Southern Missouri Bancorp(US:SMBC)2025-09-11 19:42Market Position and Operations - The Bank's market share in Missouri is approximately 1.36%, competing for around $252.2 billion in deposits[32] - The Bank operates 62 full-service branch offices and two loan production offices as of June 30, 2025[27] - The Bank's east region has a total population of approximately 245,000, while the south region has around 433,000[30] - The Bank's northwest region includes 15 facilities with a total population of approximately 1.9 million[30] Loan Portfolio and Lending Activities - As of June 30, 2025, the total loan portfolio amounted to $4,100,768 thousand, representing an increase from $3,850,035 thousand in 2024[41] - Mortgage loans accounted for 82.09% of the total loan portfolio in 2025, up from 83.23% in 2024[41] - The amount of one- to four-family residential mortgage loans reached $992,445 thousand, a 7.25% increase from $925,397 thousand in 2024[41] - Commercial real estate loans decreased to $888,317 thousand, representing 21.94% of the total loan portfolio in 2025, down from 23.70% in 2024[41] - The total amount of other loans, including commercial and industrial loans, was $776,876 thousand, which is 19.19% of the total loan portfolio in 2025[41] - The Bank's lending activities include residential, commercial, and agricultural loans, with oversight by senior lending officers[36][37] - The Senior Loan Committee can approve lending relationships up to $10.0 million[38] Credit Quality and Allowance for Losses - The allowance for credit losses was $51,629 thousand, which is 1.28% of net loans receivable in 2025, compared to 1.38% in 2024[41] - Nonperforming loans totaled $23.04 million as of June 30, 2025, representing 0.57% of net loans, an increase from 0.18% in 2024[96] - The bank's total nonperforming assets reached $23.7 million as of June 30, 2025, compared to $10.6 million in 2024[96] - The total charge-offs for the year ended June 30, 2025, were $6.983 million, significantly higher than $2.055 million in the previous year[108] - The allowance for credit losses (ACL) at June 30, 2025, was $51.6 million, which is 218% of nonperforming assets, down from $52.5 million or 497% at June 30, 2024[103] Deposits and Funding - The Bank's deposits totaled $4.28 billion as of June 30, 2025, with 11.87% in non-interest bearing accounts and 26.45% in NOW accounts[131] - As of June 30, 2025, total deposits reached $4.28 billion, an increase of $338.3 million from the previous year[140] - The bank's net increase in deposits before interest credited was $222.5 million for the year ending June 30, 2025, compared to $115.8 million in 2024[140] - Certificates in excess of $100,000 totaled $1.2 billion as of June 30, 2025, up from $887.9 million in 2024[138] - The bank's savings accounts increased by $144.0 million to $661.1 million, representing a 15.44% share of total deposits[137] Capital Adequacy and Regulatory Compliance - The Bank's CET1 capital ratio must be at least 4.5% of risk-weighted assets to be considered adequately capitalized[179] - The minimum Tier 1 capital ratio required is 6.0% of risk-weighted assets[179] - The total capital ratio must be at least 8.0% of risk-weighted assets[179] - As of June 30, 2025, the Bank was categorized as "well capitalized" under prompt corrective action standards, exceeding the minimum capital ratios[182] - The Bank's capital adequacy is subject to regulatory capital reforms required by the Dodd-Frank Act and Basel III requirements[178] Investment Portfolio - The company's investment portfolio included $460.8 million in available-for-sale (AFS) securities as of June 30, 2025[113] - The debt and other securities portfolio totaled $101.4 million, or 2.0% of total assets, down from $123.0 million, or 2.7% of total assets at June 30, 2024[115] - The total debt and other securities portfolio was valued at $101.35 million as of June 30, 2025, with a weighted average yield of 5.00%[120] Employee and Operational Metrics - The Bank had a total of 739 employees as of June 30, 2025, comprising 696 full-time and 43 part-time employees[155] - The Bank's compliance with FHLB stock requirements was maintained with $9.4 million in stock as of June 30, 2025[168] Miscellaneous - The Bank is subject to a Missouri bank franchise tax imposed on taxable income at a rate of 4.48%[205] - The Company is subject to comprehensive regulation by the FRB under the Bank Holding Company Act[198] - The Company continues to focus on customer retention and satisfaction while offering new products to increase less rate-sensitive deposit accounts[431]