Great Southern Bancorp(GSBC) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported net income of $17.2 million or$ 1.47 per diluted common share, up from $13.4 million or$ 1.13 per share in the same quarter a year ago, reflecting a strong performance [6][16] - Net interest income totaled $49.3 million in Q1 2025, an increase of about 10% from$ 44.8 million in Q1 2024 [8][16] - The net interest margin increased to 3.57%, up from 3.32% in the same period last year [17][24] Business Line Data and Key Metrics Changes - The loan portfolio remained flat at $4.76 billion, up 2.2% from the end of Q1 2024 [9][25] - The largest categories in the loan portfolio were multifamily at$ 1.59 billion and commercial real estate at $1.49 billion [10] - Non-interest income totaled$ 6.6 million, a decrease of 3.2% compared to the first quarter last year [20] Market Data and Key Metrics Changes - Total deposits increased by 3.3% to $4.76 billion compared to the end of 2024, driven by increases in interest-bearing checking balances [11][26] - Non-performing assets were 0.16% of total assets, with non-performing loans at 0.07% of period-end loans [28][29] Company Strategy and Development Direction - The company remains focused on execution, protecting margins, and supporting relationship-based loan growth while investing strategically in people and systems [15][24] - The board approved a new stock repurchase authorization of up to 1 million shares, indicating a commitment to returning value to shareholders [33] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is competition for loans, the overall activity is down slightly, and they do not expect significant growth in the near term [47] - The company maintains a strong capital position and is well-positioned to address current and future funding needs despite economic uncertainties [25][34] Other Important Information - Non-interest expenses were flat year-over-year at$ 34.8 million, reflecting effective cost management [14][21] - The allowance for credit losses as a percentage of total loans stood at 1.36%, consistent with the end of 2024 [30] Q&A Session Summary Question: How should the margin react without changes to Fed policy? - Management indicated that while there may be slight benefits from maturing CDs, substantial changes are not expected [38] Question: How would the balance sheet react to potential Fed rate cuts? - Management feels neutral about interest rate risk and expects a slight negative impact initially, but recovery should occur quickly [43][44] Question: Thoughts on buyback activity going forward? - Management expects to remain active in buybacks, depending on share prices and availability [54][55] Question: Is modest growth in expenses reasonable without material planned expenditures? - Management confirmed that modest growth in expenses is a fair assumption, with no unusual expenditures anticipated [57]