Breaking Down Great Southern Bancorp, Inc. (GSBC) Financial Health: Key Insights for Investors

You've seen Great Southern Bancorp, Inc. (GSBC) consistently beat expectations this year, but you're still wondering if the regional bank story holds up as the economy slows. Honestly, the third quarter 2025 numbers are a defintely strong signal: GSBC reported net income of $17.8 million, a healthy 7.7% increase from the prior year, with diluted earnings per share (EPS) hitting $1.56. Their net interest margin (NIM)-which is the core measure of bank profitability-expanded robustly to 3.72%. That's a good number. However, the balance sheet tells a more nuanced story; total assets have actually contracted to $5.74 billion as of Q3 2025, suggesting a tighter lending environment or a deliberate de-risking strategy. We need to map that contraction against their stellar asset quality, where non-performing assets are a tiny 0.14% of total assets. This deep dive isn't about the headline beat; it's about understanding the trade-off between margin expansion and loan growth, and what that means for your investment decisions in 2026.

Revenue Analysis

You need a clear picture of where Great Southern Bancorp, Inc. (GSBC)'s money is coming from, and the takeaway is simple: their revenue engine, Net Interest Income (NII), is strong but faces a near-term headwind that you need to factor into your Q4 projections.

For the first nine months of the 2025 fiscal year, Great Southern Bancorp, Inc. generated approximately $173.12 million in total revenue. This total is overwhelmingly dominated by Net Interest Income, which is the profit from lending money versus the cost of funding it (like deposit interest). This is a bank's core business, and it's been performing well, but the growth rate is slowing.

Breakdown of Primary Revenue Sources

The company's revenue streams are split into two main categories: Net Interest Income (NII) and Non-Interest Income. NII is the primary driver, reflecting the health of their loan portfolio and deposit funding strategy. Non-Interest Income, while smaller, provides diversification and includes fees and other gains.

• Net Interest Income (NII): This is the profit from loans and securities minus the interest paid on deposits and borrowings. It contributed roughly 87.3% of the total revenue through Q3 2025.
• Non-Interest Income: This includes service charges, loan fees, and gains on sales. It accounted for the remaining 12.7%, totaling about $21.9 million for the first nine months of 2025.

Here's the quick math on the quarterly contribution, showing how reliant the bank is on its core lending and funding spread.

Year-over-Year Revenue Growth and Trends

The growth story for Great Southern Bancorp, Inc. is one of strong but decelerating Net Interest Income growth, which is a common trend in the current rate environment. The trailing twelve months (TTM) revenue ending Q3 2025 was $225.98 million, representing a solid 6.58% year-over-year growth.

Still, the quarterly NII growth rate has been trending down, which is a key signal. Q1 2025 NII was up about 10.1% year-over-year, but this slowed to 8.9% in Q2 2025, and further to 5.8% by Q3 2025. That's a clear deceleration. You need to look at the Breaking Down Great Southern Bancorp, Inc. (GSBC) Financial Health: Key Insights for Investors blog post for the full picture.

Analysis of Significant Revenue Changes

The biggest change you need to watch is the expiration of a significant non-core revenue source. The company has been receiving an approximate $2.0 million quarterly benefit from a terminated interest rate swap, which is recorded as interest income. This benefit ends after Q3 2025, meaning it will create a foreseeable headwind to NII in the fourth quarter and beyond. That's a clean $2 million drop you need to model for Q4, absent any offsets.

Also, Non-Interest Income is volatile. For example, the Q2 2025 Non-Interest Income of $8.2 million included a nonrecurring $1.1 million tax credit partnership gain, so don't expect that level to be sustainable. Plus, loan growth has been muted in 2025 due to a competitive lending environment, which also tempers near-term NII expectations. The company's focus on managing funding costs, which has expanded the net interest margin (NIM) to 3.72% in Q3 2025, is defintely the core of their strategy to mitigate these pressures.

Profitability Metrics

You're looking for a clear picture of Great Southern Bancorp, Inc. (GSBC)'s earning power, and the 2025 data shows a bank successfully navigating a high-rate environment by aggressively managing its funding costs. The core takeaway is that GSBC's Net Interest Margin (NIM) is trending upward and consistently outperforms the community bank average, which is a defintely strong signal of core profitability.

For a bank, we focus on Net Interest Margin (NIM) and the Efficiency Ratio instead of traditional gross or operating profit margins. NIM, the spread between interest earned on loans and paid on deposits, is the engine. GSBC's NIM has shown a clear upward trend throughout 2025, moving from 3.57% in Q1 2025 to 3.72% in Q3 2025. [cite: 1, 3, 5, 6, 7 in step 1, 1, 3, 5 in step 2] This is a critical edge, as the average NIM for U.S. community banks stood at 3.46% in Q1 2025 and 3.62% in Q2 2025. [cite: 7, 8 in step 2] Your bank is making more money on its lending activities than its peers.

The Net Profit Margin (Net Income / Total Revenue) gives you the final, all-in profitability. GSBC posted a Q2 2025 Net Profit Margin of roughly 38.82%, with Q1 and Q3 margins settling closer to 30.7%. [cite: 2 in step 1, 1, 3, 5 in step 2] This volatility is normal, but the Q2 spike was driven by a robust net income of $19.8 million on reported total revenue of $51.0 million. [cite: 2 in step 1] The bank's Q3 2025 Net Income was $17.8 million, a 7.7% increase from the prior year. [cite: 1, 2, 3, 4, 5 in step 2]

Here's the quick math on the key quarterly profitability metrics for 2025:

The trend in operational efficiency is particularly telling. The Efficiency Ratio measures non-interest expense as a percentage of net revenue; lower is better. GSBC successfully drove this ratio down to 59.16% in Q2 2025 from 62.27% in Q1 2025, which is a significant operational improvement. [cite: 1, 2, 3 in step 1] A ratio in the low 60s or high 50s is generally considered a good benchmark for community banks. While the Q3 ratio rose slightly to about 62.35%, the overall trend from 2024 into 2025 shows a disciplined focus on cost management, with non-interest expenses dropping due to reduced legal and professional fees. [cite: 1 in step 1]

What this estimate hides is the source of the margin expansion: it's largely due to effective asset-liability management, specifically lowering the cost on deposit accounts and other borrowings. [cite: 1, 3 in step 2] This strategic focus is what is allowing GSBC to maintain a Return on Average Assets (ROAA) of 1.23% in Q3 2025, which is a strong indicator of overall profitability and efficiency. [cite: 5 in step 2] For more detail on their long-term strategy, you can review their Mission Statement, Vision, & Core Values of Great Southern Bancorp, Inc. (GSBC).

• Focus on NIM: GSBC's 3.72% NIM in Q3 2025 beats the Q2 community bank average of 3.62%. [cite: 8 in step 2, 1, 3, 5 in step 2]
• Efficiency: The Q2 2025 ratio of 59.16% shows a highly efficient operation. [cite: 1, 2 in step 1]
• Net Profit: The Q2 2025 Net Profit Margin of 38.82% demonstrates strong bottom-line conversion.

Debt vs. Equity Structure

The core of Great Southern Bancorp, Inc. (GSBC)'s financing strategy is a prudent mix of deposits (which are liabilities, or debt, for a bank) and shareholder equity, but when looking at traditional debt instruments, the company leans toward a conservative, well-capitalized position. Your key takeaway is that Great Southern Bancorp's leverage is higher than the regional bank average, but its capital ratios remain exceptionally strong, suggesting a calculated use of debt to drive returns.

As of the third quarter of 2025, Great Southern Bancorp reported total stockholders' equity of $632.9 million. This robust equity base is what underpins the bank's operations. The balance sheet shows total assets of approximately $5.74 billion at the end of Q3 2025, meaning a significant portion of assets is funded by liabilities, primarily deposits, which is typical for a bank.

Debt-to-Equity: The Leverage Picture

Great Southern Bancorp's debt-to-equity (D/E) ratio stood at approximately 0.78 for the trailing twelve months (TTM) ending Q3 2025. This ratio measures how much debt the company uses to finance its assets relative to the value of shareholders' equity. For a regional bank, the industry average D/E ratio is closer to 0.5 as of November 2025.

Here's the quick math: A D/E of 0.78 means Great Southern Bancorp has 78 cents of debt for every dollar of equity. While this is above the regional bank average of 0.5, it is still well within the healthy range. For context, a D/E ratio of 1.5 or lower is generally considered desirable for most companies, and banks naturally operate with higher leverage due to the nature of their business.

The company's reliance on debt financing (beyond customer deposits) is balanced by substantial liquidity and capital reserves. This is a deliberate strategy to maximize return on equity (ROE) without compromising regulatory capital requirements.

• D/E Ratio (TTM Q3 2025): 0.78
• Regional Bank Average D/E: 0.5
• Total Stockholders' Equity (Q3 2025): $632.9 million

Recent Debt and Credit Activity

In mid-2025, there was a notable, though not necessarily negative, development regarding the company's external credit profile. On June 13, 2025, KBRA (Kroll Bond Rating Agency) withdrew its credit ratings for Great Southern Bancorp, Inc. and its subsidiary, Great Southern Bank, at the request of the issuer. The withdrawn ratings included a senior unsecured debt rating of BBB and a short-term debt rating of K3. This action doesn't indicate a downgrade, but simply a decision by the company to no longer pay for the rating service. It's a cost-saving move, but it does remove an independent third-party assessment from the public domain.

The bank's liquidity position remains strong, which is a key counterpoint to its debt usage. As of March 31, 2025, the company had significant secured borrowing line availability, including $1.17 billion at the Federal Home Loan Bank (FHLBank) and $370.5 million at the Federal Reserve Bank. Plus, there was an additional $337.4 million in unpledged securities that could be used for extra borrowing capacity. That is a lot of dry powder. For a deeper dive into who holds this equity, you should check out Exploring Great Southern Bancorp, Inc. (GSBC) Investor Profile: Who's Buying and Why?

The bank's capital position is defintely healthy, with its Tier 1 Leverage Ratio at 11.3% and Common Equity Tier 1 Capital Ratio at 12.4% as of March 31, 2025, both well above regulatory minimums. This strong equity base and ample liquidity are what allow the bank to operate with a slightly higher D/E ratio, balancing debt and equity to optimize its capital structure for growth.

Liquidity and Solvency

You want to know if Great Southern Bancorp, Inc. (GSBC) has the cash to cover its near-term obligations and weather a market shock. The short answer is yes, their liquidity position is strong, backed by substantial off-balance sheet capacity, but the cash flow story shows a deliberate shift in asset mix. Their current and quick ratios, while high, are less telling than their total available funding.

For a bank like Great Southern Bancorp, Inc., the traditional current ratio (current assets / current liabilities) and quick ratio are sky-high and not the best measure of financial health. Liquidity is about funding stability and access to capital. The Trailing Twelve Months (TTM) data ending September 30, 2025, shows a Current Ratio of 2.35 and a Quick Ratio of 2.35. This simply means their most liquid assets far exceed their short-term debts. The real strength is in their contingency funding.

At September 30, 2025, the company reported $196.2 million in cash and cash equivalents on the balance sheet. More importantly, they have secured borrowing lines through the Federal Home Loan Bank (FHLBank) and the Federal Reserve Bank totaling $1.47 billion. That's a huge buffer. Plus, the tangible common equity (TCE) to tangible assets ratio stood at a healthy 10.5% as of June 30, 2025. That's a solid capital cushion.

Working Capital and Cash Flow Trends

The working capital trend for Great Southern Bancorp, Inc. is better analyzed through the movement of deposits and loans, which are the lifeblood of a bank. The company has seen a modest decrease in total assets to $5.74 billion at Q3 2025, down from $5.98 billion at the end of 2024, reflecting a cautious approach to loan growth in a competitive environment. Total deposits also decreased by $77.5 million, or 1.7%, over the first nine months of 2025. This deposit decrease is a trend to defintely watch, but it's being managed.

The cash flow statement for the TTM ending September 30, 2025, paints a clear picture of the company's strategic focus:

The large positive Investing Cash Flow of $255.7 million is the key takeaway. It shows the bank is generating cash internally by letting loans and investments run off faster than it's originating new ones, which is a classic defensive, liquidity-building move in an uncertain rate environment. This cash is then being used for Financing activities, including returning capital to shareholders and paying down debt.

Potential Liquidity Concerns and Strengths

The biggest near-term liquidity concern is the loss of a non-recurring income stream. The company will lose the benefit of a terminated interest rate swap, which provided approximately $2.0 million in interest income per quarter through Q3 2025. That's a headwind for Q4 earnings that will need to be offset by continued margin management. Still, the overall liquidity position is a clear strength, supported by:

• Total secured borrowing capacity of $1.47 billion.
• A high Tangible Common Equity ratio of 10.5%.
• A strategic shift to positive investing cash flow, building up balance sheet resilience.

The bank is prioritizing liquidity and capital strength over aggressive loan growth right now. This is a smart, risk-off strategy. For a deeper dive into the bank's overall performance, check out the full post: Breaking Down Great Southern Bancorp, Inc. (GSBC) Financial Health: Key Insights for Investors.

Your next step is to model how the loss of that swap income impacts the Q4 net interest margin forecast.

Valuation Analysis

You are looking at Great Southern Bancorp, Inc. (GSBC) to see if the market has it right, and the short answer is that the stock appears to be fairly valued to slightly undervalued based on traditional banking metrics as of November 2025. The consensus is a cautious 'Hold,' but the core valuation ratios tell a compelling story about its recent profitability.

GSBC's current valuation multiples suggest a conservative price point relative to its earnings and book value. This is a common pattern for regional banks in a high-interest-rate environment where market sentiment remains cautious despite solid operational performance. The stock is not cheap, but it's defintely not overpriced either.

Is Great Southern Bancorp, Inc. (GSBC) Overvalued or Undervalued?

To determine if Great Southern Bancorp, Inc. is overvalued, we look at three key ratios. As a bank holding company, we prioritize Price-to-Earnings (P/E) and Price-to-Book (P/B) over the Enterprise Value-to-EBITDA (EV/EBITDA), which is generally not applicable (n/a) for financial institutions.

The trailing Price-to-Earnings (P/E) ratio for Great Southern Bancorp, Inc. is approximately 9.67 as of November 11, 2025, which is lower than its 12-month average of 10.65. This lower P/E suggests the stock is trading at a discount compared to its recent historical valuation. For a regional bank, a P/E under 10.0x often signals a potentially undervalued security or at least one that is priced for modest growth.

Here's the quick math on the Price-to-Book (P/B) ratio: with a closing price of $57.29 (November 19, 2025) and a book value per common share of $53.03 (as of March 31, 2025), the P/B ratio comes out to roughly 1.08x. Trading at just over book value suggests the market is willing to pay a small premium for the company's assets and profitability, but it's far from the high P/B ratios of growth-oriented stocks.

• Price-to-Earnings (P/E): 9.67x
• Price-to-Book (P/B): 1.08x (Calculated from $57.29 price / $53.03 book value)
• Enterprise Value-to-EBITDA (EV/EBITDA): Not Applicable (N/A)

Stock Price Trajectory and Analyst Sentiment

The stock price trend over the last 12 months reflects the volatility and uncertainty in the banking sector. Great Southern Bancorp, Inc. traded between a 52-week high of $66.98 (December 12, 2024) and a 52-week low of $47.57 (April 04, 2025). The current price of $57.29 (November 19, 2025) sits almost exactly in the middle of this range, indicating a period of consolidation after a sharp decline and recovery.

Wall Street analysts are mostly on the sidelines. The consensus rating for Great Southern Bancorp, Inc. is a collective Hold or 'Market Perform'. The average 12-month price target is approximately $59.50, with a high target of $61.00. This target suggests a modest upside of about 3.86% from the current price of $57.29, reinforcing the 'fairly valued' assessment.

Dividend Stability and Shareholder Return

For income-focused investors, Great Southern Bancorp, Inc. offers a stable and sustainable dividend. The annual dividend is $1.72 per share, translating to a dividend yield of approximately 3.00%.

The dividend payout ratio-the percentage of earnings paid out as dividends-is a healthy 28.57% based on trailing earnings. This low payout ratio is crucial for a bank, as it means the company retains a significant portion of its earnings for capital requirements and future growth, making the dividend highly sustainable, even if earnings face a near-term dip. You want to see that ratio below 75% for a bank, so this is well within the safety zone. For more on the company's overall financial health, check out Breaking Down Great Southern Bancorp, Inc. (GSBC) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Great Southern Bancorp, Inc. (GSBC) and seeing solid earnings, but my job is to map the near-term risks that could trip up that performance. Honestly, while the bank's asset quality is pristine-non-performing assets were just $7.8 million, or 0.14% of total assets, in Q3 2025-the real risks are financial and strategic, tied directly to the current interest rate and lending environment. The core challenge is a classic one: margin pressure and finding quality loan growth.

Here's the quick math on the biggest near-term financial risk: the Net Interest Margin (NIM). GSBC's NIM expanded nicely to 3.72% in the third quarter of 2025, but management has signaled a clear headwind. The bank is set to lose the benefit of a terminated interest rate swap after the third quarter of 2025. This swap termination will reduce interest income, putting downward pressure on that hard-won margin in the final quarter of the year. This is a known, quantifiable risk you need to factor into your Q4 projections.

Operational and External Risks: Where the Market Bites

The external market conditions present two major strategic risks: loan demand and interest rate volatility. First, the competitive lending environment is keeping loan demand muted, which is why Gross Loans declined by $157 million, or 3.3%, from the start of 2025 through Q2. The CEO noted there's 'not a lot of loans to start with,' so growth will be a grind.

Second, as a regional bank, Great Southern Bancorp, Inc. has a significant exposure to commercial real estate (CRE), which is a key industry focus for regulators. At the end of Q2 2025, the bank's largest loan categories were multifamily ($1.58 billion) and commercial real estate ($1.49 billion). This concentration exposes the bank to the risk of 'fluctuations in real estate values and both residential and commercial real estate market conditions,' as noted in their filings.

Also, don't forget the securities portfolio. The bank had unrealized losses on its held-to-maturity (HTM) investment securities totaling $20.6 million as of March 31, 2025. While these losses don't directly hit regulatory capital, they represent a potential capital strain if the bank were forced to sell the securities for liquidity.

• NIM Headwind: Loss of interest rate swap benefit post-Q3 2025.
• CRE Concentration: Exposure to $1.49 billion in Commercial Real Estate loans.
• Liquidity Strain: Unrealized HTM losses of $20.6 million as of Q1 2025.

Mitigation Strategies and Capital Buffers

To be fair, Great Southern Bancorp, Inc. is managing these risks from a position of strength, which is the key takeaway here. Their mitigation is built on conservative underwriting and a deep capital buffer. The bank's credit quality is excellent, with 100% of its Office and Retail CRE portfolios being 'Pass Rated,' and weighted average Loan-to-Value (LTV) ratios ranging from 44% to 67%. They are not chasing risky loans.

The bank's capital ratios are defintely robust, significantly exceeding regulatory minimums. As of March 31, 2025, the Common Equity Tier 1 Capital Ratio stood at 12.4% and the Total Capital Ratio was 15.6%. Plus, liquidity is strong, with secured borrowing line availability totaling over $1.5 billion, split between the FHLBank ($1.17 billion) and the Federal Reserve Bank ($370.5 million). Their conservative credit posture means the Allowance for Credit Losses (ACL) to total loans was a consistent 1.36% in Q1 2025, which management deems adequate.

If you want to dive deeper into the institutional movements around this stock, you can check out Exploring Great Southern Bancorp, Inc. (GSBC) Investor Profile: Who's Buying and Why?

Growth Opportunities

You're looking at Great Southern Bancorp, Inc. (GSBC) and wondering where the growth comes from next, especially in a competitive regional banking environment. Honestly, the near-term opportunity isn't about massive acquisitions; it's a story of disciplined execution and margin expansion, which is a powerful driver of earnings per share (EPS).

The company's core strategy is to leverage its robust balance sheet and superior asset quality to drive organic growth. In the third quarter of 2025 alone, Great Southern Bancorp, Inc. reported net interest income of $50.8 million, an increase of 5.8% year-over-year, which shows their balance sheet management is working. That's real money, not just a forecast.

Key Growth Drivers and Earnings Trajectory

The primary engine for future growth is the continued improvement in the net interest margin (NIM), which hit 3.72% in Q3 2025, up from 3.42% a year prior. This is a direct result of effective asset-liability management (ALM) and a lower cost of funds, which is defintely a strategic advantage in a shifting rate environment. Plus, their focus on disciplined cost control is keeping the efficiency ratio manageable, even with strategic investments.

Here's the quick math on earnings: The consensus full-year 2025 EPS estimate is around $6.30, a notable increase of 14.2% from the prior year's $5.50. This projection is underpinned by strong quarterly performance, including a Q3 2025 EPS of $1.56 on revenue of $57.84 million, both of which surpassed analyst expectations. The growth is coming from the bottom line, which is what matters most to shareholders.

• Improve NIM by managing deposit costs.
• Maintain tight control over non-interest expenses.
• Capitalize on strong credit quality for lending.

Strategic Focus and Competitive Edge

Great Southern Bancorp, Inc. is not sitting still; they are strategically targeting higher-growth metropolitan markets outside their core Missouri footprint. Management has specifically called out opportunities for loan growth in key areas like Texas, Atlanta, St. Louis, and Kansas City. This geographic diversification is a smart move to offset competitive pressures in their established markets.

The company's competitive advantage is rooted in its financial strength and conservative credit posture. This is a regional bank that operates with a fortress-like balance sheet, giving it a clear edge over smaller, more thinly capitalized peers. What this estimate hides, however, is the challenge of subdued loan demand in some segments, meaning they must execute flawlessly on their market expansion plans to hit their targets.

You can see the strength in their capital and asset quality ratios:

In addition to organic growth, the company is actively returning capital to shareholders. They announced a new stock repurchase authorization of 1 million shares in Q3 2025, signaling management's confidence that the stock is undervalued relative to its intrinsic value. This is a tangible action that directly boosts EPS. To be fair, the stock still dropped post-earnings due to broader market sentiment, so it's not a risk-free play.

For more detail on who is investing in the company and why, you should check out Exploring Great Southern Bancorp, Inc. (GSBC) Investor Profile: Who's Buying and Why?