Business
Great Southern Bancorp, Inc. Reports Preliminary Fourth Quarter and Annual Earnings of $1.84 and $6.02 Per Diluted Common Share
Preliminary Financial Results and Other Matters for the Quarter and Year Ended December 31, 2022: Significant Income and Expense Items: During the three
About this update from Great Southern Bancorp, Inc.
[{"type":"text","content":"Preliminary Financial Results and Other Matters for the Quarter and Year Ended December 31, 2022: Significant Income and Expense Items: During the three months ended December 31, 2022, the Company recorded the following significant items: (1) The Company recorded an expense in Legal and Professional Fees totaling $1.4 million related to training and implementation costs for its upcoming core systems conversion and professional fees to consultants that were engaged to support the Company in its transition of core and ancillary software and information technology systems. Expenses of this type are expected to total approximately $1.1-1.3 million per quarter through the systems conversion date, which is scheduled for the third quarter of 2023.(2) The Company recorded a Loss on Sale of Investments totaling $168,000 related to the sale of certain available-for-sale investment securities.(3) Upon filing its 2021 federal and various state income tax returns in the fourth quarter of 2022, the Company updated its combined tax rate applied to deferred tax items and also made adjustments to its current income taxes receivable/payable balances as a result of carryback claims. These adjustments to current and deferred taxes resulted in a reduction in income tax expense of $1.1 million in the fourth quarter of 2022.Provision (Credit) for Losses on Loans and Unfunded Commitments: Provision (credit) for losses on loans and unfunded commitments were significantly different in the three months ended December 31, 2022 versus the three months ended December 31, 2021. The Company recorded a total provision expense of $841,000 in the 2022 period versus a total credit (negative expense) of $1.7 million in the 2021 period. The increased provision in the 2022 period served to build credit loss reserves as loan balances grew, even though net charge-offs remained very low.Total Loans: Total outstanding loans, excluding mortgage loans held for sale, increased $499.3 million, or 12.5%, from $4.01 billion at December 31, 2021 to $4.51 billion at December 31, 2022. This increase was primarily in one- to four-family residential loans, construction loans, other residential (multi-family) loans, and commercial real estate loans.Asset Quality: Non-performing assets and potential problem loans totaled $5.3 million at December 31, 2022, a decrease of $2.7 million f...