Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) Q2 2023 Earnings Call Transcript

Kelly Motta: Understood. Thanks so much. So, just on a high level, your Citizens transaction gets you into Kansas City. Just wondering, I know it’s early and you are still working in the month ahead to convert and merge banks subs. But wondering how you are feeling about the Kansas City market, if there is €“ you see this as a good jumping off point to add there as well as kind of any other markets where you may be looking to add? I know Greg, in your prepared remarks, M&A is slower right now, but I am not sure if de novos is something you would be interested in as well, or that would be primarily through M&A in the future, but just interested in some high-level thoughts there.

Greg Steffens: We are very excited about the Kansas City market. We have hired a market president that is based in the Kansas City market that we have added to what would have been Citizens locations. We are also looking forward to the opportunity to add some personnel in some of the rural markets as citizens operated in. And we feel like our product mix and the addition of several products that Citizens did not have will result in some real opportunities for some loan growth in those market footprints. We are probably not anticipating much in the March quarter just from standpoint of integration and the change. But as we bring those personnel online, we would anticipate it to enhance our long-term growth opportunities. And I think organic or de novo branching will be something that will be pretty limited in nature.

And we might add a facility at some point in time, but it’s not our primary focus. And we will be changing some of where Citizens operated out of. It wouldn’t surprise me if we wouldn’t relocate an office. But I really wouldn’t consider that as much de novo branching is just relocation. And that will take a period of time for that to occur as well.

Kelly Motta: Great. Thanks so much for answering the question. I will get back.

Greg Steffens: Thanks Kelly.

Operator: Thank you, Kelly. We have no further questions on the line. I will now hand back to Lora for closing remarks.

Lora Daves: Thank you, Glenn. We just want to say thank you to everyone who has participated and look forward to future calls. Greg or Matt, do you have anything to add?

Greg Steffens: Thank you everyone and we will look forward to our update next quarter. Everybody, have a good day.