Great Southern Bancorp(GSBC) - 2024 Q4 - Annual Results

Financial Performance - Preliminary earnings for Q4 2024 were $1.27 per diluted common share, up from $1.11 in Q4 2023, resulting in a net income of $14.9 million compared to $13.1 million[2]. - Net income for the three months ended December 31, 2024, was $14,922 thousand, compared to $13,145 thousand for the same period in 2023, reflecting an increase of 13.5%[54]. - Net income for the year ended December 31, 2024, was $61,807 thousand, a decrease from $67,800 thousand in 2023, indicating a decline of 8.8%[61]. - The effective tax rate decreased to 16.9% for the quarter ended December 31, 2024, compared to 19.7% in the same quarter of 2023[23]. - Earnings per common share for the three months ended December 31, 2024, were $1.27, up from $1.11 in the same period of 2023, representing an increase of 14.4%[61]. Income and Expenses - Net interest income increased by $4.4 million (approximately 9.7%) to $49.5 million in Q4 2024, driven by higher interest income on loans[7]. - Non-interest income for the year ended December 31, 2024, was $30,565 thousand, slightly up from $30,073 thousand in 2023, reflecting an increase of 1.6%[54]. - Non-interest expenses for the year remained consistent at $141.5 million, despite ongoing investments in technology and operational efficiencies[13]. - Non-interest income increased by $371,000 to $6.9 million compared to the same quarter in 2023[20]. - Non-interest expense rose by $662,000 to $36.9 million for the quarter ended December 31, 2024, primarily due to a $1.7 million increase in other operating expenses[20]. Asset Quality - Non-performing assets decreased by $2.2 million to $9.6 million, representing 0.16% of total assets, compared to 0.20% at the end of Q4 2023[12]. - Non-performing assets decreased to $9.6 million at December 31, 2024, from $11.8 million at December 31, 2023, representing a decrease of 18.64% year-over-year[37]. - The allowance for credit losses as a percentage of total loans was 1.36% at December 31, 2024, consistent with the previous quarter and slightly down from 1.39% at December 31, 2023[35]. - The provision for credit losses on loans was $1,700 thousand for the year ended December 31, 2024, down from $2,250 thousand in 2023, indicating a decrease of 24.4%[60]. - Potential problem loans increased by $1.1 million compared to September 30, 2024, totaling $7.062 million at December 31, 2024[39]. Capital and Liquidity - The Company’s Tier 1 Leverage Ratio was 11.4% and Common Equity Tier 1 Capital Ratio was 12.3% as of December 31, 2024, indicating a strong capital position[7]. - Total stockholders' equity increased by $27.8 million to $599.6 million as of December 31, 2024, driven by $61.8 million in net income[24]. - Total stockholders' equity as of December 31, 2024, was $599,568 thousand, an increase from $571,829 thousand as of December 31, 2023, representing a growth of 4.8%[58]. - The company had available secured lines totaling $1,405.2 million and cash and cash equivalents of $195.8 million as of December 31, 2024[29]. - The Company expects funding costs to remain elevated in 2025, but maintains a strong liquidity position and credit quality[15]. Loans and Deposits - Gross loans grew by $100.5 million (2.2%) to $4.76 billion, primarily driven by multi-family residential and commercial real estate lending[11]. - Total net loans increased by $100.8 million, or 2.2%, from $4.59 billion at December 31, 2023, to $4.69 billion at December 31, 2024[32]. - Total deposits decreased by $91.9 million during the three months ended December 31, 2024, with interest-bearing checking balances down by $21.4 million (1.0%)[29]. - The company reported a total deposits value of $3,824,338 thousand, with brokered deposits yielding an interest of $37,534 thousand[66]. Operational Efficiency - The Company's efficiency ratio improved to 65.43% for the quarter ended December 31, 2024, down from 70.17% in the same quarter of 2023[22]. - The annualized return on average common equity was 9.76% for Q4 2024, slightly up from 9.71% in Q4 2023[3]. - The annualized return on average assets increased to 1.00% for the three months ended December 31, 2024, up from 0.91% in 2023[55]. - The average interest rate spread increased to 2.87% in Q4 2024, compared to 2.65% in Q4 2023[16]. - The company is advancing updates and growth in operational programs with its current core banking provider, with expected completion in Q3 2025[45]. Future Outlook - The Company anticipates recording approximately $2.0 million in interest income from a terminated interest rate swap in each of the first three quarters of 2025[18]. - The company plans to replace a banking center in Springfield, Mo. with a new facility, with construction expected to begin in Q1 2025 and completion anticipated in Q4 2025[46]. - The company will host a conference call on January 22, 2025, to discuss fourth quarter 2024 preliminary earnings[47].