Great Southern Bancorp, Inc. Reports Preliminary Fourth Quarter Earnings of $1.45 Per Diluted Common Share

Key Takeaways:

• Quarterly earnings climbed from $14.9 million to $16.3 million, reflecting stronger profitability
• The full-year 2025 net income reached $71.0 million, compared to $61.8 million in 2024
• Asset quality improved, with non-performing assets down to $8.1 million
• Net interest margin rose from 3.49% to 3.70% year over year
• The company’s tangible common equity ratio grew to 11.2%, signaling solid capital strength

Earnings Performance

Great Southern Bancorp, Inc. (NASDAQ: GSBC) reported preliminary earnings of $1.45 per diluted common share for the fourth quarter of 2025, up from $1.27 for the same period in 2024. This equated to net income of $16.3 million, compared to $14.9 million the previous year. Year-end figures presented a similarly positive trajectory, with 2025 net income totaling $71.0 million, or $6.19 per diluted common share, against $61.8 million, or $5.26 per diluted common share, in 2024.

CEO’s Perspective

“Our fourth quarter and full-year 2025 results reflect the sustained success of our core banking operations and our commitment to long-term tangible book value appreciation,” said Joseph W. Turner, President and CEO of Great Southern. He attributed the company’s performance to preserving net interest margin, protecting credit quality, controlling non-interest expense, and repurchasing stock when favorable opportunities arose.

Net Interest Income

Net interest income for the fourth quarter of 2025 was $49.2 million, slightly lower than $49.5 million in 2024. The decrease is largely due to the conclusion of quarterly interest income recognition from a previously terminated interest rate swap. While interest income declined, careful management of deposit and borrowing costs offset much of the difference, contributing to an annualized net interest margin of 3.70% for the quarter, compared to 3.49% a year earlier.

Impact of Cash Flow Hedges

Great Southern previously employed interest rate swaps to protect against falling rates. A terminated swap that had contributed quarterly interest income ended in October 2025. Active swaps currently total $400 million in notional amount and reduced interest income by $1.4 million in the fourth quarter of 2025.

Non-Interest Income

Non-interest income reached $7.2 million for the fourth quarter of 2025—up $254,000 from the prior year. The biggest factor was a notable increase in late charges and fees on loans, which resulted mostly from prepayment fees on a large commercial real estate loan. Additionally, certain facility adjustments recorded in “Other Income” offset part of these increases.

Non-Interest Expense

Quarterly non-interest expense stood at $36.0 million, down from $36.9 million in 2024. Among the factors influencing this figure was a decline in litigation or contract dispute expenses compared to the prior year. At the same time, occupancy and equipment expenses rose, reflecting systematic technology upgrades and adjustments from branch closures and leased facilities. The company’s efficiency ratio improved slightly to 63.89%, compared to 65.43% a year ago.

Tax Considerations

The fourth-quarter effective tax rate was 16.4%, slightly below the 16.9% recorded in 2024. For the entire year, the rate measured 18.7%. These figures stay below the federal statutory rate of 21.0%, helped by tax-exempt investments, loans, and various investment tax credits.

Capital and Share Repurchases

As of December 31, 2025, total stockholders’ equity rose to $636.1 million, or about 11.4% of total assets. Book value per common share reached $57.50, up from $51.14 a year earlier. Driving these improvements were consistent earnings, reduced unrealized losses on investments, and the exercise of stock options. During 2025, Great Southern repurchased 755,759 shares of its common stock, reflecting ongoing attention to shareholder returns.

Liquidity and Deposits

At year-end 2025, total deposits stood at $4.48 billion. Brokered deposits declined by $108.7 million year over year, partly due to deliberate decisions to let some maturing balances roll off. The company also maintained significant borrowing capacities with the Federal Home Loan Bank (approximately $1.32 billion) and the Federal Reserve Bank ($305.2 million) at the end of 2025, illustrating its substantial liquidity.

Loan Portfolio and Asset Quality

Total net loans, excluding those held for sale, decreased by $333.5 million year over year, largely due to higher-than-expected repayments in multi-family, construction, one- to four-family residential, and commercial business portfolios. Non-performing assets dropped to $8.1 million, or 0.15% of total assets, down from $9.6 million at the end of 2024. The provision for credit losses remained nominal, highlighting the company’s conservative underwriting and stable credit conditions.

Expense Adjustments

The company noted specific fourth-quarter expenses totaling $259,000 (in Other Income) and $287,000 (in Net Occupancy and Equipment Expense) due to adjustments in asset values for branch closures and certain leased facilities. Management characterized these as non-recurring items, though it anticipates strategic investments in technology and infrastructure to continue in 2026.

Looking Ahead

With 2025 concluded, CEO Turner foresees ongoing investments in technology, consistent credit oversight, and prudent capital management. While interest rate environments may evolve, the company’s focus remains on preserving deposit relationships, maintaining strong asset quality, and leveraging its community banking foundation.

Forward-Looking Statements

Cautionary language regarding forward-looking statements applies to expectations around revenue, cost savings, potential economic changes, interest rate movements, and the overall business environment. Various factors—ranging from macroeconomic shifts to regulatory adjustments—could cause actual outcomes to differ from current projections. The company notes it does not undertake an obligation to update forward-looking statements.

Selected Financial Data

Below is an excerpted overview of the company’s fourth-quarter performance:

Q4 2025 vs. Q4 2024 (Dollars in thousands)
• Net Interest Income: $49,163 vs. $49,534
• Non-Interest Income: $7,188 vs. $6,934
• Non-Interest Expense: $36,000 vs. $36,947
• Net Income: $16,275 vs. $14,922
• Earnings per Diluted Share: $1.45 vs. $1.27