Great Southern Bancorp, Inc. · NASDAQ:GSBC
Great Southern Bancorp — IPO Roadshow (August 2016)
32 slides from Great Southern Bancorp's IPO roadshow presentation, Aug 8, 2016
Slide 1: Great Southern Bancorp, Inc. Investor Presentation
a GREAT SOUTHERN BANCORP, INC. INVESTOR PRESENTATION AUGUST | 20186
Slide 2: Offering Disclosure
Offering Disclosure 2 This presentation has been prepared by Great Southern Bancorp, Inc . (“Great Southern” or the “Company”) solely for informational purposes based on information regarding its operations, as well as information from public sources . This presentation has been prepared to assist i
Slide 3: Terms of Proposed Offering
Terms of Proposed Offering 3 Issuer Security Size Rating Covenants Use of Proceeds Great Southern Bancorp, Inc. (NASDAQ: GSBC) Fixed to Floating Rate Subordinated Notes $50.0 million BBB - by Kroll Bond Rating Agency Consistent with regulatory requirements for Tier 2 Capital Improve regulatory capit
Slide 4: Proven Leadership Team
Proven Leadership Team 4 Strategy / Financial Operations / Infrastructure/ Technology Lending / Credit Administration ▪ Joined Great Southern Bank in 1991 and became an officer in 1995 ▪ Became director of Great Southern Bank in 1997 ▪ Has over 20 years of experience in an officer role at Great Sout
Slide 5: Great Southern Snapshot
▪ Great Southern Bank was founded in 1923, with a $5,000 investment, four employees and 936 customers ▪ Headquartered in Springfield, Mo., Great Southern offers a broad range of banking services to customers ▪ Strong and experienced management team ▪ 106 banking offices strategically located in six
Slide 6: Ownership Profile
Ownership Profile 6 Institutional 34.9% Insider 23.7% Mutual Fund 17.3% Other 24.1% 13.9mm Shares Out . Current Position Shares As % of Insider Ownership Owned Shares Out. 1Turner Family (various holders) 2,119,010 15.25 2Earl A. Steinert Jr. 933,596 6.72 3Larry D. Frazier 91,800 0.66 4Steven G. Mit
Slide 7: Banking Center Network
Banking Center Network 7 11 banking centers / offices 19 banking centers 4 banking centers 65 banking centers / offices 5 banking centers Commercial lending office Commercial lending office In last three years: ▪ Consolidated 29 banking centers - 22 in Missouri, six in Iowa, and one in Kansas ▪ Sold
Slide 8: Financial Performance: Consistent Growth
$150 $200 $250 $300 $350 $400 $450 Financial Performance: Consistent Growth 8 Total Assets Total Loans Tangible Common Equity¹ $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 1) See appendix for r econciliation of tangible common equity (page 32) $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,
Slide 9: Growth Through Strategic Acquisitions
Significant Acquisitions Growth Through S trategic A cquisitions 9 Acquired Deposit Acquisition Loans Deposits Number Premium Target Date County State ($mm) ($mm) of Branches (%) Valley Bank 6/20/2014 Scott IA 193.2 365.6 13 – InterBank 4/27/2012 Hennepin MN 393.3 454.3 4 – Sun Security Bank 10/7/20
Slide 10: Acquisition of Fifth Third Bank Branches
Acquisition of Fifth Third Bank Branches 10 Overview ▪ Completed January 29, 2016 ▪ 12 branches ▪ 12,000 households ▪ Approx. $158.9 million in loans ▪ Approx. $228.3 million in deposits Financially attractive Strategic value ▪ Accretive immediately, fully realized starting in second quarter 2016 ▪
Slide 11: Financial Performance: Profitability
54.17% 56.98% 51.44% 64.05% 66.30% 62.85% 63.47% 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2Q2016 YTD $23.9 $30.3 $48.7 $33.7 $43.5 $46.5 $22.3 – $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2Q2016 YTD Net Income ($mm) Financial Performance: Profitability 11 Efficiency Ratio ROA
Slide 12: Capital Ratios and Balances
– $100 $200 $300 $400 $500 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2Q2016 $ in millions – $100 $200 $300 $400 $500 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2Q2016 $ in millions Capital Ratios and Balances 12 Consolidated Bank June 30, 2016 Tier 1 Common Ratio 10.18% Tier 1 Ratio 10.81% Total Risk-Based Ratio
Slide 13: Pro Forma Capitalization
Pro Forma Capitalization 13 1) See appendix for reconciliation of tangible common equity to tangible assets (page 32) Note: Assumes $50 million subordinated debt issuance, a 1.50% underwriting fee, $500 thousand other offering expenses, and 20 % r isk weighting on net proceeds ($ in thousands) Sub D
Slide 14: Diversified Legacy Loan Portfolio
Diversified Legacy Loan Portfolio¹ 14 By Loan Type By Region Note: Data as of June 30, 2016 1) Loans other than those acquired in FDIC - assisted transactions 2) Includes Home Equity Loans of $102.7 million $3.4B $3.4B Consumer² 20% Single Family Real Estate 11% Multifamily Real Estate 15% Commercia
Slide 15: Loan Composition Trends
Loan Composition Trends 15 1) Includes undisbursed portion of loans in process and deferred loan fees and gain, net 19% 17% 16% 15% 14% 17% 15% 13% 12% 12% 11% 10% 9% 8% 9% 10% 10% 10% 11% 11% 13% 14% 14% 14% 15% 16% 16% 16% 13% 13% 13% 13% 13% 12% 12% 12% 12% 12% 12% 10% 10% 9% 11% 12% 12% 12% 13%
Slide 16: CRE Overview
CRE Overview 16 Retail 33% Office Buildings 18% Healthcare 13% Industrial 12% Motel/Hotels 8% Other 16% Portfolio Characteristics June 30, 2016 % Total Portfolio 33% 10 Largest Loan Relationships / CRE Portfolio 15% 10 Largest Loan Relationships / Total Loans 5% Weighted Average Maturity 3.6 years W
Slide 17: Multifamily Overview
Springfield MSA 9% St. Louis MSA 13% Minnesota MSA 9% Other Missouri 5% Iowa/ Nebraska/ South Dakota 7% Arkansas 6% Oklahoma 12% Texas 13% Kansas City MSA 2% Other Kansas 5% Other 19% Multifamily Overview 17 $501M Portfolio Characteristics June 30, 2016 % Total Portfolio 15% 10 Largest Loan Relation
Slide 18: C&D Overview
Apartment 46% Retail 21% Commercial & Residential Land Dev. 16% Other CRE Under Construction 9% SFR Under Construction 4% Other 4% C&D Overview 18 $368M Portfolio Characteristics June 30, 2016 % Total Portfolio 11% 10 Largest Loan Relationships / C&D Portfolio 59% 10 Largest Loan Relationships / Tot
Slide 19: Auto Overview
Fayetteville 9% Arkansas Other 9% Oklahoma 1% Springfield 16% St. Louis 7% Kansas City 4% Missouri Southeast 16% Missouris NE/NW 1% Missouri Central 5% Missouri Southwest 14% Iowa / Nebraska / South Dakota 10% Kansas Other 3% Other Regions 5% Auto Overview 19 $486M Portfolio Characteristics June 30,
Slide 20: Loan Credit Portfolio Summary
Loan Credit Portfolio Summary 20 1) Commercial business includes agriculture production, commercial and industrial, purchase carry securities, and other 2) Net of discounts $ in thousands As of June 30, 2016 Special Total Satisfactory Watch Mention Substandard Doubtful Loans One to four family resid
Slide 21: Asset Quality Trends
2.48% 2.33% 2.21% 1.92% 1.34% 1.20% 1.10% 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Q2 2.30% 1.96% 1.84% 1.75% 1.11% 1.07% 0.77% 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Q2 Asset Quality Trends¹ 21 NPAs / Assets NCOs / Average Loans Reserves / Loans Reserves / NPLs 2.05% 2.09% 2.43% 0.91% 0.24% 0.20% 0
Slide 22: Asset & Credit Quality
Asset & Credit Quality 22 1) Excludes FDIC - acquired assets Dollars in thousands As of or for the Year Ended, As of or for YTD 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2016Q2 Non-Performing Assets¹ Gross non-accruing loans $28,833 $27,091 $21,766 $19,298 $7,371 $16,569 $5,808 90+ Days Past Due 587 406 7
Slide 23: Deposit Composition
6% 5% 5% 5% 4% 8% 9% 8% 9% 10% 9% 8% 7% 7% 7% 8% 13% 12% 11% 10% 10% 11% 13% 14% 15% 16% 16% 16% 22% 21% 19% 18% 18% 17% 18% 18% 16% 16% 16% 15% 15% 15% 52% 52% 44% 46% 49% 48% 46% 46% 45% 43% 43% 43% 44% 44% 13% 14% 19% 19% 18% 17% 17% 17% 17% 17% 17% 18% 18% 18% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 24: Core Net Interest Margin
Core Net Interest Margin¹ 24 1) See appendix for r econciliation of core net interest margin (page 31) 6.26% 6.08% 5.76% 5.35% 4.94% 4.60% 4.45% 3.32% 3.61% 3.60% 3.66% 3.83% 3.76% 3.71% 1.50% 1.11% 0.78% 0.57% 0.46% 0.44% 0.50% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2010Y 2011Y 2012Y 2013Y
Slide 25: Net Interest Margin
Net Interest Margin 25 7.22% 8.53% 7.31% 6.82% 6.20% 5.48% 4.98% 3.93% 5.17% 4.61% 4.70% 4.84% 4.53% 4.18% 1.50% 1.11% 0.78% 0.57% 0.46% 0.44% 0.50% 0.00% 2.00% 4.00% 6.00% 8.00% 2010Y 2011Y 2012Y 2013Y 2014Y 2015Y 2Q2016 YTD Loan Yield NIM Cost of Funds
Slide 26: Securities Portfolio
Securities Portfolio 26 1) All FNMA 2) All GNMA, FNMA, FHLMC Available-for-Sale ($ in thousands) Book Value Gain / Loss Fair Value U.S. Government Agencies¹ $20,000 $19 $20,019 Mortgage-Backed Securities² 144,300 2,053 146,353 States and Political Subdivisions 66,049 5,779 71,828 Total $230,349 $7,8
Slide 27: Interest Coverage
Dollars in thousands For the Quarter Ended, 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Interest Coverage Total deposits $3,162 $3,133 $3,500 $3,716 $3,934 $4,121 FHLB advances 447 416 468 376 438 257 Short-term borrowings and repos 21 16 14 14 81 406 Trust preferred securities 151
Slide 28: Appendix
Appendix
Slide 29: Balance Sheet
Balance Sheet 29 ($ in thousands, except per share amounts) December 31, 2014 December 31, 2015 June 30, 2016 ASSETS: Cash $109,052 $115,198 $117,130 Interest-bearing deposits in other financial institutions 109,595 83,985 86,574 Cash and cash equivalents 218,647 199,183 203,704 Available-for-sale s
Slide 30: Income Statement
Income Statement 30 ($ in thousands, except per share amounts) Year Ended December 31, 2014 Year Ended December 31, 2015 June 30, 2016 YTD INTEREST INCOME: Loans $172,569 $177,240 $88,125 Investment securities and other 10,793 7,111 3,257 Total interest income 183,362 184,351 91,382 INTEREST EXPENSE
Slide 31: Non-GAAP Reconciliation
Non - GAAP Reconciliation 31 This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”) . These non - GAAP financial measures include core net interest income, core net interest m
Slide 32: Non-GAAP Reconciliation (con't)
Non - GAAP Reconciliation (con’t) 32 (A) Annualized year to date as of June 30, 2016 Non - GAAP Reconciliation: Return on Average Tangible Common Equity and Tangible Common Equity to Tangible Assets ($ in thousands) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Six months ended 06/30/16 Net Income