Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.41 Per Diluted Common Share
Great Southern Bancorp (NASDAQ:GSBC) reported preliminary Q3 2024 earnings of $1.41 per diluted share ($16.5 million net income), up from $1.33 per share in Q3 2023. For the nine months ended September 30, 2024, earnings were $3.99 per share, down from $4.52 in the same period of 2023. Key Q3 2024 results include:
- Net interest income increased 2.6% to $48.0 million
- Net interest margin was 3.42%, down slightly from 3.43% in Q3 2023
- Total loans increased 2.7% to $4.71 billion since December 31, 2023
- Non-performing assets decreased to $7.7 million (0.13% of total assets)
- Capital position remained strong with Tier 1 Leverage Ratio at 11.0%
The company reduced non-performing assets by $12.7 million in Q3 2024, primarily through the sale of three non-performing assets. Total stockholders' equity increased $40.3 million in the first nine months of 2024.
Great Southern Bancorp (NASDAQ:GSBC) ha riportato utili preliminari per il terzo trimestre del 2024 di $1.41 per azione diluita (reddito netto di $16.5 milioni), in aumento rispetto a $1.33 per azione nel terzo trimestre del 2023. Per i nove mesi terminati il 30 settembre 2024, gli utili sono stati di $3.99 per azione, in calo rispetto a $4.52 nello stesso periodo del 2023. I risultati chiave del terzo trimestre del 2024 includono:
- I proventi da interessi netti sono aumentati del 2.6% a $48.0 milioni
- Il margine di interesse netto era del 3.42%, in leggero calo rispetto al 3.43% nel terzo trimestre del 2023
- Il totale dei prestiti è aumentato del 2.7% a $4.71 miliardi dal 31 dicembre 2023
- Gli attivi non performanti sono diminuiti a $7.7 milioni (0.13% del totale attivi)
- La posizione patrimoniale è rimasta forte con un rapporto di leva Tier 1 dell'11.0%
La società ha ridotto gli attivi non performanti di $12.7 milioni nel terzo trimestre del 2024, principalmente attraverso la vendita di tre attivi non performanti. Il patrimonio netto totale degli azionisti è aumentato di $40.3 milioni nei primi nove mesi del 2024.
Great Southern Bancorp (NASDAQ:GSBC) reportó ganancias preliminares del tercer trimestre de 2024 de $1.41 por acción diluida ($16.5 millones de ingresos netos), un aumento desde $1.33 por acción en el tercer trimestre de 2023. Para los nueve meses que finalizaron el 30 de septiembre de 2024, las ganancias fueron de $3.99 por acción, una disminución desde $4.52 en el mismo período de 2023. Los resultados clave del tercer trimestre de 2024 incluyen:
- Los ingresos por intereses netos aumentaron un 2.6% a $48.0 millones
- El margen de interés neto fue del 3.42%, ligeramente por debajo del 3.43% en el tercer trimestre de 2023
- El total de préstamos aumentó un 2.7% a $4.71 mil millones desde el 31 de diciembre de 2023
- Los activos no rentables disminuyeron a $7.7 millones (0.13% del total de activos)
- La posición de capital se mantuvo fuerte con un ratio de apalancamiento Tier 1 del 11.0%
La empresa redujo activos no rentables en $12.7 millones en el tercer trimestre de 2024, principalmente a través de la venta de tres activos no rentables. El patrimonio total de los accionistas aumentó en $40.3 millones en los primeros nueve meses de 2024.
그레이트 사우던 뱅코프(Great Southern Bancorp) (NASDAQ:GSBC)는 2024년 3분기 희석 주당 $1.41의 예비 수익 ($1,650만 달러의 순이익)을 보고했으며, 이는 2023년 3분기의 $1.33에서 증가한 수치입니다. 2024년 9월 30일로 끝난 9개월 동안의 수익은 주당 $3.99로, 2023년 같은 기간의 $4.52에서 감소했습니다. 2024년 3분기의 주요 결과는 다음과 같습니다:
- 순이자 수익이 2.6% 증가하여 $4,800만에 도달했습니다
- 순이자 마진은 3.42%로, 2023년 3분기의 3.43%에서 약간 감소했습니다
- 총 대출이 2023년 12월 31일 이후 2.7% 증가하여 $47억 1천만에 달했습니다
- 부실 자산은 총 자산의 0.13%에 해당하는 $770만으로 감소했습니다
- 자본 비율이 강하게 유지되었습니다 Tier 1 레버리지 비율이 11.0%입니다
회사는 2024년 3분기에 주로 세 개의 부실 자산을 매각하여 부실 자산을 $1,270만 줄였습니다. 2024년 처음 아홉 개월 동안 주주 총 자본이 $4,030만 증가했습니다.
Great Southern Bancorp (NASDAQ:GSBC) a annoncé des résultats préliminaires pour le troisième trimestre 2024 de $1.41 par action diluée (un revenu net de $16.5 millions), en hausse par rapport à $1.33 par action au troisième trimestre 2023. Pour les neuf mois se terminant le 30 septembre 2024, les bénéfices étaient de $3.99 par action, en baisse par rapport à $4.52 pour la même période en 2023. Les résultats clés du troisième trimestre 2024 comprennent :
- Les revenus d'intérêts nets ont augmenté de 2.6% pour atteindre $48.0 millions
- La marge d'intérêt nette était de 3.42%, légèrement en baisse par rapport à 3.43% au troisième trimestre 2023
- Le total des prêts a augmenté de 2.7% pour atteindre $4.71 milliards depuis le 31 décembre 2023
- Les actifs non performants ont diminué à $7.7 millions (0.13% du total des actifs)
- La position de capitaux est restée solide avec un ratio de levier de Tier 1 de 11.0%
La société a réduit les actifs non performants de $12.7 millions au troisième trimestre 2024, principalement par la vente de trois actifs non performants. Les capitaux propres totaux des actionnaires ont augmenté de $40.3 millions au cours des neuf premiers mois de 2024.
Great Southern Bancorp (NASDAQ:GSBC) berichtete über vorläufige Erträge für das dritte Quartal 2024 von $1.41 pro verwässerter Aktie ($16,5 Millionen Nettoergebnis), ein Anstieg von $1.33 pro Aktie im dritten Quartal 2023. Für die neun Monate bis zum 30. September 2024 betrugen die Erträge $3.99 pro Aktie, ein Rückgang gegenüber $4.52 im selben Zeitraum von 2023. Die wichtigsten Ergebnisse des dritten Quartals 2024 sind:
- Die Nettozinseinnahmen stiegen um 2.6% auf $48.0 Millionen
- Die Nettozinsmarge lag bei 3.42%, was einen leichten Rückgang gegenüber 3.43% im dritten Quartal 2023 darstellt
- Die Gesamtdarlehen stiegen um 2.7% auf $4.71 Milliarden seit dem 31. Dezember 2023
- Die notleidenden Vermögenswerte reduzierten sich auf $7.7 Millionen (0.13% der Gesamtaktiva)
- Die Kapitalposition blieb stark mit einem Tier 1 Leverage Ratio von 11.0%
Das Unternehmen reduzierte die notleidenden Vermögenswerte um $12.7 Millionen im dritten Quartal 2024, hauptsächlich durch den Verkauf von drei notleidenden Vermögenswerten. Das gesamte Eigenkapital der Aktionäre stieg in den ersten neun Monaten 2024 um $40.3 Millionen.
- Earnings per share increased from $1.33 in Q3 2023 to $1.41 in Q3 2024
- Net interest income grew 2.6% year-over-year to $48.0 million in Q3 2024
- Total loans increased 2.7% to $4.71 billion since December 31, 2023
- Non-performing assets decreased to $7.7 million (0.13% of total assets)
- Capital position remained strong with Tier 1 Leverage Ratio at 11.0%
- Total stockholders' equity increased $40.3 million in the first nine months of 2024
- Earnings per share for the nine months ended September 30, 2024 decreased to $3.99 from $4.52 in the same period of 2023
- Net interest margin slightly decreased to 3.42% from 3.43% in Q3 2023
- The company recorded a $1.2 million provision for credit losses in Q3 2024
- Non-interest income decreased $860,000 to $7.0 million compared to Q3 2023
Insights
Great Southern Bancorp's Q3 2024 results show resilience in a challenging environment. Earnings per share increased to
Key positives include:
- Loan portfolio growth of
2.7% year-to-date - Significant reduction in non-performing assets to
0.13% of total assets - Strong capital position with Tier 1 Leverage Ratio at
11.0%
However, challenges persist:
- Ongoing pressure on deposit costs due to competition
- Slight decrease in net interest margin year-over-year
$1.2 million provision for credit losses
Overall, GSBC demonstrates solid financial management and asset quality improvement, positioning it well to navigate ongoing economic uncertainties.
Great Southern Bancorp's Q3 results highlight its adept navigation of the current banking landscape. The company's ability to maintain a stable net interest margin of
The significant reduction in non-performing assets to
However, the banking sector faces ongoing challenges:
- Potential margin pressure from recent Fed rate cuts
- Continued competition for deposits
- Uncertain economic conditions affecting loan demand and credit quality
GSBC's strong liquidity position and capital ratios provide a buffer against these headwinds, positioning it well for potential opportunities in a changing market environment.
Preliminary Financial Results and Business Update for the Quarter and Nine Months Ended September 30, 2024
SPRINGFIELD, Mo., Oct. 16, 2024 (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 September 30, 2024, were
Preliminary earnings for the nine months ended September 30, 2024, were
For the quarter ended September 30, 2024, annualized return on average common equity was
Third Quarter 2024 Key Results:
- Significant or Non-Recurring Items:
During the three months ended September 30, 2024, the Company reduced its non-performing assets by$12.7 million , primarily through the resolution by sale of three unrelated non-performing assets. The Company recorded a gain on the sale of these foreclosed assets of$459,000 in the quarter ended September 30, 2024. - Capital: The Company’s capital position remained strong as of September 30, 2024, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of September 30, 2024, the Company’s Tier 1 Leverage Ratio was
11.0% , Common Equity Tier 1 Capital Ratio was12.3% , Tier 1 Capital Ratio was12.8% , and Total Capital Ratio was15.5% . Total stockholders’ equity increased$40.3 million in the nine months ended September 30, 2024, and the Company’s tangible common equity to tangible assets ratio was10.0% at September 30, 2024. Retained earnings increased$23.6 million during this same nine-month period. See “Capital” section for additional information regarding the changes to total stockholders’ equity. - Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of
$1.12 billion and$305.0 million , respectively, at September 30, 2024. In addition, at September 30, 2024, the Company had unpledged securities with a market value totaling$370.0 million , which could be pledged as collateral for additional borrowing capacity at either the FHLBank or Federal Reserve Bank. Based partially on the foregoing, the Company believes it has ample sources of liquidity as of September 30, 2024. - Net Interest Income: Net interest income for the third quarter of 2024 increased
$1.2 million (or approximately2.6% ) to$48.0 million compared to$46.7 million for the third quarter of 2023. Net interest margin was3.42% for the quarter ended September 30, 2024, compared to3.43% for the quarter ended September 30, 2023. Net interest income and net interest margin in the second quarter of 2024 were$46.8 million and3.43% , respectively. - Total Loans: Total outstanding loans, excluding mortgage loans held for sale, increased
$121.7 million , or2.7% , from$4.59 billion at December 31, 2023, to$4.71 billion at September 30, 2024. This increase was primarily in other residential (multi-family) loans with decreases in commercial construction loans, commercial business loans and one- to four-family residential loans. As construction projects are completed, the loans either pay off or move to their respective loan categories, primarily multi-family or commercial real estate. - Asset Quality: Non-performing assets and potential problem loans totaled
$13.7 million at September 30, 2024, a decrease of$5.4 million from$19.1 million at December 31, 2023. At September 30, 2024, non-performing assets were$7.7 million (0.13% of total assets), a decrease of$4.1 million from$11.8 million (0.20% of total assets) at December 31, 2023. Non-performing assets decreased$12.7 million compared to June 30, 2024. The decrease in non-performing assets in the three months ended September 30, 2024, was mainly due to the sale of two foreclosed assets and the payoff of a$2.4 million non-performing commercial real estate loan. The Company experienced net charge-offs of$1.5 million in each of the three and nine months ended September 30, 2024. See “Asset Quality” section for additional information regarding the changes to non-performing assets.
Great Southern President and CEO Joseph W. Turner commented, “Our third-quarter results reflect solid earnings and a strong balance sheet, despite ongoing challenges in the broader economic and banking environment. We reported earnings of
He continued, “Net interest income increased
Turner remarked, “One of our important achievements this quarter was the significant reduction in non-performing assets, which decreased by
He then noted, "Our total loan portfolio, excluding mortgage loans held for sale, has increased by
Regarding expenses, Turner noted, "Non-interest expenses decreased by
In closing, Turner noted, "We view our capital position as very important and a strength of our Company. Stockholders' equity increased by
Selected Financial Data:
(In thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net interest income | $ | 47,975 | $ | 46,738 | $ | 139,609 | $ | 148,068 | |||||||
Provision (credit) for credit losses on loans and unfunded commitments | 1,137 | (1,195 | ) | 1,160 | (2,140 | ) | |||||||||
Non-interest income | 6,992 | 7,852 | 23,631 | 23,510 | |||||||||||
Non-interest expense | 33,717 | 35,557 | 104,548 | 104,738 | |||||||||||
Provision for income taxes | 3,623 | 4,349 | 10,647 | 14,325 | |||||||||||
Net income | $ | 16,490 | $ | 15,879 | $ | 46,885 | $ | 54,655 | |||||||
Earnings per diluted common share | $ | 1.41 | $ | 1.33 | $ | 3.99 | $ | 4.52 |
NET INTEREST INCOME
Net interest income for the third quarter of 2024 increased
Net interest income for the nine months ended September 30, 2024 decreased
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 was
In July 2022, the Company entered into two additional interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of each swap is
The Company’s net interest income in the third quarter of 2024 increased 2
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 September 30, 2024, non-interest income decreased
- Overdraft and insufficient funds fees: Overdraft and insufficient funds fees decreased
$710,000 compared to the prior-year quarter. This decrease was primarily due to the continuation of a multi-year trend whereby our customers are choosing to forego authorizing payments of certain items which exceed their account balances, resulting in fewer overdrafts in checking accounts and related fees. - Point-of-sale and ATM fees: Point-of-sale and ATM fees decreased
$257,000 compared to the prior-year quarter primarily due to a portion of these transactions now being routed through channels with lower fees to us, which we expect will continue in future periods. - Net gains on loan sales: Net gains on loan sales increased
$292,000 compared to the prior-year quarter. The increase was partially due to an increase in balance of fixed-rate single-family mortgage loans sold during the third quarter of 2024 compared to the third quarter of 2023. Fixed-rate single-family mortgage loans originated are generally subsequently sold in the secondary market. The Company realized higher premiums on the sale of loans in the 2024 third quarter compared to the 2023 third quarter, as market interest rates were more stable in the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023.
For the nine months ended September 30, 2024, non-interest income increased
- Overdraft and insufficient funds fees: Overdraft and insufficient funds fees decreased
$2.1 million compared to the prior-year period, for the same reason noted in the quarterly comparison above. - Point-of-sale and ATM fees: Point-of-sale and ATM fees decreased
$966,000 compared to the prior-year period, for the same reason noted in the quarterly comparison above. - Net gains on loan sales: Net gains on loan sales increased
$998,000 compared to the prior-year period, for the same reason noted in the quarterly comparison above. - Other income: Other income increased
$1.9 million compared to the prior-year period. In the second quarter of 2024, the Company recorded$2.7 million of other income, net of expenses and write-offs, related to the termination of the Master Agreement between the Company and a third-party software vendor for the conversion of the Company’s core banking platform. This termination was previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. This amount represented the elimination of certain deferred credits and other liabilities, along with the write-off of certain capitalized hardware, software and other assets, that previously had been recorded as part of the preparation to convert to the new core-banking platform.
NON-INTEREST EXPENSE
For the quarter ended September 30, 2024, non-interest expense decreased
- Legal, Audit and Other Professional Fees: Legal, audit and other professional fees decreased
$1.0 million from the prior-year quarter, to$809,000. In the quarter ended September 30, 2024, the Company expensed a total of$39,000 , compared to$903,000 expensed in the quarter ended September 30, 2023, related to training and implementation costs for the intended core systems conversion and professional fees to consultants engaged to support the Company’s proposed transition of core and ancillary software and information technology systems. - Expense on Other Real Estate Owned: Expense on other real estate owned decreased
$598,000 from the prior-year quarter, to a gain of$536,000 in the quarter ended September 30, 2024. In the third quarter of 2024, the Company recorded a gain on foreclosed asset sales of$459,000 compared to$22,000 in the third quarter of 2023. - Net occupancy expenses: Net occupancy expenses increased
$409,000 from the prior-year quarter. Various components of computer license and support expenses collectively increased by$369,000 in the third quarter of 2024 compared to the third quarter of 2023.
For the nine months ended September 30, 2024, non-interest expense decreased
- Legal, Audit and Other Professional Fees: Legal, audit and other professional fees decreased
$1.1 million from the prior-year period, to$4.4 million . In the 2024 period, the Company expensed a total of$1.9 million , compared to$2.7 million expensed in the 2023 period, related to training and implementation costs for the intended core systems conversion and professional fees to consultants engaged to support the Company’s proposed transition of core and ancillary software and information technology systems. - Expense on Other Real Estate Owned: Expense on other real estate owned decreased
$453,000 from the prior-year period, to a gain of$190,000. In the 2024 period, the Company recorded a gain on foreclosed loan sales of$491,000 compared to$41,000 in the 2023 period. - Net occupancy expenses: Net occupancy expenses increased
$960,000 from the prior-year period, for the same reason noted in the quarterly comparison above. - Salaries and employee benefits: Salaries and employee benefits increased
$536,000 , or0.9% , from the prior-year period. Much of this increase related to normal annual merit increases in various lending and operations areas.
The Company’s efficiency ratio for the quarter ended September 30, 2024, was
INCOME TAXES
For the three months ended September 30, 2024 and 2023, the Company's effective tax rate was
CAPITAL
As of September 30, 2024, total stockholders’ equity was
Included in stockholders’ equity at September 30, 2024 and December 31, 2023, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling
In addition, included in stockholders’ equity at September 30, 2024, were realized gains (net of taxes) on the Company’s terminated cash flow hedge (interest rate swap), totaling
Also included in stockholders’ equity at September 30, 2024, was an unrealized loss (net of taxes) on the Company’s two outstanding cash flow hedges (interest rate swaps) totaling
As noted above, total stockholders' equity increased
The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled
On a preliminary basis, as of September 30, 2024, the Company’s Tier 1 Leverage Ratio was
On September 30, 2024, and on a preliminary basis, the Bank’s Tier 1 Leverage Ratio was
In December 2022, the Company’s Board of Directors authorized the purchase of an additional one million shares of the Company’s common stock. As of September 30, 2024, a total of approximately 488,000 shares were available in our stock repurchase authorization.
During the three months ended September 30, 2024, the Company repurchased 2,971 shares of its common stock at an average price of
LIQUIDITY AND DEPOSITS
Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations in a timely manner. Liquid assets include cash, interest-bearing deposits with financial institutions and certain investment securities and loans. As a result of the Company’s ability to generate liquidity primarily through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its borrowers’ credit needs.
The Company’s primary sources of funds are customer deposits, FHLBank advances, other borrowings, loan repayments, unpledged securities, proceeds from sales of loans and available-for-sale securities and funds provided from operations. The Company utilizes some or all of these sources of funds depending on the comparative costs and availability at the time. The Company has from time to time chosen not to pay rates on deposits as high as the rates paid by certain of its competitors and, when believed to be appropriate, supplements deposits with less expensive alternative sources of funds.
At September 30, 2024, the Company had the following available secured lines and on-balance sheet liquidity:
September 30, 2024 | ||||||
Federal Home Loan Bank line | $ | 1,116.7 million | ||||
Federal Reserve Bank line | $ | 305.0 million | ||||
Cash and cash equivalents | $ | 208.4 million | ||||
Unpledged securities – Available-for-sale | $ | 344.3 million | ||||
Unpledged securities – Held-to-maturity | $ | 25.5 million | ||||
During the three months ended September 30, 2024, the Company’s total deposits increased
During the nine months ended September 30, 2024, the Company’s total deposits decreased
At September 30, 2024, the Company had the following deposit balances:
September 30, 2024 | ||||||
Interest-bearing checking | $ | 2,236.1 million | ||||
Non-interest-bearing checking | 856.7 million | |||||
Time deposits | 794.2 million | |||||
Brokered deposits | 810.4 million | |||||
At September 30, 2024, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company’s consolidated subsidiaries, were approximately
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):
September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||
Closed non-construction loans with unused available lines | ||||||||||||
Secured by real estate (one- to four-family) | $ | 205,677 | $ | 200,630 | $ | 206,992 | $ | 203,964 | $ | 199,182 | $ | 175,682 |
Secured by real estate (not one- to four-family) | — | — | — | — | — | 23,752 | ||||||
Not secured by real estate – commercial business | 120,847 | 122,685 | 120,387 | 82,435 | 104,452 | 91,786 | ||||||
Closed construction loans with unused available lines | ||||||||||||
Secured by real estate (one-to four-family) | 79,554 | 109,153 | 103,839 | 101,545 | 100,669 | 74,501 | ||||||
Secured by real estate (not one-to four-family) | 477,741 | 570,621 | 680,149 | 719,039 | 1,444,450 | 1,092,029 | ||||||
Loan commitments not closed | ||||||||||||
Secured by real estate (one-to four-family) | 20,622 | 21,698 | 20,410 | 12,347 | 16,819 | 53,529 | ||||||
Secured by real estate (not one-to four-family) | 118,046 | 33,273 | 50,858 | 48,153 | 157,645 | 146,826 | ||||||
Not secured by real estate – commercial business | 17,821 | 14,949 | 9,022 | 11,763 | 50,145 | 12,920 | ||||||
$ | 1,040,308 | $ | 1,073,009 | $ | 1,191,657 | $ | 1,179,246 | $ | 2,073,362 | $ | 1,671,025 |
PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES
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 changes in underwriting standards, portfolio mix, delinquency level or term, as well as for changes in economic conditions, including but not limited to changes in the national unemployment rate, commercial real estate price index, consumer sentiment, gross domestic product (GDP) and construction spending.
Challenging or worsening economic conditions from higher inflation or interest rates, COVID-19 and subsequent variant outbreaks or similar events, global unrest 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, ongoing correspondence with borrowers and problem loan workouts. 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 September 30, 2024, the Company recorded provision expense of
The Bank’s allowance for credit losses as a percentage of total loans was
ASSET QUALITY
At September 30, 2024, non-performing assets were
Compared to December 31, 2023, non-performing loans decreased
Compared to December 31, 2023, foreclosed assets increased
Activity in the non-performing loans categories during the quarter ended September 30, 2024, was as follows:
Beginning Balance, July 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, September 30 | |||||||||||||
(In thousands) | ||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||
Subdivision construction | — | — | — | — | — | — | — | — | ||||||||||||
Land development | — | 553 | — | — | — | — | — | 553 | ||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||
One- to four-family residential | 1,147 | 41 | (524 | ) | — | — | — | (71 | ) | 593 | ||||||||||
Other residential (multi-family) | — | — | — | — | — | — | — | — | ||||||||||||
Commercial real estate | 9,764 | 287 | — | — | (230 | ) | (1,368 | ) | (2,351 | ) | 6,102 | |||||||||
Commercial business | — | 139 | — | — | — | — | — | 139 | ||||||||||||
Consumer | 73 | 73 | — | — | — | (15 | ) | (35 | ) | 96 | ||||||||||
Total non-performing loans | $ | 10,984 | $ | 1,093 | $ | (524 | ) | $ | — | $ | (230 | ) | $ | (1,383 | ) | $ | (2,457 | ) | $ | 7,483 |
At September 30, 2024, the non-performing commercial real estate category included three loans, none of which was added during the current quarter. The largest relationship in the category, which totaled
Potential problem loans decreased
Activity in the potential problem loans category during the quarter ended September 30, 2024, was as follows:
Beginning Balance, July 1 | Additions to Potential Problem | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Loan Advances (Payments) | Ending Balance, September 30 | |||||||||||||
(In thousands) | ||||||||||||||||||||
One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||
Subdivision construction | — | — | — | — | — | — | — | — | ||||||||||||
Land development | — | — | — | — | — | — | — | — | ||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||
One- to four-family residential | 326 | 378 | — | (32 | ) | — | — | (4 | ) | 668 | ||||||||||
Other residential (multi-family) | — | — | — | — | — | — | — | — | ||||||||||||
Commercial real estate | 4,358 | — | — | — | — | — | (19 | ) | 4,339 | |||||||||||
Commercial business | 208 | — | — | — | — | — | (15 | ) | 193 | |||||||||||
Consumer | 713 | 124 | (6 | ) | — | — | (28 | ) | (13 | ) | 790 | |||||||||
Total potential problem loans | $ | 5,605 | $ | 502 | $ | (6 | ) | $ | (32 | ) | $ | — | $ | (28 | ) | $ | (51 | ) | $ | 5,990 |
At September 30, 2024, the commercial real estate category of potential problem loans included three loans, all of which are part of one relationship and were added during the second quarter of 2024. This relationship is collateralized by three nursing care facilities located in southwest Missouri. The borrower’s business cash flow was negatively impacted by a labor shortage and a decrease in Medicaid reimbursement during 2022-2023. Monthly payments were timely made prior to the transfer to this category and have continued to be paid. The one- to four-family residential category of potential problem loans included seven 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 September 30, 2024 was as follows:
Beginning Balance, July 1 | Additions | ORE and Repossession Sales | Capitalized Costs | ORE and Repossession Write-Downs | Ending Balance, September 30 | ||||||||
(In thousands) | |||||||||||||
One-to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |
Subdivision construction | — | — | — | — | — | — | |||||||
Land development | 133 | — | (133 | ) | — | — | — | ||||||
Commercial construction | — | — | — | — | — | — | |||||||
One- to four-family residential | — | — | — | — | — | — | |||||||
Other residential (multi-family) | 9,279 | — | (9,279 | ) | — | — | — | ||||||
Commercial real estate | — | 230 | — | — | — | 230 | |||||||
Commercial business | — | — | — | — | — | — | |||||||
Consumer | 17 | 35 | (19 | ) | — | — | 33 | ||||||
Total foreclosed assets and repossessions | $ | 9,429 | $ | 265 | $ | (9,431 | ) | $ | — | $ | — | $ | 263 |
At September 30, 2024, the commercial real estate category of foreclosed assets consisted of one property which was transferred from non-performing loans during the three months ended September 30, 2024, as indicated above, and was subsequently sold in October 2024. 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. The other residential (multi-family) category of foreclosed assets previously included one property consisting of student housing in Texas, which was added during the three months ended June 30, 2024, as indicated above. This property was sold in the three months ended September 30, 2024, with the Company realizing a gain of
BUSINESS INITIATIVES
Since early 2022, Great Southern had been preparing to convert to a new core banking platform (New System) to be delivered by a third-party vendor. As previously disclosed, the migration to the New System, originally scheduled for the third quarter of 2023, was delayed to mid-2024. In addition, as also previously disclosed, certain contractual disputes arose between Great Southern and the third-party vendor. While discussions were ongoing between the parties for an extended period of time, no meaningful progress was made in resolving the contractual disputes.
The system migration efforts were beset by a variety of significant issues, including having missed a second conversion date because of continued operational and system problems. Therefore, Great Southern took the following actions to protect its interests. On April 24, 2024, Great Southern informed the third-party vendor that it was terminating the Master Agreement between Great Southern and the third-party vendor in accordance with Great Southern’s rights under the Master Agreement. In addition, on April 24, 2024, Great Southern initiated legal action against the third-party vendor by filing a complaint in the U.S. District Court for the Western District of Missouri, Southern Division. The complaint seeks to recover damages caused by the third-party vendor’s material breach of the Master Agreement, inability and/or inaction on the part of the third-party vendor to effectively and timely manage the system migration, as well as the third-party vendor’s misrepresentations and omissions. The third-party vendor filed a counterclaim alleging that Great Southern terminated the Master Agreement without cause and that Great Southern must pay an early termination fee in an amount to be proven at trial. Great Southern denies the allegations in the third-party vendor's counterclaim and will vigorously defend itself. The parties continue informal settlement discussions, but there is no guarantee that the parties will reach a mutually agreed upon settlement to terminate the litigation.
Great Southern now expects to continue operations with its current core banking provider, which will allow Great Southern to offer its full array of products and services.
In 2025, the banking center at Benton and Chestnut in Springfield, Mo. will be replaced with a newly-constructed building on the same property at 723 N. Benton. Construction on the new building is anticipated to begin in the first quarter of 2025, with completion in the fourth quarter of 2025. During construction, customers will be served in a temporary facility on the property. The Company also has 11 other banking centers and an Express Center in Springfield.
Kris Conley, Chief Retail Banking Officer, will retire in December 2024 after a notable career at Great Southern Bank. He joined the company in 1998 and has led the retail banking division since 2010. During his tenure, Great Southern expanded from 30 banking centers, mainly in southwest Missouri, to 89 banking centers across six states. In early 2023, Conley announced his retirement plans to facilitate a smooth transition, with Laura Smith named as his successor. Smith, who has been with Great Southern since 2003, previously managed the Company’s investment services division.
Kelly Polonus, Chief Communications & Marketing Officer, will also retire in December 2024, concluding a distinguished 41-year career in banking, including the last 22 years at Great Southern Bank. She announced her retirement in mid-2023 to ensure a seamless management transition. Succeeding Polonus will be Stacy Fender, who joined Great Southern in June 2024 after serving 18 years in communications and marketing roles at a regional healthcare system.
The Company will host a conference call on Thursday, October 17, 2024, at 2:00 p.m. Central Time to discuss third quarter 2024 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 at https://register.vevent.com/register/BIcf52d5fdfdb24c6383d492e9d4e7b00b.
Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company operates 89 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. 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 other 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.
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) the remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health; (iv) fluctuations in interest rates, the effects of inflation or a potential recession, whether caused by Federal Reserve actions or otherwise; (v) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (vi) slower economic growth caused by changes in energy prices, supply chain disruptions or other factors; (vii) 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; (viii) the possibility of realized or unrealized losses on securities held in the Company's investment portfolio; (ix) the Company's ability to access cost-effective funding and maintain sufficient liquidity; (x) fluctuations in real estate values and both residential and commercial real estate market conditions; (xi) the ability to adapt successfully to technological changes to meet customers' needs and developments in the marketplace; (xii) 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; (xiii) legislative or regulatory changes that adversely affect the Company's business; (xiv) changes in accounting policies and practices or accounting standards; (xv) 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; (xvi) costs and effects of litigation, including settlements and judgments; (xvii) competition; and (xviii) 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 in the Company’s most recent Annual Report on Form 10-K, including, without limitation, those described under “Item 1A. Risk Factors,” subsequent Quarterly Reports on Form 10-Q and other documents filed or furnished from time to time by the Company with the SEC (which are available on our website at www.greatsouthernbank.com and the SEC’s website at www.sec.gov), could affect the Company's financial performance and 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 nine months ended September 30, 2024 and 2023, and the three months ended June 30, 2024, are not necessarily indicative of the results of operations which may be expected for any future period.
September 30, | December 31, | ||||
2024 | 2023 | ||||
Selected Financial Condition Data: | (In thousands) | ||||
Total assets | $ | 6,036,521 | $ | 5,812,402 | |
Loans receivable, gross | 4,781,953 | 4,661,348 | |||
Allowance for credit losses | 64,915 | 64,670 | |||
Other real estate owned, net | 263 | 23 | |||
Available-for-sale securities, at fair value | 565,225 | 478,207 | |||
Held-to-maturity securities, at amortized cost | 189,257 | 195,023 | |||
Deposits | 4,697,460 | 4,721,708 | |||
Total borrowings | 618,651 | 423,806 | |||
Total stockholders’ equity | 612,090 | 571,829 | |||
Non-performing assets | 7,746 | 11,771 |
Three Months Ended | Nine Months Ended | Three Months Ended | |||||||||||||||||
September 30, | September 30, | June 30, | |||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Selected Operating Data: | |||||||||||||||||||
Interest income | $ | 83,796 | $ | 75,272 | $ | 242,113 | $ | 220,353 | $ | 80,927 | |||||||||
Interest expense | 35,821 | 28,534 | 102,504 | 72,285 | 34,109 | ||||||||||||||
Net interest income | 47,975 | 46,738 | 139,609 | 148,068 | 46,818 | ||||||||||||||
Provision (credit) for credit losses on loans and unfunded commitments | 1,137 | (1,195 | ) | 1,160 | (2,140 | ) | (607 | ) | |||||||||||
Non-interest income | 6,992 | 7,852 | 23,631 | 23,510 | 9,833 | ||||||||||||||
Non-interest expense | 33,717 | 35,557 | 104,548 | 104,738 | 36,409 | ||||||||||||||
Provision for income taxes | 3,623 | 4,349 | 10,647 | 14,325 | 3,861 | ||||||||||||||
Net income | $ | 16,490 | $ | 15,879 | $ | 46,885 | $ | 54,655 | $ | 16,988 |
At or For the Three Months Ended | At or For the Nine Months Ended | At or For the Three Months Ended | |||||||||||||||
September 30, | September 30, | June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
Per Common Share: | |||||||||||||||||
Net income (fully diluted) | $ | 1.41 | $ | 1.33 | $ | 3.99 | $ | 4.52 | $ | 1.45 | |||||||
Book value | $ | 52.40 | $ | 44.81 | $ | 52.40 | $ | 44.81 | $ | 49.11 | |||||||
Earnings Performance Ratios: | |||||||||||||||||
Annualized return on average assets | |||||||||||||||||
Annualized return on average common stockholders’ equity | |||||||||||||||||
Net interest margin | |||||||||||||||||
Average interest rate spread | |||||||||||||||||
Efficiency ratio | |||||||||||||||||
Non-interest expense to average total assets | |||||||||||||||||
Asset Quality Ratios: | |||||||||||||||||
Allowance for credit losses to period-end loans | |||||||||||||||||
Non-performing assets to period-end assets | |||||||||||||||||
Non-performing loans to period-end loans | |||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | (0.01)% | ||||||||||||||||
Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except number of shares) | |||||||||
September 30, 2024 | December 31, 2023 | June 30, 2024 | |||||||
Assets | |||||||||
Cash | $ | 105,098 | $ | 102,529 | $ | 109,639 | |||
Interest-bearing deposits in other financial institutions | 103,267 | 108,804 | 76,830 | ||||||
Cash and cash equivalents | 208,365 | 211,333 | 186,469 | ||||||
Available-for-sale securities | 565,225 | 478,207 | 549,084 | ||||||
Held-to-maturity securities | 189,257 | 195,023 | 191,224 | ||||||
Mortgage loans held for sale | 9,959 | 5,849 | 13,116 | ||||||
Loans receivable, net of allowance for credit losses of | 4,711,276 | 4,589,620 | 4,633,628 | ||||||
Interest receivable | 22,262 | 21,206 | 22,420 | ||||||
Prepaid expenses and other assets | 142,685 | 106,225 | 144,552 | ||||||
Other real estate owned and repossessions, net | 263 | 23 | 9,429 | ||||||
Premises and equipment, net | 133,311 | 138,591 | 134,527 | ||||||
Goodwill and other intangible assets | 10,202 | 10,527 | 10,310 | ||||||
Federal Home Loan Bank stock and other interest-earning assets | 17,912 | 26,313 | 30,052 | ||||||
Current and deferred income taxes | 25,804 | 29,485 | 33,955 | ||||||
Total Assets | $ | 6,036,521 | $ | 5,812,402 | $ | 5,958,766 | |||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities | |||||||||
Deposits | $ | 4,697,460 | $ | 4,721,708 | $ | 4,615,295 | |||
Securities sold under reverse repurchase agreements with customers | 75,829 | 70,843 | 74,155 | ||||||
Short-term borrowings | 442,246 | 252,610 | 476,347 | ||||||
Subordinated debentures issued to capital trust | 25,774 | 25,774 | 25,774 | ||||||
Subordinated notes | 74,802 | 74,579 | 74,727 | ||||||
Accrued interest payable | 12,002 | 6,225 | 9,006 | ||||||
Advances from borrowers for taxes and insurance | 9,625 | 4,946 | 8,240 | ||||||
Accounts payable and accrued expenses | 79,746 | 76,401 | 99,420 | ||||||
Liability for unfunded commitments | 6,947 | 7,487 | 7,010 | ||||||
Total Liabilities | 5,424,431 | 5,240,573 | 5,389,974 | ||||||
Stockholders’ Equity | |||||||||
Capital stock | |||||||||
Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding September 2024, December 2023 and June 2024 -0- shares | — | — | — | ||||||
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding September 2024 – 11,680,968 shares; December 2023 – 11,804,430 shares; June 2024 – 11,582,606 shares | 117 | 118 | 116 | ||||||
Additional paid-in capital | 47,914 | 44,320 | 45,321 | ||||||
Retained earnings | 593,422 | 569,872 | 578,800 | ||||||
Accumulated other comprehensive gain (loss) | (29,363 | ) | (42,481 | ) | (55,445 | ) | |||
Total Stockholders’ Equity | 612,090 | 571,829 | 568,792 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 6,036,521 | $ | 5,812,402 | $ | 5,958,766 |
Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | |||||||||||||||||
September 30, | September 30, | June 30, | |||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | |||||||||||||||
Interest Income | |||||||||||||||||||
Loans | $ | 76,425 | $ | 68,878 | $ | 221,796 | $ | 201,758 | $ | 74,295 | |||||||||
Investment securities and other | 7,371 | 6,394 | 20,317 | 18,595 | 6,632 | ||||||||||||||
83,796 | 75,272 | 242,113 | 220,353 | 80,927 | |||||||||||||||
Interest Expense | |||||||||||||||||||
Deposits | 28,486 | 25,233 | 83,906 | 61,668 | 27,783 | ||||||||||||||
Securities sold under reverse repurchase agreements | 385 | 308 | 1,112 | 871 | 394 | ||||||||||||||
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 5,388 | 1,433 | 12,805 | 5,156 | 4,373 | ||||||||||||||
Subordinated debentures issued to capital trust | 456 | 454 | 1,364 | 1,273 | 454 | ||||||||||||||
Subordinated notes | 1,106 | 1,106 | 3,317 | 3,317 | 1,105 | ||||||||||||||
35,821 | 28,534 | 102,504 | 72,285 | 34,109 | |||||||||||||||
Net Interest Income | 47,975 | 46,738 | 139,609 | 148,068 | 46,818 | ||||||||||||||
Provision for Credit Losses on Loans | 1,200 | — | 1,700 | 1,500 | — | ||||||||||||||
Provision (Credit) for Unfunded Commitments | (63 | ) | (1,195 | ) | (540 | ) | (3,640 | ) | (607 | ) | |||||||||
Net Interest Income After Provision for Credit Losses and Provision (Credit) for Unfunded Commitments | 46,838 | 47,933 | 138,449 | 150,208 | 47,425 | ||||||||||||||
Noninterest Income | |||||||||||||||||||
Commissions | 360 | 232 | 1,010 | 887 | 269 | ||||||||||||||
Overdraft and Insufficient funds fees | 1,307 | 2,017 | 3,826 | 5,902 | 1,230 | ||||||||||||||
POS and ATM fee income and service charges | 3,467 | 3,724 | 10,238 | 11,204 | 3,588 | ||||||||||||||
Net gains on loan sales | 1,076 | 784 | 2,880 | 1,882 | 1,127 | ||||||||||||||
Late charges and fees on loans | 77 | 149 | 380 | 454 | 136 | ||||||||||||||
Gain (loss) on derivative interest rate products | (37 | ) | 55 | (57 | ) | (234 | ) | (7 | ) | ||||||||||
Other income | 742 | 891 | 5,354 | 3,415 | 3,490 | ||||||||||||||
6,992 | 7,852 | 23,631 | 23,510 | 9,833 | |||||||||||||||
Noninterest Expense | |||||||||||||||||||
Salaries and employee benefits | 19,548 | 19,673 | 59,090 | 58,554 | 19,886 | ||||||||||||||
Net occupancy and equipment expense | 8,138 | 7,729 | 23,818 | 22,858 | 7,841 | ||||||||||||||
Postage | 861 | 844 | 2,445 | 2,586 | 777 | ||||||||||||||
Insurance | 1,052 | 1,301 | 3,459 | 3,178 | 1,263 | ||||||||||||||
Advertising | 928 | 950 | 2,169 | 2,500 | 891 | ||||||||||||||
Office supplies and printing | 232 | 294 | 735 | 820 | 236 | ||||||||||||||
Telephone | 669 | 657 | 2,075 | 2,048 | 685 | ||||||||||||||
Legal, audit and other professional fees | 809 | 1,849 | 4,398 | 5,477 | 1,864 | ||||||||||||||
Expense on other real estate and repossessions | (536 | ) | 62 | (190 | ) | 263 | 285 | ||||||||||||
Acquired intangible asset amortization | 108 | 59 | 325 | 228 | 109 | ||||||||||||||
Other operating expenses | 1,908 | 2,139 | 6,224 | 6,226 | 2,572 | ||||||||||||||
33,717 | 35,557 | 104,548 | 104,738 | 36,409 | |||||||||||||||
Income Before Income Taxes | 20,113 | 20,228 | 57,532 | 68,980 | 20,849 | ||||||||||||||
Provision for Income Taxes | 3,623 | 4,349 | 10,647 | 14,325 | 3,861 | ||||||||||||||
Net Income | $ | 16,490 | $ | 15,879 | $ | 46,885 | $ | 54,655 | $ | 16,988 | |||||||||
Earnings Per Common Share | |||||||||||||||||||
Basic | $ | 1.41 | $ | 1.33 | $ | 4.01 | $ | 4.53 | $ | 1.46 | |||||||||
Diluted | $ | 1.41 | $ | 1.33 | $ | 3.99 | $ | 4.52 | $ | 1.45 | |||||||||
Dividends Declared Per Common Share | $ | 0.40 | $ | 0.40 | $ | 1.20 | $ | 1.20 | $ | 0.40 | |||||||||
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
September 30, 2024 | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | |||||||||||||||||||
Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||
Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||
One- to four-family residential | 4.07 | % | $ | 859,737 | $ | 8,781 | 4.06 | % | $ | 903,147 | $ | 8,594 | 3.78 | % | |||||||
Other residential | 7.32 | 1,291,490 | 24,208 | 7.46 | 829,520 | 14,702 | 7.03 | ||||||||||||||
Commercial real estate | 6.20 | 1,515,949 | 24,115 | 6.33 | 1,466,739 | 21,730 | 5.88 | ||||||||||||||
Construction | 7.33 | 644,620 | 12,633 | 7.80 | 911,731 | 16,691 | 7.26 | ||||||||||||||
Commercial business | 6.36 | 230,956 | 3,827 | 6.59 | 313,909 | 4,812 | 6.08 | ||||||||||||||
Other loans | 6.23 | 169,172 | 2,648 | 6.23 | 178,030 | 2,128 | 4.74 | ||||||||||||||
Industrial revenue bonds | 6.13 | 11,663 | 213 | 7.26 | 12,322 | 221 | 7.11 | ||||||||||||||
Total loans receivable | 6.30 | 4,723,587 | 76,425 | 6.44 | 4,615,398 | 68,878 | 5.92 | ||||||||||||||
Investment securities | 3.06 | 758,793 | 6,092 | 3.19 | 678,564 | 5,018 | 2.93 | ||||||||||||||
Other interest-earning assets | 4.85 | 96,641 | 1,279 | 5.27 | 104,546 | 1,376 | 5.22 | ||||||||||||||
Total interest-earning assets | 5.85 | 5,579,021 | 83,796 | 5.98 | 5,398,508 | 75,272 | 5.53 | ||||||||||||||
Non-interest-earning assets: | |||||||||||||||||||||
Cash and cash equivalents | 104,409 | 91,860 | |||||||||||||||||||
Other non-earning assets | 269,972 | 213,411 | |||||||||||||||||||
Total assets | $ | 5,953,402 | $ | 5,703,779 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing demand and savings | 1.62 | $ | 2,210,988 | 10,030 | 1.80 | $ | 2,195,848 | 8,064 | 1.46 | ||||||||||||
Time deposits | 3.77 | 856,418 | 8,664 | 4.02 | 996,220 | 8,450 | 3.37 | ||||||||||||||
Brokered deposits | 4.91 | 745,373 | 9,792 | 5.23 | 669,829 | 8,719 | 5.16 | ||||||||||||||
Total deposits | 2.76 | 3,812,779 | 28,486 | 2.97 | 3,861,897 | 25,233 | 2.59 | ||||||||||||||
Securities sold under reverse repurchase agreements | 1.79 | 76,572 | 385 | 2.00 | 56,152 | 308 | 2.18 | ||||||||||||||
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 4.99 | 408,739 | 5,388 | 5.24 | 103,828 | 1,433 | 5.47 | ||||||||||||||
Subordinated debentures issued to capital trust | 7.11 | 25,774 | 456 | 7.04 | 25,774 | 454 | 7.00 | ||||||||||||||
Subordinated notes | 5.91 | 74,770 | 1,106 | 5.88 | 74,462 | 1,106 | 5.89 | ||||||||||||||
Total interest-bearing liabilities | 3.04 | 4,398,634 | 35,821 | 3.24 | 4,122,113 | 28,534 | 2.74 | ||||||||||||||
Non-interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 862,170 | 938,076 | |||||||||||||||||||
Other liabilities | 98,590 | 89,970 | |||||||||||||||||||
Total liabilities | 5,359,394 | 5,150,159 | |||||||||||||||||||
Stockholders’ equity | 594,008 | 553,620 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,953,402 | $ | 5,703,779 | |||||||||||||||||
Net interest income: | $ | 47,975 | $ | 46,738 | |||||||||||||||||
Interest rate spread | 2.81 | % | 2.74 | % | 2.79 | % | |||||||||||||||
Net interest margin* | 3.42 | % | 3.43 | % | |||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 126.8 | % | 131.0 | % | |||||||||||||||||
*Defined as the Company’s net interest income divided by average total interest-earning assets.
September 30, 2024 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | ||||||||||||||||||
Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||
Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans receivable: | ||||||||||||||||||||
One- to four-family residential | 4.07 | % | $ | 875,829 | $ | 26,247 | 4.00 | % | $ | 907,990 | $ | 25,124 | 3.70 | % | ||||||
Other residential | 7.32 | 1,108,548 | 60,699 | 7.31 | 824,453 | 41,767 | 6.77 | |||||||||||||
Commercial real estate | 6.20 | 1,505,200 | 70,179 | 6.23 | 1,495,186 | 65,508 | 5.86 | |||||||||||||
Construction | 7.33 | 767,772 | 44,001 | 7.66 | 899,026 | 48,544 | 7.22 | |||||||||||||
Commercial business | 6.36 | 253,086 | 12,382 | 6.54 | 296,605 | 13,153 | 5.93 | |||||||||||||
Other loans | 6.23 | 171,085 | 7,646 | 5.97 | 183,679 | 7,001 | 5.10 | |||||||||||||
Industrial revenue bonds | 6.13 | 11,792 | 642 | 7.27 | 12,493 | 661 | 7.08 | |||||||||||||
Total loans receivable | 6.30 | 4,693,312 | 221,796 | 6.31 | 4,619,432 | 201,758 | 5.84 | |||||||||||||
Investment securities | 3.06 | 708,422 | 16,450 | 3.10 | 694,727 | 15,005 | 2.89 | |||||||||||||
Other interest-earning assets | 4.85 | 98,156 | 3,867 | 5.26 | 97,829 | 3,590 | 4.91 | |||||||||||||
Total interest-earning assets | 5.85 | 5,499,890 | 242,113 | 5.88 | 5,411,988 | 220,353 | 5.44 | |||||||||||||
Non-interest-earning assets: | ||||||||||||||||||||
Cash and cash equivalents | 96,546 | 91,515 | ||||||||||||||||||
Other non-earning assets | 252,076 | 205,415 | ||||||||||||||||||
Total assets | $ | 5,848,512 | $ | 5,708,918 | ||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing demand and savings | 1.62 | $ | 2,223,153 | 29,306 | 1.76 | $ | 2,191,827 | 19,281 | 1.18 | |||||||||||
Time deposits | 3.77 | 896,059 | 26,902 | 4.01 | 999,856 | 20,658 | 2.76 | |||||||||||||
Brokered deposits | 4.91 | 705,988 | 27,698 | 5.24 | 588,862 | 21,729 | 4.93 | |||||||||||||
Total deposits | 2.76 | 3,825,200 | 83,906 | 2.93 | 3,780,545 | 61,668 | 2.18 | |||||||||||||
Securities sold under reverse repurchase agreements | 1.79 | 76,005 | 1,112 | 1.95 | 85,811 | 871 | 1.36 | |||||||||||||
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 4.99 | 330,155 | 12,805 | 5.18 | 134,595 | 5,156 | 5.12 | |||||||||||||
Subordinated debentures issued to capital trust | 7.11 | 25,774 | 1,364 | 7.07 | 25,774 | 1,273 | 6.61 | |||||||||||||
Subordinated notes | 5.91 | 74,696 | 3,317 | 5.93 | 74,392 | 3,317 | 5.96 | |||||||||||||
Total interest-bearing liabilities | 3.04 | 4,331,830 | 102,504 | 3.16 | 4,101,117 | 72,285 | 2.36 | |||||||||||||
Non-interest-bearing liabilities: | ||||||||||||||||||||
Demand deposits | 856,877 | 965,403 | ||||||||||||||||||
Other liabilities | 82,516 | 88,309 | ||||||||||||||||||
Total liabilities | 5,271,223 | 5,154,829 | ||||||||||||||||||
Stockholders’ equity | 577,289 | 554,089 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,848,512 | $ | 5,708,918 | ||||||||||||||||
Net interest income: | $ | 139,609 | $ | 148,068 | ||||||||||||||||
Interest rate spread | 2.81 | % | 2.72 | % | 3.09 | % | ||||||||||||||
Net interest margin* | 3.39 | % | 3.66 | % | ||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 127.0 | % | 132.0 | % | ||||||||||||||||
*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
September 30, | December 31, | |||||||
2024 | 2023 | |||||||
(Dollars in thousands) | ||||||||
Common equity at period end | $ | 612,090 | $ | 571,829 | ||||
Less: Intangible assets at period end | 10,202 | 10,527 | ||||||
Tangible common equity at period end (a) | $ | 601,888 | $ | 561,302 | ||||
Total assets at period end | $ | 6,036,521 | $ | 5,812,402 | ||||
Less: Intangible assets at period end | 10,202 | 10,527 | ||||||
Tangible assets at period end (b) | $ | 6,026,319 | $ | 5,801,875 | ||||
Tangible common equity to tangible assets (a) / (b) | 9.99 | % | 9.67 | % |
CONTACT:
Kelly Polonus,
Great Southern Bank,
(417) 895-5242
kpolonus@greatsouthernbank.com
Zack Mukewa,
Investor Relations,
(616) 233-0500
GSBC@lambert.com
FAQ
What was Great Southern Bancorp's (GSBC) earnings per share in Q3 2024?
How did GSBC's net interest income change in Q3 2024 compared to Q3 2023?
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