The core earnings miss (GAAP) and elevated one-time charges create near-term headwinds, but the non-GAAP beat vs consensus and expanding NIM provide a floor. Watch for Q3/Q4 2026 execution on branch consolidation savings and loan prepayment trends. The active buyback ($68.39 avg) signals management's view of intrinsic value. Monitor the $1.8M multi-family foreclosure and $909K charge-off for credit quality signals.
Price Chart
Executive Summary
Great Southern Bancorp reported Q2 2026 EPS of $1.43 (GAAP) / $1.57 (non-GAAP, excluding $2.1M in one-time branch consolidation and severance costs), compared to $1.72 in Q2 2025. Net income fell 20.2% YoY to $15.8M, driven by the absence of terminated swap interest income and the one-time charges. Net interest margin expanded 8bp to 3.76%, but net interest income declined 2.9% to $49.5M. The company guided to $2.3-$2.7M in annual pre-tax savings from branch consolidations beginning Q4 2026.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $1.43 vs $1.72 in Q2 2025 (-16.9% YoY); non-GAAP EPS of $1.57 vs consensus $1.40 (+12.1% beat)
- Net income of $15.8M vs $19.8M in Q2 2025 (-20.2% YoY); non-GAAP net income of $17.4M
- Net interest income of $49.5M vs $51.0M in Q2 2025 (-2.9% YoY), impacted by the end of terminated swap income ($2.0M quarterly benefit in 2025)
- Net interest margin improved to 3.76% from 3.68% in Q2 2025 and 3.71% in Q1 2026
- Non-interest expense surged to $38.2M from $35.0M in Q2 2025 (+9.2%), including $2.1M in one-time consolidation and severance costs
- Efficiency ratio deteriorated to 67.21% from 59.16% in Q2 2025; non-GAAP efficiency ratio was 63.47%
- Total net loans decreased $49.1M (1.1%) from Dec 2025 to $4.31B, with elevated prepayments in Q2
- Non-performing assets of $9.4M (0.17% of total assets), up from $8.1M (0.15%) at Dec 2025
- Net charge-offs of $819,000 in Q2 2026 vs net recoveries of $111,000 in Q2 2025
- Company repurchased 114,624 shares at avg $68.39 in Q2 2026; quarterly dividend maintained at $0.43/share
- Branch consolidation and workforce reduction expected to generate $2.3-$2.7M in annual pre-tax income improvement starting Q4 2026
Financial Impact
GAAP EPS declined 16.9% YoY; non-GAAP EPS beat consensus by 12.1% but still declined 8.7% YoY; net interest income down $1.5M; one-time charges of $2.1M; expected annual savings of $2.3-$2.7M from branch consolidations
Risk Factors
- Continued loan prepayment pressure reducing earning assets and net interest income
- Credit quality deterioration in multi-family portfolio (one $1.8M foreclosure with $909K charge-off in Q2)
- Execution risk on branch consolidation savings ($2.3-$2.7M annual target) and potential customer deposit attrition
- Higher brokered deposit replacement costs (rates at or above 3.90% at June 2026)
- Unrealized losses on AFS securities and interest rate swaps ($37.7M net of taxes) could pressure capital if rates rise further
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001171843-26-004726 |
| Exhibit: exh_992.htm | 0001171843-26-004726 |
| Exhibit: exh_993.htm | 0001171843-26-004726 |
| Document: f8k_071526.htm | 0001171843-26-004726 |
| Document: 0001171843-26-004726-index-headers.html | 0001171843-26-004726 |
| Document: 0001171843-26-004726-index.html | 0001171843-26-004726 |
| Document: 0001171843-26-004726.txt | 0001171843-26-004726 |
| 8-K Data (Synthetic) | 0001171843-26-004726 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 8-K | $78.93 | awaiting T+60 | — | $81.15 (−2.81%) |
Oct 21, 2026 5d ago | Press Release | $78.93 | awaiting T+60 | — | $81.15 (−2.81%) |
Sep 24, 2026 4w ago | Press Release | $78.91 | awaiting T+60 | — | $81.15 (+2.84%) |
Sep 16, 2026 5w ago | Press Release | $79.39 | awaiting T+60 | — | $81.15 (+2.22%) |
Jul 16, 2026 14w ago | 8-K | $80.11 $76.75 | ▲ +4.20% | ▲ +7.91% | $81.15 (−1.30%) |
Jul 15, 2026 14w ago | Press Release | $80.11 $76.75 | ▲ +4.20% | ▲ +7.91% | $81.15 (−1.30%) |
Jun 18, 2026 18w ago | Press Release | $74.82 $80.52 | ▲ +7.62% | ▲ +5.87% | $81.15 (+8.46%) |
Jun 12, 2026 19w ago | Institutional Cluster | $75.86 $79.49 | ▲ +4.79% | ▲ +1.52% | $81.15 (+6.97%) |
May 15, 2026 23w ago | 8-K | $67.18 $80.32 | ▲ +19.56% | ▲ +15.04% | $81.15 (+20.79%) |
May 1, 2026 25w ago | 144 | $68.70 $80.71 | ▲ +17.48% | ▲ +15.63% | $81.15 (+18.12%) |
US Market Status
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