POPLAR BLUFF, Mo.--(BUSINESS WIRE)--Oct. 20, 2004--Southern
Missouri Bancorp, Inc., ("Company") (NASDAQ:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced record net income for the first quarter of fiscal 2005 of
$793,000, or $.35 per diluted share, an increase of 21% from the $.29
per diluted share earned during the same period of the prior year.
These earnings resulted in a return on average assets of 1.00% and a
return on average equity of 12.02% as compared to respective returns
of .99% and 10.93% during the same period of the prior year. The
improvement in earnings per share was primarily due to asset growth
and increased non-interest income, partially offset by the increase in
provision for loan losses.
The Company's net interest income for the first quarter of fiscal
2005 increased $136,000 to $2.3 million 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
average spread. The net interest rate spread for the three-month
period ended September 30, 2004, was 2.89% as compared to 2.90% for
the fourth quarter of fiscal year 2004, (ended June 30, 2004) and
3.06% for the same period of the prior year. The decrease in interest
rate spread was a result of interest earning assets repricing downward
at a faster pace than interest bearing liabilities.
Provisions for loan losses increased $120,000 to $150,000 as
compared to $30,000 for the same period of the prior year. The
increase was primarily due to loan growth and an increase in
outstanding loan commitments as asset quality remained strong with
non-performing assets to total assets of .07% as of September 30,
2004, as compared to .11% as of September 30, 2003.
The Company's non-interest income for the first quarter of fiscal
2005 was $691,000, which represented a 53.2% increase from the
$451,000 earned during the same period of the prior year. The increase
was primarily due a $121,000 gain realized on sale of investments,
increases in banking service charges and other miscellaneous income.
Overall, the 21% increase in earnings per share is a result of
management's continued focus on core business-enhancing customer
relationships as well as attracting new ones and managing the
Company's resources. Sources of revenue expanded due to strong balance
sheet growth, and in particular, growth in loans. In addition,
continued efforts in controlling expense resulted in an improved
efficiency ratio from 57.85% for the first quarter of the prior year
to 54.51% for the current period.
As mentioned, the Company continues to experience balance sheet
growth with total assets increasing $9.0 million, or 2.9%, to $320.9
million at September 30, 2004, as compared to $311.9 million at June
30, 2004. This growth was attributed primarily to a $9.3 million
increase in the loan portfolio to $257.7 million, partially offset by
a $1.1 million decline in the investment portfolio. Changes in the
composition of the loan portfolio included growth in commercial,
residential and consumer loans of $7.1 million, $1.6 million and
$900,000, respectively. Asset growth has been funded primarily with
FHLB advances, which have increased $8.8 million, since June 30, 2004.
The Company's stockholders' equity increased $689,000, to $26.6
million at September 30, 2004, from $26.0 million at June 30, 2004.
The increase was primarily due to net income and the increase in
market value of the investment portfolio, partially offset by stock
repurchases and cash dividends.
The Company is pleased to announce that the Board of Directors, on
October 19, 2004, declared its 42nd consecutive quarterly dividend
since the inception of the Company. The $.09 cash dividend will be
paid November 30, 2004, to shareholders of record at the close of
business on November 15, 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 75,000
shares at an average cost of $15.24 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 September 30, 2004, the Company had 2,226,768 common shares
outstanding. The common stock traded between $16.29 and $15.05 per
share during the quarter ended September 30, 2004, with the last trade
of the quarter occurring at $15.90. 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, June 30,
--------------------------- 2004 2004
------------- ------------
Total assets $320,907,000 $311,893,000
Available-for-sale securities 39,064,000 40,206,000
Loans, net 257,659,000 248,355,000
Allowance for losses on loans 2,094,000 1,978,000
Non-performing assets 235,000 298,000
Deposits 211,941,000 211,959,000
FHLB advances 68,000,000 59,250,000
Securities sold under repurchase
agreements 5,549,000 6,448,000
Stockholders' equity 26,641,000 25,952,000
Equity to assets ratio 8.30% 8.32%
Allowance for possible loan losses to
loans 0.81% 0.80%
Non-performing loans as a percentage of
loans 0.04% 0.05%
Per common share:
Closing Market Price 15.90 15.76
Tangible book value 10.71 10.26
Three Months Ended
September 30,
Selected Operating Data: 2004 2003
------------------------ ---- ----
Net interest income $2,323,000 $2,187,000
Provision for loan losses 150,000 30,000
Noninterest income 691,000 451,000
Noninterest expense 1,643,000 1,526,000
Income taxes 428,000 390,000
----------- -----------
Net income $793,000 $692,000
=========== ===========
Per common share:
Net earnings:
Basic $.36 $.30
Diluted $.35 $.29
Cash dividends $.09 $.09
Average basic shares outstanding 2,231,856 2,273,269
Average diluted shares outstanding 2,295,654 2,349,451
Profitability Ratios:
---------------------
Return on average assets 1.00% .99%
Return on average common equity 12.02% 10.93%
Net interest margin 3.11% 3.30%
Net interest spread 2.89% 3.06%
Efficiency Ratio 54.51% 57.85%
CONTACT: Southern Missouri BancorpGreg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp