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What changed in GREAT SOUTHERN BANCORP, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of GREAT SOUTHERN BANCORP, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+757 added−785 removedSource: 10-K (2025-03-07) vs 10-K (2024-03-12)

Top changes in GREAT SOUTHERN BANCORP, INC.'s 2024 10-K

757 paragraphs added · 785 removed · 624 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

246 edited+24 added−45 removed226 unchanged
Biggest changeExpected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Tax-Equivalent ​ ​ ​ Cost Amortized Yield Fair Value ​ ​ (Dollars In Thousands) AVAILABLE-FOR-SALE SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ One year or less $ — — $ — After one through five years ​ 1,197 4.74 % 1,226 After five through ten years ​ — — ​ — After ten years ​ 57,944 3.86 % 56,911 Securities not due on a single maturity date ​ 472,751 2.60 % 420,070 Total ​ $ 531,892 2.74 % $ 478,207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Tax-Equivalent ​ ​ ​ Carrying Value Amortized Yield Fair Value ​ ​ (Dollars In Thousands) HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ — — ​ $ — After one through five years ​ — — ​ — After five through ten years ​ 1,018 5.99 % 959 After ten years ​ 5,171 1.69 % 4,748 Securities not due on a single maturity date ​ 188,834 2.64 % 165,486 Total ​ $ 195,023 2.63 % $ 171,193 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not Due ​ ​ ​ ​ ​ ​ ​ ​ After One ​ After Five ​ After ​ on a Single ​ ​ ​ ​ ​ One Year ​ Through ​ Through ​ Ten ​ Maturity ​ ​ ​ ​ or Less Five Years Ten Years Years Date Total ​ ​ (In Thousands) AVAILABLE-FOR-SALE SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities $ — $ — $ — $ — $ 280,231 $ 280,231 Agency collateralized mortgage obligations ​ — ​ — ​ — ​ — ​ 75,946 ​ 75,946 Small business administration securities ​ — ​ — ​ — ​ — ​ 63,893 ​ 63,893 States and political subdivisions securities ​ — ​ 1,226 ​ — ​ 56,911 ​ — ​ 58,137 ​ ​ $ — ​ $ 1,226 ​ $ — ​ $ 56,911 ​ $ 420,070 ​ $ 478,207 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 74,931 ​ $ 74,931 Agency collateralized mortgage obligations ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 113,903 ​ ​ 113,903 States and political subdivisions securities ​ ​ — ​ ​ — ​ ​ 1,018 ​ ​ 5,171 ​ ​ — ​ ​ 6,189 ​ ​ $ — ​ $ — ​ $ 1,018 ​ $ 5,171 ​ $ 188,834 ​ $ 195,023 ​ 28 Table of Contents The following table shows our investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023, 2022 and 2021, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ 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 ​ $ 4,318 ​ $ (9) ​ $ 274,801 ​ $ (35,881) ​ $ 279,119 ​ $ (35,890) Agency collateralized mortgage obligations ​ 9,080 ​ ​ (216) ​ ​ 66,866 ​ ​ (9,827) ​ ​ 75,946 ​ ​ (10,043) Small Business Administration securities ​ 7,782 ​ ​ (133) ​ ​ 56,111 ​ ​ (6,622) ​ ​ 63,893 ​ ​ (6,755) States and political subdivisions securities ​ — ​ ​ — ​ ​ 37,969 ​ ​ (1,531) ​ ​ 37,969 ​ ​ (1,531) ​ ​ $ 21,180 ​ $ (358) ​ $ 435,747 ​ $ (53,861) ​ $ 456,927 ​ $ (54,219) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ — ​ $ — ​ $ 66,245 ​ $ (8,686) ​ $ 66,245 ​ $ (8,686) Agency collateralized mortgage obligations ​ ​ — ​ ​ — ​ ​ 99,241 ​ ​ (14,662) ​ ​ 99,241 ​ ​ (14,662) States and political subdivisions securities ​ ​ — ​ ​ — ​ ​ 5,707 ​ ​ (482) ​ ​ 5,707 ​ ​ (482) ​ ​ $ — ​ $ — ​ $ 171,193 ​ $ (23,830) ​ $ 171,193 ​ $ (23,830) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ 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 ​ $ 221,562 ​ $ (27,597) ​ $ 64,918 ​ $ (13,187) ​ $ 286,480 ​ $ (40,784) Agency collateralized mortgage obligations ​ 28,537 ​ ​ (3,262) ​ ​ 40,642 ​ ​ (8,469) ​ ​ 69,179 ​ ​ (11,731) Small Business Administration securities ​ ​ 60,473 ​ ​ (5,224) ​ ​ 7,667 ​ ​ (1,711) ​ ​ 68,140 ​ ​ (6,935) States and political subdivisions securities ​ 44,455 ​ ​ (2,913) ​ ​ 3,753 ​ ​ (378) ​ ​ 48,208 ​ ​ (3,291) ​ ​ $ 355,027 ​ $ (38,996) ​ $ 116,980 ​ $ (23,745) ​ $ 472,007 ​ $ (62,741) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ 59,218 ​ $ (7,766) ​ $ 7,868 ​ $ (2,054) ​ $ 67,086 ​ $ (9,820) Agency collateralized mortgage obligations ​ ​ 61,055 ​ ​ (6,411) ​ ​ 44,178 ​ ​ (7,718) ​ ​ 105,233 ​ ​ (14,129) States and political subdivisions securities ​ 900 ​ ​ (101) ​ ​ 4,546 ​ ​ (680) ​ ​ 5,446 ​ ​ (781) ​ ​ $ 121,173 ​ $ (14,278) ​ $ 56,592 ​ $ (10,452) ​ $ 177,765 ​ $ (24,730) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 ​ ​ 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 ​ $ 47,769 ​ $ (388) ​ $ 10,583 ​ $ (356) ​ $ 58,352 ​ $ (744) Agency collateralized mortgage obligations ​ ​ 92,727 ​ ​ (1,588) ​ ​ 16,298 ​ ​ (910) ​ ​ 109,025 ​ ​ (2,498) States and political subdivisions securities ​ 6,537 ​ ​ (43) ​ ​ — ​ ​ — ​ ​ 6,537 ​ ​ (43) ​ ​ $ 147,033 ​ $ (2,019) ​ $ 26,881 ​ $ (1,266) ​ $ 173,914 ​ $ (3,285) ​ 29 Table of Contents Allowance for Credit Losses As of 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 .
Biggest changeExpected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized ​ Tax-Equivalent ​ ​ ​ Cost Amortized Yield Fair Value ​ ​ (Dollars In Thousands) AVAILABLE-FOR-SALE SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ One year or less $ — — $ — After one through five years ​ 1,230 4.65 % 1,232 After five through ten years ​ — — ​ — After ten years ​ 57,378 3.46 % 54,716 Securities not due on a single maturity date ​ 535,956 3.00 % 477,425 Total ​ $ 594,564 3.05 % $ 533,373 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortized Tax-Equivalent ​ ​ ​ Carrying Value Amortized Yield Fair Value ​ ​ (Dollars In Thousands) HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ One year or less ​ $ — — ​ $ — After one through five years ​ — — ​ — After five through ten years ​ 1,037 5.90 % 936 After ten years ​ 5,114 1.36 % 4,565 Securities not due on a single maturity date ​ 181,282 2.65 % 157,264 Total ​ $ 187,433 2.63 % $ 162,765 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Not Due ​ ​ ​ ​ ​ ​ ​ ​ After One ​ After Five ​ After ​ on a Single ​ ​ ​ ​ ​ One Year ​ Through ​ Through ​ Ten ​ Maturity ​ ​ ​ ​ or Less Five Years Ten Years Years Date Total ​ ​ (In Thousands) AVAILABLE-FOR-SALE SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities $ — $ — $ — $ — $ 305,907 $ 305,907 Agency collateralized mortgage obligations ​ — ​ — ​ — ​ — ​ 113,624 ​ 113,624 Small business administration securities ​ — ​ — ​ — ​ — ​ 57,894 ​ 57,894 States and political subdivisions securities ​ — ​ 1,232 ​ — ​ 54,716 ​ — ​ 55,948 ​ ​ $ — ​ $ 1,232 ​ $ — ​ $ 54,716 ​ $ 477,425 ​ $ 533,373 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ — ​ $ — ​ $ — ​ $ — ​ $ 72,929 ​ $ 72,929 Agency collateralized mortgage obligations ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 108,353 ​ ​ 108,353 States and political subdivisions securities ​ ​ — ​ ​ — ​ ​ 1,037 ​ ​ 5,114 ​ ​ — ​ ​ 6,151 ​ ​ $ — ​ $ — ​ $ 1,037 ​ $ 5,114 ​ $ 181,282 ​ $ 187,433 ​ 31 Table of Contents The following tables show our investments’ gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2024, 2023 and 2022, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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) Small Business Administration securities ​ 7,229 ​ ​ (270) ​ ​ 50,665 ​ ​ (7,685) ​ ​ 57,894 ​ ​ (7,955) States and political subdivisions 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) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ ​ 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 ​ $ 4,318 ​ $ (9) ​ $ 274,801 ​ $ (35,881) ​ $ 279,119 ​ $ (35,890) Agency collateralized mortgage obligations ​ 9,080 ​ ​ (216) ​ ​ 66,866 ​ ​ (9,827) ​ ​ 75,946 ​ ​ (10,043) Small Business Administration securities ​ ​ 7,782 ​ ​ (133) ​ ​ 56,111 ​ ​ (6,622) ​ ​ 63,893 ​ ​ (6,755) States and political subdivisions securities ​ — ​ ​ — ​ ​ 37,969 ​ ​ (1,531) ​ ​ 37,969 ​ ​ (1,531) ​ ​ $ 21,180 ​ $ (358) ​ $ 435,747 ​ $ (53,861) ​ $ 456,927 ​ $ (54,219) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ — ​ $ — ​ $ 66,245 ​ $ (8,686) ​ $ 66,245 ​ $ (8,686) Agency collateralized mortgage obligations ​ ​ — ​ ​ — ​ ​ 99,241 ​ ​ (14,662) ​ ​ 99,241 ​ ​ (14,662) States and political subdivisions securities ​ — ​ ​ — ​ ​ 5,707 ​ ​ (482) ​ ​ 5,707 ​ ​ (482) ​ ​ $ — ​ $ — ​ $ 171,193 ​ $ (23,830) ​ $ 171,193 ​ $ (23,830) ​ 32 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ 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 ​ $ 221,562 ​ $ (27,597) ​ $ 64,918 ​ $ (13,187) ​ $ 286,480 ​ $ (40,784) Agency collateralized mortgage obligations ​ ​ 28,537 ​ ​ (3,262) ​ ​ 40,642 ​ ​ (8,469) ​ ​ 69,179 ​ ​ (11,731) Small Business Administration securities ​ ​ 60,473 ​ ​ (5,224) ​ ​ 7,667 ​ ​ (1,711) ​ ​ 68,140 ​ ​ (6,935) States and political subdivisions securities ​ 44,455 ​ ​ (2,913) ​ ​ 3,753 ​ ​ (378) ​ ​ 48,208 ​ ​ (3,291) ​ ​ $ 355,027 ​ $ (38,996) ​ $ 116,980 ​ $ (23,745) ​ $ 472,007 ​ $ (62,741) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HELD-TO-MATURITY SECURITIES ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed securities ​ $ 59,218 ​ $ (7,766) ​ $ 7,868 ​ $ (2,054) ​ $ 67,086 ​ $ (9,820) Agency collateralized mortgage obligations ​ ​ 61,055 ​ ​ (6,411) ​ ​ 44,178 ​ ​ (7,718) ​ ​ 105,233 ​ ​ (14,129) States and political subdivisions securities ​ ​ 900 ​ ​ (101) ​ ​ 4,546 ​ ​ (680) ​ ​ 5,446 ​ ​ (781) ​ ​ $ 121,173 ​ $ (14,278) ​ $ 56,592 ​ $ (10,452) ​ $ 177,765 ​ $ (24,730) ​ Allowance for Credit Losses As of 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 .
Great Southern is principally engaged in the business of originating commercial real estate loans, construction loans, other commercial loans, multi-family and single-family residential real estate loans and consumer loans and funding these loans by attracting deposits from the general public, obtaining brokered deposits and through borrowings from the Federal Home Loan Bank of Des Moines (the “FHLBank”) and others.
Great Southern is principally engaged in the business of originating commercial real estate loans, construction loans, other commercial loans, other residential (multi-family) and single-family residential real estate loans and consumer loans and funding these loans by attracting deposits from the general public, obtaining brokered deposits and through borrowings from the Federal Home Loan Bank of Des Moines (the “FHLBank”) and others.
Rate adjustments are generally limited to 2% maximum annually as well as a maximum aggregate adjustment over the life of the loan. Accordingly, the interest rates on these loans typically may not be as rate sensitive as is the Bank’s cost of funds.
Rate adjustments are generally limited to a 2% maximum annually as well as a maximum aggregate adjustment over the life of the loan. Accordingly, the interest rates on these loans typically may not be as rate sensitive as is the Bank’s cost of funds.
The purchase transaction is governed by a participation agreement entered into by the originator and participant (Great Southern) containing guidelines as to ownership, control and servicing rights, among others. The originator may retain all rights with respect to enforcement, collection and administration of the loan.
The purchase transaction is governed by a participation agreement entered into by the participant (Great Southern) and the originator containing guidelines as to ownership, control and servicing rights, among others. The originator may retain all rights with respect to enforcement, collection and administration of the loan.
At December 31, 2023, the Company’s available-for-sale agency collateralized mortgage-backed obligations portfolio consisted of FNMA securities totaling $4.1 million, FHLMC securities totaling $66.6 million and GNMA securities totaling $5.3 million. At December 31, 2022, the Company’s available-for-sale agency collateralized mortgage-backed obligations portfolio consisted of FNMA securities totaling $3.9 million, FHLMC securities totaling $67.8 million and GNMA securities totaling $6.7 million.
At December 31, 2023, the Company’s available-for-sale agency collateralized mortgage-backed obligations portfolio consisted of FNMA securities totaling $4.1 million, FHLMC securities totaling $66.5 million and GNMA securities totaling $5.3 million. At December 31, 2022, the Company’s available-for-sale agency collateralized mortgage-backed obligations portfolio consisted of FNMA securities totaling $3.9 million, FHLMC securities totaling $67.8 million and GNMA securities totaling $6.7 million.
Review of the borrower’s past, present and future cash flows is also an important aspect of Great Southern’s credit analysis. In addition, the Bank generally obtains personal guarantees from the borrowers on these types of loans. Historically, the majority of Great Southern’s commercial loans have been to borrowers in southwestern and central Missouri and the St. Louis, Missouri area.
Review of the borrower’s past, present and projected future cash flows is also an important aspect of Great Southern’s credit analysis. In addition, the Bank generally obtains personal guarantees from the borrowers on these types of loans. Historically, the majority of Great Southern’s commercial loans have been to borrowers in southwestern and central Missouri and the St. Louis, Missouri area.
All loans, regardless of size or type, are required to conform to certain minimum underwriting standards to assure portfolio quality. These standards and procedures include, but are not limited to, an analysis of the borrower’s financial condition, collateral, repayment ability, inquiry and analysis of liquid assets and credit history as required by loan type.
All loans, regardless of size or type, are required to conform to certain minimum underwriting standards designed to assure portfolio quality. These standards and procedures include, but are not limited to, an analysis of the borrower’s financial condition, collateral, repayment ability, inquiry and analysis of liquid assets and credit history as required by loan type.
Consumer Lending Consumer loans generally have short terms to maturity, thus reducing Great Southern’s exposure to changes in interest rates, and carry higher rates of interest than do residential mortgage loans. In addition, Great Southern believes offering consumer loan products helps expand and create stronger ties to its existing customer base.
Consumer Lending Consumer loans generally have short terms to maturity, thus reducing Great Southern’s exposure to changes in interest rates, and carry higher rates of interest than do residential mortgage loans. In addition, Great Southern believes offering consumer loan products helps expand and create stronger ties to its existing retail customer base.
This allows the Bank to better manage the maturity of its deposits. Additionally, the Bank may issue brokered deposits which are callable at the Bank’s discretion prior to their stated maturity date. Currently, the rates offered by the Bank for brokered deposits are similar to those offered for retail certificates of deposit of similar size and maturity.
This allows the Bank to better manage the maturity of its deposits. Additionally, the Bank may issue brokered deposits which are callable at the Bank’s discretion prior to their stated maturity date. Currently, the rates offered by the Bank for brokered deposits are comparable to those offered for retail certificates of deposit of similar size and maturity.
It is the policy of Great Southern that generally all one- to four-family residential loans in excess of 80% of the appraised value of the property be insured by a private mortgage insurance company approved by Great Southern for the amount of the loan in excess of 80% of the appraised value.
It is the policy of Great Southern that generally all one- to four-family residential loans in excess of 80% of the appraised value of the property be insured for the excess amount by a private mortgage insurance company approved by Great Southern.
At December 31, 2023, the Company’s available-for-sale agency mortgage-backed securities portfolio consisted of FNMA securities totaling $190.9 million, FHLMC securities totaling $86.4 million and GNMA securities totaling $2.9 million. At December 31, 2022, the Company’s available-for-sale agency mortgage-backed securities portfolio consisted of FNMA securities totaling $196.4 million, FHLMC securities totaling $90.1 million and GNMA securities totaling $78.5 million.
At December 31, 2023, the available-for-sale agency mortgage-backed securities portfolio consisted of FNMA securities totaling $190.9 million, FHLMC securities totaling $86.4 million and GNMA securities totaling $2.9 million. At December 31, 2022, the available-for-sale agency mortgage-backed securities portfolio consisted of FNMA securities totaling $196.4 million, FHLMC securities totaling $90.1 million and GNMA securities totaling $78.5 million.
Construction loans involve additional risks attributable to the fact that loan funds are advanced based on the value of the project under construction, which is of uncertain value prior to the completion of construction.
Construction loans involve additional risks attributable to the fact that loan funds are advanced based on the expected value of the project under construction, which is uncertain prior to the completion of construction.
See “Capital” below. 42 Table of Contents A bank holding company is required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company’s consolidated net worth.
See “Capital” below. 46 Table of Contents A bank holding company is required to give the FRB prior written notice of any purchase or redemption of its outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company’s consolidated net worth.
The composition of the Bank’s loan portfolio has changed over the past several years; speculative construction and land development loan types have been limited, consumer lending for automobiles and boats has decreased significantly (indirect automobile and boat lending was eliminated), commercial real estate loan types have been stabilized and diversified and emphasis has been placed on increasing our other residential (multi-family) and commercial business loan portfolios. 11 Table of Contents Environmental Issues Loans secured by real property, whether commercial, residential or other, may have a material, negative effect on the financial position and results of operations of the lender if the collateral is environmentally contaminated.
The composition of the Bank’s loan portfolio has changed over the past several years; speculative construction and land development loan types have been limited, consumer lending for automobiles and boats has decreased significantly (the origination of indirect automobile and boat lending was eliminated), commercial real estate loan types have been stabilized and diversified and emphasis has been placed on increasing our other residential (multi-family) and commercial business loan portfolios. 12 Table of Contents Environmental Issues Loans secured by real property, whether commercial, residential or other, may have a material, negative effect on the financial position and results of operations of the lender if the collateral is environmentally contaminated.
GSSCLLC is a limited liability company that invests in multiple limited liability entities for the purpose of acquiring state tax credits which are utilized by Great Southern or sold to third parties. GSSCLLC had net losses of $3,000 and $2,000 in the years ended December 31, 2023 and 2022, respectively. GSRE Holding, L.L.C.
GSSCLLC is a limited liability company that invests in multiple limited liability entities for the purpose of acquiring state tax credits which are utilized by Great Southern or sold to third parties. GSSCLLC had net losses of $2,000 and $3,000 in the years ended December 31, 2024 and 2023, respectively. GSRE Holding, L.L.C.
Normally, Great Southern’s commercial real estate and other residential construction loans are made either as the initial stage of a combination loan (i.e., with a commitment from the Bank to provide permanent financing upon completion of the project) or with a commitment from a third party to provide permanent financing. 13 Table of Contents The Bank’s commercial real estate and construction loan portfolios consist of loans with diverse collateral types.
Normally, Great Southern’s commercial real estate and other residential construction loans are made either as the initial stage of a combination loan (i.e., with a commitment from the Bank to provide permanent financing upon completion of the project) or with a commitment from a third party to provide permanent financing. 14 Table of Contents The Bank’s commercial real estate and construction loan portfolios consist of loans with diverse collateral types.
As of December 31, 2023, the Company was “well-capitalized.” The federal banking agencies consider concentrations of credit risk and risks from non-traditional activities, as well as an institution’s ability to manage those risks, when determining the adequacy of an institution’s capital. This evaluation is generally made as part of the institution’s regular safety and soundness examination.
As of December 31, 2024, the Company was “well-capitalized.” The federal banking agencies consider concentrations of credit risk and risks from non-traditional activities, as well as an institution’s ability to manage those risks, when determining the adequacy of an institution’s capital. This evaluation is generally made as part of the institution’s regular safety and soundness examination.
The BTFP offers loans of up to one year in length to banks and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. These assets will be valued at par for collateral purposes.
The BTFP offered loans of up to one year in length to banks and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. These assets will be valued at par for collateral purposes.
These transactions help the Company obtain large blocks of funding while providing control over pricing and diversity of wholesale funding options. At December 31, 2023 and 2022, all of these IntraFi deposits were at floating rates indexed to the effective fed funds rate. Previously included in brokered deposits were IntraFi Network Deposit accounts.
These transactions help the Company obtain large blocks of funding while providing control over pricing and diversity of wholesale funding options. At December 31, 2024 and 2023, all of these IntraFi deposits were at floating rates indexed to the effective fed funds rate. Previously included in brokered deposits were IntraFi Network Deposit accounts.
Real Estate Development had net income of $-0- in each of the years ended December 31, 2023 and 2022. Great Southern Community Development Company, L.L.C. and Great Southern CDE, L.L.C. Generally, the purpose of CDC is to invest in community development projects that have a public benefit and are permissible under Missouri and Kansas law.
Real Estate Development had net income of $-0- in each of the years ended December 31, 2024 and 2023. Great Southern Community Development Company, L.L.C. and Great Southern CDE, L.L.C. Generally, the purpose of CDC is to invest in community development projects that have a public benefit and are permissible under Missouri and Kansas law.
The percentage of collateral value Great Southern will loan on real estate and other property varies based on factors including, but not limited to, the type of property and its location and the borrower’s credit history. As a general rule, Great Southern will loan up to 95% of the appraised value on one-to four-family residential properties.
The percentage of collateral value Great Southern will lend on real estate and other property varies based on factors including, but not limited to, the type of property and its location and the borrower’s credit history. As a general rule, Great Southern will lend up to 95% of the appraised value on one-to four-family residential properties.
The Company did not utilize these types of interest rate swaps on brokered deposits in 2022 or 2021. Borrowings . Great Southern’s other sources of funds include advances from the FHLBank, a Qualified Loan Review (“QLR”) arrangement with the FRB, customer repurchase agreements and other borrowings.
The Company did not utilize these types of interest rate swaps on brokered deposits in 2024 or 2022. Borrowings . Great Southern’s other sources of funds include advances from the FHLBank, a Qualified Loan Review (“QLR”) arrangement with the FRB, customer repurchase agreements and other borrowings.
The FRBSL also has a Bank Term Funding Program (“BTFP”) which was created in March 2023 to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
The FRBSTL also has a Bank Term Funding Program (“BTFP”), which was created in March 2023 to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
Until 2022, the indices used by Great Southern for these types of loans increased, but not significantly, at various times in the previous ten years. In 2022 and 2023, one-year U.S. Treasury interest rates and SOFR-index interest rates increased significantly throughout 2022 and during the first half of 2023.
Until 2022, the indices used by Great Southern for these types of loans increased, but not significantly, at various times in the preceding ten years. One-year U.S. Treasury interest rates and SOFR-index interest rates increased significantly throughout 2022 and during the first half of 2023.
Great Southern remains committed and focused on the health and safety of our associates, customers, and communities, especially as the COVID-19 virus remains a threat. Company management continues to monitor information related to the COVID-19 and other impactful viruses, using federal and state guidelines for public safety to manage the threat.
Great Southern remains committed and focused on the health and safety of our associates, customers, and communities, especially as COVID-19 and other viruses remain a threat. Company management continues to monitor information related to the COVID-19 and other impactful viruses, using federal and state guidelines for public safety to manage the threat.
From time to time certain credit relationships may deteriorate due to payment performance, cash flow of the borrower, value of collateral, or other factors. In these instances, management may revise its loss estimates and assumptions for these specific credits due to changing circumstances.
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.
This increase was due to construction multi-family projects being completed and moved to the other residential loan category and refinancings and early pay-offs on these types of loans continued to be slow as interest rates remained high.
This increase was due to multi-family construction projects being completed and moved to the other residential loan category and refinancings and early pay-offs on these types of loans continuing to be slow as interest rates remained high.
These materials are also available free of charge (other than a user’s regular internet access charges) on the Securities and Exchange Commission’s website at www.sec.gov. Market Areas The Company currently operates 89 full-service retail banking offices, serving nearly 131,000 households in six states – Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska.
These materials are also available free of charge (other than a user’s internet access charges) on the Securities and Exchange Commission’s website at www.sec.gov. Market Areas The Company currently operates 89 full-service retail banking offices, serving nearly 130,000 households in six states – Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska.
Our ability to attract and retain customer deposits depends on our ability to generally provide a rate of return, liquidity and risk comparable to that offered by competing investment opportunities. 38 Table of Contents Competition in originating real estate loans comes primarily from other commercial banks, savings institutions and mortgage bankers making loans secured by real estate located in the Bank’s market area.
Our ability to attract and retain customer deposits depends on our ability to generally provide a rate of return, liquidity and risk comparable to that offered by competing investment opportunities. Competition in originating real estate loans comes primarily from other commercial banks, savings institutions and mortgage bankers making loans secured by real estate located in the Bank’s market area.
The Bank continues to emphasize real estate lending while also expanding and increasing its originations of commercial business loans. The corporate office of Great Southern is located at 218 S. Glenstone, Springfield, Missouri, 65802 and its telephone number at that address is 417-887-4400. Internet Website Bancorp maintains a website at www.greatsouthernbank.com.
The Bank continues to emphasize real estate lending while also expanding and increasing its originations of commercial business loans. The corporate office of Great Southern is located at 218 S. Glenstone, Springfield, Missouri, 65802 and its telephone number at that address is 417-887-4400. 5 Table of Contents Internet Website Bancorp maintains a website at www.greatsouthernbank.com.
At December 31, 2023, the Company had $95.0 million in interest rate swaps on brokered deposits, which were accounted for as fair value hedges. Subsequent to December 31, 2023, 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 December 31, 2023, the Company had $95.0 million in interest rate swaps on brokered deposits, which were accounted for as fair value hedges. 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.
The FHLBank may prescribe the acceptable uses for these advances, as well as other risks on availability, limitations on the size of the advances and repayment provisions. At both December 31, 2023 and 2022, the Bank had no FHLBank term advances outstanding.
The FHLBank may prescribe the acceptable uses for these advances, as well as other risks on availability, limitations on the size of the advances and repayment provisions. At both December 31, 2024 and 2023, the Bank had no FHLBank term advances outstanding.
During the years ended December 31, 2023 and 2022, the Company recognized net gains (losses) of $(337,000) and $321,000 respectively, in non-interest income related to changes in the fair value of interest rate swaps.
During the years ended December 31, 2024, 2023 and 2022, the Company recognized net gains (losses) of $(58,000), $(337,000) and $321,000, respectively, in non-interest income related to changes in the fair value of interest rate swaps.
GSRE Holding had net losses of $2,000 in each of the years ended December 31, 2023 and 2022. GSRE Holding II, L.L.C. Generally, the purpose of GSRE Holding II is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction.
GSRE Holding II had net losses of $2,000 in each of the years ended December 31, 2024 and 2023. GSRE Holding III, L.L.C. Generally, the purpose of GSRE Holding III is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction.
Following are the total classified assets at December 31, 2023 and 2022, per the Bank’s internal asset classification list. The allowances for credit losses reflected below are the portions of the Bank’s total allowances for credit losses relating to these classified loans.
Following are the total classified assets at December 31, 2024 and 2023, per the Bank’s internal asset classification list. The allowances for credit losses reflected below are the portions of the Bank’s total allowances for credit losses relating to these classified loans.
Management considers both on-balance sheet and off-balance sheet transactions in its evaluation of the Company’s liquidity. The nature of these commitments is such that the likelihood of funding them in the aggregate at any one time is low. The Bank’s construction loans generally have a term of eighteen months or less.
Management considers both on-balance sheet and off-balance sheet transactions in its evaluation of the Company’s liquidity. The nature of these commitments is such that the likelihood of funding them in the aggregate at any one time is low. The Bank’s construction loans generally have a term of 18-24 months or less.
However, in all cases, whether a commercial or other loan, the prevailing circumstances may be such that management may determine it is in the best interest of the Bank not to foreclose on the collateral. The following tables set forth our loans by aging as of the dates indicated.
However, in all cases, whether a commercial or other loan, the prevailing circumstances may be such that management may determine it is in the best interest of the Bank not to foreclose on the collateral. ​ 19 Table of Contents The following tables set forth our loans by aging as of the dates indicated.
Subsequent to this announcement, the Bank entered into separate definitive agreements to sell two of the 16 banking centers, including all of the associated deposits (totaling 3 Table of Contents approximately $20 million), to separate bank purchasers. One of those sale transactions was completed on February 19, 2016 and the other was completed on March 18, 2016.
Subsequent to this announcement, the Bank entered into separate definitive agreements to sell two of the 16 banking centers, including all of the associated deposits (totaling approximately $20 million), to separate bank purchasers. One of those sale transactions was completed on February 19, 2016 and the other was completed on March 18, 2016.
Great Southern has continued its commercial lending in all of these geographic areas as well as through our loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. As part of its commercial lending activities, Great Southern issues letters of credit and receives fees averaging approximately 1% of the amount of the letter of credit per year.
Great Southern has continued its commercial lending in all of these geographic areas and in the commercial loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha and Phoenix. As part of its commercial lending activities, Great Southern issues letters of credit and receives fees averaging approximately 1% of the amount of the letter of credit per year.
The availability of funds from loan sales is influenced generally by the level of interest rates, which in turn may impact the volume of originations. Deposits . The Bank attracts both short-term and long-term deposits from the general public by offering a wide variety of accounts and rates and purchases brokered deposits from time to time.
The availability of funds from loan sales is influenced generally by the level of interest rates, which in turn may impact the volume of originations. 33 Table of Contents Deposits . The Bank attracts both short-term and long-term deposits from the general public by offering a wide variety of accounts and rates and purchases brokered deposits from time to time.
Additionally, the Company faces competition from a large number of community banks, many of which have senior management who were previously with other local banks or investor groups with strong local business and community ties. The Company encounters strong competition in attracting deposits throughout its six-state retail footprint.
Additionally, the Company faces competition from a large number of community banks, many of which have senior management who were previously with other local banks or investor groups with strong local business and community ties. 41 Table of Contents The Company encounters strong competition in attracting deposits throughout its six-state retail footprint.
Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of 40 Table of Contents the relevant laws or regulations, could have serious financial, legal and reputational consequences for the institution and could block or substantially delay a merger or other acquisition transaction.
Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing, or to comply with all of the relevant laws or regulations, could have serious financial, legal and reputational consequences for the institution and could block or substantially delay a merger or other acquisition transaction.
Certain investments greater than 5% in companies engaged in activities not permitted for a bank holding company are prohibited. 41 Table of Contents Volcker Rule The federal banking agencies have adopted regulations to implement the provisions of the Dodd-Frank Act known as the Volcker Rule.
Certain investments greater than 5% in companies engaged in activities not permitted for a bank holding company are prohibited. Volcker Rule The federal banking agencies have adopted regulations to implement the provisions of the Dodd-Frank Act known as the Volcker Rule.
In February 2024, the MoDOR confirmed to the Company in writing that it would not exercise its right to appeal this decision to the Missouri State Supreme Court. No other state examinations are in progress at this time. As a result, tax years through December 31, 2019, with few exceptions, are now closed. ​ 47 Table of Contents
In February 2024, the MoDOR confirmed to the Company in writing that it would not exercise its right to appeal this decision to the Missouri State Supreme Court. No other state examinations are in progress at this time. As a result, tax years through December 31, 2020, with few exceptions, are now closed. ​ 51 Table of Contents
These representations, warranties and covenants include those regarding the compliance of loan originations with all applicable legal requirements, mortgage title insurance policies 16 Table of Contents when applicable, enforceable liens on collateral, collateral type, borrower creditworthiness, private mortgage insurance when required and compliance with all applicable federal regulations.
These representations, warranties and covenants include those regarding the compliance of loan originations with all applicable legal requirements, mortgage title insurance policies when applicable, enforceable liens on collateral, collateral type, borrower creditworthiness, private mortgage insurance when required and compliance with all applicable federal regulations.
The Company’s market share in its primary metropolitan statistical areas was as follows at June 30, 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Percentage of Total ​ ​ Metropolitan Statistical Area ​ Branch Offices ​ Market Share ​ Rank ​ Institution with Leading Market Share Position Springfield, MO 19 13.6% ​ 1 Great Southern Bank Sioux City, IA-NE-SD 6 7.0% ​ 4 Security National Bank of Sioux City Davenport/Moline/Rock Island, IA-IL 3 1.3% ​ 20 Quad City Bank and Trust Co.
The Company’s market share in its primary metropolitan statistical areas was as follows at June 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of Percentage of Total ​ ​ Metropolitan Statistical Area ​ Branch Offices ​ Market Share ​ Rank ​ Institution with Leading Market Share Position Springfield, MO 19 13.3% ​ 1 Great Southern Bank Sioux City, IA-NE-SD 6 6.9% ​ 4 Security National Bank of Sioux City Davenport/Moline/Rock Island, IA-IL 3 1.1% ​ 20 Quad City Bank and Trust Co.
Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of 33 Table of Contents 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.
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.
While not specifically required by our policy, we seek to obtain cross-collateralization of loans to a borrower when it is available and it is most frequently done on commercial real estate loans. Loan applications are approved at various levels of authority, depending on the type, amount and loan-to-value ratio of the loan.
While not specifically required by our policy, we seek to obtain cross-collateralization of loans to a borrower when it is available; this is most frequently done on commercial real estate loans. 7 Table of Contents Loan applications are approved at various levels of authority, depending on the type, amount and loan-to-value ratio of the loan.
Other Commercial Lending At December 31, 2023 and 2022, Great Southern had $318 million and $293 million, respectively, in other commercial loans outstanding, or 6.8% and 6.4%, respectively, of the Bank’s total loan portfolio. Great Southern’s other commercial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory and equipment.
Other Commercial Lending At December 31, 2024 and 2023, Great Southern had $209 million and $318 million, respectively, in other commercial loans outstanding, or 4.4% and 6.8%, respectively, of the Bank’s total loan portfolio. Great Southern’s other commercial lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory and equipment.
Fees from prepayments, commitments, letters of credit and late payments totaled $898,000, $1.3 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Loan origination fees, net of related costs, are accounted for in accordance with FASB ASC 310-20, Receivables – Nonrefundable Fees and Other Costs .
Fees from prepayments, commitments, letters of credit and late payments totaled $614,000, $898,000 and $1.3 million for the years ended December 31, 2024, 2023 and 2022, respectively. Loan origination fees, net of related costs, are accounted for in accordance with FASB ASC 310-20, Receivables – Nonrefundable Fees and Other Costs .
Commercial loans are generally secured by business assets, such as accounts receivable, equipment and inventory. As a result, the availability of funds for the repayment of other commercial loans may be substantially dependent on the 14 Table of Contents success of the business itself.
Commercial loans are generally secured by business assets, such as accounts receivable, equipment and inventory. As a result, the availability of funds for the repayment of other commercial loans may be substantially dependent on the success of the business itself.
See Note 3 “Loans and Allowance for Credit Losses” to the accompanying financial statements contained in Item 8 of this Report for additional information regarding the allowance for credit losses. Inherent in this process is the evaluation of individual significant credit relationships.
See Note 3 “Loans and Allowance for Credit Losses” to the accompanying financial statements contained in Item 8 of 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.
Real estate is not included in the definition of “readily marketable collateral.” As computed on the basis of the Bank’s unimpaired capital and surplus at December 31, 2023, this limit was approximately $182 million. See “Government Supervision and Regulation.” At December 31, 2023, the Bank was in compliance with the loans-to-one borrower limit.
Real estate is not included in the definition of “readily marketable collateral.” As computed on the basis of the Bank’s unimpaired capital and surplus at December 31, 2024, this limit was approximately $181 million. See “Government Supervision and Regulation.” At December 31, 2024, the Bank was in compliance with the loans-to-one borrower limit.
The gross proceeds of the offering were used to purchase Junior Subordinated Debentures from the Company totaling $25.8 million and bearing an interest rate identical to the distribution rate on the Trust II securities. The initial interest rate on the Trust II debentures was 6.98%. The interest rate was 7.24% and 6.04% at December 31, 2023 and 2022, respectively.
The gross proceeds of the offering were used to purchase Junior Subordinated Debentures from the Company totaling $25.8 million and bearing an interest rate identical to the distribution rate on the Trust II securities. The initial interest rate on the Trust II debentures was 6.98%. The interest rate was 6.43% and 7.24% at December 31, 2024 and 2023, respectively.
Typically, private mortgage insurance is required for loan amounts above the 80% level. At December 31, 2023 and 2022, loans secured by second liens on residential properties were $87.2 million, or 1.9%, and $82.3 million, or 1.8%, respectively, of our total loan portfolio.
Typically, private mortgage insurance is required for loan amounts above the 80% level. At December 31, 2024 and 2023, loans secured by second liens on residential properties were $87.9 million, or 1.8%, and $87.2 million, or 1.9%, respectively, of our total loan portfolio.
As a Missouri-chartered trust company, Great Southern may invest up to 3%, which was equal to $174.4 million at December 31, 2023, of its assets in service corporations. At December 31, 2023, the Bank’s total investment in Great Southern Real Estate Development Corporation (“Real Estate Development”) was $2.7 million.
As a Missouri-chartered trust company, Great Southern may invest up to 3%, which was equal to $179.4 million at December 31, 2024, of its assets in service corporations. At December 31, 2024, the Bank’s total investment in Great Southern Real Estate Development Corporation (“Real Estate Development”) was $2.7 million.
Great Southern generally retains servicing rights for these participations sold. Great Southern also sells whole residential real estate loans without recourse to Freddie Mac and Fannie Mae as well as to private investors, such as other banks, thrift institutions, mortgage companies and life insurance companies.
Great Southern generally retains servicing rights for these participations sold. 17 Table of Contents Great Southern also sells whole residential real estate loans without recourse to Freddie Mac and Fannie Mae as well as to private investors, such as other banks, thrift institutions, mortgage companies and life insurance companies.
If collection efforts have begun and the modified loan is subsequently deemed collateral-dependent, the loan is placed on non-accrual 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 sales costs.
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.
At December 31, 2023 and 2022, the total uninsured deposits reported here included $802.9 million and $933.1 million, respectively, of deposit accounts of consolidated subsidiaries of the Company. Brokered deposits . Brokered deposits are marketed through national brokerage firms to their customers in $1,000 increments.
At December 31, 2024 and 2023, the total uninsured deposits reported here included $974.1 million and $802.9 million, respectively, of deposit accounts of consolidated subsidiaries of the Company. Brokered deposits . Brokered deposits are marketed through national brokerage firms to their customers in $1,000 increments.
For secured loans originated and held, most lenders have approval authorities of $250,000 or below while twelve Senior Managers have approval authority of varying amounts up to $2 million. Lender approval authorities are also subject to loans-to-one borrower limits of $500,000 or below for most lenders and of varying amounts up to $5 million for Senior Managers and Underwriters.
For secured loans originated for portfolio, most lenders have approval authorities of $250,000 or below while thirteen Senior Managers have approval authority of varying amounts up to $2 million. Lender approval authorities are also subject to loans-to-one borrower limits of $500,000 or below for most lenders and of varying amounts up to $5 million for Senior Managers and Underwriters.
During 2021, we decreased our usage of brokered deposits as we experienced growth in a variety of non-time deposits that year. During 2022 and 2023, as loan demand trended upward and as other deposit sources declined, we again utilized brokered deposits to obtain additional funding.
During 2021, we decreased our usage of brokered deposits as we experienced growth in a variety of non-time deposits that year. Since 2022, as loan demand has trended upward and as other deposit sources have declined, we again have utilized brokered deposits to obtain additional funding.
Generally, the purpose of GSRE Holding III is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction. In 2023 and 2022, GSRE Holding III did not hold any significant real estate assets.
Generally, the purpose of GSRE Holding II is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction. In 2024 and 2023, GSRE Holding II did not hold any significant real estate assets.
The collateral for the loans consists of multiple real estate projects on which a personal guarantee from the principal owner of the borrowing entities was obtained. All loans included in this relationship were current at December 31, 2023. Including this relationship, we had nine loan relationships that each exceeded $50 million at December 31, 2023.
The collateral for the loans consists of multiple real estate projects on which a full personal guarantee from the principal owner of the borrowing entities was obtained. All loans included in this relationship were current at December 31, 2024. Including this relationship, we had nine loan relationships that each equaled or exceeded $50 million at December 31, 2024.
Since December 31, 2008, the commercial construction loan portfolio (including multi-family residential construction) has decreased from 32% of the loan portfolio to 16% of the loan portfolio at December 31, 2023, while, overall, the percentage of commercial real estate loans in the total loan portfolio has trended upward, and was about 33% of the total loan portfolio at December 31, 2023.
Since December 31, 2008, the commercial construction loan portfolio (including multi-family residential construction) has decreased from 32% of the loan portfolio to 8% of the loan portfolio at December 31, 2024, while, overall, the percentage of commercial real estate loans in the total loan portfolio has trended upward, and was about 33% of the total loan portfolio at December 31, 2024.
The following table sets forth loans that were secured by certain types of collateral at December 31, 2023.
The following table sets forth loans that were secured by certain types of collateral at December 31, 2024.
At December 31, 2021 through 2023, this information has been consolidated into one table as Great Southern Loan Portfolio Composition. ​ 8 Table of Contents The following table shows the fixed- and adjustable-rate composition of the Bank’s loan portfolio at the dates indicated. The table is based on information prepared in accordance with generally accepted accounting principles.
At December 31, 2021, 2022, 2023 and 2024, this information has been consolidated into one table as Great Southern Loan Portfolio Composition. ​ 9 Table of Contents The following table shows the fixed- and adjustable-rate composition of the Bank’s loan portfolio at the dates indicated. The table is based on information prepared in accordance with generally accepted accounting principles.
In September 2021, the Company opened a new banking center at 2801 E. 32nd Street in Joplin, Missouri, replacing a nearby leased office. The Company currently has two banking centers serving the Joplin market. In November 2021, the Company consolidated one banking center in the St. Louis region.
In September 2021, the Company opened a new banking center at 2801 E. 32nd Street in Joplin, Missouri, replacing a nearby leased office. The Company currently has two banking centers serving the Joplin market. 4 Table of Contents In November 2021, the Company consolidated one banking center in the St. Louis region.
No interest income was included on these loans for the year ended December 31, 2023. For the year ended December 31, 2022, gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to $292,000. No interest income was included on these loans for the year ended December 31, 2022.
For the year ended December 31, 2022, gross interest income which would have been recorded had the nonaccruing loans been current in accordance with their original terms amounted to $292,000. No interest income was included on these loans for the year ended December 31, 2022.
GSLLC had net losses of $34,000 and $86,000 in the years ended December 31, 2023 and 2022, respectively, which primarily resulted from the tax credits utilized by Great Southern. GSSC, L.L.C. GSSCLLC was organized in 2009.
GSLLC had net losses of $1,000 and $34,000 in the years ended December 31, 2024 and 2023, respectively, which primarily resulted from the tax credits utilized by Great Southern. GSSC, L.L.C. GSSCLLC was organized in 2009.
Beyond the outstanding balance of our construction loans, our loan portfolio possesses increased risk due to the amount of unfunded portions of commercial, residential and other residential (multi-family) loans for the purpose of construction.
Beyond the outstanding balance of our construction loans, our loan portfolio possesses increased risk due to the unfunded portion of commercial, residential and other residential (multi-family) loans for the purpose of construction.
The financial institutions with the top three market share positions in Missouri at June 30, 2023, were U.S. Bank, UMB Bank, and Bank of America, which had a combined market share of 29.9% (based on FDIC market share deposits).
The financial institutions with the top three market share positions in Missouri at June 30, 2024, were UMB Bank, U.S. Bank, and Bank of America, which had a combined market share of 29.1% (based on FDIC market share deposits).
No assurance can be given, however, that the Bank will not be adversely affected by environmental contamination. Residential Real Estate Lending At December 31, 2023 and 2022, loans secured by residential real estate, excluding that which is under construction, totaled $1.8 billion and $1.7 billion, respectively, and represented approximately 39.4% and 36.8%, respectively, of the Bank’s total loan portfolio.
No assurance can be given, however, that the Bank will not be adversely affected by environmental contamination. Residential Real Estate Lending At December 31, 2024 and 2023, loans secured by residential real estate, excluding that which is under construction, totaled $2.4 billion and $1.8 billion, respectively, and represented approximately 50.1% and 39.4%, respectively, of the Bank’s total loan portfolio.
During the year ended December 31, 2023, principal forgiveness of $563,000 was completed on commercial business loans and consumer loans. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ Interest Rate ​ Term ​ ​ ​ Total ​ ​ Reduction ​ Extension ​ Combination ​ Modifications ​ (In Thousands) Construction and land development ​ $ — ​ $ — ​ $ 1,553 ​ $ 1,553 One- to four-family residential ​ — ​ — ​ — ​ — Other residential ​ — ​ 2,750 ​ — ​ 2,750 Commercial real estate ​ — ​ 77 ​ 20,365 ​ 20,442 Commercial business ​ — ​ — ​ — ​ — Consumer ​ 5 ​ 7 ​ — ​ 12 ​ ​ $ 5 ​ $ 2,834 ​ $ 21,918 ​ $ 24,757 ​ ​ 22 Table of Contents The Company closely monitors the performance of loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of its modification efforts.
During the year ended December 31, 2024, principal forgiveness totaling $295,000 was completed on consumer loans and a land development loan, compared to principal forgiveness totaling $563,000 that was completed on commercial business loans and consumer loans during the year ended December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2024 ​ ​ Interest Rate ​ Term ​ ​ ​ Total ​ ​ Reduction Extension Combination Modifications ​ ​ (In Thousands) Construction and land development ​ $ — ​ $ — ​ $ — ​ $ — One- to four-family residential ​ — ​ — ​ — ​ — Other residential ​ — ​ 2,709 ​ — ​ 2,709 Commercial real estate ​ — ​ 70 ​ — ​ 70 Commercial business ​ — ​ — ​ — ​ — Consumer ​ — ​ 31 ​ — ​ 31 ​ ​ $ — ​ $ 2,810 ​ $ — ​ $ 2,810 ​ 24 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, 2023 ​ ​ Interest Rate ​ Term ​ ​ ​ ​ Total ​ Reduction Extension Combination Modifications ​ ​ (In Thousands) Construction and land development ​ $ — ​ $ — ​ $ 1,553 ​ $ 1,553 One- to four-family residential ​ — ​ — ​ — ​ — Other residential ​ — ​ 2,750 ​ — ​ 2,750 Commercial real estate ​ — ​ 77 ​ 20,365 ​ 20,442 Commercial business ​ — ​ — ​ — ​ — Consumer ​ 5 ​ 7 ​ — ​ 12 ​ ​ $ 5 ​ $ 2,834 ​ $ 21,918 ​ $ 24,757 ​ 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 Bank sold one- to four-family whole real estate loans, SBA-guaranteed loans and loan participations in aggregate amounts of $154.9 million, $100.8 million and $341.9 million during fiscal 2023, 2022 and 2021, respectively. The Bank typically sells long-term fixed rate mortgages.
The Bank sold one- to four-family whole real estate loans, SBA-guaranteed loans and loan participations in aggregate amounts of $171.0 million, $154.9 million and $100.8 million during fiscal 2024, 2023 and 2022, respectively. The Bank typically sells long-term fixed rate mortgages.
Employees and Human Capital Resources At December 31, 2023, the Company and its affiliates had a total of 1,133 employees, including 219 part-time employees. None of the Company’s employees are represented by any collective bargaining agreement. Management considers its employee relations to be good. Our human capital objectives include attracting, training, motivating, rewarding and retaining our employees.
Employees and Human Capital Resources At December 31, 2024, the Company and its affiliates had a total of 1,108 employees, including 226 part-time employees. None of the Company’s employees are represented by any collective bargaining agreement. Management considers its employee relations to be good. Our human capital objectives include attracting, training, motivating, rewarding and retaining our employees.
Generally, the purpose of Real Estate Development is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction. During 2023 and 2022, Real Estate Development did not hold any real estate assets related to foreclosed property.
Great Southern Real Estate Development Corporation. Generally, the purpose of Real Estate Development is to hold real estate assets which have been obtained through foreclosure by the Bank and which require ongoing operation of a business or completion of construction. During 2024 and 2023, Real Estate Development did not hold any real estate assets related to foreclosed property.
Great Southern subjects these loans to its normal underwriting standards used for originated loans and rejects any credits that do not meet those guidelines. The originating bank generally retains the servicing of these loans. The Bank purchased $400,000 and $361.8 million of these loans in the fiscal years ended December 31, 2023 and 2022, respectively.
Great Southern subjects these loans to its normal underwriting standards used for originated loans and rejects any credits that do not meet those guidelines. The originating bank generally retains the servicing of these loans. The Bank purchased $26.3 million and $400,000 of these loans in the fiscal years ended December 31, 2024 and 2023, respectively.
Prior to 2020, the Missouri corporate income tax rate was 6.25%. The Bank also has full-service offices in Iowa, Kansas, Minnesota, Nebraska and Arkansas, and has commercial loan production offices in Arizona, Colorado, Georgia, Illinois, Nebraska, North Carolina, Oklahoma, and Texas.
Prior to 2020, the Missouri corporate income tax rate was 6.25%. 50 Table of Contents The Bank also has full-service offices in Iowa, Kansas, Minnesota, Nebraska and Arkansas, and has commercial loan production offices in Arizona, Colorado, Georgia, Illinois, Nebraska, North Carolina and Texas.
This may limit Great Southern’s ability to control its credit risk when it purchases participations in these loans. For instance, the terms of participation agreements vary; however, generally Great Southern may not have direct access to the borrower, and the institution administering the loan may have some discretion in the administration of performing loans and the collection of non-performing loans.
This may limit Great Southern’s ability to control its credit risk when it purchases participations in these loans. Although the terms of participation agreements vary, generally Great Southern does not have direct access to the borrower, and the institution administering the loan has some discretion in the administration of performing loans and the collection of non-performing loans.
In 2013 through 2023, these delinquencies trended much lower. 12 Table of Contents In underwriting one- to four-family residential real estate loans, Great Southern evaluates the borrower’s ability to make monthly payments and the value of the property securing the loan.
From 2013 through 2024, these delinquencies trended much lower. 13 Table of Contents In underwriting one- to four-family residential real estate loans, Great Southern evaluates the borrower’s ability to make monthly payments and the value of the property securing the loan.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe allowance for credit losses is measured using an average historical loss model which 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.
Biggest changeThis risk is affected by, among other things: ● cash flows of the borrower and/or the project being financed; ● in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; ● the credit history of a particular borrower; ● changes in economic and industry conditions; and ● the duration of the loan. 55 Table of Contents The allowance for credit losses is measured using an average historical loss model which 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.
These risks include, but are not limited to, changes in demand for our products and services; increased loan losses or other impairments in our loan portfolios and increases in our allowance for loan losses; a decline in collateral for our loans, especially real estate; unanticipated unavailability of employees; increased cyber security risks to the extent employees work remotely; a prolonged weakness in economic conditions; and increased costs as we and our regulators, customers and third-party service providers adapt to evolving pandemic conditions.
These risks include, but are not limited to, changes in demand for our products and services; increased loan losses or other impairments in our loan portfolios and increases in our allowance for loan losses; a decline in collateral for our loans, especially real estate; unanticipated unavailability of employees; increased cyber security risks to the extent employees work remotely; a prolonged weakness in economic conditions; and increased costs as we and our regulators, customers and third-party service providers adapt to evolving conditions.
The market value of our common stock will likely continue to fluctuate in response to a number of factors including the following, most of which are beyond our control, as well as the other factors described in this “Risk Factors” section: ● actual or anticipated quarterly fluctuations in our operating and financial results; ● developments related to investigations, proceedings or litigation that involve us; ● changes in financial estimates and recommendations by financial analysts; ● dispositions, acquisitions and financings; 57 Table of Contents ● actions of our current stockholders, including sales of common stock by existing stockholders and our directors and executive officers; ● fluctuations in the stock price and operating results of our competitors; ● regulatory developments; and ● other developments related to the financial services industry.
The market value of our common stock will likely continue to fluctuate in response to a number of factors including the following, most of which are beyond our control, as well as the other factors described in this “Risk Factors” section: ● actual or anticipated quarterly fluctuations in our operating and financial results; ● developments related to investigations, proceedings or litigation that involve us; ● changes in financial estimates and recommendations by financial analysts; ● dispositions, acquisitions and financings; ● actions of our current stockholders, including sales of common stock by existing stockholders and our directors and executive officers; ● fluctuations in the stock price and operating results of our competitors; 62 Table of Contents ● regulatory developments; and ● other developments related to the financial services industry.
Although we have historically paid cash dividends on our common stock, we are not required to do so and our board of directors could reduce, suspend or eliminate our common stock cash dividend in the future. 58 Table of Contents If we defer payments of interest on our outstanding junior subordinated debt securities or if certain defaults relating to those debt securities occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation payments with respect to, our common stock.
Although we have historically paid cash dividends on our common stock, we are not required to do so and our board of directors could reduce, suspend or eliminate our common stock cash dividend in the future. 63 Table of Contents If we defer payments of interest on our outstanding junior subordinated debt securities or if certain defaults relating to those debt securities occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation payments with respect to, our common stock.
Specifically, under regulations adopted by the Federal Reserve Board, (a) any other bank holding company may be required to obtain the approval of the Federal Reserve Board to acquire or retain 5% or more of our common stock and (b) any person other than a bank holding company may be required to obtain the approval of the Federal Reserve Board to acquire or retain 10% or more of our common stock. 59 Table of Contents These provisions may discourage potential takeover attempts, discourage bids for our common stock at a premium over market price or adversely affect the market price of, and the voting and other rights of the holders of, our common stock.
Specifically, under regulations adopted by the Federal Reserve Board, (a) any other bank holding company may be required to obtain the approval of the Federal Reserve Board to acquire or retain 5% or more of our common stock and (b) any person other than a bank holding company may be required to obtain the approval of the Federal Reserve Board to acquire or retain 10% or more of our common stock. 64 Table of Contents These provisions may discourage potential takeover attempts, discourage bids for our common stock at a premium over market price or adversely affect the market price of, and the voting and other rights of the holders of, our common stock.
Such events could also affect the stability of our deposit base, cause significant property damage, adversely affect our employees, adversely impact the values of collateral securing our loans and/or interfere with our borrowers’ abilities to repay their debt obligations to us. ​ 49 Table of Contents Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.
Such events could also affect the stability of our deposit base, cause significant property damage, adversely affect our employees, adversely impact the values of collateral securing our loans and/or interfere with our borrowers’ abilities to repay their debt obligations to us. 53 Table of Contents Climate change and related legislative and regulatory initiatives may result in operational changes and expenditures that could significantly impact our business.
The core system is integrated with various other applications that are used to service customer requests by Bank personnel or directly by customers (such as online banking and mobile applications). Changing the core system will subject the Company to operational risks during and after the conversion, including disruptions to its technology systems, which may adversely impact our customers.
The core system is integrated with various other applications that are used to service customer requests by Bank personnel or directly by customers (such as online banking and mobile applications). Changing the core system would subject the Company to operational risks during and after the conversion, including disruptions to its technology systems, which may adversely impact our customers.
Since our business is primarily concentrated in Missouri, Iowa, Kansas and Minnesota, a significant downturn in these state or local economies, particularly in the St. Louis and Springfield, Missouri areas, may adversely affect our business. We also have originated a significant dollar amount of loans in Texas from our commercial loan production office in Dallas.
Since our business is primarily concentrated in Missouri, Iowa, Kansas and Minnesota, a significant downturn in these state or local economies, particularly in the St. Louis and Springfield, Missouri areas, may adversely affect our business. We also have originated a significant dollar amount of loans in Texas through our commercial loan production office in Dallas.
The Company has plans, policies and procedures designed to prevent or limit the risks of a failure during or after the conversion of our core system. However, there can be no assurance that any such adverse developments will not occur or, if they do occur, that they will be timely and adequately remediated.
The Company has plans, policies and procedures designed to prevent or limit the risks of a failure during or after the conversion of our core systems. However, there can be no assurance that any such adverse developments will not occur or, if they do occur, that they will be timely and adequately remediated.
As of December 31, 2023, we had outstanding $25.8 million aggregate principal amount of junior subordinated debt securities issued in connection with the sale of trust preferred securities by one of our subsidiaries that is a statutory business trust. We have also guaranteed those trust preferred securities.
As of December 31, 2024, we had outstanding $25.8 million aggregate principal amount of junior subordinated debt securities issued in connection with the sale of trust preferred securities by one of our subsidiaries that is a statutory business trust. We have also guaranteed those trust preferred securities.
Although we believe the economy in these areas has recently been favorable relative to other areas, we do not know whether these conditions will continue. Until the past few years, our greatest concentration of loans and deposits has traditionally been in the greater Springfield area.
Although we believe the economy in these areas has recently been favorable relative to other areas, we do not know whether these conditions will continue. Until the past several years, our greatest concentration of loans and deposits has traditionally been in the greater Springfield area.
In addition to the Turner family members, we are aware of other beneficial owners of more than five percent of the outstanding shares of our common stock. One of these beneficial owners is also a director of the Company. As of December 31, 2023, one of the Company’s directors, Earl A.
In addition to the Turner family members, we are aware of other beneficial owners of more than five percent of the outstanding shares of our common stock. One of these beneficial owners is also a director of the Company. As of December 31, 2024, one of the Company’s directors, Earl A.
We have experienced times during which acquisitions could not be made in specific markets at prices our management considered acceptable and expect that we will experience this condition in the future in one or more markets; 53 Table of Contents ● The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity in order to make the transaction economically feasible.
We have experienced times during which acquisitions could not be made in specific markets at prices our management considered acceptable and expect that we will experience this condition in the future in one or more markets; ● The acquisition of other entities generally requires integration of systems, procedures and personnel of the acquired entity in order to make the transaction economically feasible.
Our total commercial real estate loans exceeded the 300% threshold at December 31, 2023. We may see our non-owner occupied commercial real estate lending grow as a percentage of total regulatory capital, or we may slow the growth of this type of lending activity.
Our total commercial real estate loans exceeded the 300% threshold at December 31, 2024. We may see our non-owner occupied commercial real estate lending grow as a percentage of total regulatory capital, or we may slow the growth of this type of lending activity.
The Company’s Chairman of the Board, William V. Turner, and the Company’s Director, President and Chief Executive Officer, Joseph W. Turner, are father and son, respectively. Julie Turner Brown, a director of the Company, is the sister of Joseph Turner and the daughter of William Turner. These three Turner family members hold three of the Company’s nine Board positions.
The Company’s Chairman of the Board, William V. Turner, and the Company’s Director, President and Chief Executive Officer, Joseph W. Turner, are father and son, respectively. Julie Turner Brown, a director of the Company, is the sister of Joseph Turner and the daughter of William Turner. These three Turner family members hold three of the Company’s ten Board positions.
If any of these risks occur, it could result in material adverse consequences for us. 55 Table of Contents We continually encounter technological change, and we may have fewer resources than many of our competitors to continue to invest in technological improvements. The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products and services.
If any of these risks occur, it could result in material adverse consequences for us. We continually encounter technological change, and we may have fewer resources than many of our competitors to continue to invest in technological improvements. The financial services industry is undergoing rapid technological changes, with frequent introductions of new technology-driven products and services.
Steinert, beneficially owned 939,596 shares of our common stock (excluding 7,000 shares underlying stock options exercisable as of or within 60 days after that date), representing approximately 8.0% of total shares outstanding.
Steinert, beneficially owned 939,596 shares of our common stock (excluding 4,000 shares underlying stock options exercisable as of or within 60 days after that date), representing approximately 8.0% of total shares outstanding.
A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or complete a timely sale of the underlying property. We plan to continue to originate commercial real estate and construction loans based on economic and market conditions.
A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or complete a timely sale of the underlying property. 54 Table of Contents We plan to continue to originate commercial real estate and construction loans based on economic and market conditions.
Because of the increased risks related to 50 Table of Contents these types of loans, we may determine it necessary to increase the level of our provision for credit losses. Increased provisions for credit losses would adversely impact our operating results. See “Item 1.
Because of the increased risks related to these types of loans, we may determine it necessary to increase the level of our provision for credit losses. Increased provisions for credit losses would adversely impact our operating results. See “Item 1.
With a population of approximately 485,000, the greater Springfield area is the third largest metropolitan area in Missouri.
With a population of approximately 491,000, the greater Springfield area is the third largest metropolitan area in Missouri.
In the second half of 2023, inflation measures moderated but are still higher than levels targeted by the FRB. Small to medium-sized businesses may be impacted more during periods of high inflation, as they are not able to leverage economics of scale to mitigate cost pressures compared to larger businesses.
In the second half of 2023 and into 2024, inflation measures moderated but were still higher than levels targeted by the FRB. Small to medium-sized businesses may be impacted more during periods of high inflation, as they are not able to leverage economies of scale to mitigate cost pressures compared to larger businesses.
Our commercial and other residential (multi-family) construction, commercial real estate, other residential (multi-family) and other commercial loans accounted for approximately 77.1% of our total loan portfolio as of December 31, 2023. Generally, we consider these types of loans to involve a higher degree of risk compared to first mortgage loans on one- to four-family, owner-occupied residential properties.
Our commercial and other residential (multi-family) construction, commercial real estate, other residential (multi-family) and other commercial loans accounted for approximately 78.8% of our total loan portfolio as of December 31, 2024. Generally, we consider these types of loans to involve a higher degree of risk compared to first mortgage loans on one- to four-family, owner-occupied residential properties.
Severe weather and other natural disasters, acts of war or terrorism, new public health issues or other adverse external events could harm our business. Severe weather and other natural disasters, acts of war or terrorism, new public health issues or other adverse external events could have a significant impact on our ability to conduct business.
Severe weather and other natural disasters, acts of war or terrorism or other adverse external events could harm our business. Severe weather and other natural disasters, acts of war or terrorism or other adverse external events could have a significant impact on our ability to conduct business.
At December 31, 2023, approximately $354.8 million, or 7.6%, of our loan portfolio consisted of loans to borrowers in or secured by properties in the Springfield metropolitan area. ​ In addition to the concentrations in the southwest Missouri area, we now have our largest concentration of loans to borrowers in or secured by properties in the St. Louis metropolitan area.
At December 31, 2024, approximately $372.0 million, or 7.8%, of our loan portfolio consisted of loans to borrowers in or secured by properties in the Springfield metropolitan area. ​ In addition to the concentrations in the southwest Missouri area, we now have our largest concentration of loans to borrowers in or secured by properties in the St. Louis metropolitan area.
We are subject to extensive federal and state legislation, regulation, examination and supervision. Recently enacted, proposed and future legislation and regulations have had, will continue to have, or may have an adverse effect on our business and operations. Our success depends on our continued ability to maintain compliance with the various regulations to which we are subject.
Recently enacted, proposed and future legislation and regulations have had, will continue to have, or may have an adverse effect on our business and operations. Our success depends on our continued ability to maintain compliance with the various regulations to which we are subject.
Real estate values can also be affected by governmental rules or policies and, as noted below, natural disasters. Inflationary pressures and rising prices may affect our results of operations and financial condition. Inflation has risen sharply since the end of 2021 to levels not seen in more than 40 years.
Real estate values can also be affected by governmental rules or policies and, as noted below, natural disasters. Inflationary pressures and rising or sustained high prices may affect our results of operations and financial condition. Inflation rose sharply from the end of 2021 to mid-2024 to levels not seen in more than 40 years.
In addition, a substantial portion of our loans (approximately 61% of our total loan portfolio as of December 31, 2023) have adjustable rates of interest.
In addition, a substantial portion of our loans (approximately 63% of our total loan portfolio as of December 31, 2024) have adjustable rates of interest.
As of December 31, 2023, they also collectively beneficially owned approximately 2,108,835 shares of the Company’s common stock (excluding 85,876 shares underlying stock options exercisable as of or within 60 days after that date), representing approximately 17.9% of total shares outstanding, though they are subject to the voting limitation provision in our charter which precludes any person or group with beneficial ownership in excess of 10% of total shares outstanding from voting shares in excess of that threshold.
As of December 31, 2024, they also collectively beneficially owned approximately 2,089,498 shares of the Company’s common stock (excluding 82,402 shares underlying stock options exercisable as of or within 60 days after that date), representing approximately 17.8% of total shares outstanding, though they are subject to the voting limitation provision in our charter which precludes any person or group with beneficial ownership in excess of 10% of total shares outstanding from voting shares in excess of that threshold.
We could be subject to a number of risks as the result of the COVID-19 pandemic, or other similar crises, any of which could have a material adverse effect on our business, financial condition, liquidity and results of operations.
We could be subject to a number of risks as the result of any such crises, which could have a material adverse effect on our business, financial condition, liquidity and results of operations.
Business-- Government Supervision and Regulation-Guidance on Commercial Real Estate Concentrations”). For purposes of this guidance, “commercial real estate” includes, among other types, other residential (multi-family) loans and non-owner occupied nonresidential loans, two categories which have been a source of loan growth for the Company.
For purposes of this guidance, “commercial real estate” includes, among other types, other residential (multi-family) loans and non-owner occupied nonresidential loans, two categories which have been a source of loan growth for the Company.
Furthermore, a prolonged period of inflation could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition. The economic impact of the COVID-19 pandemic, or similar crises, could continue to adversely affect us.
Furthermore, a prolonged period of inflation could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition. The economic impact of new or continuing public health issues, or similar crises, could continue to adversely affect us.
Our brokered deposits and term FHLBank advances totaled $661.5 million and $-0- at December 31, 2023, compared with $411.5 million and $-0- at December 31, 2022. We had overnight borrowings from the FHLBank of $251.0 million and $88.5 million at December 31, 2023 and 2022, respectively.
Our brokered deposits and term FHLBank advances totaled $772.1 million and $-0-, respectively, at December 31, 2024, compared with $661.5 million and $-0-, respectively, at December 31, 2023. We had overnight borrowings from the FHLBank of $333.0 million and $251.0 million at December 31, 2024 and 2023, respectively.
The shares that can be voted by the Turner family members (1,180,443 shares as of December 31, 2023, per the ten percent voting limitation in our charter) and the shares beneficially owned by Mr. Steinert (939,596) total 2,120,039, representing approximately 18.0% of total shares outstanding.
The shares that can be voted by the Turner family members (1,172,355 shares as of December 31, 2024, per the ten percent voting limitation in our charter) and the shares beneficially owned by Mr. Steinert (939,596) total 2,111,951, representing approximately 18.0% of total shares outstanding.
At December 31, 2023, including completed projects and those under construction, we had $1.50 billion of loans secured by apartments, $319.2 million of loans secured by retail-related projects, $291.8 million of loans secured by warehouse facilities, $287.3 million of loans secured by healthcare facilities, $254.6 million of loans secured by motels/hotels and $215.0 million of loans secured by office facilities, which are particularly sensitive to certain risks, including the following: ● large loan balances owed by a single borrower; ● payments that are dependent on the successful operation of the project; and ● loans that are more directly impacted by adverse conditions in the real estate market or the economy generally.
At December 31, 2024, including completed projects and those under construction, we had $1.75 billion of loans secured by apartments, $348.6 million of loans secured by retail-related projects, $288.4 million of loans secured by warehouse facilities, $270.0 million of loans secured by healthcare facilities, $269.0 million of loans secured by motels/hotels and $196.1 million of loans secured by office facilities, which are particularly sensitive to certain risks, including the following: ● large loan balances owed by a single borrower; ● payments that are dependent on the successful operation of the project; and ● loans that are more directly impacted by adverse conditions in the real estate market or the economy generally.
If the Company or the Bank fails to meet these minimum capital guidelines and other regulatory requirements, our financial condition and results of operations could be materially and adversely affected and could compromise the status of the Company as a financial holding company. See “Item 1.-The Company -Government Supervision and Regulation” in this Report.
If the Company or the Bank fails to meet these minimum capital guidelines and other regulatory requirements, our financial condition and results of operations could be materially and adversely affected and could compromise the status of the Company as a financial holding company.
At December 31, 2023, approximately $502.0 million, or 10.8%, of our loan portfolio consisted of loans primarily for various types of commercial real estate in Texas. With the FDIC-assisted transactions that were completed in 2009-2014, we have additional concentrations of loans in the Minneapolis metropolitan area and in Western, Eastern and Central Iowa.
At December 31, 2024, approximately $586.4 million, or 12.3%, of our loan portfolio consisted of loans primarily for various types of commercial real estate in Texas. 52 Table of Contents With the FDIC-assisted transactions that were completed in 2009-2014, we have additional concentrations of loans in the Minneapolis metropolitan area and in Western, Eastern and Central Iowa.
At December 31, 2023, approximately $788.6 million, or 16.9%, of our loan portfolio consisted of loans for apartments and other types of commercial real estate properties in the St. Louis metropolitan area. Also, we have a significant amount of loans to borrowers in or secured by properties in Texas.
At December 31, 2024, approximately $781.4 million, or 16.4%, of our loan portfolio consisted of loans for apartments and other types of commercial real estate properties in the St. Louis metropolitan area. Also, we have a significant amount of loans to borrowers in or secured by properties in Texas, primarily through our commercial loan production office in Dallas.
At December 31, 2023, the Bank owned $14.7 million of stock in the FHLBank of Des Moines, which declared and paid an annualized dividend approximating 8.50% during the fourth quarter of 2023.
At December 31, 2024, the Bank owned $18.5 million of stock in the FHLBank of Des Moines, which declared and paid an annualized dividend approximating 9.50% during the fourth quarter of 2024.
We expect to continue to utilize FHLBank advances and overnight borrowings and brokered deposits from time to time as a supplemental funding source. Additionally, we have approved collateralized borrowing lines with the FRBSTL. In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s BTFP.
We expect to continue to utilize FHLBank advances and overnight borrowings and brokered deposits from time to time as a supplemental funding source. In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s BTFP. The borrowing matured and was repaid in January 2025.
The Company plans to replace its core operating systems, including those for loans, deposits, financials and other ancillary systems (collectively referred to as core system). The core system is used to track customer relationships and accounts and report financial information for the Company.
If the Company replaces its core operating systems, including those for loans, deposits, financials and other ancillary systems (collectively referred to as core system), such systems conversions entail significant operational risks. The core system is used to track customer relationships and accounts and report financial information for the Company.
For additional information, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” The fair value of our investment securities can fluctuate due to market conditions outside of our control. Factors beyond our control can significantly influence the fair value of securities in our investment securities portfolio and can cause potential adverse changes to the fair value of these securities.
For additional information, see Item 7A. “Quantitative and Qualitative Disclosures About Market Risk.” 56 Table of Contents The fair value of our investment securities can fluctuate due to market conditions outside of our control.
If our third-party providers encounter difficulties, or if we have difficulty in communicating with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely impacted.
If our third-party providers encounter difficulties, or if we have difficulty in communicating with them, our ability to adequately process and account for transactions could be affected, and our business operations could be adversely impacted. Threats to information security also exist in the processing of client information through various other vendors and their personnel.
Our ability to borrow could also be impaired by factors that are not specific to us, such as severe disruption of the financial markets or negative news and expectations about the prospects for the financial services industry as a whole. ​ 52 Table of Contents Our operations may depend upon our continued ability to access brokered deposits, Federal Home Loan Bank advances and Federal Reserve Bank borrowings.
Our ability to borrow could also be impaired by factors that are not specific to us, such as severe disruption of the financial markets or negative news and expectations about the prospects for the financial services industry as a whole.
Should we be required by regulatory authorities or otherwise elect to raise additional capital, we may seek to do so through the issuance of, among other things, our common stock or securities convertible into our common stock, which could dilute an existing stockholder’s ownership interest in the Company.
Should we be required by regulatory authorities or otherwise elect to raise additional capital, we may seek to do so through the issuance of, among other things, our common stock or securities convertible into our common stock, which could dilute an existing stockholder’s ownership interest in the Company. 58 Table of Contents Our ability to raise additional capital, if needed or desired, will depend on conditions in the capital markets at that time, which are outside our control, and on our financial condition and performance.
The extent of this impact will depend on future developments, which are highly uncertain. Additionally, the responses of various governmental and nongovernmental authorities and consumers to the pandemic may have material long-term effects on the Company and its customers, which are difficult to quantify in the near-term or long-term.
Additionally, the responses of various governmental and nongovernmental authorities and consumers to any new or continuing public health issues may have material long-term effects on the Company and its customers, which are difficult to quantify in the near-term or long-term.
Bank regulators can restrict our access to these sources of funds in certain circumstances. For example, if the Bank’s regulatory capital ratios declined below the “well-capitalized” status, banking regulators would require the Bank to obtain their approval prior to obtaining or renewing brokered deposits.
For example, if the Bank’s regulatory capital ratios declined below the “well-capitalized” status, banking regulators would require the Bank to obtain their approval prior to obtaining or renewing brokered deposits. The regulators might not approve our acceptance of brokered deposits in amounts that we desire or at all.
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. The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending (see “Item 1.
See “Item 1.-The Company -Government Supervision and Regulation” in this Report. 59 Table of Contents 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.
Our ability to raise additional capital, if needed or desired, will depend on conditions in the capital markets at that time, which are outside our control, and on our financial condition and performance. Accordingly, we cannot make assurances of our ability to raise additional capital if needed or desired, or on terms that will be acceptable to us.
Accordingly, we cannot make assurances of our ability to raise additional capital if needed or desired, or on terms that will be acceptable to us.
At December 31, 2023, approximately $401.1 million, or 8.6%, and $279.2 million, or 6.0%, of our loan portfolio consisted of loans primarily for various types of commercial real estate in Minnesota 48 Table of Contents and Iowa, respectively.
At December 31, 2024, approximately $354.7 million, or 7.4%, and $355.3 million, or 7.4%, of our loan portfolio consisted of loans primarily for various types of commercial real estate in Minnesota and Iowa, respectively.
Any of these occurrences could have a material adverse effect on our business, financial condition and results of operations. Our controls and procedures may be ineffective. We regularly review and update our internal controls, disclosure controls and procedures and corporate governance policies and procedures. As a result, we may incur increased costs to maintain and improve our controls and procedures.
We regularly review and update our internal controls, disclosure controls and procedures and corporate governance policies and procedures. As a result, we may incur increased costs to maintain and improve our controls and procedures.
Net interest income is the difference between interest income earned on interest-earning assets such as loans and investment securities and interest expense paid on interest-bearing liabilities such as deposits and borrowed funds.
Risks Relating to Market Interest Rates We may be adversely affected by interest rate changes. Our earnings are largely dependent upon our net interest income. Net interest income is the difference between interest income earned on interest-earning assets such as loans and investment securities and interest expense paid on interest-bearing liabilities such as deposits and borrowed funds.
Any increase in our allowance for credit losses or loan charge-offs as required by these regulatory authorities might have a material adverse effect on our financial condition and results of operations. Risks Relating to Market Interest Rates We may be adversely affected by interest rate changes. Our earnings are largely dependent upon our net interest income.
In addition, bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or recognize further loan charge-offs. Any increase in our allowance for credit losses or loan charge-offs as required by these regulatory authorities might have a material adverse effect on our financial condition and results of operations.
Certain Federal Home Loan Banks, including the Federal Home Loan Bank of Des Moines, have experienced lower earnings from time to time and paid out lower dividends to their members.
If Great Southern were to cease meeting these conditions, our access to FHLBank advances could be significantly reduced or eliminated. 57 Table of Contents Certain Federal Home Loan Banks, including the Federal Home Loan Bank of Des Moines, have experienced lower earnings from time to time and paid out lower dividends to their members.
Market credit and liquidity concerns may also impact the availability and cost of brokered deposits. Similarly, FHLBank advances are only available to borrowers that meet certain conditions. If Great Southern were to cease meeting these conditions, our access to FHLBank advances could be significantly reduced or eliminated.
In addition, the availability of brokered deposits and the rates paid on these brokered deposits may be volatile as the balance of the supply of and the demand for brokered deposits changes. Market credit and liquidity concerns may also impact the availability and cost of brokered deposits. Similarly, FHLBank advances are only available to borrowers that meet certain conditions.
Some of these institutions conduct business primarily over the Internet and may thus be able to realize certain cost savings and offer products and services at more favorable rates and with greater convenience to the customer. 54 Table of Contents Risks Relating to Regulation Our business may be adversely affected by the highly regulated environment in which we operate, including the various capital adequacy guidelines we are required to meet.
We also experience competition from a variety of institutions outside of our market areas. Some of these institutions conduct business primarily over the Internet and may thus be able to realize certain cost savings and offer products and services at more favorable rates and with greater convenience to the customer.
We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our clients. The Company plans to convert its core operating systems and may encounter significant adverse developments.
We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our clients. Our current and future uses of Artificial Intelligence (AI) and other emerging technologies may create additional risks.
Threats to information security also exist in the processing of client information through various other vendors and their personnel. 56 Table of Contents The occurrence of any systems failure or interruption could damage our reputation and result in a loss of clients and business, or could expose us to legal liability.
The occurrence of any systems failure or interruption could damage our reputation and result in a loss of clients and business, or could expose us to legal liability. Any of these occurrences could have a material adverse effect on our business, financial condition and results of operations. 61 Table of Contents Our controls and procedures may be ineffective.
Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions. 51 Table of Contents In addition, bank regulators periodically review our allowance for credit losses and may require us to increase our provision for credit losses or recognize further loan charge-offs.
The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a modification will be executed. Additionally, the allowance for credit losses considers other qualitative factors not included in historical loss rates or macroeconomic forecast such as changes in portfolio composition, underwriting practices, or significant unique events or conditions.
The COVID-19 pandemic adversely impacted the global and national economy and certain industries and geographies in which our customers reside and operate. Because of its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on the Company and its customers, employees and third-party service providers.
Because of their potential ongoing and changing nature regarding severity and broad coverage, it is difficult to predict the full impact of any such crises on the Company and its customers, employees and third-party service providers. The extent of this impact will depend on future developments, which are highly uncertain.
Removed
This risk is affected by, among other things: ● cash flows of the borrower and/or the project being financed; ● in the case of a collateralized loan, the changes and uncertainties as to the future value of the collateral; ● the credit history of a particular borrower; ● changes in economic and industry conditions; and ● the duration of the loan.
Added
New or continuing public health issues could adversely impact the global and national economy and certain industries and geographies in which our customers reside and operate.
Removed
The contractual term excludes expected extensions, renewals and modifications unless there is a reasonable expectation that a modification will be executed.
Added
Factors beyond our control can significantly influence the fair value of securities in our investment securities portfolio and can cause potential adverse changes to the fair value of these securities.
Removed
The borrowing, which matures in January 2025 and has a fixed interest rate of 4.83%, may be repaid in full or in part without penalty prior to its stated maturity date. The line is secured primarily by the Bank’s held-to-maturity investment securities, with assets pledged totaling approximately $191 million.
Added
Our operations may depend upon our continued ability to access brokered deposits, Federal Home Loan Bank advances and/or Federal Reserve Bank borrowings.
Removed
The regulators might not approve our acceptance of brokered deposits in amounts that we desire or at all. In addition, the availability of brokered deposits and the rates paid on these brokered deposits may be volatile as the balance of the supply of and the demand for brokered deposits changes.
Added
The line was secured primarily by the Bank’s held-to-maturity investment securities, with assets pledged totaling approximately $188 million as of December 31, 2024. Bank regulators can restrict our access to these sources of funds in certain circumstances.
Removed
We also experience competition from a variety of institutions outside of our market areas.
Added
Risks Relating to Regulation Our business may be adversely affected by the highly regulated environment in which we operate, including the various capital adequacy guidelines we are required to meet. We are subject to extensive federal and state legislation, regulation, examination and supervision.
Added
The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending (see “Item 1. Business-- Government Supervision and Regulation-Guidance on Commercial Real Estate Concentrations”).
Added
The increasing adoption of AI in financial services presents significant opportunities but also introduces a range of risks that could impact our operations, regulatory compliance, and customer trust. AI introduces model risk, where flawed algorithms or biased data could result in inaccurate credit decisions, compliance violations, or discriminatory outcomes in lending or customer service.
Added
Cybersecurity threats, such as data breaches, adversarial attacks, and data poisoning, pose significant challenges, particularly as these systems handle large volumes of sensitive customer information. Additionally, the opaque nature of some AI models, often referred to as “black-box” systems, raises regulatory compliance concerns, as regulators increasingly require transparency and explainability in AI-driven decision-making.
Added
Operational risks also arise from potential system failures, over-reliance on AI, and integration challenges with existing infrastructure. Disruptions in AI systems could impact critical functions such as fraud detection, transaction monitoring, and customer support.
Added
Ethical and reputational risks, including unintended consequences or perceived unfairness in AI-driven decisions, may erode customer trust and expose us to regulatory scrutiny. 60 Table of Contents Mitigating these risks requires a robust governance framework, regularly testing and auditing of AI models, and strong human oversight.
Added
Investments in cybersecurity, data privacy protections, and employee training are critical to managing these risks. The Company is subject to significant risk if, in the future, it chooses to convert its core or other operating systems and may encounter significant adverse developments.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeITEM 1C. CYBERSECURITY Cybersecurity and Risk Management The Company’s cybersecurity risk management processes are integrated into the overall risk management process managed by the Chief Risk Officer through reporting of cyber risks to the Information Security Steering Committee (ISSC).
Biggest changeITEM 1C. CYBERSECURITY Cybersecurity and Risk Management The Company’s cybersecurity risk management processes are integrated into the overall risk management process managed by the Chief Risk Officer through reporting of cyber risks to the Information Security Steering Committee (ISSC). The cybersecurity risk management processes will be transitioned under the Chief Information Officer’s division for the 2025 year.
The IRT is notified of all incidents, and incidents are elevated to the board when warranted. 60 Table of Contents Engagement of Third Parties The Company utilizes third parties for some cybersecurity services, including but not limited to managed security services, external and internal penetration testing, social engineering tests, third party risk reviews and tabletop exercises.
The IRT is notified of all incidents, and incidents are elevated to the board when warranted. 65 Table of Contents Engagement of Third Parties The Company utilizes third parties for some cybersecurity services, including but not limited to managed security services, external and internal penetration testing, social engineering tests, third party risk reviews and tabletop exercises.
The ISSC is chaired by the Managing Director of Information Security, who has 17 years of information technology (IT) and information security experience in the financial services industry. Key metrics are monitored on an ongoing basis by the IT Risk Management and IT Security teams, with oversight by the ISSC.
The ISSC is chaired by the Managing Director of Information Security, who has 18 years of information technology (IT) and information security experience in the financial services industry. Key metrics are monitored on an ongoing basis by the IT Risk Management and IT Security teams, with oversight by the ISSC.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe aggregate net book value of the Company’s premises and equipment was $138.6 million and $141.1 million at December 31, 2023 and 2022, respectively. See also Note 6 of the accompanying audited financial statements, which are included in Item 8 of this Report. ​
Biggest changeThe aggregate net book value of the Company’s premises and equipment was $132.5 million and $138.6 million at December 31, 2024 and 2023, respectively. See also Note 5 of the accompanying audited financial statements, which are included in Item 8 of this Report. ​ ​ 66 Table of Contents
The Company owns one of its loan production office locations and eight locations are leased. All buildings that are owned are owned free of encumbrances or mortgages. In the opinion of management, the Company’s facilities are adequate and suitable for the Company’s needs.
The Company owns one of its loan production office locations and seven locations are leased. All buildings that are owned are owned free of encumbrances or mortgages. In the opinion of management, the Company’s facilities are adequate and suitable for the Company’s needs.
Of the 91 banking centers, the Company owns 87 of its locations and four were leased for various terms. The majority of our banking center locations are in southwest and central Missouri, including the Springfield, Missouri metropolitan area, with additional concentrations in the Sioux City, Iowa; Des Moines, Iowa; Quad Cities, Iowa; Minneapolis; St.
Of the 90 banking centers, the Company owns 86 of its locations and four were leased for various terms. The majority of our banking center locations are in southwest and central Missouri, including the Springfield, Missouri metropolitan area, with additional concentrations in the Sioux City, Iowa; Des Moines, Iowa; Quad Cities, Iowa; Minneapolis; St.
ITEM 2. PROPERTIES. ​ The Company’s corporate offices and operations center are located in Springfield, Missouri. At December 31, 2023, the Company operated 90 retail banking centers and over 200 automated teller machines (“ATMs”) in Missouri, Iowa, Minnesota, Kansas, Nebraska and Arkansas.
ITEM 2. PROPERTIES. ​ The Company’s corporate offices and operations center are located in Springfield, Missouri. At December 31, 2024, the Company operated 89 retail banking centers and over 200 automated teller machines (“ATMs”) in Missouri, Iowa, Minnesota, Kansas, Nebraska and Arkansas.
Louis and Kansas City, Missouri metropolitan areas. The ATMs are located at various banking centers and primarily convenience stores and retail centers located throughout southwest and central Missouri. At December 31, 2023, the Company also operated eight commercial loan production offices and one mortgage loan production office.
Louis and Kansas City, Missouri metropolitan areas. The ATMs are located at various banking centers and primarily convenience stores and retail centers located throughout southwest and central Missouri. At December 31, 2024, the Company also operated seven commercial loan production offices and one mortgage loan production office.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWhile the ultimate outcome of such legal proceedings cannot be predicted with certainty, after reviewing pending and threatened litigation with counsel, management currently believes that the outcome of such litigation will not have a material adverse effect on the Company’s business, financial condition or results of operations. ​ ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ​ 61 Table of Contents
Biggest changeWhile the ultimate outcome of such legal proceedings cannot be predicted with certainty, after reviewing pending and threatened litigation with counsel, management currently believes that the outcome of such litigation will not have a material adverse effect on the Company’s business, financial condition or results of operations.
Added
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.
Added
In December 2024, an agreement in principle was reached between Great Southern and the third-party vendor whereby the Master Agreement would be terminated and the parties’ card servicing agreement would be continued and expanded. Great Southern recorded a $2.0 million accrued expense for 2024 in connection with these developments.
Added
However, at this time, no assurance can be given as to when or whether final agreements will be executed and a full settlement of the matter will be achieved. ​ ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAs indicated below, the Company repurchased the following shares of its common stock during the three months ended December 31, 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number Maximum ​ ​ ​ ​ ​ ​ ​ of Shares ​ Number of ​ ​ Total Number ​ ​ Average ​ Purchased as ​ Shares that May ​ ​ of Shares ​ ​ Price ​ Part of Publicly ​ Yet Be Purchased ​ ​ Purchased ​ ​ Per Share ​ Announced Program ​ Under the Program (1) October 1, 2023 – October 31, 2023 69,400 $ 48.308 69,400 731,812 November 1, 2023 – November 30, 2023 4,100 ​ 49.979 4,100 727,712 December 1, 2023 – December 31, 2023 — ​ — — 727,712 ​ 73,500 ​ 48.402 73,500 ​ ​ (1) Amount represents the number of shares available to be repurchased under the then-current program as of the last calendar day of the month shown. 63 Table of Contents ITEM 6.
Biggest changeAs indicated below, the Company repurchased the following shares of its common stock during the three months ended December 31, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number Maximum ​ ​ ​ ​ ​ ​ ​ of Shares ​ Number of ​ ​ Total Number ​ ​ Average ​ Purchased as ​ Shares that May ​ ​ of Shares ​ ​ Price ​ Part of Publicly ​ Yet Be Purchased ​ ​ Purchased ​ ​ Per Share ​ Announced Program ​ Under the Program (1) October 1, 2024 – October 31, 2024 4,100 $ 56.325 4,100 483,679 November 1, 2024 – November 30, 2024 5,500 ​ 56.838 5,500 478,179 December 1, 2024 – December 31, 2024 34,950 ​ 61.814 34,950 443,229 ​ 44,550 ​ 60.694 44,550 ​ ​ (1) Amount represents the number of shares available to be repurchased under the then-current program as of the last calendar day of the month shown. 68 Table of Contents ITEM 6.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information The Company’s common stock is listed on The NASDAQ Global Select Market under the symbol “GSBC.” As of December 31, 2023, there were 11,804,430 total shares of common stock outstanding and approximately 2,000 stockholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. Market Information The Company’s common stock is listed on The NASDAQ Global Select Market under the symbol “GSBC.” As of December 31, 2024, there were 11,723,548 total shares of common stock outstanding and approximately 2,000 stockholders of record.
Business – Government Supervision and Regulation – Dividends.” Stock Repurchases On January 19, 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.
Business – Government Supervision and Regulation – Dividends.” Stock Repurchases On December 21, 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.
Removed
The Company completed this repurchase program in the second quarter of 2023. 62 Table of Contents On December 21, 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.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeITEM 6. ​ [RESERVED] ​ 64 ITEM 7. ​ MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ 64 ITEM 7A. ​ QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ 103 ITEM 8. ​ FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ​ 108
Biggest changeITEM 6. ​ [RESERVED] ​ 69 ITEM 7. ​ MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ​ 69 ITEM 7A. ​ QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ​ 108 ITEM 8. ​ FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA ​ 113

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

273 edited+91 added−105 removed125 unchanged
Biggest change“Financial Statements and Supplementary Information.” Results for past periods are not necessarily indicative of results that may be expected for any future period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2023 2022 2021 2020 2019 ​ (Dollars In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary Statement of Financial Condition Information: ​ ​ ​ ​ ​ Assets ​ $ 5,812,402 ​ $ 5,680,702 ​ $ 5,449,944 ​ $ 5,526,420 ​ $ 5,015,072 Loans receivable, net ​ 4,595,469 ​ 4,511,647 ​ 4,016,235 ​ 4,314,584 ​ 4,163,224 Allowance for credit losses on loans ​ 64,670 ​ 63,480 ​ 60,754 ​ 55,743 ​ 40,294 Available-for-sale securities ​ 478,207 ​ 490,592 ​ 501,032 ​ 414,933 ​ 374,175 Held-to-maturity securities ​ ​ 195,023 ​ ​ 202,495 ​ ​ — ​ ​ — ​ ​ — Other real estate and repossessions, net ​ 23 ​ 233 ​ 2,087 ​ 1,877 ​ 5,525 Deposits ​ 4,721,708 ​ 4,684,910 ​ 4,552,101 ​ 4,516,903 ​ 3,960,106 Total borrowings and other interest- bearing liabilities ​ 423,806 ​ 366,481 ​ 238,713 ​ 339,863 ​ 412,374 Stockholders’ equity (retained earnings substantially restricted) ​ 571,829 ​ 533,087 ​ 616,752 ​ 629,741 ​ 603,066 Common stockholders’ equity ​ 571,829 ​ 533,087 ​ 616,752 ​ 629,741 ​ 603,066 Average loans receivable ​ 4,631,856 ​ 4,386,042 ​ 4,274,176 ​ 4,399,259 ​ 4,155,780 Average total assets ​ 5,719,196 ​ 5,519,790 ​ 5,502,356 ​ 5,323,426 ​ 4,855,007 Average deposits ​ 4,754,310 ​ 4,607,363 ​ 4,539,740 ​ 4,330,271 ​ 3,889,910 Average stockholders’ equity ​ 550,920 ​ 565,173 ​ 627,516 ​ 622,437 ​ 571,637 Number of deposit accounts ​ 230,697 ​ 232,688 ​ 229,942 ​ 229,470 ​ 228,247 Number of full-service offices ​ 90 ​ 92 ​ 93 ​ 94 ​ 97 ​ 64 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ 2023 2022 2021 2020 2019 ​ ​ (In Thousands) Summary Statement of Income Information: ​ ​ ​ ​ ​ Interest income: ​ ​ ​ ​ ​ Loans ​ $ 271,952 ​ $ 205,751 ​ $ 186,269 ​ $ 204,964 ​ $ 223,047 Investment securities and other ​ 24,883 ​ 21,226 ​ 12,404 ​ 12,739 ​ 11,947 ​ ​ 296,835 ​ 226,977 ​ 198,673 ​ 217,703 ​ 234,994 Interest expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 88,757 ​ 20,676 ​ 13,102 ​ 32,431 ​ 45,570 Securities sold under reverse repurchase agreements ​ 1,205 ​ 324 ​ 37 ​ 31 ​ 19 Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities ​ 7,500 ​ 1,066 ​ — ​ 644 ​ 3,616 Subordinated debentures issued to capital trust ​ 1,736 ​ 875 ​ 448 ​ 628 ​ 1,019 Subordinated notes ​ 4,422 ​ 4,422 ​ 7,165 ​ 6,831 ​ 4,378 ​ ​ 103,620 ​ 27,363 ​ 20,752 ​ 40,565 ​ 54,602 Net interest income ​ 193,215 ​ 199,614 ​ 177,921 ​ 177,138 ​ 180,392 Provision (credit) for credit losses on loans ​ 2,250 ​ 3,000 ​ (6,700) ​ 15,871 ​ 6,150 Provision (credit) for unfunded commitments ​ ​ (5,329) ​ ​ 3,187 ​ ​ 939 ​ ​ — ​ ​ — Net interest income after provision (credit) for credit losses and provision (credit) for unfunded commitments ​ 196,294 ​ 193,427 ​ 183,682 ​ 161,267 ​ 174,242 Non-interest income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commissions ​ 1,153 ​ 1,208 ​ 1,263 ​ 892 ​ 889 Overdraft and insufficient funds fees ​ 7,617 ​ 7,872 ​ 6,686 ​ 6,481 ​ 8,249 Point-of-sale and ATM fee income and service charges ​ 14,346 ​ 15,705 ​ 15,029 ​ 12,203 ​ 12,649 Net gain on loan sales ​ 2,354 ​ 2,584 ​ 9,463 ​ 8,089 ​ 2,607 Net realized gain (loss) on sales of available-for-sale securities ​ — ​ (130) ​ — ​ 78 ​ (62) Late charges and fees on loans ​ 786 ​ 1,182 ​ 1,434 ​ 1,419 ​ 1,432 Gain (loss) on derivative interest rate products ​ (337) ​ 321 ​ 312 ​ (264) ​ (104) Other income ​ 4,154 ​ 5,399 ​ 4,130 ​ 6,152 ​ 5,297 ​ ​ 30,073 ​ 34,141 ​ 38,317 ​ 35,050 ​ 30,957 Non-interest expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ 78,521 ​ 75,300 ​ 70,290 ​ 70,810 ​ 63,224 Net occupancy and equipment expense ​ 30,834 ​ 28,471 ​ 29,163 ​ 27,582 ​ 26,217 Postage ​ 3,590 ​ 3,379 ​ 3,164 ​ 3,069 ​ 3,198 Insurance ​ 4,542 ​ 3,197 ​ 3,061 ​ 2,405 ​ 2,015 Advertising ​ 3,396 ​ 3,261 ​ 3,072 ​ 2,631 ​ 2,808 Office supplies and printing ​ 1,057 ​ 867 ​ 848 ​ 1,016 ​ 1,077 Telephone ​ 2,730 ​ 3,170 ​ 3,458 ​ 3,794 ​ 3,580 Legal, audit and other professional fees ​ 7,086 ​ 6,330 ​ 6,555 ​ 2,378 ​ 2,624 Expense on other real estate and repossessions ​ 311 ​ 359 ​ 627 ​ 2,023 ​ 2,184 Acquired deposit intangible asset amortization ​ 286 ​ 768 ​ 863 ​ 1,154 ​ 1,190 Other operating expenses ​ 8,670 ​ 8,264 ​ 6,534 ​ 6,363 ​ 7,021 ​ ​ 141,023 ​ 133,366 ​ 127,635 ​ 123,225 ​ 115,138 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ 85,344 ​ 94,202 ​ 94,364 ​ 73,092 ​ 90,061 Provision for income taxes ​ 17,544 ​ 18,254 ​ 19,737 ​ 13,779 ​ 16,449 Net income ​ $ 67,800 ​ $ 75,948 ​ $ 74,627 ​ $ 59,313 ​ $ 73,612 ​ 65 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended December 31, ​ 2023 2022 2021 2020 2019 ​ ​ (Number of Shares In Thousands) Performance Data and Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Per Common Share Data: ​ ​ ​ ​ ​ ​ Basic earnings per common share ​ $ 5.65 ​ $ 6.07 ​ $ 5.50 ​ $ 4.22 ​ $ 5.18 ​ Diluted earnings per common share ​ 5.61 ​ 6.02 ​ 5.46 ​ 4.21 ​ 5.14 ​ Cash dividends declared ​ 1.60 ​ 1.56 ​ 1.40 ​ 2.36 ​ 2.07 ​ Book value per common share ​ 48.44 ​ 43.58 ​ 46.98 ​ 45.79 ​ 42.29 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ 11,992 ​ 12,517 ​ 13,558 ​ 14,043 ​ 14,201 ​ Year-end actual shares outstanding ​ 11,804 ​ 12,231 ​ 13,128 ​ 13,753 ​ 14,261 ​ Average fully diluted shares outstanding ​ 12,080 ​ 12,607 ​ 13,674 ​ 14,104 ​ 14,330 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average assets(1) ​ 1.19 % 1.38 % 1.36 % 1.11 % 1.52 % Return on average stockholders’ equity(2) ​ 12.31 ​ 13.44 ​ 11.89 ​ 9.53 ​ 12.88 ​ Non-interest income to average total assets ​ 0.53 ​ 0.62 ​ 0.70 ​ 0.66 ​ 0.64 ​ Non-interest expense to average total assets ​ 2.47 ​ 2.42 ​ 2.32 ​ 2.31 ​ 2.37 ​ Average interest rate spread(3) ​ 2.97 ​ 3.59 ​ 3.22 ​ 3.23 ​ 3.62 ​ Year-end interest rate spread ​ 2.78 ​ 3.63 ​ 3.20 ​ 3.08 ​ 3.28 ​ Net interest margin(4) ​ 3.57 ​ 3.80 ​ 3.37 ​ 3.49 ​ 3.95 ​ Efficiency ratio(5) ​ 63.16 ​ 57.05 ​ 59.03 ​ 58.07 ​ 54.48 ​ Net overhead ratio(6) ​ 1.94 ​ 1.80 ​ 1.62 ​ 1.66 ​ 1.73 ​ Common dividend pay-out ratio(7) ​ 28.52 ​ 25.91 ​ 25.64 ​ 56.06 ​ 40.27 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios (8): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses/year-end loans ​ 1.39 % 1.39 % 1.49 % 1.32 % 1.00 % Non-performing assets/year-end loans and foreclosed assets ​ 0.25 ​ 0.08 ​ 0.15 ​ 0.09 ​ 0.19 ​ Allowance for credit losses/non-performing loans ​ 550.48 ​ 1,729.69 ​ 1,120.31 ​ 1,831.86 ​ 891.66 ​ Net charge-offs/average loans ​ 0.02 ​ 0.01 ​ 0.00 ​ 0.01 ​ 0.10 ​ Gross non-performing assets/year end assets ​ 0.20 ​ 0.07 ​ 0.11 ​ 0.07 ​ 0.16 ​ Non-performing loans/year-end loans ​ 0.25 ​ 0.08 ​ 0.13 ​ 0.07 ​ 0.11 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans to deposits ​ 97.33 % 96.30 % 88.23 % 95.52 % 105.13 % Average interest-earning assets as a percentage of average interest-bearing liabilities ​ 131.11 ​ 140.32 ​ 139.94 ​ 132.49 ​ 127.50 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average common stockholders’ equity to average assets ​ 9.6 % 10.2 % 11.4 % 11.7 % 11.8 % Year-end tangible common stockholders’ equity to tangible assets(9) ​ 9.7 ​ 9.2 ​ 11.2 ​ 11.3 ​ 11.9 ​ Great Southern Bancorp, Inc.: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital ratio ​ 12.4 ​ 11.0 ​ 13.4 ​ 12.7 ​ 12.5 ​ Total capital ratio ​ 15.2 ​ 13.5 ​ 16.3 ​ 17.2 ​ 15.0 ​ Tier 1 leverage ratio ​ 11.0 ​ 10.6 ​ 11.3 ​ 10.9 ​ 11.8 ​ Common equity Tier 1 ratio ​ 11.9 ​ 10.6 ​ 12.9 ​ 12.2 ​ 12.0 ​ Great Southern Bank: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital ratio ​ 13.1 ​ 11.9 ​ 14.1 ​ 13.7 ​ 13.1 ​ Total capital ratio ​ 14.3 ​ 13.1 ​ 15.4 ​ 14.9 ​ 14.0 ​ Tier 1 leverage ratio ​ 11.6 ​ 11.5 ​ 11.9 ​ 11.8 ​ 12.3 ​ Common equity Tier 1 ratio ​ 13.1 ​ 11.9 ​ 14.1 ​ 13.7 ​ 13.1 ​ (1) Net income divided by average total assets.
Biggest change“Financial Statements and Supplementary Information.” Results for past periods are not necessarily indicative of results that may be expected for any future period. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ 2024 2023 2022 2021 2020 ​ (Dollars In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Summary Statement of Financial Condition Information: ​ ​ ​ ​ ​ Assets ​ $ 5,981,628 ​ $ 5,812,402 ​ $ 5,680,702 ​ $ 5,449,944 ​ $ 5,526,420 Loans receivable, net ​ 4,697,330 ​ 4,595,469 ​ 4,511,647 ​ 4,016,235 ​ 4,314,584 Allowance for credit losses on loans ​ 64,760 ​ 64,670 ​ 63,480 ​ 60,754 ​ 55,743 Available-for-sale securities ​ 533,373 ​ 478,207 ​ 490,592 ​ 501,032 ​ 414,933 Held-to-maturity securities ​ ​ 187,433 ​ ​ 195,023 ​ ​ 202,495 ​ ​ — ​ ​ — Other real estate and repossessions, net ​ 5,993 ​ 23 ​ 233 ​ 2,087 ​ 1,877 Deposits ​ 4,605,549 ​ 4,721,708 ​ 4,684,910 ​ 4,552,101 ​ 4,516,903 Total borrowings and other interest- bearing liabilities ​ 679,341 ​ 423,806 ​ 366,481 ​ 238,713 ​ 339,863 Stockholders’ equity (retained earnings substantially restricted) ​ 599,568 ​ 571,829 ​ 533,087 ​ 616,752 ​ 629,741 Common stockholders’ equity ​ 599,568 ​ 571,829 ​ 533,087 ​ 616,752 ​ 629,741 Average loans receivable ​ 4,716,533 ​ 4,631,856 ​ 4,386,042 ​ 4,274,176 ​ 4,399,259 Average total assets ​ 5,886,214 ​ 5,719,196 ​ 5,519,790 ​ 5,502,356 ​ 5,323,426 Average deposits ​ 4,681,660 ​ 4,754,310 ​ 4,607,363 ​ 4,539,740 ​ 4,330,271 Average stockholders’ equity ​ 585,960 ​ 550,920 ​ 565,173 ​ 627,516 ​ 622,437 Number of deposit accounts ​ 228,885 ​ 230,697 ​ 232,688 ​ 229,942 ​ 229,470 Number of full-service offices ​ 89 ​ 90 ​ 92 ​ 93 ​ 94 ​ 69 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ 2024 2023 2022 2021 2020 ​ ​ (In Thousands) Summary Statement of Income Information: ​ ​ ​ ​ ​ Interest income: ​ ​ ​ ​ ​ Loans ​ $ 297,176 ​ $ 271,952 ​ $ 205,751 ​ $ 186,269 ​ $ 204,964 Investment securities and other ​ 27,522 ​ 24,883 ​ 21,226 ​ 12,404 ​ 12,739 ​ ​ 324,698 ​ 296,835 ​ 226,977 ​ 198,673 ​ 217,703 Interest expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 109,705 ​ 88,757 ​ 20,676 ​ 13,102 ​ 32,431 Securities sold under reverse repurchase agreements ​ 1,407 ​ 1,205 ​ 324 ​ 37 ​ 31 Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities ​ 18,222 ​ 7,500 ​ 1,066 ​ — ​ 644 Subordinated debentures issued to capital trust ​ 1,798 ​ 1,736 ​ 875 ​ 448 ​ 628 Subordinated notes ​ 4,423 ​ 4,422 ​ 4,422 ​ 7,165 ​ 6,831 ​ ​ 135,555 ​ 103,620 ​ 27,363 ​ 20,752 ​ 40,565 Net interest income ​ 189,143 ​ 193,215 ​ 199,614 ​ 177,921 ​ 177,138 Provision (credit) for credit losses on loans ​ 1,700 ​ 2,250 ​ 3,000 ​ (6,700) ​ 15,871 Provision (credit) for unfunded commitments ​ ​ 1,016 ​ ​ (5,329) ​ ​ 3,187 ​ ​ 939 ​ ​ — Net interest income after provision (credit) for credit losses and provision (credit) for unfunded commitments ​ 186,427 ​ 196,294 ​ 193,427 ​ 183,682 ​ 161,267 Non-interest income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commissions ​ 1,227 ​ 1,153 ​ 1,208 ​ 1,263 ​ 892 Overdraft and insufficient funds fees ​ 5,140 ​ 7,617 ​ 7,872 ​ 6,686 ​ 6,481 POS and ATM fee income and service charges ​ 13,586 ​ 14,346 ​ 15,705 ​ 15,029 ​ 12,203 Net gain on loan sales ​ 3,779 ​ 2,354 ​ 2,584 ​ 9,463 ​ 8,089 Net realized gain (loss) on sales of available-for-sale securities ​ — ​ — ​ (130) ​ — ​ 78 Late charges and fees on loans ​ 512 ​ 786 ​ 1,182 ​ 1,434 ​ 1,419 Gain (loss) on derivative interest rate products ​ (58) ​ (337) ​ 321 ​ 312 ​ (264) Other income ​ 6,379 ​ 4,154 ​ 5,399 ​ 4,130 ​ 6,152 ​ ​ 30,565 ​ 30,073 ​ 34,141 ​ 38,317 ​ 35,050 Non-interest expense: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Salaries and employee benefits ​ 78,599 ​ 78,521 ​ 75,300 ​ 70,290 ​ 70,810 Net occupancy and equipment expense ​ 32,118 ​ 30,834 ​ 28,471 ​ 29,163 ​ 27,582 Postage ​ 3,329 ​ 3,590 ​ 3,379 ​ 3,164 ​ 3,069 Insurance ​ 4,622 ​ 4,542 ​ 3,197 ​ 3,061 ​ 2,405 Advertising ​ 3,124 ​ 3,396 ​ 3,261 ​ 3,072 ​ 2,631 Office supplies and printing ​ 1,008 ​ 1,057 ​ 867 ​ 848 ​ 1,016 Telephone ​ 2,772 ​ 2,730 ​ 3,170 ​ 3,458 ​ 3,794 Legal, audit and other professional fees ​ 5,399 ​ 7,086 ​ 6,330 ​ 6,555 ​ 2,378 Expense (income) on other real estate and repossessions ​ (304) ​ 311 ​ 359 ​ 627 ​ 2,023 Acquired intangible asset amortization ​ 433 ​ 286 ​ 768 ​ 863 ​ 1,154 Other operating expenses ​ 10,395 ​ 8,670 ​ 8,264 ​ 6,534 ​ 6,363 ​ ​ 141,495 ​ 141,023 ​ 133,366 ​ 127,635 ​ 123,225 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes ​ 75,497 ​ 85,344 ​ 94,202 ​ 94,364 ​ 73,092 Provision for income taxes ​ 13,690 ​ 17,544 ​ 18,254 ​ 19,737 ​ 13,779 Net income ​ $ 61,807 ​ $ 67,800 ​ $ 75,948 ​ $ 74,627 ​ $ 59,313 ​ 70 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended December 31, ​ 2024 2023 2022 2021 2020 ​ ​ (Number of Shares In Thousands) Performance Data and Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Per Common Share Data: ​ ​ ​ ​ ​ ​ Basic earnings per common share ​ $ 5.28 ​ $ 5.65 ​ $ 6.07 ​ $ 5.50 ​ $ 4.22 ​ Diluted earnings per common share ​ 5.26 ​ 5.61 ​ 6.02 ​ 5.46 ​ 4.21 ​ Cash dividends declared ​ 1.60 ​ 1.60 ​ 1.56 ​ 1.40 ​ 2.36 ​ Book value per common share ​ 51.14 ​ 48.44 ​ 43.58 ​ 46.98 ​ 45.79 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average shares outstanding ​ 11,695 ​ 11,992 ​ 12,517 ​ 13,558 ​ 14,043 ​ Year-end actual shares outstanding ​ 11,724 ​ 11,804 ​ 12,231 ​ 13,128 ​ 13,753 ​ Average fully diluted shares outstanding ​ 11,755 ​ 12,080 ​ 12,607 ​ 13,674 ​ 14,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings Performance Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Return on average assets(1) ​ 1.05 % 1.19 % 1.38 % 1.36 % 1.11 % Return on average stockholders’ equity(2) ​ 10.55 ​ 12.31 ​ 13.44 ​ 11.89 ​ 9.53 ​ Non-interest income to average total assets ​ 0.52 ​ 0.53 ​ 0.62 ​ 0.70 ​ 0.66 ​ Non-interest expense to average total assets ​ 2.40 ​ 2.47 ​ 2.42 ​ 2.32 ​ 2.31 ​ Average interest rate spread(3) ​ 2.76 ​ 2.97 ​ 3.59 ​ 3.22 ​ 3.23 ​ Year-end interest rate spread ​ 2.86 ​ 2.78 ​ 3.63 ​ 3.20 ​ 3.08 ​ Net interest margin(4) ​ 3.42 ​ 3.57 ​ 3.80 ​ 3.37 ​ 3.49 ​ Efficiency ratio(5) ​ 64.40 ​ 63.16 ​ 57.05 ​ 59.03 ​ 58.07 ​ Net overhead ratio(6) ​ 1.88 ​ 1.94 ​ 1.80 ​ 1.62 ​ 1.66 ​ Common dividend pay-out ratio(7) ​ 30.42 ​ 28.52 ​ 25.91 ​ 25.64 ​ 56.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Asset Quality Ratios (8): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses/year-end loans ​ 1.36 % 1.39 % 1.39 % 1.49 % 1.32 % Non-performing assets/year-end loans and foreclosed assets ​ 0.20 ​ 0.25 ​ 0.08 ​ 0.15 ​ 0.09 ​ Allowance for credit losses/non-performing loans ​ 1,812.48 ​ 550.48 ​ 1,729.69 ​ 1,120.31 ​ 1,831.86 ​ Net charge-offs/average loans ​ 0.03 ​ 0.02 ​ 0.01 ​ 0.00 ​ 0.01 ​ Gross non-performing assets/year end assets ​ 0.16 ​ 0.20 ​ 0.07 ​ 0.11 ​ 0.07 ​ Non-performing loans/year-end loans ​ 0.07 ​ 0.25 ​ 0.08 ​ 0.13 ​ 0.07 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loans to deposits ​ 101.99 % 97.33 % 96.30 % 88.23 % 95.52 % Average interest-earning assets as a percentage of average interest-bearing liabilities ​ 126.98 ​ 131.11 ​ 140.32 ​ 139.94 ​ 132.49 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average common stockholders’ equity to average assets ​ 10.0 % 9.6 % 10.2 % 11.4 % 11.7 % Year-end tangible common stockholders’ equity to tangible assets(9) ​ 9.9 ​ 9.7 ​ 9.2 ​ 11.2 ​ 11.3 ​ Great Southern Bancorp, Inc.: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital ratio ​ 12.8 ​ 12.4 ​ 11.0 ​ 13.4 ​ 12.7 ​ Total capital ratio ​ 15.4 ​ 15.2 ​ 13.5 ​ 16.3 ​ 17.2 ​ Tier 1 leverage ratio ​ 11.2 ​ 11.0 ​ 10.6 ​ 11.3 ​ 10.9 ​ Common equity Tier 1 ratio ​ 12.3 ​ 11.9 ​ 10.6 ​ 12.9 ​ 12.2 ​ Great Southern Bank: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital ratio ​ 12.6 ​ 13.1 ​ 11.9 ​ 14.1 ​ 13.7 ​ Total capital ratio ​ 13.9 ​ 14.3 ​ 13.1 ​ 15.4 ​ 14.9 ​ Tier 1 leverage ratio ​ 11.0 ​ 11.6 ​ 11.5 ​ 11.9 ​ 11.8 ​ Common equity Tier 1 ratio ​ 12.6 ​ 13.1 ​ 11.9 ​ 14.1 ​ 13.7 ​ (1) Net income divided by average total assets.
For further discussion of the processes used to manage our exposure to interest rate risk, see “Quantitative and Qualitative Disclosures About Market Risk – How We Measure the Risks to Us Associated with Interest Rate Changes.” Non-Interest Income and Operating Expenses. The Company’s profitability is also affected by the level of its non-interest income and operating expenses.
For further discussion of the processes used to manage our exposure to interest rate risk, see “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.
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 current repayment terms. These loans are not reflected in non-performing assets.
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.
As a result of the Company’s management of the 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.
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.
Loans classified as “Watch” decreased $20.4 million, from $28.7 million at December 31, 2022 to $8.3 million at December 31, 2023, primarily due to the combination of one large loan being upgraded to “Satisfactory,” one unrelated large loan being downgraded to “Substandard” and added to non-performing loans, and one unrelated loan being downgraded to “Special Mention.” While loans classified as “Special Mention” are not adversely classified, they are deserving of management’s close attention to ensure repayment prospects or the credit position of the assets does not deteriorate and expose the institution to elevated risk to warrant adverse classification at a future date.
Loans Categorized as “Watch” and “Special Mention” Loans classified as “Watch” decreased $20.4 million, from $28.7 million at December 31, 2022 to $8.3 million at December 31, 2023, primarily due to the combination of one large loan being upgraded to “Satisfactory,” one unrelated large loan being downgraded to “Substandard” and added to non-performing loans, and one unrelated loan being downgraded to “Special Mention.” While loans classified as “Special Mention” are not adversely classified, they are deserving of management’s close attention to ensure repayment prospects or the credit position of the assets does not deteriorate and expose the institution to elevated risk to warrant adverse classification at a future date.
Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, 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, housing price index, consumer sentiment, gross domestic product (GDP) and construction spending.
Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as changes in underwriting standards, portfolio mix, 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.
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 back 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 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 largest relationship in this category, which totaled $8.1 million, or 76.4% of the total category, was added to non-performing loans during the three months ended June 30, 2023 and is collateralized by an office building in Missouri. The loan was classified due to a decline in occupancy resulting in a stressed cash flow.
The largest relationship in this category, which totaled $8.1 million, or 76.4% of the total category, was added to non-performing loans during the three months ended June 30, 2023 and was collateralized by an office building in Missouri. The loan was classified due to a decline in occupancy resulting in a stressed cash flow.
In the year ended December 31, 2023, loans classified as “Special Mention” increased $26.7 million as four loan relationships were downgraded from “Satisfactory.” In the year ended December 31, 2023, four loan relationships were downgraded from “Satisfactory.” The largest relationship consisted of four commercial business loans totaling $9.9 million at December 31, 2023 and is secured by business assets, equipment, accounts receivable and real estate.
In the year ended December 31, 2023, loans classified as “Special Mention” increased $26.7 million as four loan relationships were downgraded from “Satisfactory.” The largest relationship consisted of four commercial business loans totaling $9.9 million at December 31, 2023 and were secured by business assets, equipment, accounts receivable and real estate.
This $45.9 million, less the accrued to date interest portion and net of deferred income taxes, is reflected in the Company’s stockholders’ equity as Accumulated Other Comprehensive Income and is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025.
This $45.9 million, less the accrued to date interest portion and net of deferred income taxes, is reflected in the Company’s stockholders’ equity as Accumulated Other Comprehensive Income (AOCI) and is being accreted to interest income on loans monthly through the original contractual termination date of October 6, 2025.
The non-performing one- to four-family residential category included three loans. The largest relationship in this category, which was added during 2023 and is collateralized by a single-family home in the Kansas City metro area, totaled $543,000, or 75.2% of the total category.
The non-performing one- to four-family residential category included three loans. The largest relationship in this category, which was added during 2023 and was collateralized by a single-family home in the Kansas City metro area, totaled $543,000, or 75.2% of the total category.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following sets forth selected consolidated financial information and other financial data of the Company. The summary statement of financial condition information and statement of income information are derived from our consolidated financial statements, which have been audited by FORVIS, LLP. See Item 8.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following sets forth selected consolidated financial information and other financial data of the Company. The summary statement of financial condition information and statement of income information are derived from our consolidated financial statements, which have been audited by Forvis Mazars, LLP. See Item 8.
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 market interest rates because our portfolios are relatively well-matched in a twelve-month horizon.
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.
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.
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.
To the extent that the fixed rate exceeded one-month USD-SOFR, the Company received net interest settlements, which were recorded as loan interest income. If one-month USD-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.
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.
Activity in the non-performing loans category during the year ended December 31, 2023, 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 ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ 384 ​ — ​ — ​ — ​ — ​ — ​ — ​ 384 Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ 722 ​ 716 ​ — ​ — ​ (21) ​ (31) ​ (664) ​ 722 Other residential ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial real estate ​ 1,579 ​ 10,991 ​ — ​ — ​ — ​ — ​ (2,018) ​ 10,552 Commercial business ​ 586 ​ 47 ​ — ​ — ​ — ​ — ​ (602) ​ 31 Consumer ​ 399 ​ 204 ​ (11) ​ — ​ — ​ (123) ​ (410) ​ 59 Total non-performing loans ​ $ 3,670 ​ $ 11,958 ​ $ (11) ​ $ — ​ $ (21) ​ $ (154) ​ $ (3,694) ​ $ 11,748 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired loans included above ​ $ 428 ​ $ 2,298 ​ $ — ​ $ — ​ $ (21) ​ $ (31) ​ $ (412) ​ $ 2,262 ​ At December 31, 2023, the non-performing commercial real estate category included four loans, two of which were added during the year ended December 31, 2023.
Activity in the non-performing loans category during the year ended December 31, 2023, 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 ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ 384 ​ — ​ — ​ — ​ — ​ — ​ — ​ 384 Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ 722 ​ 716 ​ — ​ — ​ (21) ​ (31) ​ (664) ​ 722 Other residential ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial real estate ​ 1,579 ​ 10,991 ​ — ​ — ​ — ​ — ​ (2,018) ​ 10,552 Commercial business ​ 586 ​ 47 ​ — ​ — ​ — ​ — ​ (602) ​ 31 Consumer ​ 399 ​ 204 ​ (11) ​ — ​ — ​ (123) ​ (410) ​ 59 Total non-performing loans ​ $ 3,670 ​ $ 11,958 ​ $ (11) ​ $ — ​ $ (21) ​ $ (154) ​ $ (3,694) ​ $ 11,748 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired loans included above ​ $ 428 ​ $ 2,298 ​ $ — ​ $ — ​ $ (21) ​ $ (31) ​ $ (412) ​ $ 2,262 ​ 100 Table of Contents At December 31, 2023, the non-performing commercial real estate category included four loans, two of which were added during the year ended December 31, 2023.
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 remaining effects of the COVID-19 pandemic on general economic and financial market conditions and on public health; (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 economic growth caused by 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.
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 economic growth caused by 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.
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, 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.
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.
Occupancy has improved somewhat and lease income from the building has continued, and the Company has received some principal paydowns from the borrower. Another significant relationship was added to the commercial real estate category in the three months ended December 31, 2023. This relationship totaled $2.2 million and is collateralized by an assisted living facility in Wisconsin.
In 2023, occupancy improved somewhat and lease income from the building continued, and the Company received some principal paydowns from the borrower. Another significant relationship was added to the commercial real estate category in the three months ended December 31, 2023. This relationship totaled $2.2 million and was collateralized by an assisted living facility in Wisconsin.
While management believes no impairment existed at December 31, 2023, 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.
While management believes no impairment existed at December 31, 2024, 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.
When loan demand trends upward, we can increase rates paid on deposits to attract more deposits and utilize brokered deposits to provide 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.
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.
The non-performing land development category consisted of one loan added in 2021, which totaled $384,000 and is collateralized by unimproved zoned vacant ground in southern Illinois. The non-performing commercial business category consisted of two loans that totaled $31,000 to a single borrower, both of which were added during 2023.
The non-performing land development category consisted of one loan added in 2021, which totaled $384,000 and was collateralized by unimproved zoned vacant ground in southern Illinois. The non-performing commercial business category consisted of two loans that totaled $31,000 to a single borrower, both of which were added during 2023.
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 is $300 million with a contractual termination date of March 1, 2024.
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.
The $0.40 per share dividend declared but unpaid as of December 31, 2023, was paid to stockholders in January 2024. Common Stock Repurchases and Issuances . The Company has been in various buy-back programs since May 1990.
The $0.40 per share dividend declared but unpaid as of December 31, 2024, was paid to stockholders in January 2025. Common Stock Repurchases and Issuances . The Company has been in various buy-back programs since May 1990.
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 collateral-dependent, evaluates risk of loss and makes additional provisions to expense, if necessary, to maintain the allowance at a satisfactory level.
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.
Activity in the potential problem loans category during the year ended December 31, 2023, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Removed ​ Transfers to ​ ​ ​ ​ ​ Beginning ​ Additions ​ from ​ Transfers to ​ Foreclosed ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance, ​ to Potential ​ Potential ​ Non- ​ Assets and ​ Charge- ​ ​ ​ ​ Balance, ​ ​ January 1 ​ Problem ​ Problem ​ Performing ​ Repossessions ​ Offs ​ Payments ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ 1,348 ​ 167 ​ (1,016) ​ (105) ​ — ​ — ​ (236) ​ 158 Other residential ​ — ​ 7,162 ​ — ​ — ​ — ​ — ​ — ​ 7,162 Commercial real estate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial business ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Consumer ​ 230 ​ 60 ​ (143) ​ (6) ​ (5) ​ (15) ​ (67) ​ 54 Total potential problem loans ​ $ 1,578 ​ $ 7,389 ​ $ (1,159) ​ $ (111) ​ $ (5) ​ $ (15) ​ $ (303) ​ $ 7,374 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired loans included above ​ $ 743 ​ $ — ​ $ (639) ​ $ — ​ $ — ​ $ — ​ $ (4) ​ $ 100 ​ At December 31, 2023, the other residential (multi-family) category of potential problem loans included one loan, which totaled $7.2 million, and was added in 2023.
Potential problem loans increased $5.8 million during the year ended December 31, 2023, from $1.6 million at December 31, 2022 to $7.4 million at December 31, 2023. 101 Table of Contents Activity in the potential problem loans category during the year ended December 31, 2023, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Removed ​ Transfers to ​ ​ ​ ​ ​ Beginning ​ Additions ​ from ​ Transfers to ​ Foreclosed ​ ​ ​ ​ ​ ​ ​ Ending ​ ​ Balance, ​ to Potential ​ Potential ​ Non- ​ Assets and ​ Charge- ​ ​ ​ ​ Balance, ​ ​ January 1 ​ Problem ​ Problem ​ Performing ​ Repossessions ​ Offs ​ Payments ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ 1,348 ​ 167 ​ (1,016) ​ (105) ​ — ​ — ​ (236) ​ 158 Other residential ​ — ​ 7,162 ​ — ​ — ​ — ​ — ​ — ​ 7,162 Commercial real estate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Commercial business ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — Consumer ​ 230 ​ 60 ​ (143) ​ (6) ​ (5) ​ (15) ​ (67) ​ 54 Total potential problem loans ​ $ 1,578 ​ $ 7,389 ​ $ (1,159) ​ $ (111) ​ $ (5) ​ $ (15) ​ $ (303) ​ $ 7,374 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired loans included above ​ $ 743 ​ $ — ​ $ (639) ​ $ — ​ $ — ​ $ — ​ $ (4) ​ $ 100 ​ At December 31, 2023, the other residential (multi-family) category of potential problem loans included one loan, which totaled $7.2 million, and was added in 2023.
These effective rates were at or 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, which reduced the Company’s effective tax rate. 98 Table of Contents 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 effective rates were near or 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, which reduced the Company’s effective tax rate. 103 Table of Contents 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 effective rates were near or 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, which reduced the Company’s effective tax rate.
These effective rates were at or 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, which reduced the Company’s effective tax rate.
A large portion of the Company’s certificate of deposit portfolio matures within six to twelve months and therefore reprices fairly quickly; this is consistent with the portfolio over the past several years.
A large portion of the Company’s certificate of deposit portfolio matures within six to twelve months and therefore reprices fairly quickly, which is consistent with the portfolio over the past several 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) and commercial business, and in most of Great Southern’s primary lending locations, including Springfield, St.
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.
(2) Net income divided by average stockholders’ equity. (3) Yield on average interest-earning assets less rate on average interest-bearing liabilities. (4) Net interest income divided by average interest-earning assets. (5) Non-interest expense divided by the sum of net interest income plus non-interest income.
(2) Net income divided by average stockholders’ equity. (3) Yield on average interest-earning assets less rate on average interest-bearing liabilities. (4) Net interest income divided by average interest-earning assets. (5) Non-interest expense divided by the sum of net interest income plus non-interest income. (6) Non-interest expense less non-interest income divided by average total assets.
The Company experienced positive cash flows from financing activities during the years ended December 31, 2023 and 2022, and negative cash flows from financing activities during the year ended December 31, 2021. ​ 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, realized gains on the sale of investment securities and loans, depreciation and amortization 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.
During each of the years ended December 31, 2024, 2023 and 2022, the Company experienced positive cash flows from operating activities, negative cash flows from investing activities and positive 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, realized gains on the sale of investment securities and loans, depreciation and amortization 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.
The Company also had a substantial amount of time deposits maturing at relatively low rates in the second quarter of 2023, and these time deposits either renewed at 82 Table of Contents higher rates or left the Company, in turn requiring their replacement with other funding sources at then-current, higher market rates.
The Company also had a substantial amount of time deposits maturing at relatively low rates in the second quarter of 2023, and these time deposits either renewed at higher rates or left the Company, in turn requiring their replacement with other funding sources at then-current, higher market rates.
As of December 31, 2023, our interest rate risk models indicated a one-year interest rate earnings sensitivity position that is modestly positive in an increasing rate environment.
As of December 31, 2024, our interest rate risk models indicated a one-year interest rate earnings sensitivity position that is modestly positive in an increasing rate environment.
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.
Other identifiable deposit intangible assets that are subject to amortization are amortized on a straight-line basis over a period of seven years and have been fully amortized. 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.
Based on the Company’s qualitative goodwill impairment testing, management does not believe any of the Company’s goodwill or other intangible assets were impaired as of December 31, 2023.
Based on the Company’s qualitative goodwill impairment testing, management does not believe any of the Company’s goodwill or other intangible assets were impaired as of December 31, 2024.
Average balances of securities increased primarily due to purchases of agency multi-family mortgage-backed securities that have a fixed rate of interest with expected lives of four to ten years, which fits with the Company’s current asset/liability management strategies, partially offset by normal monthly payments received related to the portfolio of U.S.
Average balances and average rates of interest of securities increased primarily due to purchases in 2024 of agency multi-family mortgage-backed securities that have a fixed rate of interest with expected lives of four to ten years, which fits with the Company’s current asset/liability management strategies, partially offset by normal monthly payments received related to the portfolio of U.S.
In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3 and a 1.00% decrease on March 16. At December 31, 2021, the Federal Funds rate was 0.25%.
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 3 and a 1.00% decrease on March 16. At December 31, 2021, the Federal Funds rate was 0.25%.
Intangible assets that are not amortized will be tested for impairment at least annually by comparing the fair values of those assets to their carrying values.
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 December 31, 2023, 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 related deposits in the St. Louis market.
At December 31, 2024, 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.
Of the total amount of fixed rate loans in our portfolio as of December 31, 2023, approximately 86% mature within the next five years and therefore are not considered to create significant long-term interest rate risk for the Company. Fixed rate loans make up only a portion of our balance sheet and our overall interest rate risk strategy.
Of the total amount of fixed rate loans in our portfolio as of December 31, 2024, approximately 90% mature within the next five years and therefore are not considered to create significant long-term interest rate risk for the Company. Fixed rate loans make up only a portion of our balance sheet and our overall interest rate risk strategy.
The decrease was primarily due to normal monthly payments received related to the portfolio of mortgage-backed securities and collateralized mortgage obligations. The available-for-sale securities portfolio was 8.2% and 8.6% of total assets at December 31, 2023 and December 31, 2022, respectively. The Company’s held-to-maturity securities decreased $7.5 million, or 3.7%, compared to December 31, 2022.
The available-for-sale securities portfolio was 8.9% and 8.2% of total assets at December 31, 2024 and 2023, respectively. The Company’s held-to-maturity securities decreased $7.6 million, or 3.9%, compared to December 31, 2023. The decrease was primarily due to normal monthly payments received related to the portfolio of mortgage-backed securities and collateralized mortgage obligations.
Based on time deposit market rates in January 2024, replacement rates for these maturing time deposits are likely to be approximately 4.00-4.50%. Interest Expense – FHLBank Advances; Short-term Borrowings, Repurchase Agreements and Other Interest-bearing Liabilities; Subordinated Debentures Issued to Capital Trust and Subordinated Notes FHLBank term advances were not utilized during the years ended December 31, 2023 and 2022.
Based on time deposit market rates in February 2025, replacement rates for these maturing time deposits are likely to be approximately 3.50-4.00%. Interest Expense – FHLBank Advances; Short-term Borrowings, Repurchase Agreements and Other Interest-bearing Liabilities; Subordinated Debentures Issued to Capital Trust and Subordinated Notes FHLBank term advances were not utilized during the years ended December 31, 2024 and 2023.
Average balances of loans receivable include the average balances of non-accrual loans for each period. Interest income on loans includes interest received on non-accrual loans on a cash basis. Interest income on loans includes the amortization of net loan fees, which were deferred in accordance with accounting standards.
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 includes the amortization of net loan fees, which were deferred in accordance with accounting standards.
At December 31, 2023 and 2022, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination. At December 31, 2023 and 2022, an estimated 0.4% and 0.2%, respectively, of total non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.
At December 31, 2024 and 2023, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination. At December 31, 2024 and 2023, an estimated 0.4%, of total non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination.
For further discussions of the Bank’s loan portfolio, and specifically, commercial real estate and commercial construction loans, see “Item 1. Business – Lending Activities.” The percentage of fixed-rate loans in our loan portfolio has been as much as 40% in recent years and was 39% as of December 31, 2023.
For further discussions of the Bank’s loan portfolio, and specifically, commercial real estate and commercial construction loans, see “Item 1. Business – Lending Activities.” The percentage of fixed-rate loans in our loan portfolio has been as much as 40% in recent years and was 37% as of December 31, 2024.
In December 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. As of December 31, 2023, a total of approximately 728,000 shares remained available in the Company’s stock repurchase authorization.
In December 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. As of December 31, 2024, a total of approximately 443,000 shares remained available in the Company’s stock repurchase authorization.
This amount was equal to 3.1% of total stockholders’ equity of $571.8 million at that date. 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.
This amount was equal to 3.1% of total stockholders’ equity of $599.6 million at that date. 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.
Great Southern’s loan portfolio includes loans ($1.29 billion at December 31, 2023) tied to various SOFR indices that will be subject to adjustment at least once within 90 days after December 31, 2023. All of these loans have interest rate floors at various rates.
Great Southern’s loan portfolio includes loans ($1.57 billion at December 31, 2024) tied to various SOFR indices that will be subject to adjustment at least once within 90 days after December 31, 2024. All of these loans have interest rate floors at various rates.
Non-interest income consists primarily of service charges and ATM fees, POS interchange fees, late charges 76 Table of Contents and prepayment fees on loans, gains on sales of loans and available-for-sale investments and other general operating income.
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.
For additional information, including a reconciliation to GAAP, see “– Non-GAAP Financial Measures.” ​ Forward-looking Statements When used in this Annual Report and in other documents filed or furnished by Great Southern Bancorp, Inc.
For additional information, including a reconciliation to GAAP, see “– Non-GAAP Financial Measures.” ​ 71 Table of Contents Forward-looking Statements When used in this Annual Report and in other documents filed or furnished by Great Southern Bancorp, Inc.
At December 31, 2023, the amortizable intangible assets consisted of the arena naming rights of $5.1 million. The amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value. See Note 1 to the accompanying audited financial statements for additional information.
At December 31, 2024, the amortizable intangible assets consisted of the arena naming rights of $4.7 million. The amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value. See Note 1 to the accompanying audited financial statements for additional information.
This increase was primarily due to the repricing of floating rate loans in 2023 as market interest rates increased significantly and the origination of new fixed-rate loans at higher market interest rates.
This increase was primarily due to the repricing of floating rate loans in 2024 as market interest rates increased and the origination of new fixed-rate loans at higher market interest rates.
FHLBank overnight borrowings were utilized in 2023 and 2022. Interest expense on reverse repurchase agreements increased $953,000 due to an increase in average rates during the year ended December 31, 2023 when compared to the year ended December 31, 2022.
FHLBank overnight borrowings were utilized in 2023 and 2022. 98 Table of Contents Interest expense on reverse repurchase agreements increased $953,000 due to an increase in average rates during the year ended December 31, 2023 when compared to the year ended December 31, 2022.
This rate was increased multiple times in 2022 in conjunction with the increase in the Federal Funds target interest rate.
This rate was increased multiple times in 2022 and 2023 in conjunction with the increase in the Federal Funds target interest rate.
All of the total $23,000 of other real estate owned and repossessions at December 31, 2023 were acquired through foreclosure. ​ 85 Table of Contents Activity in foreclosed assets and repossessions during the year ended December 31, 2023, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ Ending ​ ​ Balance, ​ ​ ​ ​ ​ ​ ​ Capitalized ​ Write- ​ Balance, ​ ​ January 1 ​ Additions ​ Sales ​ Costs ​ Downs ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ — ​ — ​ — ​ — ​ — ​ — Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ — ​ 21 ​ (21) ​ — ​ — ​ — Other residential ​ — ​ — ​ — ​ — ​ — ​ — Commercial real estate ​ — ​ — ​ — ​ — ​ — ​ — Commercial business ​ — ​ — ​ — ​ — ​ — ​ — Consumer ​ 50 ​ 88 ​ (115) ​ — ​ — ​ 23 Total foreclosed assets and repossessions ​ $ 50 ​ $ 109 ​ $ (136) ​ $ — ​ $ — ​ $ 23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired assets included above ​ $ — ​ $ 21 ​ $ (21) ​ $ — ​ $ — ​ $ — ​ 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.
Activity in foreclosed assets and repossessions during the year ended December 31, 2023, was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning ​ ​ ​ ​ ​ Ending ​ ​ Balance, ​ ​ ​ ​ ​ ​ ​ Capitalized ​ Write- ​ Balance, ​ ​ January 1 ​ Additions ​ Sales ​ Costs ​ Downs ​ December 31 ​ ​ (In Thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ One- to four-family construction ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Subdivision construction ​ — ​ — ​ — ​ — ​ — ​ — Land development ​ — ​ — ​ — ​ — ​ — ​ — Commercial construction ​ — ​ — ​ — ​ — ​ — ​ — One- to four-family residential ​ — ​ 21 ​ (21) ​ — ​ — ​ — Other residential ​ — ​ — ​ — ​ — ​ — ​ — Commercial real estate ​ — ​ — ​ — ​ — ​ — ​ — Commercial business ​ — ​ — ​ — ​ — ​ — ​ — Consumer ​ 50 ​ 88 ​ (115) ​ — ​ — ​ 23 Total foreclosed assets and repossessions ​ $ 50 ​ $ 109 ​ $ (136) ​ $ — ​ $ — ​ $ 23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ FDIC-assisted acquired assets included above ​ $ — ​ $ 21 ​ $ (21) ​ $ — ​ $ — ​ $ — ​ 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.
At December 31, 2023 and 2022, commercial real estate and commercial construction loans (excluding multi-family loans) were 36.8% and 39.4% of the Bank’s total loan portfolio, respectively. Commercial real estate and commercial construction loans generally afford the Bank an opportunity to increase the yield on, and the proportion of interest rate sensitive loans in, its portfolio.
At December 31, 2024 and 2023, commercial real estate and commercial construction loans (excluding multi-family loans) were 36.1% and 36.8% of the Bank’s total loan portfolio, respectively. Commercial real estate and commercial construction loans generally afford the Bank an opportunity to increase the yield on, and the proportion of interest rate sensitive loans in, its portfolio.
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 greater than or equal to $100,000, are evaluated on an individual basis.
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.
The short-term borrowings included overnight FHLBank borrowings of $251.0 million at December 31, 2023, compared to $88.5 million at December 31, 2022. In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s Bank Term Funding Program (BTFP).
The short-term borrowings included overnight FHLBank borrowings of $333.0 million at December 31, 2024, compared to $251.0 million at December 31, 2023. In January 2024, the Bank borrowed $180.0 million under the Federal Reserve Bank’s Bank Term Funding Program (BTFP).
They do, however, present somewhat greater risk to the Bank because they may be more adversely affected by conditions in the real estate markets or in the economy generally. At December 31, 2023, loans made in the Springfield, Missouri metropolitan statistical area (Springfield MSA) comprised 8% of the Bank’s total loan portfolio, compared to 7% at December 31, 2022.
They do, however, present somewhat greater risk to the Bank because they may be more adversely affected by conditions in the real estate markets or in the economy generally. At both December 31, 2024 and 2023, loans made in the Springfield, Missouri metropolitan statistical area (Springfield MSA) comprised 8% of the Bank’s total loan portfolio.
Louis at 4.7%, Kansas City at 5.2%, Minneapolis at 3.9%, Tulsa, Oklahoma at 2.9%, Dallas-Fort Worth at 8.9%, Chicago at 5.1%, Atlanta at 6.4%, Phoenix at 8.6%, Denver at 7.1% and Charlotte, North Carolina at 6.7%. 72 Table of Contents 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 area.
Louis at 4.0%, Kansas City at 5.2%, Minneapolis at 4.0%, Dallas-Fort Worth at 9.6%, Chicago at 5.5%, Atlanta at 8.1%, Phoenix at 12%, Denver at 7.9% and Charlotte, North Carolina at 9.2%. 77 Table of Contents 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.
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. During 2020, we experienced some compression of our net interest margin percentage due to Federal Fund rate cuts during the nine month period of July 2019 through March 2020.
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. 81 Table of Contents During 2020, we experienced some compression of our net interest margin due to Federal Fund rate cuts during the nine-month period of July 2019 through March 2020.
At December 31, 2023, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income ratably 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.
At December 31, 2024, the Company expected to have a sufficient amount of eligible variable rate loans to continue to accrete this interest income ratably in 2025. 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.
In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 75 Table of Contents 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 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.
A rate cut by the FRB generally would have an anticipated immediate negative impact on the Company’s net interest income due to the large total balance of loans tied to the SOFR indices 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.
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 that will be subject to adjustment at least once within 90 days or loans which generally adjust immediately as the Federal Funds rate adjusts.
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, we cannot be assured that our loan growth will match or exceed the average level of growth achieved in prior years.
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 notes were sold at par, resulting in net proceeds, after underwriting discounts and commissions and other issuance costs, of approximately $73.5 million. In both cases, the issuance costs are amortized over the expected life of the notes, which is five years from the issuance date, and therefore impact the overall interest expense on the notes.
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.
The Company’s headquarters are located in Springfield and we have operated in this market since 1923. Loans made in the St. Louis metropolitan statistical area (St. Louis MSA) comprised 17% of the Bank’s total loan portfolio at December 31, 2023, compared to 18% at December 31, 2022. The Company’s expansion into the St.
The Company’s headquarters are located in Springfield and we have operated in this market since 1923. Loans made in the St. Louis metropolitan statistical area (St. Louis MSA) comprised 17% of the Bank’s total loan portfolio at both December 31, 2024 and 2023. The Company’s expansion into the St.
As of December 31, 2023, 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 modestly negative impact on net interest income.
As of December 31, 2024, 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.
Customer deposits at December 31, 2023 and December 31, 2022 totaling $8.8 million and $12.4 million, respectively, were part of the IntraFi Network Deposits program, which allows customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit.
Customer deposits at December 31, 2024 and December 31, 2023, totaling $5.0 million and $8.8 million, respectively, were part of the IntraFi Network Deposits program, which allows customers to maintain balances in an insured manner that would otherwise exceed the FDIC deposit insurance limit.
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 December 31, 2023, the remaining pre-tax amount to be recorded in interest income was $14.4 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 December 31, 2024, the remaining pre-tax amount to be recorded in interest income was $6.2 million.
On December 31, 2022, the Bank’s common equity Tier 1 capital ratio was 11.9%, its Tier 1 capital ratio was 11.9%, its total capital ratio was 13.1% and its Tier 1 leverage ratio was 11.5%. As a result, as of December 31, 2022, 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 December 31, 2023, the Company’s common equity Tier 1 capital ratio was 11.9%, its Tier 1 capital ratio was 12.4%, its total capital ratio was 15.2% and its Tier 1 leverage ratio was 11.0%.
The FRB has established capital regulations for bank holding companies that generally parallel the capital regulations for banks. 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%.
This has had the effect of reducing Accumulated Other Comprehensive Income and increasing Net Interest Income and Retained Earnings over the periods. The Company recorded interest income related to the interest rate swap of $8.1 million in each of the years ended December 31, 2023 and December 31, 2022.
This has had the effect of reducing AOCI and increasing Net Interest Income and Retained Earnings over the periods. The Company recorded interest income related to the interest rate swap of $8.1 million in each of the years ended December 31, 2024 and December 31, 2023.
Unemployment rates for December 2023 in the states where the Company has a branch or loan production office were Arizona at 4.3%, Arkansas at 3.4%, Colorado at 3.4%, Georgia at 3.4%, Illinois at 4.8%, Iowa at 3.2%, Kansas at 2.8%, Minnesota at 2.9%, Missouri at 3.3%, Nebraska at 2.3%, North Carolina at 3.5%, Oklahoma at 3.4%, and Texas at 4.0%.
Unemployment rates for December 2024 in the states where the Company has a branch or a loan production office were: Arizona at 3.8%, Arkansas at 3.4%, Colorado at 4.4%, Georgia at 3.7%, Illinois at 5.2%, Iowa at 3.2%, Kansas at 3.6%, Minnesota at 3.3%, Missouri at 3.7%, Nebraska at 2.8%, North Carolina at 3.7%, and Texas at 4.2%.
The Company utilizes various sources of funds based 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.
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 comparing the two years, the yield on loans increased 118 basis points, the yield on investment securities increased 7 basis 83 Table of Contents points and the yield on other interest-earning assets increased 399 basis points.
In comparing the two years, the yield on loans increased 118 basis points, the yield on investment securities increased 7 basis points and the yield on other interest-earning assets increased 399 basis points.
Net fees included in interest income were $5.7 million, $6.3 million and $11.2 million for 2023, 2022 and 2021, respectively. Tax-exempt income was not calculated on a tax equivalent basis.
Net fees included in interest income were $4.6 million, $5.7 million and $6.3 million for 2024, 2023 and 2022, respectively. Tax-exempt income was not calculated on a tax equivalent basis.
In 2019, the Company discontinued indirect auto loan originations. 73 Table of Contents Of the total loan portfolio at December 31, 2023 and 2022, 89.5% and 89.4%, respectively, was secured by real estate, as this is the Bank’s primary focus in its lending efforts.
In 2019, the Company discontinued indirect auto loan originations. 78 Table of Contents Of the total loan portfolio at December 31, 2024 and 2023, 92.1% and 89.5%, respectively, was secured by real estate, as this is the Bank’s primary focus in its lending efforts.
The Company also had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $23.8 million at December 31, 2023, that were not included in its total capital balance. If these held-to-maturity unrealized losses were included in capital (net of taxes), this would have decreased total stockholder’s equity by $18.0 million at December 31, 2023.
The Company also had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $24.7 million at December 31, 2024, that were not included in its total capital balance. If these held-to-maturity unrealized losses were included in capital (net of taxes), this would have decreased total stockholder’s equity by $18.6 million at December 31, 2024.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeMaturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2024 2025 2026 2027 2028 2029-2038 Thereafter Total Fair Value ​ (Dollars In Thousands) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits ​ $ 108,804 ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ $ 108,804 ​ $ 108,804 Weighted average rate ​ 5.35 % ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ 5.35 % ​ Available-for-sale debt securities (1) ​ $ 1,247 ​ $ 7,053 ​ $ 3,007 ​ $ 19,909 ​ $ 9,835 ​ $ 196,806 ​ $ 240,350 ​ $ 478,207 ​ $ 478,207 Weighted average rate ​ 5.87 % 4.13 % 1.99 % 1.48 % 3.73 % 2.76 % 2.74 % 2.74 % ​ Held-to-maturity securities (2) ​ ​ — ​ ​ — ​ $ 523 ​ ​ — ​ $ 32,594 ​ $ 73,839 ​ $ 88,067 ​ $ 195,023 ​ $ 171,193 Weighted average rate ​ ​ — ​ ​ — ​ ​ 1.58 % ​ — ​ ​ 3.51 % ​ 2.50 % ​ 2.42 % ​ 2.63 % ​ ​ Adjustable rate loans ​ $ 775,311 ​ $ 595,740 ​ $ 347,899 ​ $ 210,012 ​ $ 56,111 ​ $ 194,308 ​ $ 670,565 ​ $ 2,849,946 ​ $ 2,764,145 Weighted average rate ​ ​ 8.36 % ​ 8.23 % ​ 8.18 % ​ 8.02 % ​ 8.07 % ​ 7.03 % ​ 3.57 % ​ 7.06 % ​ ​ Fixed rate loans ​ $ 261,468 ​ $ 347,537 ​ $ 422,101 ​ $ 301,451 ​ $ 224,795 ​ $ 223,927 ​ $ 35,972 ​ $ 1,817,251 ​ $ 1,713,626 Weighted average rate ​ ​ 5.00 % 4.83 % 4.54 % 4.63 % 5.12 % ​ 4.04 % ​ 4.53 % ​ 4.69 % ​ ​ Federal Home Loan Bank stock and other interest earning assets ​ $ 11,590 ​ — ​ — ​ — ​ — ​ — ​ $ 14,723 ​ $ 26,313 ​ $ 26,313 Weighted average rate ​ ​ 5.33 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 7.23 % ​ 6.39 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial assets ​ $ 1,158,420 ​ $ 950,330 ​ $ 773,530 ​ $ 531,372 ​ $ 323,335 ​ $ 688,880 ​ $ 1,049,677 ​ $ 5,475,544 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits ​ $ 921,485 ​ $ 19,250 ​ $ 3,067 ​ $ 2,394 ​ $ 948 ​ $ 1,058 ​ ​ — ​ $ 948,202 ​ $ 948,202 Weighted average rate ​ 3.87 % 0.94 % 0.69 % 0.76 % 0.68 % 1.51 % — ​ 3.79 % ​ Brokered funds ​ $ 266,781 ​ $ 296,552 ​ $ 98,195 ​ — ​ — ​ — ​ — ​ $ 661,528 ​ $ 661,528 Weighted average rate ​ 5.28 % 5.11 % 5.25 % — ​ — ​ — ​ — ​ 5.20 % ​ Interest-bearing demand ​ $ 2,216,482 ​ — ​ — ​ — ​ — ​ ​ — ​ ​ — ​ $ 2,216,482 ​ $ 2,216,482 Weighted average rate ​ 1.67 % — ​ — ​ — ​ — ​ — ​ — ​ 1.67 % ​ Non-interest-bearing demand ​ $ 895,496 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 895,496 ​ $ 895,496 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ Securities sold under reverse repurchase agreements ​ $ 70,843 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 70,843 ​ $ 70,843 Weighted average rate ​ ​ 1.66 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1.66 % ​ ​ Short-term borrowings, overnight FHLB borrowings, and other liabilities ​ $ 252,610 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 252,610 ​ $ 252,610 Weighted average rate ​ 5.64 % — ​ — ​ — ​ — ​ ​ — ​ ​ — ​ ​ 5.64 % ​ ​ Subordinated notes ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 75,000 ​ ​ — ​ $ 75,000 ​ $ 71,625 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ 5.92 % — ​ 5.92 % ​ Subordinated debentures ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ $ 25,774 ​ $ 25,774 ​ $ 25,774 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ — ​ 7.24 % 7.24 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial liabilities ​ $ 4,623,697 ​ $ 315,802 ​ $ 101,262 ​ $ 2,394 ​ $ 948 ​ $ 76,058 ​ $ 25,774 ​ $ 5,145,935 ​ ​ (1) Available-for-sale debt securities include approximately $420.1 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company.
Biggest changeMaturities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2025 2026 2027 2028 2029 2030-2039 Thereafter Total Fair Value ​ (Dollars In Thousands) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits ​ $ 86,390 ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ $ 86,390 ​ $ 86,390 Weighted average rate ​ 4.36 % ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ 4.36 % ​ Available-for-sale debt securities (1) ​ $ 7,995 ​ $ 2,591 ​ $ 17,086 ​ $ 15,829 ​ $ 16,550 ​ $ 215,386 ​ $ 257,936 ​ $ 533,373 ​ $ 533,373 Weighted average rate ​ 4.10 % 1.94 % 1.55 % 3.88 % 2.75 % 3.07 % 3.07 % 3.05 % ​ Held-to-maturity securities (2) ​ ​ — ​ $ 515 ​ ​ — ​ $ 32,182 ​ $ 11,978 ​ $ 61,123 ​ $ 81,635 ​ $ 187,433 ​ $ 162,765 Weighted average rate ​ ​ — ​ ​ 1.49 % ​ — ​ ​ 3.49 % ​ 2.92 % ​ 2.35 % ​ 2.47 % ​ 2.63 % ​ ​ Adjustable rate loans (3) ​ $ 1,056,077 ​ $ 603,878 ​ $ 338,240 ​ $ 94,672 ​ $ 148,690 ​ $ 128,377 ​ $ 618,839 ​ $ 2,988,773 ​ $ 2,915,599 Weighted average rate ​ ​ 7.36 % ​ 7.34 % ​ 7.21 % ​ 7.44 % ​ 7.10 % ​ 6.79 % ​ 3.74 % ​ 6.56 % ​ ​ Fixed rate loans (3) ​ $ 393,526 ​ $ 475,815 ​ $ 327,590 ​ $ 213,845 ​ $ 194,633 ​ $ 145,647 ​ $ 28,956 ​ $ 1,780,012 ​ $ 1,692,522 Weighted average rate ​ ​ 5.41 % 5.02 % 4.99 % 5.20 % 5.59 % ​ 4.45 % ​ 4.71 % ​ 5.13 % ​ ​ Federal Home Loan Bank stock and other interest earning assets ​ $ 9,900 ​ — ​ — ​ — ​ — ​ — ​ $ 18,492 ​ $ 28,392 ​ $ 28,392 Weighted average rate ​ ​ 4.33 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 8.84 % ​ 7.26 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial assets ​ $ 1,553,888 ​ $ 1,082,799 ​ $ 682,916 ​ $ 356,528 ​ $ 371,851 ​ $ 550,533 ​ $ 1,005,858 ​ $ 5,604,373 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits ​ $ 762,159 ​ $ 8,381 ​ $ 2,761 ​ $ 947 ​ $ 584 ​ $ 940 ​ ​ — ​ $ 775,772 ​ $ 772,295 Weighted average rate ​ 3.67 % 0.79 % 0.70 % 0.67 % 1.34 % 1.19 % — ​ 3.62 % ​ Brokered funds ​ $ 623,919 ​ $ 148,195 ​ ​ — ​ — ​ — ​ — ​ — ​ $ 772,114 ​ $ 772,354 Weighted average rate ​ 4.59 % 4.67 % — ​ — ​ — ​ — ​ — ​ 4.61 % ​ Interest-bearing demand ​ $ 2,214,732 ​ — ​ — ​ — ​ — ​ ​ — ​ ​ — ​ $ 2,214,732 ​ $ 2,214,732 Weighted average rate ​ 1.39 % — ​ — ​ — ​ — ​ — ​ — ​ 1.39 % ​ Non-interest-bearing demand ​ $ 842,931 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 842,931 ​ $ 842,931 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ Securities sold under reverse repurchase agreements ​ $ 64,444 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 64,444 ​ $ 64,444 Weighted average rate ​ ​ 1.38 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1.38 % ​ ​ Short-term borrowings, overnight FHLB borrowings, and other liabilities ​ $ 514,247 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 514,247 ​ $ 514,247 Weighted average rate ​ 4.69 % — ​ — ​ — ​ — ​ ​ — ​ ​ — ​ ​ 4.69 % ​ ​ Subordinated notes ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 75,000 ​ ​ — ​ $ 75,000 ​ $ 74,438 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ 5.90 % — ​ 5.90 % ​ Subordinated debentures ​ — ​ — ​ — ​ — ​ — ​ $ 25,774 ​ ​ — ​ $ 25,774 ​ $ 25,774 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ 6.43 % — ​ 6.43 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial liabilities ​ $ 5,022,432 ​ $ 156,576 ​ $ 2,761 ​ $ 947 ​ $ 584 ​ $ 101,714 ​ $ — ​ $ 5,285,014 ​ ​ (1) Available-for-sale debt securities include approximately $477.4 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company.
The FRB also implemented rate change increases of 0.25% on eight additional occasions beginning December 14, 2016 and 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.
The FRB also implemented rate increases of 0.25% on eight additional occasions beginning December 14, 2016 and 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.
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 potentially could be material, in the Bank’s interest rate risk.
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 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. ​ 103 Table of Contents 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.
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. 108 Table of Contents 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.
The 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.
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.
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.
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.
The notional amount of the swap is $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 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).
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 compared to the then-current rates paid on those products.
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.
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.
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. 111 Table of Contents In January 2024, the Company elected to terminate the swaps related to brokered deposits prior to their contractual termination date in 2025.
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 (or their replacement 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.
(3) Non-interest-bearing demand deposits are included in this table in the column labeled “Thereafter” since there is no interest rate related to these liabilities and therefore there is nothing to reprice. ​
(4) Non-interest-bearing demand deposits are included in this table in the column labeled “Thereafter” since there is no interest rate related to these liabilities and therefore there is nothing to reprice. ​
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. Since March 2022, market interest rates have increased fairly rapidly.
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.
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 had recorded a market value adjustment to the brokered deposit of $163,000, which will be amortized as a reduction of interest expense from January 2024 through February 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 deposit of $163,000, which was amortized as a reduction of interest expense from January 2024 through February 2025.
If the USD-SOFR rate exceeded the fixed rate of interest (as it does currently), the Company paid net settlements to the counterparty and recorded those net payments as a reduction of interest income on loans.
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.
This table does not show the effect of these monthly repayments of principal. (2) Held-to-maturity debt securities include approximately $188.8 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company.
This table does not show the effect of these monthly repayments of principal. (2) Held-to-maturity debt securities include approximately $181.3 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company. This table does not show the effect of these monthly repayments of principal.
This table does not show the effect of these monthly repayments of principal. (2) Held-to-maturity debt securities include approximately $188.8 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company. This table does not show the effect of these monthly repayments of principal.
This table does not show the effect of these monthly repayments of principal. (2) Held-to-maturity debt securities include approximately $181.3 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company. This table does not show the effect of these monthly repayments of principal.
Based on time deposit market rates in January 2024, replacement rates for these maturing time deposits are likely to be approximately 4.00-4.50%. The current level and shape of the interest rate yield curve poses challenges for interest rate risk management.
Based on time deposit market rates in February 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.
During 2020, we experienced some compression of our net interest margin percentage due to the Federal Fund rate being cut by a total of 2.25% from July 2019 through March 2020.
During 2020, we experienced some compression of our net interest margin percentage due to the Federal Funds rate being cut by 2.25% from July 2019 through March 2020.
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 (or their replacement rates) and “prime” interest rates.
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.
The Company’s interest rate derivatives and hedging activities are discussed further in Note 16 of the accompanying audited financial statements, which are included in Item 8 of this Report. 106 Table of Contents The following tables illustrate the expected maturities and repricing, respectively, of the Bank’s financial instruments at December 31, 2023.
The Company’s interest rate derivatives and hedging activities are discussed further in Note 15 of the accompanying audited financial statements, which are included in Item 8 of this Report. The following tables illustrate the expected maturities and repricing, respectively, of the Bank’s financial instruments at December 31, 2024.
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.
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.
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.
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 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.
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. 110 Table of Contents 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.
Great Southern also has a portfolio of loans ($788.9 million at December 31, 2023) tied to a “prime rate” of interest that will adjust 104 Table of Contents immediately or within 90 days of a change to the “prime rate” of interest. These loans had interest rate floors at various rates.
All of these loans have interest rate floors at various rates. Great Southern also has a portfolio of loans ($748.0 million at December 31, 2024) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest.
As of December 31, 2023, 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 within the next twelve months, while declining interest rates are expected to have a slightly negative impact on net interest income within the next twelve months.
As of December 31, 2024, 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.
Great Southern also has a portfolio of loans ($6.7 million at December 31, 2023) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the “prime rate” of interest. These loans had interest rate floors at various rates.
Nearly all of these loans have interest rate floors at various rates. In addition, Great Southern has a portfolio of loans ($8.6 million at December 31, 2024) tied to an AMERIBOR index that will adjust immediately or within 90 days of a change to the rate of interest on this index.
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.
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.
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.
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.
As of December 31, 2023, time deposit maturities over the next 12 months are as follows: within three months -- $394 million with a weighted-average rate of 3.82%; within three to six months -- $324 million with a weighted-average rate of 4.32%; and within six to twelve months -- $371 million with a weighted-average rate of 4.08%.
As of December 31, 2024, time deposit maturities over the next 12 months were as follows: within three months -- $724.3 million with a weighted-average rate of 4.19%; within three to six months -- $306.1 million with a weighted-average rate of 3.86%; and within six to twelve months -- $155.6 million with a weighted-average rate of 3.34%.
At December 31, 2023, nearly all of these SOFR and “prime rate” loans had fully indexed rates that were at or above their floor rate and so are expected to move fully if there are future market interest rate increases. Interest rate risk exposure estimates (the sensitivity gap) are not exact measures of an institution’s actual interest rate risk.
At December 31, 2024, 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.
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).
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.
The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. 105 Table of Contents 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.
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.
At December 31, 2023 the Federal Funds rate was 5.50%. Financial markets now expect the possibility of significant further increases in Federal Funds interest rates in 2024 to be unlikely, with interest rate decisions being made at each FRB meeting based on economic data available at the time.
Financial markets now expect the possibility of further decreases in Federal Funds interest rates in 2025 to be likely, but possibly cuts of only 0.50% at a methodical pace and with interest rate decisions being made at each FRB meeting based on economic data available at the time. 109 Table of Contents Great Southern’s loan portfolio includes loans ($1.57 billion at December 31, 2024) tied to various SOFR indices that will be subject to adjustment at least once within 90 days after December 31, 2024.
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However, the FRB has further indicated, and financial markets now have begun to price in, that it is likely that the Federal Funds interest rate will remain near this peak level for several months before any rate cuts occur.
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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%.
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Great Southern’s loan portfolio includes loans ($1.29 billion at December 31, 2023) tied to various SOFR indices that will be subject to adjustment at least once within 90 days after December 31, 2023. These loans had interest rate floors at various rates.
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All of these loans have interest rate floors at various rates.
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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.
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(3) Fair value of loans is shown excluding the $64.8 million allowance for credit losses and $6.7 million of deferred loans fees to correlate with the gross loan balances shown in the “Total” column. ​ 112 Table of Contents Repricing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 ​ 2025 2026 2027 2028 2029 2030-2039 Thereafter Total Fair Value ​ (Dollars In Thousands) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits ​ $ 86,390 ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ $ 86,390 ​ $ 86,390 Weighted average rate ​ 4.36 % ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ 4.36 % ​ Available-for-sale debt securities(1) ​ $ 7,995 ​ $ 2,591 ​ $ 17,086 ​ $ 15,829 ​ $ 16,550 ​ $ 215,386 ​ $ 257,936 ​ $ 533,373 ​ $ 533,373 Weighted average rate ​ 4.10 % 1.94 % ​ 1.55 % 3.88 % 2.75 % 3.07 % 3.07 % 3.05 % ​ Held-to-maturity securities (2) ​ ​ — ​ ​ 515 ​ $ — ​ ​ 32,182 ​ $ 11,978 ​ $ 61,123 ​ $ 81,635 ​ $ 187,433 ​ $ 162,765 Weighted average rate ​ — ​ 1.49 % — ​ 3.49 % 2.92 % 2.35 % 2.47 % 2.63 % ​ Adjustable rate loans (3) ​ $ 2,442,924 ​ $ 23,840 ​ $ 58,093 ​ $ 43,600 ​ $ 59,377 ​ $ 360,939 ​ ​ — ​ $ 2,988,773 ​ $ 2,915,599 Weighted average rate ​ ​ 7.16 % ​ 3.35 % ​ 3.84 % ​ 3.99 % ​ 4.61 % ​ 3.74 % ​ — ​ ​ 6.56 % ​ ​ Fixed rate loans (3) ​ $ 393,526 ​ $ 475,815 ​ $ 327,590 ​ $ 213,845 ​ $ 194,633 ​ $ 145,647 ​ $ 28,956 ​ $ 1,780,012 ​ $ 1,692,522 Weighted average rate ​ ​ 5.41 % ​ 5.02 % ​ 4.99 % ​ 5.20 % ​ 5.59 % ​ 4.45 % ​ 4.71 % ​ 5.13 % ​ ​ Federal Home Loan Bank stock and other interest earning assets ​ $ 28,392 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 28,392 ​ $ 28,392 Weighted average rate ​ 7.26 % — ​ — ​ — ​ — ​ — ​ — ​ 7.26 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial assets ​ $ 2,959,227 ​ $ 502,761 ​ $ 402,769 ​ $ 305,456 ​ $ 282,538 ​ $ 783,095 ​ $ 368,527 ​ $ 5,604,373 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits ​ $ 762,159 ​ $ 8,381 ​ $ 2,761 ​ $ 947 ​ $ 584 ​ $ 940 ​ ​ — ​ $ 775,772 ​ $ 772,295 Weighted average rate ​ 3.67 % 0.79 % 0.70 % 0.67 % 1.34 % 1.19 % — ​ 3.62 % ​ Brokered funds ​ $ 723,919 ​ $ 48,195 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 772,114 ​ $ 772,354 Weighted average rate ​ 4.59 % 4.90 % — ​ — ​ — ​ — ​ — ​ 4.61 % ​ Interest-bearing demand ​ $ 2,214,732 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 2,214,732 ​ $ 2,214,732 Weighted average rate ​ 1.39 % — ​ — ​ — ​ — ​ — ​ — ​ 1.39 % ​ Non-interest-bearing demand (4) ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ $ 842,931 ​ $ 842,931 ​ $ 842,931 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ Securities sold under reverse repurchase agreements ​ $ 64,444 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 64,444 ​ $ 64,444 Weighted average rate ​ 1.38 % — ​ — ​ — ​ — ​ — ​ — ​ 1.38 % ​ Short-term borrowings, overnight FHLB borrowings, and other liabilities ​ $ 514,247 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 514,247 ​ $ 514,247 Weighted average rate ​ ​ 4.69 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 4.69 % ​ ​ Subordinated notes ​ $ 75,000 ​ ​ — ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ $ 75,000 ​ $ 74,438 Weighted average rate ​ 5.90 % — ​ — ​ — ​ — ​ — ​ — ​ 5.90 % ​ Subordinated debentures ​ $ 25,774 ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ $ 25,774 ​ $ 25,774 Weighted average rate ​ 6.43 % — ​ — ​ — ​ — ​ — ​ — ​ 6.43 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial liabilities ​ $ 4,380,275 ​ $ 56,576 ​ $ 2,761 ​ $ 947 ​ $ 584 ​ $ 940 ​ $ 842,931 ​ $ 5,285,014 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Periodic repricing GAP ​ $ (1,421,048) ​ $ 446,185 ​ $ 400,008 ​ $ 304,509 ​ $ 281,954 ​ $ 782,155 ​ $ (474,404) ​ $ 319,359 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative repricing GAP ​ $ (1,421,048) ​ $ (974,863) ​ $ (574,855) ​ $ (270,346) ​ $ 11,608 ​ $ 793,763 ​ $ 319,359 ​ ​ (1) Available-for-sale debt securities include approximately $477.4 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company.
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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.
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(3) Fair value of loans is shown excluding the $64.8 million allowance for credit losses and $6.7 million of deferred loans fees to correlate with the gross loan balances shown in the “Total” column.
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This table does not show the effect of these monthly repayments of principal. ​ 107 Table of Contents Repricing ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2023 ​ 2024 2025 2026 2027 2028 2029-2038 Thereafter Total Fair Value ​ (Dollars In Thousands) Financial Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest bearing deposits ​ $ 108,804 ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ $ 108,804 ​ $ 108,804 Weighted average rate ​ 5.35 % ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ 5.35 % ​ Available-for-sale debt securities(1) ​ $ 1,247 ​ $ 7,053 ​ $ 3,007 ​ $ 19,909 ​ $ 9,835 ​ $ 196,806 ​ $ 240,350 ​ $ 478,207 ​ $ 478,207 Weighted average rate ​ 5.87 % 4.13 % ​ 1.99 % 1.48 % 3.73 % 2.76 % 2.74 % 2.74 % ​ Held-to-maturity securities (2) ​ ​ — ​ ​ — ​ $ 532 ​ ​ — ​ $ 32,594 ​ $ 73,839 ​ $ 88,067 ​ $ 195,023 ​ $ 171,193 Weighted average rate ​ — ​ — ​ 1.58 % — ​ 3.51 % 2.50 % 2.42 % 2.63 % ​ Adjustable rate loans ​ $ 2,223,657 ​ $ 42,062 ​ $ 27,934 ​ $ 63,170 ​ $ 49,042 ​ $ 444,081 ​ ​ — ​ $ 2,849,946 ​ $ 2,764,145 Weighted average rate ​ ​ 8.00 % ​ 3.93 % ​ 3.33 % ​ 3.79 % ​ 3.99 % ​ 3.72 % ​ — ​ ​ 7.06 % ​ ​ Fixed rate loans ​ $ 261,468 ​ $ 347,537 ​ $ 422,101 ​ $ 301,451 ​ $ 224,795 ​ $ 223,927 ​ $ 35,972 ​ $ 1,817,251 ​ $ 1,713,626 Weighted average rate ​ ​ 5.00 % ​ 4.83 % ​ 4.54 % ​ 4.63 % ​ 5.12 % ​ 4.04 % ​ 4.53 % ​ 4.69 % ​ ​ Federal Home Loan Bank stock and other interest earning assets ​ $ 26,313 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 26,313 ​ $ 26,313 Weighted average rate ​ 6.39 % — ​ — ​ — ​ — ​ — ​ — ​ 64.39 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial assets ​ $ 2,621,489 ​ $ 396,652 ​ $ 453,565 ​ $ 384,530 ​ $ 316,266 ​ $ 938,653 ​ $ 364,389 ​ $ 5,475,544 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial Liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Time deposits ​ $ 921,485 ​ $ 19,250 ​ $ 3,067 ​ $ 2,394 ​ $ 948 ​ $ 1,058 ​ ​ — ​ $ 948,202 ​ $ 948,202 Weighted average rate ​ 3.87 % 0.94 % 0.69 % 0.76 % 0.68 % 1.51 % — ​ 3.79 % ​ Brokered funds ​ $ 466,781 ​ $ 146,552 ​ $ 48,195 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 661,528 ​ $ 661,528 Weighted average rate ​ 5.42 % 4.59 % 4.90 % — ​ — ​ — ​ — ​ 5.20 % ​ Interest-bearing demand ​ $ 2,216,482 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 2,216,482 ​ $ 2,216,482 Weighted average rate ​ 1.67 % — ​ — ​ — ​ — ​ — ​ — ​ 1.67 % ​ Non-interest-bearing demand (3) ​ — ​ — ​ — ​ — ​ — ​ ​ — ​ $ 895,496 ​ $ 895,496 ​ $ 895,496 Weighted average rate ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ — ​ ​ Securities sold under reverse repurchase agreements ​ $ 70,843 ​ — ​ — ​ — ​ — ​ — ​ — ​ $ 70,843 ​ $ 70,843 Weighted average rate ​ 1.66 % — ​ — ​ — ​ — ​ — ​ — ​ 1.66 % ​ Short-term borrowings, overnight FHLB borrowings, and other liabilities ​ $ 252,610 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ $ 252,610 ​ $ 252,610 Weighted average rate ​ ​ 5.64 % ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 5.64 % ​ ​ Subordinated notes ​ — ​ $ 75,000 ​ ​ — ​ ​ — ​ — ​ ​ — ​ ​ — ​ $ 75,000 ​ $ 71,625 Weighted average rate ​ — ​ 5.92 % — ​ — ​ — ​ — ​ — ​ 5.92 % ​ Subordinated debentures ​ $ 25,774 ​ — ​ — ​ — ​ — ​ ​ — ​ — ​ $ 25,774 ​ $ 25,774 Weighted average rate ​ 7.24 % — ​ — ​ — ​ — ​ — ​ — ​ 7.24 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total financial liabilities ​ $ 3,953,975 ​ $ 240,802 ​ $ 51,262 ​ $ 2,394 ​ $ 948 ​ $ 1,058 ​ $ 895,496 ​ $ 5,145,935 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Periodic repricing GAP ​ $ (1,332,486) ​ $ 155,850 ​ $ 402,303 ​ $ 382,136 ​ $ 315,318 ​ $ 937,595 ​ $ (531,107) ​ $ 329,609 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cumulative repricing GAP ​ $ (1,332,486) ​ $ (1,176,636) ​ $ (774,333) ​ $ (392,197) ​ $ (76,879) ​ $ 860,716 ​ $ 329,609 ​ ​ (1) Available-for-sale debt securities include approximately $420.1 million of mortgage-backed securities and collateralized mortgage obligations, which pay interest and principal monthly to the Company.

Other GSBC 10-K year-over-year comparisons