EX-99.1 2 smbc-20241028xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

FOR IMMEDIATE RELEASE

Contact: Stefan Chkautovich, CFO

October 28, 2024

(573) 778-1800

SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FIRST QUARTER OF FISCAL 2025;

DECLARES QUARTERLY DIVIDEND OF $0.23 PER COMMON SHARE;

CONFERENCE CALL SCHEDULED FOR TUESDAY, OCTOBER 29, AT 9:30AM CENTRAL TIME

Poplar Bluff, Missouri - Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the first quarter of fiscal 2025 of $12.5 million, a decrease of $693,000 or 5.3%, as compared to the same period of the prior fiscal year. The decrease was due primarily to higher provision for credit loss (“PCL”) expense, as well as higher non-interest expense. This was partially offset by an increase in net interest income. Preliminary net income was $1.10 per fully diluted common share for the first quarter of fiscal 2025, a decrease of $0.06 as compared to $1.16 per fully diluted common share reported for the same period of the prior fiscal year. During the first quarter of fiscal 2025, the Company engaged with a consultant to complete a performance improvement project to enhance operations and revenues of the Bank. The one-time cost associated with this review totaled $840,000, reduced after-tax net income by $652,000, or $0.06 per fully diluted common share, and was a primary reason for the increase in non-interest expense during the current period, noted in further detail below.

Highlights for the first quarter of fiscal 2025:

Earnings per common share (diluted) were $1.10, down $0.06, or 5.2%, as compared to the same quarter a year ago, and down $0.09, or 7.6% from the fourth quarter of fiscal 2024, the linked quarter.

Annualized return on average assets (“ROA”) was 1.07%, while annualized return on average common equity (“ROE”) was 10.0%, as compared to 1.20% and 11.7%, respectively, in the same quarter a year ago, and 1.17% and 11.2%, respectively, in the fourth quarter of fiscal 2024, the linked quarter. The one-time costs of the performance review recognized in the current quarter reduced after-tax ROA by six basis points.

Net interest margin for the quarter was 3.37%, down from the 3.44% reported for the year ago period, and up from 3.25% reported for the fourth quarter of fiscal 2024, the linked quarter. Net interest income increased $1.3 million, or 3.6%, as compared to the same quarter a year ago, and increased $1.6 million, or 4.5%, as compared to the fourth quarter of fiscal 2024, the linked quarter.

Noninterest expense was up 9.0% for the quarter, as compared to the year ago period, primarily from increased compensation and benefits and legal and professional fees, and up 3.4% from the fourth quarter of fiscal 2024, the linked quarter. In the current quarter, legal and professional fees increased as the Bank incurred one-time costs of $840,000 associated with a performance improvement project.

Gross loan balances increased by $116.7 million during the first quarter of fiscal 2025, or 3.0%, and increased by $266.8 million, or 7.2%, over the last twelve months.

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PCL was $2.2 million during the first quarter of fiscal 2025, a $1.3 million increase from both the year ago period and the June 30, 2024, linked quarter. The increase was primarily due to an increase in the allowance for credit losses (“ACL”) attributable to individually evaluated loans, loan growth, and an increase in modeled expected losses.

Deposit balances increased by $97.1 million during the first quarter of fiscal 2025, or 2.5%, and increased by $208.4 million, or 5.4%, over the last twelve months.

Tangible book value per share was $38.26, and increased by $5.14 or 15.5% during the last twelve months.

Dividend Declared:

The Board of Directors, on October 22, 2024, declared a quarterly cash dividend on common stock of $0.23, payable November 29, 2024, to stockholders of record at the close of business on November 15, 2024, marking the 122nd consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Tuesday, October 29, 2024, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 523822. Telephone playback will be available beginning one hour following the conclusion of the call through November 2, 2024. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 217957.

Balance Sheet Summary:

The Company experienced balance sheet growth in the first three months of fiscal 2025, with total assets of $4.7 billion at September 30, 2024, reflecting an increase of $124.9 million, or 2.7%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable and cash equivalents and time deposits.

Cash equivalents and time deposits were $75.6 million at September 30, 2024, an increase of $14.2 million, or 23.1%, as compared to June 30, 2024. Available for sale securities were $420.2 million at September 30, 2024, down $7.7 million, or 1.8%, as compared to June 30, 2024, as the Company was less active in reinvesting principal payments received.

Loans, net of the ACL, were $3.9 billion at September 30, 2024, increasing by $114.8 million, or 3.0%, as compared to June 30, 2024. The Company noted growth in both the real estate and commercial portfolios. Real estate loan growth was primarily driven by drawn construction, 1-4 family residential, and owner occupied commercial real estate loan balances. This was somewhat offset by a decrease in loans secured by multi-family property. In the commercial portfolio, growth was driven by seasonal agricultural production loan draws and modest growth in commercial and industrial loan balances. The table below illustrates changes in loan balances by type over recent periods:

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Summary Loan Data as of:

    

Sept 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

(dollars in thousands)

2024

2024

2024

2023

2023

1-4 residential real estate

$

942,916

$

925,397

$

903,371

$

893,940

$

875,666

Non-owner occupied commercial real estate

903,678

899,770

898,911

863,426

846,875

Owner occupied commercial real estate

438,030

427,476

412,958

403,109

422,824

Multi-family real estate

371,177

384,564

417,106

380,632

365,890

Construction and land development

 

567,002

 

499,587

 

495,284

562,773

620,313

Agriculture real estate

 

239,787

 

232,520

 

233,853

 

238,093

 

239,787

Total loans secured by real estate

3,462,590

3,369,314

3,361,483

3,341,973

3,371,355

Commercial and industrial

 

457,018

 

450,147

 

436,093

443,532

431,178

Agriculture production

 

200,215

 

175,968

 

139,533

146,254

164,631

Consumer

58,735

59,671

56,506

57,771

58,706

All other loans

3,699

3,981

4,799

7,106

6,724

Total loans

4,182,257

4,059,081

3,998,414

3,996,636

4,032,594

Unfunded commitments on construction loans

(215,521)

(209,046)

(226,969)

(264,483)

(332,633)

Deferred loan fees, net

(218)

(232)

(251)

(263)

(282)

Gross loans

3,966,518

3,849,803

3,771,194

3,731,890

3,699,679

Allowance for credit losses

(54,437)

(52,516)

(51,336)

(50,084)

(49,122)

Net loans

$

3,912,081

$

3,797,287

$

3,719,858

$

3,681,806

$

3,650,557

Loans anticipated to fund in the next 90 days totaled $168.0 million at September 30, 2024, as compared to $157.1 million at June 30, 2024, and $158.2 million at September 30, 2023.

The Bank’s concentration in non-owner occupied commercial real estate, as defined for regulatory purposes, is estimated at 320.1% of Tier 1 capital and ACL at September 30, 2024, as compared to 317.5% as of June 30, 2024, the linked quarter end, with these loans representing 46.4% of gross loans at September 30, 2024. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or having exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 34 loans totaling $24.9 million, or 0.63% of gross loans at September 30, 2024, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans were $8.2 million, or 0.21% of gross loans, at September 30, 2024, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets were $12.1 million, or 0.26% of total assets, at September 30, 2024, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The change in nonperforming assets was attributable to the increase of $1.5 million in nonperforming loans, of which the largest individual loan was collateralized by a single-family residential property.

Our ACL at September 30, 2024, totaled $54.4 million, representing 1.37% of gross loans and 663% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of September 30, 2024, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as the Federal Reserve has tightened monetary policy to address inflation risks. Qualitative adjustments in the Company’s ACL model were slightly decreased compared to June 30, 2024. The Company increased the allowance attributable to classified hotel loans that have been slow to recover from the COVID-19 pandemic. Additionally, PCL was required due to loan growth in the first quarter of fiscal year 2025 and a slight increase in modeled expected losses due to a modest increase in

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the unemployment rate expectations. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.01% (annualized) during the current period, as compared to 0.03% for the same period of the prior fiscal year.

Total liabilities were $4.2 billion at September 30, 2024, an increase of $108.0 million, or 2.6%, as compared to June 30, 2024.

Deposits were $4.0 billion at September 30, 2024, an increase of $97.1 million, or 2.5%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into high yield savings accounts and special rate time deposits during the higher rate environment. Public unit balances totaled $510.5 million at September 30, 2024, a decrease of $84.1 million compared to June 30, 2024, due to the Company losing the bid to retain a larger local public unit depositor, and also experienced expected seasonal decreases in these accounts. Brokered deposits totaled $273.2 million at September 30, 2024, an increase of $99.4 million compared to June 30, 2024. The Company increased brokered deposits in the quarter due to more attractive pricing for brokered certificates of deposits relative to local market rates and the need to meet seasonal loan demand. The average loan-to-deposit ratio for the first quarter of fiscal 2025 was 98.4%, as compared to 96.3% for the linked quarter. The table below illustrates changes in deposit balances by type over recent periods:

Summary Deposit Data as of:

    

Sep. 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

(dollars in thousands)

2024

2024

2024

2023

2023

Non-interest bearing deposits

$

503,209

$

514,107

$

525,959

$

534,194

$

583,353

NOW accounts

1,128,917

1,239,663

1,300,358

1,304,371

1,231,005

MMDAs - non-brokered

320,252

334,774

359,569

378,578

415,115

Brokered MMDAs

12,058

2,025

10,084

20,560

20,272

Savings accounts

 

556,030

 

517,084

 

455,212

372,824

313,135

Total nonmaturity deposits

 

2,520,466

 

2,607,653

 

2,651,182

 

2,610,527

 

2,562,880

Certificates of deposit - non-brokered

 

1,258,583

 

1,163,650

 

1,158,063

1,194,993

1,066,165

Brokered certificates of deposit

 

261,093

 

171,756

 

176,867

179,980

202,683

Total certificates of deposit

1,519,676

1,335,406

1,334,930

1,374,973

1,268,848

Total deposits

$

4,040,142

$

3,943,059

$

3,986,112

$

3,985,500

$

3,831,728

Public unit nonmaturity accounts

$

447,638

$

541,445

$

572,631

$

544,873

$

491,868

Public unit certificates of deposit

62,882

53,144

51,834

49,237

52,989

Total public unit deposits

$

510,520

$

594,589

$

624,465

$

594,110

$

544,857

FHLB advances were $107.1 million at September 30, 2024, a decrease of $5.0 million, or 4.9%, from June 30, 2024, due to maturing advances which were not renewed. For the quarter ended September 30, 2024, the Company continued to have no FHLB overnight borrowings at the end of the period.  

The Company’s stockholders’ equity was $505.6 million at September 30, 2024, an increase of $16.9 million, or 3.5%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a decrease in accumulated other comprehensive losses (“AOCL”) as the market value of the Company’s investments appreciated due to decreases in market interest rates. The AOCL decreased from $17.4 million at June 30, 2024, to $10.6 million at September 30, 2024. The Company does not hold any securities classified as held-to-maturity.

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Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended September 30, 2024, was $36.7 million, an increase of $1.3 million, or 3.6%, as compared to the same period of the prior fiscal year. The increase was attributable to a 5.9% increase in the average balance of interest-earning assets in the current three-month period, as compared to the same period a year ago, partially offset by a seven-basis point decrease in net interest margin, from 3.44% to 3.37%, as the cost of interest-bearing liabilities increased by 70 basis points, outpacing the 54-basis point increase in the yield earned on interest earning assets. Net interest income for the three-month period ended September 30, 2024, grew $1.6 million, or 4.5%, as compared to the June 30, 2024, linked quarter, attributable to a 12-basis point increase in the net interest margin and a 0.7% increase in the average balance of interest-earning assets. The primary driver of the net interest margin expansion, compared to the linked quarter, was the 21-basis point increase in the yield on interest-earning assets, partially offset by the 11-basis point increase in the cost of interest-bearing liabilities. Contributing to the margin increase, the average loan to deposit ratio increased by 2.4 percentage points in the current period, as compared to the linked quarter, as the balance sheet composition shifted toward higher yielding assets.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $975,000 in net interest income for the three-month period ended September 30, 2024, as compared to $1.7 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed nine basis points to net interest margin in the three-month period ended September 30, 2024, as compared to a 16-basis point contribution for the same period of the prior fiscal year, and as compared to a ten-basis point contribution in the linked quarter ended June 30, 2024, when net interest margin was 3.25%.

The Company recorded a PCL of $2.2 million in the three-month period ended September 30, 2024, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $138,000 provision attributable to the allowance for off-balance sheet credit exposures.

The Company’s noninterest income for the three-month period ended September 30, 2024, was $7.2 million, an increase of $1.3 million, or 22.6%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to other loan fees, deposit account charges and related fees, bank card interchange income, and net realized gains on sale of loans. Net realized gains on sale of loans increased due to sales of Small Business Administration loans. These increases were partially offset by lower loan late charges, wealth management fees, and other non-interest income. Other non-interest income decreased primarily due to modest losses on the disposal of fixed assets, which were comprised of various equipment.

Noninterest expense for the three-month period ended September 30, 2024, was $25.8 million, an increase of $2.1 million, or 9.0%, as compared to the same period of the prior fiscal year. In the current quarter, this increase in noninterest expense was attributable primarily to increases in compensation and benefits, legal and professional fees, occupancy and equipment, and advertising expenses. The increase in compensation and benefits expense was primarily due to a trend increase in employee headcount, as well as annual merit increases. Legal and professional expenses increased primarily due to a one-time expense associated with a performance improvement project that started during the first fiscal quarter of 2025, as discussed above. This expense was fully realized in the September quarter, with only modest reimbursables remaining to be recognized in later quarters. Occupancy and equipment expenses increased primarily due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. Advertising activity in the current quarter increased marketing expenses compared to the same quarter of the prior fiscal year.

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The efficiency ratio for the three-month period ended September 30, 2024, was 59.0%, as compared to 57.5% in the same period of the prior fiscal year. The change was attributable to noninterest expense growing faster than revenues. Excluding the one-time performance improvement project costs, the efficiency ratio for the first quarter of 2025 would have been lower by two percentage points.

The income tax provision for the three-month period ended September 30, 2024, was $3.4 million, a decrease of 3.2%, as compared to the same period of the prior fiscal year, primarily due to the decrease in net income before income taxes. The effective tax rate was 21.3% as compared to 21.0% in the same quarter of the prior fiscal year.  

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development of and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors' products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for loan losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results 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, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

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Southern Missouri Bancorp, Inc.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

Summary Balance Sheet Data as of:

    

Sep. 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

 

(dollars in thousands, except per share data)

2024

2024

2024

2023

2023

 

Cash equivalents and time deposits

$

75,591

$

61,395

$

168,763

$

217,090

$

89,180

Available for sale (AFS) securities

 

420,209

 

427,903

 

433,689

 

417,406

 

405,198

FHLB/FRB membership stock

 

18,064

 

17,802

 

17,734

 

18,023

 

19,960

Loans receivable, gross

 

3,966,518

 

3,849,803

 

3,771,194

 

3,731,890

 

3,699,679

Allowance for credit losses

 

54,437

 

52,516

 

51,336

 

50,084

 

49,122

Loans receivable, net

 

3,912,081

 

3,797,287

 

3,719,858

 

3,681,806

 

3,650,557

Bank-owned life insurance

 

74,119

 

73,601

 

73,101

 

72,618

 

72,144

Intangible assets

 

76,340

 

77,232

 

78,049

 

79,088

 

80,117

Premises and equipment

 

96,087

 

95,952

 

95,801

 

94,519

 

94,717

Other assets

 

56,709

 

53,144

 

59,997

 

62,952

 

58,160

Total assets

$

4,729,200

$

4,604,316

$

4,646,992

$

4,643,502

$

4,470,033

Interest-bearing deposits

$

3,536,933

$

3,428,952

$

3,437,420

$

3,451,306

$

3,248,375

Noninterest-bearing deposits

 

503,209

 

514,107

 

548,692

 

534,194

 

583,353

Securities sold under agreements to repurchase

15,000

9,398

9,398

9,398

9,398

FHLB advances

 

107,069

 

102,050

 

102,043

 

113,036

 

114,026

Other liabilities

 

38,191

 

37,905

 

46,712

 

42,256

 

37,834

Subordinated debt

 

23,169

 

23,156

 

23,143

 

23,130

 

23,118

Total liabilities

 

4,223,571

 

4,115,568

 

4,167,408

 

4,173,320

 

4,016,104

Total stockholders’ equity

 

505,629

 

488,748

 

479,584

 

470,182

 

453,929

Total liabilities and stockholders’ equity

$

4,729,200

$

4,604,316

$

4,646,992

$

4,643,502

$

4,470,033

Equity to assets ratio

 

10.69

%  

 

10.61

%  

 

10.32

%  

 

10.13

%  

 

10.15

%

Common shares outstanding

 

11,277,167

 

11,277,737

 

11,366,094

 

11,336,462

 

11,336,462

Less: Restricted common shares not vested

 

56,553

 

57,956

 

57,956

 

49,676

 

50,510

Common shares for book value determination

 

11,220,614

 

11,219,781

 

11,308,138

 

11,286,786

 

11,285,952

Book value per common share

$

45.06

$

43.56

$

42.41

$

41.66

$

40.22

Less: Intangible assets per common share

6.80

6.88

6.90

7.01

7.10

Tangible book value per common share (1)

38.26

36.68

35.51

34.65

33.12

Closing market price

 

56.49

 

45.01

 

43.71

 

53.39

 

38.69

(1)   Non-GAAP financial measure.

Nonperforming asset data as of:

    

Sep. 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

 

(dollars in thousands)

2024

2024

2024

2023

2023

 

Nonaccrual loans

$

8,206

$

6,680

$

7,329

$

5,922

$

5,738

Accruing loans 90 days or more past due

 

 

 

81

 

 

Total nonperforming loans

 

8,206

 

6,680

 

7,410

 

5,922

 

5,738

Other real estate owned (OREO)

 

3,842

 

3,865

 

3,791

 

3,814

 

4,981

Personal property repossessed

 

21

 

23

 

60

 

40

 

83

Total nonperforming assets

$

12,069

$

10,568

$

11,261

$

9,776

$

10,802

Total nonperforming assets to total assets

 

0.26

%  

 

0.23

%  

 

0.24

%  

 

0.21

%  

 

0.24

%  

Total nonperforming loans to gross loans

 

0.21

%  

 

0.17

%  

 

0.20

%  

 

0.16

%  

 

0.16

%  

Allowance for credit losses to nonperforming loans

 

663.38

%  

 

786.17

%  

 

692.79

%  

 

845.73

%  

 

856.08

%  

Allowance for credit losses to gross loans

 

1.37

%  

 

1.36

%  

 

1.36

%  

 

1.34

%  

 

1.33

%  

Performing modifications to borrowers experiencing financial difficulty

$

24,340

$

24,602

$

24,848

$

24,237

$

29,300

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For the three-month period ended

Quarterly Summary Income Statement Data:

Sep. 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

(dollars in thousands, except per share data)

    

2024

2024

2024

2023

2023

Interest income:

 

  

 

  

 

  

 

  

 

  

Cash equivalents

$

78

$

541

$

2,587

$

1,178

$

49

AFS securities and membership stock

 

5,547

 

5,677

 

5,486

 

5,261

 

5,084

Loans receivable

 

61,753

 

58,449

 

55,952

 

55,137

 

52,974

Total interest income

 

67,378

 

64,667

 

64,025

 

61,576

 

58,107

Interest expense:

 

 

 

 

 

Deposits

 

28,796

 

27,999

 

27,893

 

25,445

 

20,368

Securities sold under agreements to repurchase

160

125

128

126

72

FHLB advances

 

1,326

 

1,015

 

1,060

 

1,079

 

1,838

Subordinated debt

 

435

 

433

 

435

 

440

 

435

Total interest expense

 

30,717

 

29,572

 

29,516

 

27,090

 

22,713

Net interest income

 

36,661

 

35,095

 

34,509

 

34,486

 

35,394

Provision for credit losses

 

2,159

 

900

 

900

 

900

 

900

Noninterest income:

 

 

 

 

 

Deposit account charges and related fees

 

2,184

 

1,978

 

1,847

 

1,784

 

1,791

Bank card interchange income

 

1,499

 

1,770

 

1,301

 

1,329

 

1,345

Loan late charges

 

 

170

 

150

 

146

 

113

Loan servicing fees

 

286

 

494

 

267

 

285

 

231

Other loan fees

 

1,063

 

617

 

757

 

644

 

357

Net realized gains on sale of loans

 

361

 

97

 

99

 

304

 

213

Net realized losses on sale of AFS securities

(807)

(682)

Earnings on bank owned life insurance

 

517

 

498

 

483

 

472

 

458

Insurance brokerage commissions

287

331

312

310

263

Wealth management fees

730

838

866

668

795

Other noninterest income

 

247

 

974

 

309

 

380

 

287

Total noninterest income

 

7,174

 

7,767

 

5,584

 

5,640

 

5,853

Noninterest expense:

 

 

 

 

 

Compensation and benefits

 

14,397

 

13,894

 

13,750

 

12,961

 

12,649

Occupancy and equipment, net

 

3,689

 

3,790

 

3,623

 

3,478

 

3,515

Data processing expense

 

2,171

 

1,929

 

2,349

 

2,382

 

2,308

Telecommunications expense

 

428

 

468

 

464

 

465

 

531

Deposit insurance premiums

 

472

 

638

 

677

 

598

 

550

Legal and professional fees

 

1,208

 

516

 

412

 

387

 

416

Advertising

 

546

 

640

 

622

 

392

 

465

Postage and office supplies

 

306

 

308

 

344

 

283

 

302

Intangible amortization

 

897

 

1,018

 

1,018

 

1,018

 

1,018

Foreclosed property expenses (gains)

 

12

 

52

 

60

 

44

 

(8)

Other noninterest expense

 

1,715

 

1,749

 

1,730

 

1,852

 

1,963

Total noninterest expense

 

25,841

 

25,002

 

25,049

 

23,860

 

23,709

Net income before income taxes

 

15,835

 

16,960

 

14,144

 

15,366

 

16,638

Income taxes

 

3,377

 

3,430

 

2,837

 

3,173

 

3,487

Net income

 

12,458

 

13,530

 

11,307

 

12,193

 

13,151

Less: Distributed and undistributed earnings allocated

 

 

 

 

 

to participating securities

 

62

 

69

 

58

 

53

 

57

Net income available to common shareholders

$

12,396

$

13,461

$

11,249

$

12,140

$

13,094

Basic earnings per common share

$

1.10

$

1.19

$

1.00

$

1.08

$

1.16

Diluted earnings per common share

 

1.10

 

1.19

 

0.99

 

1.07

 

1.16

Dividends per common share

 

0.23

 

0.21

 

0.21

 

0.21

 

0.21

Average common shares outstanding:

 

 

 

 

 

Basic

 

11,221,000

 

11,276,000

 

11,302,000

 

11,287,000

 

11,286,000

Diluted

 

11,240,000

 

11,283,000

 

11,313,000

 

11,301,000

 

11,298,000

8


For the three-month period ended

 

Quarterly Average Balance Sheet Data:

Sep. 30,

    

June 30,

    

Mar. 31,

    

Dec. 31,

    

Sep. 30,

 

(dollars in thousands)

    

2024

2024

2024

2023

2023

Interest-bearing cash equivalents

$

5,547

$

39,432

$

182,427

$

89,123

$

5,479

AFS securities and membership stock

 

460,187

 

476,198

 

472,904

 

468,498

 

462,744

Loans receivable, gross

 

3,889,740

 

3,809,209

 

3,726,631

 

3,691,586

 

3,645,148

Total interest-earning assets

 

4,355,474

 

4,324,839

 

4,381,962

 

4,249,207

 

4,113,371

Other assets

 

283,056

 

285,956

 

291,591

 

301,415

 

284,847

Total assets

$

4,638,530

$

4,610,795

$

4,673,553

$

4,550,622

$

4,398,218

Interest-bearing deposits

$

3,416,752

$

3,417,360

$

3,488,104

$

3,341,221

$

3,122,803

Securities sold under agreements to repurchase

12,321

9,398

9,398

9,398

9,398

FHLB advances

 

123,723

 

102,757

 

111,830

 

113,519

 

167,836

Subordinated debt

 

23,162

 

23,149

 

23,137

 

23,124

 

23,111

Total interest-bearing liabilities

 

3,575,958

 

3,552,664

 

3,632,469

 

3,487,262

 

3,323,148

Noninterest-bearing deposits

 

531,946

 

539,637

 

532,075

 

572,101

 

600,202

Other noninterest-bearing liabilities

 

33,737

 

35,198

 

33,902

 

31,807

 

24,555

Total liabilities

 

4,141,641

 

4,127,499

 

4,198,446

 

4,091,170

 

3,947,905

Total stockholders’ equity

 

496,889

 

483,296

 

475,107

 

459,452

 

450,313

Total liabilities and stockholders’ equity

$

4,638,530

$

4,610,795

$

4,673,553

$

4,550,622

$

4,398,218

Return on average assets

 

1.07

%  

 

1.17

%  

 

0.97

%  

 

1.07

%  

 

1.20

%

Return on average common stockholders’ equity

 

10.0

%  

 

11.2

%  

 

9.5

%  

 

10.6

%  

 

11.7

%

Net interest margin

 

3.37

%  

 

3.25

%  

 

3.15

%  

 

3.25

%  

 

3.44

%

Net interest spread

 

2.75

%  

 

2.65

%  

 

2.59

%  

 

2.69

%  

 

2.92

%

Efficiency ratio

 

59.0

%  

 

58.3

%  

 

61.2

%  

 

58.5

%  

 

57.5

%

9