POPLAR BLUFF, Mo.--(BUSINESS WIRE)--April 28, 2006--Southern
Missouri Bancorp, Inc., ("Company") (Nasdaq:SMBC), the parent
corporation of Southern Missouri Bank and Trust Co. ("Bank"), today
announced net income for the third quarter of fiscal 2006 of $645,000,
or $.28 per diluted share, as compared to a loss of $975,000, or
$(.43) per diluted share, during the same period of the prior year.
The increase in diluted earnings per share was primarily due to the
inclusion of a $2.6 million provision for loan losses in the prior
period's results, compared to an $80,000 provision in the current
period, and was partially offset by the difference between an income
tax benefit of $701,000 during the prior period and a $352,000
provision for income taxes in the current period. Net income for the
first nine months of fiscal 2006 was $2.0 million, or $.88 per diluted
share, as compared to $691,000, or $.30 per diluted share, earned
during the same period of the prior year. The increase in diluted
earnings per share for the nine-month period was also primarily due to
loan loss provisions of $2.9 million during the same period of the
prior year, compared to $285,000 in the current period, offset again
by an increase from a $301,000 provision for income taxes in the same
period of the prior year, to a $1.1 million provision in the current
period.
The third quarter's results were negatively impacted by the
Company's opening of a branch in Sikeston, Missouri, in January of
2006. Start up costs and operating expenses incurred during the
quarter were $133,000. We estimate that the after-tax impact of
opening and operating the branch decreased diluted earnings per share
by $.03. At March 31, 2006, the location had grown to $4.6 million in
interest-earning assets.
Dividend Declared:
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. Therefore, they
are pleased to announce the 48th consecutive quarterly dividend since
the inception of the Company. The $.09 cash dividend will be paid on
May 31, 2006, to shareholders of record at the close of business on
May 15, 2006.
Balance Sheet Summary:
The Company experienced balance sheet growth with total assets
increasing $28.1 million, or 8.5%, to $358.5 million at March 31,
2006, as compared to $330.4 million at June 30, 2005. Growth in assets
was primarily reflected in increases in cash balances and the loan
portfolio. Asset growth has been funded primarily with deposits.
Loans, net of allowance for loan losses, increased $9.7 million,
or 3.6%, to $277.3 million at March 31, 2006, as compared to $267.6
million at June 30, 2005. The increase in the loan portfolio primarily
reflects growth in the balances of commercial real estate and
one-to-four family residential loans of $6.8 million and $3.5 million,
respectively. Asset quality remains relatively strong with annualized
net loan charge-offs for the first nine months of fiscal year 2006
totaling .12% of average net loans, compared to 1.85% for fiscal year
2005. Non-performing loans totaled $64,000 at March 31, 2006. Our
allowance for loan loss at March 31, 2006 totaled $2.1 million,
representing .74% of net loans and 3,212% of non-performing loans.
Cash balances increased $13.5 million, or 348%, to $17.4 million
at March 31, 2006, as compared to $3.9 million at June 30, 2005. Cash
growth is attributed to increased deposit balances, partially offset
by loan growth and reductions in Federal Home Loan Bank (FHLB)
overnight borrowings. The Company anticipates lower cash balances in
the next quarter.
Total liabilities increased $27.0 million, or 8.8% to $332.3
million at March 31, 2006, as compared to $305.4 million at June 30,
2005. Deposits increased $35.3 million, or 15.7%, to $260.0 million at
March 31, 2006, as compared to $224.7 million at June 30, 2005. The
increase in deposits was primarily due to a $17.3 million increase in
certificates of deposit (which resulted from promotional term/ rate
certificates, including the net purchase of $7.8 million in brokered
deposits), a $13.9 million increase in money market passbook accounts,
and a $7.4 million increase in checking accounts, partially offset by
decreases in money market deposit accounts of $4.0 million. FHLB
advances decreased $9.5 million, or 15.4%, to $52.0 million at March
31, 2006, as compared to $61.5 million at June 30, 2005. Securities
sold under agreements to repurchase increased $763,000 to $11.5
million at March 31, 2006, from $10.8 million at June 30, 2005. The
average loan to deposit ratio for the current quarter was 110%, as
compared to 116% for the quarter ended March 31, 2005.
The Company's stockholders' equity increased $1.2 million, to
$26.2 million at March 31, 2006, from $25.0 million at June 30, 2005.
The increase was primarily due to net income, partially offset by cash
dividends and a decrease in market value of the investment portfolio.
Income Statement Summary:
The Company's net interest income increased for the three and nine
month periods ended March 31, 2006, by $130,000 and $98,000
respectively, as compared to the same periods of the prior year. The
increase was primarily due to an increase in the amount of
interest-earning assets, partially offset by decreases in net interest
rate spread. The net interest rate spread for the three and nine month
periods ended March 31, 2006, was 2.65% and 2.66%, respectively, as
compared to 2.82% and 2.88% for the same periods of the prior year.
The decrease in net interest rate spread for the three month period
ended March 31, 2006, resulted from a 75 basis point increase in the
weighted-average cost of funds, partially offset by a 58 basis point
increase in the yield on interest-earning assets. The decrease in net
interest rate spread for the nine month period ended March 31, 2006,
resulted from a 72 basis point increase in the weighted-average cost
of funds, partially offset by a 49 basis point increase in the yield
on interest-earning assets. Net interest rate spread compression
during the fiscal year has been due primarily to the short-term
interest rates increases by the Federal Reserve, without accompanying
long-term interest rate increases, increased competition within our
market area for both loans and deposits, and increases in cash
balances, which lower our average yield on interest-earning assets.
The Company's non-interest income for the three month period ended
March 31, 2006, increased $183,000, or 56.8%, to $505,000, compared to
$322,000 for the same period of the prior year. The increase was
primarily due to the inclusion during the same period of the prior
year of a $210,000 loss on one deposit relationship. For the nine
month period ended March 31, 2006, non-interest income decreased
$199,000, or 11.2%, to $1.6 million, from $1.8 million in the same
period of the prior year. The decrease was primarily due to inclusion
in the results of the same period of the prior year of $352,000 in
gains realized on the sale of equity investments and $41,000 in
dividend income received on those equities, partially offset by the
prior year's $210,000 loss noted above.
Non-interest expense for the three and nine month periods ended
March 31, 2006, increased $169,000 and $382,000, respectively, to $1.8
million and $5.3 million. This represents increases of 10.1% and 7.8%,
as compared to the same periods of the prior year. Non-interest
expense increased due to higher expenses for compensation, occupancy,
and other operating expenses. Total non-interest expenses attributable
to operations of the Sikeston branch are estimated at $133,000 during
the three month period ended March 31, 2006. Absent those expenses,
non-interest expense would have increased $36,000, or 2.1%, compared
to the same period of the prior year.
Despite higher non-interest expense, the efficiency ratio for the
three month period ended March 31, 2006, improved to 63.0%, compared
to 64.1% for the same period of the prior year. The improvement was
due to the inclusion of the $210,000 loss on deposits noted above in
results for the same period of the prior year, which was charged
against non-interest income. Without the $133,000 in non-interest
expense attributed to the Sikeston branch, we estimate that the Bank's
efficiency ratio would be 58.4% for the third quarter. For the nine
month period ended March 31, 2006, the efficiency ratio deteriorated
to 61.1%, as compared to 56.1% for the same period of the prior year.
The deterioration was a result of the aforementioned higher
non-interest expense and lower non-interest income for the current
nine month period. The efficiency ratio measures non-interest expenses
as a percentage of revenues. 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 is not
actively purchasing shares of its common stock at this time, but
market conditions, business opportunities, and other economic
conditions may alter our outlook on repurchasing common stock.
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
Selected Financial Data at: March 31, 2006 June 30, 2005
--------------------------- -------------- -------------
Total assets 358,488,000 $330,360,000
Available-for-sale securities 38,714,000 34,700,000
Loans, net 277,273,000 267,568,000
Allowance for losses on loans 2,062,000 2,017,000
Non-performing assets 586,000 658,000
Deposits 259,992,000 224,666,000
FHLB advances 52,000,000 61,500,000
Securities sold under repurchase
agreements 11,521,000 10,757,000
Subordinated Debt 7,217,000 7,217,000
Stockholders' equity 26,174,000 25,003,000
Equity to assets ratio 7.30% 7.57%
Allowance as a percentage of loans 0.74% 0.75%
Non-performing loans as a percentage
of loans 0.02% 0.21%
Per common share:
Closing Market Price 14.77 14.50
Tangible book value 10.67 10.07
Three Months Ended Nine Months Ended
Selected Operating March 31 March 31
Data: 2006 2005 2006 2005
------------------ ----------- ----------- ----------- -----------
Net interest income $2,405,000 $2,276,000 $7,080,000 $6,982,000
Provision for loan
losses 80,000 2,610,000 285,000 2,855,000
Noninterest income 505,000 322,000 1,578,000 1,777,000
Noninterest expense 1,833,000 1,664,000 5,294,000 4,912,000
Income taxes 352,000 (701,000) 1,074,000 301,000
Net income $645,000 $(975,000) 2,005,000 $691,000
Per common share:
Net earnings:
Basic $.29 $(.44) $.90 $.31
Diluted $.28 $(.43) $.88 $.30
Cash dividends $.09 $.09 $.27 $.27
Average basic shares
outstanding 2,224,174 2,221,152 2,223,957 2,224,623
Average diluted shares
outstanding 2,275,897 2,281,332 2,276,255 2,286,009
Profitability Ratios:
----------------------
Return on average
assets 0.73% (1.18%) 0.78% .29%
Return on average
common equity 9.94% (14.38%) 10.46% 3.43%
Net interest margin 2.92% 3.03% 2.92% 3.10%
Net interest spread 2.65% 2.82% 2.66% 2.88%
Efficiency Ratio 62.98% 64.07% 61.14% 56.08%
CONTACT: Southern Missouri BancorpGreg Steffens, 573-778-1800
SOURCE: Southern Missouri Bancorp