POPLAR BLUFF, Mo.--(BUSINESS WIRE)--Jan. 21, 2005--Southern
Missouri Bancorp, Inc., ("Company") (NASDAQ:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced net income for the second quarter of fiscal year 2005 of
$874,000, or $.38 per diluted share as compared to $.31 per diluted
share earned during the same period of the prior year, a 22.6%
increase. Net income for the six-month period ending December 31,
2004, totaled $1.7 million, or $.73 per diluted share as compared to
$.61 per diluted share earned during the same period of the prior
year, a 19.7% increase.
Net income for the three- and six-month periods ending December
31, 2004, increased over the same period of the prior year as a result
of increased net interest income and non-interest income, partially
offset by increases in the provision for loan losses. During the first
six months of fiscal year 2005, the Company recorded gains on the sale
of equities and investments of $352,000 with the proceeds used to
purchase property for future expansion. The second-quarter earnings
provided a return on average assets of 1.08% and a return on average
equity of 12.97% as compared to respective returns of 1.01% and 11.35%
during the same period of the prior year. Through the first six months
of fiscal year 2005, earnings provided a return on average assets of
1.04% and a return on average equity of 12.5% as compared to
respective returns of 1.00% and 11.14% during the same period of the
prior year.
Dividend Declared
The Board of Directors, on January 18, 2005, declared the 43rd
consecutive quarterly dividend since the inception of the Company. The
$.09 dividend will be paid on February 28, 2005, to shareholders of
record at the close of business on February 15, 2005.
Balance Sheet Summary
The Company's assets increased $14.9 million, or 4.8%, to $326.8
million at December 31, 2004, as compared to $311.9 million at June
30, 2004. This growth was attributed primarily to an increase in the
loan portfolio, cash balances and fixed assets, partially offset by a
decline in the investment portfolio.
Loans, net of allowance for loan losses, as of December 31, 2004,
increased $10.4 million, or 4.2%, to $258.7 million, as compared to
$248.4 million at June 30, 2004. The Company continues to focus on
changing the loan mix and growth within the loan portfolio as
indicated by growth in commercial and residential loans of $8.9
million and $1.1 million, respectively. Residential and commercial
loans represented 50% and 42%, respectively, of the loan portfolio at
December 31, 2003, as compared to the current mix of 47% and 45%,
respectively, while consumer loans totaled 8% for both periods.
The investment portfolio decreased $6.3 million, or 15.6%, to
$33.9 million at December 31, 2004, as compared to $40.2 million at
June 30, 2004, primarily due to the sale of $5.5 million in
investments and equities to fund the purchase of property for future
expansion. The initial investments were from the proceeds of the
junior subordinated debt issuance in March 2004 and the sales resulted
in net gains of $352,000 over the period.
Total liabilities increased $13.6 million, or 4.8%, to $299.6
million at December 31, 2004, as compared to $285.9 million at June
30, 2004. The increase primarily reflected a $4.9 million, or 2.3%,
increase in total deposits, a $2.1 million, or 32.8%, increase in
securities sold under agreements to repurchase, and a $6.6 million, or
11.1%, increase in borrowed funds. The increase in total deposits
primarily reflects an increase in checking accounts of $3.2 million
for the first six months of fiscal year 2005. The increase reflects
the emphasis being placed on attracting less rate sensitive accounts.
Securities sold under agreements to repurchase increased primarily due
to the development and expansion of new and existing relationships.
The increase in borrowed funds over the first six months of fiscal
year 2005 was related to increased overnight borrowings from the
Federal Home Loan Bank to provide liquidity.
Total stockholders' equity increased $1.3 million, or 4.8%, to
$27.2 million at December 31, 2004, as compared to $26.0 million at
June 30, 2004. The increase was primarily due to net income for the
six month period, the exercise of stock options, and an increase in
accumulated other comprehensive income, partially offset by cash
dividends and the repurchase of 29,701 shares of common stock.
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
approximately 80,000 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.
Income Statement Summary
Short-term interest rates continued to increase in the second
quarter of fiscal year 2005, while long-term rates decreased during
this same period, thus flattening the market yield curve. Total
interest income for the three and six month periods ended December 31,
2004, increased by $376,000, or 9.6%, and $752,000, or 9.7%,
respectively. The increase for the three-month period was primarily
due to a $26.8 million, or 9.8%, increase in the average balance of
interest-earning assets to $300.9 million at December 31, 2004,
reflecting planned balance sheet growth. For the six-month period
ended, the increase was primarily due to a $31.5 million, or 11.7%,
increase in the average balance of interest-earning assets to $301.2
million at December 31, 2004, partially offset by a 10 basis point
decrease in weighted average yields earned over the same period of the
prior year. The decrease in yields earned reflects the overall
decrease in long-term and short-term interest rates experienced during
calendar year 2003. For the three and six months ended December 30,
2004, the average interest rate spread was 5.73% and 5.63%,
respectively, as compared to 5.74% and 5.73%, respectively, for the
same period of the prior year.
Total interest expense for the three and six months ended December
31, 2004, increased by $336,000, or 21.1%, and $576,000, or 18.0%,
respectively. The increase for the three and six months ended was
primarily due to the increase in the average balance of total
interest-bearing liabilities of $28.2 million and $31.6 million,
respectively, and the increase in the weighted average cost of funds
of 22 basis points and 12 basis points for the three and six months
ended, respectively. The increase in the average balance of
interest-bearing liabilities was primarily used to fund our growth
initiatives and included $7.2 million in junior subordinated debt
issued in March 2004. The increase in the weighted average cost of
funds was primarily due to the increase in short-term rates increasing
the pricing of the money market accounts, overnight borrowings and
short-term certificates of deposit rates along with the interest costs
associated with the junior subordinated debt.
Net interest income for the three- and six-month periods ended
December 31, 2004, increased $41,000, or 1.72%, and $176,000, or 3.9%,
respectively. The increase in net interest income reflects changes in
the composition of the Company's balance sheet. The net interest rate
spread for the three-month period ended December 31, 2004, was 2.95%
as compared to 3.19% for the same period ended December 31, 2003, and
2.89% for the quarter ended September 30, 2004. For the six months
ended December 31, 2004, the net interest rate spread was 2.90% as
compared to 3.12% for the same period ended December 31, 2003.
The provision for loan losses for the three and six months ended
December 31, 2004, was $95,000 and $245,000, respectively, as compared
to $85,000 and $115,000 for the same periods ended December 31, 2003.
The increase in provision for loan losses was due to the increased
risk associated with the aforementioned change in the loan mix and a
change in the reserve for loan loss calculation.
Non-interest income increased $276,000 and $516,000 over the
respective three- and six-month periods ended December 31, 2004, as
compared to the same periods of the prior year. The respective
increases of 56.6% and 55.0% were primarily due to the gain on sale of
equities and investments of $231,000 in the three-month period ended
and $352,000 for the six-month period ended. Along with the gain on
sales, the increases were also due to increased banking service
charges and an expanded customer base.
Non-interest expense increased $7,000 and $124,000 over the
respective three and six month periods ended December 31, 2004, as
compared to the same periods of prior year. The increase in
non-interest expense for the six months ended December 31, 2004, was
due to increased charitable contributions, telephone expenses and
customer related expenses.
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: Dec. 31, June 30,
--------------------------- 2004 2004
---- ----
Total assets $326,756,000 $311,893,000
Available-for-sale securities 33,915,000 40,206,000
Loans, net of allowance for loan losses 258,730,000 248,355,000
Allowance for losses on loans 2,140,000 1,978,000
Non-performing assets 223,000 298,000
Deposits 216,861,000 211,959,000
FHLB advances 65,800,000 59,250,000
Securities sold under repurchase agreements 8,565,000 6,448,000
Stockholders' equity 27,203,000 25,952,000
Equity to assets ratio 8.33% 8.32%
Allowance for possible loan losses to loans 0.82% 0.80%
Non-performing loans as a percentage of
loans 0.05% 0.05%
Per common share:
Closing Market price 18.49 15.76
Tangible book value 10.97 10.26
Three Months Ended Six Months Ended
Selected Operating December 31, December 31,
Data: 2004 2003 2004 2003
------------------- ---- ---- ---- ----
Net interest income $2,384,000 $2,343,000 $4,706,000 $4,530,000
Provision for loan
losses 95,000 85,000 245,000 115,000
Non interest income 764,000 488,000 1,455,000 939,000
Non interest expense 1,605,000 1,598,000 3,248,000 3,124,000
Income taxes 574,000 413,000 1,002,000 803,000
----------- ----------- ----------- -----------
Net income $874,000 $735,000 $1,666,000 $1,427,000
=========== =========== =========== ===========
Per common share:
Net earnings:
Basic $.39 $.32 $.75 $.63
Diluted $.38 $.31 $.73 $.61
Cash dividends paid $.09 $.09 $.18 $.18
Average basic shares
outstanding 2,220,861 2,276,486 2,226,359 2,274,878
Average diluted shares
outstanding 2,281,041 2,353,244 2,288,348 2,351,348
Profitability Ratios:
----------------------
Return on average
assets 1.08% 1.01% 1.04% 1.00%
Return on average
common equity 12.97% 11.35% 12.50% 11.14%
Net interest margin 3.17% 3.42% 3.12% 3.36%
Net interest spread 2.95% 3.19% 2.90% 3.12%
Efficiency Ratio 50.98% 56.45% 52.72% 57.12%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-778-1800
SOURCE: Southern Missouri Bancorp, Inc.