Great Southern's Q3 profits fall

Great Southern Bancorp Inc. (Nasdaq: GSBC) reported a roughly 11% drop in third-quarter profits.

The Springfield-based operator of Great Southern Bank posted net income of $18.1 million, down from $20.4 million in third-quarter 2021, according to a news release. Diluted earnings per share dipped to $1.46 from $1.49.

"Earnings in the third quarter of 2022 versus the third quarter of 2021 included much lower profits on loan sales, as increasing interest rates reduced the volume of mortgage loans originated and sold in the secondary market," said Joe Turner, Great Southern president and CEO, in the release.

Additionally, company officials cited a $3.3 million provision for credit losses on loans and unfunded commitments, as well as a $1.1 million expense related to a core system conversion.

Turner said Great Southern is in preparation mode as "the current economic and geopolitical landscape has created a great deal of uncertainty."

"We are focused on ensuring that the company is properly positioned for this, especially in the wake of the changing interest rate environment caused by continued inflationary pressures and other factors," he said in the release. "As always, we remain steadfast in adhering to our core tenets of providing world-class customer service with a long-view mindset."

As of Sept. 30, Great Southern's assets were $5.7 billion and deposits were $4.7 billion. The company operates 92 branches in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska, as well as commercial lending offices in eight markets from Phoenix to Charlotte, North Carolina.

GSBC shares were trading at $60.02 as of 9:29 a.m., compared with a 52-week range of $50.30 to $64.16 per share. The 52-week high was hit Oct. 18, before the release of the company's third-quarter report.