Southern Missouri Bancorp, Inc. reported unaudited consolidated earnings results for the second quarter ended December 31, 2017. The company announced preliminary net income available to common stockholders for the second quarter of fiscal 2018 of $5.2 million, an increase of $1.0 million, or 23.8%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, as well as a reduction in provision for loan losses, partially offset by an increase in noninterest expense and provision for income taxes. Preliminary net income available to common stockholders was $0.60 per basic and diluted common share for the second quarter of fiscal 2018, an increase of $0.04 as compared to the $0.56 per basic and diluted common share reported for the same period of the prior fiscal year. The company's net interest income for the three-month period ended December 31, 2017, was $15.7 million, an increase of $3.1 million, or 24.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 19.6% increase in the average balance of interest-earning assets, combined with an increase in net interest margin to 3.87% in the current three-month period, from 3.71% three-month period a year ago. Annualized return on average assets was 1.17%, while annualized return on average common equity was 11.6%, as compared to 1.13% and 12.9%, respectively, in the same quarter a year ago, and 1.12% and 11.1%, respectively, in the first quarter of fiscal 2018, the linked quarter. Total interest income was $19,231,000 against $15,083,000 a year ago. Book value per common share was $21.04 against $17.58 a year ago.

The company recorded net charge offs during the period of 0.04% (annualized).

After applying the reduction in the AETR to the first half of fiscal 2018, the revaluation of the DTA increased the effective tax rate by approximately 5.9 percentage points, to 30.7% for the fiscal year to date. If the company maintains a consistent level of tax-advantaged activity and investment relative to its pre-tax income, it would expect an effective tax rate for the second half of fiscal 2018 of 24% to 26%.

For the full year fiscal 2018, the company expects effective tax rate of 27% to 29%, which includes the impact of the DTA revaluation.

For fiscal 2019, assuming a consistent level of tax-advantaged activity and investment relative to the company's pre-tax income, it would expect an effective tax rate of 18% to 20%.