SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR THIRD QUARTER OF FISCAL 2022; DECLARES QUARTERLY DIVIDEND OF $0.20 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, APRIL 26, AT 9:30AM CENTRAL TIME

Poplar Bluff, Missouri, April 25, 2022 (GLOBE NEWSWIRE) -- Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the third quarter of fiscal 2022 of $9.4 million, a decrease of $2.1 million, or 18.4%, as compared to the same period of the prior fiscal year. The decrease was attributable to an increase in noninterest expense and provision for credit losses, partially offset by increases in net interest income and noninterest income, and by a decrease in provision for income taxes. Preliminary net income was $1.03 per fully diluted common share for the third quarter of fiscal 2022, a decrease of $.24 as compared to the $1.27 per fully diluted common share reported for the same period of the prior fiscal year. Provision for credit losses and noninterest expense were impacted by one-time charges associated with the merger of Fortune Financial Corporation (“Fortune”) with and into the Company, completed in late February 2022.

 

Highlights for the third quarter of fiscal 2022: 

• The provision for credit losses (PCL) was $1.6 million in the quarter, an increase of $2.0 million as compared to a PCL recovery of $409,000 in the same period of the prior fiscal year. In the second quarter of fiscal 2022, the linked quarter, the Company did not record a PCL. Exclusive of the PCL effects of the Fortune merger, discussed in detail below, the Company would have recorded a negative PCL of approximately $468,000 in the current quarter.
   
• Noninterest expense was up 23.9% for the quarter, as compared to the year ago period, and up 11.2% from the second quarter of fiscal 2022, the linked quarter. The current quarter included $1.1 million in charges attributable to merger and acquisition activity, primarily the Fortune merger, as compared to $205,000 in comparable charges in the linked quarter, and none in the year ago period.
   
• Annualized return on average assets was 1.22%, while annualized return on average common equity was 11.9%, as compared to 1.71% and 16.9%, respectively, in the same quarter a year ago, and 1.69% and 16.1%, respectively, in the second quarter of fiscal 2022, the linked quarter.
   
• Earnings per common share (diluted) were $1.03, down $.24, or 18.9%, as compared to the same quarter a year ago, and down $.32, or 23.7%, from the second quarter of fiscal 2022, the linked quarter.
   
• Nonperforming assets were $7.1 million, or 0.22% of total assets, at March 31, 2022, as compared to $8.1 million, or 0.30% of total assets, at June 30, 2021, and $9.4 million, or 0.34% of total assets, at March 31, 2021.
   
• Deposit balances increased by $302.7 million in the quarter, inclusive of $218.3 million attributable to the Fortune merger. Gross loan balances increased $221.6 million during the quarter, inclusive of $202.1 million attributable to the Fortune merger, and net of a decline in SBA Paycheck Protection Program (PPP) loans not attributable to Fortune of $7.3 million.
   
• Net interest margin for the quarter was 3.48%, as compared to 3.68% reported for the year ago period, and 3.77% reported for the second quarter of fiscal 2022, the linked quarter. Net interest income resulting from accelerated accretion of deferred origination fees on PPP loans was significantly reduced as those loans being repaid through SBA forgiveness declined substantially as compared to previous quarters. Discount accretion on acquired loan portfolios was decreased in the current quarter as compared to the year ago period, and modestly increased as compared to the linked period. In addition, average interest-bearing cash and cash equivalent balances were increased 16.5% compared to the year-ago period, and increased 58.0% as compared to the linked quarter.
   
• Noninterest income was up 8.4% for the quarter, as compared to the year ago period, and down 7.2% as compared to the second quarter of fiscal 2022, the linked quarter. Gains on sale of residential loans originated for sale into the secondary market were down 76% as compared to the year ago quarter, and were off 44% compared to the linked quarter.

 

Dividend Declared: 

The Board of Directors, on April 19, 2022, declared a quarterly cash dividend on common stock of $0.20, payable May 31, 2022, to stockholders of record at the close of business on May 13, 2022, marking the 112th 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, April 26, 2022, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-844-200-6205 in the United States (Canada: 1-833-950-0062; all other locations: 1-929-526-1599). Participants should use participant access code 867380. Telephone playback will be available beginning one hour following the conclusion of the call through April 30, 2022. The playback may be accessed in the United States by dialing 1-866-813-9403 (Canada: 1-226-828-7578, UK local: 0204-525-0658, and all other locations: +44-204-525-0658), and using the conference passcode 930969.

 

Balance Sheet Summary: 

The Company experienced balance sheet growth in the first nine months of fiscal 2022, with total assets of $3.3 billion at March 31, 2022, reflecting an increase of $563.5 million, or 20.9%, as compared to June 30, 2021. Growth primarily reflected an increase in net loans receivable combined with an increase in cash and cash equivalents. A significant portion of the Company’s balance sheet growth was a result of the Fortune merger. 

Cash equivalents and time deposits were a combined $253.4 million at March 31, 2022, an increase of $128.8 million, or 103.4%, as compared to June 30, 2021. The increase was primarily a result of deposit growth outpacing loan growth during the period, including net cash acquired in the Fortune merger. AFS securities were $226.4 million at March 31, 2022, an increase of $19.4 million, or 9.4%, as compared to June 30, 2021, as the Company deployed some excess liquidity into higher-yielding assets. 

Loans, net of the allowance for credit losses (ACL), were $2.6 billion at March 31, 2022, an increase of $378.9 million, or 17.2%, as compared to June 30, 2021. Gross loans increased by $379.3 million, while the ACL attributable to outstanding loan balances increased by $419,000. The increase in loan balances was primarily attributable to the Fortune merger, which included loan balances recorded at a fair value of $202.1 million. Inclusive of the acquisition, the loan portfolio shows fiscal year-to-date increases in commercial and residential real estate loans, along with a modest contribution from consumer loans, partially offset by decreases in commercial loans and drawn balances on construction loans. Residential real estate loan balances increased due to growth in single and multifamily loans. Commercial real estate balances increased primarily from loans secured by nonresidential structures, along with growth in loans secured by farmland. Commercial loan balances decreased primarily due to lower balances in agricultural loans, partially offset by increased commercial and industrial lending. Company-originated PPP loan balances declined by $58.8 million during the fiscal year to date, while $2.4 million was acquired in the Fortune merger. Total remaining PPP balances at March 31, 2022, were $6.6 million, while unrecognized deferred fee income on these loans was approximately $137,000 at that date. Management hopes to receive forgiveness payments on all remaining PPP loans by our June 30 fiscal year end. Substantially all outstanding balances are from the second round of the PPP programs. 

Loans anticipated to fund in the next 90 days totaled $181.9 million at March 31, 2022, as compared to $158.2 million at December 31, 2021, and $145.8 million at March 31, 2021. 

Nonperforming loans were $3.9 million, or 0.15% of gross loans, at March 31, 2022, as compared to $5.9 million, or 0.26% of gross loans at June 30, 2021. The reduction in nonperforming loans was attributable primarily to the return to accrual status of one relationship secured by single-family residential rental properties, partially offset by an increase of $801,000 relating to the Fortune merger. Nonperforming assets were $7.1 million, or 0.22% of total assets, at March 31, 2022, as compared to $8.1 million, or 0.30% of total assets, at June 30, 2021. The reduction in nonperforming assets was attributable primarily to the reduction in nonperforming loans, partially offset by an increase in other real estate owned, which was attributable primarily to $1.7 million in assets acquired in the Fortune merger. 

Our ACL at March 31, 2022, totaled $33.6 million, representing 1.29% of gross loans and 867% of nonperforming loans, as compared to an ACL of $33.2 million, representing 1.49% of gross loans and 566% of nonperforming loans at June 30, 2021. The ACL at March 31, 2022, also represented 1.29% of gross loans excluding PPP loans. The ACL required for purchased credit deteriorated (PCD) loans acquired in the Fortune merger was $120,000, and was funded through purchase accounting adjustments, while the ACL required for non-PCD loans acquired in the Fortune merger was $1.9 million, and was funded through a charge to PCL. The Company has estimated its expected credit losses as of March 31, 2022, under ASC 326-20, and management believes the ACL as of that date is adequate based on that estimate. There remains, however, significant uncertainty as economic activity recovers from the COVID-19 pandemic and the Federal Reserve withdraws accommodative monetary policy that was put into effect to respond to the pandemic and its economic impact. Since January, COVID-19 cases and hospitalizations have declined substantially in our market areas. Management continues to consider the potential impact of the lengthy pandemic on borrowers most affected by mitigation efforts, most notably including our borrowers in the hotel industry. 

Provisions of the CARES Act and subsequent legislation allowed financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings (TDRs) through December 31, 2021, 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. As of December 31, 2021, there were four loans, with balances totaling approximately $23.7 million, remaining on interest-only payment modifications, and not reported as TDRs based on this temporary option provided under the legislation. For those borrowers whose payment terms had not yet returned to the original terms under their loan agreements, the Company had classified the credits as a “special mention” status credit as of December 31, 2021. Since that date, one of these loans totaling $9.1 million has returned to regular principal and interest payments, but remains a “special mention” credit. The other three loans, totaling $14.9 million, have not returned to principal and interest payments as of March 31, 2022, and have been adversely classified as “substandard” credits, but have not been designated as TDRs pending negotiation of a final restructuring modification. 

Total liabilities were $2.9 billion at March 31, 2022, an increase of $521.7 million, or 21.6%, as compared to June 30, 2021. 

Deposits were $2.9 billion at March 31, 2022, an increase of $524.1 million, or 22.5%, as compared to June 30, 2021. This increase was attributable in part to the February 2022 Fortune merger, providing $218.3 million in deposits at fair value, including $13.6 million in brokered time deposits and $10.9 million in public unit deposits. Additionally, we closed a branch acquisition in December 2021, through which the Company acquired the former Cairo, Illinois, location of the First National Bank (Fulda, SD), and its related deposits of $28.5 million at fair value, including $15.4 million in public unit deposits. Inclusive of the merger and acquisition, the deposit portfolio saw fiscal year-to-date increases in interest-bearing transaction accounts, non-interest bearing transaction accounts, certificates of deposit, money market deposit accounts, and savings accounts. The increase was inclusive of a $131.5 million increase in public unit funds, and a $5.9 million increase in brokered deposits. Public unit funds totaled $458.0 million at March 31, 2022, primarily in nonmaturity deposits, while brokered deposits totaled $30.9 million, also primarily in nonmaturity deposits. The Company’s customers have held unusually high balances on deposit during recent periods. The Company expects that some of the higher-than-normal balances may dissipate over the course of calendar year 2022, but public unit balances, which historically have seen seasonal declines in the June and September quarters, are expected to continue to increase in the current calendar year. The average loan-to-deposit ratio for the third quarter of fiscal 2022 was 91.3%, as compared to 92.4% for the same period of the prior fiscal year. 

FHLB advances were $42.9 million at March 31, 2022, a decrease of $14.6 million, or 25.4%, as compared to June 30, 2021, as the Company utilized cash to repay maturing term advances, partially offset by the assumption, at fair value, of $9.7 million in term advances in the Fortune merger. 

The Company’s stockholders’ equity was $325.2 million at March 31, 2022, an increase of $41.7 million, or 14.7%, as compared to June 30, 2021. The increase was attributable primarily to $22.9 million in equity issued to Fortune shareholders, as well as earnings retained after cash dividends paid, partially offset by a $9.4 million reduction in accumulated other comprehensive income as the market value of the Company’s investments declined as market interest rates increased, and by $1.2 million utilized for repurchases of 26,607 shares of the Company’s common stock during the first nine months of the fiscal year, at an average price of $44.15.

 

Quarterly Income Statement Summary: 

The Company’s net interest income for the three-month period ended March 31, 2022, was $25.1 million, an increase of $2.0 million, or 8.5%, 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, partially offset by a decrease in net interest margin to 3.48% in the current three-month period, from 3.68% in the same period a year ago. As PPP loan forgiveness declined, the Company’s accretion of interest income from deferred origination fees on these loans was reduced to $180,000 in the current quarter, which added four basis points to the net interest margin, as compared to $1.2 million in the same quarter a year ago, which added 18 basis points to the net interest margin in that period. In the linked quarter, ended December 31, 2021, accelerated recognition of deferred PPP origination fees totaled $890,000, adding 13 basis points to the net interest margin. The remaining balance of deferred origination fees is significantly less than the amount accreted in recent quarters. 

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 November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, and the February 2022 merger of Fortune with the Company resulted in $448,000 in net interest income for the three-month period ended March 31, 2022, as compared to $614,000 in net interest income for the same period a year ago. The Company generally expects this component of net interest income to decline over time, although volatility may occur to the extent we have periodic resolutions of specific loans. Combined, this component of net interest income contributed six basis points to net interest margin in the three-month period ended March 31, 2022, as compared to a contribution of 10 basis points in the same period of the prior fiscal year, and a six basis point contribution in the linked quarter, ended December 31, 2021, when net interest margin was 3.77%. 

The Company recorded a PCL of $1.6 million in the three-month period ended March 31, 2022, as compared to a negative PCL of $409,000 in the same period of the prior fiscal year. The allowance for credit losses (ACL) required for purchased credit deteriorated (PCD) loans acquired in the Fortune merger was $120,000, and was funded through purchase accounting adjustments, while the ACL required for non-PCD loans acquired in the Fortune merger was $1.9 million, and was funded through a charge to provision for credit losses (PCL). Additionally, the allowance for off-balance sheet credit exposures was increased by $120,000 due to the Fortune merger and funded through a charge to PCL. Exclusive of the charges required as a result of the Fortune merger, the Company would have recorded a negative PCL of approximately $468,000 in the current quarter. The Company assesses that the economic outlook has modestly improved as compared to the assessment as of June 30, 2021, though uncertainty remains as noted in our discussion of the ACL, above. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.01% (annualized) during the current period. During the same period of the prior fiscal year, the Company recorded net charge offs of 0.05% (annualized), while the negative PCL represented a recovery of 0.08% (annualized). 

The Company’s noninterest income for the three-month period ended March 31, 2022, was $4.9 million, an increase of $380,000, or 8.4%, as compared to the same period of the prior fiscal year. In the current period, increases in other noninterest income, other loan fees, and deposit account service charges were partially offset by reduced gains realized on the sale of residential real estate loans originated for that purpose and loan servicing fees. Other income improved primarily from wealth management and insurance agency production, boosted in part by a non-recurring payment of $152,000 to assist in bringing on new advisors from the Fortune merger. Other loan fees increased on increased applications and prepayment charges. Deposit service charges increased primarily due to an increase in NSF activity as compared to the year ago period. Origination of residential real estate loans for sale on the secondary market was down 71.4% as compared to the year ago period, as both refinancing and purchase activity declined, resulting in a decrease in both gains on sale of these loans and recognition of new mortgage servicing rights. 

Noninterest expense for the three-month period ended March 31, 2022, was $16.8 million, an increase of $3.2 million, or 23.9%, as compared to the same period of the prior fiscal year. The increase included $1.1 million in charges related to merger and acquisition activity, which was primarily attributable to data processing, compensation, and legal fees. In total, the increase in noninterest expense was attributable primarily to compensation and benefits, data processing expenses, occupancy expenses, and other noninterest expenses. The increase in compensation and benefits as compared to the prior year period primarily reflected increases in compensation and benefits over the prior year, one-time compensation attributable to the Fortune merger, increased headcount for part of the current quarter resulting from the merger, and a modest trend increase in legacy employee headcount. Compensation adjustments which took effect in January 2022 were, as expected, above the previous trend. Data processing expenses increased primarily as a result of data conversion charges associated with the Fortune merger. Occupancy expenses increased due to remodeled and relocated facilities, facilities added through the Fortune merger, a de novo facility, new ATM and ITM installations and other equipment purchases, and charges for maintenance of facilities and grounds. Other noninterest expenses increased due to miscellaneous merger-related expenses, expenses related to loan originations, and expenses related to employee travel and training. 

The efficiency ratio for the three-month period ended March 31, 2022, was 55.8%, as compared to 49.0% in the same period of the prior fiscal year, with the change attributable primarily to the current period’s increase in noninterest expense, partially offset by increases in net interest income and noninterest income. 

The income tax provision for the three-month period ended March 31, 2022, was $2.4 million, a decrease of $738,000, or 23.8% as compared to the same period of the prior fiscal year. This was primarily the result of the decline in pre-tax income, coupled with a decrease in the effective tax rate to 20.1%, as compared to 21.3% in the same period a year ago. The decrease in the effective tax rate was attributed to the reduction in pre-tax income, while tax-advantaged investments remained relatively steady.

 

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:		Mar. 31,				Dec. 31,				Sep. 30,				June 30,				Mar. 31,
(dollars in thousands, except per share data)		2022				2021				2021				2021				2021
Cash equivalents and time deposits		$	253,412			$	185,483			$	112,382			$	124,571			$	237,873
Available for sale (AFS) securities			226,391				206,583				209,409				207,020				190,409
FHLB/FRB membership stock			11,116				10,152				10,456				10,904				11,181
Loans receivable, gross			2,612,747				2,391,114				2,282,021				2,233,466				2,170,112
Allowance for credit losses			33,641				32,529				32,543				33,222				35,227
Loans receivable, net			2,579,106				2,358,585				2,249,478				2,200,244				2,134,885
Bank-owned life insurance			48,387				44,382				44,099				43,817				43,539
Intangible assets			35,568				21,157				20,868				21,218				21,168
Premises and equipment			72,253				65,074				65,253				64,077				63,908
Other assets			37,785				27,647				26,596				28,679				29,094
Total assets		$	3,264,018			$	2,919,063			$	2,738,541			$	2,700,530			$	2,732,057
Interest-bearing deposits		$	2,407,462			$	2,147,842			$	1,985,316			$	1,972,384			$	1,981,345
Noninterest-bearing deposits			447,444				404,410				386,379				358,419				387,416
FHLB advances			42,941				36,512				46,522				57,529				62,781
Other liabilities			17,971				13,394				11,796				13,532				12,358
Subordinated debt			23,043				15,294				15,268				15,243				15,218
Total liabilities			2,938,861				2,617,452				2,445,281				2,417,107				2,459,118
Total stockholders' equity			325,157				301,611				293,260				283,423				272,939
Total liabilities and stockholders' equity		$	3,264,018			$	2,919,063			$	2,738,541			$	2,700,530			$	2,732,057
Equity to assets ratio			9.96	%			10.33	%			10.71	%			10.50	%			9.99	%
Common shares outstanding			9,332,698				8,887,166				8,878,591				8,905,265				8,959,296
Less: Restricted common shares not vested			39,230				39,920				31,845				31,845				31,845
Common shares for book value determination			9,293,468				8,847,246				8,846,746				8,873,420				8,927,451
Book value per common share		$	34.99			$	34.09			$	33.15			$	31.94			$	30.57
Closing market price			49.95				52.17				44.89				44.96				39.42
Nonperforming asset data as of:		Mar. 31,				Dec. 31,				Sep. 30,				June 30,				Mar. 31,
(dollars in thousands)		2022				2021				2021				2021				2021
Nonaccrual loans		$	3,882			$	2,963			$	6,133			$	5,869			$	6,757
Accruing loans 90 days or more past due			-				-				-				-				-
Total nonperforming loans			3,882				2,963				6,133				5,869				6,757
Other real estate owned (OREO)			3,199				1,776				2,240				2,227				2,651
Personal property repossessed			-				14				8				23				-
Total nonperforming assets		$	7,081			$	4,753			$	8,381			$	8,119			$	9,408
Total nonperforming assets to total assets			0.22	%			0.16	%			0.31	%			0.30	%			0.34	%
Total nonperforming loans to gross loans			0.15	%			0.12	%			0.27	%			0.26	%			0.31	%
Allowance for loan losses to nonperforming loans			866.59	%			1097.84	%			530.62	%			566.06	%			521.34	%
Allowance for loan losses to gross loans			1.29	%			1.36	%			1.43	%			1.49	%			1.62	%
Performing troubled debt restructurings (1)		$	6,417			$	6,387			$	3,585			$	3,241			$	7,092
(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:		Mar. 31,			Dec. 31,			Sep. 30,				June 30,				Mar. 31,
(dollars in thousands, except per share data)		2022			2021			2021				2021				2021
Interest income:
Cash equivalents		$	109		$	70		$	60			$	67			$	70
AFS securities and membership stock			1,170			1,165			1,106				1,126				1,025
Loans receivable			27,060			26,861			27,694				26,339				26,005
Total interest income			28,339			28,096			28,860				27,532				27,100
Interest expense:
Deposits			2,871			2,739			2,816				3,141				3,494
FHLB advances			167			169			276				314				325
Subordinated debt			187			130			130				131				132
Total interest expense			3,225			3,038			3,222				3,586				3,951
Net interest income			25,114			25,058			25,638				23,946				23,149
Provision for credit losses			1,552			-			(305	)			(2,615	)			(409	)
Noninterest income:
Deposit account charges and related fees			1,560			1,623			1,561				1,279				1,275
Bank card interchange income			1,025			976			951				1,243				1,004
Loan late charges			135			172			107				189				118
Loan servicing fees			170			180			154				559				217
Other loan fees			606			500			451				302				266
Net realized gains on sale of loans			204			362			369				531				853
Net realized gains on AFS securities			-			-			-				-				90
Earnings on bank owned life insurance			291			282			281				277				270
Other noninterest income			913			1,190			641				477				431
Total noninterest income			4,904			5,285			4,515				4,857				4,524
Noninterest expense:
Compensation and benefits			9,223			8,323			8,199				8,007				7,739
Occupancy and equipment, net			2,399			2,198			2,113				2,053				1,990
Data processing expense			1,935			1,297			1,269				1,322				1,253
Telecommunications expense			308			318			320				321				317
Deposit insurance premiums			178			180			178				173				174
Legal and professional fees			341			356			234				403				256
Advertising			312			276			329				391				240
Postage and office supplies			202			186			195				211				198
Intangible amortization			363			338			338				338				338
Foreclosed property expenses			115			302			31				6				48
Other noninterest expense			1,381			1,296			1,018				975				975
Total noninterest expense			16,757			15,070			14,224				14,200				13,528
Net income before income taxes			11,709			15,273			16,234				17,218				14,554
Income taxes			2,358			3,288			3,488				3,529				3,096
Net income			9,351			11,985			12,746				13,689				11,458
Less: Distributed and undistributed earnings allocated
to participating securities			40			54			46				49				41
Net income available to common shareholders		$	9,311		$	11,931		$	12,700			$	13,640			$	11,417
Basic earnings per common share		$	1.03		$	1.35		$	1.43			$	1.53			$	1.27
Diluted earnings per common share			1.03			1.35			1.43				1.53				1.27
Dividends per common share			0.20			0.20			0.20				0.16				0.16
Average common shares outstanding:
Basic			9,021,000			8,847,000			8,867,000				8,895,000				8,972,000
Diluted			9,044,000			8,869,000			8,874,000				8,902,000				8,976,000

 

 

	For the three-month period ended
Quarterly Average Balance Sheet Data:		Mar. 31,				Dec. 31,				Sep. 30,				June 30,				Mar. 31,
(dollars in thousands)		2022				2021				2021				2021				2021
Interest-bearing cash equivalents		$	199,754			$	126,445			$	83,697			$	158,108			$	171,403
AFS securities and membership stock			226,944				217,456				212,564				206,203				197,984
Loans receivable, gross			2,461,365				2,312,140				2,262,095				2,193,522				2,146,364
Total interest-earning assets			2,888,063				2,656,041				2,558,356				2,557,833				2,515,751
Other assets			188,549				174,647				171,505				166,312				170,475
Total assets		$	3,076,612			$	2,830,688			$	2,729,861			$	2,724,145			$	2,686,226
Interest-bearing deposits		$	2,274,287			$	2,071,562			$	1,986,023			$	1,985,118			$	1,965,191
FHLB advances			39,114				39,019				54,701				60,252				63,068
Subordinated debt			19,170				15,281				15,256				15,230				15,205
Total interest-bearing liabilities			2,332,571				2,125,862				2,055,980				2,060,600				2,043,464
Noninterest-bearing deposits			421,898				398,175				359,717				374,744				357,746
Other noninterest-bearing liabilities			8,345				9,756				25,593				11,585				14,563
Total liabilities			2,762,814				2,533,793				2,441,290				2,446,929				2,415,773
Total stockholders' equity			313,798				296,895				288,571				277,216				270,453
Total liabilities and stockholders' equity		$	3,076,612			$	2,830,688			$	2,729,861			$	2,724,145			$	2,686,226
Return on average assets			1.22	%			1.69	%			1.87	%			2.01	%			1.71	%
Return on average common stockholders' equity			11.9	%			16.1	%			17.7	%			19.8	%			16.9	%
Net interest margin			3.48	%			3.77	%			4.01	%			3.74	%			3.68	%
Net interest spread			3.37	%			3.66	%			3.88	%			3.61	%			3.54	%
Efficiency ratio			55.8	%			49.7	%			47.2	%			49.3	%			49.0	%

Matthew Funke, EVP/CFO
573-778-1800