UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934

For the Quarterly Period Ended June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 0-18082

GREAT SOUTHERN BANCORP, INC.

(Exact name of registrant as specified in its charter)

Maryland		43-1524856
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1451 E. Battlefield, Springfield, Missouri		65804
(Address of principal executive offices)		(Zip Code)

(417) 887-4400
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock,
par value $0.01 per share	GSBC	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data file required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of each of the registrant’s classes of common stock: 13,582,456 shares of common stock, par value $.01 per share, outstanding at August 3, 2021.

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands, except number of shares)


	JUNE 30,		DECEMBER 31,
	2021		2020

	(Unaudited)

ASSETS
Cash	$	98,869	$	92,403
Interest-bearing deposits in other financial institutions		582,935		471,326
Cash and cash equivalents		681,804		563,729
Available-for-sale securities		450,840		414,933
Mortgage loans held for sale		18,870		17,780
Loans receivable, net of allowance for credit losses of $66,602 – June 2021; net of allowance for loan losses of $55,743 – December 2020		4,214,267		4,296,804
Interest receivable		11,966		12,793
Prepaid expenses and other assets		42,327		58,889
Other real estate owned and repossessions, net		1,033		1,877
Premises and equipment, net		136,246		139,170
Goodwill and other intangible assets		6,397		6,944
Federal Home Loan Bank stock and other interest-earning assets		6,755		9,806
Current and deferred income taxes		7,077		3,695
Total Assets	$	5,577,582	$	5,526,420

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits	$	4,566,353	$	4,516,903
Securities sold under reverse repurchase agreements with customers		158,367		164,174
Short-term borrowings and other interest-bearing liabilities		1,183		1,518
Subordinated debentures issued to capital trust		25,774		25,774
Subordinated notes		148,763		148,397
Accrued interest payable		2,256		2,594
Advances from borrowers for taxes and insurance		8,728		7,536
Accrued expenses and other liabilities		28,892		29,783
Liability for unfunded commitments		7,709		—
Total Liabilities		4,948,025		4,896,679

Stockholders’ Equity:
Capital stock
Serial preferred stock - $.01 par value; authorized 1,000,000 shares; issued and outstanding June 2021 and December 2020 - - 0- shares		—		—
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding June 2021 –13,659,357 shares; December 2020 – 13,752,605 shares		137		138
Additional paid-in capital		36,880		35,004
Retained earnings		550,301		541,448
Accumulated other comprehensive income		42,239		53,151
Total Stockholders’ Equity		629,557		629,741
Total Liabilities and Stockholders’ Equity	$	5,577,582	$	5,526,420

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


	THREE MONTHS ENDED
	JUNE 30,
	2021		2020

	(Unaudited)
INTEREST INCOME
Loans	$	47,360	$	50,848
Investment securities and other		3,092		3,163
TOTAL INTEREST INCOME		50,452		54,011

INTEREST EXPENSE
Deposits		3,457		9,041
Short-term borrowings and repurchase agreements		10		10
Subordinated debentures issued to capital trust		113		167
Subordinated notes		2,188		1,338
TOTAL INTEREST EXPENSE		5,768		10,556

NET INTEREST INCOME		44,684		43,455
PROVISION (CREDIT) FOR CREDIT LOSSES ON LOANS		(1,000)		6,000
PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		(307)		—
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		45,991		37,455

NON-INTEREST INCOME
Commissions		370		176
Overdraft and Insufficient funds fees		1,528		1,136
Point-Of-Sale and ATM fee income and service charges		3,971		3,004
Net gains on loan sales		2,613		1,841
Late charges and fees on loans		358		468
Gain (loss) on derivative interest rate products		(179)		(106)
Net realized gains on sales of available-for-sale securities		—		78
Other income		924		1,664
TOTAL NON-INTEREST INCOME		9,585		8,261

NON-INTEREST EXPENSE
Salaries and employee benefits		17,934		16,830
Net occupancy and equipment expense		6,706		6,707
Postage		750		777
Insurance		759		534
Advertising		605		437
Office supplies and printing		161		301
Telephone		868		1,005
Legal, audit and other professional fees		531		664
Expense on other real estate and repossessions		102		268
Acquired deposit intangible asset amortization		258		289
Other operating expenses		1,517		1,537
TOTAL NON-INTEREST EXPENSE		30,191		29,349

INCOME BEFORE INCOME TAXES		25,385		16,367
PROVISION FOR INCOME TAXES		5,271		3,164
NET INCOME AND NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	20,114	$	13,203
Basic Earnings Per Common Share	$	1.47	$	0.94
Diluted Earnings Per Common Share	$	1.46	$	0.93
Dividends Declared Per Common Share	$	0.34	$	0.34

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)


	SIX MONTHS ENDED
	JUNE 30,
	2021		2020

	(Unaudited)

INTEREST INCOME
Loans	$	95,069	$	104,978
Investment securities and other		6,016		6,507
TOTAL INTEREST INCOME		101,085		111,485

INTEREST EXPENSE
Deposits		7,679		19,618
Short-term borrowings and repurchase agreements		19		659
Subordinated debentures issued to capital trust		226		383
Subordinated notes		4,388		2,432
TOTAL INTEREST EXPENSE		12,312		23,092

NET INTEREST INCOME		88,773		88,393
PROVISION (CREDIT) FOR CREDIT LOSSES ON LOANS		(700)		9,871
PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		(981)		—
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR CREDIT LOSSES AND PROVISION (CREDIT) FOR UNFUNDED COMMITMENTS		90,454		78,522

NON-INTEREST INCOME
Commissions		652		442
Overdraft and Insufficient funds fees		2,972		3,077
Point-Of-Sale and ATM fee income and service charges		7,329		5,821
Net gains on loan sales		5,301		2,430
Late charges and fees on loans		659		824
Gain (loss) on derivative interest rate products		295		(514)
Net realized gains on sales of available-for-sale securities		—		78
Other income		2,113		3,469
TOTAL NON-INTEREST INCOME		19,321		15,627

NON-INTEREST EXPENSE
Salaries and employee benefits		35,054		34,999
Net occupancy and equipment expense		13,768		13,473
Postage		1,628		1,546
Insurance		1,519		916
Advertising		1,190		1,057
Office supplies and printing		438		535
Telephone		1,749		1,917
Legal, audit and other professional fees		1,178		1,262
Expense on other real estate and repossessions		370		747
Acquired deposit intangible asset amortization		547		577
Other operating expenses		3,071		3,134
TOTAL NON-INTEREST EXPENSE		60,512		60,163

INCOME BEFORE INCOME TAXES		49,263		33,986
PROVISION FOR INCOME TAXES		10,281		5,915
NET INCOME AND NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	38,982	$	28,071
Basic Earnings Per Common Share	$	2.84	$	1.98
Diluted Earnings Per Common Share	$	2.82	$	1.98
Dividends Declared Per Common Share	$	0.68	$	1.68

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands, except per share data)


	THREE MONTHS ENDED
	JUNE 30,
	2021		2020

	(Unaudited)
Net Income	$	20,114	$	13,203

Unrealized appreciation on available-for-sale securities, net of taxes of $1,806 and $1,602, for 2021 and 2020, respectively		6,113		5,424

Reclassification adjustment for gains included in net income, net of taxes of $0 and $18, for 2021 and 2020, respectively		—		(60)

Amortization of realized gain on termination of cash flow hedge, net of taxes (credit) of $(461) and $(461), for 2021 and 2020, respectively		(1,564)		(1,564)

Comprehensive Income	$	24,663	$	17,003


	SIX MONTHS ENDED
	JUNE 30,
	2021		2020

	(Unaudited)
Net Income	$	38,982	$	28,071

Unrealized appreciation (depreciation) on available-for-sale securities, net of taxes (credit) of $(2,303) and $5,013, for 2021 and 2020, respectively		(7,802)		16,973

Reclassification adjustment for gains included in net income, net of taxes of $0 and $18, for 2021 and 2020, respectively		—		(60)

Change in fair value of cash flow hedge, net of taxes of $0 and $3,519, for 2021 and 2020, respectively		—		11,914

Amortization of realized gain on termination of cash flow hedge, net of taxes (credit) of $(918) and $(608), for 2021 and 2020, respectively		(3,110)		(2,062)

Comprehensive Income	$	28,070	$	54,836

See Notes to Consolidated Financial Statements

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except per share data)


	THREE MONTHS ENDED JUNE 30, 2020
							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Paid-in Capital		Earnings		Income (Loss)		Stock		Total

	(Unaudited)
Balance, March 31, 2020	$	141	$	33,958	$	524,922	$	55,211	$	—	$	614,232
Net income		—		—		13,203		—		—		13,203
Stock issued under Stock Option Plan		—		272		—		—		10		282
Common dividends declared, $0.34 per share		—		—		(4,789)		—		—		(4,789)
Other comprehensive gain		—		—		—		3,800		—		3,800
Reclassification of treasury stock per Maryland law		—		—		10		—		(10)		—
Balance, June 30, 2020	$	141	$	34,230	$	533,346	$	59,011	$	—	$	626,728


	THREE MONTHS ENDED JUNE 30, 2021
							Accumulated
							Other
	Common		Additional		Retained		Comprehensive		Treasury
	Stock		Paid-in Capital		Earnings		Income (Loss)		Stock		Total

	(Unaudited)
Balance, March 31, 2021	$	137	$	35,661	$	537,969	$	37,690	$	—	$	611,457
Net income		—		—		20,114		—		—		20,114
Stock issued under Stock Option Plan		—		1,219		—		—		554		1,773
Common dividends declared, $0.34 per share		—		—		(4,656)		—		—		(4,656)
Other comprehensive gain		—		—		—		4,549		—		4,549
Purchase of the Company’s common stock		—