Poplar Bluff, MO, Oct. 27, 2014 (GLOBE NEWSWIRE) -- Highlights:
· Preliminary
fiscal year 2015 first quarter earnings per common share (diluted)
were reported at $.89, up from $.74 in the year ago period, as net
income available to common shareholders increased to $3.2 million,
compared to $2.5 million in the year ago period. Earnings per
common share (diluted) were up $.10, as compared to the $.79 earned
in the fourth quarter of fiscal 2014, the linked quarter.
· For the first
quarter of fiscal 2015, return on average assets was 1.09%, while
return on average common equity was 13.2%, as compared to a 1.27%
return on average assets and 12.2% return on average common equity
in the year ago period. In the fourth quarter of fiscal 2014, the
linked quarter, return on average assets was 1.11%, and return on
average common equity was 12.1%.
· Net loan
growth for the first three months of fiscal 2015 was $218.5
million, or 27.3%. Of that amount, $190.4 million was attributable
to the August 2014 acquisition of Peoples Service Company and its
subsidiary, Peoples Bank of the Ozarks (collectively, "Peoples").
Deposits were up $235.9 million, or 30.0%, with the Peoples
acquisition accounting for $222.2 million.
· Net interest
margin for the first quarter of fiscal 2015 was 3.93%, up from the
3.90% reported for the year ago period, and up from the net
interest margin of 3.79% for the fourth quarter of fiscal 2014, the
linked quarter. Purchase accounting from the Peoples acquisition
contributed to the increase in the margin for the quarter.
· Excluding
securities gains and losses, noninterest income was up 54.6% for
the first quarter of fiscal 2015, compared to the year ago period,
and up 15.4% from the fourth quarter of fiscal 2014, the linked
quarter.
· Noninterest
expense was up 66.4% for the first quarter of fiscal 2015, compared
to the year ago period, and up 21.9% from the fourth quarter of
fiscal 2014, the linked quarter. The quarter included $128,000 in
noninterest expense related to merger and acquisition activity.
· Non-performing
assets were $6.8 million, or 0.52% of total assets, at September
30, 2014, as compared to $4.4 million, or 0.43% of total assets, at
June 30, 2014. Non-performing assets increased primarily due to the
Peoples acquisition.
Southern Missouri Bancorp, Inc. ("Company") (NASDAQ: SMBC), the
parent corporation of Southern Bank ("Bank"), today announced
preliminary net income available to common shareholders for the
first quarter of fiscal 2015 of $3.2 million, an increase of
$736,000, or 29.3%, as compared to $2.5 million in the same period
of the prior fiscal year. The increase was attributable to growth
in net interest income and noninterest income, partially offset by
increased noninterest expense, provision for income tax, and
provision for loan losses. Preliminary net income available to
common shareholders was $.89 per fully diluted common share for the
first quarter of fiscal 2015, an increase of 20.3% as compared to
the $.74 per fully diluted common share earned during the same
period of the prior fiscal year.
Dividend Declared:
The Company is pleased to announce that the Board of Directors,
on October 21, 2014, declared its 82nd consecutive
quarterly dividend on common stock since the inception of the
Company. The cash dividend of $.17 per common share will be paid
November 28, 2014, to common stockholders of record at the close of
business on November 14, 2014. The Board of Directors and
management believe the payment of a quarterly cash dividend
enhances shareholder 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 Thursday, October 30,
2014, 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 one hour following the conclusion of the call, through
November 13, 2014. 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 10055388.
Participants should ask to be joined into the Southern Missouri
Bancorp (SMBC) call.
Recent Developments:
The Company previously announced on August 5, 2014, the closing
of its acquisition of Peoples. The acquired bank subsidiary,
Peoples Bank of the Ozarks, continues to operate as a separate bank
charter from the Company's legacy bank subsidiary, Southern Bank,
but is expected to be merged with and into Southern Bank late in
the fourth quarter of calendar year 2014, in connection with the
conversion of its data processing system. The financial results
reported within this press release include preliminary purchase
accounting figures from the Peoples acquisition. Until reporting
our interim financial statements on Form 10-Q, which will be filed
for our first quarter no later than November 10, 2014, these
results are subject to review by our independent auditors.
Balance Sheet Summary:
The Company experienced balance sheet growth in the first three
months of fiscal 2015, primarily due to the Peoples acquisition,
but also due to continued organic loan growth. Total assets
increased $278.5 million, or 27.3%, to $1.3 billion at September
30, 2014, as compared to $1.0 billion at June 30, 2014. Balance
sheet growth was funded primarily with acquired deposit balances,
organic deposit growth (including brokered deposits), assumed
Federal Home Loan Bank (FHLB) advances, and increased overnight
FHLB funding.
Available-for-sale (AFS) securities increased $26.6 million, or
20.4%, to $156.8 million at September 30, 2014, as compared to
$130.2 million at June 30, 2014. The increase was attributable to
the Peoples acquisition, which included $31.2 million in AFS
securities balances, consisting primarily of mortgage-backed
securities. Cash equivalents and time deposits increased $11.6
million, or 69.6%, as compared to June 30, 2014, primarily as a
result of the Peoples acquisition.
Loans, net of the allowance for loan losses, increased $218.5
million, or 27.3%, to $1.0 billion at September 30, 2014, as
compared to $801.1 million at June 30, 2014. The increase was
primarily attributable to the Peoples acquisition, which included
$190.4 million in loans, at fair value. Including acquired loans,
the increase in balances consisted of commercial real estate,
residential real estate, commercial, construction, and consumer
loans. Organic growth consisted primarily of commercial loans
(including seasonal advances on agricultural operating lines),
residential real estate (predominantly multifamily), and
construction loans, partially offset by a decline in commercial
real estate loans.
Non-performing loans were $2.9 million, or 0.29% of gross loans,
at September 30, 2014, as compared to $1.4 million, or 0.17% of
gross loans, at June 30, 2014. Non-performing assets were $6.8
million, or 0.52% of total assets, at September 30, 2014, as
compared to $4.4 million, or 0.43% of total assets, at June 30,
2014. Our allowance for loan losses at September 30, 2014, totaled
$10.1 million, representing 0.98% of gross loans and 343% of
non-performing loans, as compared to $9.3 million, or 1.14% of
gross loans, and 663% of non-performing loans, at June 30, 2014.
Non-performing loan and asset balances increased as a result of the
Peoples acquisition, which included $1.7 million in nonperforming
loans (at fair value) and $1.0 million in foreclosed real estate.
For all impaired loans, the Company has measured impairment under
ASC 310-10-35, and management believes the allowance for loan
losses at September 30, 2014, is adequate, based on that
measurement.
Total liabilities increased $263.4 million to $1.2 billion at
September 30, 2014, an increase of 28.9% as compared to $910.3
million at June 30, 2014. This growth was attributable to the
Peoples acquisition, organic deposit growth (including brokered
deposits), and additional FHLB overnight advances.
Deposits increased $235.9 million, or 30.0%, to $1.0 billion at
September 30, 2014, as compared to $785.8 million at June 30, 2014.
The increase was primarily attributable to the Peoples acquisition,
which included $222.2 million in deposits, at fair value. Including
assumed deposits, the increase consisted primarily of certificates
of deposit, money market deposit accounts, noninterest-bearing
transaction accounts, savings accounts, and interest-bearing
transaction accounts. Organic growth consisted primarily of
certificates of deposit, as the Company utilized brokered deposits
to repay overnight borrowings totaling $16.6 million, with an
average maturity of six months. The average loan-to-deposit ratio
for the first quarter of fiscal 2015 was 101.8% as compared to
104.6% for the same period of the prior fiscal year.
FHLB advances were $108.8 million at September 30, 2014, an
increase of $23.3 million, or 27.2%, as compared to $85.5 million
at June 30, 2014. The increase was attributable primarily to the
assumption of $16.0 million in advances, at fair value, in the
Peoples acquisition, as well as the use of overnight borrowings to
fund asset growth. Securities sold under agreements to repurchase
totaled $24.1 million at September 30, 2014, as compared to $25.6
million at June 30, 2014, a decrease of 5.7%. At both dates, the
full balance of repurchase agreements was due to local small
business and government counterparties.
The Company's stockholders' equity increased $15.2 million, or
13.6%, to $126.3 million at September 30, 2014, from $111.1 million
at June 30, 2014. The increase was due primarily to the issuance of
shares in the Peoples acquisition, as well as retention of net
income, and an increase in accumulated other comprehensive income,
partially offset by dividends paid on common and preferred
stock.
Income Statement Summary:
During fiscal 2014, the Company closed on the acquisition of the
Bank of Thayer in October 2013, and the acquisition of Citizens
State Bank in February 2014 (collectively, the "Fiscal 2014
Acquisitions"). Along with the Peoples acquisition, which closed on
August 5, 2014, the Fiscal 2014 Acquisitions impacted our reported
results through a larger average balance sheet, and increased
noninterest income and noninterest expense.
The Company's net interest income for the three-month period
ended September 30, 2014, was $11.1 million, an increase of $3.8
million, or 50.9%, as compared to the same period of the prior
fiscal year. The increase was attributable to a 49.9% increase in
the average balance of interest-earning assets, combined with an
increase in net interest margin, from 3.90% in the three-month
period ended September 30, 2013, to 3.93% in current three-month
period.
In December 2010, the Company acquired from the FDIC, as
receiver, most of the assets and assumed substantially all of the
liabilities of the former First Southern Bank, Batesville, Arkansas
(the Fiscal 2011 Acquisition). Additionally, as discussed above,
the Company closed on the Peoples acquisition in August 2014.
Accretion of fair value discount on loans and amortization of fair
value premiums on time deposits related to the Fiscal 2011
Acquisition declined to $108,000 for the three-month period ended
September 30, 2014, as compared to $204,000 in the same period of
the prior fiscal year. This component of net interest income
contributed four basis points to net interest margin in the
three-month period ended September 30, 2014, as compared to 11
basis points in the same period of the prior fiscal year. Accretion
of fair value discount on loans and amortization of fair value
premiums on time deposits related to the Peoples acquisition was
$390,000 for the three-month period ended September 30, 2014, with
no comparable impact in the same period of the prior fiscal year.
This component of net interest income contributed an additional 14
basis points to net interest margin in the three-month period ended
September 30, 2014. The Company expects the impact of the fair
value discount accretion from the Fiscal 2011 Acquisition to
continue to decline, over time, as the assets acquired at a
discount continue to mature or prepay. The impact from the Peoples
acquisition is expected to increase somewhat in the second quarter
of Fiscal 2015, as a result of the Company's ownership of Peoples
for a full quarter, before declining as a result of acquired assets
maturing or prepaying. Other acquisitions closed by the Company in
recent periods have had a less significant impact on net interest
income.
The provision for loan losses for the three-month period ended
September 30, 2014, was $827,000, as compared to $500,000 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 .35% (annualized), while
the Company recorded a net recovery during the period of .01%
(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 .30% (annualized), while net
charge offs were .05% (annualized).
The Company's noninterest income for the three-month period
ended September 30, 2014, was $2.0 million, an increase of
$702,000, or 54.8%, as compared to the same period of the prior
fiscal year. The increase was attributed to increases in deposit
account service charges, bank card interchange income, loan fees,
and gains realized on secondary market loan originations, most of
which resulted from the Fiscal 2014 Acquisitions and the Peoples
acquisition.
Noninterest expense for the three-month period ended September
30, 2014, was $7.6 million, an increase of $3.0 million, or 66.4%,
as compared to the same period of the prior fiscal year. The
increase was attributed to compensation and benefits, occupancy
expenses, amortization of core deposit intangibles, bank card
interchange expense, deposit insurance premiums, supplies, postage,
advertising, and other expenses, which resulted primarily from the
Fiscal 2014 Acquisitions and the Peoples acquisition. Included in
noninterest expense was $128,000 in merger-related charges
recognized in the three-month period ended September 30, 2014, with
$125,000 in comparable expenses in the same period of the prior
fiscal year. The efficiency ratio for the three-month period ended
September 30, 2014, was 58.0%, as compared to 52.8% for the same
period of the prior fiscal year. The deterioration resulted from an
increase of 66.4% in noninterest expense, partially offset by a
combined 51.5% increase in net interest income and noninterest
income, and was attributable primarily to the Fiscal 2014
Acquisitions and the Peoples acquisition, as the Company has not
yet realized all of the expected cost savings from the acquired
entities' operations.
The income tax provision for the three-month period ended
September 30, 2014, was $1.4 million, an increase of $358,000, or
34.9%, as compared to the same period of the prior fiscal year,
attributable to higher pre-tax income, as well as an increase in
the effective tax rate, from 28.5% to 29.5%.
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: 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 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; 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: |
|
|
|
|
September 30,
2014 |
June 30, 2014 |
|
|
|
|
|
|
|
Cash equivalents and time deposits |
|
|
|
|
$
28,139,000 |
$
16,587,000 |
Available for sale securities |
|
|
|
|
156,785,000 |
130,222,000 |
FHLB/FRB Membership stock |
|
|
|
|
7,212,000 |
5,993,000 |
Loans receivable, gross |
|
|
|
|
1,029,644,000 |
810,315,000 |
Allowance for loan losses |
|
|
|
|
10,109,000 |
9,259,000 |
Loans receivable, net |
|
|
|
|
1,019,535,000 |
801,056,000 |
Bank-owned life insurance |
|
|
|
|
19,266,000 |
19,123,000 |
Intangible assets |
|
|
|
|
9,595,000 |
3,936,000 |
Premises and equipment |
|
|
|
|
34,415,000 |
22,466,000 |
Other assets |
|
|
|
|
20,956,000 |
22,039,000 |
Total assets |
|
|
|
|
$
1,295,903,000 |
$
1,021,422,000 |
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
$
905,980,000 |
$
717,688,000 |
Noninterest-bearing deposits |
|
|
|
|
115,682,000 |
68,113,000 |
Securities sold under agreements to
repurchase |
|
|
|
|
24,113,000 |
25,561,000 |
FHLB advances |
|
|
|
|
108,751,000 |
85,472,000 |
Other liabilities |
|
|
|
|
522,000 |
3,750,000 |
Subordinated debt |
|
|
|
|
14,594,000 |
9,727,000 |
Total liabilities |
|
|
|
|
1,169,642,000 |
910,311,000 |
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
20,000,000 |
20,000,000 |
Common stockholders' equity |
|
|
|
|
106,261,000 |
91,111,000 |
Total stockholders' equity |
|
|
|
|
126,261,000 |
111,111,000 |
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
|
|
|
$
1,295,903,000 |
$
1,021,422,000 |
|
|
|
|
|
|
|
Equity to assets ratio |
|
|
|
|
9.74% |
10.88% |
Common shares outstanding |
|
|
|
|
3,691,333 |
3,340,440 |
Less: Restricted common shares
not vested |
|
|
|
|
36,000 |
36,000 |
Common shares for book value
determination |
|
|
|
|
3,655,333 |
3,304,440 |
Book value per common share |
|
|
|
|
$
29.07 |
$
27.57 |
Closing market price |
|
|
|
|
35.88 |
35.69 |
|
|
|
|
|
|
|
Nonperforming asset data as
of: |
|
|
|
|
September 30, 2014 |
June 30, 2014 |
|
|
|
|
|
|
|
Nonaccrual loans |
|
|
|
|
$
2,925,000 |
$
1,266,000 |
Accruing loans 90 days or more past due |
|
|
|
|
24,000 |
130,000 |
Nonperforming troubled debt restructurings
(1) |
|
|
|
|
- |
- |
Total nonperforming loans |
|
|
|
|
2,949,000 |
1,396,000 |
Other real estate owned (OREO) |
|
|
|
|
3,804,000 |
2,912,000 |
Personal property repossessed |
|
|
|
|
9,000 |
65,000 |
Nonperforming investment securities |
|
|
|
|
- |
- |
Total nonperforming assets |
|
|
|
|
$
6,762,000 |
$
4,373,000 |
|
|
|
|
|
|
|
Total nonperforming assets to total
assets |
|
|
|
|
0.52% |
0.43% |
Total nonperforming loans to gross loans |
|
|
|
|
0.29% |
0.17% |
Allowance for loan losses to nonperforming
loans |
|
|
|
|
342.79% |
663.25% |
Allowance for loan losses to gross loans |
|
|
|
|
0.98% |
1.14% |
|
|
|
|
|
|
|
Performing troubled debt restructurings |
|
|
|
|
$
5,050,000 |
$
4,778,000 |
|
|
|
|
|
|
|
(1) reported here only if not otherwise listed as
nonperforming (i.e., nonaccrual or 90+ days past due) |
|
|
|
|
For the
three-month period ended |
Average Balance Sheet
Data: |
|
|
|
|
September 30,
2014 |
September 30,
2013 |
|
|
|
|
|
|
|
Interest-bearing cash equivalents |
|
|
|
|
$
27,326,000 |
$
6,010,000 |
Available for sale securities and membership
stock |
|
|
|
|
156,172,000 |
86,721,000 |
Loans receivable, gross |
|
|
|
|
950,060,000 |
663,495,000 |
Total interest-earning
assets |
|
|
|
|
1,133,558,000 |
756,226,000 |
Other assets |
|
|
|
|
76,860,000 |
47,916,000 |
Total assets |
|
|
|
|
$
1,210,418,000 |
$
804,142,000 |
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
$
833,477,000 |
$
589,331,000 |
Securities sold under agreements to
repurchase |
|
|
|
|
24,599,000 |
22,868,000 |
FHLB advances |
|
|
|
|
119,043,000 |
36,745,000 |
Subordinated debt |
|
|
|
|
12,569,000 |
7,217,000 |
Total interest-bearing
liabilities |
|
|
|
|
989,688,000 |
656,161,000 |
Noninterest-bearing deposits |
|
|
|
|
99,879,000 |
45,238,000 |
Other noninterest-bearing liabilities |
|
|
|
|
2,087,000 |
549,000 |
Total liabilities |
|
|
|
|
1,091,654,000 |
701,948,000 |
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
20,000,000 |
20,000,000 |
Common stockholders' equity |
|
|
|
|
98,764,000 |
82,194,000 |
Total stockholders' equity |
|
|
|
|
118,764,000 |
102,194,000 |
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity |
|
|
|
|
$
1,210,418,000 |
$
804,142,000 |
|
|
|
|
|
|
|
|
|
|
|
For the
three-month period ended |
Summary Income Statement
Data: |
|
|
|
|
September 30,
2014 |
September 30,
2013 |
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
Cash equivalents |
|
|
|
|
$
33,000 |
$
3,000 |
Available for sale securities
and membership stock |
|
|
|
|
958,000 |
497,000 |
Loans receivable |
|
|
|
|
12,225,000 |
8,665,000 |
Total interest
income |
|
|
|
|
13,216,000 |
9,165,000 |
Interest expense: |
|
|
|
|
|
|
Deposits |
|
|
|
|
1,601,000 |
1,449,000 |
Securities sold under agreements
to repurchase |
|
|
|
|
28,000 |
31,000 |
FHLB advances |
|
|
|
|
339,000 |
256,000 |
Subordinated debt |
|
|
|
|
121,000 |
56,000 |
Total interest
expense |
|
|
|
|
2,089,000 |
1,792,000 |
Net interest income |
|
|
|
|
11,127,000 |
7,373,000 |
Provision for loan losses |
|
|
|
|
827,000 |
500,000 |
Securities gains |
|
|
|
|
2,000 |
- |
Other noninterest income |
|
|
|
|
1,980,000 |
1,280,000 |
Noninterest expense |
|
|
|
|
7,602,000 |
4,567,000 |
Income taxes |
|
|
|
|
1,381,000 |
1,023,000 |
Net income |
|
|
|
|
3,299,000 |
2,563,000 |
Less: effective dividend on
preferred shares |
|
|
|
|
50,000 |
50,000 |
Net income
available to common shareholders |
|
|
|
|
$
3,249,000 |
$
2,513,000 |
|
|
|
|
|
|
|
Basic earnings per common share |
|
|
|
|
$
0.91 |
$
0.76 |
Diluted earnings per common share |
|
|
|
|
0.89 |
0.74 |
Dividends per common share |
|
|
|
|
0.17 |
0.16 |
Average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
|
|
3,557,000 |
3,295,000 |
Diluted |
|
|
|
|
3,654,000 |
3,389,000 |
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
1.09% |
1.27% |
Return on average common shareholders'
equity |
|
|
|
|
13.2% |
12.2% |
|
|
|
|
|
|
|
Net interest margin |
|
|
|
|
3.93% |
3.90% |
Net interest spread |
|
|
|
|
3.82% |
3.76% |
|
|
|
|
|
|
|
Efficiency ratio |
|
|
|
|
58.0% |
52.8% |