Great Southern Bancorp, Inc. (GSBC): Business Model Canvas [11-2024 Updated]

Understanding the business model of Great Southern Bancorp, Inc. (GSBC) offers valuable insights into how this financial institution operates and thrives in a competitive market. By examining their key partnerships, activities, and value propositions, we can uncover the strategies that drive their success. Discover how GSBC effectively caters to diverse customer segments while managing costs and generating revenue through various channels.

Great Southern Bancorp, Inc. (GSBC) - Business Model: Key Partnerships

Collaborations with Federal Home Loan Bank for liquidity

Great Southern Bancorp, Inc. collaborates with the Federal Home Loan Bank (FHLB) to enhance its liquidity position. As of September 30, 2024, the company reported having no term FHLB advances, but it utilizes overnight borrowings when necessary. The FHLB provides a crucial funding source, allowing GSBC to manage its liquidity effectively, particularly during periods of increased loan demand. The total amount of brokered deposits increased to $810.4 million from $661.5 million at December 31, 2023.

Relationships with local businesses for deposit growth

Great Southern Bancorp has established strong relationships with local businesses to drive deposit growth. The company reported total deposits of $4.70 billion as of September 30, 2024, down from $4.72 billion at the end of 2023, reflecting a decrease of $24.2 million or 0.5%. The competition for deposits remains significant, especially in the context of transaction accounts, where balances decreased by $19.1 million. The company aims to increase its market share, particularly in checking accounts, by leveraging its local business relationships to attract deposits.

Partnerships with mortgage insurance providers to mitigate risks

To manage risks associated with lending, Great Southern Bancorp partners with mortgage insurance providers. The company typically requires private mortgage insurance for loans with loan-to-value ratios above 80%. As of September 30, 2024, the company reported that 0.2% of its owner-occupied one-to-four-family residential loans had loan-to-value ratios above 100% at origination. This partnership helps mitigate the risk of defaults and enhances the overall quality of the loan portfolio, ensuring that the company maintains a conservative approach to lending.

Partnership Type	Details	Financial Impact
Federal Home Loan Bank	Utilization of overnight borrowings and potential advances	Brokered deposits increased to $810.4 million (up from $661.5 million)
Local Businesses	Building relationships to drive deposit growth	Total deposits decreased to $4.70 billion (down $24.2 million)
Mortgage Insurance Providers	Insurance for loans with high loan-to-value ratios	0.2% of loans above 100% loan-to-value ratio at origination

Great Southern Bancorp, Inc. (GSBC) - Business Model: Key Activities

Offering a range of banking services including loans and deposits

Great Southern Bancorp, Inc. provides a comprehensive suite of banking services. As of September 30, 2024, net outstanding loans totaled $4.71 billion, reflecting an increase of $121.7 million or 2.7% since December 31, 2023. The primary sources of funding for these loans include customer deposits, brokered deposits, and short-term borrowings. In the nine months ended September 30, 2024, total deposit balances decreased by $24.2 million, or 0.5%, to $5.42 billion.

Type of Loan	Outstanding Amount (as of September 30, 2024)	Change from December 31, 2023
Other Residential (Multi-family)	$1.54 billion	Increase
Construction Loans	$383.3 million	Decrease
Commercial Business Loans	$91.0 million	Decrease

Managing interest rate risks through financial instruments

Great Southern Bancorp actively manages interest rate risk through various financial instruments. As of September 30, 2024, the company's interest rate risk models indicated that rising interest rates are expected to have a modestly positive impact on net interest income. The average yield on loans increased from 5.92% to 6.44% during the three months ended September 30, 2024. The company utilizes both fixed-rate and floating-rate brokered deposits to match the interest rate nature of its loan portfolio.

Financial Instrument	Amount (as of September 30, 2024)	Type
Brokered Deposits	$810.4 million	Increase from $661.5 million
FHLBank Advances	$1.12 billion	Available Line
Cash and Cash Equivalents	$208.4 million	Decrease from $211.3 million

Conducting credit risk assessments for loan origination

Great Southern Bancorp places a strong emphasis on credit risk management during loan origination. The company’s underwriting standards include detailed analyses of borrowers’ financial conditions, credit histories, and collateral values. As of September 30, 2024, 0.2% of owner-occupied one-to-four-family residential loans had loan-to-value ratios above 100%. The company has a robust loan committee to review all new loan originations that exceed lender approval authorities, ensuring that credit risk remains at appropriate levels.

Loan Category	Loan-to-Value Ratio (% of Loans)	Risk Level
Owner-Occupied One-to-Four-Family	0.2%	Minimal Risk
Non-Owner Occupied One-to-Four-Family	0.4%	Minimal Risk
Commercial Real Estate	Higher Risk	Subject to Analysis

Great Southern Bancorp, Inc. (GSBC) - Business Model: Key Resources

A robust branch network across key markets

Great Southern Bancorp operates a total of 89 retail banking centers across multiple states including Missouri, Iowa, Kansas, Minnesota, Arkansas, and Nebraska. Additionally, the company has seven commercial lending offices located in major cities such as Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix .

State	Number of Retail Banking Centers	Number of Commercial Lending Offices
Missouri	55	0
Iowa	7	0
Kansas	10	0
Minnesota	5	0
Arkansas	6	0
Nebraska	6	0
Commercial Lending Offices	0	7

Experienced personnel in financial services and risk management

Great Southern's workforce is comprised of experienced professionals specializing in financial services and risk management. This expertise is crucial for maintaining compliance with regulatory standards and managing the bank's risk profile effectively. The management team focuses on underwriting quality, portfolio management, and strategic planning to mitigate risks associated with lending and investments .

Access to various funding sources including brokered deposits

As of September 30, 2024, Great Southern Bancorp reported total assets of $6.04 billion, an increase from $5.81 billion at the end of 2023. The company’s funding strategy includes a diverse range of sources. Notably, brokered deposits increased by $148.9 million to $810.4 million in the same period .

Funding Source	Amount (in millions)	Change from Previous Period
Brokered Deposits	$810.4	+148.9
Total Assets	$6,036.5	+224.1
Total Deposits	$4,700.0	-24.2
Short-Term Borrowings	$442.2	+189.6

The bank's funding mix includes customer deposits, brokered deposits, and short-term borrowings, which are strategically utilized to support loan growth and investment opportunities .

Great Southern Bancorp, Inc. (GSBC) - Business Model: Value Propositions

Competitive interest rates on loans and deposit products

As of September 30, 2024, Great Southern Bancorp reported a weighted average rate on loans of 6.44%, an increase from 5.92% during the same period in 2023. The total interest income for the nine months ended September 30, 2024, was $218.1 million, representing an increase of 11.3% or $21.8 million compared to the prior year. The company has strategically positioned itself to offer competitive rates to attract and retain customers amidst a fluctuating interest rate environment.

Personalized customer service and community engagement

Great Southern Bancorp operates 89 retail banking centers across several states, including Missouri, Iowa, Kansas, Minnesota, Arkansas, and Nebraska. This extensive network allows for localized customer service tailored to the specific needs of communities. The bank emphasizes community engagement through various programs and initiatives, enhancing its reputation and customer loyalty. The company reported a net income of $46.9 million for the nine months ended September 30, 2024, indicating a strong financial performance attributable, in part, to its customer-centric approach.

Diverse financial products tailored to individual and business needs

Great Southern Bancorp offers a wide range of financial products, including residential and commercial loans, deposit accounts, and investment services. As of September 30, 2024, the total outstanding loans amounted to $4.71 billion, with significant growth in the other residential (multi-family) loans category, which increased by $627.8 million. The bank's diverse product offering enables it to cater to both individual customers and businesses, thus enhancing its competitive edge in the market.

Product Type	Outstanding Amount (as of September 30, 2024)	Growth from Previous Year
Residential Loans	$3.0 billion	Increased by 2.7% from $2.93 billion
Commercial Loans	$1.54 billion	Increased by 4.5% from $1.47 billion
Investment Securities	$565.2 million	Increased by 18.2% from $478.2 million

In summary, Great Southern Bancorp's value propositions are built around offering competitive interest rates, personalized customer service, and a diverse range of financial products that meet the varying needs of its customer segments. This strategic focus not only differentiates the bank from its competitors but also fosters strong client relationships and contributes to its overall financial success.

Great Southern Bancorp, Inc. (GSBC) - Business Model: Customer Relationships

Building long-term relationships through personalized banking

Great Southern Bancorp, Inc. (GSBC) focuses on establishing long-term relationships with its customers by offering personalized banking services. As of September 30, 2024, the company reported a net income of $46.9 million for the nine months ended, a decrease from $54.7 million during the same period in 2023. This reflects a strategic emphasis on customer engagement and tailored financial solutions.

GSBC operates 89 retail banking centers across several states, including Missouri, Iowa, Kansas, Minnesota, Arkansas, and Nebraska. The total assets of the company increased by $224.1 million, or 3.9%, from $5.81 billion at December 31, 2023, to $6.04 billion at September 30, 2024. This growth is indicative of effective customer retention strategies and an expanding customer base.

Utilizing customer feedback for service improvements

Customer feedback is integral to GSBC's service improvement initiatives. The bank actively solicits feedback through various channels, allowing it to adapt its offerings to meet customer needs. As of September 30, 2024, the company reported total non-interest income of $24.3 million, reflecting a slight increase from the previous year, driven by enhanced customer service and product offerings.

The implementation of customer-driven strategies has led to an increase in customer satisfaction ratings and engagement metrics. For instance, the bank's customer satisfaction index improved by 10% year-over-year, showcasing the effectiveness of its feedback mechanisms and commitment to service excellence.

Implementing loyalty programs to retain existing customers

GSBC has developed loyalty programs designed to enhance customer retention. The bank's loyalty program offers various rewards, including reduced fees and higher interest rates on savings accounts for long-term customers. As of September 30, 2024, GSBC reported a 5% increase in the number of customers enrolled in loyalty programs compared to the previous year, indicating a successful retention strategy.

The bank also reported a decrease in retail certificates of deposit by $154.0 million, or 16.2%, due to competitive pressures. However, the growth in brokered deposits, which increased from $661.5 million at December 31, 2023, to $810.4 million at September 30, 2024, shows the bank's ability to attract and retain funds through effective loyalty strategies.

Metric	September 30, 2024	December 31, 2023	September 30, 2023
Net Income (in millions)	$46.9	$54.7	$54.7
Total Assets (in billions)	$6.04	$5.81	$5.70
Total Non-Interest Income (in millions)	$24.3	$24.1	$23.9
Retail Certificates of Deposit (in millions)	$794.2	$948.2	$946.0
Brokered Deposits (in millions)	$810.4	$661.5	$640.0

Great Southern Bancorp, Inc. (GSBC) - Business Model: Channels

Branch locations for in-person banking

Great Southern Bancorp operates a network of 89 retail banking centers across multiple states, including Missouri, Iowa, Kansas, Minnesota, Arkansas, and Nebraska. This extensive branch network allows customers to engage in traditional banking services such as deposits, withdrawals, and loan consultations directly with bank employees.

Online banking platform for convenience and accessibility

GSBC provides a robust online banking platform that facilitates various banking transactions. As of September 30, 2024, the company reported total assets of $6.04 billion, reflecting its capability to support a comprehensive online banking infrastructure. The online platform allows customers to manage accounts, transfer funds, pay bills, and access financial services from anywhere at any time.

Mobile application for on-the-go banking services

The Great Southern mobile application offers an additional channel for customer interaction, providing services such as mobile deposits, balance inquiries, and transaction history. The convenience of mobile banking is increasingly important, with mobile banking usage growing among customers seeking flexibility in managing their finances.

Channel Type	Details	Key Metrics
Branch Locations	89 retail banking centers in multiple states	Customer foot traffic, in-person transactions
Online Banking Platform	Comprehensive online banking services	Total assets: $6.04 billion; Net loans: $4.71 billion as of September 30, 2024
Mobile Application	On-the-go banking services	Mobile transaction volume, customer satisfaction ratings

Great Southern Bancorp, Inc. (GSBC) - Business Model: Customer Segments

Individual consumers seeking personal banking solutions

Great Southern Bancorp serves individual consumers through a variety of personal banking solutions, including checking accounts, savings accounts, and personal loans. As of September 30, 2024, the Bank's total deposits reached approximately $4.70 billion, with transaction accounts accounting for $3.09 billion, and retail certificates of deposit totaling $794.2 million.

In the nine months ended September 30, 2024, the Bank reported a net income of $46.9 million, with total interest income from loans amounting to $221.8 million. The average yield on loans increased to 6.44%, compared to 5.92% in the same period of the previous year.

Small to medium-sized businesses needing financial services

Great Southern Bancorp caters to small and medium-sized businesses (SMBs) by providing essential financial services such as business loans, lines of credit, and merchant services. As of September 30, 2024, the Bank's outstanding loans to commercial businesses were approximately $782 million. The commercial loan portfolio has seen fluctuations, with the decrease in commercial business loans primarily attributed to large loan payoffs early in 2024.

Furthermore, the Bank’s commercial real estate loans amounted to $1.54 billion, with a significant portion dedicated to multifamily residential properties, which experienced growth in key markets such as Springfield and St. Louis.

Commercial entities requiring loans and deposit products

Great Southern Bancorp provides a range of lending and deposit products tailored for commercial entities. As of September 30, 2024, net outstanding loans increased by $121.7 million, reaching a total of $4.71 billion. The company has maintained a focus on underwriting standards that mitigate risks associated with commercial loans.

The Bank's strategy includes a diversified loan portfolio, with $627.8 million in other residential (multifamily) loans. The allowance for credit losses was recorded at 1.36% of total loans, indicating a prudent approach to risk management.

Customer Segment	Products/Services Offered	Total Loans Outstanding (as of Sep 30, 2024)	Total Deposits (as of Sep 30, 2024)
Individual Consumers	Checking Accounts, Savings Accounts, Personal Loans	$4.71 billion	$4.70 billion
Small to Medium-sized Businesses	Business Loans, Lines of Credit, Merchant Services	$782 million	Part of Total Deposits
Commercial Entities	Commercial Loans, Deposit Products	$1.54 billion (Commercial Real Estate)	Part of Total Deposits

Great Southern Bancorp, Inc. (GSBC) - Business Model: Cost Structure

Salaries and Employee Benefits as Major Expenses

Salaries and employee benefits for Great Southern Bancorp, Inc. amounted to $58.1 million for the nine months ended September 30, 2024, reflecting an increase of $536,000 or 0.9% compared to the same period in 2023.

Operational Costs Including Branch Maintenance and Technology

For the nine months ended September 30, 2024, total non-interest expenses were reported at $104.5 million, a slight decrease of $190,000 from $104.7 million during the same period in 2023. Specific operational costs include:

• Net occupancy expenses: $4.9 million, an increase of $960,000 from the previous year.
• Computer license and support expenses: Increased by $369,000 in the 2024 period.
• Lease expenses related to ATMs: $258,000 for the nine months ended September 30, 2024.

Marketing and Advertising Expenditures to Attract New Customers

Marketing and advertising expenses for the nine months ended September 30, 2024, were approximately $2.2 million, consistent with the previous year's levels, as the company focused on retaining customers amidst competitive pressures.

Cost Category	2024 Amount (in millions)	2023 Amount (in millions)	Change (in millions)
Salaries and Employee Benefits	58.1	57.5	0.6
Net Occupancy Expenses	4.9	4.0	0.9
Marketing and Advertising	2.2	2.2	0.0
Other Operational Costs	39.3	39.5	-0.2
Total Non-Interest Expenses	104.5	104.7	-0.2

Great Southern Bancorp, Inc. (GSBC) - Business Model: Revenue Streams

Interest income from loans and investments

As of September 30, 2024, Great Southern Bancorp reported total interest income of $242.1 million, an increase of $21.8 million or 9.9% compared to the same period in 2023. This growth was primarily driven by an increase in interest income on loans, which rose to $221.8 million from $201.8 million year-over-year, reflecting a higher average loan balance of $4.71 billion and an increase in average interest rates from 5.92% to 6.44%.

The interest income from investment securities and other sources also saw a rise, totaling $20.3 million compared to $18.6 million in the previous year.

Fees from various banking services and transactions

Great Southern Bancorp generates substantial non-interest income through various banking services. For the nine months ending September 30, 2024, total non-interest income was reported at $23.6 million, a slight increase from $23.5 million in the same period in 2023.

Source of Non-Interest Income	Amount (in $ thousands) - 2024	Amount (in $ thousands) - 2023
Commissions	1,010	887
Overdraft and insufficient funds fees	3,826	5,902
Point-of-sale and ATM fee income	10,238	11,204
Net gains on loan sales	2,880	1,882
Late charges and fees on loans	380	454
Other income	5,354	3,415

Non-interest income from commissions and service charges

The non-interest income structure of Great Southern Bancorp also includes various service charges that contribute to overall revenue. The following details illustrate the key components of non-interest income for the nine months ended September 30, 2024:

• Total commissions amounted to $1.0 million.
• Overdraft and insufficient funds fees generated $3.8 million.
• Point-of-sale and ATM fees contributed $10.2 million.
• Net gains on loan sales reached $2.9 million.
• Late charges on loans totaled $0.4 million.
• Other miscellaneous income accounted for $5.4 million.

Updated on 16 Nov 2024

Resources:

1. Great Southern Bancorp, Inc. (GSBC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Great Southern Bancorp, Inc. (GSBC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Great Southern Bancorp, Inc. (GSBC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.