Southern Missouri Bancorp, Inc. · NASDAQ:SMBC

Southern Missouri Bancorp — Merger or Acquisition (September 2022)

15 slides from Southern Missouri Bancorp's merger presentation, Sep 21, 2022

  1. Slide 1: Acquisition of Citizens Bancshares Co.

    1 Acquisition of Citizens Bancshares Co.September 20, 2022

  2. Slide 2: Important Statements: Safe Harbor Regarding Forward-Looking Statements

    2 Important StatementsSafe Harbor Regarding Forward-Looking Statements Thispresentationmaycontain“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995regardingSouthernMissouriBancorp,Inc.(the“Company”or“SMBC”).Forward-lookingstatementsoftenincludethewords“believe

  3. Slide 3: Transaction Highlights

    3 Transaction Highlights1)P/TBV and P/TBV ex-AOCI based on SMBC’s 20-day average closing price as of September 19, 2022 of $52.53Note: Bank level data shown for Citizens; financial data as of or for the twelve months ended June 30, 2022Source: S&P Capital IQ Pro, Company documents1)Entry into Kansas

  4. Slide 4: Overview of Citizens Bancshares Co.

    4 Overview of Citizens Bancshares Co. Operations and Financial Detail About Citizens Financial Snapshot¹14BankBranchesTangibleBookValue:$91.7millionDeposits:$879millionTotalLoans:$471millionTotalAssets:$1.0 billionReportedROATCE: 5.55%ReportedROAA: 0.51%TCERatio: 9.16% Founded in 1889, Citizens is

  5. Slide 5: Adding In-State Scale in Key Missouri Markets

    5 Adding In-State Scale in Key Missouri Markets SMBCCitizens Kansas City MSA St. Joseph MSA SMBC Citizens Kansas City MSA St. Joseph MSASource: S&P Capital IQ Pro

  6. Slide 6: SMBC is in Most of Missouri's Key Markets

    6 SMBC is in Most of Missouri’s Key Markets Kansas City MSA Highlights CityforRemoteWorkers (FinanceBuzz–2021) #1 EconomicGrowth Potential (BusinessFacilities–2019) Top 10 25BestCities forJobs (Glassdoor–2020) Top 15 Top20U.S.CitiesforStartups (CommercialCafé–2019) Top 20 Top100BestPlacestoLive (Liv

  7. Slide 7: Deposit Market Share: Missouri

    7 Deposit Market Share: MissouriNote: Deposit data as of June 30, 2021 Banks Headquartered in Missouri Banks Operating in Missouri Total Number Deposits Market RankInstitutionBranches($000s)Share (%) 1Bank of America Corp.60$23,511,37610.212UMB Financial Corp.46$22,885,4759.943U.S. Bancorp156$22,558

  8. Slide 8: Pro Forma Loan Composition

    8 Note: Bank level financial data shown Source: S&P Capital IQ ProPro Forma Loan Composition (as of June 30, 2022) 1 - 4 Family 23.8% Multifamily 10.0% CRE 33.1% C&D 7.9% C&I 12.4% Consumer 1.5% Other 11.3% 1 - 4 Family 24.3% Multifamily 11.3% CRE 32.4% C&D 6.9% C&I 11.4% Consumer 1.6% Other 12.1% 1

  9. Slide 9: Pro Forma Deposit Composition

    9 1)Represent time deposits greater than $100,000Note: Bank level financial data shownSource: S&P Capital IQ ProPro Forma Deposit Composition (as of June 30, 2022) Transaction 30.9% Savings & MMDA 48.5% Retail Time 8.4% Jumbo Time ¹ 12.2% Transaction 20.7% Savings & MMDA 56.6% Retail Time 8.7% Jumbo

  10. Slide 10: Citizens' Sticky, Seasoned Core Deposit Base

    10 Citizens’ Sticky, Seasoned Core Deposit BaseNote: Bank level financial data shown for CitizensSource: S&P Capital IQ ProOpportunity to leverage a core deposit funding base with a loan / deposit ratio of 54% Significant Growth of Core Deposits 18% 19% 24% 26% 26% 53% 50% 49% 57% 59% 16% 17% 13% 9%

  11. Slide 11: Key Trends

    11 Key TrendsNote: Bank level financial data shownSource: S&P Capital IQ Pro; Company documents Loans / Deposits (%) Cost of Deposits (%) 0.68 0.67 0.84 1.22 1.20 0.66 0.46 0.31 0.35 0.50 0.78 0.77 0.33 0.15 6/30/2016 LTM 6/30/2017 LTM 6/30/2018 LTM 6/30/2019 LTM 6/30/2020 LTM 6/30/2021 LTM 6/30/202

  12. Slide 12: Pro Forma Net Interest Income Volatility

    12 Pro Forma Net Interest Income Volatility Year 2 NII Volatility Year 1 NII Volatility (1.2%) (3.0%) (7.6%) (11.1%) (11.7%) 3.4% 7.9% 12.3% (3.3%) (1.7%) (4.4%) (6.3%) (15.0%) (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% -100 bps +100 bps +200 bps +300 bps SMBC Citizens Pro Forma (4.5%) (0.4%) (4.4%) (5.8%

  13. Slide 13: Strong Fee Income Opportunities: Robust Wealth Management Division

    13 Strong Fee Income Opportunities Robust Wealth Management Division Wealth Management Overview Strong Growth in AUM ($000s)Full-suite of wealth management products led by an experienced team with growing assets under management Investment Management Thoughtful and customized guidance is provided t

  14. Slide 14: Consideration & Deal Value; Cost Savings & Earnings Adjustments

    14 1)Based on SMBC’s 20-day average closing price as of September 19, 2022 of $52.532)For the twelve months ending June 30, 2024Consideration & Deal Value Cost Savings & Earnings Adjustments Cost Savings: 35% cost savings on Citizen’s non-interest expensePhase-In Period: 85% in FY2023 and FY2024 a

  15. Slide 15: Attractive Financial Impact

    15 Attractive Financial Impact1)Based on SMBC’s 20-day average closing price as of September 19, 2022 of $52.53Financially-compelling transaction for Citizens that also delivers meaningful earnings accretion to SMBCP / TBV 150%¹ 138%¹ Core Deposit Premium 5.9%¹ 4.9%¹ FY 2024 EPS Accretion ~17% ~12%

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