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Branch sale helps boost Great Southern earnings

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The sale of its branches and deposits in Omaha, Nebraska, was a large contributor to Great Southern Bancorp Inc.’s (Nasdaq: GSBC) third-quarter financial results.

The Springfield-based operator of Great Southern Bank grew its net income by 93 percent to $22.5 million from $11.7 million in third-quarter 2017. Diluted share earnings were up to $1.57 from 82 cents a year earlier, according to a news release.

Great Southern reached a deal in March to sell its accounts and four branches in the Omaha market to Lincoln, Nebraska-based West Gate Bank. Great Southern recorded a pretax income gain of $7.3 million in the third quarter related to the transaction.

“Earnings were very strong, due in part to the gain related to the sale,” Great Southern President and CEO Joe Turner said in the release. “Even without this substantial gain, earnings were $1.18 per common diluted share, underscoring a very solid quarter driven by an increased core net interest margin, loan growth, expense containment and lower credit costs.”

Third-quarter financial notes:
    •    Gross loans were up 5.8 percent to $4 billion.
    •    Net interest income climbed 9.4 percent to $43 million.
    •    Provision for loan losses dropped 56 percent to $1.3 million.

As of Sept. 30, Great Southern’s assets were $4.6 billion and deposits were $3.6 billion. The banking company has 99 branches and more than 200 ATMs in Missouri and five other states. It also operates commercial lending offices in Atlanta; Chicago; Dallas; Omaha, Nebraska; and Tulsa, Oklahoma, according to the release.

Great Southern retained its lead this year in deposits held in the Springfield metropolitan statistical area. It recorded deposits of $1.34 billion, or 13.5 percent of the total market, as of June 30, according to recent Federal Deposit Insurance Corp. data.

GSBC shares were trading at $53.54 as of 10:08 a.m., compared with a 52-week range of $48.10 to $61.65.

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