Great Southern Bancorp (GSBC) investor relations material

Executive summary

• Q2 2026 net income was $15.8 million ($1.43 per diluted share), down from $19.8 million ($1.72 per share) in Q2 2025, mainly due to $2.1 million in one-time branch consolidation and severance costs.

• Adjusted Q2 2026 net income was $17.4 million ($1.57 per share), reflecting improved efficiency and returns excluding one-time expenses.

• First half 2026 net income totaled $33.3 million ($2.99 per share), compared to $36.9 million ($3.18 per share) in the first half of 2025.

• Core banking franchise remains resilient with disciplined expense management and strong asset quality.

• Annualized return on average equity was 9.83% (10.82% adjusted), and return on average assets was 1.12% (1.24% adjusted).

Financial highlights

• Net interest income for Q2 2026 was $49.5 million, down 2.9% year-over-year, mainly due to the absence of $2 million in swap-related interest income.

• Net interest margin expanded to 3.76% from 3.68% year-over-year and 3.71% sequentially.

• Non-interest income was $7.4 million, down from $8.2 million year-over-year, primarily due to lower tax credit partnership income.

• Non-interest expense was $38.2 million, but $36.1 million excluding $2.1 million in one-time consolidation and severance costs.

• Efficiency ratio increased to 67.21% from 59.16% year-over-year (63.47% adjusted).

Outlook and guidance

• Net interest margin expected to remain stable in the near term, with limited benefit from upcoming CD repricing.

• Branch consolidations and workforce reductions are expected to yield $4.4–$4.8 million in annualized non-interest expense savings and $2.3–$2.7 million in annual pre-tax income improvement starting Q4 2026.

• Effective tax rate projected at 18–19.5% for future periods.

• Management emphasizes conservative underwriting, disciplined portfolio management, and long-term value creation.

• Loan growth remains unpredictable due to elevated payoff activity and competitive market conditions.