Keefe, Bruyette & Woods analyst Damon Delmonte has maintained Great Southern Bancorp with a Market Perform rating while adjusting the stock's valuation outlook. The firm raised the price target for the company to $74, up from the previous target of $72.

Great Southern Bancorp is listed on NASDAQ under the ticker symbol GSBC. The rating and price target adjustment reflect the analyst's updated view on the bank's share price potential.

Great Southern Bancorp reported preliminary net income of $15.8 million, or $1.43 per diluted common share, for the three months ended June 30, 2026. This compares to net income of $19.8 million, or $1.72 per diluted common share, for the three months ended June 30, 2025. Excluding non-recurring expenses of $2.1 million, adjusted net income was $17.4 million, or $1.57 per diluted common share. Sales of $49.493 million surpassed the estimate of $48.377 million by 2.31%, though this represents a 2.88% decrease from $50.963 million in the same period last year.

The decline in profitability was primarily attributed to $2.1 million in non-recurring expenses recorded during the quarter. These costs are associated with the consolidation of nine banking centers and workforce reduction initiatives. The company announced these operational changes during its second quarter 2026 earnings call, highlighting a strategic shift to improve efficiency.

Financial Performance

Net interest income for the second quarter of 2026 decreased $1.5 million, or 2.9%, to $49.5 million, down from $51.0 million in the same period of 2025. The decrease was largely driven by the completion of accounting recognition in October 2025 of interest income from a previously terminated interest rate swap. Partially offsetting this decline was lower interest expense on deposit accounts and other borrowings. The net interest margin expanded to 3.76% from 3.68% in the prior-year quarter.

Non-interest income decreased $837,000 to $7.4 million, while non-interest expense increased $3.2 million to $38.2 million compared to the prior-year quarter. The increase in expense was driven by a $2.2 million rise in net occupancy and equipment expenses, largely due to valuation allowances and lease costs related to the branch consolidations, alongside a $686,000 increase in salaries and employee benefits due to severance payments.

Asset Quality and Liquidity

Non-performing assets totaled $9.4 million, or 0.17% of total assets, at June 30, 2026, an increase from $8.1 million, or 0.15% of total assets, at December 31, 2025. Total net loans decreased $49.1 million, or 1.1%, to $4.31 billion from $4.36 billion at the end of 2025. The company reported a charge-off of $909,000 on a multifamily loan transferred to foreclosed assets during the quarter.

Liquidity remained robust with secured borrowing line availability at the Federal Home Loan Bank and Federal Reserve Bank of $1.23 billion and $319.6 million, respectively, at June 30, 2026. Total deposits decreased by $180.7 million in the first half of 2026, with a strategic reduction in brokered deposits in favor of FHLB borrowings due to pricing pressures.

Capital Position

The company’s capital position remained strong, significantly exceeding regulatory "well-capitalized" thresholds. At June 30, 2026, total stockholders’ equity was $641.6 million, representing 11.6% of total assets and a book value of $58.95 per common share.

Operational Updates

In June 2026, the company decided to consolidate nine banking centers into other nearby locations and eliminate 66 positions across various divisions. The closures are expected to result in an annual pre-tax income improvement of over $2 million beginning in the fourth quarter of 2026. Management stated that the banking center consolidations and workforce reductions are expected to result in approximately $4.4 to $4.8 million in non-interest expense savings starting in the fourth quarter of 2026.

For the six months ended June 30, 2026, preliminary net income totaled $33.3 million, or $2.99 per diluted common share, compared to $36.9 million, or $3.18 per diluted common share, in the first half of 2025. The effective tax rate for Q2 2026 was 15.3%, lower than the previous year, driven by tax credits and deductions from employee stock option exercises.