On July 17, 2024, Great Southern Bancorp Inc (GSBC, Financial) released its 8-K filing for the second quarter of 2024. The bank holding company, which is engaged in originating various types of loans and providing a range of banking services, reported earnings per diluted common share of $1.45, surpassing the analyst estimate of $1.21. The company also reported net income of $17.0 million for the quarter.
Performance Overview
Great Southern Bancorp Inc (GSBC, Financial) reported a net income of $17.0 million for the three months ended June 30, 2024, compared to $18.3 million for the same period in 2023. For the six months ended June 30, 2024, net income was $30.4 million, down from $38.8 million in the previous year. Despite the year-over-year decline, the company’s earnings per diluted common share of $1.45 for Q2 2024 exceeded the analyst estimate of $1.21.
Key Financial Metrics
For the quarter ended June 30, 2024, Great Southern Bancorp Inc (GSBC, Financial) reported an annualized return on average common equity of 12.03%, an annualized return on average assets of 1.17%, and an annualized net interest margin of 3.43%. These figures compare to 13.11%, 1.28%, and 3.56%, respectively, for the same quarter in 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Net Interest Income | $46.8 million | $48.1 million | $91.6 million | $101.3 million |
| Non-Interest Income | $9.8 million | $7.8 million | $16.6 million | $15.7 million |
| Non-Interest Expense | $36.4 million | $34.7 million | $70.8 million | $69.2 million |
| Net Income | $17.0 million | $18.3 million | $30.4 million | $38.8 million |
| Earnings per Diluted Common Share | $1.45 | $1.52 | $2.58 | $3.19 |
Balance Sheet and Cash Flow
As of June 30, 2024, Great Southern Bancorp Inc (GSBC, Financial) reported total stockholders’ equity of $568.8 million, a slight decrease from $571.8 million at the end of 2023. The company’s tangible common equity ratio stood at 9.4%, down from 9.7% at the end of 2023. The company also reported a decrease in total deposits by $158.1 million during the quarter.
Commentary and Analysis
Great Southern President and CEO Joseph W. Turner said, “Our second quarter results reflected improved earnings, both on a reported basis and excluding certain significant or non-recurring items, as we continue to operate in a challenging economic environment.”
Turner highlighted the impact of higher funding costs and competitive pressures on deposits, which have moderated over the last few quarters. He also noted improved net interest income in Q2 2024 compared to Q1 2024 due to the termination of an interest rate swap.
Challenges and Achievements
Great Southern Bancorp Inc (GSBC, Financial) faced challenges such as increased funding costs and significant competition for deposits. However, the company achieved higher non-interest income and maintained strong credit quality metrics. The company’s capital and liquidity positions remain robust, with total stockholders’ equity at $568.8 million and available secured funding lines totaling approximately $2.0 billion as of June 30, 2024.
Overall, Great Southern Bancorp Inc (GSBC, Financial) demonstrated resilience in a challenging economic environment, exceeding analyst estimates and maintaining strong financial metrics. For more detailed information, readers can access the full 8-K filing.
Explore the complete 8-K earnings release (here) from Great Southern Bancorp Inc for further details.
