Southern Missouri Bancorp Reports $27.1 Million Net Income for Six Months Ended December 31, 2024

Southern Missouri Bancorp, Inc. reported a net income of $27.1 million for the six months ended December 31, 2024, reflecting a 7.0% increase from $25.3 million in the same period last year. The company's diluted earnings per share rose to $2.40, up from $2.23. The increase in net income was primarily driven by a $4.9 million rise in net interest income, which reached $74.8 million, and a $2.5 million increase in noninterest income, totaling $14.0 million. However, these gains were partially offset by a $1.3 million increase in the provision for credit losses and a $3.2 million rise in noninterest expenses.

In terms of financial position, total assets increased by $303.4 million, or 6.6%, to $4.9 billion as of December 31, 2024. This growth was largely attributed to a $175.0 million increase in net loans receivable, which reached $4.0 billion, and a $40.2 million rise in available-for-sale (AFS) securities, totaling $468.1 million. Deposits also saw a significant increase of $267.6 million, or 6.8%, amounting to $4.2 billion, driven by growth in certificates of deposit and savings accounts.

The company experienced a notable rise in its allowance for credit losses (ACL), which stood at $54.7 million, representing 1.36% of gross loans. This was an increase from $52.5 million at the end of the previous fiscal year. The provision for credit losses for the six-month period was $3.1 million, reflecting a more cautious approach amid economic uncertainties. The company reported net charge-offs of 0.02% of average loans outstanding, a decrease from 0.07% in the prior year.

Operationally, Southern Missouri Bancorp expanded its customer base and product offerings, with a focus on increasing its loan portfolio. The company reported a total of $894.7 million in outstanding commitments and approvals to extend credit, indicating strong demand for loans. Additionally, the bank's employee headcount has increased, contributing to higher compensation and benefits expenses, which were a significant factor in the overall rise in noninterest expenses.

Looking ahead, Southern Missouri Bancorp aims to continue its growth trajectory by focusing on loan origination and strategic expansion in attractive markets. The company plans to leverage its strong deposit base and explore opportunities for further acquisitions to enhance its market position. Management remains vigilant regarding economic conditions and interest rate fluctuations, which could impact future performance.