Great Southern Bancorp, Inc. Reports Preliminary Third Quarter Earnings of $1.56 Per Diluted Common Share

Core Financial Performance - The company reported preliminary earnings of $1.56 per diluted common share for Q3 2025, an increase from $1.41 per diluted common share in Q3 2024, resulting in a net income of $17.8 million compared to $16.5 million in the previous year [1][5] - Annualized return on average common equity was 11.30% and return on average assets was 1.23% for Q3 2025, compared to 11.10% and 1.11% respectively for Q3 2024 [1] Net Interest Income - Net interest income increased by $2.8 million (5.8%) to $50.8 million in Q3 2025 from $48.0 million in Q3 2024, driven by lower interest expenses on deposits and borrowings [4][7] - The annualized net interest margin improved to 3.72% in Q3 2025 from 3.42% in Q3 2024 [4][6] Asset Quality - Non-performing assets decreased to $7.8 million (0.14% of total assets) at September 30, 2025, down from $9.6 million (0.16% of total assets) at December 31, 2024 [4][32] - The allowance for credit losses as a percentage of total loans was 1.43% at September 30, 2025, indicating adequate coverage for potential losses [31] Capital Position - The company's capital ratios remained strong, with a Tier 1 Leverage Ratio of 11.9% and a Common Equity Tier 1 Capital Ratio of 13.3% as of September 30, 2025 [16][18] - Total stockholders' equity increased to $632.9 million, representing 11.0% of total assets, with a book value of $56.18 per common share [18][21] Liquidity and Deposits - The company had secured borrowing lines of $1.11 billion at the Federal Home Loan Bank and $356.2 million at the Federal Reserve Bank as of September 30, 2025 [24][25] - Total deposits decreased by $156.1 million in Q3 2025, primarily due to a decline in brokered deposits [25][26] Loans - Total net loans decreased by $222.7 million (4.7%) from $4.69 billion at December 31, 2024, to $4.47 billion at September 30, 2025, mainly due to reductions in construction and residential loans [27][28] - The pipeline of unfunded loans remained strong, with significant amounts in construction loans [28] Non-Interest Income and Expense - Non-interest income increased slightly to $7.1 million in Q3 2025, supported by service fee income [13] - Non-interest expenses rose to $36.1 million, primarily due to higher legal and professional fees [14][17]