Southern Missouri Bancorp Reports Preliminary Results for First Quarter of Fiscal 2021; Declares Quarterly Dividend of $0.15 per Common Share; Conference Call Scheduled for Tuesday, October 27, at 3:30 PM Central Time

Rhea-AI Summary

Southern Missouri Bancorp, Inc. (SMBC) reported a preliminary net income of $10.0 million for Q1 FY2021, a 27.6% increase from the previous year. Earnings per share rose to $1.09, up 28.2%. This growth was driven by higher net interest and noninterest income, alongside a decrease in loan loss provisions. However, deposit balances fell by $16.8 million, and the net interest margin decreased to 3.73%. Nonperforming assets remained stable at 0.44% of total assets. The company declared a cash dividend of $0.15 for Q4.

Positive

• Q1 FY2021 net income increased by $2.2 million, or 27.6%.
• Earnings per share (diluted) rose to $1.09, up 28.2% YoY.
• Noninterest income surged 41.6% compared to Q1 FY2020.
• Provision for loan losses decreased by $122,000, or 13.6% YoY.
• Retained earnings increased, supporting shareholder equity.

Negative

• Deposit balances decreased by $16.8 million, or 0.8%.
• Net interest margin fell to 3.73% from 3.81% YoY.
• Allowance for credit losses increased by $9.5 million due to new accounting standards.

Poplar Bluff, Missouri, Oct. 26, 2020 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the first quarter of fiscal 2021 of $10.0 million, an increase of $2.2 million, or 27.6%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, and a decrease in provision for loan losses, partially offset by increases in noninterest expense and provision for income taxes. Preliminary net income was $1.09 per fully diluted common share for the first quarter of fiscal 2021, an increase of $.24 as compared to the $.85 per fully diluted common share reported for the same period of the prior fiscal year.

Highlights for the first quarter of fiscal 2021:

• Annualized return on average assets was 1.57%, while annualized return on average common equity was 15.6%, as compared to 1.40% and 13.0%, respectively, in the same quarter a year ago, and 1.10% and 10.8%, respectively, in the fourth quarter of fiscal 2020, the linked quarter.
   
• Earnings per common share (diluted) were $1.09, up $.24, or 28.2%, as compared to the same quarter a year ago, and up $.33, or 43.4%, from the fourth quarter of fiscal 2020, the linked quarter.
   
• Provision for loan losses was $774,000, a decrease of $122,000, or 13.6%, as compared to the same period of the prior year, and down $1.1 million, or 58.6%, as compared to the fourth quarter of fiscal 2020, the linked quarter. Nonperforming assets were $11.3 million, or 0.44% of total assets, at September 30, 2020, as compared to $11.2 million, or 0.44% of total assets, at June 30, 2020, and $17.9 million, or 0.80% of total assets, at September 30, 2019, one year prior.
   
• In what is usually the Company’s strongest quarter of the year for loan growth, net loan growth for the first quarter of fiscal 2021 was $8.5 million, resulting from a relatively small increase of $18.0 million in gross loan balances receivable, partially offset by an increase of $9.5 million in our allowance for credit losses, as the Company adopted ASU 2016-13, Financial Instruments – Credit Losses, effective with the beginning of our 2021 fiscal year. See further discussion below.
   
• Deposit balances decreased $16.8 million in the first quarter of fiscal 2021. Typically, the first quarter of the fiscal year is the weakest for the Company’s deposit growth, and this weakness was somewhat more pronounced this year, as depositors had little appetite for certificates of deposit, and growth in nonmaturity balances slowed after significant increases in the final two quarters of the prior fiscal year.
   
• Net interest margin for the first quarter of fiscal 2021 was 3.73%, down from the 3.81% reported for the year ago period, and down from the 3.75% figure reported for the fourth quarter of fiscal 2020, the linked quarter. Discount accretion on acquired loan portfolios was slightly lower in the current quarter as compared to the linked quarter, and down more significantly as compared to the year ago period. Additionally, as compared to the linked and year-ago quarters, the Company noted reductions in interest income resulting from the resolution of loans that had been previously classified as nonaccrual.
   
• Noninterest income was up 41.6% for the first quarter of fiscal 2021, as compared to the year ago period, and was up 13.4% as compared to the fourth quarter of fiscal 2020, the linked quarter. The Company continues to realize significantly increased gains on sales of residential mortgage loans originated for that purpose.
   
• Noninterest expense was up 9.3% for the first quarter of fiscal 2021, as compared to the year ago period, and was down 13.0% from the fourth quarter of fiscal 2020, the linked quarter. The linked quarter included significant non-recurring charges related to the May 2020 acquisition of Central Federal Bancshares and its subsidiary, the Central Federal Savings and Loan Association of Rolla (the “Central Federal Acquisition”).  

Dividend Declared:

The Board of Directors, on October 20, 2020, declared a quarterly cash dividend on common stock of $0.15, payable November 30, 2020, to stockholders of record at the close of business on November 13, 2020, marking the 106^th consecutive quarterly dividend since the inception of the Company. 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.

Share Repurchase Program:

In November 2018, the Company announced a share repurchase plan under which it intended to repurchase up to 450,000, or 4.8% of the then-outstanding 9.3 million common shares. In March 2020, after having repurchased approximately 218,000 shares, the Company temporarily suspended activity under the repurchase program, as a result of the uncertainty triggered by the COVID-19 pandemic and its effect on the U.S. economy. On October 20, 2020, the Board of Directors approved the resumption of activity under the program. The shares will be purchased at prevailing market prices in the open market or in privately negotiated transactions, subject to availability and general market conditions. Repurchased shares will be held as treasury shares to be used for general corporate purposes.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Tuesday, October 27, 2020, 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 November 9, 2020. 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 10149525.

Balance Sheet Summary:

The Company’s balance sheet was slightly lower at September 30, 2020, as compared to June 30, 2020, with total assets of $2.5 billion reflecting a decrease of $1.4 million, or 0.1%. Growth in net loan balances, accrued interest receivable, and other assets was offset by reductions in cash and cash equivalents, and available-for-sale (“AFS”) securities.

Cash equivalents and time deposits were a combined $42.9 million at September 30, 2020, a decrease of $12.4 million, or 22.4%, as compared to June 30, 2020. AFS securities were $175.5 million at September 30, 2020, a decrease of $1.0 million, or 0.6%, as compared to June 30, 2020.

Loans, net of the allowance for credit losses (ACL), were $2.2 billion at September 30, 2020, an increase of $8.5 million, or 0.4%, as compared to June 30, 2020. Gross loans increased by $18.0 million, or 0.8%, during the first three months of the fiscal year, while the ACL at September 30, 2020, reflected an increase of $9.5 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 an $8.9 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 quarter of fiscal 2021 increased the ACL by an additional $612,000, as compared to July 1, 2020. The increase in loan balances in the portfolio was primarily attributable to commercial loans and residential real estate loans, partially offset by modest declines in commercial real estate loans and drawn construction loan balances. Residential real estate loans increased on growth in 1- to 4-family residential lending, partially offset by a modest decline in multifamily real estate loans. Commercial loan balances increased primarily as a result of seasonal agricultural loan draws, partially offset by a reduction in commercial and industrial loan types, and in total, commercial loan balances remained relatively high compared to recent periods as a result of the Small Business Administration’s Paycheck Protection Program (PPP) loans, which totaled $133.7 million at September 30, 2020, as compared to $132.3 million at June 30, 2020. In early October, the Company began submitting applications to the SBA for forgiveness of the loans originated under the PPP program but, to date, relatively few have been submitted, and only a small percentage of those submitted have been processed by the SBA. Loans anticipated to fund in the next 90 days stood at $122.7 million at September 30, 2020, as compared to $86.6 million at June 30, 2020, and $101.7 million at September 30, 2019.

Nonperforming loans were $8.8 million, or 0.40% of gross loans, at September 30, 2020, as compared to $8.7 million, or 0.40% of gross loans at June 30, 2020, and $14.0 million, or 0.74% of gross loans at September 30, 2019. Nonperforming assets were $11.3 million, or 0.44% of total assets, at September 30, 2020, as compared to $11.2 million, or 0.44% of total assets, at June 30, 2020, and $17.9 million, or 0.80% of total assets, at September 30, 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 September 30, 2020, totaled $34.6 million, representing 1.59% of gross loans and 394.9% 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 $20.7 million, or 1.09% of gross loans and 147.7% of nonperforming loans, at September 30, 2019. The ACL at September 30, 2020, also represented 1.69% of gross loans excluding PPP loans. The Company has estimated its credit losses as of September 30, 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.

As of September 30, 2020, loans for which payment deferrals and interest-only payment modifications remained in place included approximately 250 loans with balances totaling $93.6 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. These are loans that were otherwise current and performing prior to the COVID-19 pandemic, but for which borrowers anticipated difficulties due to impact of the pandemic. Approximately $67.2 million in loans which remain under a payment deferral or interest-only modification at September 30, 2020, are scheduled to complete their deferral or modification period by October 31, 2020. Generally, deferrals were granted for three-month periods, while interest-only modifications were for six-month periods. Some borrowers were granted additional periods of deferral or interest-only modifications. These deferrals and modifications were made in compliance with provisions of the CARES Act that allow financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDRs), and the Company did not account for these loans as TDRs. 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 as various relief provisions expire, or as communities where our borrowers operate experience increases in COVID-19 cases and reductions in business activity or employee attendance, or may be required by local authorities to restrict activity.

Total liabilities were $2.3 billion at September 30, 2020, a decrease of $3.1 million, or 0.1%, as compared to June 30, 2020.

Deposits were $2.2 billion at September 30, 2020, a decrease of $16.8 million, or 0.8%, as compared to June 30, 2020. This decrease reflected a decrease in time deposits, partially offset by an increase in nonmaturity deposits, and was inclusive of decreases of $16.9 million in public unit funds and $2.3 million in brokered time deposits. Public unit balances were $288.3 million at September 30, 2020, as public unit depositors partially reversed growth noted over recent quarters. Brokered time deposits were $21.0 million, and brokered money market deposits were $20.0 million, at September 30, 2020. In total, deposit balances saw decreases in certificates of deposit and non-interest bearing transaction accounts, partially offset by increases in savings accounts, interest-bearing transaction accounts, and money market deposit accounts. The average loan-to-deposit ratio for the first quarter of fiscal 2021 was 99.1%, as compared to 99.2% for the same period of the prior fiscal year.

FHLB advances were $85.6 million at September 30, 2020, an increase of $15.6 million, or 22.3%, as compared to June 30, 2020, with the increase primarily attributable to the Company’s use of overnight borrowings to fund increases in loans and outflows in deposits. 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. Currently, the Company expects to process forgiveness applications for the majority of our outstanding PPP loans in the next several months, and will then assess the regulatory capital and liquidity considerations of the potential use of the PPPLF for any balances not forgiven and expected to remain outstanding for an additional 1.5 years or more.

The Company’s stockholders’ equity was $260.0 million at September 30, 2020, an increase of $1.6 million, or 0.6%, 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.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended September 30, 2020, was $22.1 million, an increase of $2.5 million, or 12.8%, as compared to the same period of the prior fiscal year. The increase was attributable to a 15.2% increase in the average balance of interest-earning assets, partially offset by a decrease in net interest margin to 3.73% in the current three-month period, from 3.81% in the same period a year ago.

Loan discount accretion and deposit premium amortization related to the Company’s August 2014 acquisition of Peoples Bank of the Ozarks (Peoples), the June 2017 acquisition of Capaha Bank (Capaha), the February 2018 acquisition of Southern Missouri Bank of Marshfield (SMB-Marshfield), the Gideon Acquisition, and the Central Federal Acquisition resulted in $339,000 in net interest income for the three-month period ended September 30, 2020, as compared to $508,000 in net interest income for the same period a year ago. The decline is attributable to expected reductions in discount accretion as additional time has elapsed since the loan portfolios were acquired and balances have declined, partially offset by the recent Central Federal acquisition, although the acquired loan book and resulting discount accretion from that acquisition is relatively small. 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 credit impaired loans. Combined, these components of net interest income contributed six basis points to net interest margin in the three-month period ended September 30, 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 June 30, 2020, when net interest margin was 3.75%. Additionally, in the year-ago and linked periods, the Company recognized additional 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 period. This recognition of $414,000 in interest income in the year-ago period, and $159,000 in the linked period, contributed eight and three basis points, respectively, to net interest margin in the year-ago and linked periods.

The provision for loan losses for the three-month period ended September 30, 2020, was $774,000, as compared to $896,000 in the same period of the prior fiscal year. The decrease as compared to the same quarter a year ago was attributable primarily to the current quarter’s relatively low loan growth and stable credit quality indicators quarter-over-quarter. While uncertainty remains regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, 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 loan losses in the current three-month period represented a charge of 0.14% (annualized), while the Company recorded net charge offs during the period of 0.03% (annualized). During the same period of the prior fiscal year, the provision for loan losses as a percentage of average loans outstanding represented a charge of 0.19% (annualized), while the Company recorded net charge offs of 0.02% (annualized).

The Company’s noninterest income for the three-month period ended September 30, 2020, was $4.9 million, an increase of $1.5 million, or 41.6%, 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, other income, loan servicing fees, other loans fees, and bank card interchange income were partially offset by decreases in deposit account service charges. Gains realized on the sale of residential real estate loans originated for that purpose increased as origination of these loans more than tripled, remaining consistent with the linked quarter, while pricing improved slightly. Our portfolio of serviced loans increased by 16% during the quarter, which increased servicing income through fees received and the recognition of mortgage servicing rights at origination. Other income included a $187,000 non-recurring benefit related to a broker-dealer agreement to provide wealth management services in a new market area, with no comparable item in the year-ago period. Bank card interchange income increased as a result of an 8% increase in the number of bank card transactions and a 17% increase in bank card dollar volume.

Noninterest expense for the three-month period ended September 30, 2020, was $13.5 million, an increase of $1.1 million, or 9.3%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, provisioning for off-balance sheet credit exposure, deposit insurance premiums, data processing expenses, and occupancy, partially offset by a reduction in other expenses, which included a variety of relatively small items that trended lower, including the costs of providing rewards checking products, employee travel expenses, and customer entertainment. Included in compensation expense was $150,000 in non-recurring expense related to the hiring of an investment representative for the Company’s wealth management group; otherwise, the increase over 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 early in the quarter. Data processing and occupancy expenses also increased in part due to the new facilities, while data processing expenses have also been higher since the implementation of a new data processing environment in the first half of fiscal 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. The efficiency ratio for the three-month period ended September 30, 2020, was 50.0%, as compared to 53.6% in the same period of the prior fiscal year, with the improvement attributable primarily to the current period’s increase in noninterest income.

The income tax provision for the three-month period ended September 30, 2020, was $2.7 million, an increase of 39.0% 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 21.6%, as compared to 20.2% in the same period a year ago. While the Company generated higher levels of pre-tax income, investments in tax-advantaged assets were modestly reduced, resulting in a higher effective tax rate.

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:		Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,
(dollars in thousands, except per share data)			2020				2020				2020				2019				2019
Cash equivalents and time deposits		$	42,850			$	55,219			$	57,078			$	42,015			$	32,394
Available for sale (AFS) securities			175,528				176,524				180,592				175,843				171,006
FHLB/FRB membership stock			11,956				10,753				13,054				12,522				12,083
Loans receivable, gross			2,185,113				2,167,067				1,991,328				1,943,599				1,895,207
Allowance for loan losses			34,650				25,138				23,508				20,814				20,710
Loans receivable, net			2,150,463				2,141,929				1,967,820				1,922,785				1,874,497
Bank-owned life insurance			43,644				43,363				39,095				38,847				38,593
Intangible assets			21,582				21,789				21,573				22,423				22,889
Premises and equipment			64,430				65,106				64,705				65,006				65,480
Other assets			30,281				27,474				30,531				32,408				34,265
Total assets		$	2,540,734			$	2,542,157			$	2,374,448			$	2,311,849			$	2,251,207
Interest-bearing deposits		$	1,861,051			$	1,868,799			$	1,738,379			$	1,691,010			$	1,663,874
Noninterest-bearing deposits			307,023				316,048				233,268				223,604				208,646
FHLB advances			85,637				70,024				123,361				114,646				103,327
Note payable			-				-				3,000				3,000				3,000
Other liabilities			11,880				13,797				11,469				15,627				15,030
Subordinated debt			15,168				15,142				15,118				15,093				15,068
Total liabilities			2,280,759				2,283,810				2,124,595				2,062,980				2,008,945
Total stockholders' equity			259,975				258,347				249,853				248,869				242,262
Total liabilities and stockholders' equity		$	2,540,734			$	2,542,157			$	2,374,448			$	2,311,849			$	2,251,207
Equity to assets ratio			10.23	%			10.16	%			10.52	%			10.76	%			10.76	%
Common shares outstanding			9,126,625				9,127,390				9,128,290				9,206,783				9,201,783
Less: Restricted common shares not vested			27,260				28,025				28,925				24,900				25,975
Common shares for book value determination			9,099,365				9,099,365				9,099,365				9,181,883				9,175,808
Book value per common share		$	28.57			$	28.39			$	27.46			$	27.10			$	26.40
Closing market price			23.58				24.30				24.27				38.36				36.43
Nonperforming asset data as of:		Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,
(dollars in thousands)			2020				2020				2020				2019				2019
Nonaccrual loans		$	8,775			$	8,657			$	11,428			$	10,419			$	14,021
Accruing loans 90 days or more past due			-				-				-				1				-
Total nonperforming loans			8,775				8,657				11,428				10,420				14,021
Other real estate owned (OREO)			2,466				2,561				3,401				3,668				3,820
Personal property repossessed			9				9				38				26				71
Total nonperforming assets		$	11,250			$	11,227			$	14,867			$	14,114			$	17,912
Total nonperforming assets to total assets			0.44	%			0.44	%			0.63	%			0.61	%			0.80	%
Total nonperforming loans to gross loans			0.40	%			0.40	%			0.57	%			0.54	%			0.74	%
Allowance for loan losses to nonperforming loans			394.87	%			290.38	%			205.71	%			199.75	%			147.71	%
Allowance for loan losses to gross loans			1.59	%			1.16	%			1.18	%			1.07	%			1.09	%
Performing troubled debt restructurings (1)		$	7,923			$	8,580			$	14,196			$	14,814			$	12,432
(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 Average Balance Sheet Data:		Sep. 30,			June 30,			Mar. 31,			Dec. 31,			Sep. 30,
(dollars in thousands)		2020			2020			2020			2019			2019
Interest-bearing cash equivalents		$	19,768		$	10,380		$	7,363		$	6,322		$	7,001
AFS securities and membership stock			181,535			188,497			184,389			183,748			179,623
Loans receivable, gross			2,162,125			2,127,181			1,950,887			1,903,230			1,865,344
Total interest-earning assets			2,363,428			2,326,058			2,142,639			2,093,300			2,051,968
Other assets			174,574			194,651			180,981			184,028			184,415
Total assets		$	2,538,002		$	2,520,709		$	2,323,620		$	2,277,328		$	2,236,383
Interest-bearing deposits		$	1,865,637		$	1,838,606		$	1,729,327		$	1,674,198		$	1,660,994
Securities sold under agreements to repurchase			-			-			-			-			329
FHLB advances			70,272			83,130			83,916			99,728			82,192
Note payable			-			1,187			3,000			3,000			3,000
Subordinated debt			15,155			15,130			15,105			15,080			15,055
Total interest-bearing liabilities			1,951,064			1,938,053			1,831,348			1,792,006			1,761,570
Noninterest-bearing deposits			316,996			311,555			223,865			222,187			218,755
Other noninterest-bearing liabilities			14,672			15,937			17,634			17,533			16,014
Total liabilities			2,282,732			2,265,545			2,072,847			2,031,726			1,996,339
Total stockholders' equity			255,270			255,164			250,773			245,602			240,044
Total liabilities and stockholders' equity		$	2,538,002		$	2,520,709		$	2,323,620		$	2,277,328		$	2,236,383

	For the three-month period ended
Quarterly Summary Income Statement Data:		Sep. 30,				June 30,				Mar. 31,				Dec. 31,				Sep. 30,
(dollars in thousands, except per share data)			2020				2020				2020				2019				2019
Interest income:
Cash equivalents		$	41			$	18			$	33			$	31			$	46
AFS securities and membership stock			1,024				1,146				1,218				1,194				1,236
Loans receivable			25,907				26,099				24,969				25,421				25,640
Total interest income			26,972				27,263				26,220				26,646				26,922
Interest expense:
Deposits			4,390				4,923				6,135				6,448				6,578
FHLB advances			380				398				439				573				522
Note payable			-				11				31				34				37
Subordinated debt			138				151				197				214				225
Total interest expense			4,908				5,483				6,802				7,269				7,362
Net interest income			22,064				21,780				19,418				19,377				19,560
Provision for loan losses			774				1,868				2,850				388				896
Noninterest income:
Deposit account charges and related fees			1,339				1,087				1,538				1,632				1,423
Bank card interchange income			830				954				719				651				751
Loan late charges			141				157				149				121				146
Loan servicing fees			310				248				(285	)			103				130
Other loan fees			327				290				370				354				243
Net realized gains on sale of loans			1,206				977				178				203				273
Earnings on bank owned life insurance			280				266				247				253				254
Other noninterest income			508				380				313				357				270
Total noninterest income			4,941				4,359				3,229				3,674				3,490
Noninterest expense:
Compensation and benefits			7,720				7,698				7,521				6,993				7,125
Occupancy and equipment, net			1,970				1,887				1,780				1,769				1,852
Data processing expense			1,062				2,084				974				878				885
Telecommunications expense			315				314				309				320				320
Deposit insurance premiums			201				155				-				-				-
Legal and professional fees			198				318				229				239				184
Advertising			230				391				244				283				309
Postage and office supplies			193				219				224				178				183
Intangible amortization			380				448				441				441				441
Foreclosed property expenses			50				636				282				25				48
Provision for off-balance sheet credit exposure			226				132				300				362				(146	)
Other noninterest expense			953				1,226				1,265				1,537				1,149
Total noninterest expense			13,498				15,508				13,569				13,025				12,350
Net income before income taxes			12,733				8,763				6,228				9,638				9,804
Income taxes			2,747				1,861				1,129				1,921				1,976
Net income			9,986				6,902				5,099				7,717				7,828
Less: distributed earnings to participating securities			4				-				-				-				-
Less: undistributed earnings to participating securities			26				-				-				-				-
Net income available to common shareholders		$	9,956			$	6,902			$	5,099			$	7,717			$	7,828
Basic earnings per common share		$	1.09			$	0.76			$	0.55			$	0.84			$	0.85
Diluted earnings per common share			1.09				0.76				0.55				0.84				0.85
Dividends per common share			0.15				0.15				0.15				0.15				0.15
Average common shares outstanding:
Basic			9,100,000				9,128,000				9,197,000				9,202,000				9,232,000
Diluted			9,101,000				9,130,000				9,205,000				9,213,000				9,244,000
Return on average assets			1.57	%			1.10	%			0.88	%			1.36	%			1.40	%
Return on average common stockholders' equity			15.6	%			10.8	%			8.1	%			12.6	%			13.0	%
Net interest margin			3.73	%			3.75	%			3.63	%			3.70	%			3.81	%
Net interest spread			3.55	%			3.56	%			3.40	%			3.47	%			3.58	%
Efficiency ratio			50.0	%			59.3	%			59.9	%			56.5	%			53.6	%

	As of September 30, 2020									As of June 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	$	438,496		$	1,171		$	8,805		$	13,385		$	21,194
Multifamily residential loans		196,997			-			12,278			1,912			28,101
Total residential loans		635,493			1,171			21,083			15,297			49,295
1- to 4-family owner-occupied construction loans		25,053			-			-			-			-
1- to 4-family speculative construction loans		11,961			-			-			-			-
Multifamily construction loans		39,102			-			-			-			31
Other construction loans		30,229			4,367			-			4,367			290
Total construction loan balances drawn		106,345			4,367			-			4,367			321
Agricultural real estate loans		182,602			1,967			1,415			2,803			5,537
Loans for vacant land - developed, undeveloped, and other purposes		58,015			-			1,203			106			4,196
Owner-occupied commercial real estate loans to:
Churches and nonprofits		19,900			-			1,449			-			4,213
Non-professional services		16,826			-			2,106			333			3,160
Retail		25,337			-			1,257			3,285			3,960
Automobile dealerships		21,544			-			-			-			3,977
Healthcare providers		7,869			-			330			-			334
Restaurants		46,161			-			5,694			22,988			10,745
Convenience stores		22,550			-			1,303			-			14,817
Automotive services		7,428			-			244			-			1,509
Manufacturing		18,669			-			7,262			4,938			3,140
Professional services		14,113			-			354			248			719
Warehouse/distribution		4,516			-			-			485			-
Grocery		5,548			-			26			-			26
Other		21,813			-			551			-			2,417
Total owner-occupied commercial real estate loans		232,274			-			20,576			32,277			49,017
Non-owner-occupied commercial real estate loans to:
Care facilities		33,246			-			-			-			15,943
Non-professional services		14,442			-			3,864			-			3,864
Retail		33,471			545			525			3,125			1,537
Healthcare providers		19,633			-			442			-			1,489
Restaurants		47,875			-			413			17,418			5,839
Convenience stores		8,983			-			-			-			1,285
Automotive services		7,173			-			-			-			-
Hotels		80,947			-			3,495			39,622			26,092
Manufacturing		5,170			-			-			-			2,011
Storage units		14,210			-			404			-			3,711
Professional services		12,084			-			460			-			723
Multi-tenant retail		77,428			-			14,872			21,817			35,791
Warehouse/distribution		26,146			-			2,953			141			3,809
Other		30,927			-			4,218			-			8,055
Total non-owner-occupied commercial real estate loans		411,735			545			31,646			82,123			110,149
Total commercial real estate		884,626			2,512			54,840			117,309			168,899

	As of September 30, 2020									As of June 30, 2020
Loan portfolio balances and CARES Act modifications, continued	Balance			Payment			Interest-only			Payment			Interest-only
(dollars in thousands)	Outstanding			Deferrals			Modifications			Deferrals			Modifications
Home equity lines of credit		42,523			-			-			91			-
Deposit-secured loans		4,803			-			1			45			1
All other consumer loans		33,580			83			92			1,319			199
Total consumer loans		80,906			83			93			1,455			200
Agricultural production and equipment loans		121,298			351			84			400			586
Loans to municipalities or other public units		10,087			-			-			-			-
Commercial and industrial loans to:		-			-			-
Forestry, fishing, and hunting		14,621			-			364			50			612
Construction		29,100			-			-			125			148
Finance and insurance		49,984			-			20			-			20
Real estate rental and leasing		27,198			-			54			-			1,299
Healthcare and social assistance		38,230			-			-			-			1,576
Accommodations and food services		31,772			-			707			175			2,595
Manufacturing		15,801			-			3,097			-			3,271
Retail trade		46,488			-			874			1,189			1,512
Transportation and warehousing		37,787			-			3,071			194			5,636
Professional services		8,762			-			12			-			12
Administrative support and waste management		9,164			-			-			-			1,962
Arts, entertainment, and recreation		4,274			585			27			732			27
Other commercial loans		37,016			8			238			179			741
Total commercial and industrial loans		350,197			593			8,464			2,644			19,411
Total commercial loans		481,582			944			8,548			3,044			19,997
Total gross loans receivable, excluding deferred loan fees	$	2,188,952		$	9,077		$	84,564		$	141,472		$	238,712

 

FAQ

What was Southern Missouri Bancorp's net income for Q1 FY2021?

Southern Missouri Bancorp reported a net income of $10.0 million for Q1 FY2021.

How did earnings per share change for SMBC in Q1 FY2021?

Earnings per share for SMBC rose to $1.09 in Q1 FY2021, an increase of 28.2% from the previous year.

What was the dividend declared by Southern Missouri Bancorp?

The Board declared a cash dividend of $0.15 per share, payable on November 30, 2020.

What is the current net interest margin for Southern Missouri Bancorp?

The net interest margin for Q1 FY2021 is 3.73%, down from 3.81% in the previous year.

How did the provision for loan losses change for SMBC?

The provision for loan losses decreased by $122,000, or 13.6%, compared to Q1 FY2020.