SPRINGFIELD, Mo., Jan. 26, 2015 /PRNewswire/ --
Preliminary Financial Results for the Quarter and Year Ended
December 31,
2014:
- Total Loans: Total gross loans, excluding acquired
covered loans, acquired non-covered loans and mortgage loans held
for sale, increased $525.5 million,
or 25.1%, from December 31, 2013, to
December 31, 2014, primarily in the
areas of commercial real estate loans, consumer loans and
construction loans, with smaller increases in commercial business
loans and other residential loans. Net decreases in the loan
portfolios acquired in 2009, 2011 and 2012 totaled $49.6 million in the year ended December 31, 2014. The net carrying value of the
loans acquired in the June 2014
FDIC-assisted Valley Bank transaction was $122.0 million at December
31, 2014, down from $165.1
million at the acquisition date of June 20, 2014.
- Net Interest Income: Net interest income for the
fourth quarter of 2014 increased $5.0
million to $45.5 million
compared to $40.5 million for the
fourth quarter of 2013. Net interest margin was 5.08% for the
quarter ended December 31, 2014,
compared to 5.02% for the fourth quarter of 2013 and 4.91% for the
quarter ended September 30, 2014.
These changes were primarily the result of increases in average
loan balances and reductions in interest expense due to the
repayment of high-rate borrowings at the end of the second quarter
of 2014. The positive impact on net interest margin from the
additional yield accretion on acquired loan pools that was recorded
during the period was 102 basis points for the quarter ended
December 31, 2014, 108 basis points
for the quarter ended December 31,
2013, and 98 basis points for the quarter ended September 30, 2014. For further discussion
of the additional yield accretion of the discount on acquired loan
pools, see the "Net Interest Income" section of this release.
- Asset Quality: Non-performing
assets and potential problem loans, excluding those covered by FDIC
loss sharing agreements and those acquired in the FDIC-assisted
transaction with Valley Bank, which are not covered by a loss
sharing agreement and are accounted for and analyzed as loan pools
rather than individual loans, totaled $68.7
million at December 31, 2014,
a decrease of $20.3 million from
$89.0 million at December 31, 2013 and an increase of $561,000 from $68.1
million at September 30, 2014.
Non-performing assets were $43.7
million, or 1.11% of total assets, at December 31, 2014, compared to $62.1 million, or 1.74% of total assets at
December 31, 2013 and $47.0 million or 1.20% of total assets at
September 30, 2014. Net recoveries
were $302,000 for the three months
ended December 31, 2014, compared to
net charge-offs of $946,000 for the
three months ended September 30, 2014
and net charge-offs of $2.2 million
for the three months ended December 31,
2013.
- Capital: The capital position of the
Company continues to be strong, significantly exceeding the "well
capitalized" thresholds established by regulators. On a preliminary
basis, as of December 31, 2014, the
Company's Tier 1 leverage ratio was 11.2%, Tier 1 risk-based
capital ratio was 13.5%, and total risk-based capital ratio was
14.7%.
- Significant Unusual Income and Expense
Items: There were several significant unusual income and
expense items recorded during the three months ended December 31, 2014. Investment securities were
sold at a gain of $1.2 million. Gains
on loan sales increased substantially in the quarter. Approximately
$300,000 of the gain on loan sales in
the fourth quarter was related to Valley Bank production that is
not expected to recur in future periods. Approximately $420,000 in compensation and incentive expense
was included in this quarter which is expected to not recur in
future periods as the Valley Bank integration and consolidation
activities were completed prior to December
31, 2014. Approximately $350,000 of data processing and equipment charges
were incurred related to the systems conversion and operations
consolidation which are not recurring items. Approximately
$180,000 in various expenses related
to legal, supplies, postage, travel and meals, etc. in connection
with the Valley transaction, which are not expected to recur, were
incurred in the quarter. The Company recorded a $2.0 million write-down of the carrying value of
several foreclosed assets during the quarter ended December 31, 2014. These write-downs were in
various asset types, but the majority were in the categories of
subdivision construction and land development. The Company
collected $1.9 million from customers
with loans which had previously not been expected to be
collectible. These collections were accounted for as increases in
estimated cash flows and were recorded as interest income. These
collections related to acquired loans which were subject to loss
sharing agreements with the FDIC; therefore, 80% of the amounts
collected, or $1.5 million, is owed
to the FDIC. This $1.5 million of
expense is included in non-interest income under "accretion
(amortization) of income related to business acquisitions." Also
during the quarter, the Company realized significant recoveries on
certain loans originated by the Bank which had been previously
charged off through the allowance for loan losses. These recoveries
more than offset the charge-offs recorded during the quarter and
therefore no material provision for loan losses was deemed
necessary in the quarter ended December 31,
2014.
Great Southern Bancorp, Inc. (NASDAQ: GSBC), the holding company
for Great Southern Bank, today reported that preliminary earnings
for the three months ended December 31,
2014, were $0.86 per diluted
common share ($11.9 million available
to common shareholders) compared to $0.62 per diluted common share ($8.5 million available to common shareholders)
for the three months ended December
31, 2013.
Preliminary earnings for the year ended December 31, 2014, were $3.10 per diluted common share ($43.0 million available to common shareholders)
compared to $2.42 per diluted common
share ($33.2 million available to
common shareholders) for the year ended December 31, 2013.
For the quarter ended December 31,
2014, annualized return on average common equity was 13.43%,
annualized return on average assets was 1.23%, and net interest
margin was 5.08%, compared to 10.75%, 0.97% and 5.02%,
respectively, for the quarter ended December
31, 2013. For the year ended December 31, 2014, return on average common
equity was 12.63%; return on average assets was 1.14%; and net
interest margin was 4.84% compared to 10.52%, 0.89% and 4.70%,
respectively, for the year ended December
31, 2013.
President and CEO Joseph W.
Turner commented, "The past year was a busy and eventful one
at Great Southern. Key accomplishments for the year included the
successful acquisition and integration of the former Valley Bank,
which was acquired in an FDIC-assisted transaction in June
2014. This acquisition, which represented our fifth
FDIC-assisted acquisition since 2009, supports our long-term
strategy of strengthening our presence in the Des Moines market and provided entry into a
new market, the attractive Quad Cities metro area.
Customer retention has been very good thanks to the hard work and
commitment of our team of associates. This transaction, unlike our
previous FDIC-assisted transactions, did not provide loss share
coverage for the loans acquired and resulted in a bargain purchase
gain of $10.8 million.
"In looking at overall operations in 2014, we experienced
significant loan growth throughout the franchise and credit quality
continued to improve. Total gross loans, excluding acquired covered
loans, acquired non-covered loans and mortgage loans held for sale,
increased $525 million, or 25%, from
December 31, 2013, to December 31, 2014, with increases in most loan
categories. Non-performing assets were $43.7
million, or 1.11% of total assets, at December 31, 2014, compared to $62.1 million, or 1.74% of total assets, at
December 31, 2013."
Turner continued, "Our net interest margin was relatively stable
during the year. Earnings and capital remained strong as we ended
2014. Fourth quarter and annual reported earnings, which did
include some significant unusual income and expense items, were
$0.86 and $3.10 per diluted common share,
respectively. As of December 31,
2014, common stockholders' equity was $362 million, or 9.2% of assets, equivalent to a
book value of $26.30 per common
share.
"One additional capital item to note relates to the SBLF
preferred stock we have outstanding, which totals approximately
$58 million. Our Bank earnings
have afforded us the ability to distribute cash in the form of
dividends to the holding company such that we now have enough cash
there to fully repay the SBLF funds. We currently anticipate
repaying these funds prior to the first quarter of 2016, at which
time the dividend rate on any unpaid balance would increase from 1%
to 9%."
Selected Financial
Data:
|
|
(In thousands, except
per share data)
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2014
|
2013
|
|
2014
|
2013
|
Net interest
income
|
$
45,519
|
$
40,494
|
|
$ 167,561
|
$ 159,592
|
Provision for loan
losses
|
52
|
2,813
|
|
4,151
|
17,386
|
Non-interest
income
|
1,397
|
(864)
|
|
14,731
|
5,315
|
Non-interest
expense
|
31,169
|
26,828
|
|
120,859
|
105,618
|
Provision for income
taxes
|
3,628
|
1,316
|
|
13,753
|
8,174
|
Net income
|
$
12,067
|
$
8,673
|
|
$
43,529
|
$
33,729
|
|
|
|
|
|
|
Net income available
to common shareholders
|
$
11,922
|
$
8,528
|
|
$
42,950
|
$
33,150
|
Earnings per diluted
common share
|
$
0.86
|
$
0.62
|
|
$
3.10
|
$
2.42
|
|
|
|
|
|
|
NET INTEREST INCOME
Net interest income for the fourth quarter of 2014 increased
$5.0 million to $45.5 million compared to $40.5 million for the fourth quarter of 2013.
Net interest margin was 5.08% in the fourth quarter of 2014,
compared to 5.02% in the same period of 2013, an increase of six
basis points. Net interest income for the year 2014 increased
$8.0 million to $167.6 million compared to $159.6 million for the year 2013. Net
interest margin was 4.84% in the year ended December 31, 2014, compared to 4.70% in the year
ended December 31, 2013, an increase
of 14 basis points. For the three months ended December 31, 2014, the net interest margin
increased 17 basis points compared to the net interest margin of
4.91% in the three months ended September
30, 2014. The average interest rate spread was 4.99%
and 4.74% for the three months and year ended December 31, 2014, compared to 4.90% and 4.60%
for the three months and year ended December
31, 2013. For the three months ended December 31, 2014, the average interest rate
spread increased 16 basis points compared to the average interest
rate spread of 4.83% in the three months ended September 30, 2014.
As noted previously, during the three months ended December 31, 2014, the Company collected
$1.9 million from customers with
loans which had previously not been expected to be
collectible. In accordance with the Company's accounting
methodology, these collections were accounted for as increases in
estimated cash flows and were recorded as interest income, thereby
increasing net interest income and net interest margin. The
positive impact on net interest margin in the three months ended
December 31, 2014 (annualized), was
approximately 20 basis points. These collections related to
acquired loans which were subject to loss sharing agreements with
the FDIC; therefore, 80% of the amounts collected, or $1.5 million, is owed to the FDIC. This
$1.5 million of expense is included
in non-interest income under "accretion (amortization) of income
related to business acquisitions."
The Company's net interest margin has been significantly
impacted by additional yield accretion recognized in conjunction
with updated estimates of the fair value of the loan pools acquired
in the 2009, 2011 and 2012 FDIC-assisted transactions. On an
on-going basis, the Company estimates the cash flows expected to be
collected from the acquired loan pools. For each of the loan
portfolios acquired, the cash flow estimates have increased, based
on payment histories and reduced loss expectations of the loan
pools. This resulted in increased income that was spread on a
level-yield basis over the remaining expected lives of the loan
pools. The increases in expected cash flows also reduced the amount
of expected reimbursements under the loss sharing agreements with
the FDIC, which are recorded as indemnification assets. Therefore,
the expected indemnification assets have also been reduced each
quarter since the fourth quarter of 2010, resulting in adjustments
to be amortized on a comparable basis over the remainder of the
loss sharing agreements or the remaining expected lives of the loan
pools, whichever is shorter. Additional estimated cash flows,
primarily related to the InterBank loan portfolios, were recorded
in the quarter ended December 31,
2014.
In addition, beginning in the quarter ended December 31, 2014, the Company's net interest
margin has been impacted by additional yield accretion recognized
in conjunction with updated estimates of the fair value of the loan
pools acquired in the June 2014
Valley Bank FDIC-assisted transaction. Beginning with the
quarter ended December 31, 2014, the
cash flow estimates have increased for certain of the Valley Bank
loan pools primarily based on significant loan repayments and also
due to collection of certain loans, thereby reducing loss
expectations on certain of the loan pools. This resulted in
increased income that was spread on a level-yield basis over the
remaining expected lives of these loan pools. The Valley Bank
transaction does not include a loss sharing agreement with the
FDIC. Therefore, there is no related indemnification asset.
The entire amount of the discount adjustment will be accreted to
interest income over time with no offsetting impact to non-interest
income. The amount of the Valley Bank discount adjustment
accreted to interest income for the quarter ended December 31, 2014 was $981,000, and is included in the impact on net
interest income/net interest margin amount in the table
below.
The impact of these adjustments on the Company's financial
results for the reporting periods presented is shown below:
|
Three Months
Ended
|
|
December 31,
2014
|
|
December 31,
2013
|
|
(In thousands, except
basis points data)
|
Impact on net
interest income/
net interest margin (in basis points)
|
$
9,137
|
102 bps
|
|
$
8,703
|
108 bps
|
Non-interest
income
|
(6,825)
|
|
|
(7,414)
|
|
Net impact to pre-tax
income
|
$
2,312
|
|
|
$
1,289
|
|
|
|
|
Year
Ended
|
|
December 31,
2014
|
|
December 31,
2013
|
|
(In thousands, except
basis points data)
|
Impact on net
interest income/
net interest margin (in basis points)
|
$
34,974
|
101 bps
|
|
$
35,211
|
104 bps
|
Non-interest
income
|
(28,740)
|
|
|
(29,451)
|
|
Net impact to pre-tax
income
|
$
6,234
|
|
|
$
5,760
|
|
Because these adjustments will be recognized over the remaining
lives of the loan pools and the remainder of the loss sharing
agreements, respectively, they will impact future periods as well.
The remaining accretable yield adjustment that will affect interest
income is $26.9 million and the
remaining adjustment to the indemnification assets, including the
effects of the clawback liability related to InterBank, that will
affect non-interest income (expense) is $(22.6) million. Of the remaining adjustments, we
expect to recognize $20.4 million of
interest income and $(16.5) million
of non-interest income (expense) during 2015. Additional
adjustments may be recorded in future periods from the
FDIC-assisted transactions, as the Company continues to evaluate
its estimate of expected cash flows from the acquired loan
pools.
Excluding the impact of the additional yield accretion, net
interest margin for the three months ended December 31, 2014 increased 12 basis points when
compared to the year-ago quarter, and increased 13 basis points
when compared to the third quarter of 2014. Excluding the
impact of the additional yield accretion, net interest margin for
the year ended December 31, 2014
increased 17 basis points when compared to the year ended
December 31, 2013. The increase
in net interest margin is primarily due to a decrease in interest
expense on FHLB advances and short-term borrowings, due to the
payoff of FHLB advances and structured repurchase agreements, as
discussed in the quarter ended June 30,
2014 Quarterly Report on Form 10-Q. In addition, the
mix of assets has continued to change through an increase in the
average balance of loans and a decrease in the average balance of
investment securities and other interest-earning assets. Our
average yield on loans is higher than our average yield on
investments.
For additional information on net interest income components,
see the "Average Balances, Interest Rates and Yields" tables in
this release.
NON-INTEREST INCOME
For the quarter ended December 31,
2014, non-interest income increased $2.3 million to $1.4
million when compared to the quarter ended December 31, 2013, primarily as a result of the
following increases and decreases:
- Net realized gains on sales of available-for-sale securities:
Gains on sales of available-for-sale securities increased
$1.2 million compared to the prior
year quarter. This was due to the sale of the taxable municipal
securities originally acquired in the Sun Security Bank
FDIC-assisted acquisition, which produced a gain of $1.2 million.
- Gains on sales of single-family loans: Gains on sales of
single-family loans increased $754,000 compared to the prior year quarter. This
increase was due to an increase in originations of fixed-rate loans
in the 2014 period, which included additional loan originations in
the operations acquired in the Valley Bank transaction in
June 2014. Fixed rate single-family
loans originated are subsequently sold in the secondary
market.
- Service charges and ATM fees: Service charges and ATM fees
increased $585,000 compared to the
prior year quarter, primarily due to an increase in fee income from
the additional accounts acquired in the Valley Bank transaction in
June 2014.
- Amortization of income related to business acquisitions: The
net amortization expense related to business acquisitions was
$7.8 million for the quarter ended
December 31, 2014, compared to
$7.4 million for the quarter ended
December 31, 2013. The amortization
expense for the quarter ended December 31,
2014, was made up of the following items: $6.3 million of amortization expense related to
the changes in cash flows expected to be collected from the
FDIC-covered loan portfolios and $486,000 of amortization of the clawback
liability. In addition, the Company collected amounts on various
problem assets acquired from the FDIC totaling $1.9 million. Under the loss sharing agreements,
80% of these collected amounts must be remitted to the FDIC;
therefore, the Company recorded a liability and related expense of
$1.5 million. Partially offsetting
the expense was income from the accretion of the discount related
to the indemnification assets for all of the acquisitions of
$479,000.
For the year ended December 31,
2014, non-interest income increased $9.4 million to $14.7
million when compared to the year ended December 31, 2013, primarily as a result of the
following increases and decreases:
- Initial gain recognized on business acquisition: The Company
recognized a one-time gain of $10.8
million (pre-tax) on the FDIC-assisted acquisition of Valley
Bank, which occurred on June 20,
2014.
- Net realized gains on sales of available-for-sale securities:
Gains on sales of available-for-sale securities increased
$1.9 million compared to the prior
year. This was due to the sale of all of the Company's Small
Business Administration securities in June
2014, which produced a gain of $569,000; the sale of the acquired Valley Bank
securities in July 2014, which
produced a gain of $121,000; and the
sale of the municipal securities acquired in the Sun Security Bank
transaction in October 2014,
resulting in a gain of $1.2 million,
as mentioned above.
- Service charges and ATM fees: Service charges and ATM fees
increased $848,000 compared to the
prior year, primarily due to an increase in fee income from the
additional accounts acquired in the Valley Bank transaction in
June 2014.
Partially offsetting the increase in non-interest income were
the following items:
- Amortization of income related to business acquisitions: The
net amortization expense related to business acquisitions was
$27.9 million for the year ended
December 31, 2014, compared to
$25.3 million for the year ended
December 31, 2013. The amortization
expense for the year ended December 31,
2014, was made up of the following items: $27.5 million of amortization expense related to
the changes in cash flows expected to be collected from the
FDIC-covered loan portfolios, $1.7
million of amortization of the clawback liability and
$152,000 of impairment of the
indemnification asset for Vantus Bank. The impairment was recorded
because the Company did not expect, and did not receive, resolution
of certain items related to commercial foreclosed assets prior to
the expiration of the non-single-family loss sharing agreement for
Vantus Bank. In addition, the Company collected amounts on various
problem assets acquired from the FDIC totaling $1.9 million. Under the loss sharing agreements,
80% of these collected amounts must be remitted to the FDIC;
therefore, the Company recorded a liability and related expense of
$1.5 million. Offsetting the expense
was income from the accretion of the discount related to the
indemnification assets for all of the acquisitions of $2.4 million and $600,000 of other loss share income items.
- Gains on sales of single-family loans: Gains on sales of
single-family loans decreased $782,000 compared to the prior year period. This
was due to a decrease in originations of fixed-rate loans due to
higher fixed rates on these loans during most of the 2014 period
which resulted in fewer loans being originated to refinance
existing debt. Fixed rate single-family loans originated are
subsequently sold in the secondary market. The decrease occurred in
the first six months of the year and was partially offset by an
increase in gains on sales of single-family loans during the last
six months of the year ended December 31,
2014, as discussed above.
- Change in interest rate swap fair value: The Company recorded
expense of $(345,000) during the 2014
period due to the decrease in the interest rate swap fair value
related to its matched book interest rate derivatives program. This
compares to income of $295,000
recorded during the year ended December 31,
2013.
NON-INTEREST EXPENSE
For the quarter ended December 31,
2014, non-interest expense increased $4.3 million to $31.2
million when compared to the quarter ended December 31, 2013, primarily as a result of the
following items:
- Valley Bank acquisition expenses: The Company incurred
approximately $2.7 million of
additional non-interest expenses during the quarter ended
December 31, 2014, related to the
operations of Valley Bank, which was acquired through the FDIC in
June 2014. Those expenses included
approximately $918,000 of
compensation expense, approximately $760,000 of computer and equipment expense,
approximately $405,000 of net
occupancy expense, approximately $94,000 of travel, meals and other expenses
related to the integration of operations, $85,000 of legal and professional fees and
various other expenses. As noted earlier, we expect that
approximately $950,000 of these
expenses will not recur in future periods.
- Expense on foreclosed assets: Expense on foreclosed assets
increased $1.9 million compared to
the prior year period due to write-downs on foreclosed assets in
the current period of approximately $2.0
million. Three properties accounted for $1.1 million of the write-downs recognized. The
write-downs were primarily due to the Company's decision to reduce
the asking prices on these properties.
Partially offsetting the increase in non-interest income was a
decrease in the following items:
- Legal, audit and other professional fees: Legal, audit
and other professional fees decreased $686,000 compared to the prior period, primarily
due to reduced costs for collections related to foreclosed assets,
as certain properties created a large expense in the prior year
period.
For the year ended December 31,
2014, non-interest expense increased $15.2 million to $120.9
million when compared to the year ended December 31, 2013, primarily as a result of the
following items:
- Other Operating Expenses: Other operating expenses increased
$7.7 million, to $15.8 million for the year ended December 31, 2014 compared to the prior year
period primarily due to $7.4 million
in prepayment penalties paid as the Company elected to repay
$130 million of its FHLB advances and
structured repo borrowings prior to their maturity during the three
months ended June 30, 2014.
- Valley Bank acquisition expenses: The Company incurred
approximately $5.6 million of
additional non-interest expenses during the year ended December 31, 2014 related to the operations of
Valley Bank, which was acquired through the FDIC in June 2014. Those expenses included approximately
$2.3 million of compensation expense,
approximately $1.2 million of
computer and equipment expense, approximately $718,000 of net occupancy expense, approximately
$241,000 of legal, audit and other
professional fees expense, approximately $333,000 of travel, meals and other expenses
related to due diligence for the transaction and integration issues
and various other expenses. As noted earlier, we expect that
approximately $2.6 million of these
expenses will not recur in future periods.
- Expense on foreclosed assets: Expense on foreclosed assets
increased $1.6 million for the year
ended December 31, 2014 compared to
the prior year due to write-downs on foreclosed assets of
approximately $2.0 million in the
three months ended December 31, 2014,
as discussed above for the three month period.
The Company's efficiency ratio for the quarter ended
December 31, 2014, was 66.4% compared
to 67.7% for the same quarter in 2013. The efficiency ratio for the
year ended December 31, 2014, was
66.3% compared to 64.1% for 2013. The improvement in the
ratio in the 2014 three month period was primarily due to the
increase in net interest income, which is discussed above,
partially offset by increases in non-interest expense. The
efficiency ratio in the year ended December
31, 2014 increased compared to the ratio in the prior
year. The 2014 ratio was negatively affected by the early
repayment of certain borrowings in June
2014 and the increase in non-interest expense related to the
June 2014 Valley acquisition and
other items as discussed above, partially offset by increases in
non-interest income resulting from the initial gain recognized on
the Valley acquisition. The Company's ratio of non-interest expense
to average assets increased from 3.00% for the three months ended
December 31, 2013 to 3.18% for the
three months ended December 31, 2014,
and increased from 2.79% for the year ended December 31, 2013 to 3.16% for the year ended
December 31, 2014. The increase
in the current three month period ratio was primarily due to the
increase in expenses in the 2014 period compared to the 2013 period
due to the write-downs related to certain foreclosed assets and
other non-interest expenses related to the Valley acquisition. The
increase in the current year ratio was primarily due to the
increase in other operating expenses in the 2014 year compared to
the 2013 year due to the penalties paid for prepayment of
borrowings, write-downs related to certain foreclosed assets and
other non-interest expenses related to the Valley
acquisition. Average assets for the quarter ended
December 31, 2014, increased
$336.4 million, or 9.4%, from the
quarter ended December 31,
2013. Average assets for the year ended December 31, 2014, increased $34.6 million, or 0.9%, from the year ended
December 31, 2013. The
increases in the three month and annual periods was primarily due
to the Valley acquisition in June
2014, and organic loan growth, partially offset by decreases
in investment securities and FDIC indemnification assets.
INCOME TAXES
In the three months ended March 31,
2014, the Company elected to early-adopt FASB ASU No.
2014-01, which amends FASB ASC Topic 323, Investments – Equity
Method and Joint Ventures. This Update impacts the Company's
accounting for investments in flow-through limited liability
entities which manage or invest in affordable housing projects that
qualify for the low-income housing tax credit. The amendments in
the Update permit reporting entities to make an accounting policy
election to account for their investments in qualified affordable
housing projects using the proportional amortization method if
certain conditions are met. Under the proportional amortization
method, an entity amortizes the initial cost of the investment in
proportion to the tax credits and other tax benefits received and
recognizes the net investment performance in the income statement
as a component of income tax expense (benefit). The Company has
significant investments in such qualified affordable housing
projects that meet the required conditions. The Company's
adoption of this Update did not materially affect the Company's
financial position or results of operations, except that the
investment amortization expense, which previously was included in
Other Non-interest Expense in the Consolidated Statements of
Income, is now included in Provision for Income Taxes in the
Consolidated Statements of Income presented. As a result, there was
no change in Net Income for the periods covered in this
release. In addition, there was no cumulative effect
adjustment to Retained Earnings.
For the three months and year ended December 31, 2014, the Company's effective tax
rate was 23.1% and 24.0%, respectively, which was lower than the
statutory federal tax rate of 35%, due primarily to the effects of
the tax credits utilized and to tax-exempt investments and
tax-exempt loans which reduced the Company's effective tax rate.
In future periods, the Company expects its effective tax rate
typically will be 20-25% of pre-tax net income, assuming it
continues to maintain or increase its use of investment tax
credits. The Company's effective tax rate may fluctuate as it
is impacted by the level and timing of the Company's utilization of
tax credits and the level of tax-exempt investments and loans and
the overall level of pretax income.
CAPITAL
As of December 31, 2014, total
stockholders' equity was $419.7
million (10.6% of total assets). As of December 31, 2014, common stockholders' equity
was $361.8 million (9.2% of total
assets), equivalent to a book value of $26.30 per common share. Total
stockholders' equity at December 31,
2013, was $380.7 million
(10.7% of total assets). As of December 31,
2013, common stockholders' equity was $322.8 million (9.1% of total assets), equivalent
to a book value of $23.60 per common
share. At December 31, 2014,
the Company's tangible common equity to total assets ratio was
9.0%, compared to 8.9% at December 31,
2013. The tangible common equity to total risk-weighted
assets ratio was 11.0% and 12.3% at December
31, 2014, and December 31,
2013, respectively.
As of December 31, 2014, the
Company's and the Bank's regulatory capital levels were categorized
as "well capitalized" as defined by the Federal banking agencies'
capital-related regulations. On a preliminary basis, as of
December 31, 2014, the Company's Tier
1 leverage ratio was 11.2%, Tier 1 risk-based capital ratio was
13.5%, and total risk-based capital ratio was 14.7%. On
December 31, 2014, and on a
preliminary basis, the Bank's Tier 1 leverage ratio was 9.5%, Tier
1 risk-based capital ratio was 11.6%, and total risk-based capital
ratio was 12.8%.
Great Southern Bancorp, Inc. is a participant in the U.S.
Treasury's Small Business Lending Fund (SBLF) program.
Through the SBLF, in August 2011, the
Company issued a new series of preferred stock totaling
$57.9 million to the Treasury.
The dividend rate on the SBLF preferred stock for the fourth
quarter of 2014 was 1.0% and the dividend rate will remain at 1.0%
until the first quarter of 2016.
PROVISION FOR LOAN LOSSES AND ALLOWANCE FOR LOAN LOSSES
Management records a provision for loan losses in an amount it
believes sufficient to result in an allowance for loan losses that
will cover current net charge-offs as well as risks believed to be
inherent in the loan portfolio of the Bank. The amount of provision
charged against current income is based on several factors,
including, but not limited to, past loss experience, current
portfolio mix, actual and potential losses identified in the loan
portfolio, economic conditions, and internal as well as external
reviews. However, the levels of non-performing assets,
potential problem loans, loan loss provisions and net charge-offs
fluctuate from period to period and are difficult to predict.
Weak economic conditions, higher inflation or interest rates, or
other factors may lead to increased losses in the portfolio and/or
requirements for an increase in loan loss provision expense.
Management maintains various controls in an attempt to limit future
losses, such as a watch list of possible problem loans, documented
loan administration policies and a loan review staff to review the
quality and anticipated collectability of the portfolio. Additional
procedures provide for frequent management review of the loan
portfolio based on loan size, loan type, delinquencies, on-going
correspondence with borrowers and problem loan work-outs.
Management determines which loans are potentially uncollectible, or
represent a greater risk of loss, and makes additional provisions
to expense, if necessary, to maintain the allowance at a
satisfactory level.
The provision for loan losses for the quarter ended December 31, 2014, decreased $2.8 million to $52,000 when compared with the quarter ended
December 31, 2013. The
provision for loan losses for the year ended December 31, 2014, decreased $13.2 million to $4.2
million when compared with the year ended December 31, 2013. At December 31, 2014, the allowance for loan losses
was $38.4 million, a decrease of
$1.7 million from December 31, 2013, and an increase of
$354,000 from September 30, 2014. Total net charge-offs
(recoveries) were $(302,000) and
$2.2 million for the quarters ended
December 31, 2014, and 2013,
respectively. For the quarter ended December 31, 2014, three relationships made up
$1.4 million of the total
$3.0 million in gross charge-offs,
and one relationship made up $2.5
million of the total $3.3
million in gross recoveries. Total net charge-offs
were $5.8 million and $17.9 million for the year ended December 31, 2014, and 2013, respectively.
The decrease in net charge-offs and provision for loan losses in
the three months and year ended December 31,
2014, were consistent with our expectations, as indicated in
previous filings. General market conditions, and more
specifically, real estate absorption rates and unique circumstances
related to individual borrowers and projects also contributed to
the level of provisions and charge-offs. As properties were
categorized as potential problem loans, non-performing loans or
foreclosed assets, evaluations were made of the values of these
assets with corresponding charge-offs as appropriate.
The Bank's allowance for loan losses as a percentage of total
loans, excluding loans covered by the FDIC loss sharing agreements,
was 1.34%, 1.92% and 1.43% at December 31,
2014, December 31, 2013, and
September 30, 2014, respectively.
Management considers the allowance for loan losses adequate to
cover losses inherent in the Company\'s loan portfolio at
December 31, 2014, based on recent
reviews of the Company's loan portfolio and current economic
conditions. If economic conditions were to deteriorate or
management's assessment of the loan portfolio were to change, it is
possible that additional loan loss provisions would be required,
thereby adversely affecting future results of operations and
financial condition.
ASSET QUALITY
Former TeamBank, Vantus Bank, Sun Security Bank and InterBank
non-performing assets, including foreclosed assets, are not
included in the totals or in the discussion of non-performing
loans, potential problem loans and foreclosed assets below due to
the respective loss sharing agreements with the FDIC, which cover
at least 80% of principal losses that may be incurred in these
portfolios for the applicable terms under the agreements. At
December 31, 2014, there were no
material non-performing assets that were previously covered, and
are now not covered, under the TeamBank or Vantus Bank
non-single-family loss sharing agreements. In addition,
FDIC-supported TeamBank, Vantus Bank, Sun Security Bank and
InterBank assets were initially recorded at their estimated fair
values as of their acquisition dates of March 20, 2009, September
4, 2009, October 7, 2011, and
April 27, 2012, respectively.
The overall performance of the FDIC-covered loan pools acquired in
2009, 2011 and 2012 has been better than original expectations as
of the acquisition dates. Former Valley Bank loans are also
excluded from the totals and the discussion of non-performing
loans, potential problem loans and foreclosed assets below,
although they are not covered by a loss sharing agreement.
Former Valley Bank loans are accounted for in pools and were
recorded at their fair value at the time of the acquisition as of
June 20, 2014; therefore, these loan
pools are analyzed rather than the individual loans.
The loss sharing agreement for the non-single-family portion of
the loans acquired in the TeamBank transaction ended on
March 31, 2014. Any additional
losses in that non-single-family portfolio will not be eligible for
loss sharing coverage. At this time, the Company does not expect
any material losses in this non-single-family loan portfolio, which
totaled $28.3 million at December 31, 2014.
The loss sharing agreement for the non-single-family portion of
the loans acquired in the Vantus Bank transaction ended on
September 30, 2014. Any
additional losses in that non-single-family portfolio will not be
eligible for loss sharing coverage. At this time, the Company
does not expect any material losses in this non-single-family loan
portfolio, which totaled $23.2
million, at December 31,
2014.
As a result of changes in balances and composition of the loan
portfolio, changes in economic and market conditions that occur
from time to time and other factors specific to a borrower's
circumstances, the level of non-performing assets will
fluctuate.
Non-performing assets, excluding FDIC-covered non-performing
assets and other FDIC-assisted acquired assets, at December 31, 2014, were $43.7 million, a decrease of $18.4 million from $62.1
million at December 31, 2013,
and a decrease of $3.3 million from
September 30, 2014.
Non-performing assets, excluding FDIC-covered non-performing assets
and other FDIC-assisted acquired assets, as a percentage of total
assets were 1.11% at December 31,
2014, compared to 1.74% at December
31, 2013 and 1.20% at September
30, 2014.
Compared to December 31, 2013,
non-performing loans decreased $11.8
million to $8.1 million at
December 31, 2014, and foreclosed
assets decreased $6.6 million to
$35.5 million at December 31, 2014. Compared to September 30, 2014, non-performing loans
decreased $3.9 million to
$8.1 million at December 31, 2014, and foreclosed assets
increased $552,000 to $35.5 million at December
31, 2014. Commercial real estate loans comprised
$4.5 million, or 55.4%, of the total
of $8.1 million of non-performing
loans at December 31, 2014, an
increase of $1.5 million from
September 30, 2014.
Non-performing one-to four-family residential loans comprised
$1.7 million, or 20.4%, of the total
non-performing loans at December 31,
2014, a decrease of $3.3
million from September 30,
2014. Non-performing consumer loans increased $336,000 in the three months ended December 31, 2014, and were $1.1 million, or 13.7%, of total non-performing
loans at December 31, 2014.
Non-performing commercial business loans decreased $1.0 million in the three months ended
December 31, 2014, and were
$598,000, or 7.3%, of total
non-performing loans at December 31,
2014. Non-performing construction and land development loans
decreased $1.5 million in the three
months ended December 31, 2014, and
were $255,000, or 3.1%, of total
non-performing loans at December 31,
2014.
Compared to December 31, 2013,
potential problem loans decreased $2.0
million to $25.0 million at
December 31, 2014. Compared to
September 30, 2014, potential problem
loans increased $3.9 million, or
18.5%. This increase was due to the addition of $7.2 million of loans to potential problem loans,
partially offset by $2.9 million in
loans transferred to the non-performing category and $413,000 in payments.
Activity in the non-performing loans category during the quarter
ended December 31, 2014, was as
follows:
|
Beginning
Balance,
October
1
|
Additions to
Non-Performing
|
Removed from
Non-Performing
|
Transfers
to Potential
Problem Loans
|
Transfers to
Foreclosed Assets
|
Charge-Offs
|
Payments
|
Ending
Balance,
December 31
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
One- to four-family
construction
|
$
223
|
$
—
|
$
—
|
$
—
|
$
(223)
|
$
—
|
$
—
|
$
—
|
Subdivision
construction
|
1,223
|
484
|
—
|
—
|
(1,456)
|
(99)
|
(152)
|
—
|
Land
development
|
266
|
—
|
—
|
—
|
(2)
|
—
|
(9)
|
255
|
Commercial
construction
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
One- to four-family
residential
|
4,949
|
318
|
—
|
(542)
|
(2,582)
|
(339)
|
(139)
|
1,665
|
Other
residential
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Commercial real
estate
|
2,967
|
2,858
|
(377)
|
—
|
—
|
(921)
|
(15)
|
4,512
|
Commercial
business
|
1,632
|
194
|
(402)
|
—
|
—
|
(443)
|
(383)
|
598
|
Consumer
|
781
|
457
|
—
|
—
|
(14)
|
(76)
|
(31)
|
1,117
|
|
|
|
|
|
|
|
|
|
Total
|
$
12,041
|
$
4,311
|
$
(779)
|
$
(542)
|
$
(4,277)
|
$
(1,878)
|
$
(729)
|
$
8,147
|
|
|
|
|
|
|
|
|
|
At December 31, 2014, the
non-performing commercial real estate category included eight
loans, one of which was transferred from potential problem loans
during the current quarter. The largest relationship in this
category, which was added in the current quarter, totaled
$2.0 million, or 45.1% of the total
category, and is collateralized by office buildings in Southeast
Missouri. The second largest relationship in this category,
which was added in a previous quarter, totaled $1.9 million, or 42.6%, of the total category,
and is collateralized by a theater property in Branson, Mo. The non-performing one- to
four-family residential category included 37 loans, eight of which
were added during the quarter. There were 20 properties in
the one-to four-family category which were transferred to
foreclosed assets during the quarter. Of those, 15
properties, totaling $2.1 million,
related to two borrowers. The non-performing consumer
category included 74 loans, 37 of which were added during the
quarter. The non-performing commercial business category
included nine loans, two of which were added during the
quarter.
Activity in the potential problem loans category during the
quarter ended December 31, 2014, was
as follows:
|
Beginning
Balance,
October
1
|
Additions to
Potential Problem
|
Removed from
Potential Problem
|
Transfers to
Non-Performing
|
Transfers to
Foreclosed Assets
|
Charge-Offs
|
Payments
|
Ending
Balance,
December 31
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
One- to four-family
construction
|
$
—
|
$ 1,312
|
$
—
|
$
—
|
$
—
|
$
—
|
$
—
|
$ 1,312
|
Subdivision
construction
|
735
|
3,528
|
—
|
—
|
(2)
|
—
|
(9)
|
4,252
|
Land
development
|
5,857
|
—
|
—
|
—
|
—
|
—
|
—
|
5,857
|
Commercial
construction
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
One- to four-family
residential
|
1,759
|
542
|
—
|
(72)
|
—
|
—
|
(323)
|
1,906
|
Other
residential
|
1,956
|
—
|
—
|
—
|
—
|
—
|
—
|
1,956
|
Commercial real
estate
|
9,676
|
1,248
|
—
|
(2,858)
|
—
|
—
|
(23)
|
8,043
|
Commercial
business
|
823
|
618
|
—
|
—
|
—
|
—
|
(6)
|
1,435
|
Consumer
|
266
|
—
|
—
|
—
|
—
|
—
|
(52)
|
214
|
|
|
|
|
|
|
|
|
|
Total
|
$
21,072
|
$
7,248
|
$
—
|
$
(2,930)
|
$
(2)
|
$
—
|
$
(413)
|
$
24,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2014, the
commercial real estate category of potential problem loans included
eight loans, two of which were added during the current
quarter. The largest relationship in this category, which was
added during a previous quarter, had a balance of $4.9 million, or 60.2% of the total
category. The relationship is collateralized by properties
located near Branson, Mo. The land
development category of potential problem loans included three
loans, all of which were added during previous quarters. The
largest relationship in this category totaled $3.8 million, or 65.6% of the total category, and
is collateralized by property in the Branson, Mo., area. The subdivision
construction category of potential problem loans included eight
loans, four of which were added during the current quarter.
The largest relationship in this category, which is made up of four
loans which were added during the current quarter, had a balance
totaling $3.5 million, or 83.0% of
the total category, and is collateralized by property in southwest
Missouri. The loans in this
relationship which were added during the current quarter were all
originated prior to 2008. The other residential category of
potential problem loans included one loan which was added in a
previous quarter, and is collateralized by properties located in
the Branson, Mo., area. The
one- to four-family residential category of potential problem loans
included 23 loans, six of which were added during the current
quarter. All of the loans added during the quarter in this
category were transfers from non-performing loans due to the
improved condition of the borrower. The commercial business
category of potential problem loans included nine loans, four of
which were added in the current quarter, of which three were part
of the same relationship. The largest relationship in this
category had a balance of $660,000,
or 46.0% of the total category, and is collateralized primarily by
automobiles. The one-to four-family construction category of
potential problem loans included three loans, all of which were to
the same borrower, and all of which were added during the current
quarter. These loans were collateralized by property in
southwest Missouri and were all
originated prior to 2008. These loans are the same borrower
relationship as the $3.5 million
relationship added in the subdivision construction category
discussed above.
Activity in foreclosed assets, excluding $5.6 million in foreclosed assets covered by FDIC
loss sharing agreements, $879,000 in
foreclosed assets previously covered by FDIC loss sharing
agreements, $778,000 in foreclosed
assets related to Valley Bank and not covered by loss sharing
agreements, $87,000 of other assets
related to acquired loans, and $2.9
million in properties which were not acquired through
foreclosure, during the quarter ended December 31, 2014, was as follows:
|
Beginning
Balance,
October
1
|
Additions
|
ORE
Sales
|
Capitalized
Costs
|
ORE
Write-Downs
|
Ending
Balance, December 31
|
|
(In
thousands)
|
|
|
|
|
|
|
|
One-to four-family
construction
|
$
—
|
$
223
|
$
—
|
$
—
|
$
—
|
$
223
|
Subdivision
construction
|
9,778
|
1,456
|
(534)
|
—
|
(843)
|
9,857
|
Land
development
|
17,752
|
2
|
(63)
|
—
|
(523)
|
17,168
|
Commercial
construction
|
—
|
—
|
—
|
—
|
—
|
—
|
One- to four-family
residential
|
1,564
|
2,582
|
(640)
|
—
|
(153)
|
3,353
|
Other
residential
|
3,577
|
—
|
(641)
|
—
|
(311)
|
2,625
|
Commercial real
estate
|
1,779
|
—
|
—
|
—
|
(147)
|
1,632
|
Commercial
business
|
59
|
—
|
—
|
—
|
—
|
59
|
Consumer
|
480
|
871
|
(727)
|
—
|
—
|
624
|
|
|
|
|
|
|
|
Total
|
$
34,989
|
$
5,134
|
$
(2,605)
|
$
—
|
$
(1,977)
|
$
35,541
|
|
|
|
|
|
|
|
At December 31, 2014, the land
development category of foreclosed assets included 33 properties,
the largest of which was located in northwest Arkansas and had a balance of $2.3 million, or 13.3% of the total
category. Of the total dollar amount in the land development
category of foreclosed assets, 41.4% and 34.7% was located in
northwest Arkansas and in the
Branson, Mo., area, respectively,
including the largest property previously mentioned. The
subdivision construction category of foreclosed assets included 31
properties, the largest of which was located in the St. Louis, Mo. metropolitan area and had a
balance of $1.7 million, or 17.7% of
the total category. One relationship, which was originated in
2006, made up $1.3 million of the
$1.5 million of additions in the
subdivision construction category, and is collateralized by
property near the Kansas City, Mo.
metropolitan area. Of the total dollar amount in the
subdivision construction category of foreclosed assets, 18.2% and
15.5% is located in Branson, Mo.
and Springfield, Mo.,
respectively. The one-to four-family residential category of
foreclosed assets included 24 properties, of which the largest
relationship, with nine properties in the southwest Missouri area, had a balance of $1.2 million, or 34.8% of the total
category. These properties were all added in the fourth
quarter of 2014. In addition, six properties totaling
$936,000 to one borrower were added
during the quarter. These properties were collateralized by
property in the Branson, Mo.,
area. All of the properties discussed above which were added
during the current quarter in the one-to four-family category were
originally financed by the Bank prior to 2008. Of the total
dollar amount in the one-to- four-family category of foreclosed
assets, 40.4% is located in Branson, Mo. The other residential
category of foreclosed assets included 12 properties, 10 of which
were all part of the same condominium community, which was located
in Branson, Mo. and had a balance
of $1.8 million, or 68.1% of the
total category. Of the total dollar amount in the other
residential category of foreclosed assets, 86.7% was located in the
Branson, Mo., area, including the
largest properties previously mentioned.
BUSINESS INITIATIVES
In June 2014, Great Southern Bank
entered into a purchase and assumption agreement (with no loss
sharing agreement) with the Federal Deposit Insurance Corporation
to acquire certain loans and other assets and assume all of the
deposits of Valley Bank, a full-service bank headquartered in
Moline, Ill., with significant
operations in Iowa. The Company
converted the Valley Bank operational systems into Great Southern's
systems on October 24, 2014, which
enables all Great Southern and former Valley Bank customers to
conduct business at any banking center throughout the Great
Southern six-state retail franchise. Upon completion of the
operational conversion, back office operations were consolidated.
At the time of the acquisition, Valley Bank operated 13 locations –
six locations in the Quad Cities market area and seven in central
Iowa, primarily in the
Des Moines market area. In
September, the Company closed two former Valley Bank locations –
one in Moline, Ill., and one in
Altoona, Iowa. On October 27, 2014, a new banking center in
Ames, Iowa, opened for business,
replacing the leased former Valley Banking office in that
market.
Other banking center network initiatives:
- Construction of a full-service banking center in Columbia, Mo., is well underway. The new
banking center site is located at 3200 S. Providence Road and is
expected to be open by the end of the first quarter of 2015.
- In mid-2014, the Company purchased a 20,000-square-foot former
bank office building in Leawood,
Johnson County, Kan., a suburb of
the Kansas City metropolitan
market area. Scheduled to be open for business in mid-2015, the
office will house the Kansas City
commercial lending group, currently located in nearby Overland Park, Kan., and a retail banking
center. Additional space in the building is leased to tenants
unrelated to the Company.
To enhance customer service, the Company completed the
implementation of "instant issue" debit card technology in its
banking center network in the fourth quarter of 2014. Customers can
now conveniently receive a fully-activated debit card at the time
of their visit at all 108 banking centers.
Great Southern Bancorp, Inc. will hold its 26th Annual Meeting
of Shareholders at 10:00 a.m. CDT on
Wednesday, May 6, 2015, at the Great
Southern Operations Center, 218 S. Glenstone, Springfield, Mo. Holders of Great Southern
Bancorp, Inc. common stock at the close of business on the record
date, February 27, 2015, can vote at
the annual meeting, either in person or by proxy. Material to be
presented at the Annual Meeting will be available on the Company's
website, www.GreatSouthernBank.com, prior to the start of the
meeting.
www.GreatSouthernBank.com
Forward-Looking Statements
When used in documents filed or furnished by the Company with
the Securities and Exchange Commission (the "SEC"), in the
Company's press releases or other public or stockholder
communications, and in oral statements made with the approval of an
authorized executive officer, the words or phrases "will likely
result," "are expected to," "will continue," "is anticipated,"
"estimate," "project," "intends" or similar expressions are
intended to identify "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties,
including, among other things, (i) non-interest expense reductions
from Great Southern's banking center consolidations might be less
than anticipated and the costs of the consolidation and impairment
of the value of the affected premises might be greater than
expected; (ii) expected cost savings, synergies and other benefits
from the Company's merger and acquisition activities, including but
not limited to the recently completed Valley Bank FDIC-assisted
transaction, might not be realized within the anticipated time
frames or at all, and costs or difficulties relating to integration
matters, including but not limited to customer and employee
retention, might be greater than expected; (iii) changes in
economic conditions, either nationally or in the Company's market
areas; (iv) fluctuations in interest rates; (v) the risks of
lending and investing activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for loan losses; (vi)
the possibility of other-than-temporary impairments of securities
held in the Company's securities portfolio; (vii) the Company's
ability to access cost-effective funding; (viii) fluctuations in
real estate values and both residential and commercial real estate
market conditions; (ix) demand for loans and deposits in the
Company's market areas; (x) legislative or regulatory changes that
adversely affect the Company's business, including, without
limitation, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and its implementing regulations, and the overdraft
protection regulations and customers' responses thereto; (xi)
monetary and fiscal policies of the Federal Reserve Board and the
U.S. Government and other governmental initiatives affecting the
financial services industry; (xii) results of examinations of the
Company and Great Southern by their regulators, including the
possibility that the regulators may, among other things, require
the Company to increase its allowance for loan losses or to
write-down assets; (xiii) the uncertainties arising from the
Company's participation in the Small Business Lending Fund program,
including uncertainties concerning the potential future redemption
by us of the U.S. Treasury's preferred stock investment under the
program, including the timing of, regulatory approvals for, and
conditions placed upon, any such redemption; (xiv) costs and
effects of litigation, including settlements and judgments; and
(xv) competition. The Company wishes to advise readers that the
factors listed above and other risks described from time to time in
documents filed or furnished by the Company with the SEC could
affect the Company's financial performance and could cause the
Company's actual results for future periods to differ materially
from any opinions or statements expressed with respect to future
periods in any current statements.
The Company does not undertake-and specifically declines any
obligation- to publicly release the result of any revisions which
may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
The following tables set forth certain selected consolidated
financial information of the Company at and for the periods
indicated. Financial data for all periods is unaudited.
In the opinion of management, all adjustments, which consist only
of normal recurring accruals, necessary for a fair presentation of
the results for and at such unaudited periods have been
included. The results of operations and other data for the
three months and years ended December 31,
2014, and 2013, and the three months ended September 30, 2014, are not necessarily
indicative of the results of operations which may be expected for
any future period.
|
December
31,
|
December
31,
|
|
2014
|
2013
|
Selected Financial
Condition Data:
|
(In
thousands)
|
|
|
|
Total
assets
|
$
3,951,334
|
$ 3,560,250
|
Loans receivable,
gross
|
3,080,559
|
2,482,641
|
Allowance for loan
losses
|
38,435
|
40,116
|
Other real estate
owned, net
|
45,838
|
53,514
|
Available-for-sale
securities, at fair value
|
365,506
|
555,281
|
Deposits
|
2,990,840
|
2,808,626
|
Total
borrowings
|
514,014
|
343,795
|
Total stockholders'
equity
|
419,745
|
380,698
|
Common stockholders'
equity
|
361,802
|
322,755
|
Non-performing assets
(excluding FDIC-assisted transaction assets)
|
43,688
|
62,051
|
|
Three Months
Ended
|
Year
Ended
|
Three Months
Ended
|
|
December
31,
|
December
31,
|
September
30,
|
|
2014
|
2013
|
2014
|
2013
|
2014
|
Selected Operating
Data:
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
Interest
income
|
$
49,077
|
$
44,939
|
$ 183,362
|
$ 178,795
|
$
47,607
|
Interest
expense
|
3,558
|
4,445
|
15,801
|
19,203
|
3,501
|
Net interest
income
|
45,519
|
40,494
|
167,561
|
159,592
|
44,106
|
Provision for loan
losses
|
52
|
2,813
|
4,151
|
17,386
|
945
|
Non-interest
income
|
1,397
|
(864)
|
14,731
|
5,315
|
1,778
|
Non-interest
expense
|
31,169
|
26,828
|
120,859
|
105,618
|
29,398
|
Provision for income
taxes
|
3,628
|
1,316
|
13,753
|
8,174
|
3,951
|
Net income
|
$
12,067
|
$
8,673
|
$
43,529
|
$
33,729
|
$
11,590
|
Net income available
to
common
shareholders
|
$
11,922
|
$
8,528
|
$
42,950
|
$
33,150
|
$
11,445
|
|
|
|
|
|
|
|
At or For the
Three Months Ended
|
At or For the
Year
Ended
|
At or For the
Three Months Ended
|
|
December
31,
|
December
31,
|
September
30,
|
|
2014
|
2013
|
2014
|
2013
|
2014
|
Per Common
Share:
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
Net income (fully
diluted)
|
$
0.86
|
$
0.62
|
$
3.10
|
$
2.42
|
$
0.83
|
Book value
|
$
26.30
|
$
23.60
|
$
26.30
|
$
23.60
|
$
25.62
|
|
|
|
|
|
|
Earnings
Performance Ratios:
|
|
|
|
|
|
Annualized return on
average assets
|
1.23%
|
0.97%
|
1.14%
|
0.89%
|
1.18%
|
Annualized return on
average common stockholders'
equity
|
13.43%
|
10.75%
|
12.63%
|
10.52%
|
13.29%
|
Net interest
margin
|
5.08%
|
5.02%
|
4.84%
|
4.70%
|
4.91%
|
Average interest rate
spread
|
4.99%
|
4.90%
|
4.74%
|
4.60%
|
4.83%
|
Efficiency
ratio
|
66.44%
|
67.70%
|
66.30%
|
64.05%
|
64.07%
|
Non-interest expense
to average total assets
|
3.18%
|
3.00%
|
3.16%
|
2.79%
|
2.99%
|
|
|
|
|
|
|
Asset Quality
Ratios:
|
Allowance for loan
losses to period-end loans (excluding covered loans)
|
1.34%
|
1.92%
|
1.34%
|
1.92%
|
1.43%
|
Non-performing assets
to period-end assets
|
1.11%
|
1.74%
|
1.11%
|
1.74%
|
1.20%
|
Non-performing loans
to period-end loans
|
0.26%
|
0.80%
|
0.26%
|
0.80%
|
0.40%
|
Annualized net
charge-offs (recoveries) to average loans
|
(0.04)%
|
0.42%
|
0.24%
|
0.91%
|
0.15%
|
Great Southern
Bancorp, Inc. and Subsidiaries
Consolidated
Statements of Financial Condition
(In thousands,
except number of shares)
|
|
|
December
31,
2014
|
December
31,
2013
|
September
30,
2014
|
Assets
|
|
|
|
|
|
|
|
Cash
|
$
109,052
|
$
96,167
|
$
94,682
|
Interest-bearing
deposits in other financial institutions
|
109,595
|
131,758
|
126,704
|
Cash and cash
equivalents
|
218,647
|
227,925
|
221,386
|
|
|
|
|
Available-for-sale
securities
|
365,506
|
555,281
|
425,156
|
Held-to-maturity
securities
|
450
|
805
|
450
|
Mortgage loans held
for sale
|
14,579
|
7,239
|
30,361
|
Loans receivable (1),
net of allowance for loan losses of $38,435 – December 2014;
$40,116 - December 2013 and $38,081 – September
2014
|
3,038,848
|
2,439,530
|
2,921,310
|
FDIC indemnification
asset
|
44,334
|
72,705
|
51,603
|
Interest
receivable
|
11,219
|
11,408
|
11,214
|
Prepaid expenses and
other assets
|
60,452
|
72,904
|
63,334
|
Other real estate
owned (2), net
|
45,838
|
53,514
|
43,762
|
Premises and
equipment, net
|
124,841
|
104,534
|
120,891
|
Goodwill and other
intangible assets
|
7,508
|
4,583
|
7,945
|
Federal Home Loan Bank
stock
|
16,893
|
9,822
|
12,013
|
Current and deferred
income taxes
|
2,219
|
—
|
—
|
|
|
|
|
Total
Assets
|
$
3,951,334
|
$
3,560,250
|
$
3,909,425
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
Deposits
|
$ 2,990,840
|
$
2,808,626
|
$ 3,071,170
|
Federal Home Loan Bank
advances
|
271,641
|
126,757
|
190,664
|
Securities sold under
reverse repurchase agreements with customers
|
168,993
|
134,981
|
171,828
|
Structured repurchase
agreements
|
—
|
50,000
|
—
|
Short-term
borrowings
|
42,451
|
1,128
|
1,155
|
Subordinated debentures
issued to capital trust
|
30,929
|
30,929
|
30,929
|
Accrued interest
payable
|
1,067
|
1,099
|
1,024
|
Advances from borrowers
for taxes and insurance
|
4,929
|
3,721
|
7,744
|
Accounts payable and
accrued expenses
|
20,739
|
18,502
|
22,258
|
Current and deferred
income taxes
|
—
|
3,809
|
3,603
|
Total
Liabilities
|
3,531,589
|
3,179,552
|
3,500,375
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
Capital
stock
|
|
|
|
Serial preferred stock
- SBLF, $.01 par value; authorized 1,000,000 shares; issued and
outstanding December 2014, December 2013 and September 2014 –
57,943 shares
|
57,943
|
57,943
|
57,943
|
Common stock, $.01 par
value; authorized 20,000,000 shares; issued and outstanding
December 2014 – 13,754,806 shares; December 2013 – 13,673,709
shares and September 2014 – 13,706,950 shares
|
138
|
137
|
137
|
Additional
paid-in capital
|
22,345
|
19,567
|
21,486
|
Retained
earnings
|
332,283
|
300,589
|
322,529
|
Accumulated
other comprehensive gain
|
7,036
|
2,462
|
6,955
|
Total
Stockholders' Equity
|
419,745
|
380,698
|
409,050
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
$
3,951,334
|
$
3,560,250
|
$
3,909,425
|
|
|
|
|
|
|
(1)
|
At December 31, 2014,
December 31, 2013, and September 30, 2014, includes loans, net of
discounts, totaling $285.1 million, $386.2 million and $315.1
million, respectively, which are subject to FDIC support through
loss sharing agreements. As of December 31, 2014 and
September 30, 2014, also includes $28.3 million and $30.4 million,
respectively, of non- single-family loans acquired in the Team Bank
transaction, which are no longer covered by the FDIC loss sharing
agreement. As of December 31, 2014, also includes $23.2
million of non- single-family loans acquired in the Vantus Bank
transaction, which are no longer covered by the FDIC loss sharing
agreement. In addition, as of December 31, 2014 and September
30, 2014, includes $122.0 million and $152.5 million, respectively,
of loans, net of discounts, acquired in the Valley Bank transaction
on June 20, 2014, which are not covered by FDIC loss sharing
agreements.
|
(2)
|
At December 31, 2014,
December 31, 2013, and September 30, 2014, includes foreclosed
assets, net of discounts, totaling $5.6 million, $9.0 million and
$6.7 million, respectively, which are subject to FDIC support
through loss sharing agreements. At December 31, 2014, includes
$879,000 of non- single-family foreclosed assets related to the
Vantus Bank transaction, which are no longer covered by the FDIC
loss sharing agreement. At December 31, 2014, includes
$778,000, net of discounts, of foreclosed assets related to the
Valley Bank transaction, which are not covered by FDIC loss sharing
agreements. In addition, at December 31, 2014, includes $2.9
million of properties which were not acquired through foreclosure,
but are held for sale.
|
Great Southern
Bancorp, Inc. and Subsidiaries
Consolidated
Statements of Income
(In thousands,
except per share data)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
September
30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
Interest
Income
|
|
|
|
|
|
|
|
Loans
|
$
46,901
|
$
41,677
|
|
$ 172,569
|
$ 163,903
|
|
$
44,948
|
Investment securities
and other
|
2,176
|
3,262
|
|
10,793
|
14,892
|
|
2,659
|
|
49,077
|
44,939
|
|
183,362
|
178,795
|
|
47,607
|
Interest
Expense
|
|
|
|
|
|
|
|
Deposits
|
2,928
|
2,735
|
|
11,225
|
12,346
|
|
2,884
|
Federal Home Loan Bank
advances
|
464
|
1,004
|
|
2,910
|
3,972
|
|
461
|
Short-term borrowings
and repurchase agreements
|
17
|
567
|
|
1,099
|
2,324
|
|
13
|
Subordinated
debentures issued to capital trust
|
149
|
139
|
|
567
|
561
|
|
143
|
|
3,558
|
4,445
|
|
15,801
|
19,203
|
|
3,501
|
|
|
|
|
|
|
|
|
Net Interest
Income
|
45,519
|
40,494
|
|
167,561
|
159,592
|
|
44,106
|
Provision for Loan
Losses
|
52
|
2,813
|
|
4,151
|
17,386
|
|
945
|
Net Interest
Income After Provision for Loan Losses
|
45,467
|
37,681
|
|
163,410
|
142,206
|
|
43,161
|
|
|
|
|
|
|
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
Commissions
|
253
|
229
|
|
1,163
|
1,065
|
|
284
|
Service charges and
ATM fees
|
5,011
|
4,426
|
|
19,075
|
18,227
|
|
5,168
|
Net gains on loan
sales
|
1,433
|
679
|
|
4,133
|
4,915
|
|
1,543
|
Net realized gains on
sales and impairments of available-for-sale securities
|
1,176
|
2
|
|
2,139
|
243
|
|
321
|
Late charges and fees
on loans
|
573
|
479
|
|
1,400
|
1,264
|
|
248
|
Net change in interest
rate swap fair value
|
(122)
|
11
|
|
(345)
|
295
|
|
10
|
Initial gain
recognized on business acquisition
|
—
|
—
|
|
10,805
|
—
|
|
—
|
Accretion
(amortization) of income related to business
acquisitions
|
(7,807)
|
(7,360)
|
|
(27,868)
|
(25,260)
|
|
(6,463)
|
Other
income
|
880
|
670
|
|
4,229
|
4,566
|
|
667
|
|
1,397
|
(864)
|
|
14,731
|
5,315
|
|
1,778
|
|
|
|
|
|
|
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
14,661
|
13,135
|
|
56,032
|
52,468
|
|
14,884
|
Net occupancy
expense
|
6,755
|
5,208
|
|
23,541
|
20,658
|
|
6,172
|
Postage
|
1,006
|
861
|
|
3,578
|
3,315
|
|
935
|
Insurance
|
1,018
|
985
|
|
3,837
|
4,189
|
|
940
|
Advertising
|
713
|
566
|
|
2,404
|
2,165
|
|
522
|
Office supplies and
printing
|
414
|
353
|
|
1,464
|
1,303
|
|
393
|
Telephone
|
755
|
699
|
|
2,866
|
2,868
|
|
695
|
Legal, audit and other
professional fees
|
727
|
1,413
|
|
3,957
|
4,348
|
|
1,389
|
Expense on foreclosed
assets
|
2,462
|
589
|
|
5,636
|
4,068
|
|
982
|
Partnership tax
credit
|
420
|
556
|
|
1,720
|
2,108
|
|
420
|
Other operating
expenses
|
2,238
|
2,463
|
|
15,824
|
8,128
|
|
2,066
|
|
31,169
|
26,828
|
|
120,859
|
105,618
|
|
29,398
|
|
|
|
|
|
|
|
|
Income Before Income
Taxes
|
15,695
|
9,989
|
|
57,282
|
41,903
|
|
15,541
|
Provision (Credit)
for Income Taxes
|
3,628
|
1,316
|
|
13,753
|
8,174
|
|
3,951
|
Net
Income
|
12,067
|
8,673
|
|
43,529
|
33,729
|
|
11,590
|
|
|
|
|
|
|
|
|
Preferred Stock
Dividends
|
145
|
145
|
|
579
|
579
|
|
145
|
|
|
|
|
|
|
|
|
Net Income
Available to Common Shareholders
|
$
11,922
|
$
8,528
|
|
$
42,950
|
$
33,150
|
|
$
11,445
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three Months
Ended
|
|
December
31,
|
|
December
31,
|
|
September
30,
|
|
2014
|
2013
|
|
2014
|
2013
|
|
2014
|
Earnings Per Common
Share
|
|
|
|
|
|
|
|
Basic
|
$
0.87
|
$
0.63
|
|
$
3.14
|
$
2.46
|
|
$
0.84
|
Diluted
|
$
0.86
|
$
0.62
|
|
$
3.10
|
$
2.42
|
|
$
0.83
|
|
|
|
|
|
|
|
|
Dividends Declared
Per Common Share
|
$
0.20
|
$
0.18
|
|
$
0.80
|
$
0.72
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances, Interest Rates and
Yields
The following tables present, for the periods indicated, the
total dollar amounts of interest income from average
interest-earning assets and the resulting yields, as well as the
interest expense on average interest-bearing liabilities, expressed
both in dollars and rates, and the net interest margin.
Average balances of loans receivable include the average balances
of non-accrual loans for each period. Interest income on
loans includes interest received on non-accrual loans on a cash
basis. Interest income on loans includes the amortization of
net loan fees, which were deferred in accordance with accounting
standards. Fees included in interest income were $976,000 and $875,000 for the three months ended December 31, 2014, and 2013, respectively.
Fees included in interest income were $3.2
million and $3.4 million for
the year ended December 31, 2014, and
2013, respectively. Tax-exempt income was not calculated on a
tax equivalent basis. The table does not reflect any effect of
income taxes.
|
December 31,
2014(1)
|
Three Months
Ended
December 31, 2014
|
|
Three Months
Ended
December 31, 2013
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Yield/Rate
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Loans
receivable:
|
|
|
|
|
|
|
|
|
One- to
four-family residential
|
4.57%
|
$474,080
|
$10,634
|
8.90%
|
|
$445,700
|
$9,237
|
8.22%
|
Other
residential
|
4.56
|
399,037
|
5,256
|
5.23
|
|
341,321
|
6,015
|
6.99
|
Commercial
real estate
|
4.34
|
972,189
|
11,873
|
4.85
|
|
841,794
|
13,743
|
6.48
|
Construction
|
4.11
|
320,617
|
4,547
|
5.63
|
|
207,019
|
2,890
|
5.54
|
Commercial
business
|
4.68
|
321,898
|
6,088
|
7.50
|
|
251,968
|
3,387
|
5.33
|
Other
loans
|
5.09
|
491,579
|
7,857
|
6.34
|
|
316,981
|
5,764
|
7.21
|
Industrial
revenue bonds
|
5.22
|
45,691
|
646
|
5.61
|
|
45,377
|
641
|
5.61
|
|
|
|
|
|
|
|
|
|
Total loans
receivable
|
4.66
|
3,025,091
|
46,901
|
6.15
|
|
2,450,160
|
41,677
|
6.75
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
2.81
|
395,337
|
2,100
|
2.11
|
|
583,275
|
3,168
|
2.15
|
Other
interest-earning assets
|
0.21
|
136,578
|
76
|
0.22
|
|
166,578
|
94
|
0.22
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets
|
4.33
|
3,557,006
|
49,077
|
5.47
|
|
3,200,013
|
44,939
|
5.57
|
Non-interest-earning
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
104,864
|
|
|
|
91,919
|
|
|
Other
non-earning assets
|
|
255,510
|
|
|
|
289,064
|
|
|
Total assets
|
|
$3,917,380
|
|
|
|
$3,580,996
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Interest-bearing demand and
|
|
|
|
|
|
|
|
|
savings
|
0.19
|
$1,404,367
|
725
|
0.20
|
|
$1,288,091
|
685
|
0.21
|
Time
deposits
|
0.78
|
1,110,277
|
2,203
|
0.79
|
|
1,007,725
|
2,050
|
0.81
|
Total
deposits
|
0.45
|
2,514,644
|
2,928
|
0.46
|
|
2,295,816
|
2,735
|
0.47
|
Short-term
borrowings and repurchase agreements
|
0.08
|
186,120
|
17
|
0.04
|
|
194,755
|
567
|
1.16
|
Subordinated
debentures issued to
capital trust
|
1.80
|
30,929
|
149
|
1.91
|
|
30,929
|
139
|
1.79
|
FHLB
advances
|
0.75
|
210,803
|
464
|
0.87
|
|
127,297
|
1,004
|
3.13
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities
|
0.47
|
2,942,496
|
3,558
|
0.48
|
|
2,648,797
|
4,445
|
0.67
|
Non-interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
528,297
|
|
|
|
521,302
|
|
|
Other
liabilities
|
|
29,252
|
|
|
|
30,140
|
|
|
Total liabilities
|
|
3,500,045
|
|
|
|
3,200,239
|
|
|
Stockholders'
equity
|
|
417,335
|
|
|
|
380,757
|
|
|
Total liabilities and
stockholders' equity
|
|
$3,917,380
|
|
|
|
$3,580,996
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
3.86%
|
|
$45,519
|
4.99%
|
|
|
$40,494
|
4.90%
|
Net interest
margin*
|
|
|
|
5.08%
|
|
|
|
5.02%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
120.9%
|
|
|
|
120.8%
|
|
|
|
|
|
|
|
|
|
|
|
______________
|
*Defined as the
Company's net interest income divided by average total
interest-earning assets.
|
(1)
|
The yield/rate on
loans at December 31, 2014, does not include the impact of the
adjustments to the accretable yield (income) on loans acquired in
the FDIC-assisted transactions. See "Net Interest Income" for
a discussion of the effect on results of operations for the three
months ended December 31, 2014.
|
|
December 31,
2014(1)
|
Year Ended
December 31, 2014
|
|
Year Ended
December 31, 2013
|
|
|
Average
|
|
Yield/
|
|
Average
|
|
Yield/
|
|
Yield/Rate
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
Loans
receivable:
|
|
|
|
|
|
|
|
|
One- to
four-family residential
|
4.57%
|
$480,827
|
$41,343
|
8.60%
|
|
$472,127
|
$35,072
|
7.43%
|
Other
residential
|
4.56
|
375,754
|
21,268
|
5.66
|
|
312,362
|
23,963
|
7.67
|
Commercial
real estate
|
4.34
|
920,340
|
47,724
|
5.19
|
|
813,147
|
51,175
|
6.29
|
Construction
|
4.11
|
259,993
|
13,330
|
5.13
|
|
208,254
|
14,413
|
6.92
|
Commercial
business
|
4.68
|
296,318
|
17,722
|
5.98
|
|
249,647
|
14,505
|
5.81
|
Other
loans
|
5.09
|
404,375
|
28,593
|
7.07
|
|
297,852
|
21,947
|
7.37
|
Industrial
revenue bonds
|
5.22
|
46,499
|
2,589
|
5.57
|
|
50,155
|
2,828
|
5.64
|
|
|
|
|
|
|
|
|
|
Total loans
receivable
|
4.66
|
2,784,106
|
172,569
|
6.20
|
|
2,403,544
|
163,903
|
6.82
|
|
|
|
|
|
|
|
|
|
Investment
securities
|
2.81
|
495,155
|
10,467
|
2.11
|
|
717,806
|
14,459
|
2.01
|
Other
interest-earning assets
|
0.21
|
185,072
|
326
|
0.18
|
|
276,394
|
433
|
0.16
|
|
|
|
|
|
|
|
|
|
Total interest-earning
assets
|
4.33
|
3,464,333
|
183,362
|
5.29
|
|
3,397,744
|
178,795
|
5.26
|
Non-interest-earning
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
96,665
|
|
|
|
88,678
|
|
|
Other
non-earning assets
|
|
263,495
|
|
|
|
303,454
|
|
|
Total assets
|
|
$3,824,493
|
|
|
|
$3,789,876
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Interest-bearing demand and
|
|
|
|
|
|
|
|
|
savings
|
0.19
|
$1,429,893
|
3,088
|
0.22
|
|
$1,464,029
|
3,551
|
0.24
|
Time
deposits
|
0.78
|
1,042,563
|
8,137
|
0.78
|
|
1,073,110
|
8,795
|
0.82
|
Total
deposits
|
0.45
|
2,472,456
|
11,225
|
0.45
|
|
2,537,139
|
12,346
|
0.49
|
Short-term
borrowings and repurchase agreements
|
0.08
|
188,906
|
1,099
|
0.58
|
|
232,598
|
2,324
|
1.00
|
Subordinated
debentures issued to
capital trust
|
1.80
|
30,929
|
567
|
1.83
|
|
30,929
|
561
|
1.81
|
FHLB
advances
|
0.75
|
171,997
|
2,910
|
1.69
|
|
127,561
|
3,972
|
3.11
|
|
|
|
|
|
|
|
|
|
Total interest-bearing
liabilities
|
0.47
|
2,864,288
|
15,801
|
0.55
|
|
2,928,227
|
19,203
|
0.66
|
Non-interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
Demand
deposits
|
|
535,132
|
|
|
|
459,802
|
|
|
Other
liabilities
|
|
22,403
|
|
|
|
23,197
|
|
|
Total liabilities
|
|
3,421,823
|
|
|
|
3,411,226
|
|
|
Stockholders'
equity
|
|
402,670
|
|
|
|
378,650
|
|
|
Total liabilities and
stockholders' equity
|
|
$3,824,493
|
|
|
|
$3,789,876
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income:
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
3.86%
|
|
$167,561
|
4.74%
|
|
|
$159,592
|
4.60%
|
Net interest
margin*
|
|
|
|
4.84%
|
|
|
|
4.70%
|
Average
interest-earning assets to average interest-bearing
liabilities
|
|
120.9%
|
|
|
|
116.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
______________
|
*Defined as the
Company's net interest income divided by average total
interest-earning assets.
|
(1)
|
The yield/rate on
loans at December 31, 2014, does not include the impact of the
adjustments to the accretable yield (income) on loans acquired in
the FDIC-assisted transactions. See "Net Interest Income" for
a discussion of the effect on results of operations for the year
ended December 31, 2014.
|
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SOURCE Great Southern Bancorp, Inc.