Southern Missouri Bancorp, Inc. reported its financial results for the three months ended September 30, 2024, showing a mixed performance compared to the same period in the previous year. Total assets increased by $124.9 million, reaching $4.7 billion, primarily driven by a $114.8 million rise in net loans and a $14.4 million increase in cash equivalents. Deposits also grew by $97.1 million to $4.0 billion.
Interest income for the quarter was $67.4 million, up from $58.1 million in 2023, with loans contributing $61.8 million, an increase from $53.0 million. However, total interest expense rose significantly to $30.7 million from $22.7 million, leading to a net interest income of $36.7 million, a slight increase from $35.4 million. The net interest margin decreased to 3.37% from 3.44% year-over-year.
Net income for the quarter was $12.5 million, down from $13.2 million in the prior year, resulting in basic earnings per share of $1.10, compared to $1.16. The decrease in net income was attributed to a one-time cost of $840,000 related to a performance improvement project, which reduced after-tax net income by $652,000.
Noninterest income increased by 22.6% to $7.2 million, driven by higher fees and gains from loan sales. Conversely, noninterest expenses rose by 9.0% to $25.8 million, primarily due to increased compensation, legal fees, and advertising costs. The provision for credit losses surged to $2.2 million from $900,000, reflecting loan growth and a slight rise in expected losses.
The allowance for credit losses (ACL) stood at $54.4 million, up from $49.1 million a year earlier, representing 1.37% of gross loans. Total past-due loans increased to $13.4 million from $9.2 million, with nonaccruing loans also rising to $8.2 million.
Strategically, the company completed the acquisition of Citizens Bancshares Co. in January 2023, which contributed to its loan portfolio growth. The company has focused on managing interest rate risk through interest rate swaps and has increased its share of funding from lower-cost deposits.
Overall, while Southern Missouri Bancorp experienced growth in assets and deposits, profitability faced challenges due to rising expenses and provisions for credit losses.
About SOUTHERN MISSOURI BANCORP, INC.
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