SOUTHERN MISSOURI BANCORP AND FORTUNE FINANCIAL ANNOUNCE AGREEMENT TO MERGE - Seite 2

Daniel Jones, Founder, Chairman & CEO of Fortune, is expected to join the boards of directors of Southern Missouri and Southern Bank. “It is with a feeling of overwhelming gratitude to our amazing customer base and wonderful staff that I announce we have decided to partner with Southern Bank to continue the FortuneBank legacy,” Mr. Jones noted. “From the inception of Fortune, it has been my desire and that of Chris Ford, as the founding family members, to offer the highest level of customer service from a true community bank platform. Many things have changed over the sixteen years since we chartered the bank, but our desire to operate with the highest level of integrity within our amazing community never wavered. Chris and I will remain with the combined organization, ensuring the same founding principles carry on well after the merger. We are confident that Southern brings the same spirit of excellent, community bank-focused customer service, and these services will be provided by the same FortuneBank team members. The merger will add enhancements in technology and scale such that we are able to do more for our community and loyal customers. We are blessed and have been given much for which to be thankful. I am most certainly thankful for these past sixteen years and look forward to many ahead with Southern Bank as our partner!”

“We are convinced this merger is an important and logical strategic step in Southern Missouri’s growth," added Steffens. “Entering the St. Louis MSA will help us achieve our long-term growth goals, which we know are necessary for our organization to remain competitive and continue to invest in the technological advances required in our industry. Moreover, we believe this growth can be achieved along with strong core profitability as we combine our institutions and capitalize on the core competencies of each.”

The deal value equates to 155% of Fortune’s capital at announcement, represents a 5.8% premium to core deposits, and is a multiple of 6.4 times Fortune’s projected forward earnings including fully phased-in cost savings, which are estimated at 30%. Excluding certain one-time merger charges, including Southern Missouri’s additional provision for credit losses as required under ASU 2016-13 (“CECL”), the transaction is anticipated to be accretive to earnings per share by approximately 8.8% in our fiscal year ended June 30, 2022, and by 9.1% in our fiscal year ended June 30, 2023. Tangible book value per common share is expected to be diluted by approximately 3.8% at closing, with a projected earnback period of approximately 11 quarters, based on the crossover method.