POPLAR BLUFF, Mo.--(BUSINESS WIRE)--Oct. 24, 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 first quarter of fiscal 2006 of $695,000,
or $.31 per diluted share as compared to $.35 per diluted share earned
during the same period of the prior year. The decrease in diluted
earnings per share was primarily due to a 21.9% decrease in
non-interest income, partially offset by the 20.0% decrease in
provision for loan losses. In the September 2004 quarter, the Company
recognized combined income of $159,000, or $.05, per diluted share
from the sale of equities and dividends earned on equities.
Dividend Declared
The Company is pleased to announce that the Board of Directors, on
October 18, 2005, declared its 46th consecutive quarterly dividend
since the inception of the Company. The $.09 cash dividend will be
paid on November 30, 2005, to shareholders of record at the close of
business on November 15, 2005. The Board of Directors and management
believe the continuation of a quarterly dividend enhances shareholder
value and demonstrates our commitment to and confidence in our future
prospects.
Balance Sheet Summary
The Company experienced balance sheet growth with total assets
increasing $11.1 million, or 3.4%, to $341.5 million at September 30,
2005, as compared to $330.4 million at June 30, 2005. This growth was
attributed primarily to increases in the balance of the loan portfolio
and cash balances. Asset growth has been funded primarily with
deposits and FHLB advances.
Loans, net of allowance for loan losses, as of September 30, 2005,
increased $9.0 million to $276.6 million, or 3.4%, as compared to
$267.6 million at June 30, 2005. The increase in the loan portfolio
reflects growth in the balances of commercial, commercial real estate
and one-to-four family loans of $4.5 million, $2.7 million and $2.2
million, respectively. Asset quality remains relatively strong with
net loan charge-offs for the first three months of 2006 totaling .03%
of average loans compared with .01% last year. Our allowance for loan
loss at September 30, 2005, totaled $2.0 million, representing .74% of
total loans and 338.8% of non-performing loans.
Total liabilities increased $10.7 million to $316.1 million as
compared to $305.4 million at June 30, 2005. Deposits increased $6.8
million to $231.5 million at September 30, 2005, as compared to $224.7
million at June 30, 2005. The increase in deposits was primarily due
to the $13.8 million increase in certificates of deposits (CDs) as a
result of special term and rate CDs, partially offset by the decreases
in money market and saving accounts of $7.3 million. FHLB advances
increased $6.3 million to $67.8 million as compared to $61.5 million
at June 30, 2005, while securities sold under agreements to repurchase
decreased by $2.6 million to $8.1 million from $10.7 million at June
30, 2005. The average loans to deposit ratio for the quarter was
120.1% as compared to 121.2% for the same period of the prior year.
The Company's stockholders' equity increased $398,000, to $25.4
million at September 30, 2005, from $25.0 million at June 30, 2005.
The increase was primarily due to net income, partially offset by cash
dividends and the decrease in market value of the investment
portfolio.
Income Statement Summary
The Company's net interest income for the first quarter of fiscal
2006 increased $25,000 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, 2005, was 2.75% as compared to 2.78% for
the fourth quarter of fiscal year 2005, and 2.89% for the same period
of the prior year. The decrease in interest rate spread from quarter
to quarter was primarily a result of Federal Home Loan Bank of Des
Moines change in their dividend rate paid from 3.8% to 1.4%.
The Company's non-interest income for the first quarter of fiscal
2006 decreased $151,000 to $540,000, which represented a 21.9%
decrease from the $691,000 earned during the same period of the prior
year. The decrease was primarily due to the prior quarter results
including $121,000 in gains realized on sale of equity investments and
$38,000 of dividend income received on equities.
Non-interest expense for the first quarter of fiscal 2006
increased $75,000 to $1.7 million which represented a 4.6% increase
from the $1.6 million expensed during the same period of the prior
year. Non-interest expense increased due to compensation expenses,
professional fees and expenses related to technology enhancements. The
Company continues to evaluate opportunities to become more efficient.
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 89,000
shares at an average cost of $15.17 per share. The Company at this
time is not actively purchasing shares of its common stock, but market
conditions, business opportunities and other economic conditions may
alter our outlook on repurchasing common stock.
On September 30, 2005, the Company had 2,232,816 common shares
outstanding. The common stock traded between $13.90 and $15.06 per
share during the quarter ended September 30, 2005, with the last trade
of the quarter occurring at $14.35. 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 judgment 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
September 30, June 30,
Selected Financial Data at: 2005 2005
--------------------------- ------------- -------------
Total assets $341,482,000 $330,360,000
Available-for-sale securities 34,939,000 34,700,000
Loans, net 276,640,000 267,568,000
Allowance for losses on loans 2,049,000 2,017,000
Non-performing assets 722,000 658,000
Deposits 231,474,000 224,666,000
FHLB advances 67,750,000 61,500,000
Securities sold under repurchase
agreements 8,118,000 10,757,000
Subordinated Debt 7,217,000 7,217,000
Stockholders' equity 25,401,000 25,003,000
Equity to assets ratio 7.44% 7.57%
Allowance as a percentage of loans 0.74% 0.75%
Non-performing loans as a percentage of
loans 0.22% 0.21%
Per common share:
Closing Market Price 14.35 14.50
Tangible book value 10.28 10.07
Three Months Ended
September 30,
Selected Operating Data: 2005 2004
------------------------ ----------- -----------
Net interest income $2,348,000 $2,323,000
Provision for loan losses 120,000 150,000
Noninterest income 540,000 691,000
Noninterest expense 1,718,000 1,643,000
Income taxes 355,000 428,000
----------- -----------
Net income $695,000 $793,000
=========== ===========
Per common share:
Net earnings:
Basic $.31 $.36
Diluted $.31 $.35
Cash dividends $.09 $.09
Average basic shares outstanding 2,223,765 2,231,856
Average diluted shares outstanding 2,276,577 2,295,654
Profitability Ratios:
---------------------
Return on average assets .83% 1.00%
Return on average common equity 11.04% 12.02%
Net interest margin 2.99% 3.11%
Net interest spread 2.75% 2.89%
Efficiency Ratio 59.47% 54.51%
CONTACT: Southern Missouri Bancorp, Inc.Greg Steffens, 573-778-1800
SOURCE: Southern Missouri Bancorp, Inc.