The following is a summary of the Southern Missouri Bancorp, Inc. (SMBC) Q1 2024 Earnings Call Transcript:
Financial Performance:
Southern Missouri Bancorp's net interest margin stabilized in the third quarter, with net interest income slightly above the previous quarter due to a larger average balance sheet.
The company increased its core earnings year-over-year in spite of a challenging rate environment and higher operating expenses.
The reported diluted earnings per share for the third quarter was $0.99.
A securities loss trade resulted in a loss of over $800,000 in non-interest income.
Tangible book value per share grew by 12.9% over the last 12 months, resulting in a value of $35.51.
Gross loans increased by $39 million quarter over quarter and by $291 million year over year.
Business Progress:
The company strategically sold $18.4 million worth of bonds, reinvesting the proceedings into higher-yielding fixed-rate securities expected to recover the realized loss within 2 years.
The bank saw growth in various loan sectors, including commercial and residential real estate, multifamily, and filled construction.
Southern Missouri Bancorp has made modest stock repurchases, buying about 4,400 shares at an average price over $42. The bank has 302,000 shares remaining in its current repurchase authorization.
Despite a slight increase in some negatively-graded loans, the bank's asset quality remained strong, with loans past due decreasing compared to the previous quarter.
The company has been focused on recruiting community bankers in the new Kansas City and St. Louis markets, leading to a modest increase in non-interest expenses.
There are plans to explore merger and acquisition opportunities to expand in certain markets and potentially diversify into new platforms and offerings.
More details: Southern Missouri Bancorp IR
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