GREAT SOUTHERN BANCORP, INC.

March 31,

December 31,

(In Thousands)

Mortgage-backed securities – GNMA, FNMA, FHLMC

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.S. Employer Identification No.)

1451 E. Battlefield, Springfield, Missouri		65804
(Address of principal executive offices)		(Zip Code)

(417) 887-4400
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock,
par value $0.01 per share	GSBC	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of each of the registrant’s classes of common stock: 11,467,920 shares of common stock, par value $.01 per share, outstanding at May 5, 2025.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Number of Shares)


	MARCH 31,		DECEMBER 31,
	2025		2024

	(Unaudited)
ASSETS
Cash	$	106,336	$	109,366
Interest-bearing deposits in other financial institutions		110,845		86,390
Cash and cash equivalents		217,181		195,756

Available-for-sale securities		535,914		533,373
Held-to-maturity securities		185,853		187,433
Mortgage loans held for sale		6,857		6,937
Loans receivable, net of allowance for credit losses of $64,704 – March 2025; $64,760 – December 2024		4,690,636		4,690,393
Interest receivable		21,504		20,430
Prepaid expenses and other assets		132,930		136,594
Other real estate owned and repossessions, net		6,036		5,993
Premises and equipment, net		132,165		132,466
Goodwill and other intangible assets		9,985		10,094
Federal Home Loan Bank stock and other interest-earning assets		25,813		28,392
Current and deferred income taxes		28,968		33,767
Total Assets	$	5,993,842	$	5,981,628

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	4,758,046	$	4,605,549
Securities sold under reverse repurchase agreements with customers		75,322		64,444
Short-term borrowings and other interest-bearing liabilities		359,907		514,247
Subordinated debentures issued to capital trust		25,774		25,774
Subordinated notes		74,950		74,876
Accrued interest payable		5,416		12,761
Advances from borrowers for taxes and insurance		7,451		5,272
Accrued expenses and other liabilities		65,528		70,634
Liability for unfunded commitments		8,155		8,503
Total Liabilities		5,380,549		5,382,060

Stockholders’ Equity:
Capital stock
Serial preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding March 2025 and December 2024 - - 0 - shares		—		—
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding March 2025 – 11,565,211 shares; December 2024 – 11,723,548 shares		116		117
Additional paid-in capital		51,076		50,336
Retained earnings		606,239		603,477
Accumulated other comprehensive loss		(44,138)		(54,362)
Total Stockholders’ Equity		613,293		599,568

Total Liabilities and Stockholders’ Equity	$	5,993,842	$	5,981,628

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Per Share Data)


	THREE MONTHS ENDED
	MARCH 31,
	2025		2024

	(Unaudited)
INTEREST INCOME
Loans	$	73,071	$	71,076
Investment securities and other		7,172		6,314
TOTAL INTEREST INCOME		80,243		77,390

INTEREST EXPENSE
Deposits		24,600		27,637
Securities sold under reverse repurchase agreements		371		333
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities		4,450		3,044
Subordinated debentures issued to capital trust		382		454
Subordinated notes		1,106		1,106
TOTAL INTEREST EXPENSE		30,909		32,574

NET INTEREST INCOME		49,334		44,816
PROVISION FOR CREDIT LOSSES ON LOANS		—		500
PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		(348)		130
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES ON LOANS AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		49,682		44,186

NON-INTEREST INCOME
Commissions		262		381
Overdraft and insufficient funds fees		1,215		1,289
Point-Of-Sale and ATM fee income and service charges		3,234		3,183
Net gains on loan sales		601		677
Late charges and fees on loans		243		167
Loss on derivative interest rate products		(24)		(13)
Other income		1,059		1,122
TOTAL NON-INTEREST INCOME		6,590		6,806

NON-INTEREST EXPENSE
Salaries and employee benefits		20,129		19,656
Net occupancy and equipment expense		8,533		7,839
Postage		931		807
Insurance		1,165		1,144
Advertising		290		350
Office supplies and printing		266		267
Telephone		706		721
Legal, audit and other professional fees		1,038		1,725
Expense (income) on other real estate and repossessions		(70)		61
Acquired intangible asset amortization		108		108
Other operating expenses		1,726		1,744
TOTAL NON-INTEREST EXPENSE		34,822		34,422

INCOME BEFORE INCOME TAXES		21,450		16,570
PROVISION FOR INCOME TAXES		4,290		3,163
NET INCOME	$	17,160	$	13,407

Basic Earnings Per Common Share	$	1.47	$	1.14
Diluted Earnings Per Common Share	$	1.47	$	1.13

Dividends Declared Per Common Share	$	0.40	$	0.40

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)


	THREE MONTHS ENDED
	MARCH 31,
	2025		2024

	(Unaudited)
Net Income	$	17,160	$	13,407

Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes (credit) of $2,490 and $(1,782), for 2025 and 2024, respectively		7,633		(5,460)

Unrealized loss on securities transferred to held-to-maturity, net of taxes (credit) of $(15) and $(12) for 2025 and 2024, respectively		(44)		(36)

Amortization of realized loss on termination of cash flow hedge, net of taxes (credit) of $(457) and $(461), for 2025 and 2024, respectively		(1,546)		(1,564)

Change in value of active cash flow hedges, net of taxes (credit) of $1,364 and $(969) for 2025 and 2024, respectively		4,181		(2,968)

Comprehensive Income	$	27,384	$	3,379

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In Thousands, Except Per Share Data)


	THREE MONTHS ENDED MARCH 31, 2025
							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Paid-in Capital		Earnings		Income (Loss)		Stock		Total

	(Unaudited)
Balance, January 1, 2025	$	117	$	50,336	$	603,477	$	(54,362)	$	—	$	599,568
Net income		—		—		17,160		—		—		17,160
Stock issued under Stock Option Plan		—		740		—		—		441		1,181
Common cash dividends declared, $0.40 per share		—		—		(4,626)		—		—		(4,626)
Change in fair value of cash flow hedges		—		—		—		2,635		—		2,635
Change in unrealized loss on held-to-maturity securities		—		—		—		(44)		—		(44)
Change in unrealized gain on available-for-sale securities		—		—		—		7,633		—		7,633
Repurchase of the Company’s common stock		—		—		—		—		(10,214)		(10,214)
Reclassification of treasury stock per Maryland law		(1)		—		(9,772)		—		9,773		—
Balance, March 31, 2025	$	116	$	51,076	$	606,239	$	(44,138)	$	—	$	613,293


	THREE MONTHS ENDED MARCH 31, 2024
							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Paid-in Capital		Earnings		Income (Loss)		Stock		Total

	(Unaudited)
Balance, January 1, 2024	$	118	$	44,320	$	569,872	$	(42,481)	$	—	$	571,829
Net income		—		—		13,407		—		—		13,407
Stock issued under Stock Option Plan		—		487		—		—		205		692
Common cash dividends declared, $0.40 per share		—		—		(4,680)		—		—		(4,680)
Retained Earnings effect of ASU 2023-02 adoption		—		—		(223)		—		—		(223)
Change in fair value of cash flow hedges		—		—		—		(4,532)		—		(4,532)
Change in unrealized loss on held-to-maturity securities		—		—		—		(36)		—		(36)
Change in unrealized loss on available-for-sale securities		—		—		—		(5,460)		—		(5,460)
Repurchase of the Company’s common stock		—		—		—		—		(5,835)		(5,835)
Reclassification of treasury stock per Maryland law		(1)		—		(5,629)		—		5,630		—
Balance, March 31, 2024	$	117	$	44,807	$	572,747	$	(52,509)	$	—	$	565,162

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)


	THREE MONTHS ENDED
	MARCH 31,
	2025		2024

	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	17,160	$	13,407
Proceeds from sales of loans held for sale		28,761		37,509
Originations of loans held for sale		(27,636)		(41,578)
Items not requiring (providing) cash:
Depreciation		1,969		2,111
Amortization		186		426
Compensation expense for stock option grants		456		433
Provision for credit losses on loans		—		500
Provision (credit) for unfunded commitments		(348)		130
Net gain on loan sales		(601)		(677)
Net loss on sale of premises and equipment		2		15
Net (gain) loss on sale/write-down of other real estate owned and repossessions		5		4
Accretion of deferred income, premiums, discounts and other		(3,018)		(3,278)
Loss on derivative interest rate products		24		13
Deferred income taxes		(161)		(840)
Changes in:
Interest receivable		(1,074)		(433)
Prepaid expenses and other assets		2,594		(18,468)
Accrued expenses and other liabilities		(4,896)		(17,605)
Income taxes refundable/payable		1,577		1,394
Net cash provided by (used in) operating activities		15,000		(26,937)

CASH FLOWS FROM INVESTING ACTIVITIES
Net change in loans		(399)		9,957
Purchase of loans		—		(6,251)
Purchase of premises and equipment		(1,932)		(809)
Proceeds from sale of premises and equipment		—		4
Proceeds from sale of other real estate owned and repossessions		36		25
Proceeds from maturities and calls of available-for-sale securities		1,509		—
Principal reductions on mortgage-backed securities		8,238		7,296
Purchase of available-for-sale securities		—		—
Investment in tax credit partnerships		(639)		(6,100)
Redemption of Federal Home Loan Bank stock and change in other interest-earning assets		2,579		9,426
Net cash provided by investing activities		9,392		13,548

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in certificates of deposit		109,231		(8,714)
Net increase in checking and savings deposits		43,266		60,430
Net increase (decrease) in short-term borrowings		36,538		(249,328)
Proceeds from borrowing under Federal Reserve Bank Term Funding Program		—		180,000
Repayment of borrowing under Federal Reserve Bank Term Funding Program		(180,000)		—
Advances from borrowers for taxes and insurance		2,179		1,413
Repurchase of the Company’s common stock		(10,214)		(5,835)
Dividends paid		(4,692)		(4,722)
Stock options exercised		725		259
Net cash used in financing activities		(2,967)		(26,497)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		21,425		(39,886)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		195,756		211,333
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	217,181	$	171,447

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the “Company” or “Great Southern”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations, changes in stockholders’ equity and cash flows of the Company as of the dates and for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2024, has been derived from the audited consolidated statement of financial condition of the Company as of that date.

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”).

Reclassifications

Prior period consolidated financial statements are reclassified whenever necessary to conform to the current period presentation.

NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS

The Company operates as a one-bank holding company. The Company’s business primarily consists of the operations of Great Southern Bank (the “Bank”), which provides a full range of financial services to customers primarily located in Missouri, Iowa, Kansas, Minnesota, Nebraska and Arkansas. The Bank also originates commercial loans from lending offices in Atlanta; Charlotte, North Carolina; Chicago; Dallas; Denver; Omaha, Nebraska; and Phoenix. The Company and the Bank are subject to regulation by certain federal and state agencies and undergo periodic examinations by those regulatory agencies.

The Company’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans by attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the Company’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements.

NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS

In March 2023, the FASB issued ASU 2023-02, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. ASU 2023-02 is intended to improve the accounting and disclosures for investments in tax credit structures. ASU 2023-02 allows entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. Previously, this method was only available for qualifying tax equity investments in low-income housing tax credit structures. Currently, the Company does not have a material amount of tax credit structures, other than low-income housing tax credit structures. The adoption of ASU 2023-02 did not have a material impact on the Company’s consolidated financial statements and resulted in a reduction of retained earnings of $223,000 upon adoption on January 1, 2024.

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 implements a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker, expands certain annual disclosures to interim periods, clarifies that single reportable segment entities must apply Topic 280 in its entirety and permits more than one measure of segment profit or loss to be reported under certain conditions. ASU 2023-07 became effective for the Company for our annual financial statements in 2024 and is effective for interim periods within fiscal years beginning in 2025. See Note 17 – Operating Segments for application of this ASU.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 is focused on additional income tax disclosures and requires public business entities, on an annual basis, to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income by the applicable statutory income tax rate). ASU 2023-09 became effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2024. The adoption of ASU 2023-09 in the three months ended March 31, 2025 did not have a material impact on the Company’s consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business entities. ASU 2024-03 requires new financial statement disclosures in tabular format, disaggregating information about prescribed categories underlying any relevant income statement expense caption. The prescribed categories include, among other things, employee compensation, depreciation, and intangible asset amortization. Additionally, entities must disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for us, on a prospective basis, for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, although early adoption and retrospective application is permitted. ASU 2024-03 is currently not expected to have a material impact on the Company’s consolidated financial statements, but will impact disclosures.

NOTE 4: EARNINGS PER SHARE


	Three Months Ended March 31,
	2025		2024

	(In Thousands, Except Per Share Data)
Basic:
Average common shares outstanding		11,640		11,767
Net income	$	17,160	$	13,407
Per common share amount	$	1.47	$	1.14

Diluted:
Average common shares outstanding		11,640		11,767
Net effect of dilutive stock options – based on the treasury stock method using average market price		52		55
Diluted common shares		11,692		11,822
Net income	$	17,160	$	13,407
Per common share amount	$	1.47	$	1.13

Options outstanding at March 31, 2025 and 2024, to purchase 854,813 and 871,587 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three month periods because the exercise prices of such options were greater than the average market price of the common stock for the three months ended March 31, 2025 and 2024, respectively.

NOTE 5: INVESTMENT SECURITIES

Held-to-maturity securities (“HTM”), which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income over the security’s estimated life. Prepayments are anticipated for certain mortgage-backed securities. Premiums on callable securities are amortized to their earliest call date.

Available-for-sale securities (“AFS”), which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in non-interest income. Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity. Premiums and discounts are amortized and accreted, respectively, to interest income over the estimated life of the security. Prepayments are anticipated for certain mortgage-backed and Small Business Administration (SBA) securities. Premiums on callable securities are amortized to their earliest call date.

The amortized cost and fair values of securities were as follows:


	March 31, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities	$	341,913	$	188	$	33,599	$	308,502
Agency collateralized mortgage obligations		123,280		538		7,707		116,111
States and political subdivisions		56,978		61		4,291		52,748
Small Business Administration securities		64,811		—		6,258		58,553
	$	586,982	$	787	$	51,855	$	535,914


	March 31, 2025
					Amortized		Gross		Gross
	Amortized		Fair Value		Carrying		Unrealized		Unrealized		Fair
	Cost		Adjustment		Value		Gains		Losses		Value

	(In Thousands)
HELD-TO-MATURITY SECURITIES:
Agency mortgage-backed securities	$	70,742	$	1,726	$	72,468	$	—	$	7,149	$	65,319
Agency collateralized mortgage obligations		109,307		(2,064)		107,243		—		12,778		94,465
States and political subdivisions		6,124		18		6,142		—		712		5,430
	$	186,173	$	(320)	$	185,853	$	—	$	20,639	$	165,214


	December 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities	$	346,712	$	69	$	40,874	$	305,907
Agency collateralized mortgage obligations		123,395		—		9,771		113,624
States and political subdivisions securities		58,608		69		2,729		55,948
Small Business Administration securities		65,849		—		7,955		57,894
	$	594,564	$	138	$	61,329	$	533,373


	December 31, 2024
					Amortized		Gross		Gross
	Amortized		Fair Value		Carrying		Unrealized		Unrealized		Fair
	Cost		Adjustment		Value		Gains		Losses		Value

	(In Thousands)
HELD-TO-MATURITY SECURITIES:
Agency mortgage-backed securities	$	71,065	$	1,864	$	72,929	$	—	$	8,523	$	64,406
Agency collateralized mortgage obligations		110,493		(2,140)		108,353		—		15,495		92,858
States and political subdivisions		6,137		14		6,151		—		650		5,501
	$	187,695	$	(262)	$	187,433	$	—	$	24,668	$	162,765

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Carrying Value		Value

	(In Thousands)
One year or less	$	—	$	—	$	—	$	—
After one through two years		245		245		—		—
After two through three years		994		998		—		—
After three through four years		—		—		—		—
After four through five years		—		—		—		—
After five through fifteen years		13,857		13,198		5,633		5,015
After fifteen years		41,882		38,307		509		415
Securities not due on a single maturity date		530,004		483,166		179,711		159,784
	$	586,982	$	535,914	$	185,853	$	165,214

Certain available-for-sale investments in debt securities are reported in the financial statements at an amount less than their amortized cost. Total fair value of these investments at March 31, 2025 and December 31, 2024, was approximately $458.2 million and $523.9 million, respectively, which was approximately 85.5% and 98.2% of the Company’s total available-for-sale investment portfolio at those dates. A high percentage of the unrealized losses were related to the Company’s mortgage-backed securities, collateralized mortgage obligations and Small Business Administration (SBA) securities, which are issued and guaranteed by U.S. government-sponsored entities and agencies. The Company’s state and political subdivisions securities are investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities. Held-to-maturity investments in debt securities are reported in the financial statements at their amortized carrying value at March 31, 2025 and December 31, 2024, which was $185.9 million and $187.4 million, respectively. Total fair value of these investments at March 31, 2025 and December 31, 2024 was approximately $165.2 million and $162.8 million, respectively, which is 100.0% of the Company’s held-to-maturity investment portfolio.

Held-to-maturity investment securities are evaluated for potential losses under ASU 2016-13. The Company continually assesses its liquidity sources, both on-balance sheet and off-balance sheet, and believes that at March 31, 2025, it had ample liquidity sources to fund its ongoing operations without selling investment securities in its portfolio.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings of issuers, management believes the declines in fair value for the Company’s available-for-sale debt securities are not credit related.

The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2025 and December 31, 2024:


	March 31, 2025
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Losses		Value		Losses		Value		Losses

	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities	$	22,043	$	(224)	$	255,387	$	(33,375)	$	277,430	$	(33,599)
Agency collateralized mortgage obligations		9,023		(237)		63,892		(7,470)		72,915		(7,707)
States and political subdivisions securities		13,928		(927)		35,337		(3,364)		49,265		(4,291)
Small Business Administration securities		7,471		(27)		51,081		(6,231)		58,552		(6,258)
	$	52,465	$	(1,415)	$	405,697	$	(50,440)	$	458,162	$	(51,855)

HELD-TO-MATURITY SECURITIES:
Agency mortgage-backed securities	$	—	$	—	$	65,319	$	(7,149)	$	65,319	$	(7,149)
Agency collateralized mortgage obligations		—		—		94,465		(12,778)		94,465		(12,778)
States and political subdivisions securities		—		—		5,430		(712)		5,430		(712)
	$	—	$	—	$	165,214	$	(20,639)	$	165,214	$	(20,639)


	December 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Losses		Value		Losses		Value		Losses

	(In Thousands)
AVAILABLE-FOR-SALE SECURITIES:
Agency mortgage-backed securities	$	45,977	$	(1,008)	$	253,971	$	(39,866)	$	299,948	$	(40,874)
Agency collateralized mortgage obligations		50,720		(890)		62,903		(8,881)		113,623		(9,771)
States and political subdivisions securities		7,229		(270)		50,665		(7,685)		57,894		(7,955)
Small Business Administration securities		14,523		(343)		37,945		(2,386)		52,468		(2,729)
	$	118,449	$	(2,511)	$	405,484	$	(58,818)	$	523,933	$	(61,329)

HELD-TO-MATURITY SECURITIES:
Agency mortgage-backed securities	$	—	$	—	$	64,406	$	(8,523)	$	64,406	$	(8,523)
Agency collateralized mortgage obligations		—		—		92,858		(15,495)		92,858		(15,495)
States and political subdivisions securities		—		—		5,501		(650)		5,501		(650)
	$	—	$	—	$	162,765	$	(24,668)	$	162,765	$	(24,668)

There were no sales of available-for-sale securities during the three months ended March 31, 2025 or March 31, 2024, respectively.

Allowance for Credit Losses. On January 1, 2021, the Company began evaluating all securities quarterly to determine if any securities in a loss position require a provision for credit losses in accordance with ASC 326, Measurement of Credit Losses on Financial Instruments. All of the mortgage-backed, collateralized mortgage, and SBA securities held by the Company as of March 31, 2025 were issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Likewise, the Company has not historically experienced losses on these types of securities. Accordingly, no allowance for credit losses has been recorded for these securities.

Regarding securities issued by state and political subdivisions, management considers the following when evaluating these securities: (i) current issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) updated financial information of the issuer, (v) internal forecasts and (vi) whether such securities provide insurance or other credit enhancement or are pre-refunded by the issuers. These securities are highly rated by major rating agencies and have a long history of no credit losses. Likewise, the Company has not experienced historical losses on these types of securities. Accordingly, no allowance for credit losses has been recorded for these securities.

NOTE 6: LOANS AND ALLOWANCE FOR CREDIT LOSSES

The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, effective January 1, 2021. The guidance replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. It also applies to off-balance sheet credit exposures not accounted for as insurance, including loan commitments, standby letters of credits, financial guarantees, and other similar instruments.

Classes of loans at March 31, 2025 and December 31, 2024 were as follows:


	March 31,			December 31,
	2025			2024

	(In Thousands)
One- to four-family residential construction	$	28,789		$	30,533
Subdivision construction		25,289			19,861
Land development		39,134			42,504
Commercial construction		381,618			352,793
Owner occupied one- to four-family residential		696,285			710,446
Non-owner occupied one- to four-family residential		126,808			122,901
Commercial real estate		1,489,309			1,543,742
Other residential (multi-family)		1,592,470			1,549,249
Commercial business		217,100			220,291
Consumer auto		25,124			25,787
Consumer other		25,119			27,905
Home equity lines of credit		114,333			115,836
		4,761,378			4,761,848
Allowance for credit losses		(64,704)			(64,760)
Deferred loan fees and gains, net		(6,038)			(6,695)
	$	4,690,636		$	4,690,393

Weighted average interest rate		6.13	%		6.08	%

Classes of loans by aging were as follows as of the dates indicated.


	March 31, 2025
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		Due		Current		Receivable		Still Accruing

	(In Thousands)
One- to four-family residential construction	$	6	$	—	$	—	$	6	$	28,783	$	28,789	$	—
Subdivision construction		—		—		—		—		25,289		25,289		—
Land development		—		—		368		368		38,766		39,134		—
Commercial construction		—		—		—		—		381,618		381,618		—
Owner occupied one- to four-family residential		2,038		103		1,418		3,559		692,726		696,285		—
Non-owner occupied one- to four-family residential		—		—		1,658		1,658		125,150		126,808		—
Commercial real estate		70		—		—		70		1,489,239		1,489,309		—
Other residential (multi-family)		—		—		—		—		1,592,470		1,592,470		—
Commercial business		55		35		—		90		217,010		217,100		—
Consumer auto		10		11		—		21		25,103		25,124		—
Consumer other		78		6		14		98		25,021		25,119		—
Home equity lines of credit		108		98		24		230		114,103		114,333		—
Total	$	2,365	$	253	$	3,482	$	6,100	$	4,755,278	$	4,761,378	$	—


	December 31, 2024
													Total Loans
					Over 90						Total		> 90 Days Past
	30-59 Days		60-89 Days		Days		Total Past				Loans		Due and
	Past Due		Past Due		Past Due		Due		Current		Receivable		Still Accruing

	(In Thousands)
One- to four-family residential construction	$	12	$	—	$	—	$	12	$	30,521	$	30,533	$	—
Subdivision construction		—		—		—		—		19,861		19,861		—
Land development		—		—		464		464		42,040		42,504		—
Commercial construction		—		—		—		—		352,793		352,793		—
Owner occupied one- to four-family residential		1,704		816		950		3,470		706,976		710,446		—
Non-owner occupied one- to four-family residential		642		—		1,681		2,323		120,578		122,901		—
Commercial real estate		—		—		77		77		1,543,665		1,543,742		—
Other residential (multi-family)		—		—		—		—		1,549,249		1,549,249		—
Commercial business		—		—		384		384		219,907		220,291		—
Consumer auto		39		1		—		40		25,747		25,787		—
Consumer other		145		4		17		166		27,739		27,905		—
Home equity lines of credit		63		56		—		119		115,717		115,836		—
Total	$	2,605	$	877	$	3,573	$	7,055	$	4,754,793	$	4,761,848	$	—

Loans are placed on nonaccrual status at 90 days past due and interest is considered a loss unless the loan is well secured and in the process of collection. Payments received on nonaccrual loans are applied to principal until the loans are returned to accrual status. Loans are returned to accrual status when all payments contractually due are brought current, payment performance is sustained for a period of time, generally six months, and future payments are reasonably assured. With the exception of consumer loans, charge-offs on loans are recorded when available information indicates a loan is not fully collectible and the loss is reasonably quantifiable. Consumer loans are charged-off at specified delinquency dates consistent with regulatory guidelines.

Nonaccruing loans are summarized as follows:


	March 31,		December 31,
	2025		2024

	(In Thousands)
One- to four-family residential construction	$	—	$	—
Subdivision construction		—		—
Land development		368		464
Commercial construction		—		—
Owner occupied one- to four-family residential		1,418		950
Non-owner occupied one- to four-family residential		1,658		1,681
Commercial real estate		—		77
Other residential (multi-family)		—		—
Commercial business		—		384
Consumer auto		—		—
Consumer other		14		17
Home equity lines of credit		24		—
Total nonaccruing loans	$	3,482	$	3,573

No interest income was recorded on nonaccrual loans for the three months ended March 31, 2025 and 2024, respectively.

Nonaccrual loans for which there is no related allowance for credit losses as of March 31, 2025 and December 31, 2024, had an amortized cost of $3.3 million and $2.2 million, respectively. These loans are individually assessed and do not require an allowance due to being adequately collateralized under the collateral-dependent valuation method. A collateral-dependent loan is a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the Company’s assessment as of the reporting date. Collateral-dependent loans are identified primarily by a classified risk rating with a loan balance equal to or greater than $100,000, including, but not limited to, any loan in process of foreclosure or repossession.

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2025 and 2024. During the three months ended March 31, 2025, the Company did not record a provision expense on its portfolio of outstanding loans. During the three months ended March 31, 2024, the Company recorded provision expense of $500,000 on its portfolio of outstanding loans.


	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total

	(In Thousands)
Allowance for credit losses
Balance, January 1, 2024	$	9,820	$	13,370	$	28,171	$	2,844	$	6,935	$	3,530	$	64,670
Provision (credit) charged to expense		(107)		516		1,298		(96)		(1,596)		485		500
Losses charged off		(56)		—		—		—		(31)		(340)		(427)
Recoveries		3		—		—		—		88		253		344
Balance, March 31, 2024	$	9,660	$	13,886	$	29,469	$	2,748	$	5,396	$	3,928	$	65,087

Allowance for credit losses
Balance, January 1, 2025	$	9,224	$	15,594	$	28,802	$	2,735	$	4,656	$	3,749	$	64,760
Provision (credit) charged to expense		—		—		—		—		—		—		—
Losses charged off		(36)		—		(8)		—		(147)		(234)		(425)
Recoveries		4		—		—		194		13		158		369
Balance, March 31, 2025	$	9,192	$	15,594	$	28,794	$	2,929	$	4,522	$	3,673	$	64,704

The following table presents the activity in the allowance for unfunded commitments by portfolio segment for the three months ended March 31, 2025 and 2024. The provision for losses on unfunded commitments for the three months ended March 31, 2025 was a credit (negative expense) of $348,000, compared to a provision expense of $130,000 for the three months ended March 31, 2024.


	One- to Four-
	Family
	Residential and		Other		Commercial		Commercial		Commercial
	Construction		Residential		Real Estate		Construction		Business		Consumer		Total

	(In Thousands)
Allowance for unfunded commitments
Balance, January 1, 2024	$	706	$	4,006	$	619	$	741	$	959	$	456	$	7,487
Provision (credit) charged to expense		(27)		(28)		(5)		(232)		394		28		130
Balance, March 31, 2024	$	679	$	3,978	$	614	$	509	$	1,353	$	484	$	7,617

Allowance for unfunded commitments
Balance, January 1, 2025	$	619	$	4,833	$	653	$	496	$	1,468	$	434	$	8,503
Provision (credit) charged to expense		39		(239)		(33)		(78)		(40)		3		(348)
Balance, March 31, 2025	$	658	$	4,594	$	620	$	418	$	1,428	$	437	$	8,155

The portfolio segments used in the preceding tables correspond to the loan classes used in all other tables in Note 6 as follows:

●

The one- to four-family residential and construction segment includes the one- to four-family residential construction, subdivision construction, owner occupied one- to four-family residential and non-owner occupied one- to four-family residential classes.

●

The other residential (multi-family) segment corresponds to the other residential (multi-family) class.

●

The commercial real estate segment includes the commercial real estate and industrial revenue bonds classes.

●

The commercial construction segment includes the land development and commercial construction classes.

●

The commercial business segment corresponds to the commercial business class.

●

The consumer segment includes the consumer auto, consumer other and home equity lines of credit classes.

The following table presents the amortized cost basis of collateral-dependent loans by class of loans:


	March 31, 2025				December 31, 2024
	Principal		Specific		Principal		Specific
	Balance		Allowance		Balance		Allowance

	(In Thousands)
One- to four-family residential construction	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—
Land development		368		—		464		12
Commercial construction		—		—		—		—
Owner occupied one- to four- family residential		2,038		—		1,677		—
Non-owner occupied one- to four-family residential		2,623		—		1,681		261
Commercial real estate		4,241		—		4,253		—
Other residential (multi-family)		—		—		—		—
Commercial business		—		—		384		245
Consumer auto		—		—		—		—
Consumer other		—		—		—		—
Home equity lines of credit		748		—		1,390		—

Total	$	10,018	$	—	$	9,849	$	518

Modified Loans. In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the troubled debt restructuring (TDR) recognition and measurement guidance and, instead, requires that an entity evaluate whether the loan modification represents a new loan or a continuation of an existing loan. It also enhances disclosure requirements and introduces new disclosure requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Adoption of this ASU on January 1, 2023 did not have a material impact on the Company’s results of operations, financial position or liquidity, but resulted in additional disclosure requirements related to gross charge offs by vintage year and the removal of TDR disclosures, replaced by additional disclosures on the types of modifications of loans to borrowers experiencing financial difficulties. The Company has adopted this update prospectively. Loan modifications are reported if concessions have been granted to borrowers that are experiencing financial difficulty.

The estimate of lifetime expected losses utilized in the allowance for credit losses model is developed using average historical loss on loans with similar risk characteristics, which includes losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a charge to the allowance for credit losses is generally not recorded upon modification. For modifications to loans made to borrowers experiencing financial difficulty that are adversely classified, the Company determines the allowance for credit losses on an individual basis, using the same process that it utilizes for other adversely classified loans. If collection efforts have begun and the modified loan is subsequently deemed collateral-dependent, the loan is placed on nonaccrual status and the allowance for credit losses is determined based on an individual evaluation. If necessary, the loan is charged down to fair market value less estimated sales costs.

The following tables show, as of the dates indicated, the composition of modifications made to loans to borrowers experiencing financial difficulty, by the loan class and type of concession granted. During the three months ended March 31, 2025, principal forgiveness of $7,000 was completed on consumer loans. During the three ended March 31, 2024, principal forgiveness of $14,000 was completed on consumer loans.

Amortized Cost Basis at March 31, 2025

Interest Rate

Term

Total

Reduction

Extension

Combination

Modifications

(In Thousands)

Construction and land development

—

One- to four-family residential

—

Other residential (multi-family)

—

Commercial real estate

—

Commercial business

—

Consumer

—


	Amortized Cost Basis at December 31, 2024
	Interest Rate		Term				Total
	Reduction		Extension		Combination		Modifications

		(In Thousands)
Construction and land development	$	—	$	—	$	—	$	—
One- to four-family residential		—		—		—		—
Other residential (multi-family)		—		2,709		—		2,709
Commercial real estate		—		70		—		70
Commercial business		—		—		—		—
Consumer		—		31		—		31
	$	—	$	2,810	$	—	$	2,810

The Company closely monitors the performance of loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of its modification efforts. The following tables depict the performance of loans (under modified terms) at March 31, 2025 and at December 31, 2024, respectively:

March 31, 2025

30-89 Days

Over 90 Days

Current

Past Due

Total

(In Thousands)

Construction and land development

—

One- to four-family residential

—

Other residential (multi-family)

—

Commercial real estate

—

Commercial business

—

Consumer

—


	December 31, 2024
			30-89 Days		Over 90 Days
	Current		Past Due		Past Due		Total

	(In Thousands)
Construction and land development	$	—	$	—	$	—	$	—
One- to four-family residential		—		—		—		—
Other residential (multi-family)		2,709		—		—		2,709
Commercial real estate		70		—		—		70
Commercial business		—		—		—		—
Consumer		31		—		—		31
	$	2,810	$	—	$	—	$	2,810

Loan Risk Ratings. The Company utilizes an internal risk rating system comprised of a series of grades to categorize loans according to perceived risk associated with the expectation of debt repayment. The analysis of the borrower’s ability to repay considers specific information, including, but not limited to, current financial information, historical payment experience, industry information and collateral levels and types. A risk rating is assigned at loan origination and then monitored throughout the contractual term for possible risk rating changes.

Satisfactory loans range from Excellent to Moderate Risk, but generally are loans supported by strong recent financial statements. The character and capacity of the borrower are solid, including reasonable project performance, good industry experience, liquidity and/or net worth. The probability of financial deterioration seems unlikely. Repayment is expected from approved sources over a reasonable period of time.

Watch loans are identified when the borrower has capacity to perform according to terms; however, elements of uncertainty exist. Margins of debt service coverage may be narrow, historical patterns of financial performance may be erratic, collateral margins may be diminished or the borrower may be a new and/or thinly capitalized company. Some management weakness on the part of the borrower may also exist, the borrower may have somewhat limited access to other financial institutions, and that access may diminish in difficult economic times.

Special Mention loans have weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects or the Bank’s credit position at some future date. This is a transitional grade closely monitored for improvement or deterioration.

The Substandard rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “nonaccrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.

Doubtful loans have all the weaknesses inherent to those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, highly questionable and improbable.

The Loss category is used when loans are considered uncollectable and no longer included as an asset.

All loans are analyzed for risk rating updates regularly. For larger loans, rating assessments may be more frequent if relevant information is obtained earlier through debt covenant monitoring or overall relationship management. Smaller loans are monitored as identified by the loan officer based on the risk profile of the individual borrower or if the loan becomes past due related to credit issues. Loans rated Watch, Special Mention, Substandard or Doubtful are subject to formal quarterly review and continuous monitoring processes. In addition to the regular monitoring performed by the lending personnel and credit committees, loans are subject to review by the credit review department, which verifies the appropriateness of the risk ratings for the loans chosen as part of its risk-based review plan.

The following tables present a summary of loans by category and risk rating separated by origination and loan class as of March 31, 2025 and December 31, 2024.


	Term Loans by Origination Year
													Revolving
March 31, 2025	2025 YTD		2024		2023		2022		2021		Prior		Loans		Total

	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	2,188	$	10,472	$	7,763	$	822	$	—	$	—	$	7,544	$	28,789
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		2,188		10,472		7,763		822		—		—		7,544		28,789
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Subdivision construction
Satisfactory (1-4)		147		4,083		413		393		17,972		501		1,780		25,289
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		147		4,083		413		393		17,972		501		1,780		25,289
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Construction and land development
Satisfactory (1-4)		4,228		13,733		4,282		2,243		4,783		7,172		2,325		38,766
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		368		—		368
Total		4,228		13,733		4,282		2,243		4,783		7,540		2,325		39,134
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Other construction
Satisfactory (1-4)		23,397		110,485		40,420		177,171		30,145		—		—		381,618
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		23,397		110,485		40,420		177,171		30,145		—		—		381,618
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

One- to four-family residential
Satisfactory (1-4)		10,615		42,265		60,322		295,794		170,335		237,433		391		817,155
Watch (5)		—		—		—		—		—		734		—		734
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		605		638		319		1,166		2,476		5,204
Total		10,615		42,265		60,927		296,432		170,654		239,333		2,867		823,093
Current Period Gross Charge Offs		—		—		—		21		15		9		—		45

Other residential (multi-family)
Satisfactory (1-4)		30,500		65,997		101,592		578,456		507,131		302,564		3,533		1,589,773
Watch (5)		—		—		—		—		—		2,697		—		2,697
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		30,500		65,997		101,592		578,456		507,131		305,261		3,533		1,592,470
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Commercial real estate
Satisfactory (1-4)		4,582		98,742		80,799		309,392		195,071		744,926		32,165		1,465,677
Watch (5)		—		—		—		11,048		—		7,841		—		18,889
Special Mention (6)		—		—		—		—		—		430		—		430
Classified (7-9)		—		—		—		—		—		4,313		—		4,313
Total		4,582		98,742		80,799		320,440		195,071		757,510		32,165		1,489,309
Current Period Gross Charge Offs		—		—		—		—		8		—		—		8

Commercial business
Satisfactory (1-4)		14,770		29,443		22,888		19,152		19,338		45,073		61,378		212,042
Watch (5)		—		—		—		959		3,049		—		35		4,043
Special Mention (6)		—		—		—		980		—		35		—		1,015
Classified (7-9)		—		—		—		—		—		—		—		—
Total		14,770		29,443		22,888		21,091		22,387		45,108		61,413		217,100
Current Period Gross Charge Offs		—		—		—		—		—		135		12		147

Consumer
Satisfactory (1-4)		4,398		15,155		7,812		5,100		2,016		9,657		119,115		163,253
Watch (5)		—		—		—		2		—		195		77		274
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		8		18		8		16		50		949		1,049
Total		4,398		15,163		7,830		5,110		2,032		9,902		120,141		164,576
Current Period Gross Charge Offs		—		3		6		9		—		206		1		225

Combined
Satisfactory (1-4)		94,825		390,375		326,291		1,388,523		946,791		1,347,326		228,231		4,722,362
Watch (5)		—		—		—		12,009		3,049		11,467		112		26,637
Special Mention (6)		—		—		—		980		—		465		—		1,445
Classified (7-9)		—		8		623		646		335		5,897		3,425		10,934
Total	$	94,825	$	390,383	$	326,914	$	1,402,158	$	950,175	$	1,365,155	$	231,768	$	4,761,378
Current Period Gross Charge Offs	$	—	$	3	$	6	$	30	$	23	$	350	$	13	$	425


	Term Loans by Origination Year
													Revolving
December 31, 2024	2024		2023		2022		2021		2020		Prior		Loans		Total

	(In Thousands)
One- to four-family residential construction
Satisfactory (1-4)	$	11,750	$	8,961	$	822	$	—	$	—	$	—	$	9,000	$	30,533
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		11,750		8,961		822		—		—		—		9,000		30,533
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Subdivision construction
Satisfactory (1-4)		711		182		136		17,609		29		205		989		19,861
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		711		182		136		17,609		29		205		989		19,861
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Construction and land development
Satisfactory (1-4)		18,282		6,112		2,722		5,210		3,105		4,236		2,373		42,040
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		464		—		—		464
Total		18,282		6,112		2,722		5,210		3,569		4,236		2,373		42,504
Current Period Gross Charge Offs		—		—		—		—		—		101		—		101

Other construction
Satisfactory (1-4)		78,337		52,046		189,389		33,021		—		—		—		352,793
Watch (5)		—		—		—		—		—		—		—		—
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		78,337		52,046		189,389		33,021		—		—		—		352,793
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

One- to four-family residential
Satisfactory (1-4)		42,931		59,973		304,054		176,759		91,238		153,392		426		828,773
Watch (5)		—		—		—		—		145		597		—		742
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		628		387		129		—		1,178		1,510		3,832
Total		42,931		60,601		304,441		176,888		91,383		155,167		1,936		833,347
Current Period Gross Charge Offs		—		49		—		—		—		16		—		65

Other residential (multi-family)
Satisfactory (1-4)		66,028		92,268		552,183		506,902		179,094		146,712		3,352		1,546,539
Watch (5)		—		—		—		—		—		2,710		—		2,710
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		—		—		—		—		—		—		—		—
Total		66,028		92,268		552,183		506,902		179,094		149,422		3,352		1,549,249
Current Period Gross Charge Offs		—		—		—		—		—		—		—		—

Commercial real estate
Satisfactory (1-4)		97,512		81,282		320,442		217,049		96,246		682,549		35,937		1,531,017
Watch (5)		—		—		—		—		—		7,879		—		7,879
Special Mention (6)		—		—		—		—		—		438		—		438
Classified (7-9)		—		—		—		77		—		4,331		—		4,408
Total		97,512		81,282		320,442		217,126		96,246		695,197		35,937		1,543,742
Current Period Gross Charge Offs		—		—		54		10		—		1,236		—		1,300

Commercial business
Satisfactory (1-4)		21,179		29,846		28,678		20,301		7,646		44,908		62,015		214,573
Watch (5)		—		—		1,005		3,296		—		—		—		4,301
Special Mention (6)		—		—		995		—		38		—		—		1,033
Classified (7-9)		—		245		—		—		—		139		—		384
Total		21,179		30,091		30,678		23,597		7,684		45,047		62,015		220,291
Current Period Gross Charge Offs		—		—		—		4		27		164		48		243

Consumer
Satisfactory (1-4)		17,391		9,234		6,147		2,618		1,151		10,478		120,653		167,672
Watch (5)		—		—		5		—		4		194		107		310
Special Mention (6)		—		—		—		—		—		—		—		—
Classified (7-9)		1		9		11		20		—		53		1,452		1,546
Total		17,392		9,243		6,163		2,638		1,155		10,725		122,212		169,528
Current Period Gross Charge Offs		13		105		122		32		4		1,161		54		1,491

Combined
Satisfactory (1-4)		354,121		339,904		1,404,573		979,469		378,509		1,042,480		234,745		4,733,801
Watch (5)		—		—		1,010		3,296		149		11,380		107		15,942
Special Mention (6)		—		—		995		—		38		438		—		1,471
Classified (7-9)		1		882		398		226		464		5,701		2,962		10,634
Total	$	354,122	$	340,786	$	1,406,976	$	982,991	$	379,160	$	1,059,999	$	237,814	$	4,761,848
Current Period Gross Charge Offs	$	13	$	154	$	176	$	46	$	31	$	2,678	$	102	$	3,200

NOTE 7: INVESTMENTS IN LIMITED PARTNERSHIPS

Investments in Affordable Housing Partnerships

Periodically, the Company has invested in certain limited partnerships that were formed to develop and operate apartments and single-family houses designed as high-quality affordable housing for lower income tenants throughout Missouri and contiguous states (“Affordable Housing Partnerships”). At March 31, 2025, the Company had 22 such investments, with a net carrying value of $96.1 million. At December 31, 2024, the Company had 23 such investments, with a net carrying value of $98.8 million. Due to the Company’s inability to exercise any significant influence over any of the investments in Affordable Housing Partnerships, they all are accounted for using the proportional amortization method. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15-year compliance period to fully utilize the tax credits. If the partnerships cease to qualify during the compliance period, the credits may be denied for any period in which the projects are not in compliance and a portion of the credits previously taken may be subject to recapture with interest.

The remaining federal affordable housing tax credits to be utilized through 2034 were $102.9 million as of March 31, 2025, assuming no tax credit recapture events occur and all projects currently under construction are completed as planned. Amortization of the investments in partnerships is expected to be approximately $92.2 million, assuming all projects currently under construction are completed and funded as planned.

The Company’s usage of federal affordable housing tax credits approximated $3.2 million and $2.8 million during the three months ended March 31, 2025 and 2024, respectively. Investment amortization was $2.9 million for the three months ended March 31, 2025, compared to $2.6 million for the three months ended March 31, 2024.

Investments in Community Development Entities

From time to time, the Company has invested in certain limited partnerships that were formed to develop and operate business and real estate projects located in low-income communities. At March 31, 2025, the Company had one such investment, with a net carrying value of $174,000. At December 31, 2024, the Company had one such investment, with a net carrying value of $199,000. Due to the Company’s inability to exercise any significant influence over any of the investments in qualified community development entities, they are accounted for using the proportional amortization method. Each of the partnerships provides federal new market tax credits over a seven-year credit allowance period. In each of the first three years, credits totaling five percent of the original investment are allowed on the credit allowance dates, and for the final four years, credits totaling six percent of the original investment are allowed on the credit allowance dates. Each of the partnerships must be invested in a qualified community development entity on each of the credit allowance dates during the seven-year period to utilize the tax credits. If the community development entities cease to qualify during the seven-year period, the credits may be denied for any credit allowance date and a portion of the credits previously taken may be subject to recapture with interest. The investments in the community development entities cannot be redeemed before the end of the seven-year period.

The Company’s usage of federal new market tax credits approximated $30,000 during both the three months ended March 31, 2025 and the three months ended March 31, 2024. Investment amortization amounted to $25,000 for both the three months ended March 31, 2025 and the three months ended March 31, 2024. Upon adoption of ASU 2023-02 on January 1, 2024, the Company recorded a reduction in the investment in these new market tax credits, with a corresponding reduction in retained earnings, of $62,000.

Investments in Limited Partnerships for Federal Rehabilitation/Historic Tax Credits

From time to time, the Company has invested in certain limited partnerships that were formed to provide certain federal rehabilitation/historic tax credits. At March 31, 2025 and December 31, 2024, the Company had no such investments, with the previous investment fully amortizing during 2024. Under current tax law, such partnerships provide federal rehabilitation/historic tax credits over a five-year credit allowance period.

The Company’s usage of certain federal rehabilitation/historic tax credits approximated $-0- and $76,000 during the three months ended March 31, 2025 and 2024, respectively. Investment amortization amounted to $-0- and $64,000 for the three months ended March 31, 2025 and 2024, respectively. Upon adoption of ASU 2023-02 on January 1, 2024, the Company recorded a reduction in the investment in these rehabilitation/historic tax credits, with a corresponding reduction in retained earnings, of $161,000.

Investments in Limited Partnerships for State Tax Credits

On occasion, the Company has invested in limited partnerships that were formed to provide certain state tax credits. The Company has primarily syndicated these tax credits and the impact to the Consolidated Statements of Income has not been material.

NOTE 8: OTHER REAL ESTATE OWNED AND REPOSSESSIONS

Major classifications of other real estate owned were as follows:


	March 31,		December 31,
	2025		2024

	(In Thousands)
Foreclosed assets held for sale and repossessions
One- to four-family construction	$	—	$	—
Subdivision construction		—		—
Land development		—		—
Commercial construction		—		—
One- to four-family residential		—		—
Other residential (multi-family)		—		—
Commercial real estate		6,036		5,960
Commercial business		—		—
Consumer		—		33
Total foreclosed assets held for sale and repossessions		6,036		5,993

Other real estate owned not acquired through foreclosure		—		—

Other real estate owned and repossessions	$	6,036	$	5,993

At March 31, 2025 and December 31, 2024, there was no other real estate owned not acquired through foreclosure.

At both March 31, 2025 and December 31, 2024, residential mortgage loans totaling $12,000 were in the process of foreclosure.

Expenses (income) applicable to other real estate owned and repossessions included the following:


	Three Months Ended
	March 31,
	2025		2024

	(In Thousands)
Net loss on sales of other real estate owned and repossessions	$	5	$	4
Valuation write-downs		—		—
Operating expenses, net of rental income		(75)		57
	$	(70)	$	61

NOTE 9: PREMISES AND EQUIPMENT

Major classifications of premises and equipment, stated at cost, were as follows:


	March 31,		December 31,
	2025		2024

	(In Thousands)
Land	$	39,406	$	39,340
Buildings and improvements		107,815		107,525
Furniture, fixtures and equipment		70,742		69,916
Operating leases right of use asset		6,127		6,390
		224,090		223,171
Less: accumulated depreciation		91,925		90,705
	$	132,165	$	132,466

Leases. In 2019, the Company adopted ASU 2016-02, Leases (Topic 842). Adoption of this ASU resulted in the Company initially recognizing a right of use asset and corresponding lease liability of $9.5 million. The amount of the right of use asset and corresponding lease liability will fluctuate based on the Company’s lease terminations, new leases and lease modifications and renewals. As of March 31, 2025, the lease right of use asset value was $6.1 million and the corresponding lease liability was $6.4 million. As of December 31, 2024, the lease right of use asset value was $6.4 million and the corresponding lease liability was $6.6 million. At March 31, 2025, expected lease terms ranged from 2.3 years to 13.7 years with a weighted-average lease term of 6.7 years. The weighted-average discount rate at March 31, 2025 was 4.03%.

For the three months ended March 31, 2025 and 2024, lease expense was $419,000 and $483,000, respectively. The Company’s short-term leases related to offsite ATMs have both fixed and variable lease payment components, based on the number of transactions at the various ATMs. The variable portion of these lease payments is not material and the total lease expense related to ATMs for the three months ended March 31, 2025 and 2024 was $76,000 and $81,000, respectively.

The Company does not sublease any of its leased facilities; however, it does lease to other parties portions of facilities that it owns. In terms of being the lessor in these circumstances, all of these lease agreements are classified as operating leases. In the three months ended March 31, 2025 and 2024, income recognized from these lease agreements was $321,000 and $341,000, respectively, and was included in occupancy and equipment expense.


	March 31, 2025		December 31, 2024

	(In Thousands)
Statement of Financial Condition
Operating leases right of use asset	$	6,127	$	6,390
Operating leases liability	$	6,362	$	6,621

	For the Three Months Ended
	March 31, 2025		March 31, 2024

	(In Thousands)
Statement of Income
Operating lease costs classified as occupancy and equipment expense (includes short-term lease costs and amortization of right of use asset)	$	419	$	483

Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	416	$	514
Right of use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	275

At March 31, 2025, future expected lease payments for leases with terms exceeding one year were as follows (in thousands):


2025	$	992
2026		1,338
2027		1,289
2028		1,019
2029		663
2030		506
Thereafter		1,482

Future lease payments expected		7,289

Less: interest portion of lease payments		(927)

Lease liability	$	6,362

NOTE 10: DEPOSITS


	Weighted Average	March 31,		December 31,
	Interest Rate	2025		2024

		(In Thousands, Except Interest Rates)

Non-interest-bearing accounts	—	$	852,658	$	842,931
Interest-bearing checking and savings accounts	1.37% and 1.39%		2,248,272		2,214,732
			3,100,930		3,057,663

Certificate accounts	0.00% - 0.99%		47,949		52,720
	1.00% - 1.99%		101,182		75,938
	2.00% - 2.99%		6,582		8,244
	3.00% - 3.99%		339,681		89,967
	4.00% - 4.99%		266,301		548,903
	5.00% and above		—		—
			761,695		775,772

Brokered deposits	4.46% and 4.61%		895,421		772,114
			895,421		772,114

		$	4,758,046	$	4,605,549

The Bank utilizes brokered deposits as an additional funding source. The aggregate amount of brokered deposits was approximately $895.4 million and $772.1 million at March 31, 2025 and December 31, 2024, respectively. At both March 31, 2025 and December 31, 2024, brokered deposits included $300.0 million of purchased funds through the IntraFi Financial network. These IntraFi Financial deposits have a rate of interest that floats daily with an index of effective federal funds rate plus a spread. At March 31, 2025, there were brokered deposits totaling $99.7 million that had fixed rates of interest but were callable at the Bank’s discretion. At March 31, 2025, approximately 35% of the Company’s total deposits were uninsured, when including deposit accounts of consolidated subsidiaries of the Company and collateralized deposits of unaffiliated entities. Excluding deposit accounts of the Company’s consolidated subsidiaries, approximately 14% of the Company’s total deposits were uninsured at March 31, 2025.

NOTE 11: ADVANCES FROM FEDERAL HOME LOAN BANK

At March 31, 2025 and December 31, 2024, there were no outstanding term advances from the Federal Home Loan Bank of Des Moines. At March 31, 2025 and December 31, 2024, there were outstanding overnight borrowings from the Federal Home Loan Bank of Des Moines, which are included in Note 12 below.

The Bank has pledged FHLB stock, investment securities and first mortgage loans free of other pledges, liens and encumbrances as collateral for outstanding advances or borrowings. At March 31, 2025, investment securities with carrying values of approximately $295.7 million and loans with carrying values of approximately $2.10 billion were pledged as collateral for FHLB borrowings, which equates to an advance equivalent of $1.53 billion. At December 31, 2024 investment securities with carrying values of approximately $110.4 million and loans with carrying values of approximately $2.12 billion were pledged as collateral for outstanding advances or borrowings, which equates to an advance equivalent of $1.39 billion. The Bank had $1.17 billion remaining available on its line of credit under a borrowing arrangement with the FHLB of Des Moines at March 31, 2025.

NOTE 12: SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS AND SHORT-TERM BORROWINGS


	March 31,		December 31,
	2025		2024

	(In Thousands)

Notes payable – Community Development Equity Funds	$	907	$	1,247
Securities sold under reverse repurchase agreements		75,322		64,444
Short-term borrowings from Federal Reserve Bank		—		180,000
Overnight borrowings from the Federal Home Loan Bank		359,000		333,000
	$	435,229	$	578,691

Short-term borrowings from the Federal Reserve Bank at December 31, 2024, were part of the Federal Reserve Bank’s Bank Term Funding Program (BTFP). The BTFP borrowing matured and was repaid in January 2025 and had a fixed interest rate of 4.83%. The line was secured primarily by the Bank’s held-to-maturity investment securities, with assets pledged totaling approximately $187.7 million as of December 31, 2024. As of March 31, 2025, the Company had no outstanding borrowings from the Federal Reserve Bank.

The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements). Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of financial condition. The dollar amount of securities underlying the agreements remains in the asset accounts. Securities underlying the agreements are held by the Bank during the agreement period. All agreements are written on a term of one month or less.

The following table represents the Company’s securities sold under reverse repurchase agreements, by collateral type. These securities contractually mature daily.

NOTE 13: SUBORDINATED NOTES

On June 10, 2020, the Company completed the public offering and sale of $75.0 million of its subordinated notes. The notes are due June 15, 2030, and have a fixed interest rate of 5.50% until June 15, 2025, at which time the rate becomes floating at a rate expected to be equal to three-month term Secured Overnight Financing Rate (SOFR) plus 5.325%. The Company may call the notes at par beginning on June 15, 2025, and on any scheduled interest payment date thereafter. The notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions, legal, accounting and other professional fees, of approximately $73.5 million. Total debt issuance costs of approximately $1.5 million were deferred and are being amortized over the expected life of the notes, which is five years.

Amortization of the debt issuance costs during the three months ended March 31, 2025 and 2024, totaled $74,000 and $74,000, respectively. Amortization of the debt issuance costs is included in interest expense on subordinated notes in the consolidated statements of income, resulting in an imputed interest rate of 5.90%.

At March 31, 2025 and December 31, 2024, subordinated notes were as follows:


	March 31,		December 31,
	2025		2024

	(In Thousands)
Subordinated notes	$	75,000	$	75,000
Less: unamortized debt issuance costs		50		124
	$	74,950	$	74,876

As discussed in Note 18 - Subsequent Events, the subordinated notes will be redeemed in full on June 15, 2025.

NOTE 14: INCOME TAXES

As discussed in Note 3 – Recent Accounting Pronouncements, in January 2025, the Company adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU requires additional income tax disclosures, including specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The Company has elected to adopt this ASU on a prospective basis. All of the Company’s activities are within the United States of America; therefore, the Company does not have any foreign tax items.

Reconciliations of the Company’s effective tax rates to the statutory corporate tax rates were as follows:


	Three Months Ended March 31,				Three Months Ended March 31,
	2025				2024
	(In Thousands)				(In Thousands)
Tax at statutory rate	$	4,505	21.0	%	$	3,480	21.0	%
Nontaxable interest and dividends		(96)	(0.4)			(96)	(0.6)
U.S. federal tax credits (primarily low-income housing)		(859)	(4.0)			(830)	(5.0)
State income or franchise taxes		625	2.9			498	3.0
Other		115	0.5			111	0.7
	$	4,290	20.0	%	$	3,163	19.1	%

During the three months ended March 31, 2025, the Company paid no U.S. federal income taxes and paid taxes to various state jurisdictions totaling $35,000. There were no payments to any individual state jurisdiction exceeding five percent of taxable income. In addition, the Company received a refund of $19,000 from one state jurisdiction and a federal income tax refund of $49,000.

The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS). As a result, federal tax years through December 31, 2020 are now closed. In addition, there are no pending audits by any state jurisdiction at March 31, 2025.

NOTE 15: DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

●

Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

●

Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means.

●

Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity’s own assumptions that are supported by little or no market activity or observable inputs.

Financial instruments are broken down by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period.

The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods.

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at March 31, 2025 and December 31, 2024:


			Fair value measurements using
			Quoted prices
			in active
			markets		Other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Fair value		(Level 1)		(Level 2)		(Level 3)

	(In Thousands)
March 31, 2025
Available-for-sale securities
Agency mortgage-backed securities	$	308,502	$	—	$	308,502	$	—
Agency collateralized mortgage obligations		116,111		—		116,111		—
States and political subdivisions securities		52,748		—		52,748		—
Small Business Administration securities		58,553		—		58,553		—
Interest rate derivative asset		6,995		—		6,995		—
Interest rate derivative liability		(18,409)		—		(18,409)		—

December 31, 2024
Available-for-sale securities
Agency mortgage-backed securities	$	305,907	$	—	$	305,907	$	—
Agency collateralized mortgage obligations		113,624		—		113,624		—
States and political subdivisions securities		55,948		—		55,948		—
Small Business Administration securities		57,894		—		57,894		—
Interest rate derivative asset		8,065		—		8,065		—
Interest rate derivative liability		(25,000)		—		(25,000)		—

The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at March 31, 2025 and December 31, 2024 as well as the general classification of such assets pursuant to the valuation hierarchy. There were no significant changes in the valuation techniques during the three-month period ended March 31, 2025.

Available-for-Sale Securities. Investment securities available-for-sale are recorded at fair value on a recurring basis. The fair values used by the Company are obtained from an independent pricing service, which represent either quoted market prices for the identical asset or fair values determined by pricing models, or other model-based valuation techniques, that consider observable market data, such as interest rate volatilities, SOFR yield curve, credit spreads and prices from market makers and live trading systems. Recurring Level 2 securities include U.S. government agency securities, mortgage-backed securities, state and municipal bonds and certain other investments. Inputs used for valuing Level 2 securities include observable data that may include dealer quotes, benchmark yields, market spreads, live trading levels and market consensus prepayment speeds, among other things. Additional inputs include indicative values derived from the independent pricing service’s proprietary computerized models. There were no recurring Level 3 securities at March 31, 2025 or December 31, 2024.

Interest Rate Derivatives. The fair value is estimated using forward-looking interest rate curves and is determined using observable market rates and, therefore, are classified within Level 2 of the valuation hierarchy.

Nonrecurring Measurements

The following tables present the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the measurements fell at March 31, 2025 and December 31, 2024:


			Fair Value Measurements Using
			Quoted prices
			in active
			markets		Other		Significant
			for identical		observable		unobservable
			assets		inputs		inputs
	Fair value		(Level 1)		(Level 2)		(Level 3)

	(In Thousands)
March 31, 2025
Collateral-dependent loans	$	—	$	—	$	—	$	—

December 31, 2024
Collateral-dependent loans	$	701	$	—	$	—	$	701

The following is a description of valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying statements of financial condition, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Loans Held for Sale. Mortgage loans held for sale are recorded at the lower of carrying value or fair value. The fair value of mortgage loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. As such, the Company classifies mortgage loans held for sale as Nonrecurring Level 2. Write-downs to fair value typically do not occur as the Company generally enters into commitments to sell individual mortgage loans at the time the loan is originated to reduce market risk. The Company typically does not have commercial loans held for sale. At March 31, 2025 and December 31, 2024, the aggregate fair value of mortgage loans held for sale was not materially different than their cost. Accordingly, no mortgage loans held for sale were marked down and reported at fair value.

Collateral-Dependent Loans. The Company records collateral-dependent loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for credit losses specific to the loan. Loans for which such charge-offs or reserves were recorded during the three months ended March 31, 2025 and the year ended December 31, 2024, are shown in the table above (net of reserves).

Foreclosed Assets Held for Sale. Foreclosed assets held for sale are initially recorded at fair value less estimated cost to sell at the date of foreclosure. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. There were no foreclosed assets held for sale at March 31, 2025 or December 31, 2024 which had valuation write-downs subsequent to the initial recording of the assets.

Fair Value of Financial Instruments

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial condition at amounts other than fair value.

Cash and Cash Equivalents and Federal Home Loan Bank Stock. The carrying amount approximates fair value.

Held-to-Maturity Securities. Fair values for held-to-maturity securities are estimated based on quoted market prices of similar securities. For these securities, the Company obtains fair value measurements from an independent pricing service, which represent either quoted market prices for the identical asset or fair values determined by pricing models, or other model-based valuation techniques, that consider observable market data, such as interest rate volatilities, SOFR yield curve, credit spreads and prices from market makers and live trading systems. These securities include U.S. government agency securities, mortgage-backed securities, state and municipal bonds and certain other investments.

Loans and Interest Receivable. The fair value of loans is estimated on an exit price basis incorporating contractual cash flows, prepayment discount spreads, credit loss and liquidity premiums. Loans with similar characteristics are aggregated for purposes of the calculations. The carrying amount of accrued interest receivable approximates its fair value.

Deposits and Accrued Interest Payable. The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date, i.e., their carrying amounts. The fair value of fixed maturity certificates of deposit is estimated based on a discounted cash flow calculation using the average advances yield curve from 11 districts of the FHLB for the as of date. The carrying amount of accrued interest payable approximates its fair value.

Short-Term Borrowings. The carrying amount approximates fair value.

Subordinated Debentures Issued to Capital Trusts. The subordinated debentures have floating rates that reset quarterly. The carrying amount of these debentures approximates their fair value.

Subordinated Notes. The fair values used by the Company are obtained from independent sources and are derived from quoted market prices of the Company’s subordinated notes and quoted market prices of other subordinated debt instruments with similar characteristics.

Commitments to Originate Loans, Letters of Credit and Lines of Credit. The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.

The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value in the financial statements. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.


	March 31, 2025					December 31, 2024
	Carrying		Fair		Hierarchy	Carrying		Fair		Hierarchy
	Amount		Value		Level	Amount		Value		Level

	(In Thousands)
Financial assets
Cash and cash equivalents	$	217,181	$	217,181	1	$	195,756	$	195,756	1
Held-to-maturity securities		185,853		165,214	2		187,433		162,765	2
Mortgage loans held for sale		6,857		6,857	2		6,937		6,937	2
Loans, net of allowance for credit losses		4,690,636		4,546,532	3		4,690,393		4,529,729	3
Interest receivable		21,504		21,504	3		20,430		20,430	3
Investment in FHLBank stock and other assets		25,813		25,813	3		28,392		28,392	3

Financial liabilities
Deposits		4,758,046		4,755,258	3		4,605,549		4,602,312	3
Short-term borrowings		435,229		435,229	3		578,691		578,691	3
Subordinated debentures		25,774		25,774	3		25,774		25,774	3
Subordinated notes		74,950		74,813	2		74,876		74,438	2
Interest payable		5,416		5,416	3		12,761		12,761	3

Unrecognized financial instruments (net of contractual value)
Commitments to originate loans		—		—	3		—		—	3
Letters of credit		78		78	3		72		72	3
Lines of credit		—		—	3		—		—	3

NOTE 16: DERIVATIVES AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. In the normal course of business, the Company may use derivative financial instruments (primarily interest rate swaps) from time to time to assist in its interest rate risk management. The Company has interest rate derivatives that result from a service provided to certain qualifying loan customers that are not used to manage interest rate risk in the Company’s assets or liabilities and are not designated in a qualifying hedging relationship. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. In addition, the Company has interest rate derivatives that have been designated in a qualified hedging relationship.

Nondesignated Hedges

The Company has interest rate swaps that are not designated in a qualifying hedging relationship. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.

At March 31, 2025, the Company had five interest rate swaps totaling $86.2 million in notional amount with commercial customers, and five interest rate swaps with the same aggregate notional amount with third parties related to its program. In addition, at March 31, 2025, the Company had one participation loan purchased totaling $8.4 million, in which the lead institution has an interest rate swap with its customer and the economics of the counterparty swap are passed along to the Company through the loan participation. At December 31, 2024, the Company had five interest rate swaps totaling $86.7 million in notional amount with commercial customers, and five interest rate swaps with the same notional amount with third parties related to its program. In addition, at December 31, 2024, the Company had one participation loan purchased totaling $8.4 million, in which the lead institution has an interest rate swap with its customer and the economics of the counterparty swap are passed along to the Company through the loan participation. During the three months ended March 31, 2025 and 2024, the Company recognized net losses of $24,000 and $13,000, respectively, in non-interest income related to changes in the fair value of these swaps.

Fair Value Hedges

Interest Rate Swaps. As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, in February 2023, the Company entered into interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of certain of its fixed rate brokered deposits. The total notional amount of the swaps was $95 million with a termination date of February 28, 2025. Under the terms of the swaps, the Company received a fixed rate of interest of 4.65% and paid a floating rate of interest equal to USD-SOFR-COMPOUND plus a spread. The floating rate reset monthly and net settlements of interest due to/from the counterparty occurred monthly. To the extent that the fixed rate of interest exceeded USD-SOFR-COMPOUND plus the spread, the Company received net interest settlements, which were recorded as a reduction of deposit interest expense. If USD-SOFR-COMPOUND plus the spread exceeded the fixed rate of interest, the Company was required to pay net settlements to the counterparty and record those net payments as interest expense on deposits.

In January 2024, the Company elected to terminate these swaps prior to their contractual termination date in 2025. The Company received a net settlement payment from the swap counterparty totaling $26,500 upon termination. At the time of the early termination, the Company recorded a market value adjustment to the brokered deposits of $163,000, which was amortized as a reduction of interest expense from January 2024 through February 2025.

Cash Flow Hedges

Interest Rate Swaps. As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, in October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $400 million with a termination date of October 6, 2025. Under the terms of the swap, the Company received a fixed rate of interest of 3.018% and paid a floating rate of interest equal to one-month USD-LIBOR. The floating rate was reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. To the extent that the fixed rate of interest exceeded one-month USD-LIBOR, the Company received net interest settlements which were recorded as loan interest income. If USD-LIBOR exceeded the fixed rate of interest, the Company was required to pay net settlements to the counterparty and record those net payments as a reduction of interest income on loans.

In March 2020, the Company and its swap counterparty mutually agreed to terminate the $400 million interest rate swap prior to its contractual maturity. The Company was paid $45.9 million from its swap counterparty as a result of this termination. This $45.9 million, less the accrued interest portion and net of deferred income taxes, has been reflected in the Company’s stockholders’ equity as part of Accumulated Other Comprehensive Income (AOCI) and a portion of it is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025. This had the effect of reducing Accumulated Other Comprehensive Income and increasing Net Interest Income and Retained Earnings over the period. At March 31, 2025, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income on the terminated swap in future periods. If this expectation changes and the amount of eligible variable rate loans decreases significantly, the Company may be required to recognize this interest income more rapidly. The Company recorded $2.0 million of interest income related to this terminated swap in each of the three-month periods ended March 31, 2025 and 2024.

In March 2022, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $300 million, with a termination date of March 1, 2024. Under the terms of the swap, the Company received a fixed rate of interest of 1.6725% and paid a floating rate of interest equal to one-month USD-LIBOR (or the equivalent replacement USD-SOFR rate once the USD-LIBOR rate ceased to be available). The floating rate reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. To the extent the floating rate of interest exceeded the fixed rate of interest, the Company was required to pay net settlements to the counterparty and record those net payments as a reduction of interest income on loans. If the fixed rate of interest exceeded the floating rate of interest, the Company received net interest settlements, which were recorded as loan interest income. As this interest rate swap reached its contractual termination date on March 1, 2024, there has been no further interest income impact related to this swap after the three months ended March 31, 2024. The Company recorded a reduction of loan interest income related to this swap transaction of $1.9 million in the three months ended March 31, 2024.

In July 2022, the Company entered into two additional interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of each swap is $200 million with an effective date of May 1, 2023 and a termination date of May 1, 2028. Under the terms of one swap, the Company receives a fixed rate of interest of 2.628% and pays a floating rate of interest equal to one-month USD-SOFR OIS. Under the terms of the other swap, the Company receives a fixed rate of interest of 5.725% and pays a floating rate of interest equal to one-month USD-Prime. In each case, the floating rate resets monthly and net settlements of interest due to/from the counterparty also occur monthly. To the extent the fixed rate of interest exceeds the floating rate of interest, the Company receives net interest settlements, which is recorded as loan interest income. If the floating rate of interest exceeds the fixed rate of interest, the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans. At March 31, 2025, the USD-Prime rate was 7.50% and the one-month USD-SOFR OIS rate was 4.33365%. The Company recorded a reduction of loan interest income related to these swap transactions of $1.7 million and $2.8 million in the three months ended March 31, 2025 and 2024, respectively.

The effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. During each of the three months ended March 31, 2025 and 2024, the Company recognized no non-interest income related to changes in the fair value of these derivatives.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition:


	Location in	Fair Value
	Consolidated Statements	March 31,		December 31,
	of Financial Condition	2025		2024

		(In Thousands)
Derivatives designated as hedging instruments
Active interest rate swaps	Accrued expenses and other liabilities	$	11,469	$	17,014

Total derivatives designated as hedging instruments		$	11,469	$	17,014

Derivatives not designated as hedging instruments
Asset Derivatives
Interest rate products	Prepaid expenses and other assets	$	6,995	$	8,065

Total derivatives not designated as hedging instruments		$	6,995	$	8,065

Liability Derivatives
Interest rate products	Accrued expenses and other liabilities	$	6,940	$	7,986

Total derivatives not designated as hedging instruments		$	6,940	$	7,986

The following table presents the effect of cash flow hedge accounting through AOCI on the statements of comprehensive income:


	Amount of Gain (Loss)
	Recognized in AOCI
	Three Months Ended March 31,
Cash Flow Hedges	2025		2024

	(In Thousands)
Terminated interest rate swap, net of income taxes	$	(1,546)	$	(1,564)
Active interest rate swaps, net of income taxes		4,181		(2,968)
	$	2,635	$	(4,532)

The following table presents the effect of cash flow hedge accounting on the statements of income:


	Three Months Ended March 31,
Cash Flow Hedges	2025				2024
	Interest		Interest		Interest		Interest
	Income		Expense		Income		Expense

	(In Thousands)
Total Interest Income	$	80,243	$	—	$	77,390	$	—
Total Interest Expense		—		30,909		—		32,574
	$	80,243	$	30,909	$	77,390	$	32,574

Terminated interest rate swap	$	2,003	$	—	$	2,025	$	—
Active interest rate swaps		(1,742)		—		(4,653)		—
	$	261	$	—	$	(2,628)	$	—

Agreements with Derivative Counterparties

The Company has agreements with its derivative counterparties. If the Company defaults on any of its indebtedness, including a default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Bank fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain regulatory events occur, such as the issuance of a formal directive, or if the Company’s credit rating is downgraded below a specified level.

At March 31, 2025, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers and interest rate swaps to hedge risk related to the Company’s variable rate loans) in an overall net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $55,000. The Company has minimum collateral posting thresholds with its derivative dealer counterparties. At March 31, 2025, the Company had given cash collateral to one derivative counterparty of $6.1 million to cover its net fair value position. This counterparty position included collateral from the counterparty of $6.4 million for commercial lending swaps and collateral from the Company of $12.1 million for interest rate swaps related to variable rate loans.

At December 31, 2024, the termination value of derivatives with our derivative dealer counterparties (related to loan level swaps with commercial lending customers and interest rate swaps to hedge risk related to the Company’s variable rate loans) in an overall net asset position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $79,000. At December 31, 2024, the Company had given cash collateral to one derivative counterparty of $9.9 million to cover its net fair value position. This counterparty position included collateral from the counterparty of $8.1 million for commercial lending swaps and collateral from the Company of $17.7 million for interest rate swaps related to variable rate loans.

If the Company had breached any of these provisions at March 31, 2025 or December 31, 2024, it could have been required to settle its obligations under the agreements at the termination value. Under the collateral agreements between the parties, either party may choose to provide cash or securities to satisfy its collateral requirements.

NOTE 17: OPERATING SEGMENTS

The Company’s banking operation is its only operating segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans by attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. The parent holding company does not have any significant operations other than ownership of the Bank, and the parent holding company’s only income is equity in the earnings of the Bank.

Our chief executive officer is our chief operating decision maker. Our chief executive officer reviews actual net income versus budgeted net income, as well as comparison to other comparable financial reporting periods, to assess performance on a monthly basis and to make decisions about allocating capital and personnel.

Financial results by operating segment (all attributed to the banking segment), including significant expense categories provided to the chief operating decision maker, are detailed below for the three months ended March 31, 2025 and 2024.


	Three Months Ended March 31,
	2025		2024

	(In Thousands)
Interest income	$	80,243	$	77,390
Interest expense		30,909		32,574
Net interest income		49,334		44,816

Credit loss expense		(348)		630
Net interest income after credit loss expense		49,682		44,186

Non-interest Income
Commissions		262		381
Overdraft and insufficient funds fees		1,215		1,289
Point-of-sale and ATM fee income and service charges		3,234		3,183
Net gain on loan sales		601		677
Late charges and fees on loans		243		167
Fees from debit card contracts		501		755
Other income		534		354
		6,590		6,806

Non-interest Expense
Salaries and incentives		16,203		15,862
Employee benefits		3,926		3,794
Net occupancy expense		3,379		3,018
Technology, furniture and equipment expense		5,154		4,821
Postage		931		807
Insurance		1,165		1,144
Advertising		290		350
Office supplies and printing		266		267
Telephone		706		721
Legal, audit and other professional fees		1,038		1,725
Expense (income) on other real estate and repossessions		(70)		61
Acquired intangible asset amortization		108		108
Travel meals and entertainment		348		312
Other operating expenses		1,378		1,432
		34,822		34,422

Income Before Income Taxes		21,450		16,570
Provision for Income Taxes		4,290		3,163
Net Income	$	17,160	$	13,407

NOTE 18: SUBSEQUENT EVENT

On April 30, 2025, the Company notified holders that it will redeem on June 15, 2025 (the “Redemption Date”) all of the Company’s outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030, having an aggregate principal amount of $75.0 million (the “Subordinated Notes”), in accordance with the terms of the Subordinated Notes. The total redemption price will be 100% of the aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest to, but excluding, the Redemption Date. The Company will utilize excess cash on hand for the redemption payment. The annual combined interest expense and amortization of deferred issuance costs on the Subordinated Notes has been approximately $4.4 million.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-looking Statements

When used in this Quarterly Report on Form 10-Q and in other documents filed or furnished by Great Southern Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s 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 Great Southern 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 of such statements or to reflect the occurrence of anticipated or unanticipated events.

Critical Accounting Policies, Judgments and Estimates

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States and general practices within the financial services industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

Allowance for Credit Losses and Valuation of Foreclosed Assets

On January 1, 2021, the Company adopted the new accounting standard related to the allowance for credit losses. This standard eliminates the probable initial recognition threshold in GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. See Note 6 “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements included in this report for additional information.

The Company believes that the determination of the allowance for credit losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance for credit losses is calculated with the objective of maintaining an allowance level believed by management to be sufficient to absorb estimated credit losses. The allowance for credit losses is measured using an average historical loss model that incorporates relevant information about past events (including historical credit loss experience on loans with similar risk characteristics), current conditions, and reasonable and supportable forecasts that affect the collectability of the remaining cash flows over the contractual term of the loans. The allowance for credit losses is measured on a collective (pool) basis. Loans are aggregated into pools based on similar risk characteristics, including borrower type, collateral and repayment types and expected credit loss patterns. Loans that do not share similar risk characteristics, primarily classified loans with a balance of $100,000 or more, are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical loss rates are calculated for each pool using the Company’s historical net charge-offs (combined charge-offs and recoveries by observable historical reporting period) and outstanding loan balances during a lookback period. Lookback periods can be different based on the individual pool and represent management’s credit expectations for the pool of loans over the remaining contractual life. In certain loan pools, if the Company’s own historical loss rate is not reflective of the loss expectations, the historical loss rate is augmented by industry and peer data. The calculated average net charge-off rate is then adjusted for current conditions and reasonable and supportable forecasts. These adjustments increase or decrease the average historical loss rate to reflect expectations of future losses given economic forecasts of key macroeconomic variables including, but not limited to, unemployment rate, GDP, commercial real estate price index, consumer sentiment and construction spending. The adjustments are based on results from various regression models projecting the impact of the macroeconomic variables to loss rates. The forecast is used for a reasonable and supportable period before reverting to historical averages using a straight-line method. The forecast-adjusted loss rate is applied to the principal balance over the remaining contractual lives, adjusted for expected prepayments. The contractual term excludes expected extensions, renewals and modifications. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecasts such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.

See Note 6 “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements included in this report for additional information regarding the allowance for credit losses. Inherent in this process is the evaluation and risk assessment of individual credit relationships. From time to time, certain credit relationships may deteriorate due to changes in payment performance, cash flow of the borrower, value of collateral, or other factors. Due to these changing circumstances, management may revise its loss estimates and assumptions for these specific credits. In some cases, losses may be realized; in other instances, the factors that led to the deterioration may improve or the credit may be refinanced elsewhere and allocated allowances may be released from the particular credit.

In addition, the Company considers that the determination of the valuation of foreclosed assets held for sale involves a high degree of judgment and complexity. The carrying value of foreclosed assets reflects management’s best estimate of the amount to be realized from the sale of the assets. While the estimate is generally based on a valuation by an independent appraiser or recent sales of similar properties, the amount that the Company realizes from the sale of the assets could differ materially from the carrying value reflected in the financial statements, resulting in gains or losses that could materially impact earnings in future periods.

Goodwill and Intangible Assets

Goodwill and intangible assets that have indefinite useful lives are subject to an impairment test at least annually and more frequently if circumstances indicate their value may not be recoverable. Goodwill is tested for impairment using a process that estimates the fair value of each of the Company’s reporting units compared with its carrying value. The Company defines reporting units as a level below each of its operating segments for which there is discrete financial information that is regularly reviewed. As of March 31, 2025, the Company had one reporting unit to which goodwill has been allocated – the Bank. If the fair value of a reporting unit exceeds its carrying value, then no impairment is recorded. If the carrying value exceeds the fair value of a reporting unit, further testing is completed comparing the implied fair value of the reporting unit’s goodwill to its carrying value to measure the amount of impairment. Intangible assets that are not amortized are tested for impairment at least annually by comparing the fair values of those assets to their carrying values. At March 31, 2025, goodwill consisted of $5.4 million at the Bank reporting unit, which included goodwill of $4.2 million that was recorded during 2016 related to the acquisition of 12 branches and the assumption of related deposits in the St. Louis market. Other identifiable deposit intangible assets that are subject to amortization are amortized on a straight-line basis over a period of seven years.

In April 2022, the Company, through its subsidiary Great Southern Bank, entered into a naming rights agreement with Missouri State University related to the main arena on the university’s campus in Springfield, Missouri. The terms of the agreement provide the naming rights to Great Southern Bank for a total cost of $5.5 million, to be paid over a period of seven years. The Company expects to amortize the naming rights intangible assets through non-interest expense over a period not to exceed 15 years.

At March 31, 2025, the amortizable intangible assets included the arena naming rights of $4.6 million, which are reflected in the table below. These amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value.

For purposes of testing goodwill for impairment, the Company uses a market approach to value its reporting unit. The market approach applies a market multiple, based on observed purchase transactions for each reporting unit, to the metrics appropriate for the valuation of the operating unit. Significant judgment is applied when goodwill is assessed for impairment. This judgment may include developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables and incorporating general economic and market conditions.

Management does not believe any of the Company’s goodwill or other intangible assets were impaired as of March 31, 2025. While management believes no impairment existed as of March 31, 2025, different conditions or assumptions used to measure fair value of the reporting unit, or changes in cash flows or profitability, if significantly negative or unfavorable, could have a material adverse effect on the outcome of the Company’s impairment evaluation in the future.

A summary of goodwill and intangible assets as of the dates indicated is as follows:


	March 31,		December 31,
	2025		2024

	(In Thousands)
Goodwill – Branch acquisitions	$	5,396	$	5,396
Arena Naming Rights		4,589		4,698
	$	9,985	$	10,094

Current Economic Conditions

Changes in economic conditions could cause the values of assets and liabilities recorded in the Company’s financial statements to change rapidly, resulting in material future adjustments to asset values, the allowance for credit losses, or capital that could negatively affect the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity. Following the housing and mortgage crisis and correction beginning in mid-2007, the United States entered an economic downturn. Unemployment rose from 4.7% in November 2007 to peak at 10.0% in October 2009. Economic conditions improved in the subsequent years, as indicated by higher consumer confidence levels, increased economic activity and low unemployment levels. The U.S. economy continued to operate at historically strong levels until the COVID-19 pandemic in March 2020, which severely affected tourism, labor markets, business travel, immigration, and the global supply chain, among other areas. The economy plunged into recession in the first quarter of 2020, as efforts to contain the spread of the coronavirus forced all but essential business activity, or any work that could not be done from home, to stop, shuttering factories, restaurants, entertainment, sporting events, retail shops, personal services, and more.

More than 22 million jobs were lost in March and April 2020 as businesses closed their doors or reduced their operations, sending employees home on furlough or layoffs. With uncertain incomes and limited buying opportunities, consumer spending plummeted. As a result, gross domestic product (GDP), the broadest measure of the nation’s economic output, plunged. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a fiscal relief bill passed by Congress and signed by the President in March 2020, injected approximately $3 trillion into the economy through direct payments to individuals and loans to small businesses intended to help keep employees on their payroll, fueling a historic bounce-back in economic activity.

Total fiscal support to the economy throughout the pandemic, including the CARES Act, the American Rescue Plan of March 2021, and several smaller fiscal packages, totaled well over $5 trillion. The amount of this support was equal to almost 25% of pre-pandemic 2019 GDP and approximately three times the level of support provided during the global financial crisis of 2007-2008.

Additionally, the Federal Reserve acted decisively by slashing its benchmark interest rate to near zero and ensuring credit availability to businesses, households, and municipal governments. The Federal Reserve’s efforts largely insulated the financial system from the problems in the economy, a significant difference from the financial crisis of 2007-2008. Purchases of Treasury and agency mortgage-backed securities totaling $120 billion each month by the Federal Reserve commenced shortly after the pandemic began. In November 2021, the Federal Reserve began to taper its quantitative easing (QE), winding down its bond purchases with its final open market purchase conducted on March 9, 2022. The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023. The Federal Reserve aggressively raised the federal funds interest rates from early 2022 through mid - 2023, pushing the federal funds rate to more than 5.50%, its highest level in 22 years.

The Federal Reserve’s actions were motivated by surging inflation in 2021 caused by pandemic-fueled spending, which outpaced the ability of producers to supply goods and services after having been impacted by COVID-related shutdowns and clogged transportation systems. The Federal Reserve made some headway in its attempt to force inflation down. The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, eased from its peak of 7.1% in June 2022 to 2.9% in December 2023. Core PCE, which excludes food and energy prices, was 2.6% at March 31, 2025, above the Federal Reserve’s target of 2%.

Based on Moody’s U.S. Baseline Outlook and Alternative Scenarios Analysis dated March 2025, real GDP in 2025 is projected to rise 1.9% on an annual average basis; this is a reduction to prior GDP forecasts for 2025, which anticipated growth of 2.3%. GDP is projected to grow 1.7% in 2026 and 2.3% in 2027, before returning to trend in 2028. The downward revision to GDP growth for 2025 is a result of widespread economic uncertainty; key components to the revision resulted from weaker growth overseas and anticipated tariffs impacting imports and increases in federal spending due to changes in defense and immigration spending.

Employment

The national unemployment rate increased slightly to 4.2% for March 2025 compared to the previous quarter end at 4.1% for December 2024. However, the unemployment rate for March 2025 is 0.2 basis points higher than the year prior. The number of unemployed individuals was 7.1 million as of March 2025 with 228,000 jobs added. In March 2025, the healthcare, retail trade, social assistance, transportation and warehousing areas contributed to the 125,000 of total job gains.

As of March 2025, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) remained stable at 62.5%. The unemployment rate for the Midwest, where the Company conducts most of its business, increased from 4.1% in December 2024 to 4.2% in March 2025. Unemployment rates for March 2025 in the states where the Company has a branch or a loan production office were: Arizona at 4.1%, Arkansas at 3.7%, Colorado at 4.8%, Georgia at 3.6%, Illinois at 4.8%, Iowa at 3.4%, Kansas at 3.8%, Minnesota at 3.1%, Missouri at 3.8%, Nebraska at 2.9%, North Carolina at 3.7%, and Texas at 4.1%. These rates are slightly higher for a majority of the states compared to December 2024. It is unknown at this time if actions being taken to reduce federal employment will impact the unemployment rates in these states.

Single Family Housing

Existing-home sales slipped 5.9% in March 2025 to a seasonally adjusted annual rate of 4.02 million; year-over-year sales fell 2.4%. In the Midwest, existing-home sales slowed to 5% in March 2025 at an annual rate of 950,000, down 3.1% from one year earlier.

The median existing-home sales price rose 2.7% from March 2024 to $403,700 in March 2025. The median price in the Midwest was $302,100, up 3.5% from March 2024. All regions reported median price increases when compared to the prior year.

Total housing inventory registered at the end of March 2025 was 1.33 million units, up 8.1% from February 2025 and 19.8% from one year ago. Unsold inventory sat at a 4-month supply at the end of March 2025, up from 3.5 months at the end of February 2025 and 3.2 months at the end of March 2024.

New home construction dropped precipitously after the financial crisis of 2007-2008 and has yet to fully recover. Issues contributing to the country’s current housing shortage include increasing labor and materials costs, availability of building materials, increased interest rates and tighter lending underwriting standards. Single-family housing starts in March 2025 were at a rate of 1.3 million; 11.4% below the revised estimate for February 2025 but 1.9% higher than March 2024.

Sales of new single‐family houses in March 2025 were at a seasonally adjusted annual rate of 724,000 according to the U.S. Census Bureau and the Department of Housing and Urban Development. This was 7.4% above the February 2025 rate of 674,000 and 6.0% above the March 2024 rate of 683,000.

The median sales price of new houses sold in March 2025 was $403,600, slightly lower than the $411,500 reported in February 2025. The seasonally‐adjusted estimate of new houses for sale at the end of March 2025 represented a supply of 8.3 months at the current sales rate.

According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 6.65% as of March 31, 2025, down from 6.74% one year ago.

Other Residential (Multi-Family) Housing and Commercial Real Estate

The U.S. multi-family market experienced a continued strong recovery in demand through 2024, driven by stable economic growth plus a continued slowing of renter households making the jump to ownership and creating fewer units to backfill. Despite the notable growth in demand in 2024, the influx of new supply continued to saturate the market. Q4 2024 represented the strongest fourth-quarter absorption total on record. Absorption for the first quarter of 2025 was 130,000 (preliminary figure) units, which is the strongest first-quarter total on record besides first-quarter 2021. Most new supply additions are concentrated at the 4 and 5 star price point, which initially contributed to the weakest rent growth observed in this level of the market. However, as of first-quarter 2025, the 4 and 5 star segment accounted for 77% of total absorption. Due to the stronger absorption within the 4 and 5 star units, demand finally outpaced supply and lowered vacancy to 11.3% in that segment. Overall vacancy in the multi-family market was 8% for the first quarter of 2025 and is forecasted to fall below this level by year-end and lower still in 2026.

The Midwest and Northeast regions have fared the best over the past two years in terms of rent growth. Rents are still down year over year as of March 2025 in 14 of the largest markets, primarily in markets where supply significantly outpaced demand. Controlled increase in projected new supply is expected to keep Midwestern markets more balanced, thereby avoiding the oversupply conditions that contributed to weaker rent growth in the Sun Belt. At the market level, projections suggest that all major markets will return to positive rent growth by the end of 2025. Kansas City and Chicago continue to lead the nation in rent growth, each displaying 3% growth in the first quarter of 2025.

The March 2025 national multi-family market vacancy rate remained unchanged at 8% compared to the prior quarter-end. Our market areas reflected the following apartment vacancy levels as of March 2025: Springfield, Missouri at 5.8%, St. Louis at 9.7%, Kansas City at 8.6%, Minneapolis at 7.0%, Dallas-Fort Worth at 11.5%, Chicago at 4.8%, Atlanta at 12.3%, Phoenix at 11.9%, Denver at 11.5% and Charlotte, North Carolina at 12.9%.

Net absorption for the office industry turned positive in the fourth quarter of 2024 and has remained stable into the first quarter of 2025. Overall, the vacancy rate has remained unchanged since September 2024 at 13.9%. Despite the demand-side improvement, supply additions have kept the national vacancy rate near a record high. Improvements in demand vary significantly between markets. The supply pipeline is diminishing rapidly, currently representing the lowest supply since 2012, with 64.4 million square feet under construction. Positive absorption across some of the largest office markets, combined with a diminishing pipeline of supply, is expected to continue to hold the national vacancy rate steady. CoStar expects the vacancy rate to rise slightly further for the remainder of the year before plateauing in 2026. Rents are expected to flatten out in the next 12 months before beginning a recovery driven by stabilizing demand and a lack of relevant, competitive supply. Various indicators show office attendance was still trending upward, albeit slowly, but while attendance was rising, office-using job growth had nearly stalled.

The final settling of property values, which appears imminent, should maximize pressure on asking rates as more buildings transact at significant discounts to prior valuation. With a lower cost basis, some new owners can undercut the competition and still generate acceptable returns, on occasion even with relatively low occupancy. Others may choose to invest capital in their buildings to make them more competitive, keeping rents higher to justify their investment. Transaction volumes, which regained momentum throughout 2024 and surged notably in the fourth quarter of 2024, continued improving in the first quarter of 2025, finishing 39% higher year-over-year. This follows a 22% increase in total sales for 2024 compared to the cyclical lows of 2023.

CoStar reported office asking rents have remained steady over the past four years. A combination of aggressive discounts by new, low-basis owners, a looming lack of available space in premium new buildings, and an ongoing amount of sublease inventory is expected to keep office-asking rents flat for the next 12 months. With attendance rising only gradually and job growth stagnant, there appears little likelihood of a dramatic change in demand conditions over the next 12 months.

As of March 2025, national office vacancy rates remained stable at 13.9%, while our market areas reflected the following vacancy levels: Springfield, Missouri at 2.0%, St. Louis at 9.6%, Kansas City 10.9%, Minneapolis 11.2%, Dallas-Fort Worth at 17.9%, Chicago at 16.4%, Atlanta at 16.6%, Denver at 17.5%, Phoenix at 16.8% and Charlotte, North Carolina at 14.7%.

As of March 31, 2025, the U.S. retail market witnessed the highest level of store closures and bankruptcy filings since 2020. Significant competition from e-commerce retailers, rising costs, restricted access to capital and multiple years of below-average closures, all contribute to the uptick in store closures. Bankruptcy filings are correlated to low home sales, which have weighed heavily on furniture, retail, appliance and home improvement sales.

As transaction volumes trended higher, the rise in cap rates has settled down. Higher exit caps have made it more challenging for developers to meet their proformas and an increasing number are choosing to hold instead of taking their assets to market in the near term. The shift in cap rates over the last two years was evident in the trend of single-tenant investment sales of net leased properties. Fewer buyers were in the market, and investment opportunities continued to expand. Unanchored and open-air shopping centers have seen cap rates above 7%, occasionally exceeding the 8% range, depending on market specifics and the quality of the asset. However, the limited new retail construction and historically low availability rates should limit any potential surge in vacancy rates in the event of a demand pullback. CoStar expects pricing risk to be neutral through the first half of 2025.

During the first quarter of 2025, national retail vacancy rates remained steady at 4.2% while our market areas reflected the following vacancy levels: Springfield, Missouri at 2.2%, St. Louis at 4.2%, Kansas City at 3.9%, Minneapolis at 2.6%, Dallas-Fort Worth at 4.6%, Chicago at 4.7%, Atlanta at 3.9%, Phoenix at 4.8%, Denver at 4.2%, and Charlotte, North Carolina at 3.2%.

Current U.S. industrial market performance continues to favor the tenant, reporting the 11^th consecutive quarter of vacancy rate increases in the first quarter of 2025. While the national vacancy rate is not expected to rise above its 20-year average of 7.0%, forecasts for 2025 could still prove challenging for the market. Net absorption has remained positive but continued to lose steam, with early 2024 registering the lowest first quarter absorption tally since 2012. Net absorption for 2024 was 125 million SF compared to 133 million SF for 2023. This weakness was tied partly to recent 12-year lows in home sales, which lowered sales of furniture, building materials, and appliances, leading to large distribution center closures by tenants including Big Lots, Ashley Furniture, and Home Depot.

The U.S. industrial market is nearing the end of a record development surge. Higher interest rates have caused construction starts on new industrial projects to fall over the past two and a quarter years. Quarterly net supply additions are on pace to fall below the pre-pandemic three-year average by mid-2025 and continue declining through at least 2026 when supply growth is expected to hit an 11-year low. A gradual but persistent decline in speculative development completions has already begun. As of March 31, 2025, the amount of vacant space among existing Phoenix logistics properties 50,000 SF or larger has increased by 19 million SF, primarily due to speculative development since 2019 pushing the vacancy rate among these buildings over 20%, while another 8.2 million SF worth of unleased space remained under construction.

Nationally, year-over-year industrial rent growth slowed to 2.1% in March 2025, its lowest rate since 2012. However, due to record rent growth during the pandemic, many leases are still renewing at higher rates after being marked to market. Leasing activity increased in the first quarter of 2025 ahead of tariff escalations, with some markets increasing leasing volume by 50% above two-year averages. A potential deterioration in goods spending risks derailing the recovery underway in key drivers of logistics leasing, including U.S. imports and inventories, and could cause true net absorption to underperform CoStar’s already relatively conservative forecast for 2025.

For the first quarter of 2025, national industrial vacancy was 7.0%. Our market areas reflected the following industrial vacancy levels for the fourth quarter of 2024: Springfield, Missouri at 2%, St. Louis at 4.0%, Kansas City at 4.8%, Minneapolis 3.8%, Dallas-Fort Worth at 9.1%, Chicago at 5.6%, Atlanta at 8.1%, Phoenix at 12.4%, Denver at 8.1% and Charlotte, North Carolina at 9.7%.

Our management will continue to monitor regional, national, and global economic indicators such as unemployment, GDP, housing starts and prices, consumer sentiment, commercial real estate price index and commercial real estate occupancy, absorption and rental rates, as these could significantly affect customers in each of our market areas.

For discussion of the risk factors associated with multi-family and commercial real estate loans, see “Risk Factors – Risks Relating to Lending Activities – Our loan portfolio possesses increased risk due to our relatively high concentration of commercial and residential construction, commercial real estate, other residential (multi-family) and other commercial loans” and “Risk Factors – Risks Relating to Regulation – We currently exceed thresholds defined in interagency guidance on commercial real estate concentrations, and as such, we may incur additional expense or slow the growth of certain categories of commercial real estate lending” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

General

The profitability of the Company and, more specifically, the profitability of its primary subsidiary, the Bank, depends primarily on its net interest income, as well as provisions for credit losses and the level of non-interest income and non-interest expense. Net interest income is the difference between the interest income the Bank earns on its loans and investment securities, and the interest it pays on interest-bearing liabilities, which consists mainly of interest paid on deposits and borrowings. Net interest income is affected by the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on these balances. When interest-earning assets approximate or exceed interest-bearing liabilities, any positive interest rate spread will generate net interest income.

Great Southern’s total assets increased $12.2 million, or 0.2%, from $5.98 billion at December 31, 2024, to $5.99 billion at March 31, 2025. Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at March 31, 2025 and December 31, 2024.”

Loans. Net outstanding loans increased $243,000 from December 31, 2024, to $4.69 billion at March 31, 2025. The increase was primarily in other residential (multi-family) loans and construction loans, partially offset by decreases in commercial real estate loan and one-to four- family residential loans. As loan demand is affected by a variety of factors, including general economic conditions, and because of the competition we face and our focus on pricing discipline and credit quality, no assurance can be given that our loan growth will match or exceed the average level of growth achieved in prior years. The Company’s strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels.

Recent growth has occurred in some loan types, primarily other residential (multi-family) loans and in most of Great Southern’s primary lending locations, including Springfield, St. Louis, Kansas City, Des Moines and Minneapolis, as well as our loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. Certain minimum underwriting standards and monitoring help assure the Company’s portfolio quality. All new loan originations that exceed lender approval authorities are subject to review and approval by Great Southern’s loan committee. Generally, the Company considers commercial construction, consumer, other residential (multi-family) and commercial real estate loans to involve a higher degree of risk compared to some other types of loans, such as first mortgage loans on one- to four-family, owner-occupied residential properties. For other residential (multi-family), commercial real estate, commercial business and construction loans, the credits are subject to an analysis of the borrower’s and guarantor’s financial condition, credit history, verification of liquid assets, collateral, market analysis and repayment ability. It has been, and continues to be, Great Southern’s practice to verify information from potential borrowers regarding assets, income or payment ability and credit ratings as applicable and as required by the authority approving the loan. To minimize construction risk, projects are monitored as construction draws are requested by comparison to budget and with progress verified through property inspections. The geographic and product diversity of collateral, equity requirements and limitations on speculative construction projects help to mitigate overall risk in these loans. Underwriting standards for all loans also include loan-to-value ratio limitations, which vary depending on collateral type, debt service coverage ratios or debt payment to income ratio guidelines, where applicable, credit histories, use of guaranties and other recommended terms relating to equity requirements, amortization, and maturity. Consumer loans, other than home equity loans, are primarily secured by new or used motor vehicles and these loans are subject to underwriting standards designed to assure portfolio quality. In 2019, the Company discontinued indirect auto loan originations.

While our policy allows us to lend up to 95% of the appraised value on one-to four-family residential properties, originations of loans with loan-to-value ratios at that level are minimal. Private mortgage insurance is typically required for loan amounts above the 80% level. Few exceptions occur and would be based on analyses which determined minimal transactional risk to be involved. We consider these lending practices to be consistent with or more conservative than what we believe to be the norm for banks our size. At both March 31, 2025 and December 31, 2024, 0.2% of our owner occupied one-to four-family residential loans had loan-to-value ratios above 100% at origination and an estimated 0.4% of our non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.

The level of non-performing loans and foreclosed assets affects our net interest income and net income. We generally do not accrue interest income on these loans and do not recognize interest income until the loans are repaid or interest payments have been made for a period of time sufficient to provide evidence of improved repayment ability on the loans. Generally, the higher the level of non-performing assets, the greater the negative impact on interest income and net income.

Available-for-sale Securities. In the three months ended March 31, 2025, available-for-sale securities increased $2.5 million, or 0.5%, from $533.4 million at December 31, 2024, to $535.9 million at March 31, 2025. Monthly principal payments on investment securities were generally offset in the period by increases in market value of the available-for-sale securities. For further information on investment securities, see Note 5 to the accompanying financial statements contained in this Report.

Held-to-maturity Securities. In the three months ended March 31, 2025, held-to-maturity securities decreased $1.5 million, or 0.8%, from $187.4 million at December 31, 2024, to $185.9 million at March 31, 2025, due to principal repayments.

Deposits. The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, internet channels and brokered deposits. The Company then utilizes these deposit funds, along with FHLBank advances and other borrowings, to meet loan demand or otherwise fund its activities. In the three months ended March 31, 2025, total deposit balances increased $152.5 million, or 3.3%. Compared to December 31, 2024, transaction account balances increased $43.3 million, or 1.4%, to $3.10 billion at March 31, 2025, and retail certificates of deposit decreased $14.1 million, or 1.8%, to $761.7 million at March 31, 2025. The increase in transaction accounts was primarily a result of an increase in various money market accounts. Retail time deposits decreased due to a net decrease in retail certificates generated through the banking center network. Competition for time deposits has been, and remains, significant in many of our markets. Brokered deposits, including IntraFi program purchased funds, were $895.4 million and $772.1 million at March 31, 2025 and December 31, 2024, respectively. The Company uses brokered deposits of select maturities from time to time to supplement its various funding channels and to manage interest rate risk. The additional brokered deposits were used to repay some of the Company’s short-term borrowings.

Our deposit balances may fluctuate depending on customer preferences and our relative need for funding. We do not consider our retail certificates of deposit to be guaranteed long-term funding because customers can withdraw their funds at any time with minimal interest penalty. When loan demand trends upward, we can increase rates paid on deposits to attract more deposits and utilize brokered deposits to generate additional funding. The level of competition for deposits in our markets is high. It is our goal to gain deposit market share, particularly checking accounts, in our branch footprint. To accomplish this goal, increasing rates to attract deposits may be necessary, which could negatively impact the Company’s net interest margin.

Our ability to fund growth in future periods may also depend on our ability to continue to access brokered deposits and FHLBank advances. In times when our loan demand has outpaced our generation of new deposits, we have utilized brokered deposits and FHLBank advances to fund these loans. These funding sources have been attractive to us because we can create either fixed or variable rate funding, as desired, which more closely matches the interest rate nature of much of our loan portfolio. It also gives us greater flexibility in increasing or decreasing the duration of our funding. While we do not currently anticipate that our ability to access these sources will be reduced or eliminated in future periods, if this should happen, the limitation on our ability to fund additional loans could have a material adverse effect on our business, financial condition and results of operations. See “Results of Operations and Comparison for the Three Months Ended March 31, 2025 and 2024 – Liquidity” below for further information on funding sources.

Securities sold under reverse repurchase agreements with customers. Securities sold under reverse repurchase agreements with customers increased $10.9 million from $64.4 million at December 31, 2024 to $75.3 million at March 31, 2025. These balances fluctuate over time based on customer demand for this product.

Short-term borrowings and other interest-bearing liabilities. Short term borrowings and other interest-bearing liabilities decreased $154.3 million from $514.2 million at December 31, 2024 to $359.9 million at March 31, 2025, primarily due to the Company’s utilization of brokered deposits as an alternative source of funding. The Company may, from time to time, utilize overnight borrowings, short-term FHLBank advances, and borrowings from the Federal Reserve Bank of St. Louis (FRBSTL), depending on relative interest rates. The Company’s FHLBank term advances were $-0- at both March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, there was $359.0 million and $333.0 million, respectively, in overnight borrowings from the FHLBank, which were included in short term borrowings.

In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s Bank Term Funding Program (BTFP). The borrowing, which had a fixed interest rate of 4.83% and was secured primarily by the Bank’s held-to-maturity investment securities, was repaid in full upon maturity in January 2025.

Net Interest Income and Interest Rate Risk Management. Our net interest income may be affected positively or negatively by changes in market interest rates. A large portion of our loan portfolio is tied to one-month SOFR, three-month SOFR or the “prime rate” and adjusts immediately or shortly after the index rate adjusts (subject to the effect of contractual interest rate floors on some of the loans, which are discussed below). We monitor our sensitivity to interest rate changes on an ongoing basis (see “Quantitative and Qualitative Disclosures About Market Risk”).

The current level and shape of the interest rate yield curve poses challenges for interest rate risk management. Prior to its increase of 0.25% on December 16, 2015, the FRB had last changed interest rates on December 16, 2008. This was the first rate increase since September 29, 2006. The FRB also implemented rate increases of 0.25% on eight additional occasions from December 14, 2016 through December 31, 2018, with the Federal Funds rate reaching as high as 2.50%. After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions. At December 31, 2019, the Federal Funds rate stood at 1.75%. In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3rd and a 1.00% decrease on March 16th. At December 31, 2021, the Federal Funds rate was 0.25%. In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 0.50% in March, May, June, July, September, November and December 2022, respectively. At December 31, 2022, the Federal Funds rate was 4.50%. In 2023, the FRB implemented rate increases of 0.25%, 0.25%, 0.25% and 0.25% in February, March, May and July 2023, respectively. At December 31, 2023, the Federal Funds rate was 5.50%. In 2024, the FRB implemented rate decreases of 0.50%, 0.25%, and 0.25% in September, November, and December respectively. At December 31, 2024, the Federal Funds rate was 4.50%, and remained at that level at March 31, 2025. Financial markets now expect the possibility of further decreases in Federal Funds interest rates in 2025 to be likely, but at a methodical pace and with interest rate decisions being made at each FRB meeting based on economic data available at the time.

Great Southern’s loan portfolio includes loans ($1.64 billion at March 31, 2025) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after March 31, 2025. All of these loans have interest rate floors at various rates. Great Southern also has a portfolio of loans ($760.4 million at March 31, 2025) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest. All of these loans had interest rate floors at various rates. In addition, Great Southern has a portfolio of loans ($9.7 million at March 31, 2025) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the rate on this index. All of these loans had interest rate floors at various rates. At March 31, 2025, nearly all of these SOFR, AMERIBOR and “prime rate” loans had fully-indexed rates that were at or above their floor rate and so are expected to move fully with future market interest rate increases, and most are expected to move fully with future market interest rate decreases as many of these loans have floor rates well below their current index rate.

A rate cut by the FRB generally would be expected to have an immediate negative impact on the Company’s interest income on loans due to the large total balance of loans tied to the SOFR indexes or the “prime rate” index and will be subject to adjustment at least once within 90 days or loans which generally adjust immediately as the Federal Funds rate adjusts. Interest rate floors may at least partially mitigate the negative impact of interest rate decreases. Loans at their floor rates are, however, subject to the risk that borrowers will seek to refinance elsewhere at the lower market rate. There may also be a negative impact on the Company’s net interest income if the Company is unable to significantly lower its funding costs due to a highly competitive rate environment for deposits, although interest rates on assets may decline further. Conversely, market interest rate increases would normally result in increased interest rates on our SOFR-based, AMERIBOR-based and prime-based loans.

As of March 31, 2025, Great Southern’s interest rate risk models indicate that, generally, rising interest rates are expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates are expected to have a mostly neutral impact on net interest income. Any negative impact of a falling Federal Funds rate and other market interest rates also falling could be more pronounced if we are not able to decrease non-maturity deposit rates accordingly. We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates. The results of our modeling indicate that net interest income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon.

In a situation where market interest rates increase significantly in a short period of time, our net interest margin increase may be more pronounced in the very near term (first one to three months), due to fairly rapid increases in SOFR interest rates and “prime” interest rates. In a situation where market interest rates decrease significantly in a short period of time, as they did in March 2020, our net interest margin decrease may be more pronounced in the very near term (first one to three months), due to fairly rapid decreases in SOFR interest rates and “prime” interest rates. In the subsequent months, we would expect that net interest margin would stabilize and begin to improve, as renewal interest rates on maturing time deposits decrease.

Beginning in March 2022, market interest rates, including LIBOR interest rates, SOFR interest rates and “prime” interest rates, began to increase rapidly. This resulted in increasing loan yields and expansion of our net interest income and net interest margin throughout 2022 and into the first three months of 2023. In 2023, market interest rate increases moderated and loan yield increases moderated in line with market rates. However, there has been increased competition for deposits and other sources of funding, resulting in higher costs for those funds. This has been especially true since early March 2023. Deposit and other funding costs moderated a bit in late 2024 as the FRB cut the federal funds rate, but competition for deposits still remains significant in 2025. For further discussion of the processes used to manage our exposure to interest rate risk, see “Item 3. Quantitative and Qualitative Disclosures About Market Risk – How We Measure the Risks to Us Associated with Interest Rate Changes.”

Non-Interest Income and Non-Interest (Operating) Expenses. The Company’s profitability is also affected by the level of its non-interest income and operating expenses. Non-interest income consists primarily of service charges and ATM fees, POS interchange fees, late charges and prepayment fees on loans, gains on sales of loans and available-for-sale investments and other general operating income. Non-interest income may also be affected by the Company’s interest rate derivative activities. See Note 16 “Derivatives and Hedging Activities” in the Notes to Consolidated Financial Statements included in this report.

Operating expenses consist primarily of salaries and employee benefits, occupancy-related expenses, expenses related to foreclosed assets, postage, FDIC deposit insurance, advertising and public relations, telephone, professional fees, office expenses and other general operating expenses. Details of the current period changes in non-interest income and non-interest expense are provided below, under “Results of Operations and Comparison for the Three Months Ended March 31, 2025 and 2024.”

Effect of Federal Laws and Regulations

General. Federal legislation and regulation significantly affect the operations of the Company and the Bank, and have increased competition among commercial banks, savings institutions, mortgage banking enterprises and other financial institutions. In particular, the capital requirements and operations of regulated banking organizations such as the Company and the Bank have been and will be subject to changes in applicable statutes and regulations from time to time, which changes could, under certain circumstances, adversely affect the Company or the Bank.

Dodd-Frank Act. In 2010, sweeping financial regulatory reform legislation entitled the “Dodd-Frank Wall Street Reform and Consumer Protection Act” (the “Dodd-Frank Act”) was signed into law. The Dodd-Frank Act implemented far-reaching changes across the financial regulatory landscape. Certain aspects of the Dodd-Frank Act have been affected by the more recently enacted Economic Growth Act, as defined and discussed below under “Economic Growth Act.”

Capital Rules. The federal banking agencies have adopted regulatory capital rules that substantially amend the risk-based capital rules applicable to the Bank and the Company. The rules implement the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. “Basel III” refers to various documents released by the Basel Committee on Banking Supervision. For the Company and the Bank, the general effective date of the rules was January 1, 2015, and, for certain provisions, various phase-in periods and later effective dates apply. The chief features of these rules are summarized below.

The rules refine the definitions of what constitutes regulatory capital and add a new regulatory capital element, common equity Tier 1 capital. The minimum capital ratios are (i) a common equity Tier 1 (“CET1”) risk-based capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4%. In addition to the minimum capital ratios, the rules include a capital conservation buffer, under which a banking organization must have CET1 more than 2.5% above each of its minimum risk-based capital ratios in order to avoid restrictions on paying dividends, repurchasing shares, and paying certain discretionary bonuses. The capital conservation buffer became fully implemented on January 1, 2019.

These rules also revised the prompt corrective action framework, which is designed to place restrictions on insured depository institutions if their capital levels show signs of weakness. Under the revised prompt corrective action requirements, insured depository institutions are required to meet the following in order to qualify as “well capitalized:” (i) a common equity Tier 1 risk-based capital ratio of at least 6.5%, (ii) a Tier 1 risk-based capital ratio of at least 8%, (iii) a total risk-based capital ratio of at least 10% and (iv) a Tier 1 leverage ratio of 5%, and must not be subject to an order, agreement or directive mandating a specific capital level.

Economic Growth Act. In May 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (the “Economic Growth Act”), was enacted to modify or eliminate certain financial reform rules and regulations, including some implemented under the Dodd-Frank Act. While the Economic Growth Act maintains most of the regulatory structure established by the Dodd-Frank Act, it amends certain aspects of the regulatory framework for small depository institutions with assets of less than $10 billion and for large banks with assets of more than $50 billion. Many of these amendments could result in meaningful regulatory changes.

The Economic Growth Act, among other matters, expands the definition of qualified mortgages which may be held by a financial institution and simplifies the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single “Community Bank Leverage Ratio” (“CBLR”) of between 8 and 10 percent. Upon election, any qualifying depository institution or its holding company that exceeds the CBLR will be considered to have met generally applicable leverage and risk-based regulatory capital requirements and any qualifying depository institution that exceeds the CBLR will be considered “well-capitalized” under the prompt corrective action rules. Currently, the CBLR is 9.0%. To date, the Company and the Bank have chosen to not utilize the CBLR due to the Company’s size and complexity, including its commercial real estate and construction lending concentrations and significant off-balance sheet funding commitments.

In addition, the Economic Growth Act includes regulatory relief in the areas of examination cycles, call reports, mortgage disclosures and risk weights for certain high-risk commercial real estate loans.

Business Initiatives

Great Southern has previously reported certain issues and contractual disputes regarding its proposed conversion to a new core banking platform to be delivered by a third-party vendor. This ultimately led to Great Southern terminating the Master Agreement with the third-party vendor and initiating litigation against them, with the third-party vendor filing a counterclaim against Great Southern. As of May 1, 2025, the parties have executed a settlement agreement whereby, in pertinent part, the parties will jointly stipulate to a dismissal of all legal actions and the termination of the Master Agreement. Contemporaneously with this action, the

parties’ debit card servicing agreement has been extended. Great Southern had previously recorded an accrued expense for these matters in 2024. No additional material expenses are expected to be incurred in the settlement of this matter.

Technology updates and advancements continue with the Company’s current core provider. Projects involving a full array of products and services are moving forward, with completions expected beginning in the third quarter of 2025 and continuing into 2026.

During the three months ended March 31, 2025, the Company installed 10 ITM units in the St. Louis, Mo. market, replacing existing end-of-life ATM units. The ITMs, all located at banking center locations, offer customers live teller services, extended banking hours, and services beyond those traditionally available via an ATM.

In March 2025, the Company began construction of a new banking center at 723 N. Benton in Springfield, Mo., to replace the existing facility at that location. The new construction, designed as a next-generation banking center, will allow for flexibility in testing new designs, processes, technology and tools balanced with customer convenience. Construction is expected to be completed in the fourth quarter of 2025. During construction, customers are being served by a temporary facility on the property. The Company has 11 other banking centers and an Express Center in Springfield.

On April 30, 2025, the Company notified holders that it will redeem on June 15, 2025 (the “Redemption Date”) all of the Company’s outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030, having an aggregate principal amount of $75,000,000 (the “Subordinated Notes”), in accordance with the terms of the Subordinated Notes. The total redemption price will be 100% of the aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest to, but excluding, the Redemption Date. The Company will utilize excess cash on hand for the redemption payment. The annual combined interest expense and amortization of deferred issuance costs on the Subordinated Notes has been approximately $4.4 million.

Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company operates 89 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.”

Comparison of Financial Condition at March 31, 2025 and December 31, 2024

During the three months ended March 31, 2025, the Company’s total assets increased by $12.2 million to $5.99 billion. The increase was primarily in interest-bearing deposits in other financial institutions.

Cash and cash equivalents were $217.2 million at March 31, 2025, an increase of $21.4 million, or 10.9%, from $195.8 million at December 31, 2024.

The Company’s available-for-sale securities increased $2.5 million, or 0.5%, compared to December 31, 2024. The available-for-sale securities portfolio was 8.9% of total assets at March 31, 2025 and December 31, 2024. Monthly principal payments on investment securities were generally offset in the period by increases in market value of the available-for-sale securities.

The Company’s held-to-maturity securities decreased $1.5 million, or 0.8%, compared to December 31, 2024. The decrease was primarily due to normal monthly payments received related to the portfolio of mortgage-backed securities and collateralized mortgage obligations. The held-to-maturity securities portfolio was 3.1% of total assets at March 31, 2025 and December 31, 2024.

Net loans increased $243,000 from December 31, 2024, to $4.69 billion at March 31, 2025. This increase was primarily in other residential (multi-family) loans ($43.2 million increase) and construction loans ($29.1 million increase), partially offset by a decrease in commercial real estate loans ($54.4 million decrease) and one-to four-family residential loans ($10.3 million decrease). The decrease in commercial real estate loans was primarily related to a few large loan payoffs in 2025. The pipeline of unfunded loan commitments decreased slightly in the first quarter of 2025, primarily due to a decline related to construction loans. The unfunded portion of construction loans remained significant at March 31, 2025, notwithstanding this decline.

Total liabilities decreased $1.5 million from December 31, 2024, to $5.38 billion at March 31, 2025. This decrease was primarily due to the repayment of the BTFP borrowings in January 2025, mostly offset by an increase in transaction account deposits and brokered deposits.

Total deposits increased $152.5 million, or 3.3%, from $4.61 billion at December 31, 2024 to $4.76 billion at March 31, 2025. Transaction account balances increased $43.3 million, from $3.06 billion at December 31, 2024 to $3.10 billion at March 31, 2025.

Total interest-bearing checking accounts and non-interest bearing checking accounts increased $33.6 million and $9.7 million, respectively. Retail certificates of deposit decreased $14.1 million compared to December 31, 2024, to $761.7 million at March 31, 2025, due to competition for these types of deposits.

Brokered deposits increased $123.3 million to $895.4 million at March 31, 2025, compared to $772.1 million at December 31, 2024. Brokered deposits were utilized to offset reductions in other deposit categories and to repay BTFP borrowings. The Company has the capacity to further expand its use of brokered deposits if it chooses to do so. Of the total brokered deposits at March 31, 2025, $300.0 million were floating rate deposits, which adjust daily, based on the effective federal funds rate index. The Company also utilized brokered deposits with maturities within six months as part of its interest rate risk management strategies.

The Company’s term FHLBank advances were $-0- at both March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, there were no borrowings from the FHLBank, other than overnight borrowings, which are included in the short-term borrowings category. The Company may utilize both overnight borrowings and short-term FHLBank advances depending on relative interest rates.

Short-term borrowings and other interest-bearing liabilities decreased $154.3 million from $514.2 million at December 31, 2024 to $359.9 million at March 31, 2025. At March 31, 2025, $359.0 million of this total was in overnight borrowings from the FHLBank, which were used to fund loan originations and purchases of investment securities, compared to $333.0 million of overnight borrowings from the FHLBank at December 31, 2024. At March 31, 2025 and December 31, 2024, there was $-0- and $180.0 million, respectively, in BTFP borrowings. The BTFP borrowing, which had a fixed interest rate of 4.83%, was repaid in full upon maturity in January 2025.

Securities sold under reverse repurchase agreements with customers increased $10.9 million, or 16.9%, from $64.4 million at December 31, 2024 to $75.3 million at March 31, 2025. These balances fluctuate over time based on customer demand for this product.

Total stockholders’ equity increased $13.7 million, from $599.6 million at December 31, 2024 to $613.3 million at March 31, 2025. Stockholders’ equity increased due to net income of $17.2 million for the three months ended March 31, 2025 and rose by $1.2 million due to stock option exercises during the period. Accumulated other comprehensive loss (a reduction in equity) decreased $10.2 million during the three months ended March 31, 2025 (thereby increasing total stockholders’ equity), primarily due to increases in the fair value of available-for-sale investment securities and the fair value of cash flow hedges, as a result of decreased market interest rates. Partially offsetting these changes were repurchases of the Company’s common stock totaling $10.2 million and dividends declared on common stock of $4.6 million.

Comparison of Results of Operations for the Three Months Ended March 31, 2025 and 2024

General

Net income was $17.2 million for the three months ended March 31, 2025 compared to $13.4 million for the three months ended March 31, 2024. This increase of $3.8 million, or 28.0%, was primarily due to an increase in net interest income of $4.5 million, or 10.1%, and a decrease in provision for credit losses and unfunded commitments of $978,000, or 155.2%, partially offset by an increase in income tax expense of $1.1 million, or 35.6%, and an increase in non-interest expense of $400,000, or 1.2%.

Total Interest Income

Total interest income increased $2.9 million, or 3.7%, during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The increase was due to a $2.0 million, or 2.8%, increase in interest income on loans and an $858,000, or 13.6%, increase in interest income on investment securities and other interest-earning assets. These increases were due to higher average balances and higher average rates of interest.

Interest Income – Loans

During the three months ended March 31, 2025 compared to the three months ended March 31, 2024, interest income on loans increased $2.0 million. Higher average loan balances, which grew from $4.67 billion during the three months ended March 31, 2024, to $4.76 billion during the three months ended March 31, 2025, accounted for $1.1 million of the increase in interest income on loans. Since the end of 2022, loan originations and net loan growth have been muted; however, some loan growth has come as a result of the funding of previously approved but unfunded balances on construction loans and a slowdown in loan prepayments since 2023, due to higher market interest rates. Interest income on loans also increased $933,000 due to higher average interest rates on loans. The

average yield on loans increased from 6.13% during the three months ended March 31, 2024, to 6.23% during the three months ended March 31, 2025. This increase was primarily due to the addition of both fixed rate loans and floating rate loans at higher rates in the latter half of 2024 and the first quarter of 2025.

In October 2018, the Company entered into an interest rate swap transaction 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, is being accreted to interest income on loans monthly until the original termination date of October 6, 2025. After this date, the Company will no longer have the benefit of that income from the terminated swap. The Company recorded interest income related to the interest rate swap of $2.0 million in each of the three months ended March 31, 2025 and 2024. At March 31, 2025, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income ratably in future periods to October 6, 2025, after which no further interest income will be realized.

In March 2022, the Company entered into another interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $300 million, with a contractual termination date of March 1, 2024. Under the terms of the swap, the Company received a fixed rate of interest of 1.6725% and paid a floating rate of interest equal to one-month USD-LIBOR (or the equivalent replacement USD-SOFR rate once the USD-LIBOR rate ceased to be available). The floating rate was reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. To the extent that the fixed rate exceeded one-month USD-LIBOR/SOFR, the Company received net interest settlements, which were recorded as loan interest income. If one-month USD-LIBOR/SOFR exceeded the fixed rate of interest, the Company paid net settlements to the counterparty and recorded those net payments as a reduction of interest income on loans. The Company recorded a reduction of loan interest income related to this swap transaction of $1.9 million in the three months ended March 31, 2024. Since reaching its contractual termination date on March 1, 2024, there has been no further interest income impact related to this swap.

In July 2022, the Company entered into two additional interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of each swap is $200 million with an effective date of May 1, 2023 and a termination date of May 1, 2028. Under the terms of one swap, the Company receives a fixed rate of interest of 2.628% and pays a floating rate of interest equal to one-month USD-SOFR OIS. Under the terms of the other swap, the Company receives a fixed rate of interest of 5.725% and pays a floating rate of interest equal to one-month USD-Prime. In each case, the floating rate resets monthly and net settlements of interest due to/from the counterparty also occur monthly. To the extent the fixed rate of interest exceeds the floating rate of interest, the Company receives net interest settlements, which are recorded as loan interest income. If the floating rate of interest exceeds the fixed rate of interest, the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans. The Company recorded a reduction of loan interest income related to these swap transactions of $1.7 million and $2.8 million in the three months ended March 31, 2025 and 2024, respectively. At March 31, 2025, the USD-Prime rate was 7.50% and the one-month USD-SOFR OIS rate was 4.33365%.

If market interest rates remain near or above their current levels, the Company’s interest rate swaps will continue to have a negative impact on net interest income.

Interest Income – Investments and Other Interest-earning Assets

Interest income on investments increased $1.1 million in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Interest income increased $515,000 as a result of an increase in average balances from $669.7 million during the three months ended March 31, 2024, to $738.1 million during the three months ended March 31, 2025. Average balances of securities increased primarily due to investment securities purchases in 2024, partially offset by normal monthly payments received related to the portfolio of U.S. Government agency mortgage-backed securities and collateralized mortgage obligations. Interest income on investments also increased $549,000 as a result of higher average interest rates from 3.01% during the three months ended March 31, 2024, to 3.34% during the three months ended March 31, 2025. The securities purchased in 2024 had higher interest rates than the rest of the portfolio.

Interest income on other interest-earning assets decreased $206,000 in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Interest income decreased $275,000 as a result of lower average interest rates, which fell from 5.22% during the three months ended March 31, 2024, to 4.23% during the three months ended March 31, 2025. This decline in the average interest rate was directly attributable to the decrease in the federal funds rate in the latter portion of 2024. Partially offsetting this decrease, interest income increased $69,000 as a result of an increase in average balances from $100.5 million during the three months ended March 31, 2024, to $105.3 million during the three months ended March 31, 2025.

Total Interest Expense

Total interest expense decreased $1.7 million, or 5.1%, during the three months ended March 31, 2025, when compared with the three months ended March 31, 2024, due to a decrease in interest expense on deposits of $3.0 million, or 11.0%, and a decrease in interest expense on subordinated debentures issued to capital trusts of $72,000, or 15.9%, partially offset by an increase in interest expense on short-term borrowings of $1.4 million, or 46.2%, and an increase in interest expense on securities sold under reverse repurchase agreements of $38,000, or 11.4%.

Interest Expense – Deposits

Interest expense on demand and savings deposits decreased $1.7 million due to average rates of interest that decreased from 1.71% in the three months ended March 31, 2024 to 1.42% in the three months ended March 31, 2025. Interest rates paid on demand deposits were lower in the 2025 period due to the Company strategically lowering rates throughout 2024 and into early 2025 to align with market rates. Interest expense on demand deposits decreased $10,000, due to a decrease in average balances from $2.224 billion in the three months ended March 31, 2024, to $2.221 billion in the three months ended March 31, 2025.

Interest expense on time deposits decreased $1.5 million due to a decrease in average balances of time deposits from $937.7 million during the three months ended March 31, 2024 to $772.1 million in the three months ended March 31, 2025. Interest expense on time deposits decreased $902,000 as a result of a decrease in average rates of interest from 3.93% in the three months ended March 31, 2024, to 3.53% in the three months ended March 31, 2025. A large portion of the Company’s certificate of deposit portfolio matures within six months and therefore reprices fairly quickly; this is consistent with the portfolio term over the past several years. Competition for time deposits remains significant in our market areas, and upon maturity, a portion of these deposits were redeemed by customers.

Interest expense on brokered deposits increased $1.9 million due to an increase in average balances from $688.8 million during the three months ended March 31, 2024 to $892.6 million during the three months ended March 31, 2025. Partially offsetting this increase, interest expense on brokered deposits decreased $824,000 due to average rates of interest that decreased from 5.25% in the three months ended March 31, 2024 to 4.58% in the three months ended March 31, 2025. Brokered deposits added in 2024 and the first quarter of 2025 were at lower market rates than brokered deposits previously issued. The Company uses brokered deposits of select maturities and interest rate structures from time to time to supplement its various funding channels and to manage interest rate risk.

Interest Expense – FHLBank Advances; Short-term Borrowings, Repurchase Agreements and Other Interest-bearing Liabilities; Subordinated Debentures Issued to Capital Trusts and Subordinated Notes

FHLBank term advances were not utilized during the three months ended March 31, 2025 and 2024.

Interest expense on reverse repurchase agreements increased $33,000 due to higher average balances. The average balance of repurchase agreements increased from $74.5 million in the three months ended March 31, 2024 to $82.4 million in the three months ended March 31, 2025, due to changes in customers’ desire for this product, which can fluctuate. Interest expense on reverse repurchase agreements increased $5,000 due to higher average interest rates during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. The average rate of interest was 1.80% for the three months ended March 31, 2024 compared to 1.83% for the three months ended March 31, 2025, due to changes in the mix of customer balances in these products.

Interest expense on short-term borrowings (including overnight borrowings from the FHLBank and BTFP borrowings from FRBSTL) and other interest-bearing liabilities increased $1.7 million due to higher average balances during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. The average balance of short-term borrowings and other interest-bearing liabilities increased from $241.6 million in the three months ended March 31, 2024 to $392.6 million in the three months ended March 31, 2025, primarily in order to help fund increases in the Company’s balances of loans and investment securities, which caused a change in the amount and mix of funding. Partially offsetting this increase, interest expense on short-term borrowings (including overnight borrowings from the FHLBank and BTFP borrowings from FRBSTL) and other interest-bearing liabilities decreased $246,000 due to lower average rates of interest during the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. The average rate of interest was 5.07% for the three months ended March 31, 2024, compared to 4.60% for the three months ended March 31, 2025. Interest rates on borrowings decreased in the latter portion of 2024 after the federal funds rate was cut by 100 basis points from September to December 2024.

During the three months ended March 31, 2025, compared to the three months ended March 31, 2024, interest expense on subordinated debentures issued to capital trusts decreased $72,000 due to lower average interest rates. The average interest rate was 6.01% in the three months ended March 31, 2025 compared to 7.08% in the three months ended March 31, 2024. The subordinated debentures are variable-rate debentures, which bear interest at an average rate of three-month SOFR (originally LIBOR), plus 1.60%, adjusted quarterly, which was 6.15% at March 31, 2025. There was no change in the average balance of the subordinated debentures between the 2024 and 2025 three-month periods.

In June 2020, the Company issued $75.0 million of 5.50% fixed-to-floating rate subordinated notes due June 15, 2030. The notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions and other issuance costs, of approximately $73.5 million. These issuance costs are amortized over the expected life of the notes, which is five years from the issuance date, impacting the overall interest expense on the notes. There was no material change in interest expense on subordinated notes between the 2024 and 2025 three-month periods. On April 30, 2025, the Company reported that it will redeem at par all $75.0 million of the subordinated notes on June 15, 2025. For additional information, see “-Business Initiatives.”

Net Interest Income

Net interest income for the three months ended March 31, 2025 increased $4.5 million to $49.3 million, compared to $44.8 million for the three months ended March 31, 2024. Net interest margin was 3.57% in the three months ended March 31, 2025, compared to 3.32% in the three months ended March 31, 2024, an increase of 25 basis points, or 7.5%. The Company experienced increases in interest income on loans and investment securities, decreases in interest expense on deposits and subordinated debentures issued to capital trust, and increases in interest expense on short-term borrowings and securities sold under reverse repurchase agreements with customers.

The Company’s overall average interest rate spread increased 34 basis points, or 13.1%, from 2.66% during the three months ended March 31, 2024 to 3.00% during the three months ended March 31, 2025. The increase was due to a 26 basis point decrease in the weighted average rate paid on interest-bearing liabilities and an eight basis point increase in the weighted average yield earned on interest-earning assets. In comparing the two periods, the yield on loans increased 10 basis points, the yield on investment securities increased 33 basis points and the yield on other interest-earning assets decreased 99 basis points. The rate paid on deposits decreased 32 basis points, the rate paid on reverse repurchase agreements increased three basis points, the rate paid on short-term borrowings and other interest-bearing liabilities decreased 47 basis points and the rate paid on subordinated debentures issued to capital trust decreased 107 basis points. Interest rates earned on loans and paid on deposits are affected by the mix of the loan and deposit portfolios, the stated maturity of loans and time deposits, the amount of fixed-rate and variable-rate loans and other repricing characteristics. In 2023, overall competition for deposits intensified as a few banks experienced significant liquidity issues in March and April 2023 and market rates moved higher more rapidly. Overall competition for deposits remained elevated in 2024 and market interest rates were higher in 2024, until the federal funds rate was reduced in late 2024. This resulted in lower market interest rates into the first quarter of 2025.

For additional information on net interest income components, refer to the “Average Balances, Interest Rates and Yields” tables in this Quarterly Report on Form 10-Q.

Provision for and Allowance for Credit Losses

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as changes in underwriting standards, portfolio mix and delinquency level or term, as well as for changes in economic conditions, including but not limited to, changes in the national unemployment rate, commercial real estate price index, consumer sentiment, gross domestic product (GDP) and construction spending.

Challenging or worsening economic conditions from higher inflation or interest rates, COVID-19 and subsequent variant outbreaks or similar events, global unrest or other factors may lead to increased losses in the portfolio and/or requirements for an increase in provision expense. Management maintains various controls in an attempt to identify and limit future losses, such as a watch list of problem loans and potential problem loans, documented loan administration policies and loan review staff to review the quality and anticipated collectability of the portfolio. Additional procedures provide for frequent management review of the loan portfolio based on loan size, loan type, delinquencies, financial analysis, ongoing correspondence with borrowers and problem loan workouts. Management determines which loans are non-homogeneous or collateral-dependent, evaluates risk of loss and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level.

During the three months ended March 31, 2025, the Company did not record a provision expense on its portfolio of outstanding loans. During the three months ended March 31, 2024, the Company recorded provision expense of $500,000 on its portfolio of outstanding loans. Net charge-offs were $56,000 for the three months ended March 31, 2025, compared to net charge-offs of $83,000 in the three months ended March 31, 2024. The provision for losses on unfunded commitments for the three months ended March 31, 2025 was a negative provision of $348,000, compared to a provision expense of $130,000 for the three months ended March 31, 2024. General market conditions and unique circumstances related to specific industries and individual projects contribute to the determination of the levels of provisions and charge-offs in each period.

The Bank’s allowance for credit losses as a percentage of total loans was 1.36% at both March 31, 2025 and December 31, 2024. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at March 31, 2025, based on recent reviews of the Bank’s loan 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 loss may be required, which could adversely impact the Company’s future results of operations and financial condition.

Non-performing Assets

As a result of changes in loan portfolio composition, changes in economic and market conditions and other factors specific to a borrower’s circumstances, the level of non-performing assets will fluctuate.

At March 31, 2025, non-performing assets were $9.5 million, a decrease of $48,000 from $9.6 million at December 31, 2024. Non-performing assets as a percentage of total assets were 0.16% at both March 31, 2025 and December 31, 2024.

Compared to December 31, 2024, non-performing loans decreased $91,000, to $3.5 million at March 31, 2025. Compared to December 31, 2024, foreclosed assets increased $43,000 to $6.0 million at March 31, 2025.

Non-performing Loans. Activity in the non-performing loans category during the three months ended March 31, 2025 was as follows:


							Transfers to		Transfers to
	Beginning		Additions		Removed		Potential		Foreclosed						Ending
	Balance,		to Non-		from Non-		Problem		Assets and		Charge-				Balance,
	January 1		Performing		Performing		Loans		Repossessions		Offs		Payments		March 31

	(In Thousands)
One- to four-family construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—		—		—		—		—
Land development		464		—		—		—		—		—		(96)		368
Commercial construction		—		—		—		—		—		—		—		—
One- to four-family residential		2,631		473		—		—		—		—		(28)		3,076
Other residential (multi-family)		—		—		—		—		—		—		—		—
Commercial real estate		77		—		—		—		(77)		—		—		—
Commercial business		384		—		—		—		—		(135)		(249)		—
Consumer		17		24		—		—		—		—		(3)		38
Total non-performing loans	$	3,573	$	497	$	—	$	—	$	(77)	$	(135)	$	(376)	$	3,482

At March 31, 2025, the non-performing one- to four-family residential category included nine loans, two of which were added during the three months ended March 31, 2025. The largest relationship in the category totaled $884,000, or 28.7% of the category, and was added to non-performing loans in 2024. It is collateralized by a single-family residential property in the Buffalo, N.Y. area. The non-performing land development category consisted of one loan added in 2024, which totaled $368,000 and is collateralized by improved commercial land in the Omaha, Neb. area. The non-performing consumer category included four loans, two of which were added in the three months ended March 31, 2025.

Potential Problem Loans. Potential problem loans increased $390,000, to $7.5 million at March 31, 2025 from $7.1 million at December 31, 2024. Potential problem loans are loans which management has identified through routine internal review procedures as having possible credit problems that may cause the borrowers difficulty in complying with the current repayment terms. These loans are not reflected in non-performing assets.

Activity in the potential problem loans category during the three months ended March 31, 2025 was as follows:


					Removed				Transfers to
	Beginning		Additions		from		Transfers to		Foreclosed				Loan		Ending
	Balance,		to Potential		Potential		Non-		Assets and		Charge-		Advances		Balance,
	January 1		Problem		Problem		Performing		Repossessions		Offs		(Payments)		March 31

	(In Thousands)
One- to four-family construction	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—		—		—		—		—
Land development		—		—		—		—		—		—		—		—
Commercial construction		—		—		—		—		—		—		—		—
One- to four-family residential		1,202		1,099		(151)		—		—		(9)		(13)		2,128
Other residential (multi-family)		—		—		—		—		—		—		—		—
Commercial real estate		4,331		—		—		—		—		—		(18)		4,313
Commercial business		—		—		—		—		—		—		—		—
Consumer		1,529		138		(642)		—		—		—		(14)		1,011
Total potential problem loans	$	7,062	$	1,237	$	(793)	$	—	$	—	$	(9)	$	(45)	$	7,452

At March 31, 2025, the commercial real estate category of potential problem loans included three loans, all of which are part of one relationship and were added to potential problem loans in 2024. This relationship is collateralized by three nursing care facilities located in southwest Missouri. The borrower’s business cash flow was negatively impacted by a reduction in labor participation and increased operating costs, as well as ongoing changes to the Missouri Medicaid reimbursement rate. Monthly payments were made timely prior to the transfer to this category and have continued to be paid timely. The one- to four-family residential category of potential problem loans included 12 loans, one of which was added to potential problem loans during the three months ended March 31, 2025 and one of which was transferred from the consumer category (the loan was drawn on a home equity line of credit) during the three months ended March 31, 2025. The largest relationship in the one- to four-family category of potential problem loans, mentioned above as the loan transferred from the consumer category, totaled $966,000 and is collateralized by a single-family residential property in the Orlando. Fla. area. The consumer category of potential problem loans included 16 loans, six of which were added at during the three months ended March 31, 2025. The largest loan in the consumer category of potential problem loans is a home equity loan, totaling $748,000, related to the nursing care facility relationship, noted above.

Other Real Estate Owned and Repossessions. All of the $6.0 million of other real estate owned and repossessions at March 31, 2025 were acquired through foreclosure.

Activity in foreclosed assets and repossessions during the three months ended March 31, 2025 was as follows:


	Beginning				ORE and				ORE and		Ending
	Balance,				Repossession		Capitalized		Repossession		Balance,
	January 1		Additions		Sales		Costs		Write-Downs		March 31

	(In Thousands)
One-to four-family construction	$	—	$	—	$	—	$	—	$	—	$	—
Subdivision construction		—		—		—		—		—		—
Land development		—		—		—		—		—		—
Commercial construction		—		—		—		—		—		—
One- to four-family residential		—		—		—		—		—		—
Other residential (multi-family)		—		—		—		—		—		—
Commercial real estate		5,960		76		—		—		—		6,036
Commercial business		—		—		—		—		—		—
Consumer		33		2		(35)		—		—		—
Total foreclosed assets and repossessions	$	5,993	$	78	$	(35)	$	—	$	—	$	6,036

At March 31, 2025, the commercial real estate category of foreclosed assets consisted of two foreclosed properties, one of which was an office building in Clayton, Mo. that was transferred from non-performing loans during the three months ended December 31, 2024. The additions and sales in the consumer category were due to the volume of repossessions of automobiles, which generally are subject to a shorter repossession process.

Loans Classified “Watch” and “Special Mention”

The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Multiple loan reviews take place on a continuous basis by credit risk and lending management. Reviews are focused on financial performance, occupancy trends, delinquency status, covenant compliance, collateral support, economic considerations and various other factors. Loans classified as “Watch” are being monitored due to indications of potential weaknesses or deficiencies that may require future reclassification as special mention or substandard. Loans classified as “Watch” increased $10.7 million, from $15.9 million at December 31, 2024 to $26.6 million at March 31, 2025, primarily due to the addition of one loan totaling $11.0 million that is secured by a nursing care facility located in southwest Florida. The loan was downgraded due to the borrower’s financial performance and delinquent taxes (which have since been paid). While loans classified as “Special Mention” are not adversely classified, they are deserving of management’s close attention to ensure repayment prospects and that the credit positions of the assets do not deteriorate and expose the institution to elevated risk, which might warrant adverse classification at a future date. In the three months ended March 31, 2025, loans classified as “Special Mention” decreased $26,000, to $1.4 million. See Note 6 “Loans and Allowance for Credit Losses” in the Notes to Consolidated Financial Statements included in this report for further discussion of the Company’s loan grading system.

Non-interest Income

For the three months ended March 31, 2025, non-interest income decreased $216,000, to $6.6 million, when compared to the three months ended March 31, 2024. None of the components of non-interest income experienced increases or decreases exceeding $200,000 in comparing the two periods.

Non-interest Expense

For the three months ended March 31, 2025, non-interest expense increased $400,000, to $34.8 million, when compared to the three months ended March 31, 2024, primarily as a result of the following items:

Net occupancy and equipment expenses: Net occupancy and equipment expenses increased $694,000, or 8.9%, from the prior-year period. This increase was primarily related to various components of computer license and support expenses related to upgrades of core systems capabilities and collectively increased by $322,000 in the three months ended March 31, 2025 compared to the same period in 2024. In addition, parking lot maintenance expenses, primarily related to above normal snow removal activity, collectively increased by $232,000 in the three months ended March 31, 2025 compared to the same period in 2024.

Salaries and employee benefits: Salaries and employee benefits increased $473,000, or 2.4%, in the three months ended March 31, 2025 compared to the prior-year period. Much of this increase related to normal annual merit increases in various lending and operations areas.

Legal, audit and other professional fees: Legal, audit and other professional fees decreased $687,000 in the three months ended March 31, 2025 compared to the same period in 2024, to $1.0 million. In the three months ended March 31, 2024, the Company expensed a total of $929,000 related to training and implementation costs for the then-anticipated core systems conversion and professional fees to consultants engaged to support the Company’s proposed related transition of core and ancillary software and information technology systems, with no such costs expensed in the three months ended March 31, 2025.

The Company’s efficiency ratio for the three months ended March 31, 2025, was 62.27% compared to 66.68% for the same period in 2024. The Company’s ratio of non-interest expense to average assets was 2.34% for the three months ended March 31, 2025 compared to 2.39% for the three months ended March 31, 2024. Average assets for the three months ended March 31, 2025, increased $200.2 million, or 3.5%, compared to the three months ended March 31, 2024, primarily due to growth in average balances of net loans receivable and investment securities.

Provision for Income Taxes

For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was 20.0% and 19.1%, respectively. These effective rates were below the statutory federal tax rate of 21%, due primarily to the utilization of certain investment tax credits and the Company’s tax-exempt investments and tax-exempt loans. 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 20.0% in future periods.

Average Balances, Interest Rates and Yields

The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Average balances of loans receivable include the average balances of nonaccrual loans for each period. Interest income on loans includes interest received on nonaccrual loans on a cash basis. Interest income on loans also includes the amortization of net loan fees, which were deferred in accordance with accounting standards. Net loan fees included in interest income were $970,000 and $1.2 million for the three months ended March 31, 2025 and 2024, respectively. Tax-exempt income was not calculated on a tax equivalent basis. The tables do not reflect any effect of income taxes.


	March 31,		Three Months Ended							Three Months Ended
	2025		March 31, 2025							March 31, 2024
	Yield/		Average					Yield/		Average					Yield/
	Rate		Balance			Interest		Rate		Balance			Interest		Rate

	(Dollars in Thousands)
Interest-earning assets:
Loans receivable:
One- to four-family residential	4.18	%	$	830,615		$	8,568	4.18	%	$	889,969		$	8,697	3.93	%
Other residential (multi-family)	6.86			1,546,209			26,450	6.94			959,975			16,858	7.06
Commercial real estate	6.12			1,510,432			23,015	6.18			1,499,641			22,768	6.11
Construction	7.08			490,586			8,652	7.15			856,571			15,844	7.44
Commercial business(1)	6.03			211,791			3,822	7.32			286,074			4,609	6.48
Other loans	6.41			166,424			2,564	6.25			173,636			2,300	5.33

Total loans receivable	6.13			4,756,057			73,071	6.23			4,665,866			71,076	6.13

Investment securities(1)	3.12			738,122			6,074	3.34			669,680			5,010	3.01
Interest-earning deposits in other banks	4.33			105,286			1,098	4.23			100,503			1,304	5.22

Total interest-earning assets	5.73			5,599,465			80,243	5.81			5,436,049			77,390	5.73
Non-interest-earning assets:
Cash and cash equivalents				100,558							90,474
Other non-earning assets				262,490							235,817
Total assets			$	5,962,513						$	5,762,340

Interest-bearing liabilities:
Interest-bearing demand and savings	1.37		$	2,221,475			7,797	1.42		$	2,223,780			9,482	1.71
Time deposits	3.47			772,054			6,714	3.53			937,720			9,165	3.93
Brokered deposits	4.46			892,611			10,089	4.58			688,820			8,990	5.25
Total deposits	2.49			3,886,140			24,600	2.57			3,850,320			27,637	2.89
Securities sold under reverse repurchase agreements	2.09			82,400			371	1.83			74,468			333	1.80
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities	4.53			392,646			4,450	4.60			241,591			3,044	5.07
Subordinated debentures issued to capital trusts	6.15			25,774			382	6.01			25,774			454	7.08
Subordinated notes	5.90			74,919			1,106	5.99			74,619			1,106	5.96

Total interest-bearing liabilities	2.73			4,461,879			30,909	2.81			4,266,772			32,574	3.07
Non-interest-bearing liabilities:
Demand deposits				821,759							854,849
Other liabilities				71,360							67,879
Total liabilities				5,354,998							5,189,500
Stockholders’ equity				607,515							572,840
Total liabilities and stockholders’ equity			$	5,962,513						$	5,762,340

Net interest income:						$	49,334						$	44,816
Interest rate spread	3.00	%						3.00	%						2.66	%
Net interest margin*								3.57	%						3.32	%
Average interest-earning assets to average interest-bearing liabilities				125.5	%						127.4	%

* Defined as the Company’s net interest income divided by total average interest-earning assets.

(1)

Of the total average balances of investment securities, average tax-exempt investment securities were $55.0 million and $57.6 million for the three months ended March 31, 2025 and 2024, respectively. In addition, average tax-exempt loans and industrial revenue bonds were $10.0 million and $11.4 million for the three months ended March 31, 2025 and 2024, respectively. Interest income on tax-exempt assets included in this table was $547,000 and $568,000 for the three months ended March 31, 2025 and 2024, respectively. Interest income net of disallowed interest expense related to tax-exempt assets was $458,000 and $460,000 for the three months ended March 31, 2025 and 2024, respectively.

Rate/Volume Analysis

The following table presents the dollar amounts of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities for the periods shown. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (i) changes in rate (i.e., changes in rate multiplied by old volume) and (ii) changes in volume (i.e., changes in volume multiplied by old rate). For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately to volume and rate. Tax-exempt income was not calculated on a tax equivalent basis.


	Three Months Ended March 31,
	2025 vs. 2024
	Increase (Decrease)				Total
	Due to				Increase
	Rate		Volume		(Decrease)

	(Dollars in Thousands)
Interest-earning assets:
Loans receivable	$	933	$	1,062	$	1,995
Investment securities		549		515		1,064
Interest-earning deposits in other banks		(275)		69		(206)
Total interest-earning assets		1,207		1,646		2,853
Interest-bearing liabilities:
Demand deposits		(1,675)		(10)		(1,685)
Time deposits		(902)		(1,549)		(2,451)
Brokered deposits		(824)		1,923		1,099
Total deposits		(3,401)		364		(3,037)
Securities sold under reverse repurchase agreements		5		33		38
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities		(246)		1,652		1,406
Subordinated debentures issued to capital trust		(72)		—		(72)
Subordinated notes		—		—		—
Total interest-bearing liabilities		(3,714)		2,049		(1,665)
Net interest income	$	4,921	$	(403)	$	4,518

Liquidity

Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations in a timely manner through either the sale or maturity of existing assets or the acquisition of additional funds through liability management. These obligations include the credit needs of customers, funding deposit withdrawals, and the day-to-day operations of the Company. Liquid assets include cash, interest-bearing deposits with financial institutions and certain investment securities and loans. As a result of the Company’s ability to generate liquidity primarily through liability funding, management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its borrowers’ credit needs. At March 31, 2025, the Company had commitments of approximately $56.3 million to fund loan originations, $1.15 billion of unused lines of credit and unadvanced loans, and $17.6 million of outstanding letters of credit.

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


	March 31,		December 31,		December 31,		December 31,		December 31,
	2025		2024		2023		2022		2021
Closed non-construction loans with unused available lines
Secured by real estate (one- to four-family)	$	211,119	$	205,599	$	203,964	$	199,182	$	175,682
Secured by real estate (not one- to four-family)		—		—		—		—		23,752
Not secured by real estate - commercial business		106,211		106,621		82,435		104,452		91,786

Closed construction loans with unused available lines
Secured by real estate (one-to four-family)		96,807		94,501		101,545		100,669		74,501
Secured by real estate (not one-to four-family)		657,828		703,947		719,039		1,444,450		1,092,029

Loan commitments not closed
Secured by real estate (one-to four-family)		19,264		14,373		12,347		16,819		53,529
Secured by real estate (not one-to four-family)		50,296		53,660		48,153		157,645		146,826
Not secured by real estate - commercial business		18,484		22,884		11,763		50,145		12,920

	$	1,160,009	$	1,201,585	$	1,179,246	$	2,073,362	$	1,671,025

The Company’s primary sources of funds are customer deposits, brokered deposits, short-term borrowings at the FHLBank, 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 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, when believed to be appropriate, supplements deposits with less expensive alternative sources of funds. In mid-2022, the Company steadily began increasing the interest rates it paid on many deposit products until September 2024 when the Company decreased the interest rates it paid on certain deposit products. The Company has also utilized both fixed-rate and floating-rate brokered deposits of varying terms, as well as overnight FHLBank borrowings.

At March 31, 2025 and December 31, 2024, the Company had the following available secured lines and on-balance sheet liquidity:


	March 31,		December 31,
	2025		2024
Federal Home Loan Bank line	$	1,172.6 million	$	1,058.8 million
Federal Reserve Bank line		370.5 million		346.4 million
Cash and cash equivalents		217.2 million		195.8 million
Unpledged securities – Available-for-sale		312.9 million		329.9 million
Unpledged securities – Held-to-maturity		24.5 million		25.0 million

Statements of Cash Flows. The Company had positive cash flows from operating activities during the three months ended March 31, 2025 and negative cash flows from operating activities during the three months ended March 31, 2024. During the three months ended March 31, 2025 and 2024, the Company had positive cash flows from investing activities and negative cash flows from financing activities.

Cash flows from operating activities for the periods covered by the Statements of Cash Flows have been primarily related to changes in accrued and deferred assets, credits and other liabilities, the provision for credit losses, depreciation and amortization, realized gains on sales of loans and the amortization of deferred loan origination fees and discounts (premiums) on loans and investments, all of which are non-cash or non-operating adjustments to operating cash flows. Net income adjusted for non-cash and non-operating items and the origination and sale of loans held for sale were the primary source of cash flows from operating activities. Operating activities provided cash of $15.0 million and used cash of $26.9 million during the three months ended March 31, 2025 and 2024, respectively.

During the three months ended March 31, 2025 and 2024, investing activities provided cash of $9.4 million and $13.5 million, respectively. Investing activities in the 2025 and 2024 periods provided cash primarily due to principal payments received on investment securities.

Changes in cash flows from financing activities during the periods covered by the Statements of Cash Flows were due primarily to changes in deposits after interest credited and changes in short-term borrowings, as well as advances from borrowers for taxes and insurance, dividend payments to stockholders and repurchases of the Company’s common stock. During the three months ended March 31, 2025 and 2024, financing activities used cash of $3.0 million and $26.5 million, respectively. In the 2024 period, financing activities used cash primarily as a result of net repayments of short-term borrowings, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by increases in FRB borrowings and net increases in checking and savings deposits. In the 2025 period, financing activities used cash primarily as a result of repayments of FRB borrowings, repurchases of the Company’s common stock and dividends paid to stockholders, partially offset by net increases in time deposits and checking and savings deposits and net increases in short-term borrowings.

Capital Resources

Management continuously reviews the capital position of the Company and the Bank to ensure compliance with minimum regulatory requirements, as well as to explore ways to increase capital either by retained earnings or other means.

At March 31, 2025, the Company’s total stockholders’ equity was $613.3 million, or 10.2% of total assets, equivalent to a book value of $53.03 per common share. As of December 31, 2024, total stockholders’ equity was $599.6 million, or 10.0% of total assets, equivalent to a book value of $51.14 per common share. At March 31, 2025, the Company’s tangible common equity to tangible assets ratio was 10.1%, compared to 9.9% at December 31, 2024 (See Non-GAAP Financial Measures below).

Included in stockholders’ equity at March 31, 2025 and December 31, 2024, were unrealized losses (net of taxes) on the Company’s available-for-sale investment securities totaling $38.5 million and $46.1 million, respectively. This change in net unrealized losses primarily resulted from decreased intermediate-term market interest rates in the three months ended March 31, 2025, which generally increased the fair value of the investment securities.

In addition, included in stockholders’ equity at March 31, 2025, were realized gains (net of taxes) on the Company’s terminated cash flow hedge (interest rate swap), totaling $3.3 million. This amount, plus associated deferred taxes, is expected to be accreted to interest income over the remaining term of the original interest rate swap contract, which was to end in October 2025. At March 31, 2025, the remaining pre-tax amount to be recorded in interest income was $4.2 million. The net effect on total stockholders’ equity over time will be no impact, as the reduction of this realized gain will be offset by an increase in retained earnings (as the interest income flows through pre-tax income).

Also included in stockholders’ equity at March 31, 2025, was an unrealized loss (net of taxes) on the Company’s two outstanding cash flow hedges (interest rate swaps) totaling $8.6 million. Increases in market interest rates since the inception of these hedges have caused their fair values to decrease. The unrealized loss position on these swaps improved substantially in the three months ended March 31, 2025, due to a decline in market interest rates in that period.

As noted above, total stockholders’ equity increased $13.7 million, from $599.6 million at December 31, 2024 to $613.3 million at March 31, 2025. Total stockholders’ equity increased due to net income of $17.2 million in the three months ended March 31, 2025, a $1.2 million increase in stockholders’ equity during that period due to stock option exercises and a decrease in accumulated other comprehensive loss of $10.2 million during that period primarily due to increases in the fair value of cash flow hedges and available-for-sale investment securities mainly because of a decrease in market interest rates. Partially offsetting these changes were repurchases of the Company’s common stock during the three months ended March 31, 2025 totaling $10.2 million and dividends declared on common stock during that period of $4.6 million.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $20.6 million and $24.7 million at March 31, 2025 and December 31, 2024 respectively, that were not included in its total capital balance. If held-to-maturity unrealized losses were included in capital (net of taxes), at March 31, 2025, they would have decreased total stockholder’s equity at that date by $15.6 million. This amount was equal to 2.5% of total stockholders’ equity of $613.3 million at March 31, 2025, compared to 3.1% of total stockholders’ equity of $599.6 million at December 31, 2024.

Banks are required to maintain minimum risk-based capital ratios. These ratios compare capital, as defined by the risk-based regulations, to assets adjusted for their relative risk as defined by the regulations. Under current guidelines, banks must have a minimum common equity Tier 1 capital ratio of 4.50%, a minimum Tier 1 risk-based capital ratio of 6.00%, a minimum total risk-based capital ratio of 8.00%, and a minimum Tier 1 leverage ratio of 4.00%. To be considered “well capitalized,” banks must have a minimum common equity Tier 1 capital ratio of 6.50%, a minimum Tier 1 risk-based capital ratio of 8.00%, a minimum total risk-based capital ratio of 10.00%, and a minimum Tier 1 leverage ratio of 5.00%. On March 31, 2025, the Bank’s common equity Tier 1 capital ratio was 12.7%, its Tier 1 capital ratio was 12.7%, its total capital ratio was 13.9% and its Tier 1 leverage ratio was 11.1%. As a result, as of March 31, 2025, the Bank was well capitalized, with capital ratios in excess of those required to qualify as such. On December 31, 2024, the Bank’s common equity Tier 1 capital ratio was 12.6%, its Tier 1 capital ratio was 12.6%, its total capital ratio was 13.9% and its Tier 1 leverage ratio was 11.0%. As a result, as of December 31, 2024, the Bank was well capitalized, with capital ratios in excess of those required to qualify as such.

The FRB has established capital regulations for bank holding companies that generally parallel the capital regulations for banks. On March 31, 2025, the Company’s common equity Tier 1 capital ratio was 12.4%, its Tier 1 capital ratio was 12.9%, its total capital ratio was 15.6% and its Tier 1 leverage ratio was 11.3%. On December 31, 2024, the Company’s common equity Tier 1 capital ratio was 12.3%, its Tier 1 capital ratio was 12.8%, its total capital ratio was 15.4% and its Tier 1 leverage ratio was 11.2%.

In addition to the minimum common equity Tier 1 capital ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio, the Company and the Bank have to maintain a capital conservation buffer consisting of additional common equity Tier 1 capital greater than 2.5% of risk-weighted assets above the required minimum levels in order to avoid limitations on paying dividends, repurchasing shares, and paying discretionary bonuses. At March 31, 2025 and December 31, 2024, both the Company and the Bank had a capital conservation buffer that exceeded the required minimum levels.

On April 30, 2025, the Company notified holders that it will redeem on June 15, 2025 (the “Redemption Date”) all of the Company’s outstanding 5.50% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030, having an aggregate principal amount of $75,000,000 (the “Subordinated Notes”), in accordance with the terms of the Subordinated Notes. The total redemption price will be 100% of the aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest to, but excluding, the Redemption Date. The Company will utilize excess cash on hand for the redemption payment. The annual combined interest expense and amortization of deferred issuance costs on the Subordinated Notes has been approximately $4.4 million.

Dividends. During the three months ended March 31, 2025, the Company declared a common stock cash dividend of $0.40 per share, or 27% of net income per diluted common share for that three month period, and paid a common stock cash dividend of $0.40 per share (which was declared in December 2024). During the three months ended March 31, 2024, the Company declared a common stock cash dividend of $0.40 per share, or 35% of net income per diluted common share for that three month period, and paid a common stock cash dividend of $0.40 per share (which was declared in December 2023). The Board of Directors meets regularly to consider the level and timing of dividend payments. The $0.40 per share dividend declared but unpaid as of March 31, 2025, was paid to stockholders in April 2025.

Common Stock Repurchases and Issuances. The Company has been in various buy-back programs since May 1990. During the three months ended March 31, 2025, the Company repurchased 173,344 shares of its common stock at an average price of $58.38 per share and issued 15,007 shares of common stock at an average price of $48.22 per share to cover stock option exercises. During the three months ended March 31, 2024, the Company repurchased 112,362 shares of its common stock at an average price of $51.44 per share and issued 7,288 shares of common stock at an average price of $35.41 per share to cover stock option exercises.

In November 2022, the Company’s Board of Directors authorized the purchase of up to one million shares of the Company’s outstanding common stock, under a program of open market purchases or privately negotiated transactions. At March 31, 2025, approximately 270,000 shares remained available in this stock repurchase authorization.

In April 2025, the Company’s Board of Directors approved a new stock repurchase program, which will succeed the existing repurchase program (authorized in November 2022) following the repurchase of the existing program’s remaining available shares. The new stock repurchase program authorizes the purchase, from time to time in open market or privately negotiated transactions, of up to one million additional shares of the Company’s common stock.

Management has historically utilized stock buy-back programs from time to time as long as management believed that repurchasing the Company’s common stock would contribute to the overall growth of stockholder value. The number of shares that will be repurchased at any particular time and the prices that will be paid are subject to many factors, several of which are outside of the control of the Company. The primary factors typically include the number of shares available in the market from sellers at any given time, the market price of the stock and the projected impact on the Company’s earnings per share and capital.

Non-GAAP Financial Measures

This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial information includes the tangible common equity to tangible assets ratio.

In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets. Management believes that the presentation of this measure excluding the impact of intangible assets provides useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength. Management also believes that providing a measure that excludes balances of intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers. In addition, management believes that this is a standard financial measure used in the banking industry to evaluate performance.

This non-GAAP financial measurement is supplemental and is not a substitute for any analysis based on GAAP financial measures. Because not all companies use the same calculation of non-GAAP measures, this presentation may not be comparable to other similarly titled measures as calculated by other companies.

Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets


	March 31,			December 31,
	2025			2024

	(Dollars in Thousands)
Common equity at period end	$	613,293		$	599,568
Less: Intangible assets at period end		9,985			10,094
Tangible common equity at period end (a)	$	603,308		$	589,474

Total assets at period end	$	5,993,842		$	5,981,628
Less: Intangible assets at period end		9,985			10,094
Tangible assets at period end (b)	$	5,983,857		$	5,971,534

Tangible common equity to tangible assets (a) / (b)		10.08	%		9.87	%

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Asset and Liability Management and Market Risk

A principal operating objective of the Company is to produce stable earnings by achieving a favorable interest rate spread that can be sustained during fluctuations in prevailing interest rates. The Company has sought to reduce its exposure to adverse changes in interest rates by attempting to achieve a closer match between the periods in which its interest-bearing liabilities and interest-earning assets can be expected to reprice through the origination of adjustable-rate mortgages and loans with shorter terms to maturity and the purchase of other shorter term interest-earning assets.

Our Risk When Interest Rates Change

The rates of interest we earn on assets and pay on liabilities generally are established contractually for a period of time. Market interest rates change over time. Accordingly, our results of operations, like those of other financial institutions, are impacted by changes in interest rates and the interest rate sensitivity of our assets and liabilities. The risk associated with changes in interest rates and our ability to adapt to these changes is known as interest rate risk and is our most significant market risk.

How We Measure the Risk to Us Associated with Interest Rate Changes

In an attempt to manage our exposure to changes in interest rates and comply with applicable regulations, we monitor Great Southern’s interest rate risk. In monitoring interest rate risk, we regularly analyze and manage assets and liabilities based on their payment streams and interest rates, the timing of their maturities and their sensitivity to actual or potential changes in market interest rates.

The ability to maximize net interest income is largely dependent upon the achievement of a positive interest rate spread that can be sustained despite fluctuations in prevailing interest rates. Interest rate sensitivity is a measure of the difference between amounts of interest-earning assets and interest-bearing liabilities which either reprice or mature within a given period of time. The difference, or the interest rate repricing “gap,” provides an indication of the extent to which an institution’s interest rate spread will be affected by changes in interest rates. A gap is considered positive when the amount of interest-rate sensitive assets exceeds the amount of interest-rate sensitive liabilities repricing during the same period, and is considered negative when the amount of interest-rate sensitive liabilities exceeds the amount of interest-rate sensitive assets during the same period. Generally, during a period of rising interest rates, a negative gap within shorter repricing periods would adversely affect net interest income, while a positive gap within shorter repricing periods would result in an increase in net interest income. During a period of falling interest rates, the opposite would be true. As of March 31, 2025, Great Southern’s interest rate risk models indicated that, generally, rising interest rates are expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates are expected to have a mostly neutral impact on net interest income. Any negative impact of a falling Federal Funds rate and other market interest rates also falling could be more pronounced if we are not able to decrease non-maturity deposit rates accordingly. We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates. The results of our modeling indicate that

net interest income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon. In a situation where market interest rates increase significantly in a short period of time, our net interest margin increase may be more pronounced in the very near term (first one to three months), due to fairly rapid increases in SOFR interest rates (which replaced LIBOR interest rates) and “prime” interest rates. In a situation where market interest rates decrease significantly in a short period of time, as they did in March 2020, our net interest margin decrease may be more pronounced in the very near term (first one to three months), due to fairly rapid decreases in SOFR interest rates and “prime” interest rates. In the subsequent months, we would expect that net interest margin would stabilize and begin to recover, as renewal interest rates on maturing time deposits decrease compared to the then-current rates paid on those products. During 2020, we experienced some compression of our net interest margin due to the Federal Funds rate being cut by 2.25% from July 2019 through March 2020. Margin compression primarily resulted from changes in the asset mix, mainly the addition of lower-yielding assets and the issuance of subordinated notes during 2020 and net interest margin remained lower than our historical average in 2021. LIBOR/SOFR interest rates decreased significantly in 2020 and remained very low in 2021 and into the first three months of 2022, putting pressure on loan yields, and strong pricing competition for loans and deposits remained in most of our markets. After March 2022, market interest rates increased fairly rapidly. This increased loan yields and expanded our net interest income and net interest margin in the latter half of 2022 and the first three months of 2023. While market interest rate increases are expected to result in increases to loan yields, we expect that much of this benefit will be offset by increased funding costs, including changes in the funding mix, as experienced in the year ended December 31, 2023 and much of 2024. As of March 31, 2025, time deposit maturities over the next 12 months were as follows: within three months -- $668.6 million with a weighted-average rate of 4.10%; within three to six months -- $495.5 million with a weighted-average rate of 3.74%; and within six to twelve months -- $132.9 million with a weighted-average rate of 3.23%. Based on time deposit market rates in April 2025, replacement rates for these maturing time deposits are likely to be approximately 3.50-4.00%.

The current level and shape of the interest rate yield curve poses challenges for interest rate risk management. Prior to its increase of 0.25% on December 16, 2015, the FRB had last changed interest rates on December 16, 2008. This was the first rate increase since September 29, 2006. The FRB also implemented rate increases of 0.25% on eight additional occasions from December 14, 2016 through December 31, 2018, with the Federal Funds rate reaching as high as 2.50%. After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions. At December 31, 2019, the Federal Funds rate stood at 1.75%. In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3rd and a 1.00% decrease on March 16th. At December 31, 2021, the Federal Funds rate was 0.25%. In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 0.50% in March, May, June, July, September, November and December 2022, respectively. At December 31, 2022, the Federal Funds rate was 4.50%. In 2023, the FRB implemented rate increases of 0.25%, 0.25%, 0.25% and 0.25% in February, March, May and July 2023, respectively. At December 31, 2023, the Federal Funds rate was 5.50%. In 2024, the FRB implemented rate decreases of 0.50% 0.25%, and 0.25% in September, November and December, respectively. At December 31, 2024, the Federal Funds rate was 4.50%, and remained at that level as of March 31, 2025. Financial markets expect the possibility of further decreases in Federal Funds interest rates in 2025 to be likely, but at a methodical pace and with interest rate decisions being made at each FRB meeting based on economic data available at the time.

Great Southern’s loan portfolio includes loans ($1.64 billion at March 31, 2025) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after March 31, 2025. All of these loans have interest rate floors at various rates. Great Southern also has a portfolio of loans ($760.4 million at March 31, 2025) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest. All of these loans had interest rate floors at various rates. In addition, Great Southern has a portfolio of loans ($9.7 million at March 31, 2025) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the rate of interest on this index. All of these loans had interest rate floors at various rates. At March 31, 2025, nearly all of these SOFR, AMERIBOR and “prime rate” loans had fully-indexed rates that were at or above their floor rate and so are expected to move fully with future market interest rate increases, and most are expected to move fully with future market interest rate decreases as many of these loans have floor rates well below their current index rate.

Interest rate risk exposure estimates (the sensitivity gap) are not exact measures of an institution’s actual interest rate risk. They are only indicators of interest rate risk exposure produced in a simplified modeling environment designed to allow management to gauge the Bank’s sensitivity to changes in interest rates. They do not necessarily indicate the impact of general interest rate movements on the Bank’s net interest income because the repricing of certain categories of assets and liabilities is subject to competitive and other factors beyond the Bank’s control. As a result, certain assets and liabilities indicated as maturing or otherwise repricing within a stated period may in fact mature or reprice at different times and in different amounts and cause a change, which could be material, in the Bank’s interest rate risk.

In order to minimize the potential for adverse effects of material and prolonged increases and decreases in interest rates on Great Southern’s results of operations, Great Southern has adopted asset and liability management policies to better match the maturities and repricing terms of Great Southern’s interest-earning assets and interest-bearing liabilities. Management recommends and the Board of Directors sets the asset and liability policies of Great Southern, which are implemented by the Asset and Liability Committee. The Asset and Liability Committee is chaired by the Chief Financial Officer and is comprised of members of Great Southern’s senior management. The purpose of the Asset and Liability Committee is to communicate, coordinate and control asset/liability management consistent with Great Southern’s business plan and board-approved policies. The Asset and Liability Committee establishes and monitors the volume and mix of assets and funding sources, taking into account relative costs and spreads, interest rate sensitivity and liquidity needs. The objectives are to manage assets and funding sources to produce results that are consistent with liquidity, capital adequacy, growth, risk and profitability goals. The Asset and Liability Committee meets on a monthly basis to review, among other things, economic conditions and interest rate outlook, current and projected liquidity needs and capital positions and anticipated changes in the volume and mix of assets and liabilities. At each meeting, the Asset and Liability Committee recommends appropriate strategy changes based on this review. The Chief Financial Officer or his designee is responsible for reviewing and reporting on the effects of the policy implementations and strategies to the Board of Directors at their monthly meetings.

In order to manage its assets and liabilities and achieve the desired liquidity, credit quality, interest rate risk, profitability and capital targets, Great Southern has focused its strategies on originating adjustable rate loans or loans with fixed rates that mature in less than five years, and managing its deposits and borrowings to establish stable relationships with both retail customers and wholesale funding sources.

At times, depending on the level of general interest rates, the relationship between long- and short-term interest rates, market conditions and competitive factors, we may determine to increase our interest rate risk position somewhat in order to maintain or increase our net interest margin.

The Asset and Liability Committee regularly reviews interest rate risk by forecasting the impact of alternative interest rate environments on net interest income and market value of portfolio equity, which is defined as the net present value of an institution’s existing assets, liabilities and off-balance sheet instruments, and evaluating such impacts against the maximum potential changes in net interest income and market value of portfolio equity that are authorized by the Board of Directors of Great Southern.

In the normal course of business, the Company may use derivative financial instruments (primarily interest rate swaps) from time to time to assist in its interest rate risk management. In 2011, the Company began executing interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. These interest rate derivatives result from a service provided to certain qualifying customers and, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

In October 2018, the Company entered into an interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $400 million with a contractual termination date of October 6, 2025. Under the terms of the swap, the Company received a fixed rate of interest of 3.018% and paid a floating rate of interest equal to one-month USD-LIBOR (now SOFR). The floating rate reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. Due to lower market interest rates, the Company received net interest settlements which were recorded as loan interest income. If USD-SOFR exceeded the fixed rate of interest, the Company was required to pay net settlements to the counterparty and record those net payments as a reduction of interest income on loans. The effective portion of the gain or loss on the derivative was reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affected earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.

In March 2022, the Company entered into another interest rate swap transaction as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of the swap was $300 million with an effective date of March 1, 2022 and a termination date of March 1, 2024. Under the terms of the swap, the Company received a fixed rate of interest of 1.6725% and paid a floating rate of interest equal to one-month USD-LIBOR (now SOFR). The floating rate reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. The initial floating rate of interest was set at 0.24143%. The Company received net interest settlements, which were recorded as loan interest income, to the extent that the fixed rate of interest exceeded one-month USD-SOFR. If the USD-SOFR rate exceeded the fixed rate of interest, the Company paid net settlements to the counterparty and recorded those net payments as a reduction of interest income on loans.

In July 2022, the Company entered into two interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of its floating rate loans. The notional amount of each swap is $200 million with an effective date of May 1, 2023 and a termination date of May 1, 2028. Under the terms of one swap, beginning in May 2023, the Company receives a fixed rate of interest of 2.628% and pays a floating rate of interest equal to one-month USD-SOFR OIS. Under the terms of the other swap, beginning in May 2023, the Company receives a fixed rate of interest of 5.725% and pays a floating rate of interest equal to one-month USD-Prime. In each case, the floating rate resets monthly and net settlements of interest due to/from the counterparty also occur monthly. To the extent the fixed rate of interest exceeds the floating rate of interest, the Company receives net interest settlements, which are recorded as loan interest income. If the floating rate of interest exceeds the fixed rate of interest (as it does currently), the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans.

In February 2023, the Company entered into interest rate swap transactions as part of its ongoing interest rate management strategies to hedge the risk of certain of its fixed rate brokered deposits. The total notional amount of the swaps was $95 million with a termination date of February 28, 2025. Under the terms of the swaps, the Company received a fixed rate of interest of 4.65% and paid a floating rate of interest equal to USD-SOFR-COMPOUND plus a spread. The floating rate reset monthly and net settlements of interest due to/from the counterparty also occurred monthly. To the extent that the fixed rate of interest exceeded USD-SOFR-COMPOUND plus the spread, the Company received net interest settlements, which were recorded as a reduction of deposit interest expense. If USD-SOFR-COMPOUND plus the spread exceeded the fixed rate of interest, the Company was required to pay net settlements to the counterparty and record those net payments as interest expense on deposits.

In January 2024, the Company elected to terminate the swaps related to brokered deposits prior to their contractual termination date in 2025. The Company received a net settlement payment from the swap counterparty totaling $26,500 upon termination. At the time of the early termination, the Company recorded a market value adjustment to the brokered deposits of $163,000, which was amortized as a reduction of interest expense from January 2024 through February 2025.

ITEM 4. CONTROLS AND PROCEDURES

We maintain a system of disclosure controls and procedures (as defined in Rule 13(a)-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) that is designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file under the Exchange Act is recorded, processed, summarized and reported accurately and within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate. An evaluation of our disclosure controls and procedures was carried out as of March 31, 2025, under the supervision and with the participation of our principal executive officer, principal financial officer and several other members of our senior management. Our principal executive officer and principal financial officer concluded that, as of March 31, 2025, our disclosure controls and procedures were effective in ensuring that the information we are required to disclose in the reports we file or submit under the Act is (i) accumulated and communicated to our management (including the principal executive officer and principal financial officer) to allow timely decisions regarding required disclosure, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We do not expect that our internal control over financial reporting will prevent all errors and all fraud. A control procedure, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control procedure are met. Because of the inherent limitations in all control procedures, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns in controls or procedures can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any control procedure also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control procedure, misstatements due to error or fraud may occur and not be detected.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

In the normal course of business, the Company and its subsidiaries are subject to pending and threatened legal actions, some of which seek substantial relief or damages. While the ultimate outcome of such legal proceedings cannot be predicted with certainty, after reviewing pending and threatened litigation with counsel, management believes at this time that the outcome of such litigation will not have a material adverse effect on the Company’s business, financial condition or results of operations.

As noted in this report under Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Business Initiatives”. Great Southern has previously reported certain issues and contractual disputes regarding its proposed conversion to a new core banking platform to be delivered by a third-party vendor. This ultimately led to Great Southern terminating the Master Agreement with the third-party vendor and initiating litigation against them, with the third-party vendor filing a counterclaim against Great Southern. As of May 1, 2025, the parties have executed a settlement agreement whereby, in pertinent part, the parties will jointly stipulate to a dismissal of all legal actions and the termination of the Master Agreement. Contemporaneously with this action, the parties’ debit card servicing agreement has been extended. Great Southern had previously recorded an accrued expense for these matters in 2024. No additional material expenses are expected to be incurred in the settlement of this matter.

Item 1A. Risk Factors

There have been no material changes to the risk factors set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

In November 2022, the Company’s Board of Directors authorized management to repurchase up to 1,000,000 shares of the Company’s outstanding common stock, under a program of open market purchases or privately negotiated transactions. This program does not have an expiration date. This program became effective in April 2023, upon completion of the previously authorized repurchase program.

In April 2025, the Company’s Board of Directors authorized management to repurchase up to an additional 1,000,000 shares of the Company’s outstanding common stock, under a program of open market purchases or privately negotiated transactions. This program does not have an expiration date. This program will become effective upon completion of the repurchase program authorized in November 2022.

From time to time, the Company may utilize a pre-arranged trading plan pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 to repurchase its shares under its repurchase programs.

The following table reflects the Company’s repurchase activity during the three months ended March 31, 2025.


				Total Number of	Maximum Number
	Total Number	Average		Shares Purchased	of Shares that May
	of Shares	Price		as Part of Publicly	Yet Be Purchased
	Purchased	Per Share		Announced Plan	Under the Plan(1)

January 1, 2025 – January 31, 2025	66,000	$	59.07	66,000	377,229
February 1, 2025 – February 28, 2025	68,604		58.38	68,604	308,625
March 1, 2025 – March 31, 2025	38,740		57.21	38,740	269,885
	173,344	$	58.38	173,344

(1)	Amount represents the number of shares available to be repurchased as of the last calendar day of the month shown.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

Trading Plans

During the quarter ended March 31, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Exhibits

Exhibit No.	Description

(2)	Plan of acquisition, reorganization, arrangement, liquidation, or succession

	(i)	The Purchase and Assumption Agreement, dated as of March 20, 2009, among Federal Deposit Insurance Corporation, Receiver of TeamBank, N.A., Paola, Kansas, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File No. 000-18082) as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on March 26, 2009 is incorporated herein by reference as Exhibit 2.1(i).

	(ii)	The Purchase and Assumption Agreement, dated as of September 4, 2009, among Federal Deposit Insurance Corporation, Receiver of Vantus Bank, Sioux City, Iowa, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File No. 000-18082) as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K filed on September 11, 2009 is incorporated herein by reference as Exhibit 2.1(ii).

	(iii)	The Purchase and Assumption Agreement, dated as of October 7, 2011, among Federal Deposit Insurance Corporation, Receiver of Sun Security Bank, Ellington, Missouri, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File No. 000-18082) as Exhibit 2.1(iii) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 is incorporated herein by reference as Exhibit 2(iii).

	(iv)	The Purchase and Assumption Agreement, dated as of April 27, 2012, among Federal Deposit Insurance Corporation, Receiver of Inter Savings Bank, FSB, Maple Grove, Minnesota, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File No. 000-18082) as Exhibit 2.1(iv) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 is incorporated herein by reference as Exhibit 2(iv).

	(v)	The Purchase and Assumption Agreement All Deposits, dated as of June 20, 2014, among Federal Deposit Insurance Corporation, Receiver of Valley Bank, Moline, Illinois, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File No. 000-18082) as Exhibit 2.1(v) to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 is incorporated herein by reference as Exhibit 2(v).

(3)	Articles of incorporation and Bylaws

	(i)	The Registrant’s Charter previously filed with the Commission as Appendix D to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 31, 2004 (File No. 000-18082), is incorporated herein by reference as Exhibit 3.1.

	(ii)	The Registrant’s Bylaws, previously filed with the Commission (File No. 000-18082) as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on October 19, 2007, are incorporated herein by reference as Exhibit 3.2.

(4)	Instruments defining the rights of security holders, including indentures

	The description of the Registrant’s securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, previously filed with the Commission (File no. 000-18082) as Exhibit 4 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019, is incorporated herein by reference.

	The Indenture, dated June 12, 2020, between the Registrant and U.S. Bank National Association, as Trustee, previously filed with the Commission (File No. 000-18082) as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on June 12, 2020, is incorporated herein by reference as Exhibit 4.1.

	The First Supplemental Indenture, dated June 12, 2020, between the Registrant and U.S. Bank National Association, as Trustee (relating to the Registrant’s 5.50% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030), including the form of subordinated note included therein, previously filed with the Commission (File No. 000-18082) as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on June 12, 2020, is incorporated herein by reference as Exhibit 4.2.

	The Registrant hereby agrees to furnish the SEC upon request, copies of the instruments defining the rights of the holders of each other issue of the Registrant’s long-term debt.

(9)	Voting trust agreement

	Inapplicable.

(10)	Material contracts

	The Amended and Restated Employment Agreement, dated November 4, 2019, between the Registrant and William V. Turner previously filed with the Commission (File No. 000-18082) as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019, is incorporated herein by reference as Exhibit 10.3.*

	Amendment No. 1, dated as of November 17, 2021, to the Amended and Restated Employment Agreement, dated as of November 4, 2019, between the Registrant and William V. Turner, previously filed with the Commission (File No. 000-18082) as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on November 22, 2021, is incorporated herein by reference as Exhibit 10.3A.*

		The Amended and Restated Employment Agreement, dated November 4, 2019, between the Registrant and Joseph W. Turner previously filed with the Commission (File No. 000-18082) as Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period fiscal year ended September 30, 2019, is incorporated herein by reference as Exhibit 10.4.*

		Amendment No. 1, dated as of March 5, 2020, to the Amended and Restated Employment Agreement with Joseph W. Turner previously filed with the Commission (File No. 000-18082) as Exhibit 10.4A to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 is incorporated herein by reference as Exhibit 10.4A.*

		Amendment No. 2, dated as of November 17, 2021, to the Amended and Restated Employment Agreement, dated as of November 4, 2019, between the Registrant and Joseph W. Turner, previously filed with the Commission (File No. 000-18082) as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on November 22, 2021, is incorporated herein by reference as Exhibit 10.4B.*

		A description of the current salary and bonus arrangements for 2025 for the Registrant’s executive officers previously filed with the Commission as Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 is incorporated herein by reference as Exhibit 10.7.*

		A description of the current fee arrangements for the Registrant’s directors previously filed with the Commission as Exhibit 10.8 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 is incorporated herein by reference as Exhibit 10.8.*

		The Registrant’s 2013 Equity Incentive Plan previously filed with the Commission (File No. 000 18082) as Appendix A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on April 4, 2013, is incorporated herein by reference as Exhibit 10.10.*

		The form of incentive stock option award agreement under the Registrant’s 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant’s Registration Statement on Form S 8 (No. 333 189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.11.*

		The form of non-qualified stock option award agreement under the Registrant’s 2013 Equity Incentive Plan previously filed with the Commission as Exhibit 10.3 to the Registrant’s Registration Statement on Form S 8 (No. 333 189497) filed on June 20, 2013 is incorporated herein by reference as Exhibit 10.12.*

		The Registrant’s 2018 Omnibus Incentive Plan previously filed with the Commission (File No. 000-18082) as Appendix A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 27, 2018, is incorporated herein by reference as Exhibit 10.15.*

		The form of incentive stock option award agreement under the Registrant’s 2018 Omnibus Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant’s Registration Statement on Form S-8 (File No. 333-225665) filed on June 15, 2018 is incorporated herein by reference as Exhibit 10.16.*

		The form of non-qualified stock option award agreement under the Registrant’s 2018 Omnibus Incentive Plan previously filed with the Commission as Exhibit 10.3 to the Registrant’s Registration Statement on Form S-8 (File No. 333-225665) filed on June 15, 2018 is incorporated herein by reference as Exhibit 10.17.*

		The Registrant’s 2022 Omnibus Incentive Plan previously filed with the Commission (File No. 000-18082) as Appendix A to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 31, 2022, is incorporated herein by reference as Exhibit 10.18.*

		The form of incentive stock option award agreement under the Registrant’s 2022 Omnibus Incentive Plan previously filed with the Commission as Exhibit 99.2 to the Registrant’s Registration Statement on Form S-8 (File No. 333-265683) filed on June 17, 2022 is incorporated herein by reference as Exhibit 10.19.*

		The form of non-qualified stock option award agreement under the Registrant’s 2022 Omnibus Incentive Plan previously filed with the Commission as Exhibit 99.3 to the Registrant’s Registration Statement on Form S-8 (File No. 333-265683) filed on June 17, 2022 is incorporated herein by reference as Exhibit 10.20.*

		The form of Executive Officer Stock Option Alternative Cash Payment Election Form previously filed with the Commission as Exhibit 10.21 to the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023, is incorporated herein by reference as Exhibit 10.21.*

(15)		Letter re unaudited interim financial information

		Inapplicable.

(18)		Letter re change in accounting principles

		Inapplicable.

(23)		Consents of experts and counsel

		Inapplicable.

(24)		Power of attorney

		None.

(31.1)		Rule 13a-14(a) Certification of Chief Executive Officer

		Attached as Exhibit 31.1

(31.2)		Rule 13a-14(a) Certification of Treasurer

		Attached as Exhibit 31.2

(32)		Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)

		Attached as Exhibit 32.

(99)		Additional Exhibits

		None.

(101)		Attached as Exhibit 101 are the following financial statements from the Great Southern Bancorp, Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statements of financial condition, (ii) consolidated statements of income, (iii) consolidated statements of comprehensive income, (iv) consolidated statements of cash flows and (v) notes to consolidated financial statements.

(104)		Cover Page Interactive Data File formatted in Inline XBRL (contained in Exhibit 101).

		* Management contract or compensatory plan or arrangement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Great Southern Bancorp, Inc.

Date: May 7, 2025	/s/ Joseph W. Turner
	Joseph W. Turner President and Chief Executive Officer (Principal Executive Officer)

Date: May 7, 2025	/s/ Rex A. Copeland
	Rex A. Copeland Treasurer (Principal Financial and Accounting Officer)