Southern Missouri Bancorp Reports Preliminary Fiscal 2013 Second Quarter And Year-to-date Results, Declares Dividend Of $0.15 Per Common Share, Schedules Conference Call To Discuss Results For January 29 At 3:30pm CST

Poplar Bluff, Missouri, Jan. 25, 2013 (GLOBE NEWSWIRE) -- Highlights:

·         Preliminaryfiscal year 2013 second quarter earnings per common share (diluted)reported at $.72, down from $.95 in the year ago period, as averagefully-diluted common shares outstanding increased from 2.7 millionin the year ago period to 3.4 million in the current quarter, andnet income available to common shareholders decreased to $2.4million, as compared to $2.6 million in the year ago period. The increase in average shares outstanding was a result of thecommon stock offering completed in November 2011.  Earningsper common share (diluted) were up $.01, as compared to the $.71earned in the first quarter of fiscal 2013, the linked quarter.

·         For the secondquarter of fiscal 2013, the Company generated an annualized returnon average assets of 1.32% and an annualized return on averagecommon equity of 12.5%, as compared to 1.44% and 17.1%,respectively, for the same period of the prior year.  In thefirst quarter of fiscal 2013, the linked quarter, the annualizedreturn on average assets was 1.41%, and the annualized return onaverage common equity was 12.6%. 

·         Net interestmargin for the second quarter of fiscal 2013 was 4.17%, up from the4.12% reported for the year ago period, but down from the netinterest margin of 4.30% for the first quarter of fiscal 2013, thelinked quarter.

·         Noninterestincome was up 24.3% for the second quarter of fiscal 2013, comparedto the year ago period, and up 5.5% from the first quarter offiscal 2013, the linked quarter.

·         Noninterestexpense was up 14.3% for the second quarter of fiscal 2013,compared to the year ago period, and up 7.6% from the first quarterof fiscal 2013, the linked quarter.

·         The Companyposted loan growth of $36.0 million, or 6.2%, during the first sixmonths of fiscal 2013; deposits increased $21.6 million, or3.7%.  Investment balances were up slightly, and cash balancesdecreased. 

·         Non-performingassets and non-performing loans increased in the first six monthsof fiscal 2013, but were down from totals reported for at September30, 2012, as the Company worked through the resolution process ofseveral previously classified credits.

Southern Missouri Bancorp, Inc. ("Company") (NASDAQ: SMBC), theparent corporation of Southern Bank ("Bank"), today announcedpreliminary net income available to common shareholders for thesecond quarter of fiscal 2013 of $2.4 million, a decrease of$122,000, or 4.8%, as compared to $2.6 million in net incomeavailable to common shareholders earned during the same period ofthe prior fiscal year.  The decrease was attributableprimarily to an increase in noninterest expense and an increase inprovision for loan losses, partially offset by decreases inprovisions for income taxes and increases in noninterest income andnet interest income.  Preliminary net income available tocommon shareholders was $.72 per fully diluted common share for thesecond quarter of fiscal 2013, a decrease of 24.2%, as compared tothe $.95 per fully diluted common share earned during the sameperiod of the prior fiscal year. The decrease was primarily theresult of higher average fully diluted common shares outstandingfollowing the common stock offering completed in November2011.  Before the dividend on preferred shares of $50,000,preliminary net income for the first quarter of fiscal 2013 was$2.5 million, a decrease of $194,000, or 7.2%, as compared to thesame period of the prior fiscal year. 

Dividend Declared:

The Company is pleased to announce that the Board of Directors,on January 22, 2013, declared its 75 th consecutivequarterly dividend on common stock since the inception of theCompany.  The cash dividend of $.15 per common share will bepaid on February 28, 2013, to common stockholders of record at theclose of business on February 15 , 2013.  TheBoard of Directors and management believe the payment of aquarterly cash dividend enhances shareholder value and demonstratesour commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review theinformation provided in this press release on Tuesday, January 29,2013, at 3:30 p.m., CST (4:30 p.m., EST).  The call will beavailable live to interested parties by calling 1-888-317-6016 inthe United States (Canada: 1-855-669-9657, international:1-412-317-6016).  Following the call, telephone playback willbe available one hour following the conclusion of the call, until8:00 a.m., CST, on February 13, 2013.  The playback may beaccessed by dialing 1-877-344-7529 (international: 1-412-317-0088),and using the conference passcode 10024377.

Balance Sheet Summary:

The Company experienced balance sheet growth in the first sixmonths of fiscal 2013, with total assets increasing $31.0 million,or 4.2%, to $770.2 million at December 31, 2012, as compared to$739.2 million at June 30, 2012.  Balance sheet growth wasprimarily due to growth in loan balances, funded by deposit growth,reductions in cash equivalent balances, and by increases insecurities sold under agreements to repurchase. 

Available-for-sale investments increased $2.5 million, or 3.3%,to $77.6 million at December 31, 2012, as compared to $75.1 millionat June 30, 2012.  Increases in US agency obligations andmunicipal obligations were partially offset by decreases inmortgage-backed securities.  Cash and equivalents were down$16.3 million, redeployed into earning assets, primarily loans.

Loans, net of the allowance for loan losses, increased $36.0million, or 6.2%, to $619.4 million at December 31, 2012, ascompared to $583.5 million at June 30, 2012.  Loan balanceswere up due primarily to increases in commercial real estate andresidential (primarily multifamily) real estate loans, partiallyoffset by decreases in equipment and operating lines foragricultural and commercial borrowers, as well as decreases inconstruction loan balances.  The decrease in agriculturaloperating lines is primarily seasonal and would be expected tocontinue through the March 31 quarter.

Non-performing loans were $2.2 million, or 0.35% of gross loans,at December 31, 2012, as compared to $2.4 million, or 0.41% ofgross loans, at June 30, 2012; non-performing assets were $5.9million, or 0.77% of total assets, at December 31, 2012, ascompared to $4.0 million, or 0.54% of total assets, at June 30,2012. Our allowance for loan losses at December 31, 2012, totaled$7.9 million, representing 1.26% of gross loans and 359% ofnon-performing loans, as compared to $7.5 million, or 1.27% ofgross loans, and 312% of non-performing loans, at June 30,2012.  The increase in non-performing assets was due primarilyto a single relationship which accounted for $2.4 million inforeclosed real estate balances at December 31, 2012; the majorityof the foreclosed property value is commercial real estate. (The loan relationship had migrated from classified to non-accrualstatus during the quarter ended September 30, 2012.)  For allimpaired loans, the Company has measured impairment under ASC310-10-35, and management believes the allowance for loan losses atSeptember 30, 2012, is adequate, based on that measurement.

Total liabilities increased $26.8 million to $671.3 million atDecember 31, 2012, an increase of 4.2% as compared to $644.5million at June 30, 2012.  This growth was primarily theresult of an increase in deposit accounts and securities sold underagreements to repurchase.    

Deposits increased $21.6 million, or 3.7%, to $606.4 million atDecember 31, 2012, as compared to $584.8 million at June 30,2012.  Of the increase, $7.8 million was attributable topublic unit funds, and was somewhat seasonal in nature. Increased balances were noted in interest-bearing checking,noninterest checking, and certificate of deposit balances,partially offset by a decline in savings accounts.  Theaverage loan-to-deposit ratio for the second quarter of fiscal 2013was 105.8%, as compared to 94.6% for the same period of the priorfiscal year. 

FHLB advances were $24.5 million at December 31, 2012, unchangedin comparison to June 30, 2012; however, overnight FHLB advanceswere utilized during the first six months of fiscal 2013 (theaverage amount of overnight borrowings was $11.5 million). Securities sold under agreements to repurchase totaled $30.9million at December 31, 2012, as compared to $25.6 million at June30, 2012, an increase of 20.7%, attributable mostly to seasonalinflows from public units.  At both dates, the full balance ofrepurchase agreements was held by local small business andgovernment counterparties. 

The Company's stockholders' equity increased $4.2 million, or4.4%, to $98.9 million at December 31, 2012, from $94.7 million atJune 30, 2012.  The increase was due primarily to retention ofnet income, partially offset by cash dividends paid on common andpreferred stock.

Income Statement Summary:

The Company's net interest income for the three-month periodended December 31, 2012, was $7.3 million, an increase of $9,000,or 0.1%, as compared to the same period of the prior fiscalyear.  For the six-month period ended December 31, 2012, netinterest income was $14.8 million, a decrease of $49,000, or 0.3%,as compared to the same period of the prior fiscal year.  Forthe three-month period, the increase, as compared to the priorfiscal year, was attributable to an increase in net interestmargin, from 4.12% to 4.17%, partially offset by a 1.1% decline inthe average balance of interest-earning assets.  For thesix-month period, the decrease, as compared to the prior fiscalyear, was attributable to a decline in the net interest margin,from 4.27% to 4.23%, partially offset by a 0.4% increase in averageinterest-earning assets.  In December 2010, the Companyacquired from the FDIC, as receiver, most of the assets andsubstantially all of the liabilities of the former First SouthernBank (the Acquisition).  Accretion of fair value discount onloans and amortization of fair value premiums on time depositsrelated to the Acquisition declined from $1.0 million in the secondquarter of fiscal 2012 to $366,000 in the second quarter of fiscal2013.  The change in this component reduced net interestincome by $637,000 and net interest margin by 36 basis points forthe current quarter as compared to the year ago period. Accretion of fair value discount on loans and amortization of fairvalue premiums on time deposits related to the Acquisition declinedfrom $2.2 million in the first six months of fiscal 2012 to$895,000 in the first six months of fiscal 2013.  The changein this component reduced net interest income by $1.3 million andnet interest margin by 36 basis points for the current fiscal yearto date as compared to the year ago period.  The Companyexpects the impact of the fair value discount accretion to continueto decline, over time, as the assets acquired at a discountcontinue to mature or prepay.

The provision for loan losses for the three- and six-monthperiods ended December 31, 2012, was $462,000 and $1.1 million,respectively, as compared to $345,000 and $862,000, respectively,in the same periods of the prior fiscal year.  As a percentageof average loans outstanding, provision for the current three-andsix-month periods represented annualized charges of 0.30% and0.35%, respectively, as compared to 0.25% and 0.31%, respectively,for the same periods of the prior fiscal year.  The increasein provision for the three- and six-month periods ended December31, 2012, as compared to the same periods of the prior fiscal year,was attributed to higher net charge offs, strong loan growth, andan increase in nonperforming credits.  Net charge offs for thesix-month period ended December 31, 2012, were 0.21% of averageloans, as compared to 0.09% for the same period of the prior fiscalyear.

The Company's noninterest income for the three- and six-monthperiods ended December 31, 2012, was $1.1 million and $2.2 million,respectively, increases of $219,000, or 24.3%, and $162,000, or8.1%, respectively, as compared to the same periods of the priorfiscal year.  The increase was attributed primarily toincreased deposit account charges and fees (resulting fromtransaction account growth and increased NSF activity), increasesin the cash value of bank-owned life insurance (resulting from anadditional investment in such policies in March 2012), and higherbank card network interchange revenues (resulting from additionalbank card transaction volume).  The three-month periodcomparison was additionally improved as a result of bettersecondary market loan sales, while the six-month period comparisonwas less favorable as a result of inclusion in the prior period'sresult of the settlement of a legal claim obtained in theAcquisition.

Noninterest expense for the three- and six-month periods endedDecember 31, 2012, was $4.4 million and $8.6 million, respectively,increases of $557,000, or 14.3%, and $912,000, or 11.9%,respectively, as compared to the same periods of the prior fiscalyear.  The increases were primarily attributable to highercompensation and occupancy expenses, additional expenses related toforeclosed property, and smaller gains on the sale of foreclosedproperty, partially offset by a decline in the cost of providinginternet and mobile banking services.  The efficiency ratiofor the three- and six-month periods ended December 31, 2012, was52.6% and 50.7%, respectively, as compared to 47.2%  and45.6%, respectively, for the same periods of the prior fiscalyear.  The deterioration for the three- and six-month ratiosresulted from increases of 14.3% and 11.9%, respectively, inexpenses, partially offset by increases of 2.8% and 0.7%,respectively, in revenues. 

The income tax provision for the three- and six-month periodsended December 31, 2012, was $1.1 million and $2.2 million,respectively, decreases of $252,000, or 19.1%, and $556,000, or20.1%, respectively, as compared to the same periods of the priorfiscal year.  The declines were attributed primarily to adecrease in pre-tax income, as well as a decline in the effectivetax rate, from 33.0% and 33.3%, respectively,  in the three-and six-month periods ended December 31, 2011, to 30.0% and 30.3%,respectively, in the three- and six-month periods ended December31, 2012.  The decreases in the effective tax rates wereattributed to continued investments in tax-advantaged assets, andthe lower level of pre-tax income.  

Forward-Looking Information:

Except for the historical information contained herein, thematters discussed in this press release may be deemed to beforward-looking statements that are subject to known and unknownrisks, uncertainties, and other factors that could cause the actualresults to differ materially from the forward-looking statements,including: the strength of the United States economy in general andthe strength of the local economies in which we conduct operations;fluctuations in interest rates and in real estate values; monetaryand fiscal policies of the Board of Governors of the FederalReserve System and the U.S. Government and other governmentalinitiatives affecting the financial services industry; the risks oflending and investing activities, including changes in the leveland direction of loan delinquencies and write-offs and changes inestimates of the adequacy of the allowance for loan losses; ourability to access cost-effective funding; the timely development ofand acceptance of our new products and services and the perceivedoverall value of these products and services by users, includingthe features, pricing and quality compared to competitors' productsand services; expected cost savings, synergies and other benefitsfrom the Company's merger and acquisition activities might not berealized within the anticipated time frames or at all, and costs ordifficulties relating to integration matters, including but notlimited to customer and employee retention, might be greater thanexpected; fluctuations in real estate values and both residentialand commercial real estate market conditions; demand for loans anddeposits in our market area; legislative or regulatory changes thatadversely affect our business; results of examinations of us by ourregulators, including the possibility that our regulators may,among other things, require us to increase our reserve for loanlosses or to write-down assets; the impact of technologicalchanges; and our success at managing the risks involved in theforegoing. Any forward-looking statements are based uponmanagement's beliefs and assumptions at the time they are made. Weundertake no obligation to publicly update or revise anyforward-looking statements or to update the reasons why actualresults 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, theforward-looking statements discussed might not occur, and youshould not put undue reliance on any forward-lookingstatements.
Southern MissouriBancorp, Inc.  
UNAUDITED CONDENSEDCONSOLIDATED FINANCIAL INFORMATION  
             
Summary Balance Sheet Data asof:          December 31,2012  June 30,2012  
               
Cash and equivalents          $            18,452,000  $            34,694,000  
Available for sale securities                        77,635,000                75,127,000  
Membership stock (1)                          3,019,000                  3,019,000  
Loans receivable, gross                      627,330,000              590,957,000  
   Allowance for loan losses                          7,920,000                  7,492,000  
Loans receivable, net                      619,410,000              583,465,000  
Bank-owned life insurance                        16,212,000                15,957,000  
Intangible assets                          1,249,000                  1,458,000  
Premises and equipment                        15,302,000                11,347,000  
Other assets                        18,913,000                14,122,000  
   Total assets          $          770,192,000  $          739,189,000  
               
Interest-bearing deposits          $          544,951,000  $          530,001,000  
Noninterest-bearing deposits                        61,454,000                54,813,000  
Securities sold under agreements torepurchase                        30,945,000                25,642,000  
FHLB advances                        24,500,000                24,500,000  
Other liabilities                          2,200,000                  2,288,000  
Subordinated debt                          7,217,000                  7,217,000  
   Total liabilities                      671,267,000              644,461,000  
               
Preferred stock                        20,000,000                20,000,000  
Common stockholders' equity                        78,925,000                74,728,000  
   Total stockholders' equity                        98,925,000                94,728,000  
               
   Total liabilities andstockholders' equity          $          770,192,000  $          739,189,000  
               
Equity to assets ratio         12.84% 12.82%  
Common shares outstanding                          3,254,000                  3,248,000  
Book value per common share          $                      24.25  $                      23.01  
Closing market price                                 22.45                         21.50  
               
Nonperforming asset data asof:          December 31,2012  June 30,2012  
               
Nonaccrual loans          $              2,191,000  $              2,398,000  
Accruing loans 90 days or more past due                               18,000                               -    
Nonperforming troubled debt restructurings(2)                                       -                                 -    
   Total nonperforming loans                          2,209,000                  2,398,000  
Other real estate owned (OREO)                          3,462,000                  1,426,000  
Personal property repossessed                             114,000                         9,000  
Nonperforming investment securities                             125,000                     125,000  
   Total nonperforming assets          $              5,910,000  $              3,958,000  
               
Total nonperforming assets to totalassets         0.77% 0.54%  
Total nonperforming loans to gross loans         0.35% 0.41%  
Allowance for loan losses to nonperformingloans         358.53% 312.43%  
Allowance for loan losses to gross loans         1.26% 1.27%  
               
Performing troubled debt restructurings          $              3,515,000  $              3,138,000  
             
     (1) Federal Home Loan Bank and Federal Reserve Bank ofSt. Louis membership stock    
     (2) reported here only if not otherwise listed asnonperforming (i.e., nonaccrual or 90+ days past due)    
                               
     For thethree-month period ended    For the six-monthperiod ended
Average Balance SheetData:    December 31,2012  December 31,2011    December 31,2012  December 31,2011
             
Interest-bearing cash equivalents    $              8,350,000  $            80,800,000    $            10,129,000  $            62,540,000
Available for sale securities and         membershipstock                  77,466,000                70,080,000                  76,257,000                68,429,000
Loans receivable, gross                617,495,000              559,925,000                610,245,000              562,946,000
   Total interest-earningassets                703,311,000              710,805,000                696,631,000              693,915,000
Other assets                  50,471,000                30,801,000                  47,714,000                29,328,000
   Total assets    $          753,782,000  $          741,606,000    $          744,345,000  $          723,243,000
             
Interest-bearing deposits    $          527,902,000  $          550,620,000    $          524,331,000  $          541,335,000
Securities sold under agreements to         repurchase                  26,858,000                27,087,000                  25,713,000                26,438,000
FHLB advances                  37,918,000                33,500,000                  36,024,000                33,500,000
Subordinated debt                    7,217,000                  7,217,000                    7,217,000                  7,217,000
   Total interest-bearingliabilities                599,895,000              618,424,000                593,285,000              608,490,000
Noninterest-bearing deposits                  55,519,000                41,382,000                  53,816,000                39,175,000
Other noninterest-bearing liabilities                       358,000                  1,996,000                       336,000                  3,205,000
   Total liabilities                655,772,000              661,802,000                647,437,000              650,870,000
             
Preferred stock                  20,000,000                20,000,000                  20,000,000                18,682,000
Common stockholders' equity                  78,010,000                59,804,000                  76,908,000                53,691,000
   Total stockholders' equity                  98,010,000                79,804,000                  96,908,000                72,373,000
             
   Total liabilities andstockholders'         equity    $          753,782,000  $          741,606,000    $          744,345,000  $          723,243,000
     For thethree-month period ended    For the six-monthperiod ended
Summary Income StatementData:    December 31,2012  December 31,2011    December 31,2012  December 31,2011
             
Interest income:            
   Cash equivalents    $                   11,000  $                   52,000    $                   30,000  $                   81,000
      Available forsale securities and         membershipstock   457,000 634,000   945,000 1,263,000
   Loans receivable                    8,730,000                  9,257,000                  17,584,000                18,813,000
      Total interestincome                    9,198,000                  9,943,000                  18,559,000                20,157,000
Interest expense:            
   Deposits                    1,497,000                  2,163,000                    3,076,000                  4,446,000
   Securities sold underagreements         to repurchase                         54,000                       59,000                       102,000                     119,000
   FHLB advances                       259,000                     339,000                       513,000                     679,000
   Subordinated debt                         58,000                       60,000                       117,000                     114,000
      Total interestexpense                    1,868,000                  2,621,000                    3,808,000                  5,358,000
Net interest income                    7,330,000                  7,322,000                  14,751,000                14,799,000
Provision for loan losses                       462,000                     345,000                    1,073,000                     862,000
Noninterest income                    1,118,000                     899,000                    2,178,000                  2,016,000
Noninterest expense                    4,440,000                  3,884,000                    8,579,000                  7,667,000
Income taxes                    1,065,000                  1,317,000                    2,206,000                  2,761,000
Net income                    2,481,000                  2,675,000                    5,071,000                  5,525,000
   Less: effective dividendon         preferredshares                         50,000                     122,000                       245,000                     352,000
      Net incomeavailable to         commonshareholders    $              2,431,000  $              2,553,000    $              4,826,000  $              5,173,000
             
Basic earnings per common share    $                        0.75  $                        0.98    $                        1.49  $                        2.21
Diluted earnings per common         share                             0.72                           0.95                             1.43                           2.12
Dividends per common share                             0.15                           0.12   0.30 0.24
Average common shares         outstanding:            
   Basic                    3,249,000                  2,595,000                    3,249,000                  2,345,000
   Diluted                    3,383,000                  2,687,000                    3,382,000                  2,434,000
             
Return on average assets   1.32% 1.44%   1.36% 1.53%
Return on average common         shareholders'equity   12.5% 17.1%   12.6% 19.3%
             
Net interest margin   4.17% 4.12%   4.23% 4.27%
Net interest spread   3.98% 3.90%   4.05% 4.05%
             
Efficiency ratio   52.6% 47.2%   50.7% 45.6%
CONTACT: Matt Funke 573-778-1800

Lorna Brannum