Southern Missouri Bancorp (SMBC) reported Q1 2025 (fiscal year start) with solid loan growth and net interest income expansion, but profitability faced pressure from a higher provision for credit losses and elevated operating expenses. Net interest income rose about 4.5% QoQ as earning assets grew, lifting the net interest margin to 3.37%, up 12 bps from the prior quarter and aided by loan-yield expansion; however, the margin was still down modestly versus the year-ago period. Noninterest income rose meaningfully year over year, while noninterest expense increased modestly, with a onetime $0.84 million cost related to a performance-improvement initiative affecting reported profits. The company sustained strong liquidity and capital positioning, including a tangible book value of $38.26 per share (+15.5% YoY) and a robust loan growth trajectory (3% QoQ, 7.2% YoY). Asset quality remained generally sound, though nonperforming loans rose modestly to $8.2 million and delinquent loans increased, driven in part by a few larger credits secured by multifamily and commercial borrowers. Management signaled continued confidence in 2025, expecting mid-single-digit loan growth and ongoing net interest income expansion as rate moves and balance-sheet dynamics unfold. The ongoing performance-improvement project is framed as a potential source of long-term cost discipline and customer-service enhancements, with an initial objective of low single-digit percent impact to noninterest expense on a run-rate basis. Overall, SMBC presents a cautiously constructive outlook for 2025, underpinned by favorable rate dynamics, disciplined underwriting, and a disciplined approach to efficiency improvement, while monitoring credit quality and CRE concentration risks.