Highlights:
· Preliminary
fiscal year 2014 first quarter earnings per common share (diluted)
reported at $.74, up from $.71 in the year ago period, as net
income available to common shareholders increased to $2.5 million,
as compared to $2.4 million in the year ago period. Earnings per
common share (diluted) were up $.01, as compared to the $.73 earned
in the fourth quarter of fiscal 2013, the linked quarter.
· For the first
quarter of fiscal 2014, the Company generated an annualized return
on average assets of 1.27% and an annualized return on average
common equity of 12.2%, as compared to 1.41% and 12.6%,
respectively, for the same period of the prior fiscal year. In the
fourth quarter of fiscal 2013, the linked quarter, the annualized
return on average assets was 1.28%, and the annualized return on
average common equity was 12.2%.
· The Company
posted loan growth of $31.1 million, or 4.8%, during the first
quarter of fiscal 2014; deposits increased $3.3 million, or 0.5%.
Available-for-sale investments were up 4.8%, and cash and time
deposit balances declined 16.7%.
· Net interest
margin for the first quarter of fiscal 2014 was 3.90%, down from
the 4.30% reported for the year ago period, but up from the net
interest margin of 3.86% for the fourth quarter of fiscal 2013, the
linked quarter.
· Noninterest
income was up 20.8% for the first quarter of fiscal 2014, compared
to the year ago period, and up 11.6% from the fourth quarter of
fiscal 2013, the linked quarter.
· Noninterest
expense was up 10.4% for the first quarter of fiscal 2014, compared
to the year ago period, and up 1.4% from the fourth quarter of
fiscal 2013, the linked quarter.
· Non-performing
assets decreased to $3.6 million at September 30, 2013, as compared
to $4.6 million at June 30, 2013. At September 30, 2013,
non-performing assets were 0.43% of total assets, as compared to
0.58% at June 30, 2013.
Southern Missouri Bancorp, Inc. ("Company") (NASDAQ: SMBC), the
parent corporation of Southern Bank ("Bank"), today announced
preliminary net income available to common shareholders for the
first quarter of fiscal 2014 of $2.5 million, an increase of
$118,000, or 4.9%, as compared to $2.4 million in net income
available to common shareholders earned during the same period of
the prior fiscal year. The increase was attributable to an increase
in noninterest income and reductions in provision for income tax
and provision for loan losses, partially offset by an increase in
noninterest expense and a decrease in net interest income.
Preliminary net income available to common shareholders was $.74
per fully diluted common share for the first quarter of fiscal
2014, an increase of 4.2% as compared to the $.71 per fully diluted
common share earned during the same period of the prior fiscal
year. Before the dividend on preferred shares of $50,000,
preliminary net income for the first quarter of fiscal 2014 was
$2.6 million, a decrease of $27,000, or 1.0%, as compared to the
same period of the prior fiscal year.
Dividend Declared:
The Company is pleased to announce that the Board of Directors,
on October 15, 2013, declared its 78th consecutive quarterly
dividend on common stock since the inception of the Company. The
cash dividend of $.16 per common share will be paid on November 29,
2013, to common stockholders of record at the close of business on
November 15, 2013. The Board of Directors and
management believe the payment of a quarterly cash dividend
enhances shareholder value and demonstrates our commitment to and
confidence in our future prospects.
Recent Developments:
The Company previously announced on October 4 the completion of
its acquisition of Ozarks Legacy Community Financial, Inc. ("Ozarks
Legacy"), and its subsidiary, Bank of Thayer, in an all-cash
transaction. The acquired financial institution was merged with and
into the Company's subsidiary, Southern Bank. The first quarter
results do not reflect this acquisition.
Conference Call:
The Company will host a conference call to review the
information provided in this press release on Wednesday, October
23, 2013, at 3:30 p.m., CDT (4:30 p.m., EDT). The call will be
available live to interested parties by calling 1-888-317-6016 in
the United States (Canada: 1-855-669-9657, international:
1-412-317-6016). Telephone playback will be available one hour
following the conclusion of the call, until 8:00 a.m., CST, on
November 7, 2013. The playback may be accessed by dialing
1-877-344-7529 (Canada: 1-855-669-9658, international:
1-412-317-0088), and using the conference passcode 10036064.
Balance Sheet Summary:
The Company experienced balance sheet growth in the first
quarter of fiscal 2014, with total assets increasing $35.2 million,
or 4.4%, to $831.6 million at September 30, 2013, as compared to
$796.4 million at June 30, 2013. Balance sheet growth was primarily
due to growth in loan and available-for-sale securities balances.
Balance sheet growth was funded primarily with Federal Home Loan
Bank (FHLB) advances, increases in deposit balances, and retention
of net income.
Available-for-sale investments increased $3.9 million, or 4.8%,
to $83.9 million at September 30, 2013, as compared to $80.0
million at June 30, 2013. The increase was primarily attributable
to investments in mortgage-backed securities and agency
bonds. Cash equivalents and time deposits were down $2.3
million, or 16.7%, as compared to June 30, 2013.
Loans, net of the allowance for loan losses, increased $31.1
million, or 4.8%, to $678.2 million at September 30, 2013, as
compared to $647.2 million at June 30, 2013. Increases in
commercial real estate, residential, and commercial lending were
partially offset by decreases in construction loan balances.
Residential real estate loan growth was primarily attributable to
loans secured by multi-family housing.
Non-performing loans were $1.2 million, or 0.17% of gross loans,
at September 30, 2013, as compared to $1.4 million, or 0.22% of
gross loans, at June 30, 2013; non-performing assets were $3.6
million, or 0.43% of total assets, at September 30, 2013, as
compared to $4.6 million, or 0.58% of total assets, at June 30,
2013. Our allowance for loan losses at September 30, 2013, totaled
$8.8 million, representing 1.28% of gross loans and 763% of
non-performing loans, as compared to $8.4 million, or 1.28% of
gross loans, and 584% of non-performing loans, at June 30, 2013.
The decrease in non-performing assets was attributable primarily to
the sale of foreclosed real estate. For one relationship
which accounted for $2.1 million in foreclosed real estate balances
at June 30, 2013, the sale of certain properties reduced the
carrying amount to $1.7 million at September 30, 2013, with that
remaining balance comprised entirely of commercial real estate. For
all impaired loans, the Company has measured impairment under ASC
310-10-35, and management believes the allowance for loan losses at
September 30, 2013, is adequate, based on that measurement.
Total liabilities increased $33.9 million to $728.4 million at
September 30, 2013, an increase of 4.9% as compared to $694.6
million at June 30, 2013. This growth was primarily the result of
an increase in FHLB advances.
Deposits increased $3.3 million, or 0.5%, to $635.7 million at
September 30, 2013, as compared to $632.4 million at June 30, 2013.
Increased balances were noted in certificates of deposit and
interest-bearing checking accounts, and were partially offset by
decreases in noninterest-bearing checking, savings, and money
market deposit accounts. The average loan-to-deposit ratio for the
first quarter of fiscal 2014 was 104.6%, as compared to 105.3% for
the same period of the prior fiscal year.
FHLB advances were $61.9 million at September 30, 2013, an
increase of $37.4 million, or 152.5%, as compared to $24.5 million
at June 30, 2013. The increase was attributable to the use of
overnight borrowings to fund asset growth. Securities sold under
agreements to repurchase totaled $21.4 million at September 30,
2013, as compared to $27.8 million at June 30, 2013, a decrease of
23.0%. At both dates, the full balance of repurchase agreements was
due to local small business and government counterparties. The
Company has encouraged these counterparties to migrate to a swept
deposit product that places their funds in other FDIC-insured
depositories, while providing funding to our institution under a
reciprocal arrangement, in order to improve the Company's
liquidity.
The Company's stockholders' equity increased $1.3 million, or
1.3%, to $103.2 million at September 30, 2013, from $101.8 million
at June 30, 2013. The increase was due primarily to retention of
net income, partially offset by cash dividends paid on common and
preferred stock, and by a decrease in accumulated other
comprehensive income, as the market value of the available-for-sale
investment portfolio declined, net of tax, the result of a general
increase in market interest rates.
Income Statement Summary:
The Company's net interest income for the three-month period
ended September 30, 2013, was $7.4 million, a decrease of $47,000,
or 0.6%, as compared to the same period of the prior fiscal year.
The decrease was attributable to a 40-basis point decrease in net
interest margin, from 4.30% to 3.90%, partially offset by a 9.6%
increase in the average balance of interest-earning assets.
In December 2010, the Company acquired from the FDIC, as
receiver, most of the assets and assumed substantially all of the
liabilities of the former First Southern Bank (the Acquisition).
Accretion of fair value discount on loans and amortization of fair
value premiums on time deposits related to the Acquisition declined
from $529,000 in the first quarter of fiscal 2013 to $204,000 in
the first quarter of fiscal 2014. This component of net interest
income contributed 11 basis points to net interest margin in the
first quarter of fiscal 2014, as compared to 30 basis points in the
first quarter of fiscal 2013. The Company expects the impact of the
fair value discount accretion to continue to decline, over time, as
the assets acquired at a discount continue to mature or prepay.
The provision for loan losses for the three-month period ended
September 30, 2013, was $500,000, as compared to $611,000 in the
same period of the prior fiscal year. As a percentage of average
loans outstanding, provision for loan losses in the current
three-month period represented an annualized charge of 0.30%, as
compared to 0.41% for the same period of the prior fiscal year. The
decrease in the provision was attributed primarily to the low level
of classified and delinquent loans, partially offset by an increase
in loan balances. Net charge offs for the first quarter of fiscal
2014 were 0.05% of average loans, annualized, as compared to 0.13%
for both fiscal year 2012 and fiscal year 2013.
The Company's noninterest income for the three-month period
ended September 30, 2013, was $1.3 million, an increase of
$220,000, or 20.8%, as compared to the same period of the prior
fiscal year. The increase was attributed primarily to increased
deposit account charges and fees (resulting from transaction
account growth and increased NSF activity), gains on sales of
residential loans into the secondary market, and increased bank
card interchange income.
Noninterest expense for the three-month period ended September
30, 2013, was $4.6 million, an increase of $429,000, or 10.4%, as
compared to the same period of the prior fiscal year. The increase
was attributable primarily to increases in employee compensation
and benefits, legal and professional fees, occupancy, and
advertising. Legal fees in the current period included
$125,000 related to the October 4 acquisition of Ozarks Legacy. The
efficiency ratio for the three-month period ended September 30,
2013, was 52.8%, as compared to 48.8% for the same period of the
prior fiscal year. The deterioration resulted from an increase of
10.4% in noninterest expense, partially offset by a combined 2.0%
increase in net interest income and noninterest income. Exclusive
of the reduction in the accretion of fair value discount on loans
and amortization of fair value premiums on time deposits related to
the Acquisition, discussed above, the Company would have seen a
combined increase in net interest income and noninterest income of
5.9% in the three-month period ended September 30, 2013, as
compared to the same period of the prior fiscal year.
The income tax provision for the three-month period ended
September 30, 2013, was $1.0 million, a decrease of $117,000, or
10.3%, as compared to the same period of the prior fiscal year. The
decrease was attributed to lower pre-tax income, as well as a
decline in the effective tax rate, to 28.5% in the current period,
as compared to 30.6% in the same period of the prior fiscal year.
The decline in the effective tax rate was attributed to continued
additional investments in tax-advantaged assets.
Forward-Looking Information:
Except for the historical information contained herein, the
matters discussed in this press release may be deemed to be
forward-looking statements that are subject to known and unknown
risks, uncertainties, and other factors that could cause the actual
results to differ materially from the forward-looking statements,
including: the strength of the United States economy in general and
the strength of the local economies in which we conduct operations;
fluctuations in interest rates and in real estate values; monetary
and fiscal policies of the Board of Governors of the Federal
Reserve System and the U.S. Government and other governmental
initiatives affecting the financial services industry; the risks of
lending and investing activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for loan losses; our
ability to access cost-effective funding; the timely development of
and acceptance of our new products and services and the perceived
overall value of these products and services by users, including
the features, pricing and quality compared to competitors' products
and services; expected cost savings, synergies and other benefits
from the Company's merger and acquisition activities might not be
realized within the anticipated time frames or at all, and costs or
difficulties relating to integration matters, including but not
limited to customer and employee retention, might be greater than
expected; fluctuations in real estate values and both residential
and commercial real estate market conditions; demand for loans and
deposits in our market area; legislative or regulatory changes that
adversely affect our business; results of examinations of us by our
regulators, including the possibility that our regulators may,
among other things, require us to increase our reserve for loan
losses or to write-down assets; the impact of technological
changes; and our success at managing the risks involved in the
foregoing. Any forward-looking statements are based upon
management's beliefs and assumptions at the time they are made. We
undertake no obligation to publicly update or revise any
forward-looking statements or to update the reasons why actual
results could differ from those contained in such statements,
whether as a result of new information, future events or otherwise.
In light of these risks, uncertainties and assumptions, the
forward-looking statements discussed might not occur, and you
should not put undue reliance on any forward-looking
statements.
Southern Missouri
Bancorp, Inc. |
UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL INFORMATION |
|
|
|
|
|
|
|
Summary Balance Sheet Data as
of: |
|
|
|
|
September 30,
2013 |
June 30, 2013 |
|
|
|
|
|
|
|
Cash equivalents and time deposits |
|
|
|
|
$
11,469,000 |
$
13,769,000 |
Available for sale securities |
|
|
|
|
83,850,000 |
80,004,000 |
Membership stock |
|
|
|
|
4,396,000 |
3,011,000 |
Loans receivable, gross |
|
|
|
|
687,036,000 |
655,552,000 |
Allowance for loan losses |
|
|
|
|
8,795,000 |
8,386,000 |
Loans receivable, net |
|
|
|
|
678,241,000 |
647,166,000 |
Bank-owned life insurance |
|
|
|
|
16,596,000 |
16,467,000 |
Intangible assets |
|
|
|
|
936,000 |
1,040,000 |
Premises and equipment |
|
|
|
|
18,629,000 |
17,516,000 |
Other assets |
|
|
|
|
17,491,000 |
17,418,000 |
Total assets |
|
|
|
|
$
831,608,000 |
$
796,391,000 |
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
$
592,388,000 |
$
586,937,000 |
Noninterest-bearing deposits |
|
|
|
|
43,291,000 |
45,442,000 |
Securities sold under agreements to
repurchase |
|
|
|
|
21,390,000 |
27,788,000 |
FHLB advances |
|
|
|
|
61,870,000 |
24,500,000 |
Other liabilities |
|
|
|
|
2,282,000 |
2,678,000 |
Subordinated debt |
|
|
|
|
7,217,000 |
7,217,000 |
Total liabilities |
|
|
|
|
728,438,000 |
694,562,000 |
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
20,000,000 |
20,000,000 |
Common stockholders' equity |
|
|
|
|
83,170,000 |
81,829,000 |
Total stockholders' equity |
|
|
|
|
103,170,000 |
101,829,000 |
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
|
|
|
$
831,608,000 |
$
796,391,000 |
|
|
|
|
|
|
|
Equity to assets ratio |
|
|
|
|
12.41% |
12.79% |
Common shares outstanding |
|
|
|
|
3,297,000 |
3,294,000 |
Less: Restricted common shares
not vested |
|
|
|
|
32,000 |
32,000 |
Common shares for book value
determination |
|
|
|
|
3,265,000 |
3,262,000 |
Book value per common share |
|
|
|
|
$
25.47 |
$
25.09 |
Closing market price |
|
|
|
|
26.60 |
25.67 |
|
|
|
|
|
|
|
Nonperforming asset data as
of: |
|
|
|
|
September 30,
2013 |
June 30, 2013 |
|
|
|
|
|
|
|
Nonaccrual loans |
|
|
|
|
$
1,153,000 |
$
1,437,000 |
Accruing loans 90 days or more past due |
|
|
|
|
- |
- |
Nonperforming troubled debt restructurings
(1) |
|
|
|
|
- |
- |
Total nonperforming loans |
|
|
|
|
1,153,000 |
1,437,000 |
Other real estate owned (OREO) |
|
|
|
|
2,292,000 |
3,030,000 |
Personal property repossessed |
|
|
|
|
44,000 |
46,000 |
Nonperforming investment securities |
|
|
|
|
125,000 |
125,000 |
Total nonperforming assets |
|
|
|
|
$
3,614,000 |
$
4,638,000 |
|
|
|
|
|
|
|
Total nonperforming assets to total
assets |
|
|
|
|
0.43% |
0.58% |
Total nonperforming loans to gross loans |
|
|
|
|
0.17% |
0.22% |
Allowance for loan losses to nonperforming
loans |
|
|
|
|
762.79% |
583.58% |
Allowance for loan losses to gross loans |
|
|
|
|
1.28% |
1.28% |
|
|
|
|
|
|
|
Performing troubled debt restructurings |
|
|
|
|
$
4,735,000 |
$
4,883,000 |
|
(1) reported here only if not otherwise listed as nonperforming
(i.e., nonaccrual or 90+ days past due) |
|
|
|
|
For the
three-month period ended |
Average Balance Sheet
Data: |
|
|
|
|
September 30,
2013 |
September 30,
2012 |
|
|
|
|
|
|
|
Interest-bearing cash equivalents |
|
|
|
|
$
6,010,000 |
$
11,908,000 |
Available for sale securities and membership
stock |
|
|
|
|
86,721,000 |
75,048,000 |
Loans receivable, gross |
|
|
|
|
663,495,000 |
602,995,000 |
Total interest-earning
assets |
|
|
|
|
756,226,000 |
689,951,000 |
Other assets |
|
|
|
|
47,916,000 |
44,957,000 |
Total assets |
|
|
|
|
$
804,142,000 |
$
734,908,000 |
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
$
589,331,000 |
$
520,761,000 |
Securities sold under agreements to
repurchase |
|
|
|
|
22,868,000 |
24,567,000 |
FHLB advances |
|
|
|
|
36,745,000 |
34,129,000 |
Subordinated debt |
|
|
|
|
7,217,000 |
7,217,000 |
Total interest-bearing
liabilities |
|
|
|
|
656,161,000 |
586,674,000 |
Noninterest-bearing deposits |
|
|
|
|
45,238,000 |
52,114,000 |
Other noninterest-bearing liabilities |
|
|
|
|
549,000 |
314,000 |
Total liabilities |
|
|
|
|
701,948,000 |
639,102,000 |
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
20,000,000 |
20,000,000 |
Common stockholders' equity |
|
|
|
|
82,194,000 |
75,806,000 |
Total stockholders' equity |
|
|
|
|
102,194,000 |
95,806,000 |
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
|
|
|
$
804,142,000 |
$
734,908,000 |
|
|
|
|
For the
three-month period ended |
Summary Income Statement
Data: |
|
|
|
|
September 30,
2013 |
September 30,
2012 |
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
Cash equivalents |
|
|
|
|
$
3,000 |
$
19,000 |
Available for sale securities
and membership stock |
|
|
|
|
497,000 |
489,000 |
Loans receivable |
|
|
|
|
8,665,000 |
8,854,000 |
Total interest
income |
|
|
|
|
9,165,000 |
9,362,000 |
Interest expense: |
|
|
|
|
|
|
Deposits |
|
|
|
|
1,449,000 |
1,580,000 |
Securities sold under agreements
to repurchase |
|
|
|
|
31,000 |
48,000 |
FHLB advances |
|
|
|
|
256,000 |
255,000 |
Subordinated debt |
|
|
|
|
56,000 |
59,000 |
Total interest
expense |
|
|
|
|
1,792,000 |
1,942,000 |
Net interest income |
|
|
|
|
7,373,000 |
7,420,000 |
Provision for loan losses |
|
|
|
|
500,000 |
611,000 |
Noninterest income |
|
|
|
|
1,280,000 |
1,060,000 |
Noninterest expense |
|
|
|
|
4,567,000 |
4,138,000 |
Income taxes |
|
|
|
|
1,023,000 |
1,141,000 |
Net income |
|
|
|
|
2,563,000 |
2,590,000 |
Less: effective dividend on
preferred shares |
|
|
|
|
50,000 |
195,000 |
Net income
available to common shareholders |
|
|
|
|
$
2,513,000 |
$
2,395,000 |
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
|
|
$
0.76 |
$
0.73 |
Diluted earnings per common share |
|
|
|
|
0.74 |
0.71 |
Dividends per common share |
|
|
|
|
0.16 |
0.15 |
Average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
|
|
3,295,000 |
3,288,000 |
Diluted |
|
|
|
|
3,389,000 |
3,383,000 |
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
1.27% |
1.41% |
Return on average common stockholders'
equity |
|
|
|
|
12.2% |
12.6% |
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
3.90% |
4.30% |
Net interest spread |
|
|
|
|
3.76% |
4.11% |
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
52.8% |
48.8% |
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