Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q3 2023 Earnings Conference Call May 2, 2023 10:30 AM ET

Company Participants

Lora Daves - Chief Financial Officer

Matt Funke - President and Chief Administrative Officer

Greg Steffens - Chairman and Chief Executive Officer

Conference Call Participants

Kelly Motta - KBW

Andrew Liesch - Piper Sandler

Operator

Hello, everyone, and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. My name is Daisy, and I'll be coordinating your call today. [Operator Instructions]

I would now like to hand the call over to your host, Lora Daves, the CFO of Southern Missouri Bancorp to begin. Lora, please go ahead.

Lora Daves

Thank you, Daisy. Good morning, everyone. This is Lora Daves, CFO for Southern Missouri Bancorp. Thank you for joining us. The purpose of this call is to review the information and data presented in our quarterly earnings release dated Monday, May 1st, 2023, 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.

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

Matt Funke

Thank you, Lora, and good morning, everyone. This is Matt Funke. Thanks for joining us. We'd like to touch first on our completed merger with Citizens Bancshares and Citizens Bank & Trust. We completed the legal merger in late January and the operational merger five weeks later at the end of February.

We're pleased to be participating in the life of these new communities and we look forward to serving their financial needs. Of course, the merger had a lot of impact on this quarter's income statement and on our balance sheet. Our onetime costs look to be tracking in line with our modeling. Loan portfolio marks were in line with expectations as was the day one provision for credit losses under CECL.

These nonrecurring charges accounted for $10.3 million pretax and are estimated to have reduced diluted EPS by $0.73, inclusive of those charges, our EPS declined to $0.22 for the March quarter, that figure compares to $1.26 from the linked December quarter and to $1.03 from the March 2022 quarter, which also included merger-related charges, although they were significantly smaller.