GSBC · Great Southern Bancorp, Inc.

Great Southern Bancorp reported a solid start to 2026, with net income rising to $17.5 million, or $1.58 per diluted share, compared to $1.47 per share in the prior year quarter. The increase was driven by a combination of lower interest expense and higher non-interest income, which offset a $1.0 million decrease in net interest income. The decline in net interest income was largely attributable to the completion of accounting recognition from a previously terminated interest rate swap in October 2025, which had contributed $2.0 million in the prior year quarter. Excluding this specific item, underlying net interest income showed resilience. The net interest margin expanded 14 basis points year-over-year to 3.71%, reflecting a decline in the average rate paid on interest-bearing liabilities that outpaced the decline in asset yields. Management highlighted that market rate declines in late 2025 reduced funding costs, with the average rate paid on total interest-bearing liabilities falling to 2.26% from 2.81%.

Loan growth was positive, with total net loans increasing $99.8 million (2.3%) to $4.46 billion, driven primarily by construction and commercial real estate lending. Management noted that payoff activity moderated from recent quarters, supporting balance sheet growth. Asset quality metrics remained strong but showed slight deterioration, with non-performing assets increasing to $10.1 million (0.18% of total assets) from $8.1 million at year-end 2025. Management acknowledged isolated examples of slower lease-up in multi-family projects but emphasized that delinquencies and charge-offs remained low. The Company continued to return capital to shareholders, repurchasing approximately 269,000 shares during the quarter and maintaining a dividend of $0.43 per share. Regulatory capital levels remained well above "well-capitalized" thresholds, with a Common Equity Tier 1 ratio of 13.5%.