Poplar Bluff, Missouri, Oct. 28, 2024 (GLOBE NEWSWIRE) —  

Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the first quarter of fiscal 2025 of $12.5 million, a decrease of $693,000 or 5.3%, as compared to the same period of the prior fiscal year. The decrease was due primarily to higher provision for credit loss (“PCL”) expense, as well as higher non-interest expense. This was partially offset by an increase in net interest income. Preliminary net income was $1.10 per fully diluted common share for the first quarter of fiscal 2025, a decrease of $0.06 as compared to $1.16 per fully diluted common share reported for the same period of the prior fiscal year. During the first quarter of fiscal 2025, the Company engaged with a consultant to complete a performance improvement project to enhance operations and revenues of the Bank. The one-time cost associated with this review totaled $840,000, reduced after-tax net income by $652,000, or $0.06 per fully diluted common share, and was a primary reason for the increase in non-interest expense during the current period, noted in further detail below.                     

 Highlights for the first quarter of fiscal 2025:

  • Earnings per common share (diluted) were $1.10, down $0.06, or 5.2%, as compared to the same quarter a year ago, and down $0.09, or 7.6% from the fourth quarter of fiscal 2024, the linked quarter.
  • Annualized return on average assets (“ROA”) was 1.07%, while annualized return on average common equity (“ROE”) was 10.0%, as compared to 1.20% and 11.7%, respectively, in the same quarter a year ago, and 1.17% and 11.2%, respectively, in the fourth quarter of fiscal 2024, the linked quarter. The one-time costs of the performance review recognized in the current quarter reduced after-tax ROA by six basis points.
  • Net interest margin for the quarter was 3.37%, down from the 3.44% reported for the year ago period, and up from 3.25% reported for the fourth quarter of fiscal 2024, the linked quarter. Net interest income increased $1.3 million, or 3.6%, as compared to the same quarter a year ago, and increased $1.6 million, or 4.5%, as compared to the fourth quarter of fiscal 2024, the linked quarter.
  • Noninterest expense was up 9.0% for the quarter, as compared to the year ago period, primarily from increased compensation and benefits and legal and professional fees, and up 3.4% from the fourth quarter of fiscal 2024, the linked quarter. In the current quarter, legal and professional fees increased as the Bank incurred one-time costs of $840,000 associated with a performance improvement project.
  • Gross loan balances increased by $116.7 million during the first quarter of fiscal 2025, or 3.0%, and increased by $266.8 million, or 7.2%, over the last twelve months.
  • PCL was $2.2 million during the first quarter of fiscal 2025, a $1.3 million increase from both the year ago period and the June 30, 2024, linked quarter. The increase was primarily due to an increase in the allowance for credit losses (“ACL”) attributable to individually evaluated loans, loan growth, and an increase in modeled expected losses.
  • Deposit balances increased by $97.1 million during the first quarter of fiscal 2025, or 2.5%, and increased by $208.4 million, or 5.4%, over the last twelve months.
  • Tangible book value per share was $38.26, and increased by $5.14 or 15.5% during the last twelve months.

Dividend Declared:

The Board of Directors, on October 22, 2024, declared a quarterly cash dividend on common stock of $0.23, payable November 29, 2024, to stockholders of record at the close of business on November 15, 2024, marking the 122nd consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Tuesday, October 29, 2024, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 523822. Telephone playback will be available beginning one hour following the conclusion of the call through November 2, 2024. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 217957.

Balance Sheet Summary:

The Company experienced balance sheet growth in the first three months of fiscal 2025, with total assets of $4.7 billion at September 30, 2024, reflecting an increase of $124.9 million, or 2.7%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable and cash equivalents and time deposits.

Cash equivalents and time deposits were $75.6 million at September 30, 2024, an increase of $14.2 million, or 23.1%, as compared to June 30, 2024. Available for sale securities were $420.2 million at September 30, 2024, down $7.7 million, or 1.8%, as compared to June 30, 2024, as the Company was less active in reinvesting principal payments received.

Loans, net of the ACL, were $3.9 billion at September 30, 2024, increasing by $114.8 million, or 3.0%, as compared to June 30, 2024. The Company noted growth in both the real estate and commercial portfolios. Real estate loan growth was primarily driven by drawn construction, 1-4 family residential, and owner occupied commercial real estate loan balances. This was somewhat offset by a decrease in loans secured by multi-family property. In the commercial portfolio, growth was driven by seasonal agricultural production loan draws and modest growth in commercial and industrial loan balances. The table below illustrates changes in loan balances by type over recent periods:

                               
Summary Loan Data as of:      Sept 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,
(dollars in thousands)   2024   2024   2024   2023   2023
                               
1-4 residential real estate   $ 942,916   $ 925,397   $ 903,371   $ 893,940   $ 875,666
Non-owner occupied commercial real estate     903,678     899,770     898,911     863,426     846,875
Owner occupied commercial real estate     438,030     427,476     412,958     403,109     422,824
Multi-family real estate     371,177     384,564     417,106     380,632     365,890
Construction and land development     567,002     499,587     495,284     562,773     620,313
Agriculture real estate     239,787     232,520     233,853     238,093     239,787
Total loans secured by real estate     3,462,590     3,369,314     3,361,483     3,341,973     3,371,355
                               
Commercial and industrial     457,018     450,147     436,093     443,532     431,178
Agriculture production     200,215     175,968     139,533     146,254     164,631
Consumer     58,735     59,671     56,506     57,771     58,706
All other loans     3,699     3,981     4,799     7,106     6,724
Total loans     4,182,257     4,059,081     3,998,414     3,996,636     4,032,594
                               
Unfunded commitments on construction loans     (215,521     (209,046     (226,969     (264,483     (332,633
Deferred loan fees, net     (218     (232     (251     (263     (282
Gross loans     3,966,518     3,849,803     3,771,194     3,731,890     3,699,679
Allowance for credit losses     (54,437     (52,516     (51,336     (50,084     (49,122
Net loans   $ 3,912,081   $ 3,797,287   $ 3,719,858   $ 3,681,806   $ 3,650,557

Loans anticipated to fund in the next 90 days totaled $168.0 million at September 30, 2024, as compared to $157.1 million at June 30, 2024, and $158.2 million at September 30, 2023.

The Bank’s concentration in non-owner occupied commercial real estate, as defined for regulatory purposes, is estimated at 320.1% of Tier 1 capital and ACL at September 30, 2024, as compared to 317.5% as of June 30, 2024, the linked quarter end, with these loans representing 46.4% of gross loans at September 30, 2024. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or having exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 34 loans totaling $24.9 million, or 0.63% of gross loans at September 30, 2024, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans were $8.2 million, or 0.21% of gross loans, at September 30, 2024, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets were $12.1 million, or 0.26% of total assets, at September 30, 2024, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The change in nonperforming assets was attributable to the increase of $1.5 million in nonperforming loans, of which the largest individual loan was collateralized by a single-family residential property.

Our ACL at September 30, 2024, totaled $54.4 million, representing 1.37% of gross loans and 663% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of September 30, 2024, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as the Federal Reserve has tightened monetary policy to address inflation risks. Qualitative adjustments in the Company’s ACL model were slightly decreased compared to June 30, 2024. The Company increased the allowance attributable to classified hotel loans that have been slow to recover from the COVID-19 pandemic. Additionally, PCL was required due to loan growth in the first quarter of fiscal year 2025 and a slight increase in modeled expected losses due to a modest increase in the unemployment rate expectations. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.01% (annualized) during the current period, as compared to 0.03% for the same period of the prior fiscal year.

Total liabilities were $4.2 billion at September 30, 2024, an increase of $108.0 million, or 2.6%, as compared to June 30, 2024.

Deposits were $4.0 billion at September 30, 2024, an increase of $97.1 million, or 2.5%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into high yield savings accounts and special rate time deposits during the higher rate environment. Public unit balances totaled $510.5 million at September 30, 2024, a decrease of $84.1 million compared to June 30, 2024, due to the Company losing the bid to retain a larger local public unit depositor, and also experienced expected seasonal decreases in these accounts. Brokered deposits totaled $273.2 million at September 30, 2024, an increase of $99.4 million compared to June 30, 2024. The Company increased brokered deposits in the quarter due to more attractive pricing for brokered certificates of deposits relative to local market rates and the need to meet seasonal loan demand. The average loan-to-deposit ratio for the first quarter of fiscal 2025 was 98.4%, as compared to 96.3% for the linked quarter. The table below illustrates changes in deposit balances by type over recent periods:

                               
Summary Deposit Data as of:      Sep. 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,
(dollars in thousands)   2024   2024   2024   2023   2023
                               
Non-interest bearing deposits   $ 503,209   $ 514,107   $ 525,959   $ 534,194   $ 583,353
NOW accounts     1,128,917     1,239,663     1,300,358     1,304,371     1,231,005
MMDAs – non-brokered     320,252     334,774     359,569     378,578     415,115
Brokered MMDAs     12,058     2,025     10,084     20,560     20,272
Savings accounts     556,030     517,084     455,212     372,824     313,135
Total nonmaturity deposits     2,520,466     2,607,653     2,651,182     2,610,527     2,562,880
                               
Certificates of deposit – non-brokered     1,258,583     1,163,650     1,158,063     1,194,993     1,066,165
Brokered certificates of deposit     261,093     171,756     176,867     179,980     202,683
Total certificates of deposit     1,519,676     1,335,406     1,334,930     1,374,973     1,268,848
                               
Total deposits   $ 4,040,142   $ 3,943,059   $ 3,986,112   $ 3,985,500   $ 3,831,728
                               
Public unit nonmaturity accounts   $ 447,638   $ 541,445   $ 572,631   $ 544,873   $ 491,868
Public unit certificates of deposit     62,882     53,144     51,834     49,237     52,989
Total public unit deposits   $ 510,520   $ 594,589   $ 624,465   $ 594,110   $ 544,857

FHLB advances were $107.1 million at September 30, 2024, a decrease of $5.0 million, or 4.9%, from June 30, 2024, due to maturing advances which were not renewed. For the quarter ended September 30, 2024, the Company continued to have no FHLB overnight borrowings at the end of the period.  

The Company’s stockholders’ equity was $505.6 million at September 30, 2024, an increase of $16.9 million, or 3.5%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a decrease in accumulated other comprehensive losses (“AOCL”) as the market value of the Company’s investments appreciated due to decreases in market interest rates. The AOCL decreased from $17.4 million at June 30, 2024, to $10.6 million at September 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended September 30, 2024, was $36.7 million, an increase of $1.3 million, or 3.6%, as compared to the same period of the prior fiscal year. The increase was attributable to a 5.9% increase in the average balance of interest-earning assets in the current three-month period, as compared to the same period a year ago, partially offset by a seven-basis point decrease in net interest margin, from 3.44% to 3.37%, as the cost of interest-bearing liabilities increased by 70 basis points, outpacing the 54-basis point increase in the yield earned on interest earning assets. Net interest income for the three-month period ended September 30, 2024, grew $1.6 million, or 4.5%, as compared to the June 30, 2024, linked quarter, attributable to a 12-basis point increase in the net interest margin and a 0.7% increase in the average balance of interest-earning assets. The primary driver of the net interest margin expansion, compared to the linked quarter, was the 21-basis point increase in the yield on interest-earning assets, partially offset by the 11-basis point increase in the cost of interest-bearing liabilities. Contributing to the margin increase, the average loan to deposit ratio increased by 2.4 percentage points in the current period, as compared to the linked quarter, as the balance sheet composition shifted toward higher yielding assets.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $975,000 in net interest income for the three-month period ended September 30, 2024, as compared to $1.7 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed nine basis points to net interest margin in the three-month period ended September 30, 2024, as compared to a 16-basis point contribution for the same period of the prior fiscal year, and as compared to a ten-basis point contribution in the linked quarter ended June 30, 2024, when net interest margin was 3.25%.

The Company recorded a PCL of $2.2 million in the three-month period ended September 30, 2024, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $138,000 provision attributable to the allowance for off-balance sheet credit exposures.

The Company’s noninterest income for the three-month period ended September 30, 2024, was $7.2 million, an increase of $1.3 million, or 22.6%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to other loan fees, deposit account charges and related fees, bank card interchange income, and net realized gains on sale of loans. Net realized gains on sale of loans increased due to sales of Small Business Administration loans. These increases were partially offset by lower loan late charges, wealth management fees, and other non-interest income. Other non-interest income decreased primarily due to modest losses on the disposal of fixed assets, which were comprised of various equipment.

Noninterest expense for the three-month period ended September 30, 2024, was $25.8 million, an increase of $2.1 million, or 9.0%, as compared to the same period of the prior fiscal year. In the current quarter, this increase in noninterest expense was attributable primarily to increases in compensation and benefits, legal and professional fees, occupancy and equipment, and advertising expenses. The increase in compensation and benefits expense was primarily due to a trend increase in employee headcount, as well as annual merit increases. Legal and professional expenses increased primarily due to a one-time expense associated with a performance improvement project that started during the first fiscal quarter of 2025, as discussed above. This expense was fully realized in the September quarter, with only modest reimbursables remaining to be recognized in later quarters. Occupancy and equipment expenses increased primarily due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. Advertising activity in the current quarter increased marketing expenses compared to the same quarter of the prior fiscal year.

The efficiency ratio for the three-month period ended September 30, 2024, was 59.0%, as compared to 57.5% in the same period of the prior fiscal year. The change was attributable to noninterest expense growing faster than revenues. Excluding the one-time performance improvement project costs, the efficiency ratio for the first quarter of 2025 would have been lower by two percentage points.

The income tax provision for the three-month period ended September 30, 2024, was $3.4 million, a decrease of 3.2%, as compared to the same period of the prior fiscal year, primarily due to the decrease in net income before income taxes. The effective tax rate was 21.3% as compared to 21.0% in the same quarter of the prior fiscal year.  

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development of and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for loan losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.    

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                 
Summary Balance Sheet Data as of:      Sep. 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,  
(dollars in thousands, except per share data)   2024   2024   2024   2023   2023  
                                 
Cash equivalents and time deposits   $ 75,591   $ 61,395   $ 168,763   $ 217,090   $ 89,180  
Available for sale (AFS) securities     420,209     427,903     433,689     417,406     405,198  
FHLB/FRB membership stock     18,064     17,802     17,734     18,023     19,960  
Loans receivable, gross     3,966,518     3,849,803     3,771,194     3,731,890     3,699,679  
Allowance for credit losses     54,437     52,516     51,336     50,084     49,122  
Loans receivable, net     3,912,081     3,797,287     3,719,858     3,681,806     3,650,557  
Bank-owned life insurance     74,119     73,601     73,101     72,618     72,144  
Intangible assets     76,340     77,232     78,049     79,088     80,117  
Premises and equipment     96,087     95,952     95,801     94,519     94,717  
Other assets     56,709     53,144     59,997     62,952     58,160  
Total assets   $ 4,729,200   $ 4,604,316   $ 4,646,992   $ 4,643,502   $ 4,470,033  
                                 
Interest-bearing deposits   $ 3,536,933   $ 3,428,952   $ 3,437,420   $ 3,451,306   $ 3,248,375  
Noninterest-bearing deposits     503,209     514,107     548,692     534,194     583,353  
Securities sold under agreements to repurchase     15,000     9,398     9,398     9,398     9,398  
FHLB advances     107,069     102,050     102,043     113,036     114,026  
Other liabilities     38,191     37,905     46,712     42,256     37,834  
Subordinated debt     23,169     23,156     23,143     23,130     23,118  
Total liabilities     4,223,571     4,115,568     4,167,408     4,173,320     4,016,104  
                                 
Total stockholders’ equity     505,629     488,748     479,584     470,182     453,929  
                                 
Total liabilities and stockholders’ equity   $ 4,729,200   $ 4,604,316   $ 4,646,992   $ 4,643,502   $ 4,470,033  
                                 
Equity to assets ratio     10.69 %     10.61 %     10.32 %     10.13 %     10.15 %
                                 
Common shares outstanding     11,277,167     11,277,737     11,366,094     11,336,462     11,336,462  
Less: Restricted common shares not vested     56,553     57,956     57,956     49,676     50,510  
Common shares for book value determination     11,220,614     11,219,781     11,308,138     11,286,786     11,285,952  
                                 
Book value per common share   $ 45.06   $ 43.56   $ 42.41   $ 41.66   $ 40.22  
Less: Intangible assets per common share     6.80     6.88     6.90     7.01     7.10  
Tangible book value per common share (1)     38.26     36.68     35.51     34.65     33.12  
Closing market price     56.49     45.01     43.71     53.39     38.69  

(1)   Non-GAAP financial measure.

                                 
Nonperforming asset data as of:      Sep. 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,  
(dollars in thousands)   2024   2024   2024   2023   2023  
                                 
Nonaccrual loans   $ 8,206   $ 6,680   $ 7,329   $ 5,922   $ 5,738  
Accruing loans 90 days or more past due             81          
Total nonperforming loans     8,206     6,680     7,410     5,922     5,738  
Other real estate owned (OREO)     3,842     3,865     3,791     3,814     4,981  
Personal property repossessed     21     23     60     40     83  
Total nonperforming assets   $ 12,069   $ 10,568   $ 11,261   $ 9,776   $ 10,802  
                                 
Total nonperforming assets to total assets     0.26 %     0.23 %     0.24 %     0.21 %     0.24 %  
Total nonperforming loans to gross loans     0.21 %     0.17 %     0.20 %     0.16 %     0.16 %  
Allowance for credit losses to nonperforming loans     663.38 %     786.17 %     692.79 %     845.73 %     856.08 %  
Allowance for credit losses to gross loans     1.37 %     1.36 %     1.36 %     1.34 %     1.33 %  
                                 
Performing modifications to borrowers experiencing financial difficulty   $ 24,340   $ 24,602   $ 24,848   $ 24,237   $ 29,300  
                               
    For the three-month period ended
Quarterly Summary Income Statement Data:   Sep. 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,
(dollars in thousands, except per share data)      2024   2024   2024   2023   2023
                               
Interest income:                                   
Cash equivalents   $ 78   $ 541   $ 2,587   $ 1,178   $ 49
AFS securities and membership stock     5,547     5,677     5,486     5,261     5,084
Loans receivable     61,753     58,449     55,952     55,137     52,974
Total interest income     67,378     64,667     64,025     61,576     58,107
Interest expense:                              
Deposits     28,796     27,999     27,893     25,445     20,368
Securities sold under agreements to repurchase     160     125     128     126     72
FHLB advances     1,326     1,015     1,060     1,079     1,838
Subordinated debt     435     433     435     440     435
Total interest expense     30,717     29,572     29,516     27,090     22,713
Net interest income     36,661     35,095     34,509     34,486     35,394
Provision for credit losses     2,159     900     900     900     900
Noninterest income:                              
Deposit account charges and related fees     2,184     1,978     1,847     1,784     1,791
Bank card interchange income     1,499     1,770     1,301     1,329     1,345
Loan late charges         170     150     146     113
Loan servicing fees     286     494     267     285     231
Other loan fees     1,063     617     757     644     357
Net realized gains on sale of loans     361     97     99     304     213
Net realized losses on sale of AFS securities             (807     (682    
Earnings on bank owned life insurance     517     498     483     472     458
Insurance brokerage commissions     287     331     312     310     263
Wealth management fees     730     838     866     668     795
Other noninterest income     247     974     309     380     287
Total noninterest income     7,174     7,767     5,584     5,640     5,853
Noninterest expense:                              
Compensation and benefits     14,397     13,894     13,750     12,961     12,649
Occupancy and equipment, net     3,689     3,790     3,623     3,478     3,515
Data processing expense     2,171     1,929     2,349     2,382     2,308
Telecommunications expense     428     468     464     465     531
Deposit insurance premiums     472     638     677     598     550
Legal and professional fees     1,208     516     412     387     416
Advertising     546     640     622     392     465
Postage and office supplies     306     308     344     283     302
Intangible amortization     897     1,018     1,018     1,018     1,018
Foreclosed property expenses (gains)     12     52     60     44     (8
Other noninterest expense     1,715     1,749     1,730     1,852     1,963
Total noninterest expense     25,841     25,002     25,049     23,860     23,709
Net income before income taxes     15,835     16,960     14,144     15,366     16,638
Income taxes     3,377     3,430     2,837     3,173     3,487
Net income     12,458     13,530     11,307     12,193     13,151
Less: Distributed and undistributed earnings allocated                              
to participating securities     62     69     58     53     57
Net income available to common shareholders   $ 12,396   $ 13,461   $ 11,249   $ 12,140   $ 13,094
                               
Basic earnings per common share   $ 1.10   $ 1.19   $ 1.00   $ 1.08   $ 1.16
Diluted earnings per common share     1.10     1.19     0.99     1.07     1.16
Dividends per common share     0.23     0.21     0.21     0.21     0.21
Average common shares outstanding:                              
Basic     11,221,000     11,276,000     11,302,000     11,287,000     11,286,000
Diluted     11,240,000     11,283,000     11,313,000     11,301,000     11,298,000
                                 
    For the three-month period ended  
Quarterly Average Balance Sheet Data:   Sep. 30,      June 30,      Mar. 31,      Dec. 31,      Sep. 30,  
(dollars in thousands)      2024   2024   2024   2023   2023  
                                 
Interest-bearing cash equivalents   $ 5,547   $ 39,432   $ 182,427   $ 89,123   $ 5,479  
AFS securities and membership stock     460,187     476,198     472,904     468,498     462,744  
Loans receivable, gross     3,889,740     3,809,209     3,726,631     3,691,586     3,645,148  
Total interest-earning assets     4,355,474     4,324,839     4,381,962     4,249,207     4,113,371  
Other assets     283,056     285,956     291,591     301,415     284,847  
Total assets   $ 4,638,530   $ 4,610,795   $ 4,673,553   $ 4,550,622   $ 4,398,218  
                                 
Interest-bearing deposits   $ 3,416,752   $ 3,417,360   $ 3,488,104   $ 3,341,221   $ 3,122,803  
Securities sold under agreements to repurchase     12,321     9,398     9,398     9,398     9,398  
FHLB advances     123,723     102,757     111,830     113,519     167,836  
Subordinated debt     23,162     23,149     23,137     23,124     23,111  
Total interest-bearing liabilities     3,575,958     3,552,664     3,632,469     3,487,262     3,323,148  
Noninterest-bearing deposits     531,946     539,637     532,075     572,101     600,202  
Other noninterest-bearing liabilities     33,737     35,198     33,902     31,807     24,555  
Total liabilities     4,141,641     4,127,499     4,198,446     4,091,170     3,947,905  
                                 
Total stockholders’ equity     496,889     483,296     475,107     459,452     450,313  
                                 
Total liabilities and stockholders’ equity   $ 4,638,530   $ 4,610,795   $ 4,673,553   $ 4,550,622   $ 4,398,218  
                                 
Return on average assets     1.07 %     1.17 %     0.97 %     1.07 %     1.20 %
Return on average common stockholders’ equity     10.0 %     11.2 %     9.5 %     10.6 %     11.7 %
                                 
Net interest margin     3.37 %     3.25 %     3.15 %     3.25 %     3.44 %
Net interest spread     2.75 %     2.65 %     2.59 %     2.69 %     2.92 %
                                 
Efficiency ratio     59.0 %     58.3 %     61.2 %     58.5 %     57.5 %


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