Great Southern Bancorp Inc. (GSBC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Great Southern Bancorp Inc. has a market cap of $325.6 million; its shares were traded at around $24.25 with a P/E ratio of 41.2 and P/S ratio of 1.2. The dividend yield of Great Southern Bancorp Inc. stocks is 2.9%.GSBC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, and brokered deposits. The Company then utilizes these deposit funds, along with Federal Home Loan Bank (FHLBank) advances and other borrowings, to meet loan demand. In the three months ended March 31, 2010, total deposit balances increased $81.2 million, or 3.0%. Interest-bearing transaction accounts increased $45.0 million while non-interest-bearing checking accounts increased $6.7 million. Retail certificates of deposit decreased $760,000 while total brokered deposits increased $30.3 million. Great Southern Bank customer deposits totaling $379.6 million and $359.1 million, at March 31, 2010 and December 31, 2009, respectively, were part of the CDARS program which allows bank customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit. The FDIC considers these customer accounts to be brokered deposits due to the fees paid in the CDARS program. The level of competition for deposits in our markets is high. While it is our goal to gain checking account and certificate of deposit market share in our branch footprint, we cannot be assured of this in future periods.
During the three months ended March 31, 2010, the Company increased total assets by $47.9 million to $3.69 billion. Most of the increase was attributable to cash and cash equivalents and foreclosed assets, partially offset by decreases in net loans and securities available for sale. Cash and cash equivalents increased $121.6 million as compared to December 31, 2009 due to increases in deposits and repayments of loans and investment securities, creating excess funding. In some instances, the Company invested these excess funds in short-term cash equivalents that caused the Company to earn a small positive or a negative spread. While the Company generally earned a positive spread on securities purchased, it was sometimes much smaller than the Company's overall net interest spread, having the effect of increasing net interest income but negatively affecting net interest margin in 2009 and 2010. The Company expects that it may maintain a higher level of cash and cash equivalents for the time being as excess liquidity in these uncertain times for the U.S. economy and the banking industry, subject to funding activities which are discussed below, and recognizing that this will continue to have the effect of suppressing net interest margin and net interest income. Foreclosed assets also increased $14.9 million as compared to December 31, 2009. For discussion on the increase in foreclosed assets, see “Non-performing assets – foreclosed assets.” Net loans decreased $53.0 million as compared to December 31, 2009, due in large part to a $37.0 million decrease in the acquired loan portfolios. Excluding loans covered in FDIC-assisted transactions, outstanding construction loans and consumer loans decreased $17.6 million and $9.4 million, respectively, offset in part by a $13.1 million increase in commercial real estate loans. The Company's strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels given the current credit and economic environments. Aside from any potential future acquisitions, the Company does not expect to grow the loan portfolio significantly at this time. Securities available for sale decreased $33.4 million as compared to December 31, 2009 primarily because of principal reductions in the Company s mortgage-backed securities. While there is no specifically stated goal, the available-for-sale securities portfolio has in recent quarters been approximately 15% to 20% of total assets. The available-for-sale securities portfolio was 19.8% and 21.0% of total assets at March 31, 2010 and December 31, 2009, respectively. These levels are on the high-side of recent averages because of the 2009 FDIC-assisted transactions and because of the Company s efforts to maintain excess liquidity during uncertain economic times as discussed above in regard to cash and cash equivalents.
Total liabilities increased $45.8 million from December 31, 2009 to $3.39 billion at March 31, 2010. The increase was attributable to increases in deposits and was partially offset by decreases in securities sold under repurchase agreements with customers. Total deposits increased $81.2 million from December 31, 2009. Checking account balances totaled $1.13 billion at March 31, 2010, up from $1.08 billion at December 31, 2009. Interest-bearing checking accounts (mainly money market accounts) increased $45.0 million and non-interest bearing checking accounts increased $6.7 million. Total brokered deposits (excluding CDARS customer account balances) were $279.0 million at March 31, 2010, compared to $269.1 million at December 31, 2009. The Company issued $25.0 million in new brokered certificates during the 2010 period which was partially offset by a decrease in CDARS purchased funds of $15.1 million. In addition, at March 31, 2010 and December 31, 2009, there were Great Southern Bank customer deposits totaling $379.6 million and $359.1 million, respectively, which are part of the CDARS program which allows bank customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit. The FDIC counts these deposits as brokered, but these are deposit accounts that we generate with customers in our local markets. Securities sold under reverse repurchase agreements with customers decreased $26.4 million from December 31, 2009 as these balances fluctuate over time. FHLBank advances balances decreased slightly from the
Net income was $5.5 million for the quarter ended March 31, 2010 compared to net income of $29.2 million for the quarter ended March 31, 2009. This decrease of $23.7 million was primarily due to a decrease in non-interest income of $38.5 million, or 81.1% and an increase in non-interest expense of $7.5 million, or 51.1%, partially offset by an increase in net interest income of $9.0 million, or 51.6%, and a decrease in provision for income taxes of $13.9 million, or 85.3%. Net income available to common shareholders was $4.7 million and $28.4 million for the quarters ended March 31, 2010 and 2009, respectively.
Interest income on investments and other interest-earning assets was nearly unchanged in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Interest income increased $2.4 million as a result of an increase in average balances from $724 million during the three months ended March 31, 2009, to $994 million during the three months ended March 31, 2010. This increase was primarily in interest-earning deposits and available-for-sale mortgage-backed securities, where securities were needed for liquidity and pledging against deposit accounts under customer repurchase agreements and public fund deposits. Interest income decreased by $2.4 million as a result of a decrease in average interest rates from 4.24% during the three months ended March 31, 2009, to 3.08% during the three months ended March 31, 2010. The balance of available-for-sale mortgage-backed securities increased from $561.3 million at March 31, 2009 to $605.5 million at March 31, 2010. In previous years, as principal balances on mortgage-backed securities were paid down through prepayments and normal amortization, the Company replaced a large portion of these securities with variable-rate mortgage-backed securities (primarily one-year and hybrid ARMs). As these securities reached interest rate reset dates in 2007, their rates typically increased along with market interest rate increases. As market interest rates (primarily treasury rates and LIBOR rates) generally declined in 2008 and 2009, the interest rates on those securities that repriced in 2009 decreased at their 2009 interest rate reset dates. The majority of the securities added in 2009 were backed by hybrid ARMs which will have fixed rates of interest for a period of time (generally one to ten years) and then will adjust annually. The actual amount of securities that will reprice and the actual interest rate changes on these securities are subject to the level of prepayments on these securities and the changes that actually occur in market intRead the The complete Report
Great Southern Bancorp Inc. has a market cap of $325.6 million; its shares were traded at around $24.25 with a P/E ratio of 41.2 and P/S ratio of 1.2. The dividend yield of Great Southern Bancorp Inc. stocks is 2.9%.GSBC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In the three months ended March 31, 2010, Great Southern's net loans decreased $53.0 million, or 2.5%, from $2.08 billion at December 31, 2009, to $2.03 billion at March 31, 2010. A large portion of the decrease in net loans was due to a $37.0 million decrease in the loan portfolios acquired through the 2009 FDIC-assisted transactions. Excluding the reductions in these acquired portfolios, loans decreased by approximately $16.0 million, with a decrease in outstanding construction loans of $17.6 million, or 4.9%, partially offset by an increase in commercial real estate loans of $13.1 million, or 2.3%. Some of these changes relate to construction loans for which the projects have been completed and the loans have moved to permanent financing, thereby reducing construction loans and increasing commercial real estate loans. Consumer loans (excluding loans covered by loss sharing agreements with the FDIC) also decreased $9.4 million, or 5.4%. As loan demand is affected by a variety of factors, including general economic conditions, and because of the competition we face and our focus on pricing discipline and credit quality, we cannot be assured that our loan growth will match or exceed the level of increases achieved in prior years. Based upon the current lending environment and economic conditions, the Company does not expect to grow the overall loan portfolio significantly, if at all, at this time. The Company's strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels given the current credit and economic environments.The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, and brokered deposits. The Company then utilizes these deposit funds, along with Federal Home Loan Bank (FHLBank) advances and other borrowings, to meet loan demand. In the three months ended March 31, 2010, total deposit balances increased $81.2 million, or 3.0%. Interest-bearing transaction accounts increased $45.0 million while non-interest-bearing checking accounts increased $6.7 million. Retail certificates of deposit decreased $760,000 while total brokered deposits increased $30.3 million. Great Southern Bank customer deposits totaling $379.6 million and $359.1 million, at March 31, 2010 and December 31, 2009, respectively, were part of the CDARS program which allows bank customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit. The FDIC considers these customer accounts to be brokered deposits due to the fees paid in the CDARS program. The level of competition for deposits in our markets is high. While it is our goal to gain checking account and certificate of deposit market share in our branch footprint, we cannot be assured of this in future periods.
During the three months ended March 31, 2010, the Company increased total assets by $47.9 million to $3.69 billion. Most of the increase was attributable to cash and cash equivalents and foreclosed assets, partially offset by decreases in net loans and securities available for sale. Cash and cash equivalents increased $121.6 million as compared to December 31, 2009 due to increases in deposits and repayments of loans and investment securities, creating excess funding. In some instances, the Company invested these excess funds in short-term cash equivalents that caused the Company to earn a small positive or a negative spread. While the Company generally earned a positive spread on securities purchased, it was sometimes much smaller than the Company's overall net interest spread, having the effect of increasing net interest income but negatively affecting net interest margin in 2009 and 2010. The Company expects that it may maintain a higher level of cash and cash equivalents for the time being as excess liquidity in these uncertain times for the U.S. economy and the banking industry, subject to funding activities which are discussed below, and recognizing that this will continue to have the effect of suppressing net interest margin and net interest income. Foreclosed assets also increased $14.9 million as compared to December 31, 2009. For discussion on the increase in foreclosed assets, see “Non-performing assets – foreclosed assets.” Net loans decreased $53.0 million as compared to December 31, 2009, due in large part to a $37.0 million decrease in the acquired loan portfolios. Excluding loans covered in FDIC-assisted transactions, outstanding construction loans and consumer loans decreased $17.6 million and $9.4 million, respectively, offset in part by a $13.1 million increase in commercial real estate loans. The Company's strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels given the current credit and economic environments. Aside from any potential future acquisitions, the Company does not expect to grow the loan portfolio significantly at this time. Securities available for sale decreased $33.4 million as compared to December 31, 2009 primarily because of principal reductions in the Company s mortgage-backed securities. While there is no specifically stated goal, the available-for-sale securities portfolio has in recent quarters been approximately 15% to 20% of total assets. The available-for-sale securities portfolio was 19.8% and 21.0% of total assets at March 31, 2010 and December 31, 2009, respectively. These levels are on the high-side of recent averages because of the 2009 FDIC-assisted transactions and because of the Company s efforts to maintain excess liquidity during uncertain economic times as discussed above in regard to cash and cash equivalents.
Total liabilities increased $45.8 million from December 31, 2009 to $3.39 billion at March 31, 2010. The increase was attributable to increases in deposits and was partially offset by decreases in securities sold under repurchase agreements with customers. Total deposits increased $81.2 million from December 31, 2009. Checking account balances totaled $1.13 billion at March 31, 2010, up from $1.08 billion at December 31, 2009. Interest-bearing checking accounts (mainly money market accounts) increased $45.0 million and non-interest bearing checking accounts increased $6.7 million. Total brokered deposits (excluding CDARS customer account balances) were $279.0 million at March 31, 2010, compared to $269.1 million at December 31, 2009. The Company issued $25.0 million in new brokered certificates during the 2010 period which was partially offset by a decrease in CDARS purchased funds of $15.1 million. In addition, at March 31, 2010 and December 31, 2009, there were Great Southern Bank customer deposits totaling $379.6 million and $359.1 million, respectively, which are part of the CDARS program which allows bank customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit. The FDIC counts these deposits as brokered, but these are deposit accounts that we generate with customers in our local markets. Securities sold under reverse repurchase agreements with customers decreased $26.4 million from December 31, 2009 as these balances fluctuate over time. FHLBank advances balances decreased slightly from the
Net income was $5.5 million for the quarter ended March 31, 2010 compared to net income of $29.2 million for the quarter ended March 31, 2009. This decrease of $23.7 million was primarily due to a decrease in non-interest income of $38.5 million, or 81.1% and an increase in non-interest expense of $7.5 million, or 51.1%, partially offset by an increase in net interest income of $9.0 million, or 51.6%, and a decrease in provision for income taxes of $13.9 million, or 85.3%. Net income available to common shareholders was $4.7 million and $28.4 million for the quarters ended March 31, 2010 and 2009, respectively.
Interest income on investments and other interest-earning assets was nearly unchanged in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Interest income increased $2.4 million as a result of an increase in average balances from $724 million during the three months ended March 31, 2009, to $994 million during the three months ended March 31, 2010. This increase was primarily in interest-earning deposits and available-for-sale mortgage-backed securities, where securities were needed for liquidity and pledging against deposit accounts under customer repurchase agreements and public fund deposits. Interest income decreased by $2.4 million as a result of a decrease in average interest rates from 4.24% during the three months ended March 31, 2009, to 3.08% during the three months ended March 31, 2010. The balance of available-for-sale mortgage-backed securities increased from $561.3 million at March 31, 2009 to $605.5 million at March 31, 2010. In previous years, as principal balances on mortgage-backed securities were paid down through prepayments and normal amortization, the Company replaced a large portion of these securities with variable-rate mortgage-backed securities (primarily one-year and hybrid ARMs). As these securities reached interest rate reset dates in 2007, their rates typically increased along with market interest rate increases. As market interest rates (primarily treasury rates and LIBOR rates) generally declined in 2008 and 2009, the interest rates on those securities that repriced in 2009 decreased at their 2009 interest rate reset dates. The majority of the securities added in 2009 were backed by hybrid ARMs which will have fixed rates of interest for a period of time (generally one to ten years) and then will adjust annually. The actual amount of securities that will reprice and the actual interest rate changes on these securities are subject to the level of prepayments on these securities and the changes that actually occur in market intRead the The complete Report
