Business
Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.46 Per Diluted Common Share
Preliminary Financial Results and Other Matters for the Quarter and Nine Months Ended September 30, 2022: Significant Income and Expense Items: During the
About this update from Great Southern Bancorp, Inc.
[{"type":"text","content":"Preliminary Financial Results and Other Matters for the Quarter and Nine Months Ended September 30, 2022: Significant Income and Expense Items: During the three months ended September 30, 2022, the Company recorded the following significant and non-recurring items: (1) The Company recorded an expense in Legal and Professional Fees totaling $1.1 million related to training and implementation costs for the 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 $1.0-1.2 million per quarter and will continue to be incurred through the systems conversion date, which is scheduled for the third quarter of 2023.(2) The Company recorded an expense in Legal and Professional Fees totaling $372,000 in one-time fees related to interest rate swaps initiated in July 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 September 30, 2022 versus the three months ended September 30, 2021. The Company recorded a total provision expense of $3.3 million in the 2022 period versus a total credit (negative expense) of $2.4 million in the 2021 period. This was the most significant contributor to lower pre-tax income and net income in the 2022 period compared to the 2021 period. The Company’s pre-tax, pre-provision net income was $26.1 million in the 2022 period versus $23.4 million in the 2021 period. The increased provision in the 2022 period served to build credit loss reserves as net charge-offs remained very low.Total Loans: Total outstanding loans, excluding mortgage loans held for sale, increased $489.6 million, or 12.2%, from $4.01 billion at December 31, 2021 to $4.50 billion at September 30, 2022. This increase was primarily in other residential (multi-family) loans, one- to four-family residential loans and commercial real estate loans, partially offset by a decrease in construction loans.Asset Quality: Non-performing assets and potential problem loans totaled $5.2 million at September 30, 2022, a decrease of $2.8 million from $8.0 million at December 31, 2021. At September 30, 2022, non-performing assets were $3.4...