Matthew T. Funke
About Matthew T. Funke
Matthew T. Funke serves as President & Chief Administrative Officer of Southern Missouri Bancorp, Inc. (SMBC) and Southern Bank; he was previously the Company’s Principal Financial Officer until November 19, 2024, when Stefan Chkautovich was appointed PFO and Funke continued in his broader executive roles . Company performance during his recent tenure includes FY2025 diluted EPS of $5.18 and net income of $58.6 million, up from $4.42 and $50.2 million in FY2024, and $3.85 and $39.2 million in FY2023; cumulative TSR index values rose from 167.21 (FY2023) to 199.53 (FY2024) and 246.84 (FY2025) . In March 2025, he signed an executive leadership update 8‑K and press release as President, indicating active leadership in organizational changes aimed at improving customer engagement and profitability .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Southern Missouri Bancorp, Inc. | President & Chief Administrative Officer | Active in role; signed 8‑K/press release March 31, 2025 | Led communication on executive structure update to unify customer engagement leadership |
| Southern Missouri Bancorp, Inc. | Principal Financial Officer (relinquished) | Relinquished Nov 19, 2024 | Transitioned PFO role to CFO to focus on broader executive responsibilities |
External Roles
- No external directorships or outside roles disclosed for Mr. Funke in the latest proxy materials.
Fixed Compensation
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Base Salary ($) | 310,022 | 338,027 | 366,345 |
| Annual Bonus ($) | 61,550 (paid FY2024) | 52,950 (paid FY2025) | 62,050 (paid FY2026) |
| All Other Compensation ($) | 42,027 | 41,343 | 46,629 |
| Total Compensation ($) | 581,244 | 521,110 | 589,564 |
- Bonus policy: Discretionary, generally up to 25% of base salary; 50% of each fiscal year’s bonus is held for payout at the conclusion of the following fiscal year, serving retention and prudent risk controls .
Performance Compensation
Equity Grants and Vesting Mechanics (Options and Performance Shares)
| Grant Year | Instrument | Grant Detail | Vesting Schedule | Valuation Basis |
|---|---|---|---|---|
| 2025 | Performance-based shares | Threshold 500; Target 750; Max 1,000 shares | Up to 20% annually beginning Feb 9, 2026, contingent on Company’s annualized ROAA over 12 quarters exceeding a threshold | Grant-date fair value $60.42 per share |
| 2025 | Stock options | 2,000 options @ $60.42 | 20% annually starting Feb 18, 2026; 10-year expiration | |
| 2024 | Performance-based shares | Threshold 500; Target 750; Max 1,000 shares | Up to 20% annually beginning Feb 9, 2025, contingent on ROAA threshold | Grant-date fair value $40.82 per share |
| 2024 | Stock options | 3,000 options @ $40.82 | 20% annually starting Feb 9, 2025; 10-year expiration | |
| 2023 | Performance-based shares | Threshold 500; Target 750; Max 1,000 shares | Up to 20% annually beginning Feb 9, 2024, contingent on ROAA threshold | Grant-date fair value $46.94 per share |
| 2023 | Stock options | 3,000 options @ $46.94 | 20% annually starting Feb 9, 2024; 10-year expiration | |
| 2022 (additional) | Stock award | 1,500 shares granted July 19, 2022 (Funke) | Vests in equal annual installments over 3 years beginning July 19, 2023 | Grant-date fair value $46.59 per share |
Annual Vesting and Realized Values
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Restricted/Performance Stock Vested (Shares) | 540 | 1,140 | 1,220 |
| Value Realized on Vesting ($) | 25,942 | 49,359 | 67,251 |
| Options Exercised (Shares) | — | — | — |
Performance Metrics Used for Incentive Determination (Company-level)
- Diluted EPS, Tangible ROATCE, ROAA, Net Interest Margin, and Non-performing asset ratio are the “most important” measures linking compensation actually paid to performance, per proxy pay-vs-performance disclosure .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 72,879 shares; includes options exercisable within 60 days (11,100) and 401(k) holdings (16,329); indicates <1% of shares outstanding |
| Options/Equity Outstanding (as of 6/30/2025) | Multiple grants outstanding; latest unexercisable tranche includes 2,000 options from 2/18/2025 grant; older grants show mixed exercisable/unexercisable balances and strikes ($34.35, $37.31, $37.40, $34.91, $53.82, $46.94, $40.82, $60.42) |
| Hedging/Pledging | Hedging transactions are prohibited; pledging discouraged and only permitted by CEO exception; as of date, the CEO has not permitted any director or executive to engage in hedging |
| Stock Ownership Guidelines | Not disclosed in proxies reviewed |
Employment Terms
| Provision | Key Terms |
|---|---|
| Change-in-Control Agreement (SMBC Bank) | Lump-sum cash severance equal to 2× “base amount” (IRC §280G) if terminated within one year post-change-in-control by the Bank without cause or by the executive for “Good Reason”; continued participation in health and insurance benefits for two years post-termination or until full-time employment elsewhere; reduction to avoid excess parachute payments under §280G |
| Non‑Solicit | 2 years post-termination: no solicitation of team members or customers |
| Equity Acceleration | Unvested options would vest in the event of involuntary termination in connection with a change in control, or death/disability; valued at $54.78 per share at FY2025 close |
| Estimated CIC Payouts (as of 6/30/2025) | Cash severance: $737,639; unvested performance shares value: $171,461; unvested option value: $60,114 |
Company Performance Context (Pay-for-Performance)
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenues ($) | 26,204,000* | 24,844,000 | 27,984,000 |
| Net Income ($) | 39,237,000 | 50,182,000 | 58,578,000 |
| Diluted EPS (Continuing Ops) | 3.85 | 4.42 | 5.18 |
| Return on Equity (%) | 10.23% | 10.74% | 11.34% |
| TSR Index (Fixed $100 investment) | 167.21 | 199.53 | 246.84 |
Values retrieved from S&P Global. Cells marked with * lack document citations and are sourced from SPGI.
Compensation Structure Analysis
- Cash vs. equity mix: Consistent use of stock options and performance-based restricted stock alongside discretionary cash bonuses; annual grants in 2023–2025 show meaningful ongoing equity at-risk exposure .
- Shift toward performance shares with ROAA gate: Performance share vesting is explicitly contingent on multi-quarter ROAA thresholds, strengthening pay-performance alignment; vesting occurs in five annual tranches tied to sustained ROAA .
- Bonus governance: Discretionary bonuses capped at ~25% of base salary with 50% deferral, enhancing retention and discouraging excessive risk-taking .
- No hedging; pledging discouraged: Company’s insider policy prohibits hedging and discourages pledging, which supports alignment (exceptions only by CEO preclearance) .
Investment Implications
- Alignment: Funke’s compensation includes multi‑year ROAA‑contingent equity and staged option vesting, with bonus deferrals, indicating solid alignment with sustained profitability and risk discipline .
- Retention risk: CIC protections provide 2× base‑amount cash and two years of benefits, plus acceleration of unvested awards upon CIC or death/disability—important in a consolidation-prone banking environment .
- Insider selling pressure: Rising realized vesting values ($25.9k in FY2023 → $49.4k in FY2024 → $67.3k in FY2025) suggest ongoing supply from vesting but no disclosed option exercises, moderating immediate selling pressure signals .
- Performance trajectory: FY2025 EPS and ROE expansion and higher TSR index support the case for continued equity vesting under ROAA thresholds; sustained operating metrics are key to maintaining payout realization under performance share awards .
Appendix: Ownership and Outstanding Equity Detail (as of June 30, 2025)
- Beneficial ownership: 72,879 shares; includes 11,100 options exercisable within 60 days and 16,329 shares in 401(k); “*” denotes <1% outstanding .
- Outstanding options by tranche: Multiple grants spanning strikes of $34.35, $37.31, $37.40, $34.91, $53.82, $46.94, $40.82, and $60.42 with mixed exercisable/unexercisable balances; 2025 grant (2,000 options) is fully unexercisable until Feb 18, 2026 .
- Performance shares: Unvested value at FY2025 close: $171,461; vesting contingent on ROAA thresholds over rolling 12 quarters .
Note: Cells with '*' indicate values retrieved from S&P Global without document citations. Values retrieved from S&P Global.