Great Southern Bancorp stock: Q3 hit by hedge charge

Great Southern Bancorp reported preliminary third-quarter earnings on October 21, 2026, with the headline result affected by a non-cash cash flow hedge accounting adjustment. In its earnings release, the company reported diluted earnings of 1.27 US dollars per share and net income of 14.0 million US dollars for the three months ended September 30.

Hedge charge obscures core earnings

The accounting adjustment reduced pretax earnings by approximately 3.3 million US dollars, or about 0.23 US dollars per diluted share after tax. It had no effect on cash or total stockholders' equity. Excluding the adjustment, net income was 16.5 million US dollars and diluted earnings were 1.50 US dollars per share.

Net interest income declined 1.0 percent year over year to 50.3 million US dollars. The net interest margin was 3.75 percent, slightly above the 3.72 percent recorded in the year-earlier quarter but below 3.76 percent in the second quarter of 2026.

Loans and deposits move lower

Net loans excluding mortgage loans held for sale fell 2.5 percent from December 2025 to 4.25 billion US dollars at the end of September. The decline was driven mainly by commercial real estate and multifamily loans, while construction lending increased.

Total deposits decreased 9.2 percent during the first nine months to 4.07 billion US dollars. Brokered deposits fell by 300.0 million US dollars as the bank shifted toward Federal Home Loan Bank borrowings and managed funding costs.

Cost savings enter next phase

Great Southern completed the consolidation of nine banking centers and eliminated 66 positions as of October 1. Management expects these actions to improve annual pretax income by approximately 2.3 million to 2.7 million US dollars from the fourth quarter, although deposit attrition could reduce part of the benefit.

Regional banking model

Great Southern Bancorp is the holding company for Great Southern Bank, a regional financial institution headquartered in Springfield, Missouri. Through retail banking centers in Missouri, Kansas, Iowa, Nebraska and Minnesota, plus commercial lending offices in several major US cities, it provides deposit accounts, residential and commercial real estate loans, construction financing, commercial business loans, consumer lending and mortgage services. Its concentrated regional footprint distinguishes it from larger nationwide banking groups, while its commercial lending offices extend its reach beyond its branch network.

US financial stocks trade against the backdrop of the S&P 500.

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