Welcome to the Southern Missouri Bancorp Third Quarter 2015 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Matt Funke. Please go ahead, sir.

Thank you, Dan. Good afternoon everyone this is Matt Funke, CFO, Southern Missouri Bancorp, the purpose of this call is to review the information and data presented in our quarterly earnings release dated Monday, April 27, 2015 and to take your question. We may make certain forward-looking statements here in today’s call when we refer you to our cautionary statement regarding forward-looking statements contained in the press release. First off I want to note some of the highlights of our financial results from the earnings release for our March quarter which is the third quarter of our 2015 fiscal year. We’re in 44 since diluted in the quarter net figure is down one penny on a split adjusted basis from the second quarter fiscal 2015, the linked quarter and it's up $0.12 from the $0.32 diluted that we earned on a split adjusted basis in the prior year's third quarter. For the fiscal year to-date we have earned a $1.33 diluted up from a $1.06 for the first nine months of the prior fiscal year both figure is adjusted. The March quarter is historically is a tough one on the linked quarter comparison for us, will give you a shorter number of days, with seasonality in our loan book and deposit account charges in this time of the year. In the current quarter the amount of net interest income is opened from fair value discount accretion on loans and fair value premium amortization on time deposits acquired with the First Southern Bank acquisition in 2010 with 69,000 versus a 109,000 in the same period last year and over the first nine months it has totaled 244,000 versus 481,000 last year. Also for this quarter and fiscal year-to-date we have recognized the benefit from the accretion of fair value discount on…

The part of the side [ph] I want to talk about is lending and again I would like to emphasize in our lending that our credit quality remains good, now went over some of our non-performing asset numbers and some of the modest improvement from last quarter and then with our increase being primarily due to the Peoples acquisition. But overall we’re expecting non-performing assets to gradually improve, and we do not see any deterioration in our legacy portfolio. When we look at loan growth for the year-to-date we’re showing loan growth of $248.5 million of which a 190 million was from the Peoples Bank acquisition. However, a 190 million in loans acquired from Peoples those balances are now down to a 166 million representing a repayment of 24 million and part of that repayment is due to some loans that migrated to our portfolio but by and large it's just a lot of the loans maybe had a little different underwriting criteria or standards between us and Peoples resulting in some of those loans moving elsewhere. If we look over the quarter, our loans grew $35 million with majority of that growth occurring in Southeast Missouri which grew 22 million, the Southwest Missouri market grew 7 and then Arkansas market grew by 7 million. So Southeast Missouri led our loan growth for the last quarter. When I look at the composition of loan growth over the last quarter we had 20 million in growth in C&I that was in non-ag related C&I our C&I portfolio for ag was actually down $10 million and that just reflects the normal paydowns that we have with our ag portfolio. On the ag portfolio it is 13 million higher than where it was a year ago at this point in time and much…

Thank you, Greg. Dan, at this time if you would remind callers if they would like to queue for questions and we will take what's available.

[Operator Instructions]. And our first question comes from Andrew Liesch of Sandler O'Neill. Please go ahead.

So just a couple of questions here, it looks like the loan growth came later in the quarter, is that correct?

It came spread out over the quarter but there was a lot of drones at the tailend.

And then curious what are your agricultural and farmer customers telling you about their businesses with lower commodity prices, are they concerned?

There is definitely some concern. We use that say it's crop prices for the underwriting of the ag credits that we do and at the present time based upon historical yields and the existing prices our farmers will be able to cover all their debts and obligations and service debt at this point. The challenge comes in as what happens if prices decline by 10% to 15%, there is a lot of farmers that at that point they don’t have the cushion to be able to service all their intermediate debts. We’re not worried about them being able to pay operating line money but in servicing their intermediate term that whether there will be more concern. And that ratio was tighter than where it historically has been and that’s one of the reasons we’re paying significant attention to where our farmers marketing plans are, what their insurance purchase requirements are and what they are buying and just closely monitoring what they are doing.

Shifting towards the margin, just curious what was the average yield of new loans added this quarter?

It remained consistent, it would be 4 in a quarter to 4.5.

And then so just with just general trend in the margin then with some of the accretion going away, would you expect it to trend down over the next few quarters?

The top line number, yes, we feel pretty comfortable that we’re managing that core margin but yes we will see a loss of - that accretion over time.

Okay, and then now one last one, looks like the provisions have been hanging around 850,000 level for a while even for and a lot of just to cover the loan growth, is that how we should be thinking about provisioning going forward?

Well both the loan growth and again the migration of those dollars into the allowance methodology. Where we have those dollars in the acquired portfolio that are paying down as those balances were smaller, we see fewer dollars migrating, we would expect that would require less provisioning also.

[Operator Instructions]. Our next question comes from David Cohen. Please go ahead.

I do have a question, it looks like to me you’re paying about 19% of your profits out and dividends, do you’ve a percentage goal that you are shooting for or what percentage of profits do you want to pay out in dividends?

We address dividend policy every year after our in the first quarter of our fiscal year and we anticipating addressing that again and know we usually like to stay between 20% and 25% of our income.

And our next question comes from Derek Ferber of FJ Capital Management. Please go ahead.

Just had a quick question with regard to M&A, you had mentioned earlier that you’ve taken a look at a handful of deals and didn’t not submit any bips, you’re kind of being a little ways in 2015 based on what you’ve seen so far would you say it's probably lower probability event of having deal announced this year at least or do you think M&A talks are still somewhat robust.

There is still a lot of conversation going on. It's just a matter of whether buyers and sellers are going to reach terms if they can agree to, you know there is some buyers out there - some sellers that just have expectations that the way that we look at deals they just don’t work. And I think there is going to be plenty of activity and discussion, it's just a matter whether the buyer and sellers can get to the right price, but as far as activity wise there is going to be a lot of discussion.

And then just a quick follow-up question with regard to the question that Andrew had asked earlier on purchase accounting. Can you all quantify the amount of purchase accounting accretion that you think that you all will lose over the next call it, 4 to 5 quarters?

I don’t have the projections in front of me here. We really pale down to a pretty immaterial amount on everything other than People and Peoples was a very short portfolio that number is going to tail-off relatively quickly but is it going to be half of what it is today in four quarters, I don’t know what that number is. Some of it is a little bit really dependent on our purchased and impaired loans, what happens specifically with our projections on those, with the non-impaired loans it's going to be a pretty smooth glide past to zero over the next couple of years.

Okay, and then one more question and I will hop off. It sounded you all put up the shelf earlier and based on your comments earlier just kind of a clarification question, am I interpreting it correctly when suddenly you all said that in less than acquisition opportunities, source is you all will probably not be looking to raise additional capital this year.

That would be correct. We’re hoping to be able to utilize our existing capital resources and that to be able to not have to shelf at this point unless the acquisition opportunity arises.

[Operator Instructions]. At this time I'm showing no further questions. I would like to turn the conference back over to Matt Funke for any closing remarks.

All right, thank you, Dan and we appreciate everyone who called in and participated and we will talk to you again in three months. Thank you.