GSBC - Earnings call transcript Q1 2024 | Great Southern Bancorp, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Great Southern Bancorp, Inc's.

First Quarter 2024 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Kelly Polonus, Investor Relations. ahead. go Please

Kelly Polonus

for Good for Marvin. purpose thank for company's you this XXXX. March Thank first afternoon, quarter us results the discuss our is The quarter XXXX joining ending call XX, you, to and the earnings of call.

call, I events this actual and to These are may we financial course begin, that a the statements materially from or differ anticipated subject factors to cause to performance. results need Before make that number you forward-looking remind during results of we future could of about statements the projected.

some For a release list see these of quarter other in and of disclosure forward-looking our earnings first the statements filings. please public factors,

Joe Financial and Chief CEO, are Officer, and on Turner; with Copeland, President me. Rex the call

over to meeting the Turner. Joe turn now I'll

Joseph Turner

afternoon, as Thanks, our We operate continue today call. Kelly, joining us quarter good steady our characterize in I and would times. right. as you we and for performance appreciate first earnings challenging to uncertain quarter everybody. first All

earned For costs. Key continued deposit the in first quarter, moderate increases performance $X.XX a of our drivers or included million. $XX.X share we

to continues there origination and deposit significant of lower course, Of loan an expected volume. competition continuation be

fourth of quarter will unchanged to were generally compared from color on the quarter more our his provide part the year substantially in Additionally, also first presentation. expense quarter down Rex ago noninterest but performance. results our

swaps to for strong. end XX, our stockholders' securities. was Total the and on be continue attributable which equity million positions decrease liquidity was That sale decreases XXXX. March totally and a as XXXX, available in $XXX.X capital of company's $X.X mark-to-market The of to from was million

the shares average price. at common We dividend also share $XX.XX $X.XX declared and quarter repurchased XXX,XXX a during per

and diverse, well. portfolio continues by loan by geography our perform It's type. product Overall, very to both

loan were billion, to unfunded loan loans. end included At balances and the As $XXX the just million outstanding increased March down actually construction our slightly million. of $X.X of lines of commitments current operating flat, and the $X.X slightly unfunded essentially anticipated XXXX, total in environment, pipeline that

during nonperforming the credit metrics Overall quarter, strong did increase slightly. assets remained although quality

asset X.XX% of nonperforming projects. of really at X.XX% was million. assets -- increase one attributable an That the compared end to March to the was Our total end year. that's ratio $X.X of Nonperforming to the at multifamily

of we Since quarter, asset. the foreclosed significant charge-offs now don't end any estate, project. other the and that real It's have anticipate that from in we

Additionally, and loan was subsequent that of problem to foreclosure, end potential in resolved $X.X we the that resolved million relationship, have the the no charge-offs. was one with relationship

loan portfolio, look more encourage about information loan Of loan has on helpful our prepared that to course, for at remarks. you that's my I file our and type the geography. That regarding concludes by information our portfolio with portfolio presentation SEC

I'll So Rex at over call the turn this time. to

Rex Copeland

interest that. with income I'll net Thank right. you, margin, Joe. on information All start and

due to interest income banks mentioned costs first overall competitive the So XXXX. of $XX.X XXXX, for of current many to the experienced net XXXX banks, quarter $XX.X I'd during million as primarily for higher interest of quarter first and first like several was the say we the Joe compares deposit pressures. million. industry, rate of market That quarter before,

first costs our $X.X million increase of to the compared the approximately quarters. in to income, While quarter 'XX, a fourth that XXXX. first compared the expense interest 'XX of lower contributed increased, to net of previous higher moderated pace quarter of in interest quarter has $XXX,XXX The deposit few decrease about funding lower compared the the to

rates at replaced from deposits to current to accounts shifting their the products. current the first partially Higher some caused and market costs and of amount moderate by in lower quarter rates maturing interest-bearing were a time mix with noninterest-bearing -- due funding deposits of being

months release. these see in time April, in XX We detailed rates And the market the that based for in on then our early range. upcoming X.X% X% our replacement time and maturing current we over will earnings March deposits next deposit to rates the be maturities likely

funding the the income which -- also the negatively higher net swaps, income costs X interest quarter our XXXX. interest on ago affected compared of year net in settlements was rate company's deposits, Besides net began by of to May

quarter quarters. had by to During the XXXX impact quarter first X second $X.X in no interest of to quarters income of million of interest X rate these in the fourth reduce These and swaps of combined swaps each prior quarter XXXX. XXXX, those

reduced income terminated March $X.X the the XXXX, in on reduction XXXX. first million $X.X million XXXX Another X, quarter in of to in interest same interest contractually by swap period which rate compared

the quarter, first impact So further with that swap. will during termination from be financial no there now this

of in also X.XX%. the the interest margin to quarter of the in quarter 'XX 'XX and compares compared That XXXX. Net interest of quarter X.XX% first was first margin of in to fourth X.XX% net

and X basically average quarter the average other points. increased interest-earning 'XX investment basis XX yield increased When on points. basis XX XX yield interest-bearing first loans and 'XX, the points on comparing assets, the periods, of increased basis on those The yield securities cash

contraction resulted deposit a as year primarily on interest ago, margin compared we from The all increasing types rates to discussed.

deposits the 'XX. savings respectively, to basis the compared quarter time XX and in and demand XX quarter XXX interest-bearing first on rate points by 'XX of deposits points, broker deposits, increased average basis first points, basis Our and of

a Just deposits. of and comments couple liquidity about

advances available loan us that end remains position We've got that strong, borrowing the from Reserve and think. also [ needed. March, funding at utilize or securities $X.X we the unpledged at and if We've billion got cash additional with of we about line borrowings of to Federal liquidity $X.X the about ]. billion can sources home of bank Our available

total end the deposits nearly At were of $X.X March million. XXXX,

generated ended during deposits the through months about quarter. Time $XX noninterest-bearing checking banking the increased the $XX checking increased about deposits $XX company's brokered $XX March and Interest-bearing networks million And company's XX, increased During services almost first $XX.X total million million. 'XX, decreased decreased deposits the center million. total balances X million. and balances corporate

the income the just and led we've we noninterest continue the quarter. seen in compared are that million I'm was to seeing I the of continuation smaller last for Compared customers. overall, and decrease A to fact Overdraft quarter just quarter $X.X to that of that couple is payment last customers were it a see $X.X million, on while where decreased a and on sorry, as this of by to account and first income authorizing first that. to think The things $XXX,XXX couple down as year. things fund net quarter noninterest just year. year, our A -- first overdrafts the really now a insufficient what just been out choosing opt of you've balances, of of for utilization their the well fees overdraft

to point and channels quarter. decrease $XXX,XXX fees being Those us. that routed are fee prior to compared the of sale lot Second fees. A that of provide that lower through now decreased to ATM is thing year is related transactions

We that's expect going place. in to remain

bit also We slightly had little have probably lower usage. a

-- have is in year first point-of-sale usage I ATM the debit think cards cards. rest than the a generally lower little of of the perhaps and we quarter in

to to that first some year In [ and usage, then before year was quarter. activity decreased based for the ] compared $XXX,XXX income first generate we lastly, there's first year, card on the this the quarter, $XXX,XXX. And incentives income incentive quarter $XXX,XXX we prior did other debit related volumes that recorded almost

there a $XXX,XXX difference was So about in that.

expense, quarter fees last those the about first decreased -- $XXX,XXX $XX million about prior actually year. quarter. our $XX,XXX, both occurred to that compared expense compared Noninterest and in the within year marketing to categories advertising Changes decreased

some qualifying we get about We expenditures with in earnings $XXX,XXX reimbursed do have debit quarter the it year. card incentives some for for. We our That that -- the provider, release. in we first again, mentioned this brand have was

it it quarter. point expenses. out be in every annual year first a an was that's and to that marketing $XXX,XXX thing, the advertising previous reduction in quarter, And that Just won't

year and period legal quarter costs $X.X first training merit XXXX system decreased the was We period, related about core from implementation did professional expenses the for annual to Xst Legal really to fees in was first $X.X $XXX,XXX audit just quarter, operations. about million. million. normal employee increased have increases quarter benefits $XXX,XXX general that prior year this quarter first quarter last this year Salary versus In conversion. $XXX,XXX.

full And then the year to lastly, the prior was impact from in quarter increases rate the expense that increased XXXX. insurance insurance really was during $XXX,XXX of that included the first of and quarter. XXXX due deposit took effect FDIC in That

to as some quarter, Joe the fourth XX.XX%. as of we of total quarter efficiency this -- significant fourth the first from XX.XX% in fairly that that expense think quarter the significantly last for was were recorded noninterest compares quarter that I And year of year. in The ratio were XXXX. there XXXX. expenses first quarter nonrecurring decreased highlighted That last before, We mentioned

Joe the I'll about some losses. credit for talked things quality just provision before. mention about credit

provision X of recorded XX, negative that portion. during expense $X.X So during And provision year. we months provision first $XXX,XXX. provision unfunded $XXX,XXX March last to for on the loan losses to year, a million ended 'XX, the we of first did compared a $XXX,XXX of the compared the the of record quarter That for outstanding about this of on a quarter XXXX. first expense quarter Also, portfolio a during commitments

commitment were -- about XXXX. lot decreased unfunded levels during they our So a

quarter the so was of significant were quarter, there were a a in in $XX,XXX, quarter year. of this the the And the able charge-offs allowance first against total were we we first significant percentage the in And that. credit needed They so fairly so a as end losses some for of not of Net flat the at the to reserve this loans XXXX, first change quarter first X.XX%. not amount. reduce

taxes. I'll lastly, income bit a about then mention And little

below rate tax March majority and XX.X% XX.X%, and effective with for tax-exempt the the a so tax we also in The rate being year. XX, have federal ended is loans. utilization tax X months what our investments 'XX, do this statutory of and lower credits investment company's first and was the little respectively, rate of quarter occurs some So the rate 'XX certain

rate effective for the lower investment year federal XXXX. to in be is to And and during really, tax rate, XXXX, able rest tax that's to we XX.X%. combined primarily to additional maybe maybe going that kind of credit of And to due XX.X% we're look the have level of state, this do utilization around

this higher So in to be year. incorporate that taxes able we'll our levels

So that that prepared we have. concludes the remarks

at So this entertain time, questions. we'll

attendees me our ask to in how remind the queue operator once Let again for to questions.

Operator

first Piper the Andrew question Our of Instructions] line comes Liesch Sandler. of from [Operator

Andrew Liesch

margin comparable repricing looks rolling you CD the Rex, those and pretty off swap off. got it's dropping what's here, on the one to

more there's and think we've move for you the room bottom of do the here second So the in quarter? here it seen to margin higher

Rex Copeland

on it's inclusion X had mean, to the predict of will I hard is say, thing X one We'll that that with certainty, that of I off. negative months income Well, that one total have but we inclusion the swap rolled of months that. too,

sure, for going from to that is interest income our increase that, So perspective.

Joseph Turner

quarter. a million $X Another

Rex Copeland

Yes. Roughly.

So -- yes.

So to north of thereabouts X% time think we X.X% moderate I And exactly. in be a I somewhere I'm to we'll and like do -- rates going it sure maturing. I not the those or of we fall replacing there somewhere X% are are deposits probably that have average that in mean, be amount range. maturing probably said, we'll are

more that. some kind there The more bit the on So mix be is if a additional little wildcard of a I -- really is is shift, of increase there on could accounts. additional non-time of thing that mean, rate

rate don't we move how the products higher just so lower any balances -- or be it raising to on rate And necessarily to we depends products we're if rate to shift rate that interest products around don't anticipate they rates I those on mean, X products. But going from products.

-- kind some of but trying question not kind how it. directly, of too I'm your the to So of you we give answering of at pieces I'm I'm look

Joseph Turner

recent relatively in loan loan there's is rate portfolio disclosure And about The that the good other that, Andrew, our the I fixed portfolio, part think disclosure about repricing. Yes. some annual report. that and of

we be that. the competitive. quantitative to Yes. at alluded would look I does mean pretty be you to still there that's able the market does tightening, piece deposit some earlier, as -- there seem to still is seem of So be with other -- to it. And be

Andrew Liesch

And ahead to right. have All I'll out you these what then check really nonrecurring the it. that? sort core like continue going are provide as well. come conversion? I look, Then, of of might expenses And Got guess to related of to That's update helpful. you that? on other some can what items

Joseph Turner

Really finally continue yes, release, yes, not we press have level. we much update other at provided resolved, in that's this than to expenses And could the what until Andrew.

Operator

from next DelMonte Damon the question comes Our of of line KBW.

Damon Del Monte

of to wanted wanted repeated to advertising -- directionally with closer follow-up $XX isn't just question Just quarter? level, kind the Is I quarter to line point that of the to expenses. benefit given the to million in on something next here the it fair Rex, this

Rex Copeland

Yes.

For next I first guide And where thing to as would quarter. the sure, use here that really of things repeated in quarter some that's from. called could going kind we only in you can of mean there I say be there. and the your size. that from not any you the be out was little that start

Damon Del Monte

this what was you contributing you remainder quarter here And the over the of pretty the good. a little think slowness slower positive things would see then or some respect indicative right. quarter, next the expect for two? to just bit. say seasonality down the be flat, first with in we Or growth Do some should to that's expect more quarter little for a year? that of All last to growth, Okay. to there the quarter, and to outlook loan commented you expect you That's

Joseph Turner

seasonal I No. that necessarily. of sort would don't to that's Damon, be growth flattish. say will continue think, I

Damon Del Monte

asset kind driving seeing lower of is that's Okay. there kind portfolio? across it particular the And of that's class this? broad-based any is demand Or

Joseph Turner

it's think more I broad-based.

Damon Del Monte

Okay.

demand those function? of demand it economies? down, seeing So a more you softening just if of is any the is Or are in signs

Joseph Turner

more function. I think demand it's

particularly it's a urban think that. kind we about, lot deterioration rates we have read the than and and of office, mean, deposits. interest people just aren't just lot I don't of other you see trigger pulling like high-rise higher I don't much on and what like office, a office

holding that loan had up But are Oklahoma no multifamily well. project we was We the with potential loss. asset a classes I were off think the in problem that pretty paid

into from classes I are think up lot holding entrants not the So markets. there's pretty those just a standpoint asset It's well. a new credit that of

Rex Copeland

start with a I least going rates see that that the lot now, my first changed near term are the complexion, expecting quarter, see, to too coming rates I think of were really they at down. okay, now people the by could probably But may longer just to while, so before having putting where think, in they higher for people where bit for from little they are now. were We we a rates thought they off a in the December start we place. hold be maybe project

Damon Del Monte

Got it.

about just Okay. said commentary XX.X%. could the quarters? what this that was you was quarter lastly, Great. And Rex, what I then just repeat missed forward tax regarding rate? were know But the you your what I you saying.

Rex Copeland

Yes.

coming additional earnings little range think we that's So will the in we utilization our XX.X%. in have online here it of XX.X% be a depend will to It bit on overall. somewhere But XXXX. tax some credit do investment

it's where little So past. XX% below in of will rate bring that tax our we kind somewhat a the down think been

Operator

like turn closing Joe for back question-and-answer it remarks. I Turner concludes now to the This would to session.

Joseph Turner

right. everybody, the today. call All thanks, with for Thanks, us Marvin, and being on Thanks.

Thank end We second talk the to of will you you. the at quarter.

Operator

you conference. Thank your participation does program. for This the in conclude today's

You may disconnect. now

Great Southern Bancorp (GSBC) 18 Apr 242024 Q1 Earnings call transcript