Southern Missouri Bancorp Makes Announcement
July 01 2005 - 1:48PM
Business Wire
Southern Missouri Bancorp, Inc. ("Company") (Nasdaq:SMBC), the
parent corporation of Southern Missouri Bank and Trust Co.
("Bank"), today announced that the Bank discovered there had been
an additional adverse development with respect to a previously
reported substandard loan, which resulted from allegedly fraudulent
activities on the part of a significant borrower. Control over and
access to a significant portion of the collateral underlying the
loan is now the subject of litigation between the Bank and another
financial institution with a non-performing loan to the same
borrower. As a result, the Bank increased its provision for loan
losses by $1.9 million as of June 28, 2005, or approximately $1.2
million on an after-tax basis. At the same time, the Bank reduced
the value of the borrower's loans by $2.4 million. The remaining
net loan balance after this write down and the application of the
proceeds from the sale of a portion of the collateral securing the
loans is approximately $300,000. The remaining collateral, over
which the Bank has control or is able to gain control, will be sold
at auction as soon as necessary arrangements can be made. To the
extent this litigation is settled or resolved in favor of the Bank,
a portion of this write down could be recovered. The Company cannot
predict whether or to what extent such a recovery may occur.
Forward-Looking Statements When used in this Current Report on Form
8-K and in other reports of the Company filed with or furnished to
the Securities and Exchange Commission, in press releases or other
public shareholder communications, or in oral statements made with
the approval of an authorized executive officer, the words or
phrases "believe," "will likely result," "are expected to," "will
continue," "is anticipated," "estimate," "project," "plans," or
similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. You are cautioned not to place undue reliance
on any forward-looking statements, which speak only as of the date
made. These statements are based on beliefs, plans, objectives,
goals, expectations, anticipations, estimates and intentions of
management and are not guarantees of future performance. By their
nature, these statements are subject to numerous uncertainties that
could cause actual results to differ materially from those
anticipated in the statements. Important factors that could cause
actual results to differ materially from the results anticipated or
projected include, but are not limited to, the following: (i)
further developments in the Company's ongoing review of and efforts
to resolve the problem credit relationship described in this
report, which could result in, among other things, further
downgrades of the aforementioned loans, additional provisions to
the loan loss reserve and the incurrence of other material non-cash
and cash charges; (ii) the strength of the United States economy in
general and the strength of the local economies in which the
Company conducts operations; (iii) the effects of, and changes in,
trade, monetary and fiscal policies and laws, including interest
rate policies of the Federal Reserve Board; (iv) inflation,
interest rate, market and monetary fluctuations; (v) the timely
development of and acceptance of the Company's new products and
services and the perceived overall value of these products and
services by users, including the features, pricing and quality
compared to competitors' products and services; (vi) the
willingness of users to substitute the Company's products and
services for products and services of the Company's competitors;
(vii) the impact of changes in financial services laws and
regulations (including laws concerning taxes, banking, securities
and insurance); (viii) the impact of technological changes; (ix)
acquisitions; (x) changes in consumer spending and saving habits;
and (xi) the Company's success at managing the risks involved in
the foregoing. The Company disclaims any obligation to update or
revise any forward-looking statements based on the occurrence of
future events, the receipt of new information, or otherwise.
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