Southern Missouri Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter Ended December 31, 2017; Provides Effective Tax Rate Guidance for the Fiscal Second Half of 2018, Full Year of 2018 and 2019; Reports Net Charge Offs for the Fiscal Second Quarter of 2018
January 22, 2018 at 05:45 pm EST
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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%.
Southern Missouri Bancorp, Inc. is a bank holding company and the parent company of Southern Bank (Bank). The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The principal business of the Bank consists of attracting retail deposits from the general public and using such deposits along with wholesale funding from the Federal Home Loan Bank of Des Moines, (FHLB), and brokered deposits, to invest in one- to-four-family residential mortgage loans, mortgage loans secured by commercial real estate, commercial non-mortgage business loans, construction loans, and consumer loans. These funds are also used to purchase mortgage-backed and related securities (MBS), municipal bonds, and other permissible investments. The Bank conducts its business from its headquarters in Poplar Bluff, as well as about 62 full-service branch offices and three limited-service branch offices.
Southern Missouri Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter Ended December 31, 2017; Provides Effective Tax Rate Guidance for the Fiscal Second Half of 2018, Full Year of 2018 and 2019; Reports Net Charge Offs for the Fiscal Second Quarter of 2018