Key Highlights

  • Great Southern Bancorp (NASDAQ:GSBC) reported preliminary third-quarter 2026 diluted EPS of USD 1.27 on Wednesday, October 21, 2026, down from USD 1.43 in the second quarter and USD 1.56 a year earlier.
  • A non-cash hedge accounting adjustment cut pre-tax earnings by about USD 3.3 million, or USD 0.23 per share; excluding it, EPS was USD 1.50, above the consensus estimate of USD 1.39.
  • Deposits fell USD 232.1 million in the quarter and net loans eased USD 59.3 million from June, while the net interest margin held at 3.75%.
  • Non-performing assets were USD 10.5 million, or 0.18% of assets, with no provision on loans, and the bank repurchased 159,212 shares at an average of USD 79.20.

Two Earnings Figures for One Quarter

Great Southern Bancorp (NASDAQ:GSBC), the Springfield, Missouri-based holding company for Great Southern Bank, reported preliminary third-quarter 2026 results on Wednesday, October 21, 2026. Net income was USD 14.0 million, or USD 1.27 per diluted share, against USD 15.8 million, or USD 1.43, in the second quarter and USD 17.8 million, or USD 1.56, a year earlier. A non-cash hedge accounting adjustment reduced earnings by about USD 2.5 million after tax, or USD 0.23 per diluted share. Excluding it, net income was USD 16.5 million and EPS USD 1.50, above the consensus estimate of USD 1.39. The net interest margin was 3.75%, against 3.76% in the second quarter and 3.72% a year earlier.

How a Hedge Item Moves Earnings but Not Capital

Great Southern Bancorp (NASDAQ:GSBC) uses interest rate hedges, derivatives that offset rate swings on parts of the balance sheet, and hedge accounting rules can push changes in their value through earnings. In the third quarter that produced a net pre-tax charge of about USD 3.3 million, which the company says has no effect on equity or cash. The item also distorted the efficiency ratio, expense as a share of revenue, which was 67.57% as reported and 63.68% excluding the adjustment. Underlying growth was limited, since net loans excluding loans held for sale fell USD 59.3 million from June to USD 4.25 billion. Chief Executive Officer Joseph W. Turner said the results showed the durability of the core banking franchise.

Risks and What to Watch

The first risk for Great Southern Bancorp (NASDAQ:GSBC) is a shrinking balance sheet: deposits fell USD 232.1 million in the quarter and USD 412.8 million, or 9.2%, over nine months, as brokered deposits dropped USD 300.0 million, or 45.2%. The second is loan growth, with net loans down USD 108.4 million, or 2.5%, since the end of 2025. The third is earnings volatility, since hedge accounting can move reported EPS again in later quarters without any change in cash. Credit is a smaller concern, with net charge-offs of USD 397,000 and a provision of only USD 674,000 for unfunded commitments. Investors should watch use of the new authorisation, approved in October, to repurchase up to one million shares.

Where Things Stand

The answer is that Great Southern Bancorp (NASDAQ:GSBC) reported USD 1.27 because a non-cash hedge accounting adjustment cost USD 0.23 per share. Excluding it, EPS of USD 1.50 beat the USD 1.39 consensus estimate, with a stable 3.75% margin and very low problem assets. Shrinking loans and deposits remain the weaker side of the report. The next catalysts are the final third-quarter figures, since these results are preliminary, and buybacks under the new one million share authorisation. Adjusted figures are not GAAP measures, and this is not investment advice.