Southern Missouri Bancorp Reports Strong Q3 Earnings Growth
Southern Missouri Bancorp Financial Highlights for Q3
Southern Missouri Bancorp, Inc. (NASDAQ: SMBC), the parent company of Southern Bank, recently shared its preliminary results for the third quarter of its fiscal year. The bank boasts a remarkable net income of $15.7 million, which signifies a substantial increase of $4.4 million or 38.7% compared to the same quarter from the previous year. This growth is supported by impressive increases in both net interest income and noninterest income, although it was somewhat tempered by rising noninterest expenses, provision for credit losses, and income taxes.
Earnings Per Share and Financial Metrics
For the last three months, earnings per share reached $1.39, an increase of $0.40 relative to the prior year's figure of $0.99 per fully diluted common share. This growth can also be compared to the previous quarter, where earnings were reported at $1.30 per share, demonstrating consistent upward momentum for the company.
Profitability Metrics
The bank's annualized return on average assets (ROA) stood at 1.27%, while the annualized return on average common equity (ROE) was 12.1%. This compares to ROA of 0.99% and ROE of 9.5% from the same quarter last year, showing a year-over-year improvement in profitability. The net interest margin for the quarter was calculated at 3.39%, an increase from 3.15% during the same period in the previous year.
Growth in Key Financial Indicators
The bank reported a significant growth in net interest income of $39.5 million for the quarter, marking an increase of 14.4% from the prior year's corresponding quarter. Noninterest income also surged by 19.4% reflecting a robust financial position despite a previous year’s loss on available-for-sale (AFS) securities.
Loan and Deposit Growth
As of March 31, 2025, gross loan balances saw a slight decrease of $3.5 million or 0.1% compared to December 31, 2024; however, there was a significant year-over-year increase of $252.3 million or 6.7% compared to the same time last year. The deposit base also grew substantially, rising by $50.8 million or 1.2% quarter-over-quarter with a more impressive annual growth of $275.3 million or 6.9%.
Cash Reserves and Book Value
Cash equivalent and time deposits jumped by an impressive 55.5%, with a total increase of $81.1 million as of the end of March. The tangible book value per share also rose by 13.7%, bringing it to $40.37, up $4.86 compared to the prior year, underscoring the company's commitment to enhancing shareholder value.
Dividend Declaration
The Board of Directors declared a quarterly cash dividend of $0.23 per common share, slated for payment on May 30, 2025, marking the 124th consecutive quarterly cash dividend since the bank’s inception. This sustained dividend payment reflects the bank's strong financial health and provides assurance to shareholders regarding its ongoing profitability and growth trajectory.
Upcoming Conference Call
To discuss the results and other strategic initiatives further, the company has scheduled a conference call on April 22, 2025. Interested investors are invited to join and gain insights into the latest developments within Southern Missouri Bancorp, Inc.
Frequently Asked Questions
What were the main financial highlights for Southern Missouri Bancorp in Q3?
Southern Missouri Bancorp reported a net income of $15.7 million, a 38.7% rise from the previous year, with earnings per share increasing to $1.39.
How did the bank's earnings per share perform year-over-year?
The earnings per share grew by $0.40 from $0.99 in the same quarter last year to $1.39 in the current quarter.
What factors contributed to the increase in net interest income?
Increased lending volumes and better management of interest-earning assets contributed to the rise in net interest income, which reached $39.5 million.
What was the declared dividend for the upcoming quarter?
The Board declared a quarterly cash dividend of $0.23 per common share, demonstrating ongoing commitment to shareholder returns.
When will the company's next conference call take place?
The conference call is scheduled for April 22, 2025, aimed at discussing the financial results and future strategies.
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