Great Southern Bancorp, Inc. Reports Preliminary First Quarter Earnings of $1.30 Per Diluted Common Share
Great Southern Bancorp, Inc. (GSBC) reported preliminary earnings of $1.30 per diluted share for Q1 2022, totaling $17 million for common shareholders. This reflects a decrease from $1.36 per share in Q1 2021.
Interest income dropped to $415,000 from $1.2 million due to reduced PPP loan fees. Total loans grew by $103.7 million (2.5%) to $4.18 billion, bolstered by multifamily and commercial loans. Non-performing assets decreased to $5.2 million (0.10% of total assets). Capital ratios remain strong, with a Tier 1 Capital Ratio of 12.5%.
- Earnings of $1.30 per diluted share, despite a decrease from last year.
- Total loans increased by $103.7 million (2.5%).
- Non-performing assets reduced to $5.2 million (down from $6.0 million).
- Strong capital position with Tier 1 Capital Ratio at 12.5%.
- Net interest income fell by $823,000 (approximately 1.9%) compared to Q1 2021.
- Significant drop in income from PPP loan fees ($415,000 vs. $1.2 million).
- Non-interest income decreased by $560,000 primarily due to lower gains on loan sales.
Preliminary Financial Results and Other Matters for the Quarter Ended March 31, 2022:
- Significant Income and Expense Items: During the three months ended March 31, 2022, the Company recorded interest income of
$415,000 related to net deferred fee income accretion on Paycheck Protection Program (PPP) loans. This compared to$1.2 million of net fee income recorded in the three months ended March 31, 2021. Net fees are accreted over the loan term with remaining deferred fees recorded in interest income when the loans are paid off by the borrower or by the Small Business Administration (SBA) when the loans are forgiven. At March 31, 2022, remaining net deferred fees related to approximately$1.5 million of PPP loans totaled$88,000. In addition, for the three months ended March 31, 2022, the Company’s recorded$500,000 of non-interest income due to a one-time bonus award from our debit card processor based on meeting certain volume thresholds. - Total Loans: Total loans, excluding mortgage loans held for sale, increased
$103.7 million , or2.5% , from$4.08 billion at December 31, 2021 to$4.18 billion at March 31, 2022. This increase was primarily in other residential (multi-family) loans, commercial real estate loans and one- to four-family residential loans, partially offset by a decrease in construction loans. - Asset Quality: Non-performing assets and potential problem loans totaled
$7.1 million at March 31, 2022, a decrease of$938,000 from$8.0 million at December 31, 2021. At March 31, 2022, non-performing assets were$5.2 million (0.10% of total assets), a decrease of$821,000 from$6.0 million (0.11% of total assets) at December 31, 2021. - Net Interest Income: Net interest income for the first quarter of 2022 decreased
$823,000 (or approximately1.9% ) to$43.3 million compared to$44.1 million for the first quarter of 2021. Net interest margin was3.43% for the quarter ended March 31, 2022, compared to3.41% for the first quarter of 2021. - Capital: The capital position of the Company continues to be strong, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of March 31, 2022, the Company’s Tier 1 Leverage Ratio was
11.2% , Common Equity Tier 1 Capital Ratio was12.0% , Tier 1 Capital Ratio was12.5% , and Total Capital Ratio was15.3% . In January 2022, the Company’s Board of Directors authorized the purchase of up to one million shares of the Company’s common stock. As of April 19, 2022, approximately 750,000 shares remained available in our stock repurchase authorization.
SPRINGFIELD, Mo., April 20, 2022 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, today reported that preliminary earnings for the three months ended March 31, 2022, were
For the quarter ended March 31, 2022, annualized return on average common equity was
Great Southern President and CEO Joseph W. Turner commented, “First quarter earnings were solid. We recognize that there’s continued economic and societal uncertainty ahead, but we will remain focused on our customers’ needs and operate with a long-view mindset.
“In the first quarter of 2022, we earned
“During the first quarter, loan production and activity in our markets was quite vigorous, but repayment headwinds continue periodically. Total loans, excluding mortgage loans held for sale, increased about
Turner added, “Credit quality metrics remained excellent during the first quarter. At March 31, 2022, non-performing assets were
“With our strong capital position and in our effort to enhance long-term stockholder value, the Company continued to repurchase shares of our common stock during the first quarter. Approximately 419,000 shares at an average price of
Selected Financial Data:
| (In thousands, except per share data) | Three Months Ended March 31, | ||||||
| 2022 | 2021 | ||||||
| Net interest income | $ | 43,266 | $ | 44,089 | |||
| Provision (credit) for credit losses on loans and unfunded commitments | (193 | ) | (374 | ) | |||
| Non-interest income | 9,176 | 9,736 | |||||
| Non-interest expense | 31,268 | 30,321 | |||||
| Provision for income taxes | 4,380 | 5,010 | |||||
| Net income and net income available to common shareholders | $ | 16,987 | $ | 18,868 | |||
| Earnings per diluted common share | $ | 1.30 | $ | 1.36 | |||
NET INTEREST INCOME
Net interest income for the first quarter of 2022 decreased
Additionally, the Company’s net interest income included accretion of net deferred fees related to PPP loans originated in 2020 and 2021. The amount of net deferred fees recognized in interest income was
In October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was
The Company entered into an interest rate swap transaction, with an effective date of March 1, 2022, as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was
For additional information on net interest income components, see the “Average Balances, Interest Rates and Yields” tables in this release.
NON-INTEREST INCOME
For the quarter ended March 31, 2022, non-interest income decreased
- Net gains on loan sales: Net gains on loan sales decreased
$1.6 million compared to the prior year quarter. The decrease was due to a decrease in originations of fixed-rate single-family mortgage loans during the 2022 period compared to the 2021 period. Fixed rate single-family mortgage loans originated are generally subsequently sold in the secondary market. These loan originations increased substantially when market interest rates decreased to historically low levels in 2020 and 2021. As a result of the significant volume of refinance activity in 2020 and 2021, and as market interest rates have moved higher in the first quarter of 2022, mortgage refinance volume has decreased and loan originations and related gains on sales of these loans have decreased substantially. - Point-of-sale and ATM fees: Point-of-sale and ATM fees increased
$606,000 compared to the prior year period. This increase was almost entirely due to increased customer debit card transactions in the 2022 period compared to the 2021 first quarter. In the latter half of 2021 and in the first quarter of 2022, debit card usage by customers rebounded and was back to normal levels, and in many cases, increased levels of activity. - Other income: Other income increased
$255,000 compared to the prior year quarter. In the 2022 period, the Company recorded a one-time bonus of$500,000 from its card processor as a result of achieving certain benchmarks related to debit card activity.
NON-INTEREST EXPENSE
For the quarter ended March 31, 2022, non-interest expense increased
- Salaries and employee benefits: Salaries and employee benefits increased
$960,000 from the prior year quarter. A significant amount of this increase related to normal annual merit increases in various lending and operations areas. In 2022, many of these increases were larger than in previous years due to the current employment environment. In addition, the new Phoenix loan office was opened in the first quarter of 2022. Lastly, certain loan origination compensation costs were deferred under accounting standards in the 2021 period that related primarily to the origination of PPP loans; therefore, more costs were deferred in the 2021 period versus the 2022 period.
Other expense categories experienced smaller increases and decreases compared to the prior year quarter, including a
The Company’s efficiency ratio for the quarter ended March 31, 2022, was
INCOME TAXES
For the three months ended March 31, 2022 and 2021, the Company's effective tax rate was
CAPITAL
As of March 31, 2022, total stockholders’ equity and common stockholders’ equity were each
In addition, included in stockholders’ equity at March 31, 2022, were realized gains (net of taxes) on the Company’s terminated cash flow hedge (interest rate swap), totaling
Also included in stockholders’ equity at March 31, 2022, was an unrealized loss (net of taxes) on the Company’s outstanding cash flow hedge (interest rate swap) totaling
On a preliminary basis, as of March 31, 2022, the Company’s Tier 1 Leverage Ratio was
In January 2022, the Company’s Board of Directors authorized the purchase of up to one million shares of the Company’s common stock. As of April 19, 2022, a total of approximately 750,000 shares were available in our stock repurchase authorization.
During the three months ended March 31, 2022, the Company repurchased 419,215 shares of its common stock at an average price of
LOANS
Total net loans, excluding mortgage loans held for sale, increased
For further information about the Company’s loan portfolio, please see the quarterly loan portfolio presentation available on the Company’s Investor Relations website under “Presentations.”
Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):
| March 31, 2022 | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||
| Closed non-construction loans with unused available lines | ||||||||
| Secured by real estate (one- to four-family) | $ | 185,101 | $ | 175,682 | $ | 164,480 | $ | 155,831 |
| Secured by real estate (not one- to four-family) | — | 23,752 | 22,273 | 19,512 | ||||
| Not secured by real estate - commercial business | 89,252 | 91,786 | 77,411 | 83,782 | ||||
| Closed construction loans with unused available lines | ||||||||
| Secured by real estate (one-to four-family) | 75,214 | 74,501 | 42,162 | 48,213 | ||||
| Secured by real estate (not one-to four-family) | 1,089,844 | 1,092,029 | 823,106 | 798,810 | ||||
| Loan commitments not closed | ||||||||
| Secured by real estate (one-to four-family) | 109,472 | 53,529 | 85,917 | 69,295 | ||||
| Secured by real estate (not one-to four-family) | 212,264 | 146,826 | 45,860 | 92,434 | ||||
| Not secured by real estate - commercial business | 8,223 | 12,920 | 699 | — | ||||
| $ | 1,769,370 | $ | 1,671,025 | $ | 1,261,908 | $ | 1,267,877 |
DEPLOYMENT OF CASH EQUIVALENTS
During the three months ended March 31, 2022, the mix of the Company’s assets shifted somewhat, with net increases in outstanding loan balances and investment securities. The Company used excess funds that were previously held on account at the Federal Reserve Bank to fund the increases in loans and investments. Investments increased
PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES
The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2021. The CECL methodology replaces the incurred loss methodology with a lifetime “expected credit loss” measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts.
Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in the national unemployment rate, commercial real estate price index, housing price index and national retail sales index.
Worsening economic conditions from the COVID-19 pandemic or similar events, higher inflation or interest rates, or other factors may lead to increased losses in the portfolio and/or requirements for an increase in provision expense. Management maintains various controls in an attempt to identify and limit future losses, such as a watch list of problem loans and potential problem loans, documented loan administration policies and loan review staff to review the quality and anticipated collectability of the portfolio. Additional procedures provide for frequent management review of the loan portfolio based on loan size, loan type, delinquencies, financial analysis, on-going correspondence with borrowers and problem loan work-outs. Management determines which loans are collateral-dependent, evaluates risk of loss and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level.
During the quarter ended March 31, 2022, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a
The Bank’s allowance for credit losses as a percentage of total loans was
ASSET QUALITY
At March 31, 2022, non-performing assets were
Compared to December 31, 2021, non-performing loans decreased
Activity in the non-performing loans categories during the quarter ended March 31, 2022, was as follows:
| Beginning Balance, January 1 | Additions to Non- Performing | Removed from Non- Performing | Transfers to Potential Problem Loans | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Payments | Ending Balance, March 31 | ||||||||||||
| (In thousands) | |||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||
| Subdivision construction | — | — | — | — | — | — | — | — | |||||||||||
| Land development | 468 | — | — | — | — | — | — | 468 | |||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | |||||||||||
| One- to four-family residential | 2,216 | — | — | (5 | ) | — | (36 | ) | (171 | ) | 2,004 | ||||||||
| Other residential | — | — | — | — | — | — | — | — | |||||||||||
| Commercial real estate | 2,006 | — | — | — | — | — | (233 | ) | 1,773 | ||||||||||
| Commercial business | — | — | — | — | — | — | — | — | |||||||||||
| Consumer | 733 | 32 | — | (4 | ) | — | (7 | ) | (30 | ) | 724 | ||||||||
| Total non-performing loans | $ | 5,423 | $ | 32 | $ | — | $ | (9 | ) | $ | — | $ | (43 | ) | $ | (434 | ) | $ | 4,969 |
| FDIC-assisted acquired loans included above | $ | 1,736 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (84 | ) | $ | 1,652 | ||
At March 31, 2022, the non-performing one- to four-family residential category included 34 loans, none of which were added during the current quarter. The largest relationship in the category totaled
Compared to December 31, 2021, potential problem loans decreased
Activity in the potential problem loans category during the quarter ended March 31, 2022, was as follows:
| Beginning Balance, January 1 | Additions to Potential Problem | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Payments | Ending Balance, March 31 | ||||||||||||
| (In thousands) | |||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||
| Subdivision construction | 15 | — | — | — | — | — | (3 | ) | 12 | ||||||||||
| Land development | — | — | — | — | — | — | — | — | |||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | |||||||||||
| One- to four-family residential | 1,432 | 5 | — | — | — | — | (55 | ) | 1,382 | ||||||||||
| Other residential | — | — | — | — | — | — | — | — | |||||||||||
| Commercial real estate | 210 | — | — | — | — | — | (5 | ) | 205 | ||||||||||
| Commercial business | — | — | — | — | — | — | — | — | |||||||||||
| Consumer | 323 | 12 | — | — | (14 | ) | (9 | ) | (48 | ) | 264 | ||||||||
| Total potential problem loans | $ | 1,980 | $ | 17 | $ | — | $ | — | $ | (14 | ) | $ | (9 | ) | $ | (111 | ) | $ | 1,863 |
| FDIC-assisted acquired loans included above | $ | 1,004 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (17 | ) | $ | 987 | ||
At March 31, 2022, the one- to four-family residential category of potential problem loans included 25 loans, one of which was added during the current quarter. The largest relationship in this category totaled
Activity in foreclosed assets and repossessions during the quarter ended March 31, 2022, excluding
| Beginning Balance, January 1 | Additions | ORE and Repossession Sales | Capitalized Costs | ORE and Repossession Write-Downs | Ending Balance, March 31 | |||||||||
| (In thousands) | ||||||||||||||
| One-to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||
| Subdivision construction | — | — | — | — | — | — | ||||||||
| Land development | 315 | — | (300 | ) | — | (15 | ) | — | ||||||
| Commercial construction | — | — | — | — | — | — | ||||||||
| One- to four-family residential | 183 | — | — | — | — | 183 | ||||||||
| Other residential | — | — | — | — | — | — | ||||||||
| Commercial real estate | — | — | — | — | — | — | ||||||||
| Commercial business | — | — | — | — | — | — | ||||||||
| Consumer | 90 | 78 | (130 | ) | — | — | 38 | |||||||
| Total foreclosed assets and repossessions | $ | 588 | $ | 78 | $ | (430 | ) | $ | — | $ | (15 | ) | $ | 221 |
| FDIC-assisted acquired assets included above | $ | 498 | $ | — | $ | (300 | ) | $ | — | $ | (15 | ) | $ | 183 |
At March 31, 2022, the one- to four-family residential category of foreclosed assets consisted of two properties (both of which were FDIC-assisted acquired assets). The land development category of foreclosed assets previously consisted of one property in central Iowa (this was an FDIC-assisted acquired asset) which was sold during the current quarter. The additions and sales in the consumer category were due to the volume of repossessions of automobiles, which generally are subject to a shorter repossession process.
BUSINESS INITIATIVES
Great Southern continues to monitor and respond to the effects of the COVID-19 pandemic. As always, the health, safety and well-being of our customers, associates and communities, while maintaining uninterrupted service, are the Company’s top priorities. Centers for Disease Control and Prevention (CDC) guidelines, as well as directives from federal, state and local officials, are being followed to make informed operational decisions, if necessary.
During 2022, the high-performing banking center in Kimberling City, Missouri, will be replaced with a newly constructed building on the same property at 14309 Highway 13. Customers will be served in a temporary building on the property during construction. The new office is expected to open in the fourth quarter of 2022. Including this office, the Company operates three banking centers in the Branson Tri-Lakes area of southwest Missouri.
In February 2022, the Company opened a new commercial loan production office (LPO) in Phoenix, Arizona, which represents the seventh LPO in the Company’s franchise. A local and highly-experienced lender was hired to manage the office. The new LPO will provide a wide variety of the Bank’s commercial lending services, including commercial real estate loans for new and existing properties and commercial construction loans. The Company expects to continue looking for opportunities to open additional LPOs in other markets during 2022.
The Company announced that its 2022 Annual Meeting of Stockholders, to be held at 10 a.m. Central Time on May 11, 2022, will be a virtual meeting over the internet and will not be held at a physical location. Stockholders will be able to attend the Annual Meeting via a live webcast. Holders of record of Great Southern Bancorp, Inc. common stock at the close of business on the record date, March 2, 2022, may vote during the live webcast of the Annual Meeting or by proxy. Please see the Company’s Notice of Annual Meeting and Proxy Statement available on the Company’s website, www.GreatSouthernBank.com, (click “About” then “Investor Relations”) for additional information about the virtual meeting.
The Company will host a conference call on Thursday, April 21, 2022, at 2:00 p.m. Central Time to discuss first quarter 2022 preliminary earnings. Individuals interested in listening to the conference call may dial 1.833.832.5121 and enter the passcode 3028168. The call will be available live or in a recorded version at the Company’s Investor Relations website, http://investors.greatsouthernbank.com.
Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company operates 93 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Chicago, Dallas, Denver, Omaha, Nebraska, Phoenix and Tulsa, Oklahoma. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market under the symbol "GSBC."
Forward-Looking Statements
When used in this press release and in documents filed or furnished by Great Southern Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company's other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “might,” “could,” “should,” "will likely result," "are expected to," "will continue," "is anticipated," “believe,” "estimate," "project," "intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions, known trends and statements about future performance, operations, products and services of the Company. The Company’s ability to predict results or the actual effects of future plans or strategies is inherently uncertain, and the Company’s actual results could differ materially from those contained in the forward-looking statements. The novel coronavirus disease, or COVID-19, pandemic has adversely affected the Company, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on the Company’s business, financial position, results of operations, liquidity, and prospects is uncertain. While general business and economic conditions have improved, increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect the Company’s revenues and the values of its assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to, COVID-19, could affect the Company in substantial and unpredictable ways.
Other factors that could cause or contribute to such differences include, but are not limited to: (i) expected revenues, cost savings, earnings accretion, synergies and other benefits from the Company's merger and acquisition activities might not be realized within the anticipated time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; (ii) changes in economic conditions, either nationally or in the Company's market areas; (iii) fluctuations in interest rates; (iv) the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; (v) the possibility of realized or unrealized losses on securities held in the Company's investment portfolio; (vi) the Company's ability to access cost-effective funding; (vii) fluctuations in real estate values and both residential and commercial real estate market conditions; (viii) the ability to adapt successfully to technological changes to meet customers' needs and developments in the marketplace; (ix) the possibility that security measures implemented might not be sufficient to mitigate the risk of a cyber-attack or cyber theft, and that such security measures might not protect against systems failures or interruptions; (x) legislative or regulatory changes that adversely affect the Company's business; (xi) changes in accounting policies and practices or accounting standards; (xii) results of examinations of the Company and Great Southern Bank by their regulators, including the possibility that the regulators may, among other things, require the Company to limit its business activities, change its business mix, increase its allowance for credit losses, write-down assets or increase its capital levels, or affect its ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; (xiv) costs and effects of litigation, including settlements and judgments; (xv) competition; (xvi) uncertainty regarding the future of LIBOR and potential replacement indexes; and (xvii) natural disasters, war, terrorist activities or civil unrest and their effects on economic and business environments in which the Company operates. The Company wishes to advise readers that the factors listed above and other risks described from time to time in documents filed or furnished by the Company with the SEC could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake-and specifically declines any obligation- to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
The following tables set forth selected consolidated financial information of the Company at the dates and for the periods indicated. Financial data at all dates and for all periods is unaudited. In the opinion of management, all adjustments, which consist only of normal recurring accrual adjustments, necessary for a fair presentation of the results at and for such unaudited dates and periods have been included. The results of operations and other data for the three months ended March 31, 2022 and 2021, and the three months ended December 31, 2021, are not necessarily indicative of the results of operations which may be expected for any future period.
| March 31, | December 31, | ||||
| 2022 | 2021 | ||||
| Selected Financial Condition Data: | (In thousands) | ||||
| Total assets | $ | 5,374,276 | $ | 5,449,944 | |
| Loans receivable, gross | 4,111,487 | 4,077,553 | |||
| Allowance for credit losses | 60,797 | 60,754 | |||
| Other real estate owned, net | 1,720 | 2,087 | |||
| Available-for-sale securities, at fair value | 461,375 | 501,032 | |||
| Held-to-maturity securities, at amortized cost | 227,441 | — | |||
| Deposits | 4,489,337 | 4,552,101 | |||
| Total borrowings | 250,793 | 238,713 | |||
| Total stockholders’ equity | 582,551 | 616,752 | |||
| Non-performing assets | 5,190 | 6,011 | |||
| Three Months Ended | Three Months Ended | ||||||||||
| March 31, | December 31, | ||||||||||
| 2022 | 2021 | 2021 | |||||||||
| (In thousands) | |||||||||||
| Selected Operating Data: | |||||||||||
| Interest income | $ | 46,673 | $ | 50,633 | $ | 47,948 | |||||
| Interest expense | 3,407 | 6,544 | 3,723 | ||||||||
| Net interest income | 43,266 | 44,089 | 44,225 | ||||||||
| Provision (credit) for credit losses on loans and unfunded commitments | (193 | ) | (374 | ) | (1,723 | ) | |||||
| Non-interest income | 9,176 | 9,736 | 9,198 | ||||||||
| Non-interest expense | 31,268 | 30,321 | 35,784 | ||||||||
| Provision for income taxes | 4,380 | 5,010 | 4,081 | ||||||||
| Net income and net income available to common shareholders | $ | 16,987 | $ | 18,868 | $ | 15,281 | |||||
| At or For the Three Months Ended | At or For the Three Months Ended | |||||||||
| March 31, | December 31, | |||||||||
| 2022 | 2021 | 2021 | ||||||||
| (Dollars in thousands, except per share data) | ||||||||||
| Per Common Share: | ||||||||||
| Net income (fully diluted) | $ | 1.30 | $ | 1.36 | $ | 1.14 | ||||
| Book value | $ | 45.65 | $ | 44.65 | $ | 46.98 | ||||
| Earnings Performance Ratios: | ||||||||||
| Annualized return on average assets | 1.27 | % | 1.38 | % | 1.13 | % | ||||
| Annualized return on average common stockholders’ equity | 11.14 | % | 12.18 | % | 9.74 | % | ||||
| Net interest margin | 3.43 | % | 3.41 | % | 3.37 | % | ||||
| Average interest rate spread | 3.31 | % | 3.23 | % | 3.25 | % | ||||
| Efficiency ratio | 59.62 | % | 56.33 | % | 66.98 | % | ||||
| Non-interest expense to average total assets | 2.34 | % | 2.22 | % | 2.64 | % | ||||
| Asset Quality Ratios: | ||||||||||
| Allowance for credit losses to period-end loans | 1.46 | % | 1.56 | % | 1.49 | % | ||||
| Non-performing assets to period-end assets | 0.10 | % | 0.19 | % | 0.11 | % | ||||
| Non-performing loans to period-end loans | 0.12 | % | 0.22 | % | 0.13 | % | ||||
| Annualized net charge-offs (recoveries) to average loans | 0.00 | % | (0.01 | )% | 0.00 | % | ||||
Great Southern Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except number of shares)
| March 31, 2022 | December 31, 2021 | |||
| Assets | ||||
| Cash | $ | 90,481 | $ | 90,008 |
| Interest-bearing deposits in other financial institutions | 262,557 | 627,259 | ||
| Cash and cash equivalents | 353,038 | 717,267 | ||
| Available-for-sale securities | 461,375 | 501,032 | ||
| Held-to-maturity securities | 227,441 | — | ||
| Mortgage loans held for sale | 1,672 | 8,735 | ||
| Loans receivable, net of allowance for credit losses of | 4,111,487 | 4,007,500 | ||
| Interest receivable | 12,458 | 10,705 | ||
| Prepaid expenses and other assets | 44,994 | 45,176 | ||
| Other real estate owned and repossessions (1), net | 1,720 | 2,087 | ||
| Premises and equipment, net | 131,742 | 132,733 | ||
| Goodwill and other intangible assets | 5,923 | 6,081 | ||
| Federal Home Loan Bank stock and other interest-earning assets | 6,564 | 6,655 | ||
| Current and deferred income taxes | 15,862 | 11,973 | ||
| Total Assets | $ | 5,374,276 | $ | 5,449,944 |
| Liabilities and Stockholders’ Equity | ||||
| Liabilities | ||||
| Deposits | $ | 4,489,337 | $ | 4,552,101 |
| Securities sold under reverse repurchase agreements with customers | 148,019 | 137,116 | ||
| Short-term borrowings | 2,942 | 1,839 | ||
| Subordinated debentures issued to capital trust | 25,774 | 25,774 | ||
| Subordinated notes | 74,058 | 73,984 | ||
| Accrued interest payable | 1,656 | 646 | ||
| Advances from borrowers for taxes and insurance | 7,325 | 6,147 | ||
| Accounts payable and accrued expenses | 33,178 | 25,956 | ||
| Liability for unfunded commitments | 9,436 | 9,629 | ||
| Total Liabilities | 4,791,725 | 4,833,192 | ||
| Stockholders’ Equity | ||||
| Capital stock | ||||
| Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding March 2022 and December 2021 -0- shares | — | — | ||
| Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding March 2022 – 12,760,972 shares; December 2021 – 13,128,493 shares | 128 | 131 | ||
| Additional paid-in capital | 40,004 | 38,314 | ||
| Retained earnings | 533,736 | 545,548 | ||
| Accumulated other comprehensive gain | 8,683 | 32,759 | ||
| Total Stockholders’ Equity | 582,551 | 616,752 | ||
| Total Liabilities and Stockholders’ Equity | $ | 5,374,276 | $ | 5,449,944 |
(1) At both March 31, 2022 and December 31, 2021 includes
Great Southern Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Three Months Ended | ||||||||||||
| March 31, | December 31, | ||||||||||||
| 2022 | 2021 | 2021 | |||||||||||
| Interest Income | |||||||||||||
| Loans | $ | 43,065 | $ | 47,709 | $ | 44,664 | |||||||
| Investment securities and other | 3,608 | 2,924 | 3,284 | ||||||||||
| 46,673 | 50,633 | 47,948 | |||||||||||
| Interest Expense | |||||||||||||
| Deposits | 2,173 | 4,222 | 2,498 | ||||||||||
| Securities sold under reverse repurchase agreements | 10 | 9 | 8 | ||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 1 | — | — | ||||||||||
| Subordinated debentures issued to capital trust | 118 | 113 | 111 | ||||||||||
| Subordinated notes | 1,105 | 2,200 | 1,106 | ||||||||||
| 3,407 | 6,544 | 3,723 | |||||||||||
| Net Interest Income | 43,266 | 44,089 | 44,225 | ||||||||||
| Provision (Credit) for Credit Losses on Loans | — | 300 | (3,000 | ) | |||||||||
| Provision (Credit) for Unfunded Commitments | (193 | ) | (674 | ) | 1,277 | ||||||||
| Net Interest Income After Provision (Credit) for Credit Losses and Provision (Credit) for Unfunded Commitments | 43,459 | 44,463 | 45,948 | ||||||||||
| Noninterest Income | |||||||||||||
| Commissions | 297 | 282 | 287 | ||||||||||
| Overdraft and Insufficient funds fees | 1,865 | 1,444 | 1,870 | ||||||||||
| POS and ATM fee income and service charges | 3,964 | 3,358 | 3,986 | ||||||||||
| Net gains on loan sales | 1,134 | 2,688 | 1,821 | ||||||||||
| Net realized gain on sale of available for sale securities | 7 | — | — | ||||||||||
| Late charges and fees on loans | 313 | 301 | 293 | ||||||||||
| Gain (loss) on derivative interest rate products | 152 | 474 | (29 | ) | |||||||||
| Other income | 1,444 | 1,189 | 970 | ||||||||||
| 9,176 | 9,736 | 9,198 | |||||||||||
| Noninterest Expense | |||||||||||||
| Salaries and employee benefits | 18,080 | 17,120 | 17,403 | ||||||||||
| Net occupancy and equipment expense | 6,878 | 7,062 | 8,150 | ||||||||||
| Postage | 787 | 878 | 777 | ||||||||||
| Insurance | 794 | 760 | 767 | ||||||||||
| Advertising | 555 | 585 | 885 | ||||||||||
| Office supplies and printing | 218 | 277 | 210 | ||||||||||
| Telephone | 850 | 881 | 861 | ||||||||||
| Legal, audit and other professional fees | 805 | 647 | 4,741 | ||||||||||
| Expense on other real estate and repossessions | 163 | 268 | 153 | ||||||||||
| Acquired deposit intangible asset amortization | 158 | 289 | 158 | ||||||||||
| Other operating expenses | 1,980 | 1,554 | 1,679 | ||||||||||
| 31,268 | 30,321 | 35,784 | |||||||||||
| Income Before Income Taxes | 21,367 | 23,878 | 19,362 | ||||||||||
| Provision for Income Taxes | 4,380 | 5,010 | 4,081 | ||||||||||
| Net Income and Net Income Available to Common Stockholders | $ | 16,987 | $ | 18,868 | $ | 15,281 | |||||||
| Earnings Per Common Share | |||||||||||||
| Basic | $ | 1.31 | $ | 1.38 | $ | 1.15 | |||||||
| Diluted | $ | 1.30 | $ | 1.36 | $ | 1.14 | |||||||
| Dividends Declared Per Common Share | $ | 0.36 | $ | 0.34 | $ | 0.36 | |||||||
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amounts of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Average balances of loans receivable include the average balances of non-accrual loans for each period. Interest income on loans includes interest received on non-accrual loans on a cash basis. Interest income on loans includes the amortization of net loan fees, which were deferred in accordance with accounting standards. Net fees included in interest income were
| March 31, 2022 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||||
| Yield/Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans receivable: | |||||||||||||||||||||
| One- to four-family residential | 3.21 | % | $ | 701,330 | $ | 6,041 | 3.49 | % | $ | 664,562 | $ | 6,516 | 3.98 | % | |||||||
| Other residential | 4.14 | 759,622 | 8,417 | 4.49 | 999,094 | 10,927 | 4.44 | ||||||||||||||
| Commercial real estate | 4.07 | 1,489,762 | 15,346 | 4.18 | 1,562,689 | 16,584 | 4.30 | ||||||||||||||
| Construction | 4.19 | 668,220 | 7,529 | 4.57 | 604,382 | 6,731 | 4.52 | ||||||||||||||
| Commercial business | 3.95 | 289,230 | 3,326 | 4.66 | 323,429 | 3,887 | 4.87 | ||||||||||||||
| Other loans | 4.57 | 204,510 | 2,244 | 4.45 | 237,499 | 2,891 | 4.94 | ||||||||||||||
| Industrial revenue bonds | 4.47 | 13,983 | 162 | 4.69 | 14,924 | 173 | 4.70 | ||||||||||||||
| Total loans receivable | 4.13 | 4,126,657 | 43,065 | 4.23 | 4,406,579 | 47,709 | 4.39 | ||||||||||||||
| Investment securities | 2.54 | 533,976 | 3,410 | 2.59 | 414,696 | 2,817 | 2.75 | ||||||||||||||
| Other interest-earning assets | 0.39 | 458,643 | 198 | 0.18 | 419,426 | 107 | 0.10 | ||||||||||||||
| Total interest-earning assets | 3.73 | 5,119,276 | 46,673 | 3.70 | 5,240,701 | 50,633 | 3.92 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 90,586 | 94,210 | |||||||||||||||||||
| Other non-earning assets | 136,701 | 133,443 | |||||||||||||||||||
| Total assets | $ | 5,346,563 | $ | 5,468,354 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 0.12 | $ | 2,375,943 | 777 | 0.13 | $ | 2,188,978 | 1,194 | 0.22 | ||||||||||||
| Time deposits | 0.58 | 931,085 | 1,396 | 0.61 | 1,312,089 | 3,028 | 0.94 | ||||||||||||||
| Total deposits | 0.24 | 3,307,028 | 2,173 | 0.27 | 3,501,067 | 4,222 | 0.49 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 0.03 | 128,264 | 10 | 0.03 | 144,487 | 9 | 0.03 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 0.33 | 3,628 | 1 | 0.08 | 1,661 | — | — | ||||||||||||||
| Subordinated debentures issued to capital trust | 1.92 | 25,774 | 118 | 1.86 | 25,774 | 113 | 1.78 | ||||||||||||||
| Subordinated notes | 5.97 | 74,019 | 1,105 | 6.06 | 148,514 | 2,200 | 6.01 | ||||||||||||||
| Total interest-bearing liabilities | 0.36 | 3,538,713 | 3,407 | 0.39 | 3,821,503 | 6,544 | 0.69 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 1,160,013 | 983,120 | |||||||||||||||||||
| Other liabilities | 37,907 | 43,890 | |||||||||||||||||||
| Total liabilities | 4,736,633 | 4,848,513 | |||||||||||||||||||
| Stockholders’ equity | 609,930 | 619,841 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,346,563 | $ | 5,468,354 | |||||||||||||||||
| Net interest income: | |||||||||||||||||||||
| Interest rate spread | 3.37 | % | $ | 43,266 | 3.31 | % | $ | 44,089 | 3.23 | % | |||||||||||
| Net interest margin* | 3.43 | % | 3.41 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 144.7 | % | 137.1 | % | |||||||||||||||||
*Defined as the Company’s net interest income divided by average total interest-earning assets.
NON-GAAP FINANCIAL MEASURES
This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial measurement includes the tangible common equity to tangible assets ratio.
In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets. Management believes that the presentation of this measure excluding the impact of intangible assets provides useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength. Management also believes that providing a measure that excludes balances of intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers. In addition, management believes that this is a standard financial measure used in the banking industry to evaluate performance.
This non-GAAP financial measurement is supplemental and is not a substitute for any analysis based on GAAP financial measures. Because not all companies use the same calculation of non-GAAP measures, this presentation may not be comparable to other similarly titled measures as calculated by other companies.
Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets
| March 31, | December 31, | ||||||
| 2022 | 2021 | ||||||
| (Dollars in thousands) | |||||||
| Common equity at period end | $ | 582,551 | $ | 616,752 | |||
| Less: Intangible assets at period end | 5,923 | 6,081 | |||||
| Tangible common equity at period end (a) | $ | 576,628 | $ | 610,671 | |||
| Total assets at period end | $ | 5,374,276 | $ | 5,449,944 | |||
| Less: Intangible assets at period end | 5,923 | 6,081 | |||||
| Tangible assets at period end (b) | $ | 5,368,353 | $ | 5,443,863 | |||
| Tangible common equity to tangible assets (a) / (b) | 10.74 | % | 11.22 | % | |||
FAQ
What are Great Southern Bancorp's earnings for Q1 2022?
How much did total loans increase for Great Southern Bancorp in Q1 2022?
What was the non-performing assets figure for Great Southern Bancorp as of March 31, 2022?
How did Great Southern Bancorp's net interest income change in Q1 2022?
What is the current Tier 1 Capital Ratio of Great Southern Bancorp?
