Southern Missouri Bancorp(US:SMBC)2025-10-22 22:15Financial Performance - Preliminary net income for Q1 fiscal 2026 was $15.7 million, an increase of $3.2 million or 25.6% year-over-year[1] - Earnings per diluted common share were $1.38, up $0.28 or 25.5% compared to the same quarter last year[2] - Net interest income for the quarter ended September 30, 2025, was $42.4 million, an increase of $5.8 million or 15.7% year-over-year, attributed to an 8.1% rise in average interest-earning assets and a 23 basis point increase in net interest margin[18] - Noninterest income decreased to $6.6 million, down $601,000 or 8.4% year-over-year, primarily due to lower loan fees and net realized gains on loan sales[21] - Net income for Q3 2025 was $15,650,000, slightly down from $15,786,000 in Q2 2025[32] Asset and Loan Growth - Gross loan balances increased by $91.2 million or 2.2% during Q1 fiscal 2026[2] - Total assets reached $5.0 billion, reflecting an increase of $16.7 million or 0.3% from June 30, 2025[5] - Total assets increased to $5,036,332 thousand as of September 30, 2025, compared to $4,729,200 thousand a year earlier, reflecting a growth of 6.5%[31] - Loans receivable, gross rose to $4,191,743 thousand, up from $3,966,518 thousand year-over-year, representing an increase of 5.7%[31] Credit Quality - Provision for credit loss (PCL) was $4.5 million, an increase of $2.3 million from the prior year[2] - Nonperforming loans (NPLs) were $26.0 million, or 0.62% of gross loans, up from $23.0 million or 0.56% at June 30, 2025[11] - The allowance for credit losses stood at $52,081 thousand, with a coverage ratio of 200.07% for nonperforming loans as of September 30, 2025[31] - Nonperforming assets totaled $27,082 thousand, which is 0.54% of total assets, compared to 0.26% a year ago, indicating a deterioration in asset quality[31] - Total nonperforming loans increased to $26,031 thousand, up from $8,206 thousand a year earlier, indicating a significant rise in credit risk[31] Dividends and Stockholder Equity - The company declared a quarterly cash dividend of $0.25 per common share, marking the 126th consecutive quarterly dividend[3] - Stockholders' equity increased to $560.2 million at September 30, 2025, up $15.5 million or 2.9% from June 30, 2025, driven by retained earnings and a decrease in accumulated other comprehensive losses[16] - Total stockholders' equity reached $560,221 thousand, an increase from $505,629 thousand year-over-year, marking a growth of 10.8%[31] - Book value per common share increased to $49.83, up from $45.06 a year earlier, reflecting a growth of 6.1%[31] Efficiency and Cost Management - Noninterest expense for the quarter was $25.1 million, a decrease of $790,000 or 3.1% compared to the prior year, mainly due to lower compensation and benefits[22] - The efficiency ratio improved to 51.1% for the quarter, compared to 59.0% in the same period last year, driven by increased net interest income and a modest decline in noninterest expenses[23] - Efficiency ratio improved to 51.1% in Q3 2025 from 54.6% in Q2 2025, indicating better cost management[33] Interest Income and Margin - Net interest margin increased to 3.57%, up from 3.34% a year ago, with net interest income rising by $5.8 million or 15.7% year-over-year[2] - Total interest income for Q3 2025 reached $73,030,000, an increase of 3.3% from $70,638,000 in Q2 2025[32] - Net interest income for Q3 2025 was $42,418,000, up 5.2% from $40,333,000 in Q2 2025[32] - The company recorded $876,000 in net interest income from loan discount accretion and liability premium amortization related to previous acquisitions, contributing seven basis points to net interest margin[19] Deposits and Cash Management - Total deposits were $4.3 billion as of September 30, 2025, a decrease of $878,000 compared to June 30, 2025, primarily due to declines in certificates of deposit and NOW accounts[15] - Brokered deposits totaled $220.5 million at September 30, 2025, a decrease of $14.6 million from June 30, 2025, with short-term brokered money market accounts partially replacing outflows[15] - Cash equivalents and time deposits decreased by $68.7 million or 35.6% compared to June 30, 2025[6] Taxation - The income tax provision increased by 12.2% to $3.8 million, with an effective tax rate of 19.5%, down from 21.3% in the prior year[24]