10-K/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________

FORM 10-K/A

(Amendment No. 1)

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended June 30, 2019          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

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   YES         NO   X

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   X

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   X     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 and post such files.   YES   X     NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer Accelerated filer X Non-accelerated filer Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES          NO    X

The aggregate market value of the voting stock 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 $274.4 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 13, 2019, there were issued and outstanding 9,201,783 shares of the Registrant's common stock.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of Form 10-K - Portions of the Proxy Statement for the 2019 Annual Meeting of Stockholders.

1

EXPLANATORY NOTE

The sole purpose of this Amendment No. 1 on Form 10-K/A to our Annual Report on Form 10-K for the fiscal year ended June 30, 2019 is to insert the signature of our independent registered public accounting firm, BKD, LLP, in their reports contained in Item 8 and Item 9A, and in their consent filed as Exhibit 23, which was omitted from the reports and consent filed with the original Form 10-K.  Other than the inclusion with this Amendment No. 1 of new certifications required by Rules 13a-14(a) and 13a-14(b) under the Securities Exchange Act of 1934, as amended, and an updated list of exhibits in Item 15, this Amendment No. 1 does not modify, or update any other disclosures contained in, our original Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

Item 8.        Financial Statements and Supplementary Information

Report of Independent Registered Public Accounting Firm

Stockholders, Board of Directors

and Audit Committee

Southern Missouri Bancorp, Inc.

Poplar Bluff, Missouri

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Southern Missouri Bancorp, Inc. (“Company”) as of June 30, 2019 and 2018 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, 2019, 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, 2019 and 2018, and the results of its operations and its cash flows for each of the years in the three year period ended June 30, 2019, in conformity with accounting principles generally accepted in the United States of America.

We have also 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, 2019 based on criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated September 13, 2019, expressed an unqualified opinion.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the Company’s 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 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 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 supporting the amounts and disclosures in the 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 financial statements.  We believe that our audits provide a reasonable basis for our opinion.

We have served as the Company’s auditor since 2002.

/s/ BKD, LLP

Decatur, Illinois

September 13, 2019

2

> CONSOLIDATED BALANCE SHEETS <

JUNE 30, 2019 AND 2018

Southern Missouri Bancorp, Inc.

(dollars in thousands)	2019			2018
Assets
Cash and cash equivalents	$	35,400		$	26,326
Interest-bearing time deposits		969			1,953
Available for sale securities (Note 2)		165,535			146,325
Stock in FHLB of Des Moines		5,233			5,661
Stock in Federal Reserve Bank of St. Louis		4,350			3,566
Loans receivable, net of allowance for loan losses of      $19,903 and $18,214 at June 30, 2019 and      June 30, 2018, respectively (Notes 3 and 4)		1,846,405			1,563,380
Accrued interest receivable		10,189			7,992
Premises and equipment, net (Note 5)		62,727			54,832
Bank owned life insurance – cash surrender value		38,337			37,547
Goodwill		14,089			13,078
Other intangible assets, net		9,239			6,918
Prepaid expenses and other assets		21,929			18,537
TOTAL ASSETS	$	2,214,402		$	1,886,115
Liabilities and Stockholders' Equity
Deposits (Note 6)	$	1,893,695		$	1,579,902
Securities sold under agreements to repurchase (Note 7)		4,376			3,267
Advances from FHLB of Des Moines (Note 8)		44,908			76,652
Note payable (Note 9)		3,000			3,000
Accounts payable and other liabilities		12,889			6,449
Accrued interest payable		2,099			1,206
Subordinated debt (Note 10)		15,043			14,945
TOTAL LIABILITIES		1,976,010			1,685,421
Commitments and contingencies (Note 15)
Common stock, $.01 par value; 25,000,000 and 12,000,000 shares authorized;      9,324,659 and 8,996,584 shares issued, respectively,      at June 30, 2019 and June 30, 2018		93			90
Additional paid-in capital		94,541			83,413
Retained earnings		143,677			119,536
Treasury stock of 35,351 and 0 shares at June 30, 2019 and June 30, 2018,      respectively, at cost		(1,166	)		-
Accumulated other comprehensive income (loss)		1,247			(2,345	)
TOTAL STOCKHOLDERS' EQUITY		238,392			200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,214,402		$	1,886,115

See accompanying notes to consolidated financial statements.

3

> CONSOLIDATED STATEMENTS OF INCOME <

YEARS ENDED JUNE 30, 2019, 2018 AND 2017

Southern Missouri Bancorp, Inc.

(dollars in thousands except per share data)	2019		2018			2017
Interest Income:
Loans	$	92,328	$	73,122		$	57,988
Investment securities		2,323		2,166			1,975
Mortgage-backed securities		2,704		1,817			1,496
Other interest-earning assets		127		69			29
TOTAL INTEREST INCOME		97,482		77,174			61,488
Interest Expense:
Deposits		21,208		12,825			8,472
Securities sold under agreements to repurchase		36		37			95
Advances from FHLB of Des Moines		2,377		1,041			1,138
Note payable		158		121			13
Subordinated debt		921		767			648
TOTAL INTEREST EXPENSE		24,700		14,791			10,366
NET INTEREST INCOME		72,782		62,383			51,122
Provision for loan losses (Note 3)		2,032		3,047			2,340
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		70,750		59,336			48,782
Noninterest income:
Deposit account charges and related fees		5,005		4,584			3,824
Bank card interchange income		4,658		3,775			2,864
Loan late charges		463		432			432
Loan servicing fees		376		801			397
Other loan fees		1,360		1,467			1,146
Net realized gains on sale of loans		771		804			840
Net realized gains on sale of AFS securities		244		334			-
Earnings on bank owned life insurance		1,329		947			1,135
Other income		964		727			446
TOTAL NONINTEREST INCOME		15,170		13,871			11,084
Noninterest expense:
Compensation and benefits		26,379		23,302			19,406
Occupancy and equipment, net		10,625		9,763			8,418
Deposit insurance premiums		661		517			681
Legal and professional fees		965		1,178			1,233
Advertising		1,161		1,197			1,102
Postage and office supplies		772		729			561
Intangible amortization		1,672		1,457			911
Bank card network fees		2,120		1,580			1,150
Other operating expense		5,614		4,752			4,790
TOTAL NONINTEREST EXPENSE		49,969		44,475			38,252
INCOME BEFORE INCOME TAXES		35,951		28,732			21,614
Income Taxes (Note 11)
Current		6,972		8,333			4,899
Deferred		75		(530	)		1,163
		7,047		7,803			6,062
NET INCOME	$	28,904	$	20,929		$	15,552
Basic earnings per share available to common stockholders	$	3.14	$	2.40		$	2.08
Diluted earnings per share available to common stockholders	$	3.14	$	2.39		$	2.07
Dividends paid	$	0.52	$	0.44		$	0.40

See accompanying notes to consolidated financial statements.

4

> CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <

YEARS ENDED JUNE 30, 2019, 2018 AND 2017

Southern Missouri Bancorp, Inc.

	2019			2018			2017
(dollars in thousands)
NET INCOME	$	28,904		$	20,929		$	15,552
Other comprehensive income:
Unrealized gains (losses) on securities available-for-sale		4,940			(3,314	)		(1,879	)
Less:  reclassification adjustment for realized gains                   included in net income		244			334			-
Unrealized gains (losses) on available-for-sale securities for                   which a portion of an other-than-temporary impairment                   has been recognized in income		-			(213	)		57
Defined benefit pension plan net (loss) gain		(10	)		(44	)		13
Tax (expense) benefit		(1,094	)		1,033			674
Total other comprehensive income (loss)		3,592			(2,872	)		(1,135	)
COMPREHENSIVE INCOME	$	32,496		$	18,057		$	14,417

See accompanying notes to consolidated financial statements.

5

> CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY < YEARS ENDED JUNE 30, 2019, 2018 AND 2017 Southern Missouri Bancorp, Inc.
			Additional								Accumulated Other			Total
	Common		Paid-In		Retained			Treasury			Comprehensive			Stockholders'
(dollars in thousands)	Stock		Capital		Earnings			Stock			Income (Loss)			Equity
BALANCE AS OF JUNE 30, 2016	$	74	$	34,432	$	89,798		$	-		$	1,662		$	125,966
Net income						15,552									15,552
Change in unrealized gain on available for sale securities												(1,148	)		(1,148	)
Defined benefit pension plan net loss												13			13
Dividends paid on common stock ($.40 per share )						(2,981	)								(2,981	)
Stock option expense				11											11
Stock grant expense				274											274
Tax benefit of stock grants				225											225
Exercise of stock options				61											61
Common stock issued		12		35,098											35,110
BALANCE AS OF JUNE 30, 2017	$	86	$	70,101	$	102,369		$	-		$	527		$	173,083
Net income						20,929									20,929
Change in unrealized gain on available for sale securities						65						(2,828	)		(2,763	)
Defined benefit pension plan net loss												(44	)		(44	)
Dividends paid on common stock ($.44 per share )						(3,827	)								(3,827	)
Stock option expense				22											22
Stock grant expense				171											171
Exercise of stock options				172											172
Common stock issued		4		12,947											12,951
BALANCE AS OF JUNE 30, 2018	$	90	$	83,413	$	119,536		$	-		$	(2,345	)	$	200,694
Net income						28,904									28,904
Change in unrealized gain on available for sale securities												3,602			3,602
Defined benefit pension plan net loss												(10	)		(10	)
Dividends paid on common stock ($.52 per share )						(4,763	)								(4,763	)
Stock option expense				51											51
Stock grant expense				323											323
Common stock issued		3		10,754											10,757
Treasury stock purchased									(1,166	)					(1,166	)
BALANCE AS OF JUNE 30, 2019	$	93	$	94,541	$	143,677		$	(1,166	)	$	1,247		$	238,392

See accompanying notes to consolidated financial statements.

6

> CONSOLIDATED STATEMENTS OF CASH FLOWS < YEARS ENDED JUNE 30, 2019, 2018 AND 2017 Southern Missouri Bancorp, Inc.
(dollars in thousands)	2019			2018			2017
Cash Flows From Operating Activities:
NET INCOME	$	28,904		$	20,929		$	15,552
Items not requiring (providing) cash:
Depreciation		3,402			3,119			2,982
(Gain) loss on disposal of fixed assets		29			(206	)		332
Stock option and stock grant expense		374			230			510
(Gain) loss on sale/write-down of REO		267			(45	)		324
Amortization of intangible assets		1,672			1,457			911
Amortization of purchase accounting adjustments		(2,886	)		(1,694	)		(1,116	)
Increase in cash surrender value of bank owned life insurance (BOLI)		(1,329	)		(947	)		(1,135	)
Provision for loan losses		2,032			3,047			2,340
Gains realized on sale of AFS securities		(244	)		(334	)		-
Net amortization of premiums and discounts on securities		846			994			1,034
Originations of loans held for sale		(30,768	)		(29,749	)		(33,059	)
Proceeds from sales of loans held for sale		30,633			29,410			33,656
Gain on sales of loans held for sale		(771	)		(804	)		(840	)
Changes in:
Accrued interest receivable		(459	)		(797	)		(314	)
Prepaid expenses and other assets		56			7,852			2,717
Accounts payable and other liabilities		5,973			(309	)		622
Deferred income taxes		75			(1,774	)		964
Accrued interest payable		795			265			138
NET CASH PROVIDED BY OPERATING ACTIVITIES		38,601			30,644			25,618
Cash flows from investing activities:
Net increase in loans		(139,056	)		(99,510	)		(112,372	)
Net change in interest-bearing deposits		983			249			723
Proceeds from maturities of available for sale securities		29,971			24,981			22,544
Proceeds from sales of available for sale securities		40,985			18,198			-
Net redemptions (purchases) of Federal Home Loan Bank stock		1,489			(1,756	)		2,462
Net purchases of Federal Reserve Bank of St. Louis stock		(785	)		(1,209	)		(14	)
Purchases of available-for-sale securities		(31,207	)		(44,051	)		(31,490	)
Purchases of premises and equipment		(7,696	)		(2,138	)		(3,034	)
Net cash paid for acquisition		(8,377	)		(1,501	)		(1,736	)
Investments in state & federal tax credits		(2,192	)		(5,086	)		(1,897	)
Proceeds from sale of fixed assets		32			1,970			15
Proceeds from sale of foreclosed assets		2,317			1,374			835
Proceeds from BOLI claim		544			-			848
NET CASH USED IN INVESTING ACTIVITIES		(112,992	)		(108,479	)		(123,116	)
Cash flows from financing activities:
Net increase in demand deposits and savings accounts		40,664			82,567			115,340
Net increase (decrease) in certificates of deposits		102,551			(26,392	)		52,939
Net increase (decrease) in securities sold under agreements to repurchase		1,109			(6,945	)		(16,873	)
Proceeds from Federal Home Loan Bank advances		591,500			1,518,930			1,350,565
Repayments of Federal Home Loan Bank advances		(642,030	)		(1,491,130	)		(1,416,815	)
Proceeds from issuance of long term debt		-			-			15,000
Repayments of long term debt		(4,400	)		-			(15,650	)
Common stock issued		-			-			24,144
Exercise of stock options		-			172			61
Purchase of treasury stock		(1,166	)		-			-
Dividends paid on common stock		(4,763	)		(3,827	)		(2,981	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		83,465			73,375			105,730
Increase (decrease) in cash and cash equivalents		9,074			(4,460	)		8,232
Cash and cash equivalents at beginning of period		26,326			30,786			22,554
Cash and cash equivalents at end of period	$	35,400		$	26,326		$	30,786

See accompanying notes to consolidated financial statements.

7

> CONSOLIDATED STATEMENTS OF CASH FLOWS <

YEARS ENDED JUNE 30, 2019, 2018 AND 2017

Southern Missouri Bancorp, Inc.

(dollars in thousands)	2019		2018		2017
Supplemental disclosures of cash flow information:
Noncash investing and financing activities:
Conversion of loans to foreclosed real estate	$	2,134	$	1,905	$	890
Conversion of foreclosed real estate to loans		51		112		128
Conversion of loans to repossessed assets		66		54		130
The Company purchased all of the capital stock of Gideon for $22,028 on November 21, 2018.
The Company purchased all of the capital stock of Bancshares for $16,815 on February 23, 2018.
The Company purchased all of the capital stock of Tammcorp for $22,074 on June 16, 2017.
In conjunction with the acquisitions, liabilities were assumed as follows:
Fair value of assets acquired		216,772		90,992		193,297
Less:  common stock issued		10,757		12,955		10,965
Cash paid for the capital stock		11,271		3,860		11,109
Liabilities assumed		194,744		74,177		171,223
Cash paid during the period for:
Interest (net of interest credited)	$	4,325	$	3,021	$	3,132
Income taxes		2,856		1,589		3,132

See accompanying notes to consolidated financial statements.

8

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 the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At June 30, 2019, assets of the REIT were approximately $650 million, and consisted primarily of 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 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.

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of 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 loan losses, and estimated fair values of purchased loans.

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 $6.9 million and $3.4 million at June 30, 2019 and 2018, respectively. The deposits are held in various commercial banks in amounts not exceeding the FDIC’s deposit insurance limits, 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 seven years and are carried at cost.

Available for Sale Securities. Available for sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as available for sale.

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.

The Company does not invest in collateralized mortgage obligations that are considered high risk.

9

When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an OTTI of a debt security in earnings and the remaining portion in other comprehensive income.  As a result of this guidance, the Company’s consolidated balance sheet for the dates presented reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities 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. 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.

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. Loans are generally stated at unpaid principal balances, less the allowance for loan losses, 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. 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 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 allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans 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. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans, and the results of regulatory examinations.

Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan.

Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans (“purchased credit impaired loans”), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments,

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including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual 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.

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs. 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 operations 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 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 and accelerated methods 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.

Intangible Assets. The Company’s intangible assets at June 30, 2019 included gross core deposit intangibles of $14.7 million with $6.9 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.4 million. At June 30, 2018, the Company’s intangible assets included gross core deposit intangibles of $10.6 million with $5.2 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.5 million.   The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.8 million in fiscal 2020, $1.3 million in fiscal 2021, $1.3 million in fiscal 2022, $1.3 million in fiscal 2023, $1.3 million in fiscal 2024, and $963,000 thereafter.

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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 financial statements.  As of June 30, 2019 and 2018, there was no impairment indicated.

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 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 subsidiary.

Incentive Plan. The Company accounts for its Management and Recognition Plan (MRP) and Equity Incentive Plan (EIP) 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.

Outside Directors’ Retirement. The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each 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, whether before or after the reorganization date.

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

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) outstanding during each year.

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Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other-than-temporary impairment 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.

The following paragraphs summarize the impact of new accounting pronouncements:

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures, and is not expected to have a significant impact on our financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Subtopic 718): Scope of Modification Accounting.  The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.  Under the new guidance, an entity should account for the effects of a modification unless all of the following are the same immediately before and after the change: (1) the fair value of the modified award, (2) the vesting conditions of the modified award, and (3) the classification of the modified award as either an equity or liability instrument.  ASU 2017-09 was effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively to awards modified on or after the adoption date.  The adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.  The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice.  The Update addresses eight specific cash flow issues.  For public companies, the ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively.  There has been no material impact on the Company’s consolidated financial statements due to the adoption of this standard in the first quarter of fiscal 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash.  For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  Early adoption is available beginning after December 15, 2018, including interim periods within those fiscal years. Adoption will be applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. The Company formed a working group of key personnel responsible for the allowance for loan losses estimate and initiated its evaluation of the data and systems requirements of adoption of the Update.  The group determined that purchasing third party software would be the most effective method to comply with the requirements, evaluated several outside vendors, and made a vendor recommendation that was approved by the Board.  Model validation and data testing using existing ALLL methodology have been completed. Parallel testing of the new methodology compared to the current methodology will be performed throughout fiscal year 2020 and the Company continues to evaluate the impact of adopting the new guidance.  We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, which for the Company will be the three-month period ending September 30, 2020, but cannot yet determine the overall impact of the new guidance on the Company’s consolidated financial statements, or the exact amount of any such one-time adjustment.

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In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting.  Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.   The Update was effective for the Company July 1, 2019.   Adoption of the standard allows the use of a modified retrospective transition approach for all periods presented at the time of adoption.  Based on the Company’s leases outstanding at June 30, 2019, which included four leased properties and numerous office equipment leases, the adoption of the new standard did not have a material impact on our consolidated statements of financial condition or our consolidated statements of income, although an increase to assets and liabilities occurs at the time of adoption.  In the first quarter of 2020, the Company recognized a lease liability and a corresponding right-of-use asset for all leases of approximately $500,000 based on our current leases.  Subsequent to June 30, 2019, the Company’s new leases, lease terminations, and lease modifications and renewals will impact the amount of lease liability and corresponding right-of-use asset recognized.  The Company’s leases are all currently “operating leases” as defined in the Update; therefore, no material change in the income statement presentation of lease expense is anticipated.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10).  The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 on recognition of financial assets and financial liabilities.  ASU 2016-01 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material impact on the Company’s consolidated financial statements.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606):  Deferral of the Effective Date, which deferred the effective date of ASU 2014-09.  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification.  In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606- performance obligations and the licensing implementation guidance.  Neither of the two updates changed the core principle of the guidance in Topic 606.  In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), to provide narrow-scope improvements and practical expedients to ASU 2015-14.   ASU 2014-09 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material change to our accounting for revenue because the majority of our financial instruments are not within the scope of Topic 606.

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, 2019
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(dollars in thousands)	Cost		Gains		Losses			Value
Debt and equity securities:
U.S. government and Federal agency obligations	$	7,284	$	1	$	(15	)	$	7,270
Obligations of states and political subdivisions		42,123		728		(68	)		42,783
Other securities		5,176		75		(198	)		5,053
TOTAL DEBT AND EQUITY SECURITIES		54,583		804		(281	)		55,106
Mortgage-backed securities:
FHLMC certificates		16,373		64		(65	)		16,372
GNMA certificates		35		-		-			35
FNMA certificates		34,943		610		(95	)		35,458
CMOs issues by government agencies		57,946		775		(157	)		58,564
TOTAL MORTGAGE-BACKED SECURITIES		109,297		1,449		(317	)		110,429
TOTAL	$	163,880	$	2,253	$	(598	)	$	165,535

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	June 30, 2018
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(dollars in thousands)	Cost		Gains		Losses			Value
Debt and equity securities:
U.S. government and Federal agency obligations	$	9,513	$	-	$	(128	)	$	9,385
Obligations of states and political subdivisions		41,862		230		(480	)		41,612
Other securites		5,284		61		(193	)		5,152
TOTAL DEBT AND EQUITY SECURITIES		56,659		291		(801	)		56,149
Mortgage-backed securities:
FHLMC certificates		16,598		1		(486	)		16,113
GNMA certificates		38		-		-			38
FNMA certificates		25,800		-		(738	)		25,062
CMOs issues by government agencies		50,272		-		(1,309	)		48,963
TOTAL MORTGAGE-BACKED SECURITIES		92,708		1		(2,533	)		90,176
TOTAL	$	149,367	$	292	$	(3,334	)	$	146,325

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, 2019
	Amortized		Estimated
(dollars in thousands)	Cost		Fair Value
Within one year	$	6,777	$	6,777
After one year but less than five years		10,189		10,237
After five years but less than ten years		19,658		19,930
After ten years		17,959		18,162
Total investment securities		54,583		55,106
Mortgage-backed securities		109,297		110,429
Total investments and mortgage-backed securities	$	163,880	$	165,535

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $143.7 million and $124.2 million at June 30, 2019 and 2018, respectively.  The securities pledged consist of marketable securities, including $5.6 million and $8.4 million of U.S. Government and Federal Agency Obligations, $47.3 million and $39.8 million of Mortgage-Backed Securities, $55.7 million and $41.5 million of Collateralized Mortgage Obligations, $34.9 million and $34.2 million of State and Political Subdivisions Obligations, and $300,000 and $300,000 of Other Securities at June 30, 2019 and 2018, respectively.

Gains of $265,450 and losses of $21,576 were recognized from sales of available-for-sale securities in 2019.  Gains of $491,500 and losses of $157,105 were recognized from sales of available-for-sale securities in 2018.

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, 2019.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2019, was $51.8 million, which is approximately 31.3% of the Company’s available for sale investment portfolio, as compared to $124.9 million or approximately 85.4% of the Company’s available for sale investment portfolio at June 30, 2018.   Except as discussed below, management believes the declines in fair value for these securities to be temporary.

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The tables below show our 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 at June 30, 2019 and 2018.

	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
For the year ended June 30, 2019	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$	-	$	-	$	6,969	$	15	$	6,969	$	15
Obligations of state and political subdivisions		-		-		8,531		68		8,531		68
Other securities		-		-		985		198		985		198
Mortgage-backed securities		1,175		1		34,148		316		35,323		317
Total investments and mortgage-backed securities	$	1,175	$	1	$	50,633	$	597	$	51,808	$	598

	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
For the year ended June 30, 2018	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$	5,957	$	58	$	3,427	$	70	$	9,384	$	128
Obligations of state and political subdivisions		14,861		224		8,526		256		23,387		480
Other securities		982		10		1,109		183		2,091		193
Mortgage-backed securities		65,863		1,513		24,187		1,020		90,050		2,533
Total investments and mortgage-backed securities	$	87,663	$	1,805	$	37,249	$	1,529	$	124,912	$	3,334

The unrealized losses on the Company’s investments in U.S. government-sponsored enterprises, mortgage-backed securities, and obligations of state and political subdivisions were caused by increases in market interest rates.  The contractual terms of these instruments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments.  Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

Other securities.  At June 30, 2019, there were two pooled trust preferred securities with an estimated fair value of $779,000 and unrealized losses of $193,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

The June 30, 2019, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.4 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

One of these two securities has continued to receive cash interest payments in full since our purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for the securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

The Company does not believe any other individual unrealized loss as of June 30, 2019, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the OTTI is identified.

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Credit losses recognized on investments. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2019 and 2018.

	Accumulated Credit Losses
	Twelve-Month Period Ended
(dollars in thousands)	June 30,
	2019		2018
Credit losses on debt securities held
Beginning of period	$	-	$	340
Additions related to OTTI losses not previously recognized		-		-
Reductions due to sales		-		(333	)
Reductions due to change in intent or likelihood of sale		-		-
Additions related to increases in previously-recognized OTTI losses		-		-
Reductions due to increases in expected cash flows		-		(7	)
End of period	$	-	$	-

NOTE 3: Loans and Allowance for Loan Losses

Classes of loans are summarized as follows:

(dollars in thousands)	June 30, 2019			June 30, 2018
Real Estate Loans:
Residential	$	491,992		$	450,919
Construction		123,287			112,718
Commercial		840,777			704,647
Consumer loans		97,534			78,571
Commercial loans		355,874			281,272
		1,909,464			1,628,127
Loans in process		(43,153	)		(46,533	)
Deferred loan fees, net		(3	)		-
Allowance for loan losses		(19,903	)		(18,214	)
Total loans	$	1,846,405		$	1,563,380

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. The Company has also occasionally purchased loan participation interests originated by other lenders and secured by properties generally located in the states of Missouri and Arkansas.

Residential Mortgage 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.

The Company also 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 our primary market area.  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 typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include 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.

Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments 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 our primary lending area.  Approximately $301.7 million of our $840.1 million in commercial real estate loans are secured by properties located outside our primary lending area.

17

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 maturity for up to seven 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. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company 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-operated or non-owner occupied commercial real estate.  During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate.

While the Company typically utilizes maturity periods ranging from 6 to 12 months 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. The Company’s average term of construction loans is approximately eight months. 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 allow the Company opportunity to assess risk. At June 30, 2019, construction loans outstanding included 59 loans, totaling $27.2 million, for which a modification had been agreed to. At June 30, 2018, construction loans outstanding included 72 loans, totaling $12.5 million, for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs.

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home 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 five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed 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 the 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.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 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.

Commercial Business Lending. The Company’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, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. 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.

18

The following tables present the balance in the allowance for loan losses and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment and impairment methods as of June 30, 2019 and 2018, and activity in the allowance for loan losses for the fiscal years ended June 30, 2019, 2018, and 2017.

(dollars in thousands)	Residential			Construction		Commercial
June 30, 2019	Real Estate			Real Estate		Real Estate			Consumer			Commercial			Total
Allowance for loan losses:
Balance, beginning of period	$	3,226		$	1,097	$	8,793		$	902		$	4,196		$	18,214
Provision charged to expense		487			268		765			231			281			2,032
Losses charged off		(30	)		-		(164	)		(103	)		(92	)		(389	)
Recoveries		23			-		5			16			2			46
Balance, end of period	$	3,706		$	1,365	$	9,399		$	1,046		$	4,387		$	19,903
Ending Balance: individually             evaluated for impairment	$	-		$	-	$	-		$	-		$	-		$	-
Ending Balance: collectively             evaluated for impairment	$	3,706		$	1,365	$	9,399		$	1,046		$	4,387		$	19,903
Ending Balance: loans acquired             with deteriorated credit quality	$	-		$	-	$	-		$	-		$	-		$	-
Loans:
Ending Balance: individually             evaluated for impairment	$	-		$	-	$	-		$	-		$	-		$	-
Ending Balance: collectively             evaluated for impairment	$	490,307		$	78,826	$	821,415		$	97,534		$	349,681		$	1,837,763
Ending Balance: loans acquired             with deteriorated credit quality	$	1,685		$	1,308	$	19,362		$	-		$	6,193		$	28,548

(dollars in thousands)	Residential			Construction			Commercial
June 30, 2018	Real Estate			Real Estate			Real Estate			Consumer			Commercial			Total
Allowance for loan losses:
Balance, beginning of period	$	3,230		$	964		$	7,068		$	757		$	3,519		$	15,538
Provision charged to expense		184			142			1,779			251			691			3,047
Losses charged off		(190	)		(9	)		(56	)		(129	)		(22	)		(406	)
Recoveries		2			-			2			23			8			35
Balance, end of period	$	3,226		$	1,097		$	8,793		$	902		$	4,196		$	18,214
Ending Balance: individually             evaluated for impairment	$	-		$	-		$	399		$	-		$	351		$	750
Ending Balance: collectively             evaluated for impairment	$	3,226		$	1,097		$	8,394		$	902		$	3,845		$	17,464
Ending Balance: loans acquired             with deteriorated credit quality	$	-		$	-		$	-		$	-		$	-		$	-
Loans:
Ending Balance: individually             evaluated for impairment	$	-		$	-		$	660		$	-		$	580		$	1,240
Ending Balance: collectively             evaluated for impairment	$	447,706		$	64,888		$	696,377		$	78,571		$	278,241		$	1,565,783
Ending Balance: loans acquired             with deteriorated credit quality	$	3,213		$	1,297		$	7,610		$	-		$	2,451		$	14,571

(dollars in thousands)	Residential			Construction			Commercial
June 30, 2017	Real Estate			Real Estate			Real Estate			Consumer			Commercial			Total
Allowance for loan losses:
Balance, beginning of period	$	3,247		$	1,091		$	5,711		$	738		$	3,004		$	13,791
Provision charged to expense		184			(97	)		1,356			76			821			2,340
Losses charged off		(211	)		(31	)		(19	)		(65	)		(337	)		(663	)
Recoveries		10			1			20			8			31			70
Balance, end of period	$	3,230		$	964		$	7,068		$	757		$	3,519		$	15,538

Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral.  These estimates are affected by changing economic conditions and the economic prospects of borrowers.

19

The allowance for loan losses is maintained at a level that, in management’s judgment, is adequate to cover probable credit losses inherent in the loan portfolio at the balance sheet date.  The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when an amount is determined to be uncollectible, based on management’s analysis of expected cash flow (for non-collateral dependent loans) or collateral value (for collateral-dependent loans).  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components.  The allocated component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.

Under the Company’s allowance methodology, loans are first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment, and 2) all other loans which are individually evaluated.  Those loans in the second category are further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends.  The loans subject to credit classification represent the portion of the portfolio subject to the greatest credit risk and where adjustments to the allowance for losses on loans as a result of provisions and charge offs are most likely to have a significant impact on operations.

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.  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 represents a probable loss or risk that should be recognized.

The Company considers, as the primary quantitative factor in its allowance methodology, average net charge offs over the most recent twelve-month period.  The Company also reviews average net charge offs over the most recent five-year period.

A loan is considered impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be able to be collected when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  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.  Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans.  Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

The general component covers non-classified loans and is based on historical charge-off experience and expected loss given the internal risk rating process.  The loan portfolio is stratified into homogeneous groups of loans that possess similar loss characteristics and an appropriate loss ratio adjusted for other qualitative factors is applied to the homogeneous pools of loans to estimate the incurred losses in the loan portfolio.

20

Included in the Company’s loan portfolio are certain loans accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality.  These loans were written down at acquisition to an amount estimated to be collectible.  As a result, certain ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s current credit quality to prior periods.  The ratios particularly affected by accounting under ASC 310-30 include the allowance for loan losses as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans.

The following tables present the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2019 and 2018.  These tables include purchased credit impaired loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

(dollars in thousands)	Residential		Construction		Commercial
June 30, 2019	Real Estate		Real Estate		Real Estate		Consumer		Commercial
Pass	$	482,869	$	80,134	$	802,479	$	97,012	$	341,069
Watch		1,236		-		21,693		170		7,802
Special Mention		103		-		3,463		26		-
Substandard		7,784		-		13,142		291		7,003
Doubtful		-		-		-		35		-
Total	$	491,992	$	80,134	$	840,777	$	97,534	$	355,874

(dollars in thousands)	Residential		Construction		Commercial
June 30, 2018	Real Estate		Real Estate		Real Estate		Consumer		Commercial
Pass	$	443,916	$	66,160	$	691,188	$	78,377	$	277,568
Watch		1,566		-		7,004		111		374
Special Mention		75		-		926		27		69
Substandard		5,362		25		4,869		56		2,079
Doubtful		-		-		660		-		1,182
Total	$	450,919	$	66,185	$	704,647	$	78,571	$	281,272

The above amounts include purchased credit impaired loans.  At June 30, 2019, purchased credit impaired loans comprised $6.9 million of credits rated “Pass”; $10.4 million of credits rated “Watch”, none rated “Special Mention”, $11.2 million of credits rated “Substandard” and none rated “Doubtful”.  At June 30, 2018, purchased credit impaired loans comprised $7.8 million of credits rated “Pass”; $3.1 million of credits rated “Watch”, none rated “Special Mention”; $3.7 million of credits rated “Substandard”; and none rated “Doubtful”.

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. In addition, lending relationships of $2 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of single-family residential real estate loans) 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 exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

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 not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

21

The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of June 30, 2019 and 2018.  These tables include purchased credit impaired 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, 2019	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
Real Estate Loans:
Residential	$	227	$	1,054	$	1,714	$	2,995	$	488,997	$	491,992	$	-
Construction		-		-		-		-		80,134		80,134		-
Commercial		296		1		5,617		5,914		834,863		840,777		-
Consumer loans		128		46		176		350		97,184		97,534		-
Commercial loans		424		25		1,902		2,351		353,523		355,874		-
Total loans	$	1,075	$	1,126	$	9,409	$	11,610	$	1,854,701	$	1,866,311	$	-

					Greater Than								Greater Than 90
(dollars in thousands)	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
June 30, 2018	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
Real Estate Loans:
Residential	$	749	$	84	$	4,089	$	4,922	$	445,997	$	450,919	$	-
Construction		-		-		-		-		66,185		66,185		-
Commercial		1,100		290		1,484		2,874		701,773		704,647		-
Consumer loans		510		33		146		689		77,882		78,571		-
Commercial loans		134		90		707		931		280,341		281,272		-
Total loans	$	2,493	$	497	$	6,426	$	9,416	$	1,572,178	$	1,581,594	$	-

At June 30, 2019 there was one purchased credit impaired loan with net fair value of $3.1 million that was greater than 90 days past due.  At June 30, 2018 there were two purchased credit impaired loans with net fair value of $1.1 million that were greater than 90 days past due.

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.  Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings (TDRs) where concessions have been granted to borrowers experiencing financial difficulties.  These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.

The following tables present impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2019 and 2018.  These tables include purchased credit impaired loans.  Purchased credit impaired loans are those for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable.  In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan.  These loans, however, will continue to be reported as impaired loans.  In an instance where, subsequent to the acquisition, the Company determines it is probable that, for a specific loan, that cash flows received will be less than the amount previously expected, the Company will allocate a specific allowance under the terms of ASC 310-10-35.

22

(dollars in thousands)	Recorded		Unpaid Principal		Specific
June 30, 2019	Balance		Balance		Allowance
Loans without a specific valuation allowance:
Residential real estate	$	5,104	$	5,341	$	-
Construction real estate		1,330		1,419		-
Commercial real estate		26,410		31,717		-
Consumer loans		8		8		-
Commercial loans		6,999		9,187		-
Loans with a specific valuation allowance:
Residential real estate	$	-	$	-	$	-
Construction real estate		-		-		-
Commercial real estate		-		-		-
Consumer loans		-		-		-
Commercial loans		-		-		-
Total:
Residential real estate	$	5,104	$	5,341	$	-
Construction real estate	$	1,330	$	1,419	$	-
Commercial real estate	$	26,410	$	31,717	$	-
Consumer loans	$	8	$	8	$	-
Commercial loans	$	6,999	$	9,187	$	-

(dollars in thousands)	Recorded		Unpaid Principal		Specific
June 30, 2018	Balance		Balance		Allowance
Loans without a specific valuation allowance:
Residential real estate	$	3,820	$	4,468	$	-
Construction real estate		1,321		1,569		-
Commercial real estate		14,052		15,351		-
Consumer loans		25		25		-
Commercial loans		2,787		3,409		-
Loans with a specific valuation allowance:
Residential real estate	$	-	$	-	$	-
Construction real estate		-		-		-
Commercial real estate		660		660		399
Consumer loans		-		-		-
Commercial loans		580		580		351
Total:
Residential real estate	$	3,820	$	4,468	$	-
Construction real estate	$	1,321	$	1,569	$	-
Commercial real estate	$	14,712	$	16,011	$	399
Consumer loans	$	25	$	25	$	-
Commercial loans	$	3,367	$	3,989	$	351

The above amounts include purchased credit impaired loans.  At June 30, 2019, purchased credit impaired loans comprised $28.5 million of impaired loans without a specific valuation allowance.  At June 30, 2018, purchased credit impaired loans comprised $14.6 million of impaired loans without a specific valuation allowance.

The following tables present information regarding interest income recognized on impaired loans:

	Fiscal 2019
	Average
(dollars in thousands)	Investment in		Interest Income
	Impaired Loans		Recognized
Residential Real Estate	$	2,081	$	112
Construction Real Estate		1,297		246
Commercial Real Estate		14,547		1,570
Consumer Loans		-		-
Commercial Loans		4,212		926
Total Loans	$	22,137	$	2,854

23

	Fiscal 2018
	Average
(dollars in thousands)	Investment in		Interest Income
	Impaired Loans		Recognized
Residential Real Estate	$	3,358	$	219
Construction Real Estate		1,317		165
Commercial Real Estate		9,446		1,163
Consumer Loans		-		-
Commercial Loans		3,152		199
Total Loans	$	17,273	$	1,746

	Fiscal 2017
	Average
(dollars in thousands)	Investment in		Interest Income
	Impaired Loans		Recognized
Residential Real Estate	$	3,011	$	119
Construction Real Estate		1,370		148
Commercial Real Estate		10,044		782
Consumer Loans		-		-
Commercial Loans		1,529		74
Total Loans	$	15,954	$	1,123

Interest income on impaired loans recognized on a cash basis in the fiscal years ended June 30, 2019, 2018, and 2017 was immaterial.

For the fiscal years ended June 30, 2019, 2018, and 2017, the amount of interest income recorded for impaired loans that represents a change in the present value of future cash flows attributable to the passage of time was approximately $1.3 million, $683,000, and $392,000, respectively.

The following table presents the Company’s nonaccrual loans at June 30, 2019 and 2018.  Purchased credit impaired loans are placed on nonaccrual status in the event the Company cannot reasonably estimate cash flows expected to be collected.  The table excludes performing TDRs.

	June 30,
(dollars in thousands)	2019		2018
Residential real estate	$	6,404	$	5,913
Construction real estate		-		25
Commercial real estate		10,876		1,962
Consumer loans		309		209
Commercial loans		3,424		1,063
Total loans	$	21,013	$	9,172

The above amounts include purchased credit impaired loans.  At June 30, 2019 and 2018, purchased credit impaired loans comprised $4.1 million and $1.1 million of nonaccrual loans, respectively.

Included in certain loan categories in the impaired loans are TDRs, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

When loans and leases are modified into a TDR, the Company evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, and uses the current fair value of the collateral, less selling costs, for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance.

24

At June 30, 2019, and June 30, 2018, the Company had $6.5 million and $8.1 million, respectively, of commercial real estate loans, $1.1 million and $800,000, respectively, of residential real estate loans, $5.6 million and $2.8 million, respectively, of commercial loans, and $0 and $14,000, respectively, of consumer loans that were modified in TDRs and impaired.  All loans classified as TDRs at June 30, 2019 and June 30, 2018, were so classified due to interest rate concessions.  During Fiscal 2019 three commercial loans totaling $4.4 million, and three commercial real estate loans totaling $969,000 were modified as TDRs and had payment defaults subsequent to the modification.  When loans modified as TDRs have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowances reflect amounts considered uncollectible.

Performing loans classified as TDRs at June 30, 2019 and June 30, 2018 segregated by class, are shown in the table below.  Nonperforming TDRs are shown in nonaccrual loans.

	June 30, 2019				June 30, 2018
(dollars in thousands)	Number of		Recorded		Number of		Recorded
	modifications		Investment		modifications		Investment
Residential real estate		10	$	1,130		12	$	800
Construction real estate		-		-		-		-
Commercial real estate		20		6,529		13		8,084
Consumer loans		-		-		1		14
Commercial loans		10		5,630		8		2,787
Total		40	$	13,289		34	$	11,685

We may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of June 30, 2019 and June 30, 2018, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $752,000 and $802,000, respectively. In addition, as of June 30, 2019 and June 30, 2018, we had residential mortgage loans and home equity loans with a carrying value of $493,000 and $331,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2019 and 2018, respectively:

	June 30,
(dollars in thousands)	2019			2018
Beginning Balance	$	8,995		$	8,320
Additions		7,238			6,543
Repayments		(7,134	)		(5,868	)
Change in related party		33			-
Ending Balance	$	9,132		$	8,995

NOTE 4: Accounting for Certain Acquired Loans

During the fiscal years ended June 30, 2011, 2015, 2017, and 2019, the Company acquired certain loans which evidenced deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected.

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds.

The carrying amount of those loans is included in the balance sheet amounts of loans receivable at June 30, 2019 and June 30, 2018. The amount of these loans is shown below:

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	June 30,
(dollars in thousands)	2019		2018
Residential real estate	$	1,921	$	3,861
Construction real estate		1,397		1,544
Commercial real estate		24,669		8,909
Consumer loans		-		-
Commercial loans		8,381		3,073
Outstanding balance	$	36,368	$	17,387
Carrying amount, net of fair value adjustment of      $7,821 and $2,816 at June 30, 2019 and 2018,      respectively	$	28,547	$	14,571

Accretable yield, or income expected to be collected, is as follows:

	June 30,
(dollars in thousands)	2019			2018			2017
Balance at beginning of period	$	589		$	609		$	656
Additions		102			-			-
Accretion		(1,342	)		(683	)		(391	)
Reclassification from nonaccretable difference		1,075			663			344
Disposals		(204	)		-			-
Balance at end of period	$	220		$	589		$	609

During the fiscal years ended June 30, 2019 and 2018, the Company did not increase or reverse the allowance for loan losses related to these purchased credit impaired loans.

NOTE 5:  Premises and Equipment

Following is a summary of premises and equipment:

	June 30,
(dollars in thousands)	2019		2018
Land	$	12,414	$	12,152
Buildings and improvements		54,304		46,802
Construction in progress		466		4
Furniture, fixtures, equipment and software		16,514		13,680
Automobiles		107		81
		83,805		72,719
Less accumulated depreciation		21,078		17,887
	$	62,727	$	54,832

NOTE 6:  Deposits

Deposits are summarized as follows:

	June 30,
(dollars in thousands)	2019		2018
Non-interest bearing accounts	$	218,889	$	203,517
NOW accounts		639,219		569,005
Money market deposit accounts		188,355		116,389
Savings accounts		167,973		157,540
TOTAL NON-MATURITY DEPOSITS		1,214,436		1,046,451
Certificates
0.00-.99%		2,447		77,958
1.00-1.99%		221,409		356,172
2.00-2.99%		398,931		98,842
3.00-3.99%		56,310		479
4.00-4.99%		162		-
TOTAL CERTIFICATES		679,259		533,451
TOTAL DEPOSITS	$	1,893,695	$	1,579,902

The aggregate amount of deposits with a minimum denomination of $250,000 was $519.3 million and $401.7 million at June 30, 2019 and 2018, respectively.

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Certificate maturities are summarized as follows:

(dollars in thousands)
July 1, 2019 to June 30, 2020	$	467,676
July 1, 2020 to June 30, 2021		152,980
July 1, 2021 to June 30, 2022		38,045
July 1, 2022 to June 30, 2023		16,625
July 1, 2023 to June 30, 2024		3,933
Thereafter		-
TOTAL	$	679,259

Brokered certificates totaled $44.9 million and $13.6 million at June 30, 2019 and 2018, respectively.  Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2019 and 2018 totaled approximately $3.8 million and $2.9 million, respectively.

NOTE 7:  Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase, which are classified as borrowings, generally mature within one to four days.  The carrying value of securities sold under agreement to repurchase amounted to $4.4 million and $3.3 million at June 30, 2019 and 2018, respectively. The securities underlying the agreements consist of marketable securities, including $0 and $1.2 million of U.S. Government and Federal Agency Obligations, and $5.8 million and $3.4 million of Mortgage-Backed Securities at June 30, 2019 and 2018, respectively. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained.

The following table presents balance and interest rate information on the securities sold under agreements to repurchase.

	June 30,
(dollars in thousands)	2019			2018
Year-end balance	$	4,376		$	3,267
Average balance during the year		3,988			5,373
Maximum month-end balance during the year		4,703			9,902
Average interest during the year		0.90	%		0.70	%
Year-end interest rate		0.93	%		0.86	%

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NOTE 8:  Advances from Federal Home Loan Bank

Advances from Federal Home Loan Bank are summarized as follows:

			June 30,
	Interest		2019			2018
Maturity	Rate		(dollars in thousands)
08/13/18		3.32%	$	-		$	501
08/14/18		3.98%		-			5,000
10/09/18		3.38%		-			1,503
12/28/18		1.69%		-			249
04/01/19		1.60%		-			249
04/01/19		1.27%		-			248
08/19/19		1.52%		200			396
11/22/19		1.91%		1,741			-
12/30/19		1.92%		249			248
01/14/20		1.76%		249			247
03/31/20		1.49%		248			246
06/10/20		1.26%		247			244
09/09/20		2.02%		4,929			-
11/23/20		2.13%		1,725			-
01/14/21		1.92%		247			245
03/31/21		1.68%		246			243
05/17/21		2.43%		5,000			-
06/10/21		1.42%		244			241
09/07/21		2.81%		9,000			-
09/09/21		2.28%		1,960			-
10/01/21		2.53%		5,000			-
11/16/21		2.43%		5,000			-
03/31/22		1.91%		244			242
03/28/24		2.56%		8,000			-
12/14/26		2.65%		379			-
Overnight		2.03%		-			66,550
	TOTAL		$	44,908		$	76,652
Weighted-average rate				2.42	%		2.18	%

Of the advances outstanding at June 30, 2019, none were callable by the FHLB prior to maturity.  In addition to the above advances, the Bank had an available line of credit amounting to $320.1 million and $267.0 million with the FHLB at June 30, 2019 and 2018, respectively, with none being drawn at both period ends.

Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate and one- to four-family mortgage loans pledged.  To secure outstanding advances and the Bank’s line of credit, loans totaling $754.4 million and $706.2 million were pledged to the FHLB at June 30, 2019 and 2018, respectively. The principal maturities of FHLB advances at June 30, 2018, are below:

	June 30, 2019
FHLB Advance Maturities	(dollars in thousands)
July 1, 2019 to June 30, 2020	$	2,934
July 1, 2020 to June 30, 2021		12,391
July 1, 2021 to June 30, 2022		21,204
July 1, 2022 to June 30, 2023		-
July 1, 2023 to June 30, 2024		8,000
July 1, 2024 to thereafter		379
TOTAL	$	44,908

NOTE 9:  Note Payable

In June 2017, the Company entered into a revolving, reducing line of credit with a five-year term, initially providing available credit of $15.0 million. The line of credit bears interest at a floating rate based on LIBOR, which is due and payable monthly, and is secured by the stock of the Bank. Available credit under the line is reduced by $3.0 million on each anniversary date of the line of credit.  The balance outstanding under the line was $3.0 million at June 30, 2019 and 2018, and the total available credit under the line was $9.0 million and $12.0 million, respectively, with remaining available capacity of $6.0 million and $9.0 million, respectively, at June 30, 2019 and 2018.  The proceeds from this line of credit were used, in part, to fund the cash portion of the Tammcorp merger.

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NOTE 10:  Subordinated Debt

Southern Missouri Statutory Trust I issued $7.0 million of 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, redeemable after five years and bear interest at a floating rate based on LIBOR. At June 30, 2019, the current rate was 5.16%. 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 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 of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries.

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), 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 LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2019, the current rate was 4.86%. The carrying value of the debt securities was approximately $2.6 million at June 30, 2019, and June 30, 2018.

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), 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 LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2019, the current rate was 4.21%.  The carrying value of the debt securities was approximately $5.2 million at June 30, 2019, and $5.1 million at June 30, 2018.

NOTE 11:  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, 2019, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2019. Total 401(k) expense for fiscal 2019, 2018, and 2017 was $1.3 million, $1.3 million, and $877,000, respectively. At June 30, 2019, 401(k) plan participants held approximately 366,000 shares 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.

Management Recognition Plans (MRPs). The Bank adopted an MRP for the benefit of non-employee directors and two MRPs for officers and key employees (who may also be directors) in April 1994. During fiscal 2012, the Bank granted 6,072 MRP shares (split-adjusted) to employees. The shares granted were in the form of restricted stock vested at the rate of 20% of such shares per year. For fiscal 2017, there were 1,214 shares vested; no shares vested in fiscal 2019 or 2018. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, was recognized pro-rata over the five years during which the shares vest. The MRP expense for fiscal 2017 was $13,000; there was no expense attributable to the plan in fiscal 2019 or 2018. At June 30, 2019, there was no unvested compensation expense related to the MRP, and no shares remained available for award.

2008 Equity Incentive Plan. The Company adopted an Equity Incentive Plan (EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. The committee held the power to set vesting requirements for each award under the EIP. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the EIP. During fiscal 2012, the Company awarded 73,928 shares (split-adjusted); during fiscal 2014, the Company awarded 24,000 shares (split-adjusted); during fiscal 2015, the Company awarded 8,000 shares (split-adjusted); during fiscal 2016, the Company awarded 3,750 shares; and during fiscal 2017, the Company awarded 13,125 shares. No awards were made under the plan in fiscal 2019 or 2018. All EIP awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to of 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, 2018,

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and 2017, there were 7,100, 5,400, and 21,200 EIP shares (split-adjusted) vested each year, 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 five years during which the shares vest. The EIP expense for fiscal 2019, 2018, and 2017 was $141,000, $165,000, and $284,000, respectively. At June 30, 2019, unvested compensation expense related to the EIP was approximately $247,000.

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 177,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 20,000 remain outstanding. 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, 2019, there was $2,000 in remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of stock options outstanding at June 30, 2019, was $457,000, and the aggregate intrinsic value of stock options exercisable at June 30, 2019, was $423,000. During fiscal 2019 no options to purchase shares were exercised. The intrinsic value of options vested in fiscal 2019, 2018, and 2017 was $35,000, $43,000, and $262,000, respectively.

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, options to purchase 31,000 shares have been issued to employees, of which none have been exercised or forfeited, and 31,000 remain outstanding. As of June 30, 2019, there was $234,000 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 at June 30, 2019, was $8,000, and the no options were exercisable at June 30, 2019, at a strike price in excess of the market price. No in-the-money options were vested in fiscal 2019, and no options vested during fiscal 2018 and 2017.

Full value awards totaling 15,000 and 22,000 shares, respectively, were issued to employees and directors in fiscal 2019 and 2018. All full value awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, full value awards of 4,200 shares were vested, while no full value awards vested in fiscal 2018 or 2017. 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 five years during which the shares vest. Compensation expense for full value awards under the 2017 Plan for fiscal 2019, 2018, and 2017 was $189,000, $60,000, and $0, respectively. At June 30, 2019, unvested compensation expense related to full value awards under the 2017 Plan was approximately $1.0 million.

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

	2019				2018					2017
	Weighted				Weighted					Weighted
	Average				Average					Average
	Price		Number		Price		Number			Price		Number
Outstanding at beginning of year	$	22.18		33,500	$	9.35		44,000		$	8.74		54,000
Granted		34.35		17,500		37.31		13,500			-		-
Exercised		-		-		7.18		(24,000	)		6.08		(10,000	)
Forfeited		-		-		-		-			-		-
Outstanding at year-end	$	26.35		51,000	$	22.18		33,500		$	9.35		44,000
Options exercisable at year-end	$	14.73		20,700	$	10.57		16,000		$	8.06		38,000

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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 2019 and 2018 (no options were granted in fiscal 2017):

	2019			2018			2017
Assumptions:
Expected dividend yield		1.51	%		1.18	%		-
Expected volatility		20.39	%		20.42	%		-
Risk-free interest rate		2.67	%		2.54	%		-
Weighted-average expected life (years)		10.00			10.00			-
Weighted-average fair value of       options granted during the year	$	8.78		$	10.14			-

The table below summarizes information about stock options outstanding under the 2003 Plan and 2017 Plan at June 30, 2019:

	Options Outstanding				Options Exercisable
Weighted
Average			Weighted				Weighted
Remaining			Average				Average
Contractual	Number		Exercise		Number		Exercise
Life	Outstanding		Price		Exercisable		Price
6.5 mo.		10,000		6.38		10,000		6.38
62.3 mo.		10,000		17.55		8,000		17.55
102.6 mo.		13,500		37.31		2,700		37.31
114.3 mo.		17,500		34.35		-		-

NOTE 12:  Income Taxes

The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for tax years ending June 30, 2015 and before.  The Company recognized no interest or penalties related to income taxes.

The components of net deferred tax assets are summarized as follows:

(dollars in thousands)	June 30, 2019		June 30, 2018
Deferred tax assets:
Provision for losses on loans	$	4,601	$	4,418
Accrued compensation and benefits		692		708
NOL carry forwards acquired		199		273
Minimum Tax Credit		130		130
Unrealized loss on other real estate		134		124
Unrealized loss on available for sale securities		-		730
Purchase accounting adjustments		255		-
Losses and credits from LLC's		1,206		1,003
Total deferred tax assets		7,218		7,386
Deferred tax liabilities:
Purchase accounting adjustments		-		949
Depreciation		1,749		1,475
FHLB stock dividends		120		130
Prepaid expenses		313		98
Unrealized gain on available for sale securities		364		-
Other		61		327
Total deferred tax liabilities		2,607		2,979
Net deferred tax asset	$	4,611	$	4,407

As of June 30, 2019, the Company had approximately $963,000 and $1.7 million in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc. and the August 2014 acquisition of Peoples Service Company.  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 2027.

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A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below:

	For the year ended June 30
(dollars in thousands)	2019			2018			2017
Tax at statutory rate	$	7,550		$	8,074		$	7,565
Increase (reduction) in taxes       resulting from:
Nontaxable municipal income		(400	)		(441	)		(513	)
State tax, net of Federal benefit		487			553			215
Cash surrender value of                   Bank-owned life insurance		(279	)		(266	)		(397	)
Tax credit benefits		(270	)		(871	)		(367	)
Adjustment of deferred tax asset                   for enacted changes in tax laws		-			1,124			-
Other, net		(41	)		(370	)		(441	)
Actual provision	$	7,047		$	7,803		$	6,062

For the year ended June 30, 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR), compared to 28.1% for the year ended June 30, 2018, as a result of the Tax Cuts and Jobs Act ("Tax Act") signed into law December 22, 2017. The Tax Act ultimately reduced the corporate Federal income tax rate for the Company from 35% to 21%, and for the fiscal year ending June 30, 2018, the Company was administratively subject to a 28.1% AETR.  U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the income tax effects of the Tax Act were recognized in the Company’s financial statements for the quarter ended December 31, 2017, and for the twelve months ended June 30, 2018.  The Tax Act is complex and requires significant detailed analysis.  During the preparation of the Company's June 30, 2018 income tax returns, no significant adjustments related to enactment of the Tax Act were identified.

Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.

NOTE 13:  Accumulated Other Comprehensive Income (AOCI)

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

	June 30,
(dollars in thousands)	2019			2018
Net unrealized gain (loss) on securities available-for-sale	$	1,655		$	(3,041	)
Net unrealized gain on securities available-for-sale
securities for which a portion of an other-than-temporary
impairment has been recognized in income		(1	)		(1	)
Unrealized loss from defined benefit pension plan		(39	)		(29	)
		1,615			(3,071	)
Tax effect		(368	)		726
Net of tax amount	$	1,247		$	(2,345	)

Amounts reclassified from AOCI and the affected line items in the statements of income during the years ended June 30, 2019 and 2018, were as follows:

	Amounts Reclassified From AOCI
(dollars in thousands)	2019			2018			Affected Line Item in the Condensed Consolidated Statements of Income
Unrealized gain on securities available-for-sale	$	244		$	334		Net realized gains on sale of AFS securities
Amortization of defined benefit pension items:		(10	)		(44	)	Compensation and benefits (included in computation of net periodic pension costs)
Total reclassified amount before tax		234			290
Tax benefit		49			81		Provision for Income Tax
Total reclassification out of AOCI	$	185		$	209		Net Income

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NOTE 14:  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 condensed 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). Management believes, as of June 30, 2019 and 2018, that the Company and the Bank met all capital adequacy requirements to which they are subject.

In July 2013, the Federal banking agencies announced their approval of the final rule to implement the Basel III regulatory reforms, among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The approved rule included a new minimum ratio of common equity Tier 1 (CET1) capital of 4.5%, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, and included a minimum leverage ratio of 4.0% for all banking institutions. Additionally, the rule created a capital conservation buffer of 2.5% of risk-weighted assets, and prohibited banking organizations from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative, if the capital conservation buffer is not maintained. This new capital conservation buffer requirement is has been phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until being fully implemented in January 2019.  The enhanced capital requirements for banking organizations such as the Company and the Bank began January 1, 2015. Other changes included revised risk-weighting of some assets, stricter limitations on mortgage servicing assets and deferred tax assets, and replacement of the ratings-based approach to risk weight securities.

As of June 30, 2019, 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:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2019	Amount		Ratio			Amount		Ratio			Amount		Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$	256,982		13.22	%	$	155,536		8.00	%		n/a		n/a
Southern Bank		247,199		12.81	%		154,364		8.00	%		192,954		10.00	%
Tier I Capital (to Risk-Weighted Assets)
Consolidated		235,768		12.13	%		116,652		6.00	%		n/a		n/a
Southern Bank		225,985		11.71	%		115,773		6.00	%		154,364		8.00	%
Tier I Capital (to Average Assets)
Consolidated		235,768		10.81	%		87,231		4.00	%		n/a		n/a
Southern Bank		225,985		10.38	%		87,077		4.00	%		108,846		5.00	%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated		220,725		11.35	%		87,489		4.50	%		n/a		n/a
Southern Bank		225,985		11.71	%		86,829		4.50	%		125,420		6.50	%

33

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2018	Amount		Ratio			Amount		Ratio			Amount		Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$	222,133		13.53	%	$	131,335		8.00	%		n/a		n/a
Southern Bank		214,804		13.18	%		130,337		8.00	%		162,921		10.00	%
Tier I Capital (to Risk-Weighted Assets)
Consolidated		202,756		12.35	%		98,501		6.00	%		n/a		n/a
Southern Bank		195,427		12.00	%		97,753		6.00	%		130,337		8.00	%
Tier I Capital (to Average Assets)
Consolidated		202,756		10.97	%		73,932		4.00	%		n/a		n/a
Southern Bank		195,427		10.60	%		73,721		4.00	%		92,152		5.00	%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated		188,416		11.48	%		73,876		4.50	%		n/a		n/a
Southern Bank		195,427		12.00	%		73,315		4.50	%		105,899		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, 2019, approximately $29.7 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval.

NOTE 15:  Commitments and Credit Risk

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 stand-alone 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 $2.6 million at June 30, 2019, and $2.5 million at June 30, 2018, with terms ranging from 12 to 24 months. At June 30, 2019, 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 $317.4 million in commitments to extend credit at June 30, 2019, and $266.8 million at June 30, 2018.

34

At June 30, 2019, total commitments to originate fixed-rate loans with terms in excess of one year were $42.6 million at rates ranging from 3.35% to 15.00%, with a weighted-average rate of 5.43%. 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 $517.3 million at June 30, 2019, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area.

NOTE 16:  Earnings Per Share

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

	Year Ended June 30,
(dollars in thousands except per share data)	2019		2018		2017
Net income	$	28,904	$	20,929	$	15,552
Denominator for basic earnings per share -
Weighted-average shares outstanding		9,193,235		8,734,334		7,483,350
Effect of dilutive securities stock options or awards		10,674		11,188		27,530
Denominator for diluted earnings per share		9,203,909		8,745,522		7,510,880
Basic earnings per share available to common stockholders	$	3.14	$	2.40	$	2.08
Diluted earnings per share available to common stockholders	$	3.14	$	2.39	$	2.07

NOTE 17: Acquisitions

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.  Upon completion of the Merger, each share of Gideon common stock was converted into the right to receive $72.48 in cash, as well as 2.04 shares of Southern Missouri common stock, with cash payable in lieu of fractional Southern Missouri shares (the “Merger Consideration”).  The Company issued an aggregate of 317,225 shares of common stock for the stock portion of the Merger Consideration and paid an aggregate of approximately $11.3 million for the cash portion of the Merger Consideration.  The conversion of data systems took place on December 8, 2018. The Company acquired First Commercial primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2019, the Company incurred $858,000 of third-party acquisition-related costs with $783,000 being included in noninterest expense in the Company's consolidated statement of income for the year ended June 30, 2019, and $75,000 for the year ended June 30, 2018.

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Gideon acquisition is detailed in the following table.

35

Gideon Bancshares Company
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$	11,271
Common stock, at fair value		10,757
Total consideration	$	22,028
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$	2,894
Investment securities		54,866
Loans		144,286
Premises and equipment		3,663
Identifiable intangible assets		4,125
Miscellaneous other assets		5,926
Deposits		(170,687	)
FHLB Advances		(18,701	)
Note Payable		(4,400	)
Miscellaneous other liabilities		(956	)
Total identifiable net assets		21,016
Goodwill	$	1,012

Of the total estimated purchase price of $22.0 million, $4.1 million has been allocated to core deposit intangible. Additionally, $1.0 million has been allocated to goodwill and none of the purchase price is deductible.  Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and First Commercial.  Total goodwill was assigned to the acquisition of First Commercial.  The core deposit intangible will be amortized over seven years on a straight line basis.

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, our assessment of the ability of the borrower to service the debt, and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to $25.5 million of purchased credit impaired loans was not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using individual analysis of each purchased credit impaired loan.

The Company acquired the $154.0 million loan portfolio at an estimated fair value discount of $9.7 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30.

The acquired business contributed revenues of $4.1 million and earnings of $565,000 for the period from November 21, 2018 through June 30, 2019.  The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on the first day of each period:

	Pro Forma
	Twelve months ended
	June 30,
	2019		2018
Revenue	$	90,954	$	84,981
Earnings		29,583		22,791

36

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. The conversion of data systems took place on March 17, 2018. The Company acquired SMB-Marshfield primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2018, the Company incurred $708,000 of third-party acquisition-related costs with $683,000 being included in noninterest expense in the Company's consolidated statement of income for the year ended June 30, 2018, and $25,000 in the prior year end.  The goodwill of $4.4 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Bank and SMB-Marshfield. Total goodwill was assigned to the acquisition of the bank holding company.

The following table summarizes the consideration paid for Bancshares and SMB-Marshfield, and the amounts of assets acquired and liabilities assumed recognized at the acquisition date:

Southern Missouri Bank of Marshfield
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$	3,860
Common stock, at fair value		12,955
Total consideration	$	16,815
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$	2,359
Interest bearing time deposits		1,450
Investment securities		5,557
Loans		68,258
Premises and equipment		3,409
BOLI		2,271
Identifiable intangible assets		1,345
Miscellaneous other assets		1,897
Deposits		(68,152	)
FHLB Advances		(5,344	)
Miscellaneous other liabilities		(681	)
Total identifiable net assets		12,369
Goodwill	$	4,446

NOTE 18:  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

37

Recurring Measurements.  The following table presents the fair value measurements of assets  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, 2019 and 2018:

	Fair Value Measurements at June 30, 2019, Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant UnobservableInputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
U.S. government sponsored enterprises (GSEs)	$	7,270	$	-	$	7,270	$	-
State and political subdivisions		42,783		-		42,783		-
Other securities		5,053		-		5,053		-
Mortgage-backed GSE residential		110,429		-		110,429		-

	Fair Value Measurements at June 30, 2018, Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Othe Observable Inputs		Significant Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
U.S. government sponsored enterprises (GSEs)	$	9,385	$	-	$	9,385	$	-
State and political subdivisions		41,612		-		41,612		-
Other securities		5,152		-		5,152		-
Mortgage-backed GSE residential		90,176		-		90,176		-

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, 2019.

Available-for-sale 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.

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, 2019 and 2018:

	Fair Value Measurements at June 30 , 2019, 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	$	2,430	$	-	$	-	$	2,430

	Fair Value Measurements at June 30, 2018, 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)
Impaired loans (collateral dependent)	$	490	$	-	$	-	$	490
Foreclosed and repossessed assets held for sale		1,467		-		-		1,467

38

The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the years ended June 30, 2019 and 2018:

(dollars in thousands)	2019			2018
Impaired loans (collateral dependent)	$	-		$	(750	)
Foreclosed and repossessed assets held for sale		(353	)		(248	)
Total losses on assets measured on a non-recurring basis	$	(353	)	$	(998	)

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 hierarch.  For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

Impaired Loans (Collateral Dependent).  A collateral dependent loan is considered to be impaired when it is probable that all of the principal and interest due may not be collected according to its contractual terms.  Generally, when a collateral dependent loan is considered impaired, the amount of reserve required is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material collateral dependent loans deemed impaired using the fair value of the collateral for collateral dependent loans. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. In addition, management applies selling and other discounts to the underlying collateral value to determine the fair value. If an appraised value is not available, the fair value of the collateral dependent impaired loan is determined by an adjusted appraised value including unobservable cash flows.

On a quarterly basis, loans classified as special mention, substandard, doubtful, or loss are evaluated including the loan officer’s review of the collateral and its current condition, the Company’s knowledge of the current economic environment in the market where the collateral is located, and the Company’s recent experience with real estate in the area. The date of the appraisal is also considered in conjunction with the economic environment and any decline in the real estate market since the appraisal was obtained.  For all loan types, updated appraisals are obtained if considered necessary.  In instances where the economic environment has worsened and/or the real estate market declined since the last appraisal, a higher distressed sale discount would be applied to the appraised value.

The Company records collateral dependent impaired loans based on nonrecurring Level 3 inputs.  If a collateral dependent 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 specific reserve as part of the allowance for loan losses.

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 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.

39

Unobservable (Level 3) Inputs.  The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

(dollars in thousands)	Fair value at June 30 , 2019		Valuation technique	Unobservable inputs	Range of inputs applied			Weighted-average inputs applied
Nonrecurring Measurements
Foreclosed and repossessed assets	$	2,430	Third party appraisal	Marketability discount		5.1% - 77.0	%		35.2	%

(dollars in thousands)	Fair value at June 30, 2018		Valuation technique	Unobservable inputs	Range of inputs applied			Weighted-average inputs applied
Nonrecurring Measurements
Impaired loans (collateral dependent)	$	490	Internal Valuation	Discount to reflect realizable value		n/a
Foreclosed and repossessed assets	$	1,467	Third party appraisal	Marketability discount		0.0% - 53.1	%		18.2	%

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, 2019 and 2018:

	June 30, 2019
			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	$	35,400	$	35,400	$	-	$	-
Interest-bearing time deposits		969		-		969		-
Stock in FHLB		5,233		-		5,233		-
Stock in Federal Reserve Bank of St. Louis		4,350		-		4,350		-
Loans receivable, net		1,846,405		-		-		1,823,040
Accrued interest receivable		10,189		-		10,189		-
Financial liabilities
Deposits		1,893,695		1,214,606		-		678,301
Securities sold under agreements to          repurchase		4,376		-		4,376		-
Advances from FHLB		44,908		-		45,547		-
Note payable		3,000		-		-		3,000
Accrued interest payable		2,099		-		2,099		-
Subordinated debt		15,043		-		-		15,267
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		-		-		-		-
Letters of credit		-		-		-		-
Lines of credit		-		-		-		-

40

	June 30, 2018
			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	$	26,326	$	26,326	$	-	$	-
Interest-bearing time deposits		1,953		-		1,953		-
Stock in FHLB		5,661		-		5,661		-
Stock in Federal Reserve Bank of St. Louis		3,566		-		3,566		-
Loans receivable, net		1,563,380		-		-		1,556,466
Accrued interest receivable		7,992		-		7,992		-
Financial liabilities
Deposits		1,579,902		1,046,491		-		529,297
Securities sold under agreements to          repurchase		3,267		-		3,267		-
Advances from FHLB		76,652		66,550		10,110		-
Note payable		3,000		-		-		3,000
Accrued interest payable		1,206		-		1,206		-
Subordinated debt		14,945		-		-		14,382
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		-		-		-		-
Letters of credit		-		-		-		-
Lines of credit		-		-		-		-

The following methods and assumptions were used in estimating the fair values of financial instruments:

Cash and cash equivalents, interest-bearing time deposits, accrued interest receivable, and accrued interest payable are valued at their carrying amounts, which approximates book value.  Stock in FHLB and the Federal Reserve Bank of St. Louis is valued at cost, which approximates fair value.  For June 30, 2019, the fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayments discount spreads, credit loss and liquidity premiums. For June 30, 2018, the fair value of loans was estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. .

The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.  Non-maturity deposits and securities sold under agreements are valued at their carrying value, which approximates fair value.  Fair value of advances from the FHLB is estimated by discounting maturities using an estimate of the current market for similar instruments.  The fair value of subordinated debt and notes payable is estimated using rates currently available to the Company for debt with similar terms and maturities.  The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and committed rates.  The fair value of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date.

NOTE 19:  Significant Estimates

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1.

41

NOTE 20:  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:

(dollars in thousands)	June 30,
Condensed Balance Sheets	2019		2018
Assets
Cash and cash equivalents	$	8,149	$	8,383
Other assets		13,438		13,434
Investment in common stock of Bank		234,716		197,863
TOTAL ASSETS	$	256,303	$	219,680
Liabilities and Stockholders' Equity
Accrued expenses and other liabilities	$	2,868	$	4,041
Subordinated debt		15,043		14,945
TOTAL LIABILITIES		17,911		18,986
Stockholders' equity		238,392		200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	256,303	$	219,680

		Year ended June 30,
Condensed Statements of Income	(dollars in thousands)	2019			2018			2017
Interest income		$	25		$	20		$	17
Interest expense			1,079			887			661
Net interest expense			(1,054	)		(867	)		(644	)
Dividends from Bank			23,000			6,000			4,000
Operating expenses			827			940			955
Income before income taxes and
equity in undistributed income of the Bank			21,119			4,193			2,401
Income tax benefit			358			437			455
Income before equity in undistributed
income of the Bank			21,477			4,630			2,856
Equity in undistributed income of the Bank			7,427			16,299			12,696
NET INCOME		$	28,904		$	20,929		$	15,552
COMPREHENSIVE INCOME		$	32,496		$	18,057		$	14,417

		Year ended June 30,
Condensed Statements of Cash Flow	(dollars in thousands)	2019			2018			2017
Cash Flows from operating activities:
Net income		$	28,904		$	20,929		$	15,552
Changes in:
Equity in undistributed income of the Bank			(7,427	)		(16,299	)		(12,696	)
Other adjustments, net			(635	)		40			412
NET CASH PROVIDED BY OPERATING ACTIVITES			20,842			4,670			3,268
Cash flows from investing activities:
Investments in Bank subsidiaries			(10,747	)		(3,488	)		(11,062	)
NET CASH USED IN INVESTING ACTIVITIES			(10,747	)		(3,488	)		(11,062	)
Cash flows from financing activities:
Dividends on common stock			(4,763	)		(3,827	)		(2,981	)
Exercise of stock options			-			172			61
Payments to acquire treasury stock			(1,166	)		-			-
Proceeds from issuance of common stock			-			-			24,144
Proceeds from issuance of long term debt			-			-			15,000
Repayments of long term debt			(4,400	)		-			(15,650	)
Injection of capital to subsidiary			-			-			(6,000	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES			(10,329	)		(3,655	)		14,574
Net increase (decrease) in cash and cash equivalents			(234	)		(2,473	)		6,780
Cash and cash equivalents at beginning of year			8,383			10,856			4,076
CASH AND CASH EQUIVALENTS AT END OF YEAR		$	8,149		$	8,383		$	10,856

42

NOTE 21:  Quarterly Financial Data (Unaudited)

Quarterly operating data is summarized as follows (in thousands):

	June 30, 2019
(dollars in thousands)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Interest income	$	22,042	$	24,207	$	25,186	$	26,047
Interest expense		4,875		6,139		6,632		7,054
Net interest income		17,167		18,068		18,554		18,993
Provision for loan losses		682		314		491		545
Noninterest income		3,430		4,054		3,946		3,740
Noninterest expense		11,449		12,552		13,190		12,778
Income before income taxes		8,466		9,256		8,819		9,410
Income tax expense		1,666		1,802		1,725		1,854
NET INCOME	$	6,800	$	7,454	$	7,094	$	7,556

	June 30, 2018
(dollars in thousands)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Interest income	$	18,411	$	19,231	$	19,385	$	20,147
Interest expense		3,308		3,528		3,710		4,245
Net interest income		15,103		15,703		15,675		15,902
Provision for loan losses		868		642		550		987
Noninterest income		3,271		3,174		3,870		3,556
Noninterest expense		10,755		10,519		11,927		11,274
Income before income taxes		6,751		7,716		7,068		7,197
Income tax expense		1,889		2,546		1,810		1,558
NET INCOME	$	4,862	$	5,170	$	5,258	$	5,639

	June 30, 2017
(dollars in thousands)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Interest income	$	15,105	$	15,083	$	14,955	$	16,345
Interest expense		2,529		2,510		2,523		2,804
Net interest income		12,576		12,573		12,432		13,541
Provision for loan losses		925		656		376		383
Noninterest income		2,575		2,700		2,925		2,884
Noninterest expense		9,159		8,706		9,564		10,823
Income before income taxes		5,067		5,911		5,417		5,219
Income tax expense		1,358		1,735		1,463		1,506
NET INCOME	$	3,709	$	4,176	$	3,954	$	3,713

43

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, 2019, was carried out under the supervision and with the participation of our Chief Executive Officer, our Chief Financial Officer, and several other members of our senior management. Our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2019 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 the Chief Executive Officer and 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, 2019, 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.

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 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.

44

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, 2019. 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, 2019, the Company's internal control over financial reporting was effective based on those criteria.

Date: September 13, 2019	By:	/s/ Greg A. Steffens                                                         Greg A. Steffens President and Chief Executive Officer (Principal Executive Officer)
		/s/ Matthew T. Funke                                                        Matthew T. Funke Chief Financial Officer (Principal Financial and Accounting Officer)

45

Report of Independent Registered Public Accounting Firm

Stockholders, 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, 2019 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, 2019 based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company and our report dated September 13, 2019 expressed an unqualified opinion.

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.  Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

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 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 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.

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/ BKD, LLP

Decatur, Illinois

September 13, 2019

46

PART IV

Item 15.       Exhibits and Financial Statement Schedules

(a)(1)Financial Statements:

The following are contained in Item 8 of this Form 10-K:

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets at June 30, 2019 and 2018

Consolidated Statements of Income for the Years Ended June 30, 2019, 2018, and 2017

Consolidated Statements of Stockholders’ Equity for the Years Ended June 30, 2019, 2018, and 2017

Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2019, 2018, and 2017

Consolidated Statements of Cash Flows for the Years Ended June 30, 2019, 2018, and 2017

Notes to the Consolidated Financial Statements, June 30, 2019, 2018, and 2017

(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.

47

(a)(3)     Exhibits:

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	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)
10	Material Contracts:
	1.	Registrant's 2017 Omnibus Incentive Plan (attached to the Registrant's definitive proxy statement filed on September 26, 2017, and incorporated herein by reference)
	2.	2008 Equity Incentive Plan (attached to the Registrant's definitive proxy statement filed on September 19, 2008 and incorporated herein by reference)
	3.	2003 Stock Option and Incentive Plan (attached to the Registrant's definitive proxy statement filed on September 17, 2003 and incorporated herein by reference)
	4.	1994 Stock Option and Incentive Plan (attached to the Registrant's definitive proxy statement filed on October 21, 1994 and incorporated herein by reference)"P"
	5.	Management Recognition and Development Plan (attached to the Registrant's definitive proxy statement filed on October 21, 1994 and incorporated herein by reference)"P"
	6.	Employment Agreements
		(i)	Employment Agreement with Greg A. Steffens (files as an exhibit to the Registrant's Annual Report on Form 10-KSB for the year ended June 30, 1999)
	7.	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 Ronnie D. Black (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 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)
		(iv)	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)
		(v)	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)
		(vi)	Director's Retirement Agreement with Charles R. Moffitt (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)
		(vii)	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)
		(viii)	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)
		(ix)	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, 2015 and incorporated herein by reference)
	8.	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)
10.1	Named Executive Officer Salary and Bonus Arrangements
10.2	Director Fee Arrangements for 2019
11	Statement Regarding Computation of Per Share Earnings
14	Code of Conduct and Ethics (filed as an exhibit to Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 2016).
21	Subsidiaries of the Registrant
23	Consent of Auditors
31.1	Rule 13a-14(a)/15-d14(a) Certifications
31.2	Rule 13a-14(a)/15-d14(a) Certifications
32	Section 1350 Certifications
101	The following financial statements from the Southern Missouri Bancorp, Inc. Annual Report on Form 10-K/A for the fiscal year ended June 30, 2019, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated balance sheets, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of stocholders' equity, (v) consolidated statements of cash flows and (vi) the notes to consolidated financial statements.

48

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:	February 5, 2020	By:	/s/ Greg A. Steffens                                                           Greg A. Steffens President and Chief Executive Officer (Duly Authorized Representative)

49

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the registration statement on Form S-3 (File No. 333- 156563, File No. 333-200736, and File No. 333-202963), and the registration statements on Form S-8 (File No. 333-2320, File No. 333-127134, File No. 333-184188, File No. 333-170651, File No. 333- 222588) relating to the Southern Missouri Bancorp, Inc. 1994 Stock Option and Incentive Plan and Management Recognition Plan, 2003 Stock Option and Incentive Plan, 2008 Equity Incentive Plan, Southern Bank 401(k) Retirement Plan, and 2017 Omnibus Incentive Plan respectively, of our report dated September 13, 2019 relating to the consolidated balance sheets of Southern Missouri Bancorp, Inc. and subsidiaries as of June 30, 2019 and 2018, 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, 2019, and the effectiveness of internal control over financial reporting as of June 30, 2019, which reports appear in the June 30, 2019 annual report on Form 10-K of Southern Missouri Bancorp,

Inc.

/s/ BKD, LLP

Decatur, Illinois

September 13, 2019

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Greg A. Steffens, certify that:

1)	I have reviewed this annual report on Form 10-K of Southern Missouri Bancorp, Inc.;
2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4)	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5)	I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting

Date: February 5, 2020
By:   /s/ Greg A. Steffens Greg A. Steffens
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Matthew T. Funke, certify that:

1)	I have reviewed this annual report on Form 10-K of Southern Missouri Bancorp, Inc.;
2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4)	I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5)	I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting

Date: February 5, 2020
By:   /s/ Matthew T. Funke Matthew T. Funke
Chief Financial Officer
(Principal Financial and Accounting Officer)

EX-32

EXHIBIT 32

CERTIFICATION

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned hereby certifies in his capacity as an officer of Southern Missouri Bancorp, Inc. (the "Company"), that the Annual Report of the Company on Form 10-K for the fiscal year ended June 30, 2019 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the financial statements included in such report.

Date:	February 5, 2020	By:	/s/ Greg A. Steffens Greg A. Steffens President and Chief Executive Office (Principal Executive Officer)
Date:	February 5, 2020	By:	/s/ Matthew T. Funke Matthew T. Funke Chief Financial Officer (Principal Financial and Accounting Officer)

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Note 2: Available for Sale Securities: Repurchase Agreements, Collateral, Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Repurchase Agreements, Collateral, Policy

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $143.7 million and $124.2 million at June 30, 2019 and 2018, respectively.  The securities pledged consist of marketable securities, including $5.6 million and $8.4 million of U.S. Government and Federal Agency Obligations, $47.3 million and $39.8 million of Mortgage-Backed Securities, $55.7 million and $41.5 million of Collateralized Mortgage Obligations, $34.9 million and $34.2 million of State and Political Subdivisions Obligations, and $300,000 and $300,000 of Other Securities at June 30, 2019 and 2018, respectively.

Gains of $265,450 and losses of $21,576 were recognized from sales of available-for-sale securities in 2019.  Gains of $491,500 and losses of $157,105 were recognized from sales of available-for-sale securities in 2018.   

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, 2019.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2019, was $51.8 million, which is approximately 31.3% of the Company’s available for sale investment portfolio, as compared to $124.9 million or approximately 85.4% of the Company’s available for sale investment portfolio at June 30, 2018.   Except as discussed below, management believes the declines in fair value for these securities to be temporary.

XML

NOTE 17: Acquisitions: Business Acquisition, Pro Forma Information (Details) - Gideon Bancshares Company - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition, Pro Forma Revenue	$ 90,954	$ 84,981
Business Acquisition, Pro Forma Net Income (Loss)	$ 29,583	$ 22,791

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NOTE 18: Fair Value Measurements: Fair Value Option, Disclosures (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Foreclosed and repossessed assets
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs	$ 2,430	$ 1,467
Foreclosed and repossessed assets | Third party appraisal
Fair Value Measurements Nonrecurring Valuation Technique	Third party appraisal	Third party appraisal
Foreclosed and repossessed assets | Third party appraisal | Marketability discount
Fair Value Measurements Nonrecurring Unobservable Inputs	Marketability discount	Marketability discount
Fair Value Measurements Nonrecurring Range of discounts Applied	5.1% - 77.0%	0.0% - 53.1%
Fair Value Measurements Nonrecurring Weighted Average Discount Applied	35.2%	18.2%
Impaired loans (collateral dependent)
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs		$ 490
Fair Value Measurements Nonrecurring Range of discounts Applied		n/a
Impaired loans (collateral dependent) | Discount to reflect realizable value
Fair Value Measurements Nonrecurring Unobservable Inputs		Discount to reflect realizable value
Impaired loans (collateral dependent) | Internal Valuation
Fair Value Measurements Nonrecurring Valuation Technique		Internal Valuation

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NOTE 3: Loans and Allowance for Loan Losses: Commercial Real Estate Lending (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Commercial Real Estate Lending

Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments 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 our primary lending area.  Approximately $301.7 million of our $840.1 million in commercial real estate loans are secured by properties located outside our primary lending area.

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 maturity for up to seven 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. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

XML

NOTE 11: Employee Benefits: 401(k) Retirement Plan Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

401(k) Retirement Plan Policy

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, 2019, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2019. Total 401(k) expense for fiscal 2019, 2018, and 2017 was $1.3 million, $1.3 million, and $877,000, respectively. At June 30, 2019, 401(k) plan participants held approximately 366,000 shares 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.

XML

NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Changes In:
NET CASH PROVIDED BY OPERATING ACTIVITIES	$ 38,601	$ 30,644	$ 25,618
Cash flows from investing activities:
Net cash used in investing activities	(112,992)	(108,479)	(123,116)
Cash flows from financing activities:
Exercise of stock options	0	172	61
Proceeds from Issuance of Long-term Debt	0	0	(15,000)
Repayments of Long-term Debt	4,400	0	15,650
Net cash provided by financing activities	83,465	73,375	105,730
Increase (decrease) in cash and cash equivalents	9,074	(4,460)	8,232
Cash and cash equivalents at beginning of period	26,326	30,786	22,554
Cash and cash equivalents at end of period	35,400	26,326	30,786
Parent Company
Cash Flows From Operating Activities:
Cash Provided by (Used in) Operating Activities, Discontinued Operations	28,904	20,929	15,552
Changes In:
Increase (Decrease) Equity in Undistributed Income of the Bank	(7,427)	(16,299)	(12,696)
Increase (Decrease) in Other Adjustments, Net	(635)	40	412
NET CASH PROVIDED BY OPERATING ACTIVITIES	20,842	4,670	3,268
Cash flows from investing activities:
Investments in Bank subsidiaries	(10,747)	(3,488)	(11,062)
Net cash used in investing activities	(10,747)	(3,488)	(11,062)
Cash flows from financing activities:
Dividends paid on common stock	(4,763)	(3,827)	(2,981)
Exercise of stock options	0	172	61
Redemption of Common Stock Warrants	(1,166)	0	0
Proceeds from Issuance of Common Stock	0	0	24,144
Proceeds from Issuance of Long-term Debt	0	0	15,000
Repayments of Long-term Debt	(4,400)	0	(15,650)
Injection of capital to subsidiary	0	0	(6,000)
Net cash provided by financing activities	(10,329)	(3,655)	14,574
Increase (decrease) in cash and cash equivalents	(234)	(2,473)	6,780
Cash and cash equivalents at beginning of period	8,383	10,856	4,076
Cash and cash equivalents at end of period	$ 8,149	$ 8,383	$ 10,856

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NOTE 8: Advances from Federal Home Loan Bank: Federal Home Loan Bank, Advances (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Federal Home Loan Bank, Advances

		June 30,
	Interest	2019	2018
Maturity	Rate	(dollars in thousands)
08/13/18	3.32%	$                                  -	$                                  501
08/14/18	3.98%	-	5,000
10/09/18	3.38%	-	1,503
12/28/18	1.69%	-	249
04/01/19	1.60%	-	249
04/01/19	1.27%	-	248
08/19/19	1.52%	200	396
11/22/19	1.91%	1,741	-
12/30/19	1.92%	249	248
01/14/20	1.76%	249	247
03/31/20	1.49%	248	246
06/10/20	1.26%	247	244
09/09/20	2.02%	4,929	-
11/23/20	2.13%	1,725	-
01/14/21	1.92%	247	245
03/31/21	1.68%	246	243
05/17/21	2.43%	5,000	-
06/10/21	1.42%	244	241
09/07/21	2.81%	9,000	-
09/09/21	2.28%	1,960	-
10/01/21	2.53%	5,000	-
11/16/21	2.43%	5,000	-
03/31/22	1.91%	244	242
03/28/24	2.56%	8,000	-
12/14/26	2.65%	379	-
Overnight	2.03%	-	66,550
TOTAL		$                          44,908	$                             76,652
Weighted-average rate		2.42%	2.18%

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Interest Income Recognized on Impaired Loans

	Fiscal 2019
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             2,081	$                                 112
Construction Real Estate	1,297	246
Commercial Real Estate	14,547	1,570
Consumer Loans	-	-
Commercial Loans	4,212	926
Total Loans	$                           22,137	$                              2,854

	Fiscal 2018
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             3,358	$                                 219
Construction Real Estate	1,317	165
Commercial Real Estate	9,446	1,163
Consumer Loans	-	-
Commercial Loans	3,152	199
Total Loans	$                           17,273	$                              1,746

	Fiscal 2017
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             3,011	$                                 119
Construction Real Estate	1,370	148
Commercial Real Estate	10,044	782
Consumer Loans	-	-
Commercial Loans	1,529	74
Total Loans	$                           15,954	$                              1,123

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NOTE 11: Employee Benefits: 2008 Equity Incentive Plan Policy: Equity Incentive Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2012
Equity Incentive Plan Description	The Company adopted an Equity Incentive Plan (EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors.
Equity Incentive Plan Expense	$ 141	$ 165	$ 284
Restricted Stock
Equity Incentive Plan Shares Awarded	0	0	13,125	3,750	8,000	24,000	73,928
Equity Incentive Plan Shares Vested	7,100	5,400	21,200
Equity Incentive Plan Unvested Compensation Expense	$ 247

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Note 9: Note Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000
Line of Credit Facility, Maximum Amount Outstanding During Period	3,000	$ 3,000
Line of Credit Facility, Current Borrowing Capacity	9,000	12,000
Line of Credit Facility, Remaining Borrowing Capacity	$ 6,000	$ 9,000

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Invesetment (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Balance in the Allowance for Loan Losses and Recorded Invesetment

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2019	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,226	$              1,097	$              8,793	$                 902	$              4,196	$            18,214
Provision charged to expense	487	268	765	231	281	2,032
Losses charged off	(30)	-	(164)	(103)	(92)	(389)
Recoveries	23	-	5	16	2	46
Balance, end of period	$              3,706	$              1,365	$              9,399	$              1,046	$              4,387	$            19,903
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Ending Balance: collectively             evaluated for impairment	$              3,706	$              1,365	$              9,399	$              1,046	$              4,387	$            19,903
Ending Balance: loans acquired             with deteriorated credit quality	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Loans:
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Ending Balance: collectively             evaluated for impairment	$          490,307	$            78,826	$          821,415	$            97,534	$          349,681	$       1,837,763
Ending Balance: loans acquired             with deteriorated credit quality	$              1,685	$              1,308	$            19,362	$                      -	$              6,193	$            28,548

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2018	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,230	$                 964	$              7,068	$                 757	$              3,519	$            15,538
Provision charged to expense	184	142	1,779	251	691	3,047
Losses charged off	(190)	(9)	(56)	(129)	(22)	(406)
Recoveries	2	-	2	23	8	35
Balance, end of period	$              3,226	$              1,097	$              8,793	$                 902	$              4,196	$            18,214
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                 399	$                      -	$                 351	$                 750
Ending Balance: collectively             evaluated for impairment	$              3,226	$              1,097	$              8,394	$                 902	$              3,845	$            17,464
Ending Balance: loans acquired             with deteriorated credit quality	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Loans:
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                 660	$                      -	$                 580	$              1,240
Ending Balance: collectively             evaluated for impairment	$          447,706	$            64,888	$          696,377	$            78,571	$          278,241	$       1,565,783
Ending Balance: loans acquired             with deteriorated credit quality	$              3,213	$              1,297	$              7,610	$                      -	$              2,451	$            14,571

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2017	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,247	$              1,091	$              5,711	$                 738	$              3,004	$            13,791
Provision charged to expense	184	(97)	1,356	76	821	2,340
Losses charged off	(211)	(31)	(19)	(65)	(337)	(663)
Recoveries	10	1	20	8	31	70
Balance, end of period	$              3,230	$                 964	$              7,068	$                 757	$              3,519	$            15,538

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NOTE 5: Premises and Equipment: Property, Plant and Equipment (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Property, Plant and Equipment

	June 30,
(dollars in thousands)	2019	2018
Land	$                              12,414	$                              12,152
Buildings and improvements	54,304	46,802
Construction in progress	466	4
Furniture, fixtures, equipment and software	16,514	13,680
Automobiles	107	81
	83,805	72,719
Less accumulated depreciation	21,078	17,887
	$                              62,727	$                              54,832

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NOTE 6: Deposits

12 Months Ended

Jun. 30, 2019

Notes

NOTE 6: Deposits

NOTE 6:  Deposits

Deposits are summarized as follows:

	June 30,
(dollars in thousands)	2019	2018
Non-interest bearing accounts	$                         218,889	$                         203,517
NOW accounts	639,219	569,005
Money market deposit accounts	188,355	116,389
Savings accounts	167,973	157,540
TOTAL NON-MATURITY DEPOSITS	1,214,436	1,046,451
Certificates
0.00-.99%	2,447	77,958
1.00-1.99%	221,409	356,172
2.00-2.99%	398,931	98,842
3.00-3.99%	56,310	479
4.00-4.99%	162	-
TOTAL CERTIFICATES	679,259	533,451
TOTAL DEPOSITS	$                      1,893,695	$                      1,579,902

The aggregate amount of deposits with a minimum denomination of $250,000 was $519.3 million and $401.7 million at June 30, 2019 and 2018, respectively. 

Certificate maturities are summarized as follows:

(dollars in thousands)
July 1, 2019 to June 30, 2020	$                         467,676
July 1, 2020 to June 30, 2021	152,980
July 1, 2021 to June 30, 2022	38,045
July 1, 2022 to June 30, 2023	16,625
July 1, 2023 to June 30, 2024	3,933
Thereafter	-
TOTAL	$                         679,259

Brokered certificates totaled $44.9 million and $13.6 million at June 30, 2019 and 2018, respectively.  Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2019 and 2018 totaled approximately $3.8 million and $2.9 million, respectively.

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Consumer Loan
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	$ 8	$ 25
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	8	25
Impaired Financing Receivable With No Related Allowance Specific Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	0
Impaired Financing Receivable With Related Allowance Specific Allowance	0	0
Impaired Financing Receivable With and Without Related Allowance Recorded Investment	8	25
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance	8	25
Impaired Financing Receivable With and Without Related Allowance Specific Allowance	0	0
Commercial Loan
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	6,999	2,787
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	9,187	3,409
Impaired Financing Receivable With No Related Allowance Specific Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	580
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	580
Impaired Financing Receivable With Related Allowance Specific Allowance	0	351
Impaired Financing Receivable With and Without Related Allowance Recorded Investment	6,999	3,367
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance	9,187	3,989
Impaired Financing Receivable With and Without Related Allowance Specific Allowance	0	351
Construction Loan Payable
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,330	1,321
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,419	1,569
Impaired Financing Receivable With No Related Allowance Specific Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	0
Impaired Financing Receivable With Related Allowance Specific Allowance	0	0
Impaired Financing Receivable With and Without Related Allowance Recorded Investment	1,330	1,321
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance	1,419	1,569
Impaired Financing Receivable With and Without Related Allowance Specific Allowance	0	0
Residential Real Estate
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	5,104	3,820
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	5,341	4,468
Impaired Financing Receivable With No Related Allowance Specific Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	0
Impaired Financing Receivable With Related Allowance Specific Allowance	0	0
Impaired Financing Receivable With and Without Related Allowance Recorded Investment	5,104	3,820
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance	5,341	4,468
Impaired Financing Receivable With and Without Related Allowance Specific Allowance	0	0
Commercial Real Estate
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	26,410	14,052
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	31,717	15,351
Impaired Financing Receivable With No Related Allowance Specific Allowance	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	660
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	0	660
Impaired Financing Receivable With Related Allowance Specific Allowance	0	399
Impaired Financing Receivable With and Without Related Allowance Recorded Investment	26,410	14,712
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance	31,717	16,011
Impaired Financing Receivable With and Without Related Allowance Specific Allowance	$ 0	$ 399

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NOTE 3: Loans and Allowance for Loan Losses: Purchased Credit Impaired Loans Nonaccrual (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Included in Nonaccrual Loans
Purchased Credit Impaired Loans	$ 4,100	$ 1,100

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Note 10: Subordinated Debt

12 Months Ended

Jun. 30, 2019

Notes

Note 10: Subordinated Debt

NOTE 10:  Subordinated Debt

Southern Missouri Statutory Trust I issued $7.0 million of 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, redeemable after five years and bear interest at a floating rate based on LIBOR. At June 30, 2019, the current rate was 5.16%. 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 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 of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries.

In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), 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 LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2019, the current rate was 4.86%. The carrying value of the debt securities was approximately $2.6 million at June 30, 2019, and June 30, 2018.

In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), 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 LIBOR, are now redeemable at par, and mature in 2035. At June 30, 2019, the current rate was 4.21%.  The carrying value of the debt securities was approximately $5.2 million at June 30, 2019, and $5.1 million at June 30, 2018.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Organization (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Details
Assets of Wholly Owned Real Estate Investment Subsidiaries	$ 650,000

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NOTE 1: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Foreclosed Real Estate

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs. 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 operations 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Interest-Bearing Time Deposits (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Interest-Bearing Time Deposits

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

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NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Balance Sheets (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Parent Company Condensed Balance Sheets

	June 30,
(dollars in thousands)	2019	2018
Condensed Balance Sheets
Assets
Cash and cash equivalents	$                 8,149	$                 8,383
Other assets	13,438	13,434
Investment in common stock of Bank	234,716	197,863
TOTAL ASSETS	$             256,303	$             219,680
Liabilities and Stockholders' Equity
Accrued expenses and other liabilities	$                 2,868	$                 4,041
Subordinated debt	15,043	14,945
TOTAL LIABILITIES	17,911	18,986
Stockholders' equity	238,392	200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$             256,303	$             219,680

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NOTE 18: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Fair Value Measurements, Nonrecurring

	Fair Value Measurements at June 30 , 2019, 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	$                       2,430	$                               -	$                               -	$                      2,430

	Fair Value Measurements at June 30, 2018, 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)
Impaired loans (collateral dependent)	$                          490	$                               -	$                               -	$                          490
Foreclosed and repossessed assets held for sale	1,467	-	-	1,467

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NOTE 1: Organization and Summary of Significant Accounting Policies: Basis of Financial Statement Presentation (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation. The 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.

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NOTE 6: Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Aggregate Amount of Deposits With a Minimum Denomination of $250,000	$ 519,300	$ 401,700
Interest-bearing Domestic Deposit, Brokered	44,900	13,600
Deposits Held for Affiliates	$ 3,800	$ 2,900

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NOTE 4: Accounting for Certain Acquired Loans: Schedule of Acquired Loans With Credit Deterioration (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Jun. 30, 2018
Consumer Loan
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		$ 0	$ 0
Commercial Loan
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		8,381	3,073
Construction Loans
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		1,397	1,544
Outstanding Balance
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		36,368	17,387
Carrying Amount of Acquired Loans
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment	[1]	28,547	14,571
Residential Real Estate
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		1,921	3,861
Commercial Real Estate
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment		$ 24,669	$ 8,909

[1] Fair value adjustment of $7,821 and $2,816 at June 30, 2019 and 2018, respectively.

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Note 2: Available for Sale Securities: Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Available-for-sale Securities
Available-for-sale Securities, Amortized Cost Basis	$ 163,880	$ 149,367
Available-for-sale Securities, Gross Unrealized Gain	2,253	292
Available-for-sale Securities, Gross Unrealized Loss	(598)	(3,334)
Available-for-sale Securities Estimated Fair Value	165,535	146,325
Mortgage Backed Securities, Other
Available-for-sale Securities, Amortized Cost Basis	109,297	92,708
Available-for-sale Securities, Gross Unrealized Gain	1,449	1
Available-for-sale Securities, Gross Unrealized Loss	(317)	(2,533)
Available-for-sale Securities Estimated Fair Value	110,429	90,176
Other securities
Available-for-sale Securities, Amortized Cost Basis	5,176	5,284
Available-for-sale Securities, Gross Unrealized Gain	75	61
Available-for-sale Securities, Gross Unrealized Loss	(198)	(193)
Available-for-sale Securities Estimated Fair Value	5,053	5,152
Debt and Equity Securities
Available-for-sale Securities, Amortized Cost Basis	54,583	56,659
Available-for-sale Securities, Gross Unrealized Gain	804	291
Available-for-sale Securities, Gross Unrealized Loss	(281)	(801)
Available-for-sale Securities Estimated Fair Value	55,106	56,149
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC)
Available-for-sale Securities, Amortized Cost Basis	16,373	16,598
Available-for-sale Securities, Gross Unrealized Gain	64	1
Available-for-sale Securities, Gross Unrealized Loss	(65)	(486)
Available-for-sale Securities Estimated Fair Value	16,372	16,113
Government National Mortgage Association Certificates and Obligations (GNMA)
Available-for-sale Securities, Amortized Cost Basis	35	38
Available-for-sale Securities, Gross Unrealized Gain	0	0
Available-for-sale Securities, Gross Unrealized Loss	0	0
Available-for-sale Securities Estimated Fair Value	35	38
Federal National Mortgage Association Certificates and Obligations (FNMA)
Available-for-sale Securities, Amortized Cost Basis	34,943	25,800
Available-for-sale Securities, Gross Unrealized Gain	610	0
Available-for-sale Securities, Gross Unrealized Loss	(95)	(738)
Available-for-sale Securities Estimated Fair Value	35,458	25,062
Collateralized Mortgage Obligations
Available-for-sale Securities, Amortized Cost Basis	57,946	50,272
Available-for-sale Securities, Gross Unrealized Gain	775	0
Available-for-sale Securities, Gross Unrealized Loss	(157)	(1,309)
Available-for-sale Securities Estimated Fair Value	58,564	48,963
US Government-sponsored Enterprises Debt Securities
Available-for-sale Securities, Amortized Cost Basis	7,284	9,513
Available-for-sale Securities, Gross Unrealized Gain	1	0
Available-for-sale Securities, Gross Unrealized Loss	(15)	(128)
Available-for-sale Securities Estimated Fair Value	7,270	9,385
US States and Political Subdivisions Debt Securities
Available-for-sale Securities, Amortized Cost Basis	42,123	41,862
Available-for-sale Securities, Gross Unrealized Gain	728	230
Available-for-sale Securities, Gross Unrealized Loss	(68)	(480)
Available-for-sale Securities Estimated Fair Value	$ 42,783	$ 41,612

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NOTE 14: Stockholders' Equity and Regulatory Capital

12 Months Ended

Jun. 30, 2019

Notes

NOTE 14: Stockholders' Equity and Regulatory Capital

NOTE 14:  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 condensed 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). Management believes, as of June 30, 2019 and 2018, that the Company and the Bank met all capital adequacy requirements to which they are subject.

In July 2013, the Federal banking agencies announced their approval of the final rule to implement the Basel III regulatory reforms, among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The approved rule included a new minimum ratio of common equity Tier 1 (CET1) capital of 4.5%, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, and included a minimum leverage ratio of 4.0% for all banking institutions. Additionally, the rule created a capital conservation buffer of 2.5% of risk-weighted assets, and prohibited banking organizations from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative, if the capital conservation buffer is not maintained. This new capital conservation buffer requirement is has been phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until being fully implemented in January 2019.  The enhanced capital requirements for banking organizations such as the Company and the Bank began January 1, 2015. Other changes included revised risk-weighting of some assets, stricter limitations on mortgage servicing assets and deferred tax assets, and replacement of the ratings-based approach to risk weight securities.

As of June 30, 2019, 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:

	Actual		For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2019	Amount	Ratio	Amount	Ratio	Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$          256,982	13.22%	$          155,536	8.00%	n/a	n/a
Southern Bank	247,199	12.81%	154,364	8.00%	192,954	10.00%
Tier I Capital (to Risk-Weighted Assets)
Consolidated	235,768	12.13%	116,652	6.00%	n/a	n/a
Southern Bank	225,985	11.71%	115,773	6.00%	154,364	8.00%
Tier I Capital (to Average Assets)
Consolidated	235,768	10.81%	87,231	4.00%	n/a	n/a
Southern Bank	225,985	10.38%	87,077	4.00%	108,846	5.00%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated	220,725	11.35%	87,489	4.50%	n/a	n/a
Southern Bank	225,985	11.71%	86,829	4.50%	125,420	6.50%

	Actual		For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2018	Amount	Ratio	Amount	Ratio	Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$          222,133	13.53%	$          131,335	8.00%	n/a	n/a
Southern Bank	214,804	13.18%	130,337	8.00%	162,921	10.00%
Tier I Capital (to Risk-Weighted Assets)
Consolidated	202,756	12.35%	98,501	6.00%	n/a	n/a
Southern Bank	195,427	12.00%	97,753	6.00%	130,337	8.00%
Tier I Capital (to Average Assets)
Consolidated	202,756	10.97%	73,932	4.00%	n/a	n/a
Southern Bank	195,427	10.60%	73,721	4.00%	92,152	5.00%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated	188,416	11.48%	73,876	4.50%	n/a	n/a
Southern Bank	195,427	12.00%	73,315	4.50%	105,899	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, 2019, approximately $29.7 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 18: Fair Value Measurements

12 Months Ended

Jun. 30, 2019

Notes

NOTE 18: Fair Value Measurements

NOTE 18:  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

Recurring Measurements.  The following table presents the fair value measurements of assets  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, 2019 and 2018:

	Fair Value Measurements at June 30, 2019, Using:
		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
(dollars in thousands)	Fair Value	(Level 1)	(Level 2)	(Level 3)
U.S. government sponsored enterprises (GSEs)	$                 7,270	$                         -	$                 7,270	$                         -
State and political subdivisions	42,783	-	42,783	-
Other securities	5,053	-	5,053	-
Mortgage-backed GSE residential	110,429	-	110,429	-

	Fair Value Measurements at June 30, 2018, Using:
		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
(dollars in thousands)	Fair Value	(Level 1)	(Level 2)	(Level 3)
U.S. government sponsored enterprises (GSEs)	$                 9,385	$                         -	$                 9,385	$                         -
State and political subdivisions	41,612	-	41,612	-
Other securities	5,152	-	5,152	-
Mortgage-backed GSE residential	90,176	-	90,176	-

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, 2019.

Available-for-sale 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.

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, 2019 and 2018:

	Fair Value Measurements at June 30 , 2019, 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	$                       2,430	$                               -	$                               -	$                      2,430

	Fair Value Measurements at June 30, 2018, 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)
Impaired loans (collateral dependent)	$                          490	$                               -	$                               -	$                          490
Foreclosed and repossessed assets held for sale	1,467	-	-	1,467

The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the years ended June 30, 2019 and 2018:

(dollars in thousands)	2019	2018
Impaired loans (collateral dependent)	$                             -	$                        (750)
Foreclosed and repossessed assets held for sale	(353)	(248)
Total losses on assets measured on a non-recurring basis	$                        (353)	$                        (998)

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 hierarch.  For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.

Impaired Loans (Collateral Dependent).  A collateral dependent loan is considered to be impaired when it is probable that all of the principal and interest due may not be collected according to its contractual terms.  Generally, when a collateral dependent loan is considered impaired, the amount of reserve required is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material collateral dependent loans deemed impaired using the fair value of the collateral for collateral dependent loans. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. In addition, management applies selling and other discounts to the underlying collateral value to determine the fair value. If an appraised value is not available, the fair value of the collateral dependent impaired loan is determined by an adjusted appraised value including unobservable cash flows.

On a quarterly basis, loans classified as special mention, substandard, doubtful, or loss are evaluated including the loan officer’s review of the collateral and its current condition, the Company’s knowledge of the current economic environment in the market where the collateral is located, and the Company’s recent experience with real estate in the area. The date of the appraisal is also considered in conjunction with the economic environment and any decline in the real estate market since the appraisal was obtained.  For all loan types, updated appraisals are obtained if considered necessary.  In instances where the economic environment has worsened and/or the real estate market declined since the last appraisal, a higher distressed sale discount would be applied to the appraised value.

The Company records collateral dependent impaired loans based on nonrecurring Level 3 inputs.  If a collateral dependent 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 specific reserve as part of the allowance for loan losses.

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 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.

Unobservable (Level 3) Inputs.  The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

(dollars in thousands)	Fair value at June 30 , 2019	Valuation technique	Unobservable inputs	Range of inputs applied	Weighted-average inputs applied
Nonrecurring Measurements
Foreclosed and repossessed assets	$                       2,430	Third party appraisal	Marketability discount	5.1% - 77.0%	35.2%

(dollars in thousands)	Fair value at June 30, 2018	Valuation technique	Unobservable inputs	Range of inputs applied	Weighted-average inputs applied
Nonrecurring Measurements
Impaired loans (collateral dependent)	$                          490	Internal Valuation	Discount to reflect realizable value	n/a
Foreclosed and repossessed assets	$                       1,467	Third party appraisal	Marketability discount	0.0% - 53.1%	18.2%

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, 2019 and 2018:

	June 30, 2019
		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	$                     35,400	$                     35,400	$                               -	$                               -
Interest-bearing time deposits	969	-	969	-
Stock in FHLB	5,233	-	5,233	-
Stock in Federal Reserve Bank of St. Louis	4,350	-	4,350	-
Loans receivable, net	1,846,405	-	-	1,823,040
Accrued interest receivable	10,189	-	10,189	-
Financial liabilities
Deposits	1,893,695	1,214,606	-	678,301
Securities sold under agreements to          repurchase	4,376	-	4,376	-
Advances from FHLB	44,908	-	45,547	-
Note payable	3,000	-	-	3,000
Accrued interest payable	2,099	-	2,099	-
Subordinated debt	15,043	-	-	15,267
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans	-	-	-	-
Letters of credit	-	-	-	-
Lines of credit	-	-	-	-

	June 30, 2018
		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	$                     26,326	$                     26,326	$                               -	$                               -
Interest-bearing time deposits	1,953	-	1,953	-
Stock in FHLB	5,661	-	5,661	-
Stock in Federal Reserve Bank of St. Louis	3,566	-	3,566	-
Loans receivable, net	1,563,380	-	-	1,556,466
Accrued interest receivable	7,992	-	7,992	-
Financial liabilities
Deposits	1,579,902	1,046,491	-	529,297
Securities sold under agreements to          repurchase	3,267	-	3,267	-
Advances from FHLB	76,652	66,550	10,110	-
Note payable	3,000	-	-	3,000
Accrued interest payable	1,206	-	1,206	-
Subordinated debt	14,945	-	-	14,382
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans	-	-	-	-
Letters of credit	-	-	-	-
Lines of credit	-	-	-	-

The following methods and assumptions were used in estimating the fair values of financial instruments:

Cash and cash equivalents, interest-bearing time deposits, accrued interest receivable, and accrued interest payable are valued at their carrying amounts, which approximates book value.  Stock in FHLB and the Federal Reserve Bank of St. Louis is valued at cost, which approximates fair value.  For June 30, 2019, the fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayments discount spreads, credit loss and liquidity premiums. For June 30, 2018, the fair value of loans was estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics were aggregated for purposes of the calculations. .

The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities.  Non-maturity deposits and securities sold under agreements are valued at their carrying value, which approximates fair value.  Fair value of advances from the FHLB is estimated by discounting maturities using an estimate of the current market for similar instruments.  The fair value of subordinated debt and notes payable is estimated using rates currently available to the Company for debt with similar terms and maturities.  The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and committed rates.  The fair value of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date.

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Note 2: Available for Sale Securities: Other Securities Policy: Pooled Trust Preferred Securities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Details
Number of Pooled Trust Preferred Securities	2
Fair Value of Pooled Trust Preferred Securities Held	$ 779
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More	$ 193

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NOTE 3: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Consumer Loan | Pass
Financing Receivable Credit Quality Indicators	$ 97,012	$ 78,377
Consumer Loan | Watch
Financing Receivable Credit Quality Indicators	170	111
Consumer Loan | Special Mention
Financing Receivable Credit Quality Indicators	26	27
Consumer Loan | Substandard
Financing Receivable Credit Quality Indicators	291	56
Consumer Loan | Doubtful
Financing Receivable Credit Quality Indicators	35	0
Consumer Loan | Total by Credit Quality Indicator
Financing Receivable Credit Quality Indicators	97,534	78,571
Commercial Loan | Pass
Financing Receivable Credit Quality Indicators	341,069	277,568
Commercial Loan | Watch
Financing Receivable Credit Quality Indicators	7,802	374
Commercial Loan | Special Mention
Financing Receivable Credit Quality Indicators	0	69
Commercial Loan | Substandard
Financing Receivable Credit Quality Indicators	7,003	2,079
Commercial Loan | Doubtful
Financing Receivable Credit Quality Indicators	0	1,182
Commercial Loan | Total by Credit Quality Indicator
Financing Receivable Credit Quality Indicators	355,874	281,272
Construction Loan Payable | Pass
Financing Receivable Credit Quality Indicators	80,134	66,160
Construction Loan Payable | Watch
Financing Receivable Credit Quality Indicators	0	0
Construction Loan Payable | Special Mention
Financing Receivable Credit Quality Indicators	0	0
Construction Loan Payable | Substandard
Financing Receivable Credit Quality Indicators	0	25
Construction Loan Payable | Doubtful
Financing Receivable Credit Quality Indicators	0	0
Construction Loan Payable | Total by Credit Quality Indicator
Financing Receivable Credit Quality Indicators	80,134	66,185
Residential Real Estate | Pass
Financing Receivable Credit Quality Indicators	482,869	443,916
Residential Real Estate | Watch
Financing Receivable Credit Quality Indicators	1,236	1,566
Residential Real Estate | Special Mention
Financing Receivable Credit Quality Indicators	103	75
Residential Real Estate | Substandard
Financing Receivable Credit Quality Indicators	7,784	5,362
Residential Real Estate | Doubtful
Financing Receivable Credit Quality Indicators	0	0
Residential Real Estate | Total by Credit Quality Indicator
Financing Receivable Credit Quality Indicators	491,992	450,919
Commercial Real Estate | Pass
Financing Receivable Credit Quality Indicators	802,479	691,188
Commercial Real Estate | Watch
Financing Receivable Credit Quality Indicators	21,693	7,004
Commercial Real Estate | Special Mention
Financing Receivable Credit Quality Indicators	3,463	926
Commercial Real Estate | Substandard
Financing Receivable Credit Quality Indicators	13,142	4,869
Commercial Real Estate | Doubtful
Financing Receivable Credit Quality Indicators	0	660
Commercial Real Estate | Total by Credit Quality Indicator
Financing Receivable Credit Quality Indicators	$ 840,777	$ 704,647

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NOTE 1: Organization and Summary of Significant Accounting Policies: Organization (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Organization

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 the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At June 30, 2019, assets of the REIT were approximately $650 million, and consisted primarily of 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Comprehensive Income (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Comprehensive Income

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income, and changes in the funded status of defined benefit pension plans.

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Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Interest Income:
Loans	$ 92,328	$ 73,122	$ 57,988
Investment securities	2,323	2,166	1,975
Mortgage-backed securities	2,704	1,817	1,496
Other interest-earning assets	127	69	29
TOTAL INTEREST INCOME	97,482	77,174	61,488
Interest Expense:
Deposits	21,208	12,825	8,472
Securities sold under agreements to repurchase	36	37	95
Advances from FHLB of Des Moines	2,377	1,041	1,138
Note Payable	158	121	13
Subordinated debt	921	767	648
TOTAL INTEREST EXPENSE	24,700	14,791	10,366
NET INTEREST INCOME	72,782	62,383	51,122
Provision for loan losses (Note 3)	2,032	3,047	2,340
Net Interest Income After Provision for Loan Losses	70,750	59,336	48,782
Noninterest income:
Deposit Account Charges and Related Fees	5,005	4,584	3,824
Bank card interchange income	4,658	3,775	2,864
Loan Late Charges	463	432	432
Loan Servicing Fees	376	801	397
Other Loan Fees	1,360	1,467	1,146
Net realized gains on sale of loans	771	804	840
Net Realized Gains on Sale of Available for Sale Securities	244	334	0
Earnings on bank owned life insurance	1,329	947	1,135
Other income	964	727	446
TOTAL NONINTEREST INCOME	15,170	13,871	11,084
Noninterest expense:
Compensation and benefits	26,379	23,302	19,406
Occupancy and equipment, net	10,625	9,763	8,418
Deposit insurance premiums	661	517	681
Legal and professional fees	965	1,178	1,233
Advertising	1,161	1,197	1,102
Postage and office supplies	772	729	561
Intangible amortization	1,672	1,457	911
Bank Card Network Expense	2,120	1,580	1,150
Other operating expense	5,614	4,752	4,790
TOTAL NONINTEREST EXPENSE	49,969	44,475	38,252
INCOME BEFORE INCOME TAXES	35,951	28,732	21,614
Current	6,972	8,333	4,899
Deferred	75	(530)	1,163
Income Tax Expense (Benefit)	7,047	7,803	6,062
NET INCOME	$ 28,904	$ 20,929	$ 15,552
Basic earnings per share available to common stockholders	$ 3.14	$ 2.40	$ 2.08
Diluted earnings per share available to common stockholders	3.14	2.39	2.07
Dividends paid	$ 0.52	$ 0.44	$ 0.40

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NOTE 1: Organization and Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2019

Notes

NOTE 1: Organization and Summary of Significant Accounting Policies

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 the investment subsidiary, and has other preferred shareholders in order to meet the requirements to be a REIT.  At June 30, 2019, assets of the REIT were approximately $650 million, and consisted primarily of 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 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.

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of 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 loan losses, and estimated fair values of purchased loans.

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 $6.9 million and $3.4 million at June 30, 2019 and 2018, respectively. The deposits are held in various commercial banks in amounts not exceeding the FDIC’s deposit insurance limits, 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 seven years and are carried at cost.

Available for Sale Securities. Available for sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as available for sale.

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.

The Company does not invest in collateralized mortgage obligations that are considered high risk.

When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an OTTI of a debt security in earnings and the remaining portion in other comprehensive income.  As a result of this guidance, the Company’s consolidated balance sheet for the dates presented reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities 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. 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.

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. Loans are generally stated at unpaid principal balances, less the allowance for loan losses, 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. 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 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 allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans 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. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans, and the results of regulatory examinations.

Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan.

Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans (“purchased credit impaired loans”), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual 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.

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs. 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 operations 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 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 and accelerated methods 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.

Intangible Assets. The Company’s intangible assets at June 30, 2019 included gross core deposit intangibles of $14.7 million with $6.9 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.4 million. At June 30, 2018, the Company’s intangible assets included gross core deposit intangibles of $10.6 million with $5.2 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.5 million.   The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.8 million in fiscal 2020, $1.3 million in fiscal 2021, $1.3 million in fiscal 2022, $1.3 million in fiscal 2023, $1.3 million in fiscal 2024, and $963,000 thereafter.

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 financial statements.  As of June 30, 2019 and 2018, there was no impairment indicated.

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 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 subsidiary.

Incentive Plan. The Company accounts for its Management and Recognition Plan (MRP) and Equity Incentive Plan (EIP) 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.

Outside Directors’ Retirement. The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each 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, whether before or after the reorganization date.

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

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) outstanding during each year.

Comprehensive Income. Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other-than-temporary impairment 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.

The following paragraphs summarize the impact of new accounting pronouncements:

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures, and is not expected to have a significant impact on our financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Subtopic 718): Scope of Modification Accounting.  The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.  Under the new guidance, an entity should account for the effects of a modification unless all of the following are the same immediately before and after the change: (1) the fair value of the modified award, (2) the vesting conditions of the modified award, and (3) the classification of the modified award as either an equity or liability instrument.  ASU 2017-09 was effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively to awards modified on or after the adoption date.  The adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.  The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice.  The Update addresses eight specific cash flow issues.  For public companies, the ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively.  There has been no material impact on the Company’s consolidated financial statements due to the adoption of this standard in the first quarter of fiscal 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash.  For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  Early adoption is available beginning after December 15, 2018, including interim periods within those fiscal years. Adoption will be applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. The Company formed a working group of key personnel responsible for the allowance for loan losses estimate and initiated its evaluation of the data and systems requirements of adoption of the Update.  The group determined that purchasing third party software would be the most effective method to comply with the requirements, evaluated several outside vendors, and made a vendor recommendation that was approved by the Board.  Model validation and data testing using existing ALLL methodology have been completed. Parallel testing of the new methodology compared to the current methodology will be performed throughout fiscal year 2020 and the Company continues to evaluate the impact of adopting the new guidance.  We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, which for the Company will be the three-month period ending September 30, 2020, but cannot yet determine the overall impact of the new guidance on the Company’s consolidated financial statements, or the exact amount of any such one-time adjustment.   

In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting.  Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.   The Update was effective for the Company July 1, 2019.   Adoption of the standard allows the use of a modified retrospective transition approach for all periods presented at the time of adoption.  Based on the Company’s leases outstanding at June 30, 2019, which included four leased properties and numerous office equipment leases, the adoption of the new standard did not have a material impact on our consolidated statements of financial condition or our consolidated statements of income, although an increase to assets and liabilities occurs at the time of adoption.  In the first quarter of 2020, the Company recognized a lease liability and a corresponding right-of-use asset for all leases of approximately $500,000 based on our current leases.  Subsequent to June 30, 2019, the Company’s new leases, lease terminations, and lease modifications and renewals will impact the amount of lease liability and corresponding right-of-use asset recognized.  The Company’s leases are all currently “operating leases” as defined in the Update; therefore, no material change in the income statement presentation of lease expense is anticipated.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10).  The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 on recognition of financial assets and financial liabilities.  ASU 2016-01 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material impact on the Company’s consolidated financial statements.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606):  Deferral of the Effective Date, which deferred the effective date of ASU 2014-09.  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification.  In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606- performance obligations and the licensing implementation guidance.  Neither of the two updates changed the core principle of the guidance in Topic 606.  In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), to provide narrow-scope improvements and practical expedients to ASU 2015-14.   ASU 2014-09 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material change to our accounting for revenue because the majority of our financial instruments are not within the scope of Topic 606.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Incentive Plan (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Incentive Plan

Incentive Plan. The Company accounts for its Management and Recognition Plan (MRP) and Equity Incentive Plan (EIP) 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Bank Owned Life Insurance

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.

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NOTE 21: Quarterly Financial Data (Unaudited): Schedule of Quarterly Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
TOTAL INTEREST INCOME													$ 97,482	$ 77,174	$ 61,488
TOTAL INTEREST EXPENSE													24,700	14,791	10,366
Interest Income (Expense), Net													72,782	62,383	51,122
Provision for loan losses													2,032	3,047	2,340
TOTAL NONINTEREST INCOME													15,170	13,871	11,084
TOTAL NONINTEREST EXPENSE													49,969	44,475	38,252
Income Tax Expense (Benefit)													7,047	7,803	6,062
NET INCOME													$ 28,904	$ 20,929	$ 15,552
Quarterly Operating Data
TOTAL INTEREST INCOME	$ 24,207	$ 22,042	$ 26,047	$ 25,186	$ 19,231	$ 18,411	$ 20,147	$ 19,385	$ 15,083	$ 15,105	$ 16,345	$ 14,955
TOTAL INTEREST EXPENSE	6,139	4,875	7,054	6,632	3,528	3,308	4,245	3,710	2,510	2,529	2,804	2,523
Interest Income (Expense), Net	18,068	17,167	18,993	18,554	15,703	15,103	15,902	15,675	12,573	12,576	13,541	12,432
Provision for loan losses	314	682	545	491	642	868	987	550	656	925	383	376
TOTAL NONINTEREST INCOME	4,054	3,430	3,740	3,946	3,174	3,271	3,556	3,870	2,700	2,575	2,884	2,925
TOTAL NONINTEREST EXPENSE	12,552	11,449	12,778	13,190	10,519	10,755	11,274	11,927	8,706	9,159	10,823	9,564
Income before income taxes	9,256	8,466	9,410	8,819	7,716	6,751	7,197	7,068	5,911	5,067	5,219	5,417
Income Tax Expense (Benefit)	1,802	1,666	1,854	1,725	2,546	1,889	1,558	1,810	1,735	1,358	1,506	1,463
NET INCOME	$ 7,454	$ 6,800	$ 7,556	$ 7,094	$ 5,170	$ 4,862	$ 5,639	$ 5,258	$ 4,176	$ 3,709	$ 3,713	$ 3,954

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Note 13: Accumulated Other Comprehensive Income (AOCI): Schedule of Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Accumulated Other Comprehensive Income (Loss)

	June 30,
(dollars in thousands)	2019	2018
Net unrealized gain (loss) on securities available-for-sale	$                             1,655	$                           (3,041)
Net unrealized gain on securities available-for-sale
securities for which a portion of an other-than-temporary
impairment has been recognized in income	(1)	(1)
Unrealized loss from defined benefit pension plan	(39)	(29)
	1,615	(3,071)
Tax effect	(368)	726
Net of tax amount	$                             1,247	$                           (2,345)

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NOTE 12: Income Taxes: Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount	$ 7,550	$ 8,074	$ 7,565
Other, net	(41)	(370)	(441)
Income Tax Expense, Actual	7,047	7,803	6,062
Increase (Decrease) in Taxes
Nontaxable Municipal Income	(400)	(441)	(513)
Current State and Local Tax Expense (Benefit)	487	553	215
Cash Surrender Value Of Bank-owned Life Insurance	(279)	(266)	(397)
Tax Credit Benefits	(270)	(871)	(367)
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 0	$ 1,124	$ 0

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NOTE 11: Employee Benefits: 2017 Omnibus Incentive Plan (Policies)

12 Months Ended

Jun. 30, 2019

Policies

2017 Omnibus Incentive Plan

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, options to purchase 31,000 shares have been issued to employees, of which none have been exercised or forfeited, and 31,000 remain outstanding. As of June 30, 2019, there was $234,000 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 at June 30, 2019, was $8,000, and the no options were exercisable at June 30, 2019, at a strike price in excess of the market price. No in-the-money options were vested in fiscal 2019, and no options vested during fiscal 2018 and 2017.

Full value awards totaling 15,000 and 22,000 shares, respectively, were issued to employees and directors in fiscal 2019 and 2018. All full value awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, full value awards of 4,200 shares were vested, while no full value awards vested in fiscal 2018 or 2017. 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 five years during which the shares vest. Compensation expense for full value awards under the 2017 Plan for fiscal 2019, 2018, and 2017 was $189,000, $60,000, and $0, respectively. At June 30, 2019, unvested compensation expense related to full value awards under the 2017 Plan was approximately $1.0 million.

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Note 2: Available for Sale Securities: Schedule of Available for Sale Securities (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Available for Sale Securities

	June 30, 2019
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$                 7,284	$                        1	$                    (15)	$                 7,270
Obligations of states and political subdivisions	42,123	728	(68)	42,783
Other securities	5,176	75	(198)	5,053
TOTAL DEBT AND EQUITY SECURITIES	54,583	804	(281)	55,106
Mortgage-backed securities:
FHLMC certificates	16,373	64	(65)	16,372
GNMA certificates	35	-	-	35
FNMA certificates	34,943	610	(95)	35,458
CMOs issues by government agencies	57,946	775	(157)	58,564
TOTAL MORTGAGE-BACKED SECURITIES	109,297	1,449	(317)	110,429
TOTAL	$             163,880	$                 2,253	$                  (598)	$             165,535

	June 30, 2018
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$                 9,513	$                       -	$                  (128)	$                 9,385
Obligations of states and political subdivisions	41,862	230	(480)	41,612
Other securites	5,284	61	(193)	5,152
TOTAL DEBT AND EQUITY SECURITIES	56,659	291	(801)	56,149
Mortgage-backed securities:
FHLMC certificates	16,598	1	(486)	16,113
GNMA certificates	38	-	-	38
FNMA certificates	25,800	-	(738)	25,062
CMOs issues by government agencies	50,272	-	(1,309)	48,963
TOTAL MORTGAGE-BACKED SECURITIES	92,708	1	(2,533)	90,176
TOTAL	$             149,367	$                    292	$               (3,334)	$             146,325

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NOTE 15: Commitments and Credit Risk: Standby Letters of Credit: Letters of Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Details
Letters of Credit Outstanding, Amount	$ 2,600	$ 2,500

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NOTE 17: Acquisitions: Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Tables)

12 Months Ended

Jun. 30, 2019

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

Gideon Bancshares Company
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$                   11,271
Common stock, at fair value	10,757
Total consideration	$                   22,028
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$                     2,894
Investment securities	54,866
Loans	144,286
Premises and equipment	3,663
Identifiable intangible assets	4,125
Miscellaneous other assets	5,926
Deposits	(170,687)
FHLB Advances	(18,701)
Note Payable	(4,400)
Miscellaneous other liabilities	(956)
Total identifiable net assets	21,016
Goodwill	$                     1,012

Gideon Bancshares Company

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

Southern Missouri Bank of Marshfield
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$               3,860
Common stock, at fair value	12,955
Total consideration	$             16,815
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$               2,359
Interest bearing time deposits	1,450
Investment securities	5,557
Loans	68,258
Premises and equipment	3,409
BOLI	2,271
Identifiable intangible assets	1,345
Miscellaneous other assets	1,897
Deposits	(68,152)
FHLB Advances	(5,344)
Miscellaneous other liabilities	(681)
Total identifiable net assets	12,369
Goodwill	$               4,446

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NOTE 6: Deposits: Time Deposit Maturities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Details
July 1, 2019 to June 30, 2020	$ 467,676
July 1, 2020 to June 30, 2021	152,980
July 1, 2021 to June 30, 2022	38,045
July 1, 2022 to June 30, 2023	16,625
July 1, 2023 to June 30, 2024	3,933
Thereafter	0
TOTAL	$ 679,259

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NOTE 4: Accounting for Certain Acquired Loans: Schedule of Acquired Loans in Transfer Accretable Yield (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
Balance at beginning of period	$ 589	$ 609	$ 656
Certain Loans Acquired In Transfer Accretable Yield Additions	102	0	0
Certain Loans Acquired In Transfer Accretable Yield Accretion	(1,342)	(683)	(391)
Certain Loans Acquired In Transfer Accretable Yield Reclassification from Nonaccretable Difference	1,075	663	344
Certain Loans Acquired In Transfer Accretable Yield Disposals	(204)	0	0
Balance at end of period	$ 220	$ 589	$ 609

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NOTE 21: Quarterly Financial Data (Unaudited)

12 Months Ended

Jun. 30, 2019

Notes

NOTE 21: Quarterly Financial Data (Unaudited)

NOTE 21:  Quarterly Financial Data (Unaudited)

Quarterly operating data is summarized as follows (in thousands):

	June 30, 2019
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     22,042	$                     24,207	$                     25,186	$                     26,047
Interest expense	4,875	6,139	6,632	7,054
Net interest income	17,167	18,068	18,554	18,993
Provision for loan losses	682	314	491	545
Noninterest income	3,430	4,054	3,946	3,740
Noninterest expense	11,449	12,552	13,190	12,778
Income before income taxes	8,466	9,256	8,819	9,410
Income tax expense	1,666	1,802	1,725	1,854
NET INCOME	$                       6,800	$                       7,454	$                       7,094	$                       7,556

	June 30, 2018
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     18,411	$                     19,231	$                     19,385	$                     20,147
Interest expense	3,308	3,528	3,710	4,245
Net interest income	15,103	15,703	15,675	15,902
Provision for loan losses	868	642	550	987
Noninterest income	3,271	3,174	3,870	3,556
Noninterest expense	10,755	10,519	11,927	11,274
Income before income taxes	6,751	7,716	7,068	7,197
Income tax expense	1,889	2,546	1,810	1,558
NET INCOME	$                       4,862	$                       5,170	$                       5,258	$                       5,639

	June 30, 2017
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     15,105	$                     15,083	$                     14,955	$                     16,345
Interest expense	2,529	2,510	2,523	2,804
Net interest income	12,576	12,573	12,432	13,541
Provision for loan losses	925	656	376	383
Noninterest income	2,575	2,700	2,925	2,884
Noninterest expense	9,159	8,706	9,564	10,823
Income before income taxes	5,067	5,911	5,417	5,219
Income tax expense	1,358	1,735	1,463	1,506
NET INCOME	$                       3,709	$                       4,176	$                       3,954	$                       3,713

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Balance in the Allowance for Loan Losses and Recorded Invesetment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Loans Receivable
Financing Receivable, Credit Loss, Expense (Reversal)	$ 2,032	$ 3,047	$ 2,340
Allowance for Loan and Lease Losses, Write-offs	(389)	(406)	(663)
Accounts Receivable, Allowance for Credit Loss, Recovery	46	35	70
Loans Receivable | Beginning of Period
Allowance for Loan Losses	18,214	15,538	13,791
Loans Receivable | End of Period
Allowance for Loan Losses	19,903	18,214	15,538
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	750
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	19,903	17,464
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	1,240
Financing Receivable, Collectively Evaluated for Impairment	1,837,763	1,565,783
Financing Receivables Acquired with Deteriorated Credit Quality	28,548	14,571
Consumer Loan
Financing Receivable, Credit Loss, Expense (Reversal)	231	251	76
Allowance for Loan and Lease Losses, Write-offs	(103)	(129)	(65)
Accounts Receivable, Allowance for Credit Loss, Recovery	16	23	8
Consumer Loan | Beginning of Period
Allowance for Loan Losses	902	757	738
Consumer Loan | End of Period
Allowance for Loan Losses	1,046	902	757
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,046	902
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	97,534	78,571
Financing Receivables Acquired with Deteriorated Credit Quality	0	0
Commercial Loan
Financing Receivable, Credit Loss, Expense (Reversal)	281	691	821
Allowance for Loan and Lease Losses, Write-offs	(92)	(22)	(337)
Accounts Receivable, Allowance for Credit Loss, Recovery	2	8	31
Commercial Loan | Beginning of Period
Allowance for Loan Losses	4,196	3,519	3,004
Commercial Loan | End of Period
Allowance for Loan Losses	4,387	4,196	3,519
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	351
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,387	3,845
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	580
Financing Receivable, Collectively Evaluated for Impairment	349,681	278,241
Financing Receivables Acquired with Deteriorated Credit Quality	6,193	2,451
Construction Loan Payable
Financing Receivable, Credit Loss, Expense (Reversal)	268	142	(97)
Allowance for Loan and Lease Losses, Write-offs	0	(9)	(31)
Accounts Receivable, Allowance for Credit Loss, Recovery	0	0	1
Construction Loan Payable | Beginning of Period
Allowance for Loan Losses	1,097	964	1,091
Construction Loan Payable | End of Period
Allowance for Loan Losses	1,365	1,097	964
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	1,365	1,097
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	78,826	64,888
Financing Receivables Acquired with Deteriorated Credit Quality	1,308	1,297
Residential Real Estate
Financing Receivable, Credit Loss, Expense (Reversal)	487	184	184
Allowance for Loan and Lease Losses, Write-offs	(30)	(190)	(211)
Accounts Receivable, Allowance for Credit Loss, Recovery	23	2	10
Residential Real Estate | Beginning of Period
Allowance for Loan Losses	3,226	3,230	3,247
Residential Real Estate | End of Period
Allowance for Loan Losses	3,706	3,226	3,230
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,706	3,226
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	0
Financing Receivable, Collectively Evaluated for Impairment	490,307	447,706
Financing Receivables Acquired with Deteriorated Credit Quality	1,685	3,213
Commercial Real Estate
Financing Receivable, Credit Loss, Expense (Reversal)	765	1,779	1,356
Allowance for Loan and Lease Losses, Write-offs	(164)	(56)	(19)
Accounts Receivable, Allowance for Credit Loss, Recovery	5	2	20
Commercial Real Estate | Beginning of Period
Allowance for Loan Losses	8,793	7,068	5,711
Commercial Real Estate | End of Period
Allowance for Loan Losses	9,399	8,793	$ 7,068
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment	0	399
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	9,399	8,394
Financing Receivables Allowance for Credit Losses Acquired with Deteriorated Credit Quality	0	0
Financing Receivable, Individually Evaluated for Impairment	0	660
Financing Receivable, Collectively Evaluated for Impairment	821,415	696,377
Financing Receivables Acquired with Deteriorated Credit Quality	$ 19,362	$ 7,610

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Note 13: Accumulated Other Comprehensive Income (AOCI)

12 Months Ended

Jun. 30, 2019

Notes

Note 13: Accumulated Other Comprehensive Income (AOCI)

NOTE 13:  Accumulated Other Comprehensive Income (AOCI)

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

	June 30,
(dollars in thousands)	2019	2018
Net unrealized gain (loss) on securities available-for-sale	$                             1,655	$                           (3,041)
Net unrealized gain on securities available-for-sale
securities for which a portion of an other-than-temporary
impairment has been recognized in income	(1)	(1)
Unrealized loss from defined benefit pension plan	(39)	(29)
	1,615	(3,071)
Tax effect	(368)	726
Net of tax amount	$                             1,247	$                           (2,345)

                Amounts reclassified from AOCI and the affected line items in the statements of income during the years ended June 30, 2019 and 2018, were as follows:

	Amounts Reclassified From AOCI
(dollars in thousands)	2019	2018	Affected Line Item in the Condensed Consolidated Statements of Income
Unrealized gain on securities available-for-sale	$                                244	$                                334	Net realized gains on sale of AFS securities
Amortization of defined benefit pension items:	(10)	(44)	Compensation and benefits (included in computation of net periodic pension costs)
Total reclassified amount before tax	234	290
Tax benefit	49	81	Provision for Income Tax
Total reclassification out of AOCI	$                                185	$                                209	Net Income

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NOTE 1: Organization and Summary of Significant Accounting Policies: Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Gross Core Deposit Intangibles	$ 14,700	$ 10,600
Gross Core Deposit Intangibles Accumulated Amortization	6,900	5,200
Gross Other Identifiable Intangibles	3,800	3,800
Gross Other Identifiable Intangibles Accumulated Amortization	3,800	3,800
FHLB Mortgage Servicing Rights	$ 1,400	$ 1,500
Finite-Lived Intangible Assets, Amortization Method	using the straight line method
Core Deposit Intangible Assets Amortization Period	five to seven years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,800
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,300
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,300
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,300
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,300
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	$ 963

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Note 2: Available for Sale Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
US Government-sponsored Enterprises Debt Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 0	$ 5,957
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	58
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	6,969	3,427
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	15	70
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	6,969	9,384
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	15	128
US States and Political Subdivisions Debt Securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	14,861
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	224
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	8,531	8,526
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	68	256
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	8,531	23,387
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	68	480
Other Debt Obligations
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	982
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	10
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	985	1,109
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	198	183
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	985	2,091
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	198	193
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,175	65,863
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	1,513
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	34,148	24,187
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	316	1,020
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	35,323	90,050
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	317	2,533
Total investments and mortgage-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,175	87,663
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	1	1,805
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	50,633	37,249
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	597	1,529
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	51,808	124,912
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 598	$ 3,334

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NOTE 17: Acquisitions

12 Months Ended

Jun. 30, 2019

Notes

NOTE 17: Acquisitions

NOTE 17: Acquisitions

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.  Upon completion of the Merger, each share of Gideon common stock was converted into the right to receive $72.48 in cash, as well as 2.04 shares of Southern Missouri common stock, with cash payable in lieu of fractional Southern Missouri shares (the “Merger Consideration”).  The Company issued an aggregate of 317,225 shares of common stock for the stock portion of the Merger Consideration and paid an aggregate of approximately $11.3 million for the cash portion of the Merger Consideration.  The conversion of data systems took place on December 8, 2018. The Company acquired First Commercial primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2019, the Company incurred $858,000 of third-party acquisition-related costs with $783,000 being included in noninterest expense in the Company's consolidated statement of income for the year ended June 30, 2019, and $75,000 for the year ended June 30, 2018.

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, the purchase price for the Gideon acquisition is detailed in the following table.            

Gideon Bancshares Company
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$                   11,271
Common stock, at fair value	10,757
Total consideration	$                   22,028
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$                     2,894
Investment securities	54,866
Loans	144,286
Premises and equipment	3,663
Identifiable intangible assets	4,125
Miscellaneous other assets	5,926
Deposits	(170,687)
FHLB Advances	(18,701)
Note Payable	(4,400)
Miscellaneous other liabilities	(956)
Total identifiable net assets	21,016
Goodwill	$                     1,012

Of the total estimated purchase price of $22.0 million, $4.1 million has been allocated to core deposit intangible. Additionally, $1.0 million has been allocated to goodwill and none of the purchase price is deductible.  Goodwill is attributable to synergies and economies of scale expected from combining the operations of the Bank and First Commercial.  Total goodwill was assigned to the acquisition of First Commercial.  The core deposit intangible will be amortized over seven years on a straight line basis.

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, our assessment of the ability of the borrower to service the debt, and recent loan-to-value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to $25.5 million of purchased credit impaired loans was not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using individual analysis of each purchased credit impaired loan.

The Company acquired the $154.0 million loan portfolio at an estimated fair value discount of $9.7 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-30.

The acquired business contributed revenues of $4.1 million and earnings of $565,000 for the period from November 21, 2018 through June 30, 2019.  The following unaudited pro forma summaries present consolidated information of the Company as if the business combination had occurred on the first day of each period:

	Pro Forma
	Twelve months ended
	June 30,
	2019	2018
Revenue	$      90,954	$      84,981
Earnings	29,583	22,791

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. The conversion of data systems took place on March 17, 2018. The Company acquired SMB-Marshfield primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2018, the Company incurred $708,000 of third-party acquisition-related costs with $683,000 being included in noninterest expense in the Company's consolidated statement of income for the year ended June 30, 2018, and $25,000 in the prior year end.  The goodwill of $4.4 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Bank and SMB-Marshfield. Total goodwill was assigned to the acquisition of the bank holding company.

The following table summarizes the consideration paid for Bancshares and SMB-Marshfield, and the amounts of assets acquired and liabilities assumed recognized at the acquisition date:

Southern Missouri Bank of Marshfield
Fair Value of Consideration Transferred
(dollars in thousands)
Cash	$               3,860
Common stock, at fair value	12,955
Total consideration	$             16,815
Recognized amounts of identifiable assets acquired
and liabilities assumed
Cash and cash equivalents	$               2,359
Interest bearing time deposits	1,450
Investment securities	5,557
Loans	68,258
Premises and equipment	3,409
BOLI	2,271
Identifiable intangible assets	1,345
Miscellaneous other assets	1,897
Deposits	(68,152)
FHLB Advances	(5,344)
Miscellaneous other liabilities	(681)
Total identifiable net assets	12,369
Goodwill	$               4,446

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Note 2: Available for Sale Securities

12 Months Ended

Jun. 30, 2019

Notes

Note 2: Available for Sale Securities

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, 2019
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$                 7,284	$                        1	$                    (15)	$                 7,270
Obligations of states and political subdivisions	42,123	728	(68)	42,783
Other securities	5,176	75	(198)	5,053
TOTAL DEBT AND EQUITY SECURITIES	54,583	804	(281)	55,106
Mortgage-backed securities:
FHLMC certificates	16,373	64	(65)	16,372
GNMA certificates	35	-	-	35
FNMA certificates	34,943	610	(95)	35,458
CMOs issues by government agencies	57,946	775	(157)	58,564
TOTAL MORTGAGE-BACKED SECURITIES	109,297	1,449	(317)	110,429
TOTAL	$             163,880	$                 2,253	$                  (598)	$             165,535

	June 30, 2018
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$                 9,513	$                       -	$                  (128)	$                 9,385
Obligations of states and political subdivisions	41,862	230	(480)	41,612
Other securites	5,284	61	(193)	5,152
TOTAL DEBT AND EQUITY SECURITIES	56,659	291	(801)	56,149
Mortgage-backed securities:
FHLMC certificates	16,598	1	(486)	16,113
GNMA certificates	38	-	-	38
FNMA certificates	25,800	-	(738)	25,062
CMOs issues by government agencies	50,272	-	(1,309)	48,963
TOTAL MORTGAGE-BACKED SECURITIES	92,708	1	(2,533)	90,176
TOTAL	$             149,367	$                    292	$               (3,334)	$             146,325

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, 2019
	Amortized	Estimated
(dollars in thousands)	Cost	Fair Value
Within one year	$                 6,777	$                 6,777
After one year but less than five years	10,189	10,237
After five years but less than ten years	19,658	19,930
After ten years	17,959	18,162
Total investment securities	54,583	55,106
Mortgage-backed securities	109,297	110,429
Total investments and mortgage-backed securities	$             163,880	$             165,535

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $143.7 million and $124.2 million at June 30, 2019 and 2018, respectively.  The securities pledged consist of marketable securities, including $5.6 million and $8.4 million of U.S. Government and Federal Agency Obligations, $47.3 million and $39.8 million of Mortgage-Backed Securities, $55.7 million and $41.5 million of Collateralized Mortgage Obligations, $34.9 million and $34.2 million of State and Political Subdivisions Obligations, and $300,000 and $300,000 of Other Securities at June 30, 2019 and 2018, respectively.

Gains of $265,450 and losses of $21,576 were recognized from sales of available-for-sale securities in 2019.  Gains of $491,500 and losses of $157,105 were recognized from sales of available-for-sale securities in 2018.   

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, 2019.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2019, was $51.8 million, which is approximately 31.3% of the Company’s available for sale investment portfolio, as compared to $124.9 million or approximately 85.4% of the Company’s available for sale investment portfolio at June 30, 2018.   Except as discussed below, management believes the declines in fair value for these securities to be temporary.

The tables below show our 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 at June 30, 2019 and 2018.

	Less than 12 months		12 months or more		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2019	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$                   -	$                   -	$           6,969	$                15	$           6,969	$                15
Obligations of state and political subdivisions	-	-	8,531	68	8,531	68
Other securities	-	-	985	198	985	198
Mortgage-backed securities	1,175	1	34,148	316	35,323	317
Total investments and mortgage-backed securities	$           1,175	$                  1	$         50,633	$              597	$         51,808	$              598

	Less than 12 months		12 months or more		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2018	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$           5,957	$                58	$           3,427	$                70	$           9,384	$              128
Obligations of state and political subdivisions	14,861	224	8,526	256	23,387	480
Other securities	982	10	1,109	183	2,091	193
Mortgage-backed securities	65,863	1,513	24,187	1,020	90,050	2,533
Total investments and mortgage-backed securities	$         87,663	$           1,805	$         37,249	$           1,529	$       124,912	$           3,334

The unrealized losses on the Company’s investments in U.S. government-sponsored enterprises, mortgage-backed securities, and obligations of state and political subdivisions were caused by increases in market interest rates.  The contractual terms of these instruments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments.  Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

Other securities.  At June 30, 2019, there were two pooled trust preferred securities with an estimated fair value of $779,000 and unrealized losses of $193,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

The June 30, 2019, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.4 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

One of these two securities has continued to receive cash interest payments in full since our purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for the securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

The Company does not believe any other individual unrealized loss as of June 30, 2019, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the OTTI is identified.

Credit losses recognized on investments.  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2019 and 2018.

	Accumulated Credit Losses
	Twelve-Month Period Ended
(dollars in thousands)	June 30,
	2019	2018
Credit losses on debt securities held
Beginning of period	$                         -	$                    340
Additions related to OTTI losses not previously recognized	-	-
Reductions due to sales	-	(333)
Reductions due to change in intent or likelihood of sale	-	-
Additions related to increases in previously-recognized OTTI losses	-	-
Reductions due to increases in expected cash flows	-	(7)
End of period	$                         -	$                         -

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NOTE 1: Organization and Summary of Significant Accounting Policies: Outside Directors' Retirement (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Outside Directors' Retirement

Outside Directors’ Retirement. The Bank adopted a directors’ retirement plan in April 1994 for outside directors. The directors’ retirement plan provides that each 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, whether before or after the reorganization date.

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Intangible Assets (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Intangible Assets

Intangible Assets. The Company’s intangible assets at June 30, 2019 included gross core deposit intangibles of $14.7 million with $6.9 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.4 million. At June 30, 2018, the Company’s intangible assets included gross core deposit intangibles of $10.6 million with $5.2 million accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3.8 million, and FHLB mortgage servicing rights of $1.5 million.   The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to seven years, with amortization expense expected to be approximately $1.8 million in fiscal 2020, $1.3 million in fiscal 2021, $1.3 million in fiscal 2022, $1.3 million in fiscal 2023, $1.3 million in fiscal 2024, and $963,000 thereafter.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Transfers Between Fair Value Hierarchy Levels (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Transfers Between Fair Value Hierarchy Levels

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.

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
NET INCOME	$ 28,904	$ 20,929	$ 15,552
Other comprehensive income
Unrealized gains (losses) on securities available-for-sale	4,940	(3,314)	(1,879)
Less: reclassification adjustment for realized gains included in net income	244	334	0
Unrealized gains (losses) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income	0	(213)	57
Defined benefit pension plan net (loss) gain	(10)	(44)	13
Comprehensive Income Tax (Expense) Benefit	(1,094)	1,033	674
Total other comprehensive income (loss)	3,592	(2,872)	(1,135)
COMPREHENSIVE INCOME	$ 32,496	$ 18,057	$ 14,417

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Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Sep. 13, 2019	Dec. 31, 2018
Details
Registrant CIK	0000916907
Fiscal Year End	--06-30
Registrant Name	SOUTHERN MISSOURI BANCORP, INC.
SEC Form	10-K/A
Period End date	Jun. 30, 2019
Trading Symbol	SMBC
Trading Exchange	NASDAQ
Tax Identification Number (TIN)	43-1665523
Number of common stock shares outstanding		9,201,783
Public Float			$ 274,400
Filer Category	Accelerated Filer
Current with reporting	Yes
Interactive Data Current	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Shell Company	false
Small Business	false
Emerging Growth Company	false
Document Annual Report	true
Entity File Number	0-23406
Entity Incorporation, State or Country Code	MO
Entity Address, Address Line One	2991 Oak Grove Road
Entity Address, City or Town	Poplar Bluff
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63901
City Area Code	573
Local Phone Number	778-1800
Title of 12(b) Security	Common Stock
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Document Transition Report	false

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NOTE 12: Income Taxes: Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax

	For the year ended June 30
(dollars in thousands)	2019	2018	2017
Tax at statutory rate	$                                7,550	$                                8,074	$                                         7,565
Increase (reduction) in taxes       resulting from:
Nontaxable municipal income	(400)	(441)	(513)
State tax, net of Federal benefit	487	553	215
Cash surrender value of                   Bank-owned life insurance	(279)	(266)	(397)
Tax credit benefits	(270)	(871)	(367)
Adjustment of deferred tax asset                   for enacted changes in tax laws	-	1,124	-
Other, net	(41)	(370)	(441)
Actual provision	$                                7,047	$                                7,803	$                                         6,062

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NOTE 11: Employee Benefits: 2003 Stock Option Plans Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

2003 Stock Option Plans Policy

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 177,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 20,000 remain outstanding. 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, 2019, there was $2,000 in remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of stock options outstanding at June 30, 2019, was $457,000, and the aggregate intrinsic value of stock options exercisable at June 30, 2019, was $423,000. During fiscal 2019 no options to purchase shares were exercised. The intrinsic value of options vested in fiscal 2019, 2018, and 2017 was $35,000, $43,000, and $262,000, respectively.

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NOTE 12: Income Taxes (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($)
Details
Federal Net Operating Loss Carryforwards	$ 963
State Net Operating Loss Carryforwards	$ 1,700

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NOTE 14: Stockholders' Equity and Regulatory Capital: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Total Capital (to Risk-Weighted Assets) | Consolidated
Capital	$ 256,982	$ 222,133
Capital to Risk Weighted Assets	13.22%	13.53%
Capital Required for Capital Adequacy	$ 155,536	$ 131,335
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Total Capital (to Risk-Weighted Assets) | Southern Bank
Capital	$ 247,199	$ 214,804
Capital to Risk Weighted Assets	12.81%	13.18%
Capital Required for Capital Adequacy	$ 154,364	$ 130,337
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital Required to be Well Capitalized	$ 192,954	$ 162,921
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Tier I Capital (to Risk-Weighted Assets) | Consolidated
Capital	$ 235,768	$ 202,756
Capital to Risk Weighted Assets	12.13%	12.35%
Capital Required for Capital Adequacy	$ 116,652	$ 98,501
Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier I Capital (to Risk-Weighted Assets) | Southern Bank
Capital	$ 225,985	$ 195,427
Capital to Risk Weighted Assets	11.71%	12.00%
Capital Required for Capital Adequacy	$ 115,773	$ 97,753
Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Capital Required to be Well Capitalized	$ 154,364	$ 130,337
Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier I Capital (to Average Assets) | Consolidated
Capital	$ 235,768	$ 202,756
Capital to Risk Weighted Assets	10.81%	10.97%
Capital Required for Capital Adequacy	$ 87,231	$ 73,932
Capital Required for Capital Adequacy to Risk Weighted Assets	4.00%	4.00%
Tier I Capital (to Average Assets) | Southern Bank
Capital	$ 225,985	$ 195,427
Capital to Risk Weighted Assets	10.38%	10.60%
Capital Required for Capital Adequacy	$ 87,077	$ 73,721
Capital Required for Capital Adequacy to Risk Weighted Assets	4.00%	4.00%
Capital Required to be Well Capitalized	$ 108,846	$ 92,152
Capital Required to be Well Capitalized to Risk Weighted Assets	5.00%	5.00%
Common Equity Tier I Capital (to Risk-Weighted Assets) | Consolidated
Capital	$ 220,725	$ 188,416
Capital to Risk Weighted Assets	11.35%	11.48%
Capital Required for Capital Adequacy	$ 87,489	$ 73,876
Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Common Equity Tier I Capital (to Risk-Weighted Assets) | Southern Bank
Capital	$ 225,985	$ 195,427
Capital to Risk Weighted Assets	11.71%	12.00%
Capital Required for Capital Adequacy	$ 86,829	$ 73,315
Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Capital Required to be Well Capitalized	$ 125,420	$ 105,899
Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%

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Significant Estimates: Significant Estimates Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Significant Estimates Policy

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1.

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NOTE 16: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Earnings Per Share, Basic and Diluted

	Year Ended June 30,
(dollars in thousands except per share data)	2019	2018	2017
Net income	$                        28,904	$                        20,929	$                        15,552
Denominator for basic earnings per share -
Weighted-average shares outstanding	9,193,235	8,734,334	7,483,350
Effect of dilutive securities stock options or awards	10,674	11,188	27,530
Denominator for diluted earnings per share	9,203,909	8,745,522	7,510,880
Basic earnings per share available to common stockholders	$                            3.14	$                            2.40	$                            2.08
Diluted earnings per share available to common stockholders	$                            3.14	$                            2.39	$                            2.07

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NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
TOTAL INTEREST INCOME	$ 97,482	$ 77,174	$ 61,488
TOTAL INTEREST EXPENSE	24,700	14,791	10,366
Interest Income (Expense), Net	72,782	62,383	51,122
Income Tax Expense (Benefit)	7,047	7,803	6,062
NET INCOME	28,904	20,929	15,552
COMPREHENSIVE INCOME	32,496	18,057	14,417
Parent Company
TOTAL INTEREST INCOME	25	20	17
TOTAL INTEREST EXPENSE	1,079	887	661
Interest Income (Expense), Net	(1,054)	(867)	(644)
SEC Schedule, 12-04, Cash Dividends Paid to Registrant, Consolidated Subsidiaries	23,000	6,000	4,000
Operating Expenses	827	940	955
Income before income taxes and equity in undistributed income of the Bank	21,119	4,193	2,401
Income Tax Expense (Benefit)	358	437	455
Income before equity in undistributed income of the Bank	21,477	4,630	2,856
Equity in undistributed income of the Bank	7,427	16,299	12,696
NET INCOME	28,904	20,929	15,552
COMPREHENSIVE INCOME	$ 32,496	$ 18,057	$ 14,417

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NOTE 3: Loans and Allowance for Loan Losses: Commercial Business Lending (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Commercial Business Lending

Commercial Business Lending. The Company’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, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. 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.

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NOTE 17: Acquisitions: Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Details) - USD ($) $ in Thousands	Nov. 21, 2018	Feb. 23, 2018	Jun. 30, 2019	Jun. 30, 2018
Goodwill			$ 14,089	$ 13,078
Gideon Bancshares Company | Fair Value of Consideration Transferred
Cash	$ 11,271
Common stock acquired from acquisition, at fair value	10,757
Total consideration	22,028
Cash and cash equivalents	2,894
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Investment Securities	54,866
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Loans	144,286
Premises and equipment	3,663
Identifiable intangible assets	4,125
Miscellaneous other assets	5,926
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Deposits	(170,687)
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Federal Home Loan Bank Advances	(18,701)
Note Payable	(4,400)
Miscellaneous other liabilities	(956)
Total identifiable net assets	21,016
Goodwill	$ 1,012
Southern Missouri Bancshares, Inc | Fair Value of Consideration Transferred
Cash		$ 3,860
Common stock acquired from acquisition, at fair value		12,955
Total consideration		16,815
Cash and cash equivalents		2,359
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Investment Securities		5,557
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Loans		68,258
Premises and equipment		3,409
Identifiable intangible assets		1,345
Miscellaneous other assets		1,897
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Deposits		(68,152)
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Federal Home Loan Bank Advances		(5,344)
Miscellaneous other liabilities		(681)
Total identifiable net assets		12,369
Goodwill		4,446
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Interest-Bearing Time Deposits		1,450
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed Bank Owned Life Insurance		$ 2,271

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NOTE 1: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

New Accounting Pronouncements, Policy

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for certain removed and modified disclosures, and is not expected to have a significant impact on our financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Subtopic 718): Scope of Modification Accounting.  The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.  Under the new guidance, an entity should account for the effects of a modification unless all of the following are the same immediately before and after the change: (1) the fair value of the modified award, (2) the vesting conditions of the modified award, and (3) the classification of the modified award as either an equity or liability instrument.  ASU 2017-09 was effective for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied prospectively to awards modified on or after the adoption date.  The adoption of this guidance in the first quarter of fiscal 2019 did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.  The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice.  The Update addresses eight specific cash flow issues.  For public companies, the ASU was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively.  There has been no material impact on the Company’s consolidated financial statements due to the adoption of this standard in the first quarter of fiscal 2019.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).  The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The Update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash.  For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  Early adoption is available beginning after December 15, 2018, including interim periods within those fiscal years. Adoption will be applied on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings. The Company formed a working group of key personnel responsible for the allowance for loan losses estimate and initiated its evaluation of the data and systems requirements of adoption of the Update.  The group determined that purchasing third party software would be the most effective method to comply with the requirements, evaluated several outside vendors, and made a vendor recommendation that was approved by the Board.  Model validation and data testing using existing ALLL methodology have been completed. Parallel testing of the new methodology compared to the current methodology will be performed throughout fiscal year 2020 and the Company continues to evaluate the impact of adopting the new guidance.  We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, which for the Company will be the three-month period ending September 30, 2020, but cannot yet determine the overall impact of the new guidance on the Company’s consolidated financial statements, or the exact amount of any such one-time adjustment.   

In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting.  Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.   The Update was effective for the Company July 1, 2019.   Adoption of the standard allows the use of a modified retrospective transition approach for all periods presented at the time of adoption.  Based on the Company’s leases outstanding at June 30, 2019, which included four leased properties and numerous office equipment leases, the adoption of the new standard did not have a material impact on our consolidated statements of financial condition or our consolidated statements of income, although an increase to assets and liabilities occurs at the time of adoption.  In the first quarter of 2020, the Company recognized a lease liability and a corresponding right-of-use asset for all leases of approximately $500,000 based on our current leases.  Subsequent to June 30, 2019, the Company’s new leases, lease terminations, and lease modifications and renewals will impact the amount of lease liability and corresponding right-of-use asset recognized.  The Company’s leases are all currently “operating leases” as defined in the Update; therefore, no material change in the income statement presentation of lease expense is anticipated.

In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10).  The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 on recognition of financial assets and financial liabilities.  ASU 2016-01 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material impact on the Company’s consolidated financial statements.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606):  Deferral of the Effective Date, which deferred the effective date of ASU 2014-09.  In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification.  In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to clarify two aspects of Topic 606- performance obligations and the licensing implementation guidance.  Neither of the two updates changed the core principle of the guidance in Topic 606.  In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), to provide narrow-scope improvements and practical expedients to ASU 2015-14.   ASU 2014-09 became effective for the Company in the first quarter of fiscal 2019 and continues to have no material change to our accounting for revenue because the majority of our financial instruments are not within the scope of Topic 606.

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NOTE 3: Loans and Allowance for Loan Losses: Residential Mortgage Lending (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Residential Mortgage Lending

Residential Mortgage 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.

The Company also 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 our primary market area.  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 typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include 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.

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NOTE 18: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Impaired loans (collateral dependent)
Gains (losses) recognized on assets measured on a non-recurring basis	$ 0	$ (750)
Foreclosed and repossessed assets held for sale
Gains (losses) recognized on assets measured on a non-recurring basis	(353)	(248)
Total losses on assets measured on a non-recurring basis
Gains (losses) recognized on assets measured on a non-recurring basis	$ (353)	$ (998)

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NOTE 8: Advances from Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances Maturities (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Federal Home Loan Bank Advances Maturities

	June 30, 2019
FHLB Advance Maturities	(dollars in thousands)
July 1, 2019 to June 30, 2020	$                               2,934
July 1, 2020 to June 30, 2021	12,391
July 1, 2021 to June 30, 2022	21,204
July 1, 2022 to June 30, 2023	-
July 1, 2023 to June 30, 2024	8,000
July 1, 2024 to thereafter	379
TOTAL	$                             44,908

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NOTE 11: Employee Benefits: 2003 Stock Option Plans Policy: Stock Option Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
Stock Option Plan Description	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 177,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 20,000 remain outstanding. 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.
Stock Option Plan Unrecognized Compensation Expense Related to Nonvested Stock Options	$ 2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	457
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	423
Stock Option Plan Intrinsic Value of Options Vested	$ 35	$ 43	$ 262

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Financing Receivables, Non Accrual Status

	June 30,
(dollars in thousands	2019	2018
Residential real estate	$              6,404	$              5,913
Construction real estate	-	25
Commercial real estate	10,876	1,962
Consumer loans	309	209
Commercial loans	3,424	1,063
Total loans	$            21,013	$              9,172

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NOTE 3: Loans and Allowance for Loan Losses: Financing Receivable Credit Quality Indicators (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Financing Receivable Credit Quality Indicators

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2019	Real Estate	Real Estate	Real Estate	Consumer	Commercial
Pass	$          482,869	$            80,134	$          802,479	$            97,012	$          341,069
Watch	1,236	-	21,693	170	7,802
Special Mention	103	-	3,463	26	-
Substandard	7,784	-	13,142	291	7,003
Doubtful	-	-	-	35	-
Total	$          491,992	$            80,134	$          840,777	$            97,534	$          355,874

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2018	Real Estate	Real Estate	Real Estate	Consumer	Commercial
Pass	$          443,916	$            66,160	$          691,188	$            78,377	$          277,568
Watch	1,566	-	7,004	111	374
Special Mention	75	-	926	27	69
Substandard	5,362	25	4,869	56	2,079
Doubtful	-	-	660	-	1,182
Total	$          450,919	$            66,185	$          704,647	$            78,571	$          281,272

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Note 10: Subordinated Debt (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2014	Oct. 31, 2013	Jun. 30, 2019
Ozarks Legacy Community Financial, Inc.
Assumed floating rate junior subordinated debt securities		$ 3,100
Ozarks Legacy Community Financial, Inc. | Reported Value Measurement
Assumed floating rate junior subordinated debt securities			$ 2,600
Peoples Service Company, Inc.
Assumed floating rate junior subordinated debt securities	$ 6,500
Peoples Service Company, Inc. | Reported Value Measurement
Assumed floating rate junior subordinated debt securities			$ 5,200

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NOTE 6: Deposits: Deposit Liabilities, Type (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Deposit Liabilities, Type

	June 30,
(dollars in thousands)	2019	2018
Non-interest bearing accounts	$                         218,889	$                         203,517
NOW accounts	639,219	569,005
Money market deposit accounts	188,355	116,389
Savings accounts	167,973	157,540
TOTAL NON-MATURITY DEPOSITS	1,214,436	1,046,451
Certificates
0.00-.99%	2,447	77,958
1.00-1.99%	221,409	356,172
2.00-2.99%	398,931	98,842
3.00-3.99%	56,310	479
4.00-4.99%	162	-
TOTAL CERTIFICATES	679,259	533,451
TOTAL DEPOSITS	$                      1,893,695	$                      1,579,902

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Financial Asset, 30 to 59 Days Past Due | Loans Receivable
Financing Receivable Recorded Investment	$ 1,075	$ 2,493
Financial Asset, 30 to 59 Days Past Due | Consumer Loan
Financing Receivable Recorded Investment	128	510
Financial Asset, 30 to 59 Days Past Due | Commercial Loan
Financing Receivable Recorded Investment	424	134
Financial Asset, 30 to 59 Days Past Due | Construction Loan Payable
Financing Receivable Recorded Investment	0	0
Financial Asset, 30 to 59 Days Past Due | Residential Real Estate
Financing Receivable Recorded Investment	227	749
Financial Asset, 30 to 59 Days Past Due | Commercial Real Estate
Financing Receivable Recorded Investment	296	1,100
Financial Asset, 60 to 89 Days Past Due | Loans Receivable
Financing Receivable Recorded Investment	1,126	497
Financial Asset, 60 to 89 Days Past Due | Consumer Loan
Financing Receivable Recorded Investment	46	33
Financial Asset, 60 to 89 Days Past Due | Commercial Loan
Financing Receivable Recorded Investment	25	90
Financial Asset, 60 to 89 Days Past Due | Construction Loan Payable
Financing Receivable Recorded Investment	0	0
Financial Asset, 60 to 89 Days Past Due | Residential Real Estate
Financing Receivable Recorded Investment	1,054	84
Financial Asset, 60 to 89 Days Past Due | Commercial Real Estate
Financing Receivable Recorded Investment	1	290
Financial Asset, Equal to or Greater than 90 Days Past Due | Loans Receivable
Financing Receivable Recorded Investment	9,409	6,426
Financial Asset, Equal to or Greater than 90 Days Past Due | Consumer Loan
Financing Receivable Recorded Investment	176	146
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Loan
Financing Receivable Recorded Investment	1,902	707
Financial Asset, Equal to or Greater than 90 Days Past Due | Construction Loan Payable
Financing Receivable Recorded Investment	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due | Residential Real Estate
Financing Receivable Recorded Investment	1,714	4,089
Financial Asset, Equal to or Greater than 90 Days Past Due | Commercial Real Estate
Financing Receivable Recorded Investment	5,617	1,484
Nonperforming Financial Instruments | Loans Receivable
Financing Receivable Recorded Investment	11,610	9,416
Nonperforming Financial Instruments | Consumer Loan
Financing Receivable Recorded Investment	350	689
Nonperforming Financial Instruments | Commercial Loan
Financing Receivable Recorded Investment	2,351	931
Nonperforming Financial Instruments | Construction Loan Payable
Financing Receivable Recorded Investment	0	0
Nonperforming Financial Instruments | Residential Real Estate
Financing Receivable Recorded Investment	2,995	4,922
Nonperforming Financial Instruments | Commercial Real Estate
Financing Receivable Recorded Investment	5,914	2,874
Financing Receivables Current | Loans Receivable
Financing Receivable Recorded Investment	1,854,701	1,572,178
Financing Receivables Current | Consumer Loan
Financing Receivable Recorded Investment	97,184	77,882
Financing Receivables Current | Commercial Loan
Financing Receivable Recorded Investment	353,523	280,341
Financing Receivables Current | Construction Loan Payable
Financing Receivable Recorded Investment	80,134	66,185
Financing Receivables Current | Residential Real Estate
Financing Receivable Recorded Investment	488,997	445,997
Financing Receivables Current | Commercial Real Estate
Financing Receivable Recorded Investment	834,863	701,773
Performing Financial Instruments | Loans Receivable
Financing Receivable Recorded Investment	1,866,311	1,581,594
Performing Financial Instruments | Consumer Loan
Financing Receivable Recorded Investment	97,534	78,571
Performing Financial Instruments | Commercial Loan
Financing Receivable Recorded Investment	355,874	281,272
Performing Financial Instruments | Construction Loan Payable
Financing Receivable Recorded Investment	80,134	66,185
Performing Financial Instruments | Residential Real Estate
Financing Receivable Recorded Investment	491,992	450,919
Performing Financial Instruments | Commercial Real Estate
Financing Receivable Recorded Investment	840,777	704,647
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Loans Receivable
Financing Receivable Recorded Investment	0	0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Consumer Loan
Financing Receivable Recorded Investment	0	0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Commercial Loan
Financing Receivable Recorded Investment	0	0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Construction Loan Payable
Financing Receivable Recorded Investment	0	0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Residential Real Estate
Financing Receivable Recorded Investment	0	0
Financing Receivables Greater than 90 Days Past Due and Still Accruing | Commercial Real Estate
Financing Receivable Recorded Investment	$ 0	$ 0

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NOTE 5: Premises and Equipment

12 Months Ended

Jun. 30, 2019

Notes

NOTE 5: Premises and Equipment

NOTE 5:  Premises and Equipment

                Following is a summary of premises and equipment:

	June 30,
(dollars in thousands)	2019	2018
Land	$                              12,414	$                              12,152
Buildings and improvements	54,304	46,802
Construction in progress	466	4
Furniture, fixtures, equipment and software	16,514	13,680
Automobiles	107	81
	83,805	72,719
Less accumulated depreciation	21,078	17,887
	$                              62,727	$                              54,832

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Note 9: Note Payable

12 Months Ended

Jun. 30, 2019

Notes

Note 9: Note Payable

NOTE 9:  Note Payable

                In June 2017, the Company entered into a revolving, reducing line of credit with a five-year term, initially providing available credit of $15.0 million. The line of credit bears interest at a floating rate based on LIBOR, which is due and payable monthly, and is secured by the stock of the Bank. Available credit under the line is reduced by $3.0 million on each anniversary date of the line of credit.  The balance outstanding under the line was $3.0 million at June 30, 2019 and 2018, and the total available credit under the line was $9.0 million and $12.0 million, respectively, with remaining available capacity of $6.0 million and $9.0 million, respectively, at June 30, 2019 and 2018.  The proceeds from this line of credit were used, in part, to fund the cash portion of the Tammcorp merger. 

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Total Loans
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 21,013	$ 9,172
Consumer Loan
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	309	209
Commercial Loan
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	3,424	1,063
Construction Loan Payable
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	0	25
Residential Real Estate
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	6,404	5,913
Commercial Real Estate
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest	$ 10,876	$ 1,962

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NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Statements of Income (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Parent Company Condensed Statements of Income

	Year ended June 30,
(dollars in thousands)	2019	2018	2017
Condensed Statements of Income
Interest income	$                      25	$                      20	$                      17
Interest expense	1,079	887	661
Net interest expense	(1,054)	(867)	(644)
Dividends from Bank	23,000	6,000	4,000
Operating expenses	827	940	955
Income before income taxes and
equity in undistributed income of the Bank	21,119	4,193	2,401
Income tax benefit	358	437	455
Income before equity in undistributed
income of the Bank	21,477	4,630	2,856
Equity in undistributed income of the Bank	7,427	16,299	12,696
NET INCOME	$               28,904	$               20,929	$               15,552
COMPREHENSIVE INCOME	$               32,496	$               18,057	$               14,417

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NOTE 1: Organization and Summary of Significant Accounting Policies: Marketable Securities, Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Marketable Securities, Policy

Available for Sale Securities. Available for sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as available for sale.

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.

The Company does not invest in collateralized mortgage obligations that are considered high risk.

When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an OTTI of a debt security in earnings and the remaining portion in other comprehensive income.  As a result of this guidance, the Company’s consolidated balance sheet for the dates presented reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities 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. 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Principles of Consolidation (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Principles of Consolidation

Principles of Consolidation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated.

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NOTE 18: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis

(dollars in thousands)	2019	2018
Impaired loans (collateral dependent)	$                             -	$                        (750)
Foreclosed and repossessed assets held for sale	(353)	(248)
Total losses on assets measured on a non-recurring basis	$                        (353)	$                        (998)

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NOTE 1: Organization and Summary of Significant Accounting Policies: Premises and Equipment (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Premises and Equipment

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 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 and accelerated methods 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Details
Interest-bearing Deposits in Banks and Other Financial Institutions	$ 6,900	$ 3,400

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NOTE 15: Commitments and Credit Risk

12 Months Ended

Jun. 30, 2019

Notes

NOTE 15: Commitments and Credit Risk

NOTE 15:  Commitments and Credit Risk

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 $2.6 million at June 30, 2019, and $2.5 million at June 30, 2018, with terms ranging from 12 to 24 months. At June 30, 2019, 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 $317.4 million in commitments to extend credit at June 30, 2019, and $266.8 million at June 30, 2018.

At June 30, 2019, total commitments to originate fixed-rate loans with terms in excess of one year were $42.6 million at rates ranging from 3.35% to 15.00%, with a weighted-average rate of 5.43%. 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 $517.3 million at June 30, 2019, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area. 

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Note 2: Available for Sale Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Details
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 6,777
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	6,777
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	10,189
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	10,237
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	19,658
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	19,930
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost	17,959
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	18,162
Debt and equity securities amortized cost	54,583
Debt and equity securities fair value	55,106
Mortgage-backed securities GSE residential amortized cost	109,297
Mortgage-backed securities GSE residential fair value	110,429
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost	163,880
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value	$ 165,535

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Note 2: Available for Sale Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses	$ 0	$ 0
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Securities Sold	0	(333)
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Change in Status	0	0
Other than temporary impairment credit losses additions related to increases in previously recognized losses	0	0
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows	0	(7)
Beginning of Period
Credit Losses on Debt Securities Held	0	340
Credit Losses on Debt Securities Held	0	340
End of Period
Credit Losses on Debt Securities Held	0	0
Credit Losses on Debt Securities Held	$ 0	$ 0

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Significant Estimates

12 Months Ended

Jun. 30, 2019

Notes

Significant Estimates

NOTE 19:  Significant Estimates

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1.

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NOTE 7: Securities Sold Under Agreements to Repurchase: Balance and Interest Rate Information on the Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Securities Sold Under Agreements to Repurchase Year-End Balance	$ 4,376	$ 3,267
Securities Sold Under Agreements to Repurchase Average Balance During Year	3,988	5,373
Securities Sold Under Agreements to Repurchase Maximum Month-End Balance During Year	$ 4,703	$ 9,902
Securities Sold Under Agreements to Repurchase Average Interest Rate During Year	0.90%	0.70%
Securities Sold Under Agreements to Repurchase Year-End Interest Rate	0.93%	0.86%

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NOTE 6: Deposits: Deposit Liabilities, Type (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Noninterest-bearing Deposit Liabilities	$ 218,889	$ 203,517
Deposits, Negotiable Order of Withdrawal (NOW)	639,219	569,005
Deposits, Money Market Deposits	188,355	116,389
Deposits, Savings Deposits	167,973	157,540
Total Non-Maturity Deposits	1,214,436	1,046,451
Certificates of Deposit, at Carrying Value	679,259	533,451
Deposits (Note 6)	$ 1,893,695	$ 1,579,902
0.00-.99%
Certificates of Deposit	2,447	77,958
1.00-1.99%
Certificates of Deposit	221,409	356,172
2.00-2.99%
Certificates of Deposit	398,931	98,842
3.00-3.99%
Certificates of Deposit	56,310	479
4.00-4.99%
Certificates of Deposit	162	-

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Related Party Transactions	$ 8,995	$ 8,320
Additions	7,238	6,543
Repayments	(7,134)	(5,868)
Change in related party	33	0
Related Party Transactions	$ 9,132	$ 8,995

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NOTE 11: Employee Benefits: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

			Options Exercisable
	Options Outstanding
Weighted
Average		Weighted		Weighted
Remaining		Average		Average
Contractual	Number	Exercise	Number	Exercise
Life	Outstanding	Price	Exercisable	Price
6.5 mo.	10,000	6.38	10,000	6.38
62.3 mo.	10,000	17.55	8,000	17.55
102.6 mo.	13,500	37.31	2,700	37.31
114.3 mo.	17,500	34.35	-	-

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NOTE 11: Employee Benefits: Management Recognition Plan (MRP) Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Management Recognition Plan (MRP) Policy

Management Recognition Plans (MRPs). The Bank adopted an MRP for the benefit of non-employee directors and two MRPs for officers and key employees (who may also be directors) in April 1994. During fiscal 2012, the Bank granted 6,072 MRP shares (split-adjusted) to employees. The shares granted were in the form of restricted stock vested at the rate of 20% of such shares per year. For fiscal 2017, there were 1,214 shares vested; no shares vested in fiscal 2019 or 2018. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, was recognized pro-rata over the five years during which the shares vest. The MRP expense for fiscal 2017 was $13,000; there was no expense attributable to the plan in fiscal 2019 or 2018. At June 30, 2019, there was no unvested compensation expense related to the MRP, and no shares remained available for award.

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NOTE 11: Employee Benefits: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	12 Months Ended
	Jun. 30, 2019 $ / shares	Jun. 30, 2018 $ / shares	Jun. 30, 2017 $ / shares
Details
Fair Value Assumptions, Expected Dividend Yield	1.51%	1.18%	0.00%
Fair Value Assumptions Expected Volatility Rate	20.39%	20.42%	0.00%
Fair Value Assumptions Risk Free Interest Rate	2.67%	2.54%	0.00%
Fair value assumptions weighted-average expected life (years)	10.00	10.00	0
Fair value assumptions weighted-average fair value of options granted during the year	$ 8.78	$ 10.14	$ 0

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Note 13: Accumulated Other Comprehensive Income (AOCI): Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Details
Other comprehensive income unrealized gain (loss) securities available for sale, net	$ 1,655	$ (3,041)
Net unrealized gain (loss) on securities available for sale for which a portion of an other than tempoorary impairment has been recognized in income	(1)	(1)
Other comprehensive income defined benefit pension plan unrealized gain	(39)	(29)
Accumulated Other Comprehensive Income (Loss) Gross	1,615	(3,071)
Accumulated Other Comprehensive Income (Loss) Tax Effect	(368)	726
Accumulated other comprehensive income (loss)	$ 1,247	$ (2,345)

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NOTE 14: Stockholders' Equity and Regulatory Capital: Stockholders Equity and Regulatory Capital Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Stockholders Equity and Regulatory Capital Policy

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 condensed 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). Management believes, as of June 30, 2019 and 2018, that the Company and the Bank met all capital adequacy requirements to which they are subject.

In July 2013, the Federal banking agencies announced their approval of the final rule to implement the Basel III regulatory reforms, among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The approved rule included a new minimum ratio of common equity Tier 1 (CET1) capital of 4.5%, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, and included a minimum leverage ratio of 4.0% for all banking institutions. Additionally, the rule created a capital conservation buffer of 2.5% of risk-weighted assets, and prohibited banking organizations from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative, if the capital conservation buffer is not maintained. This new capital conservation buffer requirement is has been phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until being fully implemented in January 2019.  The enhanced capital requirements for banking organizations such as the Company and the Bank began January 1, 2015. Other changes included revised risk-weighting of some assets, stricter limitations on mortgage servicing assets and deferred tax assets, and replacement of the ratings-based approach to risk weight securities.

As of June 30, 2019, 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.

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Note 13: Accumulated Other Comprehensive Income (AOCI): Reclassification out of Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Reclassification out of Accumulated Other Comprehensive Income

	Amounts Reclassified From AOCI
(dollars in thousands)	2019	2018	Affected Line Item in the Condensed Consolidated Statements of Income
Unrealized gain on securities available-for-sale	$                                244	$                                334	Net realized gains on sale of AFS securities
Amortization of defined benefit pension items:	(10)	(44)	Compensation and benefits (included in computation of net periodic pension costs)
Total reclassified amount before tax	234	290
Tax benefit	49	81	Provision for Income Tax
Total reclassification out of AOCI	$                                185	$                                209	Net Income

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NOTE 17: Acquisitions: Business Acquisition, Pro Forma Information (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Business Acquisition, Pro Forma Information

	Pro Forma
	Twelve months ended
	June 30,
	2019	2018
Revenue	$      90,954	$      84,981
Earnings	29,583	22,791

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Note 2: Available for Sale Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Contractual Obligation, Fiscal Year Maturity Schedule

	June 30, 2019
	Amortized	Estimated
(dollars in thousands)	Cost	Fair Value
Within one year	$                 6,777	$                 6,777
After one year but less than five years	10,189	10,237
After five years but less than ten years	19,658	19,930
After ten years	17,959	18,162
Total investment securities	54,583	55,106
Mortgage-backed securities	109,297	110,429
Total investments and mortgage-backed securities	$             163,880	$             165,535

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NOTE 15: Commitments and Credit Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Unused Commitments to Extend Credit	$ 317,400	$ 266,800
Loans and Leases Receivable, Commitments, Fixed Rates	$ 42,600
Minimum
Commitments to Originate Fixed Rate Loans Rates	3.35%
Maximum
Commitments to Originate Fixed Rate Loans Rates	15.00%

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NOTE 1: Organization and Summary of Significant Accounting Policies: Earnings Per Share (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Earnings Per Share

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) outstanding during each year.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Income Taxes (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Income Taxes

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 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 subsidiary.

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Cash Flows From Operating Activities:
NET INCOME	$ 28,904	$ 20,929	$ 15,552
Items not requiring (providing) cash:
Depreciation	3,402	3,119	2,982
Gain Loss on Disposal of Fixed Assets	29	(206)	332
Stock Option and Stock Grant Expense	374	230	510
(Gain) loss on sale/write-down of REO	267	(45)	324
Amortization of intangible assets	1,672	1,457	911
Amortization of Purchase Accounting Adjustments	(2,886)	(1,694)	(1,116)
Increase in cash surrender value of bank owned life insurance (BOLI)	(1,329)	(947)	(1,135)
Provision for loan losses	2,032	3,047	2,340
Net Realized Gains on Sale of Available for Sale Securities	(244)	(334)	0
Net amortization of premiums and discounts on securities	846	994	1,034
Originations of loans held for sale	(30,768)	(29,749)	(33,059)
Proceeds from sales of loans held for sale	30,633	29,410	33,656
Gain on Sales of Loans Held for Sale	(771)	(804)	(840)
Changes In:
Accrued interest receivable	(459)	(797)	(314)
Prepaid expenses and other assets	56	7,852	2,717
Accounts payable and other liabilities	5,973	(309)	622
Deferred income taxes	75	(1,774)	964
Accrued interest payable	795	265	138
NET CASH PROVIDED BY OPERATING ACTIVITIES	38,601	30,644	25,618
Cash flows from investing activities:
Net increase in loans	(139,056)	(99,510)	(112,372)
Net change in interest-bearing deposits	983	249	723
Proceeds from maturities of available for sale securities	29,971	24,981	22,544
Proceeds from sales of available for sale securities	40,985	18,198	0
Net redemptions (purchases) of Federal Home Loan Bank stock	1,489	(1,756)	2,462
Net purchases of Federal Reserve Bank of St. Louis stock	(785)	(1,209)	(14)
Purchases of available-for-sale securities	(31,207)	(44,051)	(31,490)
Purchases of premises and equipment	(7,696)	(2,138)	(3,034)
Net Cash Paid for Acquisitions	(8,377)	(1,501)	(1,736)
Investments in state & federal tax credits	(2,192)	(5,086)	(1,897)
Proceeds from sale of fixed assets	32	1,970	15
Proceeds from sale of foreclosed assets	2,317	1,374	835
Proceeds from BOLI claim	544	0	848
Net cash used in investing activities	(112,992)	(108,479)	(123,116)
Cash flows from financing activities:
Net increase in demand deposits and savings accounts	40,664	82,567	115,340
Net increase (decrease) in certificates of deposits	102,551	(26,392)	52,939
Net increase (decrease) in securities sold under agreements to repurchase	1,109	(6,945)	(16,873)
Proceeds from Federal Home Loan Bank advances	591,500	1,518,930	1,350,565
Repayments of Federal Home Loan Bank advances	(642,030)	(1,491,130)	(1,416,815)
Proceeds from issuance of long term debt	0	0	15,000
Repayments of long term debt	(4,400)	0	(15,650)
Common Stock Issued	0	0	24,144
Exercise of stock options	0	172	61
Purchase of Treasury Stock	(1,166)	0	0
Dividends paid on common stock	(4,763)	(3,827)	(2,981)
Net cash provided by financing activities	83,465	73,375	105,730
Increase (decrease) in cash and cash equivalents	9,074	(4,460)	8,232
Cash and cash equivalents at beginning of period	26,326	30,786	22,554
Cash and cash equivalents at end of period	35,400	26,326	30,786
Noncash investing and financing activities:
Conversion of Loans to Foreclosed Real Estate	2,134	1,905	890
Conversion of foreclosed real estate to loans	51	112	128
Conversion of Loans to Repossessed Assets	66	54	130
Fair value of assets acquired	216,772	90,992	193,297
Common Stock Issued Expense	10,757	12,955	10,965
Cash Paid for Capital Stock	11,271	3,860	11,109
Liabilities assumed	194,744	74,177	171,223
Cash Paid During the Period For:
Interest (net of interest credited)	4,325	3,021	3,132
Income taxes	$ 2,856	$ 1,589	$ 3,132

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Consolidated Balance Sheets - Parenthetical - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Details
Loans and Leases Receivable, Allowance	$ 19,903	$ 18,214
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	25,000,000	12,000,000
Common Stock, Shares, Issued	9,324,659	8,996,584
Treasury Stock, Shares	35,351	0

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Related Party Transactions (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Related Party Transactions

	June 30,
(dollars in thousands)	2019	2018
Beginning Balance	$              8,995	$              8,320
Additions	7,238	6,543
Repayments	(7,134)	(5,868)
Change in related party	33	-
Ending Balance	$              9,132	$              8,995

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NOTE 11: Employee Benefits: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Options outstanding at beginning of year
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 22.18	$ 9.35	$ 8.74
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	33,500	44,000	54,000
Options Granted
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 34.35	$ 37.31	$ 0
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	17,500	13,500	0
Options Exercised
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 0	$ 7.18	$ 6.08
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	0	(24,000)	(10,000)
Options Forfeited
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 0	$ 0	$ 0
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	0	0	0
Options outstanding at year-end
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 26.35	$ 22.18	$ 9.35
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	51,000	33,500	44,000
Options exercisable at year-end
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased	$ 14.73	$ 10.57	$ 8.06
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding	20,700	16,000	38,000

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NOTE 11: Employee Benefits: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

	2019	2018	2017
Assumptions:
Expected dividend yield	1.51%	1.18%	-
Expected volatility	20.39%	20.42%	-
Risk-free interest rate	2.67%	2.54%	-
Weighted-average expected life (years)	10.00	10.00	-
Weighted-average fair value of       options granted during the year	$                 8.78	$               10.14	-

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NOTE 7: Securities Sold Under Agreements to Repurchase: Balance and Interest Rate Information on the Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Balance and Interest Rate Information on the Securities Sold Under Agreements to Repurchase

	June 30,
(dollars in thousands)	2019	2018
Year-end balance	$                       4,376	$                       3,267
Average balance during the year	3,988	5,373
Maximum month-end balance during the year	4,703	9,902
Average interest during the year	0.90%	0.70%
Year-end interest rate	0.93%	0.86%

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NOTE 11: Employee Benefits: Management Recognition Plan (MRP) Policy: Management Recognition Plan (MRP) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2012
Details
Management Recognition Plan (MRP) Description	The Bank adopted an MRP for the benefit of non-employee directors and two MRPs for officers and key employees (who may also be directors) in April 1994
Management Recognition Plan (MRP) Shares Granted to Employees				6,072
Management Recognition Plan (MRP) Shares Description of Shares Granted to Employees	The shares granted were in the form of restricted stock vested at the rate of 20% of such shares per year
Management Recognition Plan (MRP) Expense	$ 0	$ 0	$ 13

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Impaired Loans (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Impaired Loans

(dollars in thousands)	Recorded	Unpaid Principal	Specific
June 30, 2019	Balance	Balance	Allowance
Loans without a specific valuation allowance:
Residential real estate	$              5,104	$              5,341	$                      -
Construction real estate	1,330	1,419	-
Commercial real estate	26,410	31,717	-
Consumer loans	8	8	-
Commercial loans	6,999	9,187	-
Loans with a specific valuation allowance:
Residential real estate	$                      -	$                      -	$                      -
Construction real estate	-	-	-
Commercial real estate	-	-	-
Consumer loans	-	-	-
Commercial loans	-	-	-
Total:
Residential real estate	$              5,104	$              5,341	$                      -
Construction real estate	$              1,330	$              1,419	$                      -
Commercial real estate	$            26,410	$            31,717	$                      -
Consumer loans	$                     8	$                     8	$                      -
Commercial loans	$              6,999	$              9,187	$                      -

(dollars in thousands)	Recorded	Unpaid Principal	Specific
June 30, 2018	Balance	Balance	Allowance
Loans without a specific valuation allowance:
Residential real estate	$              3,820	$              4,468	$                      -
Construction real estate	1,321	1,569	-
Commercial real estate	14,052	15,351	-
Consumer loans	25	25	-
Commercial loans	2,787	3,409	-
Loans with a specific valuation allowance:
Residential real estate	$                      -	$                      -	$                      -
Construction real estate	-	-	-
Commercial real estate	660	660	399
Consumer loans	-	-	-
Commercial loans	580	580	351
Total:
Residential real estate	$              3,820	$              4,468	$                      -
Construction real estate	$              1,321	$              1,569	$                      -
Commercial real estate	$            14,712	$            16,011	$                 399
Consumer loans	$                   25	$                   25	$                      -
Commercial loans	$              3,367	$              3,989	$                 351

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Accounts, Notes, Loans and Financing Receivable

(dollars in thousands)	June 30, 2019	June 30, 2018
Real Estate Loans:
Residential	$             491,992	$             450,919
Construction	123,287	112,718
Commercial	840,777	704,647
Consumer loans	97,534	78,571
Commercial loans	355,874	281,272
	1,909,464	1,628,127
Loans in process	(43,153)	(46,533)
Deferred loan fees, net	(3)	-
Allowance for loan losses	(19,903)	(18,214)
Total loans	$          1,846,405	$          1,563,380

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NOTE 8: Advances from Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances Maturities (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Details
July 1, 2019 to June 30, 2020	$ 2,934
July 1, 2020 to June 30, 2021	12,391
July 1, 2021 to June 30, 2022	21,204
July 1, 2022 to June 30, 2023	0
July 1, 2023 to June 30, 2024	8,000
July 1, 2024 to thereafter	379
Federal Home Loan Bank Advances	$ 44,908

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NOTE 4: Accounting for Certain Acquired Loans: Schedule of Acquired Loans in Transfer Accretable Yield (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Acquired Loans in Transfer Accretable Yield

	June 30,
(dollars in thousands)	2019	2018	2017
Balance at beginning of period	$                 589	$                 609	$                 656
Additions	102	-	-
Accretion	(1,342)	(683)	(391)
Reclassification from nonaccretable difference	1,075	663	344
Disposals	(204)	-	-
Balance at end of period	$                 220	$                 589	$                 609

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NOTE 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
US Government-sponsored Enterprises Debt Securities
Fair value on a recurring basis	$ 7,270	$ 9,385
US States and Political Subdivisions Debt Securities
Fair value on a recurring basis	42,783	41,612
Other Debt Obligations
Fair value on a recurring basis	5,053	5,152
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Fair value on a recurring basis	$ 110,429	$ 90,176

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Note 2: Available for Sale Securities: Other Securities Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Other Securities Policy

Other securities.  At June 30, 2019, there were two pooled trust preferred securities with an estimated fair value of $779,000 and unrealized losses of $193,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities.

The June 30, 2019, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.4 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years.

One of these two securities has continued to receive cash interest payments in full since our purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. Our cash flow analysis indicates that cash interest payments are expected to continue for the securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2019.

The Company does not believe any other individual unrealized loss as of June 30, 2019, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the OTTI is identified.

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NOTE 3: Loans and Allowance for Loan Losses: Construction Lending (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Construction Lending

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company 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-operated or non-owner occupied commercial real estate.  During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate.

While the Company typically utilizes maturity periods ranging from 6 to 12 months 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. The Company’s average term of construction loans is approximately eight months. 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 allow the Company opportunity to assess risk. At June 30, 2019, construction loans outstanding included 59 loans, totaling $27.2 million, for which a modification had been agreed to. At June 30, 2018, construction loans outstanding included 72 loans, totaling $12.5 million, for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs.

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NOTE 18: Fair Value Measurements: Schedule of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Letter of Credit
Financial Instruments Owned Carrying Amount	$ 0	$ 0
Line of Credit
Financial Instruments Owned Carrying Amount	0	0
Financial Assets | Cash and Cash Equivalents
Financial Instruments Owned Carrying Amount	35,400	26,326
Financial Assets | Interest-bearing time deposits
Financial Instruments Owned Carrying Amount	969	1,953
Financial Assets | Investment in Federal Home Loan Bank Stock
Financial Instruments Owned Carrying Amount	5,233	5,661
Financial Assets | Stock in Federal Reserve Bank of St. Louis
Financial Instruments Owned Carrying Amount	4,350	3,566
Financial Assets | Loans Receivable
Financial Instruments Owned Carrying Amount	1,846,405	1,563,380
Financial Assets | Accrued interest receivable
Financial Instruments Owned Carrying Amount	10,189	7,992
Financial Liabilities | Deposits
Financial Instruments Owned Carrying Amount	1,893,695	1,579,902
Financial Liabilities | Securities Sold under Agreements to Repurchase
Financial Instruments Owned Carrying Amount	4,376	3,267
Financial Liabilities | Federal Home Loan Bank Advances
Financial Instruments Owned Carrying Amount	44,908	76,652
Financial Liabilities | Note payable
Financial Instruments Owned Carrying Amount	3,000	3,000
Financial Liabilities | Subordinated Debt
Financial Instruments Owned Carrying Amount	15,043	14,945
Financial Liabilities | Accrued interest payable
Financial Instruments Owned Carrying Amount	2,099	1,206
Commitments to Extend Credit
Financial Instruments Owned Carrying Amount	$ 0	$ 0

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NOTE 21: Quarterly Financial Data (Unaudited): Schedule of Quarterly Financial Information (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Quarterly Financial Information

	June 30, 2019
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     22,042	$                     24,207	$                     25,186	$                     26,047
Interest expense	4,875	6,139	6,632	7,054
Net interest income	17,167	18,068	18,554	18,993
Provision for loan losses	682	314	491	545
Noninterest income	3,430	4,054	3,946	3,740
Noninterest expense	11,449	12,552	13,190	12,778
Income before income taxes	8,466	9,256	8,819	9,410
Income tax expense	1,666	1,802	1,725	1,854
NET INCOME	$                       6,800	$                       7,454	$                       7,094	$                       7,556

	June 30, 2018
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     18,411	$                     19,231	$                     19,385	$                     20,147
Interest expense	3,308	3,528	3,710	4,245
Net interest income	15,103	15,703	15,675	15,902
Provision for loan losses	868	642	550	987
Noninterest income	3,271	3,174	3,870	3,556
Noninterest expense	10,755	10,519	11,927	11,274
Income before income taxes	6,751	7,716	7,068	7,197
Income tax expense	1,889	2,546	1,810	1,558
NET INCOME	$                       4,862	$                       5,170	$                       5,258	$                       5,639

	June 30, 2017
(dollars in thousands)	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
Interest income	$                     15,105	$                     15,083	$                     14,955	$                     16,345
Interest expense	2,529	2,510	2,523	2,804
Net interest income	12,576	12,573	12,432	13,541
Provision for loan losses	925	656	376	383
Noninterest income	2,575	2,700	2,925	2,884
Noninterest expense	9,159	8,706	9,564	10,823
Income before income taxes	5,067	5,911	5,417	5,219
Income tax expense	1,358	1,735	1,463	1,506
NET INCOME	$                       3,709	$                       4,176	$                       3,954	$                       3,713

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NOTE 1: Organization and Summary of Significant Accounting Policies: Loans (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Loans

Loans. Loans are generally stated at unpaid principal balances, less the allowance for loan losses, 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. 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 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 allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans 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. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans, and the results of regulatory examinations.

Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan.

Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans (“purchased credit impaired loans”), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Cash and Cash Equivalents

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 $6.9 million and $3.4 million at June 30, 2019 and 2018, respectively. The deposits are held in various commercial banks in amounts not exceeding the FDIC’s deposit insurance limits, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.

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NOTE 18: Fair Value Measurements: Schedule of Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Financial Instruments

	June 30, 2019
		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	$                     35,400	$                     35,400	$                               -	$                               -
Interest-bearing time deposits	969	-	969	-
Stock in FHLB	5,233	-	5,233	-
Stock in Federal Reserve Bank of St. Louis	4,350	-	4,350	-
Loans receivable, net	1,846,405	-	-	1,823,040
Accrued interest receivable	10,189	-	10,189	-
Financial liabilities
Deposits	1,893,695	1,214,606	-	678,301
Securities sold under agreements to          repurchase	4,376	-	4,376	-
Advances from FHLB	44,908	-	45,547	-
Note payable	3,000	-	-	3,000
Accrued interest payable	2,099	-	2,099	-
Subordinated debt	15,043	-	-	15,267
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans	-	-	-	-
Letters of credit	-	-	-	-
Lines of credit	-	-	-	-

	June 30, 2018
		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	$                     26,326	$                     26,326	$                               -	$                               -
Interest-bearing time deposits	1,953	-	1,953	-
Stock in FHLB	5,661	-	5,661	-
Stock in Federal Reserve Bank of St. Louis	3,566	-	3,566	-
Loans receivable, net	1,563,380	-	-	1,556,466
Accrued interest receivable	7,992	-	7,992	-
Financial liabilities
Deposits	1,579,902	1,046,491	-	529,297
Securities sold under agreements to          repurchase	3,267	-	3,267	-
Advances from FHLB	76,652	66,550	10,110	-
Note payable	3,000	-	-	3,000
Accrued interest payable	1,206	-	1,206	-
Subordinated debt	14,945	-	-	14,382
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans	-	-	-	-
Letters of credit	-	-	-	-
Lines of credit	-	-	-	-

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NOTE 3: Loans and Allowance for Loan Losses: Purchased Credit Impaired Loans Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Pass
Purchased Credit Impaired Loans	$ 6,900	$ 7,800
Watch
Purchased Credit Impaired Loans	10,400	3,100
Special Mention
Purchased Credit Impaired Loans	0	0
Substandard
Purchased Credit Impaired Loans	11,200	3,700
Doubtful
Purchased Credit Impaired Loans	$ 0	$ 0

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NOTE 3: Loans and Allowance for Loan Losses

12 Months Ended

Jun. 30, 2019

Notes

NOTE 3: Loans and Allowance for Loan Losses

NOTE 3: Loans and Allowance for Loan Losses

Classes of loans are summarized as follows:

(dollars in thousands)	June 30, 2019	June 30, 2018
Real Estate Loans:
Residential	$             491,992	$             450,919
Construction	123,287	112,718
Commercial	840,777	704,647
Consumer loans	97,534	78,571
Commercial loans	355,874	281,272
	1,909,464	1,628,127
Loans in process	(43,153)	(46,533)
Deferred loan fees, net	(3)	-
Allowance for loan losses	(19,903)	(18,214)
Total loans	$          1,846,405	$          1,563,380

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. The Company has also occasionally purchased loan participation interests originated by other lenders and secured by properties generally located in the states of Missouri and Arkansas.

Residential Mortgage 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.

The Company also 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 our primary market area.  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 typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include 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.

Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments 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 our primary lending area.  Approximately $301.7 million of our $840.1 million in commercial real estate loans are secured by properties located outside our primary lending area.

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 maturity for up to seven 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. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio.

Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company 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-operated or non-owner occupied commercial real estate.  During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, permanent construction loans may be converted to monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate.

While the Company typically utilizes maturity periods ranging from 6 to 12 months 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. The Company’s average term of construction loans is approximately eight months. 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 allow the Company opportunity to assess risk. At June 30, 2019, construction loans outstanding included 59 loans, totaling $27.2 million, for which a modification had been agreed to. At June 30, 2018, construction loans outstanding included 72 loans, totaling $12.5 million, for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs.

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home 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 five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed 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 the 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.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 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.

Commercial Business Lending. The Company’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, including agricultural production and equipment loans.  The Company offers both fixed and adjustable rate commercial business loans. 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 following tables present the balance in the allowance for loan losses and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment and impairment methods as of June 30, 2019 and 2018, and activity in the allowance for loan losses for the fiscal years ended June 30, 2019, 2018, and 2017.

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2019	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,226	$              1,097	$              8,793	$                 902	$              4,196	$            18,214
Provision charged to expense	487	268	765	231	281	2,032
Losses charged off	(30)	-	(164)	(103)	(92)	(389)
Recoveries	23	-	5	16	2	46
Balance, end of period	$              3,706	$              1,365	$              9,399	$              1,046	$              4,387	$            19,903
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Ending Balance: collectively             evaluated for impairment	$              3,706	$              1,365	$              9,399	$              1,046	$              4,387	$            19,903
Ending Balance: loans acquired             with deteriorated credit quality	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Loans:
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Ending Balance: collectively             evaluated for impairment	$          490,307	$            78,826	$          821,415	$            97,534	$          349,681	$       1,837,763
Ending Balance: loans acquired             with deteriorated credit quality	$              1,685	$              1,308	$            19,362	$                      -	$              6,193	$            28,548

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2018	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,230	$                 964	$              7,068	$                 757	$              3,519	$            15,538
Provision charged to expense	184	142	1,779	251	691	3,047
Losses charged off	(190)	(9)	(56)	(129)	(22)	(406)
Recoveries	2	-	2	23	8	35
Balance, end of period	$              3,226	$              1,097	$              8,793	$                 902	$              4,196	$            18,214
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                 399	$                      -	$                 351	$                 750
Ending Balance: collectively             evaluated for impairment	$              3,226	$              1,097	$              8,394	$                 902	$              3,845	$            17,464
Ending Balance: loans acquired             with deteriorated credit quality	$                      -	$                      -	$                      -	$                      -	$                      -	$                      -
Loans:
Ending Balance: individually             evaluated for impairment	$                      -	$                      -	$                 660	$                      -	$                 580	$              1,240
Ending Balance: collectively             evaluated for impairment	$          447,706	$            64,888	$          696,377	$            78,571	$          278,241	$       1,565,783
Ending Balance: loans acquired             with deteriorated credit quality	$              3,213	$              1,297	$              7,610	$                      -	$              2,451	$            14,571

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2017	Real Estate	Real Estate	Real Estate	Consumer	Commercial	Total
Allowance for loan losses:
Balance, beginning of period	$              3,247	$              1,091	$              5,711	$                 738	$              3,004	$            13,791
Provision charged to expense	184	(97)	1,356	76	821	2,340
Losses charged off	(211)	(31)	(19)	(65)	(337)	(663)
Recoveries	10	1	20	8	31	70
Balance, end of period	$              3,230	$                 964	$              7,068	$                 757	$              3,519	$            15,538

Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral.  These estimates are affected by changing economic conditions and the economic prospects of borrowers.

The allowance for loan losses is maintained at a level that, in management’s judgment, is adequate to cover probable credit losses inherent in the loan portfolio at the balance sheet date.  The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when an amount is determined to be uncollectible, based on management’s analysis of expected cash flow (for non-collateral dependent loans) or collateral value (for collateral-dependent loans).  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The allowance consists of allocated and general components.  The allocated component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.

Under the Company’s allowance methodology, loans are first segmented into 1) those comprising large groups of homogeneous loans which are collectively evaluated for impairment, and 2) all other loans which are individually evaluated.  Those loans in the second category are further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends.  The loans subject to credit classification represent the portion of the portfolio subject to the greatest credit risk and where adjustments to the allowance for losses on loans as a result of provisions and charge offs are most likely to have a significant impact on operations.

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.  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 represents a probable loss or risk that should be recognized.

The Company considers, as the primary quantitative factor in its allowance methodology, average net charge offs over the most recent twelve-month period.  The Company also reviews average net charge offs over the most recent five-year period.

A loan is considered impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be able to be collected when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  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.  Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans.  Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

The general component covers non-classified loans and is based on historical charge-off experience and expected loss given the internal risk rating process.  The loan portfolio is stratified into homogeneous groups of loans that possess similar loss characteristics and an appropriate loss ratio adjusted for other qualitative factors is applied to the homogeneous pools of loans to estimate the incurred losses in the loan portfolio. 

Included in the Company’s loan portfolio are certain loans accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality.  These loans were written down at acquisition to an amount estimated to be collectible.  As a result, certain ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s current credit quality to prior periods.  The ratios particularly affected by accounting under ASC 310-30 include the allowance for loan losses as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans.

The following tables present the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of June 30, 2019 and 2018.  These tables include purchased credit impaired loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: 

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2019	Real Estate	Real Estate	Real Estate	Consumer	Commercial
Pass	$          482,869	$            80,134	$          802,479	$            97,012	$          341,069
Watch	1,236	-	21,693	170	7,802
Special Mention	103	-	3,463	26	-
Substandard	7,784	-	13,142	291	7,003
Doubtful	-	-	-	35	-
Total	$          491,992	$            80,134	$          840,777	$            97,534	$          355,874

(dollars in thousands)	Residential	Construction	Commercial
June 30, 2018	Real Estate	Real Estate	Real Estate	Consumer	Commercial
Pass	$          443,916	$            66,160	$          691,188	$            78,377	$          277,568
Watch	1,566	-	7,004	111	374
Special Mention	75	-	926	27	69
Substandard	5,362	25	4,869	56	2,079
Doubtful	-	-	660	-	1,182
Total	$          450,919	$            66,185	$          704,647	$            78,571	$          281,272

The above amounts include purchased credit impaired loans.  At June 30, 2019, purchased credit impaired loans comprised $6.9 million of credits rated “Pass”; $10.4 million of credits rated “Watch”, none rated “Special Mention”, $11.2 million of credits rated “Substandard” and none rated “Doubtful”.  At June 30, 2018, purchased credit impaired loans comprised $7.8 million of credits rated “Pass”; $3.1 million of credits rated “Watch”, none rated “Special Mention”; $3.7 million of credits rated “Substandard”; and none rated “Doubtful”.

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. In addition, lending relationships of $2 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of single-family residential real estate loans) 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 exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

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 not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans.

The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of June 30, 2019 and 2018.  These tables include purchased credit impaired 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, 2019	Past Due	Past Due	Past Due	Past Due	Current	Receivable	and Accruing
Real Estate Loans:
Residential	$                 227	$              1,054	$              1,714	$              2,995	$          488,997	$          491,992	$                      -
Construction	-	-	-	-	80,134	80,134	-
Commercial	296	1	5,617	5,914	834,863	840,777	-
Consumer loans	128	46	176	350	97,184	97,534	-
Commercial loans	424	25	1,902	2,351	353,523	355,874	-
Total loans	$              1,075	$              1,126	$              9,409	$            11,610	$       1,854,701	$       1,866,311	$                      -

			Greater Than				Greater Than 90
(dollars in thousands)	30-59 Days	60-89 Days	90 Days	Total		Total Loans	Days Past Due
June 30, 2018	Past Due	Past Due	Past Due	Past Due	Current	Receivable	and Accruing
Real Estate Loans:
Residential	$                 749	$                   84	$              4,089	$              4,922	$          445,997	$          450,919	$                      -
Construction	-	-	-	-	66,185	66,185	-
Commercial	1,100	290	1,484	2,874	701,773	704,647	-
Consumer loans	510	33	146	689	77,882	78,571	-
Commercial loans	134	90	707	931	280,341	281,272	-
Total loans	$              2,493	$                 497	$              6,426	$              9,416	$       1,572,178	$       1,581,594	$                      -

At June 30, 2019 there was one purchased credit impaired loan with net fair value of $3.1 million that was greater than 90 days past due.  At June 30, 2018 there were two purchased credit impaired loans with net fair value of $1.1 million that were greater than 90 days past due.

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.  Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings (TDRs) where concessions have been granted to borrowers experiencing financial difficulties.  These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection.   

The following tables present impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2019 and 2018.  These tables include purchased credit impaired loans.  Purchased credit impaired loans are those for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable.  In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan.  These loans, however, will continue to be reported as impaired loans.  In an instance where, subsequent to the acquisition, the Company determines it is probable that, for a specific loan, that cash flows received will be less than the amount previously expected, the Company will allocate a specific allowance under the terms of ASC 310-10-35.

(dollars in thousands)	Recorded	Unpaid Principal	Specific
June 30, 2019	Balance	Balance	Allowance
Loans without a specific valuation allowance:
Residential real estate	$              5,104	$              5,341	$                      -
Construction real estate	1,330	1,419	-
Commercial real estate	26,410	31,717	-
Consumer loans	8	8	-
Commercial loans	6,999	9,187	-
Loans with a specific valuation allowance:
Residential real estate	$                      -	$                      -	$                      -
Construction real estate	-	-	-
Commercial real estate	-	-	-
Consumer loans	-	-	-
Commercial loans	-	-	-
Total:
Residential real estate	$              5,104	$              5,341	$                      -
Construction real estate	$              1,330	$              1,419	$                      -
Commercial real estate	$            26,410	$            31,717	$                      -
Consumer loans	$                     8	$                     8	$                      -
Commercial loans	$              6,999	$              9,187	$                      -

(dollars in thousands)	Recorded	Unpaid Principal	Specific
June 30, 2018	Balance	Balance	Allowance
Loans without a specific valuation allowance:
Residential real estate	$              3,820	$              4,468	$                      -
Construction real estate	1,321	1,569	-
Commercial real estate	14,052	15,351	-
Consumer loans	25	25	-
Commercial loans	2,787	3,409	-
Loans with a specific valuation allowance:
Residential real estate	$                      -	$                      -	$                      -
Construction real estate	-	-	-
Commercial real estate	660	660	399
Consumer loans	-	-	-
Commercial loans	580	580	351
Total:
Residential real estate	$              3,820	$              4,468	$                      -
Construction real estate	$              1,321	$              1,569	$                      -
Commercial real estate	$            14,712	$            16,011	$                 399
Consumer loans	$                   25	$                   25	$                      -
Commercial loans	$              3,367	$              3,989	$                 351

The above amounts include purchased credit impaired loans.  At June 30, 2019, purchased credit impaired loans comprised $28.5 million of impaired loans without a specific valuation allowance.  At June 30, 2018, purchased credit impaired loans comprised $14.6 million of impaired loans without a specific valuation allowance.

The following tables present information regarding interest income recognized on impaired loans:

	Fiscal 2019
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             2,081	$                                 112
Construction Real Estate	1,297	246
Commercial Real Estate	14,547	1,570
Consumer Loans	-	-
Commercial Loans	4,212	926
Total Loans	$                           22,137	$                              2,854

	Fiscal 2018
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             3,358	$                                 219
Construction Real Estate	1,317	165
Commercial Real Estate	9,446	1,163
Consumer Loans	-	-
Commercial Loans	3,152	199
Total Loans	$                           17,273	$                              1,746

	Fiscal 2017
	Average
(dollars in thousands)	Investment in	Interest Income
	Impaired Loans	Recognized
Residential Real Estate	$                             3,011	$                                 119
Construction Real Estate	1,370	148
Commercial Real Estate	10,044	782
Consumer Loans	-	-
Commercial Loans	1,529	74
Total Loans	$                           15,954	$                              1,123

Interest income on impaired loans recognized on a cash basis in the fiscal years ended June 30, 2019, 2018, and 2017 was immaterial. 

For the fiscal years ended June 30, 2019, 2018, and 2017, the amount of interest income recorded for impaired loans that represents a change in the present value of future cash flows attributable to the passage of time was approximately $1.3 million, $683,000, and $392,000, respectively.

The following table presents the Company’s nonaccrual loans at June 30, 2019 and 2018.  Purchased credit impaired loans are placed on nonaccrual status in the event the Company cannot reasonably estimate cash flows expected to be collected.  The table excludes performing TDRs.

	June 30,
(dollars in thousands	2019	2018
Residential real estate	$              6,404	$              5,913
Construction real estate	-	25
Commercial real estate	10,876	1,962
Consumer loans	309	209
Commercial loans	3,424	1,063
Total loans	$            21,013	$              9,172

The above amounts include purchased credit impaired loans.  At June 30, 2019 and 2018, purchased credit impaired loans comprised $4.1 million and $1.1 million of nonaccrual loans, respectively.

Included in certain loan categories in the impaired loans are TDRs, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

When loans and leases are modified into a TDR, the Company evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, and uses the current fair value of the collateral, less selling costs, for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance.

At June 30, 2019, and June 30, 2018, the Company had $6.5 million and $8.1 million, respectively, of commercial real estate loans, $1.1 million and $800,000, respectively, of residential real estate loans, $5.6 million and $2.8 million, respectively, of commercial loans, and $0 and $14,000, respectively, of consumer loans that were modified in TDRs and impaired.  All loans classified as TDRs at June 30, 2019 and June 30, 2018, were so classified due to interest rate concessions.  During Fiscal 2019 three commercial loans totaling $4.4 million, and three commercial real estate loans totaling $969,000 were modified as TDRs and had payment defaults subsequent to the modification.  When loans modified as TDRs have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowances reflect amounts considered uncollectible. 

Performing loans classified as TDRs at June 30, 2019 and June 30, 2018 segregated by class, are shown in the table below.  Nonperforming TDRs are shown in nonaccrual loans.

	June 30, 2019		June 30, 2018
(dollars in thousands)	Number of modifications	Recorded Investment	Number of modifications	Recorded Investment
Residential real estate	10	$                    1,130	12	$                               800
Construction real estate	-	-	-	-
Commercial real estate	20	6,529	13	8,084
Consumer loans	-	-	1	14
Commercial loans	10	5,630	8	2,787
Total	40	$                  13,289	34	$                          11,685

We may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of June 30, 2019 and June 30, 2018, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $752,000 and $802,000, respectively. In addition, as of June 30, 2019 and June 30, 2018, we had residential mortgage loans and home equity loans with a carrying value of $493,000 and $331,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2019 and 2018, respectively: 

	June 30,
(dollars in thousands)	2019	2018
Beginning Balance	$              8,995	$              8,320
Additions	7,238	6,543
Repayments	(7,134)	(5,868)
Change in related party	33	-
Ending Balance	$              9,132	$              8,995

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NOTE 7: Securities Sold Under Agreements to Repurchase

12 Months Ended

Jun. 30, 2019

Notes

NOTE 7: Securities Sold Under Agreements to Repurchase

NOTE 7:  Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase, which are classified as borrowings, generally mature within one to four days.  The carrying value of securities sold under agreement to repurchase amounted to $4.4 million and $3.3 million at June 30, 2019 and 2018, respectively. The securities underlying the agreements consist of marketable securities, including $0 and $1.2 million of U.S. Government and Federal Agency Obligations, and $5.8 million and $3.4 million of Mortgage-Backed Securities at June 30, 2019 and 2018, respectively. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained. 

The following table presents balance and interest rate information on the securities sold under agreements to repurchase.

	June 30,
(dollars in thousands)	2019	2018
Year-end balance	$                       4,376	$                       3,267
Average balance during the year	3,988	5,373
Maximum month-end balance during the year	4,703	9,902
Average interest during the year	0.90%	0.70%
Year-end interest rate	0.93%	0.86%

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Total Loans
Impaired Financing Receivable, Average Recorded Investment	$ 22,137	$ 17,273	$ 15,954
Impaired Financing Receivable Interest Income Recognized	2,854	1,746	1,123
Consumer Loan
Impaired Financing Receivable, Average Recorded Investment	0	0	0
Impaired Financing Receivable Interest Income Recognized	0	0	0
Commercial Loan
Impaired Financing Receivable, Average Recorded Investment	4,212	3,152	1,529
Impaired Financing Receivable Interest Income Recognized	926	199	74
Construction Loan Payable
Impaired Financing Receivable, Average Recorded Investment	1,297	1,317	1,370
Impaired Financing Receivable Interest Income Recognized	246	165	148
Residential Real Estate
Impaired Financing Receivable, Average Recorded Investment	2,081	3,358	3,011
Impaired Financing Receivable Interest Income Recognized	112	219	119
Commercial Real Estate
Impaired Financing Receivable, Average Recorded Investment	14,547	9,446	10,044
Impaired Financing Receivable Interest Income Recognized	$ 1,570	$ 1,163	$ 782

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NOTE 3: Loans and Allowance for Loan Losses: Loans Modified in Troubled Debt Restructurings and Impaired (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Commercial Loan
Financing Receivable, Troubled Debt Restructuring	$ 5,600	$ 2,800
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	3
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 4,400
Consumer Loan
Financing Receivable, Troubled Debt Restructuring	0	14
Commercial Real Estate
Financing Receivable, Troubled Debt Restructuring	$ 6,500	8,100
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	3
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 969
Residential Real Estate
Financing Receivable, Troubled Debt Restructuring	$ 1,100	$ 800

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NOTE 11: Employee Benefits

12 Months Ended

Jun. 30, 2019

Notes

NOTE 11: Employee Benefits

NOTE 11:  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, 2019, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2019. Total 401(k) expense for fiscal 2019, 2018, and 2017 was $1.3 million, $1.3 million, and $877,000, respectively. At June 30, 2019, 401(k) plan participants held approximately 366,000 shares 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.

Management Recognition Plans (MRPs). The Bank adopted an MRP for the benefit of non-employee directors and two MRPs for officers and key employees (who may also be directors) in April 1994. During fiscal 2012, the Bank granted 6,072 MRP shares (split-adjusted) to employees. The shares granted were in the form of restricted stock vested at the rate of 20% of such shares per year. For fiscal 2017, there were 1,214 shares vested; no shares vested in fiscal 2019 or 2018. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, was recognized pro-rata over the five years during which the shares vest. The MRP expense for fiscal 2017 was $13,000; there was no expense attributable to the plan in fiscal 2019 or 2018. At June 30, 2019, there was no unvested compensation expense related to the MRP, and no shares remained available for award.

2008 Equity Incentive Plan. The Company adopted an Equity Incentive Plan (EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. The committee held the power to set vesting requirements for each award under the EIP. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the EIP. During fiscal 2012, the Company awarded 73,928 shares (split-adjusted); during fiscal 2014, the Company awarded 24,000 shares (split-adjusted); during fiscal 2015, the Company awarded 8,000 shares (split-adjusted); during fiscal 2016, the Company awarded 3,750 shares; and during fiscal 2017, the Company awarded 13,125 shares. No awards were made under the plan in fiscal 2019 or 2018. All EIP awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to of 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, 2018, and 2017, there were 7,100, 5,400, and 21,200 EIP shares (split-adjusted) vested each year, 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 five years during which the shares vest. The EIP expense for fiscal 2019, 2018, and 2017 was $141,000, $165,000, and $284,000, respectively. At June 30, 2019, unvested compensation expense related to the EIP was approximately $247,000.

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 177,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 20,000 remain outstanding. 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, 2019, there was $2,000 in remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of stock options outstanding at June 30, 2019, was $457,000, and the aggregate intrinsic value of stock options exercisable at June 30, 2019, was $423,000. During fiscal 2019 no options to purchase shares were exercised. The intrinsic value of options vested in fiscal 2019, 2018, and 2017 was $35,000, $43,000, and $262,000, respectively.

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, options to purchase 31,000 shares have been issued to employees, of which none have been exercised or forfeited, and 31,000 remain outstanding. As of June 30, 2019, there was $234,000 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 at June 30, 2019, was $8,000, and the no options were exercisable at June 30, 2019, at a strike price in excess of the market price. No in-the-money options were vested in fiscal 2019, and no options vested during fiscal 2018 and 2017.

Full value awards totaling 15,000 and 22,000 shares, respectively, were issued to employees and directors in fiscal 2019 and 2018. All full value awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, full value awards of 4,200 shares were vested, while no full value awards vested in fiscal 2018 or 2017. 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 five years during which the shares vest. Compensation expense for full value awards under the 2017 Plan for fiscal 2019, 2018, and 2017 was $189,000, $60,000, and $0, respectively. At June 30, 2019, unvested compensation expense related to full value awards under the 2017 Plan was approximately $1.0 million.

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

	2019		2018		2017
	Weighted		Weighted		Weighted
	Average		Average		Average
	Price	Number	Price	Number	Price	Number
Outstanding at beginning of year	$            22.18	33,500	$              9.35	44,000	$              8.74	54,000
Granted	34.35	17,500	37.31	13,500	-	-
Exercised	-	-	7.18	(24,000)	6.08	(10,000)
Forfeited	-	-	-	-	-	-
Outstanding at year-end	$            26.35	51,000	$            22.18	33,500	$              9.35	44,000
Options exercisable at year-end	$            14.73	20,700	$            10.57	16,000	$              8.06	38,000

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 2019 and 2018 (no options were granted in fiscal 2017):

	2019	2018	2017
Assumptions:
Expected dividend yield	1.51%	1.18%	-
Expected volatility	20.39%	20.42%	-
Risk-free interest rate	2.67%	2.54%	-
Weighted-average expected life (years)	10.00	10.00	-
Weighted-average fair value of       options granted during the year	$                 8.78	$               10.14	-

The table below summarizes information about stock options outstanding under the 2003 Plan and 2017 Plan at June 30, 2019:

			Options Exercisable
	Options Outstanding
Weighted
Average		Weighted		Weighted
Remaining		Average		Average
Contractual	Number	Exercise	Number	Exercise
Life	Outstanding	Price	Exercisable	Price
6.5 mo.	10,000	6.38	10,000	6.38
62.3 mo.	10,000	17.55	8,000	17.55
102.6 mo.	13,500	37.31	2,700	37.31
114.3 mo.	17,500	34.35	-	-

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NOTE 6: Deposits: Time Deposit Maturities (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Time Deposit Maturities

(dollars in thousands)
July 1, 2019 to June 30, 2020	$                         467,676
July 1, 2020 to June 30, 2021	152,980
July 1, 2021 to June 30, 2022	38,045
July 1, 2022 to June 30, 2023	16,625
July 1, 2023 to June 30, 2024	3,933
Thereafter	-
TOTAL	$                         679,259

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Loan Portfolio Aging Analysis

The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of June 30, 2019 and 2018.  These tables include purchased credit impaired 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, 2019	Past Due	Past Due	Past Due	Past Due	Current	Receivable	and Accruing
Real Estate Loans:
Residential	$                 227	$              1,054	$              1,714	$              2,995	$          488,997	$          491,992	$                      -
Construction	-	-	-	-	80,134	80,134	-
Commercial	296	1	5,617	5,914	834,863	840,777	-
Consumer loans	128	46	176	350	97,184	97,534	-
Commercial loans	424	25	1,902	2,351	353,523	355,874	-
Total loans	$              1,075	$              1,126	$              9,409	$            11,610	$       1,854,701	$       1,866,311	$                      -

			Greater Than				Greater Than 90
(dollars in thousands)	30-59 Days	60-89 Days	90 Days	Total		Total Loans	Days Past Due
June 30, 2018	Past Due	Past Due	Past Due	Past Due	Current	Receivable	and Accruing
Real Estate Loans:
Residential	$                 749	$                   84	$              4,089	$              4,922	$          445,997	$          450,919	$                      -
Construction	-	-	-	-	66,185	66,185	-
Commercial	1,100	290	1,484	2,874	701,773	704,647	-
Consumer loans	510	33	146	689	77,882	78,571	-
Commercial loans	134	90	707	931	280,341	281,272	-
Total loans	$              2,493	$                 497	$              6,426	$              9,416	$       1,572,178	$       1,581,594	$                      -

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NOTE 11: Employee Benefits: 401(k) Retirement Plan Policy (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
401(k) Retirement Plan Expense	$ 1,300	$ 1,300	$ 877
401(k) Retirement Plan Shares Held	366,000

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NOTE 8: Advances from Federal Home Loan Bank: Federal Home Loan Bank, Advances (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Federal Home Loan Bank Advances	$ 44,908
2.42%		2.18%
Federal Home Loan Bank Advances Maturity Date | 08/13/18
Federal Home Loan Bank, Advances, Interest Rate	3.32%
Federal Home Loan Bank Advances	$ 0	$ 501
Federal Home Loan Bank Advances Maturity Date | 08/14/18
Federal Home Loan Bank, Advances, Interest Rate	3.98%
Federal Home Loan Bank Advances	$ 0	5,000
Federal Home Loan Bank Advances Maturity Date | 10/09/18
Federal Home Loan Bank, Advances, Interest Rate	3.38%
Federal Home Loan Bank Advances	$ 0	1,503
Federal Home Loan Bank Advances Maturity Date | 12/28/18
Federal Home Loan Bank, Advances, Interest Rate	1.69%
Federal Home Loan Bank Advances	$ 0	249
Federal Home Loan Bank Advances Maturity Date | 04/01/19
Federal Home Loan Bank, Advances, Interest Rate	1.60%
Federal Home Loan Bank Advances	$ 0	249
Federal Home Loan Bank Advances Maturity Date | 4/01/19
Federal Home Loan Bank, Advances, Interest Rate	1.27%
Federal Home Loan Bank Advances	$ 0	248
Federal Home Loan Bank Advances Maturity Date | 08/19/19
Federal Home Loan Bank, Advances, Interest Rate	1.52%
Federal Home Loan Bank Advances	$ 200	396
Federal Home Loan Bank Advances Maturity Date | 11/22/19
Federal Home Loan Bank, Advances, Interest Rate	1.91%
Federal Home Loan Bank Advances	$ 1,741	0
Federal Home Loan Bank Advances Maturity Date | 12/30/19
Federal Home Loan Bank, Advances, Interest Rate	1.92%
Federal Home Loan Bank Advances	$ 249	248
Federal Home Loan Bank Advances Maturity Date | 01/14/20
Federal Home Loan Bank, Advances, Interest Rate	1.76%
Federal Home Loan Bank Advances	$ 249	247
Federal Home Loan Bank Advances Maturity Date | 03/31/20
Federal Home Loan Bank, Advances, Interest Rate	1.49%
Federal Home Loan Bank Advances	$ 248	246
Federal Home Loan Bank Advances Maturity Date | 06/10/20
Federal Home Loan Bank, Advances, Interest Rate	1.26%
Federal Home Loan Bank Advances	$ 247	244
Federal Home Loan Bank Advances Maturity Date | 09/09/20
Federal Home Loan Bank, Advances, Interest Rate	2.02%
Federal Home Loan Bank Advances	$ 4,929	0
Federal Home Loan Bank Advances Maturity Date | 11/23/20
Federal Home Loan Bank, Advances, Interest Rate	2.13%
Federal Home Loan Bank Advances	$ 1,725	0
Federal Home Loan Bank Advances Maturity Date | 01/14/21
Federal Home Loan Bank, Advances, Interest Rate	1.92%
Federal Home Loan Bank Advances	$ 247	245
Federal Home Loan Bank Advances Maturity Date | 03/31/21
Federal Home Loan Bank, Advances, Interest Rate	1.68%
Federal Home Loan Bank Advances	$ 246	243
Federal Home Loan Bank Advances Maturity Date | 05/17/21
Federal Home Loan Bank, Advances, Interest Rate	2.43%
Federal Home Loan Bank Advances	$ 5,000	0
Federal Home Loan Bank Advances Maturity Date | 06/10/21
Federal Home Loan Bank, Advances, Interest Rate	1.42%
Federal Home Loan Bank Advances	$ 244	241
Federal Home Loan Bank Advances Maturity Date | 09/07/21
Federal Home Loan Bank, Advances, Interest Rate	2.81%
Federal Home Loan Bank Advances	$ 9,000	0
Federal Home Loan Bank Advances Maturity Date | 09/09/21
Federal Home Loan Bank, Advances, Interest Rate	2.28%
Federal Home Loan Bank Advances	$ 1,960	0
Federal Home Loan Bank Advances Maturity Date | 10/01/21
Federal Home Loan Bank, Advances, Interest Rate	2.53%
Federal Home Loan Bank Advances	$ 5,000	0
Federal Home Loan Bank Advances Maturity Date | 11/16/21
Federal Home Loan Bank, Advances, Interest Rate	2.43%
Federal Home Loan Bank Advances	$ 5,000	0
Federal Home Loan Bank Advances Maturity Date | 03/31/22
Federal Home Loan Bank, Advances, Interest Rate	1.91%
Federal Home Loan Bank Advances	$ 244	242
Federal Home Loan Bank Advances Maturity Date | 03/28/24
Federal Home Loan Bank, Advances, Interest Rate	2.56%
Federal Home Loan Bank Advances	$ 8,000	0
Federal Home Loan Bank Advances Maturity Date | 12/14/26
Federal Home Loan Bank, Advances, Interest Rate	2.65%
Federal Home Loan Bank Advances	$ 379	0
Federal Home Loan Bank Advances Maturity Date | Overnight
Federal Home Loan Bank, Advances, Interest Rate	2.03%
Federal Home Loan Bank Advances	$ 0	66,550
Federal Home Loan Bank Advances Maturity Date | Total Advances
Federal Home Loan Bank Advances	$ 44,908	$ 76,652

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Note 2: Available for Sale Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Other than Temporary Impairment, Credit Losses Recognized in Earnings

	Accumulated Credit Losses
	Twelve-Month Period Ended
(dollars in thousands)	June 30,
	2019	2018
Credit losses on debt securities held
Beginning of period	$                         -	$                    340
Additions related to OTTI losses not previously recognized	-	-
Reductions due to sales	-	(333)
Reductions due to change in intent or likelihood of sale	-	-
Additions related to increases in previously-recognized OTTI losses	-	-
Reductions due to increases in expected cash flows	-	(7)
End of period	$                         -	$                         -

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NOTE 4: Accounting for Certain Acquired Loans: Schedule of Acquired Loans With Credit Deterioration (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Acquired Loans With Credit Deterioration

	June 30,
(dollars in thousands)	2019	2018
Residential real estate	$              1,921	$              3,861
Construction real estate	1,397	1,544
Commercial real estate	24,669	8,909
Consumer loans	-	-
Commercial loans	8,381	3,073
Outstanding balance	$            36,368	$            17,387
Carrying amount, net of fair value adjustment of      $7,821 and $2,816 at June 30, 2019 and 2018,       respectively	$            28,547	$            14,571

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NOTE 11: Employee Benefits: 2017 Omnibus Incentive Plan (Details)	12 Months Ended
	Jun. 30, 2019
Details
2017 Omnibus Incentive Plan Description	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.

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Debtor Troubled Debt Restructuring, Current Period

	June 30, 2019		June 30, 2018
(dollars in thousands)	Number of modifications	Recorded Investment	Number of modifications	Recorded Investment
Residential real estate	10	$                    1,130	12	$                               800
Construction real estate	-	-	-	-
Commercial real estate	20	6,529	13	8,084
Consumer loans	-	-	1	14
Commercial loans	10	5,630	8	2,787
Total	40	$                  13,289	34	$                          11,685

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NOTE 11: Employee Benefits: Schedule of Share-based Compensation, Stock Options, Activity (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Share-based Compensation, Stock Options, Activity

	2019		2018		2017
	Weighted		Weighted		Weighted
	Average		Average		Average
	Price	Number	Price	Number	Price	Number
Outstanding at beginning of year	$            22.18	33,500	$              9.35	44,000	$              8.74	54,000
Granted	34.35	17,500	37.31	13,500	-	-
Exercised	-	-	7.18	(24,000)	6.08	(10,000)
Forfeited	-	-	-	-	-	-
Outstanding at year-end	$            26.35	51,000	$            22.18	33,500	$              9.35	44,000
Options exercisable at year-end	$            14.73	20,700	$            10.57	16,000	$              8.06	38,000

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Note 2: Available for Sale Securities: Credit Losses Recognized on Investments Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Credit Losses Recognized on Investments Policy

Credit losses recognized on investments.  During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.”  The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2019 and 2018.

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NOTE 18: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Foreclosed and repossessed assets held for sale
Fair value on a nonrecurring basis	$ 2,430	$ 1,467
Impaired loans (collateral dependent)
Fair value on a nonrecurring basis		$ 490

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NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Cash and cash equivalents	$ 35,400	$ 26,326	$ 30,786	$ 22,554
TOTAL ASSETS	2,214,402	1,886,115
Subordinated Debt	15,043	14,945
TOTAL STOCKHOLDERS' EQUITY	238,392	200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,214,402	1,886,115
Parent Company
Cash and cash equivalents	8,149	8,383	$ 10,856	$ 4,076
Other Assets	13,438	13,434
Investment in common stock of Bank	234,716	197,863
TOTAL ASSETS	256,303	219,680
Accrued Liabilities and Other Liabilities	2,868	4,041
Subordinated Debt	15,043	14,945
Liabilities	17,911	18,986
TOTAL STOCKHOLDERS' EQUITY	238,392	200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 256,303	$ 219,680

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NOTE 3: Loans and Allowance for Loan Losses: Consumer Lending (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Consumer Lending

Consumer Lending. The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home 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 five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed 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 the 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.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Federal Reserve Bank and Federal Home Loan Bank Stock (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Federal Reserve Bank and Federal Home Loan Bank Stock

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.

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NOTE 20: Condensed Parent Company Only Financial Statements: Parent Company Condensed Statements of Cash Flows (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Parent Company Condensed Statements of Cash Flows

	Year ended June 30,
(dollars in thousands)	2019	2018	2017
Condensed Statements of Cash Flow
Cash Flows from operating activities:
Net income	$               28,904	$               20,929	$               15,552
Changes in:
Equity in undistributed income of the Bank	(7,427)	(16,299)	(12,696)
Other adjustments, net	(635)	40	412
NET CASH PROVIDED BY OPERATING ACTIVITES	20,842	4,670	3,268
Cash flows from investing activities:
Investments in Bank subsidiaries	(10,747)	(3,488)	(11,062)
NET CASH USED IN INVESTING ACTIVITIES	(10,747)	(3,488)	(11,062)
Cash flows from financing activities:
Dividends on common stock	(4,763)	(3,827)	(2,981)
Exercise of stock options	-	172	61
Payments to acquire treasury stock	(1,166)	-	-
Proceeds from issuance of common stock	-	-	24,144
Proceeds from issuance of long term debt	-	-	15,000
Repayments of long term debt	(4,400)	-	(15,650)
Injection of capital to subsidiary	-	-	(6,000)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(10,329)	(3,655)	14,574
Net increase (decrease) in cash and cash equivalents	(234)	(2,473)	6,780
Cash and cash equivalents at beginning of year	8,383	10,856	4,076
CASH AND CASH EQUIVALENTS AT END OF YEAR	$                 8,149	$                 8,383	$               10,856

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NOTE 18: Fair Value Measurements: Fair Value Option, Disclosures (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Fair Value Option, Disclosures

(dollars in thousands)	Fair value at June 30 , 2019	Valuation technique	Unobservable inputs	Range of inputs applied	Weighted-average inputs applied
Nonrecurring Measurements
Foreclosed and repossessed assets	$                       2,430	Third party appraisal	Marketability discount	5.1% - 77.0%	35.2%

(dollars in thousands)	Fair value at June 30, 2018	Valuation technique	Unobservable inputs	Range of inputs applied	Weighted-average inputs applied
Nonrecurring Measurements
Impaired loans (collateral dependent)	$                          490	Internal Valuation	Discount to reflect realizable value	n/a
Foreclosed and repossessed assets	$                       1,467	Third party appraisal	Marketability discount	0.0% - 53.1%	18.2%

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NOTE 1: Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Use of Estimates

Use of Estimates. The preparation of 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 loan losses, and estimated fair values of purchased loans.

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NOTE 12: Income Taxes

12 Months Ended

Jun. 30, 2019

Notes

NOTE 12: Income Taxes

NOTE 12:  Income Taxes

The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for tax years ending June 30, 2015 and before.  The Company recognized no interest or penalties related to income taxes.

The components of net deferred tax assets are summarized as follows:

(dollars in thousands)	June 30, 2019	June 30, 2018
Deferred tax assets:
Provision for losses on loans	$                                               4,601	$                                4,418
Accrued compensation and benefits	692	708
NOL carry forwards acquired	199	273
Minimum Tax Credit	130	130
Unrealized loss on other real estate	134	124
Unrealized loss on available for sale securities	-	730
Purchase accounting adjustments	255	-
Losses and credits from LLC's	1,206	1,003
Total deferred tax assets	7,218	7,386
Deferred tax liabilities:
Purchase accounting adjustments	-	949
Depreciation	1,749	1,475
FHLB stock dividends	120	130
Prepaid expenses	313	98
Unrealized gain on available for sale securities	364	-
Other	61	327
Total deferred tax liabilities	2,607	2,979
Net deferred tax asset	$                                               4,611	$                                4,407

As of June 30, 2019, the Company had approximately $963,000 and $1.7 million in federal and state net operating loss carryforwards, respectively, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc. and the August 2014 acquisition of Peoples Service Company.  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 2027.

A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: 

	For the year ended June 30
(dollars in thousands)	2019	2018	2017
Tax at statutory rate	$                                7,550	$                                8,074	$                                         7,565
Increase (reduction) in taxes       resulting from:
Nontaxable municipal income	(400)	(441)	(513)
State tax, net of Federal benefit	487	553	215
Cash surrender value of                   Bank-owned life insurance	(279)	(266)	(397)
Tax credit benefits	(270)	(871)	(367)
Adjustment of deferred tax asset                   for enacted changes in tax laws	-	1,124	-
Other, net	(41)	(370)	(441)
Actual provision	$                                7,047	$                                7,803	$                                         6,062

For the year ended June 30, 2019, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR), compared to 28.1% for the year ended June 30, 2018, as a result of the Tax Cuts and Jobs Act ("Tax Act") signed into law December 22, 2017. The Tax Act ultimately reduced the corporate Federal income tax rate for the Company from 35% to 21%, and for the fiscal year ending June 30, 2018, the Company was administratively subject to a 28.1% AETR.  U. S. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment and the income tax effects of the Tax Act were recognized in the Company’s financial statements for the quarter ended December 31, 2017, and for the twelve months ended June 30, 2018.  The Tax Act is complex and requires significant detailed analysis.  During the preparation of the Company's June 30, 2018 income tax returns, no significant adjustments related to enactment of the Tax Act were identified. 

Tax credit benefits are recognized under the deferral method of accounting for investments in tax credits.

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Total Loans
Number of modifications	40	34
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 13,289	$ 11,685
Consumer Loan
Number of modifications	0	1
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 0	$ 14
Commercial Loan
Number of modifications	10	8
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 5,630	$ 2,787
Construction Loan Payable
Number of modifications	0	0
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 0	$ 0
Residential Real Estate
Number of modifications	10	12
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 1,130	$ 800
Commercial Real Estate
Number of modifications	20	13
Financing Receivable, Troubled Debt Restructuring, Premodification	$ 6,529	$ 8,084

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NOTE 4: Accounting for Certain Acquired Loans

12 Months Ended

Jun. 30, 2019

Notes

NOTE 4: Accounting for Certain Acquired Loans

NOTE 4: Accounting for Certain Acquired Loans

During the fiscal years ended June 30, 2011, 2015, 2017, and 2019, the Company acquired certain loans which evidenced deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected.

Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds.

The carrying amount of those loans is included in the balance sheet amounts of loans receivable at June 30, 2019 and June 30, 2018. The amount of these loans is shown below:

	June 30,
(dollars in thousands)	2019	2018
Residential real estate	$              1,921	$              3,861
Construction real estate	1,397	1,544
Commercial real estate	24,669	8,909
Consumer loans	-	-
Commercial loans	8,381	3,073
Outstanding balance	$            36,368	$            17,387
Carrying amount, net of fair value adjustment of      $7,821 and $2,816 at June 30, 2019 and 2018,       respectively	$            28,547	$            14,571

Accretable yield, or income expected to be collected, is as follows:

	June 30,
(dollars in thousands)	2019	2018	2017
Balance at beginning of period	$                 589	$                 609	$                 656
Additions	102	-	-
Accretion	(1,342)	(683)	(391)
Reclassification from nonaccretable difference	1,075	663	344
Disposals	(204)	-	-
Balance at end of period	$                 220	$                 589	$                 609

During the fiscal years ended June 30, 2019 and 2018, the Company did not increase or reverse the allowance for loan losses related to these purchased credit impaired loans.

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NOTE 3: Loans and Allowance for Loan Losses (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Financing Receivable, Credit Quality, Additional Information	lending relationships of $2 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $1 million (exclusive of single-family residential real estate loans) are subject to an independent loan review annually, in order to verify risk ratings
Number of Purchased Credit Impaired Loans	1	2
Loans without a specific valuation allowance
Purchased Credit Impaired Loans	$ 28,500	$ 14,600
Financial Asset, Equal to or Greater than 90 Days Past Due
Purchased Credit Impaired Loans	$ 3,100	$ 1,100

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NOTE 3: Loans and Allowance for Loan Losses: Loans and Leases Receivable Impaired Interest Income Recognized Change in Present Value Attributable to Passage of Time (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time	$ 1,300	$ 683	$ 392

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NOTE 8: Advances from Federal Home Loan Bank

12 Months Ended

Jun. 30, 2019

Notes

NOTE 8: Advances from Federal Home Loan Bank

NOTE 8:  Advances from Federal Home Loan Bank

Advances from Federal Home Loan Bank are summarized as follows:

		June 30,
	Interest	2019	2018
Maturity	Rate	(dollars in thousands)
08/13/18	3.32%	$                                  -	$                                  501
08/14/18	3.98%	-	5,000
10/09/18	3.38%	-	1,503
12/28/18	1.69%	-	249
04/01/19	1.60%	-	249
04/01/19	1.27%	-	248
08/19/19	1.52%	200	396
11/22/19	1.91%	1,741	-
12/30/19	1.92%	249	248
01/14/20	1.76%	249	247
03/31/20	1.49%	248	246
06/10/20	1.26%	247	244
09/09/20	2.02%	4,929	-
11/23/20	2.13%	1,725	-
01/14/21	1.92%	247	245
03/31/21	1.68%	246	243
05/17/21	2.43%	5,000	-
06/10/21	1.42%	244	241
09/07/21	2.81%	9,000	-
09/09/21	2.28%	1,960	-
10/01/21	2.53%	5,000	-
11/16/21	2.43%	5,000	-
03/31/22	1.91%	244	242
03/28/24	2.56%	8,000	-
12/14/26	2.65%	379	-
Overnight	2.03%	-	66,550
TOTAL		$                          44,908	$                             76,652
Weighted-average rate		2.42%	2.18%

Of the advances outstanding at June 30, 2019, none were callable by the FHLB rior to maturity.  In addition to the above advances, the Bank had an available line of credit amounting to $320.1 million and $267.0 million with the FHLB at June 30, 2019 and 2018, respectively, with none being drawn at both period ends.

Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate and one- to four-family mortgage loans pledged.  To secure outstanding advances and the Bank’s line of credit, loans totaling $754.4 million and $706.2 million were pledged to the FHLB at June 30, 2019 and 2018, respectively. The principal maturities of FHLB advances at June 30, 2018, are below:

	June 30, 2019
FHLB Advance Maturities	(dollars in thousands)
July 1, 2019 to June 30, 2020	$                               2,934
July 1, 2020 to June 30, 2021	12,391
July 1, 2021 to June 30, 2022	21,204
July 1, 2022 to June 30, 2023	-
July 1, 2023 to June 30, 2024	8,000
July 1, 2024 to thereafter	379
TOTAL	$                             44,908

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Note 2: Available for Sale Securities: Repurchase Agreements, Collateral, Policy (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Assets Sold under Agreements to Repurchase, Carrying Amount	$ 143,700	$ 124,200
Gain Recognized from Sales of Available for Sale Securities	265,450	491,500
Loss Recognized from Sale of Available for Sale Securities	21,576	157,105
Fair Value of Debt Securities Reported Less Than Their Historical Cost	$ 51,800	$ 124,900
Debt Securities Reported Less Than Their Historical Cost Percent of Investment Portfolio	31.30%	85.40%
U.S. Government and Federal Agency Obligations
Assets Sold under Agreements to Repurchase, Carrying Amount	$ 5,600	$ 8,400
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Assets Sold under Agreements to Repurchase, Carrying Amount	47,300	39,800
Collateralized Mortgage Obligations
Assets Sold under Agreements to Repurchase, Carrying Amount	55,700	41,500
US States and Political Subdivisions Debt Securities
Assets Sold under Agreements to Repurchase, Carrying Amount	34,900	34,200
Other securities
Assets Sold under Agreements to Repurchase, Carrying Amount	$ 300	$ 300

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NOTE 16: Earnings Per Share

12 Months Ended

Jun. 30, 2019

Notes

NOTE 16: Earnings Per Share

NOTE 16:  Earnings Per Share

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

	Year Ended June 30,
(dollars in thousands except per share data)	2019	2018	2017
Net income	$                        28,904	$                        20,929	$                        15,552
Denominator for basic earnings per share -
Weighted-average shares outstanding	9,193,235	8,734,334	7,483,350
Effect of dilutive securities stock options or awards	10,674	11,188	27,530
Denominator for diluted earnings per share	9,203,909	8,745,522	7,510,880
Basic earnings per share available to common stockholders	$                            3.14	$                            2.40	$                            2.08
Diluted earnings per share available to common stockholders	$                            3.14	$                            2.39	$                            2.07

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NOTE 20: Condensed Parent Company Only Financial Statements

12 Months Ended

Jun. 30, 2019

Notes

NOTE 20: Condensed Parent Company Only Financial Statements

NOTE 20:  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)	2019	2018
Condensed Balance Sheets
Assets
Cash and cash equivalents	$                 8,149	$                 8,383
Other assets	13,438	13,434
Investment in common stock of Bank	234,716	197,863
TOTAL ASSETS	$             256,303	$             219,680
Liabilities and Stockholders' Equity
Accrued expenses and other liabilities	$                 2,868	$                 4,041
Subordinated debt	15,043	14,945
TOTAL LIABILITIES	17,911	18,986
Stockholders' equity	238,392	200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$             256,303	$             219,680

	Year ended June 30,
(dollars in thousands)	2019	2018	2017
Condensed Statements of Income
Interest income	$                      25	$                      20	$                      17
Interest expense	1,079	887	661
Net interest expense	(1,054)	(867)	(644)
Dividends from Bank	23,000	6,000	4,000
Operating expenses	827	940	955
Income before income taxes and
equity in undistributed income of the Bank	21,119	4,193	2,401
Income tax benefit	358	437	455
Income before equity in undistributed
income of the Bank	21,477	4,630	2,856
Equity in undistributed income of the Bank	7,427	16,299	12,696
NET INCOME	$               28,904	$               20,929	$               15,552
COMPREHENSIVE INCOME	$               32,496	$               18,057	$               14,417

	Year ended June 30,
(dollars in thousands)	2019	2018	2017
Condensed Statements of Cash Flow
Cash Flows from operating activities:
Net income	$               28,904	$               20,929	$               15,552
Changes in:
Equity in undistributed income of the Bank	(7,427)	(16,299)	(12,696)
Other adjustments, net	(635)	40	412
NET CASH PROVIDED BY OPERATING ACTIVITES	20,842	4,670	3,268
Cash flows from investing activities:
Investments in Bank subsidiaries	(10,747)	(3,488)	(11,062)
NET CASH USED IN INVESTING ACTIVITIES	(10,747)	(3,488)	(11,062)
Cash flows from financing activities:
Dividends on common stock	(4,763)	(3,827)	(2,981)
Exercise of stock options	-	172	61
Payments to acquire treasury stock	(1,166)	-	-
Proceeds from issuance of common stock	-	-	24,144
Proceeds from issuance of long term debt	-	-	15,000
Repayments of long term debt	(4,400)	-	(15,650)
Injection of capital to subsidiary	-	-	(6,000)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(10,329)	(3,655)	14,574
Net increase (decrease) in cash and cash equivalents	(234)	(2,473)	6,780
Cash and cash equivalents at beginning of year	8,383	10,856	4,076
CASH AND CASH EQUIVALENTS AT END OF YEAR	$                 8,149	$                 8,383	$               10,856

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NOTE 3: Loans and Allowance for Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Loans Receivable, Gross
Loans Receivable	$ 1,909,464	$ 1,628,127
Loans in Process
Loans Receivable	(43,153)	(46,533)
Deferred loan fees, net
Loans Receivable	(3)	0
SEC Schedule, 12-09, Allowance, Loan and Lease Loss
Loans Receivable	(19,903)	(18,214)
Loans Receivable, Net
Loans Receivable	1,846,405	1,563,380
Consumer Loan
Loans Receivable	97,534	78,571
Commercial Loan
Loans Receivable	355,874	281,272
Residential Mortgage
Loans Receivable	491,992	450,919
Construction Real Estate
Loans Receivable	123,287	112,718
Commercial Real Estate
Loans Receivable	$ 840,777	$ 704,647

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NOTE 5: Premises and Equipment: Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Details
Land	$ 12,414	$ 12,152
Buildings and improvements	54,304	46,802
Construction in progress	466	4
Furniture, fixtures, equipment and software	16,514	13,680
Automobiles	107	81
Property, Plant and Equipment, Gross	83,805	72,719
Less accumulated depreciation	21,078	17,887
Premises and equipment, net (Note 5)	$ 62,727	$ 54,832

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NOTE 3: Loans and Allowance for Loan Losses: Foreclosed Real Estate Held (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Repossessed Assets	$ 752	$ 802
Home Equity Loan
Foreclosure Proceedings in Process	331	331
Residential Real Estate
Foreclosure Proceedings in Process	$ 493	$ 493

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NOTE 7: Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned	$ 4,400	$ 3,300
U.S. Government and Federal Agency Obligations
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned	0	1,200
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Carrying Value of Securities Sold under Repurchase Agreements and Deposits Received for Securities Loaned	$ 5,800	$ 3,400

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NOTE 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Fair Value, Assets Measured on Recurring Basis

	Fair Value Measurements at June 30, 2019, Using:
		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
(dollars in thousands)	Fair Value	(Level 1)	(Level 2)	(Level 3)
U.S. government sponsored enterprises (GSEs)	$                 7,270	$                         -	$                 7,270	$                         -
State and political subdivisions	42,783	-	42,783	-
Other securities	5,053	-	5,053	-
Mortgage-backed GSE residential	110,429	-	110,429	-

	Fair Value Measurements at June 30, 2018, Using:
		Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
(dollars in thousands)	Fair Value	(Level 1)	(Level 2)	(Level 3)
U.S. government sponsored enterprises (GSEs)	$                 9,385	$                         -	$                 9,385	$                         -
State and political subdivisions	41,612	-	41,612	-
Other securities	5,152	-	5,152	-
Mortgage-backed GSE residential	90,176	-	90,176	-

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NOTE 16: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Details
Net income	$ 28,904	$ 20,929	$ 15,552
Weighted-average shares outstanding	9,193,235	8,734,334	7,483,350
Effect of dilutive securities stock options or awards	10,674	11,188	27,530
Denominator for diluted earnings per share	9,203,909	8,745,522	7,510,880
Basic earnings per share available to common stockholders	$ 3.14	$ 2.40	$ 2.08
Diluted earnings per share available to common stockholders	$ 3.14	$ 2.39	$ 2.07

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Note 2: Available for Sale Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value

	Less than 12 months		12 months or more		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2019	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$                   -	$                   -	$           6,969	$                15	$           6,969	$                15
Obligations of state and political subdivisions	-	-	8,531	68	8,531	68
Other securities	-	-	985	198	985	198
Mortgage-backed securities	1,175	1	34,148	316	35,323	317
Total investments and mortgage-backed securities	$           1,175	$                  1	$         50,633	$              597	$         51,808	$              598

	Less than 12 months		12 months or more		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2018	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$           5,957	$                58	$           3,427	$                70	$           9,384	$              128
Obligations of state and political subdivisions	14,861	224	8,526	256	23,387	480
Other securities	982	10	1,109	183	2,091	193
Mortgage-backed securities	65,863	1,513	24,187	1,020	90,050	2,533
Total investments and mortgage-backed securities	$         87,663	$           1,805	$         37,249	$           1,529	$       124,912	$           3,334

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NOTE 12: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

(dollars in thousands)	June 30, 2019	June 30, 2018
Deferred tax assets:
Provision for losses on loans	$                                               4,601	$                                4,418
Accrued compensation and benefits	692	708
NOL carry forwards acquired	199	273
Minimum Tax Credit	130	130
Unrealized loss on other real estate	134	124
Unrealized loss on available for sale securities	-	730
Purchase accounting adjustments	255	-
Losses and credits from LLC's	1,206	1,003
Total deferred tax assets	7,218	7,386
Deferred tax liabilities:
Purchase accounting adjustments	-	949
Depreciation	1,749	1,475
FHLB stock dividends	120	130
Prepaid expenses	313	98
Unrealized gain on available for sale securities	364	-
Other	61	327
Total deferred tax liabilities	2,607	2,979
Net deferred tax asset	$                                               4,611	$                                4,407

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NOTE 12: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Details
Deferred Tax Assets Provision for Losses on Loans	$ 4,601	$ 4,418
Deferred Tax Assets Accrued Compensation and Benefits	692	708
Deferred Tax Assets NOL Carry Forwards Acquired	199	273
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	130	130
Deferred Tax Assets Unrealized Loss on Other Real Estate	134	124
Unrealized loss on available for sale securities	0	730
Deferred Tax Assets Purchase Accounting Adjustments	255	0
Losses and credits from LLC's	1,206	1,003
Deferred Tax Assets, Gross	7,218	7,386
Deferred Tax Liabilities Purchase Accounting Adjustments	0	949
Depreciation	1,749	1,475
Deferred Tax Liabilities FHLB Stock Dividends	120	130
Deferred Tax Liabilities, Prepaid Expenses	313	98
Other	61	327
Deferred Tax Liabilities, Net	2,607	2,979
Deferred Tax Assets, Net of Valuation Allowance	$ 4,611	$ 4,407

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NOTE 11: Employee Benefits: 2008 Equity Incentive Plan Policy (Policies)

12 Months Ended

Jun. 30, 2019

Policies

2008 Equity Incentive Plan Policy

2008 Equity Incentive Plan. The Company adopted an Equity Incentive Plan (EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares were available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. The committee held the power to set vesting requirements for each award under the EIP. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the EIP. During fiscal 2012, the Company awarded 73,928 shares (split-adjusted); during fiscal 2014, the Company awarded 24,000 shares (split-adjusted); during fiscal 2015, the Company awarded 8,000 shares (split-adjusted); during fiscal 2016, the Company awarded 3,750 shares; and during fiscal 2017, the Company awarded 13,125 shares. No awards were made under the plan in fiscal 2019 or 2018. All EIP awards were in the form of either restricted stock vesting at the rate of 20% of such shares per year, or performance-based restricted stock vesting at up to of 20% of such shares per year, contingent on the achievement of specified profitability targets over a three-year period. During fiscal 2019, 2018, and 2017, there were 7,100, 5,400, and 21,200 EIP shares (split-adjusted) vested each year, 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 five years during which the shares vest. The EIP expense for fiscal 2019, 2018, and 2017 was $141,000, $165,000, and $284,000, respectively. At June 30, 2019, unvested compensation expense related to the EIP was approximately $247,000.

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NOTE 15: Commitments and Credit Risk: Standby Letters of Credit (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Standby Letters of Credit

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 $2.6 million at June 30, 2019, and $2.5 million at June 30, 2018, with terms ranging from 12 to 24 months. At June 30, 2019, the Company’s deferred revenue under standby letters of credit agreements was nominal.

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Note 13: Accumulated Other Comprehensive Income (AOCI): Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Less: reclassification adjustment for realized gains included in net income	$ 244	$ 334	$ 0
Reclassification out of Accumulated Other Comprehensive Income
Less: reclassification adjustment for realized gains included in net income	234	290
Reclassification out of Accumulated Other Comprehensive Income | Net Realized Gains on Sale of AFS Securities
Available-for-sale Securities, Gross Unrealized Gain	244	334
Reclassification out of Accumulated Other Comprehensive Income | Compensation and Benefits Included in Computation of Net Periodic Pension Costs
Defined Benefit Plan, Amortization of Gain (Loss)	(10)	(44)
Reclassification out of Accumulated Other Comprehensive Income | Provision for Income Tax
Reclassification from AOCI, Current Period, Tax	49	81
Reclassification out of Accumulated Other Comprehensive Income | Net Income
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	$ 185	$ 209

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NOTE 14: Stockholders' Equity and Regulatory Capital: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Tables)

12 Months Ended

Jun. 30, 2019

Tables/Schedules

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

	Actual		For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2019	Amount	Ratio	Amount	Ratio	Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$          256,982	13.22%	$          155,536	8.00%	n/a	n/a
Southern Bank	247,199	12.81%	154,364	8.00%	192,954	10.00%
Tier I Capital (to Risk-Weighted Assets)
Consolidated	235,768	12.13%	116,652	6.00%	n/a	n/a
Southern Bank	225,985	11.71%	115,773	6.00%	154,364	8.00%
Tier I Capital (to Average Assets)
Consolidated	235,768	10.81%	87,231	4.00%	n/a	n/a
Southern Bank	225,985	10.38%	87,077	4.00%	108,846	5.00%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated	220,725	11.35%	87,489	4.50%	n/a	n/a
Southern Bank	225,985	11.71%	86,829	4.50%	125,420	6.50%

	Actual		For Capital Adequacy Purposes		To Be Well Capitalized Under Prompt Corrective Action Provisions
As of June 30, 2018	Amount	Ratio	Amount	Ratio	Amount	Ratio
(dollars in thousands)
Total Capital (to Risk-Weighted Assets)
Consolidated	$          222,133	13.53%	$          131,335	8.00%	n/a	n/a
Southern Bank	214,804	13.18%	130,337	8.00%	162,921	10.00%
Tier I Capital (to Risk-Weighted Assets)
Consolidated	202,756	12.35%	98,501	6.00%	n/a	n/a
Southern Bank	195,427	12.00%	97,753	6.00%	130,337	8.00%
Tier I Capital (to Average Assets)
Consolidated	202,756	10.97%	73,932	4.00%	n/a	n/a
Southern Bank	195,427	10.60%	73,721	4.00%	92,152	5.00%
Common Equity Tier I Capital (to Risk-Weighted Assets)
Consolidated	188,416	11.48%	73,876	4.50%	n/a	n/a
Southern Bank	195,427	12.00%	73,315	4.50%	105,899	6.50%

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Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Total	Stockholders' Equity, Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	AOCI Attributable to Parent
Equity Balance at Jun. 30, 2016			$ 125,966	$ 74	$ 34,432	$ 89,798	$ 0	$ 1,662
Net Income			15,552			15,552
Change in unrealized gain on available for sale securities			(1,148)					(1,148)
Defined benefit pension plan net loss		$ 13	13					13
Dividends paid on common stock	[1]		(2,981)			(2,981)
Stock option expense			11		11
Stock grant expense			274		274
Tax benefit of stock grants			225		225
Exercise of stock options		61	61		61
Common stock issued value		(24,144)	35,110	12	35,098
Equity Balance at Jun. 30, 2017			173,083	86	70,101	102,369	0	527
Net Income			20,929			20,929
Change in unrealized gain on available for sale securities			(2,763)			65		(2,828)
Defined benefit pension plan net loss		(44)	(44)					(44)
Dividends paid on common stock	[2]		(3,827)			(3,827)
Stock option expense			22		22
Stock grant expense			171		171
Exercise of stock options		172	172		172
Common stock issued value		0	12,951	4	12,947
Equity Balance at Jun. 30, 2018			200,694	90	83,413	119,536	0	(2,345)
Net Income			28,904			28,904
Change in unrealized gain on available for sale securities			3,602					3,602
Defined benefit pension plan net loss		(10)	(10)					(10)
Dividends paid on common stock	[3]		(4,763)			(4,763)
Stock option expense			51		51
Stock grant expense			323		323
Exercise of stock options		0
Common stock issued value		$ 0	10,757	3	10,754
Equity Balance at Jun. 30, 2019			238,392	$ 93	$ 94,541	$ 143,677	(1,166)	$ 1,247
Treasury stock purchased			$ (1,166)				$ (1,166)

[1] $.40 per share

[2] $.44 per share

[3] $.52 per share

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Assets
Cash and cash equivalents	$ 35,400	$ 26,326
Interest-bearing time deposits	969	1,953
Available for sale securities (Note 2)	165,535	146,325
Stock in FHLB of Des Moines	5,233	5,661
Stock in Federal Reserve Bank of St. Louis	4,350	3,566
Loans receivable, net of allowance for loan losses of $19,903 and $18,214 at June 30, 2019 and June 30, 2018, respectively (Notes 3 and 4)	1,846,405	1,563,380
Accrued interest receivable	10,189	7,992
Premises and equipment, net (Note 5)	62,727	54,832
Bank owned life insurance - cash surrender value	38,337	37,547
Goodwill	14,089	13,078
Other intangible assets, net	9,239	6,918
Prepaid expenses and other assets	21,929	18,537
TOTAL ASSETS	2,214,402	1,886,115
Liabilities and Stockholders' Equity
Deposits (Note 6)	1,893,695	1,579,902
Securities sold under agreements to repurchase (Note 7)	4,376	3,267
Advances from FHLB of Des Moines (Note 8)	44,908	76,652
Note payable (Note 9)	3,000	3,000
Accounts payable and other liabilities	12,889	6,449
Accrued interest payable	2,099	1,206
Subordinated debt (Note 10)	15,043	14,945
TOTAL LIABILITIES	1,976,010	1,685,421
Commitments and contingencies (Note 15)	0	0
Common stock, $.01 par value; 25,000,000 and 12,000,000 shares authorized; 9,324,659 and 8,996,584 shares issued, respectively, at June 30, 2019 and June 30, 2018	93	90
Additional paid-in capital	94,541	83,413
Retained earnings	143,677	119,536
Treasury stock of 35,351 and 0 shares at June 30, 2019 and June 30, 2018, respectively, at cost	(1,166)	0
Accumulated other comprehensive income (loss)	1,247	(2,345)
TOTAL STOCKHOLDERS' EQUITY	238,392	200,694
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,214,402	$ 1,886,115

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NOTE 1: Organization and Summary of Significant Accounting Policies: Stock Options (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Stock Options

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.

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NOTE 1: Organization and Summary of Significant Accounting Policies: Goodwill (Policies)

12 Months Ended

Jun. 30, 2019

Policies

Goodwill

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 financial statements.  As of June 30, 2019 and 2018, there was no impairment indicated.