POPLAR BLUFF, Mo.--(BUSINESS WIRE)--Jan. 22, 2004--Southern
Missouri Bancorp, Inc., ("Company") (NASDAQ: SMBC), the parent
corporation of Southern Missouri Bank and Trust Co., today announced
net income for the second quarter of fiscal year 2004 was $735,000, or
$.31 per diluted share, an increase of 11% from the $.28 per diluted
share earned during the same period of the prior year. The second
quarter earnings provided a return on average assets of 1.01% and a
return on average equity of 11.35% as compared to respective returns
of 1.00% and 10.90% during the same period of the prior year. Through
the first six months of fiscal 2004, net income was $1.4 million or
$.61 per diluted share, an increase of 9% from $.56 per diluted share
reported during the same period of the prior year. For the six month
period, earnings provided a return on average assets of 1.00% and a
return on average equity of 11.14% as compared to respective returns
of 1.00% and 10.83% during the same period of the prior year. The
improvement in earnings per share for the three month and six month
periods was primarily due to increased non-interest income. 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.
Commenting about the Company's performance, Greg Steffens,
President and CEO, stated: "Southern Missouri Bancorp's second quarter
results clearly demonstrate the strategic importance of its effort to
build its non-interest revenue. Strong growth in banking service
charges, an increase in bank owned life insurance cash surrender value
and other fee income led to increases in non-interest revenue,
essentially offsetting the impact of a lower net interest rate spread
that resulted from the current low interest rate environment. These
results reflect the realization of our goals based on hard work,
professionalism and, most of all, customer service. We are very
pleased with our cost containment strategy as well as our growth, and
I am especially proud of our Southern Missouri Bank team. We are
committed to continuing the hard work that will be necessary to
maintain our momentum and look forward to the opportunities that lay
ahead in the last six months of fiscal 2004."
The Company's net interest income declined $40,000 and $239,000
over the respective three- and six-month periods ended December 31,
2003, as compared to the same periods of the prior year. The declines
were primarily due to interest rate spread compression as interest
earning assets repriced downward at a faster pace than interest
bearing liabilities. During the three and six months ended December
30, 2003, the average net interest rate spread was 3.19% and 3.12% as
compared to 3.36% and 3.41% over the same period of the prior year.
The impact of the decline in spread was partially offset by increases
in average interest-bearing assets of $14.6 million for the
three-month period and $13.6 million for the six-month period.
The Company's non-interest income increased $180,000 and $384,000
over the respective three- and six-month periods ended December 31,
2003, as compared to the same periods of the prior year. The
respective increases of 58.7% and 69.2% were 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 $17.4 million to $296.9 million at
December 31, 2003, as compared to $279.5 million at June 30, 2003.
This growth was attributed primarily to an increase in the loan
portfolio of $16.4 million as compared to June 30, 2003, balances of
$222.8 million. Changes in the composition of the loan portfolio
included growth in commercial and residential real estate loans of
$11.4 million and $4.7 million. Asset growth has been funded primarily
with deposits, securities sold under agreements to repurchase and FHLB
advances, which have increased $4.8 million, $2.3 million and $9.4
million, respectively, since June 30, 2003.
The Company's stockholders' equity increased $1.1 million, to
$26.2 million at December 31, 2003 from $25.1 million as of June 30,
2003. The increase was primarily due to net income for the six-month
period, partially offset by cash dividends.
The Company is also pleased to announce that the Board of
Directors, on January 20, 2004, declared the 39th consecutive
quarterly dividend since the inception of the Company. The $.09
dividend will be paid on February 27, 2004, to shareholders of record
at the close of business on February 13, 2004. 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: December 31, 2003June 30, 2003
----------------- -------------
Total assets $296,886,000 $279,455,000
Available-for-sale securities 32,365,000 31,003,000
Loans 239,267,000 222,840,000
Allowance for losses on loans 1,869,000 1,836,000
Non-performing assets 478,000 307,000
Deposits 199,369,000 194,532,000
FHLB advances 62,900,000 53,500,000
Securities sold under repurchase
agreements 7,535,000 5,234,000
Stockholders' equity 26,189,000 25,108,000
Equity to assets ratio 8.82% 8.98%
Allowance as a percentage of loans 0.78% 0.81%
Non-performing assets as a percentage
of assets 0.16% 0.12%
Per common share:
Book value $11.40 $10.94
Market value 13.85 12.70
Tangible book value 10.09 9.58
Three Months Ended Six Months Ended
December 31, December 31,
Selected Operating Data: 2003 2002 2003 2002
------------------------ ---- ---- ---- ----
Net interest income $2,343,000 $2,383,000 $4,530,000 $4,769,000
Provision for losses on
loans 85,000 90,000 115,000 210,000
Non-interest income 488,000 308,000 939,000 555,000
Non-interest expense 1,598,000 1,523,000 3,124,000 2,991,000
Income taxes 413,000 400,000 803,000 783,000
---------- ---------- ---------- ----------
Net earnings $ 735,000 $ 678,000 $1,427,000 $1,340,000
Per common share:
Net earnings:
Basic $ .32 $ .29 $ .63 $ .57
Diluted $ .31 $ .28 $ .61 $ .56
Cash dividends paid $ .09 $ .07 $ .18 $ .14
Average basic shares
outstanding 2,276,486 2,341,244 2,274,878 2,350,998
Average diluted shares
outstanding 2,353,246 2,403,342 2,351,349 2,409,023
Profitability Ratios:
--------------------------
Return on average assets: 1.01% 1.00% 1.00% 1.00%
Return on average common
equity 11.35% 10.90% 11.14% 10.83%
Net interest margin 3.42% 3.67% 3.36% 3.72%
Net interest spread 3.19% 3.36% 3.12% 3.41%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-785-1421
SOURCE: Southern Missouri Bancorp, Inc.