Great Southern Bancorp (GSBC) Q4 2024 earnings summary

Executive summary

• Reported net income of $61.8 million ($5.26 per share) for 2024, with Q4 net income at $14.9 million ($1.27 per share), reflecting resilience amid rising funding costs and deposit competition.

• Gross loans totaled $4.77 billion as of December 31, 2024, down slightly from $4.79 billion at September 30, 2024.

• Loan portfolio remains diversified across commercial, consumer, real estate, and development segments.

• Asset quality remained strong, with non-performing assets declining to $9.6 million (0.16% of assets) at year-end 2024 from $11.8 million (0.20%) a year earlier.

• Maintained strong asset quality and capital position, with a focus on disciplined growth and shareholder value.

Financial highlights

• Q4 net interest income rose 9.7% year-over-year to $49.5 million; full-year net interest income was $189.1 million, down 2.1% from 2023 due to higher deposit costs.

• Net interest margin improved to 3.49% in Q4 from 3.30% a year ago and 3.42% in Q3; full-year margin was 3.42%, down from 3.57% in 2023.

• Non-interest income for Q4 2024 increased to $6.9 million, mainly from higher loan sale gains and swap income, partially offset by lower overdraft fees.

• Non-interest expenses for Q4 2024 were $36.9 million, including a $2 million non-recurring item; full-year expenses totaled $141.5 million.

• Efficiency ratio improved to 65.43% in Q4 2024 from 70.17% in Q4 2023.

Outlook and guidance

• No significant catalyst expected to move net interest margin materially in the next two to three quarters.

• Time deposit rates expected to decline further as maturing deposits renew at lower rates; benefit from a terminated interest rate swap will end after Q3 2025.

• Loan growth in 2025 expected to be similar to 2024, with repayments and new fundings likely to offset each other.

• Expense base for Q1 2025 expected to be similar to Q4, excluding non-recurring items, with seasonal increases in payroll and merit adjustments.

• Effective tax rate is projected at 18.0% to 20.0% for future periods.