POPLAR BLUFF, Mo.--(BUSINESS WIRE)--April 27, 2005--Southern
Missouri Bancorp, Inc. ("Company") (Nasdaq:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced a net loss for the third quarter of fiscal year 2005 of
$976,000, or $(.43) per diluted share as compared to earnings of $.30
per diluted share during the same period of the prior year. Net income
for the nine month period ending March 31, 2005 totaled $691,000, or
$.30 per diluted share as compared to $2.1 million, or $.91 per
diluted share earned during the same period of the prior year.
The net loss for the three month period ended March 31, 2005 was
primarily due to developments surrounding a credit relationship of
approximately $4.9 million which involved both potential fraudulent
activities and fraudulent financial statements provided by the
borrower, as indicated in a prior press release. In addition to the
previously announced $1.4 million loan loss provision, the Company
added an additional loan loss provision of $1.2 million for the third
quarter ended March 31, 2005, primarily due to the discovery of
additional information concerning the creditor. The Company continues
to actively monitor this situation, which could result in additional
loan loss provisions and expenses. The net loss for the three month
period ended March 31, 2005 included a $2.6 million increase in loan
loss provision, a $210,000 loss sustained on an operating deposit
account and a $50,000 reserve for legal fees all related to this
credit relationship, partially offset by the associated decrease in
income tax expense.
Dividend Declared:
The Board of Directors, on April 19, 2005, declared the 44th
consecutive quarterly dividend since the inception of the Company. The
$.09 dividend will be paid on May 31, 2005 to shareholders of record
at the close of business on May 16, 2005.
Balance Sheet Summary:
The Company's assets increased $18.8 million to $330.5 million at
March 31, 2005, as compared to $311.7 million at June 30, 2004. This
growth was attributed primarily to an increase in the loan portfolio
and fixed assets, partially offset by a decline in the investment
portfolio.
Loans, net of allowance for loan losses, as of March 31, 2005,
increased $13.5 million to $261.9 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 $12.3 million and $1.9
million, respectively, for the nine month period ending March 31,
2005.
The investment portfolio decreased $3.9 million to $36.3 million
at March 31, 2005 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.
Total liabilities increased $18.9 million to $304.7 million at
March 31, 2005 as compared to $285.8 million at June 30, 2004. The
increase primarily reflected an $18.8 million increase in total
deposits and a $6.8 million increase in securities sold under
agreements to repurchase, partially offset by a $6.8 million decrease
in FHLB overnight advances. The increase in deposits was primarily due
to increases in CDs, savings and checking accounts of $17.2 million,
$3.8 million and $2.6 million, respectively, partially offset by a
$6.1 million decrease in MMDAs. The increase in CDs reflects the Banks
strategy of replacing overnight FHLB borrowings with 13 and 15 month
funds. Securities sold under agreements to repurchase increased
primarily due to the development and expansion of new and existing
relationships.
Total stockholders' equity decreased $135,000 to $25.8 million at
March 31, 2005 as compared to $26.0 million at June 30, 2004. The
decrease was primarily due to cash dividends paid and the repurchase
of 29,701 shares of common stock, partially offset by net income.
The Company has previously announced its 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.
Income Statement Summary:
Short-term interest rates continued to increase in the third
quarter of fiscal year 2005, while longer term rates moved upward at a
slower pace, causing the yield curve to continue to flatten. Total
interest income for the three and nine month periods ended March 31,
2005 increased by $376,000 and $1.1 million, respectively. The
increase for the three month period ended March 31, 2005 was primarily
due to a $23.5 million increase in the average balance of
interest-earning assets to $306.0 million and the 12 basis point
increase in weighted average yields earned, partially offset by a
write off of $41,000 in commercial interest due to the classification
change of the aforementioned creditor relationship to non-accrual
status. The increase in average interest earning assets reflects
planned balance sheet growth. For the nine month period ended, the
increase was primarily due to a $27.9 million increase in the average
balance of interest-earning assets to $301.8 million at March 31,
2005, partially offset by a 1 basis point decrease in weighted average
yields earned over the same period of the prior year. For the three
and nine months ended March 31, 2005, the average interest rate spread
was 5.71% and 5.68% for each period, respectively, as compared to
5.59% and 5.69%, respectively, for the same periods of the prior year.
Total interest expense for the three and nine months ended March
31, 2005 increased by $430,000 and $1.0 million, respectively. The
increase for the three and nine month periods was primarily due to the
increase in the average balance of total interest-bearing liabilities
of $27.3 million and $29.1 million, respectively, and the increase in
the weighted average cost of funds of 36 basis points and 21 basis
points for the three and nine month periods ended March 31, 2005,
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 an increase in short term rates resulting in an increase in the
pricing of the money market accounts, overnight borrowings and
short-term certificates of deposit, along with the interest costs
associated with the junior subordinated debt.
Net interest income for the three months ended March 31, 2005
decreased $54,000 as compared to the same period of the prior year,
primarily due to an increase in the weighted average cost of funds and
the aforementioned interest write off, partially offset by an increase
in average interest earning assets. The net interest rate spread for
the three month period ended March 31, 2005 was 2.82% as compared to
3.07% for the same period ended March 31, 2004. For the nine months
ended March 31, 2005, net interest income increased $122,000,
primarily due to increase in the average balance of interest earning
assets. The net interest rate spread for the nine month period was
2.88% as compared to 3.10% for the same period ended March 31, 2004.
The provision for loan losses for the three and nine months ended
March 31, 2005 was $2.6 million and $2.9 million, respectively, as
compared to $60,000 and $175,000 for the same periods ended March 31,
2004. The increase in provision for loan losses was primarily due to
the aforementioned credit relationship.
Non interest income decreased $157,000 for the three month period
ended March 31, 2005 as compared to the same period of the prior year.
The decrease was primarily due a $210,000 loss on deposits as a result
of insufficient funds in the aforementioned credit relationship's
operating account. Non interest income increased $359,000 for the nine
month period ended March 31, 2005 as compared to the same period of
the prior year. The increase was primarily due to the gain on sale of
equities and investments of $352,000 in the first six month period
ended of fiscal year 2005.
Non interest expense decreased $6,000 for the three month period
ended March 31, 2005 as compared to the same period of the prior year.
Non interest expense increased $118,000 for the nine month period
ended March 31, 2005 as compared to the same period of the prior year.
The increase in non-interest expense for the nine months ended March
31, 2005 was due to increased charitable contributions, telephone,
legal 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 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
changes, 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: March 31, 2005June 30, 2004
--------------------------- -------------- -------------
Total assets $330,517,000 $311,703,000
Available-for-sale securities 36,342,000 40,206,000
Loans, net of allowance for loan losses 261,905,000 248,355,000
Allowance for losses on loans 4,738,000 1,978,000
Non-performing assets 5,192,000 298,000
Deposits 230,751,000 211,959,000
FHLB advances 52,500,000 59,250,000
Securities sold under repurchase
agreements 13,231,000 6,448,000
Stockholders' equity 25,817,000 25,952,000
Equity to assets ratio 7.81% 8.32%
Allowance for possible loan losses to
net loans 1.81% 0.80%
Non-performing loans as a percentage of
loans 1.95% 0.05%
Per common share:
Closing Market price 15.85 15.76
Tangible book value 10.38 10.26
Three Months Ended Nine Months Ended
Selected Operating March 31, March 31,
Data: 2005 2004 2005 2004
------------------ ---- ---- ---- ----
Net interest income $2,276,000 $2,330,000 $6,982,000 $6,860,000
Provision for loan
losses 2,610,000 60,000 2,855,000 175,000
Non interest income 322,000 480,000 1,777,000 1,419,000
Non interest expense 1,664,000 1,670,000 4,912,000 4,794,000
Income taxes (701,000) 377,000 301,000 1,180,000
----------- ----------- ----------- -----------
Net income $(975,000) $703,000 $691,000 $2,130,000
=========== =========== =========== ===========
Per common share:
Net earnings:
Basic $(.44) $.31 $.31 $.93
Diluted $(.43) $.30 $.30 $.91
Cash dividends paid $.09 $.09 $.27 $.27
Average basic shares
outstanding 2,221,152 2,283,262 2,224,623 2,277,672
Average diluted shares
outstanding 2,281,332 2,345,212 2,286,009 2,349,302
Profitability Ratios:
----------------------
Return on average
assets (1.18%) .94% .29% .98%
Return on average
common equity (14.38%) 10.63% 3.43% 10.97%
Net interest margin 3.03% 3.30% 3.10% 3.34%
Net interest spread 2.82% 3.07% 2.88% 3.10%
Efficiency Ratio 64.07% 59.44% 56.08% 57.91%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-778-1800
SOURCE: Southern Missouri Bancorp, Inc.