POPLAR BLUFF, Mo.--(BUSINESS WIRE)--July 1, 2005--Southern
Missouri Bancorp, Inc. ("Company") (Nasdaq:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced that the Bank discovered there had been an additional
adverse development with respect to a previously reported substandard
loan, which resulted from allegedly fraudulent activities on the part
of a significant borrower. Control over and access to a significant
portion of the collateral underlying the loan is now the subject of
litigation between the Bank and another financial institution with a
non-performing loan to the same borrower. As a result, the Bank
increased its provision for loan losses by $1.9 million as of June 28,
2005, or approximately $1.2 million on an after-tax basis. At the same
time, the Bank reduced the value of the borrower's loans by $2.4
million. The remaining net loan balance after this write down and the
application of the proceeds from the sale of a portion of the
collateral securing the loans is approximately $300,000. The remaining
collateral, over which the Bank has control or is able to gain
control, will be sold at auction as soon as necessary arrangements can
be made. To the extent this litigation is settled or resolved in favor
of the Bank, a portion of this write down could be recovered. The
Company cannot predict whether or to what extent such a recovery may
occur.
Forward-Looking Statements
When used in this Current Report on Form 8-K and in other reports
of the Company filed with or furnished to the Securities and Exchange
Commission, in press releases or other public shareholder
communications, or in oral statements made with the approval of an
authorized executive officer, the words or phrases "believe," "will
likely result," "are expected to," "will continue," "is anticipated,"
"estimate," "project," "plans," or similar expressions are intended to
identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. You are cautioned
not to place undue reliance on any forward-looking statements, which
speak only as of the date made. These statements are based on beliefs,
plans, objectives, goals, expectations, anticipations, estimates and
intentions of management and are not guarantees of future performance.
By their nature, these statements are subject to numerous
uncertainties that could cause actual results to differ materially
from those anticipated in the statements. Important factors that could
cause actual results to differ materially from the results anticipated
or projected include, but are not limited to, the following: (i)
further developments in the Company's ongoing review of and efforts to
resolve the problem credit relationship described in this report,
which could result in, among other things, further downgrades of the
aforementioned loans, additional provisions to the loan loss reserve
and the incurrence of other material non-cash and cash charges; (ii)
the strength of the United States economy in general and the strength
of the local economies in which the Company conducts operations; (iii)
the effects of, and changes in, trade, monetary and fiscal policies
and laws, including interest rate policies of the Federal Reserve
Board; (iv) inflation, interest rate, market and monetary
fluctuations; (v) the timely development of and acceptance of the
Company's new products and services and the perceived overall value of
these products and services by users, including the features, pricing
and quality compared to competitors' products and services; (vi) the
willingness of users to substitute the Company's products and services
for products and services of the Company's competitors; (vii) the
impact of changes in financial services laws and regulations
(including laws concerning taxes, banking, securities and insurance);
(viii) the impact of technological changes; (ix) acquisitions; (x)
changes in consumer spending and saving habits; and (xi) the Company's
success at managing the risks involved in the foregoing.
The Company disclaims any obligation to update or revise any
forward-looking statements based on the occurrence of future events,
the receipt of new information, or otherwise.
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-778-1800
SOURCE: Southern Missouri Bancorp, Inc.