Great Southern Bancorp, Inc. Reports Preliminary Second Quarter Earnings of $1.43 Per Diluted Common Share
Rhea-AI Summary
Great Southern Bancorp (NASDAQ: GSBC) reported preliminary second quarter 2026 earnings of $1.43 per diluted share and net income of $15.8 million, down from $1.72 and $19.8 million a year earlier, reflecting $2.1 million of non-recurring expenses from branch consolidations and workforce reductions.
Excluding these items, earnings were $1.57 per share and net income was $17.4 million. Net interest income declined 2.9% to $49.5 million, mainly due to the end of income recognition on a terminated interest rate swap, while net interest margin improved to 3.76%. Asset quality remained strong, with non-performing assets at $9.4 million, or 0.17% of total assets. The company announced consolidation of nine banking centers and other reductions, expecting over $2 million in increased annual pre-tax income from efficiencies beginning to be realized in late 2026. Capital and liquidity were described as robust, with tangible common equity at 11.47% of tangible assets and book value per share at $58.95.
Positive
- Q2 2026 net interest margin rose to 3.76% from 3.68% year-over-year
- Net interest income remained sizable at $49.5 million in Q2 2026
- Asset quality strong with non-performing assets at $9.4 million, or 0.17% of assets
- Capital strength tangible common equity at 11.47% of tangible assets; book value $58.95 per share
- Liquidity access secured borrowing availability of $1.23 billion (FHLB) and $319.6 million (Federal Reserve)
- Cost initiatives consolidation and workforce actions expected to add over $2 million to annual pre-tax income
Negative
- Q2 2026 EPS fell to $1.43 from $1.72 in Q2 2025
- Net income declined to $15.8 million from $19.8 million year-over-year
- Non-interest expense increased to $38.2 million from $35.0 million, including $2.1 million in one-time costs
- Loan balances decreased $49.1 million (1.1%) from year-end 2025 and $148.9 million from Q1 2026
- Net interest income decreased $1.5 million (2.9%) year-over-year to $49.5 million
- Asset quality metrics non-performing assets rose to $9.4 million, including a $909,000 charge-off on a multi-family loan
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 18 | Earnings date notice | Neutral | +0.8% | Announced timing of Q2 2026 preliminary earnings release and conference call. |
| Jun 17 | Dividend declaration | Positive | +0.8% | Declared $0.43 quarterly dividend, marking 146th consecutive quarterly payout. |
| Apr 15 | 1Q26 earnings report | Positive | -1.0% | Reported higher Q1 2026 EPS and stable margins with strong capital ratios. |
| Mar 26 | Earnings date notice | Neutral | -1.0% | Scheduled Q1 2026 preliminary earnings release and follow-up conference call. |
| Mar 18 | Dividend declaration | Positive | +1.9% | Announced $0.43 Q1 2026 dividend and 145th consecutive quarterly dividend. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent dividends and scheduling announcements have seen small positive moves, while the prior earnings report drew a modestly negative reaction despite solid operating metrics.
Key Terms
net interest margin financial
efficiency ratio financial
non-performing assets financial
tangible common equity financial
federal funds rate financial
sofr rates financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Preliminary Financial Results and Business Update for the Quarter Ended June 30, 2026
SPRINGFIELD, Mo., July 15, 2026 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (the “Company”) (NASDAQ:GSBC), the holding company for Great Southern Bank (the “Bank”), today reported that preliminary earnings for the three months ended June 30, 2026, were
For the quarter ended June 30, 2026, annualized return on average common equity was
Excluding the non-recurring expenses referenced above, for the quarter ended June 30, 2026, net income was
Key Results:
- Net Interest Income: Net interest income for the second quarter of 2026 decreased
$1.5 million (2.9% ) to$49.5 million compared to$51.0 million for the second quarter of 2025, largely driven by the completion of accounting recognition in October 2025 of interest income from a previously terminated interest rate swap. This was partially offset by lower interest expense on deposit accounts and other borrowings. Annualized net interest margin was3.76% for the quarter ended June 30, 2026, compared to3.68% for the quarter ended June 30, 2025, and3.71% for the quarter ended March 31, 2026. - Asset Quality: Non-performing assets and potential problem loans totaled
$10.6 million at June 30, 2026, an increase of$1.1 million from$9.5 million at December 31, 2025. At June 30, 2026, non-performing assets were$9.4 million (0.17% of total assets), an increase of$1.3 million from$8.1 million (0.15% of total assets) at December 31, 2025. See “Asset Quality” below. - Loans: Total net loans, excluding mortgage loans held for sale, decreased
$49.1 million , or1.1% , from$4.36 billion at December 31, 2025 to$4.31 billion at June 30, 2026. This decrease was primarily driven by decreases in commercial real estate loans and other residential (multi-family) loans, partially offset by an increase in construction loans. The Bank experienced an increased amount of loan prepayments in the 2026 second quarter compared to a lower amount of prepayments in the first quarter of 2026.
- Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of
$1.23 billion and$319.6 million , respectively, at June 30, 2026. - Capital: The Company’s capital position remained strong as of June 30, 2026, significantly exceeding the “well-capitalized” thresholds established by regulatory agencies. See “Capital” below.
Certain Income and Expense Items Impacting Second Quarter 2026 Results: During the three months ended June 30, 2026, there were certain income and expense items that impacted the Company’s results of operations.
- Interest income on loans increased
$393,000 due to collection of unbooked interest on one relationship. This relationship has recently provided interest payments semi-annually, but we do not have assurances of future payments or amounts, if payments are made. - Other non-interest income included
$176,000 due to fees received on the origination of back-to-back interest rate swaps as part of a new commercial real estate loan transaction. These types of fees occur sporadically as part of our operations. - In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking center locations. See “Business Initiatives” below. Accounting rules require that certain costs and expected losses be recorded immediately, while any expected gains are not recorded until realized. Upon evaluating the carrying value and estimated market value of each affected location (all of which are owned facilities), a valuation allowance of
$1.4 million was recognized in the second quarter of 2026 related to four of the locations. The Company currently does not expect to ultimately realize losses on the sale of the other five properties and expects the eventual aggregate selling price of all affected properties will exceed the combined carrying value of the affected locations (approximately$12.6 million ). In addition to the valuation allowance, severance expense of$234,000 was recognized in the second quarter of 2026 related to the termination of 39 employees due to the closure of the nine banking centers.
The Company also completed a limited number of other operational workforce reductions in the quarter, including the closure of two commercial lending locations. These reductions resulted in the recognition of$327,000 in severance costs related to 27 employees along with$163,000 in remaining lease expense associated with the loan production office.
The$2.1 million of expenses outlined above are included in the Consolidated Statements of Income under “Noninterest Expense – Net Occupancy and Equipment Expense” and “Noninterest Expenses – Salaries and employee benefits,” respectively.
Selected Financial Data:
| Three Months Ended | ||||||||||
| June 30, | June 30, | March 31, | ||||||||
| 2026 | 2025 | 2026 | ||||||||
| (Dollars in thousands, except per share data) | ||||||||||
| Net interest income | $ | 49,493 | $ | 50,963 | $ | 48,328 | ||||
| Provision (credit) for credit losses on loans and unfunded commitments | 8 | (110 | ) | (931 | ) | |||||
| Non-interest income | 7,375 | 8,212 | 7,029 | |||||||
| Non-interest expense | 38,222 | 35,005 | 34,792 | |||||||
| Provision for income taxes | 2,843 | 4,494 | 4,020 | |||||||
| Net income | $ | 15,795 | $ | 19,786 | $ | 17,476 | ||||
| Earnings per diluted common share | $ | 1.43 | $ | 1.72 | $ | 1.58 | ||||
Joseph W. Turner, President and CEO of Great Southern, commented: "Our second quarter performance reflects continued strong results within our core banking franchise. Throughout the quarter, we remained focused on the fundamentals that have consistently guided our long-term success, including sound credit underwriting, thoughtful balance sheet management, and prudent expense control. We reported preliminary net income of
Turner noted, "Net interest income remained strong in the quarter, a result of prudent asset-liability management and disciplined pricing on earning assets and funding sources. Our net interest margin was
Turner continued, “Turning to our balance sheet, and as discussed in the prior quarter, period-to-period loan trends are influenced significantly by loan repayments from our borrowers. Elevated payoff activity in the second quarter of 2026 led to a
Turner added, "Asset quality remained very strong through the first half of 2026. Total non-performing assets were
Turner further commented, "As outlined above, we announced the consolidation of nine banking centers into other nearby locations along with the elimination of 66 positions across various divisions in the Company. Though these decisions resulted in the realization of several non-recurring expenses in the second quarter of 2026, we’re confident they will allow for better alignment with our customer base and improved returns for our stockholders, going forward. We expect the operational efficiencies created by these actions, the impact of which should begin to be realized in the fourth quarter of 2026, will produce an increase in annual pre-tax income of over
"Great Southern enters the second half of 2026 in a strong position, with robust capital and liquidity levels and a prudent balance sheet posture. As of June 30, 2026, tangible common equity was
NET INTEREST INCOME
| Three Months Ended | ||||||||||||
| June 30, | June 30, | March 31, | ||||||||||
| 2026 | 2025 | 2026 | ||||||||||
| (Dollars in thousands) | ||||||||||||
| Interest Income | $ | 72,461 | $ | 80,975 | $ | 71,165 | ||||||
| Interest Expense | 22,968 | 30,012 | 22,837 | |||||||||
| Net Interest Income | $ | 49,493 | $ | 50,963 | $ | 48,328 | ||||||
| Net interest margin | 3.76 | % | 3.68 | % | 3.71 | % | ||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.9 | % | 126.9 | % | 128.8 | % | ||||||
Net interest income for the second quarter of 2026 decreased
The average yield on total interest-earning assets decreased from
Market interest rates, primarily the federal funds rate and SOFR rates, declined in the fourth quarter of 2025, and remained lower through the first half of 2026. There were no federal funds rate cuts in the first half of 2026, but there were federal funds rate cuts in September, October, and December of 2025, totaling 75 basis points. This market rate decline reduced the average yield on loans, though the impact was tempered as cash flows from lower-rate fixed rate loans originated a few years ago were deployed into residential and commercial real estate loans with comparably higher rates of interest. The decline in market interest rates also resulted in lower average rates paid on deposits and borrowings, compared to the prior-year second quarter and the first quarter of 2026.
To mitigate exposure to the risk of fluctuations in future cash flows resulting from changes in interest rates (primarily related to falling interest rates), the Company has strategically utilized derivative financial instruments - primarily interest rate swaps - as part of its interest rate risk management strategy.
The following table presents, for the periods indicated, the effect of cash flow hedge accounting included in interest income in the consolidated statements of income:
| Three Months Ended | |||||||||||
| June 30, | June 30, | March 31, | |||||||||
| 2026 | 2025 | 2026 | |||||||||
| (In thousands) | |||||||||||
| Terminated interest rate swaps | $ | — | $ | 2,025 | $ | — | |||||
| Active interest rate swaps | (1,022 | ) | (1,757 | ) | (1,031 | ) | |||||
Increase (decrease) to interest income | $ | (1,022 | ) | $ | 268 | $ | (1,031 | ) | |||
The Company entered into an interest rate swap in October 2018, which was terminated in March 2020. Upon termination, the Company received
Market rates for time deposits for much of 2024 were elevated but have declined as the FOMC cut the federal funds rate by 100 basis points in late 2024, 25 basis points in the third quarter of 2025 and 50 basis points in the fourth quarter of 2025. As of June 30, 2026, time deposit maturities (including brokered time deposits) over the next 12 months were as follows: within three months —
NON-INTEREST INCOME
For the quarter ended June 30, 2026, non-interest income decreased
- Other income: Other income decreased
$897,000 compared to the prior-year second quarter. In the second quarter of 2025, the Company recorded income of$1.1 million related to exits from, and other activities of, its investments in tax credit partnerships, which was not repeated in the current quarter. - Commissions: Commission income increased
$230,000 compared to the prior-year second quarter. The increase was due to annuity sales that were approximately94% higher in the 2026 period compared to the 2025 period. Yields on these products have been attractive to many of our customers.
NON-INTEREST EXPENSE
For the quarter ended June 30, 2026, non-interest expense increased
- Net occupancy and equipment expenses: Net occupancy and equipment expenses increased
$2.2 million , or26.7% , from the prior-year second quarter. In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking center locations and close one leased facility which served as the Company’s Omaha, Neb. loan production office. The Company evaluated the carrying value of the affected owned premises (totaling approximately$12.6 million ) to determine if any impairment of the value of these premises was warranted and recorded a valuation allowance of$1.4 million related to certain affected premises, furniture, fixtures and equipment of the owned locations at June 30, 2026. During the three months ended June 30, 2026, the Company also recorded expenses totaling$163,000 related to contractual future lease payments for the Omaha leased lending facility. For additional information on these consolidations, see “Business Initiatives” below.
Additionally, various components of computer license and support expenses, related to upgrades of core systems capabilities and disaster recovery site, collectively increased by$333,000 in the second quarter of 2026 compared to the second quarter of 2025. - Salaries and employee benefits: Salaries and employee benefits increased
$686,000 , or3.4% , from the prior-year second quarter. The increase was primarily due to the Company recording$561,000 in expenses related to severance pay for employees affected by the consolidations in banking centers and other operational areas. See “Business Initiatives” below.
The Company’s efficiency ratio for the quarter ended June 30, 2026, was
INCOME TAXES
For the three months ended June 30, 2026 and 2025, the Company's effective tax rate was
CAPITAL
| June 30, | December 31, | March 31, | |||||||
| 2026 | 2025 | 2026 | |||||||
| Consolidated Regulatory Capital Ratios | (Preliminary) | ||||||||
| Tier 1 Leverage Ratio | 12.4 | % | 12.2 | % | 12.2 | % | |||
| Common Equity Tier 1 Capital Ratio | 14.0 | % | 13.6 | % | 13.5 | % | |||
| Tier 1 Capital Ratio | 14.6 | % | 14.1 | % | 14.0 | % | |||
| Total Capital Ratio | 15.8 | % | 15.3 | % | 15.2 | % | |||
| Tangible Common Equity Ratio | 11.5 | % | 11.2 | % | 11.0 | % | |||
As of June 30, 2026, total stockholders’ equity was
The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled
In April 2025, the Company’s Board of Directors authorized the purchase, from time to time, of up to one million additional shares of the Company’s common stock. As of June 30, 2026, approximately 304,000 shares remained available under this stock repurchase authorization.
During the three months ended June 30, 2026, the Company repurchased 114,624 shares of its common stock at an average price of
During the six months ended June 30, 2026, the Company repurchased 383,288 shares of its common stock at an average price of
LIQUIDITY AND DEPOSITS
Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations in a timely manner. The Company’s primary sources of funds are customer deposits, FHLBank advances, other borrowings, loan repayments, unpledged securities, proceeds from sales of loans and available-for-sale securities and funds provided from operations. The Company utilizes some or all of these sources of funds depending on the comparative costs and availability at the time. The Company has, from time to time, chosen not to pay rates on deposits as high as the rates paid by certain of its competitors and, at management’s discretion, supplements deposits with alternative sources of funds. Management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its borrowers’ credit needs.
At June 30, 2026, the Company had the following available secured lines and on-balance sheet liquidity:
| June 30, 2026 | |
| Federal Home Loan Bank line | |
| Federal Reserve Bank line | 319.6 million |
| Cash and cash equivalents | 180.0 million |
| Unpledged securities – Available-for-sale | 339.9 million |
| Unpledged securities – Held-to-maturity | 23.4 million |
During the six months ended June 30, 2026, the Company’s total deposits decreased
At June 30, 2026, the Company had the following deposit balances:
| June 30, 2026 | |
| Interest-bearing checking | |
| Non-interest-bearing checking | 877.4 million |
| Time deposits | 651.5 million |
| Brokered deposits | 575.6 million |
At June 30, 2026, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company’s consolidated subsidiaries, were approximately
LOANS
Total net loans, excluding mortgage loans held for sale, decreased
The pipeline of the unfunded portion of loans and formal loan commitments remained strong, with the largest portion of these unfunded balances consisting of the unfunded portion of outstanding construction loans (
For additional details about the Company’s loan portfolio, please refer to the quarterly loan portfolio presentation available on the Company’s Investor Relations website under “Presentations.”
Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):
| June 30, 2026 | March 31, 2026 | December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||
| Closed non-construction loans with unused available lines | ||||||||||
| Secured by real estate (one- to four-family) | $ | 214,597 | $ | 214,107 | $ | 208,229 | $ | 205,599 | $ | 203,964 |
| Secured by real estate (not one- to four-family) | — | — | — | — | — | |||||
| Not secured by real estate – commercial business | 106,290 | 106,024 | 114,568 | 106,621 | 82,435 | |||||
| Closed construction loans with unused available lines | ||||||||||
| Secured by real estate (one-to four-family) | 116,195 | 119,231 | 112,684 | 94,501 | 101,545 | |||||
| Secured by real estate (not one-to four-family) | 531,842 | 530,756 | 624,025 | 703,947 | 719,039 | |||||
| Loan commitments not closed | ||||||||||
| Secured by real estate (one-to four-family) | 22,937 | 19,194 | 14,113 | 14,373 | 12,347 | |||||
| Secured by real estate (not one-to four-family) | 49,139 | 24,053 | 19,412 | 53,660 | 48,153 | |||||
| Not secured by real estate – commercial business | 33,940 | 35,762 | 38,262 | 22,884 | 11,763 | |||||
| $ | 1,074,940 | $ | 1,049,127 | $ | 1,131,293 | $ | 1,201,585 | $ | 1,179,246 | |
PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES
During both the three months and six months ended June 30, 2026 and 2025, the Company did not record a provision expense on its portfolio of outstanding loans. Total net charge offs were
The Bank’s allowance for credit losses as a percentage of total loans was
ASSET QUALITY
At June 30, 2026, non-performing assets were
Activity in the non-performing loan categories during the quarter ended June 30, 2026, was as follows:
| Beginning Balance, April 1 | Additions to Non- Performing | Removed from Non- Performing | Transfers to Potential Problem Loans | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Payments | Ending Balance, June 30 | ||||||||||||
| (In thousands) | |||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||
| Subdivision construction | — | — | — | — | — | — | — | — | |||||||||||
| Land development | — | — | — | — | — | — | — | — | |||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | |||||||||||
| One- to four-family residential | 703 | 368 | — | — | — | — | (81 | ) | 990 | ||||||||||
| Other residential (multi-family) | 2,725 | — | — | — | (1,807 | ) | (909 | ) | (9 | ) | — | ||||||||
| Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||
| Commercial business | — | 36 | — | — | — | — | — | 36 | |||||||||||
| Consumer | 26 | — | — | — | — | (17 | ) | (2 | ) | 7 | |||||||||
| Total non-performing loans | $ | 3,454 | $ | 404 | $ | — | $ | — | $ | (1,807 | ) | $ | (926 | ) | $ | (92 | ) | $ | 1,033 |
- Compared to March 31, 2026, non-performing loans decreased
$2.4 million . - The non-performing one- to four-family residential category consisted of seven loans at June 30, 2026, three of which were added during the current quarter.
- The largest relationship in the one- to four-family residential category totaled
$386,000 at June 30, 2026. This relationship was added to non-performing loans in 2024 and is collateralized by a single-family residential property in southern Iowa. - During the three months ended June 30, 2026, a single loan totaling
$1.8 million ($2.7 million at March 31, 2026) which had been collateralized by an apartment in eastern Iowa was transferred from the non-performing other residential (multi-family) category to foreclosed assets. Upon transfer to foreclosed assets the Company recorded a loan charge-off of$909,000 on the property, based upon an updated independent appraisal of the asset.
Activity in the potential problem loans categories during the quarter ended June 30, 2026, was as follows:
| Beginning Balance, April 1 | Additions to Potential Problem | Removed from Potential Problem | Transfers to Non- Performing | Transfers to Foreclosed Assets and Repossessions | Charge- Offs | Loan Advances (Payments) | Ending Balance, June 30 | ||||||||||||
| (In thousands) | |||||||||||||||||||
| One- to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||
| Subdivision construction | — | — | — | — | — | — | — | — | |||||||||||
| Land development | — | — | — | — | — | — | — | — | |||||||||||
| Commercial construction | — | — | — | — | — | — | — | — | |||||||||||
| One- to four-family residential | 943 | 25 | — | — | — | — | (112 | ) | 856 | ||||||||||
| Other residential (multi-family) | — | — | — | — | — | — | — | — | |||||||||||
| Commercial real estate | — | — | — | — | — | — | — | — | |||||||||||
| Commercial business | 14 | — | — | — | — | — | (2 | ) | 12 | ||||||||||
| Consumer | 281 | 47 | — | — | (5 | ) | (7 | ) | (27 | ) | 289 | ||||||||
| Total potential problem loans | $ | 1,238 | $ | 72 | $ | — | $ | — | $ | (5 | ) | $ | (7 | ) | $ | (141 | ) | $ | 1,157 |
- Compared to March 31, 2026, potential problem loans decreased
$81,000 . - At June 30, 2026, the one- to four-family residential category consisted of 12 loans, one of which was added to potential problem loans during the current quarter.
- The largest relationship in the one- to four-family category totaled
$256,000 and was added in the third quarter of 2025. This relationship is collateralized by a single-family residential property in the St. Louis area. - At June 30, 2026, the consumer category of potential problem loans consisted of 18 loans, five of which were added during the current quarter.
Activity in the foreclosed assets and repossessions categories during the quarter ended June 30, 2026 was as follows:
| Beginning Balance, April 1 | Additions | ORE and Repossession Sales | Capitalized Costs | ORE and Repossession Write-Downs | Ending Balance, June 30 | ||||||||
| (In thousands) | |||||||||||||
| One-to four-family construction | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |
| Subdivision construction | — | — | — | — | — | — | |||||||
| Land development | — | — | — | — | — | — | |||||||
| Commercial construction | — | — | — | — | — | — | |||||||
| One- to four-family residential | 643 | — | (643 | ) | — | — | — | ||||||
| Other residential (multi-family) | — | 1,807 | — | — | — | 1,807 | |||||||
| Commercial real estate | 5,960 | — | — | 582 | — | 6,542 | |||||||
| Commercial business | — | — | — | — | — | — | |||||||
| Consumer | 12 | 12 | (13 | ) | — | — | 11 | ||||||
| Total foreclosed assets and repossessions | $ | 6,615 | $ | 1,819 | $ | (656 | ) | $ | 582 | $ | — | $ | 8,360 |
- Compared to March 31, 2026, foreclosed assets increased
$1.8 million . - The largest asset in the commercial real estate category, totaling
$6.5 million , consisted of an office building located in Clayton, Mo. This asset was foreclosed upon in the fourth quarter of 2024. In the three months ended June 30, 2026, the Company capitalized$582,000 in improvements to the property. As mentioned in previous filings, the Company reported that it expected such improvements to ultimately cost approximately$3 million and take several months to complete. It is expected that such additional costs will be incurred and capitalized on this asset throughout the remainder of 2026. The majority of this expenditure represents the addition of fire suppression sprinklers throughout the building and other significant improvements. Based on an independent valuation (which utilized sales and current market rents in the area for similarly improved buildings), Bank management does not currently anticipate any loss on this asset and decided to move forward with implementing these improvements. - At June 30, 2026, the other residential (multi-family) category, totaling
$1.8 million , consisted of one relationship that was transferred from non-performing loans in the current quarter. This asset, mentioned above in the non-performing loans discussion, consisted of an apartment complex in eastern Iowa. The borrower was no longer in compliance with their loan agreement and, ultimately, the property was placed into foreclosure. The Company expects that it will make significant repairs and improvements to this property. Such improvements are expected to cost approximately$800,000 and take several months to complete. The Company expects to capitalize these expenditures, and these costs were contemplated as part of the charge-off analysis when the asset was transferred to foreclosed assets. - The one- to four-family residential category of foreclosed assets previously included one property consisting of a condominium in the Sarasota, Fla. area, which was added during the three months ended March 31, 2026. This property was sold in the three months ended June 30, 2026, with the Company realizing a small gain on the sale.
BUSINESS INITIATIVES
The Company maintains its focus on technology initiatives and advancements with its current core provider and key partners. These investments in both foundational projects and a heightened customer experience continue to foster an organizational emphasis on innovation and forward progress.
Great Southern launched a partnership with Greenlight, a debit card and financial learning app for kids and teens, in April 2026. The partnership offers a free Greenlight membership to Great Southern customers and is part of the Company’s ongoing efforts to expand both technology and family banking offerings.
Also in April, the Company’s fully redesigned website www.GreatSouthernBank.com, launched. The website, representative of Great Southern’s continued technology investments, offers customers and interested parties an improved online experience with up-to-date content, improved navigation, easier access to financial education information and more.
In June 2026 the Company decided, as part of its regular operational reviews, to consolidate nine banking centers into other Great Southern locations and eliminate a total of 66 positions across various Company divisions, including those at the impacted banking centers. These decisions were part of routine business maintenance as the organization evaluated products, services and workforce to align with changing market dynamics. Of the nine consolidating banking centers, one is in Arkansas, one is in Kansas, two are in Iowa and five are in Missouri (three in the Springfield metro area). Affected banking centers will close October 1, except for the Arkansas location, which will close September 25. All other consolidated staff positions outside of the banking centers have an effective date of September 30. As a result of these planned consolidations, certain expenses were required to be recorded in the 2026 second quarter financial statements. A list of the affected banking center locations is available on our website www.GreatSouthernBank.com.
The banking center consolidations and the workforce reductions are expected to result in approximately
Also, as part of the organizational evaluation of products and services, Great Southern continues to expand its Live Teller ATM network with four new locations, including its first installations in the Des Moines, Iowa, market and a new Great Southern Express-branded location in Ozark, Mo.
The banking center located at 3839 Indian Hills Dr. in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel. This reinvestment will bring a fully refreshed banking center to the Bank’s Sioux City customers, including updated and brightened interiors, updated technology, and the installation of a drive-thru Live Teller ATM offering extended banking hours for customer convenience. During the temporary closure, customers are served by six additional banking centers in the greater Sioux City area, and 15 ATM locations.
Earnings Conference Call
The Company will host a conference call on Thursday, July 16, 2026, at 2:00 p.m. Central Time to discuss second quarter 2026 preliminary earnings. The call will be available live or in a recorded version at the Company’s Investor Relations website, http://investors.greatsouthernbank.com. Participants may register for the call at https://register-conf.media-server.com/register/BI1519b65fe3df412abf1fe40dfe95c397.
About Great Southern Bancorp, Inc.
Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company currently operates 87 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market under the symbol “GSBC.”
Forward-Looking Statements
When used in this press release and in other documents filed or furnished by the Company with or to the Securities and Exchange Commission (the “SEC”), in the Company's other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “might,” “could,” “should,” "will likely result," "are expected to," "will continue," "is anticipated," “believe,” "estimate," "project," "intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions, known trends and statements about future performance, operations, products and services of the Company. The Company’s ability to predict results or the actual effects of future plans or strategies is inherently uncertain, and the Company’s actual results could differ materially from those contained in the forward-looking statements.
Factors that could cause or contribute to such differences include, but are not limited to: (i) expected revenues, cost savings, earnings accretion, synergies and other benefits from the Company's merger and acquisition activities might not be realized within the anticipated time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; (ii) changes in economic conditions, either nationally or in the Company's market areas; (iii) the effects of any new or continuing public health issues on general economic and financial market conditions; (iv) fluctuations in interest rates, the effects of inflation or a potential recession, whether caused by Federal Reserve actions or otherwise; (v) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (vi) slower or negative economic growth caused by tariffs, changes in energy prices, supply chain disruptions or other factors; (vii) the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; (viii) the possibility of realized or unrealized losses on securities held in the Company's investment portfolio; (ix) the Company's ability to access cost-effective funding and maintain sufficient liquidity; (x) fluctuations in real estate values and both residential and commercial real estate market conditions; (xi) the ability to adapt successfully to technological changes to meet customers' needs and developments in the marketplace; (xii) the possibility that security measures implemented might not be sufficient to mitigate the risk of a cyber-attack or cyber theft, and that such security measures might not protect against systems failures or interruptions; (xiii) legislative or regulatory changes that adversely affect the Company's business; (xiv) changes in accounting policies and practices or accounting standards; (xv) results of examinations of the Company and the Bank by their regulators, including the possibility that the regulators may, among other things, require the Company to limit its business activities, change its business mix, increase its allowance for credit losses, write-down assets or increase its capital levels, or affect its ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; (xvi) costs and effects of litigation, including settlements and judgments; (xvii) competition; and (xviii) natural disasters, war, terrorist activities or civil unrest and their effects on economic and business environments in which the Company operates. The Company wishes to advise readers that the factors listed above and other risks described in the Company’s most recent Annual Report on Form 10-K, including, without limitation, those described under “Item 1A. Risk Factors,” subsequent Quarterly Reports on Form 10-Q and other documents filed or furnished from time to time by the Company with the SEC (which are available on our website at www.greatsouthernbank.com and the SEC’s website at www.sec.gov), could affect the Company's financial performance and cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.
The Company does not undertake-and specifically declines any obligation- to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
The following tables set forth selected consolidated financial information of the Company at the dates and for the periods indicated. Financial data at all dates other than December 31, 2025, and for all periods is unaudited. In the opinion of management, all adjustments, which consist only of normal recurring accrual adjustments, necessary for a fair presentation of the results at and for such unaudited dates and periods have been included. The results of operations and other data for the three and six months ended June 30, 2026 and 2025, and the three months ended March 31, 2026, are not necessarily indicative of the results of operations which may be expected for any future period.
| June 30, | December 31, | ||||
| 2026 | 2025 | ||||
| (In thousands) | |||||
| Selected Financial Condition Data: | |||||
| Total assets | $ | 5,522,824 | $ | 5,598,606 | |
| Loans receivable, gross | 4,377,132 | 4,427,678 | |||
| Allowance for credit losses | 63,965 | 64,771 | |||
| Other real estate owned, net | 8,360 | 6,036 | |||
| Available-for-sale securities, at fair value | 503,795 | 523,831 | |||
| Held-to-maturity securities, at amortized cost | 175,264 | 179,200 | |||
| Deposits | 4,302,067 | 4,482,774 | |||
| Total borrowings | 511,247 | 405,169 | |||
| Total stockholders’ equity | 641,597 | 636,126 | |||
| Non-performing assets | 9,393 | 8,130 | |||
| Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||
| June 30, | June 30, | March 31, | ||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | ||||||||||||||
| (In thousands) | ||||||||||||||||||
| Selected Operating Data: | ||||||||||||||||||
| Interest income | $ | 72,461 | $ | 80,975 | $ | 143,626 | $ | 161,218 | $ | 71,165 | ||||||||
| Interest expense | 22,968 | 30,012 | 45,805 | 60,921 | 22,837 | |||||||||||||
| Net interest income | 49,493 | 50,963 | 97,821 | 100,297 | 48,328 | |||||||||||||
| Provision (credit) for credit losses on loans and unfunded commitments | 8 | (110 | ) | (923 | ) | (458 | ) | (931 | ) | |||||||||
| Non-interest income | 7,375 | 8,212 | 14,404 | 14,802 | 7,029 | |||||||||||||
| Non-interest expense | 38,222 | 35,005 | 73,014 | 69,827 | 34,792 | |||||||||||||
| Provision for income taxes | 2,843 | 4,494 | 6,863 | 8,784 | 4,020 | |||||||||||||
| Net income | $ | 15,795 | $ | 19,786 | $ | 33,271 | $ | 36,946 | $ | 17,476 | ||||||||
| At or For the Three Months Ended | At or For the Six Months Ended | At or For the Three Months Ended | |||||||||||||||||
| June 30, | June 30, | March 31, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| Per Common Share: | |||||||||||||||||||
| Net income (fully diluted) | $ | 1.43 | $ | 1.72 | $ | 2.99 | $ | 3.18 | $ | 1.58 | |||||||||
| Book value | $ | 58.95 | $ | 54.61 | $ | 58.95 | $ | 54.61 | $ | 58.27 | |||||||||
| Earnings Performance Ratios: | |||||||||||||||||||
| Annualized return on average assets | 1.12 | % | 1.34 | % | 1.18 | % | 1.24 | % | 1.24 | % | |||||||||
| Annualized return on average common stockholders’ equity | 9.83 | % | 12.81 | % | 10.34 | % | 12.06 | % | 10.85 | % | |||||||||
| Net interest margin | 3.76 | % | 3.68 | % | 3.74 | % | 3.63 | % | 3.71 | % | |||||||||
| Average interest rate spread | 3.24 | % | 3.09 | % | 3.22 | % | 3.05 | % | 3.20 | % | |||||||||
| Efficiency ratio | 67.21 | % | 59.16 | % | 65.06 | % | 60.67 | % | 62.85 | % | |||||||||
| Non-interest expense to average total assets | 2.72 | % | 2.37 | % | 2.60 | % | 2.35 | % | 2.47 | % | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Allowance for credit losses to period-end loans | 1.46 | % | 1.41 | % | 1.46 | % | 1.41 | % | 1.43 | % | |||||||||
| Non-performing assets to period-end assets | 0.17 | % | 0.14 | % | 0.17 | % | 0.14 | % | 0.18 | % | |||||||||
| Non-performing loans to period-end loans | 0.02 | % | 0.04 | % | 0.02 | % | 0.04 | % | 0.08 | % | |||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.07 | % | (0.01 | )% | 0.04 | % | 0.00 | % | 0.00 | % | |||||||||
| Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except number of shares) | |||||||||
| June 30, 2026 | December 31, 2025 | March 31, 2026 | |||||||
| Assets | |||||||||
| Cash | $ | 97,200 | $ | 109,833 | $ | 101,405 | |||
| Interest-bearing deposits in other financial institutions | 82,781 | 79,721 | 85,999 | ||||||
| Cash and cash equivalents | 179,981 | 189,554 | 187,404 | ||||||
| Available-for-sale securities | 503,795 | 523,831 | 513,846 | ||||||
| Held-to-maturity securities | 175,264 | 179,200 | 177,594 | ||||||
| Mortgage loans held for sale | 7,868 | 6,838 | 6,823 | ||||||
| Loans receivable, net of allowance for credit losses of | 4,307,712 | 4,356,853 | 4,456,639 | ||||||
| Interest receivable | 18,467 | 18,068 | 19,716 | ||||||
| Prepaid expenses and other assets | 123,005 | 128,615 | 124,023 | ||||||
| Other real estate owned and repossessions, net | 8,360 | 6,036 | 6,615 | ||||||
| Premises and equipment, net | 132,838 | 133,257 | 132,113 | ||||||
| Goodwill and other intangible assets | 9,444 | 9,660 | 9,552 | ||||||
| Federal Home Loan Bank stock and other interest-earning assets | 27,414 | 20,079 | 27,720 | ||||||
| Current and deferred income taxes | 28,676 | 26,615 | 25,277 | ||||||
| Total Assets | $ | 5,522,824 | $ | 5,598,606 | $ | 5,687,322 | |||
| Liabilities and Stockholders’ Equity | |||||||||
| Liabilities | |||||||||
| Deposits | $ | 4,302,067 | $ | 4,482,774 | $ | 4,445,161 | |||
| Securities sold under reverse repurchase agreements with customers | 39,913 | 48,467 | 37,198 | ||||||
| Short-term borrowings | 445,560 | 330,928 | 470,660 | ||||||
| Subordinated debentures issued to capital trust | 25,774 | 25,774 | 25,774 | ||||||
| Accrued interest payable | 3,080 | 3,612 | 3,250 | ||||||
| Advances from borrowers for taxes and insurance | 10,283 | 5,781 | 9,021 | ||||||
| Accounts payable and accrued expenses | 46,925 | 56,596 | 55,011 | ||||||
| Liability for unfunded commitments | 7,625 | 8,548 | 7,617 | ||||||
| Total Liabilities | 4,881,227 | 4,962,480 | 5,053,692 | ||||||
| Stockholders’ Equity | |||||||||
| Capital stock | |||||||||
| Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding June 2026, December 2025 and March 2026 -0- shares | — | — | — | ||||||
| Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding June 2026 – 10,884,444 shares; December 2025 – 11,062,252 shares; March 2026 – 10,873,847 shares | 83 | 111 | 83 | ||||||
| Additional paid-in capital | 59,278 | 54,120 | 56,126 | ||||||
| Retained earnings | 619,960 | 614,095 | 612,570 | ||||||
| Accumulated other comprehensive loss | (37,724 | ) | (32,200 | ) | (35,149 | ) | |||
| Total Stockholders’ Equity | 641,597 | 636,126 | 633,630 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 5,522,824 | $ | 5,598,606 | $ | 5,687,322 | |||
| Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | Three Months Ended | |||||||||||||||||
| June 30, | June 30, | March 31, | |||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | 2026 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Loans | $ | 65,686 | $ | 73,830 | $ | 130,346 | $ | 146,901 | $ | 64,660 | |||||||||
| Investment securities and other | 6,775 | 7,145 | 13,280 | 14,317 | 6,505 | ||||||||||||||
| 72,461 | 80,975 | 143,626 | 161,218 | 71,165 | |||||||||||||||
| Interest Expense | |||||||||||||||||||
| Deposits | 17,861 | 24,368 | 36,198 | 48,968 | 18,337 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 133 | 372 | 229 | 743 | 96 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 4,620 | 3,974 | 8,682 | 8,424 | 4,062 | ||||||||||||||
| Subordinated debentures issued to capital trust | 354 | 389 | 696 | 771 | 342 | ||||||||||||||
| Subordinated notes | — | 909 | — | 2,015 | — | ||||||||||||||
| 22,968 | 30,012 | 45,805 | 60,921 | 22,837 | |||||||||||||||
| Net Interest Income | 49,493 | 50,963 | 97,821 | 100,297 | 48,328 | ||||||||||||||
| Provision for Credit Losses on Loans | — | — | — | — | — | ||||||||||||||
| Provision (Credit) for Unfunded Commitments | 8 | (110 | ) | (923 | ) | (458 | ) | (931 | ) | ||||||||||
| Net Interest Income After Provision for Credit Losses and Provision (Credit) for Unfunded Commitments | 49,485 | 51,073 | 98,744 | 100,755 | 49,259 | ||||||||||||||
| Non-interest Income | |||||||||||||||||||
| Commissions | 641 | 411 | 1,256 | 673 | 615 | ||||||||||||||
| Overdraft and Insufficient funds fees | 1,248 | 1,266 | 2,479 | 2,481 | 1,231 | ||||||||||||||
| POS and ATM fee income and service charges | 3,392 | 3,444 | 6,493 | 6,678 | 3,101 | ||||||||||||||
| Net gains on loan sales | 795 | 893 | 1,514 | 1,494 | 719 | ||||||||||||||
| Late charges and fees on loans | 305 | 340 | 441 | 583 | 136 | ||||||||||||||
| Gain (loss) on derivative interest rate products | 5 | (28 | ) | 3 | (52 | ) | (2 | ) | |||||||||||
| Other income | 989 | 1,886 | 2,218 | 2,945 | 1,229 | ||||||||||||||
| 7,375 | 8,212 | 14,404 | 14,802 | 7,029 | |||||||||||||||
| Non-interest Expense | |||||||||||||||||||
| Salaries and employee benefits | 20,691 | 20,005 | 40,762 | 40,134 | 20,071 | ||||||||||||||
| Net occupancy and equipment expense | 10,683 | 8,435 | 19,547 | 16,968 | 8,864 | ||||||||||||||
| Postage | 889 | 825 | 1,814 | 1,756 | 925 | ||||||||||||||
| Insurance | 1,099 | 1,095 | 2,171 | 2,260 | 1,072 | ||||||||||||||
| Advertising | 836 | 705 | 1,208 | 995 | 372 | ||||||||||||||
| Office supplies and printing | 197 | 238 | 419 | 504 | 222 | ||||||||||||||
| Telephone | 705 | 705 | 1,390 | 1,411 | 685 | ||||||||||||||
| Legal, audit and other professional fees | 967 | 929 | 1,657 | 1,967 | 690 | ||||||||||||||
| Expense (income) on other real estate and repossessions | (85 | ) | (168 | ) | (31 | ) | (238 | ) | 54 | ||||||||||
| Intangible asset amortization | 108 | 108 | 216 | 216 | 108 | ||||||||||||||
| Other operating expenses | 2,132 | 2,128 | 3,861 | 3,854 | 1,729 | ||||||||||||||
| 38,222 | 35,005 | 73,014 | 69,827 | 34,792 | |||||||||||||||
| Income Before Income Taxes | 18,638 | 24,280 | 40,134 | 45,730 | 21,496 | ||||||||||||||
| Provision for Income Taxes | 2,843 | 4,494 | 6,863 | 8,784 | 4,020 | ||||||||||||||
| Net Income | $ | 15,795 | $ | 19,786 | $ | 33,271 | $ | 36,946 | $ | 17,476 | |||||||||
| Earnings Per Common Share | |||||||||||||||||||
| Basic | $ | 1.45 | $ | 1.73 | $ | 3.04 | $ | 3.20 | $ | 1.59 | |||||||||
| Diluted | $ | 1.43 | $ | 1.72 | $ | 2.99 | $ | 3.18 | $ | 1.58 | |||||||||
| Dividends Declared Per Common Share | $ | 0.43 | $ | 0.40 | $ | 0.86 | $ | 0.80 | $ | 0.43 | |||||||||
Average Balances, Interest Rates and Yields
The following table presents, for the periods indicated, the total dollar amounts of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Average balances of loans receivable include the average balances of nonaccrual loans for each period. Interest income on loans includes interest received on nonaccrual loans on a cash basis. Interest income on loans also includes the amortization of net loan fees, which were deferred in accordance with accounting standards. Net fees included in interest income were
| June 30, 2026 | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||
| Average | Yield/ | Average | Yield/ | ||||||||||||||||||
| Yield/Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans receivable: | |||||||||||||||||||||
| One- to four-family residential | 4.39 | % | $ | 785,845 | $ | 8,611 | 4.40 | % | $ | 822,283 | $ | 8,750 | 4.27 | % | |||||||
| Other residential | 6.23 | 1,319,178 | 20,688 | 6.29 | 1,565,447 | 27,281 | 6.99 | ||||||||||||||
| Commercial real estate | 6.02 | 1,538,995 | 23,199 | 6.05 | 1,489,015 | 23,082 | 6.22 | ||||||||||||||
| Construction | 6.21 | 469,176 | 7,433 | 6.35 | 480,254 | 8,617 | 7.20 | ||||||||||||||
| Commercial business | 5.81 | 178,472 | 3,023 | 6.79 | 208,119 | 3,517 | 6.78 | ||||||||||||||
| Other loans | 6.21 | 181,982 | 2,732 | 6.02 | 167,548 | 2,583 | 6.18 | ||||||||||||||
| Total loans receivable | 5.80 | 4,473,648 | 65,686 | 5.89 | 4,732,666 | 73,830 | 6.26 | ||||||||||||||
| Investment securities | 3.22 | 709,009 | 5,977 | 3.38 | 727,336 | 6,099 | 3.36 | ||||||||||||||
| Other interest-earning assets | 3.63 | 91,392 | 798 | 3.50 | 97,463 | 1,046 | 4.30 | ||||||||||||||
| Total interest-earning assets | 5.43 | 5,274,049 | 72,461 | 5.51 | 5,557,465 | 80,975 | 5.84 | ||||||||||||||
| Non-interest-earning assets: | |||||||||||||||||||||
| Cash and cash equivalents | 94,498 | 100,289 | |||||||||||||||||||
| Other non-earning assets | 247,571 | 256,923 | |||||||||||||||||||
| Total assets | $ | 5,616,118 | $ | 5,914,677 | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand and savings | 1.19 | $ | 2,182,530 | 6,423 | 1.18 | $ | 2,225,933 | 7,791 | 1.40 | ||||||||||||
| Time deposits | 2.95 | 659,741 | 4,802 | 2.92 | 757,608 | 6,521 | 3.45 | ||||||||||||||
| Brokered deposits | 3.83 | 684,484 | 6,636 | 3.89 | 895,340 | 10,056 | 4.50 | ||||||||||||||
| Total deposits | 1.97 | 3,526,755 | 17,861 | 2.03 | 3,878,881 | 24,368 | 2.52 | ||||||||||||||
| Securities sold under reverse repurchase agreements | 1.55 | 34,900 | 133 | 1.53 | 65,607 | 372 | 2.27 | ||||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 3.97 | 472,564 | 4,620 | 3.92 | 347,303 | 3,974 | 4.59 | ||||||||||||||
| Subordinated debentures issued to capital trust | 5.52 | 25,774 | 354 | 5.51 | 25,774 | 389 | 6.05 | ||||||||||||||
| Subordinated notes | — | — | — | — | 62,631 | 909 | 5.82 | ||||||||||||||
| Total interest-bearing liabilities | 2.21 | 4,059,993 | 22,968 | 2.27 | 4,380,196 | 30,012 | 2.75 | ||||||||||||||
| Non-interest-bearing liabilities: | |||||||||||||||||||||
| Demand deposits | 859,352 | 849,862 | |||||||||||||||||||
| Other liabilities | 53,725 | 66,585 | |||||||||||||||||||
| Total liabilities | 4,973,070 | 5,296,643 | |||||||||||||||||||
| Stockholders’ equity | 643,048 | 618,034 | |||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,616,118 | $ | 5,914,677 | |||||||||||||||||
| Net interest income: | $ | 49,493 | $ | 50,963 | |||||||||||||||||
| Interest rate spread | 3.22 | % | 3.24 | % | 3.09 | % | |||||||||||||||
| Net interest margin* | 3.76 | % | 3.68 | % | |||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.9 | % | 126.9 | % | |||||||||||||||||
___________________
*Defined as the Company’s net interest income divided by average total interest-earning assets.
| June 30, 2026 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||
| Yield/Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans receivable: | ||||||||||||||||||||
| One- to four-family residential | 4.39 | % | $ | 784,137 | $ | 16,996 | 4.37 | % | $ | 826,426 | $ | 17,318 | 4.23 | % | ||||||
| Other residential | 6.23 | 1,350,667 | 42,220 | 6.30 | 1,555,881 | 53,731 | 6.96 | |||||||||||||
| Commercial real estate | 6.02 | 1,544,527 | 45,988 | 6.00 | 1,499,665 | 46,096 | 6.20 | |||||||||||||
| Construction | 6.21 | 436,986 | 13,799 | 6.37 | 485,392 | 17,270 | 7.17 | |||||||||||||
| Commercial business | 5.81 | 178,149 | 5,987 | 6.78 | 209,944 | 7,339 | 7.05 | |||||||||||||
| Other loans | 6.21 | 178,909 | 5,356 | 6.04 | 166,989 | 5,147 | 6.22 | |||||||||||||
| Total loans receivable | 5.80 | 4,473,375 | 130,346 | 5.88 | 4,744,297 | 146,901 | 6.24 | |||||||||||||
| Investment securities | 3.22 | 715,891 | 11,709 | 3.30 | 732,699 | 12,173 | 3.35 | |||||||||||||
| Other interest-earning assets | 3.63 | 90,441 | 1,571 | 3.50 | 101,238 | 2,144 | 4.27 | |||||||||||||
| Total interest-earning assets | 5.43 | 5,279,707 | 143,626 | 5.48 | 5,578,234 | 161,218 | 5.83 | |||||||||||||
| Non-interest-earning assets: | ||||||||||||||||||||
| Cash and cash equivalents | 96,086 | 100,537 | ||||||||||||||||||
| Other non-earning assets | 247,025 | 259,692 | ||||||||||||||||||
| Total assets | $ | 5,622,818 | $ | 5,938,463 | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Interest-bearing demand and savings | 1.19 | $ | 2,216,555 | 13,154 | 1.20 | $ | 2,223,716 | 15,588 | 1.41 | |||||||||||
| Time deposits | 2.95 | 673,399 | 9,897 | 2.96 | 764,791 | 13,235 | 3.49 | |||||||||||||
| Brokered deposits | 3.83 | 682,760 | 13,147 | 3.88 | 893,983 | 20,145 | 4.54 | |||||||||||||
| Total deposits | 1.97 | 3,572,714 | 36,198 | 2.04 | 3,882,490 | 48,968 | 2.54 | |||||||||||||
| Securities sold under reverse repurchase agreements | 1.55 | 36,522 | 229 | 1.26 | 73,957 | 743 | 2.03 | |||||||||||||
| Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 3.97 | 446,007 | 8,682 | 3.93 | 369,849 | 8,424 | 4.59 | |||||||||||||
| Subordinated debentures issued to capital trust | 5.52 | 25,774 | 696 | 5.45 | 25,774 | 771 | 6.03 | |||||||||||||
| Subordinated notes | — | — | — | — | 68,741 | 2,015 | 5.91 | |||||||||||||
| Total interest-bearing liabilities | 2.21 | 4,081,017 | 45,805 | 2.26 | 4,420,811 | 60,921 | 2.78 | |||||||||||||
| Non-interest-bearing liabilities: | ||||||||||||||||||||
| Demand deposits | 847,290 | 835,888 | ||||||||||||||||||
| Other liabilities | 50,914 | 68,961 | ||||||||||||||||||
| Total liabilities | 4,979,221 | 5,325,660 | ||||||||||||||||||
| Stockholders’ equity | 643,597 | 612,803 | ||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 5,622,818 | $ | 5,938,463 | ||||||||||||||||
| Net interest income: | $ | 97,821 | $ | 100,297 | ||||||||||||||||
| Interest rate spread | 3.22 | % | 3.22 | % | 3.05 | % | ||||||||||||||
| Net interest margin* | 3.74 | % | 3.63 | % | ||||||||||||||||
| Average interest-earning assets to average interest-bearing liabilities | 129.4 | % | 126.2 | % | ||||||||||||||||
___________________
*Defined as the Company’s net interest income divided by average total interest-earning assets.
NON-GAAP FINANCIAL MEASURES
This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”), including the ratio of tangible common equity to tangible assets and information excluding one-time branch consolidation and severance costs, specifically, net income, earnings per diluted common share, annualized return on average common equity, annualized return on average assets and efficiency ratio.
In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets. Management believes that the presentation of this measure excluding the impact of intangible assets provides useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength. Management also believes that providing a measure that excludes balances of intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers. In addition, management believes that this is a standard financial measure used in the banking industry to evaluate performance.
Management believes that the presentation of certain measures excluding one-time branch consolidation and severance costs provides useful supplemental information that is helpful in understanding our core operating performance when comparing periods.
These non-GAAP financial measurements are supplemental and not a substitute for any analysis based on GAAP financial measures. Because not all companies use the same calculation of non-GAAP measures, this presentation may not be comparable to other similarly titled measures as calculated by other companies.
Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Dollars in thousands) | |||||||
| Common equity at period end | $ | 641,597 | $ | 636,126 | |||
| Less: Intangible assets at period end | 9,444 | 9,660 | |||||
| Tangible common equity at period end (a) | $ | 632,153 | $ | 626,466 | |||
| Total assets at period end | $ | 5,522,824 | $ | 5,598,606 | |||
| Less: Intangible assets at period end | 9,444 | 9,660 | |||||
| Tangible assets at period end (b) | $ | 5,513,380 | $ | 5,588,946 | |||
| Tangible common equity to tangible assets (a) / (b) | 11.47 | % | 11.21 | % | |||
Non-GAAP Reconciliation: Exclusion of One-Time Branch Consolidation and Severance Costs
| Three Months Ended | ||||
| June 30, 2026 | ||||
| (Dollars in thousands) | ||||
| Reported net income at period end | $ | 15,795 | ||
| Plus: One-time consolidation and severance costs | 2,120 | |||
| Less: Tax adjustment related to consolidation and severance costs | (521 | ) | ||
| Non-GAAP net income | $ | 17,394 | ||
| Reported non-interest expense | $ | 38,222 | ||
| Less: One-time consolidation and severance costs | (2,120 | ) | ||
| Non-GAAP non-interest expense | $ | 36,102 | ||
| Non-GAAP annualized return on average common equity | ||||
| Definition: Non-GAAP net income (annualized) divided by average common equity | 10.82 | % | ||
| Non-GAAP annualized return on average assets | ||||
| Definition: Non-GAAP net income (annualized) divided by average total assets | 1.24 | % | ||
| Non-GAAP efficiency ratio | ||||
| Definition: Non-GAAP non-interest expense divided by the sum of net interest income | ||||
| and non-interest income | 63.47 | % | ||
| Non-GAAP earnings per common diluted share | ||||
| Definition: Non-GAAP net income divided by average diluted shares outstanding | $ | 1.57 | ||
CONTACT:
Kincade Ayers
Investor Relations
(616) 233-0500
