Item 7.01 Regulation FD Disclosure.
Set forth below is presentation material of Great Southern Bancorp, Inc., the
holding company for Great Southern Bank.
[[Image Removed]]
AUGUST 2021
[[Image Removed]]
Forward - Looking Statements When used in this presentation and in other
documents filed or furnished by Great Southern Bancorp, Inc. (the "Company")
with th e SEC, in the Company's press releases or other public or stockholder
communications, and in oral statements made with the approval of an authorized
executive officer, th e words or phrases "may," "might," "could," "should,"
"will likely result," "are expected to," "will continue," "is anticipated,"
"believe," "estimate," "project," "inte nds " or similar expressions are
intended to identify "forward - looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward - looking stateme nts
also include, but are not limited to, statements regarding plans, objectives,
expectations or consequences of announced transactions, known trends and
statements a bou t future performance, operations, products and services of the
Company. The Company's ability to predict results or the actual effects of
future plans or strat egi es is inherently uncertain, and the Company's actual
results could differ materially from those contained in the forward - looking
statements. The novel coronavirus disease, or COVID - 19, pandemic has adversely
affected the Company, its customers, counterparties, employees, and third -
party service providers, and the ultimate extent of the impacts on the Company's
business, financial position, results of operations, liquidity, and prospects is
uncertain. While general business and economic conditions have recently im pro
ved, increases in unemployment rates, or turbulence in domestic or global
financial markets could adversely affect the Company's revenues and the values
of its assets an d liabilities, reduce the availability of funding, lead to a
tightening of credit, and further increase stock price volatility. In addition,
changes to statutes, regulations, o r r egulatory policies or practices as a
result of, or in response to, COVID - 19, could affect the Company in
substantial and unpredictable ways. Other factors that could cause or contribute
to such differences include, but are not limited to: ( i ) expected revenues,
cost savings, earnings accretion, synergies and other benefits from the
Company's merger and acquisition activities might not be realized within the
anticipated time frames or at al l, and costs or difficulties relating to
integration matters, including but not limited to customer and employee
retention, might be greater than expected; (ii) changes in econom ic conditions,
either nationally or in the Company's market areas; (iii) fluctuations in
interest rates; (iv) the risks of lending and investing activities, including c
han ges in the level and direction of loan delinquencies and write - offs and
changes in estimates of the adequacy of the allowance for credit losses; (v) the
possibility of impairments of se curities held in the Company's investment
portfolio; (vi) the Company's ability to access cost - effective funding; (vii)
fluctuations in real estate values and both reside ntial and commercial real
estate market conditions; (viii) the ability to adapt successfully to
technological changes to meet customers' needs and developments in the
marketplac e; (ix) the possibility that security measures implemented might not
be sufficient to mitigate the risk of a cyber - attack or cyber theft, and that
such security measures might not protect against systems failures or
interruptions; (x) legislative or regulatory changes that adversely affect the
Company's business, including, without limitat ion , the Dodd - Frank Wall
Street Reform and Consumer Protection Act of 2010 and its implementing
regulations, the overdraft protection regulations and customers' respons es
thereto and the Tax Cut and Jobs Act; (xi) changes in accounting policies and
practices or accounting standards; (xii) monetary and fiscal policies of the
Federal Reser ve Board and the U.S. Government and other governmental
initiatives affecting the financial services industry; (xiii) results of
examinations of the Company and Great S out hern Bank by their regulators,
including the possibility that the regulators may, among other things, require
the Company to limit its business activities, change its bus ine ss mix,
increase its allowance for credit losses, write - down assets or increase its
capital levels, or affect its ability to borrow funds or maintain or increase
deposits, which could adversely affect its liquidity and earnings; (xiv) costs
and effects of litigation, including settlements and judgments; (xv)
competition; (xvi) uncertainty regarding the futur e o f LIBOR and potential
replacement indexes; and (xvii) natural disasters, war, terrorist activities or
civil unrest and their effects on economic and business environments i n w hich
the Company operates. The Company wishes to advise readers that the factors
listed above and other risks described from time to time in documents filed or
furnished by t he Company with the SEC could affect the Company's financial
performance and could cause the Company's actual results for future periods to
differ materially from any op inions or statements expressed with respect to
future periods in any current statements. The Company does not undertake - and
specifically declines any obligation - to publicly release the result of any
revisions which m ay be made to any forward - looking statements to reflect
events or circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticip ate d events. 2
[[Image Removed]]
Great Southern Bancorp, Inc. x Focused on long - term growth and profitability
with a 98 - year history x Exceptional credit quality x Well capitalized,
diversified loan portfolio and strong core deposit base x Strong core operating
earnings power x Diverse retail banking franchise x Experienced management team
working through economic cycles x High percentage of insider ownership of 24%
aligns interests with stakeholders 3 A Long - term View
[[Image Removed]]
4 $0.34 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 2004 2005 2006 2007 2008
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4
Regular Quarterly Cash Dividends Declared on Common Stock A Long - term View
Special Cash Dividends Declared on Common Stock January 2019 - $0.75 per common
share January 2020 - $1.00 per common share
[[Image Removed]]
5 Recent Accolades
[[Image Removed]]
Great Southern Snapshot ($ in millions) 2020 2Q2021 Balance Sheet Total Assets
$5,526 $5,578 Loans Held - for - Investment $4,353 $4,281 Loans Held - for -
Sale $18 $19 Total Deposits $4,517 $4,566 Tangible Common Equity 1 $623 $623
Profitability ROAA 1.11% 1.41% ROATCE 1 9.65% 13.08% Net Interest Margin 3.49%
3.38% Efficiency Ratio 2 58.07% 55.98% Capital TCE / TA 1 11.3% 11.2% Common
Equity Tier 1 Ratio 12.2% 13.0% Tier 1 Ratio 12.7% 13.6% Total Capital Ratio
17.2% 18.1% Tier 1 Leverage Ratio 10.9% 11.0% Asset Quality 3 Allowance For Loan
Losses / Loans 1.32% 1.56% Allowance For Loan Losses / NPLs 1,831.86% 1,236.59%
Annualized NCOs / Avg. Loans 0.01% 0.00% Gross NPAs / Assets 0.07% 0.15% NPLs /
Loans 0.07% 0.18% 1 See appendix for non - GAAP reconciliations of tangible
common equity, return on average tangible common equity and tangible common
equity to tangible assets (page 22) 2 Non - interest expense divided by the sum
of net interest income plus non - interest income 3 2020 ratios exclude assets
acquired in FDIC - assisted transactions 6
[[Image Removed]]
Banking Center Network 94 banking centers / 6 commercial loan offices Activity
in last seven years: ? Consolidated 37 banking centers - 24 in Missouri, nine in
Iowa, three in Kansas, and one in Arkansas ? Sold offices - two in Missouri,
four in Nebraska ? Acquired 24 banking centers - 13 in Missouri and 11 in Iowa ?
Opened five new banking centers - Omaha, Neb. 1 ; Fayetteville, Ark. 2 ;
Ferguson, Mo.; Columbia, Mo.; and Overland Park, Kan., with commercial lending
office relocation ? Relocated/replaced seven banking centers - two in
Springfield, Mo.; one in the following: Maple Grove, Minn., Ava, Mo., Ames 3 ,
Iowa, Omaha 1 , Neb., and Bellevue, Neb. 1 9 banking centers / offices 16
banking centers 4 banking centers 63 banking centers / offices 1 banking
center/commercial loan office Commercial loan office Commercial loan office 1
banking center Commercial loan office 7 1 Omaha banking centers sold in July
2018. 2 Fayetteville, Arkansas, banking center consolidated in April 2019. 3
Ames, Iowa, banking center consolidated in September 2019. Commercial loan
office Commercial loan office
[[Image Removed]]
Operating in Stable Midwest Markets June 2021 Preliminary Unemployment Rates,
Seasonally Adjusted National Unemployment Rate: 5.9% 8 Source: US Bureau of
Labor Statistics, last modified July 16 , 2021 State Preliminary Unemployment
Rate Branch Locations Stand Alone Commercial Lending Offices Nebraska 2.5 Yes -
1 Omaha Kansas 3.7 Yes - 9 Oklahoma 3.7 Tulsa Georgia 4.0 Atlanta Iowa 4.0 Yes -
16 Minnesota 4.0 Yes - 4 Missouri 4.3 Yes - 63 Arkansas 4.4 Yes - 1 Colorado 6.2
Denver Texas 6.5 Dallas Illinois 7.2 Chicago
[[Image Removed]]
Associates Customers Communities • Paid Time Off • Part - time associates - paid
sick leave • Quarantine - full pay • Special Bonus - in April 2020 & August 2020
for all associates • Mental Health Support - enhanced Employee Assistance
Program • Personal Protective Equipment - available to all onsite associates •
Work from Home/Alternative Site - 28% of non - frontline associates • Employee
Assistance Fund • On - site Vaccine Clinic - Springfield (most populous market)
• Vaccination Incentive - $100 • No lay - offs/furloughs • Uninterrupted Service
- normal hours through all access channels o Banking Centers o Online & Mobile
Banking o ATMs/ITMs o Customer Service o Telephone Banking • Customer Hardships
o Deposit account fee waivers and liberal refunds through August 31, 2020 o Loan
payment relief options o CARES Act: Paycheck Protection Program • Total of All
Rounds: 3,250 loans $179 million Average loan size: $55,000 • COVID - 19
Information o www.GreatSouthernBank.com o Email updates o Social media platforms
o Fraud/scam prevention • $300 ,000 Philanthropic Initial Investment (Q1 2020) o
$100,000 - food insecurity (Feeding America food banks) o $100,000 - health &
human services needs (local United Way agencies) o $100,000 - local market needs
o Additional contributions made throughout 2020 and 2021 • COVID - 19 Call
Center - sponsorship with regional hospital • Social Media o Financial literacy
resources o Fraud/scam prevention COVID - 19 Response 9
[[Image Removed]]
$4,551 $4,415 $4,676 $5,015 $5,526 $5,578 $3,000 $3,500 $4,000 $4,500 $5,000
$5,500 $6,000 $3,797 $3,763 $4,027 $4,194 $4,353 $4,281 $3,000 $3,500 $4,000
$4,500 $5,000 $3,677 $3,597 $3,725 $3,960 $4,517 $4,566 $3,000 $3,500 $4,000
$4,500 $5,000 Total Assets ($ in millions) Total Loans ($ in millions) Total
Deposits ($ in millions) Growth Trends 10
[[Image Removed]]
11 Loan Production and Growth • Thus far in 2021, loan originations continue at
a good pace in our markets. • A large portion of originations are construction
loans, which are not fully funded at the time of origination. • In the final
round of the Paycheck Protection Program (PPP) that began in January 2021, a
total of $58.0 million of loans were originated. • Loan pay - offs continue to
be a significant headwind in 2021. • In 2021 to date, PPP loan repayments
totaled $94.5 million. • Net loan growth may be sporadic in different periods,
due to economic and market conditions, and in 2021, may be significantly less
than our historic long - term growth rate, due to repayments.
[[Image Removed]]
12 Strong Earnings Power Pre - Provision Net Revenue Efficiency Ratio 1 62.86%
58.99% 56.41% 54.48% 58.07% 55.98% 2016Y 2017Y 2018Y 2019Y 2020Y 2Q2021 ROATCE 2
ROAA 11.27% 11.61% 13.74% 13.08% 9.65% 13.08% 2016Y 2017Y 2018Y 2019Y 2020Y
2Q2021 1.04% 1.16% 1.49% 1.52% 1.11% 1.41% 2016Y 2017Y 2018Y 2019Y 2020Y 2Q2021
1 Non - interest expense divided by the sum of net interest income plus non -
interest income 2 See appendix for non - GAAP reconciliation of return on
average tangible common equity (page 22) $71.1 $79.4 $89.1 $96.2 $89.0 $43.9
$47.6 Net Income/Diluted EPS $45.3 $51.6 $67.1 $73.6 $59.3 $28.1 $39.0 $3.21
$3.64 $4.71 $5.14 $4.21 $1.98 $2.82 $0.00 $6.00 $0.0 $80.0 In millions, except
diluted earnings per common share
[[Image Removed]]
$30.77 $33.48 $37.59 $42.29 $45.79 $46.09 $0.00 $15.00 $30.00 $45.00 $60.00 $0
$100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2016 2017 2018
2019 2020 6/30/2021 Common Stockholders' Equity Book Value per Common Share 13
Capital 1 In thousands, except book value per common share Tier 1 Leverage Ratio
11.0% Common Equity Tier 1 Ratio 13.0% Tier 1 Ratio 13.6% Total Capital Ratio
18.1% Tier 1 Leverage Ratio 11.7% Common Equity Tier 1 Ratio 14.4% Tier 1 Ratio
14.4% Total Capital Ratio 15.6% 1 Effective January 1, 2021, the Company adopted
the Current Expected Credit Loss (CECL) accounting standard, reducing retained
ea rnings by $14.2 million. 2 The Holding Company and Bank are well above the
well - capitalized thresholds as defined by banking regulations. Regulatory
Capital 2 June 30, 2021 Consolidated Bank
[[Image Removed]]
Recent Capital Activities • Subordinated Debt Redemption - The Company intends
to redeem on August 15, 2021, all of its outstanding 5.25% fixed - to - floating
rate subordinated notes due August 15, 2026, with an aggregate principal balance
of $75 million. The Company will utilize excess cash on hand for the redemption
payment. The annual combined interest expense and amortization of deferred
issuance costs on these subordinated notes has been approximately $4.3 million.
• Stock Repurchases - During the six months ended June 30, 2021, the Company
repurchased 142,379 shares of its common stock at an average price of $52.39. -
Under the Company's current repurchase authorization 1 of up to one million
shares, 746,240 shares remain. 14 1 On October 21, 2020, the Company's Board of
Directors authorized management to repurchase up to one million shares of the
Com pan y's outstanding common stock, under a program of open market purchases
or privately negotiated transactions. This program does not have an ex pir ation
date.
[[Image Removed]]
$417 $461 $523 $595 $623 $623 9.2% 10.5% 11.2% 11.9% 11.3% 11.2% 0.0% 2.0% 4.0%
6.0% 8.0% 10.0% 12.0% 14.0% - $100 $200 $300 $400 $500 $600 $700 2016Y 2017Y
2018Y 2019Y 2020Y 6/30/2021 Tangible Common Equity Tangible Common Equity Ratio
1 See appendix for non - GAAP reconciliation of tangible common equity ( page
22). Tangible Common Equity 1 In thousands 15
[[Image Removed]]
16 Stable Net Interest Margin¹ 1 See appendix for reconciliation of core net
interest margin (page 21). 4.44% 4.50% 4.94% 5.19% 4.53% 4.31% 3.64% 3.62% 3.87%
3.79% 3.38% 3.34% 0.56% 0.70% 0.95% 1.28% 0.87% 0.47% 0.00% 6.00% 2016Y 2017Y
2018Y 2019Y 2020Y 2Q2021 Loan Yield Core NIM Cost of Funds 2 2 Excludes FDIC -
assisted transaction yield accretion.
[[Image Removed]]
17 Liquidity Trends Available Secured Lines and On - balance Sheet (in millions)
$570.5 $666.8 $867.1 $1,069.3 $944.3 $242.3 $202.7 $220.2 $563.7 $681.8 $46.4
$87.1 $228.5 $195.1 $251.9 $0 $200 $400 $600 $800 $1,000 $1,200 2017 2018 2019
2020 6/30/2021 Federal Home Looan Bank Line Availability Cash and Cash
Equivalents Unpledged Securities
[[Image Removed]]
18 Favorable Deposit Mix By Type By Region Data as of June 30, 2021 Interest
Checking/Savings 50.4% Non - interest Checking 24.2% CDs 23.0% Brokered CDs 1.5%
IntraFI Network CDs 0.9% Springfield MO Metro 42.0% All Other Missouri 14.6% St.
Louis Metro 14.1% Kansas City Metro 5.0% All Other Kansas 3.8% Sioux City IA
Metro 6.9% Des Moines Metro/Central Iowa 6.0% Quad Cities IA Metro 2.6%
Northwest Arkansas 0.5% Minnesota 4.5% $4.6 Billion
[[Image Removed]]
Portfolio Diversification $4.2 Billion *Includes Home Equity Loans of $110,237
19 Consumer* 5% Single Family Real Estate 15% Multifamily Real Estate 24%
Commercial Real Estate 37% Const & Land Dev 12% Commercial Business 7% Note:
Data as of June 30, 2021 1 Loans other than those acquired in FDIC - assisted
transactions * Includes Home Equity Loans of $110.5 million Diversified Legacy
Loan Portfolio¹ By Loan Type By Region St Louis 18% Kansas City 6% Missouri
Other 6% Springfield 8% Branson 1% Iowa/ Nebraska/ South Dakota 8% Minnesota 8%
Tulsa 4% Oklahoma Other 2% Northwest Arkansas 2% Kansas Other 2% Denver 2%
Atlanta 1% Chicago 4% Dallas 5% Texas Other 5% Other Regions 18%
[[Image Removed]]
20 Asset Quality¹ Non - performing Assets/Assets Net Charge - offs
(Recoveries)/Average Loans Allowance for Credit Losses/Loans Allowance for
Credit Losses/ Non - performing Loans 1 Prior to January 1, 2021, these ratios
excluded the FDIC - acquired loans. 0.86% 0.63% 0.25% 0.16% 0.07% 0.15% 2016Y
2017Y 2018Y 2019Y 2020Y 2Q2021 0.29% 0.26% 0.13% 0.10% 0.01% 0.00% 2016Y 2017Y
2018Y 2019Y 2020Y 2Q2021 1.04% 1.01% 0.98% 1.00% 1.32% 1.56% 2016Y 2017Y 2018Y
2019Y 2020Y 2Q2021 265.60% 324.23% 609.67% 891.66% 1831.86% 1236.59% 2016Y 2017Y
2018Y 2019Y 2020Y 2Q2021
[[Image Removed]]
21 Thank You For more information: x Visit our Web site:
www.GreatSouthernBank.com x Sign up for e - mail notification to get the latest
Great Southern news x Call us with questions: 417.895.5242
[[Image Removed]]
Appendix 22
[[Image Removed]]
Non - GAAP Reconciliation 23 This presentation contains certain financial
information determined by methods other than in accordance with accounting princ
ipl es generally accepted in the United States ("GAAP"). These non - GAAP
financial measures include core net interest income, core net interest margin,
return on average tangible common equity, tangible common equity, tangible
assets and the ratio of tangible common equity to tangible assets. We calculate
core net interest income and core net interest margin by subtracting the impact
of adjustments regarding changes in expected cash flows related to our pools of
loans we acquired through FDIC - assisted transactions from reported net
interest income and net interest margin. Management believes that core net
interest income and core net interest margin are useful in assessing the
Company's core performance and trends, in light of the fluctuations that can
occur related to upd ate d estimates of the fair value of the loan pools we
acquired in the 2009, 2011, 2012 and 2014 FDIC - assisted transactions. In
calculating return on average tangible common equity, tangible common equity,
tangible assets and the ratio of tangible co mmo n equity to tangible assets, we
subtract average intangible assets from average common equity and intangible
assets from common equity and from total assets. Management beli eve s that the
presentation of these measures excluding the impact of intangible assets
provides useful supplemental information that is helpful in understanding our
financial condi tio n and results of operations, as they provide a method to
assess management's success in utilizing our tangible capital as well as our
capital strength. Management also believes that pr oviding measures that exclude
balances of intangible assets, which are subjective components of valuation,
facilitates the comparison of our performance with the performance of our peers
. In addition, management believes that these are standard financial measures
used in the banking industry to evaluate performance. These non - GAAP financial
measures are supplemental and are not a substitute for any analysis based on
GAAP financial measures. B ecause not all companies use the same calculation of
non - GAAP measures, this presentation may not be comparable to other similarly
titled measures as calculated by other companies. Non - GAAP Reconciliation :
Core Net Interest Income and Core Net Interest Margin FY 2016 FY 2017 FY 2018 FY
2019 FY 2020 Six months ended 06/30/2021 $000 % $000 % $000 % $000 % $000 % $000
% Reported Net Interest Income/Margin $163,056 4.05 $155,156 3.74 $168,192 3.99
$180,392 3.95 $177,138 3.49 $88,773 3.38 Less: Impact of FDIC - assisted
acquired loan accretion adjustments 16,393 0.41 5,014 0.12 5,134 0.12 7,431 0.16
5,574 0.11 1,119 0.04 Core Net Interest Income/Margin $146,663 3.64 $150,142
3.62 $163,058 3.87 $172,961 3.79 $171,564 3.38 $87,654 3.34
[[Image Removed]]
Non - GAAP Reconciliation (cont.) 24 Non - GAAP Reconciliation : Return on
Average Tangible Common Equity, Tangible Common Equity, Tangible Assets and
Ratio of Tangible Common Equity to Tangible Assets (Dollars in thousands) FY
2016 FY 2017 FY 2018 FY 2019 FY 2020 06/30/2021 Net Income Available to Common
Shareholders (a) $45,342 $51,564 $67,109 $73,612 $59,313 $20,114 Average Common
Equity $414,799 $455,704 $498,508 $571,637 $622,437 $623,337 Less: Average
Intangible Assets 12,592 11,713 10,046 8,681 7,532 6,670 Average Tangible Common
Equity (b) $402,207 $443,991 $488,462 $562,956 $614,905 $616,667 Return on
Average Tangible Common Equity (a)/(b) 11.27% 11.61% 13.74% 13.08% 9.65% 13.08%
Common Equity At Period End $429,806 $471,662 $531,977 $603,066 $629,741
$629,557 Less: Intangible Assets At Period End 12,500 0,850 9,288 8,098 6,944
6,397 Tangible Common Equity At Period End (c) $417,306 $460,812 $522,689
$594,968 $622,797 $623,160 Total Assets at Period End $4,550,663 $4,414,521
$4,676,200 $5,015,072 $5,526,420 $5,577,582 Less: Intangible Assets At Period
End 12,500 10,850 9,288 8,098 6,944 6,397 Tangible Assets as Period End (d)
$4,538,163 $4,403,671 $4,666,912 $5,006,974 $5,519,476 $5,571,185 Tangible
Common Equity to Tangible Assets (c)/(d) 9.20% 10.46% 11.20% 11.88% 11.28%
11.19% (A) Annualized year to date for the six months ended June 30, 2021 (A)
© Edgar Online, source Glimpses
GREAT SOUTHERN BANCORP, INC. 
