Good afternoon, and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Matt Funke, Chief Financial Officer. Please go ahead.

Thank you, Laura. Good afternoon, everyone. This is Matt Funke, CFO with Southern Missouri Bancorp. The purpose of this call is to review the information, and data presented in our quarterly earnings release dated Monday, January 25, 2016, and to take your questions. We may make certain forward-looking statements during today's call, and we refer you to the cautionary statement regarding forward-looking statements contained in the press release. I will begin with highlights from the quarter. The December quarter is the second quarter of our 2016 fiscal year. We earned $0.56 diluted in the December quarter, that's up $0.08 from the $0.48 we reported for the September 2015 quarter, and up $0.11 from the $0.45 diluted that we earned on a split adjusted basis in the prior year's second quarter. The current quarter's results included some non-recurring non-interest income items and a higher level of fair value discount accretion resulting from resolution of a purchase credit impaired loan. In December of ’14, we closed on the Peoples Bank acquisition and we continue to report net interest income resulting from the fair value discount accretion on loans, and a smaller amount of fair value premium amortization on time deposits related to that acquisition. In the current quarter, it amounted to $557,000. In the year ago quarter, ended December, 2014, which was the first full quarter following the acquisition, we recognized accretion of $722,000. In the linked-quarter ended September 2015, discount accretion provided a benefit to net interest income of 412,000. So the figure has been trending down sequentially, but it was up in the current period as we resolved a purchase credit impaired loan with the receipt of pay-off that exceeded the loan’s carrying value. We’d expect the impact of this discount accretion to likely be lower in the coming quarters.…

All right, thank you, Matt. The first item that I want to discuss is just our lending activity. Our loan growth this last quarter was slightly below our expectations, but we are still pleased with having positive loan growth of a little over $10 million. That $10 million is better than what we did in the same quarter of the prior year when our loan portfolio actually declined by 5 million. The December quarter we typically have a fair amount of back pay-downs which happened again this quarter and that does impact our ability to have loan growth in the December quarter. Our loan originations and renewals totaled $123 million this quarter, versus $110 million in the same quarter of last year. Again our growth was limited impart due to pay-downs in our ag portfolio. When we look at the composition of our loan growth for the quarter, we had multifamily loans growing a little over $9 million, our commercial real estate balances grew around $6 million, while residential construction, C&I and non-owner occupied residential real estate grew a little bit over $4 million amongst those three categories. Our Ag commercial and C&I portfolio was down approximately $10 million and Ag real estate was up 3 million. When we look at what regions we are generating our growth from, our Southeast Missouri region has generated growth of a little over $19 million for the first six months of our fiscal year, while our Arkansas region is close to $14 million and Southwest Missouri is having shrinkage of a little less than $9 million. We are pleased that our Southeast Missouri region was able to continue to grow this quarter, in spite of the agricultural pay-downs that we had in this area. If you look over the last quarter, our Southwest…

Okay, great. Laura if you would at this time, please indicate again how folks can queue for questions and we'll be prepared to take those.

A couple of questions from me, first Matt I think you went over expenses relative to the year ago quarter, but it looks like on a sequential basis they were up around 180,000. I'm just curious what is causing that difference?

The current quarter we had some charges in there for liquidation of foreclosed real estate, and a little bit of an uptick in our expense there.

Got you, okay. So you are a little bit outside this quarter because of the real estate, okay. And then can you just talk a little bit on the margins, it sounds like that loan yield pressure is brewing, but just kind of curious on your thoughts there on a core basis?

Can you repeat the first part of that?

It is, your thoughts on the core margin going forward. It sounds like there is still some loan yield pressures, but just some like, how do you look at the core margins for the coming quarters?

We think it ought to be relatively steady. This March quarter is always a little bit tougher for us seasonally, but other than that we think what Greg mentioned that we didn’t see the relief we hoped for in some of the pricing competition without a swap curve move since the Fed move, but we did pick up a little bit of benefit in our loan growth that we currently have booked with the prime in trade that won't be substantial, but it will give us maybe a little bit of relief there. We would probably see continued upticks in the deposit portfolio it makes us wonder if that are two at a time for here, but I would think we would see less compression over the coming year than what we’ve seen in the last year, without giving the two harder numbers there.

No it's great. Thank you so much.

Andrew on the liquidation that one piece of real estate owned, we had a loss of approximately $200,000 on that, so that was a big part of that number.

[Operator Instructions] And we’re showing no further questions. I would like to turn the conference back over to Matt Funke for any closing remarks.

Okay. Thank you, Laura. And we thank everyone for their interest. Happy to close out the calendar year on a pretty good note and we'll talk to you again in three months.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.