Great Southern's profits drop 34% in Q1

Great Southern Bancorp Inc. (Nasdaq: GSBC) started the year with a 34.5% decrease in profits during the first quarter.

The Springfield-based operator of Great Southern Bank posted net income of $13.4 million, or $1.13 per diluted share, for the first three months of 2024, according to a news release. That compares with profits of $20.5 million, or $1.67 per diluted share, in the same period a year earlier.

The company disclosed two items classified in the release as "significant or nonrecurring items" during the first quarter. They are legal and professional fees totaling $929,000 related to a core systems conversion, and an annual marketing and card expense reimbursement for qualifying expenditures from its debit card brand provider of $423,000. The latter reimbursement was used to offset marketing and advertising costs, officials say.

"Like many other banks, we experienced overall higher deposit costs during the first quarter of 2024, primarily due to current market interest rates and competitive pressures. While deposit interest expenses increased, the pace of the increase has moderated compared to the last few quarters," Great Southern President and CEO Joe Turner said in the release. "These higher funding costs drove a decrease in net interest income – approximately $8.4 million lower in the first quarter of 2024 compared to the first quarter of 2023."

As of March 31, Great Southern's assets were $5.8 billion and deposits were $4.8 billion. The company has 89 branches in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska, as well as commercial lending offices in Atlanta; Charlotte, North Carolina; Chicago; Dallas; Denver; Omaha, Nebraska; and Phoenix, according to the release.

GSBC shares were trading at $50.24 as of 10:23 a.m., compared with a 52-week range of $45.39 to $61.94 per share.