SPRINGFIELD, Mo., April 16, 2025 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, has announced its preliminary earnings for the first quarter of 2025, revealing impressive growth. For the period that ended on March 31, 2025, the company reported earnings of $1.47 per diluted common share, translating to a net income of $17.2 million. This marks a significant increase from the $1.13 per diluted common share, or $13.4 million net income, reported for the same quarter last year.

The financial highlights for the quarter include an annualized return on average common equity of 11.30%, an increase in the annualized return on average assets to 1.15%, and an annualized net interest margin of 3.57%. These figures reflect a substantial improvement when compared to the previous years quarter, which recorded a return on average common equity of 9.36%, a return on average assets of 0.93%, and a net interest margin of 3.32%.

Financial Performance Details

In the first quarter of 2025, Great Southern Bancorp experienced a robust increase in net interest income, which rose by $4.5 million, or approximately 10.1%, to reach $49.3 million. The driving factors behind this growth were enhanced interest income from loans combined with a reduction in interest expenses on deposit accounts. This quarterly performance indicates a favorable trajectory for the company, with the annualized net interest margin rising to 3.57% compared to 3.32% during the same quarter in the previous year and 3.49% in the fourth quarter of 2024. Notably, an additional interest income of $744,000 was recorded due to recoveries on cash-basis loans and other assets, which positively impacted both net interest income and net interest margin.

Asset Quality and Non-Performing Loans

Moving beyond income, asset quality metrics remain a point of focus. As of March 31, 2025, the non-performing assets, including potential problem loans, totaled $17.0 million, marking an increase of $342,000 from $16.6 million at the end of 2024. However, non-performing assets specifically were reported at $9.5 million, a slight decrease from $9.6 million at the end of 2024, which corresponds to 0.16% of total assets.

Liquidity and Capital Position

The companys liquidity remains strong, with secured borrowing line availability at the Federal Home Loan Bank (FHLBank) and the Federal Reserve Bank amounting to $1.17 billion and $370.5 million, respectively, as of March 31, 2025. Additionally, Great Southern held unpledged securities with a total market value of $337.4 million, available as collateral for further borrowing if necessary.

Great Southern Bancorp also reported a solid capital position, exceeding the regulatory thresholds. The preliminary capital ratios as of March 31, 2025, include a Tier 1 Leverage Ratio of 11.3%, a Common Equity Tier 1 Capital Ratio of 12.4%, and a Total Capital Ratio of 15.6%. The tangible common equity to tangible assets ratio stood at 10.1%, reinforcing the companys financial stability.

Stock Buyback and Marketing Expenses

During the quarter, Great Southern received a reimbursement of $433,000 from its debit card brand provider for annual marketing and card expenses, which helped offset associated marketing costs. In terms of corporate actions, the Board of Directors approved a new stock repurchase program in April 2025, allowing for the buyback of up to one million additional shares of stock, succeeding the prior program which still had approximately 270,000 shares remaining as of March 31, 2025.

Management Commentary

Joseph W. Turner, President and CEO of Great Southern Bancorp, expressed optimism about the results, emphasizing the strategic strength of the company amidst ongoing economic and financial sector challenges. He remarked on the impressive growth in net income, credit quality, and disciplined expense management as key contributors to their success this quarter. Turner stated, Our core banking fundamentals remain sound, with quarterly profitability strengthened by higher interest income, disciplined expense management, and favorable contributions from interest income recoveries and an expense reimbursement.

Looking Ahead

As the company looks toward the future, Turner reiterated a commitment to managing costs tightly, safeguarding credit quality, and optimizing the funding mix to ensure long-term financial stability. Great Southern Bancorp also plans to continue providing value to its shareholders through dividends and share repurchases.

Upcoming Events

The company will host its 2025 Annual Meeting of Stockholders at 10 a.m. Central Time on May 7, 2025, in a virtual format. Stockholders can attend via a live webcast. The company is also set to hold a conference call on Thursday, April 17, 2025, at 2:00 p.m. Central Time to discuss the preliminary earnings.