SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY FOURTH QUARTER, FISCAL 2016 RESULTS; INCREASES QUARTERLY DIVIDEND TO $0.10 PER COMMON SHARE; SCHEDULES CONFERENCE CALL TO DISCUSS RESULTS FOR TUESDAY, JULY 26, AT 3:30PM CENTRAL TIME
Poplar Bluff, July 25, 2016 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. ("Company") (NASDAQ: SMBC), the parent corporation of Southern Bank ("Bank"), today announced preliminary net income available to common stockholders for the fourth quarter of fiscal 2016 of $3.7 million, an increase of $167,000, or 4.8%, as compared to the same period of the prior fiscal year. The increase was attributable to increased net interest income and noninterest income, a reduction in provision for income taxes, and the elimination of preferred dividends as a result of the October 2015 preferred share repurchase, partially offset by higher noninterest expenses and higher provision for loan losses. Preliminary net income available to common stockholders was $.49 per fully diluted common share for the fourth quarter of fiscal 2016, an increase of $0.02, or 4.3%, as compared to the same period of the prior fiscal year. For fiscal 2016, preliminary net income available to common stockholders was reported at $14.8 million, an increase of $1.3 million, or 9.6%, as compared to the prior fiscal year. Per fully-diluted common share, preliminary net income available to common stockholders was $1.98 for fiscal 2016, an increase of $0.19, or 10.6%, as compared to the prior fiscal year.
Highlights for the fourth quarter of fiscal 2016:
- Earnings per common share (diluted) were $.49, up $.02, or 4.3%, as compared to $.47 earned in the same quarter a year ago, and up $.04, or 8.9%, as compared to the $.45 earned in the third quarter of fiscal 2016, the linked quarter.
- Annualized return on average assets was 1.07%, while annualized return on average common equity was 11.9%, as compared to 1.11% and 12.5%, respectively, in the same quarter a year ago, and 0.99% and 11.0%, respectively, in the third quarter of fiscal 2016, the linked quarter.
- Net loan growth for fiscal 2016 was $82.3 million, or 7.8%. Deposits were up $65.5 million, or 6.2%.
- Net interest margin for the fourth quarter of fiscal 2016 was 3.73%, down from the 3.85% reported for the year ago period, and up from 3.72% for the third quarter of fiscal 2016, the linked quarter.
- Noninterest income (excluding available-for-sale securities gains) was up 7.7% for the fourth quarter of fiscal 2016, compared to the year ago period, and up 18.5% from the third quarter of fiscal 2016, the linked quarter. The improvement in the current period included a non-recurring benefit of approximately $138,000 attributable to the Company's sale of its interest in a low-income housing tax credit (LIHTC) limited partnership.
- Noninterest expense was up 3.4% for the fourth quarter of fiscal 2016, compared to the year ago period, and up 0.2% from the third quarter of fiscal 2016, the linked quarter.
- Nonperforming assets were $9.0 million, or 0.64% of total assets, at June 30, 2016, as compared to $8.3 million, or 0.62% of total assets, at March 31, 2016, and as compared to $8.3 million, or 0.64% of total assets, at June 30, 2015.
As the Company noted in a report on Form 8-k filed July 20, 2016, the Board of Directors, on July 19, 2016, was pleased to increase its quarterly cash dividend on common stock to $0.10, an increase of $0.01, or 11.1%. The Company will pay this quarterly dividend on August 31, 2016, to stockholders of record at the close of business on August 15, 2016, marking the 89th 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.
The Company will host a conference call to review the information provided in this press release on Tuesday, July 26, 2016, at 3:30 p.m. central time (4:30 p.m. eastern). 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). Telephone playback will be available beginning one hour following the conclusion of the call through August 9, 2016. 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 10090434. Participants should ask to be joined into the Southern Missouri Bancorp (SMBC) call.
Balance Sheet Summary:
The Company experienced balance sheet growth in fiscal 2016, with total assets of $1.4 billion at June 30, 2016, reflecting an increase of $103.8 million, or 8.0%, as compared to June 30, 2015. Balance sheet growth was funded through deposit growth and Federal Home Loan Bank (FHLB) advances.
Available-for-sale (AFS) securities were $129.2 million at June 30, 2016, a decrease of $369,000, or 0.3%, as compared to June 30, 2015. The decrease was attributable to reductions in government agency bonds, partially offset by increases in municipal bonds, mortgage-backed securities, and other securities. Cash equivalents and time deposits were $23.3 million, an increase of $4.6 million, or 24.3%, as compared to June 30, 2015.
Loans, net of the allowance for loan losses, were $1.1 billion at June 30, 2016, an increase of $82.3 million, or 7.8%, as compared to June 30, 2015. The increase was primarily attributable to growth in commercial real estate, residential, and commercial, and construction loan balances, partially offset by a reduction in consumer loan balances. The increase in residential real estate loans was attributable primarily to multifamily real estate loan originations. The increase in commercial real estate balances was attributable primarily to nonresidential improved properties, as well as agricultural real estate. The increase in commercial loan balances was attributable to drawn balances by agricultural borrowers, partially offset by a reduction in commercial and industrial lending. Loans anticipated to fund in the next 90 days stood at $55.9 million at June 30, 2016, as compared to $59.4 million at March 31, 2016, and $29.7 million at June 30, 2015.
Nonperforming loans were $5.7 million, or 0.50% of gross loans, at June 30, 2016, as compared to $3.8 million, or 0.36% of gross loans, at June 30, 2015. The increase in nonperforming loans was attributed primarily to migration to nonaccrual status of a number of relatively small loan relationships, partially offset by principal reduction or resolution of other loans previously treated as nonaccrual. Nonperforming assets were $9.0 million, or 0.64% of total assets, at June 30, 2016, as compared to $8.3 million, or 0.64% of total assets, at June 30, 2015, reflecting the dollar increase in nonperforming loans, partially offset by a decline in foreclosed real estate balances. Our allowance for loan losses at June 30, 2016, totaled $13.8 million, representing 1.20% of gross loans and 244% of nonperforming loans, as compared to $12.3 million, or 1.15% of gross loans, and 323% of nonperforming loans, at June 30, 2015. For all impaired loans, the Company has measured impairment under ASC 310-10-35, and management believes the allowance for loan losses at June 30, 2016, is adequate, based on that measurement.
Total liabilities were $1.3 billion at June 30, 2016, an increase of $110.5 million, or 9.5%, as compared to June 30, 2015.
Deposits were $1.1 billion at June 30, 2016, an increase of $65.5 million, or 6.2%, as compared to June 30, 2015. The increase was primarily attributable to growth in interest-bearing transaction accounts, noninterest-bearing transaction accounts, and money market deposit accounts, partially offset by declines in statement and passbook savings accounts and certificates of deposit. The average loan-to-deposit ratio for the fourth quarter of fiscal 2016 was 100.2%, as compared to 99.3% for the same period of the prior fiscal year.
FHLB advances were $110.2 million at June 30, 2016, an increase of $45.4 million, or 70.1%, as compared to June 30, 2015. The increase was attributable to the Company's increase in overnight borrowings due to strong loan demand in the fourth quarter of fiscal 2016, some of which is seasonal, coupled with a slight decrease in deposit balances during the same quarter. Securities sold under agreements to repurchase totaled $27.1 million at June 30, 2016, a decrease of $247,000, or 0.9%, as compared to June 30, 2015. At both dates, the full balance of repurchase agreements was due to local small business and government counterparties.
The Company's stockholders' equity was $126.0 million at June 30, 2016, a decrease of $6.7 million, or 5.0%, as compared to June 30, 2015. The decrease was attributable to the redemption of the Company's $20.0 million in preferred stock which had been issued in July 2011 under the U.S. Treasury's Small Business Lending Fund program and payment of dividends on common and preferred stock, partially offset by retention of net income and an increase in accumulated other comprehensive income.
Income Statement Summary:
The Company's net interest income for the three-month period ended June 30, 2016, was $11.8 million, an increase of $292,000, or 2.5%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.0% 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, as compared to 3.85% in the three-month period ended June 30, 2015.
Accretion of fair value discount on acquired loans and amortization of fair value premiums on assumed time deposits related to the Company's acquisition of Peoples Service Company and its subsidiary, Peoples Bank of the Ozarks in August 2014 (the "Peoples Acquisition"), decreased to $416,000 for the three-month period ended June 30, 2016, as compared to $444,000 in the same period of the prior fiscal year. This component of net interest income contributed 13 basis points to net interest margin in the three-month period ended June 30, 2016, as compared to a contribution of 14 basis points for the same period of the prior fiscal year, and ten basis points for the three-month period ended March 31, 2016, the linked quarter. The dollar impact of this component of net interest income has generally been declining each sequential quarter as assets from the Peoples Acquisition mature or prepay; however, the increase in the three-month period ended June 30, 2016, was the result of inclusion in the quarter's results of a larger amount of payments received on loans acquired and recorded at a carrying value less than the principal repaid.
The provision for loan losses for the three-month period ended June 30, 2016, was $817,000, as compared to $659,000 in the same period of the prior fiscal year. As a percentage of average loans outstanding, provision for loan losses in the current three-month period represented a charge of .29% (annualized), while the Company recorded net charge offs during the period of .26% (annualized). During the same period of the prior fiscal year, provision for loan losses as a percentage of average loans outstanding represented a charge of .25% (annualized), while the Company recorded net charge offs of .04% (annualized).
The Company's noninterest income for the three-month period ended June 30, 2016, was $2.6 million, an increase of $189,000, or 7.9%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to a $138,000 one-time benefit resulting from the sale of the Company's interest in a LIHTC limited partnership, increased bank card interchange income, gains realized on secondary market loan originations, partially offset by lower loan late charges, loan servicing and other loans fees, and lower deposit account service charges.
Noninterest expense for the three-month period ended June 30, 2016, was $8.3 million, an increase of $269,000, or 3.4%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to higher occupancy expenses, partially offset by reductions in compensation expenses and charges to amortize core deposit and other intangibles. The efficiency ratio for the three-month period ended June 30, 2016, was 57.4%, unchanged from the same period of the prior fiscal year.
The income tax provision for the three-month period ended June 30, 2016, was $1.7 million, a decrease of $65,000, or 3.8%, as compared to the same period of the prior fiscal year, attributable to a decrease in the effective tax rate, from 32.5% to 31.0%, partially offset by an increase in pre-tax income.
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: 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 Board of Governors of the Federal Reserve System 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 loan 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; expected cost savings, synergies and other benefits from the Company's merger and acquisition activities might not be realized to the extent anticipated or within the anticipated time frames, if at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; legislative or regulatory changes that adversely affect our business; results of examinations of us by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for loan losses or to write-down 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:||June 30,||March 31,||December 31,||September 30,||June 30,|
|(dollars in thousands, except per share data)||2016||2016||2015||2015||2015|
|Cash equivalents and time deposits||$||23,277||$||18,517||$||25,794||$||20,250||$||18,719|
|Available for sale securities||129,224||128,735||129,085||127,485||129,593|
|FHLB/FRB membership stock||8,352||5,886||6,238||7,162||6,467|
|Loans receivable, gross||1,149,244||1,108,452||1,092,599||1,081,899||1,065,443|
|Allowance for loan losses||13,791||13,693||13,172||12,812||12,297|
|Loans receivable, net||1,135,453||1,094,759||1,079,427||1,069,087||1,053,146|
|Bank-owned life insurance||30,071||19,897||19,754||19,836||19,692|
|Premises and equipment||46,943||46,670||45,505||42,788||39,726|
|Securities sold under agreements to repurchase||27,085||31,575||23,066||24,429||27,332|
|Common stockholders' equity||125,966||122,247||119,208||115,875||112,643|
|Total stockholders' equity||125,966||122,247||119,208||135,875||132,643|
|Total liabilities and stockholders' equity||$||1,403,910||$||1,344,472||$||1,337,672||$||1,319,793||$||1,300,064|
|Equity to assets ratio||8.97||%||9.09||%||8.91||%||10.30||%||10.20||%|
|Common shares outstanding||7,437,616||7,437,616||7,428,416||7,424,666||7,419,666|
|Less: Restricted common shares not vested||36,800||52,750||53,150||54,800||55,600|
|Common shares for book value determination||7,400,816||7,384,866||7,375,266||7,369,866||7,364,066|
|Book value per common share||$||17.02||$||16.55||$||16.16||$||15.72||$||15.30|
|Closing market price||23.53||24.02||23.90||20.72||18.85|
|Nonperforming asset data as of:||June 30,||March 31,||December 31,||September 30,||June 30,|
|(dollars in thousands)||2016||2016||2015||2015||2015|
|Accruing loans 90 days or more past due||36||70||79||50||45|
|Nonperforming troubled debt restructurings (1)||-||-||-||-||-|
|Total nonperforming loans||5,660||4,960||3,882||4,071||3,803|
|Other real estate owned (OREO)||3,305||3,244||3,617||4,392||4,440|
|Personal property repossessed||61||90||118||109||64|
|Total nonperforming assets||$||9,026||$||8,294||$||7,617||$||8,572||$||8,307|
|Total nonperforming assets to total assets||0.64||%||0.62||%||0.57||%||0.65||%||0.64||%|
|Total nonperforming loans to gross loans||0.50||%||0.45||%||0.36||%||0.38||%||0.36||%|
|Allowance for loan losses to nonperforming loans||243.66||%||276.07||%||339.31||%||314.71||%||323.35||%|
|Allowance for loan losses to gross loans||1.20||%||1.24||%||1.21||%||1.18||%||1.15||%|
|Performing troubled debt restructurings||$||6,078||$||5,871||$||5,548||$||6,949||$||6,548|
|(1) reported here only if not otherwise listed as nonperforming (i.e., nonaccrual or 90+ days past due)|
|For the three-month period ended|
|Quarterly Average Balance Sheet Data:||June 30,||March 31,||December 31,||September 30,||June 30,|
|(dollars in thousands)||2016||2016||2015||2015||2015|
|Interest-bearing cash equivalents||$||8,883||$||14,475||$||10,352||$||9,488||$||12,398|
|Available for sale securities and membership stock||134,823||132,913||135,044||135,706||136,063|
|Loans receivable, gross||1,126,630||1,088,833||1,080,526||1,063,851||1,050,087|
|Total interest-earning assets||1,270,336||1,236,221||1,225,922||1,209,045||1,198,548|
|Securities sold under agreements to repurchase||29,305||29,496||24,861||25,885||27,442|
|Total interest-bearing liabilities||1,120,961||1,081,755||1,073,172||1,044,488||1,031,910|
|Other noninterest-bearing liabilities||7,091||5,765||755||1,472||802|
|Common stockholders' equity||124,103||120,924||119,386||114,239||112,893|
|Total stockholders' equity||124,103||120,924||122,647||134,239||132,893|
|Total liabilities and stockholders' equity||$||1,379,842||$||1,336,728||$||1,322,333||$||1,300,482||$||1,290,041|
|For the three-month period ended|
|Quarterly Summary Income Statement Data:||June 30,||March 31,||December 31,||September 30,||June 30,|
|(dollars in thousands, except per share data)||2016||2016||2015||2015||2015|
|Available for sale securities and membership stock||849||853||864||865||843|
|Total interest income||14,261||13,849||14,235||13,970||13,816|
|Securities sold under agreements to repurchase||30||32||29||29||32|
|Total interest expense||2,423||2,341||2,335||2,266||2,270|
|Net interest income||11,838||11,508||11,900||11,704||11,546|
|Provision for loan losses||817||563||496||618||659|
|Other noninterest income||2,582||2,178||2,791||2,202||2,398|
|Less: effective dividend on preferred shares||-||-||35||50||50|
|Net income available to common stockholders||$||3,682||$||3,322||$||4,172||$||3,585||$||3,515|
|Basic earnings per common share||$||0.50||$||0.45||$||0.56||$||0.48||$||0.47|
|Diluted earnings per common share||0.49||0.45||0.56||0.48||0.47|
|Dividends per common share||0.090||0.090||0.090||0.090||0.085|
|Average common shares outstanding:|
|Return on average assets||1.07||%||0.99||%||1.27||%||1.12||%||1.11||%|
|Return on average common stockholders' equity||11.9||%||11.0||%||14.0||%||12.6||%||12.5||%|
|Net interest margin||3.73||%||3.72||%||3.88||%||3.87||%||3.85||%|
|Net interest spread||3.63||%||3.61||%||3.77||%||3.75||%||3.73||%|