Great Southern Bancorp Q3 EPS drops on hedge accounting charge

By Reuters News


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:


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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