment [medium — financial]: Significant goodwill, such as $23.5 million from the Citizens acquisition, is recorded on the balance sheet. If acquired businesses underperform or synergies are not realized, impairment charges could negatively affect earnings.

Industry Context

Southern Missouri Bancorp operates within the highly competitive U.S. banking industry, characterized by a mix of large national banks, regional players, and community banks. The industry is undergoing digital transformation, with increasing competition from fintech companies. Consolidation through mergers and acquisitions remains a significant trend as institutions seek scale and efficiency.

Regulatory Implications

As a bank holding company and a state-chartered bank, SMBC is subject to stringent oversight from the Federal Reserve Board and the Missouri Division of Finance. Compliance with capital requirements, lending standards, and consumer protection laws is paramount and can influence strategic decisions and operational costs.

What Investors Should Do

1. Monitor acquisition integration success
2. Assess interest rate sensitivity
3. Evaluate asset quality trends

Key Dates

• 2025-06-30: Fiscal Year End — Reporting period for key financial metrics like total assets ($5.0 billion), total deposits ($4.3 billion), and stockholders' equity ($544.7 million).
• 2023-01-01: Citizens Bancshares, Co. Acquisition — Acquisition of a company with $985.7 million in assets, contributing to growth and generating $23.5 million in goodwill.
• 2022-02-01: Fortune Financial, Inc. Acquisition — Acquisition of a company with $253.0 million in assets, further expanding SMBC's footprint.
• 2017-06-01: At-the-Market Common Stock Issuance — Raised $25.0 million in gross proceeds to support organic growth and acquisitions.
• 1999-04-01: Change of Incorporation to Missouri — Reincorporated from Delaware to Missouri, establishing the current corporate structure.
• 1887-01-01: Original Charter of Southern Bank — Establishes the long history of the Bank, dating back to its founding as a mutual savings and loan association.

Glossary

Bank Holding Company

A company that owns or controls one or more banks. (SMBC is a bank holding company, making it subject to regulation by the Federal Reserve Board.)

Deposit Insurance Fund (DIF)

A fund managed by the FDIC that insures deposits in member banks up to applicable limits. (Ensures depositor confidence and stability for SMBC's deposits.)

Federal Home Loan Bank (FHLB)

A regional wholesale bank that provides funding to member financial institutions. (A source of wholesale funding for SMBC's lending and investment activities.)

Goodwill

An intangible asset that arises when one company acquires another for a price greater than the fair value of its identifiable net assets. (Significant goodwill on SMBC's balance sheet, primarily from acquisitions, carries the risk of impairment.)

At-the-Market (ATM) Offering

A type of stock offering where a company sells its shares into the existing stock market over a period of time. (SMBC used this method to raise $25.0 million in 2017 for growth initiatives.)

Net Interest Margin

The difference between the interest income generated by a bank and the interest paid out to its lenders (e.g., depositors), expressed as a percentage of its interest-earning assets. (A key profitability metric for banks, sensitive to interest rate fluctuations.)

Year-Over-Year Comparison

The provided 10-K excerpt focuses on the fiscal year ending June 30, 2025. Without comparative data from a prior filing, a direct year-over-year comparison of key metrics like revenue growth, margin changes, or the emergence of new risks cannot be performed. However, the context indicates a history of active acquisitions, suggesting a strategy of growth through consolidation.

Key Financial Figures

• $0.01 — h Registered Common Stock , par value $0.01 per share SMBC The NASDAQ Stock Mar
• $5.0 b — , 2025, the Company had total assets of $5.0 billion, total deposits of $4.3 billion a
• $4.3 billion — sets of $5.0 billion, total deposits of $4.3 billion and stockholders' equity of $544.7 mill
• $544.7 million — 4.3 billion and stockholders' equity of $544.7 million. The Company has not engaged in any sig
• $985.7 m — ustments, Citizens held total assets of $985.7 million, loans, net, of $456.0 million, a
• $456.0 m — ssets of $985.7 million, loans, net, of $456.0 million, and deposits of $851.0 million.
• $851.0 million — net, of $456.0 million, and deposits of $851.0 million. The acquisition resulted in goodwill o
• $23.5 m — The acquisition resulted in goodwill of $23.5 million, which was attributable to synerg
• $253.0 m — justments, Fortune held total assets of $253.0 million, loans, net, of $202.1 million, a
• $202.1 m — ssets of $253.0 million, loans, net, of $202.1 million, and deposits of $218.3 million.
• $218.3 million — net, of $202.1 million, and deposits of $218.3 million. The acquisition resulted in goodwill o
• $12.8 m — The acquisition resulted in goodwill of $12.8 million, which was attributable to synerg
• $442,000 — The acquisition resulted in goodwill of $442,000, which was recorded at the Bank level,
• $70.6 m — t closing, Central held total assets of $70.6 million, loans, net, of $51.4 million, an
• $51.4 m — assets of $70.6 million, loans, net, of $51.4 million, and deposits of $46.7 million. T

Filing Documents

• smbc-20250630x10k.htm (10-K) — 9254KB
• smbc-20250630xex10d1.htm (EX-10.1) — 19KB
• smbc-20250630xex10d2.htm (EX-10.2) — 2KB
• smbc-20250630xex19.htm (EX-19) — 45KB
• smbc-20250630xex21.htm (EX-21) — 20KB
• smbc-20250630xex23.htm (EX-23) — 3KB
• smbc-20250630xex31d1.htm (EX-31.1) — 11KB
• smbc-20250630xex31d2.htm (EX-31.2) — 11KB
• smbc-20250630xex32.htm (EX-32) — 15KB
• smbc-20250630x10k005.jpg (GRAPHIC) — 75KB
• 0001558370-25-012001.txt ( ) — 35883KB
• smbc-20250630.xsd (EX-101.SCH) — 125KB
• smbc-20250630_cal.xml (EX-101.CAL) — 148KB
• smbc-20250630_def.xml (EX-101.DEF) — 509KB
• smbc-20250630_lab.xml (EX-101.LAB) — 1017KB
• smbc-20250630_pre.xml (EX-101.PRE) — 866KB
• smbc-20250630x10k_htm.xml (XML) — 10058KB

of Form 10-K - Portions of the Proxy Statement for the 2025 Annual Meeting of Stockholders

Part III of Form 10-K - Portions of the Proxy Statement for the 2025 Annual Meeting of Stockholders. Table of Contents SOUTHERN MISSOURI BANCORP, INC. FORM 10-K TABLE OF CONTENTS Page PART I 3 Item 1. Description of Business 3 Item 1A.

Risk Factors

Risk Factors 39 Item 1B. Unresolved Staff Comments 52 Item 1C. Cybersecurity, Risk Management, Strategy and Governance 52 Item 2. Description of Properties 54 Item 3.

Legal Proceedings

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 60 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 75 Item 8.

Financial Statements and Supplementary Information

Financial Statements and Supplementary Information 77 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 136 Item 9A.

Controls and Procedures

Controls and Procedures 136 Item 9B. Other Information 140 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 140 PART III 141 Item 10. Directors, Executive Officers, and Corporate Governance 141 Item 11.

Executive Compensation

Executive Compensation 141 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 142 Item 13. Certain Relationships, Related Transactions, and Director Independence 142 Item 14. Principal Accountant Fees and Services 142 PART IV 143 Item 15. Exhibits and Financial Statement Schedules 143 Item 16. Form 10-K Summary 144

Signatures

Signatures 145 2 Table of Contents PART I

Description of Business

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 deposit

Forward Looking Statements

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

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View this 10-K filing on SEC EDGAR