GSBC

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - President and Chief Executive Officer - Joseph Turner - Executive Vice President and Chief Financial Officer - Rex Copeland - Investor Relations - Christina Maldonado Operator: Thank you. Good day and thank you for standing by. Welcome to the Great Southern Bancorp Third Quarter 2026 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Christina Maldonado. Please go ahead. Christina Maldonado: Thank you. Good afternoon, and thank you for joining Great Southern Bancorp's third quarter 2026 earnings call. Today, we will be discussing the company's results for the quarter ended September 30, 2026. Before we begin, I would like to remind everyone that during this call, forward-looking statements may be made regarding the company's future events and financial performance. These statements are subject to various factors that could cause actual results to differ materially from those anticipated or projected. For a list of these factors, please refer to the forward-looking statements disclosure in the earnings release and other public filings. Joining me today are President and CEO Joe Turner and Chief Financial Officer Rex Copeland. I'll turn the call over to Joe. Joseph Turner: Okay, thanks, Christina, and good afternoon to everyone on the call. We appreciate you being with us today. Our third quarter results demonstrate the durability of our core banking franchise and the consistency of our operating model. During the quarter, we remained focused on our core disciplines, prioritizing prudent balance sheet management, maintaining strict credit standards, and controlling non-interest expense. In the third quarter of 2026, we reported net income of $14 million, or $1.27 per common share. The results this quarter were impacted by a non-cash hedge accounting adjustment, which Rex will discuss further. Excluding this hedge accounting adjustment, our operating net income was $16.5 million, or $1.50 per diluted common share. Net interest income in the third quarter remained solid at $50.3 million, down slightly from the $50.8 million in the year-ago quarter. This comparison reflects the absence in 2026 of the approximately $2 million of quarterly interest income from a previously terminated swap that concluded in October 2025. Despite this headwind, disciplined asset management and active pricing on deposits and earning assets allowed for the expansion of our margin to 3.75% from 3.72% in the third quarter of 2025. During the quarter, we also took advantage of higher market yields, adding approximately $400 million of fixed-rate agency mortgage-backed securities and collateralized mortgage obligations. These purchases were funded primarily through variable-rate FHLB borrowings, helping mitigate downside risk from potential future interest rate reductions. While the narrower spread on this balance sheet trade will modestly reduce our overall net interest margin percentage going forward, it is accretive to our net interest income. Net interest income generation remains an ongoing priority, but credit and pricing discipline will continue to govern our approach to growing long-term stockholder value. Turning to our loan portfolio, period end balances continued to be heavily influenced by borrower repayments and refinancing activity. Elevated payoff activity in commercial real estate and multifamily loans led to a $59.3 million decline in net loans compared to June 30, 2026. Compared to December 31, 2025, net loan balances decreased $108.4 million to $4.25 billion. Despite these payoffs, our broader lending pipeline remains robust with total commitments expanding to $1.2 billion at September 30, including $641 million of unfunded commitments related to closed construction loans. On the funding side, total deposits decreased $232.1 million during the quarter, primarily reflecting the intentional runoff of $211.8 million in brokered deposits. Our core customer relationships remain strong, with non-interest-bearing checking expanding by $29.3 million year to date. As loan balances have moderated, we intentionally allowed higher cost brokered deposits to run off without replacement, utilizing lower cost FHLB borrowings instead, allowing for reduced interest expense and overall balance sheet flexibility. From a credit quality standpoint, our metrics remain excellent. Total non-performing assets at the end of the third quarter represented 0.18% of total assets, compared to 0.17% at June 30, and non-performing loans were 0.03% of total loans. Net charge-offs were $397,000 for the quarter, and we did not record a provision for credit losses on our outstanding portfolio. The provision you saw in our income statement related to our unfunded commitments. Other real estate owned increased $20.4 million, primarily reflecting the reclassification of $11.1 million in closed banking center properties held for sale following our branch consolidations rather than credit related foreclosures. For our foreclosed properties, independent appraisals continue to support our carrying values, and we do not anticipate any aggregate loss upon their ultimate disposition. Similarly, we do not expect an aggregate loss on the disposition of our former banking centers facilities either at this time. Expense discipline remains a priority for our bank with non-interest expense decreasing to $36.3 million compared to the $38.2 million in the second quarter of 2026. The second quarter expense amount was more than normal due to the charge for the banking center closures. As of October 1, we completed the consolidation of the 9 banking centers and the elimination of 66 positions across various divisions in our company. As affected employees remained in their roles through the end of the third quarter, the associated cost savings will begin to be realized in the fourth quarter. Ultimately, we believe this will allow for better alignment with our customers' banking preferences along with our continued pursuit of operational efficiencies as technology and delivery channels evolve. As we move through the remainder of 2026, we remain focused on protecting asset quality, executing thoughtful operational improvements, and consistently building long-term value for our stockholders. The lending and funding environments remain competitive, but we are navigating this landscape from a position of strength. With that, I will turn the call over to Rex for a more detailed discussion of the financials. Rex Copeland: All right, thank you, Joe, and good afternoon, everyone. I will provide a little more detail on our third quarter 2026 financial performance and how it compares to both prior year quarter and the linked second quarter. As we mentioned, for the quarter ended September 30, 2026, we reported preliminary net income of $14.0 million, or $1.27 per diluted common share, compared to $17.8 million, or $1.56 per diluted common share, in the third quarter of 2025, and $15.8 million, or $1.43 per diluted common share, in the linked second quarter of 2026. Excluding the non-cash hedge accounting adjustment, non-GAAP net income was $16.5 million, or $1.50 per diluted common share. During the third quarter of 2026, the company identified historical periods in which variable rate loan balances, meeting the original cash flow hedge designation criteria, were insufficient to support the full designated notional amount of its interest rate swaps. Accordingly, portions of the swaps were not eligible to receive hedge accounting during those periods. Consequently, historical fair value changes and settlements previously recorded in accumulated other comprehensive income were reclassified to earnings. These historical adjustments resulted in a one-time non-cash charge to the income statement of approximately $3.5 million pre-tax, comprised of a $4.1 million reduction in non-interest income and a $504,000 increase in interest income. Including a benefit to interest income described below, the net pre-tax impact of $3.3 million, approximately $2.5 million after-tax, or $0.23 per diluted share, had zero impact on total stockholders' equity or cash balances in the third quarter of 2026. And subsequent to the $3.5 million earnings reclassification that we just talked about, the company adopted ASU 2025-09, allowing for the redesignation of its two existing interest rate swaps. This redesignation resulted in an offsetting increase in interest income of $279,000 in the third quarter of 2026. An approximately $170,000 per month increase in interest income will be realized through April 2028. Consequently, the $3.5 million charge to income in the third quarter of 2026 will be entirely recovered through interest income over the remaining life of the redesignated interest rate swaps. Net interest income for the quarter totaled $50.3 million compared to $50.8 million in the third quarter of 2025 and $49.5 million in the second quarter of 2026. Compared to the prior year quarter, net interest income declined by $504,000, driven primarily by the absence in 2026 of approximately $2 million of quarterly interest income from a previously terminated swap that concluded in October 2025. Additionally, lower average loan balances and lower market interest rates, which impacted yields on variable rate loans, were mostly offset by lower interest expense on deposits, disciplined funding cost management, and additional interest income from investment securities purchased during the quarter. As Joe mentioned, we purchased approximately $400 million of fixed-rate agency mortgage-backed securities and collateralized mortgage obligations in the third quarter. These securities have an expected effective duration of approximately 5 to 6 years with final maturities primarily in 2032 and 2033 for about $150 million of these securities and in 2028 for about $100 million of these securities. These securities have an expected weighted average yield between 4.80% and 5%. While this leverage trade generates positive net interest income, the spread is narrower than our core earning assets and is expected to modestly reduce our overall reported net interest margin percentage in future quarters, while providing meaningful downside protection should market interest rates decline significantly. Compared to the linked second quarter of 2026, net interest income increased $776,000. A portion of this increase was aided by one additional calendar day in the third quarter and investment portfolio additions alongside the initial interest income accretion recognized from our redesignated interest rate swaps. Net interest margin was 3.75% for the third quarter compared to 3.72% in the prior year quarter and 3.76% in the second quarter of 2026. Non-interest income for the quarter was $3.4 million compared to $7.1 million in the third quarter of 2025 and $7.4 million in the second quarter of 2026. The year-over-year decrease was driven by the $4.1 million hedge accounting adjustment discussed previously. Partially offsetting this was a $240,000 increase in late charges and fees on loans totaling $429,000, primarily due to $282,000 in prepayment penalties collected on 2 commercial loans that paid off during the quarter. Other income also included $116,000 in origination fees for a back-to-back interest rate swap on a new commercial real estate loan. Commission income totaled $486,000 in the 2026 third quarter, reflecting continued customer demand for fixed annuity products. Total non-interest expense was $36.3 million compared to $36.1 million in the third quarter of 2025 and down $1.9 million from $38.2 million in the second quarter of 2026. That sequential decrease reflects the non-recurrence of the $2.1 million charge in branch consolidation and severance recorded in the second quarter of 2026. Salaries and employee benefits decreased $565,000 compared to the prior year quarter to $19.6 million, reflecting lower incentive accruals, staffing adjustments in some lending areas, and lower expected severance payouts. Net occupancy and equipment expense increased $428,000 compared to the prior year quarter to $9.3 million, primarily due to a $434,000 increase in computer licensing and core support expenses as our planned investments in core systems and data security continue to cycle online. As Joe noted earlier, our consolidation of 9 banking centers and the elimination of other positions across the company were completed by October 1st. The banking center consolidations and workforce reductions are expected to result in approximately $4.4 million to $4.8 million in non-interest expense savings beginning in the fourth quarter of 2026. These savings are expected to be partially offset by some customer deposit attrition in the affected locations over time, which will likely be replaced by higher-cost alternative funding sources. These actions combined are expected to result in approximately $2.3 million to $2.7 million in annual pre-tax income improvement beginning in the fourth quarter of this year. Our efficiency ratio for the quarter was 67.57%, and normalized to 63.69% when excluding the hedge accounting adjustment. For income taxes, the company's effective tax rate for the three months ended September 30, 2026 was approximately 16.3% compared to 19.7% in the same period in 2025. Through the first 9 months of 2026, the effective tax rate was 16.9% compared to 19.4% in the prior year period. The lower effective tax rate in the third quarter was driven by our usual tax credits and higher allowable tax deductions resulting from employee stock option exercises. Going forward, we continue to expect our combined federal and state effective tax rate to range generally from 18% to 19.5% in future periods. Moving on to the balance sheet, total assets ended the quarter at approximately $5.82 billion, up from $5.52 billion at June 30, primarily reflecting the $400 million investment portfolio increase. Gross loans receivable stood at $4.32 billion. Total net loans, excluding mortgage loans held for sale, were $4.25 billion, down $59.3 million sequentially, and down $108.4 million from December 31, 2025. Over the first 9 months of the year, net loans decreased by 2.5%, driven by repayments in commercial real estate, which was down $95.8 million net, and multifamily, which was down $105.6 million net, partially offset by an $83 million expansion in construction balances. As Joe highlighted, repayments on our loan portfolio are difficult to predict and may continue to drive volatility in our loan balances in future quarters. However, our origination activity remains healthy as our pipeline of unfunded loan commitments expanded to $1.20 billion, led by $640.8 million in unfunded construction commitments on loans which are already closed. On the funding side, total deposits ended the quarter at approximately $4.07 billion, down $232.1 million from June 30, 2026. Given the pricing and term advantage of FHLB borrowings, we intentionally allowed higher-cost brokered balances to mature without replacement. These brokered maturities constituted $211.8 million of the $232.1 million deposit reduction in the third quarter. Excluding this planned runoff, non-brokered deposits remained relatively stable during the quarter. Our deposit mix consisted of $2.22 billion in interest-bearing checking, $870.8 million in non-interest-bearing checking, $618.6 million in time deposits, and $363.8 million in brokered deposits at September 30. Uninsured deposits, excluding our internal deposit balances, are estimated at $686.2 million, or 16.9% of total deposits. At September 30, 2026, secured borrowing line availability at the Federal Home Loan Bank and Federal Reserve Bank was $1.10 billion and $370.9 million, respectively, alongside cash and cash equivalents of $161.7 million. From asset quality perspective, overall performance remained strong. Non-performing assets and potential problem loans combined totaled $11.9 million. Non-performing assets were $10.5 million, or 0.18% of total assets, compared to $9.4 million, or 0.17% of assets, at June 30, 2026, and $8.1 million, or 0.15% of total assets, at December 31, 2025. Non-performing loans were $1.19 million, or 0.03% of total loans, while potential problem loans closed the quarter at $1.43 million. Net charge-offs were $397,000 in the third quarter of 2026, or an annualized rate of 0.04% of average loans. During both the 3 and 9 months ended September 30, 2026, we did not record a provision expense on our outstanding loan portfolio, but recognized a provision for unfunded commitments of $674,000 in the third quarter of 2026 due to growth in the commitment pipeline. The bank's allowance for credit losses was stable at 1.47% of total loans. Overall, our core credit metrics continue to reflect our longstanding focus on disciplined risk management and a portfolio that is performing well. Other real estate owned increased $14.4 million from December 31, 2025 to $20.4 million at September 30. As Joe highlighted, $11.1 million of this increase represented the nine closed retail banking centers held for sale now following our branch consolidations. Total foreclosed properties stood at $9.3 million, consisting primarily of an office building at $7.0 million, where we capitalized $479,000 in safety and fire suppression upgrades in the quarter, and a multifamily property at $2.3 million, where we capitalized $490,000 in property improvements. Independent appraisals continue to support these carrying values on both assets. Our capital position remained a key strength. Total stockholders' equity at September 30, 2026 was $612.5 million, representing 10.5% of total assets and a book value of $56.97 per common share, compared to $636.1 million, or $55.85 per common share, at December 31, 2025. The decline in stockholders' equity was primarily a function of higher market interest rates, resulting in a $33.2 million increase in the unrealized losses captured in our AOCI portion of equity. Outside of the AOCI impact, capital in the 9-month period was supported by $47.3 million of net income and $13.8 million from stock issued for option exercises, partially offset by $14.0 million in dividends declared on common stock and $37.5 million in common stock buybacks. Throughout the first 9 months of the year, we have repurchased 542,000 shares (sic) [542,500 shares] of common stock at an average price of $68.67. Approximately 145,000 shares remained available under our current stock repurchase authorization at quarter end, and this month our board approved a new 1 million share repurchase authorization to succeed the existing program once completed. Our board of directors also declared our regular quarterly cash dividend of $0.40 per common share in September. Overall, our third quarter results reflect solid execution throughout our business. Our net interest margin remains resilient, our core deposit mix remains stable, and our asset quality trends remain solid. Our capital benchmarks sit at strong levels, and we are well positioned for continued operational success. That concludes my remarks, and now we are ready to take questions. Operator: [Operator Instructions] Our first question comes from the line of John Rodis of Brean Capital. Your line is now open. John Rodis: Rex, the investment in the securities portfolio, so you bought, I think you said roughly $400 million, and you said average yield around 4.9%, give or take, in the rate. Rex Copeland: It'll vary slightly, but 4.8% to 5% is what it should. So 4.9% is sort of an average in there, yes. John Rodis: And so what was the net spread roughly? So what were you paying initially in the quarter? And what was the timing? When did you buy them in the quarter? Did you get a full quarter's impact? It does not look like it based on the average balances. Rex Copeland: So we bought a little bit of it in July, more in August, and some more in September. So, I say -- I think the biggest chunk of it was probably in August, John, but we did some in July and September as well. And so I would say at the time we started buying, of course, the Fed hadn't raised rates. So just overnight borrowing costs at the Home Loan Bank were probably a little less than 3.90%, 3.95% something like that maybe. John Rodis: Okay. So your net spread on this with the higher rates, I mean, it's a 100 basis points or less, give or take, correct? Rex Copeland: Right. And now that, I mean, the borrowing cost at the Home Loan Bank is, give or take, you know, 4.25% now. So, yes, that is sort of like the spread would be the difference between that and the yield. John Rodis: Yes, so obviously it's additive to net interest income but dilutive to the margin. Any plans to purchase any more securities? Rex Copeland: Not really at this time, I do not think so. You know, plans can change, but we think we got what we wanted to do there. John Rodis: Okay. So, and then I just want to make sure I am looking at it right as far as the, I guess, puts and takes with the net interest income dollars and then the hedging treatment. So, it looks like all things equal, you had a one-time benefit of the $500,000 roughly and then a recurring benefit, I guess, into 2028. This quarter was roughly $300,000, and then going forward, you will pick up another $200,000 a quarter. Am I thinking about that right? Rex Copeland: Yes. It will be more than that. The first quarter, yes, I think you are right. We had an initial call it $500,000 added to interest income, and then we had another $279,000 of this accretion income that we took in. And then it should be about another roughly $170,000 a month of accretion income that would go back into interest income to recapture that $3.5 million that was the one-time hit to non-interest income in this quarter. John Rodis: Yes, so I will just try asking this, but any, I mean, as far as the margin goes, I mean, it seems like directionally, it is probably down a little bit, especially with the securities, but do you think like 3.65% to 3.70% range is reasonable? Or? Rex Copeland: Well, that is probably reasonable. I mean, so yes, we will see -- we would see a decrease in the margin itself for the securities purchase, which would be fairly modest, but there would be some decrease there. And then partially offsetting that, or maybe offsetting a fair amount, is going to be this accretion income basically for the next six quarters is when that accretion income is going to come back in, John. John Rodis: Yes, but I am just trying to put it all together. It seems like the margin maybe in that range seems reasonable. Rex Copeland: Yes. I think so. John Rodis: Okay. Okay. Joe, maybe a question for you just, loan portfolio continue to trend down. Any thoughts on what we see over the next quarter or 2? Joseph Turner: You know, I mean, same comment we always make, John. It's really difficult to predict, based on, a lot of it is based on just payoffs. I mean, it's possible that with rates being up a little bit, payoff activity could be down, which would be a bullish thing for loan growth. But, it's just -- the reason we don't give guidance is we just don't feel like, we have a lot of real good clear information. I mean we have some visibility, but it's probably a whole lot more limited than what you guys think. So, I mean, yes, I could see how higher interest rates could slow down refinancing activity, and we could -- have loans on our books longer, which would be positive. But it is just, kind of, time will tell. John Rodis: Yes, yes. As far as the new buybacks, so you authorized another 1 million shares, all things equal, I assume you sort of continue to do what you have been doing, maybe buying back 100,000 shares a quarter? Joseph Turner: Yes, I mean, we are kind of in and out from time to time. Obviously, you can see from our activity that we do think it's a positive thing for our shareholders at these levels, at these price levels. So I don't see anything right now that would change our opinion about that. Operator: One moment for our next question. Our next question comes from the line of Damon DelMonte of KBW. Damon Del Monte: Joe, just a question on the loans and the payoffs. I mean, obviously, payoffs and refinancings are happening all over the industry. But I was just wondering, is there anything different with your approach of lending which allows you or which results in you guys having more payoffs than origination activity? Like, are these more like transactional accounts where you don't have an established relationship with the borrower where you can maybe work with them and, offer them a more, you know, a competitive rate that would keep them with you guys? I am just looking for any, any color on that. Joseph Turner: No, I mean, like usually when we see a payoff, Damon, it's coming on terms that are from the borrower's perspective, just, terms that we wouldn't be interested in. I mean, usually, I mean, we are involved in the construction part of the project. And so, just as an example, maybe a $30 million apartment project, we are doing, two-thirds of the cost, $20 million with a loan. And when they go to refinance that, they are looking at borrowing substantially more than what we have loaned and either significantly limiting or maybe removing their guarantees and lessening the rate a lot. So it's just not a structure that we would be interested in. Rex Copeland: And other things are just projects get completed and the sponsor sells the project. Joseph Turner: Yeah, right. Yes, there is both, refinancing into a permanent mortgage and sales. Damon Del Monte: Got you, okay. And are these payoffs and refinancing happening anywhere in particular in your footprint? Is it like a different, is it down like Texas or more like in the northern Midwest or anything? Joseph Turner: No, not really. I mean, I think they happen all over. Damon Del Monte: Okay. Okay. And then I guess my next question on expenses with the cost saves kind of coming in here in the fourth quarter, can we assume that this quarter's level will go down because of those savings or is there some, already preplanned growth in expenses that would kind of neutralize the impact? Rex Copeland: I do not think there is really -- I mean, I think there could be some increases, but they won't be of the magnitude or it shouldn't be of the magnitude of what we are talking about dropping as far as the costs go. We will still have a little bit of the cost -- I mean, there will be a little bit of the cost still probably in there in October, but most of the quarter will be free of those costs and charges. So I think we should see lower expenses that we outlined in the fourth quarter, generally speaking. Could be a little bit of offset to it, but not. Joseph Turner: Yes, we have talked a bit on these calls, Damon, about we are in the process of upgrading our system technology platform primarily with Jack Henry, and as more of those products roll out, and I think we're substantially through that, but there may be, there could be another one or two of those roll out, and that could be some additional expense. I don't have off the top of my head what that would be, but that would be the only caveat I would give. Operator: Thank you. I am showing no further questions at this time. I will now turn it back to Joe for closing remarks. Joseph Turner: All right. I appreciate everybody being with us, and we'll look forward to talking to you again after the first of the year. Thank you. Operator: Thank you for your participation in today's conference. This does conclude the program. 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- Interested in Great Southern Bancorp, Inc.? Here are five stocks we like better. - Third-quarter earnings were reduced by a one-time, non-cash hedge accounting charge. Great Southern reported net income of $14.0 million, or $1.27 per share, versus adjusted operating earnings of $16.5 million, or $1.50 per share; the company expects redesigned swaps to generate about $170,000 in monthly interest income through April 2028. - Loan balances declined despite a sizable pipeline, while credit quality remained strong. Net loans fell to $4.25 billion amid commercial real estate and multifamily repayments and refinancing, but nonperforming assets remained just 0.18% of total assets and annualized net charge-offs were 0.04% of average loans. - Branch consolidation is expected to improve profitability beginning in Q4. The closure of nine banking centers and elimination of 66 positions is projected to reduce annual expenses by $4.4 million to $4.8 million, resulting in estimated pretax income improvement of $2.3 million to $2.7 million after funding and deposit-related costs. Great Southern Bancorp (NASDAQ:GSBC) reported third-quarter 2026 preliminary net income of $14.0 million, or $1.27 per diluted share, as a non-cash hedge accounting adjustment reduced reported earnings. Excluding that item, the company said operating, non-GAAP net income was $16.5 million, or $1.50 per diluted share. The reported result compared with net income of $17.8 million, or $1.56 per diluted share, in the third quarter of 2025 and $15.8 million, or $1.43 per diluted share, in the second quarter of 2026. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over President and CEO Joe Turner said the quarter reflected the durability of the company's core banking franchise, citing balance-sheet management, credit discipline and expense control. "Net interest income generation remains an ongoing priority," Turner said, while adding that credit and pricing discipline would govern the company's approach to long-term value creation. Chief Financial Officer Rex Copeland said the company identified historical periods when variable-rate loan balances qualifying for cash-flow hedge accounting were insufficient to support the full designated notional amounts of its interest-rate swaps. As a result, portions of those swaps were not eligible for hedge accounting during those periods. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? The review resulted in a one-time, non-cash pre-tax charge of about $3.5 million. The amount included a $4.1 million reduction in non-interest income, partly offset by a $504,000 increase in interest income. The net pre-tax impact was $3.3 million, or about $2.5 million after tax and $0.23 per diluted share. Copeland said the adjustment had no impact on total stockholders' equity or cash balances. Following the reclassification, the company adopted ASU 2025-09 and redesignated its two existing interest-rate swaps. The redesignation added $279,000 to third-quarter interest income, and Copeland said it is expected to contribute about $170,000 per month through April 2028. The company expects the future interest income to fully recover the third-quarter charge over the remaining life of the redesignated swaps. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price Net interest income totaled $50.3 million, compared with $50.8 million a year earlier and $49.5 million in the prior quarter. The year-over-year decline largely reflected the absence of about $2 million in quarterly interest income from a previously terminated swap that ended in October 2025. Net interest margin was 3.75%, up from 3.72% in the year-earlier period and slightly below 3.76% in the second quarter. During the quarter, Great Southern purchased about $400 million in fixed-rate agency mortgage-backed securities and collateralized mortgage obligations. The investments carry expected weighted-average yields between 4.80% and 5.0%, with an expected effective duration of roughly five to six years. The purchases were funded primarily through variable-rate Federal Home Loan Bank borrowings. Copeland said the trade is expected to provide positive net interest income and downside protection if market rates decline substantially, though its narrower spread relative to core earning assets is expected to modestly reduce reported net interest margin in future quarters. In response to analyst questions, he said the company had no current plans for additional securities purchases. During the question-and-answer session, Copeland said a net interest margin in the range of 3.65% to 3.70% appeared reasonable, reflecting the impact of the securities purchases and offsetting accretion income from the redesignated swaps. Total net loans, excluding mortgage loans held for sale, stood at $4.25 billion at Sept. 30, down $59.3 million from the end of the second quarter and down $108.4 million from Dec. 31, 2025. Over the first nine months of the year, commercial real estate balances declined by $95.8 million and multifamily balances fell by $105.6 million, partly offset by an $83 million increase in construction balances. Turner said elevated payoff activity in commercial real estate and multifamily loans continued to influence loan balances. He told analysts that refinancings often involve larger borrowing amounts, reduced guarantees and lower rates that do not fit the bank's preferred lending structure. Other loans are repaid when completed projects are sold, he said. The company's pipeline remained sizable, with total commitments reaching $1.2 billion at quarter-end, including $640.8 million in unfunded construction commitments on already closed loans. Credit metrics remained low. Nonperforming assets were $10.5 million, or 0.18% of total assets, compared with 0.17% at June 30. Nonperforming loans were $1.19 million, or 0.03% of total loans. Net charge-offs totaled $397,000, equivalent to an annualized 0.04% of average loans. Great Southern did not record a provision for credit losses on outstanding loans, though it recorded a $674,000 provision for unfunded commitments as its commitment pipeline grew. Total deposits declined $232.1 million during the quarter to about $4.07 billion, driven primarily by the intentional runoff of $211.8 million in higher-cost brokered deposits. The company instead used lower-cost FHLB borrowings, while non-brokered deposits remained relatively stable, according to management. Non-interest expense was $36.3 million, compared with $38.2 million in the second quarter, when the company recorded a $2.1 million branch-consolidation and severance charge. Great Southern completed the consolidation of nine banking centers and eliminated 66 positions across the company as of Oct. 1. Management expects the actions to generate approximately $4.4 million to $4.8 million of non-interest expense savings beginning in the fourth quarter. After considering expected deposit attrition and replacement funding costs, the company expects annual pre-tax income improvement of about $2.3 million to $2.7 million beginning in the fourth quarter. Turner said some costs related to technology upgrades could continue, while Copeland said management generally expects fourth-quarter expenses to decline despite potential offsets. Great Southern ended the quarter with $612.5 million in stockholders' equity, equal to 10.5% of total assets, and a book value of $56.97 per common share. During the first nine months of 2026, the company repurchased 542,000 shares at an average price of $68.67. Its board approved a new authorization to repurchase 1 million shares after the existing authorization is completed and also declared a quarterly cash dividend of $0.43 per share. Great Southern Bancorp, Inc is the bank holding company for Great Southern Bank, a full-service financial institution headquartered in Springfield, Missouri. The company provides banking and financial services to individuals, families, businesses and institutions through a network of banking centers and other delivery channels. Great Southern Bank offers deposit products, residential and commercial real estate lending, construction and development financing, commercial business loans, consumer loans and mortgage services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Great Southern Bancorp Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Great Southern Bancorp (GSBC) came out with quarterly earnings of $1.5 per share, beating the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.91%. A quarter ago, it was expected that this bank holding company would post earnings of $1.38 per share when it actually produced earnings of $1.57, delivering a surprise of +13.77%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Great Southern Bancorp, which belongs to the Zacks Financial - Savings and Loan industry, posted revenues of $57.74 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.85%. This compares to year-ago revenues of $57.83 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Great Southern Bancorp shares have added about 27.7% since the beginning of the year versus the S&P 500's gain of 12.7%. While Great Southern Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Great Southern Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.44 on $55.1 million in revenues for the coming quarter and $5.85 on $222.9 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Savings and Loan is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. WSFS Financial (WSFS), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 22. This bank holding company is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of +15%. The consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. WSFS Financial's revenues are expected to be $287.45 million, up 6.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Great Southern Bancorp, Inc. (GSBC) : Free Stock Analysis Report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Preliminary Financial Results and Business Update for the Quarter Ended September 30, 2026 SPRINGFIELD, Mo., Oct. 21, 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 September 30, 2026, were $1.27 per diluted common share ($14.0 million net income) compared to $1.56 per diluted common share ($17.8 million net income) for the three months ended September 30, 2025. The 2026 third quarter results were negatively impacted by non-cash cash flow hedge accounting adjustments recorded during the period, which is discussed below and under "Net Interest Income" and "Non-Interest Income." For the quarter ended September 30, 2026, annualized return on average common equity was 8.68%, annualized return on average assets was 0.99%, annualized net interest margin was 3.75% and the efficiency ratio was 67.57%, compared to 11.30%, 1.23%, 3.72% and 62.45%, respectively, for the quarter ended September 30, 2025. Excluding the non-cash cash flow hedge accounting adjustments referenced above, for the quarter ended September 30, 2026, net income was $16.5 million, earnings per diluted common share were $1.50, annualized return on average common equity was 10.24%, annualized return on average assets was 1.17%, and the efficiency ratio was 63.68%. A reconciliation of these non-GAAP calculations is detailed in "Non-GAAP Financial Measures" below. Key Results: - Net Interest Income: Net interest income for the third quarter of 2026 decreased $504,000 (1.0%) to $50.3 million compared to $50.8 million for the third quarter of 2025, largely driven by the completion of accounting recognition in October 2025 of interest income accretion from a previously terminated interest rate swap. Additionally, lower interest income on loans and an increase in short-term borrowings costs was mostly offset by lower interest expense on deposits and increased interest income on investment securities. Annualized net interest margin was 3.75% for the quarter ended September 30, 2026, compared to 3.72% for the quarter ended September 30, 2025, and 3.76% for the quarter ended June 30, 2026. - Asset Quality: Non-performing assets and potential problem loans totaled $11.9 million at September 30, 2026, an increase of $2.4 million from $9.5 million at December 31, 2025. At September 30, 2026, non-performing assets were $10.5 million (0.18% of total assets), an increase of $2.4 million from $8.1 million (0.15% of total assets) at December 31, 2025. See "Asset Quality" below. Other real estate owned increased to $20.4 million, primarily reflecting the reclassification of $11.1 million in closed banking center properties held for sale, rather than credit-related foreclosures. - Loans: Total net loans, excluding mortgage loans held for sale, decreased $108.4 million, or 2.5%, from $4.36 billion at December 31, 2025 to $4.25 billion at September 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 and third quarters compared to the first quarter of 2026. - Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of $1.10 billion and $371 million, respectively, at September 30, 2026. - Capital: The Company's capital position remained strong as of September 30, 2026, significantly exceeding the "well-capitalized" thresholds established by regulatory agencies. See "Capital" below. Certain Income and Expense Item Impacting Third Quarter 2026 Results: During the three months ended September 30, 2026, there were certain income items that impacted the Company's results of operations. During the third quarter of 2026, the Company identified historical periods in which variable-rate loan balances meeting the original cash flow hedge designation criteria were insufficient to support the full designated notional amount of its interest rate swaps. Accordingly, portions of the swaps were not eligible to receive hedge accounting treatment during those periods. Related historical fair-value changes and settlements were required to be recognized in earnings rather than being accounted for under the original cash flow hedge designations. Consequently, amounts previously recorded in accumulated other comprehensive income relating to this portion of forecasted interest receipts determined to be probable of not occurring were reclassified into earnings. These historical adjustments resulted in a one-time, non-cash reclassification charge of approximately $3.5 million (before tax effect), comprised of a $4.1 million reduction in non-interest income and a $504,000 increase in interest income. Including a benefit to interest income noted below, the net pre-tax impact of $3.3 million (approximately $2.5 million after-tax, or $0.23 per diluted share) had zero impact on total stockholders' equity and cash balances in the third quarter of 2026. The Company adopted ASU 2025-09 and separately redesignated its two existing interest rate swaps, with a combined notional amount of $400 million, into new cash flow hedging relationships supported by an expanded population of qualifying variable-rate loans. Amounts remaining in AOCI associated with forecasted interest receipts still probable of occurring will be reclassified into earnings over the periods in which those receipts affect earnings. The off-market fair values of the swaps at redesignation will be recognized through the new hedge accounting relationships, providing an offsetting earnings effect. The net future earnings benefit associated with these two components is expected to be approximately $3.5 million through May 2028, including $279,000 recognized in the third quarter of 2026. Consequently, the $3.5 million charge to income in the third quarter of 2026 will be entirely recovered through interest income over the remaining life of the redesignated interest rate swaps. Selected Financial Data: | Three Months Ended | | September 30, | | | September 30, | | | June 30, | | 2026 | | | 2025 | | | 2026 | | (Dollars in thousands, except per share data) | | | | Net interest income | $ | 50,269 | | | $ | 50,773 | | | $ | 49,493 | Provision (credit) for credit losses on loans and unfunded commitments | | 674 | | | | (379 | ) | | | 8 | Non-interest income | | 3,412 | | | | 7,062 | | | | 7,375 | Non-interest expense | | 36,274 | | | | 36,116 | | | | 38,222 | Provision for income taxes | | 2,724 | | | | 4,346 | | | | 2,843 | | | | | | | | | | | Net income | $ | 14,009 | | | $ | 17,752 | | | $ | 15,795 | | | | | | | | | | | Earnings per diluted common share | $ | 1.27 | | | $ | 1.56 | | | $ | 1.43 | | | | | | | | | | | | Joseph W. Turner, President and CEO of Great Southern, commented, "Our third quarter results demonstrate the durability of our core banking franchise and the consistency of our operating model. During the quarter, we continued to execute on our proven fundamentals, prioritizing prudent balance sheet management, maintaining strict credit standards, and controlling non-interest expense. We reported preliminary net income of $14.0 million, or $1.27 per diluted common share, for the third quarter of 2026, compared to $17.8 million, or $1.56 per diluted common share, for the third quarter of 2025. As discussed above, third quarter 2026 results were negatively impacted by a non-cash hedge accounting adjustment recorded during the period. Excluding this non-cash adjustment, net income was $16.5 million, or $1.50 per diluted common share. For the nine months ended September 30, 2026, preliminary net income totaled $47.3 million, or $4.27 per diluted common share, compared to $54.7 million, or $4.74 per diluted common share, in the first nine months of 2025." Turner noted, "Net interest income in the third quarter of 2026 remained solid at $50.3 million, driven by active asset-liability management and pricing discipline on deposits and earning assets. Our net interest margin was 3.75% in the quarter, compared to 3.72% in the third quarter of 2025 and 3.76% in the second quarter of 2026. Our pricing discipline helped mitigate the absence of $2.0 million in quarterly interest income recorded in the prior year period from a previously terminated interest rate swap, as well as lower earning assets, given the loan balance decline compared to a year ago. While the cash flow hedge accounting adjustment impacted both interest income and non-interest income this quarter, approximately $3.3 million is scheduled to accrete back into interest income over upcoming quarters through early 2028. Additionally, as market yields rose to attractive levels on investment securities, we purchased approximately $400 million of fixed-rate agency mortgage-backed securities and collateralized mortgage obligations, funded primarily by short-term FHLB borrowings, to help mitigate the risk of potential significant future market interest rate declines. Though the narrower spread on this leverage trade is expected to modestly reduce our overall net interest margin percentage in future periods, it currently generates positive net interest income. While net interest income generation remains an ongoing priority, credit and pricing discipline will continue to serve as the governing factors in our approach to long-term stockholder returns." Turner continued, "Turning to our loan portfolio, period-end balances were heavily influenced by borrower repayment and refinancing activity during the quarter. While we experienced good new loan origination activity and construction loan funding in the quarter, elevated payoff activity in commercial real estate and multi-family loans led to a $59 million decline in net loans compared to balances at the end of the 2026 second quarter and a $108 million decline compared to balances at December 31, 2025. Despite these payoffs, our pipeline of unfunded commitments remained robust, driven by construction commitments that increased to $641 million, while we continued to maintain a disciplined origination strategy grounded in conservative underwriting standards. On the funding side, core non-interest-bearing checking balances grew $29 million during the first nine months of 2026, reflecting the strength of our customer relationships. As loan balances moderated, we intentionally allowed $300 million of higher-cost brokered deposits to run off during the nine-month period, supporting our margin while preserving balance sheet flexibility." Turner added, "Asset quality remained very strong. Total non-performing assets were $10.5 million, or 0.18% of total assets, as of September 30, 2026, non-performing loans were just 0.03% of total loans, and net charge-offs were $397,000. We did not record a provision for credit losses on loans in the quarter or year to date. The $674,000 provision recorded in the third quarter was driven by an increase in our pipeline of unfunded commitments. Reported other real estate owned increased to $20.4 million, primarily reflecting the reclassification of $11.1 million in closed banking center properties held for sale, rather than credit-related foreclosures. For our foreclosed properties, independent valuations continue to support our carrying values, and we do not anticipate losses upon their ultimate resolution." Turner further commented, "Operating discipline remained a primary focus, with non-interest expense of $36.3 million in the 2026 third quarter. As of October 1, 2026, we completed the previously announced consolidation of nine banking centers and the elimination of 66 positions across various divisions in the Company. While our employees worked through the transition this quarter, we expect the operational efficiencies created by these actions to begin lowering our non-interest expense run-rate in the fourth quarter of 2026 as we outlined last quarter, producing an increase in annual pre-tax income of over $2 million." "Great Southern's capital and liquidity metrics remain very strong as we move into the final quarter of the year. As of September 30, 2026, tangible common equity was 10.4% of tangible assets and book value per common share was $56.97, each declining compared to the second quarter of 2026, reflecting the impact of higher market interest rates on investment security valuations alongside the expansion of our investment portfolio. During the third quarter of 2026, we repurchased 159,212 common shares, and in October 2026, our Board of Directors approved a new repurchase authorization of up to one million shares to succeed our existing program. Looking ahead, we remain focused on protecting asset quality, executing thoughtful operational improvements, and building long-term value for our stockholders," Turner concluded. NET INTEREST INCOME | Three Months Ended | | September 30, | | | September 30, | | | June 30, | | 2026 | | | 2025 | | | 2026 | | (Dollars in thousands) Interest Income | $ | 74,121 | | | $ | 79,079 | | | $ | 72,461 | Interest Expense | | 23,852 | | | | 28,306 | | | | 22,968 | Net Interest Income | $ | 50,269 | | | $ | 50,773 | | | $ | 49,493 | | | | | | | | | Net interest margin | | 3.75 | % | | | 3.72 | % | | | 3.76 | % Average interest-earning assets to average interest-bearing liabilities | | 130.2 | % | | | 128.1 | % | | | 129.9 | % | | | | | | | | | | | Net interest income for the third quarter of 2026 decreased $504,000 (1.0%) to $50.3 million, compared to $50.8 million for the third quarter of 2025. This decrease was driven primarily by a $2.0 million net reduction in quarterly interest income accretion associated with a previously terminated interest rate swap. Additionally, compared to the year-ago quarter, interest income declined due to lower loan balances and lower market rates, which primarily impacted the interest rates on existing variable-rate loans and newly originated fixed-rate loans. Mostly offsetting the decrease in interest income was reduced interest expense, due to the strategic management of maturing/repricing brokered deposits and the disciplined pricing of interest-bearing demand deposits. The decrease in interest income on loans was also partially offset by the purchase of additional investment securities during the third quarter of 2026. Annualized net interest margin was 3.75% in the third quarter of 2026, compared to 3.72% in the same period of 2025 and 3.76% in the second quarter of 2026. The average interest rate spread was 3.22% for the three months ended September 30, 2026, compared to 3.13% for the three months ended September 30, 2025 and 3.24% for the three months ended June 30, 2026. The average yield on total interest-earning assets decreased from 5.79% in the 2025 third quarter to 5.54% in the 2026 third quarter, with the average yield on loans decreasing 25 basis points, the average yield on investment securities increasing 29 basis points and the average yield on other interest earning assets (primarily funds held at the Federal Reserve Bank) decreasing 48 basis points. The average rate paid on total interest-bearing liabilities decreased from 2.66% in the 2025 third quarter to 2.32% in the 2026 third quarter, with the average rate paid on interest-bearing demand and savings deposits, time deposits and brokered deposits decreasing 24 basis points, 43 basis points and 53 basis points, respectively. The average rate paid on short-term borrowings decreased 53 basis points. 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 nine months 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 third quarter and the second quarter of 2026. In the third quarter of 2026, as yields on investment securities available in the market increased, we purchased approximately $400 million of agency mortgage-backed securities and collateralized mortgage obligation securities. We funded the purchases primarily with overnight borrowings from FHLB and subsequently pledged the purchased securities to the FHLB, preserving liquidity. These securities have an expected effective duration of approximately 5 years, with many having final maturities in 2032-2033. The weighted average yield on this total group of securities is expected to be approximately 4.80 - 5.00%. These securities are fixed rate, but the yield could vary depending on market interest rates and payment speeds. Based on market interest rates at September 30, 2026, these investment securities provide positive net interest income. However, the net interest spread on this leverage trade is narrower than the overall spread on the Company's interest-earning assets, which is expected to result in modest reductions in the Company's net interest margin and net interest spread. The purpose of adding these securities is to mitigate exposure to potential decreases in market interest rates, should those rates fall significantly and remain low for an extended time. 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 for years 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 | | September 30, | | | September 30, | | June 30, | | 2026 | | | 2025 | | 2026 | | (In thousands) Terminated interest rate swaps | $ | — | | | $ | 2,047 | | | $ | — | Active interest rate swaps net settlements impact | | (1,078 | ) | | | (1,761 | ) | | | (1,022 | ) Active interest rate swaps re-designation and accretion impact | | 783 | | | | — | | | | — | Increase (decrease) to interest income | $ | (295 | ) | | $ | 286 | | | $ | (1,022 | ) | | | | | | | | | | | The Company entered into an interest rate swap in October 2018, which was terminated in March 2020. Upon termination, the Company received $45.9 million, inclusive of accrued but unpaid interest, from its swap counterparty. The net amount, after deducting accrued interest and deferred income taxes, was accreted to interest income on loans monthly until the originally scheduled termination date of October 6, 2025. With this date having passed, the Company no longer has the benefit of that income from the terminated swap. At September 30, 2026, the Company had two active interest rate swaps with a combined notional amount of $400 million. In addition to the net interest settlements on these swaps, current period earnings were negatively impacted by the non-cash hedge accounting adjustments discussed above. There were impacts to both interest income and non-interest income in the quarter. The combined impact to interest income of net interest settlements and non-cash accounting adjustments related to these swaps in the three months ended September 30 ,2026 was a net reduction of interest income of $295,000, compared to $1.8 million in net interest settlements in the three months ended September 30, 2025. The Company expects to record approximately $520,000 of additional interest income in each of the upcoming quarters through the first quarter of 2028, with an additional $170,000 of interest income in the second quarter of 2028, from the net reclassification of frozen OCI and recognition of the off-market components of the redesignated interest rate swaps. The cumulative amount scheduled to accrete to interest income is $3.5 million, with $279,000 of this amount recorded in interest income in the third quarter of 2026. 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 and by another 75 basis points in late 2025. In September 2026, the FOMC reversed course and increased the federal funds rate by 25 basis points, indicating that further federal funds rate increases could occur in the next few quarters. As of September 30, 2026, time deposit maturities (including brokered time deposits) over the next 12 months were as follows: within three months — $362.5 million, with a weighted-average rate of 3.19%; within three to six months — $292.5 million, with a weighted-average rate of 2.97%; and within six to twelve months — $20.4 million, with a weighted-average rate of 1.32%. Based on time deposit market rates in September 2026, overall average replacement rates for maturing time deposits originated through our retail branch system are likely to be approximately 3.10 - 3.50%, depending on term. Brokered time deposit rates were generally significantly above 4.00% at September 30, 2026. NON-INTEREST INCOME For the quarter ended September 30, 2026, non-interest income decreased $3.7 million, to $3.4 million, when compared to the quarter ended September 30, 2025, primarily as a result of the following items: - Adjustments to historical cash flow hedge accounting: In the third quarter of 2026, the Company recorded a $4.1 million reduction in non-interest income related to retrospective hedge accounting corrections and the reclassification of AOCI associated with forecasted interest receipts determined to be probable of not occurring. The adjustments arose because qualifying loan balances were insufficient to support the full original hedge designations during certain historical periods. As described above, a portion of this adjustment was offset through additional interest income in the third quarter of 2026, and additional amounts are expected to be accreted back to interest income in future periods through May 1, 2028. - Late charges and fees on loans: Late charges and fees on loans increased $240,000, or 127.0%, from the prior-year quarter. This increase was primarily due to prepayment fees on two large unrelated loans, which were paid off in the third quarter of 2026. Prepayment penalty fees increased from $78,000 in the third quarter of 2025 to $282,000 in the third quarter of 2026. - Other income: Other income increased $208,000 compared to the prior-year quarter. Most of this increase was a result of the Company recording income of $116,000 related to fees received on the origination of back-to-back interest rate swaps as part of a new commercial real estate loan transaction, compared to no such fees occurring in the prior-year quarter. NON-INTEREST EXPENSE For the quarter ended September 30, 2026, non-interest expense increased $158,000, to $36.3 million, when compared to the quarter ended September 30, 2025, primarily as a result of the following items: - Salaries and employee benefits: Salaries and employee benefits decreased $565,000, or 2.8%, from the prior-year quarter. Officer and employee salaries combined decreased approximately $600,000 compared to the prior period, primarily due to lower bonus and incentive accruals, staff reductions in two loan production offices and a banking center that closed earlier this year, and a reduction in accrued severance/retention payments. - Net occupancy and equipment expenses: Net occupancy and equipment expenses increased $428,000, or 4.8%, from the prior-year quarter. Various components of computer license and support expenses, related to upgrades of core systems capabilities and disaster recovery site, collectively increased by $434,000 in the third quarter of 2026 compared to the third quarter of 2025. The Company's efficiency ratio for the quarter ended September 30, 2026, was 67.57% compared to 62.45% for the same quarter in 2025. The Company's ratio of non-interest expense to average assets was 2.56% for the three months ended September 30, 2026, compared to 2.50% for the three months ended September 30, 2025. Average assets for the three months ended September 30, 2026, decreased $109.0 million, or 1.9%, compared to the three months ended September 30, 2025, primarily due to the decline in the average balance of net loans, partially offset by an increase in the average balance of investment securities. INCOME TAXES For the three months ended September 30, 2026 and 2025, the Company's effective tax rate was 16.3% and 19.7%, respectively. For the nine months ended September 30, 2026 and 2025, the Company's effective tax rate was 16.9% and 19.4%, respectively. These effective rates were below the statutory federal tax rate of 21.0%, due primarily to the utilization of certain investment tax credits and the Company's tax-exempt investments and tax-exempt loans, which reduced the Company's effective tax rate. The effective rates in the 2026 periods also decreased due to a higher-than-normal level of deductions related to the significant amount of stock option exercises by the Company's employees. The Company's effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company's utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions and the overall level of pre-tax income. State tax expense estimates continually evolve as taxable income and apportionment between states are analyzed. The Company currently expects its effective tax rate (combined federal and state) will be approximately 18.0% to 19.5% in future periods. CAPITAL | September 30, | | December 31, | | June 30, | 2026 | | 2025 | | 2026 Consolidated Regulatory Capital Ratios | (Preliminary) | | | | | | Tier 1 Leverage Ratio | 12.2 | % | | 12.2 | % | | 12.4 | % Common Equity Tier 1 Capital Ratio | 13.7 | % | | 13.6 | % | | 14.0 | % Tier 1 Capital Ratio | 14.2 | % | | 14.1 | % | | 14.6 | % Total Capital Ratio | 15.4 | % | | 15.3 | % | | 15.8 | % Tangible Common Equity Ratio | 10.4 | % | | 11.2 | % | | 11.5 | % | | | | | | | | As of September 30, 2026, total stockholders' equity was $612.5 million, representing 10.5% of total assets and a book value of $56.97 per common share. This compares to total stockholders' equity of $636.1 million, or 11.4% of total assets, and a book value of $57.50 per common share at December 31, 2025. The $23.6 million decrease in stockholders' equity from December 31, 2025, was primarily driven by a $33.2 million increase in unrealized losses on the Company's investment securities and interest rate swaps. Additionally, stockholders' equity was reduced by $14.0 million in cash dividends declared on the Company's common stock and $37.5 million in common stock repurchases, partially offset by $47.3 million in net income and a $13.8 million increase from stock option exercises. The unrealized losses on the Company's available-for-sale investment securities and interest rate swaps totaled $65.4 million and $32.2 million (net of taxes) at September 30, 2026 and December 31, 2025, respectively. These net unrealized losses primarily resulted from increased intermediate-term market interest rates, which generally decreased the fair value of the investment securities and interest rate swaps. Market interest rates and interest rate expectations for future periods decreased early in the first quarter of 2026 before increasing significantly since March 2026 to levels much higher than those at December 31, 2025, ultimately resulting in decreases in the fair value of the Company's investment securities and interest rate swaps during the nine months ended September 30, 2026. The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $22.2 million and $16.6 million at September 30, 2026 and December 31, 2025, respectively, that were not included in its total capital balance. If unrealized losses on held-to-maturity securities were included in capital (net of taxes) at September 30, 2026 and December 31, 2025, they would have decreased total stockholder's equity at those dates by $16.7 million and $12.5 million, respectively. These amounts were equal to 2.7% and 2.0% of total stockholders' equity of $612.5 million at September 30, 2026 and $636.1 million at December 31, 2025, respectively. In April 2025, the Company's Board of Directors authorized the purchase, from time to time, of up to one million shares of the Company's common stock. As of September 30, 2026, approximately 145,000 shares remained available under this stock repurchase authorization. In October 2026, the Company's Board of Directors approved a new stock repurchase program, which will succeed the existing repurchase program following the repurchase of the existing program's remaining available shares. The new stock repurchase program authorizes the purchase, from time to time, of up to one million additional shares of the Company's common stock. During the three months ended September 30, 2026, the Company repurchased 159,212 shares of its common stock at an average price of $79.20, and the Company's Board of Directors declared a regular quarterly cash dividend of $0.43 per common share, which, combined, reduced stockholders' equity by $17.4 million. During the three months ended September 30, 2026, the Company experienced stock option exercises of 26,470 shares of its common stock at an average price of $55.60, which increased stockholders' equity by $2.0 million. During the nine months ended September 30, 2026, the Company repurchased 542,500 shares of its common stock at an average price of $68.67, and the Company's Board of Directors declared regular quarterly cash dividends totaling $1.29 per common share, which, combined, reduced stockholders' equity by $51.4 million. During the nine months ended September 30, 2026, the Company experienced stock option exercises of 231,950 shares of its common stock at an average price of $53.20, which increased stockholders' equity by $13.8 million. 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 September 30, 2026, the Company had the following available secured lines and on-balance sheet liquidity: | September 30, 2026 Federal Home Loan Bank line | | $1,096.0 million | Federal Reserve Bank line | | 370.9 million | Cash and cash equivalents | | 161.7 million | Unpledged securities – Available-for-sale | | 170.3 million | Unpledged securities – Held-to-maturity | | 22.9 million | | | | During the nine months ended September 30, 2026, the Company's total deposits decreased $412.8 million (9.2%). Interest-bearing checking balances decreased $72.6 million (3.2%), primarily in certain NOW and money market accounts, and non-interest-bearing checking balances increased $29.3 million (3.5%). Time deposits generated through the Company's banking center and corporate services networks decreased $69.9 million (10.2%). Brokered deposits, obtained through a variety of sources, decreased $300.0 million (45.2%). As brokered deposit pricing increased, the Company elected to prioritize FHLB borrowings given the favorable pricing advantage and flexibility. Most of this deposit decrease occurred in the third quarter of 2026, as total deposits decreased $232.1 million in the three months ended September 30, 2026. At September 30, 2026, the Company had the following deposit balances: | | | | September 30, 2026 Interest-bearing checking | | $2,216.8 million | Non-interest-bearing checking | | 870.8 million | Time deposits | | 618.6 million | Brokered deposits | | 363.8 million | | | | At September 30, 2026, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company's consolidated subsidiaries, were approximately $686.2 million (16.9% of total deposits). LOANS Total net loans, excluding mortgage loans held for sale, decreased $108.4 million, or 2.5%, from $4.36 billion at December 31, 2025 to $4.25 billion at September 30, 2026. This decrease was primarily driven by decreases in commercial real estate loans of $95.8 million and other residential (multi-family) loans of $105.6 million, partially offset by an increase in construction loans of $83.0 million. Compared to June 30, 2026, net loans decreased $59.3 million. 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 ($640.8 million at September 30, 2026). See the table below. 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): | September 30, 2026 | 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) | $ | 217,381 | | $ | 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 | | 113,781 | | | 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) | | 110,444 | | | 116,195 | | | 119,231 | | | 112,684 | | | 94,501 | | | 101,545 | Secured by real estate (not one-to four-family) | | 641,091 | | | 531,842 | | | 530,756 | | | 624,025 | | | 703,947 | | | 719,039 | | | | | | | | | | | | | | | | | | | Loan commitments not closed | | | | | | | | | | | | | | | | | | Secured by real estate (one-to four-family) | | 15,639 | | | 22,937 | | | 19,194 | | | 14,113 | | | 14,373 | | | 12,347 | Secured by real estate (not one-to four-family) | | 68,161 | | | 49,139 | | | 24,053 | | | 19,412 | | | 53,660 | | | 48,153 | Not secured by real estate – commercial business | | 31,623 | | | 33,940 | | | 35,762 | | | 38,262 | | | 22,884 | | | 11,763 | | | | | | | | | | | | | | | | | | | | $ | 1,198,120 | | $ | 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 the three and nine months ended September 30, 2026 and 2025, the Company did not record a provision expense on its portfolio of outstanding loans. Total net charge offs were $397,000 (one commercial business relationship was $313,000 of this total) for the three months ended September 30, 2026, compared to total net charge offs of $66,000 during the same period in the prior year. Total net charge offs were $1.2 million for the nine months ended September 30, 2026, compared to total net charge offs of $11,000 during the same period in the prior year. During the quarter ended September 30, 2026, the Company recorded a provision for losses on unfunded commitments of $674,000, compared to a negative provision for losses on unfunded commitments of $379,000 for the same period in 2025. For the nine months ended September 30, 2026, the Company recorded a negative provision for losses on unfunded commitments of $249,000, compared to a negative provision for losses on unfunded commitments of $837,000 for the same period in 2025. The Bank's allowance for credit losses as a percentage of total loans was 1.47% at September 30, 2026, compared to 1.46% at both December 31, 2025 and June 30, 2026. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank's loan portfolio at September 30, 2026, based on recent reviews of the portfolio and current economic conditions. However, if challenging economic conditions persist or worsen, or if management's assessment of the loan portfolio changes, additional provisions for credit losses may be required, which could adversely impact the Company's future financial performance. ASSET QUALITY At September 30, 2026, non-performing assets were $10.5 million, an increase of $2.4 million from $8.1 million at December 31, 2025, and an increase of $1.1 million compared to June 30, 2026. Non-performing assets as a percentage of total assets were 0.18% at September 30, 2026, compared to 0.15% at December 31, 2025. Activity in the non-performing loan categories during the quarter ended September 30, 2026, was as follows: | | Beginning Balance, July 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, September 30 | | (In thousands) | | | | | | | | | | | | | | | | | | | | | | | One- to four-family construction | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Subdivision construction | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Land development | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | One- to four-family residential | | 990 | | | 43 | | | — | | | — | | | — | | | — | | | (16 | ) | | 1,017 | Other residential (multi-family) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial business | | 36 | | | 100 | | | — | | | — | | | — | | | — | | | (36 | ) | | 100 | Consumer | | 7 | | | 70 | | | — | | | — | | | — | | | — | | | (2 | ) | | 75 | Total non-performing loans | $ | 1,033 | | $ | 213 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (54 | ) | $ | 1,192 | | | | | | | | | | | | | | | | | | | | | | | | - Compared to June 30, 2026, non-performing loans increased $159,000. - The non-performing one- to four-family residential category consisted of seven loans at September 30, 2026, one of which was added during the current quarter. - The largest relationship in the one- to four-family residential category totaled $386,000 at September 30, 2026. This relationship was added to non-performing loans in 2024 and is collateralized by a single-family residential property in southern Iowa. Activity in the potential problem loans categories during the quarter ended September 30, 2026, was as follows: | | Beginning Balance, July 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, September 30 | | (In thousands) | | | | | | | | | | | | | | | | | | | | | One- to four-family construction | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Subdivision construction | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Land development | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | One- to four-family residential | | 856 | | | 231 | | | — | | | — | | | — | | | — | | | (41 | ) | | 1,046 | Other residential (multi-family) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial real estate | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | Commercial business | | 12 | | | — | | | — | | | — | | | — | | | — | | | (1 | ) | | 11 | Consumer | | 289 | | | 137 | | | (26 | ) | | — | | | — | | | (11 | ) | | (12 | ) | | 377 | Total potential problem loans | $ | 1,157 | | $ | 368 | | $ | (26 | ) | $ | — | | $ | — | | $ | (11 | ) | $ | (54 | ) | $ | 1,434 | | | | | | | | | | | | | | | | | | | | | | - Compared to June 30, 2026, potential problem loans increased $277,000. - At September 30, 2026, the one- to four-family residential category consisted of 13 loans, two of which were added to potential problem loans during the current quarter. - The largest relationship in the one- to four-family category totaled $253,000 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 September 30, 2026, the consumer category of potential problem loans consisted of 16 loans, four of which were added during the current quarter. Activity in foreclosed assets and repossessions, excluding $11.1 million in properties which were not acquired through foreclosure (former banking center locations which were recently closed), during the quarter ended September 30, 2026 was as follows: | | Beginning Balance, July 1 | | Additions | | ORE and Repossession Sales | | Capitalized Costs | | ORE and Repossession Write-Downs | | Ending Balance, September 30 | | (In thousands) | | | | | | | | | | | | | | | | | | One-to four-family construction | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | Subdivision construction | | — | | | — | | | — | | | — | | | — | | | — | Land development | | — | | | — | | | — | | | — | | | — | | | — | Commercial construction | | — | | | — | | | — | | | — | | | — | | | — | One- to four-family residential | | — | | | — | | | — | | | — | | | — | | | — | Other residential (multi-family) | | 1,807 | | | — | | | — | | | 490 | | | — | | | 2,297 | Commercial real estate | | 6,542 | | | — | | | — | | | 479 | | | — | | | 7,021 | Commercial business | | — | | | — | | | — | | | — | | | — | | | — | Consumer | | 11 | | | 5 | | | (11 | ) | | — | | | — | | | 5 | Total foreclosed assets and repossessions | $ | 8,360 | | $ | 5 | | $ | (11 | ) | $ | 969 | | $ | — | | $ | 9,323 | | | | | | | | | | | | | | | | | | - Compared to June 30, 2026, foreclosed assets increased $963,000. - The largest asset in the commercial real estate category, totaling $7.0 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 September 30, 2026, the Company capitalized $479,000 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 September 30, 2026, the other residential (multi-family) category, totaling $2.3 million, consisted of one relationship that was transferred from non-performing loans in the second quarter of 2026. This asset consisted of an apartment complex in eastern Iowa. In the three months ended September 30, 2026, the Company capitalized $490,000 in improvements to the property. The Company expects that it will make significant additional repairs and improvements to this property. Such improvements are expected to ultimately cost approximately $800,000 and take several months to complete. The Company expects to capitalize these expenditures. These costs were contemplated as part of the charge-off analysis and disclosed when the relationship was transferred to foreclosed assets during the second quarter of 2026. BUSINESS INITIATIVES The Company's focus on technology initiatives and advancements with its core provider and key partners continues. These investments in both foundational projects and a heightened customer experience both drive and sustain an organizational emphasis on innovation and forward progress. In August 2026, the Bank launched an expanded eDocs initiative to Online Banking customers. The effort answers a customer satisfaction need while reducing operational costs. A continued expansion of electronic document offerings is ongoing. The banking center located at 3839 Indian Hills Dr. in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel and is scheduled to reopen in November. This investment brings a fully refreshed banking center to the Bank's Sioux City customers, including updated and brightened interiors, updated technology, and the installation of two drive-thru Live Teller ATMs offering extended banking hours for customer convenience. During the temporary closure, customers are being served by six additional banking centers and 15 ATM locations in the greater Sioux City area. As of October 1, 2026, the Company completed consolidations of nine banking centers identified in a regular operational review earlier in the year. The locations were consolidated into other nearby Great Southern locations, and a total of 66 positions were eliminated across various Company divisions, including those within 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 consolidated banking centers, one was in Arkansas, one was in Kansas, two were in Iowa and five were in Missouri. The banking center consolidations and the workforce reductions are expected to result in approximately $2.3 - $2.7 million in annual pre-tax income improvement, beginning in the fourth quarter of 2026. This estimate incorporates compensation, facility and other non-interest expense savings, expected to be $4.4 - $4.8 million annually. This expense savings is expected to be partially offset by some customer deposit attrition over time related to the branch closures, resulting in additional interest expense on alternative funding sources along with reduced non-interest income generated from these deposit accounts. If deposit account attrition is ultimately greater than our estimates, it may negatively impact our anticipated annual pre-tax income improvement. At June 30, 2026, total demand deposits at the nine banking centers were approximately $170 million and retail time deposit balances were approximately $25 million. As part of its organizational review of products and services, Great Southern expanded 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. With these additions, the Company currently operates 44 active Live Teller ATMs across its footprint, offering extended banking hours and enhanced convenience for customers. Earnings Conference Call The Company will host a conference call on Thursday, October 22, 2026, at 2:00 p.m. Central Time to discuss third 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/BI9125e1b0b85043848b386a6c73a13698. About Great Southern Bancorp, Inc. Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company currently operates 78 retail banking centers in Missouri, Iowa, Kansas, Minnesota, and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, and Phoenix. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market under the symbol "GSBC." www.GreatSouthernBank.com 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 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 nine months ended September 30, 2026 and 2025, and the three months ended June 30, 2026, are not necessarily indicative of the results of operations which may be expected for any future period. | | September 30, | | | December 31, | | 2026 | | | 2025 | (In thousands) Selected Financial Condition Data: | | | | | | | Total assets | $ | 5,821,006 | | | $ | 5,598,606 | Loans receivable, gross | | 4,318,057 | | | | 4,427,678 | Allowance for credit losses | | 63,568 | | | | 64,771 | Other real estate owned, net | | 20,422 | | | | 6,036 | Available-for-sale securities, at fair value | | 853,220 | | | | 523,831 | Held-to-maturity securities, at amortized cost | | 169,031 | | | | 179,200 | Deposits | | 4,069,964 | | | | 4,482,774 | Total borrowings | | 1,062,533 | | | | 405,169 | Total stockholders' equity | | 612,529 | | | | 636,126 | Non-performing assets | | 10,515 | | | | 8,130 | | | Three Months Ended | | | Nine Months Ended | | | Three Months Ended | | September 30, | | | September 30, | | | June 30, | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | 2026 | | (In thousands) | Selected Operating Data: | | | | | | | | | | | | | | | | Interest income | $ | 74,121 | | | $ | 79,079 | | | $ | 217,747 | | | $ | 240,297 | | | $ | 72,461 | Interest expense | | 23,852 | | | | 28,306 | | | | 69,657 | | | | 89,227 | | | | 22,968 | Net interest income | | 50,269 | | | | 50,773 | | | | 148,090 | | | | 151,070 | | | | 49,493 | Provision (credit) for credit losses on loans and unfunded commitments | | 674 | | | | (379 | ) | | | (249 | ) | | | (837 | ) | | | 8 | Non-interest income | | 3,412 | | | | 7,062 | | | | 17,816 | | | | 21,864 | | | | 7,375 | Non-interest expense | | 36,274 | | | | 36,116 | | | | 109,288 | | | | 105,943 | | | | 38,222 | Provision for income taxes | | 2,724 | | | | 4,346 | | | | 9,587 | | | | 13,130 | | | | 2,843 | Net income | $ | 14,009 | | | $ | 17,752 | | | $ | 47,280 | | | $ | 54,698 | | | $ | 15,795 | | | | | | | | | | | | | | | | | | At or For the Three Months Ended | | At or For the Nine Months Ended | | At or For the Three Months Ended | September 30, | | September 30, | | June 30, | | 2026 | | 2025 | | | 2026 | | 2025 | | | 2026 | (Dollars in thousands, except per share data) Per Common Share: | | | | | | | Net income (fully diluted) | $ | 1.27 | | $ | 1.56 | | | $ | 4.27 | | $ | 4.74 | | | $ | 1.43 | Book value | $ | 56.97 | | $ | 56.18 | | | $ | 56.97 | | $ | 56.18 | | | $ | 58.95 | | | | | | | | Earnings Performance Ratios: | | | | | | | Annualized return on average assets | | 0.99 | % | | 1.23 | % | | | 1.12 | % | | 1.24 | % | | | 1.12 | % Annualized return on average common stockholders' equity | | 8.68 | % | | 11.30 | % | | | 9.78 | % | | 11.80 | % | | | 9.83 | % Net interest margin | | 3.75 | % | | 3.72 | % | | | 3.74 | % | | 3.66 | % | | | 3.76 | % Average interest rate spread | | 3.22 | % | | 3.13 | % | | | 3.22 | % | | 3.08 | % | | | 3.24 | % Efficiency ratio | | 67.57 | % | | 62.45 | % | | | 65.87 | % | | 61.26 | % | | | 67.21 | % Non-interest expense to average total assets | | 2.56 | % | | 2.50 | % | | | 2.59 | % | | 2.40 | % | | | 2.72 | % | | | | | | | Asset Quality Ratios: | | | | | | | Allowance for credit losses to period-end loans | | 1.47 | % | | 1.43 | % | | | 1.47 | % | | 1.43 | % | | | 1.46 | % Non-performing assets to period-end assets | | 0.18 | % | | 0.14 | % | | | 0.18 | % | | 0.14 | % | | | 0.17 | % Non-performing loans to period-end loans | | 0.03 | % | | 0.04 | % | | | 0.03 | % | | 0.04 | % | | | 0.02 | % Annualized net charge-offs (recoveries) to average loans | | 0.04 | % | | 0.01 | % | | | 0.04 | % | | 0.00 | % | | | 0.07 | % | | | | | | | Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except number of shares) | | | | | | | | September 30, 2026 | | December 31, 2025 | | June 30, 2026 | | | | | | Assets | | | | | | Cash | $ | 88,188 | | $ | 109,833 | | $ | 97,200 | Interest-bearing deposits in other financial institutions | | 73,547 | | | 79,721 | | | 82,781 | Cash and cash equivalents | | 161,735 | | | 189,554 | | | 179,981 | | | | | | | Available-for-sale securities | | 853,220 | | | 523,831 | | | 503,795 | Held-to-maturity securities | | 169,031 | | | 179,200 | | | 175,264 | Mortgage loans held for sale | | 4,437 | | | 6,838 | | | 7,868 | Loans receivable, net of allowance for credit losses of $63,568 – September 2026; $64,771 – December 2025; $63,965 – June 2026 | | 4,248,447 | | | 4,356,853 | | | 4,307,712 | Interest receivable | | 19,154 | | | 18,068 | | | 18,467 | Prepaid expenses and other assets | | 122,943 | | | 128,615 | | | 123,005 | Other real estate owned and repossessions, net | | 20,422 | | | 6,036 | | | 8,360 | Premises and equipment, net | | 120,405 | | | 133,257 | | | 132,838 | Goodwill and other intangible assets | | 9,632 | | | 9,660 | | | 9,444 | Federal Home Loan Bank stock and other interest-earning assets | | 52,034 | | | 20,079 | | | 27,414 | Current and deferred income taxes | | 39,546 | | | 26,615 | | | 28,676 | | | | | | | Total Assets | $ | 5,821,006 | | $ | 5,598,606 | | $ | 5,522,824 | | | | | | | Liabilities and Stockholders' Equity | | | | | | Liabilities | | | | | | Deposits | $ | 4,069,964 | | $ | 4,482,774 | | $ | 4,302,067 | Securities sold under reverse repurchase agreements with customers | | 41,233 | | | 48,467 | | | 39,913 | Short-term borrowings | | 995,526 | | | 330,928 | | | 445,560 | Subordinated debentures issued to capital trust | | 25,774 | | | 25,774 | | | 25,774 | Accrued interest payable | | 2,747 | | | 3,612 | | | 3,080 | Advances from borrowers for taxes and insurance | | 10,927 | | | 5,781 | | | 10,283 | Accounts payable and accrued expenses | | 54,007 | | | 56,596 | | | 46,925 | Liability for unfunded commitments | | 8,299 | | | 8,548 | | | 7,625 | Total Liabilities | | 5,208,477 | | | 4,962,480 | | | 4,881,227 | | | | | | | Stockholders' Equity | | | | | | Capital stock | | | | | | Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding September 2026, December 2025 and June 2026 -0- shares | | — | | | — | | | — | Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding September 2026 – 10,751,702 shares; December 2025 – 11,062,252 shares; June 2026 – 10,884,444 shares | | 108 | | | 111 | | | 83 | Additional paid-in capital | | 60,365 | | | 54,120 | | | 59,278 | Retained earnings | | 617,476 | | | 614,095 | | | 619,960 | Accumulated other comprehensive loss | | (65,420 | ) | | (32,200 | ) | | (37,724 | ) Total Stockholders' Equity | | 612,529 | | | 636,126 | | | 641,597 | | | | | | | Total Liabilities and Stockholders' Equity | $ | 5,821,006 | | $ | 5,598,606 | | $ | 5,522,824 | | | | | | | | | | Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share data) | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | Three Months Ended | | September 30, | | | September 30, | | | June 30, | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | 2026 Interest Income | | | | | | | | | | | | | | Loans | $ | 65,194 | | | $ | 72,028 | | | $ | 195,540 | | | $ | 218,929 | | | $ | 65,686 | Investment securities and other | | 8,927 | | | | 7,051 | | | | 22,207 | | | | 21,368 | | | | 6,775 | | | 74,121 | | | | 79,079 | | | | 217,747 | | | | 240,297 | | | | 72,461 | Interest Expense | | | | | | | | | | | | | | Deposits | | 16,097 | | | | 23,984 | | | | 52,295 | | | | 72,952 | | | | 17,861 | Securities sold under reverse repurchase agreements | | 138 | | | | 297 | | | | 367 | | | | 1,040 | | | | 133 | Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | | 7,251 | | | | 3,618 | | | | 15,933 | | | | 12,042 | | | | 4,620 | Subordinated debentures issued to capital trust | | 366 | | | | 407 | | | | 1,062 | | | | 1,178 | | | | 354 | Subordinated notes | | — | | | | — | | | | — | | | | 2,015 | | | | — | | | 23,852 | | | | 28,306 | | | | 69,657 | | | | 89,227 | | | | 22,968 | | | | | | | | | | | | | | | Net Interest Income | | 50,269 | | | | 50,773 | | | | 148,090 | | | | 151,070 | | | | 49,493 | Provision for Credit Losses on Loans | | — | | | | — | | | | — | | | | — | | | | — | Provision (Credit) for Unfunded Commitments | | 674 | | | | (379 | ) | | | (249 | ) | | | (837 | ) | | | 8 | Net Interest Income After Provision for Credit Losses and Provision (Credit) for Unfunded Commitments | | 49,595 | | | | 51,152 | | | | 148,339 | | | | 151,907 | | | | 49,485 | | | | | | | | | | | | | | | Non-interest Income | | | | | | | | | | | | | | Commissions | | 486 | | | | 566 | | | | 1,742 | | | | 1,239 | | | | 641 | Overdraft and Insufficient funds fees | | 1,329 | | | | 1,367 | | | | 3,808 | | | | 3,848 | | | | 1,248 | POS and ATM fee income and service charges | | 3,328 | | | | 3,290 | | | | 9,821 | | | | 9,968 | | | | 3,392 | Net gains on loan sales | | 909 | | | | 916 | | | | 2,423 | | | | 2,410 | | | | 795 | Late charges and fees on loans | | 429 | | | | 189 | | | | 870 | | | | 772 | | | | 305 | Gain (loss) on derivative interest rate products | | 47 | | | | (2 | ) | | | 50 | | | | (54 | ) | | | 5 | Adjustments to historical cash flow hedge accounting | | (4,060 | ) | | | — | | | | (4,060 | ) | | | — | | | | — | Other income | | 944 | | | | 736 | | | | 3,162 | | | | 3,681 | | | | 989 | | | 3,412 | | | | 7,062 | | | | 17,816 | | | | 21,864 | | | | 7,375 | | | | | | | | | | | | | | | Non-interest Expense | | | | | | | | | | | | | | Salaries and employee benefits | | 19,619 | | | | 20,184 | | | | 60,381 | | | | 60,318 | | | | 20,691 | Net occupancy and equipment expense | | 9,301 | | | | 8,873 | | | | 28,848 | | | | 25,841 | | | | 10,683 | Postage | | 1,013 | | | | 893 | | | | 2,827 | | | | 2,649 | | | | 889 | Insurance | | 1,091 | | | | 1,110 | | | | 3,262 | | | | 3,370 | | | | 1,099 | Advertising | | 938 | | | | 985 | | | | 2,146 | | | | 1,980 | | | | 836 | Office supplies and printing | | 250 | | | | 238 | | | | 669 | | | | 742 | | | | 197 | Telephone | | 703 | | | | 690 | | | | 2,093 | | | | 2,101 | | | | 705 | Legal, audit and other professional fees | | 1,060 | | | | 1,248 | | | | 2,717 | | | | 3,215 | | | | 967 | Expense (income) on other real estate and repossessions | | 61 | | | | (142 | ) | | | 30 | | | | (380 | ) | | | (85 | ) Intangible asset amortization | | 113 | | | | 109 | | | | 329 | | | | 325 | | | | 108 | Other operating expenses | | 2,125 | | | | 1,928 | | | | 5,986 | | | | 5,782 | | | | 2,132 | | | 36,274 | | | | 36,116 | | | | 109,288 | | | | 105,943 | | | | 38,222 | | | | | | | | | | | | | | | Income Before Income Taxes | | 16,733 | | | | 22,098 | | | | 56,867 | | | | 67,828 | | | | 18,638 | Provision for Income Taxes | | 2,724 | | | | 4,346 | | | | 9,587 | | | | 13,130 | | | | 2,843 | | | | | | | | | | | | | | | Net Income | $ | 14,009 | | | $ | 17,752 | | | $ | 47,280 | | | $ | 54,698 | | | $ | 15,795 | | | | | | | | | | | | | | | Earnings Per Common Share | | | | | | | | | | | | | | Basic | $ | 1.29 | | | $ | 1.57 | | | $ | 4.34 | | | $ | 4.77 | | | $ | 1.45 | Diluted | $ | 1.27 | | | $ | 1.56 | | | $ | 4.27 | | | $ | 4.74 | | | $ | 1.43 | | | | | | | | | | | | | | | Dividends Declared Per Common Share | $ | 0.43 | | | $ | 0.43 | | | $ | 1.29 | | | $ | 1.23 | | | $ | 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 $1.1 million and $1.0 million for the three months ended September 30, 2026 and 2025, respectively. Net fees included in interest income were $3.1 million and $3.1 million for the nine months ended September 30, 2026 and 2025, respectively. Tax-exempt income was not calculated on a tax equivalent basis. The table does not reflect any effect of income taxes. | September 30, 2026 | | | | Three Months Ended September 30, 2026 | | Three Months Ended September 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 | 4.47 | % | | $ | 787,553 | | $ | 8,830 | | 4.45 | % | | $ | 807,670 | | $ | 8,634 | | 4.24 | % Other residential | 6.35 | | | | 1,280,853 | | | 20,621 | | 6.39 | | | | 1,515,977 | | | 26,807 | | 7.02 | Commercial real estate | 6.14 | | | | 1,465,625 | | | 22,611 | | 6.12 | | | | 1,482,201 | | | 23,350 | | 6.25 | Construction | 6.51 | | | | 444,129 | | | 7,406 | | 6.62 | | | | 406,510 | | | 7,338 | | 7.16 | Commercial business | 6.08 | | | | 173,990 | | | 2,750 | | 6.27 | | | | 216,556 | | | 3,278 | | 6.01 | Other loans | 6.67 | | | | 185,344 | | | 2,976 | | 6.37 | | | | 169,999 | | | 2,621 | | 6.12 | | | | | | | | | | | | | | | | | | | | | Total loans receivable | 5.96 | | | | 4,337,494 | | | 65,194 | | 5.96 | | | | 4,598,913 | | | 72,028 | | 6.21 | | | | | | | | | | | | | | | | | | | | | Investment securities | 3.95 | | | | 883,501 | | | 8,083 | | 3.63 | | | | 722,880 | | | 6,081 | | 3.34 | Other interest-earning assets | 3.88 | | | | 91,383 | | | 844 | | 3.66 | | | | 93,028 | | | 970 | | 4.14 | | | | | | | | | | | | | | | | | | | | | Total interest-earning assets | 5.59 | | | | 5,312,378 | | | 74,121 | | 5.54 | | | | 5,414,821 | | | 79,079 | | 5.79 | Non-interest-earning assets: | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | | | | 95,574 | | | | | | | | | 93,707 | | | | | | Other non-earning assets | | | | | 251,155 | | | | | | | | | 259,598 | | | | | | Total assets | | | | $ | 5,659,107 | | | | | | | | $ | 5,768,126 | | | | | | | | | | | | | | | | | | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | Interest-bearing demand and savings | 1.27 | | | $ | 2,195,883 | | | 6,743 | | 1.22 | | | $ | 2,257,894 | | | 8,305 | | 1.46 | Time deposits | 2.92 | | | | 641,360 | | | 4,703 | | 2.91 | | | | 746,500 | | | 6,293 | | 3.34 | Brokered deposits | 4.04 | | | | 464,142 | | | 4,651 | | 3.98 | | | | 825,951 | | | 9,386 | | 4.51 | Total deposits | 1.91 | | | | 3,301,385 | | | 16,097 | | 1.93 | | | | 3,830,345 | | | 23,984 | | 2.48 | Securities sold under reverse repurchase agreements | 1.36 | | | | 37,908 | | | 138 | | 1.44 | | | | 56,772 | | | 297 | | 2.08 | Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 4.26 | | | | 715,276 | | | 7,251 | | 4.02 | | | | 315,397 | | | 3,618 | | 4.55 | Subordinated debentures issued to capital trust | 5.67 | | | | 25,774 | | | 366 | | 5.63 | | | | 25,774 | | | 407 | | 6.26 | Subordinated notes | — | | | | — | | | — | | — | | | | — | | | — | | — | | | | | | | | | | | | | | | | | | | | | Total interest-bearing liabilities | 2.47 | | | | 4,080,343 | | | 23,852 | | 2.32 | | | | 4,228,288 | | | 28,306 | | 2.66 | Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | Demand deposits | | | | | 873,301 | | | | | | | | | 847,232 | | | | | | Other liabilities | | | | | 59,757 | | | | | | | | | 64,050 | | | | | | Total liabilities | | | | | 5,013,401 | | | | | | | | | 5,139,570 | | | | | | Stockholders' equity | | | | | 645,706 | | | | | | | | | 628,556 | | | | | | Total liabilities and stockholders' equity | | | | $ | 5,659,107 | | | | | | | | $ | 5,768,126 | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income: | | | | | | | $ | 50,269 | | | | | | | | $ | 50,773 | | | Interest rate spread | 3.12 | % | | | | | | | | 3.22 | % | | | | | | | | 3.13 | % Net interest margin* | | | | | | | | | | 3.75 | % | | | | | | | | 3.72 | % Average interest-earning assets to average interest-bearing liabilities | | | | | 130.2 | % | | | | | | | | 128.1 | % | | | | | | | | | | | | | | | | | | | | | | | | | *Defined as the Company's net interest income divided by average total interest-earning assets. | September 30, 2026 | | | | Nine Months Ended September 30, 2026 | | Nine Months Ended September 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 | 4.47 | % | | $ | 785,288 | | $ | 25,826 | | 4.40 | % | | $ | 820,105 | | $ | 25,952 | | 4.23 | % Other residential | 6.35 | | | | 1,327,140 | | | 62,841 | | 6.33 | | | | 1,542,433 | | | 80,538 | | 6.98 | Commercial real estate | 6.14 | | | | 1,517,938 | | | 68,599 | | 6.04 | | | | 1,493,780 | | | 69,446 | | 6.22 | Construction | 6.51 | | | | 439,393 | | | 21,205 | | 6.45 | | | | 458,809 | | | 24,608 | | 7.17 | Commercial business | 6.08 | | | | 176,747 | | | 8,737 | | 6.61 | | | | 212,173 | | | 10,617 | | 6.69 | Other loans | 6.67 | | | | 181,078 | | | 8,332 | | 6.15 | | | | 168,003 | | | 7,768 | | 6.18 | | | | | | | | | | | | | | | | | | | | | Total loans receivable | 5.96 | | | | 4,427,584 | | | 195,540 | | 5.90 | | | | 4,695,303 | | | 218,929 | | 6.23 | | | | | | | | | | | | | | | | | | | | | Investment securities | 3.95 | | | | 772,375 | | | 19,792 | | 3.43 | | | | 729,390 | | | 18,254 | | 3.35 | Other interest-earning assets | 3.88 | | | | 90,758 | | | 2,415 | | 3.56 | | | | 98,472 | | | 3,114 | | 4.23 | | | | | | | | | | | | | | | | | | | | | Total interest-earning assets | 5.59 | | | | 5,290,717 | | | 217,747 | | 5.50 | | | | 5,523,165 | | | 240,297 | | 5.82 | Non-interest-earning assets: | | | | | | | | | | | | | | | | | | | | Cash and cash equivalents | | | | | 95,913 | | | | | | | | | 98,236 | | | | | | Other non-earning assets | | | | | 248,417 | | | | | | | | | 259,659 | | | | | | Total assets | | | | $ | 5,635,047 | | | | | | | | $ | 5,881,060 | | | | | | | | | | | | | | | | | | | | | | | | | | Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | Interest-bearing demand and savings | 1.27 | | | $ | 2,209,589 | | | 19,898 | | 1.20 | | | $ | 2,235,234 | | | 23,892 | | 1.43 | Time deposits | 2.92 | | | | 662,602 | | | 14,599 | | 2.95 | | | | 758,627 | | | 19,528 | | 3.44 | Brokered deposits | 4.04 | | | | 609,086 | | | 17,798 | | 3.91 | | | | 871,057 | | | 29,532 | | 4.53 | Total deposits | 1.91 | | | | 3,481,277 | | | 52,295 | | 2.01 | | | | 3,864,918 | | | 72,952 | | 2.52 | Securities sold under reverse repurchase agreements | 1.36 | | | | 36,989 | | | 367 | | 1.33 | | | | 68,166 | | | 1,040 | | 2.04 | Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities | 4.26 | | | | 536,749 | | | 15,933 | | 3.97 | | | | 351,499 | | | 12,042 | | 4.58 | Subordinated debentures issued to capital trust | 5.67 | | | | 25,774 | | | 1,062 | | 5.51 | | | | 25,774 | | | 1,178 | | 6.11 | Subordinated notes | — | | | | — | | | — | | — | | | | 45,575 | | | 2,015 | | 5.91 | | | | | | | | | | | | | | | | | | | | | Total interest-bearing liabilities | 2.47 | | | | 4,080,789 | | | 69,657 | | 2.28 | | | | 4,355,932 | | | 89,227 | | 2.74 | Non-interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | Demand deposits | | | | | 856,056 | | | | | | | | | 839,711 | | | | | | Other liabilities | | | | | 53,894 | | | | | | | | | 67,305 | | | | | | Total liabilities | | | | | 4,990,739 | | | | | | | | | 5,262,948 | | | | | | Stockholders' equity | | | | | 644,308 | | | | | | | | | 618,112 | | | | | | Total liabilities and stockholders' equity | | | | $ | 5,635,047 | | | | | | | | $ | 5,881,060 | | | | | | | | | | | | | | | | | | | | | | | | | | Net interest income: | | | | | | | $ | 148,090 | | | | | | | | $ | 151,070 | | | Interest rate spread | 3.12 | % | | | | | | | | 3.22 | % | | | | | | | | 3.08 | % Net interest margin* | | | | | | | | | | 3.74 | % | | | | | | | | 3.66 | % Average interest-earning assets to average interest-bearing liabilities | | | | | 129.6 | % | | | | | | | | 126.8 | % | | | | | | | | | | | | | | | | | | | | | | | | | *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 adjustments to historical cash flow hedge accounting, 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 adjustments to historical cash flow hedge accounting 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 | | September 30, | | | | December 31, | | | 2026 | | | | 2025 | | | (Dollars in thousands) | | | | Common equity at period end | $ | 612,529 | | | $ | 636,126 | Less: Intangible assets at period end | | 9,632 | | | | 9,660 | Tangible common equity at period end (a) | $ | 602,897 | | | $ | 626,466 | | | | | | | | Total assets at period end | $ | 5,821,006 | | | $ | 5,598,606 | Less: Intangible assets at period end | | 9,632 | | | | 9,660 | Tangible assets at period end (b) | $ | 5,811,374 | | | $ | 5,588,946 | | | | | | | | Tangible common equity to tangible assets (a) / (b) | | 10.37 | % | | | 11.21 | % | | | | | | | Non-GAAP Reconciliation: Exclusion of One-Time Adjustments to Historical Cash Flow Hedge Accounting | | Three Months Ended | | | September 30, 2026 | | | (Dollars in thousands) | | | | Reported net income | $ | 14,009 | | Plus: One-time adjustments to historical cash flow hedge accounting | | 3,277 | | Less: Tax adjustment related to hedge accounting one-time adjustments | | (749 | ) | Non-GAAP net income | $ | 16,537 | | | | | Reported non-interest income | $ | 3,412 | | Plus: One-time adjustments to historical cash flow hedge accounting | | 4,060 | | Non-GAAP non-interest income | $ | 7,472 | | | | | Non-GAAP annualized return on average common equity | | | Definition: Non-GAAP net income (annualized) divided by average common equity | | 10.24 | | % | | | Non-GAAP annualized return on average assets | | | Definition: Non-GAAP net income (annualized) divided by average total assets | | 1.17 | | % | | | Non-GAAP efficiency ratio | | | Definition: Non-interest expense divided by the sum of Non-GAAP net | | | interest income and Non-GAAP non-interest income | | 63.69 | | % | | | Non-GAAP earnings per common diluted share | | | Definition: Non-GAAP net income divided by average diluted shares outstanding | $ | 1.50 | | | | | | CONTACT: Kincade Ayers Investor Relations (616) 233-0500

WSFS Financial (WSFS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 22. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of +15%. Revenues are expected to be $287.45 million, up 6.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.35% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For WSFS, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -3.88%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that WSFS will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that WSFS would post earnings of $1.51 per share when it actually produced earnings of $1.66, delivering a surprise of +9.93%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. WSFS doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Financial - Savings and Loan industry, Great Southern Bancorp (GSBC), is soon expected to post earnings of $1.39 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of -10.9%. Revenues for the quarter are expected to be $55.6 million, down 3.9% from the year-ago quarter. The consensus EPS estimate for Great Southern Bancorp has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Great Southern Bancorp will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WSFS Financial Corporation (WSFS) : Free Stock Analysis Report Great Southern Bancorp, Inc. (GSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year decline in earnings on lower revenues when Great Southern Bancorp (GSBC) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of -10.9%. Revenues are expected to be $55.6 million, down 3.9% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Great Southern Bancorp, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Great Southern Bancorp will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Great Southern Bancorp would post earnings of $1.38 per share when it actually produced earnings of $1.57, delivering a surprise of +13.77%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Great Southern Bancorp doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Great Southern Bancorp, Inc. (GSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Income: $15.8 million or $1.43 per diluted common share, down from $19.8 million or $1.72 per diluted common share in the previous year quarter. Net Interest Income: $49.5 million, down from $51 million in the year-ago quarter. Net Interest Margin: Expanded to 3.76% from 3.68% in the year-ago quarter. Net Loan Balances: Decreased by $148.9 million in the second quarter of 2026. Total Deposits: Decreased by $180.7 million in the first six months of 2026. Nonperforming Assets: 0.17% of total assets, compared to 0.15% at the end of the previous year. Non-Interest Expense: $38.2 million, including one-time costs; $36.1 million excluding one-time costs. Effective Tax Rate: Approximately 15.3% for the second quarter of 2026. Total Assets: Approximately $5.52 billion at the end of the quarter. Stockholders' Equity: $641.6 million, representing 11.6% of total assets. Warning! GuruFocus has detected 8 Warning Sign with GSBC. Is GSBC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Great Southern Bancorp Inc (NASDAQ:GSBC) reported a net interest margin expansion to 3.76% in Q2 2026, up from 3.68% in the same quarter of the previous year. The company's disciplined funding cost management allowed for margin expansion despite a decrease in net interest income. Non-performing assets remain low at 0.17% of total assets, indicating strong asset quality. The company has a robust lending pipeline with total commitments of $1.07 billion as of June 30, 2026. Great Southern Bancorp Inc (NASDAQ:GSBC) is executing operational improvements, including the consolidation of nine banking centers and workforce reductions, expected to result in significant cost savings starting in Q4 2026. Net income for Q2 2026 decreased to $15.8 million from $19.8 million in the same quarter of the previous year, impacted by one-time expenses. Net loan balances decreased by $148.9 million in Q2 2026, largely due to elevated loan payoff activity. Total deposits decreased by $180.7 million in the first six months of 2026, with a significant decline in broker deposits. Non-interest income for the quarter was $7.4 million, down from $8.2 million in Q2 2025, primarily due to a decline in other income. The company faces a highly competitive lending and funding environment, which may impact future growth and profitability. Q: How do you view the margin outlook for the rest of the year, considering upcoming CD repricing? A: Rex Copeland, CFO, mentioned that while some CDs are maturing, the benefit from repricing might not be substantial. The margin expanded slightly in the first half of the year, and they expect it to remain stable, with no significant changes anticipated. Q: Can you provide insights on loan growth expectations for the second half of the year? A: Joseph Turner, CEO, stated that predicting loan growth is challenging due to the competitive environment and customer options. They focus on maintaining high-quality loans and competing for new business, but do not provide specific guidance due to the unpredictability of payoffs and originations. Q: What was the rationale behind consolidating nine locations and reducing headcount? A: Joseph Turner explained that the decision was part of ongoing operational evaluations to improve efficiency. They constantly analyze costs and customer traffic patterns, and as technology evolves, they aim to align operations with customer preferences. This is part of a long-term strategy to optimize their banking center network. Q: How do you expect non-interest expenses to trend following the branch consolidations? A: Rex Copeland indicated that while the consolidation will lead to savings, ongoing investments in technology and other initiatives will offset some of these savings. They anticipate some reduction in expenses starting in the fourth quarter, but not the full amount of the projected savings. Q: What are the potential uses for the capital being generated, considering high capital ratios? A: Joseph Turner mentioned that potential uses include continued share repurchases, increasing the quarterly dividend, or issuing special dividends. They aim to deploy capital in ways that best benefit shareholders, while maintaining a conservative approach to acquisitions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.