Southern Missouri Bancorp Inc (SMBC) 2024 Q4 法說會逐字稿

Hello, and welcome to the Southern Missouri Bancorp Quarterly earnings call. My name is Alex, and I’ll be coordinating the call today. (Operator Instructions)

您好，歡迎參加南密蘇裡銀行季度財報電話會議。我叫亞歷克斯，今天我將協調電話會議。（操作員說明）

I’ll now hand it over to your host, Stefan Chkautovich, CFO to begin. Please go ahead.

現在我將把它交給主持人、財務長 Stefan Chkautovich 開始。請繼續。

Thank you, Alex. Good morning, everyone. This is Stefan Chkautovich, CFO with Southern Missouri Bancorp. Thank you for joining us.

謝謝你，亞歷克斯。大家早安。我是 Stefan Chkautovich，南密蘇裡銀行首席財務長。感謝您加入我們。

The purpose of this call is to review the information and data presented in our quarterly earnings release dated Monday, July 29, 2024, and to take your questions. We may make certain forward-looking statements during today’s call and we refer you to our cautionary statement regarding forward-looking statements contained in the press release.

本次電話會議的目的是回顧我們於 2024 年 7 月 29 日星期一發布的季度收益報告中提供的資訊和數據，並回答大家的問題。我們可能會在今天的電話會議中做出某些前瞻性聲明，請參閱我們關於新聞稿中包含的前瞻性聲明的警告聲明。

I’m joined on the call today by Matt Funke, President and Chief Administrative Officer; Greg Steffens, our Chairman and CEO, is attending the investor conference today. Matt will lead off our conversation today with some highlights from our most recent quarter and fiscal year.

今天，總裁兼首席行政官 Matt Funke 也加入了我的電話會議。我們的董事長兼執行長 Greg Steffens 今天出席投資者會議。馬特（Matt）將以我們最近一個季度和財年的一些亮點來開始我們今天的談話。

Thank you, Stefan. Good morning, everyone. This is Matt Funke. Thank you for joining us. I’ll start off with some highlights on our financial results for the June quarter, which is the final quarter of our fiscal year.

謝謝你，斯特凡。大家早安。這是馬特·芬克。感謝您加入我們。首先，我將重點放在六月季度（本財年的最後一個季度）的財務表現。

Quarter-over-quarter profitability was up a bit as we saw our net interest margin move higher in combination with an increase in non-interest income and a small decrease in expenses. Despite the challenging higher rate environment and its impact on our cost of deposits, we are pleased to report that we grew tangible book value per share by 13.4% during our fiscal 2024 year.

由於我們看到淨利差上升，加上非利息收入增加和費用小幅下降，季度獲利能力略有上升。儘管利率上升環境充滿挑戰及其對我們的存款成本產生影響，但我們很高興地報告，在 2024 財年，我們的每股有形帳面價值增加了 13.4%。

In the June quarter, we earned $1.19 diluted, that’s up $0.20 per share from the linked March quarter, but it’s down $0.18 from the June 2023 quarter. For full fiscal year '24, we earned $4.42 compared to $3.85 in fiscal 2023. Excluding losses realized on the sale of securities, we would have earned about $0.11 more in fiscal 2024, so $4.53 while in 2023, if we had excluded the Citizens merger related provision for credit losses and non-interest expenses, we would have earned $0.95 more or about $4.80.

在 6 月季度，我們的攤薄收益為 1.19 美元，比 3 月份相關季度每股上漲 0.20 美元，但比 2023 年 6 月季度下降 0.18 美元。在 2024 財年全年，我們的收入為 4.42 美元，而 2023 財年為 3.85 美元。不包括出售證券所實現的損失，我們在2024 財年將多賺約0.11 美元，即4.53 美元，而到2023 年，如果我們排除與公民合併相關的信貸損失和非利息費用準備金，我們將多賺0.95 美元或約 4.80 美元。

The decrease from last year’s figure on an adjusted basis is primarily due to core expense growth that exceeded our net interest income growth as a result of margin compression. Expense growth also exceeded our non-interest income growth due to reduced loan fee income and NSF revenues. Tangible book value per share was $36.68 and has increased by $4.34 or that 13.4% that we mentioned over the last 12 months.

調整後的數字較去年有所下降，主要是由於利潤率壓縮導致核心費用增長超過了淨利息收入增長。由於貸款費用收入和 NSF 收入減少，費用成長也超過了非利息收入成長。每股有形帳面價值為 36.68 美元，增加了 4.34 美元，即我們在過去 12 個月中提到的 13.4%。

If we were to back out the after-tax impact of both the loss trades we executed and the year-over-year improvement in our AOCI, our tangible book value would have increased by about $4.05 or 11.8%. Due to our strong capital position with the earnings release, we also announced a $0.02 or 9.5% increase in our quarterly dividend bringing it to $0.23 a share, which is just over 20% of our fiscal year 2024 results as an annualized rate.

如果我們取消執行的虧損交易和 AOCI 年比改善的稅後影響，我們的有形帳面價值將增加約 4.05 美元或 11.8%。由於我們在財報發佈時資本狀況強勁，我們也宣布季度股息增加 0.02 美元，即 9.5%，達到每股 0.23 美元，略高於我們 2024 財年年化業績的 20%。

Net interest margin for the quarter was 3.25% as compared to 3.15% reported for the linked third quarter of fiscal 2024. Due to the increase in deposit costs, however, our net interest margin compared to the same quarter a year ago is down by 35 basis points. Net interest income was up 1.7% quarter-over-quarter as the net interest margin expansion more than offset the 1.3% decrease in average earning assets, but it’s down 3.1% year-over-year primarily due to the decrease in margin.

本季的淨利差為 3.25%，而 2024 財年第三季的淨利差為 3.15%。但由於存款成本上升，我們的淨利差較去年同期下降了35個基點。淨利息收入環比增長 1.7%，原因是淨利差擴大抵消了平均生息資產 1.3% 的下降，但同比下降 3.1%，主要是由於利潤率下降。

Non-interest income for the quarter was up $2.2 million or 39.1% compared to the linked quarter, partially due to losses realized on the sale of securities in the prior quarter and other seasonal fee income realized this quarter. Year-over-year, fee income was down 13.2% due to reduced loan fee income, including the gain on sale of loans.

與上一季相比，本季的非利息收入增加了 220 萬美元，即 39.1%，部分原因是上一季出售證券所實現的損失以及本季度實現的其他季節性費用收入。由於貸款費用收入（包括出售貸款的收益）減少，費用收入較去年同期下降 13.2%。

Non-interest expense was down 0.2% for the current quarter compared to the linked quarter and up just 0.5% compared to the same quarter a year ago. Stefan will give more detail later on some of the moving parts within operating expenses, but big picture, we feel like our team has done a good job at expense control.

本季非利息支出較上一季下降 0.2%，較去年同期僅成長 0.5%。Stefan 稍後將詳細介紹營運費用中的一些變動部分，但總體而言，我們認為我們的團隊在費用控制方面做得很好。

On the balance sheet, gross loan balances increased by $79 million or 8.3% annualized compared to March 31, and by $231 million or 6.4% compared to June 30 a year ago. Cash equivalent balances as of June 30 decreased by $107 million compared to March 31 due to outflows of seasonal deposits and the strong loan growth.

資產負債表上，總貸款餘額較 3 月 31 日增加 7,900 萬美元，年化成長率為 8.3%；較去年 6 月 30 日增加 2.31 億美元，年化成長率為 6.4%。由於季節性存款流出和貸款強勁增長，截至 6 月 30 日的現金等價物餘額較 3 月 31 日減少 1.07 億美元。

During the quarter, we had some opportunistic stock repurchase activity utilizing $3.7 million to acquire about 88,000 shares at an average price of just over $41.50 or a little more than 95% of our June 30, 2024 book value. In addition to our improved sequential quarterly earnings, credit quality has remained strong with adversely classified loans at $41 million or 1.06% of total loans, a decrease of about $1.5 million or six basis points during the quarter. Non-performing loans were $6.7 million at June 30, down a little more than $700,000 compared to last quarter and they totaled 0.17% of gross loans.

在本季度，我們進行了一些機會性股票回購活動，利用 370 萬美元收購了約 88,000 股股票，平均價格略高於 41.50 美元，略高於我們 2024 年 6 月 30 日賬面價值的 95%。除了季度收益有所改善外，信貸品質仍然強勁，不良分類貸款為 4,100 萬美元，佔貸款總額的 1.06%，本季減少了約 150 萬美元，即 6 個基點。截至 6 月 30 日，不良貸款為 670 萬美元，比上季減少略高於 70 萬美元，佔貸款總額的 0.17%。

By comparison, at June 30, '23, non-performing loans were $7.7 million and 21 basis points on total loans. Loans past due 30 days to 89 days were $6.1 million up a little more than $600,000 from March and 16 basis points on gross loans, one basis point higher than March compared to a year ago.

相較之下，截至 2023 年 6 月 30 日，不良貸款為 770 萬美元，貸款總額上升 21 個基點。逾期 30 天至 89 天的貸款為 610 萬美元，比 3 月增加了 60 萬美元多一點，貸款總額增加了 16 個基點，比 3 月一年前增加了一個基點。

Total delinquent loans were $9.2 million or 24 basis points on gross loans, up one basis point compared to March 31 and down six basis points compared to June 30 a year ago. This quarter, our ag real estate balances totaled $233 million or just over 6% of total loans and ag production and equipment loans were $176 million or a little more than 4.5% of total loans.

拖欠貸款總額為 920 萬美元，相當於貸款總額 24 個基點，比 3 月 31 日增加 1 個基點，比一年前 6 月 30 日減少 6 個基點。本季度，我們的農業房地產餘額總計 2.33 億美元，略高於總貸款的 6%，農業生產和設備貸款為 1.76 億美元，略高於總貸款的 4.5%。

Compared to the prior quarter end, ag real estate balances were down $1 million and ag real estate balances were down about $6 million compared to June 30 a year ago. Our production and equipment loans were up $36 million quarter-over-quarter due to normal seasonality mostly and they were also up $38 million year-over-year. Our lenders report that the majority of our ag borrowers began planting earlier in 2024 due to more favorable weather conditions. Corn and soybeans were planted as early as March and are maturing well with some corn expected to be harvested in August and soybeans in September.

與上個季度末相比，農業房地產餘額減少了 100 萬美元，與去年 6 月 30 日相比，農業房地產餘額減少了約 600 萬美元。我們的生產和設備貸款較上季增加了 3,600 萬美元，主要是由於正常的季節性因素，年比也增加了 3,800 萬美元。我們的貸款人報告稱，由於天氣條件更為有利，我們的大多數農業借款人於 2024 年初開始種植。玉米和大豆早在三月就開始播種，目前成熟情況良好，預計部分玉米將在八月收穫，大豆將在九月收穫。

Despite heavy rains in June that required some replanting of cotton and soybeans, the damage was manageable with crop insurance. The wetter weather through June helped to hold down irrigation cost for a while, but as summer progresses, hot dry conditions are leading to increased fuel costs for irrigation and chemicals for weed control. We are seeing increased loan draws to cover higher costs with some farmers already returning for draws on supplemental lines of credit that were pre-approved when we renewed annual lines ahead of this crop year.

儘管六月的大雨需要重新種植一些棉花和大豆，但透過作物保險可以控制損失。六月的潮濕天氣有助於在一段時間內壓低灌溉成本，但隨著夏季的進展，炎熱乾燥的天氣導致灌溉燃料和雜草控制化學品的成本增加。我們看到貸款提款增加，以支付更高的成本，一些農民已經返回補充信貸額度，這些額度是我們在本作物年度之前更新年度額度時預先批准的。

The earlier start to this planting season also means that our balances at June 30 this year are a little higher than last and also that lines could be paid down earlier this fall although we could see some of our borrowers delay sales of their crop to take advantage of the most advantageous delivery dates for pricing given overall commodity pricing challenges this year.

本種植季節提前開始也意味著我們今年6 月30 日的餘額略高於去年，而且貸款額度可能會在今年秋天提前還清，儘管我們可能會看到一些借款人為了利用這一機會而推遲出售農作物。

Lower corn prices this spring led to a decrease in corn acreage with farmers hoping for better prices in 2025. Rice acreage increased slightly and is in good condition. Cotton is reported to be in average condition with hopes for a good yield if the dry weather continues. Specialty crops like popcorn are in better condition than last year and early planted soybeans show promise of a higher yield compared to '23.

今年春季玉米價格下跌導致玉米種植面積減少，農民希望 2025 年價格上漲。水稻種植面積略有增加，狀況良好。據報道，棉花狀況一般，如果乾燥天氣持續下去，可望獲得良好的產量。爆米花等特種作物的狀況比去年好，早播的大豆預計將比 23 年獲得更高的產量。

Farm equipment prices remain high but used equipment prices are falling, and real estate values are generally stable. The '24 crop year could be challenging for our farmers due to high production costs and lower commodity prices, helping to offset these yields in our area looks at come in quite strong. Our lenders are making their farm crop progress inspections over the next few months which should give us a reliable projection on estimated yields and a better indicator of the outcome of the '24 crop by early fall.

農業設備價格仍然很高，但二手設備價格正在下降，房地產價值整體穩定。由於高生產成本和較低的商品價格，24 作物年對我們的農民來說可能是一個挑戰，這有助於抵消我們地區看起來相當強勁的產量。我們的貸款機構將在未來幾個月內對農作物進展進行檢查，這將為我們提供對估計產量的可靠預測，並更好地反映 24 年初秋作物的結果。

Due to our stringent underwriting including stressed commodity pricing and assumed higher operating costs, we anticipate that our borrowers will generally be able to navigate this challenging year. Looking at the loan portfolio overall, it was a good well-rounded quarter for loan growth stemming from non-owner occupied commercial real estate loans, residential real estate loans and drawn construction loan balances. This loan growth was also spread through our footprint with good growth in our South, Northwest and East regions and for the overall fiscal year, our South, East and West regions led the way.

由於我們嚴格的承保，包括緊張的商品定價和假設較高的營運成本，我們預計我們的借款人通常能夠度過這個充滿挑戰的一年。從整體貸款組合來看，這是一個良好的全面季度貸款成長，源自於非業主佔用的商業房地產貸款、住宅房地產貸款和提取的建築貸款餘額。這種貸款成長也遍布我們的足跡，南部、西北和東部地區成長良好，在整個財年，我們的南部、東部和西部地區處於領先地位。

We are continuing to prioritize growing our credit portfolio with full banking relationships. We’re optimistic about keeping the mid-single-digit pace of loan growth we experienced in '24 going into fiscal '25 as we look to increase our market share. Producers that we have brought on are adding to the pipeline. At quarter end, our pipeline for loans to fund in the next 90 days totaled $157 million as compared to $117 million at March and $135 million one year ago.

我們將繼續優先考慮透過全面的銀行關係來發展我們的信貸組合。我們對在 24 世紀到 25 財年保持中個位數的貸款成長速度持樂觀態度，因為我們希望增加市場份額。我們引進的生產商正在加入到管道中。截至季末，我們未來 90 天內的融資貸款總額為 1.57 億美元，而 3 月為 1.17 億美元，一年前為 1.35 億美元。

Our volume of loan originations was approximately $205 million in the June quarter compared to $241 million in the linked March quarter, and in the June quarter a year ago, originations totaled $272 million. The leading categories in the current quarter were construction, one to four family, CRE and C&I.

我們 6 月季度的貸款發放量約為 2.05 億美元，而相關的 3 月季度為 2.41 億美元，一年前 6 月季度的發放總額為 2.72 億美元。本季的領先類別是建築、一到四戶住宅、商業地產和工商業。

Our non-owner CRE concentration at the bank level was approximately 318% of Tier 1 capital and allowance for credit losses at June 30, down from 327% at March 31 and 330% at June 30 a year ago.

截至6 月30 日，我們在銀行層級的非所有者商業房地產集中度約為一級資本和信貸損失準備金的318%，低於一年前3 月31 日的327% 和6 月30 日的330%。

On a consolidated basis, our non-owner occupied CRE ratio is about 305%. Our intent would be to hold relatively steady on this measure and to grow CRE commensurate with capital. As pointed out in the earnings release, our office portfolio is minimal with 35 loans totaling $25 million or 0.65% of total loans. The remainder of our CRE is rather diverse and our multi-family lending is primarily either in our Midwest footprint or with developers operate from our footprint.

綜合來看，我們的非業主自用商業房地產比率約為 305%。我們的目的是在這項指標上保持相對穩定，並根據資本來成長商業房地產。正如收益發布中所指出的，我們的辦公大樓投資組合很少，只有 35 筆貸款，總額為 2,500 萬美元，佔貸款總額的 0.65%。我們的商業房地產的其餘部分相當多樣化，我們的多戶貸款主要要么在中西部地區，要么由開發商在我們的地區運營。

Stefan, would you provide some additional details on the financial numbers?

Stefan，您能提供一些有關財務數據的其他詳細資訊嗎？

Thanks, Matt. You hit some of the key financial items already, but I wanted to share a few details. Looking at this quarter’s net interest margin of 3.25%, it included about 10 basis points of fair value discount accretion on acquired loan portfolios in premium amortization on assumed deposits compared to the linked March quarter of 11 basis points and 16 basis points in the prior year’s June quarter.

謝謝，馬特。您已經談到了一些關鍵的財務項目，但我想分享一些細節。從本季3.25% 的淨利差來看，其中包含了假設存款溢價攤銷中所收購貸款組合的公允價值折價增值約10 個基點，而3 月份相關季度的公允價值折價為11 個基點，2019年第三季為16 個基點。

The net interest margin expanded as the yield on interest earning assets increased 14 basis points, primarily due to loan yield expansion, while the cost of interest-bearing liabilities increased 8 basis points.

淨利差擴大，生息資產收益率上升14個基點，主要是因為貸款收益率上升，而付息負債成本上升8個基點。

As we have indicated on prior calls, we continue to see a net benefit of high-cost CDs raised in calendar 2023, repricing slightly lower, while our fixed rate loan portfolio yields steadily and modestly increased with renewals. In addition, the margin should benefit from any increase in new loan production at higher interest rates next quarter. With this, we could continue to see some additional margin expansion, but not at the same rate we experienced this quarter. If the FOMC does cut rates this year, we could also see further net interest margin expansion.

正如我們在先前的電話會議中所表明的那樣，我們繼續看到2023 年籌集的高成本CD 的淨收益，重新定價略低，而我們的固定利率貸款組合收益率隨著續約而穩步適度增長。此外，利潤率應該會受益於下個季度利率上升時新貸款產量的增加。這樣，我們可能會繼續看到一些額外的利潤率擴張，但速度不會達到本季的水平。如果聯邦公開市場委員會今年確實降息，我們也可能會看到淨利差進一步擴大。

A 100 basis points of cuts to the Fed funds rate is projected to result in low to mid-single-digit percentage growth of net interest income over the 12 months following the rate cut depending on our rate of growth. As Matt mentioned, non-interest income was up 39.1% compared to the linked quarter and excluding the $807,000 of realized losses from the March quarter’s bond sales, it would have increased by 21.5%, but it was down 13.2% year-over-year.

聯邦基金利率下調 100 個基點預計將導致降息後 12 個月內淨利息收入出現低至中個位數的百分比增長，具體取決於我們的增長率。正如馬特所提到的，非利息收入比上一季增長了39.1%，如果不包括3 月份季度債券銷售帶來的807,000 美元的已實現損失，非利息收入將增長21.5%，但同比下降了13.2 %。

The year-over-year comparison was negatively impacted by lower gains on sale of loans and other loan fees this quarter, but also due to NSF policy changes we adopted in July 2023 at the beginning of our fiscal year on how we assess fees for some items resulting in a reduction of fee income.

年比比較受到本季度貸款銷售收益和其他貸款費用下降的負面影響，而且還由於我們於 2023 年 7 月在本財年開始時就如何評估某些費用的 NSF 政策發生了變化。專案.

With the completion of this fiscal year, the negative impact from this change will not be a drag on the year-over-year comparison anymore. For the linked quarter, the increase excluding the loss trade was from the recognition of $675,000 from tax credit benefits and other non-interest income, $379,000 from additional card network fees based on annual volume incentives and $131,000 from the change in fair value of mortgage servicing rights.

隨著本財年的結束，這項變革的負面影響將不再拖累同比。對於相關季度，不包括損失交易的增長來自於稅收抵免福利和其他非利息收入確認了675,000 美元，基於年度交易量激勵的額外卡網絡費用確認了379,000 美元，以及抵押貸款服務公允價值變化確認了131,000 美元權利。

Going forward, we will be estimating and recognizing the card value and incentives as well as the tax credit benefits more evenly throughout the year. Non-interest expense was up 50 basis points compared to the year ago quarter and down 20 basis points compared to the linked quarter.

展望未來，我們將全年更均勻地估計和認識卡的價值和激勵措施以及稅收抵免福利。非利息支出較去年同期上升 50 個基點，較上一季下降 20 個基點。

We did utilize some one-time credits with a vendor totaling 60,000 in the quarter that we will not benefit from in the quarters to come and we expect operating costs to continue to increase as the bank grows. I do also want to point out that in the quarter we had reclassifications of some expenses that resulted in about a $200,000 decrease in data processing and a corresponding $100,000 increase in both occupancy and equipment and legal and professional fees. As Matt mentioned, credit remains benign and net charge offs were 6 basis points annualized for the current quarter and 5 basis points in the trailing 12 months, which is a very solid performance by comparison to historical industry figures.

本季我們確實利用了供應商總計 60,000 筆的一次性信貸，但在接下來的幾個季度我們將無法從中受益，而且我們預計隨著銀行的發展，營運成本將繼續增加。我還想指出的是，本季度我們對一些費用進行了重新分類，導致數據處理費用減少了約 20 萬美元，佔用率和設備費用以及法律和專業費用相應增加了 10 萬美元。正如馬特所提到的，信貸仍然良性，本季淨沖銷年化為 6 個基點，過去 12 個月為 5 個基點，與歷史行業數據相比，這是一個非常穩健的表現。

Our provision for credit losses was $900,000 in the quarter as compared to $795,000 in the same period of the prior year and in line with the linked quarter. Our allowance for credit losses at June 30, 2024 was $52.5 million or 1.36% of gross loans and 786% of non-performing loans as compared to an ACL of $51.3 million or 1.36% of gross loans and 693% of non-performing loans at March 31, 2024 billing quarter.

本季我們的信貸損失準備金為 90 萬美元，而去年同期為 79.5 萬美元，與上一季持平。截至2024 年6 月30 日，我們的信貸損失準備金為5,250 萬美元，佔貸款總額的1.36%，佔不良貸款的786%，而2024 年6 月30 日的ACL 為5,130 萬美元，佔貸款總額的1.36%，佔不良貸款的693%。

The current period provision for credit loss was the result of $1.8 million provision attributable to the ACL for loan balances outstanding, partially offset by recovery of $875,000 and provision attributable to allowance for off balance sheet credit exposure as construction draws reduced available credit and increased on balance sheet exposure. Our assessment of the economic outlook has improved, but reserves were modestly increased due to qualitative factors and individually evaluated credits.

本期信貸損失準備金是ACL 為未清貸款餘額準備金180 萬美元的結果，部分被收回的875 000 美元和表外信貸風險備抵準備金所部分抵消，因為施工提款減少了可用信貸並增加了餘額片材曝光。我們對經濟前景的評估有所改善，但由於定性因素和單獨評估的信貸，儲備略有增加。

Despite some of the challenges over our fiscal 2024, as the bank navigated this higher interest rate environment, impacting our margin, slowing the overall economy and resulting in lower loan originations and secondary market fees, we feel optimistic about margin and overall earnings for fiscal 2025 and beyond if we remain in a stable credit environment.

儘管2024 財年面臨一些挑戰，但隨著銀行應對利率上升的環境，影響我們的利潤率，整體經濟放緩，導致貸款發放和二級市場費用降低，但我們對2025 財年的利潤率和整體收益感到樂觀如果我們保持穩定的信用環境，甚至會更進一步。

With our anticipated earnings and similar loan growth to 2024, we should see our capital level and ratios continue to increase. We will expect to primarily manage our equity levels through the dividend and periodic M&A activity.

根據我們到 2024 年的預期收益和類似的貸款成長，我們應該會看到我們的資本水準和比率繼續增加。我們預計主要透過股利和定期併購活動來管理我們的股本水準。

The current stock prices made repurchase activity a little less attractive as a capital management tool than it was a few weeks ago, but we’ll remain opportunistic about repurchase activity when anticipated earn back periods would justify it.

目前的股價使得回購活動作為資本管理工具的吸引力比幾週前有所下降，但當預期的盈利回收期證明其合理性時，我們將繼續對回購活動持機會主義態度。

Matt, any closing thoughts?

馬特，有什麼結束的想法嗎？

Thank you, Stefan. We have remained focused in the past fiscal year on core deposit retention, expansion in our Kansas City and St. Louis markets and taking care of our relationships. We have made some additions to our teams in a variety of markets, and we are seeing progress on the business development front.

謝謝你，斯特凡。在過去的財年中，我們仍然專注於核心存款保留、堪薩斯城和聖路易斯市場的擴張以及維護我們的關係。我們在各個市場對團隊進行了一些補充，並且我們在業務開發方面看到了進展。

The M&A conversations with potential partners in the first half of the calendar year, they remain somewhat preliminary and medium to longer term prospects, but we do continue to look to further explore opportunities to achieve scale in target markets. Additionally, we continue to look at other financial service providers we can partner with. We expect the uptick in bank valuations could lead to further discussions with some potential partners.

今年上半年與潛在合作夥伴的併購對話仍處於初步階段和中長期前景，但我們確實繼續尋求進一步探索在目標市場實現規模化的機會。此外，我們還將繼續尋找可以合作的其他金融服務提供者。我們預計銀行估值的上升可能會導致與一些潛在合作夥伴的進一步討論。

As it’s been well over a year since our last merger, we’ve been focused recently on identifying operational efficiencies and fostering a strong culture so that we are better able to serve our clients, our local communities and shareholders and position for potential M&A activity in the future.

由於距離上次合併已有一年多的時間，我們最近一直致力於提高營運效率並培養強大的文化，以便我們能夠更好地為我們的客戶、當地社區和股東提供服務，並為我們的客戶定位。

Thank you, Matt. At this time, Alex, we’re ready to take questions from our participants. So if you would, please remind folks how they may queue for questions at this time.

謝謝你，馬特。亞歷克斯，現在我們已經準備好回答參與者的問題了。因此，如果您願意，請提醒人們此時如何排隊提問。

(Operator Instructions) Matt Olney, Stephens.

（操作員說明）Matt Olney，Stephens。

Stefan, I think you mentioned that CD where pricing dynamics was favorable this past quarter and I guess this could be a nice tailwind for you going forward. Any more color on just the overall amount or just the level of CDs maturing the next few months? And where are some of those renewal rates and how those compare to what’s coming off? Thanks.

Stefan，我想你提到過上個季度定價動態有利的 CD，我想這對你未來的發展可能是一個很好的推動力。關於未來幾個月到期的 CD 的總量或水平還有更多的顏色嗎？其中一些續訂率在哪裡？謝謝。

Yes. The next 12 months we have around billion of CDs repricing. And on average, currently, the average renewal rate is about 4.79. And then on the flip side, we have about 12.5% of our loan book renewing from fixed rate.

是的。未來 12 個月，我們將有大約 10 億張 CD 重新定價。平均而言，目前平均續約率約為4.79。另一方面，我們大約有 12.5% 的貸款簿以固定利率更新。

12% renewing over the next 12 months, any color on just the roll off roll on rates there of the loan portfolio?.

未來 12 個月更新 12%，貸款組合的滾存利率上有任何顏色嗎？

Yes. Right now, they’re renewing at about 8.15%, 8.17% or so, and that 12.5% of the loan book is just our fixed rate that’s renewing.

是的。目前，他們的續約利率約為 8.15%、8.17% 左右，而貸款簿中的 12.5% 只是我們續約的固定利率。

Okay. Thanks for that. And then, on the expense side, Stefan, you mentioned a few moving parts during the quarter. As you weigh those moving parts against just the natural growth of the bank, where would you put us for forecasting expenses more near-term?

好的。謝謝你。然後，在費用方面，Stefan，您提到了本季的一些變動因素。當您權衡這些變動因素與銀行的自然成長時，您認為我們如何預測近期的支出？

They would still probably continue to grow in line with the bank’s rate. So it could be somewhere in the mid-single digits plus depending on how much we’re growing.

它們仍可能繼續按照銀行利率成長。因此，它可能在個位數中間的某個位置，這取決於我們的成長程度。

Matt, our normal pattern is with compensation adjustments mostly effective in January. That would be the quarter when we see a little bit of catch up to our growth rate.

馬特，我們的正常模式是薪資調整大部分在一月生效。那將是我們看到成長率有所趕上的季度。

Okay. And then you gave us some good details as far as the rate sensitivity on any Fed cut. So, appreciate the details there. On the credit front, this allowance ratio, I think it’s in the mid-130 range. I know that the CECL model handcuffs you here to a certain degree, but looks like credit trends remain really, really strong. Just curious, do you think there could be an opportunity, over the next year or so to move this slower, if there’s no role change to macro? Just curious any thoughts there.

好的。然後您向我們提供了一些有關聯準會降息的利率敏感性的詳細資訊。所以，欣賞那裡的細節。在信貸方面，我認為這個準備率在 130 左右。我知道 CECL 模式在一定程度上束縛了你，但看起來信貸趨勢仍然非常非常強勁。只是好奇，如果宏觀角色沒有發生變化，您認為在未來一年左右的時間裡，是否有機會放慢腳步？只是好奇那裡有什麼想法。

Yes, I don’t want to commit to any decrease in that percentage, but we do feel like we’re reasonably conservative on that. So, we hope not to have any surprises on the upside with provisioning.

是的，我不想承諾降低這個百分比，但我們確實覺得我們對此相當保守。因此，我們希望供應方面不會有任何意外。

Okay. I'll step back. Thank you, guys.

好的。我會退後一步。謝謝你們，夥計們。

Andrew Liesch, Piper Sandler.

安德魯·利施，派珀·桑德勒。

Good morning, guys. Hey. Question on the loan growth this quarter, Matt, you mentioned residential was part of it. Was that single family or multifamily?

早安，夥計們。嘿。關於本季貸款成長的問題，馬特，你提到住宅是其中的一部分。那是單戶家庭還是多戶家庭？

I think what we would have described in the call as growth is single family.

我認為我們在電話中所描述的成長是單一家庭。

Got it. Okay. Then if you look at the pipeline, how is that weighted right now as far as loan types? Anything that’s specifically driving it stronger than other areas?

知道了。好的。那麼，如果你看看管道，現在貸款類型的權重如何？有什麼具體因素推動它比其他領域更強？

Still a fair amount of construction draw anticipated over the next 90 days, some commercial real estate, anything there’s probably not a whole lot of additional ad draws within that, but there could be some.

預計未來 90 天內仍然會有相當數量的建築吸引，一些商業房地產，任何東西 - 其中可能不會有大量額外的廣告吸引，但可能會有一些。

Got you. And then if you just look at like the next 12 months, do you think the growth pace might be something similar to what you had in fiscal '24, stronger or with weaker growth in the winter quarters and a little bit stronger in the spring and summer?

明白你了。然後，如果您只看接下來的 12 個月，您是否認為增長速度可能與 24 財年的情況類似，冬季季度增長強勁或較弱，春季和春季增長稍強一些夏天？

Yes, we would anticipate that to continue. If anything, with ag being a little above where we were last year, it might even be a little more pronounced. Yes, so we see a balance on that front.

是的，我們預計這種情況會持續下去。如果有什麼不同的話，那就是ag略高於去年的水平，甚至可能會更加明顯。是的，所以我們在這方面看到了平衡。

Yes, makes sense. And then with the so some of the commentary on the fee income side, if you just back out the mortgage servicing gains towards like 7 point or the fair value there, maybe $7.6 million but the other things you mentioned might be more spread out throughout the year. So, do you think fee income could be north of $7 million on a run rate here going forward?

是的，有道理。然後，根據費用收入方面的一些評論，如果您只是將抵押貸款服務收益退回到7 個點或那裡的公允價值，可能是760 萬美元，但您提到的其他事情可能會更分散在整個行業中。那麼，您認為未來以運行費率計算，費用收入可能會超過 700 萬美元嗎？

Probably not a crazy number.

可能不是一個瘋狂的數字。

Okay. Got it. Wonderful. All right, guys, you’ve answered all my other questions. Thanks so much.

好的。知道了。精彩的。好吧，夥計們，你們已經回答了我所有其他問題。非常感謝。

Kelly Motta, KBW.

凱利·莫塔，KBW。

Maybe carrying on that thought about the fees, it looks like mortgage has been running, gain on sales and running pretty low and I think you had mentioned production there had picked up. Just wondering what your outlook is for that line item potentially returning to a more normalized rate of gain on sale?

也許繼續考慮費用，看起來抵押貸款一直在運行，銷售收益而且運行得相當低，我想你已經提到那裡的生產已經回升。只是想知道您對該訂單項目可能恢復到更正常的銷售收益率的前景有何看法？

Long term, we would anticipate that to pick back up at some point. What we’ve seen probably on the residential side that’s been a little stronger is our in house, which would include some owner occupied, some rental properties that we maintain in portfolio. Really not any indication right now that we’re seeing stronger secondary market activity, but hopefully, we will at some point see a turnaround as folks have to make a move at some point or we do see a little bit of longer-term rate movement improvement.

從長遠來看，我們預計這種情況會在某個時候回升。我們在住宅方面看到的可能更強一點的是我們的內部房產，其中包括一些業主自住的房產，以及我們在投資組合中維護的一些出租房產。目前確實沒有任何跡象表明我們看到二級市場活動更加強勁，但希望我們會在某個時候看到好轉，因為人們必須在某個時候採取行動，否則我們確實會看到一些長期利率運動改善。

Got it. Maybe turning back to the M&A, I appreciate commentary that it’s more medium to longer term at this point. But just strategically from a high level, can you remind us the markets that you’re interested in, where you’d potentially like to add more density or expand out your footprint too? Thanks.

知道了。也許回到併購，我很欣賞此時此刻更中長期的評論。但從策略角度來看，您能否提醒我們您感興趣的市場，以及您可能希望增加密度或擴大足跡的市場？謝謝。

Hi, thanks for that. I’m not sure, if I got caught up with the last transcript. I was just asking about M&A. If you could remind us about where you’re looking to add density to the footprint or potentially expand out.

你好，謝謝你。我不確定我是否趕上了最後一份文字記錄。我只是問併購的事。您能否提醒我們您希望在何處增加佔地面積或可能擴展的位置。

Hi, Kelly. Yes. Our priorities we’ve always talked about a circle from St. Louis over to Kansas City down through Springfield and Southwest Missouri, Northwest Arkansas, Little Rock over to Memphis. With entry to St. Louis, that would definitely add some interest to us. We’ve got a little bit more density already in Kansas City, but we’d love to add there. Northwest Arkansas is an attractive market. We feel the same way about Little Rock.

嗨，凱利。是的。我們的優先事項一直是從聖路易斯到堪薩斯城，經過斯普林菲爾德和密蘇裡州西南部、阿肯色州西北部、小石城到孟菲斯的一個圓圈。進入聖路易斯，這肯定會增加我們的興趣。我們已經在堪薩斯城增加了一些密度，但我們很樂意在那裡增加密度。阿肯色州西北部是一個有吸引力的市場。我們對小石城也有同樣的感覺。

Got it. That’s helpful. And maybe last question for me, just housekeeping with the balance sheet. Looks like average cash is down significantly quarter over quarter. Wondering if this, call it, $39 million level is a good run rate for liquidity or any consideration with that, the size of the balance sheet as we consider your mid-single digit wells growth ahead?

知道了。這很有幫助。也許對我來說最後一個問題是資產負債表的整理。看起來平均現金季減。想知道這個 3900 萬美元的水平對於流動性或任何考慮因素來說是否是一個良好的運行率，當我們考慮您未來的中個位數油井增長時，資產負債表的規模是多少？

Yes. Total cash and due from should probably range in the $50 million plus range. That’s probably more of a lower point.

是的。現金和應收帳款總額可能在 5,000 萬美元以上。這可能是一個較低的點。

(Operator Instructions) Okay. At this time, we currently have no registered questions. So I’ll hand back to Matt Funke for any further remarks.

（操作員指示）好的。目前，我們還沒有登記的問題。因此，如果有任何進一步的評論，我將轉交馬特馮克 (Matt Funke)。

Thank you, Alex, and thanks to everyone for participating. I apologize for our technical snafu there but appreciate your interest in the company. We’re looking forward to fiscal '25 and to speaking again with you in three months. Have a good day.

謝謝你，亞歷克斯，也謝謝大家的參與。我對我們的技術混亂表示歉意，但感謝您對公司的興趣。我們期待 25 財年並在三個月後再次與您交談。祝你有美好的一天。

Thank you for joining today's call. You may now disconnect your lines.

感謝您參加今天的電話會議。現在您可以斷開線路。