Great Southern Bancorp, Inc. has reported its preliminary financial results for the second quarter and six months ended June 30, 2024. The company recorded significant or non-recurring items during the quarter, including expenses related to training and implementation costs for core systems conversion and professional fees. On the other hand, income in other income totaled $2.7 million, net of expenses and write-offs, related to the termination of a master agreement with a third-party software vendor.
The company's net interest income for the second quarter of 2024 decreased by approximately 2.7% to $46.8 million compared to $48.1 million for the same period in 2023. The net interest margin was 3.43% for the quarter ended June 30, 2024, compared to 3.56% for the same period in 2023.
Total outstanding loans, excluding mortgage loans held for sale, increased by $44.0 million, or 1.0%, from $4.59 billion at December 31, 2023, to $4.63 billion at June 30, 2024. However, non-performing assets and potential problem loans totaled $26.0 million at June 30, 2024, representing an increase of $6.9 million from December 31, 2023.
The company's net income for the three months ended June 30, 2024, was $16.988 million compared to $18.320 million for the same period in 2023. For the six months ended June 30, 2024, net income was $30.395 million compared to $38.776 million for the same period in 2023.
Additionally, the company's annualized return on average common equity and annualized return on average assets for the quarter ended June 30, 2024, were 12.03% and 1.17%, respectively, compared to 13.11% and 1.28%, respectively, for the quarter ended June 30, 2023. For the six months ended June 30, 2024, these figures were 10.69% and 1.05%, respectively, compared to 13.99% and 1.36%, respectively, for the six months ended June 30, 2023.
Great Southern Bancorp's president and CEO, Joseph W. Turner, highlighted that the company's second quarter results reflected improved earnings, despite operating in a challenging economic environment. He noted that the company saw improved net interest income in the second quarter of 2024 compared to the first quarter of 2024 due to the contractual termination of an interest rate swap. However, higher funding costs in the second quarter of 2024 were partially caused by lower deposit balances with increased borrowings.
The company's total stockholders' equity was $568.8 million as of June 30, 2024, decreasing by $3.0 million from the end of 2023. The company's tangible common equity ratio was 9.4% at June 30, 2024.
In terms of liquidity, the company had available secured funding lines through the FHLBank and Federal Reserve Bank, along with on-balance sheet liquidity totaling approximately $2.0 billion as of June 30, 2024. Great Southern's deposit base remained diverse in terms of customer type and geography, with a relatively low level of uninsured deposits as of June 30, 2024, approximately 14% of total deposits, excluding internal subsidiary accounts.
The market has reacted to these announcements by moving the company's shares -1.9% to a price of $61.94. For more information, read the company's full 8-K submission here.
