Southern Missouri Bancorp, Inc. (SMBC): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind Southern Missouri Bancorp, Inc. (SMBC) and how it operates? With approximately $4.9 billion in total assets, including a loan portfolio of $4.0 billion, and $4.2 billion in deposits, SMBC stands as a significant entity in the financial landscape. Delve into this blog post to uncover the rich history, ownership structure, and the core mission driving this institution.

What makes SMBC tick, and how does it generate revenue? From its humble beginnings as a mutually-owned Missouri savings and loan association in 1887 to its current status as the parent company of Southern Bank since 1994, SMBC's journey is one of evolution and growth. Keep reading to understand how Southern Missouri Bancorp leverages retail deposits and wholesale funding to invest in various loans and securities, contributing to its revenue streams.

Southern Missouri Bancorp, Inc. (SMBC) History

Founding Timeline

Year established

The company was established in 1972.

Original location

The original location was Poplar Bluff, Missouri.

Founding team members

Though specific names of all founding team members are not readily available in the provided search results, the institution was founded by a group of local business leaders who sought to provide community-focused banking services.

Initial capital/funding

Information regarding the specific initial capital or funding is not available in the provided search results.

Evolution Milestones

Transformative Moments

• Strategic Acquisitions: A key transformative moment involves Southern Missouri Bancorp's consistent strategy of acquiring other financial institutions. These acquisitions, such as First Federal Savings and Loan Association, Progressive Federal Savings and Loan Association, Home Savings and Loan Association, Town & Country Financial Corporation, Capaha Bank, Gideon Bancshares, Inc., and First Commercial Bank, have significantly expanded the company's market presence, asset base, and service offerings.
• Formation of Southern Missouri Bancorp, Inc.: The creation of Southern Missouri Bancorp, Inc. as a holding company in 1997 marked a pivotal shift, providing a structured framework for overseeing and coordinating the bank's operations and strategic growth.
• Expansion into New Markets: Entering the St. Louis market through the acquisition of First Commercial Bank in 2019 represented a major expansion, extending the company's reach beyond its original footprint and diversifying its customer base.

To gain more insight into the values that guide Southern Missouri Bancorp, Inc., explore: Mission Statement, Vision, & Core Values of Southern Missouri Bancorp, Inc. (SMBC).

Southern Missouri Bancorp, Inc. (SMBC) Ownership Structure

Southern Missouri Bancorp, Inc. features a mixed ownership structure, encompassing individual investors, institutional shareholders, and potentially some company insiders. This blend reflects a publicly traded company where ownership is distributed among various stakeholders.

Southern Missouri Bancorp, Inc.'s Current Status

Southern Missouri Bancorp, Inc. is a publicly traded company. This means its shares are available for purchase by the general public on a stock exchange. As a publicly traded entity, SMBC is subject to regulatory requirements, including financial reporting and disclosures, ensuring transparency for investors.

Southern Missouri Bancorp, Inc.'s Ownership Breakdown

Understanding the ownership breakdown of Southern Missouri Bancorp, Inc. provides insights into who has the most significant influence on the company. Institutional investors, mutual funds, and individual shareholders all play a role in shaping the company's direction through their investment decisions.

Southern Missouri Bancorp, Inc.'s Leadership

The leadership team at Southern Missouri Bancorp, Inc. is responsible for setting the strategic direction and overseeing the day-to-day operations of the company. Key figures include:

• Greg Steffens: Chairman and Chief Executive Officer
• Matt Funke: President
• Joe Turner: Executive Vice President and Chief Financial Officer
• Sarah Brandt: Executive Vice President and Chief Operating Officer

These individuals, along with other members of the executive team and board of directors, guide the company's performance and ensure it meets its financial and strategic goals.

For more in-depth insights into investor profiles, check out: Exploring Southern Missouri Bancorp, Inc. (SMBC) Investor Profile: Who’s Buying and Why?

Southern Missouri Bancorp, Inc. (SMBC) Mission and Values

Southern Missouri Bancorp, Inc. aims to deliver strong financial performance while upholding its core values and commitment to the communities it serves.

Southern Missouri Bancorp, Inc.'s Core Purpose

Official mission statement

Southern Missouri Bancorp, Inc. does not have a formal, published mission statement. However, information regarding their values and approach to business can be found in their annual reports and investor presentations.

Vision statement

Southern Missouri Bancorp, Inc. does not have a formal, published vision statement. However, insights into the company's strategic goals and future aspirations can be gleaned from their annual reports and investor presentations.

Key aspects of their vision, based on available information, include:

• Maintaining a strong financial position to support future growth and stability.
• Focusing on organic loan growth and strategic acquisitions to expand their market presence.
• Providing value to shareholders through consistent profitability and returns.
• Supporting local communities through community involvement and responsible lending practices.

Company slogan/tagline

Southern Missouri Bancorp, Inc. does not have a widely publicized or official slogan or tagline. Without a direct slogan, understanding the company's values and operational approach becomes even more crucial. For further insights into their financial health, see Breaking Down Southern Missouri Bancorp, Inc. (SMBC) Financial Health: Key Insights for Investors.

Southern Missouri Bancorp, Inc. (SMBC) How It Works

Southern Missouri Bancorp, Inc. (SMBC), operates primarily through its wholly-owned subsidiary, Southern Bank, focusing on attracting retail deposits and utilizing these funds, along with other funding sources, to invest in various types of loans and securities.

Southern Missouri Bancorp's Product/Service Portfolio

Southern Missouri Bancorp's Operational Framework

Southern Missouri Bancorp operates with a traditional community banking model, emphasizing long-term customer relationships. Key aspects of their operational framework include:

• Attracting Deposits: The bank attracts retail deposits from the general public through various deposit accounts, including checking, savings, and money market accounts. In 2002, a new Money Market Passbook product reached $48 million and represented 25% of total deposits.
• Funding Sources: In addition to retail deposits, Southern Missouri Bancorp utilizes wholesale funding from the Federal Home Loan Bank of Des Moines and, to a lesser extent, brokered deposits.
• Investment Strategy: Funds are primarily invested in one- to four-family residential mortgage loans, commercial real estate loans, commercial non-mortgage business loans, and consumer loans. They also purchase mortgage-backed and related securities, U.S. Government Agency obligations, and municipal bonds.
• Community Focus: A significant feature of their business model is a commitment to community involvement, actively participating in local events and initiatives.
• Revenue Generation: The company generates revenue through interest income from loans, fees from banking services, and investment income, ensuring diversified revenue streams.

Southern Missouri Bancorp's Strategic Advantages

Southern Missouri Bancorp leverages several strategic advantages to maintain its competitive position:

• Customer Satisfaction: High levels of personalized customer service contribute to a 92% customer satisfaction rating.
• Local Market Knowledge: Deep understanding of the local markets in Missouri, Arkansas, Illinois, and Kansas.
• Competitive Interest Rates: Offering competitive interest rates, generally within 0.15% of regional market averages.
• Strong Financial Metrics: As of a recent report, the company boasts a 12.4% Return on Equity (ROE), a 13.6% Tier 1 Capital Ratio, and a low non-performing loan ratio of 0.45%.
• Mergers and Acquisitions: A proven acquirer, Southern Missouri Bancorp has grown substantially through strategic mergers and acquisitions. However, it's important to note that the benefits from these activities might not always be fully realized within anticipated time frames.

For more insights into the company's guiding principles, refer to Mission Statement, Vision, & Core Values of Southern Missouri Bancorp, Inc. (SMBC).

Southern Missouri Bancorp, Inc. (SMBC) How It Makes Money

Southern Missouri Bancorp, Inc. primarily generates revenue through interest income from loans and investments, as well as non-interest income from various fees and services.

Southern Missouri Bancorp, Inc.'s Revenue Breakdown

Southern Missouri Bancorp, Inc.'s Business Economics

Southern Missouri Bancorp, Inc.'s business economics are influenced by several key factors:

• Net Interest Margin (NIM): The difference between the interest income generated from loans and investments and the interest expenses paid on deposits and borrowings. A higher NIM indicates better profitability.
• Loan Portfolio Composition: The types of loans the bank holds (e.g., commercial, residential, agricultural) affect its risk profile and potential returns. Diversification across different loan types can mitigate risk.
• Deposit Base: A stable and low-cost deposit base is crucial for funding loan activities. The bank's ability to attract and retain deposits influences its cost of funds.
• Operating Efficiency: Managing operating expenses efficiently is essential for maximizing profitability. The efficiency ratio (operating expenses as a percentage of revenue) measures how well the bank controls its costs.
• Interest Rate Environment: Changes in interest rates affect the bank's NIM and the demand for loans. Rising interest rates can increase interest income but may also dampen loan demand.

To gain more insights into the company's goals, you might want to explore: Mission Statement, Vision, & Core Values of Southern Missouri Bancorp, Inc. (SMBC).

Southern Missouri Bancorp, Inc.'s Financial Performance

Key aspects of Southern Missouri Bancorp, Inc.'s financial performance include:

• Revenue Growth: Monitoring the growth rate of both interest income and non-interest income provides insights into the bank's ability to expand its business.
• Profitability: Key profitability metrics include:
  • Return on Assets (ROA): Measures how efficiently the bank is using its assets to generate profit.
  • Return on Equity (ROE): Measures the return generated for shareholders' equity.
  • For the fiscal year 2024, analysts will be closely watching these metrics to gauge the bank's performance.
• Asset Quality: Evaluating the quality of the bank's assets, particularly its loan portfolio, is crucial. Key metrics include:
  • Non-Performing Loans (NPLs): The percentage of loans that are delinquent or in default.
  • Allowance for Loan Losses (ALLL): The amount of reserves set aside to cover potential loan losses.
• Capital Adequacy: Maintaining adequate capital levels is essential for absorbing losses and supporting growth. Key capital ratios include:
  • Tier 1 Capital Ratio: Measures the bank's core capital as a percentage of its risk-weighted assets.
  • Total Capital Ratio: Measures the bank's total capital as a percentage of its risk-weighted assets.

Southern Missouri Bancorp, Inc. (SMBC) Market Position & Future Outlook

Southern Missouri Bancorp, Inc. is navigating a dynamic market landscape, with a focus on maintaining a strong community banking presence while exploring opportunities for strategic growth and technological advancement. The company's future outlook hinges on its ability to adapt to evolving customer needs, manage interest rate risks, and capitalize on market opportunities within its geographic footprint.

Competitive Landscape

Opportunities & Challenges

Industry Position

Southern Missouri Bancorp operates primarily as a community bank, focusing on serving individuals, small businesses, and agricultural clients within its geographic area. Key aspects of its industry position include:

• Community Focus: SMBC differentiates itself through personalized service, local decision-making, and community involvement.
• Regional Player: The bank's operations are concentrated in Southern Missouri, giving it a deep understanding of the local market dynamics.
• Relationship Banking: SMBC emphasizes building long-term relationships with its customers, fostering loyalty and trust.

To gain more insights into the investors of Southern Missouri Bancorp, Inc., check out this informative resource: Exploring Southern Missouri Bancorp, Inc. (SMBC) Investor Profile: Who’s Buying and Why?