POPLAR BLUFF, Mo.--(BUSINESS WIRE)--April 21, 2004--Southern
Missouri Bancorp, Inc., ("Company") (Nasdaq:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("SMBT"), today
announced that net income for the third quarter of fiscal year 2004
was $703,000, or $.30 per diluted share, an increase of 3% from the
$.29 per diluted share earned during the same period of the prior
year. The third quarter earnings provided a return on average assets
of .94% and a return on average equity of 10.63% as compared to
respective returns of .99% and 11.40% during the same period of the
prior year. Through the first nine months of fiscal 2004, net income
was $2.1 million, or $.91 per diluted share, an increase of 8% from
the $.84 per diluted share reported during the same period of the
prior year. For the nine-month period, earnings provided a return on
average assets of .98% and a return on average equity of 10.97% as
compared to respective returns of .99% and 11.01% during the same
period of the prior year. The improvement in earnings per share for
the three and nine month periods was primarily due to increased
non-interest income and asset growth, partially offset by spread
compression. 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
("stock split"). Share and per share data for all periods presented
have been adjusted to give effect to the stock split.
Commenting about the Company's performance, Greg Steffens,
President and CEO, stated, "The Company's third quarter performance
shows management's dedication to enhancing shareholder value during a
challenging interest rate environment. We are pleased to be able to
continue to generate asset and deposit growth in a very competitive
marketplace. The Company continues to earn dividends from our
investment in technology and people, which is demonstrated by our 31%
increase in demand deposit accounts over the last nine months. These
new customer relationships, as well as changes in fee assessments,
have helped us to diversify our revenues and reduce our reliance on
our net interest income for earnings per share growth. In addition, we
continue to explore options for future growth to achieve increased
earnings per share and market value."
The Company's net interest income increased $49,000 for the
three-month period ended March 31, 2004 as compared to the same period
of the prior year. The increase was primarily due to an increase in
average interest earning assets, partially offset by a decrease in net
interest rate spread. The average interest rate spread for the
three-month period ended March 31, 2004 was 3.07% as compared to 3.19%
over the same period of the prior year. The Company's net interest
income decreased $189,000 over the nine-month period ended March 31,
2004 as compared to the same period of the prior year. The decrease
was primarily due to interest rate spread compression as interest
earning assets repriced downward at a faster pace than interest
bearing liabilities. Through the first nine months of fiscal 2004, the
average interest rate spread was 3.10% as compared to 3.33% over the
same period of the prior year.
The Company's non-interest income increased $91,000 and $475,000
over the respective three and nine-month periods ended March 31, 2004
as compared to the same periods of the prior year. The respective
increases of 23.4% and 50.3% were primarily due to the implementation
of the overdraft privilege program in February 2003, which resulted in
increased banking service charges, as well as increased cash surrender
value on bank-owned life insurance, gains realized on the sale of an
investment and an expanded customer base.
During the first nine months of fiscal 2004, the Company's total
assets increased $21.8 million, or 7.8%, to $301.2 million at March
31, 2004. The growth was attributed primarily to respective increases
in the loan and investment portfolios of $18.0 million and $6.8
million, respectively. Changes in the composition of the loan
portfolio included growth in commercial and residential loans of $12.8
million and $4.7 million, respectively. Asset growth has been funded
primarily with deposits and the issuance of Trust Preferred
Securities, which have increased $12.1 million and $7.0 million,
respectively since June 30, 2003. As previously announced on March 19,
2004 the Company issued $7.0 million of Floating Rate Capital
Securities of Southern Missouri Statutory Trust I with a liquidation
value of $1,000 per share. The securities are due in 30 years,
redeemable after five years and bear interest at a floating rate based
on LIBOR. The Company intends to utilize the net proceeds from this
issuance for working capital and investment in its subsidiaries.
The Company's stockholders' equity increased $1.4 million, to
$26.5 million at March 31, 2004 from $25.1 million as of June 30,
2003. The increase was primarily due to earnings for the period and
stock options exercised, partially offset by stock repurchases and
cash dividends.
The Company previously announced on March 19, 2004, the completion
of its latest stock repurchase plan. The Company repurchased 23,500
shares under this repurchase plan at an average price of $25.06 per
share prior to the "stock split", and 35,220 shares at an average
price of $15.30 per share after the "stock split". The repurchased
shares will be held as treasury shares to be used for general
corporate purposes.
The Company is pleased to announce that the Board of Directors, on
April 19, 2004, declared its 40th consecutive quarterly dividend since
the inception of the Company. The $.09 cash dividend will be paid May
28, 2004 to shareholders of record at the close of business on May 14,
2004.
On March 31, 2004, the Company had 2,300,568 common shares
outstanding. The common stock traded between $15.76 and $13.61 per
share during the quarter ended March 31, 2004, with the last trade of
the quarter occurring at $15.33. 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 judgment 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, 2004June 30, 2003
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Total assets $301,212,000 $279,455,000
Available-for-sale securities 37,772,000 31,003,000
Loans, net 240,850,000 222,840,000
Allowance for losses on loans 1,919,000 1,836,000
Non-performing assets 260,000 307,000
Deposits 206,596,000 194,532,000
FHLB advances 52,400,000 53,500,000
Securities sold under repurchase
agreements 7,457,000 5,234,000
Stockholders' equity 26,527,000 25,108,000
Equity to assets ratio 8.81% 8.98%
Allowance as a percentage of loans 0.80% 0.81%
Non-performing assets as a percentage of
assets 0.09% 0.12%
Per common share:
Book value $11.53 $10.94
Market value 15.40 12.70
Tangible book value 10.26 9.58
Three Months Ended Nine Months Ended
March 31, March 31,
Selected Operating
Data: 2004 2003 2004 2003
--------------------- ----------- ----------- ----------- -----------
Net interest income $2,330,000 $2,281,000 $6,860,000 $7,050,000
Provision for losses
on loans 60,000 60,000 175,000 270,000
Non-interest income 480,000 389,000 1,419,000 944,000
Non-interest expense 1,670,000 1,528,000 4,794,000 4,518,000
Income taxes 377,000 393,000 1,180,000 1,177,000
----------- ----------- ----------- -----------
Net earnings 703,000 689,000 2,130,000 2,029,000
Per common share:
Net earnings:
Basic $.31 $.30 $.93 $.87
Diluted $.30 $.29 $.91 $.84
Cash dividends $.09 $.07 $.27 $.21
Average basic shares
outstanding 2,283,262 2,328,126 2,277,672 2,343,374
Average diluted
shares outstanding 2,345,212 2,395,522 2,349,302 2,404,522
Profitability Ratios:
---------------------
Return on average
assets: .94% .99% .98% .99%
Return on average
common equity: 10.63% 11.40% 10.97% 11.01%
Net interest margin 3.30% 3.46% 3.34% 3.63%
Net interest spread 3.07% 3.19% 3.10% 3.33%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp, Inc.