Great Southern Bancorp(US:GSBC)2025-11-06 18:34Goodwill and Intangible Assets - The Company reported goodwill of $5.4 million as of September 30, 2025, related to the acquisition of 12 branches in the St. Louis market[149]. - The Company has total amortizable intangible assets of $4.4 million for arena naming rights, which are fully amortized over a period not to exceed 15 years[150][151]. Economic Indicators - The Federal Reserve raised the federal funds interest rates to more than 5.50%, the highest level in 22 years, to combat inflation[158]. - The personal consumption expenditures (PCE) price index eased from a peak of 7.1% in June 2022 to 2.9% in December 2023[159]. - Real GDP in 2025 is projected to rise 1.8% on an annual average basis, an increase from prior forecasts of 1.1%[160]. - The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023[158]. - The national unemployment rate increased to 4.3% in August 2025, up from 4.1% in June 2025, with 7.4 million unemployed individuals[161]. Housing Market - Existing-home sales rose by 1.5% in September 2025 compared to August 2025, reaching an annual rate of 4.06 million, with a year-over-year increase of 4.1%[163]. - The median existing-home sales price increased by 2.1% year-over-year to $415,200 in September 2025, with the Midwest median price at $320,800, up 4.7%[164]. - Total housing inventory at the end of September 2025 was 1.55 million units, a 1.3% increase from August 2025 and a 14.0% increase from one year ago[165]. - New single-family housing starts in August 2025 were at a rate of 890,000, which is 7% below July 2025 and 11.7% below August 2024[166]. - Sales of new single-family houses in August 2025 were at a seasonally adjusted annual rate of 800,000, a 20.5% increase from July 2025[167]. Company Financials - Great Southern's total assets decreased by $243.8 million, or 4.1%, from $5.98 billion at December 31, 2024, to $5.74 billion at September 30, 2025[191]. - Net outstanding loans decreased by $222.7 million to $4.47 billion at September 30, 2025, primarily in construction and commercial real estate loans[191]. - Total deposit balances decreased by $77.5 million, or 1.7%, with transaction account balances increasing by $66.7 million, or 2.2%, to $3.12 billion[197]. - Available-for-sale securities decreased by $2.0 million, or 0.4%, to $531.3 million at September 30, 2025[195]. - Held-to-maturity securities decreased by $6.1 million, or 3.3%, to $181.3 million at September 30, 2025[196]. - Short-term borrowings and other interest-bearing liabilities decreased by $88.3 million to $425.9 million at September 30, 2025[201]. - Total liabilities decreased by $277.1 million to $5.10 billion, mainly due to the repayment of BTFP borrowings and subordinated notes[228]. - Total stockholders' equity increased by $33.3 million, or 5.6%, to $632.9 million, driven by net income of $54.7 million for the nine months ended September 30, 2025[234]. - Net income for the three months ended September 30, 2025, was $17.8 million, a 7.7% increase from $16.5 million in the same period of 2024, attributed to a $2.8 million increase in net interest income[235]. - Cash and cash equivalents were $196.2 million at September 30, 2025, reflecting a slight increase of $479,000, or 0.2%, from December 31, 2024[224]. Interest Income and Expense - Total interest income decreased by $4.7 million or 5.6% during the three months ended September 30, 2025, primarily due to a $4.4 million or 5.8% decrease in interest income on loans[237]. - Interest income on loans decreased by $2.9 million during the nine months ended September 30, 2025, attributed to a decrease in average interest rates from 6.31% to 6.23%[240]. - Total interest expense decreased by $7.5 million or 21.0% during the three months ended September 30, 2025, with interest expense on deposits decreasing by $4.5 million or 15.8%[249]. - Interest expense on demand and savings deposits decreased by $5.4 million during the nine months ended September 30, 2025, due to a decrease in average rates from 1.76% to 1.43%[253]. - Interest income on investments increased by $1.8 million in the nine months ended September 30, 2025, driven by higher average interest rates from 3.10% to 3.35%[246]. Credit Losses and Non-Performing Assets - The Company expects to maintain an allowance for credit losses sufficient to absorb estimated credit losses, calculated using an average historical loss model[145]. - The Company’s allowance for credit losses is measured on a collective basis, aggregating loans into pools based on similar risk characteristics[146]. - The allowance for credit losses as a percentage of total loans was 1.43% at September 30, 2025, compared to 1.36% at December 31, 2024[276]. - The Company did not record a provision expense for outstanding loans in Q3 2025, compared to $1.2 million in Q3 2024[275]. - Net charge-offs for Q3 2025 were $66,000, significantly lower than $1.5 million in Q3 2024[275]. - As of September 30, 2025, non-performing assets decreased by $1.8 million to $7.8 million, representing 0.14% of total assets compared to 0.16% at December 31, 2024[277]. - Non-performing loans decreased by $1.8 million to $1.7 million, while foreclosed assets increased by $90,000 to $6.1 million at September 30, 2025[278]. - Potential problem loans decreased by $5.7 million to $1.4 million at September 30, 2025, from $7.1 million at December 31, 2024[280]. Non-Interest Income and Expenses - Non-interest income for the three months ended September 30, 2025, increased by $70,000 to $7.1 million compared to the same period in 2024[286]. - Non-interest income for the nine months ended September 30, 2025, decreased by $1.8 million to $21.9 million, primarily due to a $1.7 million decrease in other income[287]. - Non-interest expense for the three months ended September 30, 2025, increased by $2.4 million to $36.1 million, primarily due to a $735,000 increase in net occupancy and equipment expenses[290]. - Salaries and employee benefits increased by $636,000, or 3.3%, from the prior-year period, mainly due to annual merit increases[291]. - Non-interest expense for the nine months ended September 30, 2025, increased by $1.4 million to $105.9 million, driven by a $2.0 million increase in net occupancy and equipment expenses, primarily due to computer license and support expenses[294]. Stockholder Equity and Dividends - The Company declared a common stock cash dividend of $0.43 per share for the three months ended September 30, 2025, which is 28% of net income per diluted common share for that period[326]. - The Company's common equity Tier 1 capital ratio was 13.3% as of September 30, 2025, indicating it was well capitalized[323]. - The Company reported a decrease in net interest income of $4.71 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to changes in rates and volumes[307]. Stock Repurchase Program - During the three months ended September 30, 2025, the Company repurchased 165,116 shares at an average price of $60.33 per share, compared to 2,971 shares repurchased at an average price of $53.04 per share in the same period of 2024[327]. - For the nine months ended September 30, 2025, the Company repurchased 514,458 shares at an average price of $57.89 per share, up from 239,933 shares at an average price of $51.69 per share in the same period of 2024[328]. - As of September 30, 2025, approximately 929,000 shares remained available under the new stock repurchase program authorized in April 2025, which allows for the purchase of up to one million additional shares[329].