Poplar Bluff, Missouri, Jan. 25, 2021 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the second quarter of fiscal 2021 of $12.0 million, an increase of $4.3 million, or 56.1%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in provision for income taxes, noninterest expense, and provision for credit losses. Preliminary net income was $1.32 per fully diluted common share for the second quarter of fiscal 2021, an increase of $.48 as compared to the $.84 per fully diluted common share reported for the same period of the prior fiscal year.

Highlights for the second quarter of fiscal 2021:

  • Annualized return on average assets was 1.87%, while annualized return on average common equity was 18.3%, as compared to 1.36% and 12.6%, respectively, in the same quarter a year ago, and 1.57% and 15.6%, respectively, in the first quarter of fiscal 2021, the linked quarter.
     
  • Earnings per common share (diluted) were $1.32, up $.48, or 57.1%, as compared to the same quarter a year ago, and up $.23, or 21.1%, from the first quarter of fiscal 2021, the linked quarter.
     
  • Provision for credit losses was $612,000, an increase of $224,000, or 57.7%, as compared to the same period of the prior year, and down $162,000, or 20.9%, as compared to the first quarter of fiscal 2021, the linked quarter. Nonperforming assets were $11.1 million, or 0.42% of total assets, at December 31, 2020, as compared to $11.3 million, or 0.44% of total assets, at September 30, 2020, and $14.1 million, or 0.61% of total assets, at December 31, 2019, one year prior.
     
  • Net loans decreased $29.1 million during the second quarter, as balances of SBA Paycheck Protection Program (PPP) loans declined by $38.2 million, as forgiveness processing began in earnest.
     
  • Deposit balances increased $97.0 million in the second quarter of fiscal 2021. Typically, the second quarter of the fiscal year is the strongest for the Company’s deposit growth, most notably in nonmaturity accounts. Deposits continued to migrate away from certificates of deposit and to nonmaturity accounts.
     
  • Net interest margin for the second quarter of fiscal 2021 was 3.92%, up from the 3.70% reported for the year ago period, and up from the 3.73% figure reported for the first quarter of fiscal 2021, the linked quarter. Net interest income was increased significantly by accelerated accretion of deferred origination fees on PPP loans as those loans were repaid through SBA forgiveness. Discount accretion on acquired loan portfolios was modestly higher in the current quarter as compared to the linked quarter, and modestly lower as compared to the year ago period.
     
  • Noninterest income was up 55.7% for the second quarter of fiscal 2021, as compared to the year ago period, and was up 15.8% as compared to the first quarter of fiscal 2021, the linked quarter. Nonrecurring benefits realized on bank-owned life insurance during the quarter contributed significantly to the increase, and the Company continued to originate a substantial volume of mortgage loans for sale into the secondary market.
     
  • Noninterest expense was up 3.1% for the second quarter of fiscal 2021, as compared to the year ago period, and was down 0.5% from the first quarter of fiscal 2021, the linked quarter.  

Dividend Declared:

The Board of Directors, on January 19, 2021, declared a quarterly cash dividend on common stock of $0.16, payable February 26, 2021, to stockholders of record at the close of business on February 12, 2021, marking the 107th consecutive quarterly dividend since the inception of the Company, and representing an increase of 6.7% over the quarterly dividend paid previously. 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, January 26, 2021, at 3:30 p.m., central time. The call will be available live to interested parties by calling 1-888-339-0709 in the United States (Canada: 1-855-669-9657, international: 1-412-902-4189). Participants should ask to be joined into the Southern Missouri Bancorp (SMBC) call. Telephone playback will be available beginning one hour following the conclusion of the call through February 8, 2021. The playback may be accessed by dialing 1-877-344-7529 (Canada: 1-855-669-9658, international: 1-412-317-0088), and using the conference passcode 10151898.

Balance Sheet Summary:

The Company’s balance sheet grew modestly from June 30, 2020, with total assets of $2.6 billion at December 31, 2020, reflecting an increase of $80.8 million, or 3.2%. Growth primarily reflected increases in cash and cash equivalents and available-for-sale (“AFS”) securities, partially offset by a decrease in loans receivable.

Cash equivalents and time deposits were a combined $150.5 million at December 31, 2020, an increase of $95.3 million, or 175.5%, as compared to June 30, 2020, increasing primarily as a result of rapid deposit growth and loan repayments. AFS securities were $181.1 million at December 31, 2020, an increase of $4.6 million, or 2.6%, as compared to June 30, 2020.

Loans, net of the allowance for credit losses (ACL), were $2.1 billion at December 31, 2020, a decrease of $20.5 million, or 1.0%, as compared to June 30, 2020. Gross loans decreased by $10.2 million, or 0.5%, during the first six months of the fiscal year, while the ACL at December 31, 2020, reflected an increase of $10.3 million, as compared to the balance of our allowance for loan and lease losses (ALLL) at June 30, 2020. The Company adopted ASU 2016-13, Financial Instruments – Credit Losses, also known as the current expected credit loss (“CECL”) standard, effective as of July 1, 2020, the beginning of our 2021 fiscal year. Adoption resulted in a $9.3 million increase in the ACL, relative to the ALLL as of June 30, 2020, while provisioning in excess of net charge offs during the first six months of fiscal 2021 increased the ACL by an additional $1.0 million, as compared to July 1, 2020. The decrease in loan balances in the portfolio was primarily attributable to commercial loans, partially offset by increases in commercial real estate loans, residential real estate loans, and drawn construction loan balances. Commercial loan balances decreased primarily as a result of forgiveness of PPP loans, which declined by $36.8 million in the fiscal year to date, and by $38.2 million in the quarter ended December 31, 2020, to stand at $95.5 million. Residential real estate loans increased primarily due to growth in 1- to 4-family residential lending, and commercial real estate loans increased primarily due to loans secured by nonresidential owner-occupied property. Management expects to continue to receive significant PPP forgiveness payments in the quarter ended March 31, 2021, although these will be somewhat offset by anticipated funding of “second draw” PPP loans under the program re-opened by the SBA in January 2021. Loans anticipated to fund in the next 90 days stood at $85.1 million at December 31, 2020, as compared to $122.7 million at September 30, 2020, and $72.7 million at December 31, 2019. The pipeline figure at December 31, 2020, did not include second draw PPP loans.

Nonperforming loans were $8.3 million, or 0.39% of gross loans, at December 31, 2020, as compared to $8.7 million, or 0.40% of gross loans at June 30, 2020, and $10.4 million, or 0.54% of gross loans at December 31, 2019. Nonperforming assets were $11.1 million, or 0.42% of total assets, at December 31, 2020, as compared to $11.2 million, or 0.44% of total assets, at June 30, 2020, and $14.1 million, or 0.61% of total assets, at December 31, 2019. The decrease in nonperforming loans over the previous twelve months was attributed primarily to the resolution of certain nonperforming loans acquired in the November 2018 acquisition of Gideon Bancshares and its subsidiary, First Commercial Bank (the “Gideon Acquisition”).

Our ACL at December 31, 2020, totaled $35.5 million, representing 1.64% of gross loans and 425.8% of nonperforming loans, as compared to an ALLL of $25.1 million, representing 1.16% of gross loans and 290.4% of nonperforming loans at June 30, 2020, and an ALLL of $20.8 million, or 1.07% of gross loans and 200.0% of nonperforming loans, at December 31, 2019. The ACL at December 31, 2020, also represented 1.72% of gross loans excluding PPP loans. The Company has estimated its credit losses as of December 31, 2020, under ASC 320-20, and management believes the allowance for credit losses as of that date is adequate based on that estimate; however, there remains significant uncertainty regarding the possible length of the COVID-19 pandemic and the aggregate impact that it will have on global and regional economies, including uncertainty regarding the effectiveness of recent efforts by the U.S. government and Federal Reserve to respond to the pandemic and its economic impact. Management considered the impact of the pandemic on its consumer and business borrowers, particularly those business borrowers most affected by efforts to contain the pandemic, including our borrowers in the retail and multi-tenant retail industry, restaurants, and hotels.

Provisions of the CARES Act and subsequent legislation allow financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDRs) for certain loans that were otherwise current and performing prior to the COVID-19 pandemic, but for which borrowers experienced or expected difficulties due to the impact of the pandemic. Initially, deferrals under this program were generally granted for three-month periods, while interest-only modifications were generally for six-month periods. Some borrowers were granted additional periods of deferral or interest-only modifications. The Company did not account for these loans as TDRs. As of December 31, 2020, loans for which COVID-related payment deferrals and interest-only payment modifications remained in place included approximately 17 loans with balances totaling $40.3 million, as compared to approximately 900 loans with balances totaling $380.2 million with such deferrals or modifications in place at June 30, 2020. Details by loan type are included in the table at the conclusion of this document. For borrowers whose payment term have not returned to the original terms under their loan agreement as of December 31, 2020, the Company has generally classified the credit as a “watch” status credit. Loans remaining under a COVID-related payment deferral or interest-only modification which have been placed on watch status total $38.7 million. While management considers progress made by our borrowers in responding to the pandemic to be relatively strong, and the performance of our loan portfolio to be encouraging to date, we cannot predict with certainty the difficulties to be faced in coming months. Communities where our borrowers operate may experience increases in COVID-19 cases and reductions in business activity or employee attendance, and borrowers could be required by local authorities to restrict activity.

Total liabilities were $2.4 billion at December 31, 2020, an increase of $71.5 million, or 3.1%, as compared to June 30, 2020.

Deposits were $2.3 billion at December 31, 2020, an increase of $80.2 million, or 3.7%, as compared to June 30, 2020. This increase primarily reflected an increase in interest-bearing transaction accounts, noninterest-bearing transaction accounts, savings accounts, and money market deposits accounts, partially offset by a decrease in time deposits. The increase included a $14.8 million increase in public unit funds, and was net of a $7.3 million decrease in brokered deposits. Public unit balances were $320.0 million at December 31, 2020, while brokered time deposits totaled $16.0 million, and brokered money market deposits were $20.0 million. Depositors continue to hold unusually high balances in the uncertain environment. The average loan-to-deposit ratio for the second quarter of fiscal 2021 was 98.5%, as compared to 100.4% for the same period of the prior fiscal year.

FHLB advances were $63.3 million at December 31, 2020, a decrease of $6.7 million, or 9.6%, as compared to June 30, 2020, as the Company’s deposit inflows outpaced loan demand or desired investment portfolio growth. The Company has continued to monitor the availability of the Federal Reserve’s PPP Lending Facility (PPPLF), but has not utilized it to date, given our improved liquidity position and the lack of attractive alternative investment options.

The Company’s stockholders’ equity was $267.7 million at December 31, 2020, an increase of $9.3 million, or 3.2%, as compared to June 30, 2020. The increase was attributable primarily to earnings retained after cash dividends paid, partially offset by the one-time negative adjustment to retained earnings resulting from the adoption of the CECL standard and repurchases of the Company’s common stock. Since re-starting the repurchase program in October 2020, the Company repurchased 90,793 common shares for $2.6 million through December 31, 2020, at an average price of $29.06.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended December 31, 2020, was $23.5 million, an increase of $4.1 million, or 21.4%, as compared to the same period of the prior fiscal year. The increase was attributable to a 14.8% increase in the average balance of interest-earning assets, combined with an increase in net interest margin to 3.92% in the current three-month period, from 3.70% in the same period a year ago. As a material amount of PPP loans were forgiven and therefore repaid ahead of their scheduled maturity, the Company recognized accelerated accretion of interest income from deferred origination fees on these loans. In the current quarter, this component of interest income totaled $968,000, adding 16 basis points to the net interest margin, with no comparable item in the year ago period.

Loan discount accretion and deposit premium amortization related to the Company’s August 2014 acquisition of Peoples Bank of the Ozarks, the June 2017 acquisition of Capaha Bank, the February 2018 acquisition of Southern Missouri Bank of Marshfield, the Gideon Acquisition, and the May 2020 acquisition of Central Federal Savings & Loan Association of Rolla (the Central Federal Acquisition), resulted in $478,000 in net interest income for the three-month period ended December 31, 2020, as compared to $525,000 in net interest income for the same period a year ago. The Company generally expects this component of net interest income will continue to decline over time, although volatility may occur to the extent we have periodic resolutions of specific loans. Combined, these components of net interest income contributed eight basis points to net interest margin in the three-month period ended December 31, 2020, as compared to a contribution of 10 basis points in the same period of the prior fiscal year, and as compared to the six basis point contribution in the linked quarter, ended September 30, 2020, when net interest margin was 3.73%. Additionally, in the year-ago period, the Company recognized an additional $194,000 in interest income as a result of the resolution of a limited number of nonperforming loans, with no material contribution from similar resolutions in the current or linked period. This recognition of interest income in the year-ago period contributed four basis points to net interest margin.

The provision for credit losses for the three-month period ended December 31, 2020, was $612,000, as compared to $388,000 in the same period of the prior fiscal year. The limited increase as compared to the same quarter a year ago was attributable primarily to continued uncertainty regarding the economic environment resulting from the COVID-19 pandemic and the potential impact on the Company’s borrowers, partially offset by relatively consistent levels of net charge offs, adversely classified credits, and nonperforming loans. The Company assesses that the outlook is little changed as compared to the quarter ended June 30, 2020. As a percentage of average loans outstanding, the provision for credit losses in the current three-month period represented a charge of 0.11% (annualized), while the Company recorded net charge offs during the period of 0.04% (annualized). During the same period of the prior fiscal year, the provision represented a charge of 0.08% (annualized), while the Company recorded net charge offs of 0.06% (annualized).

The Company’s noninterest income for the three-month period ended December 31, 2020, was $5.7 million, an increase of $2.0 million, or 55.7%, as compared to the same period of the prior fiscal year. In the current period, increases in gains realized on the sale of residential real estate loans originated for that purpose, earnings on bank-owned life insurance, loan servicing income, and bank card interchange income were partially offset by decreases in deposit account service charges. Earnings on bank-owned life insurance were increased by a non-recurring benefit of $696,000. Gains realized on the sale of residential real estate loans originated for that purpose increased as origination of these loans more than quadrupled as compared to the year ago period, and also increased from the linked quarter, while pricing modestly improved. Our portfolio of serviced loans has increased notably in recent quarters, up 16.2% during the quarter ended December 31, 2020, as servicing income increases through fees received and the recognition of mortgage servicing rights at origination. Bank card interchange income increased as a result of a 10% increase in the number of bank card transactions and a 17% increase in bank card dollar volume, as compared to the same quarter a year ago.

Noninterest expense for the three-month period ended December 31, 2020, was $13.4 million, an increase of $410,000, or 3.1%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, deposit insurance premiums, data processing expenses, and occupancy expenses, partially offset by reductions in amortization of core deposit intangibles and other expenses. Other expenses declined primarily due to inclusion in the year ago period of a $327,000 loss on the disposal of two bank facilities that had been acquired in the Gideon Acquisition, as well as due to reduced employee travel expenses and customer entertainment. The increase in compensation and benefits as compared to the prior year primarily reflected standard increases in compensation and an increase in employee headcount over the prior year, due in part to the Central Federal Acquisition, as well as a de novo branch opened in July 2020. Deposit insurance premiums reflected a return to a normalized level of premiums after the Company benefited from one-time assessment credits for much of the prior fiscal year. Data processing expenses increased primarily due to licensing of updated productivity, mobility, and security software. Occupancy expenses increased in part due to additional locations, as well as replacement of some ATMs with ITMs with video teller capability. The efficiency ratio for the three-month period ended December 31, 2020, was 45.9%, as compared to 56.5% in the same period of the prior fiscal year, with the improvement attributable primarily to the current period’s increases in net interest income and noninterest income, while expense growth was contained.

The income tax provision for the three-month period ended December 31, 2020, was $3.2 million, an increase of 64.1% as compared to the same period of the prior fiscal year, as higher pre-tax income combined with an increase in the effective tax rate, to 20.7%, as compared to 19.9% in the same period a year ago. The higher effective tax rate was attributable primarily to the significant increase in pre-tax income, without corresponding increases in tax-advantaged investments.

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, generally, resulting from the ongoing COVID-19 pandemic and any governmental or societal responses thereto; expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent anticipated, 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, might be greater than expected; the strength of the United States economy in general and the strength of the local economies in which we conduct operations; fluctuations in interest rates and in real estate values; 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 and 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.


Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
            
Summary Balance Sheet Data as of:  Dec. 31   Sep. 30,   June 30,   Mar. 31,   Dec. 31,  
      (dollars in thousands, except per share data)    2020     2020     2020     2020     2019   
            
Cash equivalents and time deposits $      150,496  $         42,850  $         55,219  $         57,078  $         42,015  
Available for sale (AFS) securities           181,146            175,528            176,524            180,592            175,843  
FHLB/FRB membership stock             11,004              11,956              10,753              13,054              12,522  
Loans receivable, gross       2,156,870        2,185,547        2,167,068        1,991,328        1,943,599  
   Allowance for loan losses             35,471              35,084              25,139              23,508              20,814  
Loans receivable, net       2,121,399        2,150,463        2,141,929        1,967,820        1,922,785  
Bank-owned life insurance             43,268              43,644              43,363              39,095              38,847  
Intangible assets             21,453              21,582              21,789              21,573              22,423  
Premises and equipment             63,970              64,430              65,106              64,705              65,006  
Other assets             30,262              30,281              27,474              30,531              32,408  
   Total assets $   2,622,998  $   2,540,734  $   2,542,157  $   2,374,448  $   2,311,849  
            
Interest-bearing deposits $   1,927,351  $   1,861,051  $   1,868,799  $   1,738,379  $   1,691,010  
Noninterest-bearing deposits           337,736            307,023            316,048            233,268            223,604  
FHLB advances             63,286              85,637              70,024            123,361            114,646  
Note payable                      -                         -                         -                  3,000                3,000  
Other liabilities             11,743              11,880              13,797              11,469              15,627  
Subordinated debt             15,193              15,168              15,142              15,118              15,093  
   Total liabilities       2,355,309        2,280,759        2,283,810        2,124,595        2,062,980  
            
   Total stockholders' equity           267,689            259,975            258,347            249,853            248,869  
            
   Total liabilities and stockholders' equity $   2,622,998  $   2,540,734  $   2,542,157  $   2,374,448  $   2,311,849  
            
Equity to assets ratio  10.21%  10.23%  10.16%  10.52%  10.76% 
            
Common shares outstanding       9,035,232        9,126,625        9,127,390        9,128,290        9,206,783  
   Less: Restricted common shares not vested             25,410              27,260              28,025              28,925              24,900  
Common shares for book value determination       9,009,822        9,099,365        9,099,365        9,099,365        9,181,883  
            
Book value per common share $           29.71  $           28.57  $           28.39  $           27.46  $           27.10  
Closing market price               30.44                23.58                24.30                24.27                38.36  
            
Nonperforming asset data as of:  Dec. 31   Sep. 30,   June 30,   Mar. 31,   Dec. 31,  
      (dollars in thousands)    2020     2020     2020     2020     2019   
            
Nonaccrual loans $           8,330  $           8,775  $           8,657  $         11,428  $         10,419  
Accruing loans 90 days or more past due                      -                         -                         -                         -                           1  
   Total nonperforming loans               8,330                8,775                8,657              11,428              10,420  
Other real estate owned (OREO)               2,707                2,466                2,561                3,401                3,668  
Personal property repossessed                     44                         9                         9                      38                      26  
   Total nonperforming assets $         11,081  $         11,250  $         11,227  $         14,867  $         14,114  
            
Total nonperforming assets to total assets  0.42%  0.44%  0.44%  0.63%  0.61% 
Total nonperforming loans to gross loans  0.39%  0.40%  0.40%  0.57%  0.54% 
Allowance for loan losses to nonperforming loans  425.82%  399.82%  290.39%  205.71%  199.75% 
Allowance for loan losses to gross loans  1.64%  1.61%  1.16%  1.18%  1.07% 
            
Performing troubled debt restructurings (1) $           7,897  $           7,923  $           8,580  $         14,196  $         14,814  
            
      (1) Nonperforming troubled debt restructurings are included with nonaccrual loans or accruing loans 90 days or more past due.
            



  For the three-month period ended
Quarterly Summary Income Statement Data:  Dec. 31   Sep. 30,   June 30,   Mar. 31,   Dec. 31,  
      (dollars in thousands, except per share data)    2020    2020    2020    2020     2019  
            
Interest income:           
   Cash equivalents $                 48 $                 41 $                 18 $                 33  $                 31 
   AFS securities and membership stock                   997               1,024               1,146               1,218                1,194 
   Loans receivable             26,826             25,907             26,099             24,969              25,421 
      Total interest income             27,871             26,972             27,263             26,220              26,646 
Interest expense:           
   Deposits               3,863               4,390               4,923               6,135                6,448 
   FHLB advances                   347                   380                   398                   439                    573 
   Note payable                      -                        -                       11                     31                      34 
   Subordinated debt                   134                   138                   151                   197                    214 
      Total interest expense               4,344               4,908               5,483               6,802                7,269 
Net interest income             23,527             22,064             21,780             19,418              19,377 
Provision for credit losses                   612                   774               1,868               2,850                    388 
Noninterest income:           
   Deposit account charges and related fees               1,360               1,339               1,087               1,538                1,632 
   Bank card interchange income                   836                   830                   954                   719                    651 
   Loan late charges                   138                   141                   157                   149                    121 
   Loan servicing fees                   368                   310                   248                 (285)                   103 
   Other loan fees                   305                   327                   290                   370                    354 
   Net realized gains on sale of loans               1,390               1,206                   977                   178                    203 
   Earnings on bank owned life insurance                   974                   280                   266                   247                    253 
   Other noninterest income                   349                   508                   380                   313                    357 
      Total noninterest income               5,720               4,941               4,359               3,229                3,674 
Noninterest expense:           
   Compensation and benefits               7,545               7,720               7,698               7,521                6,993 
   Occupancy and equipment, net               1,866               1,970               1,887               1,780                1,769 
   Data processing expense               1,175               1,062               2,084                   974                    878 
   Telecommunications expense                   308                   315                   314                   309                    320 
   Deposit insurance premiums                   218                   201                   155                      -                         -   
   Legal and professional fees                   236                   198                   318                   229                    239 
   Advertising                   219                   230                   391                   244                    283 
   Postage and office supplies                   195                   193                   219                   224                    178 
   Intangible amortization                   338                   380                   448                   441                    441 
   Foreclosed property expenses                     38                     50                   636                   282                      25 
   Provision for off-balance sheet credit exposure                   388                   226                   132                   300                    362 
   Other noninterest expense                   908                   953               1,226               1,265                1,537 
      Total noninterest expense             13,434             13,498             15,508             13,569              13,025 
      Net income before income taxes             15,201             12,733               8,763               6,228                9,638 
Income taxes               3,153               2,747               1,861               1,129                1,921 
      Net income             12,048               9,986               6,902               5,099                7,717 
Less: Distributed and undistributed earnings allocated          
         to participating securities                     34                     30                      -                        -                         -   
      Net income available to common shareholders $         12,014 $           9,956 $           6,902 $           5,099  $           7,717 
            
Basic earnings per common share $             1.33 $             1.09 $             0.76 $             0.55  $             0.84 
Diluted earnings per common share                  1.32                  1.09                  0.76                  0.55                   0.84 
Dividends per common share                  0.15                  0.15                  0.15                  0.15                   0.15 
Average common shares outstanding:           
   Basic       9,064,000       9,100,000       9,128,000       9,197,000        9,202,000 
   Diluted       9,067,000       9,102,000       9,130,000       9,205,000        9,213,000 
            



  For the three-month period ended
Quarterly Average Balance Sheet Data:  Dec. 31   Sep. 30,   June 30,   Mar. 31,   Dec. 31,  
      (dollars in thousands)    2020     2020     2020     2020     2019   
            
Interest-bearing cash equivalents $         40,915  $         19,768  $         10,380  $           7,363  $           6,322  
AFS securities and membership stock           184,828            181,535            188,497            184,389            183,748  
Loans receivable, gross       2,177,989        2,162,125        2,127,181        1,950,887        1,903,230  
   Total interest-earning assets       2,403,732        2,363,428        2,326,058        2,142,639        2,093,300  
Other assets           170,158            174,574            194,651            180,981            184,028  
   Total assets $   2,573,890  $   2,538,002  $   2,520,709  $   2,323,620  $   2,277,328  
            
Interest-bearing deposits $   1,886,883  $   1,865,636  $   1,838,606  $   1,729,327  $   1,674,198  
FHLB advances             69,991              70,272              83,130              83,916              99,728  
Note payable                      -                         -                  1,187                3,000                3,000  
Subordinated debt             15,180              15,155              15,130              15,105              15,080  
   Total interest-bearing liabilities       1,972,054        1,951,063        1,938,053        1,831,348        1,792,006  
Noninterest-bearing deposits           325,091            316,996            311,555            223,865            222,187  
Other noninterest-bearing liabilities             13,021              14,673              15,937              17,634              17,533  
   Total liabilities       2,310,166        2,282,732        2,265,545        2,072,847        2,031,726  
            
   Total stockholders' equity           263,724            255,270            255,164            250,773            245,602  
            
   Total liabilities and stockholders' equity $   2,573,890  $   2,538,002  $   2,520,709  $   2,323,620  $   2,277,328  
            
Return on average assets  1.87%  1.57%  1.10%  0.88%  1.36% 
Return on average common stockholders' equity  18.3%  15.6%  10.8%  8.1%  12.6% 
            
Net interest margin  3.92%  3.73%  3.75%  3.63%  3.70% 
Net interest spread  3.76%  3.55%  3.56%  3.40%  3.47% 
            
Efficiency ratio  45.9%  50.0%  59.3%  59.9%  56.5% 


  As of December 31, 2020   As of September 30, 2020  
Loan portfolio balances and CARES Act modifications Balance  Payment Interest-only Payment Interest-only 
      (dollars in thousands)  Outstanding  Deferrals Modifications Deferrals Modifications 
           
1- to 4-family residential loans$               438,156 $                       -   $                    138 $                1,171 $                8,805 
Multifamily residential loans                  198,534                           -                    10,581                           -                    12,278 
      Total residential loans                  636,690                            -                     10,719                     1,171                   21,083  
1- to 4-family owner-occupied construction loans                     23,380                           -                              -                             -                             -   
1- to 4-family speculative construction loans                     10,567                           -                             -                             -                             -   
Multifamily construction loans                     50,495                           -                             -                             -                             -   
Other construction loans                     28,552                           -                             -                      4,367                           -   
      Total construction loan balances drawn                  112,994                            -                              -                       4,367                            -    
Agricultural real estate loans                  185,811                           -                             -                      1,967                    1,415 
Loans for vacant land - developed, undeveloped, and other purposes                     55,117                           -                             -                             -                      1,203 
Owner-occupied commercial real estate loans to:          
Churches and nonprofits                     21,626                           -                          634                           -                      1,449 
Non-professional services                     15,507                           -                             -                             -                      2,106 
Retail                     26,234                           -                             -                             -                      1,257 
Automobile dealerships                     18,294                           -                             -                             -                             -   
Healthcare providers                       7,715                           -                             -                             -                          330 
Restaurants                     46,208                           -                             -                             -                      5,694 
Convenience stores                     20,285                           -                             -                             -                       1,303 
Automotive services                       5,141                           -                             -                             -                          244 
Manufacturing                     12,492                           -                             -                             -                      7,262 
Professional services                     12,734                           -                             -                             -                          354 
Warehouse/distribution                       4,718                           -                             -                             -                             -   
Grocery                       5,443                           -                             -                             -                            26 
Other                     46,430                           -                          816                           -                          551 
Total owner-occupied commercial real estate loans                  242,827                           -                      1,450                           -                    20,576 
Non-owner-occupied commercial real estate loans to:          
Care facilities                     35,302                           -                             -                             -                              -   
Non-professional services                     12,243                           -                             -                             -                      3,864 
Retail                     27,206                           -                             -                          545                        525 
Healthcare providers                     14,279                           -                             -                             -                          442 
Restaurants                     46,631                           -                             -                             -                          413 
Convenience stores                     14,928                           -                             -                             -                             -   
Automotive services                       5,401                           -                             -                             -                             -   
Hotels                     85,222                           -                    28,092                           -                      3,495 
Manufacturing                       4,998                           -                             -                             -                             -   
Storage units                     14,154                           -                             -                             -                          404 
Professional services                       8,732                           -                             -                             -                          460 
Multi-tenant retail                     73,026                           -                             -                             -                    14,872 
Warehouse/distribution                     25,847                           -                             -                             -                      2,953 
Other                     50,840                           -                             -                             -                      4,218 
Total non-owner-occupied commercial real estate loans                  418,809                           -                    28,092                        545                  31,646 
      Total commercial real estate                  902,564                            -                     29,542                     2,512                   54,840  



  As of December 31, 2020   As of September 30, 2020  
Loan portfolio balances and CARES Act modifications Balance  Payment Interest-only Payment Interest-only 
      (continued, dollars in thousands)  Outstanding  Deferrals Modifications Deferrals Modifications 
           
Home equity lines of credit                     40,729                           -                             -                             -                             -    
Deposit-secured loans                       5,001                           -                             -                             -                               1 
All other consumer loans                     33,860                           -                             -                            83                          92 
      Total consumer loans                     79,590                            -                              -                             83                           93  
Agricultural production and equipment loans                     99,281                           -                             -                          351                          84 
Loans to municipalities or other public units                       9,684                           -                             -                             -                             -   
Commercial and industrial loans to:                              -                             -                             -                             -                             -   
Forestry, fishing, and hunting                     13,890                           -                             -                             -                          364 
Construction                     24,788                           -                             -                             -                             -   
Finance and insurance                     56,040                           -                             -                             -                            20 
Real estate rental and leasing                     20,707                           -                             -                             -                            54 
Healthcare and social assistance                     29,909                           -                             -                             -                             -   
Accommodations and food services                     30,318                           -                             -                             -                          707 
Manufacturing                     11,828                           -                             -                             -                      3,097 
Retail trade                     41,655                           -                             -                             -                          874 
Transportation and warehousing                     33,601                           -                            11                           -                      3,071 
Professional services                       6,611                           -                             -                             -                            12 
Administrative support and waste management                       9,892                           -                             -                             -                             -   
Arts, entertainment, and recreation                       3,862                           -                             -                          585                          27 
Other commercial loans                     35,279                           -                             -                               8                        238 
Total commercial and industrial loans                  318,380                           -                            11                        593                    8,464 
      Total commercial loans                  427,345                            -                             11                         944                     8,548  
         Total gross loans receivable, excluding deferred loan fees$           2,159,183  $                       -    $              40,272  $                9,077  $              84,564  

 

Matt Funke
573-778-1800