Great Southern Bancorp reports Q2 EPS $1.45, consensus $1.21

Reports Q2 NII $46.8M vs. $48.1M last year. CEO Joseph W. Turner said, “Our second quarter results reflected improved earnings, both on a reported basis and excluding certain significant or non-recurring items, as we continue to operate in a challenging economic environment. Great Southern reported earnings of $1.45 per diluted common share ($17.0 million) for the second quarter of 2024, compared to $1.52 per diluted common share ($18.3 million) for the second quarter of 2023, and $1.13 per diluted common share ($13.4 million) for the first quarter of 2024. The significant or non-recurring items previously highlighted increased earnings per diluted common share by $0.08 for the second quarter of 2024. Reflective of current market interest rate and credit conditions, key drivers of our performance included modest increases in overall funding costs, continued significant competition for deposits and lower loan origination volume. We did see improved net interest income in the second quarter of 2024 compared to the first quarter of 2024 due to the contractual termination of an interest rate swap. Total non-interest income, excluding one non-recurring item discussed above, was slightly higher compared to the first quarter of 2024, mainly driven by increased gains on loan sales and better debit card transaction fee income. Total non-interest expense compared to the year ago second quarter increased about 3.5%. Like most banks, we experienced overall significantly higher funding costs during the second quarter of 2024 compared to the second quarter of 2023, primarily due to current market interest rates and competitive pressures. While deposit interest expenses increased, the pace of the increase has moderated over the last few quarters and only increased modestly compared to the first quarter of 2024. Net interest income in the second quarter of 2024 was approximately $1.3 million lower compared to the second quarter of 2023, and about $2.0 million higher compared to the first quarter of 2024. Higher funding costs in the second quarter of 2024 were partially caused by lower deposit balances with increased borrowings. As noted, an interest rate swap contractually terminated March 1, 2024, which reduced interest income by $1.9 million in the first quarter of 2024, with no financial impact from this swap in the second quarter of 2024.”