POPLAR BLUFF, Mo.--(BUSINESS WIRE)--April 21, 2003--
Cash Operating Earnings Per Share Total $0.61 Per Share
Board Declares Quarterly Dividend of $0.14 Per Share
Southern Missouri Bancorp, Inc., ("Company") (NASDAQ: SMBC), the
parent corporation of Southern Missouri Bank and Trust Co. ("SMBT"),
today announced cash operating earnings, excluding the amortization of
intangible assets, of $729,000, or $.61 per diluted share for the
quarter ended March 31, 2003, up 11% from the $.55 per share earned
during the same period of the prior year. Through the first nine
months of fiscal 2003, our cash operating earnings totaled $2.1
million or $1.79 per diluted share, up 23% from the $1.46 earned
during the same period of the prior year. These earnings provided an
annualized return on assets of 1.02% and an annualized return on
average common equity of 11.43% for the nine-month period ended March
31, 2003.
Net income for the third quarter of fiscal 2003 was $689,000, or
$.58 per diluted share, an increase of 11% from the $.52 earned during
the same period of the prior year. Through the first nine months of
fiscal 2003, our net income totaled $2.0 million or $1.69 per diluted
share, up 23% from the $1.37 reported during the same period of the
prior year.
In summarizing the recently ended quarter's financial results,
Greg Steffens, President and CEO of SMBT stated: "We are very pleased
to report our 7th consecutive quarter of record earnings during a
period of economic uncertainty and a challenging interest rate
environment. We have been able to continue to expand earnings by
increasing non-interest related income while controlling operating
expenditures. We are especially proud of the continued improvement in
our credit quality and our 71% growth in non-interest income over the
last quarter when compared to the same period of the prior year. The
growth in non-interest income was primarily due to the implementation
of an overdraft privilege program, which allows our non-business
checking account customers the ability to overdraw their accounts up
to $400, the customer is charged a fee for each check that is
presented for payment while the account balance is negative. The fees
generated by this program have offset a contraction in our net
interest rate spread. Over the last quarter, our spread was negatively
impacted by increased loan and security prepayment rates, which
hampered loan growth and lowered investment portfolio returns.
Overall, we expect the economic and interest-rate environment to
remain challenging, but we believe our business plan will continue to
generate shareholder value."
Net interest income decreased $55,000 for the three-month period
ended March 31, 2003, as compared to the same period of the prior
year. The decrease was due to the compression of our interest rate
spread, primarily from lower investment portfolio yields as indicated
by the drop in average investment yields from 4.22% for the three
month period ended March 31, 2002, to 2.78% for the current quarter.
The drop in investment yields was primarily due to the Company's
strategy of keeping the average life of the investment portfolio less
than three years. The average interest rate spread for the three-month
period ended March 31, 2003, was 3.19% as compared to 3.47% over the
same period of the prior year and 3.36% last quarter. The Company's
net interest income increased $547,000 over the nine-month period
ended March 31, 2003, as compared to the same period of the prior
year. The 8.4% increase was primarily due to increased average
balances. Through the first nine months of fiscal 2003, the average
interest rate spread was 3.33% as compared to 3.28% over the same
period of the prior year.
The Company's non-interest income increased $162,000 and $300,000
over the respective three and nine-month periods ended March 31, 2003,
as compared to the same periods of the prior year. The respective
increases of 71.4% and 46.5% were primarily due to an expanded
customer base, structural changes in the assessment of overdraft fees
and the implementation in the third quarter of the overdraft privilege
program, which resulted in increased banking service charges.
During the first nine months of fiscal 2003, the Company's total
assets increased $14.9 million, or 5.6%, to $281.2 million at March
31, 2003. The majority of this growth was attributed to the $12.2
million increase in the loan portfolio to $223.4 million. Changes in
the composition of the loan portfolio included growth in commercial
loans of $12.6 million. Asset growth has been funded primarily with
deposits and securities sold under agreements to repurchase, which
have increased $11.0 million and $2.7 million, respectively since June
30, 2002.
The Company's stockholders' equity increased $555,000, from $24.5
million at June 30, 2002, to $25.1 million at March 31, 2003. The
increase was primarily due to increased earnings, partially offset by
stock repurchases and cash dividends.
The Company announced on March 19, 2003, its intention to
repurchase up to 58,720 shares of its own common stock, or
approximately 5% of its outstanding common shares. The repurchased
shares will be held as treasury shares to be used for general
corporate purposes. Although the Company has not yet repurchased any
shares of its common stock under the latest board authorization, the
Company will do so from time to time, subject to market conditions,
business opportunities and other economic considerations, and the
Company's determination of the most efficient use of capital in order
to maximize shareholder value.
On April 15, 2003, the Company declared its 37th consecutive
quarterly dividend. The $.14 cash dividend will be paid May 30, 2003,
to shareholders of record at the close of business on May 15, 2003.
On March 31, 2003, the Company had 1,154,744 common shares
outstanding. The common stock traded between $20.95 and $25.00 per
share during the quarter ended March 31, 2003, with the last trade of
the quarter occurring at $24.00. The Company, through its banking
subsidiary, provides a wide array of financial services to
Southeastern Missouri through its main office located in Poplar Bluff
and six other full-service facilities located in Poplar Bluff, Dexter,
Qulin, Kennett, Doniphan, and Van Buren, Missouri.
Except for the historical information contained herein, the
matters discussed in this press release may be deemed to be
forward-looking statements that involve risks and uncertainties,
including changes in economic conditions in the Company's market area,
changes in policies by regulatory agencies, fluctuations in interest
rates, demand for loans in the Company's market area and competition.
Actual strategies and results in future periods may differ materially
from those currently expected. These forward-looking statements
represent the Company's judgement as of the date of this release. The
Company disclaims however, any intent or obligation to update these
forward-looking statements.
SOUTHERN MISSOURI BANCORP, INC.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Selected Financial Data at: March 31, June 30,
--------------------------- 2003 2002
------------ ------------
Total assets $281,179,000$266,288,000
Available-for-sale securities 34,331,000 32,759,000
Loans 223,426,000 211,212,000
Allowance for losses on loans 1,780,000 1,569,000
Non-performing assets 394,000 720,000
Deposits 199,904,000 188,947,000
FHLB advances 48,000,000 47,000,000
Securities sold under repurchase agreements 7,040,000 4,311,000
Stockholders' equity 25,066,000 24,511,000
Equity to assets ratio 8.92% 9.20%
Allowance as a percentage of loans 0.80% 0.73%
Non-performing loans as a percentage of
loans 0.02% 0.16%
Per common share:
Book value $ 21.38$ 20.34
Market value 24.00 19.25
Tangible book value 18.67 17.54
Three Months Ended Nine Months Ended
March 31, March 31,
Selected Operating Data: 2003 2002 2003 2002
------------------------ ---- ---- ---- ----
Net interest income $2,281,000$2,336,000$7,050,000$6,503,000
Provision for losses on
loans 60,000 110,000 270,000 280,000
Non-interest income 389,000 227,000 944,000 644,000
Non-interest expense 1,528,000 1,504,000 4,518,000 4,351,000
Income taxes 393,000 326,000 1,177,000 861,000
---------- ---------- ---------- ----------
Net earnings 689,000 623,000 2,029,000 1,655,000
Cash operating earnings $ 729,000$ 664,000$2,149,000$1,776,000
Per common share:
Net earnings:
Basic $ .59 $ .53 $ 1.73$ 1.39
Diluted $ .58 $ .52 $ 1.69$ 1.37
Cash operating earnings
Basic $ .63 $ .56 $ 1.83$ 1.49
Diluted $ .61 $ .55 $ 1.79$ 1.46
Cash dividends $ .14 $ .125 $ .42 $ .38
Average basic shares
outstanding 1,164,063 1,178,854 1,171,687 1,194,627
Average diluted shares
outstanding 1,197,761 1,201,644 1,202,261 1,214,947
Profitability Ratios:
-------------------------
Return on average assets:
Net earnings .99% .96% .99% .88%
Cash operating
earnings 1.05% 1.02% 1.05% .95%
Return on average common
equity:
Net earnings 11.40% 10.56% 11.01% 9.42%
Cash operating
earnings 12.06% 11.25% 11.67% 10.10%
Net interest margin 3.46% 3.77% 3.63% 3.64%
Net interest spread 3.19% 3.47% 3.33% 3.28%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573/785-1421
SOURCE: Southern Missouri Bancorp, Inc.