Preliminary Financial Results and Other
Matters for the Third Quarter and First Nine Months of
2018:
- Significant Unusual Income or Expense
Items: During the three months ended
September 30, 2018, the Company recorded the following unusual
item: the Company sold its branches and related deposits in Omaha,
Neb., resulting in pretax income of $7.25 million ($7.4 million
gain, which is included in the Consolidated Statements of Income
under “Noninterest Income,” less $165,000 of transaction expenses,
which is included in the Consolidated Statements of Income under
various "Noninterest Expense" categories. The impact of this
item, after the effect of the full tax rate for the Company,
increased earnings per common share by approximately $0.39.
- Total Loans:
Total gross loans (including the undisbursed portion of loans),
excluding FDIC-assisted acquired loans and mortgage loans held for
sale, increased $356.2 million, or 8.2%, from December 31, 2017, to
September 30, 2018 and increased $81.7 million from June 30,
2018. This increase was primarily in construction loans,
commercial real estate loans, other residential (multi-family)
loans and one- to four-family residential mortgage loans. The
FDIC-acquired loan portfolios had net decreases totaling $32.5
million during the nine months ended September 30, 2018, and
consumer auto loans outstanding decreased $79.3 million during the
nine months ended September 30, 2018. Outstanding net loan
receivable balances increased $216.5 million, from $3.73 billion at
December 31, 2017 to $3.94 billion at September 30, 2018 and
increased $83.0 million from June 30, 2018.
- Asset Quality:
Non-performing assets and potential problem loans, excluding those
acquired in FDIC-assisted transactions (which are accounted for and
analyzed as loan pools rather than individual loans), totaled $19.2
million at September 30, 2018, a decrease of $16.6 million from
$35.8 million at December 31, 2017 and down $11.0 million from
$30.2 million at June 30, 2018. Non-performing assets at
September 30, 2018 were $15.9 million (0.35% of total assets), down
$11.9 million from $27.8 million (0.63% of total assets) at
December 31, 2017 and down $5.6 million from $21.5 million (0.47%
of total assets) at June 30, 2018.
- Capital: The
capital position of the Company continues to be strong. At
September 30, 2018, the Company’s tangible common equity to
tangible assets ratio was 10.9%. On a preliminary basis, as of
September 30, 2018, the Company’s Tier 1 Leverage Ratio was 11.6%,
Common Equity Tier 1 Capital Ratio was 11.3%, Tier 1 Capital Ratio
was 11.8%, and Total Capital Ratio was 14.4%.
- Net Interest Income:
Net interest income for the third quarter of 2018 increased
$3.7 million to $43.0 million compared to $39.3 million for the
third quarter of 2017. Net interest income was $41.2 million
for the second quarter of 2018. Net interest margin was 4.02%
for the quarter ended September 30, 2018, compared to 3.77% for the
quarter ended September 30, 2017 and 3.94% for the quarter ended
June 30, 2018. The increase in net interest margin compared
to the prior year third quarter is primarily due to increased
yields in most loan categories and higher overall yields on
investments and interest-earning deposits at the Federal Reserve
Bank, partially offset by an increase in the average interest rate
paid on deposits and FHLBank advances. The positive impact on
net interest margin from the additional yield accretion on acquired
loan pools that was recorded during the period was 14, 9 and 10
basis points for the quarters ended September 30, 2018, September
30, 2017, and June 30, 2018, respectively. For further
discussion of the additional yield accretion of the discount on
acquired loan pools, see “Net Interest Income.”
SPRINGFIELD, Mo., Oct. 17, 2018 (GLOBE NEWSWIRE) -- Great
Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great
Southern Bank, today reported that preliminary earnings for the
three months ended September 30, 2018, were $1.57 per diluted
common share ($22.5 million available to common shareholders)
compared to $0.82 per diluted common share ($11.7 million available
to common shareholders) for the three months ended September 30,
2017.
Preliminary earnings for the nine months ended September 30,
2018, were $3.49 per diluted common share ($49.8 million available
to common shareholders) compared to $2.77 per diluted common share
($39.4 million available to common shareholders) for the nine
months ended September 30, 2017.
For the quarter ended September 30, 2018, annualized return on
average common equity was 17.80%, annualized return on average
assets was 1.99%, and net interest margin was 4.02%, compared to
10.09%, 1.05% and 3.77%, respectively, for the quarter ended
September 30, 2017. For the nine months ended September 30,
2018, annualized return on average common equity was 13.51%;
annualized return on average assets was 1.49%; and net interest
margin was 3.96% compared to 11.65%, 1.18% and 3.75%, respectively,
for the nine months ended September 30, 2017.
President and CEO Joseph W. Turner commented, “We are pleased
with our third quarter results. Earnings were very strong, due in
part to the gain related to the sale of the Omaha, Neb. branches
and related deposits in July 2018. Even without this substantial
gain, earnings were $1.18 per common diluted share, underscoring a
very solid quarter driven by an increased core net interest margin,
loan growth, expense containment, and lower credit costs. Core net
interest margin for the third quarter 2018 expanded to 3.88%, which
was an increase of 20 and four basis points from the year ago
quarter and linked quarter, respectively. The primary driver of the
core margin expansion was increased yields in most of our loan
categories, partially offset by an increase in deposit costs.
Non-interest expenses were only slightly higher than the prior year
quarter as we continue our strong focus on efficiencies and cost
containment.”
Turner continued, “Commercial real estate and construction loan
production remained strong during the quarter, propelling
outstanding net loan balances by $83 million during the quarter.
From the end of 2017, outstanding net loan balances have increased
$216.5 million. Healthy loan demand continues throughout the
franchise’s footprint, although competition for quality loans is
fierce. Our newest loan production offices in Atlanta and Denver
are expected to come online during the fourth quarter.
“During the third quarter 2018, our asset quality metrics
further improved. Non-performing assets and potential problem loans
decreased by $16.6 million from the end of 2017, and were down
$11.0 million from the end of the second quarter 2018. A large
portion of the decrease in non-performing assets during the most
recent quarter was due to the sale of $3.4 million in foreclosed
real estate assets.”
Selected
Financial Data: |
|
|
|
(In
thousands, except per share data) |
Three Months
Ended
September 30, |
|
Nine Months
Ended
September 30, |
|
2018 |
2017 |
|
2018 |
2017 |
Net
interest income |
$ |
42,985 |
$ |
39,281 |
|
$ |
123,636 |
$ |
115,883 |
Provision for loan losses |
|
1,300 |
|
2,950 |
|
|
5,200 |
|
7,150 |
Non-interest income |
|
14,604 |
|
7,655 |
|
|
28,998 |
|
31,151 |
Non-interest expense |
|
28,309 |
|
28,034 |
|
|
86,537 |
|
84,976 |
Provision for income taxes |
|
5,464 |
|
4,289 |
|
|
11,076 |
|
15,550 |
Net
income and net income available to common shareholders |
$ |
22,516 |
$ |
11,663 |
|
$ |
49,821 |
$ |
39,358 |
|
|
|
|
|
|
Earnings per diluted common share |
$ |
1.57 |
$ |
0.82 |
|
$ |
3.49 |
$ |
2.77 |
|
|
|
|
|
|
NET INTEREST INCOME
Net interest income for the third quarter of 2018 increased $3.7
million to $43.0 million compared to $39.3 million for the third
quarter of 2017. Net interest margin was 4.02% in the third
quarter of 2018, compared to 3.77% in the same period of 2017, an
increase of 25 basis points. For the three months ended
September 30, 2018, the net interest margin increased eight basis
points compared to the net interest margin of 3.94% in the three
months ended June 30, 2018, primarily as a result of increased
yields in most loan categories and higher overall yields on
investments and interest-earning deposits at the Federal Reserve
Bank, partially offset by an increase in the average interest rate
on deposits. The increase in the margin from the prior year third
quarter was primarily the result of increased yields in most loan
categories and higher overall yields on investments and
interest-earning deposits at the Federal Reserve Bank and an
increase in the additional yield accretion recognized in
conjunction with updated estimates of the fair value of the
acquired loan pools compared to the prior year period, partially
offset by an increase in the average interest rate on deposits and
borrowings. The average interest rate spread was 3.76% for
the three months ended September 30, 2018, compared to 3.60% for
the three months ended September 30, 2017 and 3.72% for the three
months ended June 30, 2018.
Net interest income for the nine months ended September 30, 2018
increased $7.7 million to $123.6 million compared to $115.9 million
for the nine months ended September 30, 2017. Net interest
margin was 3.96% in the nine months ended September 30, 2018,
compared to 3.75% in the same period of 2017, an increase of 21
basis points. The average interest rate spread was 3.74% for
the nine months ended September 30, 2018, compared to 3.59% for the
nine months ended September 30, 2017.
The Company’s net interest margin has been positively impacted
by significant additional yield accretion recognized in conjunction
with updated estimates of the fair value of the loan pools acquired
in the FDIC-assisted transactions. On an on-going basis, the
Company estimates the cash flows expected to be collected from the
acquired loan pools. For each of the loan portfolios acquired, the
cash flow estimates increased during the current and prior periods
presented below, based on payment histories and reduced credit loss
expectations. This resulted in increased income that has been
spread, on a level-yield basis, over the remaining expected lives
of the loan pools (and, therefore, has decreased over time). In the
prior year nine month period, the increases in expected cash flows
also reduced the amount of expected reimbursements under the
remaining loss sharing agreements with the FDIC (which remaining
agreements were terminated on June 9, 2017), which were recorded as
indemnification assets, with such reductions amortized on a
comparable basis over the remainder of the terms of the loss
sharing agreements or the remaining expected lives of the loan
pools, whichever was shorter. Additional estimated cash flows
(reclassification of discounts from non-accretable to accretable)
totaling approximately $1.5 million and $4.0 million were recorded
in the three and nine months ended September 30, 2018,
respectively, related to these acquired loan pools.
The impact of adjustments on all portfolios acquired in
FDIC-assisted transactions for the reporting periods presented is
shown below:
|
Three Months
Ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
|
|
(In thousands, except basis points
data) |
Impact on net interest income/ |
|
|
|
|
|
|
|
net interest margin (in basis points) |
$ |
1,424 |
14 bps |
|
$ |
975 |
9 bps |
Non-interest income |
|
— |
|
|
|
— |
|
Net impact to pre-tax income |
$ |
1,424 |
|
|
$ |
975 |
|
|
Nine Months
Ended |
|
September 30,
2018 |
|
September 30,
2017 |
|
|
|
(In thousands, except basis points
data) |
Impact on net interest income/ |
|
|
|
|
|
|
|
|
net interest margin (in basis points) |
$ |
3,652 |
12
bps |
|
$ |
4,237 |
|
14 bps |
Non-interest income |
|
— |
|
|
|
(634 |
) |
|
Net impact to pre-tax income |
$ |
3,652 |
|
|
$ |
3,603 |
|
|
Because these adjustments will be recognized generally over the
remaining lives of the loan pools, they will impact future periods
as well. The remaining accretable yield adjustment that will
affect interest income is $2.9 million. Of the remaining
adjustments affecting interest income, we expect to recognize $1.0
million of interest income during the remainder of 2018.
Additional adjustments may be recorded in future periods from the
FDIC-assisted transactions, as the Company continues to estimate
expected cash flows from the acquired loan pools.
Excluding the impact of the additional yield accretion, net
interest margin for the three and nine months ended September 30,
2018, increased 20 and 23 basis points, respectively, when compared
to the year-ago periods. The increase in net interest margin
in the three and nine month periods is primarily due to increased
yields in most loan categories and higher overall yields on
investments and interest-earning deposits at the Federal Reserve
Bank, partially offset by an increase in the average interest rate
on deposits and FHLB Advances.
For additional information on net interest income components,
see the “Average Balances, Interest Rates and Yields” tables in
this release.
NON-INTEREST INCOME
For the quarter ended September 30, 2018, non-interest income
increased $6.9 million to $14.6 million when compared to the
quarter ended September 30, 2017, primarily as a result of the
following items:
- Sale of Omaha-area banking centers: On July 20,
2018, the Company closed on the sale of four banking centers in the
Omaha, Neb., metropolitan market. The Bank sold branch deposits of
approximately $56 million and sold substantially all branch-related
real estate, fixed assets and ATMs. The Company recorded a pre-tax
gain of $7.4 million on the sale during the 2018
quarter.
- Net gains on loan sales: Net gains on loan sales
decreased $302,000 compared to the prior year quarter. The
decrease was due to a decrease in originations of fixed-rate loans
during the 2018 period compared to the 2017 period. Fixed
rate single-family mortgage loans originated are generally
subsequently sold in the secondary market. In 2018, the Company has
originated more variable-rate single-family mortgage loans, which
have been retained in the Company’s portfolio.
For the nine months ended September 30, 2018, non-interest
income decreased $2.2 million to $29.0 million when compared to the
nine months ended September 30, 2017, primarily as a result of the
following items:
- 2017 gain on early termination of FDIC loss sharing
agreements for Inter Savings Bank: In 2017, the Company
recognized a one-time gross gain of $7.7 million from the
termination of the loss sharing agreements for Inter Savings Bank,
which was recorded in the accretion of income related to business
acquisitions line item of the consolidated statements of income for
the nine months ended September 30, 2017.
- Net gains on loan sales: Net gains on loan sales
decreased $905,000 compared to the prior year period. The
decrease was due to a decrease in originations of fixed-rate loans
during the 2018 period compared to the 2017 period. Fixed
rate single-family mortgage loans originated are generally
subsequently sold in the secondary market. In 2018, the Company has
originated more variable-rate single-family mortgage loans, which
have been retained in the Company’s portfolio.
- Late charges and fees on loans: Late charges and
fees on loans decreased $682,000 compared to the prior year
period. The decrease was primarily due to fees totaling
$632,000 on loan payoffs received on four loan relationships in the
2017 period which were not repeated in the 2018
period.
- Other income: Other income decreased $835,000
compared to the prior year period. The decrease was primarily
due to income from interest rate swaps entered into in 2017, the
receipt of approximately $260,000 more income related to the exit
of certain tax credit partnerships in 2017 compared to 2018 and
$250,000 less in merchant card services fees compared to
2017.
- Sale of Omaha-area banking centers: On July 20,
2018, the Company closed on the sale of four banking centers in the
Omaha, Neb., metropolitan market and recorded a pre-tax gain of
$7.4 million on the sale during the 2018 period, as described
above.
- Amortization of income related to business acquisitions:
Because of the termination of the remaining loss sharing
agreements in June 2017, the net amortization expense related to
business acquisitions was $-0- for the nine months ended September
30, 2018, compared to $486,000 for the nine months ended September
30, 2017, which reduced non-interest income by that amount in the
previous year period.
NON-INTEREST EXPENSE
For the quarter ended September 30, 2018, non-interest expense
increased $275,000 to $28.3 million when compared to the quarter
ended September 30, 2017, primarily as a result of the following
items:
- Salaries and employee benefits: Salaries and
employee benefits increased $498,000 from the prior year
quarter. This increase is approximately 3% over the prior
year expense total and is primarily attributable to normal annual
raises for employees and increases in costs for health insurance
and retirement benefits.
- Net occupancy and equipment expense: Net occupancy
and equipment expense increased $472,000 in the quarter ended
September 30, 2018 compared to the same quarter in 2017, primarily
due to increased depreciation expense for upgraded ATM/ITM
machines, deconversion expenses related to the sale of the
Omaha-area banking centers and repairs and maintenance costs for
various banking centers.
- Legal, audit and other professional fees: Legal,
audit and other professional fees increased $265,000 in the quarter
ended September 30, 2018 compared to the same period in 2017.
The increase was primarily due to legal costs related to the sale
of the Omaha-area banking centers, fees related to the ongoing
implementation of an accounting system which will be utilized for
the new loan loss accounting standard and fees for professional
services related to process improvement initiatives.
- Expense on foreclosed assets and repossessions:
Expense on foreclosed assets decreased $845,000 compared to
the prior year quarter primarily due to increased gains on the
sales of foreclosed assets and repossessions and lower repossession
and collection expenses.
For the nine months ended September 30, 2018, non-interest
expense increased $1.5 million to $86.5 million when compared to
the nine months ended September 30, 2017, primarily as a result of
the following items:
- Expense on foreclosed assets and repossessions:
Expense on foreclosed assets increased $1.8 million compared to the
prior year period primarily due to the valuation write-down of
certain foreclosed assets during the second quarter 2018, totaling
approximately $2.1 million, partially offset by the items noted
above in the three month period.
- Net occupancy and equipment expense: Net occupancy
expense increased $815,000 in the nine months ended September 30,
2018 compared to the same period in 2017. This increase was
due to the reasons noted above in the three month period, as well
as increased expenses related to hardware and software costs for
loan loss accounting and commercial loan systems and data servers
at the Company’s disaster recovery site.
- Legal, audit and other professional fees: Legal,
audit and other professional fees increased $382,000 in the nine
months ended September 30, 2018 compared to the same period in 2017
for the reasons noted above in the three month period.
- Office supplies and printing expense: Office
supplies and printing expense decreased $419,000 in the nine months
ended September 30, 2018 compared to the same period in 2017.
During the 2017 period the Bank incurred printing and other costs
totaling $373,000 related to the replacement of a portion of
customer debit cards with chip-enabled cards, which was not
repeated in the current year period.
- Other operating expenses: Other operating expenses
decreased $786,000 in the nine months ended September 30, 2018
compared to the same period in 2017. During the 2017 period,
the Company incurred a $340,000 prepayment penalty when FHLB
advances totaling $31.4 million were repaid prior to maturity,
which was not repeated in the 2018 period. In addition, the
Company experienced significantly lower debit card and check fraud
losses in the 2018 period compared to the 2017 period.
The Company’s efficiency ratio for the quarter ended September
30, 2018, was 49.16% compared to 59.73% for the same quarter in
2017. The efficiency ratio for the nine months ended
September 30, 2018, was 56.70% compared to 57.79% for the same
period in 2017. The decrease in the ratio in both the 2018
three and nine month periods was primarily due to an increase in
non-interest income and an increase in net interest income.
In the 2018 periods, the Company’s efficiency ratio was positively
impacted by the significant gain recorded related to the sale of
the Bank’s branches and related deposits in Omaha, Neb. In
the 2017 nine-month period, the Company’s efficiency ratio was
positively impacted by the significant gain recorded related to the
termination of the InterSavings Bank loss sharing agreements.
Excluding these non-interest income gain items, the Company’s
efficiency ratio would have been 56.42% and 59.59% in the three and
nine month 2018 periods and would have been 59.73% and 60.78% in
the three and nine month 2017 periods. The Company’s ratio of
non-interest expense to average assets was 2.50% and 2.58% for the
three and nine months ended September 30, 2018, respectively,
compared to 2.52% and 2.54% for the three and nine months ended
September 30, 2017, respectively. Average assets for the
quarter ended September 30, 2018, increased $83.9 million, or 1.9%,
from the quarter ended September 30, 2017, primarily due to an
increase in loans receivable. Average assets for the nine
months ended September 30, 2018, increased $4.8 million, or 0.1%,
from the nine months ended September 30, 2017, primarily due to
organic loan growth, partially offset by decreases in investment
securities and other interest-earning assets.
INCOME TAXES
On December 22, 2017, H.R.1, originally known as
the Tax Cuts and Jobs Act (the “Act”), was signed into law. Among
other things, the Act permanently lowers the corporate federal
income tax rate to 21% from the prior maximum rate of 35%,
effective for tax years including or commencing January 1,
2018. The Company currently expects its effective tax rate
(combined federal and state) to decrease from approximately 26.7%
in 2017 to approximately 16.5% to 18.5% in 2018, mainly as a
result of the Act.
For the three months ended September 30, 2018
and 2017, the Company's effective tax rate was 19.5% and 26.9%,
respectively. For the nine months ended September 30, 2018
and 2017, the Company's effective tax rate was 18.2% and 28.3%,
respectively. These effective rates were lower than the
statutory federal tax rates of 21% (2018) and 35% (2017), due
primarily to the utilization of certain investment tax credits and
to tax-exempt investments and tax-exempt loans which reduced the
Company’s effective tax rate. The Company’s effective tax
rate may fluctuate in future periods as it is impacted by the level
and timing of the Company’s utilization of tax credits and the
level of tax-exempt investments and loans and the overall level of
pre-tax income. The Company's effective income tax rate is
currently expected to continue to be less than the statutory rate
due primarily to the factors noted above.
CAPITAL
As of September 30, 2018, total stockholders’ equity and common
stockholders’ equity were $508.1 million (11.1% of total assets),
equivalent to a book value of $35.90 per common share. Total
stockholders’ equity and common stockholders’ equity at December
31, 2017, were $471.7 million (10.7% of total assets), equivalent
to a book value of $33.48 per common share. At September 30,
2018, the Company’s tangible common equity to tangible assets ratio
was 10.9%, compared to 10.5% at December 31, 2017.
On a preliminary basis, as of September 30, 2018, the Company’s
Tier 1 Leverage Ratio was 11.6%, Common Equity Tier 1 Capital Ratio
was 11.3%, Tier 1 Capital Ratio was 11.8%, and Total Capital Ratio
was 14.4%. On September 30, 2018, and on a preliminary basis,
the Bank’s Tier 1 Leverage Ratio was 12.4%, Common Equity Tier 1
Capital Ratio was 12.6%, Tier 1 Capital Ratio was 12.6%, and Total
Capital Ratio was 13.5%.
LOANS
Total gross loans (including the undisbursed portion of loans),
excluding FDIC-assisted acquired loans and mortgage loans held for
sale, increased $356.2 million, or 8.2%, from December 31, 2017, to
September 30, 2018. This increase was primarily in
construction loans ($218 million), commercial real estate loans
($149 million), one- to four-family residential mortgage loans ($55
million) and other residential (multi-family) loans ($46
million). These increases were partially offset by decreases
in consumer auto loans ($79 million). The FDIC-acquired loan
portfolios had net decreases totaling $32.5 million during the nine
months ended September 30, 2018.
Loan commitments and the unfunded portion of loans at the dates
indicated were as follows (in thousands):
|
September
30,
2018 |
June 30,
2018 |
March 31,
2018 |
December 31,
2017 |
December 31,
2016 |
December 31,
2015 |
Closed loans with unused available lines |
|
|
|
|
|
|
Secured by real estate (one- to four-family) |
$ |
151,880 |
$ |
144,994 |
$ |
138,375 |
$ |
133,587 |
$ |
123,433 |
$ |
105,390 |
Secured by real estate (not one- to
four-family) |
|
13,179 |
|
15,306 |
|
12,382 |
|
10,836 |
|
26,062 |
|
21,857 |
Not secured by real estate - commercial
business |
|
92,229 |
|
104,749 |
|
108,262 |
|
113,317 |
|
79,937 |
|
63,865 |
|
|
|
|
|
|
|
Closed construction loans with
unused available lines |
|
|
|
|
|
|
Secured by real estate (one-to four-family) |
|
26,470 |
|
31,221 |
|
29,757 |
|
20,919 |
|
10,047 |
|
14,242 |
Secured by real estate (not one-to
four-family) |
|
838,962 |
|
830,592 |
|
749,926 |
|
718,277 |
|
542,326 |
|
385,969 |
|
|
|
|
|
|
|
Loan Commitments not closed |
|
|
|
|
|
|
Secured by real estate (one-to four-family) |
|
30,226 |
|
47,040 |
|
37,144 |
|
23,340 |
|
15,884 |
|
13,411 |
Secured by real estate (not one-to
four-family) |
|
180,552 |
|
128,200 |
|
200,192 |
|
156,658 |
|
119,126 |
|
120,817 |
Not secured by real estate - commercial
business |
|
11,521 |
|
— |
|
12,995 |
|
4,870 |
|
7,022 |
|
— |
|
|
|
|
|
|
|
|
$ |
1,345,019 |
$ |
1,302,102 |
$ |
1,289,033 |
$ |
1,181,804 |
$ |
923,837 |
$ |
725,551 |
For further information about the Company’s loan portfolio,
please see the quarterly loan portfolio presentation available on
the Company’s Investor Relations website under
“Presentations.”
PROVISION FOR LOAN LOSSES AND ALLOWANCE FOR LOAN
LOSSES
Management records a provision for loan losses in an amount it
believes sufficient to result in an allowance for loan losses that
will cover current net charge-offs as well as risks believed to be
inherent in the loan portfolio of the Bank. The amount of provision
charged against current income is based on several factors,
including, but not limited to, past loss experience, current
portfolio mix, actual and potential losses identified in the loan
portfolio, economic conditions, and internal as well as external
reviews. The levels of non-performing assets, potential
problem loans, loan loss provisions and net charge-offs fluctuate
from period to period and are difficult to predict.
Weak economic conditions, higher inflation or interest rates, or
other factors may lead to increased losses in the portfolio and/or
requirements for an increase in loan loss provision expense.
Management maintains various controls in an attempt to limit future
losses, such as a watch list of possible problem loans, documented
loan administration policies and loan review staff to review the
quality and anticipated collectability of the portfolio. Additional
procedures provide for frequent management review of the loan
portfolio based on loan size, loan type, delinquencies, financial
analysis, on-going correspondence with borrowers and problem loan
work-outs. Management determines which loans are potentially
uncollectible, or represent a greater risk of loss, and makes
additional provisions to expense, if necessary, to maintain the
allowance at a satisfactory level.
The provision for loan losses for the quarter ended September
30, 2018, decreased $1.7 million to $1.3 million when compared with
the quarter ended September 30, 2017. At September 30, 2018
and December 31, 2017, the allowance for loan losses was $37.5
million and $36.5 million, respectively. Total net
charge-offs were $1.4 million and $3.2 million for the quarters
ended September 30, 2018 and 2017, respectively. During the
quarter ended September 30, 2018, $833,000 of the $1.4 million of
net charge-offs were in the consumer auto category. Total net
charge-offs were $4.2 million and $8.3 million for the nine months
ended September 30, 2018 and 2017, respectively. During the
nine months ended September 30, 2018, $2.8 million of the $4.2
million of net charge-offs were in the consumer auto
category. In response to a more challenging consumer credit
environment, the Company tightened its underwriting guidelines on
automobile lending in the latter part of 2016. Management
took this step in an effort to improve credit quality in the
portfolio and reduce delinquencies and charge-offs. This
action also reduced origination volume and, as such, the
outstanding balance of the Company's automobile loans declined
approximately $79 million in the nine months ended September 30,
2018. We expect further declines in the automobile loan
outstanding balance through the remainder of 2018. In
addition, two commercial loan relationships amounted to $444,000 of
the total charge-offs during the current quarter. Six
commercial loan relationships amounted to $1.3 million of the total
charge-offs during the nine months ended September 30, 2018.
Charge-offs were partially offset by recoveries on multiple loans
during the quarter. General market conditions and unique
circumstances related to individual borrowers and projects
contributed to the level of provisions and charge-offs. As
assets were categorized as potential problem loans, non-performing
loans or foreclosed assets, evaluations were made of the values of
these assets with corresponding charge-offs as appropriate.
In June 2017, the loss sharing agreements for Inter Savings Bank
were terminated. In April 2016, the loss sharing agreements
for Team Bank, Vantus Bank and Sun Security Bank were
terminated. Loans acquired from the FDIC related to Valley
Bank did not have a loss sharing agreement. All acquired
loans were grouped into pools based on common characteristics and
were recorded at their estimated fair values, which incorporated
estimated credit losses at the acquisition date. These loan
pools are systematically reviewed by the Company to determine the
risk of losses that may exceed those identified at the time of the
acquisition. Techniques used in determining risk of loss are
similar to those used to determine the risk of loss for the legacy
Great Southern Bank portfolio, with most focus being placed on
those loan pools which include the larger loan relationships and
those loan pools which exhibit higher risk characteristics.
Review of the acquired loan portfolio also includes review of
financial information, collateral valuations and customer
interaction to determine if additional reserves are warranted.
The Bank’s allowance for loan losses as a percentage of total
loans, excluding FDIC-acquired loans, was 1.00%, 1.01% and 1.02% at
September 30, 2018, December 31, 2017 and June 30, 2018,
respectively. Management considers the allowance for loan
losses adequate to cover losses inherent in the Bank’s loan
portfolio at September 30, 2018, based on recent reviews of the
Bank’s loan portfolio and current economic conditions. If economic
conditions were to deteriorate or management’s assessment of the
loan portfolio were to change, it is possible that additional loan
loss provisions would be required, thereby adversely affecting
future results of operations and financial condition.
ASSET QUALITY
Former TeamBank, Vantus Bank, Sun Security Bank, InterBank and
Valley Bank non-performing assets, including foreclosed assets and
potential problem loans, are not included in the totals or in the
discussion of non-performing loans, potential problem loans and
foreclosed assets below. These assets were initially recorded at
their estimated fair values as of their acquisition dates and are
accounted for in pools; therefore, these loan pools are analyzed
rather than the individual loans. The performance of the loan
pools acquired in each of the five transactions has been better
than expectations as of the acquisition dates.
As a result of changes in balances and composition of the loan
portfolio, changes in economic and market conditions and other
factors specific to a borrower’s circumstances, the level of
non-performing assets will fluctuate.
Non-performing assets, excluding all FDIC-assisted acquired
assets, at September 30, 2018 were $15.9 million, a decrease of
$11.9 million from $27.8 million at December 31, 2017 and a
decrease of $5.6 million from $21.5 million at June 30, 2018.
Non-performing assets, excluding all FDIC-assisted acquired
assets, as a percentage of total assets were 0.35% at September 30,
2018, compared to 0.63% at December 31, 2017 and 0.47% of total
assets at June 30, 2018.
Compared to December 31, 2017, non-performing loans decreased
$4.7 million to $6.5 million at September 30, 2018, and foreclosed
assets decreased $7.2 million to $9.4 million at September 30,
2018. Compared to June 30, 2018, non-performing loans
decreased $1.6 million and foreclosed assets decreased $4.0 million
at September 30, 2018. Non-performing one- to four-family
residential loans comprised $2.8 million, or 42.5%, of the total
$6.5 million of non-performing loans at September 30, 2018, an
increase of $160,000 from June 30, 2018. Non-performing
consumer loans comprised $1.8 million, or 27.6%, of the total
non-performing loans at September 30, 2018, a decrease of $451,000
from June 30, 2018. Non-performing commercial business loans
comprised $1.6 million, or 24.6%, of the total non-performing loans
at September 30, 2018, a decrease of $1.3 million from June 30,
2018. Non-performing commercial real estate loans comprised
$346,000, or 5.3%, of the total non-performing loans at September
30, 2018, a decrease of $6,000 from June 30, 2018.
Non-performing construction and land development loans decreased
$91,000 from June 30, 2018 to a balance of $-0- at September 30,
2018.
Compared to June 30, 2018, potential problem loans decreased
$5.4 million to $3.3 million at September 30, 2018. The
decrease during the quarter was due to $5.3 million in loans
removed from potential problem loans, $279,000 in payments, $12,000
in loans moved to non-performing loans and $1,000 in charge-offs,
partially offset by the addition of $126,000 of loans to potential
problem loans.
Activity in the non-performing loans category during the quarter
ended September 30, 2018, was as follows:
|
Beginning
Balance,
July 1 |
Additions to
Non-
Performing |
Removed
from Non-
Performing |
Transfers
to Potential
Problem
Loans |
Transfers to
Foreclosed
Assets and
Repossessions |
Charge-Offs |
Payments |
Ending
Balance,
September 30 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
One- to four-family
construction |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
Subdivision
construction |
|
91 |
|
— |
|
— |
|
— |
|
— |
|
(3) |
|
(88) |
|
— |
Land development |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Commercial
construction |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
One- to four-family
residential |
|
2,591 |
|
440 |
|
— |
|
— |
|
(231) |
|
— |
|
(49) |
|
2,751 |
Other residential |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Commercial real
estate |
|
352 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(6) |
|
346 |
Commercial
business |
|
2,852 |
|
164 |
|
— |
|
— |
|
— |
|
(249) |
|
(1,177) |
|
1,590 |
Consumer |
|
2,239 |
|
548 |
|
(7) |
|
(124) |
|
(121) |
|
(509) |
|
(238) |
|
1,788 |
|
|
|
|
|
|
|
|
|
Total |
$ |
8,125 |
$ |
1,152 |
$ |
(7) |
$ |
(124) |
$ |
(352) |
$ |
(761) |
$ |
(1,558) |
$ |
6,475 |
|
|
|
|
|
|
|
|
|
At September 30, 2018, the non-performing one- to four-family
residential category included 30 loans, five of which were added
during the current quarter. The largest relationship in this
category was added in 2017 and included nine loans totaling $1.3
million, or 47.4% of the total category, which are collateralized
by residential rental homes in the Springfield, Mo. area. The
non-performing commercial business category included six loans, one
of which was added during the current quarter. The largest
relationship in this category, which was added during the first
quarter of 2018, totaled $1.2 million, or 72.6% of the total
category. This relationship is collateralized by an
assignment of an interest in a real estate project. A
relationship in the commercial business category, which previously
totaled $900,000, received payments during the current quarter to
satisfy the remaining recorded balance. The non-performing
consumer category included 160 loans, 41 of which were added during
the current quarter, and the majority of which are indirect used
automobile loans.
Activity in the potential problem loans category during the
quarter ended September 30, 2018, was as follows:
|
Beginning
Balance,
July 1 |
Additions to Potential
Problem |
Removed
from
Potential
Problem |
Transfers to Non-
Performing |
Transfers to
Foreclosed
Assets and
Repossessions |
Charge-Offs |
Payments |
Ending
Balance,
September 30 |
|
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four-family construction |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
Subdivision construction |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Land development |
|
4 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
4 |
Commercial construction |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
One- to four-family residential |
|
1,218 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(164) |
|
1,054 |
Other residential |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Commercial real estate |
|
6,670 |
|
— |
|
(4,709) |
|
— |
|
— |
|
— |
|
(16) |
|
1,945 |
Commercial business |
|
68 |
|
— |
|
(59) |
|
— |
|
— |
|
— |
|
(9) |
|
— |
Consumer |
|
715 |
|
126 |
|
(488) |
|
(12) |
|
— |
|
(1) |
|
(90) |
|
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
8,675 |
$ |
126 |
$ |
(5,256) |
$ |
(12) |
$ |
— |
$ |
(1) |
$ |
(279) |
$ |
3,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September 30, 2018, the commercial real estate category of
potential problem loans included one loan, which was added during
the previous quarter, and is collateralized by a mixed use
commercial retail building. One relationship previously in this
category, which is made up of three loans totaling $4.7 million,
and is collateralized by theatre and retail property in Branson,
Mo., was removed from potential problem loans during the current
quarter. The borrower has been making timely principal and
interest payments on these loans and the debt service coverage on
the relationship has improved, which led to the Bank’s decision to
remove these loans from potential problem loans. The one- to
four-family residential category of potential problem loans
included 17 loans. The consumer category of potential problem loans
included 20 loans, 12 of which were added during the current
quarter.
Activity in foreclosed assets and repossessions during the
quarter ended September 30, 2018, excluding $1.8 million in
foreclosed assets related to loans acquired in FDIC-assisted
transactions and $1.6 million in properties which were not acquired
through foreclosure, was as follows:
|
Beginning
Balance,
July 1 |
Additions |
ORE and
Repossession
Sales |
Capitalized
Costs |
ORE and
Repossession
Write-Downs |
Ending
Balance, September 30 |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to four-family
construction |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
Subdivision
construction |
|
2,715 |
|
— |
|
(194) |
|
— |
|
(257) |
|
2,264 |
Land development |
|
5,068 |
|
20 |
|
(593) |
|
— |
|
— |
|
4,495 |
Commercial
construction |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
One- to four-family
residential |
|
622 |
|
212 |
|
(177) |
|
— |
|
— |
|
657 |
Other residential |
|
1,744 |
|
— |
|
(1,744) |
|
— |
|
— |
|
— |
Commercial real
estate |
|
1,745 |
|
— |
|
(703) |
|
10 |
|
(50) |
|
1,002 |
Commercial
business |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
Consumer |
|
1,470 |
|
1,617 |
|
(2,067) |
|
— |
|
— |
|
1,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
$ |
13,364 |
$ |
1,849 |
$ |
(5,478) |
$ |
10 |
$ |
(307) |
$ |
9,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Excluding the consumer category, during the three months ended
September 30, 2018, the Company reduced its foreclosed assets by
$3.4 million through asset sales. At September 30, 2018, the
land development category of foreclosed assets included 14
properties, the largest of which was located in the northwest
Arkansas area and had a balance of $1.1 million, or 23.5% of the
total category. Of the total dollar amount in the land
development category of foreclosed assets, 48.2% and 23.5% was
located in the Branson, Mo. and the northwest Arkansas areas,
respectively, including the largest property previously
mentioned. The subdivision construction category of
foreclosed assets included 10 properties, the largest of which was
located in the Springfield, Mo. metropolitan area and had a balance
of $799,000, or 35.3% of the total category. Of the total
dollar amount in the subdivision construction category of
foreclosed assets, 46.7% and 35.3% is located in Branson, Mo. and
Springfield, Mo., respectively, including the largest property
previously mentioned. The commercial real estate category of
foreclosed assets included two properties, the largest of which was
recreational property in the St. Louis area and had a balance of
$656,000, or 65.5% of the total category. Three properties in
the commercial real estate category had sales totaling $703,000
during the current quarter. The amount of additions and sales
under consumer loans are due to a higher volume of repossessions of
automobiles, which generally are subject to a shorter repossession
process. The Company experienced increased levels of
delinquencies and repossessions in indirect and used automobile
loans throughout 2016 and 2017. The level of delinquencies
and repossessions in indirect and used automobile loans has
decreased in 2018. The other residential category of
foreclosed assets had a zero balance at September 30, 2018.
The previously remaining property in the category, an apartment
building in central Missouri totaling $1.7 million, was sold during
the current quarter.
BUSINESS INITIATIVES
On July 20, 2018, the Company closed on the sale of four banking
centers in the Omaha, Neb., metropolitan market to Lincoln,
Neb.-based West Gate Bank. Pursuant to the purchase and assumption
agreement, the Bank sold branch deposits of approximately $56
million and sold substantially all branch-related real estate,
fixed assets and ATMs. The Company recorded pre-tax income, net of
expenses, of $7.25 million, or $0.39 (after tax) per diluted common
share. As a result of this transaction, the Company expects that
non-interest income will decrease $300,000–$350,000 annually,
non-interest expense will decrease by $1.1– $1.2 million annually,
and interest expense will increase by $400,000-$500,000 annually
(based on current interest rates for non-deposit funds). Great
Southern is maintaining a commercial loan production office in the
Omaha market and moved to a new office in July.
In November 2018, the Company expects to open a commercial loan
production office in Atlanta, Ga. Final regulatory approval for a
commercial loan production office in Denver, Colo., is also
expected during November 2018. Highly-experienced local commercial
lenders have been hired to manage each office. The Company also
operates commercial loan production offices in Chicago, Dallas,
Omaha, Neb., and Tulsa, Okla.
The Company will host a conference call on Thursday, October 18,
2018, at 2:00 p.m. Central Time (3:00 p.m. Eastern Time) to discuss
its third quarter 2018 preliminary earnings. Individuals interested
in listening to the conference call may dial 1.833.832.5121 and
enter the passcode 1038778. The call will be available live or in a
recorded version at the Company’s Investor Relations website,
http://investors.greatsouthernbank.com.
Headquartered in Springfield, Mo., Great Southern offers a broad
range of banking services to customers. The Company operates 99
retail banking centers and more than 200 ATMs in Missouri,
Arkansas, Iowa, Kansas, Minnesota and Nebraska and commercial
lending offices in Atlanta, Chicago, Dallas, Omaha, Neb., and
Tulsa, Okla. The common stock of Great Southern Bancorp, Inc. is
listed on the Nasdaq Global Select Market under the symbol
"GSBC."
www.GreatSouthernBank.com
Forward-Looking Statements
When used in this press release and in other documents filed or
furnished by the Company with the Securities and Exchange
Commission (the "SEC"), in the Company's press releases or other
public or stockholder communications, and in oral statements made
with the approval of an authorized executive officer, the words or
phrases "will likely result," "are expected to," "will continue,"
"is anticipated," "estimate," "project," "intends" or similar
expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements are subject to certain risks and
uncertainties, including, among other things, (i) the possibility
that the changes in non-interest income, non-interest expense and
interest expense actually resulting from the Bank's branch sale
transaction with West Gate Bank might be materially different from
estimated amounts; (ii) the possibility that the actual reduction
in the Company’s effective tax rate expected to result from H. R.
1, formerly known as the “Tax Cuts and Jobs Act” (the “Tax Reform
Legislation”) might be different from the reduction estimated by
the Company; (iii) expected revenues, cost savings, earnings
accretion, synergies and other benefits from the
Company's merger and acquisition activities might not be
realized within the anticipated time frames or at all, and costs or
difficulties relating to integration matters, including but not
limited to customer and employee retention, might be greater than
expected; (iv) changes in economic conditions, either nationally or
in the Company's market areas; (v) fluctuations in interest rates;
(vi) the risks of lending and investing activities, including
changes in the level and direction of loan delinquencies and
write-offs and changes in estimates of the adequacy of the
allowance for loan losses; (vii) the possibility of
other-than-temporary impairments of securities held in the
Company's securities portfolio; (viii) the Company's ability to
access cost-effective funding; (ix) fluctuations in real estate
values and both residential and commercial real estate market
conditions; (x) demand for loans and deposits in the Company's
market areas; (xi) the ability to adapt successfully to
technological changes to meet customers' needs and developments in
the marketplace; (xii) the possibility that security measures
implemented might not be sufficient to mitigate the risk of a cyber
attack or cyber theft, and that such security measures might not
protect against systems failures or interruptions; (xiii)
legislative or regulatory changes that adversely affect the
Company's business, including, without limitation, the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 and its
implementing regulations, the overdraft protection regulations and
customers' responses thereto and the Tax Reform Legislation; (xiv)
changes in accounting principles, policies or guidelines; (xv)
monetary and fiscal policies of the Federal Reserve Board and the
U.S. Government and other governmental initiatives affecting the
financial services industry; (xvi) results of examinations of the
Company and the Bank by their regulators, including the possibility
that the regulators may, among other things, require the Company to
limit its business activities, changes its business mix, increase
its allowance for loan losses, write-down assets or increase its
capital levels, or affect its ability to borrow funds or maintain
or increase deposits, which could adversely affect its liquidity
and earnings; (xvii) costs and effects of litigation, including
settlements and judgments; and (xviii) competition. The Company
wishes to advise readers that the factors listed above and other
risks described from time to time in documents filed or furnished
by the Company with the SEC could affect the Company's financial
performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements
expressed with respect to future periods in any current
statements.
The Company does not undertake-and specifically declines any
obligation- to publicly release the result of any revisions which
may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
The following tables set forth selected consolidated financial
information of the Company at the dates and for the periods
indicated. Financial data at all dates and for all periods is
unaudited. In the opinion of management, all adjustments,
which consist only of normal recurring accruals, necessary for a
fair presentation of the results at and for such unaudited dates
and periods have been included. The results of operations and
other data for the three and nine months ended September 30, 2018
and 2017, and the three months ended June 30, 2018, are not
necessarily indicative of the results of operations which may be
expected for any future period.
|
September 30, |
December
31, |
|
2018 |
2017 |
Selected Financial Condition
Data: |
(In thousands) |
|
|
|
Total assets |
$ |
4,584,086 |
$ |
4,414,521 |
Loans receivable, gross |
|
3,987,046 |
|
3,769,294 |
Allowance for loan losses |
|
37,497 |
|
36,492 |
Other real estate owned, net |
|
12,844 |
|
22,002 |
Available-for-sale securities, at fair value |
|
191,251 |
|
179,179 |
Deposits |
|
3,595,665 |
|
3,597,144 |
Total borrowings |
|
453,122 |
|
324,097 |
Total common stockholders’ equity |
|
508,127 |
|
471,662 |
Non-performing assets (excluding FDIC-assisted
transaction assets) |
|
15,913 |
|
27,830 |
|
Three Months Ended |
Nine Months Ended |
Three Months Ended |
|
September 30, |
September 30, |
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
Selected Operating Data: |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
Interest
income |
$ |
52,982 |
$ |
46,368 |
$ |
149,808 |
$ |
136,525 |
$ |
49,943 |
Interest
expense |
|
9,997 |
|
7,087 |
|
26,172 |
|
20,642 |
|
8,731 |
Net
interest income |
|
42,985 |
|
39,281 |
|
123,636 |
|
115,883 |
|
41,212 |
Provision
for loan losses |
|
1,300 |
|
2,950 |
|
5,200 |
|
7,150 |
|
1,950 |
Non-interest income |
|
14,604 |
|
7,655 |
|
28,998 |
|
31,151 |
|
7,459 |
Non-interest expense |
|
28,309 |
|
28,034 |
|
86,537 |
|
84,976 |
|
29,915 |
Provision
for income taxes |
|
5,464 |
|
4,289 |
|
11,076 |
|
15,550 |
|
2,967 |
Net
income and net income available to common shareholders |
$ |
22,516 |
$ |
11,663 |
$ |
49,821 |
$ |
39,358 |
$ |
13,839 |
|
|
|
|
|
|
|
At or For the Three
Months Ended |
At or For the Nine
Months Ended |
At or For the
Three Months Ended |
|
September 30, |
September 30, |
June 30, |
|
2018 |
2017 |
2018 |
2017 |
2018 |
Per Common Share: |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (fully diluted) |
$ |
1.57 |
|
$ |
0.82 |
|
$ |
3.49 |
|
$ |
2.77 |
|
$ |
0.97 |
|
Book
value |
$ |
35.90 |
|
$ |
32.90 |
|
$ |
35.90 |
|
$ |
32.90 |
|
$ |
34.69 |
|
|
|
|
|
|
|
Earnings Performance Ratios: |
|
|
|
|
|
Annualized return on average assets |
|
1.99 |
% |
|
1.05 |
% |
|
1.49 |
% |
|
1.18 |
% |
|
1.23 |
% |
Annualized return on average common stockholders’ equity |
|
17.80 |
% |
|
10.09 |
% |
|
13.51 |
% |
|
11.65 |
% |
|
11.32 |
% |
Net
interest margin |
|
4.02 |
% |
|
3.77 |
% |
|
3.96 |
% |
|
3.75 |
% |
|
3.94 |
% |
Average
interest rate spread |
|
3.76 |
% |
|
3.60 |
% |
|
3.74 |
% |
|
3.59 |
% |
|
3.72 |
% |
Efficiency ratio |
|
49.16 |
% |
|
59.73 |
% |
|
56.70 |
% |
|
57.79 |
% |
|
61.46 |
% |
Non-interest expense to average total assets |
|
2.50 |
% |
|
2.52 |
% |
|
2.58 |
% |
|
2.54 |
% |
|
2.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses to period-end loans (excluding covered/previously
covered loans) |
|
1.00 |
% |
|
0.99 |
% |
|
1.00 |
% |
|
0.99 |
% |
|
1.02 |
% |
Non-performing assets to period-end assets |
|
0.35 |
% |
|
0.73 |
% |
|
0.35 |
% |
|
0.73 |
% |
|
0.47 |
% |
Non-performing loans to period-end loans |
|
0.16 |
% |
|
0.25 |
% |
|
0.16 |
% |
|
0.25 |
% |
|
0.21 |
% |
Annualized net charge-offs to average loans |
|
0.14 |
% |
|
0.35 |
% |
|
0.14 |
% |
|
0.31 |
% |
|
0.07 |
% |
Great Southern Bancorp, Inc. and
Subsidiaries
|
Consolidated Statements of Financial
Condition
|
(In thousands, except number of
shares) |
|
|
September 30,
2018 |
December 31,
2017 |
June 30,
2018 |
Assets |
|
|
|
Cash |
$ |
99,044 |
$ |
115,600 |
$ |
107,554 |
Interest-bearing deposits in other financial institutions |
|
109,777 |
|
126,653 |
|
172,931 |
Cash and
cash equivalents |
|
208,821 |
|
242,253 |
|
280,485 |
|
|
|
|
Available-for-sale securities |
|
191,251 |
|
179,179 |
|
169,971 |
Held-to-maturity securities |
|
— |
|
130 |
|
— |
Mortgage
loans held for sale |
|
3,474 |
|
8,203 |
|
5,087 |
Loans
receivable (1), net of allowance for loan losses of $37,497 –
September 2018; $36,492 – December 2017; $37,556 – June 2018 |
|
3,942,766 |
|
3,726,302 |
|
3,859,801 |
Interest
receivable |
|
13,008 |
|
12,338 |
|
12,449 |
Prepaid
expenses and other assets |
|
41,116 |
|
47,122 |
|
40,937 |
Other
real estate owned and repossessions (2), net |
|
12,844 |
|
22,002 |
|
18,266 |
Premises
and equipment, net |
|
133,319 |
|
138,018 |
|
139,386 |
Goodwill
and other intangible assets |
|
9,613 |
|
10,850 |
|
10,025 |
Federal
Home Loan Bank stock |
|
14,918 |
|
11,182 |
|
15,678 |
Current
and deferred income taxes |
|
12,956 |
|
16,942 |
|
16,778 |
|
|
|
|
Total
Assets |
$ |
4,584,086 |
$ |
4,414,521 |
$ |
4,568,863 |
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
Liabilities |
|
|
|
Deposits |
$ |
3,595,665 |
$ |
3,597,144 |
$ |
3,597,057 |
Federal
Home Loan Bank advances |
|
240,000 |
|
127,500 |
|
259,000 |
Securities sold under reverse repurchase agreements with
customers |
|
112,184 |
|
80,531 |
|
95,543 |
Short-term borrowings |
|
1,360 |
|
16,604 |
|
1,360 |
Subordinated debentures issued to capital trust |
|
25,774 |
|
25,774 |
|
25,774 |
Subordinated notes |
|
73,804 |
|
73,688 |
|
73,766 |
Accrued
interest payable |
|
3,013 |
|
2,904 |
|
3,394 |
Advances
from borrowers for taxes and insurance |
|
8,858 |
|
5,319 |
|
7,957 |
Accounts
payable and accrued expenses |
|
15,301 |
|
13,395 |
|
14,741 |
Total
Liabilities |
|
4,075,959 |
|
3,942,859 |
|
4,078,592 |
|
|
|
|
Stockholders’ Equity |
|
|
|
Capital
stock |
|
|
|
Preferred
stock, $.01 par value; authorized 1,000,000 shares; issued and
outstanding September 2018, December 2017 and June 2018 – -0-
shares |
|
— |
|
— |
|
— |
Common
stock, $.01 par value; authorized 20,000,000 shares; issued and
outstanding September 2018 – 14,153,290 shares; December 2017 –
14,087,533 shares; June 2018 – 14,133,823 shares |
|
142 |
|
141 |
|
141 |
Additional paid-in capital |
|
29,553 |
|
28,203 |
|
29,134 |
Retained
earnings |
|
480,027 |
|
442,077 |
|
461,784 |
Accumulated other comprehensive gain (loss) |
|
(1,595) |
|
1,241 |
|
(788) |
Total
Stockholders’ Equity |
|
508,127 |
|
471,662 |
|
490,271 |
|
|
|
|
Total
Liabilities and Stockholders’ Equity |
$ |
4,584,086 |
$ |
4,414,521 |
$ |
4,568,863 |
(1) |
At
September 30, 2018, December 31, 2017 and June 30, 2018, includes
loans, net of discounts, totaling $177.1 million, $209.7 million
and $184.1 million, respectively, which were acquired in
FDIC-assisted transactions and are accounted for under ASC
310-30. |
(2) |
At
September 30, 2018, December 31, 2017 and June 30, 2018, includes
foreclosed assets, net of discounts, totaling $1.8 million, $3.8
million and $3.3 million, respectively, which were acquired in
FDIC-assisted transactions. In addition, at each of September
30, 2018, December 31, 2017 and June 30, 2018, includes $1.6
million of properties which were not acquired through foreclosure,
but are held for sale. |
Great Southern Bancorp, Inc. and
Subsidiaries |
Consolidated Statements of
Income |
(In thousands, except per share
data) |
|
Three Months Ended |
|
Nine Months Ended |
|
Three Months
Ended |
|
September 30, |
|
September 30, |
|
June 30, |
|
2018 |
2017 |
|
2018 |
2017 |
|
2018 |
Interest
Income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
51,063 |
$ |
44,824 |
|
$ |
144,447 |
$ |
131,734 |
|
$ |
48,219 |
Investment securities and other |
|
1,919 |
|
1,544 |
|
|
5,361 |
|
4,791 |
|
|
1,724 |
|
|
52,982 |
|
46,368 |
|
|
149,808 |
|
136,525 |
|
|
49,943 |
Interest
Expense |
|
|
|
|
|
|
|
Deposits |
|
7,352 |
|
5,131 |
|
|
19,058 |
|
15,100 |
|
|
6,123 |
Federal
Home Loan Bank advances |
|
1,192 |
|
546 |
|
|
2,964 |
|
1,045 |
|
|
1,166 |
Short-term borrowings and repurchase agreements |
|
177 |
|
118 |
|
|
385 |
|
662 |
|
|
180 |
Subordinated debentures issued to capital trust |
|
252 |
|
267 |
|
|
692 |
|
760 |
|
|
238 |
Subordinated notes |
|
1,024 |
|
1,025 |
|
|
3,073 |
|
3,075 |
|
|
1,024 |
|
|
9,997 |
|
7,087 |
|
|
26,172 |
|
20,642 |
|
|
8,731 |
|
|
|
|
|
|
|
|
Net Interest
Income |
|
42,985 |
|
39,281 |
|
|
123,636 |
|
115,883 |
|
|
41,212 |
Provision for
Loan Losses |
|
1,300 |
|
2,950 |
|
|
5,200 |
|
7,150 |
|
|
1,950 |
Net Interest
Income After Provision for Loan
Losses |
|
41,685 |
|
36,331 |
|
|
118,436 |
|
108,733 |
|
|
39,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Income |
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
|
309 |
|
279 |
|
|
868 |
|
851 |
|
|
312 |
Service
charges and ATM fees |
|
5,458 |
|
5,533 |
|
|
16,191 |
|
16,195 |
|
|
5,488 |
Net gains
on loan sales |
|
417 |
|
719 |
|
|
1,438 |
|
2,343 |
|
|
559 |
Late
charges and fees on loans |
|
466 |
|
436 |
|
|
1,240 |
|
1,922 |
|
|
385 |
Gain on
sales of securities |
|
2 |
|
— |
|
|
2 |
|
— |
|
|
— |
Gain
(loss) on derivative interest rate products |
|
5 |
|
8 |
|
|
53 |
|
(5) |
|
|
11 |
Accretion
of income related to business acquisitions |
|
|
|
— |
|
|
— |
|
7,218 |
|
|
|
Gain on
sale of business units |
|
7,414 |
|
— |
|
|
7,414 |
|
— |
|
|
— |
Other
income |
|
533 |
|
680 |
|
|
1,792 |
|
2,627 |
|
|
704 |
|
|
14,604 |
|
7,655 |
|
|
28,998 |
|
31,151 |
|
|
7,459 |
|
|
|
|
|
|
|
|
Noninterest
Expense |
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
15,162 |
|
14,664 |
|
|
44,731 |
|
44,495 |
|
|
14,947 |
Net
occupancy expense |
|
6,551 |
|
6,079 |
|
|
19,234 |
|
18,419 |
|
|
6,298 |
Postage |
|
843 |
|
845 |
|
|
2,544 |
|
2,651 |
|
|
834 |
Insurance |
|
682 |
|
755 |
|
|
2,002 |
|
2,300 |
|
|
650 |
Advertising |
|
589 |
|
587 |
|
|
1,892 |
|
1,656 |
|
|
632 |
Office
supplies and printing |
|
255 |
|
279 |
|
|
789 |
|
1,208 |
|
|
301 |
Telephone |
|
827 |
|
790 |
|
|
2,339 |
|
2,389 |
|
|
792 |
Legal,
audit and other professional fees |
|
875 |
|
610 |
|
|
2,373 |
|
1,991 |
|
|
689 |
Expense
on foreclosed assets and repossessions |
|
498 |
|
1,343 |
|
|
4,376 |
|
2,595 |
|
|
2,737 |
Partnership tax credit |
|
91 |
|
217 |
|
|
484 |
|
713 |
|
|
91 |
Acquired
deposit intangible asset amortization |
|
412 |
|
412 |
|
|
1,237 |
|
1,237 |
|
|
412 |
Other
operating expenses |
|
1,524 |
|
1,453 |
|
|
4,536 |
|
5,322 |
|
|
1,532 |
|
|
28,309 |
|
28,034 |
|
|
86,537 |
|
84,976 |
|
|
29,915 |
|
|
|
|
|
|
|
|
Income Before
Income Taxes |
|
27,980 |
|
15,952 |
|
|
60,897 |
|
54,908 |
|
|
16,806 |
Provision for
Income Taxes |
|
5,464 |
|
4,289 |
|
|
11,076 |
|
15,550 |
|
|
2,967 |
|
|
|
|
|
|
|
|
Net Income and
Net Income Available to Common Shareholders |
$ |
22,516 |
$ |
11,663 |
|
$ |
49,821 |
$ |
39,358 |
|
$ |
13,839 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Common Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.59 |
$ |
0.83 |
|
$ |
3.53 |
$ |
2.81 |
|
$ |
0.98 |
Diluted |
$ |
1.57 |
$ |
0.82 |
|
$ |
3.49 |
$ |
2.77 |
|
$ |
0.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
Declared Per Common Share |
$ |
0.32
|
$ |
0.24 |
|
$ |
0.88 |
$ |
0.70 |
|
$ |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the
total dollar amounts of interest income from average
interest-earning assets and the resulting yields, as well as the
interest expense on average interest-bearing liabilities, expressed
both in dollars and rates, and the net interest margin.
Average balances of loans receivable include the average balances
of non-accrual loans for each period. Interest income on
loans includes interest received on non-accrual loans on a cash
basis. Interest income on loans includes the amortization of
net loan fees, which were deferred in accordance with accounting
standards. Net fees included in interest income were $0.9
million and $0.6 million for the three months ended September 30,
2018 and 2017, respectively. Net fees included in interest
income were $2.5 million and $2.3 million for the nine months ended
September 30, 2018 and 2017, respectively. Tax-exempt income
was not calculated on a tax equivalent basis. The table does not
reflect any effect of income taxes.
|
September
30, 2018(1) |
Three Months Ended
September 30, 2018 |
Three Months Ended
September 30, 2017 |
|
|
Average
|
|
Yield/
|
Average
|
|
Yield/
|
|
Yield/Rate
|
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|
(Dollars in thousands) |
|
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable: |
|
|
|
|
|
|
|
One- to four-family residential |
4.17% |
$
453,090 |
$
5,939 |
5.20% |
$
450,286 |
$
5,261 |
4.64% |
Other residential |
4.97 |
782,595 |
10,163 |
5.15 |
708,745 |
8,135 |
4.55 |
Commercial real estate |
4.78 |
1,330,088 |
16,427 |
4.90 |
1,249,120 |
13,868 |
4.40 |
Construction |
5.11 |
593,540 |
8,272 |
5.53 |
483,592 |
5,769 |
4.73 |
Commercial business |
5.05 |
291,038 |
3,689 |
5.03 |
299,833 |
3,780 |
5.00 |
Other loans |
5.99 |
485,647 |
6,283 |
5.13 |
615,604 |
7,637 |
4.92 |
Industrial revenue bonds |
4.77 |
19,829 |
290 |
5.80 |
25,424 |
374 |
5.83 |
|
|
|
|
|
|
|
|
Total loans receivable |
5.03 |
3,955,827 |
51,063 |
5.12 |
3,832,604 |
44,824 |
4.64 |
|
|
|
|
|
|
|
|
Investment securities |
3.24 |
193,390 |
1,425 |
2.92 |
204,652 |
1,214 |
2.35 |
Other interest-earning assets |
2.24 |
97,739 |
494 |
2.01 |
93,777 |
330 |
1.40 |
|
|
|
|
|
|
|
|
Total interest-earning assets |
4.88 |
4,246,956 |
52,982 |
4.95 |
4,131,033 |
46,368 |
4.45 |
Non-interest-earning assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
97,033 |
|
|
108,953 |
|
|
Other non-earning assets |
|
186,994 |
|
|
207,122 |
|
|
Total assets |
|
$
4,530,983 |
|
|
$
4,447,108 |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Interest-bearing demand and savings |
0.43 |
$
1,506,907 |
1,523 |
0.40 |
$
1,529,811 |
1,185 |
0.31 |
Time deposits |
1.77 |
1,376,907 |
5,829 |
1.68 |
1,371,147 |
3,946 |
1.14 |
Total deposits |
1.08 |
2,883,814 |
7,352 |
1.01 |
2,900,958 |
5,131 |
0.70 |
Short-term borrowings and repurchase
agreements |
0.01 |
141,864 |
177 |
0.49 |
147,126 |
118 |
0.32 |
Subordinated debentures issued to
capital trust |
3.94 |
25,774 |
252 |
3.88 |
25,774 |
267 |
4.11 |
Subordinated notes |
5.55 |
73,791 |
1,024 |
5.51 |
73,636 |
1,025 |
5.52 |
FHLB advances |
2.18 |
216,674 |
1,192 |
2.18 |
171,728 |
546 |
1.26 |
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
1.24 |
3,341,917 |
9,997 |
1.19 |
3,319,222 |
7,087 |
0.85 |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand deposits |
|
660,629 |
|
|
637,156 |
|
|
Other liabilities |
|
22,428 |
|
|
28,355 |
|
|
Total liabilities |
|
4,024,974 |
|
|
3,984,733 |
|
|
Stockholders’ equity |
|
506,009 |
|
|
462,375 |
|
|
Total liabilities and stockholders’ equity |
|
$
4,530,983 |
|
|
$
4,447,108 |
|
|
|
|
|
|
|
|
|
|
Net interest income: |
|
|
|
|
|
|
|
Interest rate spread |
3.64% |
|
$ 42,985 |
3.76% |
|
$ 39,281 |
3.60% |
Net interest margin* |
|
|
|
4.02% |
|
|
3.77% |
Average interest-earning assets to average interest-bearing
liabilities |
|
127.1% |
|
|
124.5% |
|
|
______________
*Defined as the Company’s net interest income divided by average
total interest-earning assets.
(1) |
The yield
on loans at September 30, 2018, does not include the impact of the
adjustments to the accretable yield (income) on loans acquired in
the FDIC-assisted transactions. See “Net Interest Income” for
a discussion of the effect on results of operations for the three
months ended September 30, 2018. |
|
September
30, 2018(1) |
Nine Months Ended
September 30, 2018 |
Nine Months Ended
September 30, 2017 |
|
|
Average |
|
Yield/ |
Average |
|
Yield/ |
|
Yield/Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
|
|
|
Loans receivable: |
|
|
|
|
|
|
|
One- to four-family residential |
4.17% |
$ 440,769 |
$ 16,544 |
5.02% |
$ 465,125 |
$ 16,885 |
4.85% |
Other residential |
4.97 |
755,536 |
28,349 |
5.02 |
692,979 |
23,377 |
4.51 |
Commercial real estate |
4.78 |
1,302,940 |
46,753 |
4.80 |
1,237,979 |
40,954 |
4.42 |
Construction |
5.11 |
555,708 |
22,007 |
5.29 |
436,259 |
14,902 |
4.57 |
Commercial business |
5.05 |
288,579 |
10,592 |
4.91 |
295,955 |
11,160 |
5.04 |
Other loans |
5.99 |
511,735 |
19,170 |
5.01 |
652,095 |
23,296 |
4.78 |
Industrial revenue bonds |
4.77 |
22,056 |
1,032 |
6.25 |
26,304 |
1,160 |
5.90 |
|
|
|
|
|
|
|
|
Total loans receivable |
5.03 |
3,877,323 |
144,447 |
4.98 |
3,806,696 |
131,734 |
4.63 |
|
|
|
|
|
|
|
|
Investment securities |
3.24 |
189,686 |
4,026 |
2.84 |
212,262 |
3,957 |
2.49 |
Other interest-earning assets |
2.24 |
105,831 |
1,335 |
1.69 |
117,678 |
834 |
0.95 |
|
|
|
|
|
|
|
|
Total interest-earning assets |
4.88 |
4,172,840 |
149,808 |
4.80 |
4,136,636 |
136,525 |
4.41 |
Non-interest-earning assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
98,879 |
|
|
108,303 |
|
|
Other non-earning assets |
|
194,441 |
|
|
216,409 |
|
|
Total assets |
|
$
4,466,160 |
|
|
$ 4,461,348 |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings |
0.43 |
$
1,548,273 |
4,268 |
0.37 |
$ 1,551,316 |
3,417 |
0.29 |
Time deposits |
1.77 |
1,331,098 |
14,790 |
1.49 |
1,426,041 |
11,683 |
1.10 |
Total deposits |
1.08 |
2,879,371 |
19,058 |
0.88 |
2,977,357 |
15,100 |
0.68 |
Short-term borrowings and repurchase
agreements |
0.01 |
127,696 |
385 |
0.40 |
206,100 |
662 |
0.43 |
Subordinated debentures issued to
capital trust |
3.94 |
25,774 |
692 |
3.59 |
25,774 |
760 |
3.94 |
Subordinated notes |
5.55 |
73,752 |
3,073 |
5.57 |
73,594 |
3,075 |
5.59 |
FHLB advances |
2.18 |
198,778 |
2,964 |
1.99 |
78,362 |
1,045 |
1.78 |
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
1.24 |
3,305,371 |
26,172 |
1.06 |
3,361,187 |
20,642 |
0.82 |
Non-interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand deposits |
|
648,257 |
|
|
622,352 |
|
|
Other liabilities |
|
20,678 |
|
|
27,264 |
|
|
Total liabilities |
|
3,974,306 |
|
|
4,010,803 |
|
|
Stockholders’ equity |
|
491,854 |
|
|
450,545 |
|
|
Total liabilities and stockholders’ equity |
|
$
4,466,160 |
|
|
$ 4,461,348 |
|
|
|
|
|
|
|
|
|
|
Net interest income: |
|
|
|
|
|
|
|
Interest rate spread |
3.64% |
|
$ 123,636 |
3.74% |
|
$ 115,883 |
3.59% |
Net interest margin* |
|
|
|
3.96% |
|
|
3.75% |
Average interest-earning assets to average interest-bearing
liabilities |
|
126.2% |
|
|
123.1% |
|
|
______________
*Defined as the Company’s net interest income divided by average
total interest-earning assets.
(1) |
The yield
on loans at September 30, 2018, does not include the impact of the
adjustments to the accretable yield (income) on loans acquired in
the FDIC-assisted transactions. See “Net Interest Income” for
a discussion of the effect on results of operations for the nine
months ended September 30, 2018. |
NON-GAAP FINANCIAL MEASURES
This document contains certain financial information determined
by methods other than in accordance with accounting principles
generally accepted in the United States (“GAAP”). These non-GAAP
financial measures include core net interest income, core net
interest margin and the tangible common equity to tangible assets
ratio.
We calculate core net interest income and core net interest
margin by subtracting the impact of adjustments regarding changes
in expected cash flows related to pools of loans we acquired
through FDIC-assisted transactions from reported net interest
income and net interest margin. Management believes that core net
interest income and core net interest margin are useful in
assessing the Company’s core performance and trends, in light of
the fluctuations that can occur related to updated estimates of the
fair values of the loan pools acquired in the 2009, 2011, 2012 and
2014 FDIC-assisted transactions.
In calculating the ratio of tangible common equity to tangible
assets, we subtract period-end intangible assets from common equity
and from total assets. Management believes that the
presentation of this measure excluding the impact of intangible
assets provides useful supplemental information that is helpful in
understanding our financial condition and results of operations, as
it provides a method to assess management’s success in utilizing
our tangible capital as well as our capital strength.
Management also believes that providing a measure that excludes
balances of intangible assets, which are subjective components of
valuation, facilitates the comparison of our performance with the
performance of our peers. In addition, management believes
that this is a standard financial measure used in the banking
industry to evaluate performance.
These non-GAAP financial measures are supplemental and are not a
substitute for any analysis based on GAAP financial measures.
Because not all companies use the same calculation of non-GAAP
measures, this presentation may not be comparable to other
similarly titled measures as calculated by other companies.
Non-GAAP Reconciliation: Core Net Interest Income
and Core Net Interest Margin
|
Three Months Ended |
Nine Months Ended |
|
September 30, |
September 30, |
|
2018 |
2017 |
2018 |
2017 |
|
(Dollars in thousands) |
(Dollars in thousands) |
Reported net interest
income / margin |
$ |
42,985 |
4.02 |
% |
$ |
39,281 |
3.77 |
% |
$ |
123,636 |
3.96 |
% |
$ |
115,883 |
3.75 |
% |
Less: Impact of
loss share adjustments |
|
1,424 |
0.14 |
|
|
975 |
0.09 |
|
|
3,652 |
0.12 |
|
|
4,237 |
0.14 |
|
Core net interest
income / margin |
$ |
41,561 |
3.88 |
% |
$ |
38,306 |
3.68 |
% |
$ |
119,984 |
3.84 |
% |
$ |
111,646 |
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation: Ratio of Tangible Common
Equity to Tangible
Assets
|
September 30, |
December 31, |
|
2018 |
2017 |
|
(Dollars in thousands) |
Common equity at period
end |
$ |
508,127 |
|
$ |
471,662 |
|
Less: Intangible
assets at period end |
|
9,613 |
|
|
10,850 |
|
Tangible common equity
at period end (a) |
$ |
498,514 |
|
$ |
460,812 |
|
|
|
|
Total assets at period
end |
$ |
4,584,086 |
|
$ |
4,414,521 |
|
Less: Intangible
assets at period end |
|
9,613 |
|
|
10,850 |
|
Tangible assets at
period end (b) |
$ |
4,574,473 |
|
$ |
4,403,671 |
|
|
|
|
Tangible common equity
to tangible assets (a) / (b) |
|
10.90 |
% |
|
10.46 |
% |
CONTACT: Kelly Polonus, Great Southern, (417) 895-5242
kpolonus@greatsouthernbank.com
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