UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-18082 GREAT SOUTHERN BANCORP, INC. (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1451 E. Battlefield, Springfield, Missouri 6 ...

Financial Data and Key Metrics Changes - The company reported net income of $19,800,000 for Q2 2025, an increase from $17,000,000 in the same quarter last year, translating to earnings per share of $1.72 compared to $1.45 a year ago [6][13] - Net interest income rose to $51,000,000, an improvement of approximately 8.9% from $46,800,000 in the previous year [8][14] - The annualized net interest margin improved to 3.68%, up 25 basis points from the previous year and 11 basis points higher than Q1 2025 [8][14] Business Line Data and Key Metrics Changes - Gross loans totaled $4,600,000,000, a decline of $157,000,000 or 3.3% from the end of the previous year [8][20] - The largest loan categories were multifamily and commercial real estate lending, with balances of 1.58 billion and 1.49 billion respectively [9] - Non-interest income for the quarter was $8,200,000, a decrease of $1,600,000 or 16.5% compared to the same quarter last year [16][17] Market Data and Key Metrics Changes - Total deposits decreased by $73,900,000 or 1.6% from the end of Q1 2025, totaling $4,680,000,000 [9][21] - Non-performing assets were $8,100,000, representing 0.14% of total assets, a decrease from the previous quarter [10][22] - The allowance for credit losses as a percentage of total loans stood at 1.41%, slightly up from 1.36% at the end of Q1 2025 [22] Company Strategy and Development Direction - The company remains focused on prudent risk management and disciplined expense management to support long-term shareholder value [7][12] - There is an emphasis on balancing loan growth with appropriate pricing and loan structure, reflecting a conservative credit posture [9][20] - The company is committed to maintaining strong capital levels and delivering consistent value for shareholders amidst ongoing market uncertainty [12][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for long-term growth but noted a competitive environment with fewer opportunities in the loan market [29] - The company does not expect significant changes in origination activities in the near term, similar to the first half of 2025 [30] - Management indicated that while there may be slight increases in expenses due to technology investments, overall expense control remains a priority [32][34] Other Important Information - The company redeemed all outstanding subordinated notes totaling $75,000,000, saving future interest costs [24] - A new stock repurchase authorization for an additional 1,000,000 shares was approved, with nearly 176,000 shares repurchased in Q2 2025 [25] - Cash and cash equivalents totaled $245,900,000, with access to additional funding lines totaling $1,550,000,000 [21] Q&A Session Summary Question: Loan growth outlook for the second half of the year - Management is optimistic long-term but notes a competitive environment with fewer opportunities, expecting origination activities to remain similar to the first half of 2025 [29][30] Question: Visibility on expected loan payoffs - Management indicated that loan payoffs are unpredictable and difficult to forecast, with some expected payoffs potentially being pushed back [31] Question: Expense control outlook - Management expects expenses to remain consistent, with some potential increases related to technology and compensation adjustments, but nothing significant anticipated [32][34]

Financial Data and Key Metrics Changes - The company reported net income of $19,800,000 for Q2 2025, an increase from $17,000,000 in the same quarter last year, translating to $1.72 per share compared to $1.45 per share previously [5][12] - Net interest income rose to $51,000,000, an 8.9% increase from $46,800,000 a year ago, with an annualized net interest margin improving to 3.68%, up 25 basis points from the previous year [7][12] - Non-interest income decreased to $8,200,000, down 16.5% from the prior year, primarily due to unusual items affecting both periods [14][15] Business Line Data and Key Metrics Changes - Gross loans totaled $4,600,000,000, a decline of 3.3% from the previous year, with significant payoffs impacting the loan portfolio [7][8] - The largest loan categories remained multifamily and commercial real estate lending, with outstanding construction loans at $367,000,000 [8] - Non-performing assets were $8,100,000, representing 0.14% of total assets, with no provision for credit losses recorded [9][20] Market Data and Key Metrics Changes - Total deposits decreased by $73,900,000 or 1.6% from the previous quarter, but increased by $78,600,000 or 1.7% compared to the end of 2024 [8][19] - The company experienced a reduction in brokered deposits, which contributed to the overall decrease in total deposits [8][19] Company Strategy and Development Direction - The company emphasized maintaining strong credit quality while pursuing relationship-driven loan growth to support long-term stability [11][21] - There is a focus on prudent risk management and disciplined expense management to enhance financial resilience [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for long-term growth but acknowledged a competitive lending environment with limited opportunities [26] - The company plans to continue managing expenses carefully, with some potential increases in technology-related costs anticipated [31][32] Other Important Information - The company redeemed $75,000,000 in subordinated notes to save on future interest costs [21] - A new stock repurchase authorization for an additional 1,000,000 shares was approved, with nearly 176,000 shares repurchased in Q2 2025 [22] Q&A Session Summary Question: Loan growth outlook for the second half of the year - Management is optimistic long-term but noted a competitive environment with limited origination opportunities in the near term [26][27] Question: Expected loan payoffs - Payoffs are unpredictable, and while there was a significant payoff in Q2, future payoffs are difficult to forecast [28][29] Question: Expense control for the second half of the year - Management expects expenses to remain consistent, with some minor increases due to technology investments and potential adjustments in compensation costs [30][31] Question: Rental income expectations - Rental income increased due to a larger OREO balance, and similar levels are expected unless leases expire [39][42] Question: Margin sustainability - Management indicated that while there may be slight improvements in margin, the termination of the interest rate swap in Q4 will present challenges [43][46]

Financial Performance Overview [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company reported strong Q2 2025 results with net income rising to $19.8 million, driven by higher net interest income and improved asset quality Q2 2025 vs. Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $19.8 million | $17.0 million | | Diluted EPS | $1.72 | $1.45 | | Annualized ROA | 1.34% | 1.17% | | Annualized ROE | 12.81% | 12.03% | | Annualized Net Interest Margin | 3.68% | 3.43% | - Net interest income for Q2 2025 increased by **$4.2 million (8.9%)** year-over-year to **$51.0 million**, mainly due to reduced interest expense on deposits and borrowings[3](index=3&type=chunk) - Asset quality improved, with non-performing assets decreasing to **$8.1 million (0.14% of total assets)** at June 30, 2025, down from $9.6 million at the end of 2024[3](index=3&type=chunk) - The company recorded an unusually large income of **$1.1 million** from its investments in tax credit partnerships during the quarter[3](index=3&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO attributed strong performance to core banking fundamentals and outlined future priorities including cost control, credit quality, and funding mix optimization - The increase in net income was driven by strong growth in net interest income, which rose **$4.2 million (8.9%) YoY**, and a decrease in non-interest expense[4](index=4&type=chunk) - The loan portfolio saw a net reduction of **$156 million** in the quarter, partly due to a $30 million loan payoff, reflecting a balanced approach to growth and risk management[4](index=4&type=chunk) - Future priorities remain consistent: **control costs, safeguard credit quality, and optimize the funding mix**[5](index=5&type=chunk) - In Q2 2025, the company repurchased nearly **176,000 shares** and redeemed all **$75 million** of its outstanding subordinated notes to avoid higher interest costs[5](index=5&type=chunk) Detailed Financial Analysis [Net Interest Income](index=4&type=section&id=NET%20INTEREST%20INCOME) Net interest income grew 8.9% YoY to $51.0 million, with the net interest margin expanding to 3.68% due to lower liability costs Net Interest Income and Margin | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Interest Income | $50,963k | $46,818k | $49,334k | | Net Interest Margin | 3.68% | 3.43% | 3.57% | - The average rate paid on total interest-bearing liabilities decreased to **2.75%** in Q2 2025 from 3.17% in Q2 2024, as market interest rates declined from late 2024[8](index=8&type=chunk) - The company will no longer benefit from income related to a terminated interest rate swap after Q3 2025, which contributed approximately **$2.0 million** to interest income in Q2 2025[10](index=10&type=chunk) - The company has significant time deposits maturing in the next 12 months, with replacement rates likely to be between **3.35% and 3.85%** based on current market conditions[11](index=11&type=chunk) [Non-Interest Income](index=6&type=section&id=NON-INTEREST%20INCOME) Non-interest income decreased to $8.2 million, primarily due to a non-recurring gain from a terminated agreement in the prior-year quarter - Other income decreased by **$1.6 million YoY**, mainly because Q2 2024 included a **$2.7 million gain** from the termination of a core banking platform conversion agreement[12](index=12&type=chunk) - In Q2 2025, the company recorded **$1.1 million** in income related to exits from its investments in tax credit partnerships[12](index=12&type=chunk) - Net gains on loan sales decreased by **$234,000** due to a lower volume of fixed-rate single-family mortgage loans originated and sold[12](index=12&type=chunk) [Non-Interest Expense](index=7&type=section&id=NON-INTEREST%20EXPENSE) Non-interest expense decreased by $1.4 million YoY to $35.0 million, significantly improving the efficiency ratio to 59.16% - The efficiency ratio improved to **59.16%** for Q2 2025, compared to 64.27% for the same quarter in 2024[13](index=13&type=chunk) - Legal, audit, and other professional fees decreased by **$935,000**, as Q2 2024 included $902,000 in costs for a planned (but not completed) core systems conversion[16](index=16&type=chunk) - Net occupancy and equipment expenses increased by **$594,000**, primarily due to a $502,000 increase in computer license and support expenses for system upgrades[16](index=16&type=chunk) [Income Taxes](index=7&type=section&id=INCOME%20TAXES) The effective tax rate remained stable at 18.5%, below the statutory rate, due to tax-advantaged investments and credits - The effective tax rate for Q2 2025 was **18.5%**, the same as in Q2 2024[14](index=14&type=chunk) - The company expects its future effective tax rate to be approximately **18.0% to 20.0%**[14](index=14&type=chunk) Balance Sheet and Asset Quality [Loans](index=9&type=section&id=LOANS) Total net loans decreased by $156.1 million to $4.53 billion, though the unfunded commitment pipeline remains strong at over $1.1 billion - Total net loans decreased by **$156.1 million (3.3%)** to **$4.53 billion** at June 30, 2025, compared to year-end 2024[28](index=28&type=chunk) - The decrease was mainly driven by reductions in construction loans (-$79.1M), commercial real estate loans (-$56.1M), and one- to four-family residential loans (-$23.0M)[28](index=28&type=chunk) - The pipeline of unfunded loans and formal commitments was **$1.11 billion** at June 30, 2025, with the largest portion being $626.0 million in unfunded construction loans[29](index=29&type=chunk)[30](index=30&type=chunk) [Provision for Credit Losses and Allowance for Credit Losses](index=10&type=section&id=PROVISION%20FOR%20CREDIT%20LOSSES%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) The company recorded no provision expense for its loan portfolio in Q2 2025, with the ACL ratio increasing to 1.41% of total loans - **No provision expense** was recorded on the outstanding loan portfolio during Q2 2025[31](index=31&type=chunk) - The allowance for credit losses as a percentage of total loans was **1.41%** at June 30, 2025, an increase from 1.36% at December 31, 2024[32](index=32&type=chunk) - A negative provision (credit) for losses on unfunded commitments of **$110,000** was recorded for Q2 2025[31](index=31&type=chunk) [Asset Quality](index=10&type=section&id=ASSET%20QUALITY) Asset quality improved as non-performing assets decreased to $8.1 million, representing just 0.14% of total assets Asset Quality Metrics | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Non-performing assets | $8.1 million | $9.6 million | | NPAs as % of total assets | 0.14% | 0.16% | - Non-performing loans decreased by **$1.4 million** during Q2 2025 to a balance of **$2.0 million**, primarily due to payoffs in the one- to four-family residential and land development categories[34](index=34&type=chunk)[36](index=36&type=chunk) - Potential problem loans decreased by **$246,000** during Q2 2025 to a balance of **$7.2 million**[37](index=37&type=chunk) - Foreclosed assets and repossessions remained stable at approximately **$6.0 million**, dominated by a single $6.0 million office building asset[38](index=38&type=chunk)[43](index=43&type=chunk) Capital and Liquidity Management [Capital](index=7&type=section&id=CAPITAL) The company maintained a strong capital position, with a Tangible Common Equity ratio of 10.5%, while actively managing capital through buybacks and debt redemption Preliminary Capital Ratios (June 30, 2025) | Ratio | Percentage | | :--- | :--- | | Tier 1 Leverage Ratio | 11.5% | | Common Equity Tier 1 Capital Ratio | 13.0% | | Tier 1 Capital Ratio | 13.5% | | Total Capital Ratio | 14.7% | | Tangible Common Equity Ratio | 10.5% | - On June 15, 2025, the company redeemed all of its outstanding **$75 million subordinated notes**, utilizing excess cash[20](index=20&type=chunk) - During Q2 2025, the company repurchased **175,998 shares** at an average price of $55.11, and a new stock repurchase program for up to **one million additional shares** was approved[22](index=22&type=chunk)[23](index=23&type=chunk) [Liquidity and Deposits](index=8&type=section&id=LIQUIDITY%20AND%20DEPOSITS) The company maintains sufficient liquidity with over $1.5 billion in available borrowing capacity, despite a managed decrease in total deposits Available Liquidity at June 30, 2025 | Source | Amount (millions) | | :--- | :--- | | FHLBank Line | $1,216.1 | | Federal Reserve Bank Line | $338.9 | | Cash and cash equivalents | $245.9 | | Unpledged securities | $349.3 | - Total deposits decreased by **$73.9 million** during Q2 2025, which included a **$62.1 million decrease** in brokered deposits[26](index=26&type=chunk) - As of June 30, 2025, estimated uninsured deposits were approximately **$703.6 million**, representing **15% of total deposits**[27](index=27&type=chunk) Business and Corporate Information [Business Initiatives](index=13&type=section&id=BUSINESS%20INITIATIVES) Key initiatives include ongoing technology upgrades, the installation of new ITMs, and the construction of a next-generation banking center - Technology projects with the current core provider are ongoing, with completions expected to begin in **Q3 2025** and continue into 2026[39](index=39&type=chunk) - **Ten Interactive Teller Machines (ITMs)** were installed in the St. Louis market, offering live teller services and extended banking hours[40](index=40&type=chunk) - Construction of a new, next-generation banking center in Springfield, MO, is on track for completion in **Q4 2025**[41](index=41&type=chunk) [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements, with actual results subject to risks like economic changes and interest rate fluctuations - The report contains forward-looking statements as defined by the **Private Securities Litigation Reform Act of 1995**[45](index=45&type=chunk) - Factors that could cause results to differ include economic conditions, interest rate fluctuations, inflation, bank failures, credit losses, and legislative or regulatory changes[46](index=46&type=chunk) - The Company **does not undertake an obligation** to publicly release revisions to any forward-looking statements[47](index=47&type=chunk) Financial Statements and Data [Selected Financial Data](index=16&type=section&id=Selected%20Financial%20Data) This section provides a high-level summary of the company's consolidated financial condition and operating results Selected Financial Condition Data (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total assets | $5,854,672 | $5,981,628 | | Loans receivable, gross | $4,604,943 | $4,761,848 | | Deposits | $4,684,126 | $4,605,549 | | Total stockholders' equity | $622,368 | $599,568 | Selected Operating Data - Q2 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Net interest income | $50,963 | | Non-interest income | $8,212 | | Non-interest expense | $35,005 | | Net income | $19,786 | [Consolidated Statements of Financial Condition](index=18&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The detailed balance sheet shows total assets of $5.85 billion and total equity of $622.4 million as of June 30, 2025 Assets at June 30, 2025 (in thousands) | Asset Category | Amount | | :--- | :--- | | Cash and cash equivalents | $245,913 | | Available-for-sale securities | $527,543 | | Loans receivable, net | $4,534,287 | | **Total Assets** | **$5,854,672** | Liabilities and Equity at June 30, 2025 (in thousands) | Category | Amount | | :--- | :--- | | Deposits | $4,684,126 | | Total borrowings | $450,483 | | Total Liabilities | $5,232,304 | | Total Stockholders' Equity | $622,368 | | **Total Liabilities and Equity** | **$5,854,672** | [Consolidated Statements of Income](index=20&type=section&id=Consolidated%20Statements%20of%20Income) The detailed income statement shows Q2 2025 net income of $19.8 million, an increase from $17.0 million in Q2 2024 Income Statement Summary - Q2 2025 vs Q2 2024 (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Income | $50,963 | $46,818 | | Provision for Credit Losses | $(110) | $(607) | | Non-interest Income | $8,212 | $9,833 | | Non-interest Expense | $35,005 | $36,409 | | **Net Income** | **$19,786** | **$16,988** | [Average Balances, Interest Rates and Yields](index=22&type=section&id=Average%20Balances%2C%20Interest%20Rates%20and%20Yields) The analysis shows an interest rate spread of 3.08% for Q2 2025, driven by a lower cost of funds Yield/Rate Analysis - Three Months Ended June 30 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Avg. Yield on Total Loans | 6.16% | 6.37% | | Avg. Yield on Total Interest-Earning Assets | 5.74% | 5.94% | | Avg. Rate on Total Deposits | 2.47% | 2.93% | | Avg. Rate on Total Interest-Bearing Liabilities | 2.66% | 3.17% | | Interest Rate Spread | 3.08% | 2.77% | Non-GAAP Financial Measures [Reconciliation of Tangible Common Equity to Tangible Assets](index=26&type=section&id=Non-GAAP%20Reconciliation%3A%20Ratio%20of%20Tangible%20Common%20Equity%20to%20Tangible%20Assets) This non-GAAP reconciliation shows the tangible common equity ratio improved to 10.48% at the end of Q2 2025 - Management believes this non-GAAP measure is helpful for understanding the company's financial condition, capital strength, and for comparison with peers[64](index=64&type=chunk) Tangible Common Equity to Tangible Assets Ratio | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Tangible common equity (a) | $612,491k | $589,474k | | Tangible assets (b) | $5,844,795k | $5,971,534k | | **Ratio (a) / (b)** | **10.48%** | **9.87%** |

Core Financial Performance - For the quarter ended June 30, 2025, the Company reported earnings of $1.72 per diluted common share, translating to a net income of $19.8 million, an increase from $1.45 per diluted common share and $17.0 million net income in the same quarter of 2024 [1][6] - The annualized return on average common equity was 12.81%, and the annualized return on average assets was 1.34%, both showing improvement from 12.03% and 1.17% respectively in the prior year [2] Selected Financial Data - Net interest income for the second quarter of 2025 was $50.963 million, up from $46.818 million in the same quarter of 2024, marking an increase of approximately 8.9% [4][5] - Non-interest income decreased to $8.212 million from $9.833 million year-over-year [4][13] - Non-interest expense decreased to $35.005 million from $36.409 million in the prior year [4][13] Asset Quality - Non-performing assets totaled $8.1 million at June 30, 2025, a decrease from $9.6 million at December 31, 2024, representing 0.14% of total assets [5][32] - The allowance for credit losses was 1.41% of total loans, reflecting an increase from 1.36% at the end of the previous quarter [31] Capital and Liquidity - The Company's capital ratios remained strong, with a Tier 1 Leverage Ratio of 11.5% and a Common Equity Tier 1 Capital Ratio of 13.0% as of June 30, 2025 [16] - Total stockholders' equity increased to $622.4 million, representing 10.6% of total assets, with a book value of $54.61 per common share [16] - The Company had secured borrowing line availability of $1.22 billion at the FHLBank and $338.9 million at the Federal Reserve Bank [25] Loan Portfolio - Total net loans decreased by $156.1 million, or 3.3%, from $4.69 billion at December 31, 2024, to $4.53 billion at June 30, 2025 [27] - The largest decrease was in construction loans, which fell by $79.1 million [27] Stock Repurchase and Dividends - The Company repurchased nearly 176,000 shares of common stock at an average price of $55.11 during the second quarter of 2025 [22] - A regular quarterly cash dividend of $0.40 per common share was declared, reducing stockholders' equity by $14.4 million [22]

SPRINGFIELD, Mo., June 20, 2025 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, expects to report second quarter preliminary earnings after the market closes on Wednesday, July 16, 2025, and host a conference call on Thursday, July 17, 2025, at 2:00 p.m. Central Time (3:00 p.m. Eastern Time). The call will be available live or later in a recorded version at the Company’s Investor Relations website, https://investors.greatsouthernbank.com. Particip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-18082 GREAT SOUTHERN BANCORP, INC. (Exact name of registrant as specified in its charter) Maryland 43-1524856 (State or other jurisdiction of incorporation or organization) (I.R. ...

Great Southern Bancorp (GSBC) FY 2025 Annual General Meeting May 07, 2025 11:00 AM ET Speaker0 Hello, and welcome to the Annual Meeting of Stockholders of Great Southern Bancorp, Inc. Please note that today's meeting is being recorded. During the meeting, we will have a question and answer session. You can submit questions or comments at any time by clicking on the message icon. It is now my pleasure to turn today's meeting over to Brian Teady with Great Southern. Brian, the floor is yours. Speaker1 Good mo ...

Great Southern Bancorp, Inc. (GSBC) has gone on sale in 2025 in the stock market sell-off. It's a Zacks Rank #1 (Strong Buy) which is expected to grow earnings by 7.6% in 2025.Great Southern Bancorp is the holding company for Great Southern Bank which was founded in 1923 in Springfield, Mo, with 4 employees and $5,000. It has grown to 97 offices across 12 states, including 89 retail banking centers in Arkansas, Iowa, Kansas, Minnesota, Missouri, and Nebraska.Additionally, Great Southern Bancorp has commerci ...

Financial Data and Key Metrics Changes - The company reported net income of $17.2 million or $1.47 per diluted common share, up from $13.4 million or $1.13 per share in the same quarter a year ago, reflecting a strong performance [6][16] - Net interest income totaled $49.3 million in Q1 2025, an increase of about 10% from $44.8 million in Q1 2024 [8][16] - The net interest margin increased to 3.57%, up from 3.32% in the same period last year [17][24] Business Line Data and Key Metrics Changes - The loan portfolio remained flat at $4.76 billion, up 2.2% from the end of Q1 2024 [9][25] - The largest categories in the loan portfolio were multifamily at $1.59 billion and commercial real estate at $1.49 billion [10] - Non-interest income totaled $6.6 million, a decrease of 3.2% compared to the first quarter last year [20] Market Data and Key Metrics Changes - Total deposits increased by 3.3% to $4.76 billion compared to the end of 2024, driven by increases in interest-bearing checking balances [11][26] - Non-performing assets were 0.16% of total assets, with non-performing loans at 0.07% of period-end loans [28][29] Company Strategy and Development Direction - The company remains focused on execution, protecting margins, and supporting relationship-based loan growth while investing strategically in people and systems [15][24] - The board approved a new stock repurchase authorization of up to 1 million shares, indicating a commitment to returning value to shareholders [33] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is competition for loans, the overall activity is down slightly, and they do not expect significant growth in the near term [47] - The company maintains a strong capital position and is well-positioned to address current and future funding needs despite economic uncertainties [25][34] Other Important Information - Non-interest expenses were flat year-over-year at $34.8 million, reflecting effective cost management [14][21] - The allowance for credit losses as a percentage of total loans stood at 1.36%, consistent with the end of 2024 [30] Q&A Session Summary Question: How should the margin react without changes to Fed policy? - Management indicated that while there may be slight benefits from maturing CDs, substantial changes are not expected [38] Question: How would the balance sheet react to potential Fed rate cuts? - Management feels neutral about interest rate risk and expects a slight negative impact initially, but recovery should occur quickly [43][44] Question: Thoughts on buyback activity going forward? - Management expects to remain active in buybacks, depending on share prices and availability [54][55] Question: Is modest growth in expenses reasonable without material planned expenditures? - Management confirmed that modest growth in expenses is a fair assumption, with no unusual expenditures anticipated [57]