Great Southern Bancorp(US:GSBC)2025-05-07 18:29Financial Performance - Net income for the three months ended March 31, 2025, was $17.2 million, an increase of $3.8 million or 28.0% compared to the same period in 2024[230]. - Non-interest income decreased by $216,000 to $6.6 million for the three months ended March 31, 2025, compared to the same period in 2024[266]. - Non-interest expense increased by $400,000 to $34.8 million for the three months ended March 31, 2025, primarily due to an increase in net occupancy and equipment expenses by $694,000, or 8.9%[267]. - The Company's efficiency ratio improved to 62.27% for the three months ended March 31, 2025, from 66.68% for the same period in 2024[270]. - The net interest income for the three months ended March 31, 2025, was $49.334 million, up from $44.816 million in 2024, reflecting a year-over-year increase of 10.5%[274]. Assets and Liabilities - Total assets of the Company increased by $12.2 million, or 0.2%, from $5.98 billion at December 31, 2024, to $5.99 billion at March 31, 2025[182]. - Total liabilities decreased by $1.5 million from December 31, 2024, to $5.38 billion at March 31, 2025, primarily due to the repayment of BTFP borrowings[221]. - Cash and cash equivalents were $217.2 million at March 31, 2025, reflecting an increase of $21.4 million, or 10.9%, from $195.8 million at December 31, 2024[217]. - The total interest-bearing liabilities for the three months ended March 31, 2025, were $4.462 billion, compared to $4.267 billion in 2024, indicating a year-over-year increase of 4.6%[274]. Loans and Credit - Net outstanding loans increased by $243,000 to $4.69 billion at March 31, 2025, primarily driven by increases in other residential (multi-family) loans and construction loans[182]. - The loan portfolio includes $1.64 billion tied to various SOFR indexes, with adjustments expected within 90 days after March 31, 2025[197]. - Non-performing loans decreased by $91,000 to $3.5 million at March 31, 2025, while foreclosed assets increased by $43,000 to $6.0 million[258]. - The Company recorded no provision expense on its portfolio of outstanding loans for the three months ended March 31, 2025, compared to a provision expense of $500,000 for the same period in 2024[255]. Interest Income and Expense - Interest income on loans increased by $2.0 million, with average loan balances growing from $4.67 billion to $4.76 billion year-over-year[232]. - Total interest income from average interest-earning assets for the three months ended March 31, 2025, was $80.243 million, an increase from $77.390 million in 2024[273]. - Total interest expense decreased by $1.7 million, or 5.1%, due to a reduction in interest expense on deposits by $3.0 million, or 11.0%[241]. - The average yield on loans increased from 6.13% to 6.23% during the same period, attributed to higher rates on both fixed and floating rate loans[233]. Market Conditions - The Federal Reserve raised the federal funds interest rate to over 5.50%, the highest level in 22 years, in response to surging inflation[153]. - The personal consumption expenditures (PCE) price index eased from a peak of 7.1% in June 2022 to 2.9% in December 2023[154]. - Real GDP is projected to rise by 1.9% in 2025, a reduction from prior forecasts of 2.3% due to economic uncertainty[155]. - The national unemployment rate rose slightly to 4.2% in March 2025, up from 4.1% in December 2024, with 7.1 million unemployed individuals[156]. Investments and Securities - Available-for-sale securities increased by $2.5 million, or 0.5%, to $535.9 million at March 31, 2025[187]. - Held-to-maturity securities decreased by $1.5 million, or 0.8%, to $185.9 million at March 31, 2025[188]. - The Company received $45.9 million from the termination of an interest rate swap, which will contribute to interest income until October 6, 2025[234]. - Unrealized losses on held-to-maturity investment securities decreased from $24.7 million at December 31, 2024, to $20.6 million at March 31, 2025, reflecting improved market conditions[290]. Capital and Equity - Total stockholders' equity increased by $13.7 million to $613.3 million, driven by net income and a decrease in accumulated other comprehensive loss[229]. - The Company's common equity Tier 1 capital ratio was 12.4% as of March 31, 2025, compared to 12.3% on December 31, 2024, indicating strong capital adequacy[292]. - The tangible common equity to tangible assets ratio improved to 10.08% as of March 31, 2025, from 9.87% at December 31, 2024, indicating enhanced capital strength[305]. Dividends and Stock Repurchase - The Company declared a cash dividend of $0.40 per share during Q1 2025, which is 27% of net income per diluted common share, consistent with the previous year's dividend[296]. - The Company repurchased 173,344 shares of common stock at an average price of $58.38 per share during Q1 2025, compared to 112,362 shares at $51.44 per share in Q1 2024[297]. Operational Developments - The Company installed 10 ITM units in the St. Louis market, enhancing customer service with live teller options[213]. - A new banking center is under construction in Springfield, Missouri, expected to be completed in Q4 2025, designed for testing new banking technologies[214].