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Great Southern Bancorp’s business is Great Southern Bank, whose lending is overwhelmingly secured by real estate, especially commercial properties and apartment buildings. Businesses, property owners and households pay interest on these loans. The bank funds lending with customer deposits, deposits obtained through brokers and borrowings, including from the Federal Home Loan Bank of Des Moines. Most of its deposits come from Missouri, with Springfield and St. Louis its largest deposit markets.
Earnings depend mainly on loan interest remaining above deposit and borrowing costs. The bank generally keeps adjustable-rate and shorter-term fixed-rate loans, while selling most long-term fixed-rate home mortgages to buyers including Freddie Mac, Fannie Mae and private investors. These sales earn additional income and free funds for further lending. Its property-heavy loan book also makes borrowers’ property cash flows and ability to repay important to the business.
The parent company has no significant operations beyond owning the bank and relies on bank dividends for its cash needs. Those payments depend on the bank’s earnings and regulatory requirements. The bank must also meet capital requirements; if it loses well-capitalized status, accepting brokered deposits can require regulatory approval.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Great Southern's results hinge on property borrowers' ability to repay and competition for Missouri deposits, where UMB Bank and U.S. Bank are important rivals missing from this list.
Southern Missouri Bancorp's Southern Bank competes with Great Southern for Missouri depositors and property borrowers; both fund similarly sized, property-heavy loan books with deposits and earn interest from borrowers.
Central Bancompany, Inc., through Central Trust Bank, competes with Great Southern for household deposits and business banking customers in Missouri and Kansas. Watch its progress with those households and businesses, rather than its banking operations elsewhere.
Equity Bancshares, Inc.'s Equity Bank competes with Great Southern for deposits and property borrowers in Missouri, Kansas and Arkansas, including Kansas City. Its sales of deposit and cash-management services to business borrowers show how it pursues more of those customers' banking business.
Enterprise Financial Services Corporation's Enterprise Bank & Trust competes with Great Southern for business deposits and commercial property borrowers in Missouri and Kansas. Its deposits from businesses and professional clients are worth watching because it relies primarily on customer deposits to fund loan growth.
Midland States Bancorp, Inc.'s Midland States Bank competes with Great Southern for commercial borrowers and retail banking customers in metropolitan St. Louis. Its business lending and consumer banking there matter more to this comparison than its broader Illinois operations.
Mercantile Bank Corp and Great Southern share exposure to interest earned on floating-rate commercial property loans versus the cost of deposits; both generally sell long-term fixed-rate home loans to investors. Watch Mercantile's floating-rate loan yields and property borrowers' repayment performance as cross-checks on Great Southern.
First Mid Bancshares, Inc. offers a cross-check on Great Southern's property lending risks: both earn substantial revenue from borrowers and hold large commercial property loan portfolios. Watch repayment problems in First Mid's commercial property loans for signs of credit pressure relevant to Great Southern.
Bank of America competes with Great Southern for Missouri deposits, despite serving consumers and businesses across a much broader global banking and investment business. Watch the deposit rates it offers locally, rather than its global results, for the clearest read on this rivalry.
Mercantile Bank Corp earningsMBWM
Mercantile Bank's report will show how yields and borrower repayments are holding up on its floating-rate commercial property loans, a cross-check on Great Southern Bancorp's similar loan-and-deposit spread.
Compare Mercantile's floating-rate loan yields with its deposit costs, and watch borrower repayments. More room between loan yields and deposit costs alongside steady repayment suggests rate conditions favor Great Southern's similar lending model; a squeezed spread or weakening repayment points to pressure on its interest income or borrowers' ability to pay.
Great Southern Bancorp Inc earningsThis company
Great Southern Bancorp earns mainly from loan interest, and this report will show whether income from floating-rate commercial property loans is keeping ahead of deposit and borrowing costs without credit trouble rising.
Read net interest margin alongside credit measures. Net interest margin is the interest earned on loans and other earning assets, less interest paid on deposits and borrowings, relative to those assets. A steady or rising margin with no increase in problem loans or credit-loss provisions says repricing is still supporting earnings and borrowers are holding up. A narrowing margin or rising problem loans or provisions says funding costs or commercial property borrowers' strain is eroding that model.
Fed Interest Rate Decision
Great Southern earns interest on adjustable-rate loans and pays for deposits and borrowings, so the Fed’s rate decision—which sets a benchmark for borrowing costs—can change both income from loans and the cost of funding them.
Expected4.0%Last release4.0%
If it comes in above expectations
If rates rise more than expected, interest earned on the bank’s adjustable-rate loans may increase, but higher rates can also make payments harder for borrowers and raise funding costs on deposits and borrowings, potentially weakening net interest income and loan repayment.
If it comes in below expectations
If rates fall more than expected, interest earned on the bank’s adjustable-rate loans may decline, while lower funding costs could partly offset that reduction and easier payments may support borrowers’ ability to repay.
First Mid Bancshares, Inc. earningsFMBH
First Mid Bancshares' report will show whether commercial property borrowers are having more trouble repaying, a credit-risk cross-check for Great Southern Bancorp's sizable commercial real estate book.
Watch First Mid's delinquent or problem commercial property loans alongside any increase in credit-loss provisions. Stable or improving measures say this peer's property loans are not showing broader repayment strain; rising delinquencies, problem loans or provisions point to mounting commercial property credit pressure that makes Great Southern's large commercial real estate book important to scrutinize.
