Poplar Bluff, Missouri, April 21, 2025 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the third quarter of fiscal 2025 of $15.7 million, an increase of $4.4 million or 38.7%, 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 noninterest expense, income taxes, and provision for credit losses. Preliminary net income was $1.39 per fully diluted common share for the third quarter of fiscal 2025, an increase of $0.40 as compared to the $0.99 per fully diluted common share reported for the same period of the prior fiscal year.
Highlights for the third quarter of fiscal 2025:
- Earnings per common share (diluted) were $1.39, up $0.40, or 40.4%, as compared to the same quarter a year ago, and up $0.09, or 6.9%, from the second quarter of fiscal 2025, the linked quarter.
- Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 12.1%, as compared to 0.99% and 9.5%, respectively, in the same quarter a year ago, and 1.26% and 11.5%, respectively, in the second quarter of fiscal 2025, the linked quarter.
- Net interest margin for the quarter was 3.39%, as compared to 3.15% reported for the same quarter a year ago, and up from 3.36% reported for the second quarter of fiscal 2025, the linked quarter. Net interest income increased $5.0 million, or 14.4%, compared to the same quarter a year ago, and increased $1.3 million, or 3.5% compared to the second quarter of fiscal 2025, the linked quarter.
- Noninterest income was up 19.4% for the quarter, as compared to the same quarter a year ago, primarily as a result of losses realized on sale of available-for-sale (AFS) securities in the year ago quarter, and down 2.9% from the second quarter of fiscal 2025, the linked quarter.
- Gross loan balances as of March 31, 2025, decreased by $3.5 million, or 0.1%, as compared to December 31, 2024, and increased by $252.3 million, or 6.7%, as compared to March 31, 2024.
- Deposit balances as of March 31, 2025, increased by $50.8 million, or 1.2%, as compared to December 31, 2024, and by $275.3, million, or 6.9%, as compared to March 31, 2024.
- Cash equivalent balances and time deposits as of March 31, 2025, increased by $81.1 million, or 55.5%, as compared to December 31, 2024, and increased by $58.4 million, or 34.6% as compared to March 31, 2024.
- Tangible book value per share was $40.37, having increased by $4.86, or 13.7%, as compared to March 31, 2024.
Dividend Declared:
The Board of Directors, on April 15, 2025, declared a quarterly cash dividend on common stock of $0.23, payable May 30, 2025, to stockholders of record at the close of business on May 15, 2025, marking the 124th 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.
Conference Call:
The Company will host a conference call to review the information provided in this press release on Tuesday, April 22, 2025, at 8:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 154288. Telephone playback will be available beginning one hour following the conclusion of the call through April 27, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 580314.
Balance Sheet Summary:
The Company experienced balance sheet growth in the first nine months of fiscal 2025, with total assets of $5.0 billion at March 31, 2025, reflecting an increase of $372.2 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected increases in net loans receivable, cash equivalents, and available for sale (AFS) securities.
Cash equivalents and time deposits were a combined $227.1 million at March 31, 2025, an increase of $165.7 million, or 270.0%, as compared to June 30, 2024. The increase was primarily the result of strong deposit generation that outpaced loan growth during the period. AFS securities were $462.9 million at March 31, 2025, up $35.0 million, or 8.2%, as compared to June 30, 2024.
Loans, net of the allowance for credit losses (ACL), were $4.0 billion at March 31, 2025, an increase of $171.3 million, or 4.5%, as compared to June 30, 2024. Gross loans increased by $173.7 million, while the ACL attributable to outstanding loan balances increased $2.4 million, or 4.6%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in 1-4 family residential, commercial and industrial, construction and land development, multi-family real estate, agriculture real estate, owner occupied commercial real estate, and agricultural production loan balances. This increase was somewhat offset by decreases in consumer loans, loans secured by non-owner occupied commercial real estate, and other loan balances. The table below illustrates changes in loan balances by type over recent periods:
| Summary Loan Data as of: | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | |||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| 1-4 residential real estate | $ | 978,908 | $ | 967,196 | $ | 942,916 | $ | 925,397 | $ | 903,371 | ||||||||||
| Non-owner occupied commercial real estate | 897,125 | 882,484 | 903,678 | 899,770 | 898,911 | |||||||||||||||
| Owner occupied commercial real estate | 440,282 | 435,392 | 438,030 | 427,476 | 412,958 | |||||||||||||||
| Multi-family real estate | 405,445 | 376,081 | 371,177 | 384,564 | 417,106 | |||||||||||||||
| Construction and land development | 323,499 | 393,388 | 351,481 | 290,541 | 268,315 | |||||||||||||||
| Agriculture real estate | 247,027 | 239,912 | 239,787 | 232,520 | 233,853 | |||||||||||||||
| Total loans secured by real estate | 3,292,286 | 3,294,453 | 3,247,069 | 3,160,268 | 3,134,514 | |||||||||||||||
| Commercial and industrial | 488,116 | 484,799 | 457,018 | 450,147 | 436,093 | |||||||||||||||
| Agriculture production | 186,058 | 188,284 | 200,215 | 175,968 | 139,533 | |||||||||||||||
| Consumer | 54,022 | 56,017 | 58,735 | 59,671 | 56,506 | |||||||||||||||
| All other loans | 3,216 | 3,628 | 3,699 | 3,981 | 4,799 | |||||||||||||||
| Total loans | 4,023,698 | 4,027,181 | 3,966,736 | 3,850,035 | 3,771,445 | |||||||||||||||
| Deferred loan fees, net | (189 | ) | (202 | ) | (218 | ) | (232 | ) | (251 | ) | ||||||||||
| Gross loans | 4,023,509 | 4,026,979 | 3,966,518 | 3,849,803 | 3,771,194 | |||||||||||||||
| Allowance for credit losses | (54,940 | ) | (54,740 | ) | (54,437 | ) | (52,516 | ) | (51,336 | ) | ||||||||||
| Net loans | $ | 3,968,569 | $ | 3,972,239 | $ | 3,912,081 | $ | 3,797,287 | $ | 3,719,858 | ||||||||||
Loans anticipated to fund in the next 90 days totaled $163.3 million at March 31, 2025, as compared to $172.5 million at December 31, 2024, and $117.2 million at March 31, 2024.
The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 304.0% of Tier 1 capital and ACL on March 31, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.4% of total loans at March 31, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 31 loans totaling $23.9 million, or 0.59% of gross loans at March 31, 2025, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.
Nonperforming loans (NPL) were $22.0 million, or 0.55% of gross loans, at March 31, 2025, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets (NPA) were $23.8 million, or 0.48% of total assets, at March 31, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs. The increase in NPLs was primarily attributable to several commercial relationships added in the third quarter of 2025 and the addition of three unrelated loans collateralized by single-family residential property in the linked quarter. The increase during the third quarter was mostly attributable to loans totaling $10 million primarily secured by two specific-purpose non-owner occupied commercial properties in different states. The loans have some guarantors in common. The properties, now vacant, were originally leased to a single tenant that became insolvent.
Our ACL at March 31, 2025, totaled $54.9 million, representing 1.37% of gross loans and 250% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans at June 30, 2024. The Company has estimated its expected credit losses as of March 31, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. Qualitative adjustments in the Company’s ACL model were increased compared to June 30, 2024, due to various factors that are relevant to determining expected collectability of credit. Additionally, a provision for credit loss was required due to loan net charge offs and to provide reserves for overdrafts in the third quarter of fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.11% (annualized) during the current period, as compared to 0.01% for the same period of the prior fiscal year. In the three-month period ended March 31, 2025, $1.1 million of net charge offs were realized, with the increase from prior periods primarily due to a single agricultural relationship with suspected fraudulent activity.
Total liabilities were $4.4 billion at March 31, 2025, an increase of $332.1 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected an increase in total deposits, other liabilities from the increase of accrued interest payable and income taxes payable, securities sold under agreements to repurchase, and FHLB advances.
Deposits were $4.3 billion at March 31, 2025, an increase of $318.3 million, or 8.1%, as compared to June 30, 2024. The deposit portfolio saw year-to-date increases in certificates of deposit and savings accounts, as customers remained willing to move balances into high yield savings accounts and special rate time deposits in the higher rate environment. Public unit balances totaled $575.8 million at March 31, 2025, a decrease of $18.8 million compared to June 30, 2024, and increased $9.8 million from December 31, 2024, the linked quarter, reflecting seasonal trends. Brokered deposits totaled $235.6 million at March 31, 2025, an increase of $61.8 million as compared to June 30, 2024, but a decrease of $18.5 million compared to December 31, 2024, the linked quarter. The average loan-to-deposit ratio for the third quarter of fiscal 2025 was 94.2%, as compared to 96.3% for the quarter ended June 30, 2024, and 92.7% for the same period of the prior fiscal year. The table below illustrates changes in deposit balances by type over recent periods:
| Summary Deposit Data as of: | Mar. 31, | Dec. 31, | Sep. 30, | June 30, | Mar. 31, | ||||||||||
| (dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||
| Non-interest bearing deposits | $ | 513,418 | $ | 514,199 | $ | 503,209 | $ | 514,107 | $ | 525,959 | |||||
| NOW accounts | 1,167,296 | 1,211,402 | 1,128,917 | 1,239,663 | 1,300,358 | ||||||||||
| MMDAs - non-brokered | 345,810 | 347,271 | 320,252 | 334,774 | 359,569 | ||||||||||
| Brokered MMDAs | 2,013 | 3,018 | 12,058 | 2,025 | 10,084 | ||||||||||
| Savings accounts | 626,175 | 573,291 | 556,030 | 517,084 | 455,212 | ||||||||||
| Total nonmaturity deposits | 2,654,712 | 2,649,181 | 2,520,466 | 2,607,653 | 2,651,182 | ||||||||||
| Certificates of deposit - non-brokered | 1,373,109 | 1,310,421 | 1,258,583 | 1,163,650 | 1,158,063 | ||||||||||
| Brokered certificates of deposit | 233,561 | 251,025 | 261,093 | 171,756 | 176,867 | ||||||||||
| Total certificates of deposit | 1,606,670 | 1,561,446 | 1,519,676 | 1,335,406 | 1,334,930 | ||||||||||
| Total deposits | $ | 4,261,382 | $ | 4,210,627 | $ | 4,040,142 | $ | 3,943,059 | $ | 3,986,112 | |||||
| Public unit nonmaturity accounts | $ | 472,010 | $ | 482,406 | $ | 447,638 | $ | 541,445 | $ | 572,631 | |||||
| Public unit certificates of deposit | 103,741 | 83,506 |
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