Southern Missouri Bancorp(US:SMBC)2025-02-10 22:22Financial Performance - Net income for the first six months of fiscal 2025 was $27.1 million, reflecting a 7.0% increase compared to the same period of the prior fiscal year [189]. - Net income for the three-month period ended December 31, 2024, was $14.7 million, an increase of $2.5 million, or 20.2%, compared to the same period last year [219]. - Net income for the six-month period ended December 31, 2024, was $27.1 million, an increase of $1.8 million, or 7.0% compared to the same period of the prior fiscal year [228]. - Fully-diluted net income per share available to common shareholders was $2.40, an increase of $0.17, or 7.6% compared to $2.23 for the same period of the prior fiscal year [229]. - Fully-diluted net income per share available to common shareholders was $1.30, up $0.23, or 21.5%, compared to the same quarter a year ago [220]. Asset Growth - Total assets increased by $303.4 million during the first six months of fiscal 2025, primarily due to a $175.0 million increase in net loans receivable [189]. - Total assets increased to $4.9 billion at December 31, 2024, reflecting a growth of $303.4 million, or 6.6%, compared to June 30, 2024 [198]. - Cash and cash equivalents rose to $145.8 million, an increase of $84.9 million, or 139.4%, from June 30, 2024, driven by strong deposit generation [199]. - Net loans, after accounting for the allowance for credit losses, reached $4.0 billion, up $175.0 million, or 4.6%, compared to June 30, 2024 [200]. - Deposits totaled $4.2 billion, an increase of $267.6 million, or 6.8%, from June 30, 2024, with significant growth in certificates of deposit and savings accounts [202]. Income and Expenses - Net interest income increased by $4.9 million, or 7.0%, while provision for credit losses rose by $1.3 million, or 71.7% [189]. - Noninterest income for the six-month period ended December 31, 2024, was $14.0 million, an increase of $2.5 million, or 22.2% [194]. - Noninterest expense increased by $3.2 million, or 6.6%, primarily due to higher compensation and benefits, legal and professional fees, and occupancy expenses [195]. - Noninterest income for the three-month period ended December 31, 2024, was $6.9 million, an increase of $1.2 million, or 21.7%, compared to the same period last year [224]. - Noninterest expense for the three-month period ended December 31, 2024, was $24.9 million, an increase of $1.0 million, or 4.3%, compared to the same period last year [225]. Credit Quality - Provision for credit losses was $932,000 for the three-month period ended December 31, 2024, compared to $900,000 in the same period last year [223]. - The allowance for credit losses at December 31, 2024, totaled $54.7 million, representing 1.36% of gross loans [240]. - The Company recorded net charge-offs of two basis points (annualized) during the current period, compared to seven basis points during the same period of the prior fiscal year [240]. - Total past due loans increased to $13.4 million at December 31, 2024, up from $9.2 million at June 30, 2024, primarily due to loans collateralized by 1-4 family real estate and agricultural real estate [245]. - Nonperforming assets totaled $10.8 million as of December 31, 2024, compared to $10.6 million at June 30, 2024, and $9.8 million at December 31, 2023 [248]. Capital and Liquidity - Stockholders' equity increased to $512.4 million, a rise of $23.6 million, or 4.8%, compared to June 30, 2024, primarily due to retained earnings [205]. - Total capital to risk-weighted assets ratio for the Company was 13.29% as of December 31, 2024, exceeding the required minimum of 8.00% [257]. - Tier 1 capital to average assets ratio for the Company was 10.42% as of December 31, 2024, above the required minimum of 4.00% [257]. - The Company believes its liquid resources will be sufficient to meet its liquidity needs [250]. Loan Origination and Portfolio - The Company originated $67.8 million in fixed-rate 1-to-4 family residential loans during the first six months of fiscal year 2025, compared to $62.5 million in the same period of the prior fiscal year, representing an increase of 4.2% [262]. - The fixed-rate 1-4 family residential loan portfolio was $631.3 million at December 31, 2024, up from $606.5 million at December 31, 2023, indicating a growth of 4.1% [262]. - The Company originated $197.5 million in fixed-rate commercial and commercial real estate loans during the six-month period ended December 31, 2024, compared to $151.4 million in the same period of the prior fiscal year, reflecting a significant increase of 30.5% [262]. - Adjustable-rate home equity lines of credit increased to $82.1 million at December 31, 2024, compared to $69.8 million at December 31, 2023, marking a growth of 17.0% [262]. Interest Rate Management - The interest rate spread improved to 2.79% for the three-month period ended December 31, 2024, compared to 2.69% for the same period in the prior fiscal year [207]. - The net interest margin increased to 3.36% for the three-month period ended December 31, 2024, up from 3.25% for the same period in the prior fiscal year [207]. - The average balance of interest-earning assets increased by 6.7%, and the net interest margin improved by 11 basis points, from 3.25% to 3.36% [221]. - The Company has focused on increasing originations of higher-yielding commercial loans while managing interest rate risk through various strategies [261]. - The Asset/Liability Committee meets monthly to review interest rate risk and trends, ensuring effective management of the Company's asset and liability policies [268].