Great Southern Bancorp (GSBC) investor relations material

Executive summary

• Net income for Q1 2026 was $17.5 million ($1.58 per diluted share), up 1.8% year-over-year, driven by higher non-interest income, lower non-interest expense, and a negative provision for unfunded commitments, despite lower net interest income.

• Annualized return on average equity was 10.85% and return on average assets was 1.24% for Q1 2026.

• Loan growth of nearly $100 million (2.3%) was led by construction and commercial real estate, partially offset by declines in multi-family loans.

• Asset quality remained strong, with non-performing assets at $10.1 million (0.18% of total assets) and low delinquencies.

• Capital and liquidity positions remained robust, with tangible common equity to tangible assets at 11.0% and regulatory ratios well above required thresholds.

Financial highlights

• Net interest income was $48.3 million, down 2.0% year-over-year, mainly due to the end of an interest rate swap, but net interest margin improved to 3.71% from 3.57%.

• Non-interest income rose to $7.0 million, driven by higher annuity commissions and sporadic fee income.

• Non-interest expense was $34.8 million, slightly down year-over-year, aided by legal fee recoveries and lower advertising costs.

• Efficiency ratio was 62.85%, up from 62.27% year-over-year.

• Effective tax rate was 18.7%, below the statutory rate due to tax credits and tax-exempt income.

Outlook and guidance

• Expense levels are expected to rise gradually through 2026 as deferred IT and infrastructure projects ramp up, potentially adding $200,000–$250,000 per month.

• Net interest margin is expected to remain stable even with a potential 25 basis point rate cut.

• Loan growth is expected to continue, with a strong pipeline of unfunded construction loans and commitments.

• Effective tax rate is projected to remain in the 18.5%-19.5% range.

• Focus remains on disciplined loan origination, credit quality, and long-term value creation.