Great Southern Bancorp(GSBC) - 2024 Q1 - Quarterly Results

Financial Performance - For the quarter ended March 31, 2024, the company reported preliminary earnings of $1.13 per diluted common share, down from $1.67 per diluted common share for the same period in 2023, resulting in a net income of $13.4 million compared to $20.5 million in 2023[1][26]. - Net income for the three months ended March 31, 2024, was $13,407 thousand, down from $20,456 thousand in the previous quarter, reflecting a decrease of 34.3%[1]. - Great Southern earned $1.13 per diluted common share ($13.4 million) for Q1 2024, down from $1.67 per diluted common share ($20.5 million) in Q1 2023[49]. - Earnings per common share (diluted) decreased to $1.13 in Q1 2024 from $1.67 in Q1 2023, reflecting a decline of 32.3%[98]. - The annualized return on average common stockholders' equity decreased to 9.36% from 14.88% year-over-year[114]. Income and Expenses - Net interest income decreased by $8.4 million, or approximately 15.7%, to $44.8 million for the first quarter of 2024, compared to $53.2 million for the first quarter of 2023, with a net interest margin of 3.32% compared to 3.99% in the prior year[19][24]. - Non-interest income decreased by $1.1 million to $6.8 million in Q1 2024, primarily due to lower point-of-sale and ATM fees[55]. - Other income decreased by $465,000 compared to the prior year quarter, with $404,000 recorded for debit card activity incentives in 2024, down from $799,000 in 2023[11]. - Non-interest expense decreased by $41,000 to $34.4 million for the quarter ended March 31, 2024, primarily due to a decrease in legal, audit, and other professional fees[31]. - The Company's efficiency ratio for the quarter ended March 31, 2024, was 66.68%, an increase from 56.42% in the same quarter of 2023[32]. Asset Quality - Non-performing assets increased to $21.3 million, or 0.4% of total assets, as of March 31, 2024, up from $11.8 million, or 0.2% of total assets, at December 31, 2023[20][23]. - Non-performing loans increased by $9.6 million to $21.3 million, primarily in the non-performing other residential (multi-family) loans category[81]. - The allowance for credit losses as a percentage of total loans was 1.40% at March 31, 2024, compared to 1.39% at December 31, 2023[44]. - The allowance for credit losses increased to $65,087 thousand from $64,670 thousand, reflecting a rise of 0.6%[1]. - Non-performing loans to period-end loans ratio rose to 0.46% from 0.06%, suggesting a decline in asset quality[114]. Capital and Liquidity - The company had a Tier 1 Leverage Ratio of 11.0%, a Common Equity Tier 1 Capital Ratio of 11.9%, a Tier 1 Capital Ratio of 12.4%, and a Total Capital Ratio of 15.1% as of March 31, 2024, indicating a strong capital position[4][23]. - The company had approximately $2.1 billion in on-balance sheet liquidity and diverse funding sources, with uninsured deposits making up about 15% of total deposits as of March 31, 2024[21][23]. - Total stockholders' equity as of March 31, 2024, was $565.2 million, equivalent to a book value of $48.31 per common share[34]. - Total stockholders' equity decreased to $565,162 thousand from $571,829 thousand, a decline of 1.2%[1]. - The Company had unrealized losses on held-to-maturity investment securities totaling $25.6 million at March 31, 2024, which would decrease total stockholders' equity by $19.3 million if included[36]. Loans and Deposits - Total outstanding loans remained stable at $4.59 billion as of March 31, 2024, with a slight decrease of $3.4 million, primarily in commercial business and commercial real estate loans[23]. - Total net loans decreased by $3.4 million, or 0.1%, to $4.59 billion at March 31, 2024, primarily due to declines in commercial business and real estate loans[41]. - Total deposits increased by $51.7 million during Q1 2024, with interest-bearing checking balances rising by $79.3 million (about 3.6%) and non-interest-bearing checking balances decreasing by $18.8 million (about 2.1%)[65]. - Total deposits increased to $4,773,397 thousand as of March 31, 2024, up from $4,721,708 thousand at December 31, 2023, an increase of 1.1%[96]. - The pipeline of loan commitments and unfunded lines increased slightly to $1.2 billion, including $680 million in unfunded construction loans as of March 31, 2024[20]. Other Significant Events - The migration to a new core banking platform has been delayed to mid-2024 and is currently on hold due to contractual disputes with the vendor[85]. - A retail banking center in Springfield, Missouri, was consolidated into a nearby banking center in January 2024, with the property under contract to sell[74]. - The Company recorded significant or non-recurring items, including $929,000 in legal and professional fees related to core systems conversion and a $423,000 reimbursement for marketing expenses[23].