POPLAR BLUFF, Mo.--(BUSINESS WIRE)--Oct. 17, 2003--Southern
Missouri Bancorp, Inc. ("Company") (Nasdaq:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co., today announced
net income for the first quarter of fiscal year 2004 was $692,000, or
$.30 per diluted share, an increase of 11% from the $.27 per diluted
share earned during the same period of the prior year.
These earnings provided a return on average assets of .99% and a
return on average equity of 10.93% as compared to respective returns
of 1.00% and 10.75% during the same period of the prior year. The
improvement in earnings per share was primarily due to increased
non-interest income, the reduction in the provision for loan losses
and a decline in average shares outstanding. On September 26, 2003,
the Company effected a two-for-one split of the Company's Common Stock
in the form of a stock dividend of one additional share of "SMBC"
Common Stock for each share held. Share and per share data for all
periods presented have been adjusted to give effect to the stock
split.
"We are pleased with the continued improvement in our Company's
earnings per share, especially when evaluated against challenging
market conditions. I am particularly encouraged that in a low interest
rate environment, we were able to absorb a reduction in net interest
income and still grow earnings per share. This improvement resulted
from senior management's commitment to enhancing shareholder value
through asset growth, increased non-interest income, effectively
controlling expenses and maintaining the overall quality of the loan
portfolio," stated Greg Steffens, President and CEO of Southern
Missouri Bank & Trust Co.
The Company's net interest income for the first quarter of fiscal
2004 was $2.2 million, a decline of $199,000 from the $2.4 million
reported for the three-month period ended September 30, 2002. The
decline was due to interest rate spread compression, primarily from
lower investment portfolio yields resulting from the drop in average
investment yields from 4.93% for the three-month period ended
September 30, 2002, to 1.69% for the current quarter. The drop in
investment yields was primarily due to the general decline in interest
rates, which accelerated security prepayment rates causing increased
premium amortization and the relatively short average life of the
investment portfolio. During the three months ended September 30,
2003, the average net interest rate spread was 3.06% as compared to
3.46% over the same period of the prior year. The impact of the
decline in spread was partially offset by a $12.5 million increase in
average interest-bearing assets.
The Company's non-interest income for the first quarter of fiscal
2004 was $439,000, which represented a 78.5% increase from the
$246,000 earned during the same period of the prior year. The 78.5%
increase was primarily due to the implementation of the overdraft
privilege program in February 2003, which resulted in increased
banking service charges, structural changes in the assessment of fees
charged to customers, increased cash surrender value on bank-owned
life insurance and an expanded customer base.
The Company's assets increased $10.5 million to $289.9 million at
September 30, 2003, as compared to $279.5 million at June 30, 2003.
This growth was attributed primarily to an $11.2 million increase in
the loan portfolio to $234.1 million, partially offset by a $1.1
million decline in overnight cash balances. Changes in the composition
of the loan portfolio included growth in commercial, residential real
estate loans and consumer loans of $7.6 million, $2.9 million and
$613,000, respectively.
The Company's stockholders' equity increased $528,000 to $25.6
million at September 30, 2003, from $25.1 million as of June 30, 2003.
The increase was primarily due to net income for the three-month
period, partially offset by cash dividends.
The Company is also pleased to announce that the Board of
Directors, on October 17, 2003, declared the 38th consecutive
quarterly dividend since the inception of the Company. The $.09
dividend will be paid on November 28, 2003, to shareholders of record
at the close of business on November 14, 2003. On September 30, 2003,
the Company had 2,309,250 common shares outstanding after giving
effect to the common stock dividend declared on September 26, 2003.
The Company previously announced its intention to repurchase up to
58,720 shares of its common shares. To date, the Company has
repurchased 23,500 shares under this repurchase plan. 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.
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: September 30, 2003June 30, 2003
-------------------------- ------------------ -------------
Total assets $289,946,000$279,455,000
Available-for-sale securities 30,878,000 31,003,000
Loans 234,074,000 222,840,000
Allowance for losses on loans 1,834,000 1,836,000
Non-performing assets 317,000 307,000
Deposits 199,181,000 194,532,000
FHLB advances 59,000,000 53,500,000
Securities sold under repurchase
agreements 4,733,000 5,234,000
Stockholders' equity 25,636,000 25,108,000
Equity to assets ratio 8.84% 8.98%
Allowance as a percentage of loans 0.78% 0.82%
Non-performing loans as a percentage of
loans 0.11% 0.04%
Per common share:
Book value $11.16$10.94
Tangible book value 9.83 9.58
Three Months Ended
September 30,
Selected Operating Data: 2003 2002
----------------------- ---- ----
Net interest income $2,187,000$2,386,000
Provision for losses on loans 30,000 120,000
Non-interest income 439,000 246,000
Non-interest expense 1,514,000 1,468,000
Income taxes 390,000 383,000
--------- ---------
Net earnings 692,000 661,000
Earnings per common share:
Basic earnings per common share $.30 $.28
Diluted earnings per common share $.30 $.27
Cash dividends $.09 $.07
Average basic shares outstanding 2,275,464 2,360,752
Average diluted shares outstanding 2,351,646 2,414,704
Profitability Ratios:
--------------------
Return on average assets .99% 1.00%
Return on average common equity 10.93% 10.75%
Net interest margin 3.30% 3.78%
Net interest spread 3.06% 3.46%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp, Inc.