Great Southern Bancorp NASDAQ: GSBC reported first-quarter 2026 net income of $17.5 million, or $1.58 per diluted share, as management pointed to a “solid start to the year” despite what President and CEO Joe Turner called a “continuing competitive operating environment.” The results compared with $17.2 million, or $1.47 per diluted share, in the year-ago quarter and $16.3 million, or $1.45 per diluted share, in the fourth quarter of 2025.
Earnings supported by net interest margin and stable credit
Turner said the quarter reflected “a resilient net interest margin, prudent asset liability management, thoughtful capital allocation, and stable loan balances.” Net interest income totaled $48.3 million, down about $1 million from the first quarter of 2025 and slightly below the fourth quarter of 2025, according to Chief Financial Officer Rex Copeland.
Management attributed the year-over-year decline primarily to the absence of income from a previously terminated interest rate swap that ended in October 2025. Copeland also cited lower loan balances and lower market rates that impacted variable-rate loans and some newer fixed-rate originations. Those factors were “mostly offset,” he said, by lower interest expense tied to disciplined funding cost management and deposit repricing, as well as the lack of interest expense on subordinated notes that were redeemed in June 2025.
The company reported an annualized net interest margin of 3.71% for the quarter, compared to 3.57% in the first quarter of 2025 and 3.70% in the fourth quarter of 2025. Turner noted the quarter included $483,000 of “somewhat unusual” interest income from the collection of unbooked interest. Copeland said the additional interest income related to three separate relationships and that similar recoveries can occur “sporadically.” He added that the company recorded $744,000 of similar additional interest income in the first quarter of 2025.
Credit metrics remained a central theme on the call. Turner said asset quality remained “very strong,” with non-performing assets at 0.18% of total assets and “virtually no charge-offs.” Copeland reported non-performing assets and potential problem loans of approximately $11.3 million at March 31, 2026, up from $9.5 million at the end of 2025. Non-performing assets were approximately $10.1 million, or 0.18% of total assets, compared to $8.1 million, or 0.15%, at December 31, 2025.
The company did not record a provision for credit losses on outstanding loans in the quarter. It did, however, record a negative provision on unfunded commitments of $931,000, which Copeland said resulted from a decline in unfunded commitments, “primarily in unfunded construction balances.”
Loan growth driven by construction and commercial real estate
Total assets ended the quarter at approximately $5.69 billion, up from $5.60 billion at December 31, 2025. Total net loans excluding mortgage loans held for sale increased about $99.8 million, or 2.3%, to $4.46 billion.
Copeland said the increase was driven primarily by growth in construction loans and commercial real estate loans, partially offset by a decrease in multifamily loans. Management emphasized that repayment activity can significantly affect quarterly loan trends. Turner said first-quarter 2026 loan repayments were below the quarterly average during 2025 and “definitely during the last half of 2025.” Copeland added that if loan payoffs had been consistent with levels from the second half of 2025, loan balances “would likely have ended up $100 million or more lower.”
Asked about the outlook for paydowns, Turner said the company does not provide guidance because prepayments are difficult to predict and can be volatile. He noted prepayments were “probably…$180 million less” in the first quarter of 2026 than they averaged in the last half of 2025, and said the refinancing market may be a factor, though the company was “not comfortable” forecasting.
Deposits stable amid competition; uninsured deposits estimated at 16.7%
Deposits ended the quarter at approximately $4.45 billion, down about $37.6 million from December 31, 2025. Copeland said combined noninterest-bearing and interest-bearing checking declined $9 million, retail time deposits decreased $17 million, and brokered deposits decreased $11 million.
Turner described deposits as “generally stable” during the quarter and said the company used Federal Home Loan Bank borrowings to replace certain maturing brokered balances. “Deposit markets remain competitive across both core and broker channels,” he said, adding that management continues to focus on funding cost, duration, and flexibility.
Copeland said deposit balances have “continued to stabilize throughout the last several quarters.” As of March 31, 2026, management estimated uninsured deposits, excluding deposit accounts of consolidated subsidiaries, at approximately $740 million, or 16.7% of total deposits.
Non-interest income rose; expense outlook tied to IT projects
Non-interest income totaled $7.0 million, up from $6.6 million in the first quarter of 2025. Copeland said the increase was driven primarily by stronger annuity sales commissions. He also noted other income included a $421,000 fee tied to a newly originated loan that included an interest rate swap as part of the transaction, and an unrelated exit from a tax credit limited partnership. Copeland said such items occur “sporadically” as part of operations.
Non-interest expense was $34.8 million, essentially flat with the year-ago quarter. Turner said a portion of the decline year over year was due to a $261,000 insurance reimbursement for legal fees recovered through a loan foreclosure. Copeland also noted a $453,000 reimbursement under the company’s debit card program that reduced non-interest expense during the quarter.
Looking forward, Copeland said the items that reduced expenses in the first quarter are not expected to repeat in the second quarter, and expenses could rise as deferred projects begin. Turner said the company is “primarily talking about IT projects” involving data security, customer-facing technology, and “substantial upgrades” to systems. He estimated that once “fully operational” over the next three to six quarters, the projects could add about $200,000 to $250,000 per month to expenses. In a separate exchange, Turner agreed with an analyst’s framing that quarterly non-interest expense could move closer to the $36 million level as those factors roll in.
The company’s efficiency ratio for the quarter was 62.85%, compared to 62.27% in the first quarter of 2025. Non-interest expense to average assets was 2.47% versus 2.34% a year earlier.
Capital actions: buybacks, dividends, and tangible book value focus
Management emphasized capital allocation and per-share value creation. Copeland said stockholders’ equity was approximately $633.6 million at March 31, 2026, representing 11.1% of total assets, with book value of approximately $58.27 per common share. That compared with $636.1 million and book value of $57.50 per common share at December 31, 2025.
Copeland attributed the modest decline in total equity to $16.9 million of common stock repurchases, $4.7 million of cash dividends declared, and a $2.9 million increase in unrealized losses on investments and interest rate swaps, partially offset by $17.5 million of net income and $4.6 million in increased capital from stock option exercises.
During the quarter, the company repurchased 268,664 shares at an average price of about $62.55 per share and declared a quarterly cash dividend of $0.43 per share. It also had stock option exercises of just over 80,000 shares at an average price of about $50.90 per share. As of March 31, about 419,000 shares remained available under the current repurchase authorization, and outstanding shares were approximately 10.874 million.
Asked whether the company remained a buyer at current levels, Turner said he did not want to specify price levels but added that management still views the stock as “at an attractive level” by measures such as “tangible book value earn back.” Copeland said buyback decisions are considered alongside overall capital needs, including potential loan growth.
On interest rates and margin sensitivity, Copeland said the balance sheet is “pretty balanced,” adding that a 25 basis point rate cut would likely not have a significant or lasting negative impact because many liabilities are short in duration and could reprice quickly.
In other updates, Copeland said the securities portfolio is expected to decline “kind of slowly” with no significant runoff anticipated in the next couple of quarters, and likely “not much in the way of added to the portfolio” in the near term. Turner and Copeland also discussed ongoing evaluation of branch usage and delivery channels, including a St. Louis location that will continue to serve customers with on-site interactive teller machines but without an inside lobby presence.
About Great Southern Bancorp NASDAQ: GSBC
Great Southern Bancorp, Inc NASDAQ: GSBC is the bank holding company for Great Southern Bank, a full-service commercial bank headquartered in Springfield, Missouri. Through its subsidiary, the company provides a broad spectrum of financial products and services designed to meet the needs of individuals, small and mid-sized businesses, and professional clients across its regional footprint.
Great Southern Bank's core business activities include deposit-taking, lending and treasury management.
Featured Articles
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Great Southern Bancorp, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Great Southern Bancorp wasn't on the list.
While Great Southern Bancorp currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Click the link to see MarketBeat's list of seven stocks and why their long-term outlooks are very promising.
Get This Free Report
