smbc-11k2013.htm
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 11-K


(Mark One)

[X]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: June 30, 2016

OR

[  ]
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _________________

Commission file number:   000-23406


A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:

Southern Bank 401(k) Retirement Plan


B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:


Southern Missouri Bancorp, Inc.
2991 Oak Grove Road
Poplar Bluff, MO  63901

 

 

 

SOUTHERN BANK 401(k) RETIREMENT PLAN

Required Information

The Southern Bank 401(k) Retirement Plan (the “Plan”) is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and for purposes of satisfying the requirements of Form 11-K has included for filing herewith the Plan financial statements and schedules prepared in accordance with the financial reporting requirements of ERISA. Attached to this report as Exhibit 23 is the consent of BKD, LLP.

 



 



Southern Bank 401(k) Retirement Plan
 
EIN 43-0462350     PN001
 
Report of Independent Registered Public Accounting Firm and Financial Statements
 
June 30, 2016 and 2015
 
 
 
 
 
 
 
 
 



 
Southern Bank 401(k) Retirement Plan
 
June 30, 2016 and 2015
 

 
Contents
 

 
Report of Independent Registered Public Accounting Firm
1
   
Financial Statements
 
Statements of Net Assets Available for Benefits
2
Statement of Changes in Net Assets Available for Benefits
3
Notes to Financial Statements
4
   
Supplemental Schedule
 
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
13

 
 
 
 
 
 
 
 
 

 
 

Report of Independent Registered Public Accounting Firm



Audit Committee
Southern Bank 401(k) Retirement Plan
Poplar Bluff, Missouri


We have audited the accompanying statements of net assets available for benefits of Southern Bank 401(k) Retirement Plan (the "Plan") as of June 30, 2016 and 2015, and the related statement of changes in net assets available for benefits for the year ended June 30, 2016.  These financial statements are the responsibility of the Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing auditing procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting.  Accordingly, we express no such opinion.  Our audits also included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Southern Bank 401(k) Retirement Plan as of June 30, 2016 and 2015, and the changes in net assets available for benefits for the year ended June 30, 2016, in conformity with accounting principles generally accepted in the United States of America.
The supplemental information in the accompanying Schedule of Assets (Held at End of Year) as of June 30, 2016, has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements.  The supplemental information is presented for the purpose of additional analysis and is not a required part of the financial statements but includes supplemental information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  The supplemental information is the responsibility of the Plan's management.  Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information.  In forming our opinion on the supplemental information in the accompanying schedule, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  In our opinion, the supplemental information in the accompanying schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

/s/ BKD LLP

St. Louis, Missouri
December 9, 2016

 
 
 

 



 
Southern Bank 401(k) Retirement Plan
Statements of Net Assets Available for Benefits
June 30, 2016 and 2015
 
   
2016
   
2015
 
             
Investments, At Fair Value
 
$
16,584,392
   
$
15,665,555
 
                 
Receivables
               
Notes receivable from participants
   
471,491
     
379,782
 
Employer's contributions
   
458,193
     
392,295
 
                 
     
929,684
     
772,077
 
                 
                 
Net Assets Available for Benefits
 
$
17,514,076
   
$
16,437,632
 


 
 
 
 
 
 
 
See Notes to Financial Statements
 

 
2

 
 
Southern Bank 401(k) Retirement Plan
Statement of Changes in Net Assets Available for Benefits
Year Ended June 30, 2016

       
Investment Income
     
Net appreciation in fair value of investments
 
$
1,561,802
 
Interest and dividends
   
514,498
 
         
Net investment income
   
2,076,300
 
         
Interest Income on Notes Receivable from Participants
   
17,983
 
         
Contributions
       
Participants
   
408,994
 
Employer
   
928,825
 
Rollovers
   
62,090
 
         
             Total contributions
   
1,399,909
 
         
             Total additions
   
3,494,192
 
         
Deductions
       
Benefits paid to participants
   
2,415,823
 
      Administrative fees
   
1,925
 
         
             Total deductions
   
2,417,748
 
         
      Net Increase
   
1,076,444
 
         
Net Assets Available for Benefits, Beginning of Year
   
16,437,632
 
         
Net Assets Available for Benefits, End of Year
 
$
17,514,076
 
         

 
 
See Notes to Financial Statements

3


Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

Note 1:
Description of the Plan
The following description of Southern Bank 401(k) Retirement Plan (Plan) provides only general information.  Participants should refer to the Plan Document for a more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan sponsored by Southern Bank (the Bank), a wholly-owned subsidiary of Southern Missouri Bancorp, Inc. (the Company), for the benefit of its employees who have at least one year of service and are age 21 or older.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
The Bank also maintained a qualified Employee Stock Ownership Plan (ESOP).  The Bank merged the ESOP into the Plan effective October 1, 2010.  Participant accounts under the ESOP are maintained as a separate source (ESOP Source) under the Plan with ESOP provisions concerning matters such as vesting, withdrawals, loans, dividends, and distributions remaining in effect.
The Plan is administered by the Bank.  Capital Bank and Trust is the trustee of the Plan.  American Funds serves as Plan custodian.
Contributions
The Plan permits eligible employees to make voluntary contributions to the Plan up to the annual limit set by the Internal Revenue Service (IRS).  Employee rollover contributions are also permitted.  Participants who have attained age 50 before the end of the calendar year are eligible to make catch-up contributions.
The Bank makes safe harbor matching contributions of 100% of employees' salary deferral amounts on the first 3% of employees' compensation, and 50% of employees' salary deferral amounts on the next 2% of employees' compensation.  The Bank also makes profit-sharing contributions.  Bank profit-sharing contributions are discretionary as determined by the Bank's Board of Directors.  Contributions are subject to certain limitations.  Forfeitures are used to reduce Bank contributions.
Participant Investment Account Options
Investment account options available include various funds and common stock of the Company.  Each participant has the option of directing his contributions into any of the separate investment accounts and may change the allocation daily.
 
4

 
Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015


Participant Accounts
Each participant's account is credited with the participant's contribution, the Bank's contribution, and plan earnings, and is charged with an allocation of administrative expenses.  Allocations are based on participant earnings or account balances, as defined.  The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
Vesting
Participants are immediately vested in their voluntary contributions plus earnings thereon.  Bank matching contributions and ESOP Source contributions are vested at a rate of 20% per year of service beginning with completion of the second year of service.  A participant becomes fully vested with completion of their sixth year of service.  The non-vested balance is forfeited upon termination of service.  Forfeitures are used to reduce Bank contributions.
Payment of Benefits
Under the terms of the Plan, participants are entitled to receive the amount credited to their accounts upon normal retirement at the age of 65 or disability retirement.  Participants terminating employment prior to retirement are entitled to receive that portion of their account that is vested.  In the event of death, the participant's account becomes fully vested and is paid to the designated beneficiary.  Distributions under the Plan are payable in a lump sum or through installments.  Payments through installments are only available to Participants with a vested account balance in excess of $5,000 who terminate at normal retirement age or later.  At June 30, 2016 and 2015, Plan assets included no amounts allocated to accounts of terminated or retired participants who have elected to withdraw from the Plan but which had not yet been paid.
Forfeited Accounts
At June 30, 2016 and 2015, forfeited non-vested accounts totaled $4,216 and $3,791, respectively.  These accounts will be used to reduce future Bank contributions. The forfeitures totaling $4,216 were used to reduce employer contributions made during the 2017 plan year related to the 2016 employer contributions receivable. Also, in 2016, employer contributions were reduced by $5,352 from forfeited non-vested accounts.

 
 
5

 

Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

Notes Receivable from Participants
The Plan Document includes provisions authorizing loans from the Plan to active eligible participants.  Loans are made to any eligible participant demonstrating a qualifying need.  The minimum amount of a loan shall be $1,000.  The maximum amount of a participant's loans is determined by the available loan balance restricted to the lesser of $50,000 or 50% of the participant's vested account balance.  All loans are covered by demand notes and are repayable over a period not to exceed five years through payroll withholdings unless the participant is paying the loan in full.  Interest on the loans is fixed for the term of the loan at a rate one percentage point above the Wall Street Journal's published prime rate of interest on the first day of the month in which the loan was made.
Plan Termination
Although it has not expressed an intention to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan, subject to the provisions of ERISA.  In the event of plan termination, participants will become 100% vested in their accounts.

Note 2:
Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets and changes in net assets and disclosure of contingent assets and liabilities at the date of the financial statements.  Actual results could differ from those estimates.
Investment Valuation and Income Recognition
Quoted market prices, if available, are used to value investments.  Common stock is valued at the closing price reported on the active market on which the individual security is traded.  Mutual funds and the money market fund are valued at the net asset value (NAV) of shares held by the plan at year end.
Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.  Net appreciation includes the Plan's gains and losses on investments bought and sold as well as held during the year.
 
6

 
Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015
 

Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest.  Delinquent participant loans are reclassified as distributions based upon the terms of the plan document.
Plan Tax Status
The Plan operates under a non-standardized adoption agreement in connection with a prototype 401(k) profit-sharing plan and trust sponsored by American Funds Distributors, Inc.  This prototype plan document has been filed with the appropriate agency. The Plan has not obtained or requested a determination letter. However, the Plan Administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code and that the Plan was qualified and the related trust was tax exempt.
Payment of Benefits
Benefit payments to participants are recorded upon distribution.
Administrative Expenses
Administrative expenses may be paid by the Bank or the Plan, at the Bank's discretion.

Note 3:
New Accounting Pronouncements
In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-12, "I. Fully Benefit-Responsive Investment Contracts, II. Plan Investment Disclosures, III. Measurement Date Practical Expedient." Parts I and III of this ASU are not applicable to the Plan.  Part II of this ASU eliminates the requirements to disclose individual investments that represent five percent or more of net assets available for benefits and to disclose the net appreciation/depreciation in fair value of investments by investment type held.  The ASU also requires plans to disaggregate investments measured using fair value only by general type.  The ASU is effective retrospectively for annual periods beginning after December 15, 2015, with early adoption permitted.  The Plan's management has elected to early adopt ASU 2015-12, which is reflected in Note 5.  The adoption did not have a material effect on the Plan's statements of net assets available for benefits or statement of changes in net assets available for benefits.
 


7


Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

Note 4:
Related-Party and Party-in-Interest Transactions
Party-in-interest transactions include those with fiduciaries or employees of the Plan, any person who provides services to the Plan, an employer whose employees are covered by the Plan, a person who owns 50 percent or more of such an employer, or relatives of such persons.
The Plan allows participants to invest their account balances in shares of the Company.  The number of shares of common stock held by the Plan at June 30, 2016 and 2015 was 407,122 shares and 448,394 shares, respectively, and the Plan received dividends of $149,648 during the year ended June 30, 2016.
The plan incurs expenses related to general administrative and record keeping. The Company pays certain administrative expenses and accounting and auditing fees relating to the Plan and provides certain administrative services at no cost to the plan.

Note 5:
Disclosures About Fair Value of Plan Assets
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs.  There is a hierarchy of three levels of inputs that may be used to measure fair value:
Level 1
Quoted prices in active markets for identical assets
Level 2
Observable inputs other than Level 1 prices, such as quoted prices for similar assets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets
Level 3
Unobservable inputs that are supported by little or no market activity and significant to the fair value of the assets
Recurring Measurements
The following tables present the fair value measurements of assets recognized in the accompanying statements of net assets available for benefits measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2016 and 2015:
 
8

 
Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

         
June 30, 2016
 
         
Fair Value Measurements Using
 
   
Fair Value
   
Quoted Prices in Active Markets for Identical Assets
(Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
                         
                         
Company security
 
$
9,579,574
   
$
9,579,574
   
$
-
   
$
-
 
Mutual funds
   
6,549,368
     
6,549,368
     
-
     
-
 
Money market fund
   
455,450
     
455,450
     
-
     
-
 
   
$
16,584,392
   
$
16,584,392
   
$
-
   
$
-
 
                                 
                                 
                                 

         
June 30, 2015
 
         
Fair Value Measurements Using
 
   
Fair Value
   
Quoted Prices in Active Markets for Identical Assets
(Level 1)
   
Significant Other Observable Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
                         
                         
Company security
 
$
8,452,219
   
$
8,452,219
   
$
-
   
$
-
 
Mutual funds
   
6,985,427
     
6,985,427
     
-
     
-
 
Money market fund
   
227,909
     
227,909
     
-
     
-
 
   
$
15,665,555
   
$
15,665,555
   
$
-
   
$
-
 
                                 
                                 
                                 
 
 
9

 
Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying statements of net assets available for benefits, as well as the general classification of such assets pursuant to the valuation hierarchy.  There have been no significant changes in the valuation techniques during the year ended June 30, 2016.  In addition, the Plan had no assets measured at fair value on a nonrecurring basis.
Investments
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.

Note 6:
Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the financial statements at June 30, 2016 and 2015, to Form 5500:
   
2016
   
2015
 
             
Net assets available for benefits per the financial statements
 
$
17,514,076
   
$
16,437,632
 
Less: employer's contributions receivable
   
458,193
     
392,295
 
                 
Net assets available for benefits per Form 5500
 
$
17,055,883
   
$
16,045,337
 

The following is a reconciliation of contributions per the financial statements for the year ended June 30, 2016, to Form 5500:
   
2016
 
       
Contributions per the financial statements
 
$
1,399,909
 
Add: Employer's contributions receivable at June 30, 2015
   
392,295
 
Less: Employer's contributions receivable at June 30, 2016
   
(458,193
)
         
Contributions per Form 5500
 
$
1,334,011
 
         
 
 
10

 
Southern Bank 401(k) Retirement Plan
Notes to Financial Statements (continued)
June 30, 2016 and 2015

 
Note 7:
Risks and Uncertainties
The Plan invests in various investment securities.  Investment securities are exposed to various risks such as interest rate, market and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the participants' account balances and the amounts reported in the statements of net assets available for benefits.
 
 
 
 
 
 
 
 
 
 
 
11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Supplemental Schedule
 
 
 
 
 
 
 
 
 
 
 
 

 
12

 
Southern Bank 401(k) Retirement Plan
EIN 43-0462350     PN001
Schedule H, Line 4i – Schedule of Assets (held at end of year)
June 30, 2016

   
Investment Type and Issuer
 
Description of Investment
 
Current Value
 
                   
 
*
 
American Funds Money Market Fund
   
455,450
 
shares
 
$
455,450
 
                         
     
Mutual Funds
                 
 
*
 
   American Funds Bond Fund of America
   
12,290
 
shares
   
161,243
 
 
*
 
   American Funds Intermediate Bond Fund of America
   
14,791
 
shares
   
202,633
 
 
*
 
   American Funds Income Fund of America
   
4,840
 
shares
   
102,423
 
     
   Franklin Income Fund
   
27,957
 
shares
   
60,108
 
 
*
 
   American Funds American Balanced Fund
   
8,420
 
shares
   
206,554
 
     
   Invesco Van Kampen Comstock Fund
   
8,830
 
shares
   
189,584
 
     
   Templeton Growth Fund
   
4,639
 
shares
   
97,458
 
 
*
 
   American Funds Fundamental Investors
   
5,581
 
shares
   
289,400
 
 
*
 
   American Funds Investment Company of America
   
17,943
 
shares
   
634,096
 
 
*
 
   American Funds Growth Fund of America
   
17,126
 
shares
   
696,344
 
 
*
 
   American Funds New Perspective Fund
   
12,452
 
shares
   
431,197
 
 
*
 
   American Funds New World Fund
   
5,734
 
shares
   
288,931
 
     
   Putnam Voyager Fund
   
2,758
 
shares
   
68,983
 
     
   Victory Established Value Fund
   
21,037
 
shares
   
691,692
 
     
   Franklin Small Cap Growth Fund
   
23,948
 
shares
   
382,209
 
 
*
 
   American Funds 2010 Target Date Fund
   
4,345
 
shares
   
44,406
 
 
*
 
   American Funds 2015 Target Date Fund
   
6,554
 
shares
   
70,721
 
 
*
 
   American Funds 2020 Target Date Fund
   
40,826
 
shares
   
467,463
 
 
*
 
   American Funds 2025 Target Date Fund
   
18,238
 
shares
   
217,033
 
 
*
 
   American Funds 2030 Target Date Fund
   
23,229
 
shares
   
286,883
 
 
*
 
   American Funds 2035 Target Date Fund
   
34,513
 
shares
   
426,231
 
 
*
 
   American Funds 2040 Target Date Fund
   
24,142
 
shares
   
302,504
 
 
*
 
   American Funds 2045 Target Date Fund
   
9,570
 
shares
   
120,680
 
 
*
 
   American Funds 2050 Target Date Fund
   
5,343
 
shares
   
65,928
 
 
*
 
   American Funds 2055 Target Date Fund
   
2,919
 
shares
   
44,664
 
                         
 
*
 
Southern Missouri Bancorp, Inc. Common Stock (SMBC)
   
407,122
 
shares
   
9,579,574
 
                         
 
*
 
Notes Receivable from Participants
 
Various maturity dates through 2021; interest rates up to 5.25%
   
471,491
 
                      
$
17,055,883
 
                         
     
* Party-in-interest
                 
                         

13

 
 
SIGNATURES
 
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

   SOUTHERN BANK 401(k) RETIREMENT PLAN
   
 
  By:  Southern Bank, as Plan Administrator 
     
Date  December 9, 2016
By: 
/s/ Matt Funke
  Name: 
Matt Funke
  Title: 
Chief Financial Officer
   
 
 
 
 
 
 
 
 
 
 
 
 
 

 
14