Preliminary Q1 2026 Southern Missouri Bancorp Inc Earnings Call Transcript
Key Points
- Southern Missouri Bancorp Inc (SMBC) reported stable earnings and profitability with solid growth in net interest income due to loan growth and net interest margin expansion.
- Net interest margin improved to 3.57%, up from 3.47% in the previous quarter, driven by loan yield expansion and a decline in the cost of interest-bearing liabilities.
- Gross loan balances increased by $91 million or 2.2% during the first quarter, with strong growth in non-owner-occupied CRE, 1-4 family residential, C&I, and multifamily loans.
- Deposit balances were up $240 million or 5.9% over the last 12 months, allowing the company to be less aggressive on promotional deposit pricing.
- Tangible book value increased by 13.3% over the last 12 months, attributed to earnings retention and improvement in the bank's unrealized loss in the investment portfolio.
- The company faced a larger provision for credit losses due to the evolving economic environment and loan growth, impacting overall profitability.
- Non-performing loans increased to $26 million, representing 0.62% of gross loans, primarily due to a commercial relationship and residential properties placed on non-accrual status.
- Non-interest income decreased by 9.7% compared to the linked quarter, driven by lower other loan fees and bank card interchange income.
- The agricultural segment faced challenges with lower future pricing for key crops and elevated input and interest costs, pressuring producers' margins.
- Despite improvements, problem asset levels increased slightly, with adversely classified loans at $55 million or 1.3% of total loans.
Hello everyone, and thank you for joining us today for the Southern Missouri Bancorp earnings conference call. My name is Sammy and I'll be coordinating your call today. (Operator Instructions)
I would now like to hand over to your host, Stefan Chkautovich, Executive Vice President and CFO, to begin. Please go ahead, Stefan.
Thank you, Sammy. Good morning, everyone. This is Stefan Chkautovich, CFO of Southern Missouri Bancorp. Thank you for joining us today.
The purpose of this call is to review the information and data presented in our quarterly earnings release dated Wednesday, October 22, 2025 and to take your questions. We may make certain forward-looking statements during today's call, and we refer you to our cautionary statement regarding forward-looking statements contained in the press release. I'm joined on the call today by Greg Steffens, our Chairman and CEO; and Matt Funke, President and Chief
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