{"url_path":"/sec/smbc/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 ​ ​Financial Statements and Supplementary Information","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-09-11","source_url":"https://www.sec.gov/Archives/edgar/data/916907/0001104659-26-107119-index.html","accession_number":"0001104659-26-107119","cik":"0000916907","ticker":"SMBC","issuer_name":"SOUTHERN MISSOURI BANCORP, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/916907/0001104659-26-107119-index.html","primary_entity_key":"0000916907","primary_entity_name":"SOUTHERN MISSOURI BANCORP, INC."},"word_count":35055,"has_tables":true,"body_markdown":"Item 8.​ ​Financial Statements and Supplementary Information\n\n​\n\n​\n\n​\n\n75\n\n[Table of Contents](#TOC)\n\n**Report of Independent Registered Public Accounting Firm******\n\n​\n\nTo the Shareholders, Board of Directors, and Audit Committee\n\nSouthern Missouri Bancorp, Inc.\n\nPoplar Bluff, Missouri\n\n​\n\n​\n\nOpinion on the Consolidated Financial Statements\n\nWe have audited the accompanying consolidated balance sheets of Southern Missouri Bancorp, Inc. (the “Company”) as of June 30, 2026 and 2025 and the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, 2026, and the related notes (collectively referred to as the “financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America.\n\nWe also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of June 30, 2026, based on criteria established in *Internal Control – Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated September 11, 2026, expressed an unqualified opinion thereon.\n\nBasis for Opinion\n\nThese consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.\n\nWe are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.\n\nOur audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n76\n\n[Table of Contents](#TOC)\n\nCritical Audit Matters\n\nThe critical audit matter communicated below is a matter arising from the current-period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.\n\nAllowances for Credit Losses on Loans – Default Assumptions\n\nAs discussed in Notes 1 and 3, the Company’s loan portfolio totaled $4.4 billion as of June 30, 2026 and the associated allowance for credit losses on loans (“ACL”) was $54.9 million. In calculating the ACL, loans were segmented into pools based upon similar risk characteristics. For each of these loan pools, management measured expected credit losses over the life of each loan utilizing either a remaining life model or a discounted cash flow (DCF) model. The models utilize loss data from similar peers to calculate an expected loss percentage for each loan pool and apply a default assumption that defines the point at which a loan is considered to have defaulted based on specified credit deterioration events, including certain adverse internal risk ratings, delinquency thresholds, modifications for borrowers experiencing financial difficulty, or placement on nonaccrual status. The models were adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a reasonable and supportable forecast period. Additional qualitative adjustments are applied for risk factors that are not considered within the modeling process but are relevant in assessing the expected credit losses within the loan pools. Loans that do not share risk characteristics are evaluated on an individual basis, which may be based on the fair value of the collateral or a discounted cash flow model of expected cash flows.\n\nWe identified the default assumption used within the quantitative ACL model as a critical audit matter. The principal considerations for our determination included the high degree of judgment and subjectivity involved in management’s selection and application of the default assumption to collectively evaluated loans and the sensitivity of the ACL to that assumption. Auditing this assumption required a high degree of subjectivity and auditor effort.\n\nThe primary audit procedures we performed to address this critical audit matter included:\n\n•\n\nObtained an understanding and evaluated and tested the design and operating effectiveness of controls relating to management’s estimate of the ACL, including controls over:\n\no\n\nThe completeness and accuracy of loan data used in the quantitative model, including selected risk rating information utilized in certain default assumptions\n\no\n\nThe selection of certain assumptions within the quantitative model, including whether the use of those assumptions is adequately supported and accurately applied and management’s review and approval process over the final determination of the ACL\n\n•\n\nTested the mathematical accuracy of the calculation of the ACL, including the application of the default assumption within the model.\n\n•\n\nEvaluated default assumptions utilized in the quantitative model, including performing sensitivity analyses over selected assumptions and loan segments, assessing the reasonableness and basis of the documented methodology, credit quality trends, and supporting loan risk rating information.\n\n​\n\n77\n\n[Table of Contents](#TOC)\n\n****​\n\n​\n\n**/s/****Forvis Mazars, LLP**\n\n​\n\n​\n\n​\n\nWe have served as the Company’s auditor since 2004.\n\n**Springfield, Missouri**\n\n**September 11, 2026**\n\n​\n\n​\n\n78\n\n[Table of Contents](#TOC)\n\n> CONSOLIDATED BALANCE SHEETS <\n\nJUNE 30, 2026 AND 2025\n\nSouthern Missouri Bancorp, Inc.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Assets**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n​\n\n$\n\n90,966\n\n​\n\n$\n\n192,859\n\nInterest-bearing time deposits\n\n​\n\n \n\n—\n\n​\n\n \n\n246\n\nAvailable-for-sale-securities (Note 2)\n\n​\n\n \n\n450,775\n\n​\n\n \n\n460,844\n\nStock in FHLB\n\n​\n\n \n\n10,930\n\n​\n\n \n\n9,361\n\nStock in Federal Reserve Bank of St. Louis\n\n​\n\n \n\n9,181\n\n​\n\n \n\n9,139\n\nLoans held for sale\n\n​\n\n \n\n1,787\n\n​\n\n \n\n431\n\nLoans receivable, net of ACL of $54,912 and $51,629 at June 30, 2026 and June 30, 2025, respectively (Note 3)\n\n​\n\n​\n\n4,336,896\n\n​\n\n​\n\n4,048,961\n\nAccrued interest receivable\n\n​\n\n \n\n26,868\n\n​\n\n \n\n26,018\n\nPremises and equipment, net (Note 4)\n\n​\n\n \n\n93,191\n\n​\n\n \n\n95,982\n\nBank owned life insurance – cash surrender value\n\n​\n\n \n\n77,117\n\n​\n\n \n\n75,691\n\nGoodwill\n\n​\n\n \n\n50,727\n\n​\n\n \n\n50,727\n\nOther intangible assets, net\n\n​\n\n \n\n19,893\n\n​\n\n \n\n22,994\n\nPrepaid expenses and other assets\n\n​\n\n \n\n68,050\n\n​\n\n \n\n26,354\n\nTOTAL ASSETS\n\n​\n\n$\n\n5,236,381\n\n​\n\n$\n\n5,019,607\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Liabilities and Stockholders' Equity**\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nDeposits (Note 5)\n\n​\n\n$\n\n4,407,846\n\n​\n\n$\n\n4,281,368\n\nSecurities sold under agreements to repurchase (Note 6)\n\n​\n\n​\n\n20,000\n\n​\n\n​\n\n15,000\n\nAdvances from FHLB (Note 7)\n\n​\n\n \n\n130,424\n\n​\n\n \n\n104,052\n\nAccounts payable and other liabilities\n\n​\n\n \n\n59,885\n\n​\n\n \n\n37,101\n\nAccrued interest payable\n\n​\n\n \n\n11,782\n\n​\n\n \n\n14,186\n\nSubordinated debt (Note 8)\n\n​\n\n \n\n15,766\n\n​\n\n \n\n23,208\n\nTOTAL LIABILITIES\n\n​\n\n \n\n4,645,703\n\n​\n\n \n\n4,474,915\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommitments and contingencies (Note 13)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommon stock, $.01 par value; 25,000,000 shares authorized; 12,009,617 and 11,980,887 shares issued at June 30, 2026 and June 30, 2025, respectively\n\n​\n\n \n\n120\n\n​\n\n \n\n120\n\nAdditional paid-in capital\n\n​\n\n \n\n223,597\n\n​\n\n \n\n221,347\n\nRetained earnings\n\n​\n\n \n\n420,283\n\n​\n\n \n\n359,576\n\nTreasury stock of 998,508 and 681,420 shares at June 30, 2026 and June 30, 2025, respectively, at cost\n\n​\n\n \n\n(43,550)\n\n​\n\n \n\n(24,973)\n\nAccumulated other comprehensive loss\n\n​\n\n \n\n(9,772)\n\n​\n\n \n\n(11,378)\n\nTOTAL STOCKHOLDERS' EQUITY\n\n​\n\n \n\n590,678\n\n​\n\n \n\n544,692\n\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\n\n​\n\n$\n\n5,236,381\n\n​\n\n$\n\n5,019,607\n\n​\n\nSee accompanying notes to consolidated financial statements.\n\n​\n\n79\n\n[Table of Contents](#TOC)\n\n> CONSOLIDATED STATEMENTS OF INCOME <\n\nYEARS ENDED JUNE 30, 2026, 2025 AND 2024\n\nSouthern Missouri Bancorp, Inc.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands except per share data)*\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Interest Income**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLoans\n\n​\n\n$\n\n265,208\n\n​\n\n$\n\n250,846\n\n​\n\n$\n\n222,512\n\nInvestment securities\n\n​\n\n​\n\n4,962\n\n​\n\n​\n\n5,808\n\n​\n\n​\n\n6,877\n\nMortgage-backed securities\n\n​\n\n​\n\n15,554\n\n​\n\n​\n\n16,567\n\n​\n\n​\n\n14,631\n\nOther interest-earning assets\n\n​\n\n​\n\n3,262\n\n​\n\n​\n\n4,144\n\n​\n\n​\n\n4,355\n\nTOTAL INTEREST INCOME\n\n​\n\n​\n\n288,986\n\n​\n\n​\n\n277,365\n\n​\n\n​\n\n248,375\n\n**Interest Expense**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDeposits\n\n​\n\n​\n\n109,209\n\n​\n\n​\n\n115,773\n\n​\n\n​\n\n101,706\n\nSecurities sold under agreements to repurchase\n\n​\n\n​\n\n806\n\n​\n\n​\n\n766\n\n​\n\n​\n\n451\n\nAdvances from FHLB\n\n​\n\n​\n\n4,665\n\n​\n\n​\n\n4,582\n\n​\n\n​\n\n4,993\n\nSubordinated debt\n\n​\n\n​\n\n1,457\n\n​\n\n​\n\n1,628\n\n​\n\n​\n\n1,742\n\nTOTAL INTEREST EXPENSE\n\n​\n\n​\n\n116,137\n\n​\n\n​\n\n122,749\n\n​\n\n​\n\n108,892\n\nNET INTEREST INCOME\n\n​\n\n​\n\n172,849\n\n​\n\n​\n\n154,616\n\n​\n\n​\n\n139,483\n\nProvision for credit losses (Note 3)\n\n​\n\n​\n\n11,454\n\n​\n\n​\n\n6,523\n\n​\n\n​\n\n3,600\n\nNET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES\n\n​\n\n​\n\n161,395\n\n​\n\n​\n\n148,093\n\n​\n\n​\n\n135,883\n\n**Noninterest Income**\n\n​\n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\nDeposit account charges and related fees\n\n​\n\n​\n\n9,481\n\n​\n\n​\n\n8,625\n\n​\n\n​\n\n7,399\n\nBank card interchange income\n\n​\n\n​\n\n6,480\n\n​\n\n​\n\n5,981\n\n​\n\n​\n\n5,744\n\nLoan late charges\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n579\n\nLoan servicing fees\n\n​\n\n​\n\n1,005\n\n​\n\n​\n\n909\n\n​\n\n​\n\n1,277\n\nOther loan fees\n\n​\n\n​\n\n464\n\n​\n\n​\n\n3,767\n\n​\n\n​\n\n2,375\n\nNet realized gains on sale of loans\n\n​\n\n​\n\n904\n\n​\n\n​\n\n751\n\n​\n\n​\n\n713\n\nNet realized gains (losses) on sale of AFS securities\n\n​\n\n​\n\n—\n\n​\n\n​\n\n48\n\n​\n\n​\n\n(1,489)\n\nEarnings on bank owned life insurance\n\n​\n\n​\n\n2,571\n\n​\n\n​\n\n2,084\n\n​\n\n​\n\n1,911\n\nInsurance brokerage commissions\n\n​\n\n​\n\n1,431\n\n​\n\n​\n\n1,294\n\n​\n\n​\n\n1,217\n\nWealth management fees\n\n​\n\n​\n\n3,773\n\n​\n\n​\n\n3,300\n\n​\n\n​\n\n3,166\n\nOther income\n\n​\n\n​\n\n1,688\n\n​\n\n​\n\n1,225\n\n​\n\n​\n\n1,952\n\nTOTAL NONINTEREST INCOME\n\n​\n\n​\n\n27,797\n\n​\n\n​\n\n27,984\n\n​\n\n​\n\n24,844\n\n**Noninterest Expense**\n\n​\n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\nCompensation and benefits\n\n​\n\n​\n\n54,899\n\n​\n\n​\n\n55,758\n\n​\n\n​\n\n53,253\n\nOccupancy and equipment, net\n\n​\n\n​\n\n15,448\n\n​\n\n​\n\n14,887\n\n​\n\n​\n\n14,405\n\nData processing expense\n\n​\n\n​\n\n10,600\n\n​\n\n​\n\n9,327\n\n​\n\n​\n\n8,968\n\nTelecommunications expense\n\n​\n\n​\n\n1,252\n\n​\n\n​\n\n1,423\n\n​\n\n​\n\n1,928\n\nDeposit insurance premiums\n\n​\n\n​\n\n2,195\n\n​\n\n​\n\n2,335\n\n​\n\n​\n\n2,463\n\nLegal and professional fees\n\n​\n\n​\n\n2,707\n\n​\n\n​\n\n3,595\n\n​\n\n​\n\n1,731\n\nAdvertising\n\n​\n\n​\n\n2,285\n\n​\n\n​\n\n2,070\n\n​\n\n​\n\n2,119\n\nPostage and office supplies\n\n​\n\n​\n\n1,369\n\n​\n\n​\n\n1,274\n\n​\n\n​\n\n1,237\n\nIntangibles amortization\n\n​\n\n​\n\n3,076\n\n​\n\n​\n\n3,540\n\n​\n\n​\n\n4,071\n\nForeclosed property expenses, net\n\n​\n\n​\n\n240\n\n​\n\n​\n\n104\n\n​\n\n​\n\n148\n\nOther operating expense\n\n​\n\n​\n\n8,017\n\n​\n\n​\n\n7,770\n\n​\n\n​\n\n7,294\n\nTOTAL NONINTEREST EXPENSE\n\n​\n\n​\n\n102,088\n\n​\n\n​\n\n102,083\n\n​\n\n​\n\n97,617\n\nINCOME BEFORE INCOME TAXES\n\n​\n\n​\n\n87,104\n\n​\n\n​\n\n73,994\n\n​\n\n​\n\n63,110\n\nIncome Taxes (Note 10)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent\n\n​\n\n​\n\n16,562\n\n​\n\n​\n\n14,722\n\n​\n\n​\n\n12,234\n\nDeferred\n\n​\n\n​\n\n(1,297)\n\n​\n\n​\n\n694\n\n​\n\n​\n\n694\n\nTOTAL INCOME TAXES\n\n​\n\n​\n\n15,265\n\n​\n\n​\n\n15,416\n\n​\n\n​\n\n12,928\n\nNET INCOME\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic earnings per share\n\n​\n\n$\n\n6.44\n\n​\n\n$\n\n5.19\n\n​\n\n$\n\n4.42\n\nDiluted earnings per share\n\n​\n\n$\n\n6.43\n\n​\n\n$\n\n5.18\n\n​\n\n$\n\n4.42\n\nDividends paid per share\n\n​\n\n$\n\n1.00\n\n​\n\n$\n\n0.92\n\n​\n\n$\n\n0.84\n\nSee accompanying notes to consolidated financial statements.\n\n80\n\n[Table of Contents](#TOC)\n\n> CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME <\n\nYEARS ENDED JUNE 30, 2026, 2025 AND 2024\n\nSouthern Missouri Bancorp, Inc.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet Income\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\nOther comprehensive income:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nUnrealized gains on securities available-for-sale\n\n​\n\n​\n\n2,058\n\n​\n\n​\n\n7,836\n\n​\n\n​\n\n4,234\n\nLess: reclassification adjustment for realized gains (losses) included in net income\n\n​\n\n​\n\n—\n\n​\n\n​\n\n48\n\n​\n\n​\n\n(1,489)\n\nDefined benefit pension plan net gain\n\n​\n\n​\n\n1\n\n​\n\n​\n\n2\n\n​\n\n​\n\n5\n\nTax expense\n\n​\n\n​\n\n(453)\n\n​\n\n​\n\n(1,713)\n\n​\n\n​\n\n(1,258)\n\nTotal other comprehensive income\n\n​\n\n​\n\n1,606\n\n​\n\n​\n\n6,077\n\n​\n\n​\n\n4,470\n\nComprehensive Income\n\n​\n\n$\n\n73,445\n\n​\n\n$\n\n64,655\n\n​\n\n$\n\n54,652\n\n​\n\nSee accompanying notes to consolidated financial statements.\n\n​\n\n81\n\n[Table of Contents](#TOC)\n\n> CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY <\n\nYEARS ENDED JUNE 30, 2026, 2025 AND 2024\n\nSouthern Missouri Bancorp, Inc.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\nAdditional\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccumulated Other\n\n​\n\nTotal\n\n​\n\n \n\nCommon\n\n \n\nPaid-In\n\n \n\nRetained\n\n \n\nTreasury\n\n \n\nComprehensive\n\n \n\nStockholders'\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nStock\n\n  ​ ​ ​\n\nCapital\n\n  ​ ​ ​\n\nEarnings\n\n  ​ ​ ​\n\nStock\n\n  ​ ​ ​\n\nLoss\n\n  ​ ​ ​\n\nEquity\n\nBALANCE AS OF JUNE 30, 2023\n\n​\n\n$\n\n119\n\n​\n\n​\n\n218,260\n\n​\n\n​\n\n270,720\n\n​\n\n​\n\n(21,116)\n\n​\n\n​\n\n(21,925)\n\n​\n\n​\n\n446,058\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet Income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n50,182\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n50,182\n\nChange in unrealized loss on available-for-sale securities, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n4,465\n\n​\n\n​\n\n4,465\n\nDefined benefit pension plan net gain\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n5\n\n​\n\n​\n\n5\n\nDividends paid on common stock ($.84 per share)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(9,526)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(9,526)\n\nStock option expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n333\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n333\n\nStock grant expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n696\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n696\n\nExercise of stock options\n\n​\n\n​\n\n​\n\n​\n\n​\n\n391\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n391\n\nCommon stock issued\n\n​\n\n​\n\n1\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1\n\nTreasury stock purchased\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(3,857)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(3,857)\n\nBALANCE AS OF JUNE 30, 2024\n\n​\n\n​\n\n120\n\n​\n\n​\n\n219,680\n\n​\n\n​\n\n311,376\n\n​\n\n​\n\n(24,973)\n\n​\n\n​\n\n(17,455)\n\n​\n\n​\n\n488,748\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet Income\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n58,578\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n58,578\n\nChange in unrealized loss on available-for-sale securities, net\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n6,075\n\n​\n\n​\n\n6,075\n\nDefined benefit pension plan net gain\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2\n\n​\n\n​\n\n2\n\nDividends paid on common stock ($.92 per share)\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(10,378)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(10,378)\n\nStock option expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n369\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n369\n\nStock grant expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1,298\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1,298\n\nBALANCE AS OF JUNE 30, 2025\n\n​\n\n​\n\n120\n\n​\n\n​\n\n221,347\n\n​\n\n​\n\n359,576\n\n​\n\n​\n\n(24,973)\n\n​\n\n​\n\n(11,378)\n\n​\n\n​\n\n544,692\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet Income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n71,839\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n71,839\n\nChange in unrealized loss on available-for-sale securities, net\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1,605\n\n​\n\n​\n\n1,605\n\nDefined benefit pension plan net gain\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1\n\n​\n\n​\n\n1\n\nDividends paid on common stock ($1.00 per share)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(11,132)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(11,132)\n\nStock option expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n420\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n420\n\nStock grant expense\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1,370\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1,370\n\nExercise of stock options\n\n​\n\n​\n\n​\n\n​\n\n​\n\n460\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n460\n\nTreasury stock purchased\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(18,577)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n(18,577)\n\nBALANCE AS OF JUNE 30, 2026\n\n​\n\n$\n\n120\n\n​\n\n$\n\n223,597\n\n​\n\n$\n\n420,283\n\n​\n\n$\n\n(43,550)\n\n​\n\n$\n\n(9,772)\n\n​\n\n$\n\n590,678\n\n​\n\n​\n\nSee accompanying notes to consolidated financial statements.\n\n​\n\n82\n\n[Table of Contents](#TOC)\n\n> CONSOLIDATED STATEMENTS OF CASH FLOWS <\n\nYEARS ENDED JUNE 30, 2026, 2025 AND 2024\n\nSouthern Missouri Bancorp, Inc.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Cash Flows From Operating Activities:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet Income\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\nItems not requiring (providing) cash:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDepreciation\n\n​\n\n \n\n6,509\n\n​\n\n \n\n6,482\n\n​\n\n \n\n6,021\n\nLoss on disposal of fixed assets\n\n​\n\n \n\n—\n\n​\n\n \n\n73\n\n​\n\n \n\n—\n\nStock option and stock grant expense\n\n​\n\n \n\n1,790\n\n​\n\n \n\n1,667\n\n​\n\n \n\n1,029\n\nLoss (gain) on sale/write-down of foreclosed property\n\n​\n\n \n\n77\n\n​\n\n \n\n(56)\n\n​\n\n \n\n74\n\nAmortization of intangible assets\n\n​\n\n \n\n3,076\n\n​\n\n \n\n3,540\n\n​\n\n \n\n4,071\n\nAccretion of purchase accounting adjustments\n\n​\n\n \n\n(2,200)\n\n​\n\n \n\n(3,924)\n\n​\n\n \n\n(5,325)\n\nIncrease in cash surrender value of bank owned life insurance (BOLI)\n\n​\n\n \n\n(2,571)\n\n​\n\n \n\n(2,084)\n\n​\n\n \n\n(1,911)\n\nProvision for credit losses\n\n​\n\n \n\n11,454\n\n​\n\n \n\n6,523\n\n​\n\n \n\n3,600\n\n(Gain) loss realized on sale of AFS securities\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(48)\n\n​\n\n​\n\n1,489\n\nNet amortization of premiums and discounts on securities\n\n​\n\n \n\n(778)\n\n​\n\n \n\n(1,511)\n\n​\n\n \n\n(842)\n\nOriginations of loans held for sale\n\n​\n\n \n\n(32,098)\n\n​\n\n \n\n(22,206)\n\n​\n\n \n\n(21,857)\n\nProceeds from sales of loans held for sale\n\n​\n\n \n\n31,646\n\n​\n\n \n\n23,209\n\n​\n\n \n\n22,044\n\nGain on sales of loans held for sale\n\n​\n\n \n\n(904)\n\n​\n\n \n\n(751)\n\n​\n\n \n\n(713)\n\nGain on sale of investment tax credit\n\n​\n\n​\n\n(305)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nChanges in:\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nAccrued interest receivable\n\n​\n\n \n\n(850)\n\n​\n\n \n\n(2,192)\n\n​\n\n \n\n(4,955)\n\nPrepaid expenses and other assets\n\n​\n\n \n\n(6,209)\n\n​\n\n \n\n6,682\n\n​\n\n \n\n8,943\n\nAccounts payable and other liabilities\n\n​\n\n \n\n3,748\n\n​\n\n \n\n6,217\n\n​\n\n \n\n(141)\n\nDeferred income taxes\n\n​\n\n \n\n(1,297)\n\n​\n\n \n\n40\n\n​\n\n \n\n414\n\nAccrued interest payable\n\n​\n\n \n\n(2,404)\n\n​\n\n \n\n1,318\n\n​\n\n \n\n8,145\n\nNet cash provided by operating activities\n\n​\n\n \n\n80,523\n\n​\n\n \n\n81,557\n\n​\n\n \n\n70,268\n\n**Cash Flows From Investing Activities:**\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nNet increase in loans\n\n​\n\n \n\n(303,952)\n\n​\n\n \n\n(254,933)\n\n​\n\n \n\n(228,444)\n\nNet change in interest-bearing deposits\n\n​\n\n \n\n249\n\n​\n\n \n\n248\n\n​\n\n \n\n744\n\nProceeds from maturities of available-for-sale securities\n\n​\n\n \n\n73,249\n\n​\n\n \n\n68,622\n\n​\n\n \n\n42,322\n\nProceeds from sales of available-for-sale securities\n\n​\n\n \n\n—\n\n​\n\n \n\n72\n\n​\n\n \n\n32,243\n\nPurchases of Federal Home Loan Bank stock\n\n​\n\n \n\n(17,127)\n\n​\n\n \n\n(12,069)\n\n​\n\n \n\n(13,377)\n\nRedemptions of Federal Home Loan Bank stock\n\n​\n\n​\n\n15,558\n\n​\n\n​\n\n11,421\n\n​\n\n​\n\n16,204\n\nPurchases of Federal Reserve Bank of St. Louis stock\n\n​\n\n \n\n(42)\n\n​\n\n \n\n(50)\n\n​\n\n \n\n(28)\n\nPurchases of available-for-sale securities\n\n​\n\n \n\n(60,344)\n\n​\n\n \n\n(92,288)\n\n​\n\n \n\n(79,837)\n\nPurchases of long-term investments and other assets\n\n​\n\n​\n\n(375)\n\n​\n\n​\n\n(612)\n\n​\n\n​\n\n(410)\n\nRedemptions of long-term investments and other assets\n\n​\n\n​\n\n432\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nPurchases of premises and equipment\n\n​\n\n \n\n(3,959)\n\n​\n\n \n\n(6,263)\n\n​\n\n \n\n(9,047)\n\nInvestments in state & federal tax credits\n\n​\n\n \n\n(10,207)\n\n​\n\n \n\n(3,270)\n\n​\n\n \n\n(7,381)\n\nProceeds from sale of fixed assets\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n15\n\nProceeds from sale of foreclosed assets\n\n​\n\n \n\n1,485\n\n​\n\n \n\n4,010\n\n​\n\n \n\n1,261\n\nProceeds from sale of investment tax credits\n\n​\n\n​\n\n315\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nProceeds from BOLI claim\n\n​\n\n​\n\n1,150\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nNet cash used in investing activities\n\n​\n\n \n\n(303,568)\n\n​\n\n \n\n(285,112)\n\n​\n\n \n\n(245,735)\n\n**Cash Flows From Financing Activities:**\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nNet increase (decrease) in demand deposits and savings accounts\n\n​\n\n \n\n34,983\n\n​\n\n \n\n25,152\n\n​\n\n \n\n(53,833)\n\nNet increase in certificates of deposits\n\n​\n\n \n\n91,573\n\n​\n\n \n\n313,188\n\n​\n\n \n\n280,768\n\nNet increase in securities sold under agreements to repurchase\n\n​\n\n \n\n5,000\n\n​\n\n \n\n5,602\n\n​\n\n \n\n—\n\nProceeds from Federal Home Loan Bank advances\n\n​\n\n \n\n394,300\n\n​\n\n \n\n260,000\n\n​\n\n \n\n303,200\n\nRepayments of Federal Home Loan Bank advances\n\n​\n\n \n\n(367,955)\n\n​\n\n \n\n(258,054)\n\n​\n\n \n\n(334,752)\n\nRepayments of long-term debt\n\n​\n\n​\n\n(7,500)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nCommon stock issued\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n1\n\nExercise of stock options\n\n​\n\n \n\n460\n\n​\n\n \n\n—\n\n​\n\n \n\n391\n\nPurchases of treasury stock\n\n​\n\n \n\n(18,577)\n\n​\n\n \n\n—\n\n​\n\n \n\n(3,857)\n\nDividends paid on common stock\n\n​\n\n​\n\n(11,132)\n\n​\n\n​\n\n(10,378)\n\n​\n\n​\n\n(9,526)\n\nNet cash provided by financing activities\n\n​\n\n \n\n121,152\n\n​\n\n \n\n335,510\n\n​\n\n \n\n182,392\n\n(Decrease) increase in cash and cash equivalents\n\n​\n\n \n\n(101,893)\n\n​\n\n \n\n131,955\n\n​\n\n \n\n6,925\n\nCash and cash equivalents at beginning of period\n\n​\n\n \n\n192,859\n\n​\n\n \n\n60,904\n\n​\n\n \n\n53,979\n\nCash and cash equivalents at end of period\n\n​\n\n$\n\n90,966\n\n​\n\n$\n\n192,859\n\n​\n\n$\n\n60,904\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n83\n\n[Table of Contents](#TOC)\n\n**Supplemental disclosures of cash flow information:**\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nNoncash investing and financing activities:\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\n​\n\n \n\n  ​\n\nConversion of loans to foreclosed real estate\n\n​\n\n$\n\n6,328\n\n​\n\n$\n\n625\n\n​\n\n$\n\n1,376\n\nConversion of loans to repossessed assets\n\n​\n\n \n\n417\n\n​\n\n \n\n98\n\n​\n\n \n\n209\n\nRight of use (ROU) assets obtained in exchange for lease obligations: Operating Leases\n\n​\n\n \n\n241\n\n​\n\n \n\n322\n\n​\n\n \n\n2,332\n\nTermination of lease right of use asset and related lease obligation\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n1,401\n\nInvestment tax credits obtained in exchange for delayed capital contributions\n\n​\n\n​\n\n29,393\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nInvestment tax credits obtained in exchange for settlement of loans\n\n​\n\n​\n\n500\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nInvestment tax credits cancelled in exchange for sale of membership interest\n\n​\n\n​\n\n4,855\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash paid during the period for:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest (net of interest credited)\n\n​\n\n$\n\n7,813\n\n​\n\n$\n\n8,148\n\n​\n\n$\n\n7,706\n\nIncome taxes\n\n​\n\n \n\n9,139\n\n​\n\n \n\n7,530\n\n​\n\n \n\n2,298\n\n​\n\nSee accompanying notes to consolidated financial statements.\n\n​\n\n84\n\n[Table of Contents](#TOC)\n\nNOTE 1: Organization and Summary of Significant Accounting Policies\n\n*Organization.*Southern Missouri Bancorp, Inc., a Missouri corporation (the Company) was organized in 1994 and is the parent company of Southern Bank (the Bank). Substantially all of the Company’s consolidated revenues are derived from the operations of the Bank, and the Bank represents substantially all of the Company’s consolidated assets and liabilities. SB Real Estate Investments, LLC is a wholly-owned subsidiary of the Bank formed to hold Southern Bank Real Estate Investments, LLC. Southern Bank Real Estate Investments, LLC is a real estate investment trust (REIT) which is controlled by SB Real Estate Investments, LLC, and has other preferred shareholders in order to meet the requirements to be a REIT. At June 30, 2026, assets of the REIT were approximately $1.5 billion, and consisted primarily of real estate loan participations acquired from the Bank.\n\nThe 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.\n\n*Basis of Financial Statement Presentation.*The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In the normal course of business, the Company encounters two significant types of risk: economic and regulatory. Economic risk is comprised of interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities reprice on a different basis than its interest-earning assets. Credit risk is the risk of default on the Company’s investment or loan portfolios resulting from the borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the investment portfolio, collateral underlying loans receivable, and the value of the Company’s investments in real estate. Regulatory risk is comprised of extensive state and federal laws and regulations designed primarily to protect consumers, depositors, and deposit insurance funds rather than shareholders. Changes in these regulations, actions by supervisory authorities, or significant litigation could impose operational restrictions, require substantial compliance resources, and result in penalties that may negatively impact our business and shareholder value.\n\n*Principles of Consolidation.*The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated.\n\n*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.\n\nMaterial estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses.\n\n*Cash and Cash Equivalents.*For purposes of reporting cash flows, cash and cash equivalents includes cash, due from depository institutions and interest-bearing deposits in other depository institutions with original maturities of three months or less. Interest-bearing deposits in other depository institutions were $42.1 million and $136.9 million at June 30, 2026 and 2025, respectively. The deposits are held in various commercial banks with a total of $1.7 million and $1.8 million exceeding the FDIC deposit insurance limits at June 30, 2026 and 2025, respectively, as well as at the Federal Reserve and the Federal Home Loan Bank of Des Moines and Chicago.\n\n*Interest-bearing Time Deposits.*Interest bearing deposits in banks mature within three years and are carried at cost.\n\n*Available-for-sale Securities.*Available-for-sale (“AFS”) securities, which include any security for which the Company has no immediate plan to sell but may be sold in the future, are carried at fair value. Unrealized gains and\n\n85\n\n[Table of Contents](#TOC)\n\nlosses, net of tax, are reported in accumulated other comprehensive income (loss), a component of stockholders’ equity. All securities have been classified as AFS.\n\nPremiums 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.\n\nFor AFS securities with fair value less than amortized cost that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income (loss). The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections, and is recorded to the ACL, by a charge to provision for credit losses. Accrued interest receivable is excluded from the estimate of credit losses. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired AFS security, or, if it is more likely than not the Company will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in this situation.\n\nThe Company evaluates impaired AFS securities at the individual level on a quarterly basis, and considers factors including, but not limited to: the extent to which the fair value of the security is less than the amortized cost basis; adverse conditions specifically related to the security, an industry, or geographic area; the payment structure of the security and likelihood of the issuer to be able to make payments that may increase in the future; failure of the issuer to make scheduled interest or principal payments; any changes to the rating of the security by a rating agency; and the ability and intent to hold the security until maturity. A qualitative determination as to whether any portion of the impairment is attributable to credit risk is acceptable. There were no credit-related factors contributing to the unrealized losses on AFS securities at June 30, 2026, or June 30, 2025.\n\nChanges 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.\n\n*Federal Reserve Bank and Federal Home Loan Bank Stock.*The Bank is a member of the Federal Reserve and the Federal Home Loan Bank (FHLB) systems. Capital stock of the Federal Reserve and the FHLB is a required investment based upon a predetermined formula and is carried at cost.\n\n*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.\n\n*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.\n\nInterest 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\n\n86\n\n[Table of Contents](#TOC)\n\ncase 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.\n\nThe ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans, and is established through provision for credit losses charged to current earnings. The ACL is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received.\n\nManagement estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Adjustments may be made to historical loss information for differences identified in current loan-specific risk characteristics, such as differences in underwriting standards or terms; lending review systems; experience, ability, or depth of lending management and staff; portfolio growth and mix; delinquency levels and trends; as well as for changes in environmental conditions, such as changes in economic activity or employment, agricultural economic conditions, property values, or other relevant factors. The Company generally incorporates a reasonable and supportable forecast period of four quarters, and thereafter immediately reverts to long-term historical averages.\n\nThe ACL is measured on a collective (pool) basis when similar risk characteristics exist. For loans that do not share general risk characteristics with the collectively evaluated pools, the Company estimates credit losses on an individual loan basis, and these loans are excluded from the collectively evaluated pools. An ACL for an individually evaluated loan is recorded when the amortized cost basis of the loan exceeds the discounted estimated cash flows using the loan’s initial effective interest rate or the fair value, less estimated costs to sell, of the collateral for certain collateral dependent loans. For the collectively evaluated pools, the Company segments the loan portfolio primarily by loan purpose and collateral into 23 pools, which are homogeneous groups of loans that possess similar loss potential characteristics. The Company primarily utilizes the discounted cash flow (“DCF”) methodology for measurement of the required ACL. For a limited number of pools with a relatively small balance of unpaid principal balance, the Company utilizes the remaining life method. The Company does not measure ACL on accrued interest for those pools utilizing the remaining life method, as the uncollectible accrued interest receivable balance is written off within 90 days. The DCF model implements probability of default (“PD”) and loss given default (“LGD”) calculations at the instrument level. PD and LGD are determined based on a regression analysis and correlation of historical losses with various economic factors over time. In general, the Company’s losses have not correlated well with economic factors, and the Company has utilized peer data where more appropriate. The Company defines a default as an event of charge off, an adverse (substandard or worse) internal credit rating on most loan types, except agriculture production and agriculture real estate (watch or worse), becoming delinquent 90 days or more, being modified for experiencing financial difficulty, or being placed on nonaccrual status. A PD/LGD estimate is applied to a projected model of the loan’s cashflow, including principal and interest payments, with consideration for prepayment speeds, principal curtailments, and recovery lag.\n\n87\n\n[Table of Contents](#TOC)\n\nAs 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.\n\n​\n\nThe qualitative adjustments considered will include internal factors such as:\n\n●Lending policies and procedures, including changes in underwriting standards, collection, charge-off, and recovery practices.\n\n●Nature and volume of the portfolio and term of loans.\n\n●Experience, depth, and ability of lending management.\n\n●Volume and severity of past due loans and other similar conditions.\n\n●Quality of the organization's review system.\n\n●Existence and effect of any concentrations of credit and changes in the levels of concentrations.\n\n​\n\nQualitative adjustments considered will also include external factors such as:\n\n●Value of underlying collateral for collateral-dependent loans.\n\n●International, national, regional and local conditions, if not adequately addressed through the modeled loss factors.\n\n●Effect of other external factors such as competition, legal and regulatory requirements.\n\n​\n\nLoans 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.\n\nLoan 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.\n\n*Off-Balance Sheet Credit Exposures.*Off-balance sheet credit instruments include commitments to make loans, and commercial letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The ACL on off-balance sheet credit exposures is estimated by loan pool on a quarterly basis under the current CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur and is included in other liabilities on the Company’s consolidated balance sheets. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable.\n\n*Foreclosed Property.*Real estate acquired by foreclosure or by deed in lieu of foreclosure is initially recorded at fair value less estimated selling costs, establishing a new cost basis. Costs for development and improvement of the property are capitalized.\n\nValuations are periodically performed by management, and an allowance for losses is established by a charge to income if the carrying value of a property exceeds its estimated fair value, less estimated selling costs.\n\nLoans 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.\n\n*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\n\n88\n\n[Table of Contents](#TOC)\n\nand 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.\n\nDepreciation is computed by use of straight-line method over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software.\n\n*Bank Owned Life Insurance.*Bank owned life insurance policies are reflected in the consolidated balance sheets at the estimated cash surrender value. Changes in the cash surrender value of these policies, as well as a portion of the insurance proceeds received, are recorded in noninterest income in the consolidated statements of income.\n\n*Goodwill.*The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. As of June 30, 2026, there was no impairment indicated, based on a qualitative assessment of goodwill, which considered: the market value of the Company’s common stock, concentrations of credit; profitability; nonperforming assets; capital levels; and results of recent regulatory examinations.\n\n*Intangible Assets.*The Company’s intangible assets at June 30, 2026 included gross core deposit intangibles of $39.1 million with $23.9 million accumulated amortization, gross other identifiable intangibles of $6.6 million with accumulated amortization of $4.8 million, and mortgage and SBA servicing rights of $2.8 million. At June 30, 2025, the Company’s intangible assets included gross core deposit intangibles of $39.1 million with $21.1 million accumulated amortization, gross other identifiable intangibles of $6.4 million with accumulated amortization of $4.5 million, and mortgage and SBA servicing rights of $2.9 million. The Company’s core deposit intangible assets are being amortized using the straight line method, over periods ranging from five to ten years, with amortization expense expected to be approximately $2.7 million in fiscal 2027, $2.7 million in fiscal 2028, $2.7 million in fiscal 2029, $2.5 million in fiscal 2030, $2.5 million in fiscal 2031, and $3.9 million thereafter. As of June 30, 2026, and June 30, 2025, there was no impairment indicated.\n\nThe Company records mortgage servicing rights (MSR) at fair value for all loans sold on a servicing retained basis with subsequent adjustments to fair value of MSR in accordance with FASB ASC 860. An estimate of the fair value of the Company’s MSR is determined utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Changes in the fair value of MSR are recorded in loan servicing fees in the consolidated statements of income. MSRs totaled $2.3 million at June 30, 2026 and June 30, 2025.\n\n*Low-income housing tax credit equity investments:*The Company records LIHTCs in prepaid expenses and other assets in the consolidated balance sheets and totaled $34.3 million and $196,000 as of June 30, 2026 and 2025, respectively. In accordance with ASU 2023-02, the Company accounts for tax equity investments using the proportional amortization method. For all legally binding unfunded equity commitments, the Company increases its recognized investment and recognizes a liability. As of June 30, 2026, the Company had liabilities of $29.4 million and none at June 30, 2025, related to these investments that are included in accounts payable and other liabilities in the consolidated balance sheets. The federal income tax credits are claimed over a ten-year credit allowance period. The Company’s maximum exposure to loss related to its investments in these unconsolidated variable interest entities is limited to the carrying amount of the investments, net of any unfunded capital commitments and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level, if applicable. The Company believes potential losses from these investments are remote and does not have any loss reserves recorded related to these investments.\n\n89\n\n[Table of Contents](#TOC)\n\n*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.\n\nDeferred income tax expense (benefit) results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.\n\nThe Company recognizes interest and penalties on income taxes as a component of income tax expense.\n\nThe 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.\n\n*Derivative Financial Instruments and Hedging Activities.*The Company enters into derivative financial instruments, primarily interest rate swaps, to manage interest rate risk, facilitate asset/liability management strategies and manage other exposures.**Derivative instruments are accounted pursuant to ASC Topic 815, “*Derivatives and Hedging”,* which requires companies to recognize derivative instruments as either assets or liabilities in the consolidated balance sheet. All derivative financial instruments are recognized as other assets or other liabilities, as applicable, at estimated fair value. The change in each of these financial statement line items is included as operating cash flows in the accompanying consolidated statements of cash flows. The Company does not speculate using derivative instruments. Derivative financial instruments are more fully described in Note 16.\n\n*Incentive Plans.*The Company accounts for its Equity Incentive Plan (EIP), and Omnibus Incentive Plans (OIP) in accordance with ASC 718, “Share-Based Payment.” Compensation expense is based on the market price of the Company’s stock on the date the shares are granted and is recorded over the vesting period. The difference between the grant-date fair value and the fair value on the date the shares are considered earned represents a tax benefit to the Company that is recorded as an adjustment to income tax expense.\n\n*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.\n\nIn 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.\n\n90\n\n[Table of Contents](#TOC)\n\n*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.\n\n*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.\n\n*Comprehensive Income.*Comprehensive income consists of net income and other comprehensive income (loss), net of applicable income taxes. Other comprehensive income (loss) includes unrealized appreciation (depreciation) on AFS securities, unrealized appreciation (depreciation) on AFS securities for which a credit loss has been recognized in income, and changes in the funded status of defined benefit pension plans.\n\n*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.\n\n*Revenue Recognition*. Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes a revenue recognition model for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Most of the Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as loans and investment securities, and revenue related to mortgage servicing activities, which are subject to other accounting standards. A description of the revenue-generating activities that are within the scope of ASC 606, and included in other income in the Company’s condensed consolidated statements of income are as follows:\n\n*Wealth Management Assets and Fees*. Assets managed in fiduciary or investment management accounts by the Company are not included in the consolidated balance sheets since such items are not assets of the Company or its subsidiaries. Fees from fiduciary or investment management activities are recorded in the period in which the service is provided. Fees are generally a function of the market value of assets managed and administered, the volume of transactions, and fees for other services rendered, as set forth in the agreement between the customer and the Company. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on asset valuations and transaction volumes. Any out-of-pocket expenses or services not typically covered by the fee schedule for fiduciary activities are charged directly to the account on a gross basis as revenue is incurred. The Southern Wealth Management division held fiduciary assets totaling $180.0 million and $107.6 as of June 30, 2026 and 2025, respectively, and investment management assets totaling $638.7 million and $538.2 million as of June 30, 2026 and 2025, respectively.\n\n*Insurance commissions.* The Company’s insurance agency subsidiary, Southern Insurance Services, LLC, receives commissions on premiums of new and renewed business policies. Southern Insurance Services, LLC records commission revenue on direct bill policies as the cash is received. For agency bill policies, Southern Insurance Services, LLC retains its commission portion of the customer premium payment and remits the balance to the carrier. In both cases, the entire performance obligation is held by the carriers.\n\n*Service charges on deposits.* The Company generates revenue from fees charged for deposit account maintenance, overdrafts, wire transfers, and check fees. The revenue related to deposit fees is recognized at the time the performance obligation is satisfied.\n\n*ATM/debit card revenue.* The Company generates revenue through service charges on the use of its ATM machines and interchange income from the use of Company issued credit and debit cards. The revenue is recognized at the time the service is used and the performance obligation is satisfied.\n\n*Other income.* Treasury management fees and lock box fees are received and recorded after the service performance obligation is completed. Merchant bank card fees are received from various vendors; however, the\n\n91\n\n[Table of Contents](#TOC)\n\nperformance obligation is with the vendors. The Company records gains on the sale of loans and the sale of OREO properties after the transactions are complete and transfer of ownership has occurred.\n\nThe following paragraphs summarize the impact of new accounting pronouncements:\n\nIn 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.\n\n​\n\nIn December 2023, the FASB issued ASU 2023-09, “Income Taxes - Improvements to Income Tax Disclosures (Topic 740)”. ASU 2023-09 was issued to address requests by investors and creditors for enhanced transparency and decision usefulness of income tax disclosures. Public business entities (PBEs) are required to prepare an annual detailed, tabular tax rate reconciliation. All other entities would be required to provide qualitative disclosure on specific categories and individual jurisdictions that result in significant differences between the statutory and effective tax rates. All entities are required to annually disclose taxes paid disaggregated by federal, state, and foreign taxes, as well as disaggregating taxes by individual jurisdiction if taxes paid exceed 5% of total income taxes paid. The ASU was effective for PBEs for fiscal years beginning after December 15, 2024. The Company adopted this ASU for the fiscal year beginning July 1, 2025, and the accounting and disclosure of this ASU did not have a material impact on the consolidated financial statements, and can be seen in ‘Note 10: Income Taxes’ of the notes**to the consolidated financial statements.\n\n​\n\nIn 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.\n\n​\n\nIn November 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased Loans,” which amends the accounting for acquired loans by introducing a category of purchased seasoned loans and expanding the use of the gross-up approach, requiring qualifying acquired loans to be recorded at purchase price plus an allowance for expected credit losses rather than recognizing a Day-1 provision through earnings. ASU 2025-08 is effective for annual reporting periods beginning after December 15, 2026, including interim periods within those annual periods, and is to be applied prospectively, with early adoption permitted. The Company is evaluating the impact of adoption, including the potential effect on the accounting for loans acquired in future acquisitions.\n\n​\n\nIn 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.\n\n​\n\nIn 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\n\n92\n\n[Table of Contents](#TOC)\n\nrecent 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.\n\n​\n\n​\n\nNOTE 2: Available-for-sale Securities\n\nThe amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available-for-sale consisted of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\n​\n\n​\n\n \n\nGross\n\n \n\nGross\n\n \n\nAllowance\n\n​\n\nEstimated\n\n​\n\n \n\nAmortized\n\n \n\nUnrealized\n\n \n\nUnrealized\n\n \n\nfor\n\n \n\nFair\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\nCost\n\n**  ​ ​ ​**\n\nGains\n\n**  ​ ​ ​**\n\nLosses\n\n**  ​ ​ ​**\n\nCredit Losses\n\n**  ​ ​ ​**\n\nValue\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDebt securities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n24,546\n\n​\n\n$\n\n18\n\n​\n\n$\n\n(1,180)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n23,384\n\nCorporate obligations\n\n​\n\n​\n\n28,228\n\n​\n\n​\n\n112\n\n​\n\n​\n\n(268)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n28,072\n\nAsset-backed securities\n\n​\n\n​\n\n42,011\n\n​\n\n​\n\n404\n\n​\n\n​\n\n(109)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n42,306\n\nOther securities\n\n​\n\n \n\n2,993\n\n​\n\n \n\n9\n\n​\n\n \n\n(47)\n\n​\n\n \n\n—\n\n​\n\n \n\n2,955\n\nTotal debt securities\n\n​\n\n​\n\n97,778\n\n​\n\n​\n\n543\n\n​\n\n​\n\n(1,604)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n96,717\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nResidential MBS issued by governmental sponsored enterprises (GSEs)\n\n​\n\n​\n\n148,840\n\n​\n\n​\n\n1,557\n\n​\n\n​\n\n(4,390)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n146,007\n\nCommercial MBS issued by GSEs\n\n​\n\n​\n\n103,148\n\n​\n\n​\n\n291\n\n​\n\n​\n\n(4,553)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n98,886\n\nCMOs issued by GSEs\n\n​\n\n​\n\n113,502\n\n​\n\n​\n\n229\n\n​\n\n​\n\n(4,566)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n109,165\n\nTotal MBS and CMOs\n\n​\n\n \n\n365,490\n\n​\n\n \n\n2,077\n\n​\n\n \n\n(13,509)\n\n​\n\n \n\n—\n\n​\n\n​\n\n354,058\n\nTotal AFS securities\n\n​\n\n$\n\n463,268\n\n​\n\n$\n\n2,620\n\n​\n\n$\n\n(15,113)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n450,775\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n \n\n​\n\n​\n\n \n\nGross\n\n \n\nGross\n\n​\n\nAllowance\n\n​\n\nEstimated\n\n​\n\n \n\nAmortized\n\n \n\nUnrealized\n\n \n\nUnrealized\n\n \n\nfor\n\n \n\nFair\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nCost\n\n  ​ ​ ​\n\nGains\n\n  ​ ​ ​\n\nLosses\n\n  ​ ​ ​\n\nCredit Losses\n\n**  ​ ​ ​**\n\nValue\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDebt securities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n26,030\n\n​\n\n$\n\n5\n\n​\n\n$\n\n(1,772)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n24,263\n\nCorporate obligations\n\n​\n\n​\n\n31,199\n\n​\n\n​\n\n75\n\n​\n\n​\n\n(632)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n30,642\n\nAsset-backed securities\n\n​\n\n​\n\n42,059\n\n​\n\n​\n\n567\n\n​\n\n​\n\n(145)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n42,481\n\nOther securities\n\n​\n\n​\n\n4,007\n\n​\n\n \n\n10\n\n​\n\n \n\n(53)\n\n​\n\n \n\n—\n\n​\n\n​\n\n3,964\n\nTotal debt securities\n\n​\n\n​\n\n103,295\n\n​\n\n​\n\n657\n\n​\n\n​\n\n(2,602)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n101,350\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nResidential MBS issued by governmental sponsored enterprises (GSEs)\n\n​\n\n​\n\n138,377\n\n​\n\n​\n\n1,623\n\n​\n\n​\n\n(5,005)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n134,995\n\nCommercial MBS issued by GSEs\n\n​\n\n​\n\n96,377\n\n​\n\n​\n\n446\n\n​\n\n​\n\n(4,821)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n92,002\n\nCMOs issued by GSEs\n\n​\n\n​\n\n137,346\n\n​\n\n​\n\n402\n\n​\n\n​\n\n(5,251)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n132,497\n\nTotal MBS and CMOs\n\n​\n\n \n\n372,100\n\n​\n\n \n\n2,471\n\n​\n\n \n\n(15,077)\n\n​\n\n \n\n—\n\n​\n\n \n\n359,494\n\nTotal AFS securities\n\n​\n\n$\n\n475,395\n\n​\n\n$\n\n3,128\n\n​\n\n$\n\n(17,679)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n460,844\n\n​\n\n93\n\n[Table of Contents](#TOC)\n\nThe amortized cost and fair value of available-for-sale securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\nAmortized\n\n \n\nEstimated\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\nCost\n\n**  ​ ​ ​**\n\nFair Value\n\nWithin one year\n\n​\n\n$\n\n8,495\n\n​\n\n$\n\n8,501\n\nAfter one year but less than five years\n\n​\n\n \n\n24,166\n\n​\n\n \n\n24,052\n\nAfter five years but less than ten years\n\n​\n\n \n\n26,992\n\n​\n\n \n\n25,908\n\nAfter ten years\n\n​\n\n \n\n38,125\n\n​\n\n \n\n38,256\n\nTotal investment securities\n\n​\n\n \n\n97,778\n\n​\n\n \n\n96,717\n\nMBS and CMOs\n\n​\n\n \n\n365,490\n\n​\n\n \n\n354,058\n\nTotal AFS securities\n\n​\n\n$\n\n463,268\n\n​\n\n$\n\n450,775\n\n​\n\nThe carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits amounted to $254.1 million and $294.3 million at June 30, 2026 and 2025 respectively.\n\nThere were no gains or losses recognized from sales of AFS securities in fiscal 2026. Gross gains of $48,000 and no gross losses were recognized from sales of AFS securities in fiscal 2025. Gross gains of $67,000 and gross losses of $1.6 million were recognized from sales of AFS securities in fiscal 2024.\n\nThe Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders’ equity at June 30, 2026.\n\nCertain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2026, was $253.8 million, which is approximately 56.3% of the Company’s AFS investment portfolio, as compared to $264.5 million or approximately 57.4% of the Company’s AFS investment portfolio at June 30, 2025. The Company does not consider available-for-sale securities with unrealized losses at June 30, 2026, to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell a significant amount of these investments, and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase.\n\nThe following tables below show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which ACL has not been recorded at June 30, 2026 and 2025.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\nLess than 12 months\n\n \n\n12 months or more\n\n \n\nTotal\n\n​\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n4,948\n\n​\n\n$\n\n39\n\n​\n\n$\n\n12,778\n\n​\n\n$\n\n1,141\n\n​\n\n$\n\n17,726\n\n​\n\n$\n\n1,180\n\nCorporate obligations\n\n​\n\n​\n\n3,972\n\n​\n\n​\n\n28\n\n​\n\n​\n\n7,554\n\n​\n\n​\n\n240\n\n​\n\n​\n\n11,526\n\n​\n\n​\n\n268\n\nAsset-backed securities\n\n​\n\n​\n\n8,997\n\n​\n\n​\n\n10\n\n​\n\n​\n\n884\n\n​\n\n​\n\n100\n\n​\n\n​\n\n9,881\n\n​\n\n​\n\n110\n\nOther securities\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2,653\n\n​\n\n​\n\n47\n\n​\n\n​\n\n2,653\n\n​\n\n​\n\n47\n\nMBS and CMOs\n\n​\n\n \n\n69,804\n\n​\n\n \n\n529\n\n​\n\n \n\n142,219\n\n​\n\n \n\n12,979\n\n​\n\n \n\n212,023\n\n​\n\n \n\n13,508\n\nTotal AFS securities\n\n​\n\n$\n\n87,721\n\n​\n\n$\n\n606\n\n​\n\n$\n\n166,088\n\n​\n\n$\n\n14,507\n\n​\n\n$\n\n253,809\n\n​\n\n$\n\n15,113\n\n​\n\n94\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n \n\nLess than 12 months\n\n \n\n12 months or more\n\n \n\nTotal\n\n​\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n \n\n​\n\n​\n\n​\n\nUnrealized\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\nLosses\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n4,882\n\n​\n\n$\n\n84\n\n​\n\n$\n\n15,807\n\n​\n\n$\n\n1,688\n\n​\n\n$\n\n20,689\n\n​\n\n$\n\n1,772\n\nCorporate obligations\n\n​\n\n​\n\n1,936\n\n​\n\n​\n\n6\n\n​\n\n​\n\n18,194\n\n​\n\n​\n\n626\n\n​\n\n​\n\n20,130\n\n​\n\n​\n\n632\n\nAsset-backed securities\n\n​\n\n​\n\n3,281\n\n​\n\n​\n\n2\n\n​\n\n​\n\n839\n\n​\n\n​\n\n143\n\n​\n\n​\n\n4,120\n\n​\n\n​\n\n145\n\nOther securities\n\n​\n\n​\n\n15\n\n​\n\n​\n\n—\n\n​\n\n​\n\n3,578\n\n​\n\n​\n\n53\n\n​\n\n​\n\n3,593\n\n​\n\n​\n\n53\n\nMBS and CMOs\n\n​\n\n \n\n57,829\n\n​\n\n \n\n465\n\n​\n\n \n\n158,105\n\n​\n\n \n\n14,612\n\n​\n\n \n\n215,934\n\n​\n\n \n\n15,077\n\nTotal AFS securities\n\n​\n\n$\n\n67,943\n\n​\n\n$\n\n557\n\n​\n\n$\n\n196,523\n\n​\n\n$\n\n17,122\n\n​\n\n$\n\n264,466\n\n​\n\n$\n\n17,679\n\n​\n\n*Obligations of States and Political Subdivisions*. The unrealized losses on the Company’s investments in obligations of states and political subdivisions include 12 individual securities which have been in an unrealized loss position for less than 12 months and 25 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.\n\n*Corporate and Other Obligations.* The unrealized losses on the Company’s investments in corporate obligations include three individual securities which have been in an unrealized loss position for less than 12 months and ten individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.\n\n*Asset-Backed Securities.* The unrealized losses on the Company’s investments in asset-backed securities include two individual securities which have been in an unrealized loss position for less than 12 months and two individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates and spreads since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.\n\n*MBS and CMOs*. The unrealized losses on the Company’s investments in MBS and CMOs include 23 individual securities which have been in an unrealized loss position for less than 12 months, and 101 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.\n\nThe Company does not believe that any individual unrealized loss as of June 30, 2026 was attributable to credit-related factors. Should credit conditions of an issuer deteriorate or expected cash flows decline, the Company could be required to recognize an allowance for credit losses on its AFS securities in future periods.\n\n*Credit Losses Recognized on Investments.*There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the fiscal years ended June 30, 2026 and 2025.\n\n​\n\n​\n\n95\n\n[Table of Contents](#TOC)\n\nNOTE 3: Loans and Allowance for Credit Losses\n\nClasses of loans are summarized as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n**June 30, 2026**\n\n  ​ ​ ​\n\nJune 30, 2025\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n1,085,512\n\n​\n\n$\n\n992,445\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n924,144\n\n​\n\n \n\n888,317\n\nOwner occupied commercial real estate\n\n​\n\n \n\n471,990\n\n​\n\n \n\n442,984\n\nMulti-family real estate\n\n​\n\n \n\n469,968\n\n​\n\n \n\n422,758\n\nConstruction and land development\n\n​\n\n​\n\n310,006\n\n​\n\n​\n\n332,405\n\nAgriculture real estate\n\n​\n\n \n\n295,803\n\n​\n\n \n\n244,983\n\nTotal loans secured by real estate\n\n​\n\n \n\n3,557,423\n\n​\n\n \n\n3,323,892\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommercial and industrial\n\n​\n\n​\n\n552,557\n\n​\n\n​\n\n510,259\n\nAgriculture production\n\n​\n\n​\n\n219,155\n\n​\n\n​\n\n206,128\n\nConsumer\n\n​\n\n​\n\n53,144\n\n​\n\n​\n\n55,387\n\nAll other loans\n\n​\n\n​\n\n9,529\n\n​\n\n​\n\n5,102\n\nGross loans\n\n​\n\n \n\n4,391,808\n\n​\n\n \n\n4,100,768\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDeferred loan fees, net\n\n​\n\n \n\n—\n\n​\n\n \n\n(178)\n\nAllowance for credit losses\n\n​\n\n \n\n(54,912)\n\n​\n\n \n\n(51,629)\n\nNet loans\n\n​\n\n$\n\n4,336,896\n\n​\n\n$\n\n4,048,961\n\n​\n\nAt June 30, 2026, net deferred loan fees of ($937,000) were included in the gross loan balances, by type, in the table above. The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. At June 30, 2026, the Bank had purchased participation interests in 62 loans totaling $147.1 million, as compared to 71 loans totaling $188.0 million at June 30, 2025.\n\nRisk characteristics applicable to each class of the loan portfolio are described as follows:\n\n*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.\n\nHome 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.\n\n*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\n\n96\n\n[Table of Contents](#TOC)\n\nborrower’s enterprise, as well as general collateral values, and may be heightened by unique, specific uses of the property serving as collateral. Non-owner-occupied commercial real estate lending risks include tenant demand and performance, lease rates, and vacancies, as well as collateral values and borrower leverage. These factors may be influenced by general economic conditions in the region, or in the United States generally.\n\nMost commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a term of up to ten years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property.\n\n*Multi-Family Real Estate Lending.*The Company originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the Company’s primary market area. The majority of the multi-family residential loans that are originated by the Company are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered, and the Company typically includes an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. General risks related to multi-family residential lending include rental demand and supply, rental rates, and vacancies, as well as collateral values and borrower leverage.\n\n*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.\n\nWhile 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.\n\n*Agriculture Production and Agriculture Real Estate Lending.* Agriculture production and agriculture real estate loans are generally comprised on seasonal operating lines to farmers to plant crops and term loans to fund the purchase of equipment, farmland, or livestock. Agricultural real estate loans generally include row crop ground, pasture, and forestry. The Company originates substantially all agriculture production and agriculture real estate lending to borrowers headquartered in the Company’s primary lending area. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Agriculture production operating lines are typically written for one year and secured by the crop. Agricultural real estate terms offered usually have amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Risks to agricultural lending include unique factors such as commodity prices, yields, input costs, and weather, as well\n\n97\n\n[Table of Contents](#TOC)\n\nas farmland and farm equipment values. As with agricultural real estate loans, the repayment of operating loans is dependent on the successful operation or management of the farm property. The same risk applies to agricultural operating loans which are unsecured or secured by rapidly depreciating assets such as farm equipment or assets such as livestock or crops. As compared to other loan types which generally require monthly payments, an annual payment schedule may increase risk that the Company would not timely identify a borrower experiencing financial difficulties, hindering its ability to work to mitigate losses.\n\n​\n\n*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.\n\n*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.\n\nAutomobile 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.\n\n*Allowance for Credit Losses*. The ACL represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The PCL is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate ACL. In determining the adequacy of the ACL, and therefore the provision to be charged to current earnings, the Company relies primarily on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in developing assumptions for the allowance include historical net credit losses, the level and composition of nonaccrual, past due and modified loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.\n\nIndividually Evaluated Loans. The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified through the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. The reviews use one of the three following alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral values are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. The ACL for individually evaluated loans totaled $7.3 million and $8.2 million at June 30, 2026 and June 30, 2025, respectively.\n\nNon-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\n\n98\n\n[Table of Contents](#TOC)\n\nfactors 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.\n\nQualitative factors. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the DCF model.\n\n*PCD Loans.*In connection with the Citizens Bancshares, Co. (“Citizens”) merger on January 20, 2023, the Company acquired loans both with and without evidence of credit quality deterioration since origination. Acquired loans are recorded at their fair value at the time of acquisition with no carryover from the acquired institution’s previously recorded allowance for loan and lease losses. Acquired loans are accounted for under ASC 326, Financial Instruments – Credit Losses.\n\nThe 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.\n\n​\n\nThe following tables present the activity in the ACL based on portfolio segment for the fiscal years ended June 30, 2026, 2025, and 2024:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\nBalance\n\n \n\nProvision\n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nLosses\n\n​\n\n​\n\n​\n\n​\n\nend\n\n**June 30, 2026**\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\ncharged off\n\n  ​ ​ ​\n\nRecoveries\n\n  ​ ​ ​\n\nof period\n\nAllowance for credit losses on loans:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n10,274\n\n​\n\n$\n\n2,623\n\n​\n\n$\n\n(813)\n\n​\n\n$\n\n1\n\n​\n\n$\n\n12,085\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n12,241\n\n​\n\n​\n\n(303)\n\n​\n\n​\n\n(2,986)\n\n​\n\n​\n\n2,000\n\n​\n\n​\n\n10,952\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n4,521\n\n​\n\n​\n\n703\n\n​\n\n​\n\n(81)\n\n​\n\n​\n\n122\n\n​\n\n​\n\n5,265\n\nMulti-family real estate\n\n​\n\n​\n\n4,329\n\n​\n\n​\n\n(1,234)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n3,095\n\nConstruction and land development\n\n​\n\n​\n\n4,788\n\n​\n\n​\n\n(1,395)\n\n​\n\n​\n\n(192)\n\n​\n\n​\n\n1\n\n​\n\n​\n\n3,202\n\nAgriculture real estate\n\n​\n\n​\n\n4,194\n\n​\n\n​\n\n2,194\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n6,388\n\nCommercial and industrial\n\n​\n\n​\n\n6,952\n\n​\n\n​\n\n2,050\n\n​\n\n​\n\n(2,467)\n\n​\n\n​\n\n69\n\n​\n\n​\n\n6,604\n\nAgriculture production\n\n​\n\n​\n\n3,374\n\n​\n\n​\n\n5,531\n\n​\n\n​\n\n(2,696)\n\n​\n\n​\n\n66\n\n​\n\n​\n\n6,275\n\nConsumer\n\n​\n\n​\n\n952\n\n​\n\n​\n\n805\n\n​\n\n​\n\n(1,103)\n\n​\n\n​\n\n389\n\n​\n\n​\n\n1,043\n\nAll other loans\n\n​\n\n​\n\n4\n\n​\n\n​\n\n(3)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2\n\n​\n\n​\n\n3\n\nTotal\n\n​\n\n$\n\n51,629\n\n​\n\n$\n\n10,971\n\n​\n\n$\n\n(10,338)\n\n​\n\n$\n\n2,650\n\n​\n\n$\n\n54,912\n\n​\n\n99\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance\n\n \n\nProvision\n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nLosses\n\n​\n\n​\n\n​\n\n​\n\nend\n\nJune 30, 2025\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\ncharged off\n\n  ​ ​ ​\n\nRecoveries\n\n  ​ ​ ​\n\nof period\n\nAllowance for credit losses on loans:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n10,528\n\n​\n\n$\n\n(211)\n\n​\n\n$\n\n(89)\n\n​\n\n$\n\n46\n\n​\n\n$\n\n10,274\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n19,055\n\n​\n\n​\n\n(3,014)\n\n​\n\n​\n\n(3,800)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n12,241\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n4,815\n\n​\n\n​\n\n(172)\n\n​\n\n​\n\n(122)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4,521\n\nMulti-family real estate\n\n​\n\n​\n\n5,447\n\n​\n\n​\n\n(1,165)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n47\n\n​\n\n​\n\n4,329\n\nConstruction and land development\n\n​\n\n​\n\n2,901\n\n​\n\n​\n\n1,888\n\n​\n\n​\n\n(1)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4,788\n\nAgriculture real estate\n\n​\n\n​\n\n2,107\n\n​\n\n​\n\n2,087\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4,194\n\nCommercial and industrial\n\n​\n\n​\n\n6,233\n\n​\n\n​\n\n2,160\n\n​\n\n​\n\n(1,508)\n\n​\n\n​\n\n67\n\n​\n\n​\n\n6,952\n\nAgriculture production\n\n​\n\n​\n\n835\n\n​\n\n​\n\n3,589\n\n​\n\n​\n\n(1,052)\n\n​\n\n​\n\n2\n\n​\n\n​\n\n3,374\n\nConsumer\n\n​\n\n​\n\n578\n\n​\n\n​\n\n698\n\n​\n\n​\n\n(411)\n\n​\n\n​\n\n87\n\n​\n\n​\n\n952\n\nAll other loans\n\n​\n\n​\n\n17\n\n​\n\n​\n\n(13)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4\n\nTotal\n\n​\n\n$\n\n52,516\n\n​\n\n$\n\n5,847\n\n​\n\n$\n\n(6,983)\n\n​\n\n$\n\n249\n\n​\n\n$\n\n51,629\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\nBalance\n\n \n\nProvision\n\n​\n\n​\n\n \n\n​\n\n​\n\n​\n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nLosses\n\n​\n\n​\n\n​\n\n​\n\nend\n\nJune 30, 2024\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\ncharged off\n\n  ​ ​ ​\n\nRecoveries\n\n  ​ ​ ​\n\nof period\n\nAllowance for credit losses on loans:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n9,474\n\n​\n\n$\n\n1,067\n\n​\n\n$\n\n(46)\n\n​\n\n$\n\n33\n\n​\n\n$\n\n10,528\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n13,863\n\n​\n\n​\n\n5,688\n\n​\n\n​\n\n(496)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n19,055\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n5,168\n\n​\n\n​\n\n(353)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4,815\n\nMulti-family real estate\n\n​\n\n​\n\n6,806\n\n​\n\n​\n\n(880)\n\n​\n\n​\n\n(479)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n5,447\n\nConstruction and land development\n\n​\n\n​\n\n3,414\n\n​\n\n​\n\n(242)\n\n​\n\n​\n\n(289)\n\n​\n\n​\n\n18\n\n​\n\n​\n\n2,901\n\nAgriculture real estate\n\n​\n\n​\n\n2,567\n\n​\n\n​\n\n(460)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2,107\n\nCommercial and industrial\n\n​\n\n​\n\n5,235\n\n​\n\n​\n\n1,356\n\n​\n\n​\n\n(395)\n\n​\n\n​\n\n37\n\n​\n\n​\n\n6,233\n\nAgriculture production\n\n​\n\n​\n\n782\n\n​\n\n​\n\n53\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n835\n\nConsumer\n\n​\n\n​\n\n490\n\n​\n\n​\n\n400\n\n​\n\n​\n\n(350)\n\n​\n\n​\n\n38\n\n​\n\n​\n\n578\n\nAll other loans\n\n​\n\n​\n\n21\n\n​\n\n​\n\n(4)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n17\n\nTotal\n\n​\n\n$\n\n47,820\n\n​\n\n$\n\n6,625\n\n​\n\n$\n\n(2,055)\n\n​\n\n$\n\n126\n\n​\n\n$\n\n52,516\n\n​\n\n​\n\n100\n\n[Table of Contents](#TOC)\n\nThe following tables present the activity in the allowance for off-balance credit exposure based on portfolio segment for the fiscal years ended June 30, 2026, 2025 and 2024:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\nBalance\n\n​\n\nProvision\n\n \n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nend\n\n**June 30, 2026**\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\nof period\n\nAllowance for off-balance sheet credit exposure:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n202\n\n​\n\n$\n\n30\n\n​\n\n$\n\n232\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n134\n\n​\n\n​\n\n57\n\n​\n\n​\n\n191\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n161\n\n​\n\n​\n\n51\n\n​\n\n​\n\n212\n\nMulti-family real estate\n\n​\n\n​\n\n—\n\n​\n\n​\n\n44\n\n​\n\n​\n\n44\n\nConstruction and land development\n\n​\n\n​\n\n2,279\n\n​\n\n​\n\n233\n\n​\n\n​\n\n2,512\n\nAgriculture real estate\n\n​\n\n​\n\n81\n\n​\n\n​\n\n(13)\n\n​\n\n​\n\n68\n\nCommercial and industrial\n\n​\n\n​\n\n1,074\n\n​\n\n​\n\n(430)\n\n​\n\n​\n\n644\n\nAgriculture production\n\n​\n\n​\n\n—\n\n​\n\n​\n\n510\n\n​\n\n​\n\n510\n\nConsumer\n\n​\n\n​\n\n—\n\n​\n\n​\n\n4\n\n​\n\n​\n\n4\n\nAll other loans\n\n​\n\n​\n\n8\n\n​\n\n​\n\n(3)\n\n​\n\n​\n\n5\n\nTotal\n\n​\n\n$\n\n3,939\n\n​\n\n$\n\n483\n\n​\n\n$\n\n4,422\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\nBalance\n\n​\n\nProvision\n\n \n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nend\n\nJune 30, 2025\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\nof period\n\nAllowance for off-balance sheet credit exposure:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n140\n\n​\n\n$\n\n62\n\n​\n\n$\n\n202\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n153\n\n​\n\n​\n\n(19)\n\n​\n\n​\n\n134\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n136\n\n​\n\n​\n\n25\n\n​\n\n​\n\n161\n\nMulti-family real estate\n\n​\n\n​\n\n31\n\n​\n\n​\n\n(31)\n\n​\n\n​\n\n—\n\nConstruction and land development\n\n​\n\n​\n\n1,912\n\n​\n\n​\n\n367\n\n​\n\n​\n\n2,279\n\nAgriculture real estate\n\n​\n\n​\n\n60\n\n​\n\n​\n\n21\n\n​\n\n​\n\n81\n\nCommercial and industrial\n\n​\n\n​\n\n782\n\n​\n\n​\n\n292\n\n​\n\n​\n\n1,074\n\nAgriculture production\n\n​\n\n​\n\n37\n\n​\n\n​\n\n(37)\n\n​\n\n​\n\n—\n\nConsumer\n\n​\n\n​\n\n12\n\n​\n\n​\n\n(12)\n\n​\n\n​\n\n—\n\nAll other loans\n\n​\n\n​\n\n—\n\n​\n\n​\n\n8\n\n​\n\n​\n\n8\n\nTotal\n\n​\n\n$\n\n3,263\n\n​\n\n$\n\n676\n\n​\n\n$\n\n3,939\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\nBalance\n\n​\n\nProvision\n\n \n\nBalance\n\n*(dollars in thousands)*\n\n​\n\nbeginning\n\n​\n\n(benefit) charged\n\n​\n\nend\n\nJune 30, 2024\n\n  ​ ​ ​\n\nof period\n\n  ​ ​ ​\n\nto expense\n\n  ​ ​ ​\n\nof period\n\nAllowance for off-balance sheet credit exposure:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n126\n\n​\n\n$\n\n14\n\n​\n\n$\n\n140\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n154\n\n​\n\n​\n\n(1)\n\n​\n\n​\n\n153\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n182\n\n​\n\n​\n\n(46)\n\n​\n\n​\n\n136\n\nMulti-family real estate\n\n​\n\n​\n\n16\n\n​\n\n​\n\n15\n\n​\n\n​\n\n31\n\nConstruction and land development\n\n​\n\n​\n\n4,897\n\n​\n\n​\n\n(2,985)\n\n​\n\n​\n\n1,912\n\nAgriculture real estate\n\n​\n\n​\n\n50\n\n​\n\n​\n\n10\n\n​\n\n​\n\n60\n\nCommercial and industrial\n\n​\n\n​\n\n730\n\n​\n\n​\n\n52\n\n​\n\n​\n\n782\n\nAgriculture production\n\n​\n\n​\n\n107\n\n​\n\n​\n\n(70)\n\n​\n\n​\n\n37\n\nConsumer\n\n​\n\n​\n\n16\n\n​\n\n​\n\n(4)\n\n​\n\n​\n\n12\n\nAll other loans\n\n​\n\n​\n\n10\n\n​\n\n​\n\n(10)\n\n​\n\n​\n\n—\n\nTotal\n\n​\n\n$\n\n6,288\n\n​\n\n$\n\n(3,025)\n\n​\n\n$\n\n3,263\n\n​\n\n​\n\n101\n\n[Table of Contents](#TOC)\n\nThe following tables present gross charge-offs by loan class and year of origination for the years ended June 30, 2026, 2025 and 2024:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevolving\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n2026\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n  ​ ​ ​\n\n2023\n\n  ​ ​ ​\n\n2022\n\n  ​ ​ ​\n\nPrior\n\n  ​ ​ ​\n\nloans\n\n  ​ ​ ​\n\nTotal\n\n**June 30, 2026**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n182\n\n​\n\n$\n\n200\n\n​\n\n$\n\n7\n\n​\n\n$\n\n424\n\n​\n\n$\n\n—\n\n​\n\n$\n\n813\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,800\n\n​\n\n \n\n186\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,986\n\nOwner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n81\n\n​\n\n \n\n—\n\n​\n\n \n\n81\n\nConstruction and land development\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n31\n\n​\n\n \n\n—\n\n​\n\n \n\n161\n\n​\n\n \n\n—\n\n​\n\n \n\n192\n\nCommercial and industrial\n\n​\n\n \n\n60\n\n​\n\n \n\n316\n\n​\n\n \n\n300\n\n​\n\n \n\n1,280\n\n​\n\n \n\n438\n\n​\n\n \n\n73\n\n​\n\n \n\n—\n\n​\n\n \n\n2,467\n\nAgriculture production\n\n​\n\n \n\n—\n\n​\n\n \n\n2,579\n\n​\n\n \n\n29\n\n​\n\n \n\n68\n\n​\n\n \n\n20\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,696\n\nConsumer\n\n​\n\n \n\n710\n\n​\n\n \n\n175\n\n​\n\n \n\n148\n\n​\n\n \n\n43\n\n​\n\n \n\n20\n\n​\n\n \n\n7\n\n​\n\n \n\n—\n\n​\n\n \n\n1,103\n\nTotal gross charge-offs\n\n​\n\n$\n\n770\n\n​\n\n$\n\n3,070\n\n​\n\n$\n\n659\n\n​\n\n$\n\n4,422\n\n​\n\n$\n\n671\n\n​\n\n$\n\n746\n\n​\n\n$\n\n—\n\n​\n\n$\n\n10,338\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevolving\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n  ​ ​ ​\n\n2023\n\n  ​ ​ ​\n\n2022\n\n  ​ ​ ​\n\n2021\n\n  ​ ​ ​\n\nPrior\n\n  ​ ​ ​\n\nloans\n\n  ​ ​ ​\n\nTotal\n\nJune 30, 2025\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n89\n\n​\n\n$\n\n—\n\n​\n\n$\n\n89\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n3,800\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n3,800\n\nOwner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n122\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n122\n\nConstruction and land development\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1\n\nCommercial and industrial\n\n​\n\n \n\n25\n\n​\n\n \n\n505\n\n​\n\n \n\n212\n\n​\n\n \n\n507\n\n​\n\n \n\n217\n\n​\n\n \n\n42\n\n​\n\n \n\n—\n\n​\n\n \n\n1,508\n\nAgriculture production\n\n​\n\n \n\n—\n\n​\n\n \n\n1,052\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,052\n\nConsumer\n\n​\n\n \n\n131\n\n​\n\n \n\n131\n\n​\n\n \n\n84\n\n​\n\n \n\n41\n\n​\n\n \n\n7\n\n​\n\n \n\n17\n\n​\n\n \n\n—\n\n​\n\n \n\n411\n\nTotal gross charge-offs\n\n​\n\n$\n\n156\n\n​\n\n$\n\n1,688\n\n​\n\n$\n\n418\n\n​\n\n$\n\n4,348\n\n​\n\n$\n\n225\n\n​\n\n$\n\n148\n\n​\n\n$\n\n—\n\n​\n\n$\n\n6,983\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevolving\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n2026\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n  ​ ​ ​\n\n2023\n\n  ​ ​ ​\n\n2022\n\n  ​ ​ ​\n\nPrior\n\n  ​ ​ ​\n\nloans\n\n  ​ ​ ​\n\nTotal\n\nJune 30, 2024\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n6\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n40\n\n​\n\n$\n\n—\n\n​\n\n$\n\n46\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n496\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n496\n\nMulti-family real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n382\n\n​\n\n \n\n97\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n479\n\nConstruction and land development\n\n​\n\n \n\n—\n\n​\n\n \n\n100\n\n​\n\n \n\n78\n\n​\n\n \n\n111\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n289\n\nCommercial and industrial\n\n​\n\n \n\n—\n\n​\n\n \n\n190\n\n​\n\n \n\n195\n\n​\n\n \n\n10\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n395\n\nConsumer\n\n​\n\n \n\n38\n\n​\n\n \n\n162\n\n​\n\n \n\n100\n\n​\n\n \n\n41\n\n​\n\n \n\n—\n\n​\n\n \n\n9\n\n​\n\n \n\n—\n\n​\n\n \n\n350\n\nTotal gross charge-offs\n\n​\n\n$\n\n38\n\n​\n\n$\n\n948\n\n​\n\n$\n\n761\n\n​\n\n$\n\n259\n\n​\n\n$\n\n—\n\n​\n\n$\n\n49\n\n​\n\n$\n\n—\n\n​\n\n$\n\n2,055\n\n​\n\n​\n\n102\n\n[Table of Contents](#TOC)\n\n*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:\n\n*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.\n\n*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.\n\n*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.\n\n*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.\n\nLoans evaluated under the Company's credit risk rating process that do not meet the criteria above are considered Pass rated loans.\n\nA periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. In addition, a sample of smaller pass rated loans is completed. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit continues to share similar risk characteristics with collectively evaluated loan pools, or whether credit losses for the loan should be evaluated on an individual loan basis.\n\nThe following table presents the credit risk profile of the Company’s loan portfolio based on rating category and year of origination as of June 30, 2026. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:\n\n​\n\n103\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevolving\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n2026\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n  ​ ​ ​\n\n2023\n\n  ​ ​ ​\n\n2022\n\n  ​ ​ ​\n\nPrior\n\n  ​ ​ ​\n\nloans\n\n  ​ ​ ​\n\nTotal\n\n1-4 Family residential real estate\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPass\n\n​\n\n$\n\n267,372\n\n​\n\n$\n\n144,308\n\n​\n\n$\n\n79,615\n\n​\n\n$\n\n102,798\n\n​\n\n$\n\n145,247\n\n​\n\n$\n\n206,727\n\n​\n\n$\n\n133,453\n\n​\n\n$\n\n1,079,520\n\nWatch\n\n​\n\n \n\n730\n\n​\n\n \n\n620\n\n​\n\n \n\n285\n\n​\n\n \n\n45\n\n​\n\n \n\n316\n\n​\n\n \n\n150\n\n​\n\n \n\n11\n\n​\n\n \n\n2,157\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n393\n\n​\n\n \n\n332\n\n​\n\n \n\n893\n\n​\n\n \n\n414\n\n​\n\n \n\n1,062\n\n​\n\n \n\n727\n\n​\n\n \n\n14\n\n​\n\n \n\n3,835\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal 1-4 Family residential real estate\n\n​\n\n$\n\n268,495\n\n​\n\n$\n\n145,260\n\n​\n\n$\n\n80,793\n\n​\n\n$\n\n103,257\n\n​\n\n$\n\n146,625\n\n​\n\n$\n\n207,604\n\n​\n\n$\n\n133,478\n\n​\n\n$\n\n1,085,512\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n253,267\n\n​\n\n$\n\n114,283\n\n​\n\n$\n\n58,459\n\n​\n\n$\n\n137,095\n\n​\n\n$\n\n223,813\n\n​\n\n$\n\n98,749\n\n​\n\n$\n\n10,864\n\n​\n\n$\n\n896,530\n\nWatch\n\n​\n\n \n\n1,512\n\n​\n\n \n\n165\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n188\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,865\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,393\n\n​\n\n \n\n2,086\n\n​\n\n \n\n22,270\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n25,749\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Non-owner occupied commercial real estate\n\n​\n\n$\n\n254,779\n\n​\n\n$\n\n114,448\n\n​\n\n$\n\n59,852\n\n​\n\n$\n\n139,181\n\n​\n\n$\n\n246,271\n\n​\n\n$\n\n98,749\n\n​\n\n$\n\n10,864\n\n​\n\n$\n\n924,144\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOwner occupied commercial real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n134,106\n\n​\n\n$\n\n56,579\n\n​\n\n$\n\n49,383\n\n​\n\n$\n\n51,235\n\n​\n\n$\n\n63,481\n\n​\n\n$\n\n80,131\n\n​\n\n$\n\n24,821\n\n​\n\n$\n\n459,736\n\nWatch\n\n​\n\n \n\n1,564\n\n​\n\n \n\n724\n\n​\n\n \n\n3,844\n\n​\n\n \n\n498\n\n​\n\n \n\n1,997\n\n​\n\n \n\n148\n\n​\n\n \n\n351\n\n​\n\n \n\n9,126\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n559\n\n​\n\n \n\n—\n\n​\n\n \n\n983\n\n​\n\n \n\n870\n\n​\n\n \n\n283\n\n​\n\n \n\n433\n\n​\n\n \n\n—\n\n​\n\n \n\n3,128\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Owner occupied commercial real estate\n\n​\n\n$\n\n136,229\n\n​\n\n$\n\n57,303\n\n​\n\n$\n\n54,210\n\n​\n\n$\n\n52,603\n\n​\n\n$\n\n65,761\n\n​\n\n$\n\n80,712\n\n​\n\n$\n\n25,172\n\n​\n\n$\n\n471,990\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMulti-family real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n61,626\n\n​\n\n$\n\n78,690\n\n​\n\n$\n\n15,190\n\n​\n\n$\n\n184,640\n\n​\n\n$\n\n61,734\n\n​\n\n$\n\n58,412\n\n​\n\n$\n\n8,142\n\n​\n\n$\n\n468,434\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n1,534\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,534\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Multi-family real estate\n\n​\n\n$\n\n61,626\n\n​\n\n$\n\n80,224\n\n​\n\n$\n\n15,190\n\n​\n\n$\n\n184,640\n\n​\n\n$\n\n61,734\n\n​\n\n$\n\n58,412\n\n​\n\n$\n\n8,142\n\n​\n\n$\n\n469,968\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConstruction and land development\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n159,733\n\n​\n\n$\n\n86,681\n\n​\n\n$\n\n26,671\n\n​\n\n$\n\n23,875\n\n​\n\n$\n\n4,274\n\n​\n\n$\n\n193\n\n​\n\n$\n\n2,238\n\n​\n\n$\n\n303,665\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n53\n\n​\n\n \n\n—\n\n​\n\n \n\n53\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n355\n\n​\n\n \n\n5,743\n\n​\n\n \n\n190\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n6,288\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Construction and land development\n\n​\n\n$\n\n159,733\n\n​\n\n$\n\n87,036\n\n​\n\n$\n\n32,414\n\n​\n\n$\n\n24,065\n\n​\n\n$\n\n4,274\n\n​\n\n$\n\n246\n\n​\n\n$\n\n2,238\n\n​\n\n$\n\n310,006\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAgriculture real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n86,362\n\n​\n\n$\n\n29,729\n\n​\n\n$\n\n18,924\n\n​\n\n$\n\n23,922\n\n​\n\n$\n\n33,715\n\n​\n\n$\n\n34,350\n\n​\n\n$\n\n24,771\n\n​\n\n$\n\n251,773\n\nWatch\n\n​\n\n \n\n22,209\n\n​\n\n \n\n9,767\n\n​\n\n \n\n211\n\n​\n\n \n\n494\n\n​\n\n \n\n5,285\n\n​\n\n \n\n3,450\n\n​\n\n \n\n903\n\n​\n\n \n\n42,319\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n3\n\n​\n\n \n\n940\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n768\n\n​\n\n \n\n—\n\n​\n\n \n\n1,711\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Agriculture real estate\n\n​\n\n$\n\n108,571\n\n​\n\n$\n\n39,499\n\n​\n\n$\n\n20,075\n\n​\n\n$\n\n24,416\n\n​\n\n$\n\n39,000\n\n​\n\n$\n\n38,568\n\n​\n\n$\n\n25,674\n\n​\n\n$\n\n295,803\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommercial and industrial\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n193,173\n\n​\n\n$\n\n84,533\n\n​\n\n$\n\n18,829\n\n​\n\n$\n\n7,633\n\n​\n\n$\n\n23,615\n\n​\n\n$\n\n13,235\n\n​\n\n$\n\n185,896\n\n​\n\n$\n\n526,914\n\nWatch\n\n​\n\n \n\n5,388\n\n​\n\n \n\n810\n\n​\n\n \n\n4,028\n\n​\n\n \n\n2,066\n\n​\n\n \n\n—\n\n​\n\n \n\n214\n\n​\n\n \n\n8,414\n\n​\n\n \n\n20,920\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n1,196\n\n​\n\n \n\n3,225\n\n​\n\n \n\n136\n\n​\n\n \n\n20\n\n​\n\n \n\n17\n\n​\n\n \n\n129\n\n​\n\n \n\n—\n\n​\n\n \n\n4,723\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Commercial and industrial\n\n​\n\n$\n\n199,757\n\n​\n\n$\n\n88,568\n\n​\n\n$\n\n22,993\n\n​\n\n$\n\n9,719\n\n​\n\n$\n\n23,632\n\n​\n\n$\n\n13,578\n\n​\n\n$\n\n194,310\n\n​\n\n$\n\n552,557\n\n104\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAgriculture production\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n46,222\n\n​\n\n$\n\n13,214\n\n​\n\n$\n\n5,622\n\n​\n\n$\n\n2,533\n\n​\n\n$\n\n723\n\n​\n\n$\n\n511\n\n​\n\n$\n\n114,435\n\n​\n\n$\n\n183,260\n\nWatch\n\n​\n\n \n\n9,340\n\n​\n\n \n\n3,170\n\n​\n\n \n\n1,303\n\n​\n\n \n\n151\n\n​\n\n \n\n69\n\n​\n\n \n\n621\n\n​\n\n \n\n13,076\n\n​\n\n \n\n27,730\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n5,611\n\n​\n\n \n\n2,346\n\n​\n\n \n\n141\n\n​\n\n \n\n17\n\n​\n\n \n\n50\n\n​\n\n \n\n—\n\n​\n\n \n\n8,165\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Agriculture production\n\n​\n\n$\n\n55,562\n\n​\n\n$\n\n21,995\n\n​\n\n$\n\n9,271\n\n​\n\n$\n\n2,825\n\n​\n\n$\n\n809\n\n​\n\n$\n\n1,182\n\n​\n\n$\n\n127,511\n\n​\n\n$\n\n219,155\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsumer\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n29,342\n\n​\n\n$\n\n11,259\n\n​\n\n$\n\n5,148\n\n​\n\n$\n\n3,584\n\n​\n\n$\n\n1,373\n\n​\n\n$\n\n871\n\n​\n\n$\n\n1,502\n\n​\n\n$\n\n53,079\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n15\n\n​\n\n \n\n27\n\n​\n\n \n\n18\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n5\n\n​\n\n \n\n65\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Consumer\n\n​\n\n$\n\n29,342\n\n​\n\n$\n\n11,274\n\n​\n\n$\n\n5,175\n\n​\n\n$\n\n3,602\n\n​\n\n$\n\n1,373\n\n​\n\n$\n\n871\n\n​\n\n$\n\n1,507\n\n​\n\n$\n\n53,144\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAll other loans\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n1,625\n\n​\n\n$\n\n6,027\n\n​\n\n$\n\n691\n\n​\n\n$\n\n102\n\n​\n\n$\n\n41\n\n​\n\n$\n\n1,043\n\n​\n\n$\n\n—\n\n​\n\n$\n\n9,529\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal All other loans\n\n​\n\n$\n\n1,625\n\n​\n\n$\n\n6,027\n\n​\n\n$\n\n691\n\n​\n\n$\n\n102\n\n​\n\n$\n\n41\n\n​\n\n$\n\n1,043\n\n​\n\n$\n\n—\n\n​\n\n$\n\n9,529\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal Loans\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n1,232,828\n\n​\n\n$\n\n625,303\n\n​\n\n$\n\n278,532\n\n​\n\n$\n\n537,417\n\n​\n\n$\n\n558,016\n\n​\n\n$\n\n494,222\n\n​\n\n$\n\n506,122\n\n​\n\n$\n\n4,232,440\n\nWatch\n\n​\n\n \n\n40,743\n\n​\n\n \n\n16,790\n\n​\n\n \n\n9,671\n\n​\n\n \n\n3,254\n\n​\n\n \n\n7,855\n\n​\n\n \n\n4,636\n\n​\n\n \n\n22,755\n\n​\n\n \n\n105,704\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n2,148\n\n​\n\n \n\n9,541\n\n​\n\n \n\n12,461\n\n​\n\n \n\n3,739\n\n​\n\n \n\n23,649\n\n​\n\n \n\n2,107\n\n​\n\n \n\n19\n\n​\n\n \n\n53,664\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal\n\n​\n\n$\n\n1,275,719\n\n​\n\n$\n\n651,634\n\n​\n\n$\n\n300,664\n\n​\n\n$\n\n544,410\n\n​\n\n$\n\n589,520\n\n​\n\n$\n\n500,965\n\n​\n\n$\n\n528,896\n\n​\n\n$\n\n4,391,808\n\n​\n\nAt June 30, 2026, PCD loans were comprised of $24.7 million of credits rated “Pass”; $69,000 of credits rated “Watch”; no credits rated “Special Mention”; $6.5 million of credits rated “Substandard”; and no credits rated “Doubtful”.\n\nThe following table presents the credit risk profile of the Company’s loan portfolio based on rating category and year of origination as of June 30, 2025. This table includes PCD loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification:\n\n​\n\n105\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRevolving\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n  ​ ​ ​\n\n2023\n\n  ​ ​ ​\n\n2022\n\n  ​ ​ ​\n\n2021\n\n  ​ ​ ​\n\nPrior\n\n  ​ ​ ​\n\nloans\n\n  ​ ​ ​\n\nTotal\n\n1-4 Family residential real estate\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPass\n\n​\n\n$\n\n204,048\n\n​\n\n$\n\n110,823\n\n​\n\n$\n\n133,616\n\n​\n\n$\n\n167,711\n\n​\n\n$\n\n126,851\n\n​\n\n$\n\n132,126\n\n​\n\n$\n\n112,346\n\n​\n\n$\n\n987,521\n\nWatch\n\n​\n\n \n\n620\n\n​\n\n \n\n261\n\n​\n\n \n\n376\n\n​\n\n \n\n360\n\n​\n\n \n\n277\n\n​\n\n \n\n250\n\n​\n\n \n\n—\n\n​\n\n \n\n2,144\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n734\n\n​\n\n \n\n190\n\n​\n\n \n\n346\n\n​\n\n \n\n33\n\n​\n\n \n\n1,359\n\n​\n\n \n\n118\n\n​\n\n \n\n2,780\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal 1-4 Family residential real estate\n\n​\n\n$\n\n204,668\n\n​\n\n$\n\n111,818\n\n​\n\n$\n\n134,182\n\n​\n\n$\n\n168,417\n\n​\n\n$\n\n127,161\n\n​\n\n$\n\n133,735\n\n​\n\n$\n\n112,464\n\n​\n\n$\n\n992,445\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n115,266\n\n​\n\n$\n\n82,983\n\n​\n\n$\n\n213,647\n\n​\n\n$\n\n273,348\n\n​\n\n$\n\n76,522\n\n​\n\n$\n\n70,869\n\n​\n\n$\n\n7,570\n\n​\n\n$\n\n840,205\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n1,770\n\n​\n\n \n\n15,146\n\n​\n\n \n\n213\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n17,129\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n64\n\n​\n\n \n\n4,490\n\n​\n\n \n\n26,429\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n30,983\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Non-owner occupied commercial real estate\n\n​\n\n$\n\n115,266\n\n​\n\n$\n\n84,817\n\n​\n\n$\n\n233,283\n\n​\n\n$\n\n299,990\n\n​\n\n$\n\n76,522\n\n​\n\n$\n\n70,869\n\n​\n\n$\n\n7,570\n\n​\n\n$\n\n888,317\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOwner occupied commercial real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n72,469\n\n​\n\n$\n\n57,047\n\n​\n\n$\n\n87,899\n\n​\n\n$\n\n79,946\n\n​\n\n$\n\n73,291\n\n​\n\n$\n\n43,764\n\n​\n\n$\n\n21,206\n\n​\n\n$\n\n435,622\n\nWatch\n\n​\n\n \n\n1,440\n\n​\n\n \n\n2,234\n\n​\n\n \n\n287\n\n​\n\n \n\n83\n\n​\n\n \n\n—\n\n​\n\n \n\n73\n\n​\n\n \n\n—\n\n​\n\n \n\n4,117\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n868\n\n​\n\n \n\n969\n\n​\n\n \n\n901\n\n​\n\n \n\n71\n\n​\n\n \n\n436\n\n​\n\n \n\n—\n\n​\n\n \n\n3,245\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Owner occupied commercial real estate\n\n​\n\n$\n\n73,909\n\n​\n\n$\n\n60,149\n\n​\n\n$\n\n89,155\n\n​\n\n$\n\n80,930\n\n​\n\n$\n\n73,362\n\n​\n\n$\n\n44,273\n\n​\n\n$\n\n21,206\n\n​\n\n$\n\n442,984\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMulti-family real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n79,658\n\n​\n\n$\n\n19,078\n\n​\n\n$\n\n179,905\n\n​\n\n$\n\n69,862\n\n​\n\n$\n\n56,328\n\n​\n\n$\n\n13,577\n\n​\n\n$\n\n1,402\n\n​\n\n$\n\n419,810\n\nWatch\n\n​\n\n \n\n1,571\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n1,377\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,948\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Multi-family real estate\n\n​\n\n$\n\n81,229\n\n​\n\n$\n\n19,078\n\n​\n\n$\n\n179,905\n\n​\n\n$\n\n71,239\n\n​\n\n$\n\n56,328\n\n​\n\n$\n\n13,577\n\n​\n\n$\n\n1,402\n\n​\n\n$\n\n422,758\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConstruction and land development\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n161,995\n\n​\n\n$\n\n32,148\n\n​\n\n$\n\n117,395\n\n​\n\n$\n\n9,144\n\n​\n\n$\n\n1,829\n\n​\n\n$\n\n1,396\n\n​\n\n$\n\n2,020\n\n​\n\n$\n\n325,927\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n63\n\n​\n\n \n\n—\n\n​\n\n \n\n63\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n5,743\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n672\n\n​\n\n \n\n—\n\n​\n\n \n\n6,415\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Construction and land development\n\n​\n\n$\n\n161,995\n\n​\n\n$\n\n37,891\n\n​\n\n$\n\n117,395\n\n​\n\n$\n\n9,144\n\n​\n\n$\n\n1,829\n\n​\n\n$\n\n2,131\n\n​\n\n$\n\n2,020\n\n​\n\n$\n\n332,405\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAgriculture real estate\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n56,350\n\n​\n\n$\n\n24,526\n\n​\n\n$\n\n36,351\n\n​\n\n$\n\n40,456\n\n​\n\n$\n\n37,094\n\n​\n\n$\n\n11,570\n\n​\n\n$\n\n18,747\n\n​\n\n$\n\n225,094\n\nWatch\n\n​\n\n \n\n3,883\n\n​\n\n \n\n1,092\n\n​\n\n \n\n2,145\n\n​\n\n \n\n5,603\n\n​\n\n \n\n4,043\n\n​\n\n \n\n—\n\n​\n\n \n\n475\n\n​\n\n \n\n17,241\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n35\n\n​\n\n \n\n2,206\n\n​\n\n \n\n257\n\n​\n\n \n\n150\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,648\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Agriculture real estate\n\n​\n\n$\n\n60,268\n\n​\n\n$\n\n27,824\n\n​\n\n$\n\n38,753\n\n​\n\n$\n\n46,209\n\n​\n\n$\n\n41,137\n\n​\n\n$\n\n11,570\n\n​\n\n$\n\n19,222\n\n​\n\n$\n\n244,983\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommercial and industrial\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n169,734\n\n​\n\n$\n\n38,321\n\n​\n\n$\n\n36,459\n\n​\n\n$\n\n31,607\n\n​\n\n$\n\n16,918\n\n​\n\n$\n\n6,016\n\n​\n\n$\n\n192,310\n\n​\n\n$\n\n491,365\n\nWatch\n\n​\n\n \n\n3,966\n\n​\n\n \n\n4,565\n\n​\n\n \n\n2,453\n\n​\n\n \n\n—\n\n​\n\n \n\n250\n\n​\n\n \n\n13\n\n​\n\n \n\n4,437\n\n​\n\n \n\n15,684\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n753\n\n​\n\n \n\n111\n\n​\n\n \n\n165\n\n​\n\n \n\n935\n\n​\n\n \n\n53\n\n​\n\n \n\n239\n\n​\n\n \n\n954\n\n​\n\n \n\n3,210\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n106\n\n[Table of Contents](#TOC)\n\nTotal Commercial and industrial\n\n​\n\n$\n\n174,453\n\n​\n\n$\n\n42,997\n\n​\n\n$\n\n39,077\n\n​\n\n$\n\n32,542\n\n​\n\n$\n\n17,221\n\n​\n\n$\n\n6,268\n\n​\n\n$\n\n197,701\n\n​\n\n$\n\n510,259\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAgriculture production\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n43,446\n\n​\n\n$\n\n13,230\n\n​\n\n$\n\n5,631\n\n​\n\n$\n\n1,910\n\n​\n\n$\n\n4,363\n\n​\n\n$\n\n302\n\n​\n\n$\n\n119,345\n\n​\n\n$\n\n188,227\n\nWatch\n\n​\n\n \n\n3,319\n\n​\n\n \n\n888\n\n​\n\n \n\n—\n\n​\n\n \n\n83\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n13,357\n\n​\n\n \n\n17,647\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n26\n\n​\n\n \n\n127\n\n​\n\n \n\n81\n\n​\n\n \n\n8\n\n​\n\n \n\n—\n\n​\n\n \n\n12\n\n​\n\n \n\n—\n\n​\n\n \n\n254\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Agriculture production\n\n​\n\n$\n\n46,791\n\n​\n\n$\n\n14,245\n\n​\n\n$\n\n5,712\n\n​\n\n$\n\n2,001\n\n​\n\n$\n\n4,363\n\n​\n\n$\n\n314\n\n​\n\n$\n\n132,702\n\n​\n\n$\n\n206,128\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsumer\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n29,912\n\n​\n\n$\n\n11,264\n\n​\n\n$\n\n8,330\n\n​\n\n$\n\n3,189\n\n​\n\n$\n\n938\n\n​\n\n$\n\n172\n\n​\n\n$\n\n1,483\n\n​\n\n$\n\n55,288\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n50\n\n​\n\n \n\n20\n\n​\n\n \n\n12\n\n​\n\n \n\n17\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n99\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal Consumer\n\n​\n\n$\n\n29,962\n\n​\n\n$\n\n11,284\n\n​\n\n$\n\n8,342\n\n​\n\n$\n\n3,206\n\n​\n\n$\n\n938\n\n​\n\n$\n\n172\n\n​\n\n$\n\n1,483\n\n​\n\n$\n\n55,387\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAll other loans\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n2,334\n\n​\n\n$\n\n869\n\n​\n\n$\n\n245\n\n​\n\n$\n\n82\n\n​\n\n$\n\n132\n\n​\n\n$\n\n1,440\n\n​\n\n$\n\n—\n\n​\n\n$\n\n5,102\n\nWatch\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal All other loans\n\n​\n\n$\n\n2,334\n\n​\n\n$\n\n869\n\n​\n\n$\n\n245\n\n​\n\n$\n\n82\n\n​\n\n$\n\n132\n\n​\n\n$\n\n1,440\n\n​\n\n$\n\n—\n\n​\n\n$\n\n5,102\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal Loans\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPass\n\n​\n\n$\n\n935,212\n\n​\n\n$\n\n390,289\n\n​\n\n$\n\n819,478\n\n​\n\n$\n\n677,255\n\n​\n\n$\n\n394,266\n\n​\n\n$\n\n281,232\n\n​\n\n$\n\n476,429\n\n​\n\n$\n\n3,974,161\n\nWatch\n\n​\n\n \n\n14,799\n\n​\n\n \n\n10,810\n\n​\n\n \n\n20,407\n\n​\n\n \n\n7,719\n\n​\n\n \n\n4,570\n\n​\n\n \n\n399\n\n​\n\n \n\n18,269\n\n​\n\n \n\n76,973\n\nSpecial Mention\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nSubstandard\n\n​\n\n \n\n864\n\n​\n\n \n\n9,873\n\n​\n\n \n\n6,164\n\n​\n\n \n\n28,786\n\n​\n\n \n\n157\n\n​\n\n \n\n2,718\n\n​\n\n \n\n1,072\n\n​\n\n \n\n49,634\n\nDoubtful\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nTotal\n\n​\n\n$\n\n950,875\n\n​\n\n$\n\n410,972\n\n​\n\n$\n\n846,049\n\n​\n\n$\n\n713,760\n\n​\n\n$\n\n398,993\n\n​\n\n$\n\n284,349\n\n​\n\n$\n\n495,770\n\n​\n\n$\n\n4,100,768\n\n​\n\nAt June 30, 2025, PCD loans comprised $35.1 million of credits rated “Pass”; $2.7 million of credits rated “Watch”; none rated “Special Mention”; $8.0 million of credits rated “Substandard”; and none rated “Doubtful”.\n\n107\n\n[Table of Contents](#TOC)\n\n*Past Due Loans.*The following tables present the Company’s loan portfolio aging analysis as of June 30, 2026 and 2025. These tables include PCD loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGreater Than\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGreater Than 90\n\n*(dollars in thousands)*\n\n​\n\n30-59 Days\n\n​\n\n60-89 Days\n\n​\n\n90 Days\n\n​\n\nTotal\n\n​\n\n​\n\n​\n\n​\n\nTotal Loans\n\n​\n\nDays Past Due\n\n**June 30, 2026**\n\n**  ​ ​ ​**\n\nPast Due\n\n**  ​ ​ ​**\n\nPast Due\n\n**  ​ ​ ​**\n\nPast Due\n\n**  ​ ​ ​**\n\nPast Due\n\n**  ​ ​ ​**\n\nCurrent\n\n**  ​ ​ ​**\n\nReceivable\n\n**  ​ ​ ​**\n\nand Accruing\n\n1-4 Family residential real estate\n\n​\n\n$\n\n1,077\n\n​\n\n$\n\n2,232\n\n​\n\n$\n\n2,475\n\n​\n\n$\n\n5,784\n\n​\n\n$\n\n1,079,728\n\n​\n\n$\n\n1,085,512\n\n​\n\n$\n\n—\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n924,144\n\n​\n\n \n\n924,144\n\n​\n\n \n\n—\n\nOwner occupied commercial real estate\n\n​\n\n \n\n590\n\n​\n\n \n\n292\n\n​\n\n \n\n889\n\n​\n\n \n\n1,771\n\n​\n\n \n\n470,219\n\n​\n\n \n\n471,990\n\n​\n\n \n\n—\n\nMulti-family real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n469,968\n\n​\n\n \n\n469,968\n\n​\n\n \n\n—\n\nConstruction and land development\n\n​\n\n \n\n196\n\n​\n\n \n\n101\n\n​\n\n \n\n5,933\n\n​\n\n \n\n6,230\n\n​\n\n \n\n303,776\n\n​\n\n \n\n310,006\n\n​\n\n \n\n—\n\nAgriculture real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n408\n\n​\n\n \n\n1,708\n\n​\n\n \n\n2,116\n\n​\n\n \n\n293,687\n\n​\n\n \n\n295,803\n\n​\n\n \n\n—\n\nCommercial and industrial\n\n​\n\n \n\n1,231\n\n​\n\n \n\n635\n\n​\n\n \n\n1,066\n\n​\n\n \n\n2,932\n\n​\n\n \n\n549,625\n\n​\n\n \n\n552,557\n\n​\n\n \n\n—\n\nAgriculture production\n\n​\n\n \n\n864\n\n​\n\n \n\n5,302\n\n​\n\n \n\n2,192\n\n​\n\n \n\n8,358\n\n​\n\n \n\n210,797\n\n​\n\n \n\n219,155\n\n​\n\n \n\n—\n\nConsumer\n\n​\n\n \n\n326\n\n​\n\n \n\n96\n\n​\n\n \n\n32\n\n​\n\n \n\n454\n\n​\n\n \n\n52,690\n\n​\n\n \n\n53,144\n\n​\n\n \n\n—\n\nAll other loans\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n9,529\n\n​\n\n \n\n9,529\n\n​\n\n \n\n—\n\nTotal loans\n\n​\n\n$\n\n4,284\n\n​\n\n$\n\n9,066\n\n​\n\n$\n\n14,295\n\n​\n\n$\n\n27,645\n\n​\n\n$\n\n4,364,163\n\n​\n\n$\n\n4,391,808\n\n​\n\n$\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGreater Than\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nGreater Than 90\n\n*(dollars in thousands)*\n\n​\n\n30-59 Days\n\n​\n\n60-89 Days\n\n​\n\n90 Days\n\n​\n\nTotal\n\n​\n\n​\n\n​\n\n​\n\nTotal Loans\n\n​\n\nDays Past Due\n\nJune 30, 2025\n\n  ​ ​ ​\n\nPast Due\n\n  ​ ​ ​\n\nPast Due\n\n  ​ ​ ​\n\nPast Due\n\n  ​ ​ ​\n\nPast Due\n\n  ​ ​ ​\n\nCurrent\n\n  ​ ​ ​\n\nReceivable\n\n  ​ ​ ​\n\nand Accruing\n\n1-4 Family residential real estate\n\n​\n\n$\n\n1,317\n\n​\n\n$\n\n1,973\n\n​\n\n$\n\n2,442\n\n​\n\n$\n\n5,732\n\n​\n\n$\n\n986,713\n\n​\n\n$\n\n992,445\n\n​\n\n$\n\n—\n\nNon-owner occupied commercial real estate\n\n​\n\n \n\n62\n\n​\n\n \n\n—\n\n​\n\n \n\n5,784\n\n​\n\n \n\n5,846\n\n​\n\n \n\n882,471\n\n​\n\n \n\n888,317\n\n​\n\n \n\n—\n\nOwner occupied commercial real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n116\n\n​\n\n \n\n989\n\n​\n\n \n\n1,105\n\n​\n\n \n\n441,879\n\n​\n\n \n\n442,984\n\n​\n\n \n\n—\n\nMulti-family real estate\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n422,758\n\n​\n\n \n\n422,758\n\n​\n\n \n\n—\n\nConstruction and land development\n\n​\n\n \n\n315\n\n​\n\n \n\n12\n\n​\n\n \n\n5,743\n\n​\n\n \n\n6,070\n\n​\n\n \n\n326,335\n\n​\n\n \n\n332,405\n\n​\n\n \n\n—\n\nAgriculture real estate\n\n​\n\n \n\n178\n\n​\n\n \n\n11\n\n​\n\n \n\n2,613\n\n​\n\n \n\n2,802\n\n​\n\n \n\n242,181\n\n​\n\n \n\n244,983\n\n​\n\n \n\n—\n\nCommercial and industrial\n\n​\n\n \n\n1,055\n\n​\n\n \n\n219\n\n​\n\n \n\n1,837\n\n​\n\n \n\n3,111\n\n​\n\n \n\n507,148\n\n​\n\n \n\n510,259\n\n​\n\n \n\n—\n\nAgriculture production\n\n​\n\n \n\n163\n\n​\n\n \n\n164\n\n​\n\n \n\n78\n\n​\n\n \n\n405\n\n​\n\n \n\n205,723\n\n​\n\n \n\n206,128\n\n​\n\n \n\n—\n\nConsumer\n\n​\n\n \n\n380\n\n​\n\n \n\n98\n\n​\n\n \n\n74\n\n​\n\n \n\n552\n\n​\n\n \n\n54,835\n\n​\n\n \n\n55,387\n\n​\n\n \n\n—\n\nAll other loans\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n5,102\n\n​\n\n \n\n5,102\n\n​\n\n \n\n—\n\nTotal loans\n\n​\n\n$\n\n3,470\n\n​\n\n$\n\n2,593\n\n​\n\n$\n\n19,560\n\n​\n\n$\n\n25,623\n\n​\n\n$\n\n4,075,145\n\n​\n\n$\n\n4,100,768\n\n​\n\n$\n\n—\n\n​\n\nAt June 30, 2026 there were two PCD loans totaling $6.2 million that were greater than 90 days past due, and there were three at June 30, 2025 totaling $6.2 million.\n\nLoans that experience insignificant payment delays and payment shortfalls generally are not adversely classified or determined to not share similar risk characteristics with collectively evaluated pools of loans for determination of the ACL estimate. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Significant payment delays or shortfalls may lead to a determination that a loan should be individually evaluated for estimated credit losses.\n\n108\n\n[Table of Contents](#TOC)\n\n*Collateral-dependent Loans.*The following table presents the Company’s collateral-dependent loans and related ACL at June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAllowance on\n\n*(dollars in thousands)*\n\n​\n\nPrimary Type of Collateral\n\n​\n\nCollateral\n\n**June 30, 2026**\n\n​\n\nReal Estate\n\n​\n\nLand\n\n​\n\nOther\n\n​\n\nTotal\n\n​\n\nDependent Loans\n\n1-4 Family residential real estate\n\n \n\n$\n\n2,224\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n2,224\n\n​\n\n$\n\n—\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n25,749\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n25,749\n\n​\n\n​\n\n4,319\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n3,827\n\n​\n\n​\n\n—\n\n​\n\n​\n\n468\n\n​\n\n​\n\n4,295\n\n​\n\n​\n\n512\n\nConstruction and land development\n\n​\n\n​\n\n5,743\n\n​\n\n​\n\n545\n\n​\n\n​\n\n—\n\n​\n\n​\n\n6,288\n\n​\n\n​\n\n143\n\nAgriculture real estate\n\n​\n\n​\n\n2,949\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2,949\n\n​\n\n​\n\n125\n\nCommercial and industrial\n\n​\n\n​\n\n1,114\n\n​\n\n​\n\n—\n\n​\n\n​\n\n3,246\n\n​\n\n​\n\n4,360\n\n​\n\n​\n\n993\n\nAgriculture production\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n8,080\n\n​\n\n​\n\n8,080\n\n​\n\n​\n\n1,198\n\nTotal loans\n\n​\n\n$\n\n41,606\n\n​\n\n$\n\n545\n\n​\n\n$\n\n11,794\n\n​\n\n$\n\n53,945\n\n​\n\n$\n\n7,290\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAllowance on\n\n*(dollars in thousands)*\n\n​\n\nPrimary Type of Collateral\n\n​\n\nCollateral\n\nJune 30, 2025\n\n​\n\nReal Estate\n\n​\n\nLand\n\n​\n\nOther\n\n​\n\nTotal\n\n​\n\nDependent Loans\n\n1-4 Family residential real estate\n\n \n\n$\n\n752\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n752\n\n​\n\n$\n\n117\n\nNon-owner occupied commercial real estate\n\n​\n\n​\n\n31,764\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n31,764\n\n​\n\n​\n\n6,456\n\nOwner occupied commercial real estate\n\n​\n\n​\n\n811\n\n​\n\n​\n\n—\n\n​\n\n​\n\n541\n\n​\n\n​\n\n1,352\n\n​\n\n​\n\n290\n\nConstruction and land development\n\n​\n\n​\n\n5,743\n\n​\n\n​\n\n661\n\n​\n\n​\n\n—\n\n​\n\n​\n\n6,404\n\n​\n\n​\n\n161\n\nAgriculture real estate\n\n​\n\n​\n\n1,695\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n1,695\n\n​\n\n​\n\n—\n\nCommercial and industrial\n\n​\n\n​\n\n494\n\n​\n\n​\n\n—\n\n​\n\n​\n\n3,128\n\n​\n\n​\n\n3,622\n\n​\n\n​\n\n1,129\n\nTotal loans\n\n​\n\n$\n\n41,259\n\n​\n\n$\n\n661\n\n​\n\n$\n\n3,669\n\n​\n\n$\n\n45,589\n\n​\n\n$\n\n8,153\n\n​\n\n*Nonaccrual Loans*. The following table presents the Company’s amortized cost basis of nonaccrual loans segmented by class of loans at June 30, 2026 and 2025.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\n1-4 Family residential real estate\n\n$\n\n3,402\n\n​\n\n$\n\n2,847\n\nNon-owner occupied commercial real estate\n\n \n\n3,575\n\n​\n\n \n\n5,784\n\nOwner occupied commercial real estate\n\n \n\n1,071\n\n​\n\n \n\n1,309\n\nConstruction and land development\n\n \n\n5,974\n\n​\n\n \n\n5,789\n\nAgriculture real estate\n\n \n\n1,989\n\n​\n\n \n\n3,268\n\nCommercial and industrial\n\n \n\n3,688\n\n​\n\n \n\n3,442\n\nAgriculture production\n\n \n\n7,898\n\n​\n\n \n\n505\n\nConsumer\n\n \n\n58\n\n​\n\n \n\n96\n\nTotal loans\n\n$\n\n27,655\n\n​\n\n$\n\n23,040\n\n​\n\nAt June 30, 2026, there were 40 nonaccrual loans totaling $11.9 million, and at June 30, 2025 there were four nonaccrual loans totaling $7.4 million, that were individually evaluated for which no ACL was recorded.\n\n*Modifications to Borrowers Experiencing Financial Difficulty.*During fiscal 2026, four loans totaling $5.8 million, were modified for borrowers experiencing financial difficulty. During fiscal 2025, ten loans totaling $25.7 million were modified for borrowers experiencing financial difficulty. Loans classified as modifications to borrowers experiencing financial difficulty outstanding at June 30, 2026 and 2025 are shown in the following tables segregated by portfolio segment and type of modification. The percentage of amortized cost of loans that were modified compared to total outstanding loans is also presented below.\n\n​\n\n109\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTerm\n\n​\n\nInterest\n\n​\n\nTotal Class of\n\n  ​ ​ ​\n\n​\n\nPrincipal\n\n​\n\nPayment\n\n​\n\nExtension\n\n​\n\nRate\n\n​\n\nFinancing\n\n  ​ ​ ​\n\n​\n\nForgiveness\n\n**  ​ ​ ​**\n\nDelays\n\n**  ​ ​ ​**\n\nModifications\n\n**  ​ ​ ​**\n\nReduction\n\n**  ​ ​ ​**\n\nReceivable\n\n​\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n—\n\n%  \n\nNon-owner occupied commercial real estate\n\n \n\n1,512\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n0.16\n\n%  \n\nOwner occupied commercial real estate\n\n \n\n—\n\n​\n\n \n\n3,731\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n0.79\n\n%  \n\nMulti-family real estate\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nConstruction and land development\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nAgriculture real estate\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nCommercial and industrial\n\n \n\n—\n\n​\n\n \n\n589\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n0.11\n\n%  \n\nAgriculture production\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nConsumer\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nAll other loans\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nTotal\n\n$\n\n1,512\n\n​\n\n$\n\n4,320\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n0.13\n\n%  \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTerm\n\n​\n\nInterest\n\n​\n\nTotal Class of\n\n  ​ ​ ​\n\n​\n\nPrincipal\n\n​\n\nPayment\n\n​\n\nExtension\n\n​\n\nRate\n\n​\n\nFinancing\n\n  ​ ​ ​\n\n​\n\nForgiveness\n\n**  ​ ​ ​**\n\nDelays\n\n**  ​ ​ ​**\n\nModifications\n\n**  ​ ​ ​**\n\nReduction\n\n**  ​ ​ ​**\n\nReceivable\n\n​\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n1-4 Family residential real estate\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n24\n\n​\n\n$\n\n—\n\n​\n\n0.00\n\n%  \n\nNon-owner occupied commercial real estate\n\n \n\n—\n\n​\n\n \n\n22,270\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n2.51\n\n%  \n\nOwner occupied commercial real estate\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,701\n\n​\n\n0.61\n\n%  \n\nMulti-family real estate\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nConstruction and land development\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n661\n\n​\n\n0.20\n\n%  \n\nAgriculture real estate\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nCommercial and industrial\n\n \n\n—\n\n​\n\n \n\n54\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n0.01\n\n%  \n\nAgriculture production\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nConsumer\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nAll other loans\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n—\n\n%  \n\nTotal\n\n$\n\n—\n\n​\n\n$\n\n22,324\n\n​\n\n$\n\n24\n\n​\n\n$\n\n3,362\n\n​\n\n0.63\n\n%  \n\n​\n\nNone of the modifications made during fiscal 2026 or 2025 were more than 90 days past due. There were no loans that experienced a default during the fiscal years ended June 30, 2026 or June 30, 2025, after being granted a modification within the preceding twelve months. As of June 30, 2026, there were no commitments to lend funds to these borrowers. For modifications to loans made to borrowers experiencing financial difficulty that are adversely classified, the Company determines the ACL on an individual basis, using the same process that it utilizes for other adversely classified loans. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the ACL because of the measurement methodologies used to estimate the allowance. As a result, a change to the ACL is generally not recorded upon modification.\n\n*Real Estate Foreclosures*. The Company may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure, deed in lieu, or in-substance repossession. As of June 30, 2026 and June 30, 2025, the carrying value of foreclosed residential real estate properties as a result of obtaining physical possession was $88,000 and $0, respectively. In addition, as of June 30, 2026 and 2025, the Company had residential mortgage loans and home equity loans with a carrying value of $903,000 and $769,000 respectively, collateralized by residential real estate property for which formal foreclosure proceedings were in process.\n\n110\n\n[Table of Contents](#TOC)\n\nFollowing is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2026 and 2025, respectively:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\nBeginning Balance\n\n \n\n$\n\n14,377\n\n​\n\n$\n\n11,101\n\nAdditions\n\n \n\n \n\n11,043\n\n​\n\n \n\n8,816\n\nRepayments\n\n \n\n \n\n(9,248)\n\n​\n\n \n\n(7,228)\n\nChange in related party\n\n \n\n \n\n22,949\n\n​\n\n \n\n1,688\n\nEnding Balance\n\n \n\n$\n\n39,121\n\n​\n\n$\n\n14,377\n\n​\n\n​\n\n​\n\n​\n\nNOTE **4: Premises and Equipment**\n\nFollowing is a summary of premises and equipment:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\nLand\n\n​\n\n$\n\n15,509\n\n​\n\n$\n\n15,386\n\nBuildings and improvements\n\n​\n\n \n\n89,731\n\n​\n\n \n\n85,512\n\nConstruction in progress\n\n​\n\n \n\n43\n\n​\n\n \n\n2,754\n\nFurniture, fixtures, equipment and software\n\n​\n\n \n\n31,274\n\n​\n\n \n\n29,386\n\nAutomobiles\n\n​\n\n \n\n128\n\n​\n\n \n\n118\n\nOperating leases ROU asset\n\n​\n\n \n\n6,750\n\n​\n\n \n\n6,991\n\n​\n\n​\n\n \n\n143,435\n\n​\n\n \n\n140,147\n\nLess accumulated depreciation\n\n​\n\n \n\n50,244\n\n​\n\n \n\n44,165\n\n​\n\n​\n\n$\n\n93,191\n\n​\n\n$\n\n95,982\n\n​\n\n*Leases*. The Company elected certain relief options under ASU 2016-02, Leases (Topic 842), including the option not to recognize right of use asset and lease liabilities that arise from short-term leases (leases with terms of twelve months or less). At June 30, 2026, the Company had ten leased properties, which included banking facilities, administrative offices and ground leases, and numerous office equipment lease agreements in which it is the lessee, with lease terms exceeding twelve months.\n\nAll of the Company’s leases are classified as operating leases. These operating leases are included as a ROU asset in the premises and equipment, net line item on the Company’s consolidated balance sheets. The corresponding lease liability is included in the accounts payable and other liabilities line item on the Company’s consolidated balance sheets.\n\nASU 2016-02 also requires certain other accounting elections. The Company elected the short-term lease recognition exemption for all leases that qualify, meaning those with terms under twelve months. ROU assets or lease liabilities are not to be recognized for short-term leases. The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, the ASU requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception over a similar term. The range of discount rates utilized at June 30, 2026, was 3.5% to 5.7%, and the expected lease terms ranged from 18 months to 21.6 years. At June 30, 2026, the weighted-average lease term was 15.0 years and the weighted-average discount rate was 4.75%. At June 30, 2025, the weighted-average lease term was 16.1 years and the weighted-average discount rate was 4.76%.\n\n​\n\n111\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**  ​ ​ ​**\n\n**June 30, 2026**\n\n  ​ ​ ​\n\nJune 30, 2025\n\nConsolidated Balance Sheets\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nOperating leases ROU asset\n\n​\n\n$\n\n6,750\n\n​\n\n$\n\n6,991\n\nOperating leases liability\n\n​\n\n$\n\n6,750\n\n​\n\n$\n\n6,991\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAt or For the Twelve\n\n​\n\nAt or For the Twelve\n\n​\n\n​\n\nMonths Ended\n\n​\n\nMonths Ended\n\n*(dollars in thousands)*\n\n​\n\n**June 30, 2026**\n\n​\n\nJune 30, 2025\n\nConsolidated Statements of Income\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating lease costs classified as occupancy and equipment, net expense\n\n​\n\n$\n\n1,229\n\n​\n\n$\n\n1,192\n\n(includes short-term lease costs)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nSupplemental disclosures of cash flow information\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash paid for amounts included in the measurement of lease liabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating cash flows from operating leases\n\n​\n\n$\n\n872\n\n​\n\n$\n\n760\n\nROU assets obtained in exchange for operating lease obligations:\n\n​\n\n$\n\n127\n\n​\n\n$\n\n—\n\n​\n\n​\n\nAt June 30, 2026, future expected lease payments for leases with terms exceeding one year were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n  ​\n\n​\n\n2027\n\n​\n\n$\n\n897\n\n2028\n\n​\n\n \n\n911\n\n2029\n\n​\n\n \n\n882\n\n2030\n\n​\n\n \n\n851\n\n2031\n\n​\n\n \n\n858\n\nThereafter\n\n​\n\n \n\n7,025\n\nFuture lease payments expected\n\n​\n\n​\n\n11,424\n\nLess: present value discount\n\n​\n\n​\n\n(4,674)\n\nTotal lease liability\n\n​\n\n$\n\n6,750\n\n​\n\n​\n\n​\n\n​\n\n​\n\nThe Company leases facilities it owns or portions of facilities it owns to other third parties. The Company has determined that all of these lease agreements, in terms of being the lessor, are classified as operating leases. For the years ended June 30, 2026 and 2025, income recognized from these lessor agreements was $541,000 and $432,000, respectively. Income from lessor agreements was included in net occupancy and equipment, net expense.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n112\n\n[Table of Contents](#TOC)\n\nNOTE **5: Deposits**\n\nDeposits are summarized as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n2025\n\nNon-interest bearing deposits\n\n​\n\n$\n\n560,704\n\n​\n\n$\n\n508,110\n\nNOW accounts\n\n​\n\n \n\n1,074,489\n\n​\n\n \n\n1,132,298\n\nMMDAs - non-brokered\n\n​\n\n​\n\n314,350\n\n​\n\n​\n\n329,837\n\nBrokered MMDAs\n\n​\n\n \n\n10,654\n\n​\n\n \n\n1,414\n\nSavings accounts\n\n​\n\n \n\n707,482\n\n​\n\n \n\n661,115\n\nTOTAL NON-MATURITY DEPOSITS\n\n​\n\n \n\n2,667,679\n\n​\n\n \n\n2,632,774\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCertificates of deposit - non-brokered\n\n​\n\n​\n\n1,460,172\n\n​\n\n​\n\n1,414,945\n\nBrokered certificates of deposit\n\n​\n\n​\n\n279,995\n\n​\n\n​\n\n233,649\n\nTOTAL CERTIFICATES\n\n​\n\n​\n\n1,740,167\n\n​\n\n​\n\n1,648,594\n\nTOTAL DEPOSITS\n\n​\n\n$\n\n4,407,846\n\n​\n\n$\n\n4,281,368\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCertificates\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n0.00-0.99%\n\n​\n\n \n\n1,932\n\n​\n\n \n\n6,211\n\n1.00-1.99%\n\n​\n\n \n\n7,915\n\n​\n\n \n\n14,021\n\n2.00-2.99%\n\n​\n\n \n\n36,413\n\n​\n\n \n\n8,314\n\n3.00-3.99%\n\n​\n\n \n\n1,186,394\n\n​\n\n \n\n240,321\n\n4.00-4.99%\n\n​\n\n \n\n507,413\n\n​\n\n \n\n1,347,081\n\n5.00-5.99%\n\n​\n\n \n\n100\n\n​\n\n \n\n32,646\n\nTOTAL CERTIFICATES\n\n​\n\n$\n\n1,740,167\n\n​\n\n$\n\n1,648,594\n\n​\n\nThe aggregate amount of deposits with a minimum denomination of $250,000 was $1.5 billion and $1.4 billion at June 30, 2026 and 2025, respectively.\n\nCertificate maturities are summarized as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n​\n\n​\n\nJuly 1, 2026 to June 30, 2027\n\n​\n\n$\n\n1,442,684\n\nJuly 1, 2027 to June 30, 2028\n\n​\n\n​\n\n185,317\n\nJuly 1, 2028 to June 30, 2029\n\n​\n\n​\n\n61,837\n\nJuly 1, 2029 to June 30, 2030\n\n​\n\n​\n\n26,940\n\nJuly 1, 2030 to June 30, 2031\n\n​\n\n​\n\n23,389\n\nTOTAL\n\n​\n\n$\n\n1,740,167\n\n​\n\nBrokered certificates totaled $280.0 million and $233.6 million at June 30, 2026 and 2025, respectively. Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2026 and 2025 totaled approximately $12.7 million and $14.4 million, respectively.\n\n​\n\nNOTE 6:  Repurchase Agreements\n\n​\n\nSecurities sold under agreements to repurchase totaled $20.0 million at June 30, 2026, an increase of $5.0 million from $15.0 million at June 30, 2025. The following table sets forth the outstanding amounts and interest rates as of June 30, 2026 and June 30, 2025:\n\n​\n\n113\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, **\n\n​\n\nJune 30, \n\n \n\n*(dollars in thousands)*\n\n​\n\n**2026**\n\n​\n\n2025\n\n \n\nPeriod-end balance\n\n​\n\n$\n\n20,000\n\n​\n\n$\n\n15,000\n\n​\n\nAverage balance during the period\n\n​\n\n \n\n19,511\n\n​\n\n \n\n14,330\n\n​\n\nMaximum month-end balance during the period\n\n​\n\n \n\n20,000\n\n​\n\n \n\n15,000\n\n​\n\nAverage interest during the period\n\n​\n\n \n\n4.13\n\n%\n\n \n\n5.35\n\n%\n\nPeriod-end interest rate\n\n​\n\n \n\n4.05\n\n%\n\n \n\n5.11\n\n%\n\n​\n\nThe repurchase agreements mature daily and the following sets forth the collateral pledged by class for repurchase agreements:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, **\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n​\n\n**2026**\n\n​\n\n2025\n\nMortgage-backed securities (MBS)\n\n​\n\n$\n\n19,301\n\n​\n\n$\n\n15,353\n\n​\n\n​\n\n​\n\n​\n\nNOTE 7:  Advances from Federal Home Loan Bank\n\nAdvances from FHLB of Des Moines are secured by FHLB stock and commercial real estate loans, one- to four-family mortgage loans and multi-family mortgage loans pledged. To secure outstanding advances and the Bank’s line of credit, loans totaling $1.6 billion and $1.5 billion were pledged to the FHLB at June 30, 2026 and 2025, respectively. The principal maturities and weighted average rates of FHLB advances at June 30, 2026 and 2025, are below:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\nJune 30, 2025\n\n​\n\n​\n\n​\n\nAmount\n\nWeighted\n\n​\n\n​\n\n​\n\nAmount\n\nWeighted\n\n​\n\n**FHLB Advance Maturities**\n\n**  ​ ​ ​**\n\n​\n\n*(dollars in thousands)*\n\nRate\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\nRate\n\n​\n\nMaturing within one year\n\n​\n\n$\n\n65,424\n\n3.99\n\n%\n\n​\n\n$\n\n16,995\n\n4.04\n\n%\n\nMaturing one year through two years\n\n​\n\n​\n\n45,000\n\n4.08\n\n%\n\n​\n\n​\n\n37,057\n\n4.00\n\n%\n\nMaturing two years through three years\n\n​\n\n​\n\n20,000\n\n4.12\n\n%\n\n​\n\n​\n\n45,000\n\n4.08\n\n%\n\nMaturing three years through four years\n\n​\n\n​\n\n—\n\n—\n\n%\n\n​\n\n​\n\n5,000\n\n4.19\n\n%\n\nMaturing four years through five years\n\n​\n\n​\n\n—\n\n—\n\n%\n\n​\n\n​\n\n—\n\n—\n\n%\n\nThereafter\n\n​\n\n​\n\n—\n\n—\n\n%\n\n​\n\n​\n\n—\n\n—\n\n%\n\nTOTAL\n\n​\n\n$\n\n130,424\n\n4.04\n\n%\n\n​\n\n$\n\n104,052\n\n4.05\n\n%\n\n​\n\nOf the advances outstanding at June 30, 2026, none are callable by the FHLB prior to maturity. In addition to the above advances, the Bank had additional available credit amounting to $918.4 million and $752.6 million with the FHLB at June 30, 2026 and 2025, respectively.\n\n​\n\n​\n\nNOTE **8: Subordinated Debt**\n\nIn 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\n\n114\n\n[Table of Contents](#TOC)\n\nStates absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures (the “Debentures”) of the Company which have terms identical to the Trust Preferred Securities. At June 30, 2026, the Debentures carried an interest rate of 6.68%. The balance of the Debentures outstanding was $7.2 million at June 30, 2026 and June 30, 2025. The Company used its net proceeds for working capital and investment in its subsidiaries.\n\nIn connection with the October 2013 Ozarks Legacy Community Financial, Inc. (OLCF) merger, the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2035. At June 30, 2026, the current rate was 6.38%. The carrying value of the debt securities was approximately $2.8 million at June 30, 2026 and June 30, 2025.\n\nIn connection with the August 2014 Peoples Service Company, Inc. (PSC) merger, the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on SOFR, are now redeemable at par, and mature in 2035. At June 30, 2026, the current rate was 5.73%. The carrying value of the debt securities was approximately $5.7 million at June 30, 2026 and $5.6 million at June 30, 2025.\n\nThe Company’s investment at a face amount of $505,000 in these trusts is included with Prepaid Expenses and Other Assets in the consolidated balance sheets, and was carried at a value of $474,000 and $471,000 at June 30, 2026 and June 30, 2025, respectively.\n\nIn connection with the February 2022 Fortune merger, the Company assumed $7.5 million in fixed-to-floating rate subordinated notes. The notes had been issued in May 2021 by Fortune to a multi-lender group, bear interest through May 2026 at a fixed rate of 4.5%, and were to bear interest thereafter at SOFR plus 3.77%. The Company retired this debt in May 2026 when the notes became redeemable. The carrying value of the notes were $0 million at June 30, 2026 and approximately $7.5 million at June 30, 2025.\n\n​\n\nNOTE **9: Employee Benefits**\n\n*401(k) Retirement Plan.* The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank makes “safe harbor” matching contributions of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee. Additional profit-sharing contributions of 5% of eligible salary have been accrued for the plan year ended June 30, 2026, which the board of directors authorizes based on management recommendations and financial performance for fiscal 2026. Total 401(k) expense for fiscal 2026, 2025, and 2024, was $3.3 million, $2.4 million, and $2.8 million, respectively. At June 30, 2026 and 2025, 401(k) plan participants held approximately 424,000 and 418,000 shares, respectively, of the Company’s stock in the plan. Employee deferrals and safe harbor contributions are fully vested. Profit-sharing or other contributions vest over a period of five years.\n\n*2003 Stock Option Plan*. The Company adopted a stock option plan in October 2003 (the 2003 Plan). Under the plan, the Company granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 197,000 shares (split-adjusted) have been exercised, and options to purchase 45,000 shares (split-adjusted) have been forfeited. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. At the 2017 annual meeting, shareholders approved the 2017 Omnibus Incentive Plan, which provided that no further awards would be made under the 2003 Plan.\n\nAs of June 30, 2026, no options remained outstanding and there was no remaining unrecognized compensation expense related to unvested stock options under the 2003 Plan. No options to purchase shares were vested in fiscal 2026, 2025, or 2024. There were no shares exercised in fiscal 2026 or fiscal 2025, and 10,000 shares were exercised in fiscal 2024.\n\n115\n\n[Table of Contents](#TOC)\n\n*2017 Omnibus Incentive Plan*. The Company adopted an equity-based incentive plan in October 2017 (the 2017 Plan). Under the 2017 Plan, the Company reserved for issuance 500,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2017 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2017 Plan. Under the 2017 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.\n\nUnder the 2017 Plan, as of June 30, 2026, options to purchase 161,500 shares had been granted to employees and directors, of which 18,200 options had been exercised, 18,300 had been forfeited, and 125,000 remained outstanding. As of June 30, 2026, there was $435,000 in remaining unrecognized compensation expense related to unvested stock options under the 2017 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2017 Plan at June 30, 2026, was $4.3 million, and there were no options exercisable that were out-of-the-money at June 30, 2026, with a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2026, 2025, and 2024 was $592,000, $218,000, and $126,000, respectively. \n\nUnder the 2017 Plan, full value awards totaling 26,600 were issued to employees and directors in fiscal 2024, and none in fiscal 2025 or fiscal 2026. All full value awards were in the form of either:\n\n●restricted stock vesting at the rate of one-fifth of such shares per year,\n\n●performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period,\n\n●restricted stock vesting at the rate of one-third of such shares per year, or\n\n●restricted stock vesting after a three-year service requirement.\n\nDuring fiscal 2026, 2025, and 2024, full value awards of 15,403, 29,523, and 16,624 shares were vested, respectively. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the vesting period. Compensation expense for full value awards under the 2017 Plan for fiscal 2026, 2025, and 2024 was $536,000, $845,000, and $903,000, respectively. At June 30, 2026, unvested compensation expense related to full value awards under the 2017 Plan was approximately $833,000.\n\n*2024 Omnibus Incentive Plan*. The Company adopted an equity-based incentive plan in October 2024 (the 2024 Plan). Under the 2024 Plan, the Company reserved for issuance 650,000 shares of common stock for awards to employees and directors, against which full value awards (stock-based awards other than stock options and stock appreciation rights) are to be counted on a 2.5-for-1 basis. The 2024 Plan authorized awards to be made to employees, officers, and directors by a committee of outside directors. The committee held the power to set vesting requirements for each award under the 2024 Plan. Under the 2024 Plan, stock awards and shares issued pursuant to exercised options may be issued from either authorized but unissued shares, or treasury shares.\n\nUnder the 2024 Plan, as of June 30, 2026, options to purchase 34,250 shares had been granted to employees and directors, of which none had been exercised or forfeited, and 34,250 remained outstanding. As of June 30, 2026, there was $411,000 in remaining unrecognized compensation expense related to unvested stock options under the 2024 Plan, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of in-the-money stock options outstanding under the 2024 Plan at June 30, 2026, was $626,000, and there were no options exercisable that were out-of-the-money at June 30, 2026, with a strike price in excess of the market price. The intrinsic value of options vested in fiscal 2026 was $38,000, and $0 in fiscal 2025.\n\nUnder the 2024 Plan, full value awards totaling 25,000 and 22,800 shares were issued to employees and directors in fiscal 2026 and 2025, respectively. All full value awards were in the form of either:\n\n●restricted stock vesting at the rate of one-fifth of such shares per year,\n\n●performance-based restricted stock vesting at up to 20% of such shares per year, contingent on the achievement of specified profitability targets over a trailing three-year period.\n\n116\n\n[Table of Contents](#TOC)\n\nDuring fiscal 2026, full value awards of 4,550 shares were vested, and none were vested in fiscal 2025. Compensation expense, in the amount of the fair market value of the common stock at the date of grant, is recognized pro-rata over the vesting period. Compensation expense for full value awards under the 2024 Plan for fiscal years 2026 and 2025 was $388,000 and $115,000, respectively. At June 30, 2026, unvested compensation expense related to full value awards under the 2024 Plan was approximately $2.3 million.\n\n​\n\nChanges in options outstanding under the 2003 Plan, the 2017 Plan, and the 2024 Plan were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**2026**\n\n​\n\n2025\n\n​\n\n2024\n\n​\n\n​\n\nWeighted\n\n​\n\n​\n\n​\n\nWeighted\n\n​\n\n​\n\n​\n\nWeighted\n\n​\n\n​\n\n​\n\n​\n\nAverage\n\n​\n\n​\n\n​\n\nAverage\n\n​\n\n​\n\n​\n\nAverage\n\n​\n\n​\n\n​\n\n****​\n\nPrice\n\n​\n\nNumber\n\n​\n\nPrice\n\n​\n\nNumber\n\n​\n\nPrice\n\n​\n\nNumber\n\nOutstanding at beginning of year\n\n​\n\n$\n\n42.76\n\n​\n\n152,500\n\n​\n\n$\n\n34.43\n\n​\n\n140,500\n\n​\n\n$\n\n39.63\n\n​\n\n148,000\n\nGranted\n\n​\n\n​\n\n56.58\n\n​\n\n22,250\n\n​\n\n​\n\n60.42\n\n​\n\n12,000\n\n​\n\n​\n\n40.74\n\n​\n\n23,500\n\nExercised\n\n​\n\n​\n\n37.67\n\n​\n\n(12,200)\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n24.49\n\n​\n\n(16,000)\n\nForfeited\n\n \n\n​\n\n43.78\n\n​\n\n(3,300)\n\n \n\n​\n\n—\n\n​\n\n—\n\n \n\n​\n\n42.35\n\n​\n\n(15,000)\n\nOutstanding at year-end\n\n​\n\n$\n\n45.06\n\n​\n\n159,250\n\n​\n\n$\n\n42.76\n\n​\n\n152,500\n\n​\n\n$\n\n34.43\n\n​\n\n140,500\n\nOptions exercisable at year-end\n\n​\n\n$\n\n41.00\n\n​\n\n96,800\n\n​\n\n$\n\n39.51\n\n​\n\n88,500\n\n​\n\n$\n\n38.44\n\n​\n\n65,800\n\n​\n\nThe following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal years 2026, 2025, and 2024:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n****​\n\n**2026**\n\n****​\n\n2025\n\n****​\n\n2024\n\n​\n\nAssumptions:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nExpected dividend yield\n\n​\n\n​\n\n1.79\n\n%\n\n​\n\n1.52\n\n%\n\n​\n\n2.06\n\n%\n\nExpected volatility\n\n \n\n​\n\n33.35\n\n%\n\n​\n\n36.53\n\n%\n\n​\n\n34.89\n\n%\n\nRisk-free interest rate\n\n​\n\n​\n\n4.02\n\n%\n\n​\n\n4.55\n\n%\n\n​\n\n4.12\n\n%\n\nWeighted-average expected life (years)\n\n​\n\n​\n\n10.00\n\n​\n\n​\n\n10.00\n\n​\n\n​\n\n10.00\n\n​\n\nWeighted-average fair value of options granted during the year\n\n​\n\n$\n\n22.27\n\n​\n\n$\n\n27.06\n\n​\n\n$\n\n15.88\n\n​\n\n​\n\nThe table below summarizes information about stock options outstanding under the 2017 Plan, and the 2024 Plan at June 30, 2026:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWeighted\n\n​\n\nOptions Outstanding\n\n​\n\nOptions Exercisable\n\nAverage\n\n​\n\n​\n\n​\n\nWeighted\n\n​\n\n​\n\n​\n\nWeighted\n\nRemaining\n\n​\n\n​\n\n​\n\nAverage\n\n​\n\n​\n\n​\n\nAverage\n\nContractual\n\n​\n\nNumber\n\n​\n\nExercise\n\n​\n\nNumber\n\n​\n\nExercise\n\nLife\n\n****​\n\nOutstanding\n\n​\n\nPrice\n\n​\n\nExercisable\n\n​\n\nPrice\n\n19 mo.\n\n​\n\n11,500\n\n​\n\n​\n\n37.31\n\n​\n\n11,500\n\n​\n\n​\n\n37.31\n\n30 mo.\n\n​\n\n11,500\n\n​\n\n​\n\n34.35\n\n​\n\n11,500\n\n​\n\n​\n\n34.35\n\n44 mo.\n\n​\n\n11,500\n\n​\n\n​\n\n37.40\n\n​\n\n11,500\n\n​\n\n​\n\n37.40\n\n55 mo.\n\n​\n\n20,000\n\n​\n\n​\n\n34.91\n\n​\n\n20,000\n\n​\n\n​\n\n34.91\n\n67 mo.\n\n​\n\n10,000\n\n​\n\n​\n\n53.82\n\n​\n\n8,000\n\n​\n\n​\n\n53.82\n\n73 mo.\n\n​\n\n7,500\n\n​\n\n​\n\n46.59\n\n​\n\n4,500\n\n​\n\n​\n\n46.59\n\n80 mo.\n\n​\n\n31,000\n\n​\n\n​\n\n46.94\n\n​\n\n18,600\n\n​\n\n​\n\n46.94\n\n87 mo.\n\n​\n\n3,500\n\n​\n\n​\n\n40.28\n\n​\n\n1,400\n\n​\n\n​\n\n40.28\n\n91 mo.\n\n​\n\n18,500\n\n​\n\n​\n\n40.82\n\n​\n\n7,400\n\n​\n\n​\n\n40.82\n\n104 mo.\n\n​\n\n12,000\n\n​\n\n​\n\n60.42\n\n​\n\n2,400\n\n​\n\n​\n\n60.42\n\n112 mo.\n\n​\n\n11,000\n\n​\n\n​\n\n50.05\n\n​\n\n—\n\n​\n\n​\n\n50.05\n\n116 mo.\n\n​\n\n11,250\n\n​\n\n​\n\n62.96\n\n​\n\n—\n\n​\n\n​\n\n62.96\n\n​\n\n​\n\n​\n\n​\n\n​\n\n117\n\n[Table of Contents](#TOC)\n\nNOTE **10: Income Taxes**\n\nThe Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table presents required disclosures pursuant to ASU 2023-09 and reconciles the expected income tax expense (benefit) and effective tax rate, computed by applying the effective statutory rate of 21% for the year ended June 30, 2026 as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFor the year ended June 30\n\n*(dollars in thousands)*\n\n****​\n\n**2026**\n\nU.S. Federal statutory tax rate\n\n​\n\n$\n\n18,292\n\n​\n\n21.0\n\n%\n\nState and local income taxes, net of federal income tax effect (1)\n\n​\n\n​\n\n431\n\n​\n\n0.5\n\n%\n\nNontaxable or nondeductible items:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNontaxable municipal income\n\n​\n\n \n\n(564)\n\n​\n\n(0.6)\n\n%\n\nCash surrender value of Bank-owned life insurance\n\n​\n\n \n\n(540)\n\n​\n\n(0.6)\n\n%\n\nTax credit benefits\n\n​\n\n \n\n(2,447)\n\n​\n\n(2.8)\n\n%\n\nOther, net\n\n​\n\n \n\n93\n\n​\n\n0.1\n\n%\n\nActual provision\n\n​\n\n$\n\n15,265\n\n​\n\n17.5\n\n%\n\n(1) State taxes in Missouri made up the majority (greater than 50%) of the tax effect in this category.\n\nThe following table presents the required disclosures prior to the Company's adoption of ASU 2023-09 and reconciles the expected income tax expense (benefit), computed by applying the effective federal statutory rate of 21% for each year to income before income tax expense is as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n****​\n\nFor the years ended June 30,\n\n*(dollars in thousands)*\n\n​\n\n2025\n\n​\n\n2024\n\nTax at statutory rate\n\n​\n\n$\n\n15,539\n\n​\n\n$\n\n13,253\n\nIncrease (reduction) in taxes resulting from:\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nNontaxable municipal income\n\n​\n\n \n\n(332)\n\n​\n\n \n\n(471)\n\nState tax, net of Federal benefit\n\n​\n\n \n\n653\n\n​\n\n \n\n412\n\nCash surrender value of Bank-owned life insurance\n\n​\n\n \n\n(438)\n\n​\n\n \n\n(401)\n\nTax credit benefits\n\n​\n\n \n\n(710)\n\n​\n\n \n\n(12)\n\nOther, net\n\n​\n\n \n\n704\n\n​\n\n \n\n147\n\nActual provision\n\n​\n\n$\n\n15,416\n\n​\n\n$\n\n12,928\n\n​\n\nFor the years ended June 30, 2026, 2025, and 2024, income tax expense at the statutory rate was calculated using a 21% annual effective tax rate (AETR). Tax credit benefits are recognized under the proportional amortization method of accounting for investments in tax credits.\n\n​\n\n118\n\n[Table of Contents](#TOC)\n\nThe components of net deferred tax assets (included in other assets on the condensed consolidated balance sheet) are summarized as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n**June 30, 2026**\n\n  ​ ​ ​\n\nJune 30, 2025\n\nDeferred tax assets:\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nProvision for losses on loans\n\n​\n\n$\n\n13,053\n\n​\n\n$\n\n12,225\n\nAccrued compensation and benefits\n\n​\n\n \n\n1,283\n\n​\n\n \n\n1,210\n\nNOL carry forwards acquired\n\n​\n\n \n\n18\n\n​\n\n \n\n24\n\nUnrealized loss on available-for-sale securities\n\n​\n\n​\n\n2,749\n\n​\n\n​\n\n3,201\n\nOther\n\n​\n\n \n\n887\n\n​\n\n \n\n552\n\nTotal deferred tax assets\n\n​\n\n \n\n17,990\n\n​\n\n \n\n17,212\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDeferred tax liabilities:\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nPurchase accounting adjustments\n\n​\n\n \n\n2,423\n\n​\n\n \n\n2,604\n\nDepreciation\n\n​\n\n \n\n4,606\n\n​\n\n \n\n4,468\n\nFHLB stock dividends\n\n​\n\n \n\n120\n\n​\n\n \n\n120\n\nPrepaid expenses\n\n​\n\n \n\n563\n\n​\n\n \n\n586\n\nTotal deferred tax liabilities\n\n​\n\n \n\n7,712\n\n​\n\n \n\n7,778\n\nNet deferred tax asset\n\n​\n\n$\n\n10,278\n\n​\n\n$\n\n9,434\n\n​\n\nThe Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to federal and state tax examinations by tax authorities for tax years ending June 30, 2022 and before. The Company’s Missouri income tax returns for the fiscal years ended June 30, 2016 through 2018 are under audit by the Missouri Department of Revenue. The Company recognized no interest or penalties related to income taxes for the periods presented.\n\nAs of June 30, 2026, the Company had approximately $82,000 in federal net operating loss carryforwards, which were acquired in the July 2009 Southern Bank of Commerce merger. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2030.\n\nThe Company adopted ASU 2023-09 on a prospective basis on July 1, 2025. The following table represents income taxes paid, net of refunds received, disaggregated by federal, and state taxes, including income taxes paid, net of refunds received, in individual jurisdictions that are equal to or greater than 5% of total income taxes paid:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n****​\n\nFor the year ended\n\n​\n\n​\n\nJune 30,\n\n*(dollars in thousands)*\n\n​\n\n**2026**\n\nU.S. Federal income taxes paid\n\n​\n\n$\n\n9,128\n\nState income taxes paid\n\n​\n\n \n\n11\n\nTotal income taxes paid\n\n​\n\n$\n\n9,139\n\n​\n\n​\n\n​\n\n​\n\n119\n\n[Table of Contents](#TOC)\n\nNOTE **11: Accumulated Other Comprehensive Loss (AOCL)**\n\nThe components of AOCL, included in stockholders’ equity, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\nNet unrealized loss on securities available-for-sale\n\n​\n\n$\n\n(12,493)\n\n​\n\n$\n\n(14,551)\n\nUnrealized loss from defined benefit pension plan\n\n​\n\n​\n\n(24)\n\n​\n\n​\n\n(25)\n\n​\n\n​\n\n​\n\n(12,517)\n\n​\n\n​\n\n(14,576)\n\nTax effect\n\n​\n\n​\n\n2,745\n\n​\n\n​\n\n3,198\n\nNet of tax amount\n\n​\n\n$\n\n(9,772)\n\n​\n\n$\n\n(11,378)\n\n​\n\nAmounts reclassified from AOCL and the affected line items in the consolidated statements of income during the years ended June 30, 2026 and 2025, were as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAmounts Reclassified From AOCL\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAffected Line Item in the Condensed\n\n​\n\n**  ​ ​ ​**\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\n**  ​ ​ ​**\n\nConsolidated Statements of Income\n\nUnrealized gain on securities available-for-sale\n\n​\n\n$\n\n—\n\n​\n\n$\n\n48\n\n​\n\n​\n\nNet realized gains (losses) on sale of AFS securities\n\nAmortization of defined benefit pension items\n\n​\n\n$\n\n1\n\n​\n\n$\n\n2\n\n​\n\n​\n\nCompensation and benefits (included in computation of net periodic pension costs)\n\nTotal reclassified amount before tax\n\n​\n\n​\n\n1\n\n​\n\n​\n\n50\n\n​\n\n​\n\n​\n\nTax benefit\n\n​\n\n​\n\n0\n\n​\n\n​\n\n11\n\n​\n\n​\n\nProvision for income tax\n\nTotal reclassification out of AOCL\n\n​\n\n$\n\n1\n\n​\n\n$\n\n40\n\n​\n\n​\n\nNet Income\n\n​\n\n​\n\nNOTE **12: Stockholders’ Equity and Regulatory Capital**\n\nThe Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Company and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company and Bank’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.\n\nQuantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Additionally, to make distributions or discretionary bonus payments, the Company and Bank must maintain a capital conservation buffer of 2.5% of risk-weighted assets. Management believes, as of June 30, 2026 and 2025, that the Company and the Bank met all capital adequacy requirements to which they are subject.\n\nIn August 2020, the Federal banking agencies adopted a final rule updating a December 2018 rule regarding the impact on regulatory capital of adoption of the CECL standard. The rule now allows institutions that adopt the CECL standard in 2020 a five-year transition period to recognize the estimated impact of adoption on regulatory capital. The Company and the Bank elected to exercise the option to recognize the impact of adoption over the five-year period, and have fully completed the transition period as of June 30, 2026.\n\n120\n\n[Table of Contents](#TOC)\n\nAs of June 30, 2026, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category.\n\nThe tables below summarize the Company and Bank’s actual and required regulatory capital:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTo Be Well Capitalized Under\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPrompt Corrective Action\n\n​\n\n​\n\n​\n\nActual\n\n​\n\n​\n\nFor Capital Adequacy Purposes\n\n​\n\n​\n\nProvisions\n\n​\n\n**As of June 30, 2026**\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n  ​ ​\n\n$\n\n618,987\n\n \n\n13.81\n\n%\n\n  ​ ​\n\n$\n\n358,650\n\n \n\n8.00\n\n%\n\n  ​ ​\n\n$\n\nn/a\n\n \n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n592,351\n\n​\n\n13.37\n\n%\n\n​\n\n​\n\n354,515\n\n​\n\n8.00\n\n%\n\n​\n\n​\n\n443,143\n\n​\n\n10.00\n\n%\n\nTier I Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n562,917\n\n​\n\n12.56\n\n%\n\n​\n\n​\n\n268,988\n\n​\n\n6.00\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n536,920\n\n​\n\n12.12\n\n%\n\n​\n\n​\n\n265,886\n\n​\n\n6.00\n\n%\n\n​\n\n​\n\n354,515\n\n​\n\n8.00\n\n%\n\nTier I Capital (to Average Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n562,917\n\n​\n\n11.03\n\n%\n\n​\n\n​\n\n204,072\n\n​\n\n4.00\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n536,920\n\n​\n\n10.45\n\n%\n\n​\n\n​\n\n205,606\n\n​\n\n4.00\n\n%\n\n​\n\n​\n\n257,007\n\n​\n\n5.00\n\n%\n\nCommon Equity Tier I Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n547,151\n\n​\n\n12.20\n\n%\n\n​\n\n​\n\n201,741\n\n​\n\n4.50\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n536,920\n\n​\n\n12.12\n\n%\n\n​\n\n​\n\n199,414\n\n​\n\n4.50\n\n%\n\n​\n\n​\n\n288,043\n\n​\n\n6.50\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTo Be Well Capitalized Under\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPrompt Corrective Action\n\n​\n\n​\n\n​\n\nActual\n\n​\n\n​\n\nFor Capital Adequacy Purposes\n\n​\n\n​\n\nProvisions\n\n​\n\nAs of June 30, 2025\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nRatio\n\n​\n\n*(dollars in thousands)*\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n  ​ ​\n\n$\n\n577,150\n\n \n\n13.95\n\n%\n\n  ​ ​\n\n$\n\n331,050\n\n \n\n8.00\n\n%\n\n  ​ ​\n\n$\n\nn/a\n\n \n\nn/a\n\n \n\nSouthern Bank\n\n​\n\n​\n\n545,293\n\n​\n\n13.34\n\n%\n\n​\n\n​\n\n326,920\n\n​\n\n8.00\n\n%\n\n​\n\n​\n\n408,650\n\n​\n\n10.00\n\n%\n\nTier I Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n517,842\n\n​\n\n12.51\n\n%\n\n​\n\n​\n\n248,288\n\n​\n\n6.00\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n494,186\n\n​\n\n12.09\n\n%\n\n​\n\n​\n\n245,190\n\n​\n\n6.00\n\n%\n\n​\n\n​\n\n326,920\n\n​\n\n8.00\n\n%\n\nTier I Capital (to Average Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n517,842\n\n​\n\n10.61\n\n%\n\n​\n\n​\n\n195,249\n\n​\n\n4.00\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n494,186\n\n​\n\n10.05\n\n%\n\n​\n\n​\n\n196,782\n\n​\n\n4.00\n\n%\n\n​\n\n​\n\n245,977\n\n​\n\n5.00\n\n%\n\nCommon Equity Tier I Capital (to Risk-Weighted Assets)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nConsolidated\n\n​\n\n​\n\n502,197\n\n​\n\n12.14\n\n%\n\n​\n\n​\n\n186,216\n\n​\n\n4.50\n\n%\n\n​\n\n​\n\nn/a\n\n​\n\nn/a\n\n​\n\nSouthern Bank\n\n​\n\n​\n\n494,186\n\n​\n\n12.09\n\n%\n\n​\n\n​\n\n183,892\n\n​\n\n4.50\n\n%\n\n​\n\n​\n\n265,622\n\n​\n\n6.50\n\n%\n\n​\n\nThe Bank’s ability to pay dividends on its common stock to the Company is restricted to maintain adequate capital as shown in the above tables. Additionally, prior regulatory approval is required for the declaration of any dividends generally in excess of the sum of net income for that calendar year and retained net income for the preceding two calendar years. At June 30, 2026, approximately $102.7 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval.\n\n​\n\n121\n\n[Table of Contents](#TOC)\n\nNOTE **13: Commitments and Contingencies**\n\n*Standby Letters of Credit*. In the normal course of business, the Company issues various financial standby, performance standby, and commercial letters of credit for its customers. As consideration for the letters of credit, the institution charges letter of credit fees based on the face amount of the letters and the creditworthiness of the counterparties. These letters of credit are stand­alone agreements, and are unrelated to any obligation the depositor has to the Company.\n\nStandby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers.\n\nThe Company had total outstanding standby letters of credit amounting to $7.5 million at June 30, 2026, and $4.6 million at June 30, 2025, with terms ranging from 12 to 24 months. At June 30, 2026, the Company’s deferred revenue under standby letters of credit agreements was nominal.\n\n*Off-balance-sheet and Credit Risk*. The Company’s Consolidated Financial Statements do not reflect various financial instruments to extend credit to meet the financing needs of its customers.\n\nThese financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments.\n\nThe Company had $948.5 million in commitments to extend credit at June 30, 2026, and $944.0 million at June 30, 2025.\n\nAt June 30, 2026, total commitments to originate fixed-rate loans with terms in excess of one year were $182.4 million at rates ranging from 4.65% to 8.25%, with a weighted-average rate of 6.59%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Company’s policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period.\n\nThe Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri, Arkansas, and Illinois. Although the Company has a diversified portfolio, loans aggregating $1.6 billion at June 30, 2026, are secured by single and multi-family residential real estate generally located in the Company’s primary lending area.**\n\n*Legal proceedings*. Periodically, there have been various claims and lawsuits involving the Company or the Bank, mainly as defendants, such as claims to enforce liens, condemnation proceedings on properties in which the Company or the Bank holds security interests, claims involving the making and servicing of real property loans and other activities incident to the Company’s or the Bank’s business. Aside from such pending claims and lawsuits, which are incident to the conduct of the Company’s or the Bank’s ordinary business, the Company and the Bank are not parties to any material pending legal proceedings which, in the opinion of management, are expected to have a material effect on the financial condition or operations of the Company.\n\n122\n\n[Table of Contents](#TOC)\n\nNOTE **14: Earnings Per Share**\n\nThe following table sets forth the computations of basic and diluted earnings per common share:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands except per share data)*\n\n****​\n\n**2026**\n\n****​\n\n2025\n\n****​\n\n2024\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\nLess: distributed earnings allocated to participating securities\n\n​\n\n \n\n(49)\n\n​\n\n \n\n(47)\n\n​\n\n \n\n(49)\n\nLess: undistributed earnings allocated to participating securities\n\n​\n\n \n\n(265)\n\n​\n\n \n\n(217)\n\n​\n\n \n\n(208)\n\nNet income available to common stockholders\n\n​\n\n$ \n\n71,525\n\n​\n\n$ \n\n58,314\n\n​\n\n$ \n\n49,925\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDenominator for basic earnings per share\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nWeighted-average shares outstanding\n\n​\n\n \n\n11,101,806\n\n​\n\n \n\n11,234,703\n\n​\n\n \n\n11,292,634\n\nEffect of dilutive securities stock options or awards\n\n​\n\n \n\n29,234\n\n​\n\n \n\n23,266\n\n​\n\n \n\n8,645\n\nDenominator for diluted earnings per share\n\n​\n\n​\n\n11,131,040\n\n​\n\n​\n\n11,257,969\n\n​\n\n​\n\n11,301,279\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic earnings per share available to common stockholders\n\n​\n\n$\n\n6.44\n\n​\n\n$\n\n5.19\n\n​\n\n$\n\n4.42\n\nDiluted earnings per share available to common stockholders\n\n​\n\n$\n\n6.43\n\n​\n\n$\n\n5.18\n\n​\n\n$\n\n4.42\n\n​\n\nCertain option and restricted stock awards were excluded from the computation of diluted earnings per share because they were anti-dilutive, based on the average market prices of the Company’s common stock for these periods. Outstanding options and shares of restricted stock totaling 34,250, 81,175, and 79,830 were excluded from the computation of diluted earnings per share for the fiscal years ended June 30, 2026, 2025 and 2024, respectively.\n\n​\n\n​\n\n​\n\n​\n\nNOTE **15: Fair Value Measurements**\n\nASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:\n\n*Level 1* – Quoted prices in active markets for identical assets or liabilities\n\n*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\n\n*Level 3* – Unobservable inputs supported by little or no market activity and significant to the fair value of the assets or liabilities\n\n123\n\n[Table of Contents](#TOC)\n\nRecurring Measurements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair Value Measurements at June 30, 2026, Using:\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices in\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nActive Markets for\n\n​\n\nSignificant Other\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nUnobservable Inputs\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\n(Level 1)\n\n  ​ ​ ​\n\n(Level 2)\n\n  ​ ​ ​\n\n(Level 3)\n\nAssets:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n23,384\n\n​\n\n$\n\n—\n\n​\n\n$\n\n23,384\n\n​\n\n$\n\n—\n\nCorporate obligations\n\n​\n\n​\n\n28,072\n\n​\n\n​\n\n—\n\n​\n\n​\n\n28,072\n\n​\n\n​\n\n—\n\nAsset-backed securities\n\n​\n\n​\n\n42,306\n\n​\n\n​\n\n—\n\n​\n\n​\n\n42,306\n\n​\n\n​\n\n—\n\nOther securities\n\n​\n\n \n\n2,955\n\n​\n\n \n\n—\n\n​\n\n \n\n2,955\n\n​\n\n \n\n—\n\nMBS and CMOs\n\n​\n\n \n\n354,058\n\n​\n\n \n\n—\n\n​\n\n \n\n354,058\n\n​\n\n \n\n—\n\nMortgage servicing rights\n\n​\n\n​\n\n2,313\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2,313\n\nDerivative financial instruments\n\n​\n\n​\n\n320\n\n​\n\n​\n\n—\n\n​\n\n​\n\n320\n\n​\n\n​\n\n—\n\nLiabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative financial instruments\n\n​\n\n​\n\n274\n\n​\n\n​\n\n—\n\n​\n\n​\n\n274\n\n​\n\n​\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair Value Measurements at June 30, 2025, Using:\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices in\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nActive Markets for \n\n​\n\nSignificant Other\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nUnobservable Inputs\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\n(Level 1)\n\n  ​ ​ ​\n\n(Level 2)\n\n  ​ ​ ​\n\n(Level 3)\n\nAssets:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nObligations of states and political subdivisions\n\n​\n\n$\n\n24,263\n\n​\n\n$\n\n—\n\n​\n\n$\n\n24,263\n\n​\n\n$\n\n—\n\nCorporate obligations\n\n​\n\n​\n\n30,642\n\n​\n\n​\n\n—\n\n​\n\n​\n\n30,642\n\n​\n\n​\n\n—\n\nAsset-backed securities\n\n​\n\n​\n\n42,481\n\n​\n\n​\n\n—\n\n​\n\n​\n\n42,481\n\n​\n\n​\n\n—\n\nOther securities\n\n​\n\n \n\n3,964\n\n​\n\n \n\n—\n\n​\n\n \n\n3,964\n\n​\n\n \n\n—\n\nMBS and CMOs\n\n​\n\n​\n\n359,494\n\n​\n\n​\n\n—\n\n​\n\n​\n\n359,494\n\n​\n\n​\n\n—\n\nMortgage servicing rights\n\n​\n\n​\n\n2,297\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n2,297\n\nDerivative financial instruments\n\n​\n\n​\n\n912\n\n​\n\n​\n\n—\n\n​\n\n​\n\n912\n\n​\n\n​\n\n—\n\nLiabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDerivative financial instruments\n\n​\n\n \n\n877\n\n​\n\n \n\n—\n\n​\n\n \n\n877\n\n​\n\n \n\n—\n\n​\n\nFollowing is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the year ended June 30, 2026.\n\n*AFS Securities*. When quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated using pricing models, or quoted prices of securities with similar characteristics. For these securities, our Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.\n\n*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\n\n124\n\n[Table of Contents](#TOC)\n\nhierarchy and, as a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. See information regarding the Company’s derivative financial agreements in Note 16: Derivative Financial Instruments of these Notes to Consolidated Financial Statements.\n\n*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.\n\nThe following table summarizes the change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\nMSR, beginning\n\n \n\n$\n\n2,297\n\n​\n\n$\n\n2,448\n\nOriginations\n\n \n\n \n\n234\n\n​\n\n \n\n171\n\nAmortization\n\n \n\n \n\n(231)\n\n​\n\n \n\n(214)\n\nChange in fair value\n\n \n\n \n\n13\n\n​\n\n \n\n(108)\n\nMSR, ending\n\n \n\n$\n\n2,313\n\n​\n\n$\n\n2,297\n\n​\n\nNonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair Value Measurements at **June 30, 2026**, Using:\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices in\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nActive Markets for\n\n​\n\nSignificant Other\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nUnobservable Inputs\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\n(Level 1)\n\n  ​ ​ ​\n\n(Level 2)\n\n  ​ ​ ​\n\n(Level 3)\n\nForeclosed and repossessed assets held for sale\n\n​\n\n$\n\n1,160\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n1,160\n\nCollateral dependent loans\n\n​\n\n​\n\n30,443\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n30,443\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nFair Value Measurements at June 30, 2025, Using:\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices in\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nActive Markets for\n\n​\n\nSignificant Other\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nUnobservable Inputs\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nFair Value\n\n  ​ ​ ​\n\n(Level 1)\n\n  ​ ​ ​\n\n(Level 2)\n\n  ​ ​ ​\n\n(Level 3)\n\nForeclosed and repossessed assets held for sale\n\n​\n\n$\n\n625\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\n​\n\n$\n\n625\n\nCollateral dependent loans\n\n​\n\n​\n\n24,368\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n24,368\n\n​\n\nThe following table presents gains and losses recognized on assets measured on a non-recurring basis for the years ended June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n*(dollars in thousands)*\n\n****​\n\n**2026**\n\n​\n\n2025\n\nForeclosed and repossessed assets held for sale\n\n​\n\n$\n\n737\n\n​\n\n$\n\n(45)\n\nTotal losses (gains) on assets measured on a non-recurring basis\n\n​\n\n$\n\n737\n\n​\n\n$\n\n(45)\n\n​\n\nThe following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below.\n\n*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\n\n125\n\n[Table of Contents](#TOC)\n\nthat 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.\n\n*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.\n\nUnobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at June 30, 2026 and 2025.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\nRange\n\n  ​ ​ ​\n\n​\n\n \n\n​\n\n​\n\nFair value at\n\n​\n\nValuation\n\n​\n\nUnobservable\n\n​\n\nof\n\n​\n\nWeighted-average\n\n \n\n*(dollars in thousands)*\n\n​\n\n**June 30, 2026**\n\n​\n\ntechnique\n\n​\n\ninputs\n\n​\n\ninputs applied\n\n​\n\ninputs applied\n\n \n\nNonrecurring Measurements\n\n \n\n​\n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n​\n\nForeclosed and repossessed assets\n\n​\n\n$\n\n1,160\n\n \n\nThird party appraisal\n\n \n\nMarketability discount\n\n \n\n11.8 - 25.3\n\n%  \n\n12.8\n\n%\n\nCollateral dependent loans\n\n​\n\n​\n\n30,443\n\n \n\nCollateral value\n\n \n\nMarketability discount\n\n \n\n8.0 - 100.0\n\n%  \n\n32.6\n\n%\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n​\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\n​\n\n  ​ ​ ​\n\nRange\n\n  ​ ​ ​\n\n​\n\n \n\n​\n\n​\n\nFair value at\n\n​\n\nValuation\n\n​\n\nUnobservable\n\n​\n\nof\n\n​\n\nWeighted-average\n\n \n\n*(dollars in thousands)*\n\n​\n\nJune 30, 2025\n\n​\n\ntechnique\n\n​\n\ninputs\n\n​\n\ninputs applied\n\n​\n\ninputs applied\n\n \n\nNonrecurring Measurements\n\n \n\n​\n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n \n\n  ​\n\n​\n\nForeclosed and repossessed assets\n\n​\n\n$\n\n625\n\n \n\nThird party appraisal\n\n \n\nMarketability discount\n\n \n\n25.6 -25.6\n\n%  \n\n25.6\n\n%\n\nCollateral dependent loans\n\n​\n\n​\n\n24,368\n\n \n\nCollateral value\n\n \n\nMarketability discount\n\n \n\n0.0 -100.0\n\n%  \n\n14.1\n\n%\n\n​\n\n126\n\n[Table of Contents](#TOC)\n\nFair Value of Financial Instruments. The following table presents estimated fair values of the Company’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2026 and 2025:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nin Active\n\n​\n\n​\n\n​\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMarkets for\n\n​\n\nSignificant Other\n\n​\n\nUnobservable\n\n​\n\n​\n\nCarrying\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nInputs\n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\nAmount\n\n**  ​ ​ ​**\n\n(Level 1)\n\n**  ​ ​ ​**\n\n(Level 2)\n\n**  ​ ​ ​**\n\n(Level 3)\n\nFinancial assets\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nCash and cash equivalents\n\n​\n\n$\n\n90,966\n\n​\n\n$\n\n90,966\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\nStock in FHLB\n\n​\n\n \n\n10,930\n\n​\n\n \n\n—\n\n​\n\n \n\n10,930\n\n​\n\n \n\n—\n\nStock in Federal Reserve Bank of St. Louis\n\n​\n\n \n\n9,181\n\n​\n\n \n\n—\n\n​\n\n \n\n9,181\n\n​\n\n \n\n—\n\nLoans held for sale\n\n​\n\n​\n\n1,787\n\n​\n\n \n\n—\n\n​\n\n \n\n1,787\n\n​\n\n \n\n—\n\nLoans receivable, net\n\n​\n\n \n\n4,336,896\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n4,275,156\n\nAccrued interest receivable\n\n​\n\n \n\n26,868\n\n​\n\n \n\n—\n\n​\n\n \n\n26,868\n\n​\n\n \n\n—\n\nFinancial liabilities\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nDeposits\n\n​\n\n \n\n4,407,846\n\n​\n\n \n\n2,669,144\n\n​\n\n \n\n—\n\n​\n\n \n\n1,736,455\n\nSecurities sold under agreements to repurchase\n\n​\n\n​\n\n20,000\n\n​\n\n​\n\n—\n\n​\n\n​\n\n20,000\n\n​\n\n​\n\n—\n\nAdvances from FHLB\n\n​\n\n \n\n130,424\n\n​\n\n \n\n—\n\n​\n\n \n\n130,428\n\n​\n\n \n\n—\n\nAccrued interest payable\n\n​\n\n \n\n11,782\n\n​\n\n \n\n—\n\n​\n\n \n\n11,782\n\n​\n\n \n\n—\n\nSubordinated debt\n\n​\n\n \n\n15,766\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n15,358\n\nUnrecognized financial instruments (net of contract amount)\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nCommitments to originate loans\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nLetters of credit\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nLines of credit\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n127\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n​\n\n​\n\n​\n\n​\n\nQuoted Prices\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nin Active\n\n​\n\n​\n\n​\n\n​\n\nSignificant\n\n​\n\n​\n\n​\n\n​\n\n​\n\nMarkets for\n\n​\n\nSignificant Other\n\n​\n\nUnobservable\n\n​\n\n​\n\nCarrying\n\n​\n\nIdentical Assets\n\n​\n\nObservable Inputs\n\n​\n\nInputs\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nAmount\n\n  ​ ​ ​\n\n(Level 1)\n\n  ​ ​ ​\n\n(Level 2)\n\n  ​ ​ ​\n\n(Level 3)\n\nFinancial assets\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nCash and cash equivalents\n\n​\n\n$\n\n192,859\n\n​\n\n$\n\n192,859\n\n​\n\n$\n\n—\n\n​\n\n$\n\n—\n\nInterest-bearing time deposits\n\n​\n\n \n\n246\n\n​\n\n \n\n—\n\n​\n\n \n\n246\n\n​\n\n \n\n—\n\nStock in FHLB\n\n​\n\n \n\n9,361\n\n​\n\n \n\n—\n\n​\n\n \n\n9,361\n\n​\n\n \n\n—\n\nStock in Federal Reserve Bank of St. Louis\n\n​\n\n \n\n9,139\n\n​\n\n \n\n—\n\n​\n\n \n\n9,139\n\n​\n\n \n\n—\n\nLoans held for sale\n\n​\n\n​\n\n431\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nLoans receivable, net\n\n​\n\n \n\n4,048,961\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n3,976,696\n\nAccrued interest receivable\n\n​\n\n \n\n26,018\n\n​\n\n \n\n—\n\n​\n\n \n\n26,018\n\n​\n\n \n\n—\n\nMortgage servicing rights\n\n​\n\n \n\n2,297\n\n​\n\n​\n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n2,297\n\nDerivative financial instruments\n\n​\n\n \n\n912\n\n​\n\n \n\n—\n\n​\n\n \n\n912\n\n​\n\n \n\n—\n\nFinancial liabilities\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nDeposits\n\n​\n\n \n\n4,281,368\n\n​\n\n \n\n2,632,774\n\n​\n\n \n\n—\n\n​\n\n \n\n1,650,046\n\nSecurities sold under agreements to repurchase\n\n​\n\n​\n\n15,000\n\n​\n\n​\n\n—\n\n​\n\n \n\n15,000\n\n​\n\n \n\n—\n\nAdvances from FHLB\n\n​\n\n \n\n104,052\n\n​\n\n \n\n—\n\n​\n\n \n\n104,561\n\n​\n\n \n\n—\n\nAccrued interest payable\n\n​\n\n​\n\n14,186\n\n​\n\n \n\n—\n\n​\n\n \n\n14,186\n\n​\n\n \n\n—\n\nSubordinated debt\n\n​\n\n​\n\n23,208\n\n​\n\n​\n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n21,722\n\nDerivative financial instruments\n\n​\n\n​\n\n877\n\n​\n\n​\n\n—\n\n​\n\n \n\n877\n\n​\n\n \n\n—\n\nUnrecognized financial instruments (net of contract amount)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n \n\n​\n\n​\n\n \n\n​\n\nCommitments to originate loans\n\n​\n\n​\n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\nLetters of credit\n\n​\n\n \n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nLines of credit\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n \n\n—\n\n​\n\n​\n\n**NOTE ****16:****Derivative Financial Instruments**\n\n​\n\nThe Company enters into derivative financial instruments, primarily interest rate swaps, to convert certain long term fixed rate loans to floating rates to manage interest rate risk, facilitate asset/liability management strategies and manage other exposures. The fair value of derivative positions outstanding is included in other assets and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these line items in the operating section of the accompanying consolidated statements of cash flows. The unrealized gains and losses, representing the change in fair value of the derivative is being recorded in interest income in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income.\n\n*Fair Value Hedges.* The Company executed two interest rate swaps with original notional amounts totaling $20.0 million during fiscal 2025, and executed two interest rate swaps with original notional amounts totaling $40.0 million during fiscal 2024, for a total of $60.0 million outstanding as of June 30, 2026, designated as fair value hedges, to convert certain long-term fixed rate 1-4 family residential real estate loans to floating rates to hedge interest rate risk exposure. The portfolio layer method is being used, which allows the Company to designate a stated amount of the assets that are not expected to be affected by prepayments, defaults or other factors that could affect the timing and amount of the cash flow, as the hedged item. The effect of the swaps on loan interest income in the consolidated statements of income during the year ended June 30, 2026 was $18,000 compared to $364,000 and $28,000 in the fiscal years ended June 30, 2025 and June 30, 2024, respectively.\n\n128\n\n[Table of Contents](#TOC)\n\nThe notional amounts and estimated fair values of the Company’s interest rate swaps at June 30, 2026 and June 30, 2025 are presented in the table below.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\n​\n\n​\n\n \n\nFair Value\n\n​\n\n \n\n​\n\n​\n\n \n\nPrepaid\n\n \n\nAccounts Payable\n\n​\n\n​\n\n​\n\nNotional\n\n​\n\nExpenses and\n\n​\n\nand Other\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nOther Assets\n\n  ​ ​ ​\n\nLiabilities\n\n1-4 Family interest rate swaps\n\n​\n\n$\n\n60,000\n\n​\n\n$\n\n171\n\n​\n\n$\n\n125\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n \n\n​\n\n​\n\n \n\nFair Value\n\n​\n\n \n\n​\n\n​\n\n \n\nPrepaid\n\n \n\nAccounts Payable\n\n​\n\n​\n\n​\n\nNotional\n\n​\n\nExpenses and\n\n​\n\nand Other\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\n​\n\nAmount\n\n  ​ ​ ​\n\nOther Assets\n\n  ​ ​ ​\n\nLiabilities\n\n1-4 Family interest rate swaps\n\n​\n\n$\n\n60,000\n\n​\n\n$\n\n912\n\n​\n\n$\n\n877\n\n​\n\nThe carrying amount of the hedged assets, located in loans receivable, net and cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets at June 30, 2026 and June 30, 2025 are presented in the table below.\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\nCarrying\n\n \n\nCumulative Amount of Fair Value\n\n​\n\n \n\nAmount of\n\n \n\nHedging Adj Included in\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nHedged Assets\n\n  ​ ​ ​\n\nCarrying Amount of Hedged Assets\n\n1-4 Family interest rate swaps\n\n​\n\n$\n\n401,139\n\n​\n\n$\n\n99\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, 2025\n\n​\n\n \n\nCarrying\n\n \n\nCumulative Amount of Fair Value\n\n​\n\n \n\nAmount of\n\n \n\nHedging Adj Included in\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nHedged Assets\n\n  ​ ​ ​\n\nCarrying Amount of Hedged Assets\n\n1-4 Family interest rate swaps\n\n​\n\n$\n\n474,855\n\n​\n\n$\n\n892\n\n​\n\nA\n\n​\n\n*Non-Hedging Interest Rate Derivatives.* During the fiscal year ended June 30, 2026, the Company entered into two interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into interest rate swap contracts executed with customers to assist them in managing their interest rate risk while executing offsetting interest rate swaps with an upstream counterparty. Additionally, the Company receives an upfront, non-refundable fee from the upstream counterparty, dependent upon the pricing, that is recognized in noninterest income upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations.\n\n​\n\nInterest rate swaps that were not designated as hedging instruments as of June 30, 2026 are summarized as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**June 30, 2026**\n\n​\n\n \n\n​\n\n​\n\n \n\nFair Value\n\n​\n\n \n\n​\n\n \n\nPrepaid\n\n \n\nAccounts Payable\n\n​\n\n​\n\nNotional\n\n​\n\nExpenses and\n\n​\n\nand Other\n\n*(dollars in thousands)*\n\n  ​ ​ ​\n\nAmount\n\n  ​ ​ ​\n\nOther Assets\n\n  ​ ​ ​\n\nLiabilities\n\nNon-Hedging interest rate swap contracts\n\n​\n\n$\n\n28,500\n\n​\n\n$\n\n149\n\n​\n\n$\n\n—\n\nNon-Hedging interest rate swap contracts\n\n​\n\n​\n\n28,500\n\n​\n\n​\n\n—\n\n​\n\n​\n\n149\n\n​\n\n​\n\n129\n\n[Table of Contents](#TOC)\n\nNOTE **17: Condensed Parent Company Only Financial Statements**\n\nThe following condensed balance sheets, statements of income and comprehensive income and cash flows for Southern Missouri Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nJune 30, \n\n*(dollars in thousands)*\n\n****​\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\n**Condensed Balance Sheets**\n\n​\n\n​\n\n**Assets**\n\n​\n\n​\n\n  ​\n\n \n\n​\n\n  ​\n\nCash and cash equivalents\n\n​\n\n$\n\n13,535\n\n​\n\n$\n\n18,449\n\nOther assets\n\n​\n\n​\n\n51,715\n\n​\n\n​\n\n51,483\n\nInvestment in common stock of Bank\n\n​\n\n​\n\n542,113\n\n​\n\n​\n\n498,347\n\nTOTAL ASSETS\n\n​\n\n$\n\n607,363\n\n​\n\n$\n\n568,279\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Liabilities and Stockholders' Equity**\n\n​\n\n​\n\n  ​\n\n​\n\n​\n\n  ​\n\nAccrued expenses and other liabilities\n\n​\n\n$\n\n919\n\n​\n\n$\n\n379\n\nSubordinated debt\n\n​\n\n​\n\n15,766\n\n​\n\n​\n\n23,208\n\nTOTAL LIABILITIES\n\n​\n\n​\n\n16,685\n\n​\n\n​\n\n23,587\n\nStockholders' equity\n\n​\n\n​\n\n590,678\n\n​\n\n​\n\n544,692\n\nTOTAL LIABILITIES AND STOCKHOLDERS' EQUITY\n\n​\n\n$\n\n607,363\n\n​\n\n$\n\n568,279\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nYear ended June 30, \n\n*(dollars in thousands)*\n\n****​\n\n**2026**\n\n****​\n\n2025\n\n  ​ ​ ​\n\n2024\n\n**Condensed Statements of Income**\n\n​\n\n​\n\nInterest income\n\n​\n\n$\n\n33\n\n​\n\n$\n\n37\n\n​\n\n$\n\n41\n\nInterest expense\n\n​\n\n \n\n1,457\n\n​\n\n​\n\n1,628\n\n​\n\n​\n\n1,742\n\nNet interest expense\n\n​\n\n \n\n(1,424)\n\n​\n\n​\n\n(1,591)\n\n​\n\n​\n\n(1,701)\n\nDividends from the Bank\n\n​\n\n​\n\n33,500\n\n​\n\n​\n\n17,000\n\n​\n\n​\n\n16,000\n\nOperating expenses\n\n​\n\n​\n\n1,145\n\n​\n\n​\n\n1,248\n\n​\n\n​\n\n1,018\n\nIncome before income taxes and equity in undistributed income of the Bank\n\n​\n\n​\n\n30,931\n\n​\n\n​\n\n14,161\n\n​\n\n​\n\n13,281\n\nIncome tax (expense) benefit\n\n​\n\n​\n\n539\n\n​\n\n​\n\n(54)\n\n​\n\n​\n\n571\n\nIncome before equity in undistributed income of the Bank\n\n​\n\n​\n\n31,470\n\n​\n\n​\n\n14,107\n\n​\n\n​\n\n13,852\n\nEquity in undistributed income of the Bank\n\n​\n\n​\n\n40,369\n\n​\n\n​\n\n44,471\n\n​\n\n​\n\n36,330\n\nNET INCOME\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\nCOMPREHENSIVE INCOME\n\n​\n\n$\n\n73,445\n\n​\n\n$\n\n64,655\n\n​\n\n$\n\n54,652\n\n​\n\n130\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nYear ended June 30, \n\n*(dollars in thousands)*\n\n**  ​ ​ ​**\n\n**2026**\n\n**  ​ ​ ​**\n\n2025\n\n**  ​ ​ ​**\n\n2024\n\n**Condensed Statements of Cash Flow**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash Flows from operating activities:\n\n​\n\n​\n\nNet income\n\n​\n\n$\n\n71,839\n\n​\n\n$\n\n58,578\n\n​\n\n$\n\n50,182\n\nChanges in:\n\n​\n\n \n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nEquity in undistributed income of the Bank\n\n​\n\n \n\n(40,369)\n\n​\n\n​\n\n(44,471)\n\n​\n\n​\n\n(36,330)\n\nOther adjustments, net\n\n​\n\n​\n\n825\n\n​\n\n​\n\n753\n\n​\n\n​\n\n56\n\nNET CASH PROVIDED BY OPERATING ACTIVITIES\n\n​\n\n​\n\n32,295\n\n​\n\n​\n\n14,860\n\n​\n\n​\n\n13,908\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNET CASH USED IN INVESTING ACTIVITIES\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash flows from financing activities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDividends on common stock\n\n​\n\n​\n\n(11,132)\n\n​\n\n​\n\n(10,378)\n\n​\n\n​\n\n(9,526)\n\nPayments to acquire treasury stock\n\n​\n\n​\n\n(18,577)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(3,857)\n\nRepayments of subordinated debt\n\n​\n\n​\n\n(7,500)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nNET CASH USED IN FINANCING ACTIVITIES\n\n​\n\n​\n\n(37,209)\n\n​\n\n​\n\n(10,378)\n\n​\n\n​\n\n(13,383)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet (decrease) increase in cash and cash equivalents\n\n​\n\n​\n\n(4,914)\n\n​\n\n​\n\n4,482\n\n​\n\n​\n\n525\n\nCash and cash equivalents at beginning of year\n\n​\n\n​\n\n18,449\n\n​\n\n​\n\n13,967\n\n​\n\n​\n\n13,442\n\nCASH AND CASH EQUIVALENTS AT END OF YEAR\n\n​\n\n$\n\n13,535\n\n​\n\n$\n\n18,449\n\n​\n\n$\n\n13,967\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNOTE **18: Segment Reporting**\n\n​\n\nThe Company operates as a single segment entity for financial reporting purposes and has adopted ASU 2023-07 during the year ended June 30, 2025. The Chief Executive Officer, Greg Steffens, serves as the Company’s chief operating decision maker (CODM). The CODM allocates resources and assesses performance of the Company based on the consolidated net income, excluding all significant intercompany balances and transactions, of the Company and its wholly owned subsidiaries and does not significantly utilize disaggregated segment financial information for decision making and resource allocation. Management has reviewed the requirements of ASU 2023-07 and has determined that no additional segment disclosures are required.\n\nBased on this assessment, the Company’s financial statement disclosures fully comply with ASU 2023-07, and no additional qualitative segment disclosures are necessary.\n\n​\n\n​\n\n131\n\n[Table of Contents](#TOC)"}