Signal management

GREAT SOUTHERN BANCORP, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q)

Forward-looking statements

When used in this Quarterly Report and in documents filed or furnished by Great
Southern Bancorp, Inc. (the "Company") with the Securities and Exchange
Commission (the "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, the words or phrases "may," "might," "could,"
"should," "will likely result," "are expected to," "will continue," "is
anticipated," "believe," "estimate," "project," "intends" or similar expressions
are intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
also include, but are not limited to, statements regarding plans, objectives,
expectations or consequences of announced transactions, known trends and
statements about future performance, operations, products and services of the
Company. The Company's ability to predict results or the actual effects of
future plans or strategies 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 improved,
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 and liabilities, reduce the availability of funding, lead to a tightening
of credit, and further increase stock price volatility. In addition, changes to
statutes, regulations, or regulatory 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 all,
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 economic conditions, either nationally or in the Company's
market areas; (iii) fluctuations in interest rates; (iv) the risks of lending
and investing activities, including changes 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 realized or unrealized
losses on securities 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 residential and commercial real estate market conditions;
(viii) the ability to adapt successfully to technological changes to meet
customers' needs and developments in the marketplace; (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; (xi) changes in accounting
policies and practices or accounting standards; (xii) results of examinations of
the Company and Great Southern Bank by their regulators, including the
possibility that the regulators may, among other things, require the Company to
limit its business activities, change its business 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 future of LIBOR and potential replacement indexes; and
(xvii) natural disasters, war, terrorist activities or civil unrest and their
effects on economic and business environments in which 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 the 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
opinions 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 may 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 unanticipated
events.

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Critical accounting policies, judgments and estimates

The accounting and reporting policies of the Company conform to accounting
principles generally accepted in the United States of America and general
practices within the financial services industry. The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and the
accompanying notes. Actual results could differ from those estimates.

Allowance for credit losses and valuation of foreclosed assets

The Company believes that the determination of the allowance for credit losses
involves a higher degree of judgment and complexity than its other significant
accounting policies. The allowance for credit losses is calculated with the
objective of maintaining an allowance level believed by management to be
sufficient to absorb estimated credit losses. The allowance for credit losses is
measured using an average historical loss model which incorporates relevant
information about past events (including historical credit loss experience on
loans with similar risk characteristics), current conditions, and reasonable and
supportable forecasts that affect the collectability of the remaining cash flows
over the contractual term of the loans. The allowance for credit losses is
measured on a collective (pool) basis. Loans are aggregated into pools based on
similar risk characteristics including borrower type, collateral and repayment
types and expected credit loss patterns. Loans that do not share similar risk
characteristics, primarily classified and/or TDR loans with a balance greater
than or equal to $100,000 which are classified or restructured troubled debt,
are evaluated on an individual basis.

For loans evaluated for credit losses on a collective basis, average historical
loss rates are calculated for each pool using the Company's historical net
charge-offs (combined charge-offs and recoveries by observable historical
reporting period) and outstanding loan balances during a lookback period.
Lookback periods can be different based on the individual pool and represent
management's credit expectations for the pool of loans over the remaining
contractual life. In certain loan pools, if the Company's own historical loss
rate is not reflective of the loss expectations, the historical loss rate is
augmented by industry and peer data. The calculated average net charge-off rate
is then adjusted for current conditions and reasonable and supportable
forecasts. These adjustments increase or decrease the average historical loss
rate to reflect expectations of future losses given economic forecasts of key
macroeconomic variables including, but not limited to, unemployment rate, GDP,
disposable income and market volatility. The adjustments are based on results
from various regression models projecting the impact of the macroeconomic
variables to loss rates. The forecast is used for a reasonable and supportable
period before reverting back to historical averages using a straight-line
method. The forecast adjusted loss rate is applied to the amortized cost of
loans over the remaining contractual lives, adjusted for expected prepayments.
The contractual term excludes expected extensions, renewals and modifications
unless there is a reasonable expectation that a troubled debt restructuring will
be executed. Additionally, the allowance for credit losses considers other
qualitative factors not included in historical loss rates or macroeconomic
forecast such as changes in portfolio composition, underwriting practices, or
significant unique events or conditions.

See Note 6 "Loans and Allowance for Credit Losses" of the accompanying financial
statements for additional information regarding the allowance for credit losses.
Inherent in this process is the evaluation of individual significant credit
relationships. From time to time certain credit relationships may deteriorate
due to payment performance, cash flow of the borrower, value of collateral, or
other factors. In these instances, management may revise its loss estimates and
assumptions for these specific credits due to changing circumstances. In some
cases, additional losses may be realized; in other instances, the factors that
led to the deterioration may improve or the credit may be refinanced elsewhere
and allocated allowances may be released from the particular credit. Significant
changes were made to management's overall methodology for evaluating the
allowance for credit losses beginning in 2021 due to the adoption of ASU
2016-13.

On January 1, 2021, the Company adopted the new accounting standard related to
the Allowance for Credit Losses. For assets held at amortized cost basis, this
standard eliminates the probable initial recognition threshold in GAAP and,
instead, requires an entity to reflect its current estimate of all expected
credit losses. See Note 6 of the accompanying financial statements for
additional information.

In addition, the Company considers that the determination of the valuations of
foreclosed assets held for sale involves a high degree of judgment and
complexity. The carrying value of foreclosed assets reflects management's best
estimate of the amount to be realized from the sales of the assets. While the
estimate is generally based on a valuation by an independent appraiser or recent
sales of similar properties, the amount that the Company realizes from the sales
of the assets could differ materially from the carrying value reflected in the
financial statements, resulting in losses that could adversely impact earnings
in future periods.

                                       32

Good will and intangible assets

Goodwill and intangible assets that have indefinite useful lives are subject to
an impairment test at least annually and more frequently if circumstances
indicate their value may not be recoverable. Goodwill is tested for impairment
using a process that estimates the fair value of each of the Company's reporting
units compared with its carrying value. The Company defines reporting units as a
level below each of its operating segments for which there is discrete financial
information that is regularly reviewed. As of March 31, 2022, the Company had
one reporting unit to which goodwill has been allocated - the Bank. If the fair
value of a reporting unit exceeds its carrying value, then no impairment is
recorded. If the carrying value exceeds the fair value of a reporting unit,
further testing is completed comparing the implied fair value of the reporting
unit's goodwill to its carrying value to measure the amount of impairment, if
any. Intangible assets that are not amortized will be tested for impairment at
least annually by comparing the fair values of those assets to their carrying
values. At March 31, 2022, goodwill consisted of $5.4 million at the Bank
reporting unit, which included goodwill of $4.2 million that was recorded during
2016 related to the acquisition of 12 branches and the assumption of related
deposits in the St. Louis market from Fifth Third Bank. Other identifiable
intangible assets that are subject to amortization are amortized on a
straight-line basis over a period of seven years. At March 31, 2022, the
amortizable intangible assets consisted of core deposit intangibles of $527,000,
which are reflected in the table below. These amortizable intangible assets are
reviewed for impairment if circumstances indicate their value may not be
recoverable based on a comparison of fair value.

For purposes of testing goodwill for impairment, the Company used a market
approach to value its reporting unit. The market approach applies a market
multiple, based on observed purchase transactions for each reporting unit, to
the metrics appropriate for the valuation of the operating unit. Significant
judgment is applied when goodwill is assessed for impairment. This judgment may
include developing cash flow projections, selecting appropriate discount rates,
identifying relevant market comparables and incorporating general economic and
market conditions.

Management does not believe any of the Company's goodwill or other intangible
assets were impaired as of March 31, 2022. While management believes no
impairment existed at March 31, 2022, different conditions or assumptions used
to measure fair value of the reporting unit, or changes in cash flows or
profitability, if significantly negative or unfavorable, could have a material
adverse effect on the outcome of the Company's impairment evaluation in the
future.

The summary of goodwill and intangible assets is as follows:

                                    March 31,     December 31,
                                      2022            2021

                                          (In Thousands)

Good will – Acquisitions of branches $5,396 $5,396
Deposit of intangible assets
Fifth Third Bank (January 2016)

            527              685
                                   $     5,923    $       6,081


Current Economic Conditions

Changes in economic conditions could cause the values of assets and liabilities
recorded in the financial statements to change rapidly, resulting in material
future adjustments in asset values, the allowance for credit losses, or capital
that could negatively impact the Company's ability to meet regulatory capital
requirements and maintain sufficient liquidity. Following the housing and
mortgage crisis and correction beginning in mid-2007, the United States entered
an economic downturn. Unemployment rose from 4.7% in November 2007 to peak at
10.0% in October 2009. Economic conditions improved in the subsequent years, as
indicated by higher consumer confidence levels, increased economic activity and
low unemployment levels. The U.S. economy continued to operate at historically
strong levels until the COVID-19 pandemic in March 2020. While U.S. economic
trends have rebounded, new COVID variants have emerged and the severity and
extent of the coronavirus on the global, national and regional economies is
still uncertain. Any long-term impact on the performance of the financial sector
remains indeterminable.

The economy plunged into recession in the first quarter of 2020, as efforts to
contain the spread of the coronavirus forced all but essential business
activity, or any work that could not be done from home, to stop, shuttering
factories, restaurants, entertainment, sports events, retail shops, personal
services, and more.

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More than 22 million jobs were lost in March and April 2020 as businesses closed
their doors or reduced their operations, sending employees home on furlough or
layoffs. Hunkered down at home with uncertain incomes and limited buying
opportunities, consumer spending plummeted. As a result, gross domestic product
(GDP), the broadest measure of the nation's economic output, plunged. Since
then, significant improvements in consumer spending, GDP, and employment have
occurred, greatly supported by the actions described below.

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"), a fiscal
relief bill passed by Congress and signed by the President in March 2020,
injected approximately $3 trillion into the economy through direct payments to
individuals and grants to small businesses that would keep employees on their
payroll, fueling a historic bounce-back in economic activity.

To help our customers navigate through the pandemic situation, we offered and
supplied Paycheck Protection Program (PPP) loans and short-term modifications to
loan terms. PPP loans and loan modifications were made in accordance with
guidance from banking regulatory authorities. These modifications did not result
in loans being classified as troubled debt restructurings, potential problem
loans or non-performing loans. More severely impacted industries in our loan
portfolio included retail, hotel and restaurants. Nearly all modified loans have
returned to original terms.

The Federal Reserve acted decisively, employing a wide arsenal of tools,
including slashing its benchmark interest rate to near zero and ensuring credit
availability to businesses, households, and municipal governments. The Federal
Reserve's efforts largely insulated the financial system from the problems in
the economy, a significant difference from the financial crisis of 2007-2008.
Purchases of Treasury and agency mortgage-backed securities totaling $120
billion each month by the Federal Reserve commenced shortly after the pandemic
began. In November 2021, the Federal Reserve decided to taper its quantitative
easing (QE), winding down its bond purchases with its final open market purchase
conducted on March 9, 2022. Additionally, Federal fund rates, which have been at
zero lower bound since the pandemic began, increased 12 basis points in March
2022. Financial markets are anticipating an aggressive increase in interest
rates in 2022, with three to six hikes anticipated. Several factors prompting
the Federal Reserve to begin normalizing policy include: the strengthening
economy, the recent surge in inflation, higher inflation expectations, upward
trajectory of wages, reduced pandemic concerns and the strong housing market.
However, the military hostilities in Ukraine have now created uncertainty
regarding the world economy and the path of market interest rates, including the
aggressiveness of Federal Reserve interest rate increases.

The "American Rescue Plan," an economic relief fiscal measure of approximately
$1.9 trillion with an emphasis on vaccination, individual and small business
relief, was enacted early in 2021. Additionally, many of the climate-related
policies in the "Build Back Better" package may be passed into law later this
year to be paid for with higher corporate taxes and tax enforcement.

The federal government posted a deficit of $2.8 trillion in the 2021 fiscal year
and is expected to post a deficit of $1.2 trillion in the 2022 fiscal year.
While Congress has not been focused on deficits during the pandemic, it will
likely face pressure to address the mounting fiscal debt.

                                       34

Job

The national unemployment rate dropped from 3.8% in February 2022 to 3.6% in
March 2022, or 6 million unemployed individuals, compared to February 2020, just
prior to the beginning of the COVID-19 pandemic, at which time the unemployment
rate was 3.5% and unemployed persons numbered 5.7 million. The U.S. economy
added 431,000 jobs in March 2022 with overall job growth averaging 562,000 per
month in the first quarter of 2022, the same as the average monthly gain for
2021. The labor market remains tighter than headline unemployment data would
indicate as companies are still competing for qualified workers. Wages and
salaries grew 4.5% in 2021.

Across industries, the economic recovery remains uneven. Employment in the
financial activities, professional and business services, retail and
transportation and warehousing sectors are now above pre-pandemic levels;
however, leisure and entertainment, healthcare and manufacturing remain under
February 2020 employment levels. One of the largest employment sectors in the
country, leisure and hospitality, although showing job increases, remains
negatively impacted by the loss of 1.5 million jobs, or 8.7% of the workforce,
since February 2020. Most jobs in the leisure and hospitality industry cannot be
performed remotely, with many businesses closed or experiencing a sharp
reduction in business at the onset of the health and economic crises.

As of March 2022, the labor force participation rate (the share of working-age
Americans employed or actively looking for a job) was 62.4% which remains below
the February 2020 reported rate of 63.4%. The unemployment rate for the Midwest,
where the Company conducts most of its business, has decreased from 5.2% in
March 2021 to 3.5% in March 2022. Unemployment rates for March 2022 in the
states where the Company has a branch or loan production offices were Arizona at
3.3%, Arkansas at 3.1%, Colorado at 3.7%, Georgia at 3.1%, Illinois at 4.7%,
Iowa at 3.3%, Kansas at 2.5%, Minnesota at 2.5%, Missouri at 3.6%, Nebraska at
2.0%, Oklahoma at 2.7%, and Texas at 4.4%. Of the metropolitan areas in which
the Company does business, most are below the national unemployment rate of 3.6%
for March 2022. Chicago leads our markets with a higher unemployment rate of
4.5%, followed by St. Louis at 3.7% and Denver at 3.6% in March 2022.

Single-family housing

New home sales in the United States dropped 8.6% in March 2022 when compared to
February 2022, to a seasonally adjusted annual rate of 763,000 in March of 2022,
according to U.S. Census Bureau and Department of Housing and Urban Development
estimates.

The median sales price of new houses sold in March 2022 was $436,700, up from
$359,600 a year earlier. The average sales price in March 2022 of $523,900 was
up from $414,700 in March 2021. The inventory of new homes for sale, at an
estimated 406,000 at the end of March 2022, would support a 6.4 months' supply
at the current sales rate, up from 4.2 months' supply at the end of March 2021.

The housing market is beginning to feel the impact of sharply rising mortgage
rates and higher inflation on purchasing power. With rising mortgage rates, cash
sales made up a larger percentage of transactions, climbing to its highest share
since 2014.

Total existing-home sales dipped 2.7% from February 2022 to a seasonally
adjusted annual rate of 5.77 million in March 2022. Year-over-year, sales fell
4.5% (6.05 million in March 2021). There were 950,000 previously owned homes on
the market in March 2022, up 11.8% from February and down 9.5% from one year ago
(1.05 million). With slower demand, the inventory of unsold existing homes
increased to 590,000 as of the end of March 2022, which would support 2 months
at the monthly sales pace up from 1.7 months in February 2022 and down from 2.1
months in March 2021.

The median existing-home sales price as of March 2022 was $375,300, up 15% from
$326,300 at March 2021 as prices rose in each region. This marks 121 consecutive
months of year-over-year increases, the longest-running streak on record. Home
prices have consistently moved upward as supply remains tight; however, if and
when demand subsides, easy-profit gains and multiple offers can be expected to
decline. Properties typically remained on the market for 17 days in March 2022,
down from 18 days in February 2022 and 18 days in March 2021. 87% of homes sold
in March 2022 were on the market for less than a month. Year-over-year, prices
increased in every region of the United States, with the Midwest showing an
increase of 10.4%, with median prices increasing from $245,500 in March 2021 to
$271,000 in March 2022.

First-time buyers accounted for 30% of sales in March 2022compared to 29% of sales in February 2022 and down from 32% in March 2021.

According to Freddie Mac, the average commitment rate for a conventional 30-year fixed rate mortgage was 4.17% in March 2022against 3.76% in
February 2022. The average engagement rate for all of 2021 was 2.96%, compared to 3.11% for 2020.

                                       35

Multi-family housing and Commercial real estate

There has been unprecedented demand for apartments, with the vacancy rate
hitting historic lows at the end of 2021 and continuing into 2022. The overall
lack of available housing, both single-family and rental apartment units, has
pricing on a significant upward trajectory, resulting in a vacancy rate of 4.9%
for the first quarter of 2022. Rents nationally rose 11% in 2021 with the nation
absorbing 714,000 units in 2021, twice the annual average of the past five
years. With demand and rent growth indicators surging, investors have shown high
interest for apartment assets, creating a highly competitive acquisition
environment and driving the average national cap rate to an all-time low.

Our market areas reflected the following apartment vacancy levels as of March
31, 2022: Springfield, Missouri at 2.9%, St. Louis at 6.9%, Kansas City at 6.1%,
Minneapolis at 6.1%, Tulsa, Oklahoma at 6.1%, Dallas-Fort Worth at 6.1%, Chicago
at 5.7%, Atlanta at 6.5%, Phoenix at 6.2%, and Denver at 6.6%. Three of our
market areas, Dallas-Fort Worth, Phoenix and Atlanta, were in the top ten
metropolitan areas for current construction and 12 month deliveries to market.

The national office market is showing early signs of a recovery, but the sector
still has a long way to go before it reaches pre-pandemic levels of performance.
Remote and hybrid work structures instituted early on in the pandemic appear
here to stay, at least to an extent, and it is likely that office-using
companies will continue to reassess their physical footprints as their leases
roll over. Office-using employment has bounced back quicker than the average for
all employment sectors, and more office jobs could lead to stronger office
leasing. However, leasing volume is still below pre-pandemic norms, and the
amount of sublet space on the market remains near record highs. Furthermore, the
national office market is contending with a glut of newly vacated space and a
still-robust supply pipeline. These trends, combined with the looming prospect
of firms exploring more permanent remote and flexible work setups, may continue
to place upward pressure on the national office vacancy rate in the near term.
Rent growth is flat on a year-over-year basis, and it will remain difficult for
office owners to push asking rents until leasing activity returns to
pre-pandemic levels for an extended period of time. Despite a still uncertain
near-term outlook, office sales volume rebounded in the second half of 2021.

As of March 31, 2022, national office vacancy rates remained about the same at
12.3%, compared to December 31, 2021, while our market areas reflected the
following vacancy levels at March 31, 2022: Springfield, Missouri at 2.8%, St.
Louis at 9.0%, Kansas City at 9.5%, Minneapolis at 10.0%, Tulsa, Oklahoma at
12.2%, Dallas-Fort Worth at 17.6%, Chicago at 15.3%, Atlanta at 14.1% and Denver
at 14.4%.

The retail sector continued its positive momentum into first quarter of 2022, as
consumers drove continued improvement in the sector. Retail sales have
accelerated briskly since mid-2021, due to the significant increase in
consumers' disposable income resulting from pandemic-related government
transfers and strong wage growth. With additional funds at their disposal,
American consumers pushed brick and mortar retail sales to record levels in
2021. With sales sitting at record highs, some retailers have selectively turned
back to expansion mode. While demand for retail space is on the rise,
construction activity continues to fall. Just over 13 million square feet of
retail space was delivered during the first quarter of 2022, 80% of which was
pre-leased. Most recent construction activity has consisted of single-tenant
build-to-suits or smaller ground floor spaces in mixed-use developments. Thanks
to growing demand and minimal new supply, vacancy rates declined across most
retail segments in the first quarter of 2022, with exceptions still including
regional and super-regional malls. Rents increased at their fastest clip, 3.8%,
in over a decade during the period from March 31, 2021 to March 31, 2022. Retail
rent growth is forecast to accelerate over the coming quarters due to the
combination of a strong retail sales environment and continued rising demand for
space. Inflation expectations will weigh on the real rate of rental growth
though, likely keeping it in line with or slightly below the average growth rate
seen during the five years preceding the pandemic.

At March 31, 2022, national retail vacancy rates remained level at 4.5% while
our market areas reflected the following vacancy levels: Springfield, Missouri
at 3.3%, St. Louis at 6.0%, Kansas City at 5.0%, Minneapolis at 3.2%, Tulsa,
Oklahoma at 3.5%, Dallas-Fort Worth at 4.9%, Chicago at 5.9%, Atlanta at 4.2%,
Phoenix at 6.0% and Denver at 4.6%.

The U.S. industrial market is experiencing a record level of new logistics
facilities deliveries from late 2021 through the first quarter of 2022. The U.S.
has been in the midst of a historic boom in household spending on retail goods
(both online and in store), all of which need to be stored in logistics
properties across the country before reaching the end consumer. Record savings
accumulated during the pandemic and the strongest wage growth in more than 20
years will likely remain as tailwinds for elevated consumer spending over the
next several months; however, rising gas prices and inflation risk partially
eroding consumers' purchasing power, causing real goods spending to slow from
current levels. Signals are emerging that a gradual slowing in leasing and
absorption is approaching, which should cause rent growth to slow given the
active construction pipeline. Amazon announced early in 2022 that it would be
slowing growth in its distribution network from its recent breakneck pace.

                                       36

At March 31, 2022, national industrial vacancy rates sat at a record low of 4.1%
while our market areas reflected the following vacancy levels: Springfield,
Missouri at 1.4%, St. Louis at 2.9%, Kansas City at 4.4%, Minneapolis at 3.5%,
Tulsa, Oklahoma at 3.7%, Dallas-Fort Worth at 5.7%, Chicago at 4.7%, Atlanta at
4.0%, Phoenix at 4.6% and Denver at 5.2%.

Our management will continue to monitor regional, national, and global economic
indicators such as unemployment, GDP, housing starts and prices, commercial real
estate occupancy, absorption and rental rates, as these could significantly
affect customers in each of our market areas.

Impact of COVID-19 on our business and response

Great Southern continues to monitor and respond to the effects of the COVID 19
pandemic. As always, the health, safety and well-being of our customers,
associates and communities, while maintaining uninterrupted service, are the
Company's top priorities. Centers for Disease Control and Prevention (CDC)
guidelines, as well as directives from federal, state and local officials, are
being closely followed to make informed operational decisions, if necessary.

The Company continues to work diligently with its nearly 1,100 associates to
enforce the most current health, hygiene and social distancing practices. To
date, there have been no service disruptions or reductions in staffing.

As always, customers can conduct their banking business using our banking center
network, online and mobile banking services, ATMs, Telephone Banking, and online
account opening services. As health conditions in local markets dictate, Great
Southern banking center lobbies are open following social distancing and health
protocols. Great Southern continues to work with customers experiencing
hardships caused by the pandemic. As a resource to customers, a COVID-19
information center continues to be available on the Company's website,
www.GreatSouthernBank.com. General information about the Company's pandemic
response, how to receive assistance, and how to avoid COVID-19 scams and fraud
are included.

Impacts to Our Business Going Forward: The magnitude of the impact on the
Company of the COVID-19 pandemic continues to evolve and will ultimately depend
on the remaining length and severity of the economic downturn brought on by the
pandemic. Some positive economic signs have occurred in 2021 and early 2022,
such as lower unemployment rates, improving gross domestic product ("GDP")
levels and other measures of the economy and increased vaccination rates. Over
the previous two years, the COVID-19 pandemic has impacted the Company's
business in one or more of the following ways, among others.

Long-term, consistently low market interest rates have

? had a negative impact on our variable and fixed rate borrowings, resulting in

decrease in net interest income

? Certain fees for deposit and loan products have been waived or reduced for a period

of time

? Non-interest expenses increased due to the effects of COVID-19

pandemic, including cleaning costs, supplies, equipment and other items

? The halls of banking centers have been closed several times and may close again in

future periods if the pandemic situation worsens again

? Loan modifications have taken place

? A contraction in economic activity has reduced demand for our loans and for our

other products and services


Current COVID-19 infection rates are low in our markets and the CDC has relaxed
most restrictions that were previously in place. Our business is currently
operating normally, similar to operations prior to the onset of the COVID-19
pandemic. We continue to monitor infection rates and other health and economic
indicators to ensure we are prepared to respond to future challenges, should
they arise.

Paycheck Protection Program Loans

Great Southern has actively participated in the PPP through the SBA. In the
first round of the PPP, we originated approximately 1,600 PPP loans, totaling
approximately $121 million. SBA forgiveness was approved and processed, and full
repayment proceeds were received by us, for all of these PPP loans during 2021.
In the second round of the PPP, we funded approximately 1,650 PPP loans,
totaling approximately $58 million. As of March 31, 2022, full forgiveness
proceeds have been received by us from the SBA for 1,608 of these PPP loans,
totaling approximately $57 million.

                                       37

Great Southern received fees from the SBA for originating PPP loans based on the
amount of each loan. At March 31, 2022, remaining net deferred fees related to
PPP loans totaled $88,000, and we expect these remaining net deferred fees will
accrete to interest income during the second quarter of 2022. The fees, net of
origination costs, are deferred in accordance with standard accounting practices
and accreted to interest income on loans over the contractual life of each loan.
In the three months ended March 31, 2022 and 2021, Great Southern recorded
approximately $415,000 and $1.2 million, respectively, of net deferred fees
in
interest income on PPP loans.

General
The profitability of the Company and, more specifically, the profitability of
its primary subsidiary, the Bank, depend primarily on net interest income, as
well as provisions for credit losses and the level of non-interest income and
non-interest expense. Net interest income is the difference between the interest
income the Bank earns on its loans and investment portfolios, and the interest
it pays on interest-bearing liabilities, which consists mainly of interest paid
on deposits and borrowings. Net interest income is affected by the relative
amounts of interest-earning assets and interest-bearing liabilities and the
interest rates earned or paid on these balances. When interest-earning assets
approximate or exceed interest-bearing liabilities, any positive interest rate
spread will generate net interest income.

Great Southern's total assets decreased $75.7 million, or 1.4%, from $5.45
billion at December 31, 2021, to $5.37 billion at March 31, 2022. Details of the
current period changes in total assets are provided in the "Comparison of
Financial Condition at March 31, 2022 and December 31, 2021" section of this
Quarterly Report on Form 10-Q.

Loans. Net outstanding loans increased $104.0 million, or 2.5%, from $4.01
billion at December 31, 2021, to $4.11 billion at March 31, 2022. The increase
was primarily in other residential (multi-family) loans, commercial real estate
loans and one- to four family residential loans. These increases were partially
offset by a decrease in construction loans. As loan demand is affected by a
variety of factors, including general economic conditions, and because of the
competition we face and our focus on pricing discipline and credit quality, we
cannot be assured that our loan growth will match or exceed the average level of
growth achieved in prior years. The Company's strategy continues to be focused
on maintaining credit risk and interest rate risk at appropriate levels.

Recent growth has occurred in some loan types, primarily other residential
(multi-family) and commercial real estate, and in most of Great Southern's
primary lending locations, including Springfield, St. Louis, Kansas City, Des
Moines and Minneapolis, as well as our loan production offices in Atlanta,
Chicago, Dallas, Denver, Omaha and Tulsa. Certain minimum underwriting standards
and monitoring help assure the Company's portfolio quality. Great Southern's
loan committee reviews and approves all new loan originations in excess of
lender approval authorities. Generally, the Company considers commercial
construction, consumer, other residential (multi-family) and commercial real
estate loans to involve a higher degree of risk compared to some other types of
loans, such as first mortgage loans on one- to four-family, owner-occupied
residential properties. For other residential (multi-family), commercial real
estate, commercial business and construction loans, the credits are subject to
an analysis of the borrower's and guarantor's financial condition, credit
history, verification of liquid assets, collateral, market analysis and
repayment ability. It has been, and continues to be, Great Southern's practice
to verify information from potential borrowers regarding assets, income or
payment ability and credit ratings as applicable and as required by the
authority approving the loan. To minimize construction risk, projects are
monitored as construction draws are requested by comparison to budget and with
progress verified through property inspections. The geographic and product
diversity of collateral, equity requirements and limitations on speculative
construction projects help to mitigate overall risk in these loans. Underwriting
standards for all loans also include loan-to-value ratio limitations which vary
depending on collateral type, debt service coverage ratios or debt payment to
income ratio guidelines, where applicable, credit histories, use of guaranties
and other recommended terms relating to equity requirements, amortization, and
maturity. Consumer loans, other than home equity loans, are primarily secured by
new and used motor vehicles and these loans are also subject to certain minimum
underwriting standards to assure portfolio quality. In 2019, the Company decided
to discontinue indirect auto loan originations.

While our policy allows us to lend up to 95% of the appraised value on one-to
four-family residential properties, originations of loans with loan-to-value
ratios at that level are minimal. Private mortgage insurance is typically
required for loan amounts above the 80% level. Few exceptions occur and would be
based on analyses which determined minimal transactional risk to be involved. We
consider these lending practices to be consistent with or more conservative than
what we believe to be the norm for banks our size. At both March 31, 2022 and
December 31, 2021, 0.3% of our owner occupied one-to four-family residential
loans had loan-to-value ratios above 100% at origination. At both March 31, 2022
and December 31, 2021, an estimated 0.2% of total non-owner occupied one- to
four-family residential loans had loan-to-value ratios above 100% at
origination.

At March 31, 2022, TDRs totaled $3.7 million, or 0.1% of total loans, a decrease
of $121,000 from $3.9 million, or 0.1% of total loans, at December 31, 2021.
Concessions granted to borrowers experiencing financial difficulties may include
a reduction in the

                                       38

interest rate on the loan, payment extensions, forgiveness of principal,
forbearance or other actions intended to maximize collection. For TDRs occurring
during the three months ended March 31, 2022, none were restructured into
multiple new loans. For TDRs occurring during the year ended December 31, 2021,
one loan totaling $45,000 was restructured into multiple new loans. For further
information on TDRs, see Note 6 of the Notes to Consolidated Financial
Statements contained in this report.

The level of non-performing loans and foreclosed assets affects our net interest
income and net income. We generally do not accrue interest income on these loans
and do not recognize interest income until the loans are repaid or interest
payments have been made for a period of time sufficient to provide evidence of
performance on the loans. Generally, the higher the level of non-performing
assets, the greater the negative impact on interest income and net income.

The Company continues its preparation for discontinuation of use of interest
rates such as LIBOR. LIBOR is a benchmark interest rate referenced in a variety
of agreements used by the Company, but by far the most significant area impacted
by LIBOR is related to commercial and residential mortgage loans. After 2021,
certain LIBOR rates may no longer be published and it is expected to eventually
be discontinued as a reference rate by June 2023. Other interest rates used
globally could also be discontinued for similar reasons.

The Company has been regularly monitoring its portfolio of loans tied to LIBOR
since 2019, with specific groups of loans identified. The Company implemented
robust LIBOR fallback language for all commercial loan transactions beginning
near the end of 2018, with such language utilized for all new originations and
renewed/modified commercial loans since that time. The Company is particularly
monitoring the remaining group of loans that were originated prior to the fourth
quarter of 2018, and have not been renewed or modified since that time. At March
31, 2022, this represented approximately 47 commercial loans totaling
approximately $122 million; however, only 26 of those loans, totaling $22
million, mature after June 2023 (the date upon which the LIBOR indices used by
the Company are expected to no longer be available). The Company also has a
portfolio of residential mortgage loans tied to LIBOR indices with standard
index replacement language included (approximately $410 million at March 31,
2022), and that portfolio is being monitored for potential changes that may be
facilitated by the mortgage industry. As described, the vast majority of the
loan portfolio tied to LIBOR now includes robust LIBOR replacement language
which identifies appropriate "trigger" events for the cessation of LIBOR and the
steps that the Company will take upon the occurrence of one or more of those
events, including adjustments to any rate margin to ensure that the replacement
interest rate on the loan is substantially similar to the previous LIBOR-based
rate.

Available-for-sale Securities. In the three months ended March 31, 2022,
available-for-sale securities decreased $39.7 million, or 7.9%, from $501.0
million at December 31, 2021, to $461.4 million at March 31, 2022. The decrease
was primarily due to $226.5 million in available-for-sale securities being
transferred to held-to-maturity during the period and calls of municipal
securities and normal monthly payments received related to the portfolio of U.S.
Government agency mortgage-backed securities and collateralized mortgage
obligations. This was partially offset by the purchase of U.S. Government agency
fixed-rate single-family and multi-family mortgage-backed securities and
collateralized mortgage obligations. The Company used excess liquid funds and
loan repayments to fund this increase in investment securities. In determining
securities that were elected to be transferred to the held-to-maturity category,
the Company reviewed all of its investment securities purchased prior to 2022
and determined that certain of those securities, for various reasons, would
likely be held to their maturity or full repayment prior to contractual
maturity.

Held-to-maturity Securities. In the three months ended March 31, 2022, as noted
above, available-for-sale securities of $226.5 million were transferred to
held-to-maturity. This transfer included $220.2 million of mortgage-backed
securities and collateralized mortgage obligations and $6.3 million in municipal
securities.

Deposits. The Company attracts deposit accounts through its retail branch
network, correspondent banking and corporate services areas, and brokered
deposits. The Company then utilizes these deposit funds, along with FHLBank
advances and other borrowings, to meet loan demand or otherwise fund its
activities. In the three months ended March 31, 2022, total deposit balances
decreased $62.8 million, or 1.4%. Compared to December 31, 2021, transaction
account balances remained flat at $3.59 billion at March 31, 2022, while retail
certificates of deposit decreased $63.0 million, or 7.1%, to $830.7 million at
March 31, 2022. Increases in transaction accounts were primarily a result of
increases in various money market accounts and NOW deposit accounts, offset by
decreases in non-interest-bearing accounts. Retail time deposits decreased due
to a decrease in retail certificates generated through the banking center
network and decreases in national time deposits initiated through internet
channels. Time deposits initiated through internet channels experienced a
planned decrease due to increases in overall liquidity levels and to reduce the
Company's cost of funds. Brokered deposits were $67.4 million at both March 31,
2022 and December 31, 2021.

Our deposit balances may fluctuate depending on customer preferences and our
relative need for funding. We do not consider our retail certificates of deposit
to be guaranteed long-term funding because customers can withdraw their funds at
any time with minimal interest penalty. When loan demand trends upward, we can
increase rates paid on deposits to attract more deposits and utilize brokered

                                       39

deposits to provide additional funding. The level of competition for deposits in
our markets is high. It is our goal to gain deposit market share, particularly
checking accounts, in our branch footprint. To accomplish this goal, increasing
rates to attract deposits may be necessary, which could negatively impact the
Company's net interest margin.

Our ability to fund growth in future periods may also depend on our ability to
continue to access brokered deposits and FHLBank advances. In times when our
loan demand has outpaced our generation of new deposits, we have utilized
brokered deposits and FHLBank advances to fund these loans. These funding
sources have been attractive to us because we can create either fixed or
variable rate funding, as desired, which more closely matches the interest rate
nature of much of our loan portfolio. It also gives us greater flexibility in
increasing or decreasing the duration of our funding. While we do not currently
anticipate that our ability to access these sources will be reduced or
eliminated in future periods, if this should happen, the limitation on our
ability to fund additional loans could have a material adverse effect on our
business, financial condition and results of operations.

Securities sold under reverse repurchase agreements with customers. Securities
sold under reverse repurchase agreements with customers increased $10.9 million
from $137.1 million at December 31, 2021 to $148.0 million at March 31, 2022.
These balances fluctuate over time based on customer demand for this product.

Net Interest Income and Interest Rate Risk Management. Our net interest income
may be affected positively or negatively by changes in market interest rates. A
large portion of our loan portfolio is tied to one-month LIBOR, three-month
LIBOR or the "prime rate" and adjusts immediately or shortly after the index
rate adjusts (subject to the effect of contractual interest rate floors on some
of the loans, which are discussed below). We monitor our sensitivity to interest
rate changes on an ongoing basis (see "Item 3. Quantitative and Qualitative
Disclosures About Market Risk").

The current level and shape of the interest rate yield curve poses challenges
for interest rate risk management. Prior to its increase of 0.25% on December
16, 2015, the FRB had last changed interest rates on December 16, 2008. This was
the first rate increase since September 29, 2006. The FRB also implemented rate
change increases of 0.25% on eight additional occasions beginning December 14,
2016 and through December 31, 2018, with the Federal Funds rate reaching as high
as 2.50%. After December 2018, the FRB paused its rate increases and, in July,
September and October 2019, implemented rate decreases of 0.25% on each of those
occasions. At December 31, 2019, the Federal Funds rate stood at 1.75%. In
response to the COVID-19 pandemic, the FRB decreased interest rates on two
occasions in March 2020, a 0.50% decrease on March 3 and a 1.00% decrease on
March 16. In March 2022, the FRB increased interest rates 0.25%. At March 31,
2022, the Federal Funds rate stood at 0.50%. Financial markets are anticipating
an aggressive increase in interest rates in 2022, with up to 2.00% of cumulative
rate hikes currently anticipated. A substantial portion of Great Southern's loan
portfolio ($1.31 billion at March 31, 2022) is tied to the one-month or
three-month LIBOR index and will be subject to adjustment at least once within
90 days after March 31, 2022. Of these loans, $1.30 billion had interest rate
floors. Great Southern also has a portfolio of loans ($613 million at March 31,
2022) tied to a "prime rate" of interest and will adjust immediately or within
90 days with changes to the "prime rate" of interest. Of these loans, $592
million had interest rate floors at various rates. At March 31, 2022, $800
million in LIBOR and "prime rate" loans were at their floor rate. If interest
rates were to increase 50 basis points, approximately $460 million of these
loans would move above their floor rate.

A rate cut by the FRB generally would have an anticipated immediate negative
impact on the Company's net interest income due to the large total balance of
loans tied to the one-month or three-month LIBOR index or the "prime rate" index
and will be subject to adjustment at least once within 90 days or loans which
generally adjust immediately as the Federal Funds rate adjusts. Interest rate
floors may at least partially mitigate the negative impact of interest rate
decreases. Loans at their floor rates are, however, subject to the risk that
borrowers will seek to refinance elsewhere at the lower market rate. Because the
Federal Funds rate is again very low, there may also be a negative impact on the
Company's net interest income due to the Company's inability to significantly
lower its funding costs in the current competitive rate environment, although
interest rates on assets may decline further. Conversely, market interest rate
increases would normally result in increased interest rates on our LIBOR-based
and prime-based loans.

As of March 31, 2022, Great Southern's interest rate risk models indicate that,
generally, rising interest rates are expected to have a positive impact on the
Company's net interest income, while declining interest rates are expected to
have a negative impact on net interest income. We model various interest rate
scenarios for rising and falling rates, including both parallel and non-parallel
shifts in rates. The results of our modeling indicate that net interest income
is not likely to be significantly affected either positively or negatively in
the first twelve months following relatively minor changes in market interest
rates because our portfolios are relatively well-matched in a twelve-month
horizon. In a situation where market interest rates increase significantly in a
short period of time, our net interest margin increase may be more pronounced in
the very near term (first one to three months), due to fairly rapid increases in
LIBOR interest rates and "prime" interest rates. In a situation where market
interest rates decrease significantly in a short period of time, as they did in
March 2020, our net interest margin decrease may be more pronounced in the very
near term (first one to three months), due to fairly rapid decreases in LIBOR
interest rates and "prime" interest rates. In the subsequent months we expect
that the net interest margin would stabilize and begin to improve, as renewal
interest rates on maturing time deposits are expected to decrease

                                       40

compared to the current rates paid on those products. During 2020, we did
experience some compression of our net interest margin percentage due to 2.25%
of Federal Fund rate cuts during the nine month period of July 2019 through
March 2020. Margin compression primarily resulted from changes in the asset mix,
mainly the addition of lower-yielding assets and the issuance of subordinated
notes during 2020 and the net interest margin remained lower than our historical
average in 2021. LIBOR interest rates decreased significantly in 2020 and
remained very low in 2021, putting pressure on loan yields, and strong pricing
competition for loans and deposits remains in most of our markets. For further
discussion of the processes used to manage our exposure to interest rate risk,
see "Item 3. Quantitative and Qualitative Disclosures About Market Risk - How We
Measure the Risks to Us Associated with Interest Rate Changes."

Non-Interest Income and Non-Interest (Operating) Expenses. The Company's
profitability is also affected by the level of its non-interest income and
operating expenses. Non-interest income consists primarily of service charges
and ATM fees, POS interchange fees, late charges and prepayment fees on loans,
gains on sales of loans and available-for-sale investments and other general
operating income. Non-interest income may also be affected by the Company's
interest rate derivative activities, if the Company chooses to implement
derivatives. See Note 16 "Derivatives and Hedging Activities" in the Notes to
Consolidated Financial Statements included in this report.

Operating expenses consist primarily of salaries and employee benefits,
occupancy-related expenses, expenses related to foreclosed assets, postage, FDIC
deposit insurance, advertising and public relations, telephone, professional
fees, office expenses and other general operating expenses. Details of the
current period changes in non-interest income and non-interest expense are
provided in the "Results of Operations and Comparison for the Three Months Ended
March 31, 2022 and 2021" section of this report.

Effect of Federal Laws and Regulations

General. Federal legislation and regulation significantly affect the operations
of the Company and the Bank, and have increased competition among commercial
banks, savings institutions, mortgage banking enterprises and other financial
institutions. In particular, the capital requirements and operations of
regulated banking organizations such as the Company and the Bank have been and
will be subject to changes in applicable statutes and regulations from time to
time, which changes could, under certain circumstances, adversely affect the
Company or the Bank.

Dodd-Frank Act. In 2010, sweeping financial regulatory reform legislation
entitled the "Dodd-Frank Wall Street Reform and Consumer Protection Act" (the
"Dodd-Frank Act") was signed into law. The Dodd-Frank Act implemented
far-reaching changes across the financial regulatory landscape. Certain aspects
of the Dodd-Frank Act have been affected by the more recently enacted Economic
Growth Act, as defined and discussed below under "-Economic Growth Act."

Capital Rules. The federal banking agencies have adopted regulatory capital
rules that substantially amend the risk-based capital rules applicable to the
Bank and the Company. The rules implement the "Basel III" regulatory capital
reforms and changes required by the Dodd-Frank Act. "Basel III" refers to
various documents released by the Basel Committee on Banking Supervision. For
the Company and the Bank, the general effective date of the rules was January 1,
2015, and, for certain provisions, various phase-in periods and later effective
dates apply. The chief features of these rules are summarized below.

The rules refine the definitions of what constitutes regulatory capital and add
a new regulatory capital element, common equity Tier 1 capital. The minimum
capital ratios are (i) a common equity Tier 1 ("CET1") risk-based capital ratio
of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based
capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4%. In addition to the
minimum capital ratios, the rules include a capital conservation buffer, under
which a banking organization must have CET1 more than 2.5% above each of its
minimum risk-based capital ratios in order to avoid restrictions on paying
dividends, repurchasing shares, and paying certain discretionary bonuses. The
capital conservation buffer requirement began phasing in on January 1, 2016 when
a buffer greater than 0.625% of risk-weighted assets was required, which amount
increased an equal amount each year until the buffer requirement of greater than
2.5% of risk-weighted assets became fully implemented on January 1, 2019.

Effective January 1, 2015, these rules also revised the prompt corrective action
framework, which is designed to place restrictions on insured depository
institutions if their capital levels show signs of weakness. Under the revised
prompt corrective action requirements, insured depository institutions are
required to meet the following in order to qualify as "well capitalized:" (i) a
common equity Tier 1 risk-based capital ratio of at least 6.5%, (ii) a Tier 1
risk-based capital ratio of at least 8%, (iii) a total risk-based capital ratio
of at least 10% and (iv) a Tier 1 leverage ratio of 5%, and must not be subject
to an order, agreement or directive mandating a specific capital level.

Economic Growth Act. In May 2018, the Economic Growth, Regulatory Relief, and
Consumer Protection Act (the "Economic Growth Act"), was enacted to modify or
eliminate certain financial reform rules and regulations, including some
implemented under the Dodd-

                                       41

Frank Act. While the Economic Growth Act maintains most of the regulatory
structure established by the Dodd-Frank Act, it amends certain aspects of the
regulatory framework for small depository institutions with assets of less than
$10 billion and for large banks with assets of more than $50 billion. Many of
these amendments could result in meaningful regulatory changes.

The Economic Growth Act, among other matters, expands the definition of
qualified mortgages which may be held by a financial institution and simplifies
the regulatory capital rules for financial institutions and their holding
companies with total consolidated assets of less than $10 billion by instructing
the federal banking regulators to establish a single "Community Bank Leverage
Ratio" ("CBLR") of between 8 and 10 percent. Any qualifying depository
institution or its holding company that exceeds the CBLR will be considered to
have met generally applicable leverage and risk-based regulatory capital
requirements and any qualifying depository institution that exceeds the new
ratio will be considered "well-capitalized" under the prompt corrective action
rules. Effective January 1, 2020, the CBLR was 9.0%. In April 2020, pursuant to
the CARES Act, the federal bank regulatory agencies announced the issuance of
two interim final rules, effective immediately, to provide temporary relief to
community banking organizations. Under the interim final rules, the CBLR
requirement was a minimum of 8.5% for calendar year 2021, and is 9% thereafter.
The Company and the Bank have chosen to not utilize the new CBLR due to the
Company's size and complexity, including its commercial real estate and
construction lending concentrations and significant off-balance sheet funding
commitments.

In addition, the Economic Growth Act provides regulatory relief in the areas of review cycles, call reports, mortgage disclosures, and risk weightings for certain high-risk commercial real estate loans.

Commercial initiatives

Great Southern continues to monitor and respond to the effects of the COVID-19
pandemic. As always, the health, safety and well-being of our customers,
associates and communities, while maintaining uninterrupted service, are the
Company's top priorities. Centers for Disease Control and Prevention (CDC)
guidelines, as well as directives from federal, state and local officials, are
being followed to make informed operational decisions, if necessary.

The Company's banking center network continues to be optimized. During 2022, the
high-performing banking center in Kimberling City, Missouri, will be replaced
with a newly constructed building on the same property at 14309 Highway 13.
Customers will be served in a temporary building on the property during
construction. The new office is expected to open in the fourth quarter of 2022.
Including this office, the Company operates three banking centers in the Branson
Tri-Lakes area of southwest Missouri.

In February 2022, the Company opened a new commercial loan production office
(LPO) in Phoenix, Arizona, which represents the seventh LPO in the Company's
franchise. A local and highly-experienced lender was hired to manage the office.
The new LPO provides a wide variety of commercial lending services, including
commercial real estate loans for new and existing properties and commercial
construction loans. The Company expects to continue looking for opportunities to
open additional LPOs in other markets during 2022.

The Company announced that its 2022 Annual Meeting of Stockholders, to be held
at 10 a.m. Central Time on May 11, 2022, will be a virtual meeting over the
internet and will not be held at a physical location. Stockholders will be able
to attend the Annual Meeting via a live webcast. Holders of record of Great
Southern Bancorp, Inc. common stock at the close of business on the record date,
March 2, 2022, may vote during the live webcast of the Annual Meeting or by
proxy. Please see the Company's Notice of Annual Meeting and Proxy Statement
available on the Company's website, www.GreatSouthernBank.com, (click "About"
then "Investor Relations") for additional information about the Annual Meeting.

Comparison of the financial situation at March 31, 2022 and December 31, 2021

During the three months ended March 31, 2022, the Company's total assets
decreased by $75.7 million to $5.37 billion. The decrease was primarily in cash
equivalents, and was partially offset by an increase in loans and investment
securities.

Cash and cash equivalents were $353.0 million at March 31, 2022, a decrease of
$364.2 million, or 50.8%, from $717.3 million at December 31, 2021. Excess funds
held at the Federal Reserve Bank at December 31, 2021 were primarily the result
of increases in net loan repayments throughout 2021. In 2022, these excess funds
were used to fund the purchase of new investment securities and to fund loan
originations.

The Company's available-for-sale securities decreased $39.7 million, or 7.9%,
compared to December 31, 2021. The decrease was primarily due to the transfer of
$226.5 million in available-for-sale securities to held-to-maturity during the
period and by calls of municipal securities and normal monthly payments received
related to the portfolio of mortgage-backed securities and collateralized
mortgage obligations. This was mostly offset by the purchase of U.S. Government
agency fixed-rate single-family or multi-family

                                       42

mortgage-backed securities and collateralized mortgage obligations. The Company
used excess funds held at the Federal Reserve Bank and loan repayments to fund
this increase in investment securities. The available-for-sale securities
portfolio was 8.6% and 9.2% of total assets at March 31, 2022 and December 31,
2021, respectively.

The transfer of $226.5 million in available-for-sale securities to
held-to-maturity included $220.2 million of mortgage-backed securities and
collateralized mortgage obligations and $6.3 million in municipal securities. In
determining securities that were elected to be transferred to the
held-to-maturity category, the Company reviewed all of its investment securities
purchased prior to 2022 and determined that certain of those securities, for
various reasons, would likely be held to their maturity or full repayment prior
to contractual maturity. The held-to-maturity securities portfolio was 4.2% of
total assets at March 31, 2022.

Net loans increased $104.0 million from December 31, 2021, to $4.11 billion at
March 31, 2022. This increase was primarily in other residential (multi-family)
loans ($152 million increase), commercial real estate loans ($82 million
increase) and one- to four-family residential loans ($51 million increase).
These increases were partially offset by a decrease in construction loans ($181
million decrease). Loan origination volume in the three months ended March 31,
2022 was similar to loan origination volume that occurred in 2020 and 2021.

Total liabilities decreased $41.5 million, from $4.83 billion at December 31,
2021 to $4.79 billion at March 31, 2022. The decrease was primarily attributable
to a reduction in total deposits, primarily time deposits. Time deposits
initiated through internet channels experienced a planned decrease due to
increases in overall liquidity levels and to reduce the Company's cost of funds.

Total deposits decreased $62.8 million, or 1.4%, to $4.49 billion at March 31,
2022. Transaction account balances were flat at $3.59 billion at March 31, 2022,
while retail certificates of deposit decreased $63.0 million compared to
December 31, 2021, to $830.7 million at March 31, 2022. Changes in transaction
account balances were primarily a result of increases in NOW deposit accounts
and money market accounts, offset by decreases in IntraFi Network Reciprocal
Deposits and non-interest-bearing checking accounts. Total interest-bearing
checking accounts increased $33.8 million while demand deposit accounts
decreased $33.5 million. Customer retail time deposits initiated through our
banking center network decreased $15.4 million and time deposits initiated
through our national internet network decreased $44.7 million. Customer deposits
at March 31, 2022 and December 31, 2021 totaling $38.9 million and $41.7
million, respectively, were part of the IntraFi Network Deposits program, which
allows customers to maintain balances in an insured manner that would otherwise
exceed the FDIC deposit insurance limit. Brokered deposits were $67.4 million at
both March 31, 2022 and December 31, 2021.

Securities sold under reverse repurchase agreements with customers increased
$10.9 million from $137.1 million at December 31, 2021 to $148.0 million at
March 31, 2022. These balances fluctuate over time based on customer demand for
this product.

Total stockholders' equity decreased $34.2 million, from $616.8 million at
December 31, 2021 to $582.6 million at March 31, 2022. Accumulated other
comprehensive income decreased $24.1 million during the three months ended March
31, 2022, primarily due to decreases in the fair value of available-for-sale
investment securities. Stockholders' equity also decreased due to repurchases of
the Company's common stock totaling $25.3 million and dividends declared on
common stock of $4.6 million. The Company recorded net income of $17.0 million
for the three months ended March 31, 2022. In addition, stockholders' equity
increased $2.8 million due to stock option exercises.

Results of operations and comparison for the three months ended March 31, 2022
and 2021

General

Net income was $17.0 million for the three months ended March 31, 2022 compared
to $18.9 million for the three months ended March 31, 2021. This decrease of
$1.9 million, or 10.0%, was primarily due to an increase in noninterest expense
of $947,000, or 3.1%, a decrease in net interest income of $823,000, or 1.9%, a
decrease in noninterest income of $560,000, or 5.8%, and a smaller negative
provision for credit losses on loans and unfunded commitments of $181,000, or
48.4%, partially offset by a decrease in income tax expense of $630,000, or
12.6%.

Total interest income

Total interest income decreased $4.0 million, or 7.8%, during the three months
ended March 31, 2022 compared to the three months ended March 31, 2021. The
decrease was due to a $4.6 million decrease in interest income on loans,
partially offset by a $684,000 increase in interest income on investment
securities and other interest-earning assets. Interest income on loans decreased
for the three months ended March 31, 2022 compared to the same period in 2021,
primarily due to lower average loan balances, combined with lower average rates
of interest. Interest income from investment securities and other
interest-earning assets increased during the three

                                       43

months ended March 31, 2022 compared to the same period in 2021, primarily due to higher average balances of investment securities and other interest-earning assets, partially offset by lower average interest rates on investment securities.

Interest Income – Loans

During the three months ended March 31, 2022 compared to the three months ended
March 31, 2021, interest income on loans decreased $3.0 million as the result of
lower average loan balances, which decreased from $4.41 billion during the three
months ended March 31, 2021, to $4.13 billion during the three months ended
March 31, 2022. The lower average balances were primarily due to higher loan
repayments during 2021. Interest income on loans also decreased $1.7 million as
a result of lower average interest rates on loans. The average yield on loans
decreased from 4.39% during the three months ended March 31, 2021, to 4.23%
during the three months ended March 31, 2022. This decrease was primarily due to
decreased yields in most loan categories as some loans with higher rates
refinanced or repaid as a result of the sale of the financed project. In
addition, some new loans originated after March 31, 2021, had an average
contractual interest rate that was less than the average contractual interest
rate for the portfolio at the time.

Additionally, the Company's net interest income included accretion of net
deferred fees related to PPP loans originated in 2020 and 2021. The amount of
net deferred fees recognized in interest income was $416,000 in the three months
ended March 31, 2022 compared to $1.2 million in the three months ended March
31, 2021 and $1.6 million in the three months ended December 31, 2021. At March
31, 2022, remaining net deferred fees related to PPP loans was $88,000.

In October 2018, the Company entered into an interest rate swap transaction as
part of its ongoing interest rate management strategies to hedge the risk of its
floating rate loans. The notional amount of the swap was $400 million with a
contractual termination date in October 2025. As previously disclosed by the
Company, in March 2020, the Company and its swap counterparty mutually agreed to
terminate the $400 million interest rate swap prior to its contractual maturity.
The Company received a payment of $45.9 million from its swap counterparty as a
result of this termination. This $45.9 million, less the accrued to date
interest portion and net of deferred income taxes, is reflected in the Company's
stockholders' equity as Accumulated Other Comprehensive Income and is being
accreted to interest income on loans monthly through the original contractual
termination date of October 6, 2025. This has the effect of reducing Accumulated
Other Comprehensive Income and increasing Net Interest Income and Retained
Earnings over the periods. The Company recorded interest income related to this
terminated interest rate swap of $2.0 million in each of the three months ended
March 31, 2022 and 2021. The Company currently expects to have a sufficient
amount of eligible variable rate loans to continue to accrete this interest
income ratably in future periods. If this expectation changes and the amount of
eligible variable rate loans decreases significantly, the Company may be
required to recognize this interest income more rapidly.

In February 2022, the Company entered into an interest rate swap transaction as
part of its ongoing interest rate management strategies to hedge the risk of its
floating rate loans. The notional amount of the swap is $300 million with an
effective date of March 1, 2022 and a termination date of March 1, 2024. Under
the terms of the swap, the Company will receive a fixed rate of interest of
1.6725% and will pay a floating rate of interest equal to one-month USD-LIBOR
(or the equivalent replacement rate if USD-LIBOR rate is not available). The
floating rate resets monthly and net settlements of interest due to/from the
counterparty also occur monthly. The initial floating rate of interest was set
at 0.2414%. To the extent that the fixed rate of interest continues to exceed
one-month USD-LIBOR, the Company will receive net interest settlements, which
will be recorded as loan interest income. If one-month USD-LIBOR exceeds the
fixed rate of interest in future periods, the Company will be required to pay
net settlements to the counterparty and will record those net payments as a
reduction of interest income on loans. The Company recorded loan interest income
related to this swap transaction of $370,000 in the three months ended March 31,
2022.

Interest income – Investments and other interest-earning assets

Interest income on investments increased $593,000 in the three months ended
March 31, 2022 compared to the three months ended March 31, 2021. Interest
income increased $770,000 as a result of an increase in average balances from
$414.7 million during the three months ended March 31, 2021, to $534.0 million
during the three months ended March 31, 2022. Average balances of securities
increased primarily due to purchases of agency multi-family mortgage-backed
securities which have a fixed rate of interest with expected lives of four to
ten years. These purchased securities fit with the Company's current
asset/liability management strategies. Partially offsetting that increase,
interest income decreased $177,000 as a result of lower average interest rates
from 2.75% during the three months ended March 31, 2021, to 2.59% during the
three month period ended March 31, 2022.

Interest income on other interest-earning assets increased $91,000 in the three
months ended March 31, 2022 compared to the three months ended March 31, 2021.
Interest income increased $80,000 as a result of higher average interest rates
from 0.10% during the three months ended March 31, 2021, to 0.18% during the
three month period ended March 31, 2022. Interest income increased $11,000 as a
result of an increase in average balances from $419.4 million during the three
months ended March 31, 2021, to $458.6 million during the three months ended
March 31, 2022. The increase in the average interest rates was due to the
increase in the rate

                                       44

paid out of funds held in Federal Reserve Bank. This rate was increased in March 2022 along with the increase in the Federal Funds target interest rate.

Total interest expense

Total interest expense decreased $3.1 million, or 47.9%, during the three months
ended March 31, 2022, when compared with the three months ended March 31, 2021,
due to a decrease in interest expense on deposits of $2.0 million, or 48.5% and
a decrease in interest expense on subordinated notes of $1.1 million, or 49.8%.

Interest charges – Deposits

Interest expense on demand deposits decreased $512,000 due to average rates of
interest that decreased from 0.22% in the three months ended March 31, 2021 to
0.13% in the three months ended March 31, 2022. Interest rates paid on demand
deposits were significantly lower in the 2022 period due to significant
reductions in the federal funds rate of interest and other market interest rates
since 2020. Partially offsetting this decrease, interest expense on demand
deposits increased $95,000, due to an increase in average balances from $2.19
billion during the three months ended March 31, 2021 to $2.38 billion during the
three months ended March 31, 2022. The Company experienced increased balances in
various types of money market accounts and certain types of NOW accounts.

Interest expense on time deposits decreased $892,000 as a result of a decrease
in average rates of interest from 0.94% during the three months ended March 31,
2021, to 0.61% during the three months ended March 31, 2022. Interest expense on
time deposits also decreased $740,000 due to a decrease in average balances of
time deposits from $1.31 billion during the three months ended March 31, 2021 to
$931.1 million in the three months ended March 31, 2022. A large portion of the
Company's certificate of deposit portfolio matures within six to twelve months
and therefore reprices fairly quickly; this is consistent with the portfolio
over the past several years. Older certificates of deposit that renewed or were
replaced with new deposits generally resulted in the Company paying a lower rate
of interest due to market interest rate decreases throughout 2021 with rates
only beginning to increase minimally during the three months ended March 31,
2022 due to increases in the Federal Funds rate. The decrease in average
balances of time deposits was a result of decreases in retail customer time
deposits obtained through the banking center network and retail customer time
deposits obtained through on-line channels. On-line channel deposits were
actively reduced by the Company during 2021 and 2022 as other deposit sources
increased.

Interest charges – FHLBank Advances; Short-term borrowings, repurchase agreements and other interest-bearing liabilities; Subordinated debentures issued to capital trusts and subordinated notes

Advances from FHLBank and overnight borrowings from FHLBank were not utilized during the quarter ended March 31, 2022 and 2021.

Interest expense on repurchase agreements increased $1,000 during the three
months ended March 31, 2022 when compared to the three months ended March 31,
2021. The average rate of interest was 0.03% for both the three months ended
March 31, 2022 and the three months ended March 31, 2021. The average balance of
repurchase agreements decreased $16.2 million from $144.5 million in the three
months ended March 31, 2022 to $128.3 million in the three months ended March
31, 2022, which was due to changes in customers' need for this product, which
can fluctuate.

Interest expense on short-term borrowings and other interest-bearing liabilities
increased $1,000 during the three months ended March 31, 2022 when compared to
the three months ended March 31, 2021. The average rate of interest was 0.08%
for the three months ended March 31, 2022, compared to 0.00% for the three
months ended March 31, 2021. The average balance of short-term borrowings and
other interest-bearing liabilities increased $1.9 million from $1.7 million in
the three months ended March 31, 2021 to $3.6 million in the three months ended
March 31, 2022, which was primarily due to cash collateral provided to the
Company from one of its derivative counterparties to satisfy collateral pledging
requirements.

During the three months ended March 31, 2022, compared to the three months ended
March 31, 2021, interest expense on subordinated debentures issued to capital
trusts increased $5,000 due to higher average interest rates. The average
interest rate was 1.86% in the three months ended March 31, 2022 compared to
1.78% in the three months ended March 31, 2021. The subordinated debentures are
variable-rate debentures which bear interest at an average rate of three-month
LIBOR plus 1.60%, adjusting quarterly, which was 1.92% at March 31, 2022. There
was no change in the average balance of the subordinated debentures between the
2021 and 2022 periods.

In August 2016, the Company issued $75.0 million of 5.25% fixed-to-floating rate
subordinated notes due August 15, 2026. The notes were sold at par, resulting in
net proceeds, after underwriting discounts and commissions and other issuance
costs, of approximately

                                       45

$73.5 million. In June 2020, the Company issued $75.0 million of 5.50%
fixed-to-floating rate subordinated notes due June 15, 2030. The notes were sold
at par, resulting in net proceeds, after underwriting discounts and commissions
and other issuance costs, of approximately $73.5 million. In both cases, these
issuance costs are amortized over the expected life of the notes, which is five
years from the issuance date, impacting the overall interest expense on the
notes. On August 15, 2021, the Company completed the redemption of $75.0 million
aggregate principal amount of its 5.25% subordinated notes due August 15, 2026.
The notes were redeemed for cash by the Company at 100% of their principal
amount, plus accrued and unpaid interest. During the three months ended March
31, 2022, compared to the three months ended March 31, 2021, interest expense on
subordinated notes decreased $1.1 million due to lower average balances during
the three months ended March 31, 2022 resulting from the redemption of the 5.25%
subordinated notes due August 15, 2026. The average balance of subordinated
notes was $74.0 million in the three months ended March 31, 2022 compared to
$148.5 million in the three months ended March 31, 2021. Interest expense on
subordinated notes increased $18,000 due to slightly higher weighted average
interest rates. The average interest rate was 6.06% in the three months ended
March 31, 2022 compared to 6.01% in the three months ended March 31, 2021.

Net interest income

Net interest income for the three months ended March 31, 2022 decreased $823,000
to $43.3 million compared to $44.1 million for the three months ended March 31,
2021. Net interest margin was 3.43% in the three months ended March 31, 2022,
compared to 3.41% in the three months ended March 31, 2021, an increase of two
basis points, or 0.6%. In the 2021 period compared to the 2022 period, the
Company recorded a higher amount of interest income related to net deferred fees
on PPP loans.

The Company's overall average interest rate spread increased eight basis points,
or 2.5%, from 3.23% during the three months ended March 31, 2021 to 3.31% during
the three months ended March 31, 2022. The increase was due to a 30 basis point
decrease in the weighted average rate paid on interest-bearing liabilities,
partially offset by a 22 basis point decrease in the weighted average yield on
interest-earning assets. In comparing the two periods, the yield on loans
decreased 16 basis points, the yield on investment securities decreased 16 basis
points and the yield on other interest-earning assets increased eight basis
points. The rate paid on deposits decreased 22 basis points, the rate paid on
subordinated debentures issued to capital trusts increased eight basis points,
and the rate paid on subordinated notes increased five basis points.

For more information on the components of net interest income, see the “Average Balances, Interest Rates and Yields” tables in this Quarterly Report on Form 10-Q.

Allowance and Provision for Credit Losses

The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic
326): Measurement of Credit Losses on Financial Instruments, effective January
1, 2021. The CECL methodology replaces the incurred loss methodology with a
lifetime "expected credit loss" measurement objective for loans,
held-to-maturity debt securities and other receivables measured at amortized
cost at the time the financial asset is originated or acquired. This standard
requires the consideration of historical loss experience and current conditions
adjusted for reasonable and supportable economic forecasts.

Management estimates the allowance balance using relevant available information,
from internal and external sources, relating to past events, current conditions,
and reasonable and supportable forecasts. Historical credit loss experience
provides the basis for the estimation of expected credit losses. Adjustments to
historical loss information are made for differences in current loan-specific
risk characteristics such as differences in underwriting standards, portfolio
mix, delinquency level, or term as well as for changes in environmental
conditions, such as changes in the national unemployment rate, commercial real
estate price index, housing price index and national retail sales index.

Worsening economic conditions from the COVID-19 pandemic or similar events,
higher inflation or interest rates, or other factors may lead to increased
losses in the portfolio and/or requirements for an increase in provision
expense. Management maintains various controls in an attempt to identify and
limit future losses, such as a watch list of problem loans and potential problem
loans, documented loan administration policies and loan review staff to review
the quality and anticipated collectability of the portfolio. Additional
procedures provide for frequent management review of the loan portfolio based on
loan size, loan type, delinquencies, financial analysis, on-going correspondence
with borrowers and problem loan work-outs. Management determines which loans are
collateral-dependent, evaluates risk of loss and makes additional provisions to
expense, if necessary, to maintain the allowance at a satisfactory level.

During the three months ended March 31, 2022, the Company did not record a
provision expense on its portfolio of outstanding loans, compared to a $300,000
provision expense recorded for the three months ended March 31, 2021. In the
three months ended March 31, 2022 and 2021, the Company experienced net
recoveries of $43,000 and $64,000, respectively. The negative provision for
losses on

                                       46

unfunded commitments for the three months ended March 31, 2022 was $193,000
compared to a negative provision of $674,000 for the three months ended March
31, 2021. The level and mix of unfunded commitments resulted in a decrease in
the required reserve for such potential losses. General market conditions and
unique circumstances related to specific industries and individual projects
contributed to the level of provisions and charge-offs. Collateral and repayment
evaluations of all assets categorized as potential problem loans, non-performing
loans or foreclosed assets were completed with corresponding charge-offs or
reserve allocations made as appropriate.

All FDIC-assisted acquired loans were grouped into pools based on common
characteristics and were recorded at their estimated fair values, which
incorporated estimated credit losses at the acquisition date. These loan pools
have been systematically reviewed by the Company to determine the risk of losses
that may exceed those identified at the time of the acquisition. Techniques used
in determining risk of loss are similar to those used to determine the risk of
loss for the legacy Great Southern Bank portfolio, with most focus being placed
on those loan pools which include the larger loan relationships and those loan
pools which exhibit higher risk characteristics. Review of the acquired loan
portfolio also includes review of financial information, collateral valuations
and customer interaction to determine if additional reserves are warranted.

The Bank's allowance for credit losses as a percentage of total loans was 1.46%
and 1.49% at March 31, 2022 and December 31, 2021, respectively. Management
considers the allowance for credit losses adequate to cover losses inherent in
the Bank's loan portfolio at March 31, 2022, based on recent reviews of the
Bank's loan portfolio and current economic conditions. If challenging economic
conditions were to last longer than anticipated or deteriorate further or
management's assessment of the loan portfolio were to change, additional loan
loss provisions could be required, thereby adversely affecting the Company's
future results of operations and financial condition.

Non-performing assets

Due to changes in loan portfolio balances and composition, changes in economic and market conditions, and other factors specific to a borrower’s circumstances, the level of non-performing assets will fluctuate.

To March 31, 2022non-performing assets have been $5.2 milliona decrease of
$821,000 from $6.0 million to December 31, 2021. Non-performing assets as a percentage of total assets were 0.10% to March 31, 2022against 0.11% at
December 31, 2021.

Compared to December 31, 2021, non-performing loans decreased $454,000, to $5.0
million at March 31, 2022, and foreclosed and repossessed assets decreased
$367,000, to $221,000 at March 31, 2022. Non-performing one- to four-family
residential loans comprised $2.0 million, or 40.3%, of the total non-performing
loans at March 31, 2022, a decrease of $212,000 from December 31, 2021.
Non-performing commercial real estate loans comprised $1.8 million, or 35.7%, of
the total non-performing loans at March 31, 2022, a decrease of $233,000 from
December 31, 2021. Non-performing consumer loans comprised $724,000, or 14.6%,
of the total non-performing loans at March 31, 2022, a decrease of $9,000 from
December 31, 2021. Non-performing construction and land development loans
comprised $468,000, or 9.4%, of the total non-performing loans at March 31,
2022, unchanged from December 31, 2021.

                                       47

Non-performing loans. Activity in the non-performing loan category during the quarter ended March 31, 2022 was the following:

                                                                                         Transfers to       Transfers to
                                         Beginning      Additions         Removed          Potential         Foreclosed                                    Ending
                                         Balance,        to Non-         from Non-          Problem          Assets and        Charge-                    Balance,
                                         January 1      Performing       Performing          Loans         Repossessions        Offs        Payments      March 31

                                                                                              (In Thousands)
One- to four-family construction        $         -    $          -    $   
        -    $           -    $              -    $       -    $        -    $        -
Subdivision construction                          -               -                 -                -                   -            -             -             -
Land development                                468               -                 -                -                   -            -             -           468
Commercial construction                           -               -                 -                -                   -            -             -             -
One- to four-family residential               2,216               -        
        -              (5)                   -         (36)         (171)         2,004
Other residential                                 -               -                 -                -                   -            -             -             -
Commercial real estate                        2,006               -                 -                -                   -            -         (233)         1,773
Commercial business                               -               -                 -                -                   -            -             -             -
Consumer                                        733              32                 -              (4)                   -          (7)          (30)           724
Total non-performing loans              $     5,423    $         32    $            -    $         (9)    $              -    $    (43)    $    (434)    $    4,969

FDIC-assisted acquired loans
included above                          $     1,736    $          -    $            -    $           -    $              -    $       -    $     (84)    $    1,652


At March 31, 2022, the non-performing one- to four-family residential category
included 34 loans, none of which were added during the three months ended March
31, 2022. The largest relationship in the category totaled $322,000, or 16.1% of
the total category. The non-performing commercial real estate category includes
two loans, neither of which were added during the three months ended March 31,
2022. The largest relationship in the category, which totaled $1.5 million, or
86.1% of the total category, was transferred from potential problems during the
fourth quarter of 2021, and is collateralized by a mixed use commercial retail
building. The non-performing land development category consisted of one loan
added during the first quarter of 2021, which totaled $468,000 and is
collateralized by unimproved zoned vacant ground in southern Illinois. The
non-performing consumer category included 30 loans, four of which were added
during the three months ended March 31, 2022.

Potential Problem Loans. Compared to December 31, 2021, potential problem loans
decreased $117,000, or 5.9%, to $1.9 million at March 31, 2022. Potential
problem loans are loans which management has identified through routine internal
review procedures as having possible credit problems that may cause the
borrowers difficulty in complying with the current repayment terms. These loans
are not reflected in non-performing assets.

Activity in potentially problematic loan categories during the quarter ended
March 31, 2022was the following:

                                                                           Removed                         Transfers to
                                          Beginning       Additions         from         Transfers to       Foreclosed                                   Ending
                                          Balance,      to Potential      Potential          Non-           Assets and       Charge-                    Balance,
                                          January 1        Problem         Problem        Performing      Repossessions       Offs        Payments      March 31

                                                                                              (In Thousands)
One- to four-family construction         $         -    $           -    $ 
       -    $            -    $            -    $       -    $        -    $        -
Subdivision construction                          15                -              -                 -                 -            -           (3)            12
Land development                                   -                -              -                 -                 -            -             -             -
Commercial construction                            -                -              -                 -                 -            -             -             -
One- to four-family residential                1,432                5      
       -                 -                 -            -          (55)         1,382
Other residential                                  -                -              -                 -                 -            -             -             -
Commercial real estate                           210                -              -                 -                 -            -           (5)           205
Commercial business                                -                -              -                 -                 -            -             -             -
Consumer                                         323               12              -                 -              (14)          (9)          (48)           264
Total potential problem loans            $     1,980    $          17    $         -    $            -    $         (14)    $     (9)    $    (111)    

$1,863

FDIC-assisted acquired loans included
above                                    $     1,004    $           -    $         -    $            -    $            -    $       -    $     (17)    $      987


At March 31, 2022, the one- to four-family residential category of potential
problem loans included 25 loans, one of which was added during the three months
ended March 31, 2022. The largest relationship in this category totaled
$168,000, or 12.2% of the total

                                       48

category. The commercial real estate category of potential problem loans
included one loan, which was added in a previous period. The consumer category
of potential problem loans included 23 loans, four of which were added during
the three months ended March 31, 2022.

Other Real Estate Owned and Repossessions. Of the total $1.7 million of other
real estate owned and repossessions at March 31, 2022, $1.5 million represents
properties which were not acquired through foreclosure.

Activity of other real estate owned and repossessed during the quarter ended March 31, 2022was the following:

                                                 Beginning                                                           Ending
                                                 Balance,                                Capitalized     Write-     Balance,
                                                 January 1     Additions      Sales         Costs         Downs     March 31

                                                                               (In Thousands)
One- to four-family construction                $         -    $        -  
 $     -    $           -    $     -    $       -
Subdivision construction                                  -             -          -                -          -            -
Land development                                        315             -      (300)                -       (15)            -
Commercial construction                                   -             -          -                -          -            -
One- to four-family residential                         183             -  
       -                -          -          183
Other residential                                         -             -          -                -          -            -
Commercial real estate                                    -             -          -                -          -            -
Commercial business                                       -             -          -                -          -            -
Consumer                                                 90            78      (130)                -          -           38
Total foreclosed assets and repossessions       $       588    $       78    $ (430)    $           -    $  (15)    $     221

FDIC-assisted acquired assets included above    $       498    $        -    $ (300)    $           -    $  (15)    $     183


At March 31, 2022, the one- to four-family residential category of foreclosed
assets consisted of two properties (both of which were FDIC-assisted acquired
assets). The land development category of foreclosed assets previously consisted
of one property in central Iowa (this was an FDIC-assisted acquired asset) which
was sold during the three months ended March 31, 2022. The additions and sales
in the consumer category were due to the volume of repossessions of automobiles,
which generally are subject to a shorter repossession process.

Watch Classified Loans

The Company reviews the credit quality of its loan portfolio using an internal
grading system that classifies loans as "Satisfactory," "Watch," "Special
Mention," "Substandard" and "Doubtful." Loans classified as "Watch" are being
monitored because of indications of potential weaknesses or deficiencies that
may require future classification as special mention or substandard. In the
three months ended March 31, 2022, loans classified as "Watch" increased
$33,000, from $30.7 million at December 31, 2021 to $30.8 million at March 31,
2022. See Note 6 for further discussion of the Company's loan grading system.

Non-interest income

For the three months ended March 31, 2022non-interest income decreased
$560,000 for $9.2 million compared to the three months ended March 31, 2021mainly due to the following:

Net gains on loan sales: Net gains on loan sales decreased $1.6 million compared
to the prior year period. The decrease was due to a decrease in originations of
fixed-rate single-family mortgage loans during the 2022 period compared to the
2021 period. Fixed rate single-family mortgage loans originated are generally
subsequently sold in the secondary market. These loan originations increased
substantially when market interest rates decreased to historically low levels in
2020 and 2021. As a result of the significant volume of refinance activity in
2020 and 2021, and as market interest rates have moved higher in the first
quarter of 2022, mortgage refinance volume has decreased and loan originations
and related gains on sales of these loans have decreased substantially.

                                       49

Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $606,000
compared to the prior year period. This increase was almost entirely due to
increased customer debit card transactions in the 2022 period compared to the
2021 period. In the latter half of 2021 and in the three months ended March 31,
2022, debit card usage by customers rebounded and was back to normal levels, and
in many cases, increased levels of activity.

Other income: Other income increased $255,000 compared to the prior year period.
In the 2022 period, the Company recorded a one-time bonus of $500,000 from its
card processor as a result of achieving certain benchmarks related to debit
card
activity.

Non-interest Expense

For the three months ended March 31, 2022non-interest expenses increased
$947,000 for $31.3 million compared to the three months ended March 31, 2021mainly due to the following:

Salaries and employee benefits: Salaries and employee benefits increased
$960,000 from the prior year period. A significant amount of this increase
related to normal annual merit increases in various lending and operations
areas. In 2022, many of these increases were larger than in previous years due
to the current employment environment. In addition, the new Phoenix loan
production office was opened in the first quarter of 2022. Lastly, certain loan
origination compensation costs were deferred under accounting standards in the
2021 period that related primarily to the origination of PPP loans; therefore,
more costs were deferred in the 2021 period versus the 2022 period.

Other expense categories experienced smaller changes compared to the prior year
period, including a $186,000 increase in travel and entertainment expenses as
there was very little in-person activity in the 2021 period due to COVID-19
restrictions; a $120,000 increase in professional fees related to the swap
transaction completed in 2022; a $131,000 decrease in amortization of deposit
intangibles due to the completion of the amortization for the 2014 acquisitions;
and a $105,000 decrease in expenses on other real estate owned and repossessions
due to fewer foreclosed properties and repossessed autos in the 2022 period.

The Company's efficiency ratio for the three months ended March 31, 2022, was
59.62% compared to 56.33% for the same period in 2021. In the three-month period
ended March 31, 2022, the higher efficiency ratio was primarily due to an
increase in non-interest expense. The Company's ratio of non-interest expense to
average assets was 2.34% and 2.22% for the three months ended March 31, 2022 and
2021, respectively. Average assets for the three months ended March 31, 2022,
decreased $121.8 million, or 2.2%, from the three months ended March 31, 2021,
primarily due to a decrease in average net loans receivable, partially offset by
increases in average investment securities and interest bearing cash
equivalents.

Provision for income taxes

For the three months ended March 31, 2022 and 2021, the Company's effective tax
rate was 20.5% and 21.0%, respectively. These effective rates were at or below
the statutory federal tax rate of 21%, due primarily to the utilization of
certain investment tax credits and to tax-exempt investments and tax-exempt
loans, which reduced the Company's effective tax rate. The Company's effective
tax rate may fluctuate in future periods as it is impacted by the level and
timing of the Company's utilization of tax credits, the level of tax-exempt
investments and loans, the amount of taxable income in various state
jurisdictions and the overall level of pre-tax income. State tax expense
estimates evolved throughout 2021 as taxable income and apportionment between
states were analyzed. The Company's effective income tax rate is currently
generally expected to remain near the statutory federal tax rate due primarily
to the factors noted above. The Company currently expects its effective tax rate
(combined federal and state) will be approximately 20.5% to 21.5% in future
periods.

                                       50

Average Balances, Interest Rates and Yields

The following tables present, for the periods indicated, the total dollar amount
of interest income from average interest-earning assets and the resulting
yields, as well as the interest expense on average interest-bearing liabilities,
expressed both in dollars and rates, and the net interest margin. Average
balances of loans receivable include the average balances of non-accrual loans
for each period. Interest income on loans includes interest received on
non-accrual loans on a cash basis. Interest income on loans includes the
amortization of net loan fees which were deferred in accordance with accounting
standards. Net fees included in interest income were $1.7 million and $2.5
million for the three months ended March 31, 2022 and 2021, respectively.
Tax-exempt income was not calculated on a tax equivalent basis. The table does
not reflect any effect of income taxes.

                                       March 31,            Three Months Ended                    Three Months Ended
                                         2022                 March 31, 2022                        March 31, 2021
                                        Yield/        Average                   Yield/      Average                   Yield/
                                         Rate         Balance      Interest      Rate       Balance      Interest      Rate

                                                                      (Dollars in Thousands)
Interest-earning assets:
Loans receivable:
One- to four-family residential             3.21 %  $   701,330    $   

6,041 3.49% $664,562 $6,516 3.98% Other residential

                           4.14        759,622        

8,417 4.49 999,094 10,927 4.44 Business property

                      4.07      1,489,762       15,346      4.18      1,562,689       16,584      4.30
Construction                                4.19        668,220        7,529      4.57        604,382        6,731      4.52
Commercial business                         3.95        289,230        3,326      4.66        323,429        3,887      4.87
Other loans                                 4.57        204,510       

2,244 4.45 237,499 2,891 4.94 Industrial revenue bonds(1)

                 4.47         13,983          

162 4.69 14,924 173 4.70

Total loans receivable                      4.13      4,126,657       

43,065 4.23 4,406,579 47,709 4.39

Investment securities(1)                    2.54        533,976        

3,410 2.59 414,696 2,817 2.75 Interest-bearing deposits in other banks

                                       0.39        458,643          

198 0.18 419 426 107 0.10

Total interest-earning assets               3.73      5,119,276       46,673      3.70      5,240,701       50,633      3.92
Non-interest-earning assets:
Cash and cash equivalents                                90,586                                94,210
Other non-earning assets                                136,701                               133,443
Total assets                                        $ 5,346,563                           $ 5,468,354

Interest-bearing liabilities: Interest-bearing demand and savings 0.12 $2,375,943 777 0.13 $2,188,978 1,194 0.22 Term deposits

                               0.58        931,085        

1,396 0.61 1,312,089 3,028 0.94 Total deposits

                              0.24      3,307,028        

2,173 0.27 3,501,067 4,222 0.49 Securities sold under resale agreements

                       0.03        128,264           10      0.03        144,487            9      0.03
Short-term borrowings, overnight
FHLBank borrowings and other
interest-bearing liabilities                0.33          3,628            1      0.08          1,661            -         -
Subordinated debentures issued to
capital trusts                              1.92         25,774          118      1.86         25,774          113      1.78
Subordinated notes                          5.97         74,019        1,105      6.06        148,514        2,200      6.01

Total interest-bearing liabilities          0.36      3,538,713        3,407      0.39      3,821,503        6,544      0.69
Non-interest-bearing liabilities:
Demand deposits                                       1,160,013                               983,120
Other liabilities                                        37,907                                43,890
Total liabilities                                     4,736,633                             4,848,513
Stockholders' equity                                    609,930                               619,841
Total liabilities and stockholders'
equity                                              $ 5,346,563                           $ 5,468,354

Net interest income:
Interest rate spread                        3.37 %                 $  43,266      3.31 %                 $  44,089      3.23 %
Net interest margin*                                                              3.43 %                                3.41 %
Average interest-earning assets to
average interest- bearing
liabilities                                               144.7 %                               137.1 %

* Defined as the Company’s net interest income divided by average total interest-earning assets.

Of the total average marketable securities balances, the tax-exempt average

the investment securities have been $37.2 million and $45.2 million for the three (1) months ended March 31, 2022 and 2021, respectively. Moreover, the average

tax-exempt loans and industrial revenue bonds have been $16.9 million and $18.7

million for the three months ended March 31, 2022 and 2021, respectively.

    Interest


                                       51

income on tax-exempt assets included in this table was $459,000 and $419,000 for

the three months have ended March 31, 2022 and 2021, respectively. interest income

net of non-deductible interest expense related to tax-exempt assets has been $452,000 and

$403,000 for the three months ended March 31, 2022 and 2021, respectively.

Rate/volume analysis

The following tables present the dollar amounts of changes in interest income
and interest expense for major components of interest-earning assets and
interest-bearing liabilities for the periods shown. For each category of
interest-earning assets and interest-bearing liabilities, information is
provided on changes attributable to (i) changes in rate (i.e., changes in rate
multiplied by old volume) and (ii) changes in volume (i.e., changes in volume
multiplied by old rate). For purposes of this table, changes attributable to
both rate and volume, which cannot be segregated, have been allocated
proportionately to volume and rate. Tax-exempt income was not calculated on a
tax equivalent basis.

                                                                                                   Three Months Ended March 31,
                                                                                                           2022 vs. 2021
                                                                                                Increase (Decrease)         Total
                                                                                                      Due to               Increase
                                                                                                 Rate        Volume       (Decrease)

                                                                                                      (Dollars in Thousands)
Interest-earning assets:
Loans receivable                                                                              $  (1,683)    $ (2,961)    $    (4,644)
Investment securities                                                                              (177)          770             593
Interest-earning deposits in other banks                                                              80           11              91
Total interest-earning assets                                                                    (1,780)      (2,180)         (3,960)
Interest-bearing liabilities:
Demand deposits                                                                                    (512)           95           (417)
Time deposits                                                                                      (892)        (740)         (1,632)
Total deposits                                                                                   (1,404)        (645)         (2,049)
Securities sold under reverse repurchase agreements                                                    1            -               1

FHLBank short-term borrowings, overnight borrowings and other interest-bearing liabilities

             1            -               1
Subordinated debentures issued to capital trust                                                        5            -               5
Subordinated notes                                                                                    18      (1,113)         (1,095)
Total interest-bearing liabilities                                         
                     (1,379)      (1,758)         (3,137)
Net interest income                                                                           $    (401)    $   (422)    $      (823)


Liquidity
Liquidity is a measure of the Company's ability to generate sufficient cash to
meet present and future financial obligations in a timely manner through either
the sale or maturity of existing assets or the acquisition of additional funds
through liability management. These obligations include the credit needs of
customers, funding deposit withdrawals, and the day-to-day operations of the
Company. Liquid assets include cash, interest-bearing deposits with financial
institutions and certain investment securities and loans. As a result of the
Company's management of the ability to generate liquidity primarily through
liability funding, management believes that the Company maintains overall
liquidity sufficient to satisfy its depositors' requirements and meet its
borrowers' credit needs. At March

                                       52

31, 2022, the Company had commitments of approximately $271.1 million to fund
loan originations, $1.55 billion of unused lines of credit and unadvanced loans,
and $11.9 million of outstanding letters of credit.

Loan commitments and the unfunded portion of loans as of the dates indicated were as follows (in thousands):

                                       March 31,      December 31,      

the 31st of December, the 31st of December, the 31st of December,

                                         2022             2021              2020              2019              2018
Closed non-construction loans with
unused available lines
Secured by real estate (one- to
four-family)                          $   185,101    $      175,682    $      164,480    $      155,831    $      150,948
Secured by real estate (not one-
to four-family)                                 -            23,752            22,273            19,512            11,063
Not secured by real estate -
commercial business                        89,252            91,786            77,411            83,782            87,480

Closed construction loans with
unused available lines
Secured by real estate (one-to
four-family)                               75,214            74,501            42,162            48,213            37,162
Secured by real estate (not one-to
four-family)                            1,089,844         1,092,029           823,106           798,810           906,006

Loan commitments not closed
Secured by real estate (one-to
four-family)                              109,472            53,529            85,917            69,295            24,253
Secured by real estate (not one-to
four-family)                              212,264           146,826            45,860            92,434           104,871
Not secured by real estate -
commercial business                         8,223            12,920        
      699                 -               405

                                      $ 1,769,370    $    1,671,025    $    1,261,908    $    1,267,877    $    1,322,188


The Company's primary sources of funds are customer deposits, FHLBank advances,
other borrowings, loan repayments, unpledged securities, proceeds from sales of
loans and available-for-sale securities and funds provided from operations. The
Company utilizes particular sources of funds based on the comparative costs and
availability at the time. The Company has from time to time chosen not to pay
rates on deposits as high as the rates paid by certain of its competitors and,
when believed to be appropriate, supplements deposits with less expensive
alternative sources of funds.

To March 31, 2022 and December 31, 2021the Company had these secured lines and cash on the balance sheet:

                                             March 31, 2022    December 31, 2021
Federal Home Loan Bank line                  $ 844.5 million  $     756.5 million
Federal Reserve Bank line                    $ 357.2 million  $     352.4 million
Cash and cash equivalents                    $ 353.0 million  $     717.3 million

Unpledged securities – Available for sale $404.3 million $406.8 million
Unpledged Securities – Held to Maturity $92.7 million $

Statements of Cash Flows. During the three months ended March 31, 2022 and 2021,
the Company had positive cash flows from operating activities and negative cash
flows from investing activities. The Company had negative cash flows from
financing activities during the three months ended March 31, 2022 and positive
cash flows from financing activities during the three months ended March 31,
2021.

Cash flows from operating activities for the periods covered by the Statements
of Cash Flows have been primarily related to changes in accrued and deferred
assets, credits and other liabilities, the provision for credit losses,
depreciation and amortization, realized gains on sales of loans and the
amortization of deferred loan origination fees and discounts (premiums) on loans
and investments, all of which are non-cash or non-operating adjustments to
operating cash flows. Net income adjusted for non-cash and non-operating items
and the origination and sale of loans held for sale were the primary source of
cash flows from operating activities. Operating activities provided cash flows
of $31.4 million and $24.5 million during the three months ended March 31, 2022
and 2021, respectively.

During the three months ended March 31, 2022 and 2021, investing activities used
cash of $318.4 million and $55.9 million, respectively. Investing activities in
the 2022 period used cash primarily due to the purchase of investment
securities, the purchases of loans and the net origination of loans, partially
offset by payments received on investment securities. Investing activities in
the 2021 period used cash primarily due to the purchase of investment securities
and the purchases of loans, partially offset by payments received on investment
securities and the net repayments of loans.

                                       53

Changes in cash flows from financing activities during the periods covered by
the Statements of Cash Flows were due to changes in deposits after interest
credited and changes in short-term borrowings, as well as advances from
borrowers for taxes and insurance, dividend payments to stockholders,
repurchases of the Company's common stock and the exercise of common stock
options. Financing activities used cash of $77.2 million during the three months
ended March 31, 2022 and provided cash of $80.2 million during the three months
ended March 31, 2021. In the 2022 three-month period, financing activities used
cash primarily as a result of decreases in time deposits, dividends paid to
stockholders and the repurchase of the Company's common stock, partially offset
by net increases in short-term borrowings. In the 2021 three-month period,
financing activities provided cash primarily as a result of net increases in
checking account balances, partially offset by decreases in time deposits,
decreases in short-term borrowings, dividends paid to stockholders and the
purchase of the Company's common stock.

Capital resources

Management continuously reviews the capital position of the Company and the Bank
to ensure compliance with minimum regulatory requirements, as well as to explore
ways to increase capital either by retained earnings or other means.

At March 31, 2022, the Company's total stockholders' equity and common
stockholders' equity were each $582.6 million, or 10.8% of total assets,
equivalent to a book value of $45.65 per common share. As of December 31, 2021,
total stockholders' equity and common stockholders' equity were each $616.8
million, or 11.3% of total assets, equivalent to a book value of $46.98 per
common share. At March 31, 2022, the Company's tangible common equity to
tangible assets ratio was 10.7%, compared to 11.2% at December 31, 2021 (See
Non-GAAP Financial Measures below).

Included in stockholders' equity at March 31, 2022 and December 31, 2021, were
unrealized gains (losses) (net of taxes) on the Company's available-for-sale
investment securities totaling $(11.1 million) and $9.1 million, respectively.
This decrease in unrealized gains primarily resulted from rising market interest
rates, which decreased the fair value of investment securities. Also included in
stockholders' equity at March 31, 2022, were unrealized gains (net of taxes) on
the Company's held-to-maturity investment securities totaling $759,000.
Approximately $227 million of investment securities which were previously
included in available-for-sale were transferred to held-to-maturity during the
first quarter of 2022.

In addition, included in stockholders' equity at March 31, 2022, were realized
gains (net of taxes) on the Company's terminated cash flow hedge (interest rate
swap), totaling $22.1 million. This amount, plus associated deferred taxes, is
expected to be accreted to interest income over the remaining term of the
original interest rate swap contract, which was to end in October 2025. At March
31, 2022, the remaining pre-tax amount to be recorded in interest income was
$28.6 million. The net effect on total stockholders' equity over time will be no
impact as the reduction of this realized gain will be offset by an increase in
retained earnings (as the interest income flows through pre-tax income).

Also included in stockholders' equity at March 31, 2022, was an unrealized loss
(net of taxes) on the Company's outstanding cash flow hedge (interest rate swap)
totaling $3.1 million. Anticipated higher market interest rates have caused the
fair value of this interest rate swap to decrease.

Banks are required to maintain minimum risk-based capital ratios. These ratios
compare capital, as defined by the risk-based regulations, to assets adjusted
for their relative risk as defined by the regulations. Under current guidelines,
which became effective January 1, 2015, banks must have a minimum common equity
Tier 1 capital ratio of 4.50%, a minimum Tier 1 risk-based capital ratio of
6.00%, a minimum total risk-based capital ratio of 8.00%, and a minimum Tier 1
leverage ratio of 4.00%. To be considered "well capitalized," banks must have a
minimum common equity Tier 1 capital ratio of 6.50%, a minimum Tier 1 risk-based
capital ratio of 8.00%, a minimum total risk-based capital ratio of 10.00%, and
a minimum Tier 1 leverage ratio of 5.00%. On March 31, 2022, the Bank's common
equity Tier 1 capital ratio was 13.3%, its Tier 1 capital ratio was 13.3%, its
total capital ratio was 14.6% and its Tier 1 leverage ratio was 12.0%. As a
result, as of March 31, 2022, the Bank was well capitalized, with capital ratios
in excess of those required to qualify as such. On December 31, 2021, the Bank's
common equity Tier 1 capital ratio was 14.1%, its Tier 1 capital ratio was
14.1%, its total capital ratio was 15.4% and its Tier 1 leverage ratio was
11.9%. As a result, as of December 31, 2021, the Bank was well capitalized, with
capital ratios in excess of those required to qualify as such.

The FRB has established capital regulations for bank holding companies that
generally parallel the capital regulations for banks. On March 31, 2022, the
Company's common equity Tier 1 capital ratio was 12.0%, its Tier 1 capital ratio
was 12.5%, its total capital ratio was 15.3% and its Tier 1 leverage ratio was
11.2%. To be considered well capitalized, a bank holding company must have a
Tier 1 risk-based capital ratio of at least 6.00% and a total risk-based capital
ratio of at least 10.00%. As of March 31, 2022, the Company was considered well
capitalized, with capital ratios in excess of those required to qualify as such.
On December 31, 2021, the Company's common equity Tier 1 capital ratio was
12.9%, its Tier 1 capital ratio was 13.4%, its total capital ratio was 16.3% and
its

                                       54

The Tier 1 leverage ratio was 11.3%. From December 31, 2021the Company was considered well capitalized, with capital ratios higher than those required to qualify as such.

In addition to the minimum common equity Tier 1 capital ratio, Tier 1 risk-based
capital ratio and total risk-based capital ratio, the Company and the Bank have
to maintain a capital conservation buffer consisting of additional common equity
Tier 1 capital greater than 2.5% of risk-weighted assets above the required
minimum levels in order to avoid limitations on paying dividends, repurchasing
shares, and paying discretionary bonuses. At March 31, 2022, the Company and the
Bank both had additional common equity Tier 1 capital in excess of the buffer
amount.

On August 15, 2021, the Company completed the redemption, at par, of all $75.0
million aggregate principal amount of its 5.25% subordinated notes due August
15, 2026. The Company utilized cash on hand for the redemption payment. The
annual combined interest expense and amortization of deferred issuance costs on
these subordinated notes was approximately $4.3 million. These subordinated
notes were included as capital in the Company's calculation of its total capital
ratio.

Dividends. During the three months ended March 31, 2022, the Company declared a
common stock cash dividend of $0.36 per share, or 28% of net income per diluted
common share for that three month period, and paid a common stock cash dividend
of $0.36 per share (which was declared in December 2021). During the three
months ended March 31, 2021, the Company declared a common stock cash dividend
of $0.34 per share, or 25% of net income per diluted common share for that three
month period, and paid a common stock cash dividend of $0.34 per share (which
was declared in December 2020). The Board of Directors meets regularly to
consider the level and the timing of dividend payments. The $0.36 per share
dividend declared but unpaid as of March 31, 2022, was paid to stockholders in
April 2022.

Common Stock Repurchases and Issuances. The Company has been in various buy-back
programs since May 1990. During the three months ended March 31, 2022, the
Company repurchased 419,215 shares of its common stock at an average price of
$60.40 per share and issued 51,694 shares of common stock at an average price of
$47.49 per share to cover stock option exercises. During the three months ended
March 31, 2021, the Company repurchased 74,865 shares of its common stock at an
average price of $50.50 per share and issued 15,904 shares of common stock at an
average price of $39.09 per share to cover stock option exercises.

On January 19, 2022, the Company's Board of Directors authorized management to
purchase up to one million shares of the Company's outstanding common stock,
under a program of open market purchases or privately negotiated transactions.
This program does not have an expiration date. The authorization of this program
became effective upon completion of the previous repurchase program authorized
in October 2020. As of May 3, 2022, a total of approximately 700,000 shares were
available in the Company's stock repurchase authorization.

Management has historically utilized stock buy-back programs from time to time
as long as management believed that repurchasing the Company's common stock
would contribute to the overall growth of shareholder value. The number of
shares that will be repurchased at any particular time and the prices that will
be paid are subject to many factors, several of which are outside of the control
of the Company. The primary factors typically include the number of shares
available in the market from sellers at any given time, the market price of the
stock and the projected impact on the Company's earnings per share and capital.

Non-GAAP Financial Measures

This document contains certain financial information determined by methods other
than in accordance with accounting principles generally accepted in the United
States ("GAAP"). These non-GAAP financial measures include the ratio of tangible
common equity to tangible assets.

In calculating the ratio of tangible common equity to tangible assets, we
subtract period-end intangible assets from common equity and from total assets.
Management believes that the presentation of this measure excluding the impact
of intangible assets provides useful supplemental information that is helpful in
understanding our financial condition and results of operations, as it provides
a method to assess management's success in utilizing our tangible capital as
well as our capital strength. Management also believes that providing a measure
that excludes 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 this is a standard financial
measure 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. Because not all companies use the
same calculation of non-GAAP measures, this presentation may not be comparable
to similarly titled measures as calculated by other companies.

                                       55

Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets
                                                 March 31, 2022      December 31, 2021

                                                        (Dollars in Thousands)

Common equity at period end                     $        582,551    $           616,752
Less: Intangible assets at period end                      5,923           

6,081

Ordinary tangible equity at the end of the period (a) $576,628 $

610 671

Total assets at period end                      $      5,374,276    $      

5,449,944

Less: Intangible assets at period end                      5,923           

6,081

Tangible assets at period end (b)               $      5,368,353    $      

5,443,863

Tangible common equity to tangible assets
(a) / (b)                                                  10.74 %         

11.22%

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