Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.46 Per Diluted Common Share
Great Southern Bancorp (GSBC) reported preliminary earnings of $1.46 per diluted share for Q3 2022, down from $1.49 in Q3 2021, with net income totaling $18.1 million. For the nine months, earnings were $4.20 per diluted share, compared to $4.32 in the prior year. Notable increases include net interest income, rising 17.8% to $52.9 million due to higher loan balances, and a return on equity of 13.01%. The company set aside $3.3 million for loan losses, a shift from a negative provision in 2021. Total loans rose 12.2% year-over-year, reflecting strong demand despite rising interest rates.
- Net interest income increased by 17.8% to $52.9 million.
- Total loans grew by $489.6 million, or 12.2%, year-over-year.
- Return on average common equity was 13.01%.
- Earnings per share decreased from $1.49 to $1.46 compared to Q3 2021.
- Provision for credit losses increased to $3.3 million from a negative provision in 2021.
Preliminary Financial Results and Other Matters for the Quarter and Nine Months Ended September 30, 2022:
- Significant Income and Expense Items: During the three months ended September 30, 2022, the Company recorded the following significant and non-recurring items:
(1) The Company recorded an expense in Legal and Professional Fees totaling$1.1 million 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 -1.2 million per quarter and will continue to be incurred through the systems conversion date, which is scheduled for the third quarter of 2023.
(2) The Company recorded an expense in Legal and Professional Fees totaling$372,000 in one-time fees related to interest rate swaps initiated in July 2022. - Provision (Credit) for Losses on Loans and Unfunded Commitments: Provision (credit) for losses on loans and unfunded commitments were significantly different in the three months ended September 30, 2022 versus the three months ended September 30, 2021. The Company recorded a total provision expense of
$3.3 million in the 2022 period versus a total credit (negative expense) of$2.4 million in the 2021 period. This was the most significant contributor to lower pre-tax income and net income in the 2022 period compared to the 2021 period. The Company’s pre-tax, pre-provision net income was$26.1 million in the 2022 period versus$23.4 million in the 2021 period. The increased provision in the 2022 period served to build credit loss reserves as net charge-offs remained very low. - Total Loans: Total outstanding loans, excluding mortgage loans held for sale, increased
$489.6 million , or12.2% , from$4.01 billion at December 31, 2021 to$4.50 billion at September 30, 2022. This increase was primarily in other residential (multi-family) loans, one- to four-family residential loans and commercial real estate loans, partially offset by a decrease in construction loans. - Asset Quality: Non-performing assets and potential problem loans totaled
$5.2 million at September 30, 2022, a decrease of$2.8 million from$8.0 million at December 31, 2021. At September 30, 2022, non-performing assets were$3.4 million (0.06% of total assets), a decrease of$2.6 million from$6.0 million (0.11% of total assets) at December 31, 2021. - Net Interest Income: Net interest income for the third quarter of 2022 increased
$8.0 million (or approximately17.8% ) to$52.9 million compared to$44.9 million for the third quarter of 2021. Net interest margin was3.96% for the quarter ended September 30, 2022, compared to3.36% for the quarter ended September 30, 2021. Net interest income and net interest margin in the second quarter of 2022 were$48.8 million and3.78% , 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 September 30, 2022, the Company’s Tier 1 Leverage Ratio was
10.6% , Common Equity Tier 1 Capital Ratio was10.4% , Tier 1 Capital Ratio was10.8% , and Total Capital Ratio was13.4% . 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 September 30, 2022, approximately 222,000 shares remained available in our stock repurchase authorization.
SPRINGFIELD, Mo., Oct. 19, 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 September 30, 2022, were
Preliminary earnings for the nine months ended September 30, 2022, were
For the quarter ended September 30, 2022, annualized return on average common equity was
Great Southern President and CEO Joseph W. Turner commented, “Third quarter earnings remained strong. The current economic and geopolitical landscape has created a great deal of uncertainty. We are focused on ensuring that the Company is properly positioned for this, 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 world-class customer service with a long-view mindset.
“In the third quarter of 2022, we earned
Turner added, “Earnings performance ratios in the quarter were strong, with an annualized return on average assets of
“During the third quarter, loan production and activity in our markets remained positive. Since the end of 2021, total net loans, excluding mortgage loans held for sale, increased
Turner continued, “We began 2022 in an extremely strong capital position. While our total stockholders’ equity level has declined in 2022 as a result of decreases in market values of our investment portfolio and cash flow hedges and stock repurchases, we remain substantially above regulatory well-capitalized thresholds and our tangible common equity ratio was
“In the third quarter of 2022, the Company declared a
Selected Financial Data:
| (In thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net interest income | $ | 52,898 | $ | 44,923 | $ | 144,994 | $ | 133,695 | |||||||
| Provision (credit) for credit losses on loans and unfunded commitments | 3,315 | (2,357 | ) | 5,345 | (4,038 | ) | |||||||||
| Non-interest income | 7,984 | 9,798 | 26,480 | 29,120 | |||||||||||
| Non-interest expense | 34,758 | 31,339 | 99,030 | 91,852 | |||||||||||
| Provision for income taxes | 4,676 | 5,375 | 13,755 | 15,655 | |||||||||||
| Net income | $ | 18,133 | $ | 20,364 | $ | 53,344 | $ | 59,346 | |||||||
| Earnings per diluted common share | $ | 1.46 | $ | 1.49 | $ | 4.20 | $ | 4.32 | |||||||
NET INTEREST INCOME
Net interest income for the third quarter of 2022 increased
Net interest income for the nine months ended September 30, 2022 increased
Additionally, the Company’s net interest income in the 2021 period included significantly more accretion of net deferred fees related to PPP loans originated in 2020 and 2021. Net deferred fees recognized in interest income were
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
In July 2022, the Company entered into two 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
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, 2022, non-interest income decreased
- Net gains on loan sales: Net gains on loan sales decreased
$1.7 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 moved higher beginning 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. The lower level of originations is expected to continue as long as market rates remain elevated.
For the nine months ended September 30, 2022, non-interest income decreased
- Net gains on loan sales: Net gains on loan sales decreased
$5.4 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
$899,000 compared to the prior year period. This increase was mainly due to increased customer debit card transactions in the 2022 period compared to the 2021 period. In the latter half of 2021 and through the first three quarters of 2022, debit card usage by customers rebounded and was back to historical levels, and in many cases, increased levels of activity. - Overdraft and Insufficient funds fees: Overdraft and Insufficient funds fees increased
$1.0 million 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
$1.1 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 for achieving certain benchmarks related to debit card activity.
NON-INTEREST EXPENSE
For the quarter ended September 30, 2022, non-interest expense increased
- Salaries and employee benefits: Salaries and employee benefits increased
$1.1 million from the prior year quarter. A portion of this increase related to normal annual merit increases in various lending and operations areas. In 2022, many of these increases were larger than in previous years due to the current employment environment. In addition, the Phoenix loan office was opened in the first quarter of 2022 and the Charlotte, North Carolina loan office was opened in the second quarter of 2022. The operation of these offices added approximately$200,000 of expense in the 2022 quarter. - Legal, Audit and Other Professional Fees: Legal, audit and other professional fees increased
$1.6 million from the prior year quarter, to$2.2 million . In the 2022 period, the Company expensed a total of$1.1 million 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. Also in the 2022 period, the Company expensed$372,000 in fees related to the interest rate swaps initiated in July 2022.
- Other operating expenses: Other operating expenses increased
$576,000 from the prior year quarter, to$2.4 million . Of this increase,$142,000 related to business development,$152,000 related to deposit account fraud losses and$90,000 related to charitable contributions.
For the nine months ended September 30, 2022, non-interest expense increased
- Salaries and employee benefits: Salaries and employee benefits increased
$3.6 million from the prior year period, for the same reasons noted above. Also, in the second quarter of 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. - Legal, Audit and Other Professional Fees: Legal, audit and other professional fees increased
$2.4 million from the prior year period, to$4.2 million , with$1.6 million 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. Also in the 2022 period, the Company expensed$492,000 in fees related to the interest rate swaps initiated at various times in 2022. - Other operating expenses: Other operating expenses increased
$1.3 million from the prior year period, to$6.1 million . Of this increase,$353,000 related to business development,$278,000 related to deposit account fraud losses and$188,000 related to charitable contributions.
The Company’s efficiency ratio for the quarter ended September 30, 2022, was
INCOME TAXES
For the three months ended September 30, 2022 and 2021, the Company's effective tax rate was
CAPITAL
As of September 30, 2022, total stockholders’ equity and common stockholders’ equity were each
In addition, included in stockholders’ equity at September 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 September 30, 2022, was an unrealized loss (net of taxes) on the Company’s three outstanding cash flow hedges (interest rate swaps) totaling
As noted above, total stockholders' equity decreased
On a preliminary basis, as of September 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 September 30, 2022, a total of approximately 222,000 shares were available in our stock repurchase authorization.
During the three months ended September 30, 2022, the Company repurchased 150,271 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):
| September 30, 2022 | 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) | $ | 198,762 | $ | 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 | 96,328 | 87,556 | 89,252 | 91,786 | 77,411 | 83,782 | ||||||||||||
| Closed construction loans with unusedavailable lines | ||||||||||||||||||
| Secured by real estate (one-to four-family) | 118,429 | 93,892 | 75,214 | 74,501 | 42,162 | 48,213 | ||||||||||||
| Secured by real estate (not one-to four-family) | 1,455,081 | 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) | 36,493 | 88,153 | 109,472 | 53,529 | 85,917 | 69,295 | ||||||||||||
| Secured by real estate (not one-to four-family) | 132,770 | 134,600 | 212,264 | 146,826 | 45,860 | 92,434 | ||||||||||||
| Not secured by real estate - commercial business | 45,902 | 14,335 | 8,223 | 12,920 | 699 | — | ||||||||||||
| $ | 2,083,765 | $ | 1,941,159 | $ | 1,769,370 | $ | 1,671,025 | $ | 1,261,908 | $ | 1,267,877 | |||||||
DEPLOYMENT OF CASH AND CASH EQUIVALENTS
During the nine months ended September 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 replaced 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 economic 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 COVID-19 and subsequent variant outbreaks 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 September 30, 2022, 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, 2022, non-performing assets were
Compared to December 31, 2021 and June 30, 2022, non-performing loans decreased
Activity in the non-performing loans categories during the quarter ended September 30, 2022, 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 | 468 | — | — | — | — | — | — | 468 | ||||||||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||
| One- to four-family residential | 1,502 | 238 | (90 | ) | — | — | — | (829 | ) | 821 | ||||||||||||||
| Other residential | — | — | — | — | — | — | — | — | ||||||||||||||||
| Commercial real estate | 1,832 | — | — | — | — | — | (214 | ) | 1,618 | |||||||||||||||
| Commercial business | — | — | — | — | — | — | — | — | ||||||||||||||||
| Consumer | 418 | 22 | — | (2 | ) | — | (37 | ) | (15 | ) | 386 | |||||||||||||
| Total non-performing loans | $ | 4,220 | $ | 260 | $ | (90 | ) | $ | (2 | ) | $ | — | $ | (37 | ) | $ | (1,058 | ) | $ | 3,293 | ||||
| FDIC-assisted acquired loans included above | $ | 1,162 | $ | 204 | $ | — | $ | — | $ | — | $ | — | $ | (765 | ) | $ | 601 | |||||||
At September 30, 2022, the non-performing commercial real estate category included three loans, none of which were added during the current quarter. The largest relationship in the category, which totaled
Compared to December 31, 2021 and June 30, 2022, potential problem loans decreased
Activity in the potential problem loans category during the quarter ended September 30, 2022, 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 | 10 | — | — | — | — | — | (10 | ) | — | |||||||||||||||
| Land development | — | — | — | — | — | — | — | — | ||||||||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | ||||||||||||||||
| One- to four-family residential | 1,625 | — | (275 | ) | — | — | — | 20 | 1,370 | |||||||||||||||
| Other residential | — | — | — | — | — | — | — | — | ||||||||||||||||
| Commercial real estate | 200 | — | — | — | — | — | (4 | ) | 196 | |||||||||||||||
| Commercial business | — | — | — | — | — | — | — | — | ||||||||||||||||
| Consumer | 317 | 31 | (58 | ) | — | — | — | (31 | ) | 259 | ||||||||||||||
| Total potential problem loans | $ | 2,152 | $ | 31 | $ | (333 | ) | $ | — | $ | — | $ | — | $ | (25 | ) | $ | 1,825 | ||||||
| FDIC-assisted acquired loans included above | $ | 968 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (19 | ) | $ | 949 | |||||||
At September 30, 2022, the one- to four-family residential category of potential problem loans included 22 loans, none 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, 2022, excluding
| 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 | — | — | — | — | — | — | ||||||||||||
| Commercial construction | — | — | — | — | — | — | ||||||||||||
| One- to four-family residential | — | — | — | — | — | — | ||||||||||||
| Other residential | — | — | — | — | — | — | ||||||||||||
| Commercial real estate | — | — | — | — | — | — | ||||||||||||
| Commercial business | — | — | — | — | — | — | ||||||||||||
| Consumer | 44 | 69 | — | — | (27 | ) | 86 | |||||||||||
| Total foreclosed assets and repossessions | $ | 44 | $ | 69 | $ | — | $ | — | $ | (27 | ) | $ | 86 | |||||
| FDIC-assisted acquired assets included above | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
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
On October 17, 2022, the new banking center in Kimberling City, Missouri, opened for business. The newly-constructed building replaces the former facility located on the same property at 14309 Highway 13. Customers were served from a temporary building on the property during the demolition and construction period. Including this office, the Company operates three banking centers in the Branson Tri-Lakes area of southwest Missouri.
In the first quarter of 2023, a high-transaction-volume banking center located at 1615 West Sunshine Street in Springfield, Missouri, is expected to be razed to make way for an Express Banking facility, utilizing only interactive teller machine (ITM) technology to serve customers. The modern four-lane drive-up center will be the first-of-its-kind in the Springfield market. ITMs, also known as video remote tellers, offer an ATM-like interface, but with the enhancement of a video screen that allows customers to speak directly to a service representative in real time and in a highly personal manner. Nearly any teller transaction that can be performed in the traditional drive-thru can be performed at an ITM, including cashing a check to the penny. ITMs provide convenience and enhanced access for customers, while creating greater operational efficiencies for the Bank.
The Company will host a conference call on Thursday, October 20, 2022, at 2:00 p.m. Central Time to discuss third 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 92 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."
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, labor shortages, 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 and the effects of inflation or a potential recession; (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 nine months ended September 30, 2022 and 2021, and the three months ended June 30, 2022, are not necessarily indicative of the results of operations which may be expected for any future period.
| September 30, | December 31, | ||||||
| 2022 | 2021 | ||||||
| Selected Financial Condition Data: | (In thousands) | ||||||
| Total assets | $ | 5,676,249 | $ | 5,449,944 | |||
| Loans receivable, gross | 4,571,099 | 4,077,553 | |||||
| Allowance for credit losses | 62,761 | 60,754 | |||||
| Other real estate owned, net | 269 | 2,087 | |||||
| Available-for-sale securities, at fair value | 482,807 | 501,032 | |||||
| Held-to-maturity securities, at amortized cost | 206,485 | — | |||||
| Deposits | 4,739,118 | 4,552,101 | |||||
| Total borrowings | 323,287 | 238,713 | |||||
| Total stockholders’ equity | 511,275 | 616,752 | |||||
| Non-performing assets | 3,379 | 6,011 | |||||
| Three Months Ended | Nine Months Ended | Three Months Ended | |||||||||||||||||
| September 30, | September 30, | June 30, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||
| (In thousands) | |||||||||||||||||||
| Selected Operating Data: | |||||||||||||||||||
| Interest income | $ | 59,657 | $ | 49,640 | $ | 159,028 | $ | 150,725 | $ | 52,698 | |||||||||
| Interest expense | 6,759 | 4,717 | 14,034 | 17,030 | 3,867 | ||||||||||||||
| Net interest income | 52,898 | 44,923 | 144,994 | 133,695 | 48,831 | ||||||||||||||
| Provision (credit) for credit losses on loans and unfunded commitments | 3,315 | (2,357 | ) | 5,345 | (4,038 | ) | 2,223 | ||||||||||||
| Non-interest income | 7,984 | 9,798 | 26,480 | 29,120 | 9,319 | ||||||||||||||
| Non-interest expense | 34,758 | 31,339 | 99,030 | 91,852 | 33,004 | ||||||||||||||
| Provision for income taxes | 4,676 | 5,375 | 13,755 | 15,655 | 4,699 | ||||||||||||||
| Net income | $ | 18,133 | $ | 20,364 | $ | 53,344 | $ | 59,346 | $ | 18,224 | |||||||||
| 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, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Per Common Share: | |||||||||||||||||||
| Net income (fully diluted) | $ | 1.46 | $ | 1.49 | $ | 4.20 | $ | 4.32 | $ | 1.44 | |||||||||
| Book value | $ | 41.75 | $ | 46.73 | $ | 41.75 | $ | 46.73 | $ | 44.53 | |||||||||
| Earnings Performance Ratios: | |||||||||||||||||||
| Annualized return on average assets | 1.30 | % | 1.47 | % | 1.30 | % | 1.43 | % | 1.34 | % | |||||||||
| Annualized return on average common stockholders’ equity | 13.01 | % | 12.82 | % | 12.26 | % | 12.61 | % | 12.72 | % | |||||||||
| Net interest margin | 3.96 | % | 3.36 | % | 3.73 | % | 3.37 | % | 3.78 | % | |||||||||
| Average interest rate spread | 3.76 | % | 3.22 | % | 3.58 | % | 3.20 | % | 3.65 | % | |||||||||
| Efficiency ratio | 57.09 | % | 57.27 | % | 57.75 | % | 56.42 | % | 56.76 | % | |||||||||
| Non-interest expense to average total assets | 2.49 | % | 2.27 | % | 2.42 | % | 2.22 | % | 2.43 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Allowance for credit losses to period-end loans | 1.38 | % | 1.56 | % | 1.38 | % | 1.56 | % | 1.38 | % | |||||||||
| Non-performing assets to period-end assets | 0.06 | % | 0.15 | % | 0.06 | % | 0.15 | % | 0.08 | % | |||||||||
| Non-performing loans to period-end loans | 0.07 | % | 0.17 | % | 0.07 | % | 0.17 | % | 0.10 | % | |||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.03 | % | 0.00 | % | 0.00 | % | 0.00 | % | (0.01 | )% | |||||||||
| Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except number of shares) | |||||||||
| September 30, 2022 | December 31, 2021 | June 30, 2022 | |||||||
| Assets | |||||||||
| Cash | $ | 107,617 | $ | 90,008 | $ | 99,403 | |||
| Interest-bearing deposits in other financial institutions | 81,389 | 627,259 | 96,305 | ||||||
| Cash and cash equivalents | 189,006 | 717,267 | 195,708 | ||||||
| Available-for-sale securities | 482,807 | 501,032 | 519,472 | ||||||
| Held-to-maturity securities | 206,485 | — | 215,354 | ||||||
| Mortgage loans held for sale | 4,097 | 8,735 | 2,782 | ||||||
| Loans receivable, net of allowance for credit losses of | 4,497,109 | 4,007,500 | 4,361,559 | ||||||
| Interest receivable | 13,787 | 10,705 | 13,558 | ||||||
| Prepaid expenses and other assets | 64,383 | 45,176 | 59,468 | ||||||
| Other real estate owned and repossessions (1), net | 269 | 2,087 | 329 | ||||||
| Premises and equipment, net | 139,410 | 132,733 | 136,147 | ||||||
| Goodwill and other intangible assets | 11,029 | 6,081 | 11,246 | ||||||
| Federal Home Loan Bank stock and other interest-earning assets | 31,254 | 6,655 | 13,364 | ||||||
| Current and deferred income taxes | 36,613 | 11,973 | 23,009 | ||||||
| Total Assets | $ | 5,676,249 | $ | 5,449,944 | $ | 5,551,996 | |||
| Liabilities and Stockholders’ Equity | |||||||||
| Liabilities | |||||||||
| Deposits | $ | 4,739,118 | $ | 4,552,101 | $ | 4,516,205 | |||
| Securities sold under reverse repurchase agreements with customers | 124,187 | 137,116 | 145,838 | ||||||
| Short-term borrowings | 99,119 | 1,839 | 171,889 | ||||||
| Subordinated debentures issued to capital trust | 25,774 | 25,774 | 25,774 | ||||||
| Subordinated notes | 74,207 | 73,984 | 74,133 | ||||||
| Accrued interest payable | 2,632 | 646 | 791 | ||||||
| Advances from borrowers for taxes and insurance | 10,134 | 6,147 | 8,874 | ||||||
| Accounts payable and accrued expenses | 76,829 | 25,956 | 47,189 | ||||||
| Liability for unfunded commitments | 12,974 | 9,629 | 11,659 | ||||||
| Total Liabilities | 5,164,974 | 4,833,192 | 5,002,352 | ||||||
| Stockholders’ Equity | |||||||||
| Capital stock | |||||||||
| Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding September 2022, December 2021 and June 2022 -0- shares | — | — | — | ||||||
| Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding September 2022 – 12,245,593 shares; December 2021 – 13,128,493 shares; June 2022 – 12,343,449 shares | 123 | 131 | 123 | ||||||
| Additional paid-in capital | 41,515 | 38,314 | 40,565 | ||||||
| Retained earnings | 527,963 | 545,548 | 522,255 | ||||||
| Accumulated other comprehensive gain | (58,326 | ) | 32,759 | (13,299 | ) | ||||
| Total Stockholders’ Equity | 511,275 | 616,752 | 549,644 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 5,676,249 | $ | 5,449,944 | $ | 5,551,996 | |||
(1) At September 30, 2022, December 31, 2021 and June 30, 2022, includes
| 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, | ||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | ||||||||||||||||
| Interest Income | ||||||||||||||||||||
| Loans | $ | 54,077 | $ | 46,536 | $ | 143,906 | $ | 141,605 | $ | 46,764 | ||||||||||
| Investment securities and other | 5,580 | 3,104 | 15,122 | 9,120 | 5,934 | |||||||||||||||
| 59,657 | 49,640 | 159,028 | 150,725 | 52,698 | ||||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 4,984 | 2,925 | 9,516 | 10,604 | 2,358 | |||||||||||||||
| Securities sold under reverse repurchase agreements | 45 | 10 | 62 | 29 | 8 | |||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 377 | — | 614 | — | 236 | |||||||||||||||
| Subordinated debentures issued to capital trust | 248 | 111 | 525 | 337 | 159 | |||||||||||||||
| Subordinated notes | 1,105 | 1,671 | 3,317 | 6,060 | 1,106 | |||||||||||||||
| 6,759 | 4,717 | 14,034 | 17,030 | 3,867 | ||||||||||||||||
| Net Interest Income | 52,898 | 44,923 | 144,994 | 133,695 | 48,831 | |||||||||||||||
| Provision (Credit) for Credit Losses on Loans | 2,000 | (3,000 | ) | 2,000 | (3,700 | ) | — | |||||||||||||
| Provision (Credit) for Unfunded Commitments | 1,315 | 643 | 3,345 | (338 | ) | 2,223 | ||||||||||||||
| Net Interest Income After Provision (Credit) for Credit Losses and Provision (Credit) for Unfunded Commitments | 49,583 | 47,280 | 139,649 | 137,733 | 46,608 | |||||||||||||||
| Noninterest Income | ||||||||||||||||||||
| Commissions | 226 | 325 | 912 | 977 | 389 | |||||||||||||||
| Overdraft and Insufficient funds fees | 2,077 | 1,845 | 5,830 | 4,817 | 1,888 | |||||||||||||||
| POS and ATM fee income and service charges | 3,874 | 3,714 | 11,942 | 11,043 | 4,104 | |||||||||||||||
| Net gains on loan sales | 601 | 2,341 | 2,234 | 7,643 | 498 | |||||||||||||||
| Net realized gain on sale of available-for-sale securities | 31 | — | 38 | — | — | |||||||||||||||
| Late charges and fees on loans | 206 | 481 | 879 | 1,141 | 360 | |||||||||||||||
| Gain on derivative interest rate products | 88 | 45 | 385 | 340 | 145 | |||||||||||||||
| Other income | 881 | 1,047 | 4,260 | 3,159 | 1,935 | |||||||||||||||
| 7,984 | 9,798 | 26,480 | 29,120 | 9,319 | ||||||||||||||||
| Noninterest Expense | ||||||||||||||||||||
| Salaries and employee benefits | 18,976 | 17,834 | 56,488 | 52,887 | 19,432 | |||||||||||||||
| Net occupancy and equipment expense | 7,198 | 7,244 | 20,884 | 21,013 | 6,808 | |||||||||||||||
| Postage | 860 | 759 | 2,491 | 2,387 | 844 | |||||||||||||||
| Insurance | 803 | 775 | 2,383 | 2,294 | 787 | |||||||||||||||
| Advertising | 953 | 997 | 2,383 | 2,187 | 875 | |||||||||||||||
| Office supplies and printing | 236 | 200 | 662 | 639 | 208 | |||||||||||||||
| Telephone | 832 | 848 | 2,513 | 2,597 | 832 | |||||||||||||||
| Legal, audit and other professional fees | 2,239 | 636 | 4,240 | 1,814 | 1,196 | |||||||||||||||
| Expense on other real estate and repossessions | 84 | 103 | 313 | 473 | 65 | |||||||||||||||
| Acquired intangible asset amortization | 216 | 158 | 552 | 705 | 177 | |||||||||||||||
| Other operating expenses | 2,361 | 1,785 | 6,121 | 4,856 | 1,780 | |||||||||||||||
| 34,758 | 31,339 | 99,030 | 91,852 | 33,004 | ||||||||||||||||
| Income Before Income Taxes | 22,809 | 25,739 | 67,099 | 75,001 | 22,923 | |||||||||||||||
| Provision for Income Taxes | 4,676 | 5,375 | 13,755 | 15,655 | 4,699 | |||||||||||||||
| Net Income | $ | 18,133 | $ | 20,364 | $ | 53,344 | $ | 59,346 | $ | 18,224 | ||||||||||
| Earnings Per Common Share | ||||||||||||||||||||
| Basic | $ | 1.47 | $ | 1.50 | $ | 4.23 | $ | 4.35 | $ | 1.45 | ||||||||||
| Diluted | $ | 1.46 | $ | 1.49 | $ | 4.20 | $ | 4.32 | $ | 1.44 | ||||||||||
| Dividends Declared Per Common Share | $ | 0.40 | $ | 0.36 | $ | 1.16 | $ | 1.04 | $ | 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, 2022 | Three Months Ended September 30, 2022 | Three Months Ended September 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 | 3.34 | % | $ | 872,243 | $ | 7,532 | 3.43 | % | $ | 687,899 | $ | 6,333 | 3.65 | % | |||||||
| Other residential | 5.37 | 885,883 | 11,836 | 5.30 | 934,727 | 10,456 | 4.44 | ||||||||||||||
| Commercial real estate | 4.90 | 1,584,249 | 19,368 | 4.85 | 1,537,874 | 16,477 | 4.25 | ||||||||||||||
| Construction | 5.34 | 635,811 | 9,116 | 5.69 | 596,747 | 6,686 | 4.44 | ||||||||||||||
| Commercial business | 5.06 | 293,529 | 3,734 | 5.05 | 257,324 | 3,932 | 6.06 | ||||||||||||||
| Other loans | 5.15 | 197,070 | 2,309 | 4.65 | 212,828 | 2,484 | 4.63 | ||||||||||||||
| Industrial revenue bonds | 5.14 | 13,100 | 182 | 5.52 | 14,402 | 168 | 4.63 | ||||||||||||||
| Total loans receivable | 4.92 | 4,481,885 | 54,077 | 4.79 | 4,241,801 | 46,536 | 4.35 | ||||||||||||||
| Investment securities | 2.70 | 734,518 | 5,129 | 2.77 | 453,304 | 2,877 | 2.52 | ||||||||||||||
| Other interest-earning assets | 3.08 | 84,797 | 451 | 2.11 | 603,956 | 227 | 0.15 | ||||||||||||||
| Total interest-earning assets | 4.63 | 5,301,200 | 59,657 | 4.46 | 5,299,061 | 49,640 | 3.72 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 101,307 | 101,818 | |||||||||||||||||||
| Other non-earning assets | 176,768 | 128,448 | |||||||||||||||||||
| Total assets | $ | 5,579,275 | $ | 5,529,327 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 0.39 | $ | 2,303,579 | 1,320 | 0.23 | $ | 2,360,755 | 922 | 0.15 | ||||||||||||
| Time deposits | 1.54 | 1,196,452 | 3,664 | 1.22 | 1,114,995 | 2,003 | 0.71 | ||||||||||||||
| Total deposits | 0.83 | 3,500,031 | 4,984 | 0.56 | 3,475,750 | 2,925 | 0.33 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 0.69 | 134,917 | 45 | 0.13 | 150,054 | 10 | 0.02 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 3.29 | 69,956 | 377 | 2.14 | 1,206 | — | — | ||||||||||||||
| Subordinated debentures issued to capital trust | 4.38 | 25,774 | 248 | 3.82 | 25,774 | 111 | 1.71 | ||||||||||||||
| Subordinated notes | 5.96 | 74,165 | 1,105 | 5.91 | 108,913 | 1,671 | 6.09 | ||||||||||||||
| Total interest-bearing liabilities | 1.00 | 3,804,843 | 6,759 | 0.70 | 3,761,697 | 4,717 | 0.50 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 1,146,542 | 1,085,781 | |||||||||||||||||||
| Other liabilities | 70,566 | 46,319 | |||||||||||||||||||
| Total liabilities | 5,021,951 | 4,893,797 | |||||||||||||||||||
| Stockholders’ equity | 557,324 | 635,530 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,579,275 | $ | 5,529,327 | |||||||||||||||||
| Net interest income: | |||||||||||||||||||||
| Interest rate spread | 3.63 | % | $ | 52,898 | 3.76 | % | $ | 44,923 | 3.22 | % | |||||||||||
| Net interest margin* | 3.96 | % | 3.36 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 139.3 | % | 140.9 | % | |||||||||||||||||
*Defined as the Company’s net interest income divided by average total interest-earning assets.
| September 30, 2022 | Nine Months Ended September 30, 2022 | Nine Months Ended September 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 | 3.34 | % | $ | 782,592 | $ | 20,107 | 3.44 | % | $ | 676,093 | $ | 19,211 | 3.80 | % | |||||||
| Other residential | 5.37 | 832,641 | 29,890 | 4.80 | 983,564 | 32,599 | 4.43 | ||||||||||||||
| Commercial real estate | 4.90 | 1,550,445 | 51,834 | 4.47 | 1,560,208 | 49,917 | 4.28 | ||||||||||||||
| Construction | 5.34 | 642,264 | 24,367 | 5.07 | 593,774 | 19,946 | 4.49 | ||||||||||||||
| Commercial business | 5.06 | 290,420 | 10,431 | 4.80 | 290,643 | 11,365 | 5.23 | ||||||||||||||
| Other loans | 5.15 | 200,014 | 6,770 | 4.53 | 224,020 | 8,019 | 4.79 | ||||||||||||||
| Industrial revenue bonds | 5.14 | 13,472 | 507 | 5.03 | 14,610 | 548 | 5.02 | ||||||||||||||
| Total loans receivable | 4.92 | 4,311,848 | 143,906 | 4.46 | 4,342,912 | 141,605 | 4.36 | ||||||||||||||
| Investment securities | 2.70 | 670,700 | 14,260 | 2.84 | 442,794 | 8,655 | 2.61 | ||||||||||||||
| Other interest-earning assets | 3.08 | 218,263 | 862 | 0.53 | 513,364 | 465 | 0.12 | ||||||||||||||
| Total interest-earning assets | 4.63 | 5,200,811 | 159,028 | 4.09 | 5,299,070 | 150,725 | 3.80 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 95,943 | 98,482 | |||||||||||||||||||
| Other non-earning assets | 156,577 | 130,179 | |||||||||||||||||||
| Total assets | $ | 5,453,331 | $ | 5,527,731 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 0.39 | $ | 2,355,937 | 2,927 | 0.17 | $ | 2,287,969 | 3,154 | 0.18 | ||||||||||||
| Time deposits | 1.54 | 1,015,003 | 6,589 | 0.87 | 1,212,605 | 7,450 | 0.82 | ||||||||||||||
| Total deposits | 0.83 | 3,370,940 | 9,516 | 0.38 | 3,500,574 | 10,604 | 0.41 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 0.69 | 132,930 | 62 | 0.06 | 145,525 | 29 | 0.03 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 3.29 | 49,217 | 614 | 1.67 | 1,487 | — | — | ||||||||||||||
| Subordinated debentures issued to capital trust | 4.38 | 25,774 | 525 | 2.72 | 25,774 | 337 | 1.75 | ||||||||||||||
| Subordinated notes | 5.96 | 74,094 | 3,317 | 5.99 | 135,223 | 6,060 | 5.99 | ||||||||||||||
| Total interest-bearing liabilities | 1.00 | 3,652,955 | 14,034 | 0.51 | 3,808,583 | 17,030 | 0.60 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 1,165,125 | 1,047,157 | |||||||||||||||||||
| Other liabilities | 55,287 | 44,545 | |||||||||||||||||||
| Total liabilities | 4,873,367 | 4,900,285 | |||||||||||||||||||
| Stockholders’ equity | 579,964 | 627,446 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,453,331 | $ | 5,527,731 | |||||||||||||||||
| Net interest income: | |||||||||||||||||||||
| Interest rate spread | 3.63 | % | $ | 144,994 | 3.58 | % | $ | 133,695 | 3.20 | % | |||||||||||
| Net interest margin* | 3.73 | % | 3.37 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 142.4 | % | 139.1 | % | |||||||||||||||||
*Defined as the Company’s net interest income divided by average total interest-earning assets.
NON-GAAP FINANCIAL MEASURES
This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial 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, | ||||||
| 2022 | 2021 | ||||||
| (Dollars in thousands) | |||||||
| Common equity at period end | $ | 511,275 | $ | 616,752 | |||
| Less: Intangible assets at period end | 11,029 | 6,081 | |||||
| Tangible common equity at period end (a) | $ | 500,246 | $ | 610,671 | |||
| Total assets at period end | $ | 5,676,249 | $ | 5,449,944 | |||
| Less: Intangible assets at period end | 11,029 | 6,081 | |||||
| Tangible assets at period end (b) | $ | 5,665,220 | $ | 5,443,863 | |||
| Tangible common equity to tangible assets (a) / (b) | 8.83 | % | 11.22 | % | |||
FAQ
What were Great Southern Bancorp's earnings for Q3 2022?
How much did net interest income increase for GSBC in Q3 2022?
What is the total loan growth reported by GSBC?
What was the provision for credit losses for GSBC in Q3 2022?
How did GSBC's earnings compare for the nine months ended September 30, 2022, versus 2021?
