Great Southern Bancorp, Inc. Reports Preliminary Second Quarter Earnings of $1.44 Per Diluted Common Share
Great Southern Bancorp (GSBC) reported preliminary earnings for Q2 2022, posting diluted earnings of $1.44 per share, down from $1.46 in Q2 2021. Total loans increased by $354.1 million (8.8%) to $4.36 billion, driven primarily by residential and commercial real estate loans. However, net interest income for the quarter rose to $48.8 million, a 9.3% increase year-over-year. The bank's asset quality improved, with non-performing assets decreasing to $4.3 million. Additionally, a quarterly dividend of $0.40 per share was declared, marking an 11% increase.
- Net interest income increased by $4.1 million (9.3%) to $48.8 million compared to Q2 2021.
- Total outstanding loans rose by $354.1 million (8.8%) to $4.36 billion.
- Non-performing assets decreased to $4.3 million, improving asset quality.
- Declared a quarterly dividend of $0.40 per share, an 11% increase from the previous quarter.
- Earnings per diluted share decreased from $1.46 in Q2 2021 to $1.44 in Q2 2022.
- Profit on loan sales decreased significantly due to lower mortgage loan originations.
Preliminary Financial Results and Other Matters for the Quarter and Six Months Ended June 30, 2022:
- Significant Income and Expense Items: During the three months ended June 30, 2022, the Company recorded the following significant and non-recurring items:
(1) A$1.1 million gain on the sale of fixed assets was recorded in Non-Interest Income.
(2) Interest income included a total of$1.2 million from interest received on a paid-off investment security and previously charged off interest recovered on three loans.
(3) The Company recorded an increase in Salaries and Employee Benefits expense totaling$1.1 million related to a special non-recurring employee bonus paid to all current full-time and part-time employees in response to the rapid and significant increases in prices for many goods and services.
(4) The Company recorded an expense in Legal and Professional Fees totaling$580,000 related to training and implementation costs for the upcoming core systems conversion and professional fees to consultants that were engaged to support the Company in its transition of core and ancillary software and information technology systems. Expenses of this type are expected to total approximately$1.0 million per quarter and will continue to be incurred through the systems conversion date, which is scheduled for the third quarter of 2023. - Total Loans: Total outstanding loans, excluding mortgage loans held for sale, increased
$354.1 million , or8.8% , from$4.08 billion at December 31, 2021 to$4.36 billion at June 30, 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
$6.4 million at June 30, 2022, a decrease of$1.6 million from$8.0 million at December 31, 2021. At June 30, 2022, non-performing assets were$4.3 million (0.08% of total assets), a decrease of$1.7 million from$6.0 million (0.11% of total assets) at December 31, 2021. - Net Interest Income: Net interest income for the second quarter of 2022 increased
$4.1 million (or approximately9.3% ) to$48.8 million compared to$44.7 million for the second quarter of 2021. Net interest margin was3.78% (which included approximately0.10% attributable to the non-recurring interest income noted above) for the quarter ended June 30, 2022, compared to3.35% for the quarter ended June 30, 2021. Net interest income and net interest margin in the first quarter of 2022 were$43.3 million and3.43% , respectively. - Capital: The capital position of the Company continues to be strong, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of June 30, 2022, the Company’s Tier 1 Leverage Ratio was
10.7% , Common Equity Tier 1 Capital Ratio was10.8% , Tier 1 Capital Ratio was11.3% , and Total Capital Ratio was13.9% . 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 June 30, 2022, approximately 372,000 shares remained available in our stock repurchase authorization.
SPRINGFIELD, July 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 June 30, 2022, were
Preliminary earnings for the six months ended June 30, 2022, were
For the quarter ended June 30, 2022, annualized return on average common equity was
Great Southern President and CEO Joseph W. Turner commented, “Second quarter earnings were very good. The country’s current economic landscape provides both opportunities and challenges for us and our industry. We are focused on ensuring that the Company is properly positioned, especially in the wake of the changing interest rate environment caused by continued inflationary pressures and other factors. As always, we remain steadfast in adhering to our core tenets of providing our customers with world-class service while operating with a long-view mindset. I’m proud of our team of associates and appreciate their commitment to our customers and Company.
“In the second quarter of 2022, we earned
Turner added, “Earnings performance ratios were strong, with an annualized return on average assets of
“During the second quarter, loan production and activity in our markets was quite vigorous. Since the end of 2021, total net loans, excluding mortgage loans held for sale, increased about
Turner continued, “Credit quality metrics remained excellent during the second quarter. At June 30, 2022, non-performing assets were
“In the second quarter, the Company declared a
“In other news during the second quarter, we were pleased to announce a
Selected Financial Data:
| (In thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net interest income | $ | 48,831 | $ | 44,684 | $ | 92,097 | $ | 88,773 | |||||
| Provision (credit) for credit losses on loans and unfunded commitments | 2,223 | (1,307 | ) | 2,030 | (1,681 | ) | |||||||
| Non-interest income | 9,319 | 9,585 | 18,495 | 19,321 | |||||||||
| Non-interest expense | 33,004 | 30,191 | 64,271 | 60,512 | |||||||||
| Provision for income taxes | 4,699 | 5,271 | 9,080 | 10,281 | |||||||||
| Net income and net income available to common shareholders | $ | 18,224 | $ | 20,114 | $ | 35,211 | $ | 38,982 | |||||
| Earnings per diluted common share | $ | 1.44 | $ | 1.46 | $ | 2.73 | $ | 2.82 | |||||
NET INTEREST INCOME
Net interest income for the second quarter of 2022 increased
Net interest income for the six months ended June 30, 2022 increased
Net interest income for the three months ended June 30, 2022 was positively affected by an
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
In March 2022, the Company entered into another 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 is
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 June 30, 2022, non-interest income decreased
- Net gains on loan sales: Net gains on loan sales decreased
$2.1 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 second quarter of 2022, mortgage refinance volume has decreased and fixed rate loan originations and related gains on sales of these loans have decreased substantially. - Gain (loss) on derivative interest rate products: In the 2022 period, the Company recognized a gain of
$145,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. In the 2021 period, the Company recognized a loss of$179,000 on the change in fair value of its back-to-back interest rate swaps related to commercial loans. Generally, as market interest rates increase, this creates a net increase in the fair value of these instruments. This is a non-cash item as there was no required settlement of this amount between the Company and its swap counterparties. - Other income: Other income increased
$1.0 million compared to the prior year quarter. In the 2022 period, a gain of$1.1 million was recognized on sales of fixed assets.
For the six months ended June 30, 2022, non-interest income decreased
- Net gains on loan sales: Net gains on loan sales decreased
$3.7 million compared to the prior year period. 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 for the same reasons noted above.
- Point-of-sale and ATM fees: Point-of-sale and ATM fees increased
$739,000 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 half of 2022, debit card usage by customers rebounded and was back to normal levels, and in many cases, increased levels of activity. - Overdraft and Insufficient funds fees: Overdraft and Insufficient funds fees increased
$781,000 compared to the prior year period. It appears that consumers have continued to spend significantly in 2022, but some may have lower account balances as prices for goods and services have increased and government stimulus payments received by consumers in 2020 and 2021 have been exhausted now. - Other income: Other income increased
$1.3 million compared to the prior year period. In the 2022 period, a gain of$1.1 million was recognized on sales of fixed assets. Also 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 June 30, 2022, non-interest expense increased
- Salaries and employee benefits: Salaries and employee benefits increased
$1.5 million from the prior year quarter. Most significantly contributing to the increase, in June 2022, the Company paid a special cash bonus to all employees totaling$1.1 million in response to the rapid and significant increases in prices for many goods and services. A portion of this increase also 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 and the new Charlotte loan office was opened in the second quarter of 2022. Lastly, certain loan origination compensation costs were deferred under accounting standards that related primarily to the origination of PPP loans; therefore, more costs were deferred in the 2021 period versus the 2022 period. - Legal, Audit and Other Professional Fees: Legal, audit and other professional fees increased
$665,000 from the prior year quarter, to$1.2 million . In the 2022 period, the Company expensed a total of$580,000 related to training and implementation costs for the upcoming core systems conversion and professional fees to consultants engaged to support the Company’s transition of core and ancillary software and information technology systems.
For the six months ended June 30, 2022, non-interest expense increased
- Salaries and employee benefits: Salaries and employee benefits increased
$2.5 million from the prior year period, for the same reasons noted above. - Legal, Audit and Other Professional Fees: Legal, audit and other professional fees increased
$823,000 from the prior year period, to$2.0 million , for the same reason noted above.
The Company’s efficiency ratio for the quarter ended June 30, 2022, was
INCOME TAXES
For the three months ended June 30, 2022 and 2021, the Company's effective tax rate was
CAPITAL
As of June 30, 2022, total stockholders’ equity and common stockholders’ equity were each
In addition, included in stockholders’ equity at June 30, 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 June 30, 2022, was an unrealized loss (net of taxes) on the Company’s outstanding cash flow hedge (interest rate swap) totaling
As noted above, total stockholders' equity decreased
On a preliminary basis, as of June 30, 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 June 30, 2022, a total of approximately 372,000 shares were available in our stock repurchase authorization.
During the three months ended June 30, 2022, the Company repurchased 430,100 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):
| June 30, 2022 | 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) | $ | 190,637 | $ | 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 | 87,556 | 89,252 | 91,786 | 77,411 | 83,782 | |||||
| Closed construction loans with unused available lines | ||||||||||
| Secured by real estate (one-to four-family) | 93,892 | 75,214 | 74,501 | 42,162 | 48,213 | |||||
| Secured by real estate (not one-to four-family) | 1,331,986 | 1,089,844 | 1,092,029 | 823,106 | 798,810 | |||||
| Loan commitments not closed | ||||||||||
| Secured by real estate (one-to four-family) | 88,153 | 109,472 | 53,529 | 85,917 | 69,295 | |||||
| Secured by real estate (not one-to four-family) | 134,600 | 212,264 | 146,826 | 45,860 | 92,434 | |||||
| Not secured by real estate - commercial business | 14,335 | 8,223 | 12,920 | 699 | — | |||||
| $ | 1,941,159 | $ | 1,769,370 | $ | 1,671,025 | $ | 1,261,908 | $ | 1,267,877 |
DEPLOYMENT OF CASH AND CASH EQUIVALENTS
During the six months ended June 30, 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. Outstanding loans 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, commercial real estate price index, consumer sentiment, gross domestic product (GDP) and construction spending.
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 June 30, 2022, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a negative provision expense of
The Bank’s allowance for credit losses as a percentage of total loans was
ASSET QUALITY
At June 30, 2022, non-performing assets were
Compared to December 31, 2021 and March 31, 2022, non-performing loans decreased
Activity in the non-performing loans categories during the quarter ended June 30, 2022, was as follows:
| Beginning Balance, April 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, June 30 | |||||||||||||
| (In thousands) | ||||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||
| Subdivision construction | — | — | — | — | — | — | — | — | ||||||||||||
| Land development | 468 | — | — | — | — | — | — | 468 | ||||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||
| One- to four-family residential | 2,004 | 55 | — | (275 | ) | — | — | (282 | ) | 1,502 | ||||||||||
| Other residential | — | — | — | — | — | — | — | — | ||||||||||||
| Commercial real estate | 1,773 | 59 | — | — | — | — | — | 1,832 | ||||||||||||
| Commercial business | — | — | — | — | — | — | — | — | ||||||||||||
| Consumer | 724 | 42 | — | (67 | ) | (9 | ) | (10 | ) | (262 | ) | 418 | ||||||||
| Total non-performing loans | $ | 4,969 | $ | 156 | $ | — | $ | (342 | ) | $ | (9 | ) | $ | (10 | ) | $ | (544 | ) | $ | 4,220 |
| FDIC-assisted acquired loans included above | $ | 1,652 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (490 | ) | $ | 1,162 | |||
At June 30, 2022, the non-performing one- to four-family residential category included 30 loans, one of which was added during the current quarter. The largest relationship in the category totaled
Compared to December 31, 2021 and March 31, 2022, potential problem loans increased
Activity in the potential problem loans category during the quarter ended June 30, 2022, was as follows:
| Beginning Balance, April 1 | Additions to Potential Problem | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Payments | Ending Balance, June 30 | |||||||||||
| (In thousands) | ||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||
| Subdivision construction | 12 | — | — | — | — | — | (2 | ) | 10 | |||||||||
| Land development | — | — | — | — | — | — | — | — | ||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | ||||||||||
| One- to four-family residential | 1,382 | 275 | — | — | — | — | (32 | ) | 1,625 | |||||||||
| Other residential | — | — | — | — | — | — | — | — | ||||||||||
| Commercial real estate | 205 | — | — | — | — | — | (5 | ) | 200 | |||||||||
| Commercial business | — | — | — | — | — | — | — | — | ||||||||||
| Consumer | 264 | 107 | — | (37 | ) | — | — | (17 | ) | 317 | ||||||||
| Total potential problem loans | $ | 1,863 | $ | 382 | $ | — | $ | (37 | ) | $ | — | $ | — | $ | (56 | ) | $ | 2,152 |
| FDIC-assisted acquired loans included above | $ | 987 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (19 | ) | $ | 968 | |
At June 30, 2022, the one- to four-family residential category of potential problem loans included 27 loans, three of which were added during the current quarter. The largest relationship in this category totaled
Activity in foreclosed assets and repossessions during the quarter ended June 30, 2022, excluding
| Beginning Balance, April 1 | Additions | ORE and Repossession Sales | Capitalized Costs | ORE and Repossession Write-Downs | Ending Balance, June 30 | |||||||||
| (In thousands) | ||||||||||||||
| One-to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||
| Subdivision construction | — | — | — | — | — | — | ||||||||
| Land development | — | — | — | — | — | — | ||||||||
| Commercial construction | — | — | — | — | — | — | ||||||||
| One- to four-family residential | 183 | — | (175 | ) | — | (8 | ) | — | ||||||
| Other residential | — | — | — | — | — | — | ||||||||
| Commercial real estate | — | — | — | — | — | — | ||||||||
| Commercial business | — | — | — | — | — | — | ||||||||
| Consumer | 38 | 80 | (74 | ) | — | — | 44 | |||||||
| Total foreclosed assets and repossessions | $ | 221 | $ | 80 | $ | (249 | ) | $ | — | $ | (8 | ) | $ | 44 |
| FDIC-assisted acquired assets included above | $ | 183 | $ | — | $ | (175 | ) | $ | — | $ | (8 | ) | $ | — |
The two remaining properties in the one- to four-family residential category of foreclosed assets were sold during the three months ended June 30, 2022. 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 are being 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 the St. Louis market, a banking center in the Clayton area is slated to be consolidated into a nearby banking center at the close of business on August 19, 2022. This lobby-only office, located at 8235 Forsyth Boulevard, will be consolidated into the Brentwood-area office, 2435 S. Brentwood, a short distance away. The commercial lending team currently housed in the Clayton office building will continue to serve customers from this location.
In June 2022, the Company opened a new commercial loan production office (LPO) in Charlotte, North Carolina, which represents the eighth LPO in the Company’s franchise. A local and highly experienced lender was hired to manage this office. The new LPO will provide a variety of commercial lending services, including commercial real estate loans for new and existing properties and commercial construction loans. An LPO in Phoenix, Arizona, was also opened in February 2022.
The Company will host a conference call on Thursday, July 21, 2022, at 2:00 p.m. Central Time to discuss second quarter 2022 preliminary earnings. The call will be available live or in a recorded version at the Company’s Investor Relations website, http://investors.greatsouthernbank.com. Participants may register for the call here.
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; Charlotte, North Carolina; 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."
www.GreatSouthernBank.com
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 and six months ended June 30, 2022 and 2021, and the three months ended March 31, 2022, are not necessarily indicative of the results of operations which may be expected for any future period.
| June 30, | December 31, | ||||
| 2022 | 2021 | ||||
| Selected Financial Condition Data: | (In thousands) | ||||
| Total assets | $ | 5,551,996 | $ | 5,449,944 | |
| Loans receivable, gross | 4,432,914 | 4,077,553 | |||
| Allowance for credit losses | 61,058 | 60,754 | |||
| Other real estate owned, net | 329 | 2,087 | |||
| Available-for-sale securities, at fair value | 519,472 | 501,032 | |||
| Held-to-maturity securities, at amortized cost | 215,354 | — | |||
| Deposits | 4,516,205 | 4,552,101 | |||
| Total borrowings | 417,634 | 238,713 | |||
| Total stockholders’ equity | 549,644 | 616,752 | |||
| Non-performing assets | 4,264 | 6,011 | |||
| Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||
| June 30, | June 30, | March 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||
| (In thousands) | |||||||||||||||||
| Selected Operating Data: | |||||||||||||||||
| Interest income | $ | 52,698 | $ | 50,452 | $ | 99,372 | $ | 101,085 | $ | 46,673 | |||||||
| Interest expense | 3,867 | 5,768 | 7,275 | 12,312 | 3,407 | ||||||||||||
| Net interest income | 48,831 | 44,684 | 92,097 | 88,773 | 43,266 | ||||||||||||
| Provision (credit) for credit losses on loans and unfunded commitments | 2,223 | (1,307 | ) | 2,030 | (1,681 | ) | (193 | ) | |||||||||
| Non-interest income | 9,319 | 9,585 | 18,495 | 19,321 | 9,176 | ||||||||||||
| Non-interest expense | 33,004 | 30,191 | 64,271 | 60,512 | 31,268 | ||||||||||||
| Provision for income taxes | 4,699 | 5,271 | 9,080 | 10,281 | 4,380 | ||||||||||||
| Net income and net income available to common shareholders | $ | 18,224 | $ | 20,114 | $ | 35,211 | $ | 38,982 | $ | 16,987 | |||||||
| At or For the Three Months Ended | At or For the Six Months Ended | At or For the Three Months Ended | |||||||||||||||
| June 30, | June 30, | March 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||
| Per Common Share: | |||||||||||||||||
| Net income (fully diluted) | $ | 1.44 | $ | 1.46 | $ | 2.73 | $ | 2.82 | $ | 1.30 | |||||||
| Book value | $ | 44.53 | $ | 46.09 | $ | 44.53 | $ | 46.09 | $ | 45.65 | |||||||
| Earnings Performance Ratios: | |||||||||||||||||
| Annualized return on average assets | 1.34 | % | 1.44 | % | 1.31 | % | 1.41 | % | 1.27 | % | |||||||
| Annualized return on average common stockholders’ equity | 12.72 | % | 12.84 | % | 11.91 | % | 12.51 | % | 11.14 | % | |||||||
| Net interest margin | 3.78 | % | 3.35 | % | 3.61 | % | 3.38 | % | 3.43 | % | |||||||
| Average interest rate spread | 3.65 | % | 3.18 | % | 3.48 | % | 3.20 | % | 3.31 | % | |||||||
| Efficiency ratio | 56.76 | % | 55.63 | % | 58.12 | % | 55.98 | % | 59.62 | % | |||||||
| Non-interest expense to average total assets | 2.43 | % | 2.16 | % | 2.39 | % | 2.19 | % | 2.34 | % | |||||||
| Asset Quality Ratios: | |||||||||||||||||
| Allowance for credit losses to period-end loans | 1.38 | % | 1.56 | % | 1.38 | % | 1.56 | % | 1.46 | % | |||||||
| Non-performing assets to period-end assets | 0.08 | % | 0.15 | % | 0.08 | % | 0.15 | % | 0.10 | % | |||||||
| Non-performing loans to period-end loans | 0.10 | % | 0.18 | % | 0.10 | % | 0.18 | % | 0.12 | % | |||||||
| Annualized net charge-offs (recoveries) to average loans | (0.01 | )% | 0.01 | % | (0.01 | )% | 0.00 | % | 0.00 | % | |||||||
Great Southern Bancorp, Inc. and Subsidiaries
Consolidated Statements of Financial Condition
(In thousands, except number of shares)
| June 30, 2022 | December 31, 2021 | March 31, 2022 | |||||
| Assets | |||||||
| Cash | $ | 99,403 | $ | 90,008 | $ | 90,481 | |
| Interest-bearing deposits in other financial institutions | 96,305 | 627,259 | 262,557 | ||||
| Cash and cash equivalents | 195,708 | 717,267 | 353,038 | ||||
| Available-for-sale securities | 519,472 | 501,032 | 461,375 | ||||
| Held-to-maturity securities | 215,354 | — | 227,441 | ||||
| Mortgage loans held for sale | 2,782 | 8,735 | 1,672 | ||||
| Loans receivable, net of allowance for credit losses of | 4,361,559 | 4,007,500 | 4,111,487 | ||||
| Interest receivable | 13,558 | 10,705 | 12,458 | ||||
| Prepaid expenses and other assets | 59,468 | 45,176 | 44,994 | ||||
| Other real estate owned and repossessions (1), net | 329 | 2,087 | 1,720 | ||||
| Premises and equipment, net | 136,147 | 132,733 | 131,742 | ||||
| Goodwill and other intangible assets | 11,246 | 6,081 | 5,923 | ||||
| Federal Home Loan Bank stock and other interest-earning assets | 13,364 | 6,655 | 6,564 | ||||
| Current and deferred income taxes | 23,009 | 11,973 | 15,862 | ||||
| Total Assets | $ | 5,551,996 | $ | 5,449,944 | $ | 5,374,276 | |
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities | |||||||
| Deposits | $ | 4,516,205 | $ | 4,552,101 | $ | 4,489,337 | |
| Securities sold under reverse repurchase agreements with customers | 145,838 | 137,116 | 148,019 | ||||
| Short-term borrowings | 171,889 | 1,839 | 2,942 | ||||
| Subordinated debentures issued to capital trust | 25,774 | 25,774 | 25,774 | ||||
| Subordinated notes | 74,133 | 73,984 | 74,058 | ||||
| Accrued interest payable | 791 | 646 | 1,656 | ||||
| Advances from borrowers for taxes and insurance | 8,874 | 6,147 | 7,325 | ||||
| Accounts payable and accrued expenses | 47,189 | 25,956 | 33,178 | ||||
| Liability for unfunded commitments | 11,659 | 9,629 | 9,436 | ||||
| Total Liabilities | 5,002,352 | 4,833,192 | 4,791,725 | ||||
| Stockholders’ Equity | |||||||
| Capital stock | |||||||
| Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding June 2022, December 2021 and March 2022 -0- shares | — | — | — | ||||
| Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding June 2022 – 12,343,449 shares; December 2021 – 13,128,493 shares; March 2022 – 12,760,972 shares | 123 | 131 | 128 | ||||
| Additional paid-in capital | 40,565 | 38,314 | 40,004 | ||||
| Retained earnings | 522,255 | 545,548 | 533,736 | ||||
| Accumulated other comprehensive gain | (13,299 | ) | 32,759 | 8,683 | |||
| Total Stockholders’ Equity | 549,644 | 616,752 | 582,551 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 5,551,996 | $ | 5,449,944 | $ | 5,374,276 | |
(1) At June 30, 2022, December 31, 2021 and March 31, 2022, includes
Great Southern Bancorp, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)
| Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||||
| June 30, | June 30, | March 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Loans | $ | 46,764 | $ | 47,360 | $ | 89,829 | $ | 95,069 | $ | 43,065 | |||||||||
| Investment securities and other | 5,934 | 3,092 | 9,543 | 6,016 | 3,608 | ||||||||||||||
| 52,698 | 50,452 | 99,372 | 101,085 | 46,673 | |||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 2,358 | 3,457 | 4,532 | 7,679 | 2,173 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 8 | 10 | 18 | 19 | 10 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 236 | — | 237 | — | 1 | ||||||||||||||
| Subordinated debentures issued to capital trust | 159 | 113 | 277 | 226 | 118 | ||||||||||||||
| Subordinated notes | 1,106 | 2,188 | 2,211 | 4,388 | 1,105 | ||||||||||||||
| 3,867 | 5,768 | 7,275 | 12,312 | 3,407 | |||||||||||||||
| Net Interest Income | 48,831 | 44,684 | 92,097 | 88,773 | 43,266 | ||||||||||||||
| Provision (Credit) for Credit Losses on Loans | — | (1,000 | ) | — | (700 | ) | — | ||||||||||||
| Provision (Credit) for Unfunded Commitments | 2,223 | (307 | ) | 2,030 | (981 | ) | (193 | ) | |||||||||||
| Net Interest Income After Provision (Credit) for Credit Losses and Provision (Credit) for Unfunded Commitments | 46,608 | 45,991 | 90,067 | 90,454 | 43,459 | ||||||||||||||
| Noninterest Income | |||||||||||||||||||
| Commissions | 389 | 370 | 686 | 652 | 297 | ||||||||||||||
| Overdraft and Insufficient funds fees | 1,888 | 1,528 | 3,753 | 2,972 | 1,865 | ||||||||||||||
| POS and ATM fee income and service charges | 4,104 | 3,971 | 8,068 | 7,329 | 3,964 | ||||||||||||||
| Net gains on loan sales | 498 | 2,613 | 1,632 | 5,301 | 1,134 | ||||||||||||||
| Net realized gain on sale of available for sale securities | — | — | 7 | — | 7 | ||||||||||||||
| Late charges and fees on loans | 360 | 358 | 673 | 659 | 313 | ||||||||||||||
| Gain (loss) on derivative interest rate products | 145 | (179 | ) | 297 | 295 | 152 | |||||||||||||
| Other income | 1,935 | 924 | 3,379 | 2,113 | 1,444 | ||||||||||||||
| 9,319 | 9,585 | 18,495 | 19,321 | 9,176 | |||||||||||||||
| Noninterest Expense | |||||||||||||||||||
| Salaries and employee benefits | 19,432 | 17,934 | 37,512 | 35,054 | 18,080 | ||||||||||||||
| Net occupancy and equipment expense | 6,808 | 6,706 | 13,686 | 13,768 | 6,878 | ||||||||||||||
| Postage | 844 | 750 | 1,631 | 1,628 | 787 | ||||||||||||||
| Insurance | 787 | 759 | 1,581 | 1,519 | 794 | ||||||||||||||
| Advertising | 875 | 605 | 1,430 | 1,190 | 555 | ||||||||||||||
| Office supplies and printing | 208 | 161 | 426 | 438 | 218 | ||||||||||||||
| Telephone | 832 | 868 | 1,681 | 1,749 | 850 | ||||||||||||||
| Legal, audit and other professional fees | 1,196 | 531 | 2,001 | 1,178 | 805 | ||||||||||||||
| Expense on other real estate and repossessions | 65 | 102 | 228 | 370 | 163 | ||||||||||||||
| Acquired deposit intangible asset amortization | 177 | 258 | 335 | 547 | 158 | ||||||||||||||
| Other operating expenses | 1,780 | 1,517 | 3,760 | 3,071 | 1,980 | ||||||||||||||
| 33,004 | 30,191 | 64,271 | 60,512 | 31,268 | |||||||||||||||
| Income Before Income Taxes | 22,923 | 25,385 | 44,291 | 49,263 | 21,367 | ||||||||||||||
| Provision for Income Taxes | 4,699 | 5,271 | 9,080 | 10,281 | 4,380 | ||||||||||||||
| Net Income and Net Income Available to Common Stockholders | $ | 18,224 | $ | 20,114 | $ | 35,211 | $ | 38,982 | $ | 16,987 | |||||||||
| Earnings Per Common Share | |||||||||||||||||||
| Basic | $ | 1.45 | $ | 1.47 | $ | 2.76 | $ | 2.84 | $ | 1.31 | |||||||||
| Diluted | $ | 1.44 | $ | 1.46 | $ | 2.73 | $ | 2.82 | $ | 1.30 | |||||||||
| Dividends Declared Per Common Share | $ | 0.40 | $ | 0.34 | $ | 0.76 | $ | 0.68 | $ | 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
| June 30, 2022 | Three Months Ended June 30, 2022 | Three Months Ended June 30, 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 | 3.24 | % | $ | 772,326 | $ | 6,534 | 3.39 | % | $ | 675,562 | $ | 6,361 | 3.78 | % | |||||||
| Other residential | 4.50 | 851,031 | 9,637 | 4.54 | 1,017,578 | 11,216 | 4.42 | ||||||||||||||
| Commercial real estate | 4.37 | 1,576,285 | 17,120 | 4.36 | 1,580,335 | 16,857 | 4.28 | ||||||||||||||
| Construction | 4.55 | 623,117 | 7,722 | 4.97 | 580,277 | 6,529 | 4.51 | ||||||||||||||
| Commercial business | 4.45 | 288,452 | 3,371 | 4.69 | 291,902 | 3,545 | 4.87 | ||||||||||||||
| Other loans | 4.91 | 198,543 | 2,217 | 4.48 | 222,004 | 2,644 | 4.78 | ||||||||||||||
| Industrial revenue bonds | 4.80 | 13,345 | 163 | 4.89 | 14,509 | 208 | 5.74 | ||||||||||||||
| Total loans receivable | 4.37 | 4,323,099 | 46,764 | 4.34 | 4,382,167 | 47,360 | 4.33 | ||||||||||||||
| Investment securities | 2.69 | 741,401 | 5,720 | 3.09 | 459,959 | 2,961 | 2.58 | ||||||||||||||
| Other interest-earning assets | 1.64 | 115,456 | 214 | 0.74 | 514,681 | 131 | 0.10 | ||||||||||||||
| Total interest-earning assets | 4.10 | 5,179,956 | 52,698 | 4.08 | 5,356,807 | 50,452 | 3.78 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 95,819 | 99,333 | |||||||||||||||||||
| Other non-earning assets | 155,822 | 128,702 | |||||||||||||||||||
| Total assets | $ | 5,431,597 | $ | 5,584,842 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 0.14 | $ | 2,389,086 | 830 | 0.14 | $ | 2,312,284 | 1,038 | 0.18 | ||||||||||||
| Time deposits | 0.82 | 914,556 | 1,528 | 0.67 | 1,212,900 | 2,419 | 0.80 | ||||||||||||||
| Total deposits | 0.35 | 3,303,642 | 2,358 | 0.29 | 3,525,184 | 3,457 | 0.39 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 0.04 | 135,536 | 8 | 0.02 | 141,971 | 10 | 0.03 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 1.73 | 73,337 | 236 | 1.29 | 1,600 | — | — | ||||||||||||||
| Subordinated debentures issued to capital trust | 2.89 | 25,774 | 159 | 2.47 | 25,774 | 113 | 1.76 | ||||||||||||||
| Subordinated notes | 5.96 | 74,098 | 1,106 | 5.99 | 148,676 | 2,188 | 5.90 | ||||||||||||||
| Total interest-bearing liabilities | 0.52 | 3,612,387 | 3,867 | 0.43 | 3,843,205 | 5,768 | 0.60 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 1,188,967 | 1,071,441 | |||||||||||||||||||
| Other liabilities | 57,027 | 43,402 | |||||||||||||||||||
| Total liabilities | 4,858,381 | 4,958,048 | |||||||||||||||||||
| Stockholders’ equity | 573,216 | 626,794 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,431,597 | $ | 5,584,842 | |||||||||||||||||
| Net interest income: | |||||||||||||||||||||
| Interest rate spread | 3.58 | % | $ | 48,831 | 3.65 | % | $ | 44,684 | 3.18 | % | |||||||||||
| Net interest margin* | 3.78 | % | 3.35 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 143.4 | % | 139.4 | % | |||||||||||||||||
*Defined as the Company’s net interest income divided by average total interest-earning assets.
| June 30, 2022 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 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 | 3.24 | % | $ | 737,024 | $ | 12,575 | 3.44 | % | $ | 670,092 | $ | 12,878 | 3.88 | % | |||||||
| Other residential | 4.50 | 805,579 | 18,054 | 4.52 | 1,008,387 | 22,143 | 4.43 | ||||||||||||||
| Commercial real estate | 4.37 | 1,533,263 | 32,466 | 4.27 | 1,571,561 | 33,441 | 4.29 | ||||||||||||||
| Construction | 4.55 | 645,544 | 15,251 | 4.76 | 592,263 | 13,259 | 4.51 | ||||||||||||||
| Commercial business | 4.45 | 288,839 | 6,697 | 4.68 | 307,579 | 7,433 | 4.87 | ||||||||||||||
| Other loans | 4.91 | 201,510 | 4,461 | 4.46 | 229,709 | 5,535 | 4.86 | ||||||||||||||
| Industrial revenue bonds | 4.80 | 13,662 | 325 | 4.78 | 14,715 | 380 | 5.21 | ||||||||||||||
| Total loans receivable | 4.37 | 4,225,421 | 89,829 | 4.29 | 4,394,306 | 95,069 | 4.36 | ||||||||||||||
| Investment securities | 2.69 | 638,262 | 9,131 | 2.88 | 437,452 | 5,778 | 2.66 | ||||||||||||||
| Other interest-earning assets | 1.64 | 286,102 | 412 | 0.29 | 467,317 | 238 | 0.10 | ||||||||||||||
| Total interest-earning assets | 4.10 | 5,149,785 | 99,372 | 3.89 | 5,299,075 | 101,085 | 3.85 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 93,217 | 96,786 | |||||||||||||||||||
| Other non-earning assets | 146,313 | 131,059 | |||||||||||||||||||
| Total assets | $ | 5,389,315 | $ | 5,526,920 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 0.14 | $ | 2,382,551 | 1,607 | 0.14 | $ | 2,250,972 | 2,232 | 0.20 | ||||||||||||
| Time deposits | 0.82 | 922,775 | 2,925 | 0.64 | 1,262,220 | 5,447 | 0.87 | ||||||||||||||
| Total deposits | 0.35 | 3,305,326 | 4,532 | 0.28 | 3,513,192 | 7,679 | 0.44 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 0.04 | 131,920 | 18 | 0.03 | 143,222 | 19 | 0.03 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 1.73 | 38,675 | 237 | 1.24 | 1,630 | — | — | ||||||||||||||
| Subordinated debentures issued to capital trust | 2.89 | 25,774 | 277 | 2.17 | 25,774 | 226 | 1.77 | ||||||||||||||
| Subordinated notes | 5.96 | 74,059 | 2,211 | 6.02 | 148,595 | 4,388 | 5.95 | ||||||||||||||
| Total interest-bearing liabilities | 0.52 | 3,575,754 | 7,275 | 0.41 | 3,832,413 | 12,312 | 0.65 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 1,174,570 | 1,027,525 | |||||||||||||||||||
| Other liabilities | 47,519 | 43,645 | |||||||||||||||||||
| Total liabilities | 4,797,843 | 4,903,583 | |||||||||||||||||||
| Stockholders’ equity | 591,472 | 623,337 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,389,315 | $ | 5,526,920 | |||||||||||||||||
| Net interest income: | |||||||||||||||||||||
| Interest rate spread | 3.58 | % | $ | 92,097 | 3.48 | % | $ | 88,773 | 3.20 | % | |||||||||||
| Net interest margin* | 3.61 | % | 3.38 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 144.0 | % | 138.3 | % | |||||||||||||||||
*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 information 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
| June 30, | December 31, | ||||||
| 2022 | 2021 | ||||||
| (Dollars in thousands) | |||||||
| Common equity at period end | $ | 549,644 | $ | 616,752 | |||
| Less: Intangible assets at period end | 11,246 | 6,081 | |||||
| Tangible common equity at period end (a) | $ | 538,398 | $ | 610,671 | |||
| Total assets at period end | $ | 5,551,996 | $ | 5,449,944 | |||
| Less: Intangible assets at period end | 11,246 | 6,081 | |||||
| Tangible assets at period end (b) | $ | 5,540,750 | $ | 5,443,863 | |||
| Tangible common equity to tangible assets (a) / (b) | 9.72 | % | 11.22 | % | |||
FAQ
What were the preliminary earnings for GSBC for Q2 2022?
How much did total loans increase for GSBC by June 30, 2022?
What is the non-performing asset figure for GSBC as of June 30, 2022?
What dividend did Great Southern Bancorp declare in Q2 2022?
