Press Release

Southern Missouri Bancorp Reports Preliminary Results for Second Quarter of Fiscal 2021; Increases Quarterly Dividend to $0.16 Per Common Share; Conference Call Scheduled for Tuesday, January 26, at 3:30pm Central Time

Company Release - 1/25/2021

Poplar Bluff, Missouri, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the second quarter of fiscal 2021 of $12.0 million, an increase of $4.3 million, or 56.1%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in provision for income taxes, noninterest expense, and provision for credit losses. Preliminary net income was $1.32 per fully diluted common share for the second quarter of fiscal 2021, an increase of $.48 as compared to the $.84 per fully diluted common share reported for the same period of the prior fiscal year.

Highlights for the second quarter of fiscal 2021:

  • Annualized return on average assets was 1.87%, while annualized return on average common equity was 18.3%, as compared to 1.36% and 12.6%, respectively, in the same quarter a year ago, and 1.57% and 15.6%, respectively, in the first quarter of fiscal 2021, the linked quarter.
     
  • Earnings per common share (diluted) were $1.32, up $.48, or 57.1%, as compared to the same quarter a year ago, and up $.23, or 21.1%, from the first quarter of fiscal 2021, the linked quarter.
     
  • Provision for credit losses was $612,000, an increase of $224,000, or 57.7%, as compared to the same period of the prior year, and down $162,000, or 20.9%, as compared to the first quarter of fiscal 2021, the linked quarter. Nonperforming assets were $11.1 million, or 0.42% of total assets, at December 31, 2020, as compared to $11.3 million, or 0.44% of total assets, at September 30, 2020, and $14.1 million, or 0.61% of total assets, at December 31, 2019, one year prior.
     
  • Net loans decreased $29.1 million during the second quarter, as balances of SBA Paycheck Protection Program (PPP) loans declined by $38.2 million, as forgiveness processing began in earnest.
     
  • Deposit balances increased $97.0 million in the second quarter of fiscal 2021. Typically, the second quarter of the fiscal year is the strongest for the Company’s deposit growth, most notably in nonmaturity accounts. Deposits continued to migrate away from certificates of deposit and to nonmaturity accounts.
     
  • Net interest margin for the second quarter of fiscal 2021 was 3.92%, up from the 3.70% reported for the year ago period, and up from the 3.73% figure reported for the first quarter of fiscal 2021, the linked quarter. Net interest income was increased significantly by accelerated accretion of deferred origination fees on PPP loans as those loans were repaid through SBA forgiveness. Discount accretion on acquired loan portfolios was modestly higher in the current quarter as compared to the linked quarter, and modestly lower as compared to the year ago period.
     
  • Noninterest income was up 55.7% for the second quarter of fiscal 2021, as compared to the year ago period, and was up 15.8% as compared to the first quarter of fiscal 2021, the linked quarter. Nonrecurring benefits realized on bank-owned life insurance during the quarter contributed significantly to the increase, and the Company continued to originate a substantial volume of mortgage loans for sale into the secondary market.
     
  • Noninterest expense was up 3.1% for the second quarter of fiscal 2021, as compared to the year ago period, and was down 0.5% from the first quarter of fiscal 2021, the linked quarter.  

Dividend Declared:

The Board of Directors, on January 19, 2021, declared a quarterly cash dividend on common stock of $0.16, payable February 26, 2021, to stockholders of record at the close of business on February 12, 2021, marking the 107th consecutive quarterly dividend since the inception of the Company, and representing an increase of 6.7% over the quarterly dividend paid previously. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Tuesday, January 26, 2021, at 3:30 p.m., central time. The call will be available live to interested parties by calling 1-888-339-0709 in the United States (Canada: 1-855-669-9657, international: 1-412-902-4189). Participants should ask to be joined into the Southern Missouri Bancorp (SMBC) call. Telephone playback will be available beginning one hour following the conclusion of the call through February 8, 2021. The playback may be accessed by dialing 1-877-344-7529 (Canada: 1-855-669-9658, international: 1-412-317-0088), and using the conference passcode 10151898.

Balance Sheet Summary:

The Company’s balance sheet grew modestly from June 30, 2020, with total assets of $2.6 billion at December 31, 2020, reflecting an increase of $80.8 million, or 3.2%. Growth primarily reflected increases in cash and cash equivalents and available-for-sale (“AFS”) securities, partially offset by a decrease in loans receivable.

Cash equivalents and time deposits were a combined $150.5 million at December 31, 2020, an increase of $95.3 million, or 175.5%, as compared to June 30, 2020, increasing primarily as a result of rapid deposit growth and loan repayments. AFS securities were $181.1 million at December 31, 2020, an increase of $4.6 million, or 2.6%, as compared to June 30, 2020.

Loans, net of the allowance for credit losses (ACL), were $2.1 billion at December 31, 2020, a decrease of $20.5 million, or 1.0%, as compared to June 30, 2020. Gross loans decreased by $10.2 million, or 0.5%, during the first six months of the fiscal year, while the ACL at December 31, 2020, reflected an increase of $10.3 million, as compared to the balance of our allowance for loan and lease losses (ALLL) at June 30, 2020. The Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, effective as of July 1, 2020, the beginning of our 2021 fiscal year. Adoption resulted in a $9.3 million increase in the ACL, relative to the ALLL as of June 30, 2020, while provisioning in excess of net charge offs during the first six months of fiscal 2021 increased the ACL by an additional $1.0 million, as compared to July 1, 2020. The decrease in loan balances in the portfolio was primarily attributable to commercial loans, partially offset by increases in commercial real estate loans, residential real estate loans, and drawn construction loan balances. Commercial loan balances decreased primarily as a result of forgiveness of PPP loans, which declined by $36.8 million in the fiscal year to date, and by $38.2 million in the quarter ended December 31, 2020, to stand at $95.5 million. Residential real estate loans increased primarily due to growth in 1- to 4-family residential lending, and commercial real estate loans increased primarily due to loans secured by nonresidential owner-occupied property. Management expects to continue to receive significant PPP forgiveness payments in the quarter ended March 31, 2021, although these will be somewhat offset by anticipated funding of “second draw” PPP loans under the program re-opened by the SBA in January 2021. Loans anticipated to fund in the next 90 days stood at $85.1 million at December 31, 2020, as compared to $122.7 million at September 30, 2020, and $72.7 million at December 31, 2019. The pipeline figure at December 31, 2020, did not include second draw PPP loans.

Nonperforming loans were $8.3 million, or 0.39% of gross loans, at December 31, 2020, as compared to $8.7 million, or 0.40% of gross loans at June 30, 2020, and $10.4 million, or 0.54% of gross loans at December 31, 2019. Nonperforming assets were $11.1 million, or 0.42% of total assets, at December 31, 2020, as compared to $11.2 million, or 0.44% of total assets, at June 30, 2020, and $14.1 million, or 0.61% of total assets, at December 31, 2019. The decrease in nonperforming loans over the previous twelve months was attributed primarily to the resolution of certain nonperforming loans acquired in the November 2018 acquisition of Gideon Bancshares and its subsidiary, First Commercial Bank (the “Gideon Acquisition”).

Our ACL at December 31, 2020, totaled $35.5 million, representing 1.64% of gross loans and 425.8% of nonperforming loans, as compared to an ALLL of $25.1 million, representing 1.16% of gross loans and 290.4% of nonperforming loans at June 30, 2020, and an ALLL of $20.8 million, or 1.07% of gross loans and 200.0% of nonperforming loans, at December 31, 2019. The ACL at December 31, 2020, also represented 1.72% of gross loans excluding PPP loans. The Company has estimated its credit losses as of December 31, 2020, under ASC 320-20, and management believes the allowance for credit losses as of that date is adequate based on that estimate; however, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels.

Provisions of the CARES Act and subsequent legislation allow financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDRs) for certain loans that were otherwise current and performing prior to the COVID-19 pandemic, but for which borrowers experienced or expected difficulties due to the impact of the pandemic. Initially, deferrals under this program were generally granted for three-month periods, while interest-only modifications were generally for six-month periods. Some borrowers were granted additional periods of deferral or interest-only modifications. The Company did not account for these loans as TDRs. As of December 31, 2020, loans for which COVID-related payment deferrals and interest-only payment modifications remained in place included approximately 17 loans with balances totaling $40.3 million, as compared to approximately 900 loans with balances totaling $380.2 million with such deferrals or modifications in place at June 30, 2020. Details by loan type are included in the table at the conclusion of this document. For borrowers whose payment term have not returned to the original terms under their loan agreement as of December 31, 2020, the Company has generally classified the credit as a “watch” status credit. Loans remaining under a COVID-related payment deferral or interest-only modification which have been placed on watch status total $38.7 million. While management considers progress made by our borrowers in responding to the pandemic to be relatively strong, and the performance of our loan portfolio to be encouraging to date, we cannot predict with certainty the difficulties to be faced in coming months. Communities where our borrowers operate may experience increases in COVID-19 cases and reductions in business activity or employee attendance, and borrowers could be required by local authorities to restrict activity.

Total liabilities were $2.4 billion at December 31, 2020, an increase of $71.5 million, or 3.1%, as compared to June 30, 2020.

Deposits were $2.3 billion at December 31, 2020, an increase of $80.2 million, or 3.7%, as compared to June 30, 2020. This increase primarily reflected an increase in interest-bearing transaction accounts, noninterest-bearing transaction accounts, savings accounts, and money market deposits accounts, partially offset by a decrease in time deposits. The increase included a $14.8 million increase in public unit funds, and was net of a $7.3 million decrease in brokered deposits. Public unit balances were $320.0 million at December 31, 2020, while brokered time deposits totaled $16.0 million, and brokered money market deposits were $20.0 million. Depositors continue to hold unusually high balances in the uncertain environment. The average loan-to-deposit ratio for the second quarter of fiscal 2021 was 98.5%, as compared to 100.4% for the same period of the prior fiscal year.

FHLB advances were $63.3 million at December 31, 2020, a decrease of $6.7 million, or 9.6%, as compared to June 30, 2020, as the Company’s deposit inflows outpaced loan demand or desired investment portfolio growth. The Company has continued to monitor the availability of the Federal Reserve’s PPP Lending Facility (PPPLF), but has not utilized it to date, given our improved liquidity position and the lack of attractive alternative investment options.

The Company’s stockholders’ equity was $267.7 million at December 31, 2020, an increase of $9.3 million, or 3.2%, as compared to June 30, 2020. The increase was attributable primarily to earnings retained after cash dividends paid, partially offset by the one-time negative adjustment to retained earnings resulting from the adoption of the CECL standard and repurchases of the Company’s common stock. Since re-starting the repurchase program in October 2020, the Company repurchased 90,793 common shares for $2.6 million through December 31, 2020, at an average price of $29.06.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended December 31, 2020, was $23.5 million, an increase of $4.1 million, or 21.4%, as compared to the same period of the prior fiscal year. The increase was attributable to a 14.8% increase in the average balance of interest-earning assets, combined with an increase in net interest margin to 3.92% in the current three-month period, from 3.70% in the same period a year ago. As a material amount of PPP loans were forgiven and therefore repaid ahead of their scheduled maturity, the Company recognized accelerated accretion of interest income from deferred origination fees on these loans. In the current quarter, this component of interest income totaled $968,000, adding 16 basis points to the net interest margin, with no comparable item in the year ago period.

Loan discount accretion and deposit premium amortization related to the Company’s August 2014 acquisition of Peoples Bank of the Ozarks, the June 2017 acquisition of Capaha Bank, the February 2018 acquisition of Southern Missouri Bank of Marshfield, the Gideon Acquisition, and the May 2020 acquisition of Central Federal Savings & Loan Association of Rolla (the Central Federal Acquisition), resulted in $478,000 in net interest income for the three-month period ended December 31, 2020, as compared to $525,000 in net interest income for the same period a year ago. The Company generally expects this component of net interest income will continue to decline over time, although volatility may occur to the extent we have periodic resolutions of specific loans. Combined, these components of net interest income contributed eight basis points to net interest margin in the three-month period ended December 31, 2020, as compared to a contribution of 10 basis points in the same period of the prior fiscal year, and as compared to the six basis point contribution in the linked quarter, ended September 30, 2020, when net interest margin was 3.73%. Additionally, in the year-ago period, the Company recognized an additional $194,000 in interest income as a result of the resolution of a limited number of nonperforming loans, with no material contribution from similar resolutions in the current or linked period. This recognition of interest income in the year-ago period contributed four basis points to net interest margin.

The provision for credit losses for the three-month period ended December 31, 2020, was $612,000, as compared to $388,000 in the same period of the prior fiscal year. The limited increase as compared to the same quarter a year ago was attributable primarily to continued uncertainty regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, partially offset by relatively consistent levels of net charge offs, adversely classified credits, and nonperforming loans. The Company assesses that the outlook is little changed as compared to the quarter ended June 30, 2020. As a percentage of average loans outstanding, the provision for credit losses in the current three-month period represented a charge of 0.11% (annualized), while the Company recorded net charge offs during the period of 0.04% (annualized). During the same period of the prior fiscal year, the provision represented a charge of 0.08% (annualized), while the Company recorded net charge offs of 0.06% (annualized).

The Company’s noninterest income for the three-month period ended December 31, 2020, was $5.7 million, an increase of $2.0 million, or 55.7%, as compared to the same period of the prior fiscal year. In the current period, increases in gains realized on the sale of residential real estate loans originated for that purpose, earnings on bank-owned life insurance, loan servicing income, and bank card interchange income were partially offset by decreases in deposit account service charges. Earnings on bank-owned life insurance were increased by a non-recurring benefit of $696,000. Gains realized on the sale of residential real estate loans originated for that purpose increased as origination of these loans more than quadrupled as compared to the year ago period, and also increased from the linked quarter, while pricing modestly improved. Our portfolio of serviced loans has increased notably in recent quarters, up 16.2% during the quarter ended December 31, 2020, as servicing income increases through fees received and the recognition of mortgage servicing rights at origination. Bank card interchange income increased as a result of a 10% increase in the number of bank card transactions and a 17% increase in bank card dollar volume, as compared to the same quarter a year ago.

Noninterest expense for the three-month period ended December 31, 2020, was $13.4 million, an increase of $410,000, or 3.1%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, deposit insurance premiums, data processing expenses, and occupancy expenses, partially offset by reductions in amortization of core deposit intangibles and other expenses. Other expenses declined primarily due to inclusion in the year ago period of a $327,000 loss on the disposal of two bank facilities that had been acquired in the Gideon Acquisition, as well as due to reduced employee travel expenses and customer entertainment. The increase in compensation and benefits as compared to the prior year primarily reflected standard increases in compensation and an increase in employee headcount over the prior year, due in part to the Central Federal Acquisition, as well as a de novo branch opened in July 2020. Deposit insurance premiums reflected a return to a normalized level of premiums after the Company benefited from one-time assessment credits for much of the prior fiscal year. Data processing expenses increased primarily due to licensing of updated productivity, mobility, and security software. Occupancy expenses increased in part due to additional locations, as well as replacement of some ATMs with ITMs with video teller capability. The efficiency ratio for the three-month period ended December 31, 2020, was 45.9%, as compared to 56.5% in the same period of the prior fiscal year, with the improvement attributable primarily to the current period’s increases in net interest income and noninterest income, while expense growth was contained.

The income tax provision for the three-month period ended December 31, 2020, was $3.2 million, an increase of 64.1% as compared to the same period of the prior fiscal year, as higher pre-tax income combined with an increase in the effective tax rate, to 20.7%, as compared to 19.9% in the same period a year ago. The higher effective tax rate was attributable primarily to the significant increase in pre-tax income, without corresponding increases in tax-advantaged investments.

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, generally, resulting from the ongoing COVID-19 pandemic and any governmental or societal responses thereto; expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; the strength of the United States economy in general and the strength of the local economies in which we conduct operations; fluctuations in interest rates and in real estate values; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development of and acceptance of our 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; fluctuations in real estate values and both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for loan losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

 

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
                       
Summary Balance Sheet Data as of:    Dec. 31    Sep. 30,    June 30,    Mar. 31,    Dec. 31,  
      (dollars in thousands, except per share data)      2020        2020        2020        2020        2019    
                       
Cash equivalents and time deposits   $       150,496     $          42,850     $          55,219     $          57,078     $          42,015    
Available for sale (AFS) securities              181,146                175,528                176,524                180,592                175,843    
FHLB/FRB membership stock                11,004                  11,956                  10,753                  13,054                  12,522    
Loans receivable, gross          2,156,870            2,185,547            2,167,068            1,991,328            1,943,599    
   Allowance for loan losses                35,471                  35,084                  25,139                  23,508                  20,814    
Loans receivable, net          2,121,399            2,150,463            2,141,929            1,967,820            1,922,785    
Bank-owned life insurance                43,268                  43,644                  43,363                  39,095                  38,847    
Intangible assets                21,453                  21,582                  21,789                  21,573                  22,423    
Premises and equipment                63,970                  64,430                  65,106                  64,705                  65,006    
Other assets                30,262                  30,281                  27,474                  30,531                  32,408    
   Total assets   $    2,622,998     $    2,540,734     $    2,542,157     $    2,374,448     $    2,311,849    
                       
Interest-bearing deposits   $    1,927,351     $    1,861,051     $    1,868,799     $    1,738,379     $    1,691,010    
Noninterest-bearing deposits              337,736                307,023                316,048                233,268                223,604    
FHLB advances                63,286                  85,637                  70,024                123,361                114,646    
Note payable                         -                             -                             -                      3,000                    3,000    
Other liabilities                11,743                  11,880                  13,797                  11,469                  15,627    
Subordinated debt                15,193                  15,168                  15,142                  15,118                  15,093    
   Total liabilities          2,355,309            2,280,759            2,283,810            2,124,595            2,062,980    
                       
   Total stockholders' equity              267,689                259,975                258,347                249,853                248,869    
                       
   Total liabilities and stockholders' equity   $    2,622,998     $    2,540,734     $    2,542,157     $    2,374,448     $    2,311,849    
                       
Equity to assets ratio     10.21 %     10.23 %     10.16 %     10.52 %     10.76 %  
                       
Common shares outstanding          9,035,232            9,126,625            9,127,390            9,128,290            9,206,783    
   Less: Restricted common shares not vested                25,410                  27,260                  28,025                  28,925                  24,900    
Common shares for book value determination          9,009,822            9,099,365            9,099,365            9,099,365            9,181,883    
                       
Book value per common share   $            29.71     $            28.57     $            28.39     $            27.46     $            27.10    
Closing market price                  30.44                    23.58                    24.30                    24.27                    38.36    
                       
Nonperforming asset data as of:    Dec. 31    Sep. 30,    June 30,    Mar. 31,    Dec. 31,  
      (dollars in thousands)      2020        2020        2020        2020        2019    
                       
Nonaccrual loans   $            8,330     $            8,775     $            8,657     $          11,428     $          10,419    
Accruing loans 90 days or more past due                         -                             -                             -                             -                               1    
   Total nonperforming loans                  8,330                    8,775                    8,657                  11,428                  10,420    
Other real estate owned (OREO)                  2,707                    2,466                    2,561                    3,401                    3,668    
Personal property repossessed                        44                             9                             9                          38                          26    
   Total nonperforming assets   $          11,081     $          11,250     $          11,227     $          14,867     $          14,114    
                       
Total nonperforming assets to total assets     0.42 %     0.44 %     0.44 %     0.63 %     0.61 %  
Total nonperforming loans to gross loans     0.39 %     0.40 %     0.40 %     0.57 %     0.54 %  
Allowance for loan losses to nonperforming loans     425.82 %     399.82 %     290.39 %     205.71 %     199.75 %  
Allowance for loan losses to gross loans     1.64 %     1.61 %     1.16 %     1.18 %     1.07 %  
                       
Performing troubled debt restructurings (1)   $            7,897     $            7,923     $            8,580     $          14,196     $          14,814    
                       
      (1) Nonperforming troubled debt restructurings are included with nonaccrual loans or accruing loans 90 days or more past due.
                       



   For the three-month period ended
Quarterly Summary Income Statement Data:    Dec. 31    Sep. 30,    June 30,    Mar. 31,    Dec. 31,  
      (dollars in thousands, except per share data)      2020      2020      2020      2020        2019  
                       
Interest income:                      
   Cash equivalents   $                  48   $                  41   $                  18   $                  33     $                  31  
   AFS securities and membership stock                      997                  1,024                  1,146                  1,218                    1,194  
   Loans receivable                26,826                25,907                26,099                24,969                  25,421  
      Total interest income                27,871                26,972                27,263                26,220                  26,646  
Interest expense:                      
   Deposits                  3,863                  4,390                  4,923                  6,135                    6,448  
   FHLB advances                      347                      380                      398                      439                        573  
   Note payable                         -                           -                          11                        31                          34  
   Subordinated debt                      134                      138                      151                      197                        214  
      Total interest expense                  4,344                  4,908                  5,483                  6,802                    7,269  
Net interest income                23,527                22,064                21,780                19,418                  19,377  
Provision for credit losses                      612                      774                  1,868                  2,850                        388  
Noninterest income:                      
   Deposit account charges and related fees                  1,360                  1,339                  1,087                  1,538                    1,632  
   Bank card interchange income                      836                      830                      954                      719                        651  
   Loan late charges                      138                      141                      157                      149                        121  
   Loan servicing fees                      368                      310                      248                    (285 )                      103  
   Other loan fees                      305                      327                      290                      370                        354  
   Net realized gains on sale of loans                  1,390                  1,206                      977                      178                        203  
   Earnings on bank owned life insurance                      974                      280                      266                      247                        253  
   Other noninterest income                      349                      508                      380                      313                        357  
      Total noninterest income                  5,720                  4,941                  4,359                  3,229                    3,674  
Noninterest expense:                      
   Compensation and benefits                  7,545                  7,720                  7,698                  7,521                    6,993  
   Occupancy and equipment, net                  1,866                  1,970                  1,887                  1,780                    1,769  
   Data processing expense                  1,175                  1,062                  2,084                      974                        878  
   Telecommunications expense                      308                      315                      314                      309                        320  
   Deposit insurance premiums                      218                      201                      155                         -                             -    
   Legal and professional fees                      236                      198                      318                      229                        239  
   Advertising                      219                      230                      391                      244                        283  
   Postage and office supplies                      195                      193                      219                      224                        178  
   Intangible amortization                      338                      380                      448                      441                        441  
   Foreclosed property expenses                        38                        50                      636                      282                          25  
   Provision for off-balance sheet credit exposure                      388                      226                      132                      300                        362  
   Other noninterest expense                      908                      953                  1,226                  1,265                    1,537  
      Total noninterest expense                13,434                13,498                15,508                13,569                  13,025  
      Net income before income taxes                15,201                12,733                  8,763                  6,228                    9,638  
Income taxes                  3,153                  2,747                  1,861                  1,129                    1,921  
      Net income                12,048                  9,986                  6,902                  5,099                    7,717  
Less: Distributed and undistributed earnings allocated                    
         to participating securities                        34                        30                         -                           -                             -    
      Net income available to common shareholders   $          12,014   $            9,956   $            6,902   $            5,099     $            7,717  
                       
Basic earnings per common share   $              1.33   $              1.09   $              0.76   $              0.55     $              0.84  
Diluted earnings per common share                     1.32                     1.09                     0.76                     0.55                       0.84  
Dividends per common share                     0.15                     0.15                     0.15                     0.15                       0.15  
Average common shares outstanding:                      
   Basic          9,064,000          9,100,000          9,128,000          9,197,000            9,202,000  
   Diluted          9,067,000          9,102,000          9,130,000          9,205,000            9,213,000  
                       



   For the three-month period ended
Quarterly Average Balance Sheet Data:    Dec. 31    Sep. 30,    June 30,    Mar. 31,    Dec. 31,  
      (dollars in thousands)      2020        2020        2020        2020        2019    
                       
Interest-bearing cash equivalents   $          40,915     $          19,768     $          10,380     $            7,363     $            6,322    
AFS securities and membership stock              184,828                181,535                188,497                184,389                183,748    
Loans receivable, gross          2,177,989            2,162,125            2,127,181            1,950,887            1,903,230    
   Total interest-earning assets          2,403,732            2,363,428            2,326,058            2,142,639            2,093,300    
Other assets              170,158                174,574                194,651                180,981                184,028    
   Total assets   $    2,573,890     $    2,538,002     $    2,520,709     $    2,323,620     $    2,277,328    
                       
Interest-bearing deposits   $    1,886,883     $    1,865,636     $    1,838,606     $    1,729,327     $    1,674,198    
FHLB advances                69,991                  70,272                  83,130                  83,916                  99,728    
Note payable                         -                             -                      1,187                    3,000                    3,000    
Subordinated debt                15,180                  15,155                  15,130                  15,105                  15,080    
   Total interest-bearing liabilities          1,972,054            1,951,063            1,938,053            1,831,348            1,792,006    
Noninterest-bearing deposits              325,091                316,996                311,555                223,865                222,187    
Other noninterest-bearing liabilities                13,021                  14,673                  15,937                  17,634                  17,533    
   Total liabilities          2,310,166            2,282,732            2,265,545            2,072,847            2,031,726    
                       
   Total stockholders' equity              263,724                255,270                255,164                250,773                245,602    
                       
   Total liabilities and stockholders' equity   $    2,573,890     $    2,538,002     $    2,520,709     $    2,323,620     $    2,277,328    
                       
Return on average assets     1.87 %     1.57 %     1.10 %     0.88 %     1.36 %  
Return on average common stockholders' equity     18.3 %     15.6 %     10.8 %     8.1 %     12.6 %  
                       
Net interest margin     3.92 %     3.73 %     3.75 %     3.63 %     3.70 %  
Net interest spread     3.76 %     3.55 %     3.56 %     3.40 %     3.47 %  
                       
Efficiency ratio     45.9 %     50.0 %     59.3 %     59.9 %     56.5 %  

 

   As of December 31, 2020    As of September 30, 2020  
Loan portfolio balances and CARES Act modifications  Balance   Payment   Interest-only   Payment   Interest-only  
      (dollars in thousands)  Outstanding   Deferrals   Modifications   Deferrals   Modifications  
                     
1- to 4-family residential loans $                438,156   $                        -     $                     138   $                 1,171   $                 8,805  
Multifamily residential loans                    198,534                              -                       10,581                              -                       12,278  
      Total residential loans                    636,690                              -                       10,719                       1,171                     21,083  
1- to 4-family owner-occupied construction loans                       23,380                              -                                 -                                -                                -    
1- to 4-family speculative construction loans                       10,567                              -                                -                                -                                -    
Multifamily construction loans                       50,495                              -                                -                                -                                -    
Other construction loans                       28,552                              -                                -                         4,367                              -    
      Total construction loan balances drawn                    112,994                              -                                -                         4,367                              -    
Agricultural real estate loans                    185,811                              -                                -                         1,967                       1,415  
Loans for vacant land - developed, undeveloped, and other purposes                       55,117                              -                                -                                -                         1,203  
Owner-occupied commercial real estate loans to:                    
Churches and nonprofits                       21,626                              -                             634                              -                         1,449  
Non-professional services                       15,507                              -                                -                                -                         2,106  
Retail                       26,234                              -                                -                                -                         1,257  
Automobile dealerships                       18,294                              -                                -                                -                                -    
Healthcare providers                         7,715                              -                                -                                -                             330  
Restaurants                       46,208                              -                                -                                -                         5,694  
Convenience stores                       20,285                              -                                -                                -                          1,303  
Automotive services                         5,141                              -                                -                                -                             244  
Manufacturing                       12,492                              -                                -                                -                         7,262  
Professional services                       12,734                              -                                -                                -                             354  
Warehouse/distribution                         4,718                              -                                -                                -                                -    
Grocery                         5,443                              -                                -                                -                               26  
Other                       46,430                              -                             816                              -                             551  
Total owner-occupied commercial real estate loans                    242,827                              -                         1,450                              -                       20,576  
Non-owner-occupied commercial real estate loans to:                    
Care facilities                       35,302                              -                                -                                -                                 -    
Non-professional services                       12,243                              -                                -                                -                         3,864  
Retail                       27,206                              -                                -                             545                           525  
Healthcare providers                       14,279                              -                                -                                -                             442  
Restaurants                       46,631                              -                                -                                -                             413  
Convenience stores                       14,928                              -                                -                                -                                -    
Automotive services                         5,401                              -                                -                                -                                -    
Hotels                       85,222                              -                       28,092                              -                         3,495  
Manufacturing                         4,998                              -                                -                                -                                -    
Storage units                       14,154                              -                                -                                -                             404  
Professional services                         8,732                              -                                -                                -                             460  
Multi-tenant retail                       73,026                              -                                -                                -                       14,872  
Warehouse/distribution                       25,847                              -                                -                                -                         2,953  
Other                       50,840                              -                                -                                -                         4,218  
Total non-owner-occupied commercial real estate loans                    418,809                              -                       28,092                           545                     31,646  
      Total commercial real estate                    902,564                              -                       29,542                       2,512                     54,840  



   As of December 31, 2020    As of September 30, 2020  
Loan portfolio balances and CARES Act modifications  Balance   Payment   Interest-only   Payment   Interest-only  
      (continued, dollars in thousands)  Outstanding   Deferrals   Modifications   Deferrals   Modifications  
                     
Home equity lines of credit                       40,729                              -                                -                                -                                -     
Deposit-secured loans                         5,001                              -                                -                                -                                  1  
All other consumer loans                       33,860                              -                                -                               83                             92  
      Total consumer loans                       79,590                              -                                -                               83                             93  
Agricultural production and equipment loans                       99,281                              -                                -                             351                             84  
Loans to municipalities or other public units                         9,684                              -                                -                                -                                -    
Commercial and industrial loans to:                                -                                -                                -                                -                                -    
Forestry, fishing, and hunting                       13,890                              -                                -                                -                             364  
Construction                       24,788                              -                                -                                -                                -    
Finance and insurance                       56,040                              -                                -                                -                               20  
Real estate rental and leasing                       20,707                              -                                -                                -                               54  
Healthcare and social assistance                       29,909                              -                                -                                -                                -    
Accommodations and food services                       30,318                              -                                -                                -                             707  
Manufacturing                       11,828                              -                                -                                -                         3,097  
Retail trade                       41,655                              -                                -                                -                             874  
Transportation and warehousing                       33,601                              -                               11                              -                         3,071  
Professional services                         6,611                              -                                -                                -                               12  
Administrative support and waste management                         9,892                              -                                -                                -                                -    
Arts, entertainment, and recreation                         3,862                              -                                -                             585                             27  
Other commercial loans                       35,279                              -                                -                                  8                           238  
Total commercial and industrial loans                    318,380                              -                               11                           593                       8,464  
      Total commercial loans                    427,345                              -                               11                           944                       8,548  
         Total gross loans receivable, excluding deferred loan fees $            2,159,183   $                        -     $               40,272   $                 9,077   $               84,564  

 


Matt Funke
573-778-1800

Primary Logo

Source: Southern Missouri Bancorp, Inc.