Great Southern Bancorp, Inc. Reports Preliminary Fourth Quarter Earnings of $1.27 Per Diluted Common Share

SPRINGFIELD, Mo., Jan. 21, 2025 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, today reported that preliminary earnings for the three months ended December 31, 2024, were $1.27 per diluted common share ($14.9 million net income) compared to $1.11 per diluted common share ($13.1 million net income) for the three months ended December 31, 2023. For the quarter ended December 31, 2024, annualized return on average common equity was 9.76%, annualized return on average assets was 1.00%, and annualized net interest margin was 3.49%, compared to 9.71%, 0.91% and 3.30%, respectively, for the quarter ended December 31, 2023. Fourth Quarter 2024 Key Results: Net Interest Income: Net interest income for the fourth quarter of 2024 increased $4.4 million (or approximately 9.7%) to $49.5 million compared to $45.1 million for the fourth quarter of 2023 largely driven by higher interest income on loans. Annualized net interest margin was 3.49% for the quarter ended December 31, 2024, compared to 3.30% for the quarter ended December 31, 2023, and 3.42% for the quarter ended September 30, 2024. Asset Quality: Non-performing assets and potential problem loans totaled $16.6 million at December 31, 2024, a decrease of $2.5 million from $19.1 million at December 31, 2023. At December 31, 2024, non-performing assets were $9.6 million (0.16% of total assets), a decrease of $2.2 million from $11.8 million (0.20% of total assets) at December 31, 2023. Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of $1.06 billion and $346.4 million, respectively, at December 31, 2024. In addition, at December 31, 2024, the Company had unpledged securities with a market value totaling $354.9 million, which could be pledged as collateral for additional borrowing capacity at either the FHLBank or Federal Reserve Bank.Capital: The Company’s capital position remained strong as of December 31, 2024, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of December 31, 2024, the Company’s Tier 1 Leverage Ratio was 11.4%, Common Equity Tier 1 Capital Ratio was 12.3%, Tier 1 Capital Ratio was 12.8%, and Total Capital Ratio was 15.4%. The Company’s tangible common equity to tangible assets ratio was 9.9% at December 31, 2024. Significant or Non-Recurring Item:In the quarter ended December 31, 2024, the Company expensed $2.0 million due to developments related to a litigation/contract dispute matter. Additional discussion of this matter is contained in the “Business Initiatives” section of this release. The inclusion of this item during the quarter ended December 31, 2024, decreased annualized return on average common equity and annualized return on average assets by 103 basis points and 10 basis points, respectively, and decreased earnings per common share by $0.13. Selected Financial Data: Three Months Ended December 31, December 31, September 30, 2024 2023 2024 (Dollars in thousands, except per share data)Net interest income$49,534 $45,147 $47,975 Provision (credit) for credit losses on loans and unfunded commitments 1,556 (939) 1,137 Non-interest income 6,934 6,563 6,992 Non-interest expense 36,947 36,285 33,717 Provision for income taxes 3,043 3,219 3,623 Net income$14,922 $13,145 $16,490 Earnings per diluted common share$1.27 $1.11 $1.41 Great Southern President and CEO Joseph W. Turner commented, “Our performance for the full year 2024 highlights the resilience of our business model and our disciplined approach to navigating a complex economic and banking environment. For the full year, we reported net income of $61.8 million, or $5.26 per diluted common share, compared to $67.8 million, or $5.61 per diluted common share, in 2023. While the year over year earnings reflect a modest decline, they underscore our ability to balance costs, maintain robust asset quality, and consistently deliver value to our shareholders. “Our fourth-quarter earnings of $14.9 million, or $1.27 per diluted common share, surpassed the $13.1 million, or $1.11 per diluted common share, recorded in the same period of 2023. This improvement was primarily driven by increased net interest income and strategic loan portfolio growth. These results, achieved despite rising funding costs compared to the prior year, underscore the resilience of our balance sheet and the stability of our operations. During the fourth quarter of 2024, we also recorded above-normal non-interest expense due to a non-recurring expense item discussed later in this earnings release and recorded a larger provision for losses on unfunded commitments due to significant growth in those commitments during the fourth quarter. “Net interest income for the year totaled $189.1 million, a slight decrease from $193.2 million for 2023, as higher deposit costs offset increases in loan and investment income. Our net interest margin for the year was 3.42%, down from 3.57% in 2023. While the upward pressure on deposit costs persists, our proactive asset-liability management strategy has enabled us to capitalize on higher yields in our loan and securities portfolios, partially mitigating these challenges. “Loan portfolio stability was a pivotal component of our 2024 performance. Gross loans grew by $100.5 million, or 2.2%, to $4.76 billion, with increases driven primarily by multi-family residential and commercial real estate lending. Our loan pipeline remains robust, reflecting continued demand across key markets. “One of the standout achievements of 2024 was sustained strong asset quality. Non-performing assets declined by $2.2 million to $9.6 million, or 0.16% of total assets, at December 31, 2024, compared to 0.20% at December 31, 2023. This progress highlights the success of our proactive credit management practices and the benefits of a stable economic backdrop. At year-end, our allowance for credit losses remained strong at 1.36% of total loans. “Our disciplined and strategic approach to expense management also contributed to our solid results. Non-interest expenses for the year were $141.5 million, consistent with 2023, even as we continued to invest in technology and operational efficiencies. These enhancements, coupled with our commitment to community-focused banking, have allowed us to deepen relationships with customers while ensuring operational excellence. “In terms of capital management, stockholders’ equity increased by $27.7 million year-over-year to $599.6 million at year-end, ending 2024 with a tangible common equity to tangible assets ratio of 9.9% and strong regulatory capital ratios. This solid capital base provides a foundation that enables us to invest in growth initiatives while continuing to deliver returns to stockholders through our consistent quarterly dividend. “As we move into 2025, we remain committed to managing our business prudently with a long-term focus, in what we expect will be a challenging operating environment. While we anticipate funding costs to stay elevated, our strong liquidity position and credit quality, coupled with our disciplined approach to growth, provide a solid base for continued success. I want to express my gratitude to our team members for their dedication and hard work, which make these achievements possible, and to our stockholders for their trust and confidence in our Company.” NET INTEREST INCOME Three Months Ended December 31, December 31, September 30, 2024 2023 2024 (Dollars in thousands)Interest Income$82,585 $76,482 $83,796 Interest Expense 33,051 31,335 35,821 Net Interest Income$49,534 $45,147 $47,975 Net interest margin 3.49% 3.30% 3.42%Average interest-earning assets to average interest-bearing liabilities 127.0% 128.6% 126.8% Net interest income for the fourth quarter of 2024 increased $4.4 million to $49.5 million, compared to $45.1 million for the fourth quarter of 2023. This year-over-year growth in net interest income was driven primarily by higher loan income and improved overall yields, as well as the strategic management of maturing/repricing brokered deposits and interest-bearing demand deposits. Compared to the linked quarter, net interest income in the fourth quarter of 2024 increased, reflecting the Company’s effective management of maturing/repricing time deposits, brokered deposits and interest-bearing demand deposits, reducing overall deposit rates and associated interest expense. Net interest margin was 3.49% in the fourth quarter of 2024, compared to 3.30% in the same period of 2023 and 3.42% in the third quarter of 2024. Compared to the prior-year fourth quarter, the average yield earned on loans increased 31 basis points, the average yield on investment securities increased 22 basis points and the average yield on other interest earning assets decreased 83 basis points. The average rate paid on interest-bearing demand and savings deposits, time deposits and brokered deposits decreased 8 basis points, increased 2 basis points and decreased 35 basis points, respectively, in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. The average interest rate spread was 2.87% for the three months ended December 31, 2024, compared to 2.65% for the three months ended December 31, 2023, and 2.74% for the three months ended September 30, 2024. To mitigate exposure to the risk of fluctuations in future cash flows resulting from changes in interest rates, the Company has, from time to time, strategically utilized derivative financial instruments, primarily interest rate swaps, as part of its interest rate risk management strategy. The following table presents the effect of cash flow hedge accounting included in interest income in the consolidated statements of income: Three Months Ended December 31, December 31, September 30, 2024 2023 2024 (in thousands)Terminated interest rate swaps$2,047 $2,047 $2,047 Active interest rate swaps (2,172) (5,694) (2,743) Increase (decrease) to interest income$(125) $(3,647) $(696) 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, is being accreted to interest income on loans monthly until the original termination date of October 6, 2025. After such date, the Company will no longer have the benefit of that income from the terminated swap. In 2025, the Company anticipates recording approximately $2.0 million in interest income from the terminated swap in each of the first three quarters, after which no further interest income will be realized. The Company’s net interest income in the fourth quarter of 2024 increased 9.7% compared to net interest income in the fourth quarter of 2023, and increased 3.2% compared to net interest income in the third quarter of 2024. The cost of deposits has been negatively impacted over several quarters by the high level of competition for deposits across the industry and the lingering effects of liquidity events at several banks in March and April 2023. After the second quarter of 2023, the Company had a significant amount of time deposits maturing at relatively low interest rates. These deposits were either renewed at higher rates or withdrawn, requiring the Company to replace the withdrawn deposits with other funding sources at the prevailing higher market rates. Market rates for time deposits have recently declined as the FOMC cut the federal funds rate by 100 basis points in 2024 and signaled further rate cuts may occur. As of December 31, 2024, time deposit maturities over the next 12 months were as follows: within three months -- $724 million, with a weighted-average rate of 4.19%; within three to six months -- $306 million, with a weighted-average rate of 3.86%; and within six to twelve months -- $156 million, with a weighted-average rate of 3.34%. Based on time deposit market rates in December 2024, replacement rates for these maturing time deposits are likely to be approximately 3.50-4.00%. NON-INTEREST INCOME For the quarter ended December 31, 2024, non-interest income increased $371,000 to $6.9 million when compared to the quarter ended December 31, 2023, primarily as a result of the following items: Net gains on loan sales: Net gains on loan sales increased $427,000 compared to the prior-year quarter. The increase was partially due to an increase in the amount of fixed-rate single-family mortgage loans sold during the fourth quarter of 2024 compared to the fourth quarter of 2023. The Company also realized higher premiums on the sale of loans in the 2024 fourth quarter, as market interest rates were more stable when compared to the prior-year period.Other income: Other income increased $286,000 compared to the prior-year quarter. In the 2024 period, the Company recognized $268,000 in income related to interest rate swaps in the Company’s back-to-back swap program with loan customers and swap counterparties. Overdraft and insufficient funds fees: Overdraft and insufficient funds fees decreased $401,000 compared to the prior-year quarter. This decrease was primarily due to the continuation of a multi-year trend whereby our customers are choosing to forego authorizing payments of certain items which exceed their account balances, resulting in fewer overdrafts in checking accounts and related fees. NON-INTEREST EXPENSE For the quarter ended December 31, 2024, non-interest expense increased $662,000 to $36.9 million when compared to the quarter ended December 31, 2023, primarily as a result of the following items: Other operating expenses: Other operating expenses increased $1.7 million from the prior-year quarter. In the quarter ended December 31, 2024, the Company expensed $2.0 million due to developments related to a litigation/contract dispute matter. See the “Business Initiatives” section of this release.Legal, Audit and Other Professional Fees: Legal, audit and other professional fees decreased $608,000 from the prior-year quarter, to $1.0 million. In the quarter ended December 31, 2023, the Company expensed a total of $918,000 related to training and implementation costs for the intended core systems conversion and professional fees to consultants engaged to support the Company’s proposed transition of core and ancillary software and information technology systems, with no such costs expensed in the quarter ended December 31, 2024. Salaries and employee benefits: Salaries and employee benefits decreased $458,000 from the prior-year quarter. In the fourth quarter of 2023, the Company recorded an expense totaling $441,000 related to discretionary bonuses awarded to various associates who were involved significantly in the intended software and systems transition; this was not repeated in the 2024 fourth quarter. Compensation costs related to originated loans (that are deferred under accounting rules) increased by $154,000 in the 2024 period compared to the 2023 period (resulting in lower expense in the 2024 period), as the volume of loans originated in the fourth quarter of 2024 increased compared to the fourth quarter of 2023. The Company’s efficiency ratio for the quarter ended December 31, 2024, was 65.43% compared to 70.17% for the same quarter in 2023. The Company’s ratio of non-interest expense to average assets was 2.46% for the three months ended December 31, 2024, compared to 2.52% for the three months ended December 31, 2023. Average assets for the three months ended December 31, 2024, increased $248.8 million, or 4.3%, compared to the three months ended December 31, 2023, primarily due to growth in net loans receivable and available-for-sale securities. INCOME TAXES For the three months ended December 31, 2024 and 2023, the Company's effective tax rate was 16.9% and 19.7%, respectively. These effective rates were below the statutory federal tax rate of 21%, 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 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 20.0% in future periods. CAPITAL December 31, December 31, September 30, 2024 2023 2024Consolidated Regulatory Capital Ratios (Preliminary) Tier 1 Leverage Ratio 11.4% 11.0% 11.0%Common Equity Tier 1 Capital Ratio 12.3% 11.9% 12.3%Tier 1 Capital Ratio 12.8% 12.4% 12.8%Total Capital Ratio 15.4% 15.2% 15.5%Tangible Common Equity Ratio 9.9% 9.7% 10.0% As of December 31, 2024, total stockholders’ equity was $599.6 million, representing 10.0% of total assets and a book value of $51.14 per common share. This compares to total stockholders’ equity of $571.8 million, or 9.8% of total assets, and a book value of $48.44 per common share at December 31, 2023. The $27.8 million increase in stockholders’ equity was primarily driven by $61.8 million in net income and an $11.9 million increase from stock option exercises, partially offset by $18.7 million in cash dividends declared on the Company’s common stock and $15.2 million in common stock repurchases. Increased unrealized losses on the Company’s available-for-sale investment securities and interest rate swaps, totaling $54.4 million (net of taxes) at December 31, 2024, also reduced stockholders’ equity by $11.9 million during the year. These net unrealized losses primarily resulted from increasing intermediate-term market interest rates, which generally decreased the fair value of the investment securities and interest rate swaps. In addition, the Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $24.7 million at December 31, 2024, that were not included in its total capital balance. If these held-to-maturity unrealized losses were included in capital (net of taxes), they would have decreased total stockholder’s equity by $18.6 million at December 31, 2024. This amount was equal to 3.1% of total stockholders’ equity of $599.6 million at December 31, 2024.In December 2022, the Company’s Board of Directors authorized the purchase of an additional one million shares of the Company’s common stock. As of December 31, 2024, approximately 443,000 shares remained available in our stock repurchase authorization. The Company repurchased 284,483 shares of its common stock at an average cost of $53.10 per share in the year ended December 31, 2024. During the three months ended December 31, 2024, the Company repurchased 44,550 shares of its common stock at an average price of $60.69, and the Company’s Board of Directors declared a regular quarterly cash dividend of $0.40 per common share, which, combined, reduced stockholders’ equity by $7.4 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, when believed to be appropriate, supplements deposits with less expensive 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 December 31, 2024, the Company had the following available secured lines and on-balance sheet liquidity: December 31, 2024Federal Home Loan Bank line $1,058.8 millionFederal Reserve Bank line 346.4 millionCash and cash equivalents 195.8 millionUnpledged securities – Available-for-sale 329.9 millionUnpledged securities – Held-to-maturity 25.0 million During the three months ended December 31, 2024, the Company’s total deposits decreased $91.9 million. Interest-bearing checking balances decreased $21.4 million (1.0%), primarily in certain money market accounts, while non-interest-bearing checking balances decreased $13.8 million (1.6%). Time deposits generated through the Company’s banking center and corporate services networks decreased $18.4 million (2.3%). Brokered deposits decreased $38.3 million (4.7%) through a variety of sources. During the year ended December 31, 2024, the Company’s total deposits decreased $116.2 million. Interest-bearing checking balances decreased $1.8 million (0.1%), while non-interest-bearing checking balances decreased $52.6 million (5.9%). Time deposits generated through the Company’s banking center and corporate services networks decreased $172.4 million (18.2%). Brokered deposits increased $110.6 million (16.7%) through a variety of sources. At December 31, 2024, the Company had the following deposit balances: December 31, 2024Interest-bearing checking $2,214.7 millionNon-interest-bearing checking 842.9 millionTime deposits 775.8 millionBrokered deposits 772.1 million At December 31, 2024, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company’s consolidated subsidiaries, were approximately $670.3 million (15% of total deposits). LOANS Total net loans, excluding mortgage loans held for sale, increased $100.8 million, or 2.2%, from $4.59 billion at December 31, 2023 to $4.69 billion at December 31, 2024. This growth was primarily driven by an increase in other residential (multi-family) loans of $607.2 million and was partially offset by decreases in construction loans of $358.7 million, commercial business loans of $109.1 million and one- to four-family residential loans of $57.2 million. As construction projects reached completion, the associated loans were either reclassified to permanent loan categories or paid off. The pipeline of unfunded loan commitments increased in the fourth quarter of 2024, primarily due to growth in the unfunded portion of construction loans. Despite this, total net loans, excluding mortgage loans held for sale, decreased by $20.1 million during the three months ended December 31, 2024. 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): December31, 2024 September30, 2024 June 30,2024 March 31,2024 December31, 2023 December31, 2022Closed non-construction loans with unused available lines Secured by real estate (one- to four-family)$205,599$205,677$200,630$206,992$203,964$199,182Secured by real estate (not one- to four-family) — — — — — —Not secured by real estate – commercial business 106,621 120,847 122,685 120,387 82,435 104,452 Closed construction loans with unused available lines Secured by real estate (one-to four-family) 94,501 79,554 109,153 103,839 101,545 100,669Secured by real estate (not one-to four-family) 703,947 477,741 570,621 680,149 719,039 1,444,450 Loan commitments not closed Secured by real estate (one-to four-family) 14,373 20,622 21,698 20,410 12,347 16,819Secured by real estate (not one-to four-family) 53,660 118,046 33,273 50,858 48,153 157,645Not secured by real estate – commercial business 22,884 17,821 14,949 9,022 11,763 50,145 $1,201,585$1,040,308$1,073,009$1,191,657$1,179,246$2,073,362 PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES During the quarter ended December 31, 2024, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a provision expense of $750,000 in the same period in 2023. Total net charge-offs were $155,000 for the three months ended December 31, 2024, compared to net charge-offs of $833,000 during the same period in the prior year. Additionally, for the quarter ended December 31, 2024, the Company recorded a provision for losses on unfunded commitments of $1.6 million, compared to a negative provision of $1.7 million for the same period in 2023. The Bank’s allowance for credit losses as a percentage of total loans was 1.36% at December 31, 2024, consistent with 1.36% at September 30, 2024, and slightly down from 1.39% at December 31, 2023. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at December 31, 2024, 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 December 31, 2024, non-performing assets were $9.6 million, a decrease of $2.2 million from $11.8 million at December 31, 2023, and an increase of $1.9 million from $7.7 million at September 30, 2024. Non-performing assets as a percentage of total assets were 0.16% at December 31, 2024, compared to 0.20% at December 31, 2023 and 0.13% at September 30, 2024. Activity in the non-performing loans categories during the quarter ended December 31, 2024, was as follows: BeginningBalance,October 1 Additionsto Non-Performing Removedfrom Non-Performing Transfersto PotentialProblemLoans Transfers toForeclosedAssets andRepossessions Charge-Offs Payments EndingBalance,December 31 (In thousands)One- to four-family construction$— $— $— $— $— $— $— $— Subdivision construction — — — — — — — — Land development 553 — — — — — (89) 464 Commercial construction — — — — — — — — One- to four-family residential 593 2,067 — — — — (29) 2,631 Other residential (multi-family) — — — — — — — — Commercial real estate 6,102 — — — (5,960) (65) — 77 Commercial business 139 245 — — — — — 384 Consumer 96 — — — — (75) (4) 17 Total non-performing loans$7,483 $2,312 $— $— $(5,960)$(140)$(122)$3,573 Compared to September 30, 2024, non-performing loans decreased $3.9 millionDuring the three months ended December 31, 2024, a single loan totaling $6.0 million which had been collateralized by an office building in Missouri was transferred from the non-performing commercial real estate category to foreclosed assetsThe non-performing one- to four-family residential category consisted of seven loansThe largest relationship in the one- to four-family residential category totaled $2.1 million, was added in the current quarter and is collateralized by three rental duplexes, a one- to four-family residential property and a condominium unitThe land development category consisted of one loan added earlier in 2024. This loan is collateralized by improved commercial land in the Omaha, Neb. area Activity in the potential problem loans category during the quarter ended December 31, 2024, was as follows: BeginningBalance,October 1 Additions toPotentialProblem RemovedfromPotentialProblem Transfersto Non-Performing Transfers toForeclosedAssets andRepossessions Charge-Offs LoanAdvances(Payments) EndingBalance,December 31 (In thousands)One- to four-family construction$— $— $— $— $— $— $— $— Subdivision construction — — — — — — — — Land development — — — — — — — — Commercial construction — — — — — — — — One- to four-family residential 668 601 (60) — — — (7) 1,202 Other residential (multi-family) — — — — — — — — Commercial real estate 4,339 — — — — — (8) 4,331 Commercial business 193 — — — — — (193) — Consumer 790 869 (116) — (4) (5) (5) 1,529 Total potential problem loans$5,990 $1,470 $(176)$— $(4)$(5)$(213)$7,062 Compared to September 30, 2024, potential problem loans increased $1.1 millionAt December 31, 2024, the commercial real estate category consisted of three loans, all of which are part of one relationship and were added earlier in 2024The commercial real estate relationship is collateralized by three nursing care facilities located in southwest Missouri. The borrower’s business cash flow was negatively impacted by a reduction in labor participation and increased operating costs as well as ongoing changes to the Missouri Medicaid reimbursement rate. Monthly payments were timely made prior to the transfer to this category and have continued to be paid timelyAt December 31, 2024, the one- to four-family residential category consisted of 11 loans, five of which were added during the current quarterThe largest relationship in the one- to four-family category totaled $234,000 and was added in the fourth quarter of 2024At December 31, 2024, the consumer category of potential problem loans consisted of 12 loans, five of which were added during the current quarterThe consumer category includes one home equity loan totaling $748,000 related to the nursing care facility relationship noted above. Another home equity loan totaling $642,000 is associated with the larger one- to four-family residential relationship mentioned above Activity in foreclosed assets and repossessions during the quarter ended December 31, 2024 was as follows: BeginningBalance,October 1 Additions ORE andRepossessionSales CapitalizedCosts ORE andRepossessionWrite-Downs EndingBalance,December 31 (In thousands) One-to four-family construction$— $— $— $— $— $— Subdivision construction — — — — — — Land development — — — — — — Commercial construction — — — — — — One- to four-family residential — — — — — — Other residential (multi-family) — — — — — — Commercial real estate 230 5,960 (230) — — 5,960 Commercial business — — — — — — Consumer 33 34 (34) — — 33 Total foreclosed assets and repossessions$263 $5,994 $(264)$— $— $5,993 Compared to September 30, 2024, foreclosed assets increased $5.7 millionThe commercial real estate category of foreclosed assets consisted of one office building located in Missouri that previously collateralized a $6.0 million loan that was transferred from non-performing loans during the fourth quarter of 2024 BUSINESS INITIATIVES Great Southern has previously reported certain issues and contractual disputes regarding its proposed conversion to a new core banking platform to be delivered by a third-party vendor. This ultimately led to Great Southern terminating the Master Agreement with the third-party vendor and initiating litigation against them, with the third-party vendor filing a counterclaim against Great Southern. In December 2024, an agreement in principle was reached between Great Southern and the third-party vendor whereby the Master Agreement would be terminated and the parties’ card servicing agreement would be continued and expanded. Great Southern has recorded a $2.0 million accrued expense for the fourth quarter of 2024 in connection with these developments. However, at this time, no assurance can be given as to when or whether final agreements will be executed and a full settlement of the matter will be achieved. The Company is advancing with updates and growth in operational programs with its current core banking provider. Multiple projects covering a full array of products and services are moving forward with expected completion in the third quarter of 2025. In 2025, the Company plans to replace one banking center in Springfield, Mo. with a newly constructed building on the same property at 723 N. Benton. The new facility, designed as a next-generation banking center, will allow for flexibility of new designs, processes, technology and tools balanced with customer convenience. Construction on the new building is expected to begin in the first quarter of 2025, with completion anticipated in the fourth quarter of 2025. During construction, customers will be served in a temporary facility on the property. The Company also has 11 other banking centers and an Express Center in Springfield. Earnings Conference Call The Company will host a conference call on Wednesday, January 22, 2025, at 2:00 p.m. Central Time to discuss fourth quarter 2024 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/BI9944193d97fe4001ba763ec7ea35cc62. About Great Southern Bancorp, Inc. Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company operates 89 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market under the symbol “GSBC.” www.GreatSouthernBank.com Forward-Looking Statements When used in this press release and in other documents filed or furnished by Great Southern Bancorp, Inc. (the “Company”) with 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 remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health; (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 economic growth caused by 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 Great Southern 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, 2023, and for all periods other than the year ended December 31, 2023, is unaudited. In the opinion of management, all adjustments, which consist only of normal recurring accrual adjustments, necessary for a fair presentation of the results at and for such unaudited dates and periods have been included. The results of operations and other data for the three months and years ended December 31, 2024 and 2023, and the three months ended September 30, 2024, are not necessarily indicative of the results of operations which may be expected for any future period. December 31, December 31, 2024 2023 Selected Financial Condition Data:(In thousands) Total assets$5,981,628 $5,812,402 Loans receivable, gross 4,761,848 4,661,348 Allowance for credit losses 64,760 64,670 Other real estate owned, net 5,993 23 Available-for-sale securities, at fair value 533,373 478,207 Held-to-maturity securities, at amortized cost 187,433 195,023 Deposits 4,605,549 4,721,708 Total borrowings 679,341 423,806 Total stockholders’ equity 599,568 571,829 Non-performing assets 9,566 11,771 Three Months Ended Year Ended Three MonthsEnded December 31, December 31, September 30, 2024 2023 2024 2023 2024 (In thousands)Selected Operating Data: Interest income$82,585 $76,482 $324,698 $296,835 $83,796 Interest expense 33,051 31,335 135,555 103,620 35,821 Net interest income 49,534 45,147 189,143 193,215 47,975 Provision (credit) for credit losses on loans and unfunded commitments 1,556 (939) 2,716 (3,079) 1,137 Non-interest income 6,934 6,563 30,565 30,073 6,992 Non-interest expense 36,947 36,285 141,495 141,023 33,717 Provision for income taxes 3,043 3,219 13,690 17,544 3,623 Net income$14,922 $13,145 $61,807 $67,800 $16,490 At or For theThree Months Ended At or For the Year Ended At or For theThree MonthsEnded December 31, December 31, September 30, 2024 2023 2024 2023 2024 (Dollars in thousands, except per share data)Per Common Share: Net income (fully diluted)$1.27 $1.11 $5.26 $5.61 $1.41 Book value$51.14 $48.44 $51.14 $48.44 $52.40 Earnings Performance Ratios: Annualized return on average assets 1.00% 0.91% 1.05% 1.19% 1.11%Annualized return on average common stockholders’ equity 9.76% 9.71% 10.55% 12.31% 11.10%Net interest margin 3.49% 3.30% 3.42% 3.57% 3.42%Average interest rate spread 2.87% 2.65% 2.76% 2.97% 2.74%Efficiency ratio 65.43% 70.17% 64.40% 63.16% 61.34%Non-interest expense to average total assets 2.46% 2.52% 2.40% 2.47% 2.27% Asset Quality Ratios: Allowance for credit losses to period-end loans 1.36% 1.39% 1.36% 1.39% 1.36%Non-performing assets to period-end assets 0.16% 0.20% 0.16% 0.20% 0.13%Non-performing loans to period-end loans 0.07% 0.25% 0.07% 0.25% 0.16%Annualized net charge-offs to average loans 0.01% 0.07% 0.03% 0.02% 0.13% Great Southern Bancorp, Inc. and SubsidiariesConsolidated Statements of Financial Condition(In thousands, except number of shares) December 31,2024 December 31,2023 September 30,2024 Assets Cash$109,366 $102,529 $105,098 Interest-bearing deposits in other financial institutions 86,390 108,804 103,267 Cash and cash equivalents 195,756 211,333 208,365 Available-for-sale securities 533,373 478,207 565,225 Held-to-maturity securities 187,433 195,023 189,257 Mortgage loans held for sale 6,937 5,849 9,959 Loans receivable, net of allowance for credit losses of $64,760 – December 2024; $64,670 – December 2023; $64,915 – September 2024 4,690,393 4,589,620 4,711,276 Interest receivable 20,430 21,206 22,262 Prepaid expenses and other assets 136,594 106,225 142,685 Other real estate owned and repossessions, net 5,993 23 263 Premises and equipment, net 132,466 138,591 133,311 Goodwill and other intangible assets 10,094 10,527 10,202 Federal Home Loan Bank stock and other interest-earning assets 28,392 26,313 17,912 Current and deferred income taxes 33,767 29,485 25,804 Total Assets$5,981,628 $5,812,402 $6,036,521 Liabilities and Stockholders’ Equity Liabilities Deposits$4,605,549 $4,721,708 $4,697,460 Securities sold under reverse repurchase agreements with customers 64,444 70,843 75,829 Short-term borrowings 514,247 252,610 442,246 Subordinated debentures issued to capital trust 25,774 25,774 25,774 Subordinated notes 74,876 74,579 74,802 Accrued interest payable 12,761 6,225 12,002 Advances from borrowers for taxes and insurance 5,272 4,946 9,625 Accounts payable and accrued expenses 70,634 76,401 79,746 Liability for unfunded commitments 8,503 7,487 6,947 Total Liabilities 5,382,060 5,240,573 5,424,431 Stockholders’ Equity Capital stock Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding December 2024, December 2023 and September 2024 -0- shares — — — Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding December 2024 – 11,723,548 shares; December 2023 – 11,804,430 shares; September 2024 – 11,680,968 shares 117 118 117 Additional paid-in capital 50,336 44,320 47,914 Retained earnings 603,477 569,872 593,422 Accumulated other comprehensive loss (54,362) (42,481) (29,363) Total Stockholders’ Equity 599,568 571,829 612,090 Total Liabilities and Stockholders’ Equity$5,981,628 $5,812,402 $6,036,521 Great Southern Bancorp, Inc. and SubsidiariesConsolidated Statements of Income(In thousands, except per share data) Three Months Ended Year Ended Three Months Ended December 31, December 31, September 30, 2024 2023 2024 2023 2024Interest Income Loans$75,380 $70,194 $297,176 $271,952 $76,425 Investment securities and other 7,205 6,288 27,522 24,883 7,371 82,585 76,482 324,698 296,835 83,796 Interest Expense Deposits 25,799 27,089 109,705 88,757 28,486 Securities sold under reverse repurchase agreements 295 334 1,407 1,205 385 Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities 5,417 2,344 18,222 7,500 5,388 Subordinated debentures issued to capital trust 434 463 1,798 1,736 456 Subordinated notes 1,106 1,105 4,423 4,422 1,106 33,051 31,335 135,555 103,620 35,821 Net Interest Income 49,534 45,147 189,143 193,215 47,975 Provision for Credit Losses on Loans — 750 1,700 2,250 1,200 Provision (Credit) for Unfunded Commitments 1,556 (1,689) 1,016 (5,329) (63)Net Interest Income After Provision for Credit Losses and Provision (Credit) for Unfunded Commitments 47,978 46,086 186,427 196,294 46,838 Noninterest Income Commissions 217 266 1,227 1,153 360 Overdraft and Insufficient funds fees 1,314 1,715 5,140 7,617 1,307 POS and ATM fee income and service charges 3,348 3,142 13,586 14,346 3,467 Net gains on loan sales 899 472 3,779 2,354 1,076 Late charges and fees on loans 132 332 512 786 77 Loss on derivative interest rate products (1) (103) (58) (337) (37)Other income 1,025 739 6,379 4,154 742 6,934 6,563 30,565 30,073 6,992 Noninterest Expense Salaries and employee benefits 19,509 19,967 78,599 78,521 19,548 Net occupancy and equipment expense 8,300 7,976 32,118 30,834 8,138 Postage 884 1,004 3,329 3,590 861 Insurance 1,163 1,364 4,622 4,542 1,052 Advertising 955 896 3,124 3,396 928 Office supplies and printing 273 237 1,008 1,057 232 Telephone 697 682 2,772 2,730 669 Legal, audit and other professional fees 1,001 1,609 5,399 7,086 809 Expense (income) on other real estate and repossessions (114) 48 (304) 311 (536)Acquired intangible asset amortization 108 58 433 286 108 Other operating expenses 4,171 2,444 10,395 8,670 1,908 36,947 36,285 141,495 141,023 33,717 Income Before Income Taxes 17,965 16,364 75,497 85,344 20,113 Provision for Income Taxes 3,043 3,219 13,690 17,544 3,623 Net Income $14,922 $13,145 $61,807 $67,800 $16,490 Earnings Per Common Share Basic$1.27 $1.11 $5.28 $5.65 $1.41 Diluted$1.27 $1.11 $5.26 $5.61 $1.41 Dividends Declared Per Common Share$0.40 $0.40 $1.60 $1.60 $0.40 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 includes the amortization of net loan fees, which were deferred in accordance with accounting standards. Net fees included in interest income were $1.2 million and $1.3 million for the three months ended December 31, 2024 and 2023, respectively. Net fees included in interest income were $4.6 million and $5.7 million for the years ended December 31, 2024 and 2023, respectively. Tax-exempt income was not calculated on a tax equivalent basis. The table does not reflect any effect of income taxes. December31, 2024 Three Months EndedDecember 31, 2024 Three Months EndedDecember 31, 2023 Average Yield/ Average Yield/ Yield/Rate Balance Interest Rate Balance Interest Rate (Dollars in thousands) Interest-earning assets: Loans receivable: One- to four-family residential4.15% $839,654 $8,593 4.07% $896,529 $8,570 3.79%Other residential6.91 1,526,985 27,665 7.21 818,510 14,506 7.03 Commercial real estate6.08 1,540,255 23,915 6.18 1,487,029 22,162 5.91 Construction6.94 477,168 8,840 7.37 936,843 17,455 7.39 Commercial business5.76 218,605 3,418 6.22 342,009 5,158 5.98 Other loans6.06 171,514 2,746 6.37 175,628 2,123 4.80 Industrial revenue bonds5.95 11,509 203 7.01 12,176 220 7.17 Total loans receivable6.08 4,785,690 75,380 6.27 4,668,724 70,194 5.96 Investment securities3.07 752,705 6,051 3.20 658,106 4,938 2.98 Other interest-earning assets4.36 99,900 1,154 4.60 98,702 1,350 5.43 Total interest-earning assets5.68 5,638,295 82,585 5.83 5,425,532 76,482 5.59 Non-interest-earning assets: Cash and cash equivalents 97,104 89,001 Other non-earning assets 263,099 235,161 Total assets $5,998,498 $5,749,694 Interest-bearing liabilities: Interest-bearing demand and savings1.39 $2,244,878 8,835 1.57 $2,233,148 9,298 1.65 Time deposits3.62 778,290 7,128 3.64 965,525 8,801 3.62 Brokered deposits4.61 798,605 9,836 4.90 679,948 8,990 5.25 Total deposits2.51 3,821,773 25,799 2.69 3,878,621 27,089 2.77 Securities sold under reverse repurchase agreements1.38 74,292 295 1.58 71,556 334 1.85 Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities4.69 441,975 5,417 4.88 167,409 2,344 5.55 Subordinated debentures issued to capital trust6.43 25,774 434 6.70 25,774 463 7.12 Subordinated notes5.90 74,846 1,106 5.88 74,542 1,105 5.88 Total interest-bearing liabilities2.82 4,438,660 33,051 2.96 4,217,902 31,335 2.94 Non-interest-bearing liabilities: Demand deposits 858,646 900,506 Other liabilities 89,407 89,771 Total liabilities 5,386,713 5,208,179 Stockholders’ equity 611,785 541,515 Total liabilities and stockholders’ equity $5,998,498 $5,749,694 Net interest income: $49,534 $45,147 Interest rate spread2.86% 2.87% 2.65%Net interest margin* 3.49% 3.30%Average interest-earning assets to average interest-bearing liabilities 127.0% 128.6% *Defined as the Company’s net interest income divided by average total interest-earning assets. December31, 2024 Year EndedDecember 31, 2024 Year EndedDecember 31, 2023 Average Yield/ Average Yield/ Yield/Rate Balance Interest Rate Balance Interest Rate (Dollars in thousands) Interest-earning assets: Loans receivable: One- to four-family residential4.15% $866,735 $34,841 4.02% $905,102 $33,693 3.72%Other residential6.91 1,213,729 88,364 7.28 822,955 56,274 6.84 Commercial real estate6.08 1,514,012 94,094 6.21 1,493,130 87,670 5.87 Construction6.94 694,724 52,841 7.61 908,558 65,999 7.26 Commercial business5.76 244,419 15,800 6.46 308,049 18,310 5.94 Other loans6.06 171,193 10,392 6.07 181,649 9,125 5.02 Industrial revenue bonds5.95 11,721 844 7.20 12,413 881 7.10 Total loans receivable6.08 4,716,533 297,176 6.30 4,631,856 271,952 5.87 Investment securities3.07 719,553 22,501 3.13 685,496 19,942 2.91 Other interest-earning assets4.36 98,594 5,021 5.09 98,049 4,941 5.04 Total interest-earning assets5.68 5,534,680 324,698 5.87 5,415,401 296,835 5.48 Non-interest-earning assets: Cash and cash equivalents 96,687 90,881 Other non-earning assets 254,847 212,914 Total assets $5,886,214 $5,719,196 Interest-bearing liabilities: Interest-bearing demand and savings1.39 $2,228,614 38,140 1.71 $2,202,242 28,579 1.30 Time deposits3.62 866,456 34,031 3.93 991,202 29,459 2.97 Brokered deposits4.61 729,268 37,534 5.15 611,821 30,719 5.02 Total deposits2.51 3,824,338 109,705 2.87 3,805,265 88,757 2.33 Securities sold under reverse repurchase agreements1.38 75,575 1,407 1.86 82,218 1,205 1.47 Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities4.69 358,262 18,222 5.09 142,866 7,500 5.25 Subordinated debentures issued to capital trust6.43 25,774 1,798 6.98 25,774 1,736 6.74 Subordinated notes5.90 74,734 4,423 5.92 74,430 4,422 5.94 Total interest-bearing liabilities2.82 4,358,683 135,555 3.11 4,130,553 103,620 2.51 Non-interest-bearing liabilities: Demand deposits 857,322 949,045 Other liabilities 84,249 88,678 Total liabilities 5,300,254 5,168,276 Stockholders’ equity 585,960 550,920 Total liabilities and stockholders’ equity $5,886,214 $5,719,196 Net interest income: $189,143 $193,215 Interest rate spread2.86% 2.76% 2.97%Net interest margin* 3.42% 3.57%Average interest-earning assets to average interest-bearing liabilities 127.0% 131.1% *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”). This non-GAAP financial information includes the tangible common equity to tangible assets 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. This non-GAAP financial measurement is supplemental and is 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 December 31, December 31, 2024 2023 (Dollars in thousands) Common equity at period end$599,568 $571,829 Less: Intangible assets at period end 10,094 10,527 Tangible common equity at period end (a)$589,474 $561,302 Total assets at period end$5,981,628 $5,812,402 Less: Intangible assets at period end 10,094 10,527 Tangible assets at period end (b)$5,971,534 $5,801,875 Tangible common equity to tangible assets (a) / (b) 9.87% 9.67% CONTACT: Zack Mukewa,Investor Relations,(616) 233-0500GSBC@lambert.com

Great Southern Bancorp, Inc. Reports Preliminary Fourth Quarter Earnings of $1.27 Per Diluted Common Share

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