Springfield-based Great Southern Bancorp Inc. recorded a loss in 2008, the holding company for Great Southern Bank reported this morning.
The bank posted a $4.7 million loss last year, compared to a $29.3 million profit in 2007. Earnings per share were -35 cents, down from $2.15 per share the year before.
The fourth quarter remained profitable for the company, however. Net income was $3.5 million, down 85 percent from $6.4 million in fourth-quarter 2007. Earnings per share were 26 cents, compared to 48 cents per share in the same period a year earlier.
Net loans were down $96.4 million for the year, with declines primarily in the construction and land development sector. Allowance for loan losses was up $3.7 million to $29.2 million.
Net charge-offs for the year were $48.5 million, compared to $6.3 million in 2007. The increase was largely due to $35 million in loans made to ANB Financial that had to be written off when the Arkansas bank shut down in May.
In December, Great Southern participated in the federal government's Capital Purchase Program. The bank issued 58,000 shares of its preferred stock to the U.S. Treasury for $58 million.
Operational expenses for the quarter were down $1 million, excluding foreclosure losses and credit-related expenses. In 2009, FDIC insurance costs are expected to go up by about $400,000 per quarter, as a result of its increased insurance premium for all banks.
"The year 2008 was one of the most challenging years in our company's 86-year history," Great Southern President and CEO Joe Turner said in a news release. "While we are disappointed with our overall financial performance, the challenges of the year also underscored the underlying strength and soundness of our institution. The company's Tier 1 risk-based and total risk-based capital levels are stronger than 2007 year-end levels, even without the Treasury's Capital Purchase Program investment. The company's on-balance and off-balance sheet liquidity levels increased for the year and are strong."
Shares (Nasdaq: GSBC) closed Wednesday at $10.58 and were trading down at $10.36 at 11:30 a.m. The 52-week range is $7.03 to $21.[[In-content Ad]]
