Great Southern Bancorp Inc (GSBC) Q3 2024 Earnings Call Highlights: Strong Net Income and ...

In This Article:

  • Net Income: $16.5 million for the third quarter of 2024.

  • Earnings Per Share (EPS): $1.41 per diluted common share.

  • Return on Average Assets (ROA): 1.11% annualized for the quarter.

  • Return on Average Equity (ROE): 11.1% annualized for the quarter.

  • Net Interest Income: $48 million, up $1.2 million or 2.6% from the same period last year.

  • Net Interest Margin: 3.42%, stable compared to 3.43% in the third quarter of 2023.

  • Loan Growth: Increased by $121.7 million year-to-date, with $70 million growth in the quarter.

  • Nonperforming Assets: Decreased by $12.7 million to $7.7 million, or 0.13% of total assets.

  • Net Charge-offs: $1.5 million for the quarter.

  • Provision for Credit Losses: $1.2 million recorded in the quarter.

  • Stockholders' Equity: Increased by $40.3 million since December 31, 2023.

  • Tangible Common Equity Ratio: 10%, up from 9.7% at the end of 2023.

  • Book Value Per Share: Over $52, up from about $49 in the previous quarter.

  • Deposits: Total deposits at $4.7 billion at the end of September 2024.

  • Non-interest Income: $7.0 million, down $860,000 from the same period in 2023.

  • Non-interest Expense: $33.7 million, down $1.8 million compared to the prior-year quarter.

  • Efficiency Ratio: Improved to 61.34% from 65.3% in Q3 2023.

  • Effective Tax Rate: 18.0% for the quarter.

Release Date: October 17, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Great Southern Bancorp Inc (NASDAQ:GSBC) reported a net income of $16.5 million for the third quarter of 2024, with earnings per diluted common share increasing to $1.41 from $1.33 in the same quarter last year.

  • The company surpassed the $6 billion asset mark, demonstrating strong balance sheet growth.

  • Net interest income increased by 2.6% to $48 million compared to the year-ago quarter, driven by higher loan yields.

  • Nonperforming assets decreased significantly by $12.7 million, improving credit quality metrics.

  • The tangible common equity ratio improved to 10.0%, reflecting a strong capital position and disciplined capital management.

Negative Points

  • Net interest margin remained stable but slightly decreased to 3.42% from 3.43% in the previous year, indicating pressure from elevated deposit costs.

  • Non-interest income declined by $860,000 compared to the same period in 2023, primarily due to reduced overdraft and insufficient fund fees.

  • Year-to-date net interest income decreased to $139.6 million from $148.1 million in the same period in 2023, reflecting margin compression.

  • Deposit costs increased, with interest-bearing demand deposit costs rising by 34 basis points compared to the third quarter of 2023.

  • Loan growth was moderate, with some declines in construction and commercial business loans due to ongoing economic uncertainties.