Great Southern Bancorp, Inc. (NASDAQ:GSBC) Q2 2023 Earnings Call Transcript

Damon DelMonte: Okay. And so if loan growth is going to be modest in the coming quarters, taking into account the potential for more relief from the unfunded side and lack of need to reserve for new growth, I mean do you expect to take any meaningful provision in the back half of the year?

Joseph Turner: I mean it’s – it would be based on – obviously, we feel like we’re adequately reserved right now. So all other things being equal, I would say no, if nothing changes from here.

Rex Copeland: If we have charge-offs – significant charge-offs that would change the calculus on that a little bit…

Joseph Turner: Or possibly if the economy changed that could…

Rex Copeland: We have to factor that outlook into our analysis when we set our loan loss reserves, our credit reserves. So…

Joseph Turner: Yes. But based on where we sit right now, obviously, we feel like our reserve is at the right number.

Damon DelMonte: Okay. And then I guess, lastly, could you just provide a little bit more color on the office loan, it’s in Missouri. I know you noted that. And no reserve was taken against that loan? Is that correct?

Joseph Turner: No, we do have. We have a reserve allocated to it. I mean, it’s a well-located office building. It’s occupied. I don’t want to get to – I mean we have soft queue – I don’t want to talk in a public forum about sort of borrower specific aspects. But it seems like it’s going to be best to transition this asset to a new customer, a new customer going to be able to do better things with it. And I mean, we feel like there could be some charge-off Damon, but we think we’ve got that allocated in the reserve for it if there is that. And we don’t feel like it’s reflective of the rest of our office portfolio, certainly, kind of a one-off situation.

Damon DelMonte: Got it. Okay. Great. That’s all I had. Thanks.

Operator: Thank you. And I’m not showing any further questions in the queue. I’d like to turn the call back over to Joe Turner, President and CEO, for closing remarks.

Joseph Turner: All right. Very good. We appreciate the questions. We appreciate everybody joining us today, and we’ll look forward to talking to you after our third quarter earnings. Everybody, have a great day. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.