Great Southern Bancorp, Inc. (NASDAQ: GSBC) has reported its preliminary first-quarter earnings for 2025, with a notable increase in earnings per diluted common share compared to the same period in 2024. The earnings for the three months ended March 31, 2025, were $1.47 per diluted common share ($17.2 million net income) compared to $1.13 per diluted common share ($13.4 million net income) for the same period in 2024.
In the first quarter of 2025, the net interest income increased by approximately 10.1% to $49.3 million compared to $44.8 million for the first quarter of 2024. This increase was largely driven by higher interest income on loans and lower interest expense on deposit accounts. The annualized net interest margin was 3.57% for the quarter ended March 31, 2025, compared to 3.32% for the quarter ended March 31, 2024, and 3.49% for the quarter ended December 31, 2024.
The company's annualized return on average common equity was 11.30% for the quarter ended March 31, 2025, compared to 9.36% for the quarter ended March 31, 2024. Additionally, the annualized return on average assets was 1.15% for the quarter ended March 31, 2025, compared to 0.93% for the quarter ended March 31, 2024.
The company's non-performing assets and potential problem loans totaled $17.0 million at March 31, 2025, showing a slight increase from $16.6 million at December 31, 2024. However, non-performing assets decreased to $9.5 million (0.16% of total assets) at March 31, 2025, from $9.6 million (0.16% of total assets) at December 31, 2024.
Great Southern Bancorp, Inc. also emphasized its strong capital position, with its tier 1 leverage ratio at 11.3%, common equity tier 1 capital ratio at 12.4%, tier 1 capital ratio at 12.9%, and total capital ratio at 15.6% as of March 31, 2025. The company's tangible common equity to tangible assets ratio was 10.1% at the end of the first quarter of 2025.
Regarding liquidity, the company had secured borrowing line availability at the Federal Home Loan Bank (FHLBank) and the Federal Reserve Bank of $1.17 billion and $370.5 million, respectively, at March 31, 2025. Additionally, the company had unpledged securities with a market value totaling $337.4 million at the same date, which could be pledged as collateral for additional borrowing capacity at either the FHLBank or the Federal Reserve Bank.
In terms of stock purchase authorization, the company's board of directors approved a new stock repurchase program of up to one million additional shares of the company’s common stock in April 2025, succeeding the existing repurchase program authorized in November 2022.
Joseph W. Turner, President and CEO of Great Southern, commented on the first-quarter results, noting that the increase in net income compared to the prior year quarter was primarily driven by strong growth in net interest income, which rose $4.5 million, or 10.1%, supported by increases in both loan yields and average loan balances.
Turner highlighted the company's focus on managing costs tightly, safeguarding credit quality, and striving to optimize its funding mix to ensure long-term financial stability. He also mentioned the company's priorities of serving customers, communities, and shareholders while continuing to deliver sustainable returns.
The company’s net interest income for the first quarter of 2025 increased $4.5 million to $49.3 million, compared to $44.8 million for the first quarter of 2024. This increase was driven primarily by higher loan interest income and improved overall yields. The net interest margin was 3.57% in the first quarter of 2025, compared to 3.32% in the same period of 2024 and 3.49% in the fourth quarter of 2024.
Today the company's shares have moved 2.6% to a price of $53.44. For the full picture, make sure to review Great Southern Bancorp's 8-K report.
