Great Southern Bancorp Posts Strong Q3 Earnings, Net Income Up 7.65%

Ticker: GSBC · Form: 10-Q · Filed: Nov 6, 2025 · CIK: 854560

Sentiment: bullish

Topics: Regional Banking, Earnings Growth, Net Interest Income, Credit Quality, Shareholder Value, Financial Performance, Interest Expense Management

Related Tickers: GSBC

TL;DR

**GSBC is crushing it, with net income up and costs down, making it a solid buy in regional banking.**

AI Summary

GREAT SOUTHERN BANCORP, INC. (GSBC) reported a strong financial performance for the three and nine months ended September 30, 2025. For the three-month period, net income increased by 7.65% to $17.752 million from $16.490 million in the prior year. Basic earnings per common share rose to $1.57 from $1.41, and diluted earnings per common share increased to $1.56 from $1.41. Net interest income saw a significant increase of 5.83% to $50.773 million from $47.975 million, primarily driven by a substantial decrease in total interest expense by 21.00% to $28.306 million, despite a 5.59% decrease in total interest income to $79.079 million. For the nine-month period, net income grew by 16.66% to $54.698 million from $46.885 million in 2024. Basic EPS for the nine months increased to $4.77 from $4.01, and diluted EPS rose to $4.74 from $3.99. The company also reported a credit for losses on unfunded commitments of $(379) thousand for the three months and $(837) thousand for the nine months, compared to a provision for credit losses on loans of $1.200 million and $1.700 million in the respective prior periods. Total assets decreased to $5.738 billion as of September 30, 2025, from $5.982 billion at December 31, 2024, while total stockholders' equity increased to $632.926 million from $599.568 million over the same period.

Why It Matters

GSBC's robust net income growth and improved EPS signal strong operational efficiency and effective interest rate management, which is crucial for investors in a fluctuating rate environment. The significant reduction in interest expense, particularly on deposits, suggests the bank is successfully managing its cost of funds, giving it a competitive edge against other regional banks. For employees, sustained profitability can lead to job security and potential growth opportunities. Customers may benefit from a financially stable institution, potentially leading to better loan rates or deposit products. The broader market will observe GSBC's ability to navigate economic shifts, setting a benchmark for regional banking performance.

Risk Assessment

Risk Level: low — The company reported a credit for losses on unfunded commitments of $(379) thousand for the three months and $(837) thousand for the nine months ended September 30, 2025, compared to a provision for credit losses on loans of $1.200 million and $1.700 million in the prior year periods. This indicates a significantly improved outlook on credit quality and reduced expected loan losses, providing strong evidence of low risk.

Analyst Insight

Investors should consider increasing their position in GSBC, given the strong net income growth, improved EPS, and effective cost management. The positive credit loss outlook further de-risks the investment, suggesting continued financial stability and potential for capital appreciation.

Financial Highlights

debt To Equity
8.06
revenue
$79,079,000
total Assets
$5,737,867,000
total Debt
$5,097,275,000
net Income
$17,752,000
eps
$1.56
cash Position
$196,235,000
revenue Growth
-5.63%

Revenue Breakdown

SegmentRevenueGrowth
Loans$72,028,000-5.76%
Investment securities and other$7,051,000-4.34%

Key Numbers

Key Players & Entities

FAQ

What were GREAT SOUTHERN BANCORP, INC.'s net income figures for the three and nine months ended September 30, 2025?

For the three months ended September 30, 2025, GREAT SOUTHERN BANCORP, INC. reported net income of $17.752 million, an increase from $16.490 million in the same period of 2024. For the nine months ended September 30, 2025, net income was $54.698 million, up from $46.885 million in the prior year.

How did GREAT SOUTHERN BANCORP, INC.'s earnings per share change in Q3 2025?

GREAT SOUTHERN BANCORP, INC.'s basic earnings per common share increased to $1.57 for the three months ended September 30, 2025, from $1.41 in the same period of 2024. Diluted earnings per common share also rose to $1.56 from $1.41.

What was the trend in GREAT SOUTHERN BANCORP, INC.'s net interest income?

Net interest income for GREAT SOUTHERN BANCORP, INC. increased by 5.83% to $50.773 million for the three months ended September 30, 2025, compared to $47.975 million in the prior year. For the nine months, net interest income grew to $151.070 million from $139.609 million.

Did GREAT SOUTHERN BANCORP, INC. report a provision or credit for credit losses?

For the three months ended September 30, 2025, GREAT SOUTHERN BANCORP, INC. reported a credit for losses on unfunded commitments of $(379) thousand, a significant improvement from a provision for credit losses on loans of $1.200 million in the prior year. Similarly, for the nine months, there was a credit of $(837) thousand compared to a $1.700 million provision.

What are the key changes in GREAT SOUTHERN BANCORP, INC.'s balance sheet as of September 30, 2025?

As of September 30, 2025, GREAT SOUTHERN BANCORP, INC.'s total assets decreased to $5.738 billion from $5.982 billion at December 31, 2024. Conversely, total stockholders' equity increased to $632.926 million from $599.568 million over the same period.

How has GREAT SOUTHERN BANCORP, INC. managed its interest expense?

GREAT SOUTHERN BANCORP, INC. successfully reduced its total interest expense by 21.00% to $28.306 million for the three months ended September 30, 2025, from $35.821 million in the prior year. This was primarily driven by lower interest expense on deposits, which decreased to $23.984 million from $28.486 million.

What was the impact of share repurchases on GREAT SOUTHERN BANCORP, INC.'s common stock?

GREAT SOUTHERN BANCORP, INC. repurchased $30.049 million of its common stock during the nine months ended September 30, 2025, compared to $12.469 million in the prior year. This activity contributed to a decrease in outstanding common shares to 11,189,262 as of November 4, 2025.

What is GREAT SOUTHERN BANCORP, INC.'s geographic operating footprint?

GREAT SOUTHERN BANCORP, INC., through Great Southern Bank, provides financial services primarily in Missouri, Iowa, Kansas, Minnesota, Nebraska, and Arkansas. The Bank also originates commercial loans from lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix.

What new accounting pronouncements will affect GREAT SOUTHERN BANCORP, INC.'s future disclosures?

ASU No. 2024-03, 'Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures,' will require GREAT SOUTHERN BANCORP, INC. to provide disaggregated disclosure of income statement expenses in tabular format, including categories like employee compensation and depreciation. This will be effective for annual periods beginning after December 15, 2026.

How did cash and cash equivalents change for GREAT SOUTHERN BANCORP, INC. during the nine months ended September 30, 2025?

GREAT SOUTHERN BANCORP, INC.'s cash and cash equivalents increased by $479 thousand during the nine months ended September 30, 2025, reaching $196.235 million at the end of the period. This contrasts with a decrease of $2.968 million in the same period of 2024.

Industry Context

Great Southern Bancorp operates in the highly competitive banking industry, primarily serving customers in Missouri, Iowa, Kansas, Minnesota, Nebraska, and Arkansas, with commercial loan origination offices in several other major cities. The industry is characterized by evolving customer preferences, technological advancements, and a dynamic interest rate environment. Banks are focused on managing interest rate risk, credit quality, and regulatory compliance while seeking to grow market share and profitability.

Regulatory Implications

As a one-bank holding company, Great Southern Bancorp and its subsidiary, Great Southern Bank, are subject to regulation by federal and state agencies. This includes periodic examinations and adherence to capital adequacy requirements, liquidity standards, and consumer protection laws. Changes in regulatory requirements or the imposition of new compliance burdens could impact the company's operations and profitability.

What Investors Should Do

  1. Monitor Net Interest Margin trends
  2. Analyze the decrease in Total Assets
  3. Evaluate the increase in Total Stockholders' Equity
  4. Assess the shift in Provision for Credit Losses

Key Dates

Glossary

Available-for-sale securities
Securities that are accounted for at fair value, with unrealized gains and losses reported in other comprehensive income. (Represents a significant portion of the company's investment portfolio, impacting its balance sheet and equity.)
Held-to-maturity securities
Securities that the company has the intent and ability to hold until maturity, accounted for at amortized cost. (These securities are not marked to market, providing a stable value on the balance sheet.)
Allowance for credit losses
An estimate of the amount of loans that are expected to be uncollectible. (This directly impacts the net carrying value of loans on the balance sheet and is a key indicator of credit risk.)
Liability for unfunded commitments
Represents the potential future obligation to lend funds under existing commitments, such as lines of credit. (The company recorded a credit for losses on unfunded commitments, indicating an improvement in expected future credit performance.)
Subordinated debentures issued to capital trust
A form of debt that ranks below other debt and equity in the event of liquidation, often used for regulatory capital purposes. (These are long-term liabilities that contribute to the company's capital structure.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments and other items not included in net income. (This account reflects changes in the fair value of available-for-sale securities and other items, impacting total stockholders' equity.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Great Southern Bancorp has demonstrated robust growth in net income, with a 7.65% increase for the third quarter and a 16.66% increase for the nine months ended September 30, 2025. This was largely driven by a substantial 21.00% decrease in total interest expense, which more than offset a 5.59% decrease in total interest income, leading to a 5.83% rise in net interest income for the quarter. While total assets have seen a slight decrease from $5.982 billion to $5.738 billion, total stockholders' equity has strengthened, increasing from $599.568 million to $632.926 million. A notable shift in credit loss recognition from provisions to credits on unfunded commitments suggests an improved outlook on credit quality.

Filing Stats: 4,424 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2025-11-06 13:34:06

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Number of Shares) SEPTEMBER 30, DECEMBER 31, 2025 2024 (Unaudited) ASSETS Cash $ 94,106 $ 109,366 Interest-bearing deposits in other financial institutions 102,129 86,390 Cash and cash equivalents 196,235 195,756 Available-for-sale securities 531,348 533,373 Held-to-maturity securities 181,315 187,433 Mortgage loans held for sale 5,593 6,937 Loans receivable, net of allowance for credit losses of $ 64,749 – September 2025; $ 64,760 – December 2024 4,467,683 4,690,393 Interest receivable 19,931 20,430 Prepaid expenses and other assets 133,412 136,594 Other real estate owned and repossessions, net 6,083 5,993 Premises and equipment, net 133,769 132,466 Goodwill and other intangible assets 9,769 10,094 Federal Home Loan Bank stock and other interest-earning assets 25,603 28,392 Current and deferred income taxes 27,126 33,767 Total Assets $ 5,737,867 $ 5,981,628 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 4,528,033 $ 4,605,549 Securities sold under reverse repurchase agreements with customers 42,674 64,444 Short-term borrowings and other interest-bearing liabilities 425,907 514,247 Subordinated debentures issued to capital trust 25,774 25,774 Subordinated notes — 74,876 Accrued interest payable 3,909 12,761 Advances from borrowers for taxes and insurance 9,904 5,272 Accrued expenses and other liabilities 61,074 70,634 Liability for unfunded commitments 7,666 8,503 Total Liabilities 5,104,941 5,382,060 Stockholders' Equity: Capital stock Serial preferred stock, $ .01 par value; authorized 1,000,000 shares; issued and outstanding September 2025 and December 2024 - - 0 - shares — — Common stock, $ .01 par value; authorized 20,000,000 shares; issued and outst

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1: BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the "Company" or "Great Southern") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations, changes in stockholders' equity and cash flows of the Company as of the dates and for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2024, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC"). Reclassifications Prior period consolidated financial statements are reclassified whenever necessary to conform to the current period presentation. NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS The Company operates as a one-bank holding company. The Company's business primarily consists of the oper

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