Great Southern Bancorp Reports $17.2 Million Net Income, 28% Increase in Q1 2025

Great Southern Bancorp, Inc. reported a net income of $17.2 million for the first quarter of 2025, reflecting a 28% increase from $13.4 million in the same period last year. This growth was primarily driven by a $4.5 million rise in net interest income, which reached $49.3 million, alongside a significant reduction in provisions for credit losses. Total interest income increased by 3.7% to $80.2 million, attributed to higher average loan balances and interest rates. The company's net interest margin improved to 3.57%, up from 3.32% a year earlier, indicating enhanced profitability from its lending activities.

In terms of operational changes, Great Southern experienced a slight increase in total assets, which rose by $12.2 million to $5.99 billion as of March 31, 2025. The bank's loan portfolio remained stable, with net loans totaling $4.69 billion, a marginal increase from the previous quarter. Notably, the bank saw growth in other residential (multi-family) and construction loans, while commercial real estate loans decreased due to large payoffs. The company also reported a 3.3% increase in total deposits, amounting to $4.76 billion, driven by a rise in transaction accounts and brokered deposits.

The bank's strategic initiatives included the installation of ten Interactive Teller Machines (ITMs) in the St. Louis market, enhancing customer service capabilities. Additionally, construction began on a new banking center in Springfield, Missouri, aimed at modernizing the customer experience. The company also announced plans to redeem $75 million in subordinated notes on June 15, 2025, utilizing excess cash for the payment, which is expected to reduce future interest expenses.

Great Southern's credit quality indicators remained stable, with non-performing assets slightly decreasing to $9.5 million, representing 0.16% of total assets. The allowance for credit losses was maintained at 1.36% of total loans, reflecting management's confidence in the quality of the loan portfolio. The company did not record any provision for credit losses during the quarter, contrasting with a $500,000 provision in the same period last year, indicating improved credit conditions.

Looking ahead, Great Southern anticipates continued growth in its loan portfolio, particularly in multi-family and construction loans, while remaining vigilant about credit quality amid fluctuating economic conditions. The company is focused on maintaining its capital ratios well above regulatory requirements, with a common equity Tier 1 capital ratio of 12.4% as of March 31, 2025. Management remains optimistic about leveraging its operational strategies and market position to enhance profitability in the coming quarters.