Great Southern Bancorp Reports 2.9% Increase in Total Assets, Net Income Declines 8.8%

Great Southern Bancorp, Inc. (GSBC) reported total assets of $5.98 billion at December 31, 2024, a 2.9% increase from the previous year. Net loans increased by $100.8 million (2.2%) to $4.69 billion, driven primarily by a $607.2 million increase in other residential (multi-family) loans, partially offset by decreases in construction, commercial business, and one-to-four-family residential loans. Total deposits decreased by $116.2 million (2.5%) to $4.61 billion, primarily due to declines in transaction and retail certificate of deposit accounts. Stockholders' equity increased by $27.8 million (4.9%) to $599.6 million.

Net income for the year ended December 31, 2024, was $61.8 million, an 8.8% decrease compared to the $67.8 million reported in 2023. This decrease resulted from a $4.1 million (2.1%) decline in net interest income and a $5.8 million increase in provisions for credit losses and unfunded commitments, partially offset by a $3.9 million (22%) decrease in income tax provisions. Non-interest income increased slightly by $492,000 (1.6%) to $30.6 million, while non-interest expense rose by $472,000 (0.3%) to $141.5 million. The Company's efficiency ratio was 64.40% for 2024, compared to 63.16% in 2023.

Significant changes during the year included the consolidation of several banking centers and the closure of a loan production office in Tulsa, Oklahoma. The company also reached an agreement in principle to terminate a master agreement with a third-party software vendor, resulting in a $2 million accrued expense. Furthermore, two long-term executive team members retired, with their replacements already appointed. The company opened a new, modern drive-through center utilizing interactive teller machine (ITM) technology in Springfield, Missouri. The company also plans to construct a new, next-generation banking center in Springfield, Missouri in 2025.

At December 31, 2024, GSBC operated 89 full-service retail banking offices and seven commercial loan production offices across six states. The company's largest deposit concentrations were in Springfield and St. Louis, Missouri. The company employed 1,108 individuals, including 226 part-time employees. GSBC's market share in Missouri was 1.4% as of June 30, 2024. The company's loan portfolio composition included a significant percentage of commercial real estate, construction, and other commercial loans.

GSBC's outlook is subject to various macroeconomic factors, including economic conditions, interest rate changes, and competition within the financial services industry. The company anticipates continued competition for deposits and loans, and acknowledges the risks associated with its loan portfolio concentration in certain sectors. The company also notes the potential impact of future regulatory changes and the ongoing need to manage interest rate and credit risks effectively.