In This Article:
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Net Income (Q4 2024): $14.9 million or $1.27 per diluted common share.
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Net Interest Margin (Q4 2024): 3.49%, up from 3.3% in Q4 2023.
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Annualized Return on Average Assets (Q4 2024): 1%.
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Annualized Return on Average Common Equity (Q4 2024): 9.76%.
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Net Interest Income (Q4 2024): $49.5 million, a 9.7% increase from Q4 2023.
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Total Deposits (End of 2024): $4.61 billion, down $91.9 million from the previous quarter.
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Gross Loans Growth (2024): Increased by $100.5 million.
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Nonperforming Assets (End of 2024): 0.16% of total assets.
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Allowance for Credit Losses (End of 2024): 1.36% of total loans.
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Stockholders' Equity Increase (2024): $27.7 million.
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Effective Tax Rate (2024): 18.1%.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Great Southern Bancorp Inc (NASDAQ:GSBC) reported a net interest margin improvement to 3.49% in Q4 2024, up from 3.3% in the same quarter last year.
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The company achieved a significant increase in net interest income for Q4 2024, reaching $49.5 million, a 9.7% increase compared to the same quarter in 2023.
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Asset quality remained strong with nonperforming assets at 0.16% of total assets, and nonperforming loans to period-end loans fell to 0.07%.
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The company strengthened its capital position by increasing stockholders' equity by $27.7 million and strategically repurchasing stock.
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Loan portfolio growth was driven by a $100.5 million increase in gross loans, with multifamily residential loans showing robust growth.
Negative Points
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Net income for Q4 2024 was $14.9 million, reflecting a decline from the previous year due to rising funding costs and competition for deposits.
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The company's financial results were negatively impacted by a nonrecurring, noninterest expense item, reducing annualized return on average common equity by 103 basis points.
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Total deposits decreased by $91.9 million from the previous quarter, driven by reductions across multiple deposit categories.
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The allowance for credit losses as a percentage of total loans remained at 1.36%, indicating ongoing credit risk concerns.
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The company anticipates losing the benefit of a terminated interest rate swap after Q3 2025, which will impact future interest income.
Q & A Highlights
Q: Can you provide more insight into the net interest margin outlook given recent rate cuts? A: Rex Copeland, CFO, explained that while there might be some benefit from CD maturities and repricing of fixed-rate loans, the overall net interest margin is not expected to move significantly from the fourth quarter level. The deposit and funding mix will play a crucial role in any changes.