POPLAR BLUFF, Mo.--(BUSINESS WIRE)--July 21, 2003--Southern
Missouri Bancorp, Inc., ("Company") (NASDAQ: SMBC), the parent
corporation of Southern Missouri Bank and Trust Co., today announced
cash operating earnings, excluding the amortization of goodwill, of
$750,000, or $.63 per diluted share for the quarter ended June 30,
2003, up from the $.57 per diluted share earned during the same period
last year.
For fiscal 2003, cash operating earnings totaled $2.9 million or
$2.42 per diluted share, up 19% from the $2.04 earned during the same
period last year.
Net earnings for the fourth quarter of fiscal 2003 were $710,000,
or $.60 per diluted share, an increase of 11% from the $.54 per
diluted share earned during the same period of the prior year. These
earnings resulted in a return on average assets of 1.02% and a return
on average equity of 11.30% as compared to respective returns of .99%
and 10.82% during the same period of the prior year. Net earnings for
fiscal 2003 were $2.7 million, or $2.28 per diluted share, an increase
of 19% from the $1.94 per diluted share earned during the prior year.
These earnings provided a return on average assets and average common
equity of 1.00% and 11.08%, as compared to the respective returns of
.91% and 9.77% for fiscal 2002.
"We are pleased with the steady improvement in our earnings per
share and return on equity over each of the last eight successive
quarters," said Greg Steffens, President and CEO of Southern Missouri
Bank & Trust Co. "We have been able to continue to expand earnings by
increasing non-interest related income while controlling operating
expenditures. We are pleased with the 62% growth in non-interest
income this year due to the implementation of the overdraft privilege
program, which allows our non-business checking account customers the
ability to overdraw their account up to $400. The fees generated by
this program have more than 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. We are also
encouraged by the continued improvement in our overall credit quality,
as delinquency levels and non-performing asset levels continue to
decline during challenging national economic conditions. We are
pleased to share the improvement in our earnings and our solid
financial condition with our shareholders by increasing our common
stock dividend for the second consecutive year. Overall, we expect the
economic and interest-rate environment to remain challenging, but we
believe our business plan will continue to generate shareholder
value."
The Company's net interest income decreased $117,000 for the
three-month period ended June 30, 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 4.79% for
the three-month period ended June 30, 2002, to 2.36% for the current
quarter. The drop in investment yields was primarily due to the
Company's strategy of maintaining an investment portfolio with an
average life of less than three years, faster prepayment rates and the
general decline in interest rates. The average interest rate spread
for the three-month period ended June 30, 2003, was 3.14% as compared
to 3.44% over the same period of the prior year. Net interest income
increased $430,000 over the twelve-month period ended June 30, 2003,
as compared to the same period of the prior year. The 4.9% increase
was primarily due to increased average balances. For fiscal 2003, the
average interest rate spread was 3.28% as compared to 3.33% over the
same period of the prior year.
The Company's non-interest income increased $248,000 and $541,000
over the respective three and twelve-month period ended June 30, 2003,
as compared to the same period of the prior year. The respective
increases of 107.4% and 61.9% 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 fiscal 2003, the Company's total assets increased $13.2
million, or 5.0%, to $279.5 million at June 30, 2003. This growth was
attributed primarily to an $11.6 million increase in the loan
portfolio to $222.8 million. Changes in the composition of the loan
portfolio included growth in commercial and consumer loans of $13.9
million and $2.0 million, respectively, partially offset by the $3.3
million decrease in residential loans. Asset growth has been funded
primarily with deposit growth and FHLB advances, which have increased
$5.6 million and $6.5 million, respectively, since June 30, 2002.
The Company's stockholders' equity increased $597,000, to $25.1
million at June 30, 2003, from $24.5 million at June 30, 2002. The
increase was primarily due to net income, partially offset by stock
repurchases and cash dividends.
The Company is also pleased to announce that the Board of
Directors, on July 18, 2003, approved the first quarter dividend of
$.18 per common share, up from $.14 per share. This 29% increase is
payable on August 29, 2003, to shareholders of record at the close of
business on August 15, 2003. The dividend is the Company's 37th
consecutive quarterly dividend since the inception of the Company.
The Company has previously announced the intention to repurchase
up to 58,720 shares of its common stock, or approximately 5% of its
outstanding common shares. To date, the Company has repurchased 23,500
shares at an average cost of $25.06 per share. The Company will
continue to repurchase shares of its common stock under this plan 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 June 30, 2003, the Company had 1,147,177 common shares
outstanding. The common stock traded between $24.00 and $25.75 per
share during the quarter ended June 30, 2003, with the last trade of
the quarter occurring at $25.40. 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 seven 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: June 30, June 30,
2003 2002
------------------------------ ------------- -------------
Total assets $279,455,000$266,288,000
Available-for-sale securities 31,003,000 32,759,000
Loans 222,840,000 211,212,000
Allowance for losses on loans 1,836,000 1,569,000
Non-performing assets 307,000 720,000
Deposits 194,532,000 188,947,000
FHLB advances 53,500,000 47,000,000
Securities sold under repurchase agreements 5,234,000 4,311,000
Stockholders' equity 25,108,000 24,511,000
Equity to assets ratio 8.98% 9.81%
Allowance as a percentage of loans 0.82% 0.81%
Non-performing loans as a percentage of
loans 0.04% 0.27%
Per common share:
Book value $21.88$18.53
Market value 25.40 14.00
Tangible book value 19.16 16.08
Three Months Ended Twelve Months Ended
June 30, June 30,
Selected Operating Data: 2003 2002 2003 2002
------------------------- ---------- ---------- ---------- -----------
Net interest income $2,234,000$2,351,000$9,284,000$8,854,000
Provision for losses on
loans 60,000 70,000 330,000 350,000
Non-interest income 479,000 231,000 1,415,000 874,000
Non-interest expense 1,654,000 1,522,000 6,165,000 5,872,000
Income taxes 289,000 336,000 1,466,000 1,197,000
---------- ---------- ---------- -----------
Net earnings 710,000 654,000 2,738,000 2,309,000
Cash operating earnings $750,000$694,000$2,899,000$2,470,000
Per common share:
Net earnings:
Basic $.62 $.55 $2.35$1.94
Diluted $.60 $.54 $2.29$1.90
Cash operating earnings
Basic $.65 $.59 $2.48$2.07
Diluted $.63 $.57 $2.42$2.04
Cash dividends $.14 $.125 $.56 $.50
Average basic shares
outstanding 1,154,723 1,179,806 1,167,446 1,190,922
Average diluted shares
outstanding 1,189,937 1,208,433 1,199,180 1,213,319
Profitability Ratios:
--------------------------
Return on average assets:
Net earnings 1.02% .99% 1.00% .91%
Cash operating
earnings 1.07% 1.05% 1.06% .97%
Return on average common
equity:
Net earnings 11.30% 10.82% 11.08% 9.77%
Cash operating
earnings 11.94% 11.48% 11.74% 10.45%
Net interest margin 3.40% 3.74% 3.57% 3.67%
Net interest spread 3.14% 3.44% 3.28% 3.33%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp, Inc.