Springfield-based Great Southern Bancshares Inc. (Nasdaq: GSBC), the holding company of Great Southern Bank, reported preliminary earnings of 38 cents per diluted common share, representing $5.3 million available to common shareholders, compared to $1.90 per common share and $26.6 million available to common shareholders for the same quarter in 2009.
Third-quarter 2009, however, was significantly affected by a gain related through Great Southern’s Federal Deposit Insurance Corp.-assisted acquisition of Vantus Bank, according to a news release.
Preliminary earnings for the nine months ended Sept. 30 were $1.07 per diluted common share, or $15 million available to common shareholders, compared to $4.14 per diluted common share, or $57.3 available in the same period in 2009.
The preliminary earnings report also found:
- Total gross loans, including those covered by FDIC, decreased 8 percent, or $168.9 million from Dec. 31, to $1.95 billion, partly due to significant drops in the FDIC-covered loan portfolios. The company’s portfolio, excluding FDIC-covered loans, fell 3.6 percent, or $62.1 million from Dec. 31, mainly due to construction loan decreases.
- Total deposits decreased by $136.4 million, or 5 percent, from Dec. 31, largely due to a 55.8 percent, or $254 million, decrease in total Certificate of Deposit Account Registry Service deposits. That drop was partly offset by a 14.3 percent, or $154.4 million, increase from year-end 2009 in checking account deposits, the release said.
- Net interest income for third-quarter 2010 increased $6.4 million to $30.2 million from third-quarter 2009. The net interest margin for the third quarter of this year was 4.03 percent, compared to 3.27 percent for third-quarter 2009, and the net interest margin also increased 46 basis points from the quarter ended June 30.
The report also showed that return on average equity for third-quarter 2010 was 9.7 percent and return on average assets was 0.72 percent. For the nine months ended Sept. 30, return on average equity was 9.22 percent, return on average assets was 0.65 percent and the net interest margin was 3.69 percent.
Great Southern President and CEO Joseph W. Turner said bank officials are pleased overall with the preliminary third-quarter earnings amid ongoing economic challenges.
“As expected, the company’s loan portfolio decreased, but we are seeing an uptick in overall loan production, particularly in single-family residential loans and commercial real estate loans,” Turner said in the release. He noted that asset quality and resolution of nonperforming assets are still a strong focus, and nonperforming assets increased $10.3 million from the end of 2009 and up $5.4 million from June 30. The bank’s allowance for loan losses as a percentage of total loans, excluding FDIC-covered loans, was at 2.44 percent as of Sept. 30, compared to 2.28 percent on the same date in 2009.
“While we are working through many of our problem credits and making progress, we expect nonperforming assets, loan loss provisions and net charge-offs to remain at elevated levels,” Turner added in the release.
Great Southern Bancorp shares were trading at $22.83 as of 10:50 a.m today, compared to its 52-week range of $19.37 to $26.32.[[In-content Ad]]
