Yahoo Finance Great Southern Bancorp Inc (GSBC) (Q1 2024) Earnings Call Transcript Highlights: Key Financial ...
Earnings Per Share (EPS): $1.13 for Q1 2024
Net Income: $13.4 million for Q1 2024
Total Stockholders' Equity: $565.2 million as of March 31, 2024
Dividend: Declared a $0.40 per share common dividend
Share Repurchase: 112,000 shares at an average price of $51.44
Net Interest Income: $44.8 million for Q1 2024
Net Interest Margin: 3.32% for Q1 2024
Total Deposits: Nearly $4.8 billion as of March 31, 2024
Non-Interest Income: $6.8 million for Q1 2024
Non-Interest Expense: Approximately $34 million for Q1 2024
Provision for Credit Losses: $500,000 for Q1 2024
Effective Tax Rate: 19.1% for Q1 2024
Release Date: April 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Rex, on the margin here, you got the one swap dropping off. And those CD repricing looks, it's pretty comparable to what's rolling off. So do you think we've seen that the bottom of the margin here and there's more room for it to move higher here in the second quarter? A: Rex Copeland, CFO of Great Southern Bancorp, indicated that while it's hard to predict with certainty, the termination of one interest rate swap should positively impact interest income. He mentioned that there might be a slight increase in rates due to maturing time deposits, but the mix shift in deposit types could be a wildcard. Joseph Turner, CEO, added that the fixed rate loan repricing and competitive deposit market might also influence the margin.
Q: Are you going to continue to have some of these non-recurring items related to the core conversion? And what update can you provide on that and what other expenses might come ahead of that? A: Joseph Turner, CEO, responded that there isn't much update beyond what was provided in the press release regarding the core system conversion. He noted that expenses related to this conversion might continue at the current level until the issue is fully resolved.
Q: With respect to the outlook for loan growth, you commented last quarter that you expect things to be slower this quarter, pretty flat, slowed down a little bit. Do you think that's more indicative of what to expect for the remainder of the year? A: Joseph Turner, CEO, clarified that the flat growth isn't seasonal but is expected to continue. He described the demand as broad-based across the portfolio and attributed the slowdown to higher interest rates deterring new projects, rather than a deterioration in economic conditions.
Q: Could you just repeat what you said about the tax rate? I missed what you're saying. I know this quarter was 19.1%. But what was your commentary regarding the forward quarters? A: Rex Copeland, CFO, projected that the effective tax rate for the upcoming periods would be between 18.5% to 20.5%, influenced by additional investment tax credit utilization expected in 2024. This would slightly lower the tax rate compared to previous levels.
Q: Is it fair to directionally point something closer to the $35 million level for expenses, given that the advertising benefit this quarter is repeated here in the next quarter? A: Rex Copeland, CFO, confirmed that the advertising benefit noted in the first quarter would not repeat in the next quarter. He suggested using the current expense level as a starting point for future projections, indicating a potential increase in non-recurring expenses.
Q: Is there any particular asset class that seeing lower demand that's driving this, or is it broad-based across the portfolio? A: Joseph Turner, CEO, reiterated that the lower demand is broad-based rather than concentrated in any specific asset class. He mentioned that the overall credit quality of asset classes remains strong, with no significant losses even in potential problem loans.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
