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“We don’t bounce around based on what’s the flavor of the day for
investors. We understand [CRE], and it’s worked well for us for the
33 years I’ve been here.”
Joe Turner / Great Southern Bancorp
mitments such as lines of credit fell by about one-
proach to making these loans was
third over the last few years, which accounts for
done in a manner where those
the lower provisioning. Plus, the bank didn’t have
losses will be limited. Giv-
much in the way of loan losses last year, with 20
en their track record, they
basis points of nonperforming assets to loans and
should probably do pretty
other real estate owned, according to Ranking-
good.”
Banking. The median for the 300 largest publicly
traded banks was 41 basis points.
Still, Rodis projects the bank will continue to
The management team
has no plans to decrease its
focus on real estate. “It’s an
72%
PERCENTAGE OF GREAT
SOUTHERN’S LOAN PORTFOLIO IN
CRE, INCLUDING
MULTIFAMILY AND
CONSTRUCTION LOANS
see profitability decline and will achieve 101 basis
asset class that’s battle tested
points return on average assets in 2024, in line
for us,” Turner says. At the age
with similar banks. “Are they a very good, solid
of 60, he’s contemplating who might
bank? Yes,” he says. “So far, it’s worked out. Does
replace him as CEO. Not surprisingly, he
that mean it continues? We’ll have to see.”
thinks about family. “I intend to work about an-
Rodis and other analysts expect credit struggles
other 10 years, though I hope to remain involved
ahead as CRE loans mature and renew at higher
with Great Southern in some capacity for a lot
rates. But Great Southern is betting its superior
longer than that,” he says. “If [nephew] Turner
underwriting will minimize losses. Loan-to-value
continues to like it and continues to advance and
ratios for office and retail range from 49% to
show an aptitude for it, which he’s certainly doing
64% on average, according to a bank presentation.
thus far, maybe he would eventually take over. Of
Ninety-six percent of the multifamily portfolio has
course that would be for the board to decide when
a loan-to-value ratio at or below 75%, with 23%
the time comes.”
below 50% LTV. Lower LTVs generally equate to
He continues, “We’re a lot more interested in
fewer loan losses, because even if a problem loan
where we’ll be in the long term than what our
goes into foreclosure, the bank is less exposed.
profitability is going to be in the third quarter of
“They have a lot of wiggle room to recapture that
2024.”
loan without losing any money,” DelMonte says.
“You hope that the underlying strategy and ap-
Naomi Snyder is editor-in-chief of Bank Director
