POPLAR BLUFF, Mo.--(BUSINESS WIRE)--July 21, 2004--Southern
Missouri Bancorp, Inc., ("Company") (NASDAQ:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced net income for the fourth quarter of fiscal 2004 was
$753,000, or $.32 per diluted share, an increase of 7% from the $.30
per diluted share earned during the same period of the prior year.
These earnings resulted in a return on average assets of .97% and a
return on average equity of 11.43% as compared to respective returns
of 1.02% and 11.30% during the same period of the prior year. For
fiscal 2004, our net income totaled $2.9 million or $1.23 per diluted
share from the $2.8 million or $1.14 earned in fiscal 2003, an 8%
increase in diluted earnings per share. These earnings provided a
return on average assets and average common equity of .98% and 11.09%,
as compared to the respective returns of 1.00% and 11.08% for fiscal
2003. 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.
On June 25, 2004, the Company converted from an OTS holding
company to a Federal Reserve holding company; and its subsidiary
converted to a Missouri chartered trust company with banking powers.
The charter change will allow for additional growth in the commercial
loan portfolio and will more closely align the Company's assets and
funding mix to that of a traditional commercial bank. The Company
realized a net tax benefit of $109,000 due to the change in charters.
"We are pleased to report increased earnings per share for the
fourth quarter and fiscal 2004. Our performance reflects the Company's
focus on the balance sheet, maintaining strong credit quality and
providing quality products and services to our customers. We continue
to control overhead costs and seek new sources of non-interest
income," said Greg Steffens, President and CEO. He added: "The Company
maintained profitability despite a most challenging year. In a period
of an uncertain economy and low interest rate environment, the Company
for fiscal 2004 increased interest earning assets by 12% and
non-interest income by 33%, which is certainly encouraging and is a
testament to the quality of our staff and their efforts on the
Company's behalf."
The Company's net interest income increased $60,000 for the three
month period ended June 30, 2004, as compared to the same period of
the prior year. The increase was primarily due to an 11% increase in
average interest earning assets, partially offset by a 24 basis point
decrease in the average interest rate spread. The average interest
rate spread for the three-month period ended June 30, 2004, was 2.90%
as compared to 3.14% over the same period of the prior year. Net
interest income decreased $129,000 over the twelve month period ended
June 30, 2004, as compared to the same period of the prior year. The
decrease was primarily due to a 22 basis point decrease in the average
interest rate spread, partially offset by a 7% increase in average
interest earning assets. The decrease in interest rate spread was a
result of interest earning assets repricing downward at a faster pace
than interest bearing liabilities. For fiscal 2004, the average
interest rate spread was 3.06% as compared to 3.28% over the same
period of the prior year.
The Company's non-interest income decreased $22,000 for the three
month period ended June 30, 2004, as compared to the same period of
the prior year. The decrease was primarily due to the $60,000 loss
realized on the sale of two available for sale securities.
Non-interest income increased $460,000 for the twelve month period
ended June 30, 2004, as compared to the same period of the prior year.
The increase of 33% was 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 and an expanded customer base.
During fiscal 2004, the Company's total assets increased $32.4
million, or 11.6%, to $311.9 million at June 30, 2004. This growth was
attributed primarily to growth in the loan and investment portfolios
of $25.5 million and $9.2 million, respectively. Changes in the
composition of the loan portfolio included growth in commercial,
residential loans and consumer loans of $18.7 million, $5.9 million
and $988,000, respectively. Asset growth has been funded primarily
with deposits, the issuance of Trust Preferred Securities and FHLB
advances, which have increased $17.4 million, $7.0 million and $5.8
million, respectively since June 30, 2003
The Company's stockholders' equity increased $844,000, to $25.9
million at June 30, 2004 from $25.1 million at June 30, 2003. The
increase was primarily due to net income partially offset by stock
repurchases, cash dividends and the decrease in the market value of
the investment portfolio.
The Company is pleased to announce that the Board of Directors, on
July 20, 2004, declared its 41st consecutive quarterly dividend since
the inception of the Company. The $.09 cash dividend will be paid
August 31, 2004 to shareholders of record at the close of business on
August 16, 2004.
The Company has previously announced the intention to repurchase
up to 115,000 shares of its common stock, or approximately 5% of its
outstanding common shares. To date, the Company has repurchased 50,000
shares at an average cost of $15.17 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, 2004, the Company had 2,251,768 common shares
outstanding. The common stock traded between $17.50 and $14.70 per
share during the quarter ended June 30, 2004, with the last trade of
the quarter occurring at $15.76. 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,
2004 2003
---- ----
Total assets $311,893,000 $279,455,000
Available-for-sale securities 40,206,000 31,003,000
Loans, net 248,355,000 222,840,000
Allowance for losses on loans 1,978,000 1,836,000
Non-performing assets 298,000 307,000
Deposits 211,959,000 194,532,000
FHLB advances 59,250,000 53,500,000
Securities sold under repurchase agreements 6,448,000 5,234,000
Stockholders' equity 25,952,000 25,108,000
Equity to assets ratio 8.32% 8.98%
Allowance as a percentage of loans 0.80% 0.81%
Non-performing loans as a percentage of
loans 0.05% 0.04%
Per common share:
Book value $11.52 $10.94
Market value 15.76 12.70
Tangible book value 10.26 9.58
Three Months Ended Twelve Months Ended
Selected Operating June 30, June 30,
Data: 2004 2003 2004 2003
------------------ ---------- ---------- ---------- -----------
Net interest income $2,294,000 $2,234,000 $9,155,000 $9,284,000
Provision for losses
on loans 100,000 60,000 275,000 330,000
Non-interest income 457,000 479,000 1,875,000 1,415,000
Non-interest expense 1,651,000 1,654,000 6,445,000 6,165,000
Income taxes 247,000 289,000 1,427,000 1,466,000
----------- ----------- ----------- -----------
Net income 753,000 710,000 2,883,000 2,738,000
Per common share:
Net earnings:
Basic $.33 $.31 $1.27 $1.17
Diluted $.32 $.30 $1.23 $1.14
Cash dividends $.09 $.07 $.36 $.28
Average basic shares
outstanding 2,271,773 2,309,446 2,276,198 2,334,892
Average diluted shares
outstanding 2,337,291 2,379,874 2,346,300 2,398,361
Profitability Ratios:
---------------------
Return on average
assets: .97% 1.02% .98% 1.00%
Return on average
common equity: 11.43% 11.30% 11.09% 11.08%
Net interest margin 3.11% 3.40% 3.28% 3.57%
Net interest spread 2.90% 3.14% 3.06% 3.28%
Efficiency Ratio 60.0% 61.0% 58.4% 57.6%
CONTACT: Southern Missouri BancorpGreg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp