GREAT SOUTHERN BANCORP, INC.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
GSBC$80.76+0.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001104659-26-092625
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001104659-26-123818
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 235 previous paragraphs and 245 current paragraphs.
72 unchanged; 130 reworded; 34 added; 27 removed; 6 previous and 9 current paragraphs rearranged.
Tables are not compared: 14 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
The national unemployment rate rose slightly to 4.2% for September 2026 compared to 4.1% for August 2026. The number of unemployed individuals was 7.1 million as of September 2026. Healthcare employment continued its upward trend in September 2026 with an increase of 17,000, but at a slower pace than the average monthly gain over the prior 12 months of 33,000. Manufacturing employment was little changed in September 2026 at 9,000 but is up by 72,000 since a recent low in December 2025.
Current report
According to CoStar, the U.S. apartment market is moving toward improved supply-demand balance, but conditions remain soft. Net deliveries in the third quarter of 2026 slowed to 142,000 units, which is down 29% from a year earlier. Over the most recent four trailing quarters ending in the third quarter of 2026, deliveries totaled roughly 431,000 units, a decline of approximately 24% year over year. Deliveries are expected to decline further in the fourth quarter of 2026 as the development pipeline continues to shrink. These declines mark a significant shift from the supply surge that shaped market conditions over the past several years.
Current report
In 2026, overall vacancy has declined to 7.9%, reflecting improving occupancy among newly delivered projects as lease-up continues. This decline is a reflection on both recently completed supply and stabilized properties. Excluding new supply in lease-up, stabilized vacancy stands at 6.6%, declining 40 basis points from its peak in the fourth quarter of 2025, as occupancy pressure at existing properties begins to ease. Geographic variation remains a defining factor of multifamily performance. The South and Mountain regions continue to account for many of the nation’s highest-vacancy markets as they work through a substantial overhang of recent supply, though conditions have started to improve. Thirteen of sixteen markets with vacancy above 10% recorded consecutive declines in the third quarter, with improving conditions in many of the markets most affected by the recent construction cycle. Charlotte, Phoenix and Jacksonville were among the markets posting meaningful improvements. On the positive end, many Pacific and Northeast markets remain among the nation’s most balanced. Midwest markets remain comparatively balanced, but vacancy is beginning to drift higher in parts of the region as new projects near completion.
Current report
Per CoStar, rent growth across various areas is expected to improve gradually as completions continue to decline, though progress is likely to remain incremental and uneven across markets and property types toward late 2026 and into 2027. Rent declines remain concentrated in markets that received the largest volume of new supply during the development cycle, including San Antonio (-1.9%), Austin (-1.4%), Denver (-1.1%) and Houston and Phoenix, both down (-1.0%). Conditions have improved significantly over the past year, when weakness was both deeper and more widespread and several markets were recording annual rent declines of 3 to 4%.
Current report
Trailing four quarter sales volume was essentially flat in the third quarter of 2026 compared with the same period a year earlier, the smallest annual increase since the third quarter of 2024. The market has become more guarded. Investors adjusted to a sharp repricing of interest rate expectations. Treasury yields, which hovered in the mid-4% range in early July, rose during the third quarter and reached 5.3% for the first time since 2002. Cap rates have responded to slower sales volume growth and higher borrowing costs, although the pattern varies by segment. Cap rates for properties with 100 to 250 units have grown throughout 2026, with asset quality influencing the level. Within this size range, 3 Star assets generally trade in the upper 5% range, while cap rates for 4- and 5-Star assets may be 25 to 50 basis points lower.
Current report
Office sales volume continues to gain ground, but the recovery remains uneven. Trailing four quarter sales volume increased more than 10% in September 2026 from a year earlier, while transaction counts fell 3%. Activity remains concentrated in the middle of the quality range, where 3- and 4-Star properties posted small annual increases. Higher quality properties recorded declines in both sales volume and transaction counts. In both instances, prices increased over the prior year. The recovery in office investment is progressing, but it is not lifting all properties equally.
Current report
The U.S. retail market reported retail rent growth holding momentum through the third quarter of 2026, with the national average asking rent hovering around 1.7% year-over-year as reported by CoStar. Regional patterns reflect differences in supply and demand. Palm Beach leads the nation with 7.6% annual rent growth, followed by Cincinnati at 6.1%, Nashville at 5.6%, Tucson at 5.3% and Columbus at 5.0%. Several Midwest markets have reaccelerated after years of muted growth, as limited development and steady backfilling tightened availability. Northern New Jersey, Phoenix and Charlotte also rank among the top performers. Rent growth is forecast to hold near 1.7% for 2026 before accelerating to about 2.6% in 2027. With limited new construction and steady store expansion, landlords are able to control more pricing power as leases signed at lower rates roll over. There is a risk of a pullback in consumer spending from continuing inflation and higher borrowing costs, which could slow sales growth and reduce retailers’ capacity to absorb higher occupancy costs.
Current report
Demand remained strong for a second straight quarter, confirming that the occupancy losses recorded early in the year were a temporary setback. Net absorption totaled about 9.8 million SF in the 3 rd quarter of 2026 after 10.3 million SF in the 2 nd quarter of 2026. Trailing 12-month absorption reached 23.6 million SF, which is a marked turnaround from 2025, when the sector posted a small net occupancy loss as bankruptcies and liquidations returned millions of square footage to the market. Tight supply is shaping where demand lands and performance varies across formats. General retail, which includes freestanding and single-tenant buildings, remains the tightest segment at 2.8% vacancy. Malls continue to improve, with vacancy down 30 basis points year to date to 7.9% as redevelopment and backfilling of anchor box stores gain traction. Neighborhood and strip center vacancy has edged higher, to 6.4% and 5.2% respectively, reflecting the lingering effect of small-shop and junior-anchor closures.
Current report
CoStar is reporting new leasing remains healthy for the U.S. Industrial market as a whole; however, renewals have slowed significantly. The separation shows that improving gross leasing does not translate one-for-one into net absorption. Relocations can create occupancy in a new building while leaving space behind elsewhere, making the pace of backfilling older properties an important measure of the recovery going forward. Market performance remains uneven. Dallas-Fort Worth and Austin lead the leasing recovery, averaging 97% and 95% of their prior leasing peaks. Houston has also returned to its historical peak for leases of at least 200,000 square feet. At the other end of the spectrum, St. Louis, East Bay and Cincinnati remain well below prior peaks, illustrating that the national rebound is not yet broad-based.
Current report
While new supply additions have outpaced net absorption over the 12-month period ended in the third quarter, the gap between demand and supply has tightened. However, the supply overhang still remains. Newly completed projects are in the leasing stage, and vacancy remains elevated across much of the logistics market, particularly among midsized buildings that received the greatest concentration of speculative development. Annual market asking rent growth has slowed to 1.3%, with quarterly rent growth currently at -0.1%, reflecting elevated availability and ongoing competition for tenants between new and existing buildings.
Current report
Industrial investment activity continued to expand in the third quarter of 2026, although the pace of improvement tempered. Trailing 12-month sales volume reached just under $200 billion, approximately 20% above the same period a year earlier. Transaction counts rose 8% compared to the trailing 12 months ending in the third quarter of 2025. That is meaningful progress, but momentum is softening; the market is still advancing, just with less force. If consumer spending on goods continues to worsen due to inflationary shocks, the effect could lead to less inventory on held on hand, which would translate to higher vacancy and a longer path to recovery. A mild near-term recession would likely push vacancy into the 8% to 9% range and result in the first material decline in the national U.S. rent average since the Great Recession.
Current report
In August 2026, the Bank launched an expanded eDocs initiative to Online Banking customers. The effort responds to a customer satisfaction need while reducing operational costs. A continued expansion of electronic document offerings is ongoing.
Current report
Net income was $47.3 million for the nine months ended September 30, 2026 compared to $54.7 million for the nine months ended September 30, 2025. This decrease of $7.4 million, or 13.6%, was primarily due to a decrease in non-interest income of $4.0 million, or 18.5%, an increase in non-interest expense of $3.3 million, or 3.2%, a decrease in net interest income of $3.0 million, or 2.0%, and an increase in provision for credit losses on unfunded commitments of $588,000, or 70.3%, partially offset by a decrease in income tax expense of $3.5 million, or 27.0%.
Current report
During the three months ended September 30, 2026, the Company identified historical periods in which variable-rate loan balances meeting the original cash flow hedge designation criteria were insufficient to support the full designated notional amount of its interest rate swaps. Accordingly, portions of the swaps were not eligible to receive hedge accounting treatment during those periods. Related historical fair-value changes and settlements were required to be recognized in earnings rather than being accounted for under the original cash flow hedge designations. Consequently, amounts previously recorded in accumulated other comprehensive income relating to this portion of forecasted interest receipts determined to be probable of not occurring were reclassified into earnings. These
Current report
historical adjustments resulted in a one-time, non-cash reclassification charge of approximately $3.5 million (before tax effect), comprised of a $4.1 million reduction in non-interest income and a $504,000 increase in interest income. Including a benefit to interest income noted below, the net pre-tax impact of $3.3 million (approximately $2.5 million after-tax, or $0.23 per diluted share) had zero impact on total stockholders’ equity and cash balances in the 2026 period.
Current report
The Company adopted ASU 2025-09 and separately redesignated its two existing interest rate swaps, with a combined notional amount of $400 million, into new cash flow hedging relationships supported by an expanded population of qualifying variable-rate loans. Amounts remaining in AOCI associated with forecasted interest receipts still probable of occurring will be reclassified into earnings over the periods in which those receipts affect earnings. The off-market fair values of the swaps at redesignation will be recognized through the new hedge accounting relationships, providing an offsetting earnings effect. The net future earnings benefit associated with these two components is expected to be approximately $3.5 million through May 2028, including $279,000 recognized in the three months ended September 30, 2026. Consequently, the $3.5 million charge to income in the three months ended September 30, 2026 is expected to be fully offset by future increases in interest income over the remaining lives of the redesignated interest rate swaps
Current report
balances and average rates of interest. Additionally, interest income decreased due to the conclusion of the recognition of terminated swap income accretion in October 2025. Partially offsetting these decreases, interest income from investment securities increased during the nine months ended September 30, 2026 compared to the same period in 2025 due to higher average balances and average rates of interest.
Current report
In the three months ended September 30, 2026, the Company also recorded an increase of loan interest income of $783,000. Of this amount, $504,000 related to the initial recording of the hedge accounting adjustment and $279,000 related to the accretion recognition from the net reclassification of frozen AOCI and the off-market components of the redesignated interest rate swaps.
Current report
Interest income on investments increased $2.0 million in the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Of this increase, $1.4 million was primarily due to a $160.6 million increase in average balances from $722.9 million during the three months ended September 30, 2025, to $883.5 million during the three months ended September 30, 2026. Average balances of securities increased primarily due to the purchase of approximately $400 million of agency mortgage-
Current report
backed securities and collateralized mortgage obligations during the third quarter of 2026, partially offset by normal monthly payments received related to the portfolio of U.S. Government agency mortgage-backed securities and collateralized mortgage obligations. Additionally, interest income on investments increased $566,000 as a result of higher average interest rates, from 3.34% during the three months ended September 30, 2025, to 3.63% during the three months ended September 30, 2026.
Current report
Interest income on investments increased $1.5 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Of the $1.5 million increase in interest income on investments, $1.1 million was due to a $43.0 million increase in average balances from $729.4 million during the nine months ended September 30, 2025, to $772.4 million during the nine months ended September 30, 2026. Additionally, interest income on investments increased $444,000 as a result of higher average interest rates, from 3.35% during the nine months ended September 30, 2025, to 3.43% during the nine months ended September 30, 2026.
Current report
Total interest expense decreased $4.5 million, or 15.7%, during the three months ended September 30, 2026, when compared with the three months ended September 30, 2025. Interest expense on deposits decreased $7.9 million, or 32.9%, interest expense on securities sold under reverse repurchase agreements decreased $159,000, or 53.5%, and interest expense on subordinated debentures issued to capital trusts decreased $41,000, or 10.1%. Partially offsetting these decreases, interest expense on short-term borrowings increased $3.6 million, or 100.4%.
Current report
30, 2025 to $2.21 billion in the nine months ended September 30, 2026, resulting in a decrease in interest expense on demand and savings deposits of $271,000.
Current report
Interest expense on reverse repurchase agreements decreased $673,000 during the nine months ended September 30, 2026 when compared to the nine months ended September 30, 2025. Interest expense on reverse repurchase agreements decreased $467,000 due
Current report
For the three months ended September 30, 2026, non-interest income decreased $3.7 million, to $3.4 million, compared to the three months ended September 30, 2025, primarily as a result of the following items:
Current report
Adjustment to historical cash flow hedge accounting: In the three months ended September 30, 2026, the Company recorded a $4.1 million reduction in non-interest income related to retrospective hedge accounting corrections and the reclassification of AOCI associated with forecasted interest receipts determined to be probable of not occurring. The adjustments arose because qualifying loan balances were insufficient to support the full original hedge designations during certain historical periods. A portion of this adjustment was offset through additional interest income in the three months ended September 30, 2026, and the off-market fair values of the swaps upon redesignation resulted in additional interest income during the three months ended September 30, 2026 and are expected to result in additional interest income over the remaining terms of the redesignated swaps through May 1, 2028.
Current report
Late charges and fees on loans: Late charges and fees on loans increased $240,000, or 127.0%, compared to the prior-year period. This increase was primarily due to prepayment fees on two large unrelated loans, which were paid off in the three months ended September 30, 2026. As a result, prepayment penalty fees increased from $78,000 in the third quarter of 2025 to $282,000 in the third quarter of 2026.
Current report
Other income: Other income increased $208,000 compared to the prior year period. Most of this increase was a result of the Company recording income of $116,000 related to fees received on the origination of back-to-back interest rate swaps as part of a new commercial real estate loan transaction, compared to no such fees occurring in the prior year period.
Current report
For the nine months ended September 30, 2026, non-interest income decreased $4.0 million, to $17.8 million, compared to the nine months ended September 30, 2025, primarily as a result of the following items:
Current report
Adjustment to historical cash flow hedge accounting: The accounting adjustments related to cash flow hedges described above decreased non-interest income $4.1 million in the nine months ended September 30, 2026.
Current report
For the three months ended September 30, 2026, non-interest expense increased $158,000, to $36.3 million, compared to the three months ended September 30, 2025, primarily as a result of the following items:
Current report
Salaries and employee benefits: Salaries and employee benefits decreased $565,000, or 2.8%, from the prior year period. Officer and employee salaries combined decreased approximately $600,000 compared to the prior year period, primarily due to lower bonus and incentive accruals, staff reductions in two loan production offices and a banking center that closed earlier this year, and a reduction in accrued severance/retention payments.
Current report
For the nine months ended September 30, 2026, non-interest expense increased $3.3 million, to $109.3 million, compared to the nine months ended September 30, 2025, primarily as a result of the following items:
Current report
Expense (income) on other real estate owned: Expenses on other real estate owned increased $410,000, or 107.9%, from the prior-year period. In the nine months ended September 30, 2026, the Company recorded a total of $766,000 in rental income from other real estate owned, compared to $1.3 million in rental income in the nine months ended September 30, 2025. The decrease in rental income in the 2026 period is due to fewer tenants in the St. Louis office building that was added to other real estate owned in 2024 as significant improvements are being made to that facility in 2026.
Removed paragraphs (27)
Previous report
The national unemployment rate changed minimally to 4.2% for June 2026 compared to 4.3% for May 2026. The number of unemployed individuals was 7.1 million as of June 2026. Leisure and hospitality employment declined by 61,000 in June 2026, reflecting weaker than usual seasonal hiring, but employment continued to trend up in professional and business services, social assistance, and health care.
Previous report
According to CoStar, the U.S. apartment market is moving toward improved supply-demand balance, but conditions remain soft. Net deliveries in the second quarter of 2026 slowed to 113,000 units, which is down 25% from a year earlier. Construction starts have dropped to their lowest level in more than a decade, reflecting declining rent trends, longer lease-up timelines, higher capital costs, and tighter lending standards. Deliveries are reducing from their peak, yet supply is still projected to run above normal absorption, pushing vacancy higher through the second half of 2026. Vacancy rates overall decreased to 8.1% in the second quarter of 2026, with vacancy of 10.1% for 4- & 5-star buildings, at 8.1% among 3-star buildings, and 6.2% for 1- & 2-star buildings. Geographic variation remains a distinguishing feature of multifamily performance. Vacancies are rising most in the South and Mountain regions, where new supply has been concentrated, while Midwest and Northeast markets remain more balanced. Among the 50 largest markets, vacancy is among the highest in San Antonio, Memphis, and Austin.
Previous report
Per CoStar, developers pushed supply to a 40-year high in 2024, with annual net deliveries peaking above 690,000 units in the fourth quarter of the year. Annual supply fell by 24% by year-end 2025, to approximately 529,000 units, and is projected to decline by more than 27% in 2026 to approximately 385,000 units at year-end 2026, the lowest level since 2019. The effect of the slowdown is uneven across the nation. Phoenix, Denver, and Austin are forecasting significant delivery/supply cuts. Under-construction volumes also fell sharply in the first half of 2026, including declines of more than 6,700 units in Dallas-Fort Worth, 4,200 units in Houston, and notable reductions in Charlotte as well. If sustained, this pullback in new supply would support excess inventory absorption in overbuilt Sun Belt markets, helping stabilize vacancy and support a return to stronger rent growth by early 2027.
Previous report
Sale transaction activity continued to expand in the second quarter of 2026, albeit slower than the first quarter of 2026, at 3,600 transactions versus 18,000 properties in the first quarter. The change in pace stems from a combination of meager rent growth and a modest repricing of interest rate expectations. Activity remains concentrated in large, liquid markets where asset quality is consistent. Those markets include Atlanta, Chicago, and Phoenix to name a few. Cap rates have also stabilized for 4- and 5-star assets, between 5% and 5.5%, with premier assets occasionally dipping into the upper 4% territory. Comparatively, 3-Star properties are more likely to trade between 5.75% to 6.25%.
Previous report
Second quarter 2026 sales volume dipped slightly from the first quarter of 2026. After five years of negative net absorption, demand was positive in each of the last four quarters as new construction came to a halt and headline vacancy ticked slightly lower. While the overall fundamental picture for office space remains persistent in the near term, the acceleration in trades suggests capital is increasingly positioning ahead of what could be a turning point for the sector. The broadening of buyer activity continues to support improving liquidity, even as underwriting practices remain tempered and business plans rely more on asset-level execution than market-driven rent growth. If absorption continues to improve as it has done in the last four quarters and pricing momentum continues, transaction activity is likely to remain on an upward path.
Previous report
The U.S. retail market leveled out in the second quarter of 2026. While discretionary spending has slowed and operating costs have risen, the impact on overall market health has been contained. Strong backfill demand and limited new supply helped keep availability stable, emphasizing the sector’s ongoing supply-constrained nature. While downside risks remain, including renewed closure pressure tied to discretionary spending, refinancing challenges for mid-tier retailers and broader macro uncertainty amid higher energy prices, the market’s low supply base positions the retail sector to remain in relative balance through the remainder of 2026.
Previous report
Leasing activity remained a key point of strength in 2025 and in the first half of 2026. Estimated leasing volume exceeded 54 million SF in the second quarter of 2026, marking the strongest pace recorded since early 2024 and reinforcing the depth of tenant demand for well-located space. Market participants continue to report rapid backfilling of second-generation vacancies, particularly in centers with strong traffic and visibility. The median time to lease remains near historic lows, and the share of available space leased each quarter continues to run above historical norms, reflecting sustained competition for high-quality inventory.
Previous report
Retail rent growth continued to moderate through the second quarter of 2026, with the national average asking rent hovering around 2.0% year-over year. While near term rent growth has slowed, longer term spreads remain elevated, providing landlords with meaningful rent roll-up on lease resets. Rent performance continues to vary widely across markets. Several Sun Belt metros, including Phoenix, Orlando, Atlanta, and Charlotte, continue to post annual rent gains of 3-5%. This is supported by population growth as well as tenant demand. Simultaneously, multiple Midwestern markets have emerged as relative outperformers, posting above-average gains as rent growth broadens geographically. Looking ahead, rent growth is expected to remain restrained, but stable, over the next several quarters. However, much of this space is expected to backfill quickly given the persistent shortage of quality inventory and minimal new construction. As a result, rent growth is forecast to remain subdued but stable over the next several quarters. Smaller, well-located spaces and fast-growing metros are expected to continue outperforming, while assets in slower-growth markets face ongoing challenges.
Previous report
Current U.S. industrial market performance continues to favor the tenant, reporting a decade-long high vacancy rate of 7.4% at June 30, 2026. While net absorption has recovered from soft activity, a supply overhang remains. Assuming the economy continues to expand, albeit at a reduced sub-2% real GDP growth rate, according to Oxford Economics, vacancy is forecast to increase through the remainder of 2026, peaking below 8%, and to begin declining in 2027 as deliveries moderate. Going forward, continued trade uncertainty remains a drag on demand, specifically for national and regional logistics distribution hubs. Consumer spending on goods could weaken due to inflationary shocks and a reduction in real household incomes.
Previous report
Due to elevated vacancy rates and slower leasing, year-over-year rent growth slowed to 1.2% for June 2026, its lowest rate since 2012. Annual asking rent growth has pulled back across various size groups, declining roughly 2.7% for spaces larger than 50,000 square feet, remaining flat for leases between 25,000 and 50,000 square feet, and rising less than 1% for smaller spaces. Competitive lease-up of new supply and elevated availability in older buildings continue to pressure landlord pricing power. While small-bay space remains the most liquid segment of the market, rising availability across most size ranges points to continued near-term softness in rent growth across markets and property types. However, due to record rent growth from 2021 through 2023, owners in many markets are still able to raise in-place rents when their tenants’ long-term leases expire. In the near term, rents for big-box logistics buildings of up to 500,000 SF are likely to remain soft due to elevated supply availability in most markets. Large industrial buildings in markets with the most saturated speculative development, such as Austin, Indianapolis, Phoenix, and San Antonio, are most at risk.
Previous report
Sales volume increased to approximately $26 billion in the second quarter of 2026. This drive was carried forward from 2025, when total sales surpassed $80 billion, making it the third strongest year on record. Deal flow continues to skew toward the extremes. Transactions under $10 million remain the most active segment, while the $10 million to $50 million range has not progressed as far. Meanwhile, institutional capital has returned to the high end of the market, with sales over $50 million gaining share and showing renewed traction. Cap rates have expanded roughly 150 basis points and now typically hover in the mid-5% to 6% range. Pricing risk remains level as construction deliveries continue to slow.
Previous report
Great Southern launched a partnership with Greenlight, a debit card and financial learning app for kids and teens, in April 2026. The partnership offers a free Greenlight membership to Great Southern customers and is part of the Company’s ongoing efforts to expand both technology and family banking offerings.
Previous report
Also in April 2026, the Company’s fully redesigned website www.GreatSouthernBank.com, launched. The website, representative of Great Southern’s continued technology investments, offers customers and interested parties an improved online experience with up-to-date content, improved navigation, easier access to financial education information and more.
Previous report
Net income was $33.3 million for the six months ended June 30, 2026 compared to $36.9 million for the six months ended June 30, 2025. This decrease of $3.6 million, or 9.9%, was primarily due to an increase in non-interest expense of $3.2 million, or 4.6%, a decrease in net interest income of $2.5 million, or 2.5%, and a decrease in non-interest income of $398,000, or 2.7%, partially offset by an increase in negative provision for credit losses on unfunded commitments of $465,000, or 101.5%, and a decrease in income tax expense of $1.9 million, or 21.9%.
Previous report
Interest income on investments decreased $122,000 in the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease in interest income on investments was primarily due to a $155,000 decrease in average balances from $727.3 million during the three months ended June 30, 2025, to $709.0 million during the three months ended June 30, 2026. Average balances of securities decreased primarily due to normal monthly payments received related to the portfolio of U.S. Government agency mortgage-backed securities and collateralized mortgage obligations. Partially offsetting this decrease, interest income on investments increased $33,000 as a result of slightly higher average interest rates, from 3.36% during the three months ended June 30, 2025, to 3.38% during the three months ended June 30, 2026.
Previous report
Interest income on investments decreased $464,000 in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Of the $464,000 decrease in interest income on investments, $277,000 was due to a decrease in average balances from $732.7 million during the six months ended June 30, 2025, to $715.9 million during the six months ended June 30, 2026. Average balances of securities decreased primarily due to normal monthly payments received related to the portfolio of U.S. Government agency mortgage-backed securities and collateralized mortgage obligations. Additionally, interest income on investments decreased $187,000 as a result of slightly lower average interest rates, from 3.35% during the six months ended June 30, 2025, to 3.30% during the six months ended June 30, 2026.
Previous report
Total interest expense decreased $15.1 million, or 24.8%, during the six months ended June 30, 2026, when compared with the six months ended June 30, 2025. Interest expense on deposits decreased $12.8 million, or 26.1%, interest expense on securities sold under reverse repurchase agreements decreased $514,000, or 69.2%, and interest expense on subordinated debentures issued to capital trusts decreased $75,000, or 9.7%. In addition, interest expense on subordinated notes decreased $2.0 million, or 100.0%, as the notes were
Previous report
Provision for and Allowance for Credit Losses
Previous report
For the three months ended June 30, 2026, non-interest income decreased $837,000, to $7.4 million, compared to the three months ended June 30, 2025, primarily as a result of the following items:
Previous report
For the six months ended June 30, 2026, non-interest income decreased $398,000, to $14.4 million, compared to the six months ended June 30, 2025, primarily as a result of the following items:
Previous report
Other income: Other income decreased $727,000, or 24.7%, compared to the prior-year period, for the same reasons noted above.
Previous report
For the three months ended June 30, 2026, non-interest expense increased $3.2 million, to $38.2 million, compared to the three months ended June 30, 2025, primarily as a result of the following items:
Previous report
Salaries and employee benefits: Salaries and employee benefits increased $686,000, or 3.4%, from the prior-year period. The increase was primarily due to the Company recording $561,000 in expenses related to severance pay for employees affected by the consolidations in banking centers and other operational areas. See “Business Initiatives.”
Previous report
For the six months ended June 30, 2026, non-interest expense increased $3.2 million, to $73.0 million, compared to the six months ended June 30, 2025, primarily as a result of the following items:
Previous report
Salaries and employee benefits: Salaries and employee benefits increased $628,000, or 1.6%, from the prior-year period, for the same reasons noted above.
Previous report
Defined as the Company’s net interest income divided by total average interest-earning assets.
Previous report
Defined as the Company’s net interest income divided by total average interest-earning assets.
Reworded paragraphs (130)
Previous wording
At June 30, 2026, the amortizable intangible assets included the arena naming rights of $4.0 million, which are reflected in the table below. These amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value. During both the three months ended June 30, 2026 and 2025, the amortization expense of the arena naming rights was $108,000. During both the six months ended June 30, 2026 and 2025, the amortization expense of the arena naming rights was $217,000.
Current wording
At September 30, 2026, the amortizable intangible assets included the arena naming rights of $3.9 million and the suite naming rights of $296,000, which are reflected in the table below. These amortizable intangible assets are reviewed for impairment if circumstances indicate their value may not be recoverable based on a comparison of fair value. During the three months ended September 30, 2026 and 2025, the amortization expense of the arena naming rights and suite naming rights was $112,000 and $108,000, respectively. During the nine months ended September 30, 2026 and 2025, the amortization expense of the arena naming rights and suite naming rights was $329,000 and $325,000, respectively.
Previous wording
Management does not believe any of the Company’s goodwill or other intangible assets were impaired as of June 30, 2026. While management believes no impairment existed as of June 30, 2026, 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.
Current wording
Our regular annual impairment assessment occurs in the third quarter of each year. The Company performed this annual review as of September 30, 2026, and concluded that no impairment of its goodwill or other intangible assets had occurred as of that date. While management believes no impairment existed as of September 30, 2026, 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.
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Additionally, the Federal Reserve acted decisively by slashing its benchmark interest rate to near zero and ensuring credit availability to businesses, households, and municipal governments. The Federal Reserve’s efforts largely insulated the financial system from the problems in the economy, a significant difference from the financial crisis of 2007-2008. Purchases of Treasury and agency mortgage-backed securities totaling $120 billion each month by the Federal Reserve commenced shortly after the pandemic began. In November 2021, the Federal Reserve began to taper its quantitative easing (QE), winding down its bond purchases with its final open market purchase conducted on March 9, 2022. The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023. The Federal Reserve aggressively raised the federal funds interest rates from early 2022 through mid - 2023, pushing the federal funds rate to more than 5.50%, its highest level in 22 years. The Federal Reserve’s actions were motivated by surging inflation in 2021 caused by pandemic-fueled spending, which outpaced the ability of producers to supply goods and services after having been impacted by COVID-related shutdowns and clogged transportation systems. The Federal Reserve made some headway in its attempt to force inflation down. The federal funds rate range was between 5.25% to 5.50% until mid-September 2024. The target range decreased in December 2025 to 3.50%-3.75%, which carried over to the first half of 2026.
Current wording
Additionally, the Federal Reserve acted decisively by slashing its benchmark interest rate to near zero and ensuring credit availability to businesses, households, and municipal governments. The Federal Reserve’s efforts largely insulated the financial system from the problems in the economy, a significant difference from the financial crisis of 2007-2008. Purchases of Treasury and agency mortgage-backed securities totaling $120 billion each month by the Federal Reserve commenced shortly after the pandemic began. In November 2021, the Federal Reserve began to taper its quantitative easing (QE), winding down its bond purchases with its final open market purchase conducted on March 9, 2022. The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023. The Federal Reserve aggressively raised the federal funds interest rates from early 2022 through mid - 2023, pushing the federal funds rate to more than 5.50%, its highest level in 22 years. The Federal Reserve’s actions were motivated by surging inflation in 2021 caused by pandemic-fueled spending, which outpaced the ability of producers to supply goods and services after having been impacted by COVID-related shutdowns and clogged transportation systems. The Federal Reserve made some headway in its attempt to force inflation down. The federal funds rate range was between 5.25% to 5.50% until mid-September 2024. The target range decreased in December 2025 to 3.50%-3.75%, which carried over to the first half of 2026. In mid - September 2026, the fed funds rate increased to 3.75% - 4.00%.
Previous wording
The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, eased from its peak of 7.1% in June 2022 to 2.9% in December 2023. At June 30, 2026, Core PCE, which excludes food and energy prices, rose to 3.3% from 2.6% one year ago; the Federal Reserve’s target is 2%.
Current wording
The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, eased from its peak of 7.1% in June 2022 to 2.9% in December 2023. At September 30, 2026, Core PCE, which excludes food and energy prices, rose to 3.1% from 2.9% one year ago; the Federal Reserve’s target is 2%.
Previous wording
Based on Moody’s U.S. Baseline Outlook and Alternative Scenarios Analysis dated July 2026, real GDP grew in the first quarter of 2026 by 2.1% based on the third estimate from the Bureau of Economic Analysis. The July 2026 outlook on GDP growth for 2026 and 2027 is 2.2% and 1.9%, respectively, compared to April 2026’s report of 2.3% for 2026 and 1.7% for 2027.
Current wording
Based on Moody’s U.S. Baseline Outlook and Alternative Scenarios Analysis dated October 2026, real GDP decelerated from 2.5% in the first quarter of 2026 to 2.2% in the second quarter of 2026 based on the third estimate from the Bureau of Economic Analysis. The October 2026 outlook on GDP growth for 2026 and 2027 is 2.3% and 1.9%, respectively, compared to September 2026’s report of 2.2% for 2026 and 2.0% for 2027.
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As of June 2026, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) decreased by 0.3% to 61.5%. The unemployment rate for the Midwest, where the Company conducts most of its business, decreased from March 2026 at 4.2% to June 2026 at 4.0%. Unemployment rates for June 2026 in the states where the Company has a branch or a loan production office were as follows: Arizona at 4.9%, Arkansas at 4.1%, Colorado at 3.9%, Georgia at 3.4%, Illinois at 5.1%, Iowa at 3.2%, Kansas at 3.8%, Minnesota at 4.4%, Missouri at 3.7%, Nebraska at 2.9%, North Carolina at 3.6%, and Texas at 4.4%. These rates are relatively unchanged for a majority of those states compared to March 2026.
Current wording
As of September 2026, the labor force participation rate (the share of working-age Americans employed or actively looking for a job) changed minimally at 61.8%. The unemployment rate for the Midwest, where the Company conducts most of its business, remained stagnant for September 2026 at 3.9%. Unemployment rates for September 2026 in the states where the Company has a branch or a loan production office were as follows: Arizona at 4.9%, Colorado at 4.1%, Georgia at 3.3%, Illinois at 4.6%, Iowa at 3.2%, Kansas at 3.8%, Minnesota at 4.5%, Missouri at 3.6%, Nebraska at 2.9%, North Carolina at 3.4% and Texas at 4.4%. These rates are relatively unchanged for a majority of those states compared to June 2026.
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Existing-home sales decreased 2.4% in June 2026, compared to May 2026, to a seasonally adjusted annual rate of 4.09 million; year-over-year existing home sales decreased 2.8%. In the Midwest, existing-home sales decreased to 3.0% in June 2026 at an annual rate of $980,000, up 2.1% from one year earlier.
Current wording
Existing-home sales increased by 1.5% compared to August 2026 and decreased by 2.2% compared to September 2025, to a seasonally adjusted annual rate of 3.99 million according to the National Association of REALTORS Existing-Home Sales report. In the Midwest, existing-home sales decreased to 3.0% in June 2026 at an annual rate of $980,000, up 2.1% from one year earlier.
Previous wording
The median existing-home sales price rose 1.8% from June 2025 to $432,700 in June 2026. The median price in the Midwest in June 2026 was $346,600, up 2.7% from June 2025. The South region reported a median price increase when compared to the prior year of 0.9% and the West region reported a median price increase when compared to the prior year of 0.9%.
Current wording
The median existing-home sales price rose 1.3% from September 2025 to $417,000 in September 2026. The median price in the Midwest in September 2026 was $329,600, up 3.1% from September 2025. The South region reported a median price increase when compared to the prior year of 0.2% and the West region reported a median price decrease when compared to the prior year of 0.3%.
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Total housing inventory registered at the end of June 2026 was 1.56 million units, down 0.6% from May 2026 and up 1.3% from one year ago. Unsold inventory sat at a 4.6-month supply at the end of June 2026, up from 4.5 months in May 2026 and up 4.6 months from one year ago.
Current wording
Total housing inventory registered at the end of September 2026 was 1.60 million units, up 1.9% from August 2026 and up 4.6% from one year ago. Unsold inventory sat at a 4.8-month supply at the end of September 2026, unchanged from August 2026 and up from a 4.5-month supply from one year ago.
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New home construction dropped precipitously after the financial crisis of 2007-2008 and has yet to fully recover. Issues contributing to the country’s current housing shortage include increasing labor and materials costs, availability of building materials, increased interest rates and tighter lending underwriting standards. Single-family housing starts in June 2026 were at an annual rate of 895,000, 0.2% below the revised figure for May 2026 of 897,000.
Current wording
New home construction dropped precipitously after the financial crisis of 2007-2008 and has yet to fully recover. Issues contributing to the country’s current housing shortage include increasing labor and materials costs, availability of building materials, increased
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Sales of new single‐family houses in June 2026 were at a seasonally adjusted annual rate of 628,000 according to the U.S. Census Bureau and the Department of Housing and Urban Development. This was 1.6% above the May 2026 rate of 618,000 and 5.6% below the June 2025 rate of 665,000.
Current wording
Sales of new single‐family houses in September 2026 were at a seasonally adjusted annual rate of 676,000 according to the U.S. Census Bureau and the Department of Housing and Urban Development. This was 0.6% below the August 2026 rate of 680,000 and 5.3% below the September 2025 rate of 714,000.
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The median sales price of new houses sold in June 2026 was $398,300, which was 3.3% below the May 2026 median of $412,000. The seasonally adjusted estimate of new houses for sale at the end of June 2026 represented a supply of 9.3 months at the current sales rate.
Current wording
The median sales price of new houses sold in September 2026 was $400,400, which was 3.9% above the August 2026 median of $385,400. The seasonally adjusted estimate of new houses for sale at the end of September 2026 represented a supply of 8.4 months at the current sales rate.
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According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 6.55% as of July 22, 2026, down from 6.75% one year ago.
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According to Freddie Mac, the average commitment rate for a 30-year, fixed-rate mortgage was 7.32% as of October 22, 2026, up from 6.19% one year ago.
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Our market areas reflected the following apartment vacancy levels as of June 2026: Springfield, Missouri at 8.7%, St. Louis 10.0%, Kansas City 8.5%, Minneapolis at 6.1%, Dallas-Fort Worth 11.6%, Chicago 5.2%, Atlanta 10.9%, Phoenix 11.2%, Denver 10.3% and Charlotte, North Carolina 11.7%.
Current wording
Our market areas reflected the following apartment vacancy levels as of September 2026: Springfield, Missouri at 7.5%, St. Louis 9.9%, Kansas City 8.7%, Minneapolis at 6.0%, Dallas-Fort Worth 11.3%, Chicago 5.1%, Atlanta 10.8%, Phoenix 10.6%, Denver 9.9% and Charlotte, North Carolina 11.1%.
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The office sector continued to see demand rebound in the first half of 2026, with growth in the last four consecutive quarters. The national vacancy rate fell to 13.9% as of June 30, 2026 from a record high of 14.2% at midyear 2025. Given the overall improvement in performance, the forecast anticipates a continued high level of vacancy through the remainder of 2026, followed by a gradual decrease, driven primarily by an ongoing supply-side adjustment. This has all occurred despite an overall lack of hiring by firms in the traditional office-using powerhouse industries of information, finance, and professional services. Collectively, organizations in these knowledge-based economic sectors have shed roughly 675,000 jobs since early 2023. The long-term projections are still uncertain on how much recovery the office market will see.
Current wording
The office sector continued to see demand rebound in the third quarter of 2026, with growth in the last five consecutive quarters. The national vacancy rate fell to 13.6% as of September 30, 2026 from a record high of 14.2% at midyear 2025. Given the overall improvement in performance, the forecast anticipates a continued high level of vacancy through the remainder of 2026, followed by a gradual decrease, driven primarily by an ongoing supply-side adjustment. This has all occurred despite an overall lack of hiring by firms in the traditional office-using powerhouse industries of information, finance, and professional services. Collectively, organizations in these knowledge-based economic sectors have shed roughly 700,000 jobs since early 2023. The long-term projections are still uncertain on how much recovery the office market will see.
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The demand recovery is complex and variable both across and within the country’s major cities according to CoStar. Only about half of major metro areas have posted occupancy gains in the past 12 months, a historically unique occurrence which indicates the fragmented nature of the market. Leasing volumes remain depressed in many markets, including Atlanta, Chicago, Los Angeles, Seattle, and Washington, DC. Furthermore, the composition of tenants in the market has shifted. The number of lease deals executed in the first half of 2026 was the most in a decade. However, per CoStar, the average size remains roughly 15% smaller than in the late 2010s, a geographically broad trend that has persisted for the past two years.
Current wording
The demand recovery is complex and variable both across and within the country’s major cities according to CoStar. Leasing volumes remain depressed in various markets, including Atlanta, Chicago, Los Angeles, Philadelphia, Seattle, and Washington, DC. Furthermore, the structure of tenants in the market has shifted severely. The quarterly number of lease deals executed over the past year has been near the highest in a decade. However, per CoStar, the average size remains roughly 15% smaller than in the late 2010s, a geographically broad trend that has persisted for more than two years.
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Office asking rents have risen little since early 2020, while effective rents have fallen significantly. Class A prime location rents have increased sharply in some submarkets, with demand concentrating in premium buildings. Meanwhile, Class A buildings in non-premium buildings have struggled until recently to maintain steady rents. Constricting availability has helped to stabilize rents in this tier of buildings in some markets, but not all. In certain submarkets, highly amenitized and/or transit-oriented areas, asking rents have resumed growth at or above the rate of inflation.
Current wording
Office asking rents have risen 2.5% over the past year. Class A prime location rents have increased sharply in some submarkets, with demand concentrating in premium buildings. Meanwhile, Class A buildings in non-premium areas have struggled until recently to maintain steady rents. Constricting availability has helped to stabilize rents in this tier of buildings in some markets, but not all. In certain submarkets, highly amenitized and/or transit-oriented areas, asking rents have resumed growth at or above the rate of inflation.
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As of June 2026, national office vacancy rates remained stable at 13.9%, while our market areas reflected the following vacancy levels: Springfield, Missouri at 3.9%, St. Louis at 11%, Kansas City 9.9%, Minneapolis 12.5%, Dallas-Fort Worth at 17.4%, Chicago at 17.0%, Atlanta at 16.4%, Denver at 18.5%, Phoenix at 15.8% and Charlotte, North Carolina at 13.1%.
Current wording
As of September 2026, national office vacancy rates remained stable at 13.6%, while our market areas reflected the following vacancy levels: Springfield, Missouri at 3.6%, St. Louis at 11.3%, Kansas City 10.5%, Minneapolis 12.3%, Dallas-Fort Worth at 16.8%, Chicago at 16.8%, Atlanta at 16.2%, Denver at 17.9%, Phoenix at 15.4% and Charlotte, North Carolina at 12.5%.
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During the second quarter of 2026, national retail vacancy rates remained steady at 4.3% while our market areas reflected the following vacancy levels: Springfield, Missouri at 2.5%, St. Louis at 3.9%, Kansas City at 4.7%, Minneapolis at 2.6%, Dallas-Fort Worth at 5.1%, Chicago at 4.9%, Atlanta at 4.4%, Phoenix at 4.8%, Denver at 4.4%, and Charlotte, North Carolina at 3.3%.
Current wording
During the third quarter of 2026, national retail vacancy rates remained steady at 4.3% while our market areas reflected the following vacancy levels: Springfield, Missouri at 3.1%, St. Louis at 3.7%, Kansas City at 4.5%, Minneapolis at 2.2%, Dallas-Fort Worth at 5.1%, Chicago at 4.8%, Atlanta at 4.5%, Phoenix at 4.5%, Denver at 4.3%, and Charlotte, North Carolina at 3.4%.
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For the second quarter of 2026, national industrial vacancy was 7.4% while our market areas reflected the following industrial vacancy levels: Springfield, Missouri at 1.5%, St. Louis at 5.6%, Kansas City at 5.9%, Minneapolis 4.5%, Dallas-Fort Worth at 8.2%, Chicago at 5.5%, Atlanta at 8.7%, Phoenix at 10.6%, Denver at 9.0% and Charlotte, North Carolina at 10.0%.
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For the third quarter of 2026, national industrial vacancy was 7.2% while our market areas reflected the following industrial vacancy levels: Springfield, Missouri at 1.6%, St. Louis at 5.2%, Kansas City at 5.7%, Minneapolis 4.3%, Dallas-Fort Worth at 7.5%, Chicago at 5.0%, Atlanta at 8.3%, Phoenix at 10.3%, Denver at 9.2% and Charlotte, North Carolina at 9.1%.
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Great Southern’s total assets decreased $75.8 million, or 1.4%, from $5.60 billion at December 31, 2025, to $5.52 billion at June 30, 2026. Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at June 30, 2026 and December 31, 2025.”
Current wording
Great Southern’s total assets increased $222.4 million, or 4.0%, from $5.60 billion at December 31, 2025, to $5.82 billion at September 30, 2026. Details of the current period changes in total assets are provided below, under “Comparison of Financial Condition at September 30, 2026 and December 31, 2025.”
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*Loans.*Net outstanding loans decreased $49.1 million from December 31, 2025, to $4.31 billion at June 30, 2026. The decrease was primarily in commercial real estate loans and other residential (multi-family) loans, partially offset by an increase in construction loans. As loan demand is affected by a variety of factors, including general economic conditions, and because of the competition we face and our focus on pricing discipline and credit quality, no assurance can be given that our loan growth will match or exceed the average level of growth achieved in prior years. The Company’s strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels.
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*Loans.*Net outstanding loans decreased $108.4 million from December 31, 2025, to $4.25 billion at September 30, 2026. The decrease was primarily in commercial real estate loans and other residential (multi-family) loans, partially offset by an increase in construction loans. As loan demand is affected by a variety of factors, including general economic conditions, and because of the competition we face and our focus on pricing discipline and credit quality, no assurance can be given that our loan growth will match or exceed the average level of growth achieved in prior years. The Company’s strategy continues to be focused on maintaining credit risk and interest rate risk at appropriate levels.
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Until 2025, the Company had experienced total loans receivable balances that were stable to growing. Total commercial real estate and commercial construction balances were fairly stable over the preceding five years. One- to four-family loan totals increased in 2022 and have since decreased each year. Recent significant growth occurred in other residential (multi-family) loans up until 2025; however, other residential (multi-family) loan balances decreased in 2025 and in the first six months of 2026. Most of Great Southern’s loans are generated in its primary lending locations, including Springfield, St. Louis, Kansas City, Des Moines and Minneapolis, as well as our loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver and Phoenix. Certain minimum underwriting standards and monitoring help assure the Company’s portfolio quality. All new loan originations that exceed lender approval authorities are subject to review and approval by Great Southern’s loan committee. Generally, the Company considers commercial construction, consumer, other residential (multi-family) and commercial real estate loans to involve a higher degree of risk compared to some other types of loans, such as first mortgage loans on one- to four-family, owner-occupied residential properties. For other residential (multi-family), commercial real estate, commercial business and construction loans, the credits are subject to an analysis of the borrower’s and guarantor’s financial condition, credit history, verification of liquid assets, collateral, market analysis and repayment ability. It has been, and continues to be, Great Southern’s practice to verify information from potential borrowers regarding assets, income or payment ability and credit ratings as applicable and as required by the authority approving the loan. To minimize construction risk, projects are monitored as construction draws are requested by comparison to budget and with progress
Current wording
Until 2025, the Company had experienced total loans receivable balances that were stable to growing. Total commercial real estate and commercial construction balances were fairly stable over the preceding five years. One- to four-family loan totals increased in 2022 and have since decreased each year. Recent significant growth occurred in other residential (multi-family) loans up until 2025; however, other residential (multi-family) loan balances decreased in 2025 and in the first nine months of 2026. Most of Great Southern’s loans are generated in its primary lending locations, including Springfield, St. Louis, Kansas City, Des Moines and Minneapolis, as well as our loan production offices in Atlanta, Charlotte, Chicago, Dallas, Denver and Phoenix. Certain minimum underwriting standards and monitoring help assure the Company’s portfolio quality. All new loan originations that exceed lender approval authorities are subject to review and approval by Great Southern’s loan committee. Generally, the Company considers commercial construction, consumer, other residential (multi-family) and commercial real estate loans to involve a higher degree of risk compared to some other types of loans, such as first mortgage loans on one- to four-family, owner-occupied residential properties. For other residential (multi-family), commercial real estate, commercial business and construction loans, the credits are subject to an analysis of the borrower’s and guarantor’s financial condition, credit history, verification of liquid assets, collateral, market analysis and repayment ability. It has been, and continues to be, Great Southern’s practice to verify information from potential borrowers regarding assets, income or payment ability and credit ratings as applicable and as required by the authority approving the loan. To
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verified through property inspections. The geographic and product diversity of collateral, equity requirements and limitations on speculative construction projects help to mitigate overall risk in these loans. Underwriting standards for all loans also include loan-to-value ratio limitations, which vary depending on collateral type, debt service coverage ratios or debt payment to income ratio guidelines, where applicable, credit histories, use of guaranties and other recommended terms relating to equity requirements, amortization, and maturity. Consumer loans, other than home equity loans, are primarily secured by new or used motor vehicles and these loans are subject to underwriting standards designed to assure portfolio quality. In 2019, the Company discontinued indirect auto loan originations.
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minimize construction risk, projects are monitored as construction draws are requested by comparison to budget and with progress verified through property inspections. The geographic and product diversity of collateral, equity requirements and limitations on speculative construction projects help to mitigate overall risk in these loans. Underwriting standards for all loans also include loan-to-value ratio limitations, which vary depending on collateral type, debt service coverage ratios or debt payment to income ratio guidelines, where applicable, credit histories, use of guaranties and other recommended terms relating to equity requirements, amortization, and maturity. Consumer loans, other than home equity loans, are primarily secured by new or used motor vehicles and these loans are subject to underwriting standards designed to assure portfolio quality. In 2019, the Company discontinued indirect auto loan originations.
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While our policy allows us to lend up to 95% of the appraised value on one- to four-family residential properties, originations of loans with loan-to-value ratios at that level are minimal. Private mortgage insurance is typically required for loan amounts above the 80% level. Few exceptions occur and would be based on analyses which determined minimal transactional risk to be involved. We consider these lending practices to be consistent with or more conservative than what we believe to be the norm for banks our size. At both June 30, 2026 and December 31, 2025, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination. At June 30, 2026 and December 31, 2025, 0.2% and 0.4% of our non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination, respectively.
Current wording
While our policy allows us to lend up to 95% of the appraised value on one- to four-family residential properties, originations of loans with loan-to-value ratios at that level are minimal. Private mortgage insurance is typically required for loan amounts above the 80% level. Few exceptions occur and would be based on analyses which determined minimal transactional risk to be involved. We consider these lending practices to be consistent with or more conservative than what we believe to be the norm for banks our size. At both September 30, 2026 and December 31, 2025, 0.2% of our owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination. At September 30, 2026 and December 31, 2025, 0.0% and 0.4% of our non-owner occupied one- to four-family residential loans had loan-to-value ratios above 100% at origination, respectively.
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Available-for-sale Securities.In the six months ended June 30, 2026, available-for-sale securities decreased $20.0 million, or 3.8%, from $523.8 million at December 31, 2025, to $503.8 million at June 30, 2026 due to monthly principal payments on investment securities and decreases in market value of the available-for-sale securities. For further information on investment securities, seeNote 5 to the accompanying financial statements contained in this Report.
Current wording
Available-for-sale Securities.In the nine months ended September 30, 2026, available-for-sale securities increased $329.4 million, or 62.9%, from $523.8 million at December 31, 2025, to $853.2 million at September 30, 2026 due to the purchase of approximately $400 million of agency mortgage-backed securities and collateralized mortgage obligation during the third quarter of 2026, partially offset by monthly principal payments on investment securities and decreases in market value of the available-for-sale securities. For further information on investment securities, seeNote 5 to the accompanying financial statements contained in this Report.
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*Held-to-maturity Securities.*In the six months ended June 30, 2026, held-to-maturity securities decreased $3.9 million, or 2.2%, from $179.2 million at December 31, 2025, to $175.3 million at June 30, 2026, due to principal payments on mortgage-backed securities and collateralized mortgage obligations.
Current wording
*Held-to-maturity Securities.*In the nine months ended September 30, 2026, held-to-maturity securities decreased $10.2 million, or 5.7%, from $179.2 million at December 31, 2025, to $169.0 million at September 30, 2026, due to principal payments on mortgage-backed securities and collateralized mortgage obligations.
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*Deposits.*The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, internet channels and brokered deposits. The Company then utilizes these deposit funds, along with FHLBank advances and other borrowings, to meet loan demand or otherwise fund its activities. In the six months ended June 30, 2026, total deposit balances decreased $180.7 million, or 4.0%. Compared to December 31, 2025, brokered deposits decreased $87.8 million, transaction account balances decreased $56.0 million, or 1.8%, to $3.07 billion, and retail certificates of deposit decreased $36.9 million, or 5.4%, to $651.5 million at June 30, 2026. The decrease in transaction accounts was primarily a result of a decrease in various money market accounts, as non-interest-bearing checking accounts increased $35.8 million. Retail time deposits decreased due to a decrease in retail certificates generated or maintained through the banking center network. Competition for time deposits has been, and remains, significant in most of our markets. Brokered deposits, including IntraFi program purchased funds, were $575.6 million and $663.4 million at June 30, 2026 and December 31, 2025, respectively. The Company uses brokered deposits of select maturities and interest rate structures from time to time to supplement its various funding channels and to manage interest rate risk.
Current wording
*Deposits.*The Company attracts deposit accounts through its retail branch network, correspondent banking and corporate services areas, internet channels and brokered deposits. The Company then utilizes these deposit funds, along with FHLBank advances and other borrowings, to meet loan demand or otherwise fund its activities. In the nine months ended September 30, 2026, total deposit balances decreased $412.8 million, or 9.2%. Compared to December 31, 2025, brokered deposits decreased $299.7 million, or 45.2%, to $363.8 million, transaction account balances decreased $43.3 million, or 1.4%, to $3.09 billion, and retail certificates of deposit decreased $69.9 million, or 10.2%, to $618.6 million at September 30, 2026. As loans receivable decreased and other funding options became more attractive, the Company elected not to replace some of its maturing brokered deposits. The Company, from time to time, uses brokered deposits of select maturities and interest rate structures to supplement its various funding channels and to manage interest rate risk. The decrease in transaction accounts was primarily a result of a decrease in various NOW and money market accounts, as non-interest-bearing checking accounts increased $29.3 million. Retail time deposits decreased due to a decrease in retail certificates generated or maintained through the banking center network. Competition for time deposits has been, and remains, significant in most of our markets.
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Our ability to fund growth in future periods may also depend on our ability to continue to access brokered deposits and FHLBank advances. In times when loan demand has outpaced our generation of new deposits, we have utilized brokered deposits and FHLBank advances to fund these loans. These funding sources have been attractive to us because we can create either fixed or variable rate funding, as desired, which more closely matches the interest rate nature of much of our loan portfolio. It also gives us greater flexibility in increasing or decreasing the duration of our funding. While we do not currently anticipate that our ability to access these sources will be reduced or eliminated in future periods, if this should happen, the limitation on our ability to fund additional loans could have a material adverse effect on our business, financial condition and results of operations. See “Results of Operations and Comparison for the Three and Six Months Ended June 30, 2026 and 2025 – Liquidity” below for further information on funding sources.
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Our ability to fund growth in future periods may also depend on our ability to continue to access brokered deposits and FHLBank advances. In times when loan demand has outpaced our generation of new deposits, we have utilized brokered deposits and FHLBank advances to fund these loans. These funding sources have been attractive to us because we can create either fixed or variable rate funding, as desired, which more closely matches the interest rate nature of much of our loan portfolio. It also gives us greater flexibility in increasing or decreasing the duration of our funding. While we do not currently anticipate that our ability to access these sources will be reduced or eliminated in future periods, if this should happen, the limitation on our ability to fund additional loans
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*Securities sold under reverse repurchase agreements with customers.*Securities sold under reverse repurchase agreements with customers decreased $8.6 million from $48.5 million at December 31, 2025 to $39.9 million at June 30, 2026. These balances fluctuate over time based on customer demand for this product.
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*Securities sold under reverse repurchase agreements with customers.*Securities sold under reverse repurchase agreements with customers decreased $7.2 million from $48.4 million at December 31, 2025 to $41.2 million at September 30, 2026. These balances fluctuate over time based on customer demand for this product.
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Short-term borrowings and other interest-bearing liabilities. Short term borrowings and other interest-bearing liabilities increased $114.7 million from $330.9 million at December 31, 2025 to $445.6 million at June 30, 2026. The Company’s FHLBank term advances were $-0- at both June 30, 2026 and December 31, 2025. At June 30, 2026 and December 31, 2025, there were $445.0 million and $330.0 million, respectively, in overnight borrowings from the FHLBank, which were included in short term borrowings.
Current wording
Short-term borrowings and other interest-bearing liabilities. Short term borrowings and other interest-bearing liabilities increased $664.6 million from $330.9 million at December 31, 2025 to $995.5 million at September 30, 2026. The Company’s FHLBank term advances were $-0- at both September 30, 2026 and December 31, 2025. At September 30, 2026 and December 31, 2025, there were $995.0 million and $330.0 million, respectively, in overnight borrowings from the FHLBank, which were included in short term borrowings. The increase in overnight borrowings from the FHLBank was used to fund the purchase of approximately $400 million of agency mortgage-backed securities and collateralized mortgage obligations during the third quarter of 2026 and to replace maturing brokered deposits.
Previous wording
The current level and shape of the interest rate yield curve poses challenges for interest rate risk management. Prior to its increase of 0.25% in December 2015, the FRB had last changed interest rates in December 2008. This was the first rate increase since September 2006. The FRB also implemented rate increases of 0.25% on eight additional occasions between December 2016 and December 2018, with the Federal Funds rate reaching as high as 2.50%. After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions. At December 31, 2019, the Federal Funds rate stood at 1.75%. In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3rd and a 1.00% decrease on March 16th. At December 31, 2021, the Federal Funds rate was 0.25%. In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 0.50% in March, May, June, July, September, November and December 2022, respectively. At December 31, 2022, the Federal Funds rate was 4.50%. In 2023, the FRB implemented rate increases of 0.25%, 0.25%, 0.25% and 0.25% in February, March, May and July 2023, respectively. At December 31, 2023, the Federal Funds rate was 5.50%. In 2024, the FRB implemented rate decreases of 0.50%, 0.25% and 0.25% in September, November, and December, respectively. At December 31, 2024, the Federal Funds rate was 4.50%. In 2025, the FRB implemented rate decreases of 0.25% in each of September, October, and December 2025, respectively. At December 31, 2025, the Federal Funds rate was 3.75%. During the first six months of 2026, there were no changes to the Federal Funds rate. The Federal Funds rate remained at 3.75% at June 30, 2026. Financial markets no longer expect further decreases in Federal Funds interest rates in 2026, and now expect the Federal Funds interest rate to remain steady or to increase modestly by the end of 2026.
Current wording
The current level and shape of the interest rate yield curve poses challenges for interest rate risk management. Prior to its increase of 0.25% in December 2015, the FRB had last changed interest rates in December 2008. The FRB also implemented rate increases of 0.25% on eight additional occasions between December 2016 and December 2018, with the Federal Funds rate reaching as high as 2.50%. After December 2018, the FRB paused its rate increases and, in July, September and October 2019, implemented rate decreases of 0.25% on each of those occasions. At December 31, 2019, the Federal Funds rate stood at 1.75%. In response to the COVID-19 pandemic, the FRB decreased interest rates on two occasions in March 2020, a 0.50% decrease on March 3rd and a 1.00% decrease on March 16th. At December 31, 2021, the Federal Funds rate was 0.25%. In 2022, the FRB implemented rate increases of 0.25%, 0.50%, 0.75%, 0.75%, 0.75%, 0.75% and 0.50% in March, May, June, July, September, November and December 2022, respectively. At December 31, 2022, the Federal Funds rate was 4.50%. In 2023, the FRB implemented rate increases of 0.25%, 0.25%, 0.25% and 0.25% in February, March, May and July 2023, respectively. At December 31, 2023, the Federal Funds rate was 5.50%. In 2024, the FRB implemented rate decreases of 0.50%, 0.25% and 0.25% in September, November, and December, respectively. At December 31, 2024, the Federal Funds rate was 4.50%. In 2025, the FRB implemented rate decreases of 0.25% in each of September, October, and December 2025, respectively. At December 31, 2025, the Federal Funds rate was 3.75%. In September 2026, the FRB implemented a rate increase of 0.25%. At September 30, 2026, the Federal Funds rate was 4.00%. Financial markets expect the Federal Funds interest rate to remain steady or to increase modestly by the end of 2026, with additional rate increases currently expected in 2027.
Previous wording
Great Southern’s loan portfolio includes loans ($1.68 billion at June 30, 2026) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after June 30, 2026. Nearly all of these loans have interest rate floors at various rates. Great Southern also has a portfolio of loans ($614.3 million at June 30, 2026) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest. Nearly all of these loans had interest rate floors at various rates. At June 30, 2026, nearly all of these SOFR, and “prime rate” loans had fully-indexed rates that were at or above their floor rate and in most cases well above the floor rate.
Current wording
Great Southern’s loan portfolio includes loans ($1.69 billion at September 30, 2026) tied to various SOFR indexes that will be subject to adjustment at least once within 90 days after September 30, 2026. Nearly all of these loans have interest rate floors at various rates. Great Southern also has a portfolio of loans ($579.6 million at September 30, 2026) tied to a “prime rate” of interest that will adjust immediately or within 90 days of a change to the “prime rate” of interest. Nearly all of these loans had interest rate floors at various rates. At September 30, 2026, nearly all of these SOFR and “prime rate” loans had fully indexed rates that were at or above their floor rate and in most cases well above the floor rate.
Previous wording
As of June 30, 2026, Great Southern’s interest rate risk models indicated that, generally, rising interest rates would be expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates would be expected to have a mostly neutral impact on net interest income. Any negative impact of a falling Federal Funds rate and other market interest rates also falling could be more pronounced if we are not able to decrease non-maturity deposit rates accordingly. We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates. The results of our modeling indicate that net interest income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon.
Current wording
falling could be more pronounced if we are not able to decrease non-maturity deposit rates accordingly. We model various interest rate scenarios for rising and falling rates, including both parallel and non-parallel shifts in rates. The results of our modeling indicate that net interest income is not likely to be significantly affected either positively or negatively in the first twelve months following relatively minor changes in interest rates because our portfolios are relatively well matched in a twelve-month horizon.
Previous wording
rates. In a situation where market interest rates decrease significantly in a short period of time, as they did in March 2020, our net interest margin decrease may be more pronounced in the very near term (first one to three months), due to fairly rapid decreases in SOFR interest rates and “prime” interest rates. In the subsequent months, we would expect that net interest margin would stabilize and begin to improve, as renewal interest rates on maturing time deposits decrease.
Current wording
In a situation where market interest rates increase significantly in a short period of time, our net interest margin increase may be more pronounced in the very near term (first one to three months), due to fairly rapid increases in SOFR interest rates and “prime” interest rates. In a situation where market interest rates decrease significantly in a short period of time, as they did in March 2020, our net interest margin decrease may be more pronounced in the very near term (first one to three months), due to fairly rapid decreases in SOFR interest rates and “prime” interest rates. In the subsequent months, we would expect that net interest margin would stabilize and begin to improve, as renewal interest rates on maturing time deposits decrease.
Previous wording
Beginning in March 2022, market interest rates, including LIBOR interest rates, SOFR interest rates and “prime” interest rates, began to increase rapidly. This resulted in increasing loan yields and expansion of our net interest income and net interest margin throughout 2022 and into the first three months of 2023. In 2023, market interest rate increases moderated and loan yield increases moderated in line with market rates. However, there has been increased competition for deposits and other sources of funding since March 2023, resulting in higher costs for those funds. Deposit and other funding costs moderated some in late 2024 as the FRB cut the federal funds rate. Deposit and other funding costs further moderated in late 2025 as the FRB cut the federal funds rate three times, but competition for deposits remained significant into the first six months of 2026. For further discussion of the processes used to manage our exposure to interest rate risk, see “Item 3. Quantitative and Qualitative Disclosures About Market Risk – How We Measure the Risks to Us Associated with Interest Rate Changes.”
Current wording
Beginning in March 2022, market interest rates, including LIBOR interest rates, SOFR interest rates and “prime” interest rates, began to increase rapidly. This resulted in increasing loan yields and expansion of our net interest income and net interest margin throughout 2022 and into the first three months of 2023. In 2023, market interest rate increases moderated and loan yield increases moderated in line with market rates. However, there has been increased competition for deposits and other sources of funding since March 2023, resulting in higher costs for those funds. Deposit and other funding costs moderated some in late 2024 as the FRB cut the federal funds rate. Deposit and other funding costs further moderated in late 2025 as the FRB cut the federal funds rate three times, but competition for deposits remained significant into the first nine months of 2026. Funding costs increased in the third quarter of 2026 as market interest rates increased with expectations for higher inflation and for market interest rates to remain higher for longer. For further discussion of the processes used to manage our exposure to interest rate risk, see “Item 3. Quantitative and Qualitative Disclosures About Market Risk – How We Measure the Risks to Us Associated with Interest Rate Changes.”
Previous wording
Operating expenses consist primarily of salaries and employee benefits, occupancy-related expenses, expenses related to foreclosed assets, postage, FDIC deposit insurance, advertising and public relations, telephone, professional fees, office expenses and other general operating expenses. Details of the current period changes in non-interest income and non-interest expense are provided below, under “Results of Operations and Comparison for the Three and Six Months Ended June 30, 2026 and 2025.”
Current wording
Operating expenses consist primarily of salaries and employee benefits, occupancy-related expenses, expenses related to foreclosed assets, postage, FDIC deposit insurance, advertising and public relations, telephone, professional fees, office expenses and other general operating expenses. Details of the current period changes in non-interest income and non-interest expense are provided below, under “Results of Operations and Comparison for the Three and Nine Months Ended September 30, 2026 and 2025.”
Previous wording
The Company maintains its focus on technology initiatives and advancements with its current core provider and key partners. These investments in both foundational projects and a heightened customer experience continue to foster an organizational emphasis on innovation and forward progress.
Current wording
The Company’s focus on technology initiatives and advancements with its core provider and key partners continues. These investments in both foundational projects and a heightened customer experience drive and sustain an organizational emphasis on innovation and forward progress.
Previous wording
The banking center located at 3839 Indian Hills Dr. in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel. This reinvestment will bring a fully refreshed banking center to the Bank’s Sioux City customers, including updated and brightened interiors, updated technology, and the installation of a drive-thru Live Teller ATM offering extended banking hours for customer convenience. During the temporary closure, customers are served by six additional banking centers in the greater Sioux City area, and 15 ATM locations.
Current wording
The banking center located at 3839 Indian Hills Dr. in Sioux City, Iowa, temporarily closed July 3, 2026, for a complete remodel and is scheduled to reopen in November 2026. This investment brings a fully refreshed banking center to the Bank’s Sioux City customers, including updated and brightened interiors, updated technology, and the installation of two drive-thru Live Teller ATMs offering extended banking hours for customer convenience. During the temporary closure, customers are being served by six additional banking centers and 15 ATM locations in the greater Sioux City area.
Previous wording
In June 2026, the Company decided, as part of its regular operational reviews, to consolidate nine banking centers into other existing Great Southern locations and to eliminate a total of 66 staff positions across various Company divisions, including those at the impacted banking centers. These decisions were part of routine business maintenance as the organization evaluated products, services and workforce to align with changing market dynamics. Of the nine consolidating banking centers, one is in Arkansas, one is in Kansas, two are in Iowa and five are in Missouri (three in the Springfield metro area). Affected banking centers are scheduled to close October 1, 2026, except for the Arkansas location, which is scheduled to close September 25, 2026. All staff positions to be eliminated outside of the nine banking centers have an anticipated effective date of September 30, 2026. As a result of these decisions, some related expenses were required to be recorded in the 2026 second quarter financial statements. A list of the affected banking center locations is available on our website www.GreatSouthernBank.com.
Current wording
As of October 1, 2026, the Company completed consolidations of nine banking centers identified in a regular operational review earlier in the year. The locations were each consolidated into other nearby Great Southern locations, and a total of 66 positions were eliminated across various Company divisions, including those within the impacted banking centers. These decisions were part of routine business maintenance as the organization evaluated products, services and workforce to align with changing market dynamics. Of the nine consolidated banking centers, one was in Arkansas, one was in Kansas, two were in Iowa and five were in Missouri. The Arkansas banking center was consolidated into a nearby Missouri banking center, leaving no remaining locations in Arkansas.
Showing the first 40 of 130 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
In July 2026, the Company, through its subsidiary Great Southern Bank, entered into a naming rights agreement with CoxHealth related to a suite area within the Hulston Cancer Center in Springfield, Missouri. The terms of the agreement provide the naming rights to Great Southern Bank for a total cost of $300,000, to be paid over a period of five years. The Company amortizes the naming rights intangible assets through non-interest expense over a period not to exceed 20 years.
Current report — wording carried from elsewhere
interest rates and tighter lending underwriting standards. Single-family housing starts in September 2026 were at an annual rate of 859,000, 4.6% below the revised figure for August 2026 of 900,000.
Current report — wording carried from elsewhere
could have a material adverse effect on our business, financial condition and results of operations. See “Results of Operations and Comparison for the Three and Nine Months Ended September 30, 2026 and 2025 – Liquidity” below for further information on funding sources.
Current report — wording carried from elsewhere
As of September 30, 2026, Great Southern’s interest rate risk models indicated that, generally, rising interest rates would be expected to have a modestly positive impact on the Company’s net interest income, while declining interest rates would be expected to have a mostly neutral impact on net interest income. Any negative impact of a falling Federal Funds rate and other market interest rates also
Current report — wording carried from elsewhere
compared to the prior period. Net interest income primarily decreased $2.0 million due to the terminated interest rate swap income, which impacted interest income positively in the 2025 period but did not impact the 2026 period.
Current report — wording carried from elsewhere
Provision and Allowance for Credit Losses
Current report — wording carried from elsewhere
for the nine months ended September 30, 2025. General market conditions and unique circumstances related to specific industries and individual projects contribute to the determination of the levels of provisions and charge-offs in each period.
Current report — wording carried from elsewhere
At September 30, 2026, the commercial real estate category of foreclosed assets consisted of one foreclosed property totaling $7.0 million, which is an office building located in Clayton, Missouri and was foreclosed upon in the fourth quarter of 2024. In the nine months ended September 30, 2026, the Company capitalized $1.1 million in improvements to the property. As mentioned in previous filings, the Company reported that it expected such improvements to ultimately cost approximately $3 million and take several months to complete. It is expected that these additional costs will be incurred and capitalized on this asset during the remainder of 2026. The majority of this expenditure represents the addition of fire suppression sprinklers throughout the building and other significant improvements. Based on an independent valuation (which utilized sales and current market rents in the area for similarly improved buildings), the Company does not currently anticipate any loss on this asset and decided to move forward with implementing these improvements. At September 30, 2026, the other residential (multi-family) category, totaling $2.3 million, consisted of one
Current report — wording carried from elsewhere
In October 2026, the Company’s Board of Directors approved a new stock repurchase program, which will succeed the existing repurchase program following the repurchase of the existing program’s remaining available shares. The new stock repurchase program authorizes the purchase, from time to time, of up to one million additional shares of the Company’s common stock. This program does not have an expiration date.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
In a situation where market interest rates increase significantly in a short period of time, our net interest margin increase may be more pronounced in the very near term (first one to three months), due to fairly rapid increases in SOFR interest rates and “prime” interest
Previous report — wording carried elsewhere
exceeds the floating rate of interest, the Company receives net interest settlements, which are recorded as loan interest income. If the floating rate of interest exceeds the fixed rate of interest, the Company pays net settlements to the counterparty and records those net payments as a reduction of interest income on loans. The Company recorded a reduction of loan interest income related to these swap transactions of $1.0 million and $1.8 million in the three months ended June 30, 2026 and 2025, respectively. The Company recorded a reduction of loan interest income related to these swap transactions of $2.1 million and $3.5 million in the six months ended June 30, 2026 and 2025, respectively. At June 30, 2026, the USD-Prime rate was 6.75% and the one-month USD-SOFR OIS rate was 3.63179%.
Previous report — wording carried elsewhere
fully redeemed in June 2025. Partially offsetting these decreases, interest expense on short-term borrowings increased $258,000, or 3.1%.
Previous report — wording carried elsewhere
rate debentures, as stated above. There was no change in the average balance of the subordinated debentures between the 2025 and 2026 six-month periods.
Previous report — wording carried elsewhere
Commissions: Commissions income increased $583,000, or 86.6%, from the prior-year period. The increase was due to annuity sales that were higher in the 2026 period compared to the 2025 period.
Previous report — wording carried elsewhere
In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets. Management believes that the presentation of this measure excluding the impact of intangible assets provides