Great Southern Bancorp (GSBC) in Springfield, Mo., bought a loan portfolio from an unnamed seller.
The $3.6 billion-asset company disclosed in a regulatory filing Friday that it successfully bid on $86.1 million of loans that were auctioned on Oct. 25, paying a 2.2% premium. The portfolio included 119 loans with collateral consisting mostly of multifamily real estate in Minnesota, Michigan, Wisconsin, Illinois and Indiana.
Great Southern disclosed that "numerous institutions" bid competitively on the portfolio, which has an average yield of roughly 4.3% based on maturity dates.
The company said its due diligence included having its own lending personnel subject the loans to an underwriting process that featured assessments of maturities concentration, geographic concentration and the mix of fixed- and adjustable-rate loans. Great Southern also reviewed "the enforceability and validity of the loan and collateral documents."
Senior members of the company's loan committee also inspected each of the properties used to secure the loans.