Great Southern Bancorp earns $3.3M in second quarter

Springfield-based Great Southern Bancorp Inc. this morning reported a $3.3 million profit in the second quarter, down 48 percent from a year ago.

The quarter's profit also was down from $17.4 million in the first quarter, a figure that included a one-time net gain from the bank's March acquisition of Kansas-based TeamBank. Since the acquisition, Great Southern has retained about 98 percent of TeamBank deposits.

Earnings per share for the second quarter were 24 cents, compared to 47 cents in second-quarter 2008, according to the bank's preliminary earnings report.

Both net interest income and noninterest income increased - 20 percent and 7 percent respectively - while noninterest expense jumped a significant 47 percent to $20 million.

Expenses during the quarter included a special Federal Deposit Insurance Corp. insurance assessment of $1.7 million and the operational expenses of acquiring TeamBank.

Nonperforming assets at the end of the second quarter were $54.4 million, down $11.5 million from the end of 2008, and represented 1.63 percent of total assets, compared to 2.48 percent six months ago.

Total gross loans fell $61.7 million, or 3.1 percent, from the first quarter but were up 8.9 percent, or $155.2 million, from the end of 2008. Excluding FDIC-insured loans, construction and land development loans were down 6.3 percent, or $31.3 million, from the first quarter and down 14.2 percent, or $77.5 million, from the end of last year.

The ratio of allowance for loan losses to total loans increased to 1.91 percent, compared to 1.73 percent at the end of the first quarter and 1.66 percent at the end of last year.

"Credit quality and the resolution of nonperforming loans continue to be top priorities." Great Southern President and CEO Joseph W. Turner said in the earnings release, noting decreases in nonperforming assets and nonperforming loans, and increases in foreclosed assets. "While we are somewhat encouraged to see this decline in nonperforming assets, the overall economy remains weak, and therefore we expect nonperforming assets, loan loss provisions and net charge-offs to continue to be elevated, but at manageable levels."

Core deposits were up $75.5 million from the previous quarter, with growth primarily in noninterest-bearing checking and certificates of deposit.

Great Southern shares (Nasdaq: GSBC) closed Wednesday at $19.66 and were trading up at $20 at 10:30 a.m. The 52-week range is $7.03 to $22.96.[[In-content Ad]]