Southern Missouri Bancorp Inc. reported a solid QQ3 2024 performance with a net income of $11.31 million on revenue of $69.61 million, reflecting a resilient operating platform in a higher-for-longer rate environment. Net interest margin (NIM) stood at 3.15%, representing a stabilization after a period of pressure from rising funding costs; management characterized the margin as having trough-ended, with core margin down only modestly on a QoQ basis after accounting for fair value accretion and premium amortization. Net interest income rose 0.1% QoQ and 2.2% YoY, supported by a higher average earning balance sheet despite ongoing funding-cost pressure. Tangible book value per share reached $35.51, up 12.9% over the last 12 months, underscoring a capital-efficient growth trajectory.
Credit quality remained benign, with nonperforming loans at 0.20% of gross loans and adversely classified loans at 1.12% of total loans. The allowance for credit losses stood at $51.3 million (1.36% of gross loans), providing a solid buffer against potential cyclical stress. The quarter featured a one-time securities loss trade (loss of about $0.8 million) that reduced after-tax net income by roughly $0.63 million and diluted EPS by $0.06, a short-term drag that investors should view in the context of a reallocation into higher-yielding securities intended to recapture value within two years.
Loan growth was broad-based, with gross loans up $39 million from the prior quarter and up 8.4% year over year. The pipeline for new lending stood at approximately $117 million for the next 90 days, with originations of about $241 million in the March quarter, reflecting momentum in non-owner-occupied CRE, land and ag real estate, and residential/multifamily segments. Management expects loan growth to pick up modestly in the June quarter (potentially at a 5%–8% annualized pace, contingent on rate and prepayment dynamics) and remains focused on core deposits, with ongoing opportunistic buybacks as a capital allocation tool. The commentary also highlighted expansion plans in Kansas City and St. Louis markets and ongoing evaluation of potential strategic partnerships to achieve scale.
Overall, SMBC presents a conservative yet constructive investment profile: a cash-generative business with improving tangible book value, manageable credit risk, and a growth runway anchored in traditional middle-market and agricultural lending, plus expansion into higher-growth markets. The primary near-term risks relate to funding costs and net interest income sensitivity to rate paths, as well as macro volatility impacting loan demand and farm-sector dynamics.