Great Southern Bancorp Inc (GSBC) Reports Preliminary Q3 Earnings of $1.33 Per Diluted Common Share
GSBC reported preliminary Q3 earnings of $1.33 per diluted common share, down from $1.46 in Q3 2022.
Net income for the quarter was $15.9 million, compared to $18.1 million for the same period last year.
Net interest income for Q3 2023 decreased by approximately 11.6% to $46.7 million.
Total outstanding loans, excluding mortgage loans held for sale, increased by 1.3% to $4.56 billion.
Great Southern Bancorp Inc (NASDAQ:GSBC) released its earnings report for the third quarter of 2023 on October 19, 2023. The company reported preliminary earnings of $1.33 per diluted common share, marking a decrease from $1.46 per diluted common share in the same period last year. Net income for the quarter was $15.9 million, compared to $18.1 million for Q3 2022.
Financial Performance and Challenges
GSBC's net interest income for Q3 2023 decreased by approximately 11.6% to $46.7 million, compared to $52.9 million for the same period in 2022. The company attributed this decrease to competition for deposits and higher market interest rates, which resulted in increased funding costs. Total outstanding loans, excluding mortgage loans held for sale, increased by 1.3% to $4.56 billion.
Significant Expense and Liquidity
The company recorded expenses in Legal and Professional Fees totaling $904,000 related to training and implementation costs for its upcoming core systems conversion. In terms of liquidity, the company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of $1.1 billion and $440 million, respectively.
Capital and Asset Quality
GSBC's capital position remained strong as of September 30, 2023, significantly exceeding the thresholds established by regulators. However, total stockholders equity decreased $1.4 million in the nine months ended September 30, 2023. Non-performing assets and potential problem loans totaled $11.2 million at September 30, 2023, an increase of $5.9 million from $5.3 million at December 31, 2022.
CEO Commentary
Our third quarter performance was solid, but down a bit, as we continued to navigate through a challenging operating environment. Thanks to the hard work of the Great Southern team, we earned $1.33 per diluted common share ($15.9 million) for the third quarter of 2023, compared to $1.46 per diluted common share ($18.1 million) for the third quarter of 2022. Earnings performance ratios in the third quarter of 2023 were again good, with an annualized return on average assets of 1.11% and annualized return on average equity of 11.47%." - Great Southern President and CEO Joseph W. Turner
Despite the challenges, GSBC remains optimistic about its financial position and is confident in its ability to navigate the current market conditions.
This article first appeared on GuruFocus.
