Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for
Great Southern Bank, today reported that preliminary earnings for
the three months ended December 31, 2023, were $1.11 per diluted
common share ($13.1 million net income) compared to $1.84 per
diluted common share ($22.6 million net income) for the three
months ended December 31, 2022.
Preliminary earnings for the year ended December 31, 2023, were
$5.61 per diluted common share ($67.8 million net income) compared
to $6.02 per diluted common share ($75.9 million net income) for
the year ended December 31, 2022.
For the quarter ended December 31, 2023, annualized return on
average common equity was 9.71%, annualized return on average
assets was 0.91%, and annualized net interest margin was 3.30%,
compared to 17.34%, 1.58% and 3.99%, respectively, for the quarter
ended December 31, 2022. For the year ended December 31, 2023,
return on average common equity was 12.31%, return on average
assets was 1.19%, and net interest margin was 3.57%, compared to
13.44%, 1.38% and 3.80%, respectively, for the year ended December
31, 2022.
Great Southern President and CEO Joseph W. Turner said, “As
expected, our fourth quarter results reflected a persistent and
challenging operating landscape. We earned $1.11 per diluted common
share ($13.1 million) for the fourth quarter of 2023, compared to
$1.84 per diluted common share ($22.6 million) for the fourth
quarter of 2022, and $1.33 per diluted common share ($15.9 million)
for the third quarter of 2023. In light of the current interest
rate environment, key drivers of performance included continued
increases in deposit costs and significant competition for
deposits, as well as the continuation of lower loan origination
volume. As indicated in this release, lower non-interest income and
higher non-interest expenses also contributed to reduced earnings
during the quarter. However, we did note that there were a few
non-recurring additional expenses which decreased our fourth
quarter earnings. On a positive note, the Company’s capital
strengthened, with stockholders’ equity increasing by $40.1 million
from the end of the third quarter 2023, equivalent to a book value
per common share outstanding of $48.44 at December 31, 2023, an
increase of $3.63 per common share outstanding from September 30,
2023.
“Like many banks, we experienced much higher deposit costs for
most of 2023, reflective of increasing market interest rates and
significant competition for deposits. Deposit costs again moved
higher in the fourth quarter of 2023, but the pace of increases
moderated compared to the second and third quarters of 2023. Higher
deposit costs drove a decrease in net interest income –
approximately $9.5 million lower in the fourth quarter of 2023
compared to the fourth quarter of 2022, and about $1.6 million
lower compared to the third quarter of 2023. Net interest income
for this cycle peaked in the third and fourth quarters of 2022.
Higher funding costs in the fourth quarter of 2023 were partially
caused by a moderate amount of time deposits maturing at relatively
low rates. These time deposits either renewed at higher rates or
left the Company, in turn requiring their replacement with other
funding sources at then-current market rates. Higher funding costs
also were incurred on interest-bearing demand and savings accounts,
as certain rates increased and the mix shifted from
non-interest-bearing accounts to these deposit products. Besides
the higher funding cost of deposits, net interest income was also
negatively affected by the Company’s interest rate swaps (two of
which began net settlements in May 2023). These two interest rate
swaps reduced interest income by a total of $2.8 million and $2.7
million, respectively, during the fourth and third quarters of
2023. These swaps had no impact in quarters prior to the second
quarter of 2023. There is another interest rate swap that will
contractually terminate March 1, 2024, which reduced interest
income by $2.9 million in the fourth quarter of 2023 and will
reduce interest income by approximately $1.9 million in the first
quarter of 2024, after which there will be no further impact.”
Turner added, “As expected, total outstanding loan balances grew
by nearly $83 million since the end of 2022. Growth primarily came
from the multi-family loan segment (much of this growth was in
movement from unfunded multi-family construction availability to
fund construction projects) and commercial business loans,
partially offset by a reduction in construction loans and one- to
four-family residential loans. At the end of December 2023, the
pipeline of loan commitments and unfunded lines declined to $1.2
billion, including $719 million in the unfunded portion of
construction loans. At the beginning of 2023, loan commitments and
unfunded lines totaled $2.1 billion, with $1.4 billion in unfunded
construction lines. Overall credit quality metrics remained very
strong during the quarter. Non-performing assets to total assets
were 0.20% at December 31, 2023. Delinquencies in our loan
portfolio continued to be at historically low levels. In the fourth
quarter of 2023, we did record net charge-offs of $833,000, with
larger charge-offs during the period related to two
relationships.”
Turner continued, “The Company’s capital and liquidity positions
remain strong. Total stockholders’ equity increased by $40.1
million from the end of the third quarter of 2023 and increased by
$38.7 million from the end of 2022, as a result of decreased
unrealized AOCI losses on investments and interest rate swaps due
to market rate decreases in the fourth quarter of 2023. The
retained earnings component of stockholders’ equity increased $26.0
million during the twelve months ended December 31, 2023. Our
capital remains substantially above regulatory well-capitalized
thresholds, and our tangible common equity ratio was 9.7% at
December 31, 2023. In the fourth quarter of 2023, the Company
declared a $0.40 per common share dividend, and for all of 2023
declared dividends totaling $1.60 per common share. The Company
continued to repurchase shares of our common stock during 2023.
Approximately 450,000 shares were repurchased during 2023, at an
average price of $51.38.
“Our borrowing capacity at the Federal Home Loan Bank was
approximately $919 million at December 31, 2023. At the end of
December 2023, we had available secured funding lines through the
FHLBank and Federal Reserve Bank and on-balance sheet liquidity
totaling approximately $2.1 billion. As we noted previously, our
deposit base is diverse by customer type and geography and has a
relatively low level of uninsured deposits (approximately 15% of
total deposits, excluding internal subsidiary accounts).”
Selected Financial Data:
| (In thousands, except per
share data) |
Three Months EndedDecember
31, |
|
Year EndedDecember 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
| Net interest income |
$ |
45,147 |
|
|
$ |
54,619 |
|
$ |
193,215 |
|
|
$ |
199,614 |
|
| Provision (credit) for credit
losses on loans and unfunded commitments |
|
(939 |
) |
|
|
841 |
|
|
(3,079 |
) |
|
|
6,187 |
|
| Non-interest income |
|
6,563 |
|
|
|
7,661 |
|
|
30,073 |
|
|
|
34,141 |
|
| Non-interest expense |
|
36,285 |
|
|
|
34,336 |
|
|
141,023 |
|
|
|
133,366 |
|
| Provision for income
taxes |
|
3,219 |
|
|
|
4,499 |
|
|
17,544 |
|
|
|
18,254 |
|
| Net income |
$ |
13,145 |
|
|
$ |
22,604 |
|
$ |
67,800 |
|
|
$ |
75,948 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per diluted common
share |
$ |
1.11 |
|
|
$ |
1.84 |
|
$ |
5.61 |
|
|
$ |
6.02 |
|
NET INTEREST INCOME
Net interest income for the fourth quarter of 2023 decreased
$9.5 million to $45.1 million, compared to $54.6 million for the
fourth quarter of 2022. Net interest margin was 3.30% in the fourth
quarter of 2023, compared to 3.99% in the same period of 2022, a
decrease of 69 basis points. For the three months ended December
31, 2023, net interest margin decreased 13 basis points compared to
net interest margin of 3.43% in the three months ended September
30, 2023. In comparing the 2023 and 2022 fourth quarter periods,
the average yield on loans increased 63 basis points, the average
yield on investment securities increased 16 basis points and the
average yield on interest-bearing deposits and other
interest-earning assets increased 177 basis points. The margin
contraction primarily resulted from increasing interest rates on
all deposit types due to higher market interest rates and increased
competition for deposits. The average rate on interest-bearing
demand and savings deposits, time deposits and brokered deposits
increased 111 basis points, 200 basis points and 206 basis points,
respectively, in the three months ended December 31, 2023 compared
to the three months ended December 31, 2022. Rates on various
borrowings also increased along with increases in market interest
rates. The average interest rate spread was 2.65% for the three
months ended December 31, 2023, compared to 3.66% for the three
months ended December 31, 2022 and 2.79% for the three months ended
September 30, 2023.
Net interest income for the year ended December 31, 2023
decreased $6.4 million to $193.2 million, compared to $199.6
million for the year ended December 31, 2022. Net interest margin
was 3.57% in the year ended December 31, 2023, compared to 3.80% in
the year ended December 31, 2022, a decrease of 23 basis points.
The decrease in margin comparing the year ended December 31, 2023
to the year ended December 31, 2022, was primarily due to the same
factors as discussed above for the comparison of the current year
fourth quarter margin to the prior year fourth quarter margin. The
yield on total interest-earning assets increased 116 basis points,
from 4.32% in the year ended December 31, 2022, to 5.48% in the
year ended December 31, 2023. However, the rate on total
interest-bearing liabilities increased 178 basis points, from 0.73%
in the year ended December 31, 2022, to 2.51% in the year ended
December 31, 2023. The average interest rate spread was 2.97% for
the year ended December 31, 2023, compared to 3.59% for the year
ended December 31, 2022.
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 $400 million with a contractual
termination date in October 2025. As previously disclosed by the
Company, on March 2, 2020, the Company and its swap counterparty
mutually agreed to terminate this swap, effective immediately. The
Company was paid $45.9 million, including accrued but unpaid
interest, from its swap counterparty as a result of this
termination. This $45.9 million, less the accrued to date interest
portion and net of deferred income taxes, is reflected in the
Company’s stockholders’ equity as part of Accumulated Other
Comprehensive Income (AOCI) and is being accreted to interest
income on loans monthly through the original contractual
termination date of October 6, 2025. The Company recorded $2.0
million of interest income related to the swap in both the three
months ended December 31, 2023 and the three months ended December
31, 2022. The Company recorded $8.1 million of interest income
related to the swap in both the year ended December 31, 2023 and
the year ended December 31, 2022. The Company currently expects to
have a sufficient amount of eligible variable rate loans to
continue to accrete this interest income ratably in future periods.
If this expectation changes and the amount of eligible variable
rate loans decreases significantly, the Company may be required to
recognize this interest income more rapidly.
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 $300 million, with a contractual
termination date of March 1, 2024. Under the terms of the swap, the
Company receives a fixed rate of interest of 1.6725% and pays a
floating rate of interest equal to one-month USD-LIBOR (or the
equivalent replacement rate if USD-LIBOR rate is not available).
The floating rate resets monthly and net settlements of interest
due to/from the counterparty also occur monthly. To the extent that
the fixed rate exceeds one-month USD-LIBOR, the Company will
receive net interest settlements, which will be recorded as loan
interest income. If one-month USD-LIBOR exceeds the fixed rate of
interest, the Company will be required to pay net settlements to
the counterparty and will record those net payments as a reduction
of interest income on loans. The Company recorded a reduction of
loan interest income related to this swap transaction of $2.9
million in the three months ended December 31, 2023, compared to a
reduction of $1.6 million in the three months ended December 31,
2022. The Company recorded a reduction of loan interest income
related to this swap transaction of $10.4 million in the year ended
December 31, 2023, compared to a reduction of loan interest income
related to this swap transaction of $941,000 in the year ended
December 31, 2022. Based on market rates of interest in January
2024, the Company expects to record a reduction of loan interest
income related to this swap of $1.9 million in the three months
ending March 31, 2024, prior to the contractual termination date of
March 1, 2024.
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 $200 million with an effective
date of May 1, 2023 and a termination date of May 1, 2028. Under
the terms of one swap, the Company receives a fixed rate of
interest of 2.628% and pays a floating rate of interest equal to
one-month USD-SOFR OIS. Under the terms of the other swap, the
Company receives a fixed rate of interest of 5.725% and pays a
floating rate of interest equal to one-month USD-Prime. In each
case, the floating rate resets monthly and net settlements of
interest due to/from the counterparty also occur monthly. To the
extent the fixed rate of interest exceeds the floating rate of
interest, the Company receives net interest settlements, which are
recorded as loan interest income. If the floating rate of interest
exceeds the fixed rate of interest, the Company pays net
settlements to the counterparty and records those net payments as a
reduction of interest income on loans. The Company recorded a
reduction of loan interest income related to these swap
transactions of $2.8 million and $7.2 million, respectively, in the
three months and year ended December 31, 2023. At December 31,
2023, the USD-Prime rate was 8.50% and the one-month USD-SOFR OIS
rate was 5.34446%.
The Company’s net interest income was negatively impacted in the
fourth quarter of 2023 by the high level of competition for
deposits due to asset growth across the industry and the lingering
effects of liquidity events at several banks in March 2023. The
Company also had a substantial amount of time deposits maturing at
relatively low rates in the second quarter of 2023, and these time
deposits either renewed at higher rates or left the Company, in
turn requiring their replacement with other funding sources at
then-current higher market rates. In addition, sporadically
throughout 2023, the Company experienced a higher-than-normal
reduction in balances of non-interest-bearing deposits. Customer
balances in both non-interest-bearing checking and interest-bearing
checking accounts fluctuated during the year ended December 31,
2023. As market interest rates for certain checking account types
and time deposit accounts have increased, some customers have
chosen to reallocate funds into higher-rate accounts. As of
December 31, 2023, time deposit maturities over the next 12 months
were as follows: within three months -- $394 million with a
weighted-average rate of 3.82%; within three to six months -- $324
million with a weighted-average rate of 4.32%; and within six to
twelve months -- $371 million with a weighted-average rate of
4.08%. Based on time deposit market rates in January 2024,
replacement rates for these maturing time deposits are likely to be
approximately 4.00-4.50%.
If market interest rates remain near their current levels, the
Company’s interest rate swaps will continue to have a negative
impact on net interest income. Based on the interest rates on these
swaps at December 31, 2023, the negative impact of all the interest
rate swaps combined in the first quarter of 2024 is expected to be
approximately $2.7 million. The negative impact of all the
outstanding interest rate swaps combined in the fourth quarter of
2023 was approximately $3.6 million. As noted above, one of these
interest rate swaps will terminate March 1, 2024. This interest
rate swap had a negative impact to net interest income of $2.9
million in the fourth quarter of 2023. It is expected to have a
negative impact to net interest income of $1.9 million in the first
quarter of 2024, then no impact in subsequent periods.
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 December 31, 2023, non-interest income
decreased $1.1 million to $6.6 million when compared to the quarter
ended December 31, 2022, primarily as a result of the following
items:
- Point-of-sale and ATM fees: Point-of-sale and ATM fees
decreased $621,000 compared to the prior year period. This decrease
was 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, and certain increases in related
processing costs during the transition to a new debit card
processor, including approximately $200,000 noted previously as a
non-recurring item.
- Other income: Other income decreased $399,000 compared to the
prior year period. During the 2022 period, payments totaling
$367,000 were received from a third-party servicer related to loans
acquired in a 2012 FDIC-assisted transaction, which was not
repeated in the 2023 period.
- Overdraft and insufficient funds fees: Overdraft and
insufficient funds fees decreased $327,000 compared to the prior
year period. It appears that consumers continued to spend
significantly in 2023, but apparently shifted from using debit
cards to credit cards during the three months ended December 31,
2023, resulting in fewer overdrafts in checking accounts.
For the year ended December 31, 2023, non-interest income
decreased $4.1 million to $30.1 million when compared to the year
ended December 31, 2022, primarily as a result of the following
items:
- Point-of-sale and ATM fees: Point-of-sale and ATM fees
decreased $1.4 million compared to the prior year, for the same
reasons noted above.
- Other income: Other income decreased $1.2 million compared to
the prior year. In 2022, a gain of $1.1 million was recognized on
sales of fixed assets, with no similar transactions occurring in
the current year.
- Gain (loss) on derivative interest rate products: In 2023, the
Company recognized a loss of $337,000 on the change in fair value
of its back-to-back interest rate swaps related to commercial loans
and the change in fair value on interest rate swaps related to
brokered time deposits. In 2022, the Company recognized a gain of
$321,000 on the change in fair value of its back-to-back interest
rate swaps related to commercial loans.
NON-INTEREST EXPENSE
For the quarter ended December 31, 2023, non-interest expense
increased $1.9 million to $36.3 million when compared to the
quarter ended December 31, 2022, primarily as a result of the
following items:
- Salaries and employee benefits: Salaries and employee benefits
increased $1.2 million from the prior year quarter. A portion of
this increase related to normal annual merit increases in various
lending and operations areas. In 2023, some of these increases were
larger than in previous years due to the current employment
environment. In addition, compensation costs related to originated
loans that are deferred under accounting rules decreased by
$137,000 in the 2023 period compared to the 2022 period (resulting
in higher expense in the 2023 period), as the volume of loans
originated in the fourth quarter of 2023 decreased compared to the
fourth quarter of 2022. As noted previously as a non-recurring item
in the fourth quarter of 2023, the Company recorded an expense
totaling $441,000 related to discretionary bonuses awarded to
various associates who have been involved significantly in the
software and systems transition.
- Insurance: Insurance expense increased $550,000 from the prior
year quarter. The increase was primarily due to previously
announced increases in deposit insurance rates for the FDIC’s
Deposit Insurance Fund. As noted previously as a non-recurring item
in the fourth quarter of 2023, the Company recorded an additional
expense of $240,000 related to updated analysis of accrued FDIC
insurance premiums due to this rate increase.
- Net occupancy expenses: Net occupancy expenses increased
$389,000 from the prior year period. Various components of computer
license and support expenses increased by $365,000 in the 2023
period compared to the 2022 period.
- Legal, Audit and Other Professional Fees: Legal, audit and
other professional fees decreased $481,000 from the prior year
quarter, to $1.6 million in the current year quarter. In the 2022
period, the Company expensed a total of $1.4 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. In the 2023 period, this expense
was $918,000.
For the year ended December 31, 2023, non-interest expense
increased $7.7 million to $141.0 million when compared to the year
ended December 31, 2022, primarily as a result of the following
items:
- Salaries and employee benefits: Salaries and employee benefits
increased $3.2 million from the prior year. A portion of this
increase related to normal annual merit increases in various
lending and operations areas. In 2023, some of these increases were
larger than in previous years due to the current employment
environment. Also as previously noted, in the fourth quarter of
2023 the Company awarded non-recurring bonuses related to the
systems transition. In addition, compensation costs related to
originated loans that are deferred under accounting rules decreased
by $1.3 million in 2023 compared to 2022 (resulting in higher
expense in 2023), as the volume of loans originated in 2023
decreased substantially compared to 2022.
- Net occupancy expenses: Net occupancy expenses increased $2.4
million from the prior year. Various components of computer license
and support expenses increased by $1.4 million in 2023 compared to
2022. In addition, various repairs and maintenance expenses
increased by $252,000 in 2023 compared to 2022.
- Insurance: Insurance expense increased $1.3 million from the
prior year. The increase was primarily due to previously announced
increases in deposit insurance rates for the FDIC’s Deposit
Insurance Fund.
- Legal, Audit and Other Professional Fees: Legal, audit and
other professional fees increased $756,000 from the prior year, to
$7.1 million. In 2023, the Company expensed a total of $4.0
million, compared to $3.1 expensed in 2022, primarily 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. In addition, in 2022, the Company
expensed $372,000 in fees related to the interest rate swaps
initiated in July 2022, which was not repeated in 2023.
The Company’s efficiency ratio for the quarter ended December
31, 2023 was 70.17% compared to 55.13% for the same quarter in
2022. The Company’s efficiency ratio for the year ended December
31, 2023 was 63.16% compared to 57.05% for 2022. The Company’s
ratio of non-interest expense to average assets was 2.52% and 2.47%
for the three months and year ended December 31, 2023,
respectively, compared to 2.40% and 2.42% for the three months and
year ended December 31, 2022, respectively. Average assets for the
three months ended December 31, 2023 increased $32.7 million, or
0.6%, compared to the three months ended December 31, 2022,
primarily due to an increase in net loans receivable,
interest-bearing cash equivalents and prepaid expenses, partially
offset by a decrease in investment securities. Average assets for
the year ended December 31, 2023 increased $199.4 million, or 3.6%,
from the year ended December 31, 2022, primarily due to an increase
in net loans receivable, interest-bearing cash equivalents and
prepaid expenses, partially offset by a decrease in investment
securities.
INCOME TAXES
For the three months ended December 31, 2023 and 2022, the
Company's effective tax rate was 19.7% and 16.6%, respectively. For
the years ended December 31, 2023 and 2022, the Company's effective
tax rate was 20.6% and 19.4%, respectively. These effective rates
were near or below the statutory federal tax rate of 21%, due
primarily to the utilization of certain investment tax credits and
the Company’s tax-exempt investments and tax-exempt loans, which
reduced the Company’s effective tax rate. The Company’s effective
tax rate may fluctuate in future periods as it is impacted by the
level and timing of the Company’s utilization of tax credits, the
level of tax-exempt investments and loans, the amount of taxable
income in various state jurisdictions and the overall level of
pre-tax income. State tax expense estimates continually evolve as
taxable income and apportionment between states are analyzed. The
Company's effective income tax rate is currently generally expected
to remain near the statutory federal tax rate due primarily to the
factors noted above. The Company currently expects its effective
tax rate (combined federal and state) will be approximately 20.5%
to 21.5% in future periods.
CAPITAL
As of December 31, 2023, total stockholders’ equity and common
stockholders’ equity were each $571.8 million (9.8% of total
assets), equivalent to a book value of $48.44 per common share.
Total stockholders’ equity and common stockholders’ equity at
December 31, 2022, were each $533.1 million (9.4% of total assets),
equivalent to a book value of $43.58 per common share. At December
31, 2023, the Company’s tangible common equity to tangible assets
ratio was 9.7%, compared to 9.2% at December 31, 2022. See
“Non-GAAP Financial Measures.” Included in stockholders’ equity at
December 31, 2023 and December 31, 2022, were unrealized losses
(net of taxes) on the Company’s available-for-sale investment
securities totaling $40.5 million and $47.2 million, respectively.
This change in net unrealized loss during the year ended
December 31, 2023, primarily resulted from decreasing
intermediate-term market interest rates (which generally increased
the fair value of investment securities) during the first three
months of 2023, followed by increasing intermediate-term market
interest rates (which generally decreased the fair value of
investment securities) during the period from March 31, 2023
through September 30, 2023. In the three months ended December 31,
2023, intermediate-term market interest rates decreased
significantly (which once again generally increased the fair value
of investment securities).
In addition, included in stockholders’ equity at December 31,
2023, were realized gains (net of taxes) on the Company’s
terminated cash flow hedge (interest rate swap), totaling $11.1
million. This amount, plus associated deferred taxes, is expected
to be accreted to interest income over the remaining term of the
original interest rate swap contract, which was to end in October
2025. At December 31, 2023, the remaining pre-tax amount to be
recorded in interest income was $14.4 million. The net effect on
total stockholders’ equity over time will be no impact as the
reduction of this realized gain will be offset by an increase in
retained earnings (as the interest income flows through pre-tax
income).
Also included in stockholders’ equity at December 31, 2023, were
unrealized losses (net of taxes) on the Company’s three outstanding
cash flow hedges (interest rate swaps) totaling $13.0 million.
Significant increases in market interest rates since the inception
of these hedges have caused their fair values to decrease; however,
market interest rates decreased in the three months ended December
31, 2023, causing the fair values of these swaps to increase in
that period.
As noted above, total stockholders' equity increased $38.7
million, from $533.1 million at December 31, 2022 to $571.8 million
at December 31, 2023. Stockholders’ equity increased due to the
Company recording net income of $67.8 million for the year ended
December 31, 2023 and increased by $2.5 million due to stock option
exercises during 2023. AOCI (loss) decreased $10.9 million
(increase to stockholders’ equity) during the year ended December
31, 2023, primarily due to changes in the market value of
available-for-sale securities and changes in the fair value of cash
flow hedges. Partially offsetting these increases were repurchases
of the Company’s common stock totaling $23.3 million and dividends
declared on common stock of $19.1 million.
The Company also had unrealized losses on its portfolio of
held-to-maturity investment securities, which totaled $23.8 million
at December 31, 2023, that were not included in its total capital
balance. If these held-to-maturity unrealized losses were included
in capital (net of taxes), this would have decreased total
stockholder’s equity by $18.0 million at December 31, 2023. This
amount was equal to 3.1% of total stockholders’ equity of $571.8
million at that date.
On a preliminary basis, as of December 31, 2023, the Company’s
Tier 1 Leverage Ratio was 11.0%, Common Equity Tier 1 Capital Ratio
was 11.9%, Tier 1 Capital Ratio was 12.4%, and Total Capital Ratio
was 15.2%. On December 31, 2023, and on a preliminary basis, the
Bank’s Tier 1 Leverage Ratio was 11.6%, Common Equity Tier 1
Capital Ratio was 13.0%, Tier 1 Capital Ratio was 13.0%, and Total
Capital Ratio was 14.3%.
In December 2022, the Company’s Board of Directors authorized
the purchase of one million shares of the Company’s common stock.
As of December 31, 2023, a total of approximately 728,000 shares
remained available under our stock repurchase authorization.
During the three months ended December 31, 2023, the Company
repurchased 73,500 shares of its common stock at an average price
of $48.40 and declared a regular quarterly cash dividend of $0.40
per common share, which, combined, reduced stockholders’ equity by
$8.3 million. During the year ended December 31, 2023, the Company
repurchased 449,622 shares of its common stock at an average price
of $51.38 and declared regular quarterly cash dividends totaling
$1.60 per common share, which, combined, reduced stockholders’
equity by $42.4 million.
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 management of
the 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
various sources of funds based 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 December 31, 2023, the Company had the following available
secured lines and on-balance sheet liquidity:
|
|
|
|
|
| |
|
December 31, 2023 |
| Federal Home Loan Bank
line |
|
$ |
919.1 million |
| Federal Reserve Bank line |
|
$ |
448.7 million |
| Cash and cash equivalents |
|
$ |
211.3 million |
| Unpledged securities –
Available-for-sale |
|
$ |
352.8 million |
| Unpledged securities –
Held-to-maturity |
|
$ |
191.7 million |
| |
|
|
|
During the three months ended December 31, 2023, the Company’s
total deposits decreased $129.8 million. Interest-bearing checking
balances decreased $27.2 million (about 1.2%) and
non-interest-bearing checking balances decreased $46.7 million
(about 5.0%). Time deposits generated through the Company’s banking
center and corporate services networks decreased $43.1 million and
time deposits generated through internet channels decreased $3.1
million. Total brokered deposits decreased $7.8 million.
During the year ended December 31, 2023, the Company’s total
deposits increased $36.8 million. Brokered deposits increased
$250.0 million through a variety of sources. Interest-bearing
checking balances increased $27.9 million (about 1.3%) and
non-interest-bearing checking balances decreased $168.1 million
(about 15.8%). Time deposits generated through the Company’s
banking center and corporate services networks decreased $34.6
million and time deposits generated through internet channels
decreased $34.9 million.
LOANS
Total net loans, excluding mortgage loans held for sale,
increased $82.8 million, or 1.8%, from $4.51 billion at December
31, 2022 to $4.59 billion at December 31, 2023. This increase was
primarily other residential (multi-family) loans ($160 million
increase) and commercial business loans ($25 million increase).
These increases were partially offset by decreases in construction
loans ($61 million decrease) and one- to four- family residential
loans ($13 million decrease). The pipeline of loan commitments and
the unfunded portion of construction loans remained strong in the
fourth quarter of 2023, but decreased significantly compared to the
end of 2022. As construction projects were completed, the related
loans were either paid off or moved from the construction category
to the appropriate permanent loan categories.
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):
|
|
|
December31, 2023 |
|
September 30, 2023 |
|
June 30,2023 |
|
March 31,2023 |
|
December 31, 2022 |
|
December31, 2021 |
|
Closed non-construction loans with unused available
lines |
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured by real estate (one- to four-family) |
$ |
203,964 |
$ |
205,935 |
$ |
207,597 |
$ |
205,517 |
$ |
199,182 |
$ |
175,682 |
|
Secured by real estate (not one- to four-family) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
23,752 |
|
Not secured by real estate - commercial business |
|
82,435 |
|
103,434 |
|
109,135 |
|
113,186 |
|
104,452 |
|
91,786 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Closed construction
loans with unused available
lines |
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured by real estate (one-to four-family) |
|
101,545 |
|
104,666 |
|
111,491 |
|
104,045 |
|
100,669 |
|
74,501 |
|
Secured by real estate (not one-to four-family) |
|
719,039 |
|
921,632 |
|
1,123,860 |
|
1,333,596 |
|
1,444,450 |
|
1,092,029 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loan commitments not
closed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured by real estate (one-to four-family) |
|
12,347 |
|
22,123 |
|
25,571 |
|
33,221 |
|
16,819 |
|
53,529 |
|
Secured by real estate (not one-to four-family) |
|
48,153 |
|
56,159 |
|
50,071 |
|
78,384 |
|
157,645 |
|
146,826 |
|
Not secured by real estate - commercial business |
|
11,763 |
|
16,971 |
|
21,835 |
|
37,477 |
|
50,145 |
|
12,920 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
$ |
1,179,246 |
$ |
1,430,920 |
$ |
1,649,560 |
$ |
1,905,426 |
$ |
2,073,362 |
$ |
1,671,025 |
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, including but not limited to; 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.
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 December 31, 2023, the Company recorded
provision expense of $750,000 on its portfolio of outstanding
loans, compared to a $1.0 million provision recorded for the
quarter ended December 31, 2022. During the year ended December 31,
2023 and December 31, 2022, the Company recorded provision expense
of $2.3 million and $3.0 million, respectively, on its portfolio of
outstanding loans. Total net charge-offs were $833,000 for the
three months ended December 31, 2023, compared to $281,000 for the
three months ended December 31, 2022. Total net charge-offs were
$1.1 million for the year ended December 31, 2023, compared to
$274,000 for the year ended December 31, 2022. For the three months
ended December 31, 2023, the Company recorded a negative provision
for losses on unfunded commitments of $1.7 million, compared to a
negative provision of $159,000 for the three months ended December
31, 2022. For the year ended December 31, 2023, the Company
recorded a negative provision for losses on unfunded commitments of
$5.3 million, compared to a provision of $3.2 million for the year
ended December 31, 2022. Total unfunded commitments decreased
significantly during 2023, resulting in a lower required reserve.
General market conditions and unique circumstances related to
specific industries and individual projects contribute to the level
of provisions and charge-offs.
The Bank’s allowance for credit losses as a percentage of total
loans was 1.39%, 1.39% and 1.40% at December 31, 2023, December 31,
2022 and September 30, 2023, respectively. Management considers the
allowance for credit losses adequate to cover losses inherent in
the Bank’s loan portfolio at December 31, 2023, based on recent
reviews of the Bank’s loan portfolio and current economic
conditions. If challenging economic conditions were to last longer
than anticipated or deteriorate further or management’s assessment
of the loan portfolio were to change, additional credit loss
provisions could be required, thereby adversely affecting the
Company’s future results of operations and financial condition.
ASSET QUALITY
At December 31, 2023, non-performing assets were $11.8 million,
an increase of $8.1 million from $3.7 million at December 31, 2022,
and an increase of $902,000 from $10.9 million at September 30,
2023. Non-performing assets as a percentage of total assets were
0.20% at December 31, 2023, compared to 0.07% at December 31, 2022
and 0.19% at September 30, 2023. One significant loan relationship
was added to non-performing assets in 2023, specifically, during
the second quarter. As a result of changes in balances and
composition of the loan portfolio, changes in economic and market
conditions and other factors specific to a borrower’s
circumstances, the level of non-performing assets will
fluctuate.
Compared to December 31, 2022, non-performing loans increased
$8.1 million to $11.7 million at December 31, 2023. The majority of
this increase was in the non-performing commercial real estate
loans category, which increased $9.0 million from December 31,
2022, primarily due to one loan relationship being added to the
category in the second quarter of 2023. Compared to September 30,
2023, non-performing loans increased $917,000.
Activity in the non-performing loans categories during the
quarter ended December 31, 2023, was as follows:
| |
|
BeginningBalance,October
1 |
|
Additionsto
Non-Performing |
|
Removedfrom
Non-Performing |
|
Transfersto
PotentialProblemLoans |
|
Transfers
toForeclosedAssets
andRepossessions |
|
Charge-Offs |
|
Payments |
|
EndingBalance,December
31 |
| |
|
(In thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family construction |
$ |
— |
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
$ |
— |
|
$ |
— |
|
$ |
— |
| Subdivision construction |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
| Land development |
|
384 |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
384 |
| Commercial construction |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
| One- to four-family
residential |
|
241 |
|
543 |
|
— |
|
|
— |
|
— |
|
— |
|
|
(62 |
) |
|
722 |
| Other residential |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
| Commercial real estate |
|
10,132 |
|
2,256 |
|
— |
|
|
— |
|
— |
|
— |
|
|
(1,836 |
) |
|
10,552 |
| Commercial business |
|
— |
|
31 |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
|
31 |
| Consumer |
|
74 |
|
29 |
|
(11 |
) |
|
— |
|
— |
|
(2 |
) |
|
(31 |
) |
|
59 |
|
Total non-performing loans |
$ |
10,831 |
$ |
2,859 |
$ |
(11 |
) |
$ |
— |
$ |
— |
$ |
(2 |
) |
$ |
(1,929 |
) |
$ |
11,748 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC-assisted acquired loans included above |
$ |
91 |
$ |
2,230 |
$ |
— |
|
$ |
— |
$ |
— |
$ |
— |
|
$ |
(59 |
) |
$ |
2,262 |
At December 31, 2023, the non-performing commercial real estate
category included four loans, one of which was added during the
current quarter. This relationship totaled $2.2 million and is
collateralized by an assisted living facility in Wisconsin. The
largest relationship in the category, which totaled $8.1 million,
or 76.4% of the total category, was added to non-performing loans
during the second quarter of 2023 and is collateralized by an
office building in Missouri. The non-performing one- to four-family
residential category included three loans. The largest relationship
in the category, which was added during the current quarter and is
collateralized by a single-family house in the Kansas City metro
area, totaled $543,000, or 75.2% of the category. The
non-performing land development category consisted of one loan
added during the first quarter of 2021, which totaled $384,000 and
is collateralized by unimproved zoned vacant ground in southern
Illinois. The non-performing commercial business category consisted
of two loans that totaled $31,000 to a single borrower, both of
which were added during the current quarter. The non-performing
consumer category included six loans, three of which were added
during the current quarter.
Compared to December 31, 2022, potential problem loans increased
$5.8 million, to $7.4 million at December 31, 2023. The increase
during the twelve-month period was primarily due to a single
multi-family loan, discussed below, being added to the potential
problem list partially offset by multiple loans, totaling $1.0
million, which were upgraded to a satisfactory risk rating.
Compared to September 30, 2023, potential problem loans increased
$7.0 million, to $7.4 million at December 31, 2023. The increase
during the quarter was primarily due to the one multi-family loan,
mentioned above, being added during the quarter
Activity in the potential problem loans category during the
quarter ended December 31, 2023, was as follows:
| |
|
BeginningBalance,October
1 |
|
Additions
toPotentialProblem |
|
RemovedfromPotentialProblem |
|
Transfersto
Non-Performing |
|
Transfers
toForeclosedAssets
andRepossessions |
|
Charge-Offs |
|
Loan Advances (Payments) |
|
EndingBalance,December
31 |
|
| |
|
(In thousands) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family construction |
$ |
— |
$ |
— |
$ |
— |
|
$ |
— |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
| Subdivision construction |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Land development |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Commercial construction |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| One- to four-family
residential |
|
236 |
|
— |
|
(77 |
) |
|
— |
|
— |
|
|
— |
|
|
(1 |
) |
|
158 |
|
| Other residential |
|
— |
|
7,162 |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
7,162 |
|
| Commercial real estate |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Commercial business |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Consumer |
|
101 |
|
46 |
|
(78 |
) |
|
— |
|
(5 |
) |
|
(2 |
) |
|
(8 |
) |
|
54 |
|
|
Total potential problem loans |
$ |
337 |
$ |
7,208 |
$ |
(155 |
) |
$ |
— |
$ |
(5 |
) |
$ |
(2 |
) |
$ |
(9 |
) |
$ |
7,374 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FDIC-assisted acquired loans
included above |
$ |
177 |
$ |
— |
$ |
(77 |
) |
$ |
— |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
100 |
|
At December 31, 2023, the other residential (multi-family)
category of potential problem loans included one loan, which
totaled $7.2 million, and was added during the current quarter.
This loan is collateralized by an apartment and retail project in
Oklahoma City, OK. At December 31, 2023, the one- to four-family
residential category of potential problem loans included two loans,
neither of which were added during the current quarter. The largest
relationship in this category totaled $99,000, or 62.5% of the
total category. The consumer category of potential problem loans
included 6 loans, three of which were added during the current
quarter.
Activity in foreclosed assets and repossessions during the
quarter ended December 31, 2023 was as follows:
| |
|
BeginningBalance,October
1 |
|
Additions |
|
ORE
andRepossessionSales |
|
CapitalizedCosts |
|
ORE
andRepossessionWrite-Downs |
|
EndingBalance,December
31 |
| |
|
(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 |
|
38 |
|
6 |
|
— |
|
— |
|
(21 |
) |
|
23 |
|
Total foreclosed assets and repossessions |
$ |
38 |
$ |
6 |
$ |
— |
$ |
— |
$ |
(21 |
) |
$ |
23 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| 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
Since early 2022, Great Southern has 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,
has been delayed to mid-2024. As also previously disclosed,
certain contractual disputes have arisen between Great Southern and
the third-party vendor. While discussions are ongoing between
the parties, to date, there has been no meaningful progress in
resolving the contractual disputes. There is no assurance that a
resolution with the vendor will be achieved, or that a migration to
the New System can be successfully completed, which may prompt
Great Southern to take action to protect its interests. In the
meantime, Great Southern 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 November 2023, the Company launched a new and improved
digital mobile banking application for its customers, available
through the Apple App Store and Google Play Store. With more than
54,000 active mobile banking users, the app upgrade provides an
improvement in overall functionality, including a better user
experience, additional layers of security and faster loading
times.
After a thorough evaluation, a retail banking center in
Springfield, Missouri was consolidated into a nearby banking center
at the close of business on January 12, 2024. The office at 600 W.
Republic Road was consolidated into the Great Southern banking
center located at 2945 W. Republic Road, a short distance away. For
customers’ convenience, an on-site interactive teller machine (ITM)
will be available indefinitely at the closed facility. 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 during extended business hours seven days a
week. 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.
The Company will host a conference call on Tuesday, January 23,
2024, at 2:00 p.m. Central Time to discuss fourth quarter 2023
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/BIc898a2e70a8145cea776bb13e928756f.
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, North Carolina; Chicago; Dallas; Denver; Omaha,
Nebraska; Phoenix and Tulsa, Oklahoma. The common stock of Great
Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market
under the symbol “GSBC.”
www.GreatSouthernBank.comForward-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; (xviii) the transition from LIBOR to new interest rate
benchmarks; and (xix) 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 months and years ended December 31, 2023 and
2022, and the three months ended September 30, 2023, are not
necessarily indicative of the results of operations which may be
expected for any future period.
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
Selected Financial Condition Data: |
(In thousands) |
| |
|
|
|
|
|
|
Total assets |
$ |
5,812,402 |
|
$ |
5,680,702 |
|
Loans receivable, gross |
|
4,661,348 |
|
|
4,581,381 |
|
Allowance for credit losses |
|
64,670 |
|
|
63,480 |
|
Other real estate owned, net |
|
23 |
|
|
233 |
|
Available-for-sale securities, at fair value |
|
478,207 |
|
|
490,592 |
|
Held-to-maturity securities, at amortized cost |
|
195,023 |
|
|
202,495 |
|
Deposits |
|
4,721,708 |
|
|
4,684,910 |
|
Total borrowings |
|
423,806 |
|
|
366,481 |
|
Total stockholders’ equity |
|
571,829 |
|
|
533,087 |
|
Non-performing assets |
|
11,771 |
|
|
3,720 |
| |
|
Three Months Ended |
|
Year Ended |
|
|
Three MonthsEnded |
| |
|
December 31, |
|
|
December 31, |
|
|
September 30, |
| |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
| |
(In thousands) |
| Selected Operating
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
76,482 |
|
|
$ |
67,949 |
|
$ |
296,835 |
|
|
$ |
226,977 |
|
$ |
75,272 |
|
|
Interest expense |
|
31,335 |
|
|
|
13,330 |
|
|
103,620 |
|
|
|
27,363 |
|
|
28,534 |
|
|
Net interest income |
|
45,147 |
|
|
|
54,619 |
|
|
193,215 |
|
|
|
199,614 |
|
|
46,738 |
|
|
Provision (credit) for credit losses on loans and unfunded
commitments |
|
(939 |
) |
|
|
841 |
|
|
(3,079 |
) |
|
|
6,187 |
|
|
(1,195 |
) |
|
Non-interest income |
|
6,563 |
|
|
|
7,661 |
|
|
30,073 |
|
|
|
34,141 |
|
|
7,852 |
|
|
Non-interest expense |
|
36,285 |
|
|
|
34,336 |
|
|
141,023 |
|
|
|
133,366 |
|
|
35,557 |
|
|
Provision for income taxes |
|
3,219 |
|
|
|
4,499 |
|
|
17,544 |
|
|
|
18,254 |
|
|
4,349 |
|
|
Net income |
$ |
13,145 |
|
|
$ |
22,604 |
|
$ |
67,800 |
|
|
$ |
75,948 |
|
$ |
15,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or For the ThreeMonths
Ended |
|
At or For theYear Ended |
|
At or For the Three Months Ended |
| |
December 31, |
|
December 31, |
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
| |
(Dollars in thousands, except per share data) |
| Per Common
Share: |
|
|
|
|
|
|
|
|
Net income (fully diluted) |
$ |
1.11 |
|
$ |
1.84 |
|
|
$ |
5.61 |
|
$ |
6.02 |
|
|
$ |
1.33 |
|
|
Book value |
$ |
48.44 |
|
$ |
43.58 |
|
|
$ |
48.44 |
|
$ |
43.58 |
|
|
$ |
44.81 |
|
| |
|
|
|
|
|
|
|
|
Earnings Performance Ratios: |
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
0.91 |
% |
|
1.58 |
% |
|
|
1.19 |
% |
|
1.38 |
% |
|
|
1.11 |
% |
|
Annualized return on average common stockholders’ equity |
|
9.71 |
% |
|
17.34 |
% |
|
|
12.31 |
% |
|
13.44 |
% |
|
|
11.47 |
% |
|
Net interest margin |
|
3.30 |
% |
|
3.99 |
% |
|
|
3.57 |
% |
|
3.80 |
% |
|
|
3.43 |
% |
|
Average interest rate spread |
|
2.65 |
% |
|
3.66 |
% |
|
|
2.97 |
% |
|
3.59 |
% |
|
|
2.79 |
% |
|
Efficiency ratio |
|
70.17 |
% |
|
55.13 |
% |
|
|
63.16 |
% |
|
57.05 |
% |
|
|
65.13 |
% |
|
Non-interest expense to average total assets |
|
2.52 |
% |
|
2.40 |
% |
|
|
2.47 |
% |
|
2.42 |
% |
|
|
2.49 |
% |
| |
|
|
|
|
|
|
|
| Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
Allowance for credit losses to period-end loans |
|
1.39 |
% |
|
1.39 |
% |
|
|
1.39 |
% |
|
1.39 |
% |
|
|
1.40 |
% |
|
Non-performing assets to period-end assets |
|
0.20 |
% |
|
0.07 |
% |
|
|
0.20 |
% |
|
0.07 |
% |
|
|
0.19 |
% |
|
Non-performing loans to period-end loans |
|
0.25 |
% |
|
0.08 |
% |
|
|
0.25 |
% |
|
0.08 |
% |
|
|
0.23 |
% |
|
Annualized net charge-offs to average loans |
|
0.07 |
% |
|
0.02 |
% |
|
|
0.02 |
% |
|
0.01 |
% |
|
|
0.01 |
% |
| |
|
|
|
|
|
|
|
Great Southern Bancorp, Inc. and
SubsidiariesConsolidated Statements of Financial
Condition(In thousands, except number of
shares)
| |
|
December 31,2023 |
|
December 31,2022 |
|
September 30,2023 |
| |
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
Cash |
$ |
102,529 |
|
$ |
105,262 |
|
$ |
92,579 |
|
|
Interest-bearing deposits in other financial institutions |
|
108,804 |
|
|
63,258 |
|
|
89,736 |
|
|
Cash and cash equivalents |
|
211,333 |
|
|
168,520 |
|
|
182,315 |
|
| |
|
|
|
|
|
|
|
Available-for-sale securities |
|
478,207 |
|
|
490,592 |
|
|
447,948 |
|
|
Held-to-maturity securities |
|
195,023 |
|
|
202,495 |
|
|
196,716 |
|
|
Mortgage loans held for sale |
|
5,849 |
|
|
4,811 |
|
|
5,678 |
|
|
Loans receivable, net of allowance for credit losses of $64,670 –
December 2023; $63,480 – December 2022; $64,753 – September
2023 |
|
4,589,620 |
|
|
4,506,836 |
|
|
4,564,567 |
|
|
Interest receivable |
|
21,206 |
|
|
19,107 |
|
|
19,366 |
|
|
Prepaid expenses and other assets |
|
106,225 |
|
|
69,461 |
|
|
103,441 |
|
|
Other real estate owned and repossessions (1), net |
|
23 |
|
|
233 |
|
|
38 |
|
|
Premises and equipment, net |
|
138,591 |
|
|
141,070 |
|
|
139,893 |
|
|
Goodwill and other intangible assets |
|
10,527 |
|
|
10,813 |
|
|
10,585 |
|
|
Federal Home Loan Bank stock and other interest-earning assets |
|
26,313 |
|
|
30,814 |
|
|
36,038 |
|
|
Current and deferred income taxes |
|
29,485 |
|
|
35,950 |
|
|
41,493 |
|
| |
|
|
|
|
|
|
|
Total Assets |
$ |
5,812,402 |
|
$ |
5,680,702 |
|
$ |
5,748,078 |
|
| |
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Deposits |
$ |
4,721,708 |
|
$ |
4,684,910 |
|
$ |
4,851,548 |
|
|
Securities sold under reverse repurchase agreements with
customers |
|
70,843 |
|
|
176,843 |
|
|
58,172 |
|
|
Short-term borrowings |
|
252,610 |
|
|
89,583 |
|
|
84,110 |
|
|
Subordinated debentures issued to capital trust |
|
25,774 |
|
|
25,774 |
|
|
25,774 |
|
|
Subordinated notes |
|
74,579 |
|
|
74,281 |
|
|
74,504 |
|
|
Accrued interest payable |
|
6,225 |
|
|
3,010 |
|
|
6,619 |
|
|
Advances from borrowers for taxes and insurance |
|
4,946 |
|
|
6,590 |
|
|
10,227 |
|
|
Accounts payable and accrued expenses |
|
76,401 |
|
|
73,808 |
|
|
96,251 |
|
|
Liability for unfunded commitments |
|
7,487 |
|
|
12,816 |
|
|
9,176 |
|
|
Total Liabilities |
|
5,240,573 |
|
|
5,147,615 |
|
|
5,216,381 |
|
| |
|
|
|
|
|
|
| Stockholders’
Equity |
|
|
|
|
|
|
|
Capital stock |
|
|
|
|
|
|
|
Preferred stock, $.01 par value; authorized 1,000,000 shares;
issued and outstanding December 2023, December 2022 and September
2023 -0- shares |
|
— |
|
|
— |
|
|
— |
|
|
Common stock, $.01 par value; authorized 20,000,000 shares; issued
and outstanding December 2023 – 11,804,430 shares; December 2022 –
12,231,290 shares; September 2023 – 11,864,363 shares |
|
118 |
|
|
122 |
|
|
119 |
|
|
Additional paid-in capital |
|
44,320 |
|
|
42,445 |
|
|
43,701 |
|
|
Retained earnings |
|
569,872 |
|
|
543,875 |
|
|
564,658 |
|
|
Accumulated other comprehensive gain (loss) |
|
(42,481 |
) |
|
(53,355 |
) |
|
(76,781 |
) |
|
Total Stockholders’ Equity |
|
571,829 |
|
|
533,087 |
|
|
531,697 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
5,812,402 |
|
$ |
5,680,702 |
|
$ |
5,748,078 |
|
(1) At December 31, 2023, December 31, 2022 and
September 30, 2023, includes $0, $183,000, and $0, respectively, of
properties which were not acquired through foreclosure, but are
held for sale.
Great Southern Bancorp, Inc. and
SubsidiariesConsolidated Statements of
Income(In thousands, except per share
data)
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
70,194 |
|
|
$ |
61,845 |
|
|
$ |
271,952 |
|
|
$ |
205,751 |
|
|
$ |
68,878 |
|
|
Investment securities and other |
|
6,288 |
|
|
|
6,104 |
|
|
|
24,883 |
|
|
|
21,226 |
|
|
|
6,394 |
|
|
|
|
76,482 |
|
|
|
67,949 |
|
|
|
296,835 |
|
|
|
226,977 |
|
|
|
75,272 |
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
27,089 |
|
|
|
11,160 |
|
|
|
88,757 |
|
|
|
20,676 |
|
|
|
25,233 |
|
|
Securities sold under reverse repurchase agreements |
|
334 |
|
|
|
262 |
|
|
|
1,205 |
|
|
|
324 |
|
|
|
308 |
|
|
Short-term borrowings, overnight FHLBank borrowings and other
interest-bearing liabilities |
|
2,344 |
|
|
|
452 |
|
|
|
7,500 |
|
|
|
1,066 |
|
|
|
1,433 |
|
|
Subordinated debentures issued to capital trust |
|
463 |
|
|
|
350 |
|
|
|
1,736 |
|
|
|
875 |
|
|
|
454 |
|
|
Subordinated notes |
|
1,105 |
|
|
|
1,106 |
|
|
|
4,422 |
|
|
|
4,422 |
|
|
|
1,106 |
|
|
|
|
31,335 |
|
|
|
13,330 |
|
|
|
103,620 |
|
|
|
27,363 |
|
|
|
28,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income |
|
45,147 |
|
|
|
54,619 |
|
|
|
193,215 |
|
|
|
199,614 |
|
|
|
46,738 |
|
|
Provision for Credit Losses on Loans |
|
750 |
|
|
|
1,000 |
|
|
|
2,250 |
|
|
|
3,000 |
|
|
|
— |
|
|
Provision (Credit) for Unfunded Commitments |
|
(1,689 |
) |
|
|
(159 |
) |
|
|
(5,329 |
) |
|
|
3,187 |
|
|
|
(1,195 |
) |
|
Net Interest Income After Provision (Credit) for Credit
Losses and Provision (Credit) for Unfunded
Commitments |
|
46,086 |
|
|
|
53,778 |
|
|
|
196,294 |
|
|
|
193,427 |
|
|
|
47,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
266 |
|
|
|
296 |
|
|
|
1,153 |
|
|
|
1,208 |
|
|
|
232 |
|
|
Overdraft and Insufficient funds fees |
|
1,715 |
|
|
|
2,042 |
|
|
|
7,617 |
|
|
|
7,872 |
|
|
|
2,017 |
|
|
POS and ATM fee income and service charges |
|
3,142 |
|
|
|
3,763 |
|
|
|
14,346 |
|
|
|
15,705 |
|
|
|
3,724 |
|
|
Net gains on loan sales |
|
472 |
|
|
|
351 |
|
|
|
2,354 |
|
|
|
2,584 |
|
|
|
784 |
|
|
Net realized gain (loss) on sale of available-for-sale
securities |
|
— |
|
|
|
(168 |
) |
|
|
— |
|
|
|
(130 |
) |
|
|
— |
|
|
Late charges and fees on loans |
|
332 |
|
|
|
303 |
|
|
|
786 |
|
|
|
1,182 |
|
|
|
149 |
|
|
Gain (loss) on derivative interest rate products |
|
(103 |
) |
|
|
(64 |
) |
|
|
(337 |
) |
|
|
321 |
|
|
|
55 |
|
|
Other income |
|
739 |
|
|
|
1,138 |
|
|
|
4,154 |
|
|
|
5,399 |
|
|
|
891 |
|
|
|
|
6,563 |
|
|
|
7,661 |
|
|
|
30,073 |
|
|
|
34,141 |
|
|
|
7,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
19,967 |
|
|
|
18,812 |
|
|
|
78,521 |
|
|
|
75,300 |
|
|
|
19,673 |
|
|
Net occupancy and equipment expense |
|
7,976 |
|
|
|
7,587 |
|
|
|
30,834 |
|
|
|
28,471 |
|
|
|
7,729 |
|
|
Postage |
|
1,004 |
|
|
|
888 |
|
|
|
3,590 |
|
|
|
3,379 |
|
|
|
844 |
|
|
Insurance |
|
1,364 |
|
|
|
814 |
|
|
|
4,542 |
|
|
|
3,197 |
|
|
|
1,301 |
|
|
Advertising |
|
896 |
|
|
|
878 |
|
|
|
3,396 |
|
|
|
3,261 |
|
|
|
950 |
|
|
Office supplies and printing |
|
237 |
|
|
|
205 |
|
|
|
1,057 |
|
|
|
867 |
|
|
|
294 |
|
|
Telephone |
|
682 |
|
|
|
657 |
|
|
|
2,730 |
|
|
|
3,170 |
|
|
|
657 |
|
|
Legal, audit and other professional fees |
|
1,609 |
|
|
|
2,090 |
|
|
|
7,086 |
|
|
|
6,330 |
|
|
|
1,849 |
|
|
Expense on other real estate and repossessions |
|
48 |
|
|
|
46 |
|
|
|
311 |
|
|
|
359 |
|
|
|
62 |
|
|
Acquired intangible asset amortization |
|
58 |
|
|
|
216 |
|
|
|
286 |
|
|
|
768 |
|
|
|
59 |
|
|
Other operating expenses |
|
2,444 |
|
|
|
2,143 |
|
|
|
8,670 |
|
|
|
8,264 |
|
|
|
2,139 |
|
|
|
|
36,285 |
|
|
|
34,336 |
|
|
|
141,023 |
|
|
|
133,366 |
|
|
|
35,557 |
|
|
Income Before Income Taxes |
|
16,364 |
|
|
|
27,103 |
|
|
|
85,344 |
|
|
|
94,202 |
|
|
|
20,228 |
|
|
Provision for Income Taxes |
|
3,219 |
|
|
|
4,499 |
|
|
|
17,544 |
|
|
|
18,254 |
|
|
|
4,349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
13,145 |
|
|
$ |
22,604 |
|
|
$ |
67,800 |
|
|
$ |
75,948 |
|
|
$ |
15,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.11 |
|
|
$ |
1.85 |
|
|
$ |
5.65 |
|
|
$ |
6.07 |
|
|
$ |
1.33 |
|
|
Diluted |
$ |
1.11 |
|
|
$ |
1.84 |
|
|
$ |
5.61 |
|
|
$ |
6.02 |
|
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends Declared Per Common Share |
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
1.60 |
|
|
$ |
1.56 |
|
|
$ |
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 $1.3 million and $1.6
million for the three months ended December 31, 2023 and 2022,
respectively. Net fees included in interest income were $5.7
million and $6.3 million for the year ended December 31, 2023 and
2022, respectively. Tax-exempt income was not calculated on a tax
equivalent basis. The table does not reflect any effect of income
taxes.
| |
December 31, 2023 |
|
|
|
Three Months EndedDecember 31,
2023 |
|
Three Months EndedDecember 31,
2022 |
|
|
|
|
|
|
|
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 |
3.88 |
% |
|
$ |
896,529 |
|
$ |
8,570 |
|
3.79 |
% |
|
$ |
898,851 |
|
$ |
7,746 |
|
3.42 |
% |
|
Other residential |
7.15 |
|
|
|
818,510 |
|
|
14,506 |
|
7.03 |
|
|
|
852,245 |
|
|
13,283 |
|
6.18 |
|
|
Commercial real estate |
6.10 |
|
|
|
1,487,029 |
|
|
22,162 |
|
5.91 |
|
|
|
1,554,792 |
|
|
21,330 |
|
5.44 |
|
|
Construction |
7.90 |
|
|
|
936,843 |
|
|
17,455 |
|
7.39 |
|
|
|
790,088 |
|
|
13,003 |
|
6.53 |
|
|
Commercial business |
6.50 |
|
|
|
342,009 |
|
|
5,158 |
|
5.98 |
|
|
|
299,964 |
|
|
4,184 |
|
5.53 |
|
|
Other loans |
6.70 |
|
|
|
175,628 |
|
|
2,123 |
|
4.80 |
|
|
|
197,323 |
|
|
2,094 |
|
4.21 |
|
|
Industrial revenue bonds |
6.10 |
|
|
|
12,176 |
|
|
220 |
|
7.17 |
|
|
|
12,942 |
|
|
205 |
|
6.28 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total loans
receivable |
6.25 |
|
|
|
4,668,724 |
|
|
70,194 |
|
5.96 |
|
|
|
4,606,205 |
|
|
61,845 |
|
5.33 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities |
2.77 |
|
|
|
658,106 |
|
|
4,938 |
|
2.98 |
|
|
|
690,026 |
|
|
4,911 |
|
2.82 |
|
| Other interest-earning
assets |
5.34 |
|
|
|
98,702 |
|
|
1,350 |
|
5.43 |
|
|
|
129,211 |
|
|
1,193 |
|
3.66 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
interest-earning assets |
5.81 |
|
|
|
5,425,532 |
|
|
76,482 |
|
5.59 |
|
|
|
5,425,442 |
|
|
67,949 |
|
4.97 |
|
| Non-interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
89,001 |
|
|
|
|
|
|
|
|
97,570 |
|
|
|
|
|
|
|
Other non-earning assets |
|
|
|
|
235,161 |
|
|
|
|
|
|
|
|
193,986 |
|
|
|
|
|
|
| Total assets |
|
|
|
$ |
5,749,694 |
|
|
|
|
|
|
|
$ |
5,716,998 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings |
1.67 |
|
|
$ |
2,233,148 |
|
|
9,298 |
|
1.65 |
|
|
$ |
2,224,925 |
|
|
3,041 |
|
0.54 |
|
|
Time deposits |
3.79 |
|
|
|
965,525 |
|
|
8,801 |
|
3.62 |
|
|
|
1,042,498 |
|
|
4,259 |
|
1.62 |
|
|
Brokered deposits |
5.20 |
|
|
|
679,948 |
|
|
8,990 |
|
5.25 |
|
|
|
479,478 |
|
|
3,860 |
|
3.19 |
|
|
Total deposits |
2.80 |
|
|
|
3,878,621 |
|
|
27,089 |
|
2.77 |
|
|
|
3,746,901 |
|
|
11,160 |
|
1.18 |
|
|
Securities sold under reverse repurchase agreements |
1.66 |
|
|
|
71,556 |
|
|
334 |
|
1.85 |
|
|
|
131,599 |
|
|
262 |
|
0.79 |
|
|
Short-term borrowings, overnight FHLBank borrowings and other
interest-bearing liabilities |
5.64 |
|
|
|
167,409 |
|
|
2,344 |
|
5.55 |
|
|
|
46,492 |
|
|
452 |
|
3.85 |
|
|
Subordinated debentures issued to capital trust |
7.24 |
|
|
|
25,774 |
|
|
463 |
|
7.12 |
|
|
|
25,774 |
|
|
350 |
|
5.39 |
|
|
Subordinated notes |
5.92 |
|
|
|
74,542 |
|
|
1,105 |
|
5.88 |
|
|
|
74,238 |
|
|
1,106 |
|
5.91 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
3.03 |
|
|
|
4,217,902 |
|
|
31,335 |
|
2.94 |
|
|
|
4,025,004 |
|
|
13,330 |
|
1.31 |
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
|
|
900,506 |
|
|
|
|
|
|
|
|
1,072,031 |
|
|
|
|
|
|
|
Other liabilities |
|
|
|
|
89,771 |
|
|
|
|
|
|
|
|
98,680 |
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
5,208,179 |
|
|
|
|
|
|
|
|
5,195,715 |
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
541,515 |
|
|
|
|
|
|
|
|
521,283 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
|
|
$ |
5,749,694 |
|
|
|
|
|
|
|
$ |
5,716,998 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate spread |
2.78 |
% |
|
|
|
|
$ |
45,147 |
|
2.65 |
% |
|
|
|
|
$ |
54,619 |
|
3.66 |
% |
| Net interest margin* |
|
|
|
|
|
|
|
|
|
3.30 |
% |
|
|
|
|
|
|
|
3.99 |
% |
| Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
128.6 |
% |
|
|
|
|
|
|
|
134.8 |
% |
|
|
|
|
|
*Defined as the Company’s net interest income divided by average
total interest-earning assets.
| |
December 31, 2023 |
|
|
|
Year EndedDecember 31, 2023 |
|
Year EndedDecember 31, 2022 |
|
|
|
|
|
|
|
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 |
3.88 |
% |
|
$ |
905,102 |
|
$ |
33,693 |
|
3.72 |
% |
|
$ |
811,896 |
|
$ |
27,853 |
|
3.43 |
% |
|
Other residential |
7.15 |
|
|
|
822,955 |
|
|
56,274 |
|
6.84 |
|
|
|
837,582 |
|
|
43,174 |
|
5.15 |
|
|
Commercial real estate |
6.10 |
|
|
|
1,493,130 |
|
|
87,670 |
|
5.87 |
|
|
|
1,551,541 |
|
|
73,164 |
|
4.72 |
|
|
Construction |
7.90 |
|
|
|
908,558 |
|
|
65,999 |
|
7.26 |
|
|
|
679,524 |
|
|
37,370 |
|
5.50 |
|
|
Commercial business |
6.50 |
|
|
|
308,049 |
|
|
18,310 |
|
5.94 |
|
|
|
292,825 |
|
|
14,615 |
|
4.99 |
|
|
Other loans |
6.70 |
|
|
|
181,649 |
|
|
9,125 |
|
5.02 |
|
|
|
199,336 |
|
|
8,864 |
|
4.45 |
|
|
Industrial revenue bonds |
6.10 |
|
|
|
12,413 |
|
|
881 |
|
7.10 |
|
|
|
13,338 |
|
|
711 |
|
5.33 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable |
6.25 |
|
|
|
4,631,856 |
|
|
271,952 |
|
5.87 |
|
|
|
4,386,042 |
|
|
205,751 |
|
4.69 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment securities |
2.77 |
|
|
|
685,496 |
|
|
19,942 |
|
2.91 |
|
|
|
675,571 |
|
|
19,170 |
|
2.84 |
|
| Other interest-earning
assets |
5.34 |
|
|
|
98,049 |
|
|
4,941 |
|
5.04 |
|
|
|
195,817 |
|
|
2,056 |
|
1.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
5.81 |
|
|
|
5,415,401 |
|
|
296,835 |
|
5.48 |
|
|
|
5,257,430 |
|
|
226,977 |
|
4.32 |
|
| Non-interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
90,881 |
|
|
|
|
|
|
|
|
96,353 |
|
|
|
|
|
|
|
Other non-earning assets |
|
|
|
|
212,914 |
|
|
|
|
|
|
|
|
166,007 |
|
|
|
|
|
|
|
Total assets |
|
|
|
$ |
5,719,196 |
|
|
|
|
|
|
|
$ |
5,519,790 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings |
1.67 |
|
|
$ |
2,202,242 |
|
|
28,579 |
|
1.30 |
|
|
$ |
2,322,915 |
|
|
5,968 |
|
0.26 |
|
|
Time deposits |
3.79 |
|
|
|
991,202 |
|
|
29,459 |
|
2.97 |
|
|
|
890,507 |
|
|
8,546 |
|
0.96 |
|
|
Brokered deposits |
5.20 |
|
|
|
611,821 |
|
|
30,719 |
|
5.02 |
|
|
|
252,281 |
|
|
6,162 |
|
2.44 |
|
|
Total deposits |
2.80 |
|
|
|
3,805,265 |
|
|
88,757 |
|
2.33 |
|
|
|
3,465,703 |
|
|
20,676 |
|
0.60 |
|
|
Securities sold under reverse repurchase agreements |
1.66 |
|
|
|
82,218 |
|
|
1,205 |
|
1.47 |
|
|
|
132,595 |
|
|
324 |
|
0.24 |
|
|
Short-term borrowings, overnight FHLBank borrowings and other
interest-bearing liabilities |
5.64 |
|
|
|
142,866 |
|
|
7,500 |
|
5.25 |
|
|
|
48,530 |
|
|
1,066 |
|
2.20 |
|
|
Subordinated debentures issued to capital trust |
7.24 |
|
|
|
25,774 |
|
|
1,736 |
|
6.74 |
|
|
|
25,774 |
|
|
875 |
|
3.40 |
|
|
Subordinated notes |
5.92 |
|
|
|
74,430 |
|
|
4,422 |
|
5.94 |
|
|
|
74,131 |
|
|
4,422 |
|
5.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
3.03 |
|
|
|
4,130,553 |
|
|
103,620 |
|
2.51 |
|
|
|
3,746,733 |
|
|
27,363 |
|
0.73 |
|
| Non-interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
|
|
949,045 |
|
|
|
|
|
|
|
|
1,141,660 |
|
|
|
|
|
|
|
Other liabilities |
|
|
|
|
88,678 |
|
|
|
|
|
|
|
|
66,224 |
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
5,168,276 |
|
|
|
|
|
|
|
|
4,954,617 |
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
550,920 |
|
|
|
|
|
|
|
|
565,173 |
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
|
|
$ |
5,719,196 |
|
|
|
|
|
|
|
$ |
5,519,790 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest rate spread |
2.78 |
% |
|
|
|
|
$ |
193,215 |
|
2.97 |
% |
|
|
|
|
$ |
199,614 |
|
3.59 |
% |
| Net interest margin* |
|
|
|
|
|
|
|
|
|
3.57 |
% |
|
|
|
|
|
|
|
3.80 |
% |
| Average interest-earning
assets to average interest-bearing liabilities |
|
|
|
|
131.1 |
% |
|
|
|
|
|
|
|
140.3 |
% |
|
|
|
|
|
*Defined as the Company’s net interest income divided by average
total interest-earning assets.
NON-GAAP FINANCIAL MEASURESThis 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
|
|
|
December 31, |
|
|
|
December 31, |
|
| |
|
2023 |
|
|
|
2022 |
|
| |
|
(Dollars in thousands) |
|
| |
|
|
|
| Common equity at period
end |
$ |
571,829 |
|
|
$ |
533,087 |
|
| Less: Intangible assets at
period end |
|
10,527 |
|
|
|
10,813 |
|
| Tangible common equity at
period end (a) |
$ |
561,302 |
|
|
$ |
522,274 |
|
| |
|
|
|
|
|
|
|
| Total assets at period
end |
$ |
5,812,402 |
|
|
$ |
5,680,702 |
|
| Less: Intangible assets at
period end |
|
10,527 |
|
|
|
10,813 |
|
| Tangible assets at period end
(b) |
$ |
5,801,875 |
|
|
$ |
5,669,889 |
|
| |
|
|
|
|
|
|
|
| Tangible common equity to
tangible assets (a) / (b) |
|
9.67 |
% |
|
|
9.21 |
% |
CONTACT: Kelly Polonus, Great Southern, (417) 895-5242
kpolonus@greatsouthernbank.com
Grafico Azioni Great Southern Bancorp (NASDAQ:GSBC)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni Great Southern Bancorp (NASDAQ:GSBC)
Storico
Da Nov 2023 a Nov 2024
