南方萬通金控公佈第二季初步業績 每股盈利1.43美元 受一次性開支拖累

EX-99.1
2
exh_991.htm
PRESS RELEASE

 EdgarFiling
 
 

EXHIBIT 99.1

Great Southern Bancorp, Inc. Reports Preliminary Second Quarter
Earnings of $1.43 Per Diluted Common Share

Preliminary Financial Results and Business Update for the Quarter Ended June 30, 2026

SPRINGFIELD, Mo., July 15, 2026 (GLOBE NEWSWIRE) -- Great Southern Bancorp, Inc. (the “Company”) (NASDAQ:GSBC), the holding
company for Great Southern Bank (the “Bank”), today reported that preliminary earnings for the three months ended June 30,
2026, were $1.43 per diluted common share ($15.8 million net income) compared to $1.72 per diluted common share ($19.8 million net income)
for the three months ended June 30, 2025. The 2026 second quarter results were negatively impacted by non-recurring expenses recorded
in the period related to the consolidation of certain banking centers and other operational areas, which are discussed below.

For the quarter ended June 30, 2026, annualized return on average common equity was 9.83%, annualized return on average assets was
1.12%, annualized net interest margin was 3.76% and the efficiency ratio was 67.21%, compared to 12.81%, 1.34%, 3.68% and 59.16%, respectively,
for the quarter ended June 30, 2025.

Excluding the non-recurring expenses referenced above, for the quarter ended June 30, 2026, net income was $17.4 million, earnings
per diluted common share were $1.57, annualized return on average common equity was 10.82%, annualized return on average assets was 1.24%,
and the efficiency ratio was 63.47%. A reconciliation of these non-GAAP calculations is detailed in “Non-GAAP Financial Measures”
below.

Key Results:

Net Interest Income: Net interest income for the second quarter of 2026 decreased $1.5 million
(2.9%) to $49.5 million compared to $51.0 million for the second quarter of 2025, largely driven by the completion of accounting recognition
in October 2025 of interest income from a previously terminated interest rate swap. This was partially offset by lower interest expense
on deposit accounts and other borrowings. Annualized net interest margin was 3.76% for the quarter ended June 30, 2026, compared to 3.68%
for the quarter ended June 30, 2025, and 3.71% for the quarter ended March 31, 2026. 

Asset Quality: Non-performing assets and potential problem loans totaled $10.6 million at
June 30, 2026, an increase of $1.1 million from $9.5 million at December 31, 2025. At June 30, 2026, non-performing assets were $9.4 million
(0.17% of total assets), an increase of $1.3 million from $8.1 million (0.15% of total assets) at December 31, 2025. See “Asset
Quality” below.

Loans: Total net loans, excluding mortgage loans held for sale, decreased $49.1 million,
or 1.1%, from $4.36 billion at December 31, 2025 to $4.31 billion at June 30, 2026. This decrease was primarily driven by decreases in
commercial real estate loans and other residential (multi-family) loans, partially offset by an increase in construction loans. The Bank
experienced an increased amount of loan prepayments in the 2026 second quarter compared to a lower amount of prepayments in the first
quarter of 2026.

Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal
Reserve Bank of $1.23 billion and $319.6 million, respectively, at June 30, 2026. 

Capital: The Company’s capital position remained strong as of June 30, 2026, significantly
exceeding the “well-capitalized” thresholds established by regulatory agencies. See “Capital” below.

  1 

  

 

Certain Income and Expense Items Impacting Second Quarter 2026 Results: During the three months
ended June 30, 2026, there were certain income and expense items that impacted the Company’s results of operations.

Interest income on loans increased $393,000 due to collection of unbooked interest on one relationship. This relationship has recently
provided interest payments semi-annually, but we do not have assurances of future payments or amounts, if payments are made.

Other non-interest income included $176,000 due to fees received on the origination of back-to-back interest rate swaps as part of
a new commercial real estate loan transaction. These types of fees occur sporadically as part of our operations.

In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking center
locations. See “Business Initiatives” below. Accounting rules require that certain costs and expected losses be recorded immediately,
while any expected gains are not recorded until realized. Upon evaluating the carrying value and estimated market value of each affected
location (all of which are owned facilities), a valuation allowance of $1.4 million was recognized in the second quarter of 2026 related
to four of the locations. The Company currently does not expect to ultimately realize losses on the sale of the other five properties
and expects the eventual aggregate selling price of all affected properties will exceed the combined carrying value of the affected locations
(approximately $12.6 million).  In addition to the valuation allowance, severance expense of $234,000 was recognized in the second
quarter of 2026 related to the termination of 39 employees due to the closure of the nine banking centers.The Company also completed
a limited number of other operational workforce reductions in the quarter, including the closure of two commercial lending locations.
These reductions resulted in the recognition of $327,000 in severance costs related to 27 employees along with $163,000 in remaining lease
expense associated with the loan production office.The $2.1 million of expenses outlined above are included in the Consolidated
Statements of Income under “Noninterest Expense – Net Occupancy and Equipment Expense” and “Noninterest Expenses
– Salaries and employee benefits,” respectively.

Selected Financial Data:

 
  
 Three
 Months Ended

 
  
 June 30,
  
 June 30,
 March 31,

 
  
 2026
  
 2025
  
 2026

 
  
  
 (Dollars in thousands, except per share
 data)

 
  
  
  

 
 Net interest income
 $
 49,493
  
 $
 50,963
  
  
 $
 48,328
  

 
 Provision (credit) for credit losses on loans and unfunded commitments
  
 8
  
  
 (110
 )
  
  
 (931
 )

 
 Non-interest income
  
 7,375
  
  
 8,212
  
  
  
 7,029
  

 
 Non-interest expense
  
 38,222
  
  
 35,005
  
  
  
 34,792
  

 
 Provision for income taxes
  
 2,843
  
  
 4,494
  
  
  
 4,020
  

 
  
  
  
  
  
  
  
  
  

 
 Net income
 $
 15,795
  
 $
 19,786
  
  
 $
 17,476
  

 
  
  
  
  
  
  
  
  
  

 
 Earnings per diluted common share
 $
 1.43
  
 $
 1.72
  
  
 $
 1.58
  

 
  
  
  
  
  
  
  
  
  
  
  

 

Joseph W. Turner, President and CEO of Great Southern, commented: "Our second quarter performance reflects continued strong results
within our core banking franchise. Throughout the quarter, we remained focused on the fundamentals that have consistently guided our long-term
success, including sound credit underwriting, thoughtful balance sheet management, and prudent expense control. We reported preliminary
net income of $15.8 million, or $1.43 per diluted common share, for the second quarter of 2026, compared to $19.8 million, or $1.72 per
diluted common share, for the second quarter of 2025. As outlined above, our second quarter results were inclusive of one-time expenses
associated with branch consolidation and workforce reduction initiatives. For the six months ended June 30, 2026, preliminary net income
totaled $33.3 million, or $2.99 per diluted common share, compared to $36.9 million, or $3.18 per diluted common share, in the first half
of 2025.”

  2 

  

 

Turner noted, "Net interest income remained strong in the quarter, a result of prudent asset-liability management and disciplined pricing
on earning assets and funding sources. Our net interest margin was 3.76% in the quarter, compared to 3.68% in the second quarter of 2025.
Our pricing discipline helped mitigate the absence of $2.0 million in quarterly interest income recorded in the prior year period from
a previously terminated interest rate swap, as well as lower earning assets, given the loan balance decline in the second quarter of 2026.
Though our prioritization of net interest income will remain, credit and pricing discipline may temper near-term earnings given our focus
on long-term stockholder returns.”

Turner continued, “Turning to our balance sheet, and as discussed in the prior quarter, period-to-period loan trends are influenced
significantly by loan repayments from our borrowers. Elevated payoff activity in the second quarter of 2026 led to a $148.9 million decline
in loan balances, compared to balances at the end of the 2026 first quarter. Despite the increased payoff volume, we remain committed
to an origination strategy anchored by conservative credit and underwriting standards. As it relates to funding, we were pleased to see
continued expansion within our core non-interest-bearing checking portfolios, reflecting the strength of our long-standing customer relationships.
Additionally, as total earning assets moderated during the quarter, we were able to reduce higher-cost wholesale funding. These actions
supported the level of our net interest margin while preserving our balance sheet flexibility.”

Turner added, "Asset quality remained very strong through the first half of 2026. Total non-performing assets were $9.4 million, or
0.17% of total assets, as of June 30, 2026. Included in this total is a $1.8 million multi-family loan transferred to foreclosed assets
in the quarter. This loan experienced idiosyncratic issues which resulted in a $909,000 charge off upon its transfer to foreclosed assets.

Turner further commented, "As outlined above, we announced the consolidation of nine banking centers into other nearby locations along
with the elimination of 66 positions across various divisions in the Company. Though these decisions resulted in the realization of several
non-recurring expenses in the second quarter of 2026, we’re confident they will allow for better alignment with our customer base
and improved returns for our stockholders, going forward. We expect the operational efficiencies created by these actions, the impact
of which should begin to be realized in the fourth quarter of 2026, will produce an increase in annual pre-tax income of over $2 million.”

"Great Southern enters the second half of 2026 in a strong position, with robust capital and liquidity levels and a prudent balance
sheet posture. As of June 30, 2026, tangible common equity was 11.47% of tangible assets and book value per common share increased to
$58.95. Looking ahead, we remain focused on protecting asset quality, executing thoughtful operational improvements, and building long-term
value for our stockholders," Turner concluded.

NET INTEREST INCOME

 
  
 Three
 Months Ended

 
  
  
 June
 30,
  
 June
 30,
  
 March
 31,

 
  
  
 2026
  
 2025
  
 2026

 
  
  
 (Dollars in thousands)

 
 Interest Income
 $
 72,461
  
  
 $
 80,975
  
  
 $
 71,165
  

 
 Interest Expense
  
 22,968
  
  
  
 30,012
  
  
  
 22,837
  

 
 Net Interest Income
 $
 49,493
  
  
 $
 50,963
  
  
 $
 48,328
  

 
  
  
  
  
  
  
  
  
  

 
 Net interest margin
  
 3.76
 %
  
  
 3.68
 %
  
  
 3.71
 %

 
 Average interest-earning assets to average interest-bearing liabilities
  
 129.9
 %
  
  
 126.9
 %
  
  
 128.8
 %

 
  
  
  
  
  
  
  
  
  
  
  
  

 

  3 

  

 

Net interest income for the second quarter of 2026 decreased $1.5 million (2.9%) to $49.5 million, compared to $51.0 million for the
second quarter of 2025. This decrease was driven primarily by the $2.0 million net reduction in quarterly interest income associated with
a previously terminated interest rate swap (income recognition ended on October 6, 2025). Additionally, compared to the year-ago quarter,
interest income declined due to lower loan balances and lower market rates, which primarily impacted the interest rates on existing variable-rate
loans and newly originated fixed-rate loans. Mostly offsetting the decrease in interest income was reduced interest expense, due to the
strategic management of maturing/repricing brokered deposits and interest-bearing demand deposits. Also, there was no interest expense
on subordinated notes in the quarter ended June 30, 2026, as those notes were redeemed in June 2025. Annualized net interest margin was
3.76% in the second quarter of 2026, compared to 3.68% in the same period of 2025 and 3.71% in the first quarter of 2026. The average
interest rate spread was 3.24% for the three months ended June 30, 2026, compared to 3.09% for the three months ended June 30, 2025 and
3.20% for the three months ended March 31, 2026.

The average yield on total interest-earning assets decreased from 5.84% in the 2025 second quarter to 5.51% in the 2026 second quarter,
with the average yield on loans decreasing 37 basis points, the average yield on investment securities increasing two basis points and
the average yield on other interest earning assets (primarily funds held at the Federal Reserve Bank) decreasing 80 basis points. The
average rate paid on total interest-bearing liabilities decreased from 2.75% in the 2025 second quarter to 2.27% in the 2026 second quarter,
with the average rate paid on interest-bearing demand and savings deposits, time deposits and brokered deposits decreasing 22 basis points,
53 basis points and 61 basis points, respectively. The average rate paid on short-term borrowings decreased 67 basis points.

Market interest rates, primarily the federal funds rate and SOFR rates, declined in the fourth quarter of 2025, and remained lower
through the first half of 2026. There were no federal funds rate cuts in the first half of 2026, but there were federal funds rate cuts
in September, October, and December of 2025, totaling 75 basis points. This market rate decline reduced the average yield on loans, though
the impact was tempered as cash flows from lower-rate fixed rate loans originated a few years ago were deployed into residential and commercial
real estate loans with comparably higher rates of interest. The decline in market interest rates also resulted in lower average rates
paid on deposits and borrowings, compared to the prior-year second quarter and the first quarter of 2026.

To mitigate exposure to the risk of fluctuations in future cash flows resulting from changes in interest rates (primarily related to
falling interest rates), the Company has strategically utilized derivative financial instruments - primarily interest rate swaps - as
part of its interest rate risk management strategy.

The following table presents, for the periods indicated, the effect of cash flow hedge accounting included in interest income in the
consolidated statements of income:

 
  
 Three
 Months Ended

 
  
 June
 30,
  
 June
 30,
  
 March
 31,

 
  
 2026
  
 2025
  
 2026

 
  
  
 (In thousands)

 
 Terminated interest rate swaps
 $
 —
  
  
 $
 2,025
  
  
 $
 —
  

 
 Active interest rate swaps
  
 (1,022
 )
  
  
 (1,757
 )
  
  
 (1,031
 )

 
 Increase (decrease) to interest income
 $
 (1,022
 )
  
 $
 268
  
  
 $
 (1,031
 )

 
  
  
  
  
  
  
  
  
  
  
  
  

 

The Company entered into an interest rate swap in October 2018, which was terminated in March 2020. Upon termination, the Company received
$45.9 million, inclusive of accrued but unpaid interest, from its swap counterparty. The net amount, after deducting accrued interest
and deferred income taxes, was accreted to interest income on loans monthly until the originally scheduled termination date of October
6, 2025. With this date having passed, the Company no longer has the benefit of that income from the terminated swap. At June 30, 2026,
the Company had two active interest rate swaps with a combined notional amount of $400 million. These swaps resulted in a reduction of
interest income of $1.0 million and $1.8 million in the three months ended June 30, 2026 and 2025, respectively.

  4 

  

 

Market rates for time deposits for much of 2024 were elevated but have declined as the FOMC cut the federal funds rate by 100 basis
points in late 2024, 25 basis points in the third quarter of 2025 and 50 basis points in the fourth quarter of 2025. As of June 30, 2026,
time deposit maturities (including brokered time deposits) over the next 12 months were as follows: within three months — $630.7
million, with a weighted-average rate of 3.38%; within three to six months — $263.2 million, with a weighted-average rate of 3.10%;
and within six to twelve months — $25.5 million, with a weighted-average rate of 1.40%. Based on time deposit market rates in June
2026, overall average replacement rates for maturing time deposits originated through our retail branch system are likely to be approximately
2.70 - 3.20%, depending on term. Brokered time deposit rates were generally at or above 3.90% at the end of June 2026.

NON-INTEREST INCOME

For the quarter ended June 30, 2026, non-interest income decreased $837,000, to $7.4 million, when compared to the quarter ended June
30, 2025, primarily as a result of the following items:

Other income: Other income decreased $897,000 compared to the prior-year second quarter. In the second quarter of 2025, the
Company recorded income of $1.1 million related to exits from, and other activities of, its investments in tax credit partnerships, which
was not repeated in the current quarter.

Commissions: Commission income increased $230,000 compared to the prior-year second quarter. The increase was due to annuity
sales that were approximately 94% higher in the 2026 period compared to the 2025 period. Yields on these products have been attractive
to many of our customers.

NON-INTEREST EXPENSE

For the quarter ended June 30, 2026, non-interest expense increased $3.2 million, to $38.2 million, when compared to the quarter ended
June 30, 2025, primarily as a result of the following items:

Net occupancy and equipment expenses: Net occupancy and equipment expenses increased $2.2 million, or 26.7%, from the prior-year
second quarter. In June 2026, the Company decided to consolidate operations of nine banking centers into other nearby Great Southern banking
center locations and close one leased facility which served as the Company’s Omaha, Neb. loan production office. The Company evaluated
the carrying value of the affected owned premises (totaling approximately $12.6 million) to determine if any impairment of the value of
these premises was warranted and recorded a valuation allowance of $1.4 million related to certain affected premises, furniture, fixtures
and equipment of the owned locations at June 30, 2026. During the three months ended June 30, 2026, the Company also recorded expenses
totaling $163,000 related to contractual future lease payments for the Omaha leased lending facility. For additional information on these
consolidations, see “Business Initiatives” below.Additionally, various components of computer license and support
expenses, related to upgrades of core systems capabilities and disaster recovery site, collectively increased by $333,000 in the second
quarter of 2026 compared to the second quarter of 2025.

Salaries and employee benefits: Salaries and employee benefits increased $686,000, or 3.4%, from the prior-year second quarter.
The increase was primarily due to the Company recording $561,000 in expenses related to severance pay for employees affected by the consolidations
in banking centers and other operational areas. See “Business Initiatives” below.

The Company’s efficiency ratio for the quarter ended June 30, 2026, was 67.21% compared to 59.16% for the same quarter in 2025.
The Company’s ratio of non-interest expense to average assets was 2.72% for the three months ended June 30, 2026, compared to 2.37%
for the three months ended June 30, 2025. These increased percentages were largely due to the one-time expenses previously discussed.
Average assets for the three months ended June 30, 2026, decreased $298.6 million, or 5.0%, compared to the three months ended June 30,
2025, primarily due to the decline in the average balance of net loans.

  5 

  

 

INCOME TAXES

For the three months ended June 30, 2026 and 2025, the Company's effective tax rate was 15.3% and 18.5%, respectively. For the six
months ended June 30, 2026 and 2025, the Company's effective tax rate was 17.1% and 19.2%, respectively. These effective rates were below
the statutory federal tax rate of 21.0%, due primarily to the utilization of certain investment tax credits and the Company’s tax-exempt
investments and tax-exempt loans, which reduced the Company’s effective tax rate. The effective rates in the 2026 periods also decreased
due to a higher-than-normal level of deductions related to the significant amount of stock option exercises by the Company’s employees.
The Company’s effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company’s
utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions
and the overall level of pre-tax income. State tax expense estimates continually evolve as taxable income and apportionment between states
are analyzed. The Company currently expects its effective tax rate (combined federal and state) will be approximately 18.0% to 19.5% in
future periods.

CAPITAL 

 
  
  
 June 30,
  
 December 31,
  
 March 31,

 
  
  
 2026
  
 2025
  
 2026

 
 Consolidated Regulatory Capital Ratios
  
 (Preliminary)
  
  
  
  
  
  

 
 Tier 1 Leverage Ratio
  
 12.4
 %
  
 12.2
 %
  
 12.2
 %

 
 Common Equity Tier 1 Capital Ratio
  
 14.0
 %
  
 13.6
 %
  
 13.5
 %

 
 Tier 1 Capital Ratio
  
 14.6
 %
  
 14.1
 %
  
 14.0
 %

 
 Total Capital Ratio
  
 15.8
 %
  
 15.3
 %
  
 15.2
 %

 
 Tangible Common Equity Ratio
  
 11.5
 %
  
 11.2
 %
  
 11.0
 %

 
  
  
  
  
  
  
  
  
  
  

 

As of June 30, 2026, total stockholders’ equity was $641.6 million, representing 11.6% of total assets and a book value of $58.95
per common share. This compares to total stockholders’ equity of $636.1 million, or 11.4% of total assets, and a book value of $57.50
per common share at December 31, 2025. The $5.5 million increase in stockholders’ equity from December 31, 2025, was primarily driven
by $33.3 million in net income and an $11.9 million increase from stock option exercises, partially offset by $9.4 million in cash dividends
declared on the Company’s common stock, $24.8 million in common stock repurchases, and an increase in unrealized losses on investments
and interest rate swaps. The increased unrealized losses on the Company’s available-for-sale investment securities and interest
rate swaps, which totaled $37.7 million and $32.2 million (net of taxes) at June 30, 2026 and December 31, 2025, respectively, decreased
stockholders’ equity by $5.5 million during the six months ended June 30, 2026. These net unrealized losses primarily resulted from
increased intermediate-term market interest rates, which generally decreased the fair value of the investment securities and interest
rate swaps. In 2026, market interest rates and interest rate expectations for future periods decreased early in the first quarter before
increasing significantly since March to levels higher than those at December 31, 2025, ultimately resulting in decreases in the fair value
of the Company’s investment securities and interest rate swaps during the six months ended June 30, 2026.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $17.4 million and $16.6
million at June 30, 2026 and December 31, 2025, respectively, that were not included in its total capital balance. If unrealized losses
on held-to-maturity securities were included in capital (net of taxes) at June 30, 2026 and December 31, 2025, they would have decreased
total stockholder’s equity at those dates by $13.1 million and $12.5 million, respectively. These amounts were equal to 2.0% of
total stockholders’ equity of $641.6 million at June 30, 2026 and $636.1 million at December 31, 2025.

In April 2025, the Company’s Board of Directors authorized the purchase, from time to time, of up to one million additional shares
of the Company’s common stock. As of June 30, 2026, approximately 304,000 shares remained available under this stock repurchase
authorization.

During the three months ended June 30, 2026, the Company repurchased 114,624 shares of its common stock at an average price of $68.39,
and the Company’s Board of Directors declared a regular quarterly cash dividend of $0.43 per common share, which, combined, reduced
stockholders’ equity by $12.5 million. During the three months ended June 30, 2026, the Company experienced stock option exercises
of 125,221 shares of its common stock at an average price of $54.17, which increased stockholders’ equity by $7.3 million.

  6 

  

 

During the six months ended June 30, 2026, the Company repurchased 383,288 shares of its common stock at an average price of $64.29,
and the Company’s Board of Directors declared regular quarterly cash dividends totaling $0.86 per common share, which, combined,
reduced stockholders’ equity by $34.1 million. During the six months ended June 30, 2026, the Company experienced stock option exercises
of 205,480 shares of its common stock at an average price of $52.89, which increased stockholders’ equity by $11.9 million.

LIQUIDITY AND DEPOSITS

Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations
in a timely manner. The Company’s primary sources of funds are customer deposits, FHLBank advances, other borrowings, loan repayments,
unpledged securities, proceeds from sales of loans and available-for-sale securities and funds provided from operations. The Company utilizes
some or all of these sources of funds depending on the comparative costs and availability at the time. The Company has, from time to time,
chosen not to pay rates on deposits as high as the rates paid by certain of its competitors and, at management’s discretion, supplements
deposits with alternative sources of funds. Management believes that the Company maintains overall liquidity sufficient to satisfy its
depositors’ requirements and meet its borrowers’ credit needs.

At June 30, 2026, the Company had the following available secured lines and on-balance sheet liquidity:

 
  
 June
 30, 2026

 
 Federal Home Loan Bank line
 $1,234.0 million

 
 Federal Reserve Bank line
 319.6 million

 
 Cash and cash equivalents
 180.0 million

 
 Unpledged securities – Available-for-sale
 339.9 million

 
 Unpledged securities – Held-to-maturity
 23.4 million

 
  
  

 

During the six months ended June 30, 2026, the Company’s total deposits decreased $180.7 million. Interest-bearing checking balances
decreased $91.8 million (4.0%), primarily in certain money market accounts, and non-interest-bearing checking balances increased $35.9
million (4.3%). Time deposits generated through the Company’s banking center and corporate services networks decreased $36.9 million
(5.4%). Brokered deposits, obtained through a variety of sources, decreased $87.8 million (13.2%). As total assets (primarily loans receivable)
decreased, the Company elected not to replace some of its maturing brokered deposits. Most of this deposit decrease occurred in the second
quarter of 2026, as total deposits decreased $143.1 million in the three months ended June 30, 2026.

At June 30, 2026, the Company had the following deposit balances:

 
  
 June
 30, 2026

 
 Interest-bearing checking
 $2,197.6 million

 
 Non-interest-bearing checking
 877.4 million

 
 Time deposits
 651.5 million

 
 Brokered deposits
 575.6 million

 
  
  

 

At June 30, 2026, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company’s consolidated
subsidiaries, were approximately $665.6 million (15.5% of total deposits).

LOANS

Total net loans, excluding mortgage loans held for sale, decreased $49.1 million, or 1.1%, from $4.36 billion at December 31, 2025
to $4.31 billion at June 30, 2026. This decrease was primarily driven by decreases in commercial real estate loans of $73.3 million and
other residential (multi-family) loans of $39.9 million, partially offset by an increase in construction loans of $53.2 million. Compared
to March 31, 2026, net loans decreased $148.9 million.

  7 

  

 

The pipeline of the unfunded portion of loans and formal loan commitments remained strong, with the largest portion of these unfunded
balances consisting of the unfunded portion of outstanding construction loans ($531.5 million at June 30, 2026). See the table below.

For additional details about the Company’s loan portfolio, please refer to the quarterly loan portfolio presentation available
on the Company’s Investor Relations website under “Presentations.”

Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):

 
  
  
 June
 30, 2026
  
 March
 31, 2026
  
 December
 31, 2025
  
 December
 31, 2024
  
 December
 31, 2023

 
 Closed non-construction loans with unused available lines
  
  
  
  
  
  
  
  
  
  

 
 Secured by real estate (one- to four-family)
 $
 214,597
 $
 214,107
 $
 208,229
 $
 205,599
 $
 203,964

 
 Secured by real estate (not one- to
 four-family)
  
 —
  
 —
  
 —
  
 —
  
 —

 
 Not secured by real estate – commercial
 business
  
 106,290
  
 106,024
  
 114,568
  
 106,621
  
 82,435

 
  
  
  
  
  
  
  
  
  
  
  

 
 Closed construction loans with unused available lines
  
  
  
  
  
  
  
  
  
  

 
 Secured by real estate (one-to four-family)
  
 116,195
  
 119,231
  
 112,684
  
 94,501
  
 101,545

 
 Secured by real estate (not one-to four-family)
  
 531,842
  
 530,756
  
 624,025
  
 703,947
  
 719,039

 
  
  
  
  
  
  
  
  
  
  
  

 
 Loan commitments not closed
  
  
  
  
  
  
  
  
  
  

 
 Secured by real estate (one-to four-family)
  
 22,937
  
 19,194
  
 14,113
  
 14,373
  
 12,347

 
 Secured by real estate (not one-to four-family)
  
 49,139
  
 24,053
  
 19,412
  
 53,660
  
 48,153

 
 Not secured by real estate – commercial
 business
  
 33,940
  
 35,762
  
 38,262
  
 22,884
  
 11,763

 
  
  
  
  
  
  
  
  
  
  
  

 
  
 $
 1,074,940
 $
 1,049,127
 $
 1,131,293
 $
 1,201,585
 $
 1,179,246

 
  
  
  
  
  
  
  
  
  
  
  

 

PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES

During both the three months and six months ended June 30, 2026 and 2025, the Company did not record a provision expense on its portfolio
of outstanding loans. Total net charge offs were $819,000 for the three months ended June 30, 2026, compared to total net recoveries of
$111,000 during the same period in the prior year. Total net charge offs were $806,000 for the six months ended June 30, 2026, compared
to total net recoveries of $55,000 during the same period in the prior year. During the quarter ended June 30, 2026, the Company recorded
a provision for losses on unfunded commitments of $8,000, compared to a negative provision for losses on unfunded commitments of $110,000
for the same period in 2025. For the six months ended June 30, 2026, the Company recorded a negative provision for losses on unfunded
commitments of $923,000, compared to a negative provision for losses on unfunded commitments of $458,000 for the same period in 2025.

The Bank’s allowance for credit losses as a percentage of total loans was 1.46% at both June 30, 2026 and December 31, 2025,
compared to 1.43% at March 31, 2026. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s
loan portfolio at June 30, 2026, based on recent reviews of the portfolio and current economic conditions. However, if challenging economic
conditions persist or worsen, or if management’s assessment of the loan portfolio changes, additional provisions for credit losses
may be required, which could adversely impact the Company’s future financial performance.

ASSET QUALITY 

At June 30, 2026, non-performing assets were $9.4 million, an increase of $1.3 million from $8.1 million at December 31, 2025, and
a decrease of $676,000 compared to March 31, 2026. Non-performing assets as a percentage of total assets were 0.17% at June 30, 2026,
compared to 0.15% at December 31, 2025.

  8 

  

 

Activity in the non-performing loan categories during the quarter ended June 30, 2026, was as follows:

 
  
  
 BeginningBalance,April
 1
  
 Additionsto
 Non-Performing
  
 Removedfrom
 Non-Performing
  
 Transfersto
 PotentialProblemLoans
  
 Transfers
 toForeclosedAssets andRepossessions
  
 Charge-Offs
  
 Payments
  
 EndingBalance,June
 30

 
  
  
 (In thousands)

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

 
 One- to four-family construction
 $
 —
 $
 —
 $
 —
 $
 —
 $
 —
  
 $
 —
  
 $
 —
  
 $
 —

 
 Subdivision construction
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Land development
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Commercial construction
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 One- to four-family residential
  
 703
  
 368
  
 —
  
 —
  
 —
  
  
 —
  
  
 (81
 )
  
 990

 
 Other residential (multi-family)
  
 2,725
  
 —
  
 —
  
 —
  
 (1,807
 )
  
 (909
 )
  
 (9
 )
  
 —

 
 Commercial real estate
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Commercial business
  
 —
  
 36
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 36

 
 Consumer
  
 26
  
 —
  
 —
  
 —
  
 —
  
  
 (17
 )
  
 (2
 )
  
 7

 
 Total non-performing loans
 $
 3,454
 $
 404
 $
 —
 $
 —
 $
 (1,807
 )
 $
 (926
 )
 $
 (92
 )
 $
 1,033

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

 

Compared to March 31, 2026, non-performing loans decreased $2.4 million.

The non-performing one- to four-family residential category consisted of seven loans at June 30, 2026, three of which were added during
the current quarter.

The largest relationship in the one- to four-family residential category totaled $386,000 at June 30, 2026. This relationship was
added to non-performing loans in 2024 and is collateralized by a single-family residential property in southern Iowa.

During the three months ended June 30, 2026, a single loan totaling $1.8 million ($2.7 million at March 31, 2026) which had been collateralized
by an apartment in eastern Iowa was transferred from the non-performing other residential (multi-family) category to foreclosed assets.
Upon transfer to foreclosed assets the Company recorded a loan charge-off of $909,000 on the property, based upon an updated independent
appraisal of the asset.

  9 

  

 

Activity in the potential problem loans categories during the quarter ended June 30, 2026, was as follows:

 
  
  
 BeginningBalance,April
 1
  
 AdditionstoPotentialProblem
  
 RemovedfromPotentialProblem
  
 Transfersto
 Non-Performing
  
 Transfers
 toForeclosedAssets andRepossessions
  
 Charge-Offs
  
 LoanAdvances(Payments)
  
 EndingBalance,June
 30

 
  
  
 (In thousands)

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

 
 One- to four-family construction
 $
 —
 $
 —
 $
 —
 $
 —
 $
 —
  
 $
 —
  
 $
 —
  
 $
 —

 
 Subdivision construction
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Land development
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Commercial construction
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 One- to four-family residential
  
 943
  
 25
  
 —
  
 —
  
 —
  
  
 —
  
  
 (112
 )
  
 856

 
 Other residential (multi-family)
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Commercial real estate
  
 —
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 —
  
  
 —

 
 Commercial business
  
 14
  
 —
  
 —
  
 —
  
 —
  
  
 —
  
  
 (2
 )
  
 12

 
 Consumer
  
 281
  
 47
  
 —
  
 —
  
 (5
 )
  
 (7
 )
  
 (27
 )
  
 289

 
 Total potential problem loans
 $
 1,238
 $
 72
 $
 —
 $
 —
 $
 (5
 )
 $
 (7
 )
 $
 (141
 )
 $
 1,157

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

 

Compared to March 31, 2026, potential problem loans decreased $81,000.

At June 30, 2026, the one- to four-family residential category consisted of 12 loans, one of which was added to potential problem
loans during the current quarter.

The largest relationship in the one- to four-family category totaled $256,000 and was added in the third quarter of 2025. This relationship
is collateralized by a single-family residential property in the St. Louis area.

At June 30, 2026, the consumer category of potential problem loans consisted of 18 loans, five of which were added during the current
quarter.

Activity in the foreclosed assets and repossessions categories during the quarter ended June 30, 2026 was as follows:

 
  
  
 BeginningBalance,April
 1
  
 Additions
  
 ORE
 andRepossessionSales
  
 CapitalizedCosts
  
 ORE andRepossessionWrite-Downs
  
 EndingBalance,June
 30

 
  
  
 (In thousands)

 
  
  
  
  
  
  
  
  
  
  
  
  
  

 
 One-to four-family construction
 $
 —
 $
 —
 $
 —
  
 $
 —
 $
 —
 $
 —

 
 Subdivision construction
  
 —
  
 —
  
 —
  
  
 —
  
 —
  
 —

 
 Land development
  
 —
  
 —
  
 —
  
  
 —
  
 —
  
 —

 
 Commercial construction
  
 —
  
 —
  
 —
  
  
 —
  
 —
  
 —

 
 One- to four-family residential
  
 643
  
 —
  
 (643
 )
  
 —
  
 —
  
 —

 
 Other residential (multi-family)
  
 —
  
 1,807
  
 —
  
  
 —
  
 —
  
 1,807

 
 Commercial real estate
  
 5,960
  
 —
  
 —
  
  
 582
  
 —
  
 6,542

 
 Commercial business
  
 —
  
 —
  
 —
  
  
 —
  
 —
  
 —

 
 Consumer
  
 12
  
 12
  
 (13
 )
  
 —
  
 —
  
 11

 
 Total foreclosed assets and repossessions
 $
 6,615
 $
 1,819
 $
 (656
 )
 $
 582
 $
 —
 $
 8,360

 
  
  
  
  
  
  
  
  
  
  
  
  
  

 

Compared to March 31, 2026, foreclosed assets increased $1.8 million.

The largest asset in the commercial real estate category, totaling $6.5 million, consisted of an office building located in Clayton,
Mo. This asset was foreclosed upon in the fourth quarter of 2024. In the three months ended June 30, 2026, the Company capitalized $582,000
in improvements to the property. As mentioned in previous filings, the Company reported that it expected such improvements to ultimately
cost approximately $3 million and take several months to complete. It is expected that such additional costs will be incurred and capitalized
on this asset throughout the remainder of 2026. The majority of this expenditure represents the addition of fire suppression sprinklers
throughout the building and other significant improvements. Based on an independent valuation (which utilized sales and current market
rents in the area for similarly improved buildings), Bank management does not currently anticipate any loss on this asset and decided
to move forward with implementing these improvements.

At June 30, 2026, the other residential (multi-family) category, totaling $1.8 million, consisted of one relationship that was transferred
from non-performing loans in the current quarter. This asset, mentioned above in the non-performing loans discussion, consisted of an
apartment complex in eastern Iowa. The borrower was no longer in compliance with their loan agreement and, ultimately, the property was
placed into foreclosure. The Company expects that it will make significant repairs and improvements to this property. Such improvements
are expected to cost approximately $800,000 and take several months to complete. The Company expects to capitalize these expenditures,
and these costs were contemplated as part of the charge-off analysis when the asset was transferred to foreclosed assets.

The one- to four-family residential category of foreclosed assets previously included one property consisting of a condominium in
the Sarasota, Fla. area, which was added during the three months ended March 31, 2026. This property was sold in the three months ended
June 30, 2026, with the Company realizing a small gain on the sale.

BUSINESS INITIATIVES

The Company maintains its focus on technology initiatives and advancements with its current core provider and key partners. These investments
in both foundational projects and a heightened customer experience continue to foster an organizational emphasis on innovation and forward
progress.

Great Southern launched a partnership with Greenlight, a debit card and financial learning app for kids and teens, in April 2026. The
partnership offers a free Greenlight membership to Great Southern customers and is part of the Company’s ongoing efforts to expand
both technology and family banking offerings.

Also in April, the Company’s fully redesigned website www.GreatSouthernBank.com, launched. The website, representative
of Great Southern’s continued technology investments, offers customers and interested parties an improved online experience with
up-to-date content, improved navigation, easier access to financial education information and more.

  10 

  

 

In June 2026 the Company decided, as part of its regular operational reviews, to consolidate nine banking centers into other Great
Southern locations and eliminate a total of 66 positions across various Company divisions, including those at the impacted banking centers.
These decisions were part of routine business maintenance as the organization evaluated products, services and workforce to align with
changing market dynamics. Of the nine consolidating banking centers, one is in Arkansas, one is in Kansas, two are in Iowa and five are
in Missouri (three in the Springfield metro area). Affected banking centers will close October 1, except for the Arkansas location, which
will close September 25. All other consolidated staff positions outside of the banking centers have an effective date of September 30.
As a result of these planned consolidations, certain expenses were required to be recorded in the 2026 second quarter financial statements.
A list of the affected banking center locations is available on our website www.GreatSouthernBank.com.

The banking center consolidations and the workforce reductions are expected to result in approximately $2.3 - $2.7 million in annual
pre-tax income improvement, beginning in the fourth quarter of 2026. This estimate incorporates compensation, facility and other non-interest
expense savings, expected to be $4.4 - $4.8 million annually. This expense savings is expected to be partially offset by a projected amount
of customer deposit attrition over time related to the branch closures, resulting in additional interest expense on alternative funding
sources along with reduced non-interest income generated from these deposit accounts. If deposit account attrition is ultimately greater
than our estimates, it may negatively impact our anticipated annual pre-tax income improvement. At June 30, 2026, total demand deposits
at the nine banking centers were approximately $170 million and retail CD balances were approximately $25 million.

Also, as part of the organizational evaluation of products and services, Great Southern continues to expand its Live Teller ATM network
with four new locations, including its first installations in the Des Moines, Iowa, market and a new Great Southern Express-branded location
in Ozark, Mo.

The banking center located at 3839 Indian Hills Dr. in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel. This
reinvestment will bring a fully refreshed banking center to the Bank’s Sioux City customers, including updated and brightened interiors,
updated technology, and the installation of a drive-thru Live Teller ATM offering extended banking hours for customer convenience. During
the temporary closure, customers are served by six additional banking centers in the greater Sioux City area, and 15 ATM locations.

Earnings Conference Call

The Company will host a conference call on Thursday, July 16, 2026, at 2:00 p.m. Central Time to discuss second quarter 2026 preliminary
earnings. The call will be available live or in a recorded version at the Company’s Investor Relations website, http://investors.greatsouthernbank.com.
Participants may register for the call at https://register-conf.media-server.com/register/BI1519b65fe3df412abf1fe40dfe95c397.

About Great Southern Bancorp, Inc.

Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company currently
operates 87 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta,
Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global
Select Market under the symbol “GSBC.”

www.GreatSouthernBank.com

  11 

  

 

Forward-Looking Statements

When used in this press release and in other documents filed or furnished by the Company with or to the Securities and Exchange Commission
(the “SEC”), in the Company's other press releases or other public or stockholder communications, and in oral statements made
with the approval of an authorized executive officer, the words or phrases “may,” “might,” “could,”
“should,” "will likely result," "are expected to," "will continue," "is anticipated," “believe,” "estimate," "project,"
"intends" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations
or consequences of announced transactions, known trends and statements about future performance, operations, products and services of
the Company. The Company’s ability to predict results or the actual effects of future plans or strategies is inherently uncertain,
and the Company’s actual results could differ materially from those contained in the forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to: (i) expected revenues, cost savings, earnings
accretion, synergies and other benefits from the Company's merger and acquisition activities might not be realized within the anticipated
time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention,
might be greater than expected; (ii) changes in economic conditions, either nationally or in the Company's market areas; (iii) the effects
of any new or continuing public health issues on general economic and financial market conditions; (iv) fluctuations in interest rates,
the effects of inflation or a potential recession, whether caused by Federal Reserve actions or otherwise; (v) the impact of bank failures
or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment;
(vi) slower or negative economic growth caused by tariffs, changes in energy prices, supply chain disruptions or other factors; (vii)
the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes
in estimates of the adequacy of the allowance for credit losses; (viii) the possibility of realized or unrealized losses on securities
held in the Company's investment portfolio; (ix) the Company's ability to access cost-effective funding and maintain sufficient liquidity;
(x) fluctuations in real estate values and both residential and commercial real estate market conditions; (xi) the ability to adapt successfully
to technological changes to meet customers' needs and developments in the marketplace; (xii) the possibility that security measures implemented
might not be sufficient to mitigate the risk of a cyber-attack or cyber theft, and that such security measures might not protect against
systems failures or interruptions; (xiii) legislative or regulatory changes that adversely affect the Company's business; (xiv) changes
in accounting policies and practices or accounting standards; (xv) results of examinations of the Company and the Bank by their regulators,
including the possibility that the regulators may, among other things, require the Company to limit its business activities, change its
business mix, increase its allowance for credit losses, write-down assets or increase its capital levels, or affect its ability to borrow
funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; (xvi) costs and effects of litigation,
including settlements and judgments; (xvii) competition; and (xviii) natural disasters, war, terrorist activities or civil unrest and
their effects on economic and business environments in which the Company operates. The Company wishes to advise readers that the factors
listed above and other risks described in the Company’s most recent Annual Report on Form 10-K, including, without limitation, those
described under “Item 1A. Risk Factors,” subsequent Quarterly Reports on Form 10-Q and other documents filed or furnished
from time to time by the Company with the SEC (which are available on our website at www.greatsouthernbank.com and the SEC’s website
at www.sec.gov), could affect the Company's financial performance and cause the Company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake-and specifically declines any obligation- to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect events or circumstances after the date