Great Southern Bancorp, Inc.

What they do

The Company is a financial holding company and the parent of Great Southern Bank, a Missouri-chartered trust company headquartered in Springfield, Missouri. Through the Bank and its subsidiaries it offers banking and banking-related services, funded by retained earnings and dividends from Great Southern. At December 31, 2025, Bancorp had consolidated total assets of $5.60 billion, net loans of $4.36 billion and deposits of $4.48 billion.

Revenue drivers

• Net interest income (loans) — Interest and fees on loans was the largest revenue line at $285.5 million in 2025; net interest income totaled $200.2 million in 2025 versus $189.1 million in 2024.
• Deposit-funded spread — Deposits of $4.48 billion at year-end 2025 are the primary funding source; deposit interest expense fell to $94.1 million in 2025 from $109.7 million in 2024.
• Non-interest income — Fee lines include POS and ATM fee income and service charges ($13.2 million in 2025), overdraft and insufficient funds fees ($5.2 million), net gain on loan sales ($3.3 million) and commissions ($1.6 million).
• Investment securities — Investment securities and other interest income contributed $28.3 million in 2025, with $523.8 million of available-for-sale and $179.2 million of held-to-maturity securities at December 31, 2025.

Recent performance

Second quarter 2026 preliminary earnings were $1.43 per diluted common share ($15.8 million), down from $1.72 per share ($19.8 million) a year earlier, and were reduced by non-recurring consolidation expenses. Excluding those items, net income was $17.4 million and EPS was $1.57. Net interest income fell 2.9% to $49.5 million, while annualized net interest margin rose to 3.76% from 3.68%. Net loans decreased $49.1 million, or 1.1%, to $4.31 billion from $4.36 billion at December 31, 2025. Non-performing assets were $9.4 million, or 0.17% of total assets, up from $8.1 million at year-end 2025.

Strategy

In June 2026 the Company decided to consolidate operations of nine banking centers into nearby Great Southern locations, recognizing a $1.4 million valuation allowance on four owned properties. The Company expects the aggregate selling price of the affected properties to exceed their carrying value, with no losses expected on the other five. Management highlights a capital position significantly above regulatory "well-capitalized" thresholds and secured borrowing availability of $1.23 billion at the FHLBank and $319.6 million at the Federal Reserve Bank at June 30, 2026. The financial holding company structure is described as providing flexibility to diversify through subsidiaries or acquisitions, though the Company states it has not yet chosen to offer services beyond those of the Bank.

Risks

• Net interest income pressure — Second quarter 2026 net interest income declined 2.9% year over year, largely due to completion in October 2025 of accounting recognition of income from a previously terminated interest rate swap.
• Loan balance contraction — Net loans fell 1.1% from December 31, 2025 to June 30, 2026, driven by declines in commercial real estate and other residential (multi-family) loans, with increased prepayment activity in the second quarter of 2026.
• Credit quality deterioration — Non-performing assets rose to $9.4 million (0.17% of total assets) at June 30, 2026 from $8.1 million (0.15%) at December 31, 2025, and non-performing assets plus potential problem loans totaled $10.6 million.
• Concentration in branch markets — Operations are concentrated in southern and central Missouri, the Kansas City and St. Louis areas, eastern Kansas, northwestern Arkansas, the Minneapolis area and Iowa, exposing results to economic conditions in those markets.

Outlook

The earnings release does not provide explicit forward guidance beyond noting the recent branch consolidation and its expected financial effects. Management said the Company currently does not expect losses on the sale of the five branch properties not subject to the $1.4 million valuation allowance, and expects the eventual aggregate selling price of all affected properties to exceed carrying value. The Company also cautioned that it has no assurances of future payments or amounts on the one commercial relationship that provided unbooked interest income in the second quarter.