Great Southern Bancorp(US:GSBC)2025-10-16 20:00Financial Data and Key Metrics Changes - The company reported net income of $17,800,000 for Q3 2025, an increase from $16,500,000 in the same period last year, translating to $1.56 per diluted common share compared to $1.41 [6][12] - Net interest income rose to $50,800,000, up by $2,800,000 or 5.8% from $48,000,000 year-over-year [6][13] - The annualized net interest margin improved to 3.72% from 3.42% a year ago, reflecting stable loan yield and effective funding cost control [7][13] - Non-interest expense increased to $36,100,000 from $33,700,000 in the prior year, primarily due to higher legal and professional fees [10][16] Business Line Data and Key Metrics Changes - Gross loans totaled $4,540,000,000, a decline of $223,000,000 or 4.7% from the end of 2024, mainly due to elevated commercial real estate and multifamily loan payoffs [7][20] - Construction lending showed solid momentum with total unfunded construction commitments steady at approximately $600,000,000 [8][20] - Non-interest income totaled $7,100,000, slightly up from $7,000,000 in the previous year, driven by improvements in commissions on annuity sales [15][16] Market Data and Key Metrics Changes - Total deposits decreased by $77,500,000 or 1.7% compared to the end of 2024, primarily due to a decrease in brokered deposits [20][21] - Nonperforming assets represented 0.14% of total assets, consistent with prior periods, indicating healthy asset quality [21][22] Company Strategy and Development Direction - The company remains focused on maintaining strong positions related to credit quality, capital, and liquidity despite competitive pressures [11][23] - A new stock repurchase authorization for up to 1,000,000 shares was approved, reflecting the company's commitment to returning value to shareholders [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver consistent profitability while managing risks and expenses [5][11] - The outlook for loan growth is modest, with expectations to keep balances steady for the remainder of the year [28][30] Other Important Information - The efficiency ratio was reported at 62.45%, indicating a focus on cost control and operational efficiency [19] - The allowance for credit losses as a percentage of total loans stood at 1.43%, reflecting a slight increase from the previous quarter [22] Q&A Session Summary Question: Loan growth outlook and regional opportunities - Management highlighted opportunities across various regions including Texas and Atlanta, despite elevated payoffs [28] Question: Credit quality and potential weaknesses - Management noted no broad signs of weakness in the portfolio, emphasizing that any issues are idiosyncratic to specific projects [29] Question: Operating expenses outlook - Management indicated that operating expenses may stabilize around the current level, with some legal fees expected to decrease [37][38] Question: Commission income sustainability - Management acknowledged that commission income has been elevated but could fluctuate based on customer interest [40][41]