Great Southern Bancorp (GSBC) investor relations material

Executive summary

• Net income for Q2 2025 was $19.8M ($1.72/share), up 16.5% year-over-year, driven by higher net interest income and lower non-interest expense.

• Six-month net income was $36.9M, up 21.6% year-over-year.

• Total assets decreased 2.1% to $5.85B from December 2024, mainly due to lower loan balances.

• Core banking fundamentals remained strong with disciplined expense management and stable, diversified deposits.

• Annualized return on average equity was 12.81% and return on average assets was 1.34% for Q2 2025.

Financial highlights

• Net interest income rose 8.9% year-over-year to $51M; net interest margin improved to 3.68% from 3.43%.

• Non-interest income was $8.2M, down $1.6M year-over-year due to lower other income and loan sales, but up sequentially on tax credit partnership gains.

• Non-interest expense decreased 3.9% year-over-year to $35M, led by lower legal/professional fees and OREO expenses.

• Efficiency ratio improved to 59.16% from 64.27% year-over-year.

• Allowance for credit losses was 1.41% of total loans, with no provision expense in Q2 2025.

Outlook and guidance

• Loan growth expected to remain muted due to a competitive environment and limited origination opportunities.

• Expense levels anticipated to remain consistent, with minor increases possible from technology investments and compensation adjustments.

• Net interest margin expected to remain stable with a slight tailwind in Q3, but a headwind anticipated in Q4 due to the loss of swap-related interest income.

• Effective tax rate expected to be 18.0% to 20.0% in future periods.

• Focus remains on cost control, credit quality, and optimizing funding mix.