-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HLU9+2kcGX5KjM/PqLJLwsTzSTKIWFxszFhasHsNvjfHNXX11z/w5KOWZSxea5bN xkUAN3NTV1BU4lFJOl4ZBw== 0000927089-06-000087.txt : 20060428 0000927089-06-000087.hdr.sgml : 20060428 20060428123425 ACCESSION NUMBER: 0000927089-06-000087 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060428 DATE AS OF CHANGE: 20060428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN MISSOURI BANCORP INC CENTRAL INDEX KEY: 0000916907 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 431665523 STATE OF INCORPORATION: MO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-23406 FILM NUMBER: 06788272 BUSINESS ADDRESS: STREET 1: 531 VINE ST CITY: POPLAR BLUFF STATE: MO ZIP: 63901 BUSINESS PHONE: 5737851421 MAIL ADDRESS: STREET 1: 531 VINE STREET CITY: POPLAR BLUFF STATE: MO ZIP: 63901 8-K 1 sm8k427.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

April 27, 2006

SOUTHERN MISSOURI BANCORP, INC. (Exact name of Registrant as specified in its Charter)
Missouri (State or other jurisdiction of incorporation)	000-23406 (Commission File No.)		43-1665523 (IRS Employer Identification Number)

531 Vine Street, Poplar Bluff, Missouri (Address of principal executive offices)			63901 (Zip Code)

Registrant's telephone number, including area code:		(573) 778-1800

N/A (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	Pre-commencement communications pursuant to Rule 1 4d-2(b) under the Exchange Act (17 CFR 240.1 4d-2(b))
	Pre-commencement communications pursuant to Rule 1 3e-4(c) under the Exchange Act (17 CFR 240.1 3e-4(c))

ITEM 2.02	Results of Operations and Financial Condition On April 27, 2006, the Southern Missouri Bancorp, Inc. (the "Company"), the parent corporation of Southern Missouri Bank and Trust Co., issued a press release announcing its results for the third quarter of fiscal year 2006. A copy of the press release, including unaudited condensed financial information released as a part thereof, is attached as Exhibit 99 to this Current Report on Form 8-K and incorporated by reference herein.

ITEM 9.01	Financial Statements and Exhibits

	(c)	Exhibits

		Exhibit 99 - Press Release, dated April 27, 2006

	Forward-Looking Statements When used in this Current Report on Form 8-K and in other reports of the Company filed with or furnished to the Securities and Exchange Commission, in press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "believe," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "plans," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements are based on beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions of management and are not guarantees of future performance. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements. 2 Next Page Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (i) further developments in the Company's ongoing review of and efforts to resolve the problem credit relationship described in this report, which could result in, among other things, further downgrades of the aforementioned loans, additional provisions to the loan loss reserve and the incurrence of other material non-cash and cash charges; (ii) the strength of the United States economy in general and the strength of the local economies in which the Company conducts operations; (iii) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; (iv) inflation, interest rate, market and monetary fluctuations; (v) the timely development of and acceptance of the Company's 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; (vi) the willingness of users to substitute the Company's products and services for products and services of the Company's competitors; (vii) the impact of changes in financial services laws and regulations (including laws concerning taxes, banking, securities and insurance); (viii) the impact of technological changes; (ix) acquisitions; (x) changes in consumer spending and saving habits; and (xi) the Company's success at managing the risks involved in the foregoing. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

3 Next Page

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

SOUTHERN MISSOURI BANCORP, INC.

Date: April 28, 2006 By: /s/ Greg A. Steffens
Greg A. Steffens
President

4 Next Page

EXHIBIT INDEX

Exhibit No.	Description
99	Press Release dated April 27, 2006

5 End

EX-99 2 ex99.htm

FOR IMMEDIATE RELEASE	Contact: Greg Steffens, President
April 27, 2006	(573) 778-1800

SOUTHERN MISSOURI BANCORP (SMBC) REPORTS ON
Third Quarter Net Income

Declaration of Quarterly Dividend

Poplar Bluff, Missouri - Southern Missouri Bancorp, Inc., ("Company") (NASDAQ: SMBC), the parent corporation of Southern Missouri Bank and Trust Co. ("Bank"), today announced net income for the third quarter of fiscal 2006 of $645,000, or $.28 per diluted share, as compared to a loss of $975,000, or $(.43) per diluted share, during the same period of the prior year. The increase in diluted earnings per share was primarily due to the inclusion of a $2.6 million provision for loan losses in the prior period's results, compared to an $80,000 provision in the current period, and was partially offset by the difference between an income tax benefit of $701,000 during the prior period and a $352,000 provision for income taxes in the current period. Net income for the first nine months of fiscal 2006 was $2.0 million, or $.88 per diluted share, as compared to $691,000, or $.30 per diluted share, earned during the same period of the prior year. The increase in diluted earnings per share for the nine-month period was also primarily due to loan loss provisions of $2.9 million during the same period of the prior year, compared to $285,000 in the current period, offset again by an increase from a $301,000 provision for income taxes in the same period of the prior year, to a $1.1 million provision in the current period.

The third quarter's results were negatively impacted by the Company's opening of a branch in Sikeston, Missouri, in January of 2006. Start up costs and operating expenses incurred during the quarter were $133,000. We estimate that the after-tax impact of opening and operating the branch decreased diluted earnings per share by $.03. At March 31, 2006, the location had grown to $4.6 million in interest-earning assets.

Dividend Declared:

The Board of Directors and management believe the continuation of a quarterly dividend enhances shareholder value and demonstrates our commitment to and confidence in our future prospects. Therefore, they are pleased to announce the 48th consecutive quarterly dividend since the inception of the Company. The $.09 cash dividend will be paid on May 31, 2006, to shareholders of record at the close of business on May 15, 2006.

Balance Sheet Summary:

The Company experienced balance sheet growth with total assets increasing $28.1 million, or 8.5%, to $358.5 million at March 31, 2006, as compared to $330.4 million at June 30, 2005. Growth in assets was primarily reflected in increases in cash balances and the loan portfolio. Asset growth has been funded primarily with deposits.

Loans, net of allowance for loan losses, increased $9.7 million, or 3.6%, to $277.3 million at March 31, 2006, as compared to $267.6 million at June 30, 2005. The increase in the loan portfolio primarily reflects growth in the balances of commercial real estate and one-to-four family residential loans of $6.8 million and $3.5 million, respectively. Asset quality remains relatively strong with annualized net loan charge-offs for the first nine months of fiscal year 2006 totaling .12% of average net loans, compared to 1.85% for fiscal year 2005. Non-performing loans totaled $64,000 at March 31, 2006. Our allowance for loan loss at March 31, 2006 totaled $2.1 million, representing .74% of net loans and 3,212% of non-performing loans.

Cash balances increased $13.5 million, or 348%, to $17.4 million at March 31, 2006, as compared to $3.9 million at June 30, 2005. Cash growth is attributed to increased deposit balances, partially offset by loan growth and reductions in Federal Home Loan Bank (FHLB) overnight borrowings. The Company anticipates lower cash balances in the next quarter.

Total liabilities increased $27.0 million, or 8.8% to $332.3 million at March 31, 2006, as compared to $305.4 million at June 30, 2005. Deposits increased $35.3 million, or 15.7%, to $260.0 million at March 31, 2006, as compared to $224.7 million at June 30, 2005. The increase in deposits was primarily due to a $17.3 million increase in certificates of deposit (which resulted from promotional term/ rate certificates, including the net purchase of $7.8 million in brokered deposits), a $13.9 million increase in money market passbook accounts, and a $7.4 million increase in checking accounts, partially offset by decreases in money market deposit accounts of $4.0 million. FHLB advances decreased $9.5 million, or 15.4%, to $52.0 million at March 31, 2006, as compared to $61.5 million at June 30, 2005. Securities sold under agreements to repurchase increased $763,000 to $11.5 million at March 31, 2006, from $10.8 million at June 30, 2005. The average loan to deposit ratio for the current quarter was 110%, as compared to 116% for the quarter ended March 31, 2005.

The Company's stockholders' equity increased $1.2 million, to $26.2 million at March 31, 2006, from $25.0 million at June 30, 2005. The increase was primarily due to net income, partially offset by cash dividends and a decrease in market value of the investment portfolio.

Income Statement Summary:

The Company's net interest income increased for the three and nine month periods ended March 31, 2006, by $130,000 and $98,000 respectively, as compared to the same periods of the prior year. The increase was primarily due to an increase in the amount of interest-earning assets, partially offset by decreases in net interest rate spread. The net interest rate spread for the three and nine month periods ended March 31, 2006, was 2.65% and 2.66%, respectively, as compared to 2.82% and 2.88% for the same periods of the prior year. The decrease in net interest rate spread for the three month period ended March 31, 2006, resulted from a 75 basis point increase in the weighted-average cost of funds, partially offset by a 58 basis point increase in the yield on interest-earning assets. The decrease in net interest rate spread for the nine month period ended March 31, 2006, resulted from a 72 basis point increase in the weighted-average cost of funds, partially offset by a 49 basis point increase in the yield on interest-earning assets. Net interest rate spread compression during the fiscal year has been due primarily to the short-term interest rates increases by the Federal Reserve, without accompanying long-term interest rate increases, increased competition within our market area for both loans and deposits, and increases in cash balances, which lower our average yield on interest-earning assets.

The Company's non-interest income for the three month period ended March 31, 2006, increased $183,000, or 56.8%, to $505,000, compared to $322,000 for the same period of the prior year. The increase was primarily due to the inclusion during the same period of the prior year of a $210,000 loss on one deposit relationship. For the nine month period ended March 31, 2006, non-interest income decreased $199,000, or 11.2%, to $1.6 million, from $1.8 million in the same period of the prior year. The decrease was primarily due to inclusion in the results of the same period of the prior year of $352,000 in gains realized on the sale of equity investments and $41,000 in dividend income received on those equities, partially offset by the prior year's $210,000 loss noted above.

Non-interest expense for the three and nine month periods ended March 31, 2006, increased $169,000 and $382,000, respectively, to $1.8 million and $5.3 million. This represents increases of 10.1% and 7.8%, as compared to the same periods of the prior year. Non-interest expense increased due to higher expenses for compensation, occupancy, and other operating expenses. Total non-interest expenses attributable to operations of the Sikeston branch are estimated at $133,000 during the three month period ended March 31, 2006. Absent those expenses, non-interest expense would have increased $36,000, or 2.1%, compared to the same period of the prior year.

Despite higher non-interest expense, the efficiency ratio for the three month period ended March 31, 2006, improved to 63.0%, compared to 64.1% for the same period of the prior year. The improvement was due to the inclusion of the $210,000 loss on deposits noted above in results for the same period of the prior year, which was charged against non-interest income. Without the $133,000 in non-interest expense attributed to the Sikeston branch, we estimate that the Bank's efficiency ratio would be 58.4% for the third quarter. For the nine month period ended March 31, 2006, the efficiency ratio deteriorated to 61.1%, as compared to 56.1% for the same period of the prior year. The deterioration was a result of the aforementioned higher non-interest expense and lower non-interest income for the current nine month period. The efficiency ratio measures non-interest expenses as a percentage of revenues. The Company continues to evaluate opportunities to become more efficient.

The Company has previously announced its intention to repurchase up to 115,000 shares of its common stock, or approximately 5% of its outstanding common shares. To date, the Company has repurchased 89,000 shares at an average cost of $15.17 per share. The Company is not actively purchasing shares of its common stock at this time, but market conditions, business opportunities, and other economic conditions may alter our outlook on repurchasing common stock.

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that involve risks and uncertainties, including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area and competition. Actual strategies and results in future periods may differ materially from those currently expected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

SOUTHERN MISSOURI BANCORP, INC.
Unaudited Condensed Consolidated Financial Information

Selected Financial Data at:	March 31, 2006	June 30, 2005

Total assets	358,488,000	$330,360,000
Available-for-sale securities	38,714,000	34,700,000
Loans, net	277,273,000	267,568,000
Allowance for losses on loans	2,062,000	2,017,000
Non-performing assets	586,000	658,000
Deposits	259,992,000	224,666,000
FHLB advances	52,000,000	61,500,000
Securities sold under repurchase agreements	11,521,000	10,757,000
Subordinated Debt	7,217,000	7,217,000
Stockholders' equity	26,174,000	25,003,000

Equity to assets ratio	7.30%	7.57%
Allowance as a percentage of loans	0.74%	0.75%
Non-performing loans as a percentage of loans	0.02%	0.21%

Per common share:

Closing Market Price	14.77	14.50
Tangible book value	10.67	10.07

	Three Months Ended March 31		Nine Months Ended March 31
Selected Operating Data:	2006	2005	2006	2005

Net interest income	$2,405,000	$2,276,000	$7,080,000	$6,982,000
Provision for loan losses	80,000	2,610,000	285,000	2,855,000
Noninterest income	505,000	322,000	1,578,000	1,777,000
Noninterest expense	1,833,000	1,664,000	5,294,000	4,912,000
Income taxes	352,000	(701,000)	1,074,000	301,000
Net income	$645,000	$(975,000)	2,005,000	$691,000
Per common share:
Net earnings:
Basic	$.29	$(.44)	$.90	$.31
Diluted	$.28	$(.43)	$.88	$.30

Cash dividends	$.09	$.09	$.27	$.27

Average basic shares outstanding	2,224,174	2,221,152	2,223,957	2,224,623
Average diluted shares outstanding	2,275,897	2,281,332	2,276,255	2,286,009

Profitability Ratios:

Return on average assets	0.73%	(1.18%)	0.78%	.29%

Return on average common equity	9.94%	(14.38%)	10.46%	3.43%

Net interest margin	2.92%	3.03%	2.92%	3.10%
Net interest spread	2.65%	2.82%	2.66%	2.88%

Efficiency Ratio	62.98%	64.07%	61.14%	56.08%

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	SOUTHERN MISSOURI BANCORP, INC.

Date: April 28, 2006	By: /s/ Greg A. Steffens Greg A. Steffens President