Great Southern 3Q profits dip

Great Southern Bancorp Inc. (Nasdaq: GSBC) posted third-quarter net income available to common shareholders of $11.2 million, a 3.4 percent dip compared to $11.6 million profits a year earlier.

The Springfield holding company’s diluted share earnings dropped to 79 cents in the quarter from 83 cents for the three-month period ended Sept. 30, 2014, according to a news release.

“Like most banks, we anticipate some margin pressure going forward as average loan yields have decreased and deposit costs have trended slightly higher because of increased competition,” Great Southern President and CEO Joe Turner said in the release.

Third-quarter financial notes:
    •    Net interest income dropped 6 percent to $41.5 million from $44.1 million last year.
    •    Provision for loan losses increased 80 percent to $1.7 million from $945,000.
    •    Salaries and employee benefits totaled $15.1 million during the quarter, up 1.3 percent from $14.9 million a year earlier.

On the last day of the third quarter, Great Southern agreed to buy 12 St. Louis branches and assume roughly $261 million in deposits and $155 million in loans from Cincinnati-based Fifth Third Bancorp (Nasdaq: FITB). The move would double its presence in the city.

The company also made public plans to consolidate underperforming retail centers and sell off its bank in Thayer. The moves are expected to occur in the first quarter of 2016.

As of Sept. 30, Great Southern held assets of $4.1 billion and deposits of $3.2 billion. The company operates 110 branches in Missouri, Arkansas, Iowa, Kansas, Minnesota and Nebraska, as well as loan offices in Tulsa, Okla., and Dallas, Texas, according to the release.

In the Federal Deposit Insurance Corp.’s recently released list deposit market share leaders in the Springfield metropolitan statistical area, Great Southern retained its No. 2 rank with $1.28 billion in deposits, a 14.6 percent share.

GSBC shares were trading at $47.21 as of 9:06 a.m., compared to a 52-week range of $32.01 to $47.85.