Great Southern Bancorp Q3 EPS drops on hedge accounting charge

Great Southern Bancorp

Wed 23:26

Overview
Regional bank's preliminary Q3 EPS fell yr/yr due to non-cash hedge accounting adjustment
Net interest income declined 1% yr/yr, mainly from lower swap-related income and loan balances
Company repurchased 159,212 shares and approved new buyback authorization for up to 1 mln shares

Outlook
Company expects $520,000 in additional interest income per qtr through Q1 2028
Company expects net interest margin to decline modestly due to narrower spread on new securities
Company expects lower non-interest expense run-rate starting Q4 2026

Result Drivers
HEDGE ACCOUNTING ADJUSTMENTS - Co said non-cash hedge accounting adjustments reduced Q3 earnings
SWAP INCOME AND LOAN BALANCES - Net interest income fell due to lower income from terminated swap and reduced loan balances
LOAN PAYOFFS - Higher commercial real estate and multi-family loan payoffs contributed to decline in net loans

Company press release: ID:nGNX4sw3TD

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$1.27
 
Q3 Net Income
$14.009 mln
 
Q3 Net Interest Income
 
$50.27 mln
 
Q3 Provision (credit) for credit losses on loans and unfunded commitments
 
$674,000
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Great Southern Bancorp Inc is $76.50, about 2.7% below its October 20 closing price of $78.59
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)