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the Nasdaq Bank Index, which was up 856% as of
based on what’s the flavor of the day for investors.
late June, according to Piper Sandler. The banking
We understand [CRE], and it’s worked well for us
company estimates it has generated a 19,952%
for the 33 years I’ve been here.”
total shareholder return, including reinvested dividends, from 1989 until the end of 2023.
But will that streak of winning touchdowns last?
While Joe Turner may not worry about
the day-to-day stock price, he’s focused
19,952%
on long-term shareholder returns
The former thrift turned commercial bank has a
and has an incentive to do so.
heavy concentration in commercial real estate,
Rex Copeland, the bank’s CFO,
or CRE. As of the second quarter 2024, 72% of
estimates that the Turner family
the loan portfolio was CRE, including multifamily
owns about 16% to 17% of out-
and construction loans, according to a bank pre-
standing shares, which the family
sentation. CRE represents more than 300% of its
and others say contributes to the
risk-based capital. Given higher interest rates and
bank’s success.
GREAT SOUTHERN BANCORP’S
TOTAL SHAREHOLDER
RETURN, 1989-2023
stress in commercial real estate, a sector that is
Other family members either work
heavily leveraged, some investors are shying away
for the bank or direct it from the board
from Great Southern and other CRE-heavy banks.
level. Joe’s sister, Julie Turner Brown, sits on
“People definitely are a little concerned about
the bank’s board and is a lawyer who works for
potential credit issues going forward for Great
the Springfield law firm Carnahan Evans. Her
Southern, just given their bigger commercial real
son, Turner Brown, is a CPA who works for Great
estate portfolio,” says John Rodis, director of
Southern’s lending department in St. Louis. And
banks and thrifts at the investment bank Janney
Joe’s son-in-law, Ben Whitlock, is a lender in
Montgomery Scott. “I’m not saying that’s going to
Springfield. “We have a lot to lose if the company
happen, but certainly their exposure stands out.”
doesn’t do well,” says William Turner, the 92-year-
The Turners say the bank has extensive expertise
old patriarch who serves as the bank’s chairman.
in real estate and a strong credit culture. Inves-
“Our net worth is tied up in the company.” Liesch
tors aren’t so sure. While many top performing
says Great Southern has been careful to manage
banks trade at a substantial premium, as of the
in a way that reduces the risks to their sharehold-
second quarter the bank was trading at about 1.3
ers and themselves, pulling back on loan growth
times price to tangible book value, according to
when it wasn’t a good time or was too compet-
S&P Global Market Intelligence. “Investors have
itive. “They manage the company fairly well and
painted the wider group with a broad brush,” says
are very thoughtful of the actions they take to
Piper Sandler Managing Director Andrew Liesch,
grow revenues,” he says. “When the opportuni-
who covers the stock. The company also reported
ties are there, they execute. And when they’re not
a compliance matter that cost about $600,000
there, they don’t.”
during the second quarter, but didn’t provide much
detail, saying costs are not expected to recur.
The bank has paid a consistent dividend, which
was $1.60 per share in 2023, and is buying back
stock. “Right now, it’s not a market that’s very
A Family Legacy
easy to grow in,” says Joe Turner. “We’ve been tak-
But Joe Turner doesn’t spend much time wor-
ing our excess earnings, or earnings less dividends,
rying about the day-to-day performance of the
and we’re paying it to shareholders. And to a big
bank’s stock. “From time to time, CRE will fall
extent, we’ve been reinvesting by buying back our
out of favor,” he says. “We don’t bounce around
stock at just a little above book value. And that’s
