Good afternoon, and welcome to the Southern Missouri Bancorp Quarterly Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. Matt Funke, Chief Financial Officer. Please go ahead.

Thank you, Phil, and welcome, everyone. This is Matt Funke with Southern Missouri Bancorp. The purpose of our call today is to review the information and data we presented in our quarterly earnings release dated Monday, July 24, 2017, 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 such statements contained in the press release. So thanks, again for joining us. I'll begin by reviewing the preliminary results highlighted in our quarterly earnings release. The June quarter is the fourth quarter of our 2017 fiscal year. We earned $0.49 diluted in the June quarter, that is the same result from the June quarter a year ago and it's down $0.04 from the $0.53 diluted that we earned in the linked March quarter. The current period includes some nonrecurring items, which we'll touch on as we move through the areas of the income statement. Some were positive and some were negative and the onetime expenses did outweigh the onetime benefits. The linked March quarter had some larger nonrecurring benefits, which we discussed on last quarter's call and we'll try to highlight those as we move through the income statement also. On the balance sheet, the asset growth in the June quarter was primarily attributable to the mid-June acquisition of Capaha Bank. Total assets were up $212 million, and included loan growth of $172 million. Capaha made up $152 million of that loan growth, and they were also the primary reason for most other asset category increases. Compared to June 30, 2016, gross loans were up $264 million and if you take out the $152 million from Capaha, we'd show an increase of $112 million or just under 10% for the year. The investment portfolio continues to grow…

Thank you, Matt, and good afternoon, everyone. I'm going to start off with lending. And our net loan growth for the year, again, totaled $262 million or up 23%. Included in that total again was $152 million in loans from Capaha. Outside of the Capaha acquisition and based on our internally generated branch profitability reports, our average loan balances for the year were up $116 million or 10.2%. So we slightly exceeded our internal goals for loan growth of 8% to 10%. Our strong loan growth was attributed to continuing to build on good relationships that we have with existing and new customers and the investment we made in some additional loan staff over the year. Our average loans grew $24 million in the June quarter from the March quarter, and the majority of this loan growth over the last quarter was led by commercial real estate and C&I type loans. Including our Capaha acquisition, the composition of loan portfolio has changed slightly as our non-owner-occupied nonresidential real estate has grown by $91 million while ag real estate has gone up $38 million, commercial loans were up $32 million, non-owner-occupied one- to four-family is up $22 million and multifamily loans were up $21 million. The remainder of the increase was spread over a variety of different loan types. Basically, much of the Capaha portfolio kind of followed what percentages of loan portfolio we had prior to the acquisition. For our internal loan growth for the year, it was led considerably by our West region. Our West region, which includes the Springfield, Missouri market area was up nearly $70 million, or 19.5%; followed by our South region, which was up $28 million, or nearly 10%; while our legacy location in the East region was up $18 million, or nearly 4%. The…

All right. Phil, if you would, please remind folks how they could queue for questions, and we'll be ready to take those.

[Operator Instructions] The first question comes from Andrew Liesch with Sandler O'Neill.

Just a question on the loan pipeline being up here near $81 million. How much of that's from Capaha versus just the legacy franchise from before the deal?

The majority of it is through our existing franchise before Capaha. Capaha has not contributed much at this point.

Okay. That's still heavily weighted towards the Western region and the Southern region, that pipeline?

That is correct.

And then just related to M&A, you mentioned you're looking at smaller deals but, certainly, with this capital you have, you can do something larger. So I'm just thinking, is that something you'd be considering? And any, like, geography that you would be looking to expand to if not a rural transaction with lots of deposits?

We would -- we're primarily looking within our footprint or any market that would be adjacent to our footprint, like the Capaha transaction was just right beside where we operate in. We would consider that type of opportunity. We're not looking to expand into a completely different area. Our longer-term objective is a still to look to be from Kansas City to St. Louis, down as far South as maybe Memphis and as far to the West as Little Rock. So that's kind of our geographic area that we're looking at. As you get outside of that, the pricing and the benefits to us would have to be greater to take the risk of going outside of our anticipated footprint.

[Operator Instructions] This concludes our question-and-answer session. I'd like to turn the conference back over to Matt Funke for any closing remarks.

Okay. Thanks again, and thank you to everyone for joining us. I appreciate your interest in the company, and we'll talk again in 3 months.

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