UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2026

OR

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

For the transition period from        to

Commission file number   0-23406

Southern Missouri Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Missouri	43-1665523
(State or jurisdiction of incorporation)	(IRS employer id. no.)
2991 Oak Grove Road Poplar Bluff, MO	63901
(Address of principal executive offices)	(Zip code)

(573) 778-1800

Registrant’s telephone number, including area code

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

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common	SMBC	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted 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 registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer	☐	Accelerated filer	☒	Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12 b-2 of the Exchange Act)

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date:

Class	Outstanding at May 8, 2026
Common Stock, Par Value $.01	11,015,632 shares

SOUTHERN MISSOURI BANCORP, INC.

FORM 10-Q

INDEX

PART I.	Financial Information	PAGE NO.
Item 1.	Condensed Consolidated Financial Statements	3
	-   Condensed Consolidated Balance Sheets	3
	-   Condensed Consolidated Statements of Income	4
	-   Condensed Consolidated Statements of Comprehensive Income	5
	-   Condensed Consolidated Statements of Stockholders’ Equity	6
	-   Condensed Consolidated Statements of Cash Flows	7
	-   Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	63
Item 4.	Controls and Procedures	66
PART II.	OTHER INFORMATION	67
Item 1.	Legal Proceedings	67
Item 1a.	Risk Factors	67
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 3.	Defaults upon Senior Securities	67
Item 4.	Mine Safety Disclosures	67
Item 5.	Other Information	67
Item 6.	Exhibits	69
	-  Signature Page	71

PART I: Item 1:  Condensed Consolidated Financial Statements

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

MARCH 31, 2026 AND JUNE 30, 2025

	March 31, 2026		June 30, 2025
(dollars in thousands)	(unaudited)
Assets
Cash and cash equivalents	$	93,038	$	192,859
Interest-bearing time deposits		248		246
Available for sale securities		439,115		460,844
Stock in FHLB of Des Moines		9,714		9,361
Stock in Federal Reserve Bank of St. Louis		9,149		9,139
Loans held for sale		1,033		431
Loans receivable, net of ACL of $55,937 and $51,629 at March 31, 2026 and June 30, 2025, respectively		4,266,423		4,048,961
Accrued interest receivable		28,093		26,018
Premises and equipment, net		93,366		95,982
Bank owned life insurance – cash surrender value		77,155		75,691
Goodwill		50,727		50,727
Other intangible assets, net		20,602		22,994
Prepaid expenses and other assets		52,801		26,354
Total assets	$	5,141,464	$	5,019,607
Liabilities and Stockholders' Equity
Deposits	$	4,340,915	$	4,281,368
Securities sold under agreements to repurchase		20,000		15,000
Advances from FHLB		105,033		104,052
Accounts payable and other liabilities		67,110		37,101
Accrued interest payable		11,648		14,186
Subordinated debt		23,248		23,208
Total liabilities		4,567,954		4,474,915
Commitments and contingencies
Common stock, $.01 par value; 25,000,000 shares authorized; 12,009,402 and 11,980,887 shares issued at March 31, 2026 and June 30, 2025, respectively		120		120
Additional paid-in capital		222,969		221,347
Retained earnings		402,750		359,576
Treasury stock of 994,290 and 681,420 shares at March 31, 2026 and June 30, 2025, respectively, at cost		(43,259)		(24,973)
Accumulated other comprehensive loss		(9,070)		(11,378)
Total stockholders' equity		573,510		544,692
Total liabilities and stockholders' equity	$	5,141,464	$	5,019,607

See Notes to Condensed Consolidated Financial Statements

-3-

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

FOR THE THREE- AND NINE- MONTH PERIODS ENDED MARCH 31, 2026 AND 2025 (Unaudited)

	Three months ended				Nine months ended
	March 31,				March 31,
(dollars in thousands except per share data)	2026		2025		2026		2025
Interest Income
Loans	$	65,398	$	62,656	$	197,832	$	187,492
Investment securities		1,195		1,368		3,765		4,472
Mortgage-backed securities		3,707		4,316		11,791		12,317
Other interest-earning assets		659		1,585		2,833		2,447
Total interest income		70,959		69,925		216,221		206,728
Interest Expense
Deposits		26,172		28,795		82,811		87,129
Securities sold under agreements to repurchase		200		189		604		575
Advances from FHLB		1,070		1,076		3,231		3,501
Subordinated debt		362		386		1,132		1,239
Total interest expense		27,804		30,446		87,778		92,444
Net Interest Income		43,155		39,479		128,443		114,284
Provision for Credit Losses		2,080		932		8,260		4,023
Net Interest Income After Provision for Credit Losses		41,075		38,547		120,183		110,261
Noninterest Income
Deposit account charges and related fees		2,331		2,048		7,125		6,469
Bank card interchange income		1,592		1,341		4,736		4,142
Loan servicing fees		245		224		759		741
Other loan fees		27		843		385		2,851
Net realized gains on sale of loans		226		114		568		608
Net realized gains on sale of AFS securities		—		48		—		48
Earnings on bank owned life insurance		677		512		1,777		1,551
Insurance brokerage commissions		353		340		1,017		927
Wealth management fees		944		902		2,732		2,475
Other income		695		294		1,341		893
Total noninterest income		7,090		6,666		20,440		20,705
Noninterest Expense
Compensation and benefits		14,054		13,771		40,770		41,906
Occupancy and equipment, net		4,040		3,869		11,662		11,143
Data processing expense		2,770		2,359		7,950		6,754
Telecommunications expense		308		330		964		1,111
Deposit insurance premiums		495		674		1,715		1,734
Legal and professional fees		521		603		2,074		2,430
Advertising		553		530		1,705		1,518
Postage and office supplies		373		350		1,006		939
Intangibles amortization		709		889		2,374		2,683
Foreclosed property expenses/losses		108		37		198		123
Other operating expense		2,292		1,979		6,127		5,768
Total noninterest expense		26,223		25,391		76,545		76,109
Income Before Income Taxes		21,942		19,822		64,078		54,857
Total Income Taxes		4,181		4,139		12,518		12,065
Net Income	$	17,761	$	15,683	$	51,560	$	42,792
Basic earnings per share	$	1.60	$	1.39	$	4.61	$	3.79
Diluted earnings per share	$	1.60	$	1.39	$	4.59	$	3.79
Dividends paid per share	$	0.25	$	0.23	$	0.75	$	0.69

See Notes to Condensed Consolidated Financial Statements

-4-

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE- AND NINE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025 (Unaudited)

	Three months ended				Nine months ended
	March 31,				March 31,
(dollars in thousands)	2026		2025		2026		2025
Net Income	$	17,761	$	15,683	$	51,560	$	42,792
Other comprehensive (loss) income:
Unrealized (losses) gains on securities available-for-sale		(553)		3,175		2,959		4,488
Less: reclassification adjustment for realized gains included in net income		—		48		—		48
Tax benefit (expense)		122		(688)		(651)		(977)
Total other comprehensive (loss) income		(431)		2,439		2,308		3,463
Comprehensive Income	$	17,330	$	18,122	$	53,868	$	46,255

See Notes to Condensed Consolidated Financial Statements

-5-

SOUTHERN MISSOURI BANCORP, INC

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE THREE- AND NINE-MONTH PERIODS ENDED MARCH 31, 2026 AND 2025 (Unaudited)

	For the three- and nine-month periods ended March 31, 2026
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury			Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Loss		Equity
BALANCE AS OF DECEMBER 31, 2025	$	120	$	221,589	$	387,766	$	(33,476)	$	(8,639)	$	567,360
Net Income						17,761						17,761
Change in unrealized loss on available for sale securities										(431)		(431)
Dividends paid on common stock ($.25 per share)						(2,777)						(2,777)
Stock option expense				108								108
Stock grant expense				956								956
Stock options exercised				316								316
Common stock issued												—
Treasury stock purchased								(9,783)				(9,783)
BALANCE AS OF MARCH 31, 2026	$	120	$	222,969	$	402,750	$	(43,259)	$	(9,070)	$	573,510
BALANCE AS OF JUNE 30, 2025	$	120	$	221,347	$	359,576	$	(24,973)	$	(11,378)	$	544,692
Net Income						51,560						51,560
Change in unrealized loss on available for sale securities										2,308		2,308
Dividends paid on common stock ($.75 per share)						(8,386)						(8,386)
Stock option expense				311								311
Stock grant expense				995								995
Stock options exercised				316								316
Common stock issued												—
Treasury stock purchased								(18,286)				(18,286)
BALANCE AS OF MARCH 31, 2026	$	120	$	222,969	$	402,750	$	(43,259)	$	(9,070)	$	573,510

	For the three- and nine-month periods ended March 31, 2025
			Additional						Accumulated Other		Total
	Common		Paid-In		Retained		Treasury		Comprehensive		Stockholders'
(dollars in thousands)	Stock		Capital		Earnings		Stock		Loss		Equity
BALANCE AS OF DECEMBER 31, 2024	$	120	$	220,358	$	333,297	$	(24,973)	$	(16,431)	$	512,371
Net Income						15,683						15,683
Change in unrealized loss on available for sale securities										2,439		2,439
Dividends paid on common stock ($.23 per share)						(2,595)						(2,595)
Stock option expense				93								93
Stock grant expense				799								799
BALANCE AS OF MARCH 31, 2025	$	120	$	221,250	$	346,385	$	(24,973)	$	(13,992)	$	528,790
BALANCE AS OF JUNE 30, 2024	$	120	$	219,680	$	311,376	$	(24,973)	$	(17,455)	$	488,748
Net Income						42,792						42,792
Change in unrealized loss on available for sale securities										3,463		3,463
Dividends paid on common stock ($.69 per share)						(7,783)						(7,783)
Stock option expense				272								272
Stock grant expense				1,298								1,298
BALANCE AS OF MARCH 31, 2025	$	120	$	221,250	$	346,385	$	(24,973)	$	(13,992)	$	528,790

See Notes to Condensed Consolidated Financial Statements

-6-

SOUTHERN MISSOURI BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE- MONTH PERIODS ENDED MARCH 31, 2026 AND 2025 (Unaudited)

	Nine months ended
	March 31,
(dollars in thousands)	2026		2025
Cash Flows From Operating Activities:
Net Income	$	51,560	$	42,792
Items not requiring (providing) cash:
Depreciation		4,907		4,866
Loss on disposal of fixed assets		—		72
Stock option and stock grant expense		1,306		1,570
Loss (gain) on sale/write-down of foreclosed property		77		(29)
Amortization of intangible assets		2,374		2,683
Accretion of purchase accounting adjustments		(1,824)		(3,348)
Increase in cash surrender value of bank owned life insurance (BOLI)		(1,777)		(1,551)
Provision for credit losses		8,260		4,023
Gain realized on sale of AFS securities		—		(48)
Net amortization of premiums and discounts on securities		(616)		(1,161)
Originations of loans held for sale		(22,028)		(14,131)
Proceeds from sales of loans held for sale		21,994		14,815
Gain on sales of loans held for sale		(568)		(608)
Gain on sale of investment tax credit		(305)		—
Changes in:
Accrued interest receivable		(2,075)		(1,957)
Prepaid expenses and other assets		879		465
Accounts payable and other liabilities		5,840		8,647
Deferred income taxes		1,082		—
Accrued interest payable		(2,538)		(2,866)
Net cash provided by operating activities		66,548		54,234
Cash Flows From Investing Activities:
Net increase in loans		(225,582)		(172,472)
Net change in interest-bearing deposits		—		248
Proceeds from maturities of available for sale securities		56,194		49,902
Proceeds from sales of available for sale securities		—		72
Purchases of Federal Home Loan Bank stock		(1,979)		(444)
Redemptions of Federal Home Loan Bank stock		1,626		—
Purchases of Federal Reserve Bank of St. Louis stock		(10)		(23)
Purchases of available-for-sale securities		(30,890)		(79,352)
Purchases of long-term investments and other assets		(150)		(362)
Redemptions of long-term investments and other assets		432		—
Purchases of premises and equipment		(2,454)		(4,787)
Investments in state & federal tax credits		(3,957)		(1,934)
Proceeds from sale of foreclosed assets		564		2,785
Proceeds from sale of investment tax credits		315		—
Proceeds from BOLI claim		317		—
Net cash used in investing activities		(205,574)		(206,367)
Cash Flows From Financing Activities:
Net increase in demand deposits and savings accounts		94,442		47,076
Net (decrease) increase in certificates of deposits		(34,840)		271,265
Net increase in securities sold under agreements to repurchase		5,000		5,602
Proceeds from Federal Home Loan Bank advances		35,200		260,000
Repayments of Federal Home Loan Bank advances		(34,241)		(258,040)
Exercise of stock options		316		—
Purchases of treasury stock		(18,285)		—
Dividends paid on common stock		(8,387)		(7,783)
Net cash provided by financing activities		39,205		318,120
(Decrease) increase in cash and cash equivalents		(99,821)		165,987
Cash and cash equivalents at beginning of period		192,859		60,904
Cash and cash equivalents at end of period	$	93,038	$	226,891
Supplemental disclosures of cash flow information:
Noncash investing and financing activities:
Conversion of loans to foreclosed real estate	$	1,618	$	625
Conversion of loans to repossessed assets		165		74

-7-

Supplemental disclosures of cash flow information (CONTINUED):
Right of use (ROU) assets obtained in exchange for lease obligations: Operating Leases		163		—
Investment tax credits obtained in exchange for delayed capital contributions		28,582		—
Investment tax credits obtained in exchange for settlement of loans		500		—
Investment tax credits cancelled in exchange for sale of membership interest		4,855		—
Cash paid during the period for:
Interest (net of interest credited)	$	5,585	$	5,978
Income taxes		7,989		4,889

See Notes to Condensed Consolidated Financial Statements

-8-

SOUTHERN MISSOURI BANCORP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1:  Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (“SEC”) Regulation SX. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of June 30, 2025, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and nine- month periods ended March 31, 2026, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the Company’s June 30, 2025, Form 10-K, which was filed with the SEC.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Note 2:  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. The Bank has three active subsidiaries, SB Corning, LLC, SB Real Estate Investments, LLC, and Southern Insurance Services, LLC. In addition, the Bank has four inactive subsidiaries, Fortune Investment Group, LLC, Fortune Insurance Group, LLC, Fortune SBA, LLC, and SMS Financial Services, Inc. SB Corning, LLC represents investment in a limited partnership formed for the purpose of generating low income housing tax credits. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold a controlling interest in Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by SB Real Estate Investments, LLC, and has other preferred stockholders in order to meet the requirements to be a REIT. At March 31, 2026, assets of the REIT were approximately $1.4 billion, and consisted primarily of real estate loan participations acquired from the Bank.

The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities.

Basis of Financial Statement Presentation. The condensed consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate.

Regulatory risk is comprised of extensive state and federal laws and regulations designed primarily to protect consumers, depositors, and deposit insurance funds rather than stockholders. Changes in these regulations, actions by supervisory authorities, or significant litigation could impose operational restrictions, require substantial compliance resources, and/or result in penalties that may negatively impact our business and stockholder value.

-9-

Principles of Consolidation. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.

Use of Estimates. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.

Cash and Cash Equivalents. For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions, interest-bearing deposits in other depository institutions, and securities purchased under agreements to resell with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $38.1 million and $136.9 million at March 31, 2026, and June 30, 2025, respectively. Securities purchased under agreements to resell totaled $35.4 million and $25.2 million at March 31, 2026, and June 30, 2025, respectively, and are included in these totals. Other correspondent deposits are held in various commercial banks with a total of $1.8 million exceeding the FDIC’s deposit insurance limits at both March 31, 2026, and June 30, 2025, as well as at the Federal Reserve and the Federal Home Loan Banks of Des Moines and Chicago.

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

Available for Sale Securities. Available for sale securities (AFS), 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 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.

For AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security based on cash flow projections, and is recorded to the Allowance for Credit Losses (ACL), by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no charge to ACL in this situation.

The Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may change in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit-related factors underlying unrealized losses on AFS securities at March 31, 2026, or June 30, 2025.

-10-

Changes in the ACL are recorded as expense. Losses are charged against the ACL when management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Federal Reserve Bank and Federal Home Loan Bank Stock. The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment of the Bank based upon a predetermined formula and is carried at cost.

Loans Held for Sale. Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at the lower of aggregate cost or fair value, taking into consideration future commitments to sell the loans.

Loans. Loans are generally stated at unpaid principal balances, less the ACL, any net deferred loan origination fees, and unamortized premiums or discounts on purchased loans.

Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Because of this, accrued interest receivable is excluded from the estimate of credit losses. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through a provision for credit losses charged against current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.

Management estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics identified below in the qualitative factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and thereafter immediately reverts to long-term historical averages.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (DCF) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilizes the remaining life method. The Company does not measure ACL on accrued interest for those pools utilizing the remaining life method, as the uncollectible accrued interest receivable balance is written off within 90 days. The DCF model implements probability of default (PD) and loss given default (LGD) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over

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time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default in the ACL methodology, as an event of charge off, an adverse (substandard or worse) internal credit rating on most loan types, except agriculture production and agriculture real estate (watch or worse), becoming delinquent 90 days or more, being modified for experiencing financial difficulty, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.

As part of the CECL methodology, the Company incorporates qualitative adjustments to the ACL calculation to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

The qualitative adjustments considered include internal factors such as:

● Lending policies and procedures, including changes in underwriting standards, collection, charge-off, and recovery practices.

● Nature and volume of the portfolio and term of loans.

● Experience, depth, and ability of lending management.

● Volume and severity of past due loans and other similar conditions.

● Quality of the organization's review system.

● Existence and effect of any concentrations of credit and changes in the levels of concentrations.

Qualitative adjustments considered also include external factors such as:

● Value of underlying collateral for collateral-dependent loans.

● International, national, regional and local conditions, if not adequately addressed through the modeled loss factors.

● Effect of other external factors such as competition, legal and regulatory requirements.

Loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (PCD) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to non-credit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans.

Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans.

Off-Balance Sheet Credit Exposures. Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL for off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable.

Foreclosed Real Estate. Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis. Any costs for development and improvement of the property that are warranted are capitalized.

Valuations are periodically performed by management, and an allowance for losses is established by a charge against income if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.

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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 condensed 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 condensed consolidated statements of income.

Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that 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, 2025, the date of the Company’s annual test, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the market value of the Company’s common stock; concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations. There was no impairment of goodwill at March 31, 2026.

Intangible Assets. The Company’s intangible assets at March 31, 2026 included gross core deposit intangibles of $39.1 million with $23.3 million accumulated amortization, gross other identifiable intangibles of $6.6 million with accumulated amortization of $4.7 million, and mortgage and SBA servicing rights of $2.8 million. At June 30, 2025, the Company’s intangible assets included gross core deposit intangibles of $39.1 million with $21.1 million accumulated amortization, gross other identifiable intangibles of $6.4 million with accumulated amortization of $4.5 million, and mortgage and SBA servicing rights of $2.9 million. The Company’s core deposit and other intangible assets are being amortized using the straight line method, in accordance with ASC 350, over periods ranging from five to ten years, with amortization expense expected to be approximately $702,000 in the remainder of fiscal 2026, $2.7 million in fiscal 2027, $2.7 million in fiscal 2028, $2.7 million in fiscal 2029, $2.5 million in fiscal 2030, and $6.4 million thereafter. As of March 31, 2026, and June 30, 2025, there was no impairment of other intangible assets indicated.

The Company records mortgage servicing rights (MSR) at fair value for all mortgage loans sold on a servicing retained basis with subsequent adjustments to fair value of MSR in accordance with FASB ASC 860. An estimate of the fair value of the Company’s MSR is determined utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Changes in the fair value of MSR are recorded in loan servicing fees in the consolidated statements of income.

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.

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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 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, if any, on income taxes as a component of income tax expense.

The Company files consolidated income tax returns with its subsidiaries, the Bank and SB Real Estate Investments, LLC, with a tax year ended June 30. Southern Bank Real Estate Investments, LLC files a separate REIT return for federal tax purposes, and also files state income tax returns, with a tax year ended December 31.

Derivative Financial Instruments and Hedging Activities. The Company enters into derivative financial instruments, primarily interest rate swaps, to manage interest rate risk, facilitate asset/liability management strategies and manage other exposures. The Company’s derivative financial instruments also include interest swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. Derivative instruments are accounted pursuant to ASC Topic 815, “Derivatives and Hedging”, which requires companies to recognize derivative instruments as either assets or liabilities in the consolidated balance sheet. All derivative financial instruments are recognized as other assets or other liabilities, as applicable, at estimated fair value. The change in each of these financial statement line items is included as operating cash flows in the accompanying consolidated statements of cash flows. The Company does not speculate using derivative instruments. Derivative financial instruments are more fully described in Note 13.

Incentive Plans. The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plan (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.

Non-Employee Directors’ Retirement. The Bank entered into directors’ retirement agreements beginning in April 1994 for non-employee directors and continued to do so for new non-employee directors joining the Bank’s board through December 2014. These directors’ retirement agreements provide that each participating non-employee director (participant) shall receive, upon termination of service on the Board on or after age 60, other than termination for cause, a benefit in equal annual installments over a five year period. The benefit will be based upon the product of the participant’s vesting percentage and the total Board fees paid to the participant during the calendar year preceding termination of service on the Board. The vesting percentage shall be determined based upon the participant’s years of service on the Board.

In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. Benefits shall not be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary.

Stock Options. Compensation cost is measured based on the grant-date fair value of the equity instruments issued, and recognized over the vesting period during which an employee provides service in exchange for the award.

Earnings Per Share. Basic earnings per share available to common stockholders is computed using the weighted-average number of common shares outstanding. Diluted earnings per share available to common stockholders includes the effect of all weighted-average dilutive potential common shares (stock options and restricted stock grants) outstanding during each period.

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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 credit loss has been recognized in income, and changes in the funded status of defined benefit pension plans.

Transfers Between Fair Value Hierarchy Levels. Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs) and Level 3 (significant unobservable inputs) are recognized on the period ending date.

Wealth Management Assets and Fees. Assets managed in fiduciary or investment management accounts by the Company are not included in the consolidated balance sheets since such items are not assets of the Company or its subsidiaries. Fees from fiduciary or investment management activities are recorded on a cash basis over the period in which the service is provided. Fees are generally a function of the market value of assets managed and administered, the volume of transactions, and fees for other services rendered, as set forth in the agreement between the customer and the Company. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on asset valuations and transaction volumes. Any out-of-pocket expenses or services not typically covered by the fee schedule for fiduciary activities are charged directly to the account on a gross basis as revenue is incurred. The Southern Wealth Management division, which is a division of the Bank, held fiduciary assets totaling $111.3 million and $107.6 million as of March 31, 2026, and June 30, 2025, respectively, and investment management assets totaling $591.7 million and $538.2 million as of March 31, 2026, and June 30, 2025, respectively.

New Accounting Pronouncements:

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. The amendments in this update do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments. The amendments of this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company adopted this ASU for the fiscal year beginning July 1, 2024, and the accounting and disclosure of this ASU did not have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 was issued to address requests by investors and creditors for enhanced transparency and decision usefulness of income tax disclosures. Public business entities (PBEs) would be required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdictions that result in significant differences between the statutory and effective tax rates. All entities would be required to annually disclose taxes paid disaggregated by federal, state, and foreign taxes, as well as disaggregating taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. The ASU is effective for PBEs for fiscal years beginning after December 15, 2024. The Company is evaluating the impact of the adoption of ASU 2023-09.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”. ASU 2024-03 was issued to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, SG&A, and research and development). The ASU is effective for PBEs for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the impact of the adoption of ASU 2024-03.

In November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which amends the accounting for acquired loans by introducing a category of purchased seasoned loans and expanding the use of the gross-up approach, requiring qualifying acquired loans to be recorded at purchase price plus an allowance for expected credit losses rather than recognizing a Day-1 provision through earnings. ASU 2025-08 is

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effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, and is to be applied prospectively, with early adoption permitted. The Company is evaluating the impact of adoption, including the potential effect on the accounting for loans acquired in future acquisitions.

In November 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements,” which updates the hedge accounting guidance to improve alignment between hedge accounting and an entity’s risk management activities and to clarify and simplify the application of certain hedge accounting requirements. ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2025-09 on its financial statements and related disclosures, including its accounting for existing interest rate hedging relationships.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements”. This ASU does not change the overall purpose of interim reporting or alter the scope of existing disclosure requirements; rather, the ASU is intended to provide more clarity and make interim disclosure requirements under Topic 270 easier to navigate. The ASU also requires entities to disclose events occurring after the end of the most recent annual reporting period that have a material impact on the entity. The ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact the adoption of ASU 2025-11 will have on the Company’s interim consolidated financial statements and disclosures.

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Note 3:  Available for Sale Securities

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

	March 31, 2026
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt securities:
Obligations of states and political subdivisions	$	25,635	$	21	$	(1,240)	$	—	$	24,416
Corporate obligations		28,556		136		(268)		—		28,424
Asset-backed securities		38,827		447		(143)		—		39,131
Other securities		3,199		10		(44)		—		3,165
Total debt securities		96,217		614		(1,695)		—		95,136
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		130,951		1,837		(4,239)		—		128,549
Commercial MBS issued by GSEs		103,740		419		(4,350)		—		99,809
CMOs issued by GSEs		119,799		295		(4,473)		—		115,621
Total MBS and CMOs		354,490		2,551		(13,062)		—		343,979
Total AFS securities	$	450,707	$	3,165	$	(14,757)	$	—	$	439,115

	June 30, 2025
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt securities:
Obligations of states and political subdivisions	$	26,030	$	5	$	(1,772)	$	—	$	24,263
Corporate obligations		31,199		75		(632)		—		30,642
Asset-backed securities		42,059		567		(145)		—		42,481
Other securities		4,007		10		(53)		—		3,964
Total debt securities		103,295		657		(2,602)		—		101,350
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		138,377		1,623		(5,005)		—		134,995
Commercial MBS issued by GSEs		96,377		446		(4,821)		—		92,002
CMOs issued by GSEs		137,346		402		(5,251)		—		132,497
Total MBS and CMOs		372,100		2,471		(15,077)		—		359,494
Total AFS securities	$	475,395	$	3,128	$	(17,679)	$	—	$	460,844

The amortized cost and estimated 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.

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	March 31, 2026
	Amortized		Estimated
(dollars in thousands)	Cost		Fair Value
Within one year	$	7,058	$	7,075
After one year but less than five years		24,539		24,376
After five years but less than ten years		29,657		28,616
After ten years		34,963		35,069
Total investment securities		96,217		95,136
MBS and CMOs		354,490		343,979
Total AFS securities	$	450,707	$	439,115

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $272.3 million and $294.3 million at March 31, 2026, and June 30, 2025, respectively. The securities pledged consisted of marketable securities, including $164.5 million and $151.6 million of MBS, $87.5 million and $109.8 million of CMOs, $19.3 million and $29.7 million of State and Political Subdivisions Obligations, and $934,000 and $3.3 million of Other Securities at March 31, 2026, and June 30, 2025, respectively.

During the nine-month period ended March 31, 2025, gross gains of $48,000 and no gross losses were recognized from sales of available-for-sale securities.

The following tables show the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at March 31, 2026, and June 30, 2025:

	March 31, 2026
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	5,033	$	32	$	12,868	$	1,208	$	17,901	$	1,240
Corporate obligations		5,697		39		7,187		229		12,884		268
Asset-backed securities		12,274		28		867		115		13,141		143
Other securities		—		—		2,880		44		2,880		44
MBS and CMOs		37,460		125		149,735		12,937		187,195		13,062
Total AFS securities	$	60,464	$	224	$	173,537	$	14,533	$	234,001	$	14,757

	June 30, 2025
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	4,882	$	84	$	15,807	$	1,688	$	20,689	$	1,772
Corporate obligations		1,936		6		18,194		626		20,130		632
Asset-backed securities		3,281		2		839		143		4,120		145
Other securities		15		—		3,578		53		3,593		53
MBS and CMOs		57,829		465		158,105		14,612		215,934		15,077
Total AFS securities	$	67,943	$	557	$	196,523	$	17,122	$	264,466	$	17,679

The following information pertaining to unrealized losses and ACL on securities, by security type, is presented as of March 31, 2026.

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include 12 individual securities which have been in an unrealized loss position for less than 12 months and 26 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely

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than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Corporate and Other Obligations. The unrealized losses on the Company’s investments in corporate obligations include five securities which have been in an unrealized loss position for less than 12 months and six individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Asset-Backed Securities. The unrealized losses on the Company’s investments in asset-backed securities include three individual securities which have been in an unrealized loss position for less than 12 months and two individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. The unrealized losses on the Company’s investments in MBS and CMOs include 15 individual securities which have been in an unrealized loss position for less than 12 months, and 102 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

The Company does not believe that any individual unrealized loss as of March 31, 2026, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

Credit Losses Recognized on Investments.  There were no credit losses recognized in income and other losses or recorded in other comprehensive loss for the three- and nine-month periods ended March 31, 2026, and 2025.

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Note 4:  Loans and Allowance for Credit Losses

Classes of loans are summarized as follows:

(dollars in thousands)	March 31, 2026		June 30, 2025
1-4 Family residential real estate	$	1,063,006	$	992,445
Non-owner occupied commercial real estate		945,274		888,317
Owner occupied commercial real estate		476,994		442,984
Multi-family real estate		467,936		422,758
Construction and land development		279,943		332,405
Agriculture real estate		278,541		244,983
Total loans secured by real estate		3,511,694		3,323,892
Commercial and industrial		546,002		510,259
Agriculture production		204,447		206,128
Consumer		51,869		55,387
All other loans		8,348		5,102
Gross loans		4,322,360		4,100,768
Deferred loan fees, net		—		(178)
Allowance for credit losses		(55,937)		(51,629)
Net loans	$	4,266,423	$	4,048,961

At March 31, 2026, net deferred loan fees of ($592,000) are included in the gross loan balances, by type, in the table above. The Company’s lending activities consist of originating loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, multi-family real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At March 31, 2026, the Bank had purchased participations in 68 loans totaling $150.7 million, as compared to 71 loans totaling $188.0 million at June 30, 2025.

1-4 Family Residential Real Estate Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (ARM) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. General risks related to one- to four-family residential lending include stability of borrower income and collateral values.

Home equity lines of credit (HELOCs) are secured with a deed of trust and are generally issued up to 90% of the appraised or estimated value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Risks related to HELOC lending generally include the stability of borrower income and collateral values.

Non-Owner Occupied and Owner Occupied Commercial Real Estate Lending. The Company actively originates loans secured by owner- and non-owner-occupied commercial real estate including single- and multi-tenant retail properties, restaurants, hotels, land (improved and unimproved), nursing homes and other healthcare facilities, warehouses and distribution centers, convenience stores, automobile dealerships and other automotive-related services, and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area; however, the property may be located outside the Company’s primary lending area. Risks to owner-occupied commercial real estate lending generally include the continued profitable operation of the borrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease

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rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally.

Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property.

Multi-Family Real Estate Lending. The Company originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the Company’s primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and 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. General risks related to multi-family residential lending include rental demand and supply, rental rates, and vacancies, as well as collateral values and borrower leverage.

Construction and Land Development Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction and land development loans originated by the Company are generally to finance the construction of owner occupied residential real estate, or to finance speculative construction of residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments, with single-family residential construction loans having maturities ranging from six to twelve months, while multi-family or commercial construction loans typically mature in 12 to 36 months. Once construction is completed, construction loans may be converted to permanent financing with monthly payments using amortization schedules of up to 30 years on residential and generally up to 25 years on commercial real estate. Construction and land development lending risks generally include successful timely and on-budget completion of the project, followed by the sale of the property in the case of land development or non-owner-occupied real estate, or the long-term occupancy of the property by the builder in the case of owner-occupied construction. Changes in real estate values or other economic conditions may impact the ability of a borrower to sell property developed for that purpose.

While the Company typically utilizes relatively short maturity periods to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three-month periods to facilitate project completion. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically performs interim inspections which further provide the Company an opportunity to assess risk.

Agriculture Production and Agriculture Real Estate Lending. Agriculture production and agriculture real estate loans are generally comprised of seasonal operating lines to farmers to plant crops and term loans to fund the purchase of equipment, farmland, or livestock. Agricultural real estate loans generally include loans secured by row crop ground, pasture, and forestry. The Company originates substantially all agriculture production and agriculture real estate lending to borrowers headquartered in the Company’s primary lending area. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Agriculture production operating lines are typically written for one year and secured by the crop. Agricultural real estate terms offered usually have amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Risks to agricultural lending include unique factors such as commodity prices, yields, input costs, and weather, as well as farmland and farm equipment values.

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Commercial and Industrial Lending. The Company’s commercial and industrial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit. The Company offers both fixed and adjustable rate commercial and industrial loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years. Commercial and industrial lending risk is primarily driven by the borrower’s successful generation of cash flow from their business enterprise sufficient to service debt, and may be influenced by factors specific to the borrower and industry, or by general economic conditions in the region or in the United States generally.

Consumer Lending. The Company offers a variety of secured consumer loans, direct and indirect automobile loans, recreational vehicle loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to 66 months.

Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. Typically, automobile loans are made for terms of up to 66 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Risks to automobile and other consumer lending generally include the stability of borrower income and borrower willingness to repay.

Allowance for Credit Losses. The ACL represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses (PCL) is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate ACL. In determining the adequacy of the ACL, and therefore the provision to be charged to current earnings, the Company relies primarily on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in developing assumptions for the allowance include historical net credit losses, the level and composition of nonaccrual, past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.

Individually Evaluated Loans. The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified through the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. The reviews use one of the three following alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral values are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. The ACL for individually evaluated loans totaled $8.7 million and $8.2 million at March 31, 2026, and June 30, 2025, respectively.

Non-Individually Evaluated (Pooled) Loans. Non-individually evaluated (pooled) loans comprise the majority of the Company’s total loan portfolio and include loans that were not individually evaluated. The Company primarily utilizes the discounted cash flow (DCF) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal, the Company utilizes the remaining life method. The DCF model implements probability of default (PD) and loss given default (LGD) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag. The

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ACL for non-individually evaluated (pooled) loans totaled $47.2 million and $43.4 million at March 31, 2026, and June 30, 2025, respectively.

Qualitative factors. Included in the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.

PCD Loans. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.

The fair value of acquired loans recorded at the time of acquisition is based upon several factors, including the timing and payment of expected cash flows, as adjusted for estimated credit losses and prepayments, and then discounting these cash flows using comparable market rates. The resulting fair value adjustment is recorded in the form of a premium or discount to the unpaid principal balance of the respective loans. As it relates to acquired loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination (“PCD”), the net premium or net discount is adjusted to reflect the Company’s ACL recorded for PCD loans at the time of acquisition, and the remaining fair value adjustment is accreted or amortized into interest income over the remaining life of the respective loans. As it relates to loans not classified as PCD (non-PCD) loans, the credit loss and yield components of their fair value adjustment are aggregated, and the resulting net premium or net discount is accreted or amortized into interest income over the remaining life of the respective loans. The Company records an ACL for non-PCD loans at the time of acquisition through provision expense, and therefore, no further adjustments are made to the net premium or net discount for non-PCD loans.

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The following tables present the balance in the ACL based on portfolio segment as of March 31, 2026, and 2025 and activity in the ACL for the three- and nine- month periods ended March 31, 2026, and 2025:

	At period end and for the nine months ended March 31, 2026
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,274	$	1,455	$	(807)	$	1	$	10,923
Non-owner occupied commercial real estate		12,241		155		(2,875)		2,000		11,521
Owner occupied commercial real estate		4,521		596		(81)		122		5,158
Multi-family real estate		4,329		(621)		—		—		3,708
Construction and land development		4,788		853		(161)		1		5,481
Agriculture real estate		4,194		1,773		—		—		5,967
Commercial and industrial		6,952		2,258		(980)		63		8,293
Agriculture production		3,374		502		(116)		66		3,826
Consumer		952		696		(862)		270		1,056
All other loans		4		—		—		—		4
Total	$	51,629	$	7,667	$	(5,882)	$	2,523	$	55,937

	At period end and for the three months ended March 31, 2026
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,735	$	188	$	—	$	—	$	10,923
Non-owner occupied commercial real estate		11,622		(101)		—		—		11,521
Owner occupied commercial real estate		5,125		80		(47)		—		5,158
Multi-family real estate		3,883		(175)		—		—		3,708
Construction and land development		5,745		(265)		—		1		5,481
Agriculture real estate		4,826		1,141		—		—		5,967
Commercial and industrial		8,804		(420)		(116)		25		8,293
Agriculture production		2,379		1,447		—		—		3,826
Consumer		1,343		(50)		(340)		103		1,056
All other loans		3		1		—		—		4
Total	$	54,465	$	1,846	$	(503)	$	129	$	55,937

	At period end and for the nine months ended March 31, 2025
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	10,528	$	817	$	(60)	$	46	$	11,331
Non-owner occupied commercial real estate		19,055		(1,483)		—		—		17,572
Owner occupied commercial real estate		4,815		387		(122)		—		5,080
Multi-family real estate		5,447		(254)		—		47		5,240
Construction and land development		2,901		487		(1)		—		3,387
Agriculture real estate		2,107		347		—		—		2,454
Commercial and industrial		6,233		1,443		(153)		49		7,572
Agriculture production		835		1,330		(976)		2		1,191
Consumer		578		748		(246)		16		1,096
All other loans		17		—		—		—		17
Total	$	52,516	$	3,822	$	(1,558)	$	160	$	54,940

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	At period end and for the three months ended March 31, 2025
	Balance		Provision						Balance
	beginning		(benefit) charged		Losses				end
(dollars in thousands)	of period		to expense		charged off		Recoveries		of period
Allowance for credit losses on loans:
1-4 Family residential real estate	$	12,664	$	(1,323)	$	(10)	$	—	$	11,331
Non-owner occupied commercial real estate		13,660		3,912		—		—		17,572
Owner occupied commercial real estate		5,707		(627)		—		—		5,080
Multi-family real estate		5,725		(485)		—		—		5,240
Construction and land development		4,717		(1,330)		—		—		3,387
Agriculture real estate		2,517		(63)		—		—		2,454
Commercial and industrial		8,063		(415)		(88)		12		7,572
Agriculture production		1,060		1,105		(976)		2		1,191
Consumer		603		533		(45)		5		1,096
All other loans		24		(7)		—		—		17
Total	$	54,740	$	1,300	$	(1,119)	$	19	$	54,940

The following tables present the balance in the allowance for off-balance sheet credit exposure based on portfolio segment as of March 31, 2026, and 2025, and activity in the allowance for the three- and nine-month periods ended March 31, 2026, and 2025:

	At period end and for the nine months ended March 31, 2026
	Balance		Provision		Balance
(dollars in thousands)	beginning		(benefit) charged		end
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	202	$	(5)	$	197
Non-owner occupied commercial real estate		134		48		182
Owner occupied commercial real estate		161		10		171
Multi-family real estate		—		42		42
Construction and land development		2,279		75		2,354
Agriculture real estate		81		(29)		52
Commercial and industrial		1,074		(246)		828
Agriculture production		—		699		699
Consumer		—		4		4
All other loans		8		(5)		3
Total	$	3,939	$	593	$	4,532

	At period end and for the three months ended March 31, 2026
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	189	$	8	$	197
Non-owner occupied commercial real estate		153		29		182
Owner occupied commercial real estate		172		(1)		171
Multi-family real estate		45		(3)		42
Construction and land development		2,612		(258)		2,354
Agriculture real estate		34		18		52
Commercial and industrial		810		18		828
Agriculture production		275		424		699
Consumer		4		—		4
All other loans		4		(1)		3
Total	$	4,298	$	234	$	4,532

-25-

	At period end and for the nine months ended March 31, 2025
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	140	$	56	$	196
Non-owner occupied commercial real estate		153		15		168
Owner occupied commercial real estate		136		38		174
Multi-family real estate		31		31		62
Construction and land development		1,912		(508)		1,404
Agriculture real estate		60		(30)		30
Commercial and industrial		782		444		1,226
Agriculture production		37		160		197
Consumer		12		(6)		6
All other loans		—		1		1
Total	$	3,263	$	201	$	3,464

	At period end and for the three months ended March 31, 2025
	Balance		Provision		Balance
	beginning		(benefit) charged		end
(dollars in thousands)	of period		to expense		of period
Allowance for off-balance sheet credit exposure:
1-4 Family residential real estate	$	229	$	(33)	$	196
Non-owner occupied commercial real estate		185		(17)		168
Owner occupied commercial real estate		169		5		174
Multi-family real estate		65		(3)		62
Construction and land development		1,965		(561)		1,404
Agriculture real estate		54		(24)		30
Commercial and industrial		1,032		194		1,226
Agriculture production		127		70		197
Consumer		6		—		6
All other loans		—		1		1
Total	$	3,832	$	(368)	$	3,464

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The following tables present year-to-date gross charge-offs by loan class and year of origination for the nine-month periods ended March 31, 2026, and 2025:

													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
March 31, 2026
1-4 Family residential real estate	$	—	$	—	$	182	$	200	$	7	$	418	$	—	$	807
Non-owner occupied commercial real estate		—		—		—		2,800		75		—		—		2,875
Owner occupied commercial real estate		—		—		—		—		—		81		—		81
Construction and land development		—		—		—		—		—		161		—		161
Commercial and industrial		48		267		159		62		377		67		—		980
Agriculture production		—		—		29		67		20		—		—		116
Consumer		539		151		112		37		16		7		—		862
Total gross charge-offs	$	587	$	418	$	482	$	3,166	$	495	$	734	$	—	$	5,882

													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
March 31, 2025
1-4 Family residential real estate	$	—	$	—	$	—	$	—	$	—	$	60	$	—	$	60
Owner occupied commercial real estate		—		—		122		—		—		—		—		122
Construction and land development		—		—		—		—		1		—		—		1
Commercial and industrial		—		22		103		—		17		11		—		153
Agriculture production		—		976		—		—		—		—		—		976
Consumer		3		113		70		38		5		17		—		246
Total gross charge-offs	$	3	$	1,111	$	295	$	38	$	23	$	88	$	—	$	1,558

Credit Quality Indicators. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on all loans at origination, and is updated on a quarterly basis for loans risk rated Watch, Special Mention, Substandard, or Doubtful. A sample of lending relationships are subject to an independent loan review annually, in order to verify risk ratings. The Company uses the following definitions for risk ratings:

Watch – Loans classified as watch exhibit weaknesses that require more than usual monitoring. Issues may include deteriorating financial condition, payments made after due date but within 30 days, adverse industry conditions or management problems.

Special Mention – Loans classified as special mention exhibit signs of further deterioration but still generally make payments within 30 days. This is a transitional rating and loans should typically not be rated Special Mention for more than 12 months.

Substandard – Loans classified as substandard possess weaknesses that jeopardize the ultimate collection of the principal and interest outstanding. These loans may exhibit continued financial losses, ongoing delinquency, overall poor financial condition, and insufficient collateral.

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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.

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 continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.

The following table presents the credit risk profile of the Company’s loan portfolio based on rating category and fiscal year of origination as of March 31, 2026. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:

													Revolving
(dollars in thousands)	2026		2025		2024		2023		2022		Prior		loans		Total
1-4 Family residential real estate
Pass	$	201,084	$	155,574	$	90,035	$	111,489	$	151,217	$	220,501	$	127,045	$	1,056,945
Watch		436		625		292		45		321		152		11		1,882
Special Mention		—		—		—		—		—		—		—		—
Substandard		283		982		471		416		998		939		90		4,179
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	201,803	$	157,181	$	90,798	$	111,950	$	152,536	$	221,592	$	127,146	$	1,063,006
Non-owner occupied commercial real estate
Pass	$	211,978	$	105,159	$	63,197	$	171,032	$	230,408	$	105,792	$	10,413	$	897,979
Watch		1,512		167		—		12,268		2,935		—		—		16,882
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		4,664		1,393		2,086		22,270		—		—		30,413
Doubtful		—		—		—		—		—		—		—		—
Total Non-owner occupied commercial real estate	$	213,490	$	109,990	$	64,590	$	185,386	$	255,613	$	105,792	$	10,413	$	945,274
Owner occupied commercial real estate
Pass	$	100,002	$	65,570	$	53,466	$	66,135	$	65,846	$	87,077	$	26,079	$	464,175
Watch		858		731		5,388		503		2,111		150		251		9,992
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		1,283		40		787		283		434		—		2,827
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	100,860	$	67,584	$	58,894	$	67,425	$	68,240	$	87,661	$	26,330	$	476,994
Multi-family real estate
Pass	$	46,161	$	78,323	$	16,692	$	192,071	$	63,633	$	61,707	$	7,806	$	466,393
Watch		—		1,543		—		—		—		—		—		1,543
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	46,161	$	79,866	$	16,692	$	192,071	$	63,633	$	61,707	$	7,806	$	467,936
Construction and land development
Pass	$	94,438	$	104,660	$	26,289	$	40,232	$	4,410	$	1,184	$	2,388	$	273,601
Watch		—		—		—		—		—		54		—		54
Special Mention		—		—		—		—		—		—		—		—
Substandard		355		5,743		—		190		—		—		—		6,288
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	94,793	$	110,403	$	26,289	$	40,422	$	4,410	$	1,238	$	2,388	$	279,943
Agriculture real estate
Pass	$	60,105	$	39,259	$	18,162	$	26,479	$	35,210	$	39,240	$	22,995	$	241,450
Watch		13,613		5,059		4,112		344		5,328		3,557		1,888		33,901

-28-

Special Mention		—		—		—		—		—		—		—		—
Substandard		—		111		2,786		257		—		—		36		3,190
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	73,718	$	44,429	$	25,060	$	27,080	$	40,538	$	42,797	$	24,919	$	278,541
Commercial and industrial
Pass	$	174,346	$	101,426	$	22,530	$	9,028	$	26,176	$	14,737	$	169,934	$	518,177
Watch		5,909		1,034		4,205		2,251		—		206		7,929		21,534
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,171		3,776		138		95		210		202		105		5,697
Doubtful		—		594		—		—		—		—		—		594
Total Commercial and industrial	$	181,426	$	106,830	$	26,873	$	11,374	$	26,386	$	15,145	$	177,968	$	546,002
Agriculture production
Pass	$	41,598	$	23,390	$	7,146	$	3,414	$	1,013	$	1,712	$	99,222	$	177,495
Watch		4,814		11,586		1,542		292		43		—		6,394		24,671
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		2		2,180		34		17		48		—		2,281
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	46,412	$	34,978	$	10,868	$	3,740	$	1,073	$	1,760	$	105,616	$	204,447
Consumer
Pass	$	22,894	$	13,966	$	6,287	$	4,547	$	1,697	$	947	$	1,488	$	51,826
Watch		8		—		—		—		—		—		—		8
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		12		5		9		9		—		—		35
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	22,902	$	13,978	$	6,292	$	4,556	$	1,706	$	947	$	1,488	$	51,869
All other loans
Pass	$	1,630	$	4,809	$	704	$	122	$	41	$	1,042	$	—	$	8,348
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	1,630	$	4,809	$	704	$	122	$	41	$	1,042	$	—	$	8,348
Total Loans
Pass	$	954,236	$	692,136	$	304,508	$	624,549	$	579,651	$	533,939	$	467,370	$	4,156,389
Watch		27,150		20,745		15,539		15,703		10,738		4,119		16,473		110,467
Special Mention		—		—		—		—		—		—		—		—
Substandard		1,809		16,573		7,013		3,874		23,787		1,623		231		54,910
Doubtful		—		594		—		—		—		—		—		594
Total	$	983,195	$	730,048	$	327,060	$	644,126	$	614,176	$	539,681	$	484,074	$	4,322,360

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

													Revolving
(dollars in thousands)	2025		2024		2023		2022		2021		Prior		loans		Total
1-4 Family residential real estate
Pass	$	204,048	$	110,823	$	133,616	$	167,711	$	126,851	$	132,126	$	112,346	$	987,521
Watch		620		261		376		360		277		250		—		2,144
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		734		190		346		33		1,359		118		2,780
Doubtful		—		—		—		—		—		—		—		—
Total 1-4 Family residential real estate	$	204,668	$	111,818	$	134,182	$	168,417	$	127,161	$	133,735	$	112,464	$	992,445
Non-owner occupied commercial real estate
Pass	$	115,266	$	82,983	$	213,647	$	273,348	$	76,522	$	70,869	$	7,570	$	840,205
Watch		—		1,770		15,146		213		—		—		—		17,129
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		64		4,490		26,429		—		—		—		30,983
Doubtful		—		—		—		—		—		—		—		—

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Total Non-owner occupied commercial real estate	$	115,266	$	84,817	$	233,283	$	299,990	$	76,522	$	70,869	$	7,570	$	888,317
Owner occupied commercial real estate
Pass	$	72,469	$	57,047	$	87,899	$	79,946	$	73,291	$	43,764	$	21,206	$	435,622
Watch		1,440		2,234		287		83		—		73		—		4,117
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		868		969		901		71		436		—		3,245
Doubtful		—		—		—		—		—		—		—		—
Total Owner occupied commercial real estate	$	73,909	$	60,149	$	89,155	$	80,930	$	73,362	$	44,273	$	21,206	$	442,984
Multi-family real estate
Pass	$	79,658	$	19,078	$	179,905	$	69,862	$	56,328	$	13,577	$	1,402	$	419,810
Watch		1,571		—		—		1,377		—		—		—		2,948
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total Multi-family real estate	$	81,229	$	19,078	$	179,905	$	71,239	$	56,328	$	13,577	$	1,402	$	422,758
Construction and land development
Pass	$	161,995	$	32,148	$	117,395	$	9,144	$	1,829	$	1,396	$	2,020	$	325,927
Watch		—		—		—		—		—		63		—		63
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		5,743		—		—		—		672		—		6,415
Doubtful		—		—		—		—		—		—		—		—
Total Construction and land development	$	161,995	$	37,891	$	117,395	$	9,144	$	1,829	$	2,131	$	2,020	$	332,405
Agriculture real estate
Pass	$	56,350	$	24,526	$	36,351	$	40,456	$	37,094	$	11,570	$	18,747	$	225,094
Watch		3,883		1,092		2,145		5,603		4,043		—		475		17,241
Special Mention		—		—		—		—		—		—		—		—
Substandard		35		2,206		257		150		—		—		—		2,648
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture real estate	$	60,268	$	27,824	$	38,753	$	46,209	$	41,137	$	11,570	$	19,222	$	244,983
Commercial and industrial
Pass	$	169,734	$	38,321	$	36,459	$	31,607	$	16,918	$	6,016	$	192,310	$	491,365
Watch		3,966		4,565		2,453		—		250		13		4,437		15,684
Special Mention		—		—		—		—		—		—		—		—
Substandard		753		111		165		935		53		239		954		3,210
Doubtful		—		—		—		—		—		—		—		—
Total Commercial and industrial	$	174,453	$	42,997	$	39,077	$	32,542	$	17,221	$	6,268	$	197,701	$	510,259
Agriculture production
Pass	$	43,446	$	13,230	$	5,631	$	1,910	$	4,363	$	302	$	119,345	$	188,227
Watch		3,319		888		—		83		—		—		13,357		17,647
Special Mention		—		—		—		—		—		—		—		—
Substandard		26		127		81		8		—		12		—		254
Doubtful		—		—		—		—		—		—		—		—
Total Agriculture production	$	46,791	$	14,245	$	5,712	$	2,001	$	4,363	$	314	$	132,702	$	206,128
Consumer
Pass	$	29,912	$	11,264	$	8,330	$	3,189	$	938	$	172	$	1,483	$	55,288
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		50		20		12		17		—		—		—		99
Doubtful		—		—		—		—		—		—		—		—
Total Consumer	$	29,962	$	11,284	$	8,342	$	3,206	$	938	$	172	$	1,483	$	55,387
All other loans
Pass	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102
Watch		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total All other loans	$	2,334	$	869	$	245	$	82	$	132	$	1,440	$	—	$	5,102

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Total Loans
Pass	$	935,212	$	390,289	$	819,478	$	677,255	$	394,266	$	281,232	$	476,429	$	3,974,161
Watch		14,799		10,810		20,407		7,719		4,570		399		18,269		76,973
Special Mention		—		—		—		—		—		—		—		—
Substandard		864		9,873		6,164		28,786		157		2,718		1,072		49,634
Doubtful		—		—		—		—		—		—		—		—
Total	$	950,875	$	410,972	$	846,049	$	713,760	$	398,993	$	284,349	$	495,770	$	4,100,768

Past-due Loans. The following tables present the Company’s loan portfolio aging analysis as of March 31, 2026, and June 30, 2025. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:

	March 31, 2026
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 Family residential real estate	$	4,023	$	744	$	2,674	$	7,441	$	1,055,565	$	1,063,006	$	—
Non-owner occupied commercial real estate		705		—		4,664		5,369		939,905		945,274		—
Owner occupied commercial real estate		89		434		570		1,093		475,901		476,994		—
Multi-family real estate		—		—		—		—		467,936		467,936		—
Construction and land development		340		249		5,743		6,332		273,611		279,943		—
Agriculture real estate		291		1,064		2,984		4,339		274,202		278,541		—
Commercial and industrial		1,649		246		2,707		4,602		541,400		546,002		—
Agriculture production		80		34		2,192		2,306		202,141		204,447		—
Consumer		470		43		18		531		51,338		51,869		—
All other loans		—		—		—		—		8,348		8,348		—
Total loans	$	7,647	$	2,814	$	21,552	$	32,013	$	4,290,347	$	4,322,360	$	—

	June 30, 2025
					Greater Than								Greater Than 90
	30-59 Days		60-89 Days		90 Days		Total				Total Loans		Days Past Due
(dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current		Receivable		and Accruing
1-4 Family residential real estate	$	1,317	$	1,973	$	2,442	$	5,732	$	986,713	$	992,445	$	—
Non-owner occupied commercial real estate		62		—		5,784		5,846		882,471		888,317		—
Owner occupied commercial real estate		—		116		989		1,105		441,879		442,984		—
Multi-family real estate		—		—		—		—		422,758		422,758		—
Construction and land development		315		12		5,743		6,070		326,335		332,405		—
Agriculture real estate		178		11		2,613		2,802		242,181		244,983		—
Commercial and industrial		1,055		219		1,837		3,111		507,148		510,259		—
Agriculture production		163		164		78		405		205,723		206,128		—
Consumer		380		98		74		552		54,835		55,387		—
All other loans		—		—		—		—		5,102		5,102		—
Total loans	$	3,470	$	2,593	$	19,560	$	25,623	$	4,075,145	$	4,100,768	$	—

At March 31, 2026, there were two PCD loans totaling $6.2 million greater than 90 days past due, compared to three PCD loans totaling $6.2 million that were greater than 90 days past due at June 30, 2025.

-31-

Loans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.

Collateral Dependent Loans. The following tables present the Company’s collateral dependent loans and related ACL at March 31, 2026, and June 30, 2025:

									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
March 31, 2026	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	2,114	$	—	$	—	$	2,114	$	84
Non-owner occupied commercial real estate		30,414		—		23		30,437		5,079
Owner occupied commercial real estate		3,414		—		468		3,882		448
Construction and land development		5,743		545		—		6,288		1,718
Agriculture real estate		3,150		—		36		3,186		—
Commercial and industrial		—		—		6,366		6,366		1,396
Agriculture production		—		—		2,192		2,192		—
Total loans	$	44,835	$	545	$	9,085	$	54,465	$	8,725

									Allowance on
(dollars in thousands)	Primary Type of Collateral								Collateral
June 30, 2025	Real Estate		Land		Other		Total		Dependent Loans
1-4 Family residential real estate	$	752	$	—	$	—	$	752	$	117
Non-owner occupied commercial real estate		31,764		—		—		31,764		6,456
Owner occupied commercial real estate		811		—		541		1,352		290
Construction and land development		5,743		661		—		6,404		161
Agriculture real estate		1,695		—		—		1,695		—
Commercial and industrial		494		—		3,128		3,622		1,129
Total loans	$	41,259	$	661	$	3,669	$	45,589	$	8,153

Nonaccrual Loans. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at March 31, 2026, and June 30, 2025. The table excludes performing modifications to borrowers experiencing financial difficulty.

(dollars in thousands)	March 31, 2026		June 30, 2025
1-4 Family residential real estate	$	3,582	$	2,847
Non-owner occupied commercial real estate		8,240		5,784
Owner occupied commercial real estate		1,084		1,309
Construction and land development		5,775		5,789
Agriculture real estate		3,562		3,268
Commercial and industrial		5,598		3,442
Agriculture production		2,278		505
Consumer		16		96
Total loans	$	30,135	$	23,040

At March 31, 2026, there were 41 nonaccrual loans totaling $8.5 million, and at June 30, 2025 there were four nonaccrual loans totaling $7.4 million, that were individually evaluated for which no ACL was recorded.

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Modifications to Borrowers Experiencing Financial Difficulty. During the three-month period ended March 31, 2026, there were no loan modifications made to borrowers experiencing financial difficulty, and during the nine-month period ended March 31, 2026, there were four loan modifications, totaling $5.8 million. During the three- and nine-month periods ended March 31, 2025, there were four loan modifications, totaling $22.3 million, made to borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding during the nine-month periods ended March 31, 2026 and March 31, 2025, are shown in the following tables segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.

Modifications to Borrowers Experiencing Financial Difficulty. During the three-month period ended March 31, 2026, there were no loan modifications made to borrowers experiencing financial difficulty, and during the nine-month period ended March 31, 2026, there were four loan modifications, totaling $5.8 million. During the three- and nine-month periods ended March 31, 2025, there were four loan modifications, totaling $22.3 million, made to borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding during the nine-month period ended March 31, 2026 are shown in the following table segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.Modifications to Borrowers Experiencing Financial Difficulty. During the three-month period ended March 31, 2026, there were no loan modifications made to borrowers experiencing financial difficulty, and during the nine-month period ended March 31, 2026, there were four loan modifications, totaling $5.8 million. During the three- and nine-month periods ended March 31, 2025, there were four loan modifications, totaling $22.3 million, made to borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding during the nine-month periods ended March 31, 2026 and 2025 are shown in the following tables segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.
	March 31, 2026
					Term		Interest		Total Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
1-4 Family residential real estate	$	—	$	—	$	—	$	—	—	%
Non-owner occupied commercial real estate		1,512		—		—		—	0.16	%
Owner occupied commercial real estate		—		3,731		—		—	0.78	%
Multi-family real estate		—		—		—		—	—	%
Construction and land development		—		—		—		—	—	%
Agriculture real estate		—		—		—		—	—	%
Commercial and industrial		—		594		—		—	0.11	%
Agriculture production		—		—		—		—	—	%
Consumer		—		—		—		—	—	%
All other loans		—		—		—		—	—	%
Total	$	1,512	$	4,325	$	—	$	—	0.14	%

	March 31, 2025
					Term		Interest		Total Class of
	Principal		Payment		Extension		Rate		Financing
	Forgiveness		Delays		Modifications		Reduction		Receivable
(dollars in thousands)
1-4 Family residential real estate	$	—	$	—	$	—	$	—	—	%
Non-owner occupied commercial real estate		—		22,270		—		—	2.48	%
Owner occupied commercial real estate		—		—		—		—	—	%
Multi-family real estate		—		—		—		—	—	%
Construction and land development		—		—		—		—	—	%
Agriculture real estate		—		—		—		—	—	%
Commercial and industrial		—		—		—		—	—	%
Agriculture production		—		—		—		—	—	%
Consumer		—		—		—		—	—	%
All other loans		—		—		—		—	—	%
Total	$	—	$	22,270	$	—	$	—	0.55	%

None of the modifications made during the nine-month periods ended March 31, 2026 and March 31, 2025 were more than 90 days past due. There were no loans that experienced a default during the nine months ended March 31, 2026 or March 31, 2025, subsequent to being granted a modification in the preceding twelve months. As of March 31, 2026, there were no commitments to lend funds to these borrowers.

Residential Real Estate Foreclosures. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or in-substance repossession. As of March 31, 2026, and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $946,000 and $0, respectively. In addition, as of March 31, 2026, and June 30, 2025, the Company had

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residential mortgage loans and home equity loans with a carrying value of $962,000 and $769,000, respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.

Note 5:  Premises and Equipment

Following is a summary of premises and equipment:

(dollars in thousands)	March 31, 2026		June 30, 2025
Land	$	15,456	$	15,386
Buildings and improvements		89,587		85,512
Construction in progress		10		2,754
Furniture, fixtures, equipment and software		30,347		29,386
Automobiles		128		118
Operating leases ROU asset		6,828		6,991
		142,356		140,147
Less accumulated depreciation		48,990		44,165
	$	93,366	$	95,982

Leases. The Company elected certain relief options under ASU 2016-02, Leases (Topic 842), including the option not to recognize ROU asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less). At March 31, 2026, the Company had ten leased properties, which included banking facilities, administrative offices and ground leases, and numerous office equipment lease agreements in which it was the lessee, with lease terms exceeding twelve months.

All of the Company’s leases are classified as operating leases. These operating leases are included as a ROU asset in the premises and equipment line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.

ASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The range of discount rates utilized was 3.5% to 5.7%. The expected lease terms range from 18 months to 20 years.

	March 31, 2026		June 30, 2025
Consolidated Balance Sheet
Operating leases ROU asset	$	6,828	$	6,991
Operating leases liability	$	6,828	$	6,991

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	For the three- month				For the nine- month
	periods ended				periods ended
	March 31,				March 31,
(dollars in thousands)	2026		2025		2026		2025
Consolidated Statement of Income
Operating lease costs classified as occupancy and equipment expense	$	319	$	291	$	919	$	886
(includes short-term lease costs)
Supplemental disclosures of cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	217	$	174	$	653	$	586
ROU assets obtained in exchange for operating lease obligations:	$	75	$	—	$	127	$	—

At March 31, 2026, future expected lease payments for leases with terms exceeding one year were as follows:

(dollars in thousands)
2026	$	368
2027		879
2028		893
2029		864
2030		833
Thereafter		7,667
Future lease payments expected		11,504
Less: present value discount		(4,676)
Total lease liability	$	6,828

The Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the three- and nine-month periods ended March 31, 2026, income recognized from these lessor agreements was $126,000 and $374,000, respectively. For the three- and nine-month periods ended March 31, 2025, income recognized from these lessor agreements was $116,000 and $340,000, respectively.

Note 6:  Deposits

Deposits are summarized as follows:

(dollars in thousands)	March 31, 2026		June 30, 2025
Non-interest bearing accounts	$	528,601	$	508,110
NOW accounts		1,153,078		1,132,298
Money market deposit accounts		326,976		331,251
Savings accounts		718,199		661,115
Certificates		1,614,061		1,648,594
Total Deposit Accounts	$	4,340,915	$	4,281,368

Brokered certificates totaled $205.4 million at March 31, 2026, compared to $233.6 million at June 30, 2025.

Note 7: Repurchase Agreements

Securities sold under agreements to repurchase totaled $20.0 million at March 31, 2026, an increase of $5.0 million from $15.0 million at June 30, 2025. The following table sets forth the outstanding amounts and interest rates as of March 31, 2026, and June 30, 2025:

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	March 31,			June 30,
(dollars in thousands)	2026			2025
Period-end balance	$	20,000		$	15,000
Average balance during the period		19,348			14,330
Maximum month-end balance during the period		20,000			15,000
Average interest during the period		4.16	%		5.35	%
Period-end interest rate		4.05	%		5.11	%

The repurchase agreements mature daily and the following sets forth the collateral pledged by class for repurchase agreements:

	March 31,		June 30,
(dollars in thousands)	2026		2025
Mortgage-backed securities (MBS)	$	19,851	$	15,353

Note 8:  Earnings Per Share

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

	Three- month periods ended				Nine- month periods ended
	March 31,				March 31,
(dollars in thousands except per share data)	2026		2025		2026		2025
Net income	$	17,761	$	15,683	$	51,560	$	42,792
Less: distributed earnings allocated to participating securities		(13)		(12)		(37)		(35)
Less: undistributed earnings allocated to participating securities		(68)		(59)		(191)		(158)
Net income available to common stockholders	$	17,680	$	15,612	$	51,332	$	42,599
Denominator for basic earnings per share
Weighted-average shares outstanding		11,040,896		11,237,641		11,147,001		11,229,733
Effect of dilutive securities stock options or awards		33,924		24,642		25,778		24,282
Denominator for diluted earnings per share		11,074,820		11,262,283		11,172,779		11,254,015
Basic earnings per share available to common stockholders	$	1.60	$	1.39	$	4.61	$	3.79
Diluted earnings per share available to common stockholders	$	1.60	$	1.39	$	4.59	$	3.79

Certain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 34,250 and 77,425 were excluded from the computation of diluted earnings per share for each of the three- and nine-month periods ended March 31, 2026, respectively, while outstanding options and shares of restricted stock totaling 56,000 and 63,500 were excluded from the computation of diluted earnings per share for the three- and nine-month periods ended March 31, 2025, respectively.

Note 9: Income Taxes

The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal examinations by tax authorities for tax years ending June 30, 2021 and before. The Company’s Missouri income tax returns for the fiscal years ending June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented.

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The Company’s income tax provision is comprised of the following components:

	For the three-month periods ended				For the nine-month periods ended
(dollars in thousands)	March 31, 2026		March 31, 2025		March 31, 2026		March 31, 2025
Income taxes
Current	$	4,080	$	4,139	$	11,436	$	12,065
Deferred		101		—		1,082		—
Total income tax provision	$	4,181	$	4,139	$	12,518	$	12,065

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

(dollars in thousands)	March 31, 2026		June 30, 2025
Deferred tax assets:
Provision for losses on loans	$	13,303	$	12,225
Accrued compensation and benefits		1,153		1,210
NOL carry forwards acquired		20		24
Unrealized loss on other real estate		12		—
Unrealized loss on available for sale securities		2,550		3,201
Other		—		552
Total deferred tax assets		17,038		17,212
Deferred tax liabilities:
Purchase accounting adjustments		2,497		2,604
Depreciation		4,528		4,468
FHLB stock dividends		120		120
Prepaid expenses		603		586
Other		1,589		—
Total deferred tax liabilities		9,337		7,778
Net deferred tax asset	$	7,701	$	9,434

As of March 31, 2026, the Company had approximately $89,000 in federal net operating loss carryforwards, which were acquired in the July 2009 Southern Bank of Commerce merger. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2030.

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

	For the three-month periods ended				For the nine-month periods ended
(dollars in thousands)	March 31, 2026		March 31, 2025		March 31, 2026		March 31, 2025
Tax at statutory rate	$	4,608	$	4,163	$	13,456	$	11,520
Increase (reduction) in taxes resulting from:
Nontaxable municipal income		(200)		(74)		(398)		(256)
State tax, net of Federal benefit		117		196		313		480
Cash surrender value of Bank-owned life insurance		(142)		(108)		(373)		(326)
Tax credit benefits		(175)		(2)		(525)		(29)
Other, net		(27)		(36)		45		676
Actual provision	$	4,181	$	4,139	$	12,518	$	12,065

For the three- and nine-month periods ended March 31, 2026, and 2025, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR).

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

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Note 10:  401(k) Retirement Plan

The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank made “safe harbor” matching contributions to the Plan of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee, and also made additional, discretionary profit-sharing contributions for fiscal 2025. For fiscal 2026, the Bank has maintained the safe harbor matching contribution of up to 4%, and expects to continue to make additional, discretionary profit-sharing contributions. During the three- and nine-month periods ended March 31, 2026, retirement plan expenses recognized for the Plan totaled approximately $826,000 and $2.4 million, respectively, as compared to $521,000 and $1.9 million for the same periods of the prior fiscal year, respectively. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.

Note 11:  Subordinated Debt

In March 2004, the Company established Southern Missouri Statutory Trust I as a statutory business trust, to issue Floating Rate Capital Securities (the “Trust Preferred Securities”). The securities mature in 2034, became redeemable after five years, and bear interest at a floating rate based on SOFR. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At March 31, 2026, the Debentures carried an interest rate of 6.69%. The balance of the Debentures outstanding was $7.2 million at both March 31, 2026, and June 30, 2025. The Company used the net proceeds from the sale of the Debentures for working capital and investment in its subsidiaries.

In connection with the October 2013 Ozarks Legacy Community Financial, Inc. (OLCF) merger, the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2035. At March 31, 2026, the current rate was 6.39%. The carrying value of the debt securities was approximately $2.8 million at both March 31, 2026, and June 30, 2025.

In connection with the August 2014 Peoples Service Company, Inc. (PSC) merger, the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2035. At March 31, 2026, the current rate was 5.74%. The carrying value of the debt securities was approximately $5.7 million and $5.6 million at both March 31, 2026, and June 30, 2025.

The Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and is carried at a value of $473,000 at March 31, 2026, and $471,000 at June 30, 2025.

In connection with the February 2022 Fortune merger, the Company assumed $7.5 million in fixed-to-floating rate subordinated notes. The notes had been issued in May 2021 by Fortune to a multi-lender group, bear interest through May 2026 at a fixed rate of 4.5% and will bear interest thereafter at SOFR plus 3.77%. The notes will be redeemable at par beginning in May 2026, and mature in May 2031. The carrying value of the notes was approximately $7.5 million at both March 31, 2026, and June 30, 2025.

Note 12:  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

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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 that are significant to the fair value of the assets or liabilities

Recurring Measurements. The following table presents the fair value measurements recognized in the accompanying condensed 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 March 31, 2026, and June 30, 2025:

	Fair Value Measurements at March 31, 2026, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Obligations of state and political subdivisions	$	24,416	$	—	$	24,416	$	—
Corporate obligations		28,424		—		28,424		—
Asset backed securities		39,131		—		39,131		—
Other securities		3,165		—		3,165		—
MBS and CMOs		343,979		—		343,979		—
Mortgage servicing rights		2,299		—		—		2,299
Derivative financial instruments		926		—		926		—
Liabilities:
Derivative financial instruments		875		—		875		—

	Fair Value Measurements at June 30, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets:
Obligations of state and political subdivisions	$	24,263	$	—	$	24,263	$	—
Corporate obligations		30,642		—		30,642		—
Asset backed securities		42,481		—		42,481		—
Other securities		3,964		—		3,964		—
MBS and CMOs		359,494		—		359,494		—
Mortgage servicing rights		2,297		—		—		2,297
Derivative financial instruments		912		—		912		—
Liabilities:
Derivative financial instruments		877		—		877		—

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the three- and nine-month periods ended March 31, 2026. There were no transfers between levels of the fair value hierarchy during the period ended March 31, 2026.

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

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prices of securities with similar characteristics. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things.  In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

Derivative financial instruments. The Company’s derivative financial instruments consist of interest rate swaps on loans accounted for as fair value hedges. The fair value of interest rate swaps was determined by discounting the expected cash flows of the interest rate swaps. This valuation reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs. The Company’s derivative financial instruments also include interest swap contracts which are not designated as hedging instruments, executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. The inputs used to value the Company’s interest rate swaps fall within Level 2 of the fair value hierarchy and, as a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. See information regarding the Company’s derivative financial agreements in Note 13: Derivative Financial Instruments of these Notes to Consolidated Financial Statements.

Mortgage servicing rights. The Company records MSR at fair value on a recurring basis with subsequent remeasurement of MSR based on change in fair value. An estimate of the fair value of the Company’s MSR is determined by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. All of the Company’s MSR are classified as Level 3.

The following table summarizes the change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three- and nine-month periods ended March 31, 2026, and March 31, 2025:

	At period end and for the three months ended				At period end and for the nine months ended
	March 31,				March 31,
(dollars in thousands)	2026		2025		2026		2025
MSR, beginning	$	2,295	$	2,392	$	2,297	$	2,448
Originations		68		40		165		98
Amortization		(64)		(44)		(163)		(158)
Change in fair value		—		—		—		—
MSR, ending	$	2,299	$	2,388	$	2,299	$	2,388

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 March 31, 2026, and June 30, 2025:

	Fair Value Measurements at March 31, 2026, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Foreclosed and repossessed assets held for sale	$	858	$	—	$	—	$	858
Collateral dependent loans		35,889		—		—		35,889

	Fair Value Measurements at June 30, 2025, Using:
			Quoted Prices in
			Active Markets for		Significant Other		Significant
			Identical Assets		Observable Inputs		Unobservable Inputs
(dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Foreclosed and repossessed assets held for sale	$	625	$	—	$	—	$	625
Collateral dependent loans		24,368		—		—		24,368

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The following table presents losses recognized on assets measured on a non-recurring basis for the nine-month periods ended March 31, 2026, and 2025:

	For the nine months ended
(dollars in thousands)	March 31, 2026		March 31, 2025
Foreclosed and repossessed assets held for sale	$	601	$	80
Total losses on assets measured on a non-recurring basis	$	601	$	80

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

Foreclosed and Repossessed Assets Held for Sale. Foreclosed and repossessed assets held for sale are valued at the time the loan is foreclosed upon or collateral is repossessed and the asset is transferred to foreclosed or repossessed assets held for sale. The value of the asset is based on third party or internal appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed and repossessed assets held for sale are continually evaluated for additional impairment and are adjusted accordingly if impairment is identified.

Collateral-Dependent Loans. The Company records collateral-dependent loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the ACL specific to the loan.

Unobservable (Level 3) Inputs. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at March 31, 2026, and June 30, 2025.

					Range
	Fair value at		Valuation	Unobservable	of		Weighted-average
(dollars in thousands)	March 31, 2026		technique	inputs	inputs applied		inputs applied
Nonrecurring Measurements
Foreclosed and repossessed assets	$	858	Third party appraisal	Marketability discount	31.4-31.4	%	31.4	%
Collateral dependent loans		35,889	Collateral value	Marketability discount	12.4 -100.0	%	19.6	%

					Range
	Fair value at		Valuation	Unobservable	of		Weighted-average
(dollars in thousands)	June 30, 2025		technique	inputs	inputs applied		inputs applied
Nonrecurring Measurements
Foreclosed and repossessed assets	$	625	Third party appraisal	Marketability discount	25.6 -25.6	%	25.6	%
Collateral dependent loans		24,368	Collateral value	Marketability discount	4.3 -100.0	%	23.9	%

Fair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments not reported at fair value and the level within the fair value hierarchy in which the fair value measurements fell at March 31, 2026, and June 30, 2025.

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	March 31, 2026
			Quoted Prices
			in Active				Significant
			Markets for		Significant Other		Unobservable
	Carrying		Identical Assets		Observable Inputs		Inputs
(dollars in thousands)	Amount		(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and cash equivalents	$	93,038	$	93,038	$	—	$	—
Interest-bearing time deposits		248		—		248		—
Stock in FHLB		9,714		—		9,714		—
Stock in Federal Reserve Bank of St. Louis		9,149		—		9,149		—
Loans held for sale		1,033		—		1,033		—
Loans receivable, net		4,266,423		—		—		4,210,761
Accrued interest receivable		28,093		—		28,093		—
Financial liabilities
Deposits		4,340,915		2,728,336		—		1,614,399
Securities sold under agreements to repurchase		20,000		—		20,000		—
Advances from FHLB		105,033		—		105,042		—
Accrued interest payable		11,648		—		11,648		—
Subordinated debt		23,248		—		—		22,614
Unrecognized financial instruments (net of contract amount)
Commitments to originate loans		—		—		—		—
Letters of credit		—		—		—		—
Lines of credit		—