Southern Missouri Bancorp
Annual Report 2015

Plain-text annual report

SOUTHERN MISSOURI BANCORP, INC. SOUTHERN MISSOURI BANCORP, INC. SOUTHERN MISSOURI BANCORP, INC. SOUTHERN MISSOURI BANCORP, INC. is delivering shareholder value is delivering shareholder value is delivering shareholder value is delivering shareholder value by serving our communities by serving our communities by serving our communities with a growing team of professionals with a growing team of professionals with a growing team of professionals by serving our communities with a growing team of professionals meeting our customers' needs. meeting our customers' needs. meeting our customers' needs. meeting our customers' needs. poplar bluff, missouri poplar bluff, missouri poplar bluff, missouri 2781 north westwood boulevard 2781 north westwood boulevard 2781 north westwood boulevard poplar bluff, missouri 2781 north westwood boulevard holiday inn ballroom holiday inn ballroom holiday inn ballroom monday, october 26, 2015 at 9:00 am monday, october 26, 2015 at 9:00 am monday, october 26, 2015 at 9:00 am holiday inn ballroom monday, october 26, 2015 at 9:00 am annual meeting annual meeting annual meeting annual meeting management review this year's performance in detail. management review this year's performance in detail. management review this year's performance in detail. at our 2015 Annual Meeting, where shareholders will hear at our 2015 Annual Meeting, where shareholders will hear at our 2015 Annual Meeting, where shareholders will hear management review this year's performance in detail. at our 2015 Annual Meeting, where shareholders will hear please join us please join us please join us please join us Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report > F I N A N C I A L S U M M A R Y < > F I N A N C I A L S U M M A R Y < > F I N A N C I A L S U M M A R Y < 2015 2015 2015 2014 2014 2014 C HA NG E(%) C HA NG E(%) C HA NG E(%) E A R N I N G S (dollars in thousands) E A R N I N G S (dollars in thousands) E A R N I N G S (dollars in thousands) Net interest income Net interest income Net interest income Provision for loan losses Provision for loan losses Provision for loan losses Noninterest income Noninterest income Noninterest income Noninterest expense Noninterest expense Noninterest expense Income taxes Income taxes Income taxes Net income Net income Net income Effective dividend on preferred shares Effective dividend on preferred shares Effective dividend on preferred shares Net income available to common stockholders Net income available to common stockholders Net income available to common stockholders P E R C O M M O N S H A R E P E R C O M M O N S H A R E P E R C O M M O N S H A R E Net income: Net income: Net income: Basic Basic Basic Diluted Diluted Diluted Tangible book value Tangible book value Tangible book value Closing market price Closing market price Closing market price Cash dividends declared Cash dividends declared Cash dividends declared $ $ 46,535 $ 46,535 46,535 3,185 3,185 3,185 8,659 8,659 8,659 32,285 32,285 32,285 6,056 6,056 6,056 13,668 13,668 13,668 200 200 200 13,468 13,468 13,468 $ $ 32,986 $ 32,986 32,986 1,646 1,646 1,646 6,132 6,132 6,132 23,646 23,646 23,646 3,745 3,745 3,745 10,081 10,081 10,081 200 200 200 9,881 9,881 9,881 $ $ $ 1.84 1.84 1.84 1.79 1.79 1.79 14.11 14.11 14.11 18.85 18.85 18.85 .34 .34 .34 $ $ $ 1.49 1.49 1.49 1.45 1.45 1.45 13.19 13.19 13.19 17.85 17.85 17.85 .32 .32 .32 41.1% 41.1% 41.1% 93.5 93.5 93.5 41.2 41.2 41.2 36.5 36.5 36.5 61.7 61.7 61.7 35.6 35.6 35.6 0.0 0.0 0.0 36.3 36.3 36.3 23.5 23.5 23.5 23.4 23.4 23.4 7.0 7.0 7.0 5.6 5.6 5.6 6.3 6.3 6.3 A T Y E A R - E N D (dollars in thousands) A T Y E A R - E N D (dollars in thousands) Total assets Total assets Loans, net of allowance Loans, net of allowance Reserves as a percent of nonperforming loans Reserves as a percent of nonperforming loans Deposits Deposits Stockholders’ equity Stockholders’ equity A T Y E A R - E N D (dollars in thousands) Total assets Loans, net of allowance Reserves as a percent of nonperforming loans Deposits Stockholders’ equity F I N A N C I A L R A T I O S F I N A N C I A L R A T I O S F I N A N C I A L R A T I O S Return on average common stockholders’ equity Return on average common stockholders’ equity Return on average common stockholders’ equity Return on average assets Return on average assets Return on average assets Net interest margin Net interest margin Net interest margin Efficiency ratio Efficiency ratio Efficiency ratio Allowance for loan losses to loans Allowance for loan losses to loans Allowance for loan losses to loans Equity to average assets at year-end Equity to average assets at year-end Equity to average assets at year-end O T H E R D A T A (1) O T H E R D A T A (1) O T H E R D A T A (1) Common shares outstanding Common shares outstanding Common shares outstanding Common shares outstanding for book value calculation (2) Common shares outstanding for book value calculation (2) Common shares outstanding for book value calculation (2) Average common and dilutive Average common and dilutive Average common and dilutive shares outstanding shares outstanding shares outstanding Common stockholders of record Common stockholders of record Common stockholders of record Full-time equivalent employees Full-time equivalent employees Full-time equivalent employees Assets per employee (in thousands) Assets per employee (in thousands) Assets per employee (in thousands) Banking offices Banking offices Banking offices (1) Other data is as of year-end, except for average shares. (1) Other data is as of year-end, except for average shares. (1) Other data is as of year-end, except for average shares. (2) Excludes unvested restricted stock award shares. (2) Excludes unvested restricted stock award shares. (2) Excludes unvested restricted stock award shares. 27.3 31.5 27.3 31.5 27.3 31.5 34.3 19.4 34.3 19.4 34.3 19.4 $ 1,300,064 1,053,146 $ 1,300,064 $ 1,300,064 1,053,146 1,053,146 323 % 323 % $ 1,055,242 $ 1,055,242 132,643 132,643 $ 1,055,242 132,643 323 % $ 1,021,422 801,056 $ 1,021,422 $ 1,021,422 801,056 801,056 663 % 663 % $ 785,801 $ 785,801 111,111 111,111 $ 785,801 111,111 663 % 12.48 % 12.48 % 12.48 % 1.07 1.07 1.07 3.92 3.92 3.92 58.50 58.50 58.50 1.15 1.15 1.15 10.41 10.41 10.41 11.55 % 11.55 % 11.55 % 1.09 1.09 1.09 3.81 3.81 3.81 60.63 60.63 60.63 1.14 1.14 1.14 12.03 12.03 12.03 7,419,666 7,364,066 7,419,666 7,364,066 7,419,666 7,364,066 7,504,642 7,504,642 7,504,642 255 255 255 318 318 318 $ 4,088 $ 4,088 $ 4,088 35 35 35 6,680,880 6,608,880 6,680,880 6,608,880 6,680,880 6,608,880 6,798,158 6,798,158 6,798,158 261 261 261 227 227 227 4,500 4,500 $ 4,500 25 25 25 $ $ > D I R E C T O R S < > D I R E C T O R S < > D I R E C T O R S < L. Douglas Bagby L. Douglas Bagby L. Douglas Bagby Chairman of the Board; Chairman of the Board; Chairman of the Board; Greg A. Steffens Greg A. Steffens Greg A. Steffens Dennis C. Robison Dennis C. Robison Dennis C. Robison President and Chief Executive Officer, President and Chief Executive Officer, President and Chief Executive Officer, President, Robison Farms, Inc. President, Robison Farms, Inc. President, Robison Farms, Inc. Retired City Manager, City of Poplar Bluff Retired City Manager, City of Poplar Bluff Retired City Manager, City of Poplar Bluff Southern Missouri Bancorp, Inc. Southern Missouri Bancorp, Inc. Southern Missouri Bancorp, Inc. Sammy A. Schalk Sammy A. Schalk Sammy A. Schalk Vice-Chairman of the Board; Vice-Chairman of the Board; Vice-Chairman of the Board; President, Gamblin Lumber Company President, Gamblin Lumber Company President, Gamblin Lumber Company Ronnie D. Black Ronnie D. Black Ronnie D. Black Retired Executive Director, Retired Executive Director, Retired Executive Director, General Association of General Baptists General Association of General Baptists General Association of General Baptists Rebecca M. Brooks Rebecca M. Brooks Rebecca M. Brooks Financial Manager, McLane Transport Financial Manager, McLane Transport Financial Manager, McLane Transport Charles R. Love Charles R. Love Charles R. Love Certified Public Accountant, Certified Public Accountant, Certified Public Accountant, Kraft, Miles and Tatum Kraft, Miles and Tatum Kraft, Miles and Tatum Charles R. Moffitt Charles R. Moffitt Charles R. Moffitt Agency Manager, Agency Manager, Agency Manager, Morse Harwell Jiles Insurance Agency Morse Harwell Jiles Insurance Agency Morse Harwell Jiles Insurance Agency David J. Tooley David J. Tooley David J. Tooley Retired President and CEO, Retired President and CEO, Retired President and CEO, Metropolitan National Bank Metropolitan National Bank Metropolitan National Bank Todd E. Hensley Todd E. Hensley Todd E. Hensley Investor/Former Chairman, Investor/Former Chairman, Investor/Former Chairman, Peoples Bank of the Ozarks Peoples Bank of the Ozarks Peoples Bank of the Ozarks > E X E C U T I V E O F F I C E R S < > E X E C U T I V E O F F I C E R S < > E X E C U T I V E O F F I C E R S < Greg A. Steffens Greg A. Steffens Greg A. Steffens William D. Hribovsek William D. Hribovsek William D. Hribovsek President and Chief Executive Officer President and Chief Executive Officer President and Chief Executive Officer Executive Vice President and Executive Vice President and Executive Vice President and Lora L. Daves Lora L. Daves Lora L. Daves Executive Vice President and Executive Vice President and Executive Vice President and Chief Credit Officer Chief Credit Officer Chief Credit Officer Kimberly A. Capps Kimberly A. Capps Kimberly A. Capps Executive Vice President and Executive Vice President and Executive Vice President and Chief Operations Officer Chief Operations Officer Chief Operations Officer Chief Lending Officer Chief Lending Officer Chief Lending Officer Matthew T. Funke Matthew T. Funke Matthew T. Funke Executive Vice President and Executive Vice President and Executive Vice President and Chief Financial Officer Chief Financial Officer Chief Financial Officer $2.56 $2.56 $2.56 $1.79 $1.79 $1.79 $1.66 $1.66 $1.66 $1.60 (3) $1.60 (3) $1.60 (3) $1.44 $1.45 $1.44 $1.45 $1.44 $1.45 $0.32 $0.32 $0.32 $0.34 $0.34 $0.34 $0.30 $0.30 $0.30 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $15.30 $15.30 $15.30 $13.79 $13.79 $13.79 $12.55 $12.55 $12.55 $11.51 $11.51 $11.51 $11.04 $11.04 $11.04 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.) expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.) expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.)  In fiscal 2015, Southern Missouri Bancorp completed a major acquisition in a key growth market; grew assets by 27.3% primarily as a result of that acquisition; improved diluted earnings per share by 23.4%; consolidated operations resulting in improved efficiency; and maintained solid core profitability and sound asset quality. For fiscal 2015, net income available to common shareholders was $13.5 million, an increase of 36.3% from the $9.9 million earned in fiscal 2014. Included in this year’s results were (pre-tax) expenses totaling $508,000 related to merger and acquisition activity. Return on common equity compares well to peer banks The Company’s returns improved in fiscal 2015, as acquisitions and organic loan growth further leveraged the capital base. The Company generated a return on average common equity of 12.5%, and a return on average assets of 1.07% for fiscal 2015, as compared to 11.5% and 1.09%, respectively, in fiscal 2014. A continued reduction in accretion of fair value discount on loans resulting from the fiscal 2011 acquisition of the former First Southern Bank, Batesville, Arkansas, was more than offset by a comparable benefit associated with the fiscal 2015 acquisition of Peoples Bank of the Ozarks (“Peoples”). In fiscal 2015, we estimate that this non-core item resulting from these two significant acquired portfolios improved results by $1.5 million, after tax, compared to $395,000 in fiscal 2014. Our net interest income improved 41.1%, primarily as a result of an increase of 36.9% in the average balance of interest-earning assets. Our net interest margin improved, from 3.81% in fiscal 2014, to 3.92% in fiscal 2015, attributable primarily to the fair value discount accretion noted above, offsetting slight core margin compression resulting from the continued low rate environment. Average loan balances increased 38.0%, while average securities balances were up 22.0%, improving the earning asset mix. (1) Peer data is based on the median year-end figures (December) from SNL DataSource’s Index of publicly traded commercial banks and thrifts with assets of $500 million to $2 billion, headquartered in Missouri, Arkansas, Illinois, Iowa, Kansas, Kentucky, Nebraska, Oklahoma, and Tennessee. SMBC data is as of fiscal year-end (June). Noninterest income (exclusive of securities gains) improved 43.8% in fiscal 2015, as a full year’s benefit was realized from our fiscal 2014 acquisitions, and the Peoples acquisition closed early in the fiscal year. Bank card interchange income, deposit account service charges, loan late charges and other loan fees, and secondary market loan sales continued to improve. Efficiency remains ahead of peers The Company improved efficiency in the past year, with most of the benefit due to lower M&A costs; continued improvement is a key goal for our organization. Noninterest expense increased 36.5% for fiscal 2015. Increases in compensation and benefits, occupancy, amortization of core deposit intangibles, advertising, and other expenses resulted primarily from the increased size of our Company following recent acquisitions. Expenses of $508,000 were attributable to merger and acquisition activity in fiscal 2015, with comparable charges of $1.2 million in the prior fiscal year. The prior fiscal year also included a charge of $376,000 for early termination of a debit card processing contract. The Company had a solid year for loan growth, with an increase of $252.1 million, which was aided by the addition of $190.4 million in loans (at fair value) from the Peoples acquisition, which closed in August of 2014. As the year progressed, we saw gross loan balances at those facilities decline by approximately $28 million, somewhat offsetting organic growth in legacy branches. Loan growth consisted primarily of increases in our commercial real estate loan, residential real estate loan, and commercial loan portfolios. Deposits were up $269.4 million in total, with $222.2 million of the increase resulting from the Peoples acquisition: those balances remained relatively stable following the merger. Deposit growth resulted primarily from certificates of deposit, interest-bearing transaction accounts, noninterest-bearing transaction accounts, and money market deposit accounts. Continued growth in loans, deposits, and total assets Acquisition activity drove balance sheet growth in fiscal 2015, along with solid contributions from our legacy markets. Problem asset levels increase with acquisition Problem assets increased somewhat as the Company completed a significant acquisition which included a manageable level of nonperforming assets, but our levels remained below the peer group. Nonperforming assets increased to $8.3 million, or 0.64% of total assets, at June 30, 2015, as compared to $4.4 million, or 0.43% of assets, at June 30, 2014, with the increase attributable primarily to the Peoples acquisition, and also the migration of a previously-classified purchased credit impaired relationship. While peer banks have improved asset quality markedly over the last four years, our Company has grown significantly and remained acquisitive while holding problem assets at levels that compare favorably. At June 30, 2015, non-performing loans were 0.36% of gross loans, as compared to 0.17% of gross loans at June 30, 2014. Net charge-offs were 0.01% of average loans outstanding for fiscal 2015, as compared to 0.10% for fiscal 2014. The Company completed a two-for-one common stock split in the form of a 100% common stock dividend during fiscal 2015. When adjusted for the stock split, book value per common share increased 10.9% from a year earlier, to $15.30 at June 30, 2015. Tangible book value per share, a non-GAAP measure, improved a smaller 7.0% to $14.11 at June 30, 2015, as we experienced some dilution resulting from the Peoples acquisition, as well as our $2.7 million repurchase of the warrant issued to Treasury in December of 2008. The warrant was issued in connection with our participation in the Troubled Asset Relief Program — prior to its repurchase, it would have allowed for the purchase of almost 232,000 shares of our common stock at a price of $6.18 per share. Our closing stock price for the fiscal year was $18.85, up 5.6%, as compared to the previous year end when adjusted for the stock split. Over that same one-year period, the SNL U.S. Bank Index increased 10.7%. In the five years ended June 30, 2015, our stock price has increased 151.2%, as compared to a 74.4% price increase in the SNL U.S. Bank Index. Including dividends, SMBC has returned 180.7% over that five-year period, while the SNL U.S. Bank Index has returned 90.1%. Our dividends paid during fiscal 2015 represented a 1.8% return both on our closing stock price on the final day of the fiscal year, as well as on our average closing stock price for fiscal 2015. In July 2015, the board was pleased to increase our dividend by 5.9%, to $0.09 per quarter, effective with the August 2015 payment. Tangible common equity as a percentage of tangible assets stood at 8.0% at the end of fiscal 2015, as compared to 8.6% at the end of fiscal 2014, primarily as a result of the Peoples acquisition. In the coming year, management plans to repurchase $20 million in preferred shares issued to the Treasury under the Small Business Lending Fund program in 2011, subject to regulatory approval, as the dividend is scheduled to increase substantially. The Company intends to repurchase the preferred stock without diluting common shareholders. Our goals for 2016 include: Capital management. As noted above, the Company looks forward to the repurchase of our outstanding preferred stock and stabilization at a targeted common tangible equity ratio. Looking forward, we expect our traditional rate of organic growth to be somewhat more difficult to maintain, and we would expect capital ratios to begin to increase somewhat, absent periodic acquisition activity, stock repurchases, or changes in our dividend payout strategy. Our long-term goal would be to maintain a common tangible equity ratio of between 8.0 and 9.0 percent. Identification of new acquisition opportunities. Between October 2013 and August 2014, the Company completed three mergers, adding 17 facilities and approximately $350 million in deposits. As a result, we have been somewhat more conservative in choosing how and where to spend time exploring new opportunities over the past year. The oppor- tunities presented over that time period were not ideal, and we focused our resources on integration of the acquired franchises. With that mostly achieved, we expect an increased willingness on our part to evaluate new prospects for growth in the coming years. Improved efficiency and core profitability. Our primary challenge in fiscal 2016 will be to improve the ability of our recently acquired operations to more closely approach the results of our more established footprint. We hope to accomplish this with loan and deposit growth that would justify the current expense structure, but in some instances, tougher choices could be required. As we have noted in this letter in the past, we’ll continue to focus on long-term improvement in core earnings per share and growth in tangible book value. We’re pleased with our achievements in these metrics over the last several years, but recognize that continued improvement on our solid record will require determination at every level of management, contributions from every department, and participation by every region within our organization. I would like to take this occasion to specifically recognize and appreciate the contributions to our Company of our recently-retired Chairman, Samuel H. Smith. We benefited from Sam’s leadership qualities, commitment, professional expertise, and strong character for more than a quarter century. We extend our warmest wishes to Sam and his devoted wife, Whitty, for every happiness in retirement. For another year of progress, many thanks are owed to our shareholders, to my valued colleagues within this organization, and to the customers who allow us the privilege of serving them. I appreciate the opportunity to serve each of these groups, and am looking forward with optimism to the continued success of our Company. > D I R E C T O R S < > D I R E C T O R S < > D I R E C T O R S < L. Douglas Bagby L. Douglas Bagby L. Douglas Bagby Chairman of the Board; Chairman of the Board; Chairman of the Board; Retired City Manager, City of Poplar Bluff Retired City Manager, City of Poplar Bluff Retired City Manager, City of Poplar Bluff Greg A. Steffens Greg A. Steffens Greg A. Steffens President and Chief Executive Officer, President and Chief Executive Officer, President and Chief Executive Officer, Southern Missouri Bancorp, Inc. Southern Missouri Bancorp, Inc. Southern Missouri Bancorp, Inc. Dennis C. Robison Dennis C. Robison President, Robison Farms, Inc. President, Robison Farms, Inc. Dennis C. Robison President, Robison Farms, Inc. Sammy A. Schalk Sammy A. Schalk Vice-Chairman of the Board; Vice-Chairman of the Board; President, Gamblin Lumber Company President, Gamblin Lumber Company Sammy A. Schalk Vice-Chairman of the Board; President, Gamblin Lumber Company Ronnie D. Black Ronnie D. Black Retired Executive Director, Retired Executive Director, General Association of General Baptists General Association of General Baptists Ronnie D. Black Retired Executive Director, General Association of General Baptists Rebecca M. Brooks Financial Manager, McLane Transport Rebecca M. Brooks Financial Manager, McLane Transport Rebecca M. Brooks Financial Manager, McLane Transport Charles R. Love Charles R. Love Charles R. Love Certified Public Accountant, Certified Public Accountant, Certified Public Accountant, Kraft, Miles and Tatum Kraft, Miles and Tatum Kraft, Miles and Tatum Charles R. Moffitt Agency Manager, Morse Harwell Jiles Insurance Agency Charles R. Moffitt Agency Manager, Morse Harwell Jiles Insurance Agency Charles R. Moffitt Agency Manager, Morse Harwell Jiles Insurance Agency David J. Tooley David J. Tooley Retired President and CEO, Retired President and CEO, Metropolitan National Bank Metropolitan National Bank David J. Tooley Retired President and CEO, Metropolitan National Bank Todd E. Hensley Todd E. Hensley Investor/Former Chairman, Investor/Former Chairman, Peoples Bank of the Ozarks Peoples Bank of the Ozarks Todd E. Hensley Investor/Former Chairman, Peoples Bank of the Ozarks > E X E C U T I V E O F F I C E R S < > E X E C U T I V E O F F I C E R S < > E X E C U T I V E O F F I C E R S < Greg A. Steffens President and Chief Executive Officer Greg A. Steffens President and Chief Executive Officer Greg A. Steffens President and Chief Executive Officer Kimberly A. Capps Kimberly A. Capps Kimberly A. Capps Executive Vice President and Executive Vice President and Executive Vice President and Chief Operations Officer Chief Operations Officer Chief Operations Officer William D. Hribovsek William D. Hribovsek William D. Hribovsek Executive Vice President and Executive Vice President and Executive Vice President and Chief Lending Officer Chief Lending Officer Chief Lending Officer Matthew T. Funke Matthew T. Funke Matthew T. Funke Executive Vice President and Executive Vice President and Executive Vice President and Chief Financial Officer Chief Financial Officer Chief Financial Officer Lora L. Daves Lora L. Daves Executive Vice President and Executive Vice President and Chief Credit Officer Chief Credit Officer Lora L. Daves Executive Vice President and Chief Credit Officer > F I N A N C I A L S U M M A R Y < > F I N A N C I A L S U M M A R Y < > F I N A N C I A L S U M M A R Y < 2015 2015 2015 2014 2014 2014 C HA NG E(%) C HA NG E(%) C HA NG E(%) $ $ 46,535 46,535 46,535 $ $ $ 32,986 32,986 32,986 $ 41.1% 41.1% 41.1% 93.5 93.5 93.5 41.2 41.2 41.2 36.5 36.5 36.5 61.7 61.7 61.7 35.6 35.6 35.6 0.0 0.0 0.0 36.3 36.3 36.3 23.5 23.5 23.5 23.4 23.4 23.4 7.0 7.0 7.0 5.6 5.6 5.6 6.3 6.3 6.3 27.3 27.3 27.3 31.5 31.5 31.5 34.3 34.3 34.3 19.4 19.4 19.4 Effective dividend on preferred shares Effective dividend on preferred shares Effective dividend on preferred shares Net income available to common stockholders Net income available to common stockholders Net income available to common stockholders E A R N I N G S (dollars in thousands) E A R N I N G S (dollars in thousands) E A R N I N G S (dollars in thousands) Net interest income Net interest income Net interest income Provision for loan losses Provision for loan losses Provision for loan losses Noninterest income Noninterest income Noninterest income Noninterest expense Noninterest expense Noninterest expense Income taxes Income taxes Income taxes Net income Net income Net income P E R C O M M O N S H A R E P E R C O M M O N S H A R E P E R C O M M O N S H A R E Net income: Net income: Net income: Basic Basic Basic Diluted Diluted Diluted Tangible book value Tangible book value Tangible book value Closing market price Closing market price Closing market price Cash dividends declared Cash dividends declared Cash dividends declared A T Y E A R - E N D (dollars in thousands) A T Y E A R - E N D (dollars in thousands) A T Y E A R - E N D (dollars in thousands) Total assets Total assets Total assets Loans, net of allowance Loans, net of allowance Loans, net of allowance Reserves as a percent of nonperforming loans Reserves as a percent of nonperforming loans Reserves as a percent of nonperforming loans Deposits Deposits Deposits Stockholders’ equity Stockholders’ equity Stockholders’ equity F I N A N C I A L R A T I O S F I N A N C I A L R A T I O S F I N A N C I A L R A T I O S Return on average assets Return on average assets Return on average assets Net interest margin Net interest margin Net interest margin Efficiency ratio Efficiency ratio Efficiency ratio Allowance for loan losses to loans Allowance for loan losses to loans Allowance for loan losses to loans Equity to average assets at year-end Equity to average assets at year-end Equity to average assets at year-end O T H E R D A T A (1) O T H E R D A T A (1) O T H E R D A T A (1) Common shares outstanding Common shares outstanding Common shares outstanding Common shares outstanding for book value calculation (2) Common shares outstanding for book value calculation (2) Common shares outstanding for book value calculation (2) Average common and dilutive Average common and dilutive Average common and dilutive shares outstanding shares outstanding shares outstanding Common stockholders of record Common stockholders of record Common stockholders of record Full-time equivalent employees Full-time equivalent employees Full-time equivalent employees Assets per employee (in thousands) Assets per employee (in thousands) Assets per employee (in thousands) Banking offices Banking offices Banking offices (1) Other data is as of year-end, except for average shares. (1) Other data is as of year-end, except for average shares. (1) Other data is as of year-end, except for average shares. (2) Excludes unvested restricted stock award shares. (2) Excludes unvested restricted stock award shares. (2) Excludes unvested restricted stock award shares. 3,185 3,185 3,185 8,659 8,659 8,659 32,285 32,285 32,285 6,056 6,056 6,056 13,668 13,668 13,668 200 200 200 13,468 13,468 13,468 1,646 1,646 1,646 6,132 6,132 6,132 23,646 23,646 23,646 3,745 3,745 3,745 10,081 10,081 10,081 200 200 200 9,881 9,881 9,881 $ $ $ 1.84 1.84 1.84 $ $ $ 1.49 1.49 1.49 1.79 1.79 1.79 14.11 14.11 14.11 18.85 18.85 18.85 .34 .34 .34 1.45 1.45 1.45 13.19 13.19 13.19 17.85 17.85 17.85 .32 .32 .32 $ 1,300,064 $ 1,300,064 $ 1,300,064 1,053,146 1,053,146 1,053,146 $ 1,021,422 $ 1,021,422 $ 1,021,422 801,056 801,056 801,056 323 % 323 % 323 % 663 % 663 % 663 % $ 1,055,242 $ 1,055,242 $ 1,055,242 132,643 132,643 132,643 $ 785,801 $ 785,801 $ 785,801 111,111 111,111 111,111 1.07 1.07 1.07 3.92 3.92 3.92 58.50 58.50 58.50 1.15 1.15 1.15 10.41 10.41 10.41 1.09 1.09 1.09 3.81 3.81 3.81 60.63 60.63 60.63 1.14 1.14 1.14 12.03 12.03 12.03 7,419,666 7,419,666 7,419,666 7,364,066 7,364,066 7,364,066 6,680,880 6,680,880 6,680,880 6,608,880 6,608,880 6,608,880 7,504,642 7,504,642 7,504,642 6,798,158 6,798,158 6,798,158 255 255 255 318 318 318 35 35 35 261 261 261 227 227 227 25 25 25 $ 4,088 $ 4,088 $ 4,088 $ $ $ 4,500 4,500 4,500 Return on average common stockholders’ equity Return on average common stockholders’ equity Return on average common stockholders’ equity 12.48 % 12.48 % 12.48 % 11.55 % 11.55 % 11.55 % $2.56 $2.56 $2.56 $0.32 $0.32 $0.32 $0.34 $0.34 $0.34 $0.30 $0.30 $0.30 $1.79 $1.79 $1.79 $1.66 $1.66 $1.66 $1.60 (3) $1.60 (3) $1.60 (3) $1.44 $1.45 $1.44 $1.45 $1.44 $1.45 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $15.30 $15.30 $15.30 $13.79 $13.79 $13.79 $12.55 $12.55 $12.55 $11.51 $11.51 $11.51 $11.04 $11.04 $11.04 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 1 1 1 1 1 1 1 2 1 2 1 2 1 3 1 3 1 3 1 4 1 4 1 4 1 5 1 5 1 5 (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction (3) Diluted Earnings Per Share for fiscal 2011, excluding impact of bargain purchase gain on Acquisition, net of related tax and transaction expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.) expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.) expenses. (See "Non-GAAP Financial Information" included in Item 7 of the Company's Annual Report on Form 10-K.) SOUTHERN MISSOURI BANCORP, INC. is delivering shareholder value SOUTHERN MISSOURI BANCORP, INC. SOUTHERN MISSOURI BANCORP, INC. SOUTHERN MISSOURI BANCORP, INC. is delivering shareholder value is delivering shareholder value is delivering shareholder value by serving our communities by serving our communities by serving our communities with a growing team of professionals with a growing team of professionals with a growing team of professionals with a growing team of professionals meeting our customers' needs. meeting our customers' needs. meeting our customers' needs. meeting our customers' needs. by serving our communities Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report Southern Missouri Bancorp, Inc. | 2015 Annual Report poplar bluff, missouri poplar bluff, missouri poplar bluff, missouri 2781 north westwood boulevard 2781 north westwood boulevard 2781 north westwood boulevard poplar bluff, missouri 2781 north westwood boulevard holiday inn ballroom holiday inn ballroom holiday inn ballroom monday, october 26, 2015 at 9:00 am monday, october 26, 2015 at 9:00 am monday, october 26, 2015 at 9:00 am holiday inn ballroom monday, october 26, 2015 at 9:00 am annual meeting annual meeting annual meeting annual meeting management review this year's performance in detail. management review this year's performance in detail. management review this year's performance in detail. at our 2015 Annual Meeting, where shareholders will hear at our 2015 Annual Meeting, where shareholders will hear at our 2015 Annual Meeting, where shareholders will hear management review this year's performance in detail. at our 2015 Annual Meeting, where shareholders will hear please join us please join us please join us please join us 

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