Great Southern Bancorp(US:GSBC)2025-07-17 20:02Financial Data and Key Metrics Changes - The company reported net income of $19,800,000 for Q2 2025, an increase from $17,000,000 in the same quarter last year, translating to earnings per share of $1.72 compared to $1.45 a year ago [6][13] - Net interest income rose to $51,000,000, an improvement of approximately 8.9% from $46,800,000 in the previous year [8][14] - The annualized net interest margin improved to 3.68%, up 25 basis points from the previous year and 11 basis points higher than Q1 2025 [8][14] Business Line Data and Key Metrics Changes - Gross loans totaled $4,600,000,000, a decline of $157,000,000 or 3.3% from the end of the previous year [8][20] - The largest loan categories were multifamily and commercial real estate lending, with balances of 1.58 billion and 1.49 billion respectively [9] - Non-interest income for the quarter was $8,200,000, a decrease of $1,600,000 or 16.5% compared to the same quarter last year [16][17] Market Data and Key Metrics Changes - Total deposits decreased by $73,900,000 or 1.6% from the end of Q1 2025, totaling $4,680,000,000 [9][21] - Non-performing assets were $8,100,000, representing 0.14% of total assets, a decrease from the previous quarter [10][22] - The allowance for credit losses as a percentage of total loans stood at 1.41%, slightly up from 1.36% at the end of Q1 2025 [22] Company Strategy and Development Direction - The company remains focused on prudent risk management and disciplined expense management to support long-term shareholder value [7][12] - There is an emphasis on balancing loan growth with appropriate pricing and loan structure, reflecting a conservative credit posture [9][20] - The company is committed to maintaining strong capital levels and delivering consistent value for shareholders amidst ongoing market uncertainty [12][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for long-term growth but noted a competitive environment with fewer opportunities in the loan market [29] - The company does not expect significant changes in origination activities in the near term, similar to the first half of 2025 [30] - Management indicated that while there may be slight increases in expenses due to technology investments, overall expense control remains a priority [32][34] Other Important Information - The company redeemed all outstanding subordinated notes totaling $75,000,000, saving future interest costs [24] - A new stock repurchase authorization for an additional 1,000,000 shares was approved, with nearly 176,000 shares repurchased in Q2 2025 [25] - Cash and cash equivalents totaled $245,900,000, with access to additional funding lines totaling $1,550,000,000 [21] Q&A Session Summary Question: Loan growth outlook for the second half of the year - Management is optimistic long-term but notes a competitive environment with fewer opportunities, expecting origination activities to remain similar to the first half of 2025 [29][30] Question: Visibility on expected loan payoffs - Management indicated that loan payoffs are unpredictable and difficult to forecast, with some expected payoffs potentially being pushed back [31] Question: Expense control outlook - Management expects expenses to remain consistent, with some potential increases related to technology and compensation adjustments, but nothing significant anticipated [32][34]