Business
Great Southern Bancorp, Inc. Reports Preliminary First Quarter Earnings of $1.04 Per Diluted Common Share
Preliminary Financial Results and Other Matters for the Quarter Ended March 31, 2020: Significant Unusual Income or Expense Items: During the three months
About this update from Great Southern Bancorp, Inc.
[{"type":"text","content":"Preliminary Financial Results and Other Matters for the Quarter Ended March 31, 2020:\n Significant Unusual Income or Expense Items: During the three months ended March 31, 2020, Great Southern Bancorp, Inc. (the Company) recognized the following items:• On March 2, 2020, the Company and its swap counterparty mutually agreed to terminate the Company’s $400 million notional interest rate swap, effective immediately. The Company received a payment of $45.9 million, including accrued but unpaid interest, from its swap counterparty as a result of this termination. This $45.9 million, less the accrued interest portion and net of deferred income taxes, is reflected in the Company’s stockholders’ equity as Accumulated Other Comprehensive Income and a portion of it will be accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025.• The Company recorded an increase in Salaries and Employee Benefits expense totaling $1.1 million related to a special employee bonus paid by the Company to all current full-time and part-time employees in response to the COVID-19 pandemic. While we have not terminated any employees or reduced pay for any employees as a result of the COVID-19 pandemic, it has caused disruption to our Company and our employees and their families.• In response to the COVID-19 pandemic, the Company committed to making charitable contributions up to $300,000 to various organizations that assist the communities the Company serves. During the three months ended March 31, 2020, the Company disbursed $234,000 of these contributions, and an expense in that amount was included in Other Operating Expenses in the Company’s Consolidated Statements of Income. The remaining $66,000 in contributions were determined and disbursed in April 2020.• The Company recorded other COVID-19-related expenses totaling approximately $103,000 for various items such as cleaning services, supplies, equipment, costs to set up remote work sites and other items.• In the first quarter of 2020, pursuant to the recently-enacted Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and guidance from the Securities and Exchange Commission (SEC) and Financial Accounting Standards Board (FASB), we elected to delay adoption of the new accounting standard (CECL) related to accounting for credit losses. Our ...