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Great Southern Bank’s earnings were up in 2019. It’s one of two publicly traded banks from Springfield.
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Great Southern Bank’s earnings were up in 2019. It’s one of two publicly traded banks from Springfield.

Earnings at FDIC-insured institutions dip in 2019

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The 5,177 commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. collectively posted a decrease in 2019 earnings.

For the year, aggregate net income was roughly $233 billion, compared with around $237 billion in 2018, according to a news release.

FDIC officials cited slower growth in net interest income and higher loan-loss provisions for the drop in 2019 aggregate net income.

"During the second half of 2019, we saw three reductions in short-term interest rates and yield-curve inversions,” FDIC Chairman Jelena McWilliams said in the release. “These factors present challenges for banks' credit extension and funding. It is vital that banks maintain careful underwriting standards and prudent risk management in order to maintain lending through economic fluctuations."

Springfield’s two publicly traded banks — Great Southern Bancorp Inc. (Nasdaq: GSBC) and Guaranty Federal Bancshares Inc. (Nasdaq: GFED) — reported 2019 increases in net income. Great Southern’s earnings rose nearly 10% to $73.6 million, while Guaranty’s profits were up 28% to $9.4 million.

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