Southern Missouri Bancorp (SMBC) reported a solid fourth quarter of fiscal 2024, delivering a quarterly net income of $13.53 million or $1.19 per diluted share, up 1.7% on a QoQ basis in net interest income and aided by a 39.1% increase in non-interest income versus the linked quarter. The company achieved a 3.25% net interest margin (NIM) in the quarter, modestly expanding from 3.15% in the prior quarter, driven by loan-yield expansion and a favorable mix despite higher deposit costs. Tangible book value per share (TBV) rose 13.4% in fiscal 2024 to $36.68, aided by capital deployment activity and continued earnings growth, with a 9.5% dividend increase to $0.23 per share for the quarter, signaling the bank’s willingness to return capital to shareholders while preserving capital strength.
However, profitability faced some pressure on a year-over-year basis as margin compression persisted in a higher-rate environment, with reported net income down about 13% year over year. Revenue was $72.435 million for the quarter, up 4.06% QoQ, while total loan balances grew 6.4% year over year and 8.3% annualized versus the March quarter. The balance sheet remains well positioned with an ACL of 1.36% of gross loans and 786% of non-performing loans, indicating conservative reserving still aligned with acceptable credit quality. The company also highlighted meaningful loan origination activity (roughly $205 million in the June quarter) and a production mix favoring construction, one-to-four family, CRE, and C&I, alongside a 157 million loan pipeline for the next 90 days.
Management framed the outlook around continued mid-single-digit loan growth into fiscal 2025 and potential NIM expansion if the Federal Reserve signals rate relief. They also signaled an opportunistic stance toward M&A and a continued emphasis on core deposit retention, with a view to expanding market share in Kansas City and St. Louis and exploring density in Northwest Arkansas and Little Rock. Given SMBC’s balance-sheet strength, disciplined underwriting, and modest non-owner CRE concentration, the near-term investment thesis remains constructive but balanced by deposit-cost pressures and the cyclicality of regional agriculture and CRE markets.