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Jun 30, 2024

Great Southern Q2 2024 Earnings Report

Reported preliminary earnings with improved results excluding non-recurring items.

Key Takeaways

Great Southern Bancorp reported preliminary earnings for the second quarter of 2024 of $1.45 per diluted common share, with a net income of $17.0 million. The results reflected improved earnings compared to the first quarter of 2024, both on a reported basis and excluding certain significant or non-recurring items, in a challenging economic environment.

Earnings per diluted common share were $1.45 ($17.0 million net income) for Q2 2024, compared to $1.52 per diluted common share ($18.3 million net income) for Q2 2023.

Excluding significant or non-recurring items, earnings per diluted common share increased by $0.08 for Q2 2024.

Net interest income in Q2 2024 was $46.8 million, a decrease of $1.3 million compared to Q2 2023.

Total outstanding loan balances have increased about $44 million since the end of 2023.

Total Revenue
$46.8M
Previous year: $48.1M
-2.7%
EPS
$1.45
Previous year: $1.52
-4.6%
Net Interest Margin
3.43%
Previous year: 3.56%
-3.7%
Return on Avg Assets
1.17%
Previous year: 1.28%
-8.6%
Return on Avg Equity
12.03%
Cash and Equivalents
$186M
Previous year: $204M
-8.6%
Free Cash Flow
$42M
Previous year: $30.9M
+35.9%
Total Assets
$5.96B
Previous year: $5.72B
+4.2%

Great Southern

Great Southern

Forward Guidance

The Company currently expects its effective tax rate (combined federal and state) will be approximately 18.5% to 20.0% in future periods, primarily due to additional investment tax credits utilized beginning in 2024.

Positive Outlook

  • Effective tax rate is expected to remain below the statutory federal tax rate.
  • Additional investment tax credits will be utilized beginning in 2024.
  • Capital and liquidity positions remain strong.
  • Strong credit quality metrics were maintained during the quarter.
  • Deposit base remained diverse.

Challenges Ahead

  • Challenging economic environment.
  • Modest increases in overall funding costs.
  • Continued significant competition for deposits.
  • Lower loan origination volume.
  • Total non-interest expense compared to the year ago second quarter increased about 3.5%.