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July 21 , 2021 CONTACT : Kelly Polonus , Great Southern , ( 417 ) 895-5242 kpolonus@greatsouthernbank.com ● Great Southern Bancorp , Inc. Reports Preliminary Second Quarter Earnings of $ 1.46 Per Diluted Common Share Preliminary Financial Results and Other Matters for the Quarter and Six Months Ended June 30 , 2021 : CECL Adoption : As previously disclosed , 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 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 . ● GREAT SOUTHERN BANCORP , INC . ● ● FOR IMMEDIATE RELEASE Significant Income and Expense Items : During the three months ended June 30 , 2021 , the Company recorded interest income of $ 1.1 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 and second quarter of 2021 , almost all of the remaining loans from the original round of PPP were repaid by the Small Business Administration ( SBA ) in accordance with the borrower forgiveness terms of the PPP . We expect more PPP loans from the most recent round of PPP will repay in full during the second half of 2021. At June 30 , 2021 , remaining net deferred fees related to PPP loans totaled $ 3.7 million . In addition , for the three months ended June 30 , 2021 , based upon the Company's assumptions , estimates and CECL credit loss methodology , the Company recorded a negative provision for credit losses of $ 1.0 million related to its outstanding loans . The Company also recorded a negative provision for unfunded commitments of $ 307,000 . The after - tax effect of these credit provision items on earnings was $ 0.07 per diluted share . Total Loans : Total gross loans ( including the undisbursed portion of loans ) , excluding FDIC - assisted acquired loans and mortgage loans held for sale , decreased $ 40.0 million , or 0.8 % , from December 31 , 2020 , to June 30 , 2021. This decrease was primarily in construction loans , commercial business loans and consumer auto loans . This decrease was partially offset by increases in other residential ( multi family ) loans , single family real estate loans and commercial real estate loans . The FDIC - assisted acquired loan portfolios decreased $ 14.3 million during the six months ended June 30 , 2021 . Outstanding net loan receivable balances decreased $ 82.5 million , from $ 4.30 billion at December 31 , 2020 to $ 4.21 billion at June 30 , 2021 . Asset Quality : Non - performing assets and potential problem loans , including those acquired in FDIC assisted transactions , totaled $ 13.3 million at June 30 , 2021 , a decrease of $ 2.7 million from $ 16.0 million at March 31 , 2021 and a decrease of $ 686,000 from $ 14.0 million at December 31 , 2020. At June 30 , 2021 , non - performing assets , including those acquired in FDIC - assisted transactions , were $ 8.6 million ( 0.15 % of total assets ) , a decrease of $ 2.3 million from $ 10.9 million ( 0.19 % of total assets ) at March 31 , 2021 and an increase of $ 465,000 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 $ 8.9 million ( 0.16 % of total assets ) at June 30 , 2021 , and non - performing assets were $ 5.5 million ( 0.10 % of total assets ) . Net Interest Income : Net interest income for the second quarter of 2021 increased $ 1.2 million ( or approximately 2.8 % ) to $ 44.7 million compared to $ 43.5 million for the second quarter of 2020. Net interest income was $ 44.1 million for the first quarter of 2021. Net interest margin was 3.35 % for the quarter ended June 30 , 2021 , compared to 3.39 % for the second quarter of 2020. The decrease in net 1