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Southern Missouri Bancorp Inc. Reports Operating Results (10-K)

September 28, 2009 | About:

Southern Missouri Bancorp Inc. (NASDAQ:SMBC) filed Annual Report for the period ended 2009-06-30.

SOUTHERN MO BANCORP INC. is a bank holding company. Southern Missouri Bancorp Inc. has a market cap of $23.49 million; its shares were traded at around $11.4999 with and P/S ratio of 1.48. The dividend yield of Southern Missouri Bancorp Inc. stocks is 4.27%. Southern Missouri Bancorp Inc. had an annual average earning growth of 15.8% over the past 5 years.

Highlight of Business Operations:

At June 30, 2009, the Company had total assets of $465.9 million, total deposits of $312.0 million and stockholders' equity of $42.0 million. The Company has not engaged in any significant activity other than holding the stock of the Bank. Accordingly, the information set forth in this report, including financial statements and related data, relates primarily to the Bank. The Company's revenues are derived principally from interest earned on loans, investment securities, MBS, CMOs and, to a lesser extent, banking service charges, loan late charges, increases in the cash surrender value of bank owned life insurance and other fee income.

On December 5, 2008, as part of the Troubled Asset Relief Program ("TARP") Capital Purchase Program, the Company entered into a Letter Agreement and Securities Purchase Agreement (collectively, the "Purchase Agreement") with the United States Department of the Treasury ("Treasury"), pursuant to which the Company (i) sold 9,550 shares of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock") for a purchase price of $9,550,000 in cash and (ii) issued a warrant (the "Warrant") to purchase 114,326 shares of the Company's common stock, par value $0.01 per share (the "Common Stock"), for a per share price of $12.53 per share. The Series A Preferred Stock is entitled to cumulative dividends at a rate of 5% per annum for the first five years, and 9% per annum thereafter. The Series A Preferred Stock may be redeemed by the Company at any time, subject to consultation. The Warrant has a 10-year term and is immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments, equal to $12.53 per share of the Common Stock. If the Series A Preferred Stock is redeemed, the Warrant will be liquidated at the current market price. Treasury has agreed not to exercise voting power with respect to any shares of Common Stock issued upon exercise of the Warrant that it holds.

Through June 30, 2009, the Company had placed $5.0 million of TARP proceeds into its wholly-owned subsidiary, Southern Bank, while maintaining $4.6 million with the Company, of which approximately $3.0 million was expected to be used as additional capital provided to the Bank to support the acquisition of the Southern Bank of Commerce, following the fiscal year end. Using the additional capital, along with additional funding from the Federal Home Loan Bank, Southern Bank increased its investment portfolio by $20.3 million during the 2009 fiscal year. These purchases were primarily in mortgage and municipal securities, and would likely have not been made absent the Treasury investment. Also during the 2009 fiscal year, the Company increased its loan portfolio by $25.5 million. The funds held at Southern Bank were placed in working capital, which was used to fund loans and meet the cash needs of Southern Bank.

On July 17, 2009, the Company acquired 100% of the outstanding stock of Southern Bank of Commerce (SBOC), headquartered in Paragould, Arkansas. SBOC was merged into the Company's subsidiary Bank on July 20, 2009. The Company acquired SBOC primarily for the purpose of obtaining entry to markets where it believes the Company's business model will perform well. At acquisition, SBOC held assets of $29.9 million, including loans of $16.2 million, and held deposits of $29.1 million.

The aggregate amount of loans that the Bank is permitted to make under applicable federal regulations to any one borrower, including related entities, or the aggregate amount that the Bank could have invested in any one real estate project, is based on the Bank's capital levels. See "Regulation - Loans to One Borrower." At June 30, 2009, the maximum amount which the Bank could lend to any one borrower and the borrower's related entities was approximately $11.6 million. However, the Bank's internal lending limit established by the Board of Directors is $10.0 million. At June 30, 2009, the Bank's five largest extensions of credit to one entity ranged from $8.0 million to $9.7 million, net of participation interests sold. The majority of these credits were commercial real estate, commercial, or multi-family real estate loans and all of them were performing according to their terms.

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