# Southern Missouri Bancorp Holds Fiscal 2027 Loan Outlook, Models 1% NII Hit

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/38813
Published: 2026-10-23T08:03:04.000Z
Updated: 2026-10-23T08:03:04.000Z
Section: Business

> The model assumes a parallel 100-basis-point rate increase and an unchanged balance sheet. Management expects mid-single-digit loan growth for the fiscal year, with a softer December quarter.

Southern Missouri Bancorp (Nasdaq: SMBC) is keeping its mid-single-digit fiscal 2027 loan-growth outlook while modeling how a 100-basis-point rate increase could reduce net interest income over 12 months.

On Oct. 22, Chief Financial Officer Stefan Chkautovich outlined the result as a model estimate with the balance sheet held unchanged. A parallel rate increase means rates move higher together across the curve; under that setup, the model estimates net interest income would be about 1% lower over the next year. The test measures sensitivity to a defined scenario and does not forecast that rates will rise.

Chkautovich said the bank’s liability-sensitive position may weigh on net interest margin in the near term. He said an upward-sloping yield curve could support margins later as fixed-rate loans mature and reprice. The 1% estimate applies to net interest income under the model’s rate scenario, while the margin comments describe a separate aspect of the bank’s outlook.

President and Chief Administrative Officer Matthew Funke maintained the fiscal 2027 loan-growth expectation in the mid-single-digit range, with a slower pace of net loan growth expected in the December quarter. He said the March quarter is usually the weakest for net loan growth, citing agricultural paydowns. The bank also saw slower residential and commercial real estate lending.

Gross loans increased $63.9 million, or 1.5%, to $4.456 billion at the end of the quarter on Sept. 30. The bank originated about $296 million in loans during the September quarter, compared with $335 million in the June quarter. The loan balance is a quarter-end figure, while originations reflect lending activity during each quarter.

Southern Missouri released preliminary results on Oct. 21, a day before the call. First-quarter net income was $19.1 million, or $1.73 per diluted share. Those figures were up 22% and 25.4%, respectively, from the year-earlier quarter.

Net interest margin rose three basis points from June to 3.70%. Fair-value accretion and liability-premium amortization added five basis points, alongside about $200,000 in interest recovery. Excluding fair-value accretion, liability-premium amortization and that recovery, management estimated adjusted margin at 3.65%.