Southern Missouri Bancorp Inc (SMBC) Reports Preliminary Q1 2024 Results: Net Income Rises by 36.9%
SMBC's preliminary net income for Q1 2024 is $13.2 million, a 36.9% increase compared to the same period in the previous fiscal year.
The company declares a quarterly dividend of $0.21 per common share.
SMBC's total assets grew by 2.5% to $4.5 billion at the end of Q1 2024.
Nonperforming loans decreased to $5.7 million, or 0.16% of gross loans, at the end of Q1 2024.
On October 23, 2023, Southern Missouri Bancorp Inc (NASDAQ:SMBC) released its preliminary results for the first quarter of fiscal 2024. The company reported a net income of $13.2 million, marking a significant increase of $3.5 million or 36.9% compared to the same period of the prior fiscal year. This increase was primarily due to rises in net interest income and noninterest income, coupled with a lower provision for credit loss (PCL) expense. However, it was partially offset by an increase in noninterest expense.
Financial Highlights
SMBC's Board of Directors declared a quarterly cash dividend on common stock of $0.21, payable on November 30, 2023, to stockholders of record at the close of business on November 15, 2023. This marks the 118th consecutive quarterly dividend since the inception of the company.
The company's balance sheet showed growth in the first three months of fiscal 2024, with total assets of $4.5 billion at the end of September 2023. This reflects an increase of $109.8 million, or 2.5%, compared to June 30, 2023. The growth was primarily due to an increase in net loans receivable and cash and cash equivalents.
Loan and Asset Performance
Loans, net of the allowance for credit losses (ACL), were $3.7 billion at the end of September 2023, increasing by $79.5 million, or 2.2%, compared to June 30, 2023. The company noted growth in drawn construction loan balances and commercial loans. Nonperforming loans were $5.7 million, or 0.16% of gross loans, at the end of September 2023, compared to $7.7 million, or 0.21% of gross loans at the end of June 2023.
Income Statement Summary
The company's net interest income for the three-month period ended September 30, 2023, was $35.4 million, an increase of $6.9 million, or 24.2%, compared to the same period of the prior fiscal year. The increase was attributable to a 31.6% increase in the average balance of interest-earning assets in the current three-month period, compared to the same period a year ago, partially offset by a 21 basis point decrease in net interest margin from 3.65% to 3.44%.
Noninterest income for the three-month period ended September 30, 2023, was $5.9 million, an increase of $339,000, or 6.1%, compared to the same period of the prior fiscal year. Noninterest expense for the same period was $23.7 million, an increase of $6.8 million, or 40.1%, compared to the same period of the prior fiscal year.
The company's stockholders' equity was $453.9 million at the end of September 2023, an increase of $7.9 million, or 1.8%, compared to June 30, 2023. The increase was primarily due to earnings retained after cash dividends paid, partially offset by a modest increase in accumulated other comprehensive losses (AOCL) as the market value of the company's investments declined due to increases in market interest rates.
This article first appeared on GuruFocus.
