Great Southern Bancorp (GSBC) risk factors, FY2025 10-K

Risks Relating to Macroeconomic Conditions

1. 01Economic conditions have adversely affected and could continue to adversely affect our business and financial performance
2. 02Inflationary pressures and rising or sustained high prices may affect our results of operations and financial condition
3. 03The economic impact of new or continuing public health issues, or similar crises, could continue to adversely affect us
4. 04Severe weather and other natural disasters, acts of war or terrorism or other adverse external events could harm our business

Risks Relating to Lending Activities

1. 05Our loan portfolio possesses increased risk due to our relatively high concentration of commercial and residential construction, commercial real estate, other residential (multi-family) and other commercial loans
2. 06A slowdown in the residential or commercial real estate markets may adversely affect our earnings and liquidity position
3. 07Our allowance for credit losses may prove to be insufficient to absorb potential losses in our loan portfolio20% rewritten
4. 08losses 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 conditionsNew

Risks Relating to Market Interest Rates

1. 09We may be adversely affected by interest rate changes
2. 10The fair value of our investment securities can fluctuate due to market conditions outside of our control

Risks Relating to Liquidity

1. 11Conditions in the financial markets may limit our access to additional funding to meet our liquidity needs
2. 12Our operations may depend upon our continued ability to access brokered deposits, Federal Home Loan Bank advances and/or Federal Reserve Bank borrowings24% rewritten

Risks Relating to Future Growth

1. 13Our strategy of pursuing acquisitions exposes us to financial, execution and operational risks that could adversely affect us
2. 14Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed. If available, the cost of that capital may also be very high

Risks Relating to Competition

1. 15Our future success is dependent on our ability to compete effectively in the highly competitive banking industry

Risks Relating to Regulation

1. 16Our business may be adversely affected by the highly regulated environment in which we operate, including the various capital adequacy guidelines we are required to meet
2. 17We are subject to extensive federal and state legislation, regulation, examination and supervision. Recently enacted, proposed and future legislation and regulations have had, will continue to have, or may have an adverse effect on our business and operations
3. 18We currently exceed thresholds defined in interagency guidance on commercial real estate concentrations, and as such, we may incur additional expense or slow the growth of certain categories of commercial real estate lending
4. 19Climate change and related legislative and regulatory initiatives may materially affect the Company's business and results of operations99% rewritten
5. 20Scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risksNew

Risks Relating to Technology and Cybersecurity and Other Operational Matters

1. 21Our exposure to operational risks may adversely affect us
2. 22We continually encounter technological change, and we may have fewer resources than many of our competitors to continue to invest in technological improvements
3. 23Our current and future uses of Artificial Intelligence (AI) and other emerging technologies may create additional risks29% rewritten
4. 24Ethical and reputational risks, including unintended consequences or perceived unfairness in AI-driven decisions, may erode customer trust and expose us to regulatory scrutinyNew
5. 25The Company is subject to significant risk if, in the future, it chooses to convert its core or other operating systems and may encounter significant adverse developments
6. 26We are also subject to security-related risks in connection with our use of technology, and our security measures may not be sufficient to mitigate the risk of a cyber-attack or to protect us from systems failures or interruptions
7. 27Our controls and procedures may be ineffective

Risks Relating to Accounting Matters

1. 28Our accounting policies and methods impact how we report our financial condition and results of operations. Application of these policies and methods may require management to make estimates about matters that are uncertain
2. 29Changes in accounting standards could materially impact our consolidated financial statements

Risks Relating to our Common Stock

1. 30The price of our common stock may fluctuate significantly, and this may make it difficult for you to resell our common stock when you want or at prices you find attractive
2. 31There may be future sales of additional shares of common stock or other dilution of our equity, which may adversely affect the market price of our common stock
3. 32Regulatory and contractual restrictions may limit or prevent us from paying dividends on and repurchasing our common stock
4. 33If we defer payments of interest on our outstanding junior subordinated debt securities or if certain defaults relating to those debt securities occur, we will be prohibited from declaring or paying dividends or distributions on, and from making liquidation payments with respect to, our common stock
5. 34The voting limitation provision in our charter could limit your voting rights as a holder of our common stock
6. 35Anti-takeover provisions could adversely impact our stockholders
7. 36Three members of the Turner family may exert substantial influence over the Company through their board and management positions and their ownership of the Company’s stock23% rewritten
8. 37In addition to the Turner family members, we are aware of other beneficial owners of more than five percent of the outstanding shares of our common stock. One of these beneficial owners is also a director of the Company34% rewritten