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EX - 99.1 2 tm2113457d2_ex99-1.htm EXHIBIT 99.1 April 21 , 2021 GREAT SOUTHERN BANCORP , INC . Exhibit 99.1 FOR IMMEDIATE RELEASE CONTACT : Kelly Polonus , Great Southern , ( 417 ) 895-5242 kpolonus@greatsouthernbank.com Great Southern Bancorp , Inc. Reports Preliminary First Quarter Earnings of $ 1.36 Per Diluted Common Share Preliminary Financial Results and Other Matters for the Quarter Ended March 31 , 2021 : CECL Adoption : Effective January 1 , 2021 , Great Southern Bancorp , Inc. ( the Company ) adopted the Current Expected Credit Loss ( CECL ) accounting standard . The Company's financial statements for periods prior to January 1 , 2021 , were prepared under the previous incurred loss accounting standard . The adoption of the CECL accounting standard during the first quarter of 2021 required us to recognize a one - time cumulative adjustment to our allowance for credit losses and a liability for potential losses related to the unfunded portion of our loans and commitments in order to fully transition from the incurred loss model to the CECL model . With the adoption of the CECL standard , we increased the balance of our allowance for credit losses related to outstanding loans by $ 11.6 million and created an allowance for potential losses related to the unfunded portion of our loans and commitments by $ 8.7 million . The after - tax effect of this is a reduction of our retained earnings by $ 14.2 million . Significant Notable Income and Expense Items : During the three months ended March 31 , 2021 , the Company recorded interest income of $ 1.2 million related to net deferred fee income accretion on Paycheck Protection Program ( PPP ) loans . Net fees are accreted over the loan term with remaining deferred fees recorded in interest income when the loans pay off . During the first quarter of 2021 , some of the loans were repaid by the Small Business Administration ( SBA ) in accordance with the borrower forgiveness terms of the PPP . We expect more PPP loans will repay in full during the second quarter of 2021. At March 31 , 2021 , remaining net deferred fees related to PPP loans totaled $ 3.9 million . This includes net deferred fees from the new round of PPP lending that began during the first quarter of 2021 . Total Loans : Total gross loans ( including the undisbursed portion of loans ) , excluding FDIC - assisted acquired loans and mortgage loans held for sale , decreased $ 2.7 million , or 0.1 % , from December 31 , 2020 , to March 31 , 2021. This decrease was primarily in construction loans and consumer auto loans . This decrease was offset by increases in other residential ( multi - family ) loans and commercial real estate loans . The FDIC - assisted acquired loan portfolios decreased $ 6.7 million during the three months ended March 31 , 2021. Outstanding net loan receivable balances decreased $ 11.1 million , from $ 4.30 billion at December 31 , 2020 to $ 4.29 billion at March 31 , 2021 . Asset Quality : Non - performing assets and potential problem loans , including those acquired in FDIC - assisted transactions , totaled $ 16.0 million at March 31 , 2021 , an increase of $ 2.0 million from $ 14.0 million at December 31 , 2020. At March 31 , 2021 , non - performing assets , including those acquired in FDIC - assisted transactions , were $ 10.9 million ( 0.19 % of total assets ) , an increase of $ 2.8 million from $ 8.1 million ( 0.14 % of total assets ) at December 31 , 2020. Excluding FDIC - acquired assets , non - performing assets and potential problem loans totaled $ 10.3 million ( 0.18 % of total assets ) at March 31 , 2021 , and non- performing assets were $ 6.7 million ( 0.12 % of total assets ) . Net Interest Income : Net interest income for the first quarter of 2021 decreased $ 849,000 ( or approximately 1.9 % ) to $ 44.1 million compared to $ 44.9 million for the first quarter of 2020. Net interest margin was 3.41 % for the quarter ended March 31 , 2021 , compared to 3.84 % for the first quarter of 2020. The decrease in net interest margin compared to the first quarter of 2020 was primarily the result of changes in the asset mix , with average cash equivalents increasing $ 329 million and average investment securities increasing $ 30 million . The average yield on cash equivalents decreased 106 basis points between the two periods . The positive impact on net interest margin from the additional yield accretion on acquired loan pools that was recorded during the periods was 5 and 16 basis points for the quarters ended March 31 , 2021 and March 31 , 2020 , respectively . Core net interest margin , which excludes the impact of the yield accretion , was 3.36 % and 3.68 % for the three months ended March 31 , 2021 and March 31 , 2020 , respectively . For further discussion of the additional yield accretion of the discount on acquired loan pools , see " Net Interest Income . " 1