0001104659-26-024659
SEC filingGreat Southern Bancorp, Inc. reported net income of $71.0 million for FY 2025, an increase from $61.8 million in FY 2024. This performance was driven by net interest income of $200.2 million, up from $189.1 million the prior year, as total interest expense decreased to $113.5 million from $135.6 million. Non-interest income was $29.1 million, slightly down from $30.6 million, while non-interest expense remained stable at $141.9 million. The company's total assets were $5.60 billion at year-end, with total deposits of $4.48 billion and total stockholders' equity of $636.1 million. Earnings per share were $6.00 (basic and diluted). The company's interest rate risk models indicate a modestly positive impact on net interest income in a rising rate environment and a mostly neutral impact in a declining rate environment.
Great Southern Bancorp, Inc. reported net income of $71.0 million for the fiscal year ended December 31, 2025, a significant increase from $61.8 million in the prior year. This improvement was primarily driven by a $11.1 million increase in net interest income, which reached $200.2 million, as total interest expense decreased by $22.1 million to $113.5 million. Total interest income was $313.7 million, down from $324.7 million in FY 2024. Non-interest income decreased slightly to $29.1 million from $30.6 million, while non-interest expense remained relatively flat at $141.9 million. The provision for credit losses on loans was $1.7 million in FY 2024 and $0 in FY 2025, with a provision (credit) for unfunded commitments of $45K in FY 2025 compared to $1.0 million in FY 2024. The company's effective tax rate was 18.7% for FY 2025.
The company's revenue is primarily derived from interest income, which totaled $313.7 million for FY 2025. This consisted of $285.5 million from loans and $28.3 million from investment securities and other sources. Interest income decreased by $11.0 million compared to FY 2024, primarily due to lower loan yields as market interest rates declined. The company's loan portfolio includes $1.58 billion tied to SOFR indices and $654.1 million tied to prime rate, with most loans having interest rate floors. Non-interest income of $29.1 million included $13.2 million from point-of-sale and ATM fees, $5.2 million from overdraft fees, $3.3 million from net gain on loan sales, and $4.6 million from other income.
Net interest margin improved as net interest income increased to $200.2 million from $189.1 million in the prior year, while average earning assets decreased. The company's operating margin (income before income taxes as a percentage of total revenue) was 27.9% for FY 2025. Non-interest expense of $141.9 million was dominated by salaries and employee benefits ($80.0 million) and net occupancy and equipment expense ($35.3 million). The efficiency ratio (non-interest expense divided by net interest income plus non-interest income) was approximately 61.9%. Profitability was enhanced by the absence of provision for credit losses on loans in FY 2025 compared to $1.7 million in FY 2024.
Net cash provided by operating activities was $81.5 million for FY 2025, primarily from net income of $71.0 million adjusted for non-cash items. Investing activities provided $367.2 million in cash, mainly from a $336.9 million net change in loans (reduction in loan portfolio). Financing activities used $454.9 million in cash, primarily for repayment of borrowing under the Federal Reserve Bank Term Funding Program ($180.0 million), redemption of subordinated notes ($75.0 million), repurchase of common stock ($44.5 million), and dividends paid ($18.7 million). The balance sheet shows total assets of $5.60 billion, with loans receivable (net) of $4.36 billion, available-for-sale securities of $523.8 million, and cash and cash equivalents of $189.6 million. Total liabilities were $4.96 billion, including deposits of $4.48 billion. Stockholders' equity was $636.1 million, with a book value per common share of approximately $57.50.
Management's discussion indicates that the company's interest rate risk models show a modestly positive impact on net interest income in a rising rate environment and a mostly neutral impact in a declining rate environment. The Federal Funds rate was 3.75% at December 31, 2025, after three 0.25% decreases during the year. Financial markets expect the possibility of further decreases in 2026. The company faces competition for deposits which could negatively impact net interest margin. Business initiatives in 2025 included installing ITM units, opening a next-generation banking center, and consolidating operations. The company continues to focus on technology initiatives and customer-facing online services. Risk factors include potential adverse effects from interest rate changes and limitations on funding sources.