GREAT SOUTHERN BANCORP, INC. – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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, labor shortages, 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, and labor shortages might be greater
than expected; (ii) changes in economic conditions, either nationally or in the
Company's market areas; (iii) fluctuations in interest rates and the effects of
inflation, a potential recession or slower economic growth caused by changes in
energy prices or supply chain disruptions; (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 that 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 on January 1, 2021 due to the adoption
of ASU 2016-13. 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.

                                       37

Goodwill 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 September 30, 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 September 30, 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
deposit intangible assets that are subject to amortization are amortized on a
straight-line basis over a period of seven years.

In April 2022, the Company, through its subsidiary Great Southern Bank, entered
into a naming rights agreement with Missouri State University related to the
main arena on the university's campus in Springfield, Missouri. The terms of the
agreement provide the naming rights to Great Southern Bank for a total cost of
$5.5 million, to be paid over a period of seven years. The Company expects to
amortize the intangible asset through non-interest expense over a period not to
exceed 15 years.

At September 30, 2022, the amortizable intangible assets included core deposit
intangibles of $211,000 and the arena naming rights of $5.4 million, 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.

Our regular annual impairment assessment occurs in the third quarter of each
year. At September 30, 2022, the Company performed this annual review and
concluded that no impairment of its goodwill or intangible assets had occurred
at September 30, 2022. While the Company believes no impairment of its goodwill
or other intangible assets existed at September 30, 2022, different conditions
or assumptions used to measure fair value of reporting units, 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.

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.

A summary of goodwill and intangible assets is as follows:

                                     September 30,     December 31,
                                         2022              2021

                                             (In Thousands)

Goodwill - Branch acquisitions $ 5,396 $ 5,396
Deposit intangibles
Fifth Third Bank (January 2016)

                 211              685

Arena Naming Rights (April 2022)              5,422                -
                                    $        11,029    $       6,081


                                       38

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 affect 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, which severely affected
tourism, labor markets, business travel, immigration and the global supply chain
among other areas. 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. Currently, the pandemic continues to recede
and is thus becoming less disruptive to the U.S. and global economies. While
there are likely to be future waves of the virus, governments, households and
businesses are increasingly adept at adjusting to the virus.

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. 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 loans to small businesses that would help keep employees on
their payroll, fueling a historic bounce-back in economic activity.

Total fiscal support to the economy throughout the pandemic, including the CARES
Act passed into law in March 2020, the American Rescue Plan of March 2021, and
several smaller fiscal packages, totaled well over $5 trillion. The amount of
this support was equal to almost 25% of pre-pandemic 2019 GDP and approximately
three times that provided during the global financial crisis of 2007-2008.

Additionally, the Federal Reserve acted decisively by 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 began to taper its quantitative easing (QE), winding down
its bond purchases with its final open market purchase conducted on March 9,
2022.

While initiatives by the Federal Reserve and Congress significantly improved
consumer spending, GDP, and employment, economic momentum began to level off in
first quarter of 2022 with a slowdown in inventory growth and a decline in net
exports. Real gross domestic product (GDP) increased at an annual rate of 2.6%
in the third quarter of 2022 according to the "advance" estimate released by the
Bureau of Economic Analysis. In the second quarter 2022, real GDP decreased
0.6%. The third quarter 2022 increase in real GDP reflected increases in net
exports, consumer spending, nonresidential fixed investment, federal government
spending, and state and local government spending that were partly offset by
decreases in residential fixed investment and private inventory investment.

Prompting the Fed to take a more aggressive policy stance in 2022 is the surge
in inflation to a 40-year high, fueled in part by Russia's invasion of Ukraine
and causing oil and other commodity prices to spike. This has also fanned
already uncomfortably high inflation expectations. Adding to the pressure to act
more quickly is the strong economy, the rapid growth in jobs, and the decline in
unemployment. As of September 30, 2022, the economy was on track to return to
full employment in the next few months with unemployment around 3.5%. In
response to rising prices and the high inflation rate, the Federal Reserve has
engaged in an aggressive monetary tightening program, raising the federal funds
rate by 300 basis points thus far in 2022. The forecast is for a 75-basis point
rate hike at the November 2022 Federal Open Market Committee meeting. This is
expected to be followed by rate hikes of 50 basis points in December 2022 and 25
basis points in early 2023 per Moody's Analytics.

Fears of a coming recession continue as the Federal Reserve raises interest
rates to rein in inflation that is spiraling higher at decades-long record
rates. At October 31, 2022, the US Index of Consumer Sentiment was at 59.90, up
2.22% from 58.60 at September 30, 2022 and down 16.46% from 71.70 one year ago.

Following Russia's invasion of Ukraine in February 2022, global oil prices began
to rise and were trading over $100 per barrel by summer 2022. OPEC's recent
decision to cut its production quotas has pushed oil prices back up near $100
per barrel. Prices had slumped below $90 per barrel on a weaker global economy
and oil demand, the strong U.S. dollar, and the European Union's slow
implementation of sanctions on its imports of Russian oil.

                                       39

Persistent shortages of materials and labor and snags in supply chains have
caused prices to vault higher for months. Inflation as measured by the consumer
price index (CPI) decreased by 0.1% in September 2022 when compared to August
2022.

The Fed reduced its securities holdings by up to a total of $47.5 billion each
month from June 2022 through August 2022, and since September 2022, the maximum
monthly reduction has been $95 billion. The Fed will reinvest any maturing
amounts above the monthly caps by buying at auctions for Treasury securities or
by purchasing securities in the secondary market in the case of agency MBS.

Ten-year Treasury yields are currently close to 4%, as global bond investors
digest the implications of the Fed's aggressive monetary actions. Yields are
consistent with their estimated long-run equilibrium, which is consistent with
the estimate of nominal potential GDP growth of 4%.

The recently passed Inflation Reduction Act raises nearly $750 billion over the
next decade through higher taxes on large corporations and wealthy individuals
and lower Medicare prescription drug costs, to pay for nearly $450 billion in
tax credits and deductions and additional government spending to address climate
change and lower health insurance premiums for Americans who benefit from the
Affordable Care Act. The remaining more than $300 billion goes to reducing
future budget deficits. Broadly, the legislation is intended to address climate
change, lower healthcare costs for lower-income households and seniors, and
reduce future budget deficits.

The federal government posted a deficit of $2.8 trillion in fiscal 2021 and is
on track to post a deficit of $1 trillion in fiscal 2022. The publicly traded
debt-to-GDP ratio has surged to near 95%. Lawmakers were appropriately not
focused on deficits during early stages of the pandemic given the need to
respond to the crisis, but addressing the nation's fragile fiscal situation
remains critical.

Employment

The national unemployment rate in September 2022 edged down to 3.5%. The number
of unemployed individuals remained essentially unchanged at 5.8 million,
recovering close to pre-pandemic levels as of February 2020, at which time the
unemployment rate was 3.5% and unemployed persons numbered 5.7 million. In the
U.S., monthly job growth has averaged 420,000 thus far in 2022, compared to an
average of 562,000 per month in 2021. In September 2022, notable job gains
occurred in leisure, hospitality, and healthcare.

In September 2022, private sector non-farm employment had increased by 263,000.
This milestone happened years earlier than in prior recoveries. Sectors with the
fastest recoveries occurred in industrial production sectors and consumer
spending on goods, particularly e-commerce. By contrast, sectors that became
higher risk during the pandemic due to their in-person work requirements and
potentially lower wages, have not fully recovered. Job cuts in technology and
housing have occurred in recent months due to concerns of a recession as the
Federal Reserve aggressively tightens monetary policy to quell inflation.

As of September 2022, the labor force participation rate (the share of
working-age Americans employed or actively looking for a job) remained little
changed at 62.3%. Based on September 2022 information, the unemployment rate for
the Midwest, where the Company conducts most of its business, has decreased from
4.3% in September 2021 to 3.4% in September 2022. Unemployment rates for August
2022 in the states where the Company has a branch or loan production offices
were Arizona at 4.2%, Arkansas at 3.5%, Colorado at 3.3%, Georgia at 3.1%,
Illinois at 4.8%, Iowa at 2.9%, Kansas at 3.1%, Minnesota at 2.1%, Missouri at
3.0%, Nebraska at 2.2%, North Carolina at 3.9%, Oklahoma at 3.4%, and Texas at
4.2%. Of the metropolitan areas in which the Company does business, most are
below the national unemployment rate of 3.5% for September 2022, with the major
outlier being Chicago at 4.9%.

Single Family Housing

Sales of new single-family houses in September 2022 were at a seasonally
adjusted annual rate of 603,000, according to U.S. Census Bureau and Department
of Housing and Urban Development estimates. This is 10.9% below the revised
August 2022 rate of 677,000 and 17.6% below the September 2021 estimate of
732,000. In September 2022, U.S. single-family housing starts fell to their
lowest level in more than two years, dropping 8.1% to a seasonally adjusted
annual rate of 1.4 million from the August 2022 rate of 1.6 million and
registered 7.7% below the September 2021 rate of 1.6 million. Single-family
housing starts in September 2022 were at a rate of 892,000, which was a 4.7%
drop from August 2022 at 936,000.

                                       40

The median sales price of new houses sold in September 2022 was $470,600, up
from $413,200 in September 2021. The average sales price in September 2022 of
$517,700 was up from $470,600 in September 2021. The inventory of new homes for
sale, at an estimated 468,000 at the end of September 2022, would support 9.5
months of sales at the current sales rate, up from 6.5 months' supply at the end
of September 2021.

National existing-home sales in September 2022 declined for the eighth
consecutive month to a seasonally adjusted annual rate of 4.71 million. Sales
were down 1.5% from August 2022 and 23.8% from September 2021. Existing-home
sales in the Midwest slid 1.7% from August 2022 to an annual rate of 1.14
million in September 2022, falling 19.7% from September 2021 sales of 1.42
million.

The median existing-home sales price nationally as of September 30, 2022 climbed
8.4% to $385,000 from $355,000 as of September 2021. This marked 127 consecutive
months of year-over-year increases, the longest running streak on record. The
median price in the Midwest was $282,000, up 6.9% from the prior year median
price of $263,000.

Nationally, properties typically on average remained on the market for 19 days
in September 2022, up from 16 days in August 2022 and 17 days in September 2021.
Of homes sold in September 2022, 70% were on the market for less than a month.
All-cash sales represented 23% of transactions in September 2022, down from 24%
in August 2022 and 23% in September 2021.

The inventory of unsold existing homes at the end of September 2022 was 1.25
million which was down 2.3% from August 2022 and 0.8% from September 2021.
Unsold inventory in September 2022 represents 3.2 months' supply at the current
monthly sales pace, unchanged from August 2022 and up from 2.4 months in
September 2021.

The housing market is feeling the impact of sharply rising mortgage rates and
higher inflation on housing affordability. If consumer price inflation continues
to remain at current levels, mortgage rates can be expected to move higher.
Additionally, while home prices have consistently increased due to tight supply,
prices may decline as available inventory increases due to lower demand.

First-time buyers accounted for 29% of sales in September 2022, unchanged from
August 2022 but slightly higher than 28% in September 2021.

According to Freddie Mac, the average commitment rate for a 30-year,
conventional, fixed-rate mortgage was 6.11% in September 2022, up from 5.22% in
August 2022. The average for all of 2021 was 2.96%.

Other Residential (Multi-Family) Housing and Commercial Real Estate

After years of unprecedented demand for apartment units resulting in vacancy
rates hitting historic lows at the end of 2021, the 127,000 new units delivered
during the quarter ending September 30, 2022 has contributed to the current
oversupply situation and pushed the national vacancy rate up from an all-time
low of 4.7% just a year ago to 5.5% as of September 2022.

Overall, absorption during 2022 of constructed units did not keep pace with a
diminished demand caused by rising inflation cutting into renter household
budgets. Additionally, consumer concerns regarding a possible recession has
likely put a hold on a number of potential household formations

CoStar projects that national year-over-year rent growth will moderate further
from its current 5.7% pace to 3.8% at the end of the 2022. Midwest and gateway
markets fared the best over the past 3 months with rent growth slipping only
slightly. St. Louis and Kansas City registered third quarter annual rent growth
of 7.3%, which remains significantly higher than their 5-year prepandemic
average.

Investment capital continued to pour into the multifamily sector during the
third quarter, as multifamily transaction activity topped the four major real
estate sectors. Investors still see rent growth remaining above the long-term
average despite the moderation in rents experienced so far in 2022. Furthermore,
sales activity in the third quarter of 2022 stood well above pre-pandemic
levels.

The combination of rising interest rates, more expensive debt and lower
pro-forma rents led to 4- and 5- Star cap rates rising during the summer. With
the 10-year treasury rate rising, upward pressure on cap rates will most likely
continue. Some investors have already moved to the sidelines as they await
further signaling on the direction of economic growth and the Federal Reserve's
inflation fighting. Transaction activity may slow during the fourth quarter of
2022 as the market awaits more clarity.

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As of September 30, 2022, national multifamily market vacancy rates increased to
5.5%. Our market areas reflected the following apartment vacancy levels as of
September 2022: Springfield, Missouri at 2.7%, St. Louis at 8.8%, Kansas City at
5.7%, Minneapolis at 6.3%, Tulsa, Oklahoma at 6.5%, Dallas-Fort Worth at 7.2 %,
Chicago at 4.9%, Atlanta at 7.7%, Phoenix at 8.4%, Denver at 6.6% and Charlotte,
North Carolina at 7.3%. Five of our market areas, Atlanta, Dallas-Fort Worth,
Denver, Minneapolis, and Phoenix, were in the top ten metropolitan areas for
current construction and 12-month deliveries to market.

Demand for office space is weakening once again, with net absorption falling
back into negative territory and the pool of available sublease space expanding.
Uncertainty remains the prevailing theme, as firms continue to debate workplace
schedules and assess real estate requirements. With the additional risk of
recession rising amid high inflation and aggressive Fed policy, a full recovery
in the office market is likely a longer-term proposition.

Rent growth as of September 30, 2022 is now positive on a year-over-year basis
in most major markets, although it remains modest in many. The current
oversupply of available space, both existing and forthcoming, points to downside
risk.

Multiple factors could weigh on both activity and pricing in the office market
going forward, including higher interest rates and subsequent cost of debt,
slowing economic growth, and continued shift to remote and hybrid workplace
schedules.

As of September 30, 2022, national office vacancy rates remained about the same
at 12.5% compared to June 30, 2022, while our market areas reflected the
following vacancy levels at September 30, 2022: Springfield, Missouri at 4.9%,
St. Louis at 10.7%, Kansas City at 10%, Minneapolis at 10.5%, Tulsa, Oklahoma at
12.1%, Dallas-Fort Worth at 17.2%, Chicago at 14.9%, Atlanta at 14.3%, Denver at
14.9%, Phoenix at 14.9% and Charlotte, North Carolina at 11.2%.

The retail sector remains in expansion mode despite growing headwinds from
inflation and rising interest rates. Overall, consumers continue to spend at a
very healthy clip, though the increased cost of necessities such as food, gas,
and housing are starting to weigh on the real growth of spending for
non-essential goods. Leasing activity for smaller spaces is being overwhelmingly
driven by growth in quick service restaurants and cellular service retailers.
While demand for retail space is on the rise, construction activity continues to
fall. Most recent construction activity has consisted of single-tenant
build-to-suits or smaller ground floor spaces in mixed-use developments. Due to
growing demand and minimal new supply, vacancy rates declined across most retail
segments in the third quarter of 2022. While rents increased at 4.2% over the
most recent 12-month period, inflation expectations will likely restrain the
real rate of rental growth and keep it in line with or slightly below the
average growth rate seen during the five years preceding the pandemic.

During the third quarter of 2022, national retail vacancy rates remained level
at 4.4% while our market areas reflected the following vacancy levels:
Springfield, Missouri at 3.1%, St. Louis at 5.7%, Kansas City at 4.3%,
Minneapolis at 3.3%, Tulsa, Oklahoma at 3.2%, Dallas-Fort Worth at 4.8%, Chicago
at 5.8%, Atlanta at 4.0%, Phoenix at 5.3%, Denver at 4.3%, and Charlotte, North
Carolina at 3.7 %.

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. U.S.
industrial leasing has held up remarkably well despite rising interest rates and
stubbornly high inflation rates eroding household purchasing power, which has
resulted in a decline in consumer goods spending from high levels recorded
during early 2021 when the final round of stimulus checks were issued. Even when
adjusted for recent inflation, monthly goods spending still continues at the
latter part of 2022, to come in about 6% higher than levels that likely would
have been recorded, had spending not spiked in recent years and simply continued
to rise in line with its pre-pandemic growth trend.

Risks that industrial leasing will moderate back down toward levels that are
more normal in 2023 are accumulating. Leading indicators of U.S. economic growth
including housing permitting, the yield curve, and consumer expectations for
business conditions have been flashing warning signs since the Federal Reserve
began raising interest rates during early 2022.

Amazon, which accounted for 15%-20% of North American industrial absorption
during 2020-21 by CoStar estimates, has clearly pumped the brakes on its
distribution network expansion, canceling a range of development projects and
even putting more than 6 million SF worth of existing distribution centers back
on the market, either through sublease or by letting leases expire. So far,
Amazon has disproportionately shed its smaller, older distribution space in
locations where the firm has recently leased larger, more modern distribution
centers nearby.

U.S. industrial rent growth at 11.4% year over year continues to accelerate as
the slowing economy has yet to move the retail industrial space market in
tenants' favor.

                                       42

At September 30, 2022, national industrial vacancy rates remained at a record
low of 4.0% while our market areas reflected the following vacancy levels:
Springfield, Missouri at 1.2%, St. Louis at 3.7%, Kansas City at 3.9%,
Minneapolis at 2.9%, Tulsa, Oklahoma at 3.9%, Dallas-Fort Worth at 5.6%, Chicago
at 4.1%, Atlanta at 3.5%, Phoenix at 3.8%, Denver at 5.5% and Charlotte, North
Carolina at 5.1%.

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

COVID-19 Impact to 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.

Customers can conduct their banking business using our banking center network,
online and mobile banking services, ATMs, Telephone Banking, and online account
opening services.

COVID-19 infection rates currently are relatively low in our markets and the CDC
has relaxed most restrictions that were previously in place. In some cases those
restrictions have been replaced with recommendations. Also, states and local
municipalities may restrict certain activities from time to time. 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 actively participated in the Paycheck Protection Program ("PPP")
through the SBA. In total, we originated approximately 3,250 PPP loans, totaling
approximately $179 million. SBA forgiveness was approved and processed, and full
repayment proceeds were received by us, for virtually all of these PPP loans
during 2021 and early 2022.

Great Southern received fees from the SBA for originating PPP loans based on the
amount of each loan. At September 30, 2022, remaining net deferred fees related
to PPP loans totaled $8,000, and we expect these remaining net deferred fees
will accrete to interest income during the fourth 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 September 30, 2022 and 2021, Great Southern
recorded approximately $28,000 and $1.6 million, respectively, of net deferred
fees in interest income on PPP loans. In the nine months ended September 30,
2022 and 2021, Great Southern recorded approximately $497,000 and $3.9 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 increased $226.3 million, or 4.2%, from $5.45
billion at December 31, 2021, to $5.68 billion at September 30, 2022. Details of
the current period changes in total assets are provided in the "Comparison of
Financial Condition at September 30, 2022 and December 31, 2021" section of this
Quarterly Report on Form 10-Q.

                                       43

Loans. Net outstanding loans increased $489.6 million, or 12.2%, from $4.01
billion at December 31, 2021, to $4.50 billion at September 30, 2022. The
increase was primarily in other residential (multi-family) loans, one- to four
family residential loans and commercial real estate 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), commercial real estate and one- to four family residential 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, Charlotte, Chicago, Dallas, Denver, Omaha,
Phoenix 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 discontinued 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 September 30, 2022 and
December 31, 2021, 0.2% and 0.3%, respectively, of our owner occupied one-to
four-family residential loans had loan-to-value ratios above 100% at
origination. At both September 30, 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 September 30, 2022, TDRs totaled $3.0 million, or 0.07% of total loans, a
decrease of $865,000 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 interest rate on the loan, payment extensions,
forgiveness of principal, forbearance or other actions intended to maximize
collection. For TDRs occurring during the nine months ended September 30, 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 be discontinued for similar reasons.

                                       44

The Company has been regularly monitoring its portfolio of loans tied to LIBOR
since 2019, with specific groups of loans identified. The Company implemented
LIBOR fallback language for all commercial loan transactions near the end of
2018, with such language utilized for all commercial loan originations and
renewals/modifications since that time. The Company is 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 September 30, 2022, this
represented approximately 34 commercial loans totaling approximately $63
million; however, only 24 of those loans, totaling $23 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 $364 million at September 30, 2022), and that
portfolio is being monitored for potential changes that may be facilitated by
the mortgage industry. The vast majority of the loan portfolio tied to LIBOR now
includes LIBOR replacement language that identifies "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 nine months ended September 30, 2022,
available-for-sale securities decreased $18.2 million, or 3.6%, from $501.0
million at December 31, 2021, to $482.8 million at September 30, 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. 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 decrease was mostly offset with
purchases 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.

Held-to-maturity Securities. In the nine months ended September 30, 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. At September 30, 2022 the balance of held-to-maturity securities was
$206.5 million.

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 nine months ended September 30, 2022, total deposit balances
increased $187.0 million, or 4.1%. Compared to December 31, 2021, transaction
account balances decreased $212.6 million, or 5.9%, to $3.38 billion at
September 30, 2022, while retail certificates of deposit increased $105.4
million, or 11.8%, to $999.1 million at September 30, 2022. The decrease in
transaction accounts was primarily a result of a decrease in
non-interest-bearing accounts, IntraFi Network Reciprocal Deposits and various
money market accounts, as small businesses and individuals appear to be drawing
down their balances to pay for goods and services. Interest-bearing transaction
account balances were also negatively impacted by one large customer that
experienced net outflows of balances, which the Company had been made aware of
and anticipated and which had accumulated in 2020 and 2021 during the height of
the COVID-19 pandemic. Their deposit balances are returning to pre-COVID-19
levels. Retail time deposits increased due to an increase in retail certificates
generated through the banking center network, partially offset by decreases in
national time deposits initiated through internet channels. Time deposits
initiated through internet channels experienced a planned decrease ($125.5
million in the nine months ended September 30, 2022) due to increases in overall
liquidity levels in 2021 and to reduce the Company's cost of funds. Brokered
deposits were $361.6 million and $67.4 million at September 30, 2022 and
December 31, 2021, respectively. The Company uses brokered deposits of select
maturities from time to time to supplement its various funding channels and to
manage interest rate risk.

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
deposits to obtain 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.

                                       45

Our ability to fund growth in future periods may also depend on our continued
access to 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 decreased $12.9 million
from $137.1 million at December 31, 2021 to $124.2 million at September 30,
2022. These balances fluctuate over time based on customer demand for this
product.

Short-term borrowings and other interest-bearing liabilities. Short-term
borrowings and other interest-bearing liabilities increased $97.3 million from
$1.8 million at December 31, 2021 to $99.1 million at September 30, 2022. At
September 30, 2022, $98.0 million of this total was overnight borrowings from
the FHLBank, which were utilized to fund growth in outstanding loans.

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 2022 to date, the FRB increased interest rates on six separate
occasions, 0.25% on March 17, 0.50% on May 5, 0.75% on June 16, 0.75% on July
27, 0.75% on September 22 and 0.75% on November 2. At September 30, 2022, the
Federal Funds rate stood at 3.25% and today stands at 4.00%. Financial markets
are anticipating further increases in interest rates in the remainder of 2022
and the beginning of 2023, with 0.75-1.00% of additional cumulative rate hikes
currently anticipated. A substantial portion of Great Southern's loan portfolio
($1.08 billion at September 30, 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
September 30, 2022. Of these loans, $1.07 billion had interest rate floors.
Great Southern's loan portfolio also includes loans ($357 million at September
30, 2022) tied to various SOFR indexes that will be subject to adjustment at
least once within 90 days after September 30, 2022. Of these loans, $357 million
had interest rate floors. Great Southern also has a portfolio of loans ($724
million at September 30, 2022) tied to a "prime rate" of interest that will
adjust immediately or within 90 days of a change to the "prime rate" of
interest. Of these loans, $665 million had interest rate floors at various
rates. At September 30, 2022, nearly all of these LIBOR/SOFR and "prime rate"
loans had fully-indexed rates that were at or above their floor rate and so are
expected to move fully with future market interest rate increases.

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, SOFR indices 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. There may also be a negative impact on the Company's net interest
income if the Company's is unable to significantly lower its funding costs due
to a highly 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, SOFR-based and
prime-based loans.

                                       46

As of September 30, 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, SOFR 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, SOFR 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 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. Beginning in March 2022, market interest rates, including
LIBOR interest rates and "prime" interest rates, began to increase rapidly. This
has resulted in increasing loan yields and expansion of our net interest income
and net interest margin in 2022. 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 and Nine
Months Ended September 30, 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.

                                       47

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 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) CET1 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-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. Currently, the CBLR is 9.0%. 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 includes regulatory relief in the areas of
examination cycles, call reports, mortgage disclosures and risk weights for
certain high-risk commercial real estate loans.

Business Initiatives

On October 17, 2022, the Company's new banking center in Kimberling City,
Missouri, opened for business. This newly-constructed building replaced the
Company's former facility located on the same property at 14309 Highway 13.
Customers were served from a temporary building on the property during the
demolition and construction period. Including this office, the Company operates
three banking centers in the Branson Tri-Lakes area of southwest Missouri.

In the first quarter of 2023, a high-transaction-volume banking center located
at 1615 West Sunshine Street in Springfield, Missouri, is expected to be razed
to make way for an Express Banking facility, utilizing only interactive teller
machine (ITM) technology to serve customers. The modern four-lane drive-up
center will be the first-of-its-kind in the Springfield market. ITMs, also known
as video remote tellers, offer an ATM-like interface, but with the enhancement
of a video screen that allows customers to speak directly to a service
representative in real time and in a highly personal manner. Nearly any teller
transaction that can be performed in the traditional drive-thru can be performed
at an ITM, including cashing a check to the penny. ITMs provide convenience and
enhanced access for customers, while creating greater operational efficiencies
for the Bank.

Comparison of Financial Condition at September 30, 2022 and December 31, 2021

During the nine months ended September 30, 2022, the Company's total assets
increased by $226.3 million to $5.68 billion. The increase was primarily in
loans and investment securities, partially offset by a decrease in cash
equivalents.

Cash and cash equivalents were $189.0 million at September 30, 2022, a decrease
of $528.3 million, or 73.6%, 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 purchase new investment securities and originate
loans.

                                       48

The Company's available-for-sale securities decreased $18.2 million, or 3.6%,
compared to December 31, 2021. The decrease was primarily related to the
transfer of $226.5 million in available-for-sale securities to held-to-maturity
during 2022 and by calls of municipal securities and normal monthly payments
received related to the portfolio of mortgage-backed securities and
collateralized mortgage obligations. This decrease was mostly offset by the
purchase of U.S. Government agency fixed-rate single-family or multi-family
mortgage-backed securities and collateralized mortgage obligations. The
available-for-sale securities portfolio was 8.5% and 9.2% of total assets at
September 30, 2022 and December 31, 2021, respectively.

Held-to-maturity securities were $206.5 million at September 30, 2022. As
indicated above, during the nine months ended September 30, 2022, $226.5 million
in available-for-sale securities were transferred to held-to-maturity. This
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 3.6% of total assets at
September 30, 2022.

Net loans increased $489.6 million from December 31, 2021, to $4.50 billion at
September 30, 2022. This increase was primarily in other residential
(multi-family) loans ($217 million increase), one- to four-family residential
loans ($202 million increase) and commercial real estate loans ($100 million
increase). These increases were partially offset by a decrease in construction
loans ($29 million decrease). Loan origination volume in the nine months ended
September 30, 2022 was similar to loan origination volume that occurred in 2020
and 2021; however, the pace of loan payoffs prior to maturity has slowed in 2022
due to the increase in market rates of interest.

Total liabilities increased $331.8 million, from $4.83 billion at December 31,
2021 to $5.16 billion at September 30, 2022, primarily due to increases in
short-term borrowings from FHLBank and brokered deposits. This was partially
offset by a reduction in non-interest bearing checking accounts and national
time deposits initiated through internet channels. Time deposits initiated
through internet channels experienced a planned decrease as part of the
Company's balance sheet management between funding sources.

Total deposits increased $187.0 million, or 4.1%, to $4.74 billion at September
30, 2022. Transaction account balances decreased $212.6 million, from $3.59
billion at December 31, 2021 to $3.38 billion at September 30, 2022. Retail
certificates of deposit increased $105.4 million compared to December 31, 2021,
to $999.1 million at September 30, 2022. Changes in transaction account balances
were primarily due to decreases in IntraFi Network Reciprocal Deposits and
non-interest-bearing checking accounts. Total interest-bearing checking and
demand deposit accounts decreased $115.1 million and $97.5 million,
respectively. Customer retail time deposits initiated through our banking center
network increased $237.1 million and time deposits initiated through our
national internet network decreased $125.5 million. The increase in customer
retail time deposits initiated through the banking center network was primarily
due to targeted promotions that started in late June 2022. Customer deposits at
September 30, 2022 and December 31, 2021 totaling $35.6 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 increased $294.2
million to $361.6 million at September 30, 2022, compared to $67.4 million at
December 31, 2021. Brokered deposits were utilized to fund growth in outstanding
loans and to offset reductions in balances in other deposit categories. The
Company has the capacity to further expand its use of brokered deposits if it
chooses to do so.

Securities sold under reverse repurchase agreements with customers decreased
$12.9 million from $137.1 million at December 31, 2021 to $124.2 million at
September 30, 2022. These balances fluctuate over time based on customer demand
for this product.

Short-term borrowings and other interest-bearing liabilities increased $97.3
million from $1.8 million at December 31, 2021 to $99.1 million at September 30,
2022. At September 30, 2022, $98.0 million of this total was overnight
borrowings from the FHLBank, used to fund loans.

Total stockholders' equity decreased $105.5 million, from $616.8 million at
December 31, 2021 to $511.3 million at September 30, 2022. Accumulated other
comprehensive income decreased $91.1 million during the nine months ended
September 30, 2022, primarily due to decreases in the fair value of
available-for-sale investment securities and the fair value of cash flow hedges,
as a result of increased market interest rates. Stockholders' equity also
decreased due to repurchases of the Company's common stock totaling $59.2
million and dividends declared on common stock of $14.5 million. The Company
recorded net income of $53.3 million for the nine months ended September 30,
2022. In addition, stockholders' equity increased $6.0 million due to stock
option exercises.

                                       49

Results of Operations and Comparison for the Three and Nine Months Ended
September 30, 2022 and 2021

General

Net income was $18.1 million for the three months ended September 30, 2022
compared to $20.4 million for the three months ended September 30, 2021. This
decrease of $2.3 million, or 11.0%, was primarily due to an increase in
provision for credit losses on loans and unfunded commitments of $5.7 million,
or 240.6%, an increase in non-interest expense of $3.4 million, or 10.9%, and a
decrease in non-interest income of $1.8 million, or 18.5%, partially offset by
an increase in net interest income of $8.0 million, or 17.8%, and a decrease in
income tax expense of $699,000, or 13.0%.

Net income was $53.3 million for the nine months ended September 30, 2022
compared to $59.3 million for the nine months ended September 30, 2021. This
decrease of $6.0 million, or 10.1%, was primarily due to an increase in
non-interest expense of $7.2 million, or 7.8%, an increase in provision for
credit losses on loans and unfunded commitments of $9.4 million, or 232.4%, and
a decrease in non-interest income of $2.6 million, or 9.1%, partially offset by
an increase in net interest income of $11.3 million, or 8.5%, and a decrease in
income tax expense of $1.9 million, or 12.1%.

Total Interest Income

Total interest income increased $10.0 million, or 20.2%, during the three months
ended September 30, 2022 compared to the three months ended September 30, 2021.
The increase was due to a $2.5 million increase in interest income on investment
securities and other interest-earning assets and a $7.5 million increase in
interest income on loans. Interest income from investment securities and other
interest-earning assets increased during the three months ended September 30,
2022 compared to the same period in 2021 due to higher average balances of
investment securities and higher average rates of interest on investment
securities and other interest-earning assets. Interest income on loans increased
for the three months ended September 30, 2022 compared to the same period in
2021, due to higher average loan balances and higher average rates of interest.

Total interest income increased $8.3 million, or 5.5%, during the nine months
ended September 30, 2022 compared to the nine months ended September 30, 2021.
The increase was due to a $6.0 million increase in interest income on investment
securities and other interest-earning assets and a $2.3 million increase in
interest income on loans. Interest income on loans increased for the nine months
ended September 30, 2022 compared to the same period in 2021, primarily due to
higher average rates of interest on loans, partially offset by lower average
loan balances. Interest income from investment securities and other
interest-earning assets increased during the nine months ended September 30,
2022 compared to the same period in 2021, due to higher average balances of
investment securities combined with higher average rates of interest on
investment securities and other interest-earning assets.

Interest Income - Loans

During the three months ended September 30, 2022 compared to the three months
ended September 30, 2021, interest income on loans increased $4.8 million due to
higher average interest rates on loans. The average yield on loans increased
from 4.35% during the three months ended September 30, 2021, to 4.79% during the
three months ended September 30, 2022. This increase was primarily due to the
repricing of floating rates in 2022 as market interest rates began to increase
significantly. Interest income on loans also increased $2.7 million as the
result of higher average loan balances, which increased from $4.24 billion
during the three months ended September 30, 2021, to $4.48 billion during the
three months ended September 30, 2022. The Company continued to originate loans
at a pace similar to prior periods, but overall loan repayments slowed in 2022
compared to the level of repayments in 2021.

During the nine months ended September 30, 2022 compared to the nine months
ended September 30, 2021, interest income on loans increased $3.3 million as a
result of higher average interest rates on loans. The average yield on loans
increased from 4.36% during the nine months ended September 30, 2021, to 4.46%
during the nine months ended September 30, 2022. This increase was primarily due
to increased yields as market interest rates began to increase significantly in
2022. Partially offsetting that increase was a decrease in average loan
balances. Interest income on loans decreased $1.0 million as the result of lower
average loan balances, which decreased from $4.34 billion during the nine months
ended September 30, 2021, to $4.31 billion during the nine months ended
September 30, 2022. The lower average balances were primarily due to higher loan
repayments during the latter half of 2021.

Additionally, the Company's interest income on loans included accretion of net
deferred fees related to PPP loans originated in 2020 and 2021. Net deferred
fees recognized in interest income were $28,000 and $497,000 in the three and
nine months ended September 30, 2022, respectively, compared to $1.6 million and
$3.9 million in the three and nine months ended September 30, 2021,
respectively.

                                       50

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 notional interest rate swap prior to its contractual
maturity. The Company was paid $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 the
interest rate swap of $2.0 million in each of the three months ended September
30, 2022 and the three months ended September 30, 2021. The Company recorded
interest income related to the interest rate swap of $6.1 million in each of the
nine months ended September 30, 2022 and the nine months ended September 30,
2021. At September 30, 2022, the Company expected 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 exceeds 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 a reduction in loan
interest income related to this swap transaction of $428,000 in the three months
ended September 30, 2022 and interest income of $610,000 in the nine months
ended September 30, 2022. At October 1, 2022, the one-month USD-LIBOR rate was
3.14271%.

In July 2022, the Company entered into two interest rate swap transactions as
part of its ongoing interest rate management strategies to hedge the risk of its
floating rate loans. The notional amount of each swap is $200 million with an
effective date of May 1, 2023 and a termination date of May 1, 2028. Under the
terms of one swap, beginning in May 2023, the Company will receive a fixed rate
of interest of 2.628% and will pay a floating rate of interest equal to
one-month USD-SOFR OIS. Under the terms of the other swap, beginning in May
2023, the Company will receive a fixed rate of interest of 5.725% and will pay a
floating rate of interest equal to one-month USD-Prime. In each case, the
floating rate will be reset monthly and net settlements of interest due to/from
the counterparty will also occur monthly. To the extent the fixed rate of
interest exceeds the floating rate of interest, the Company will receive net
interest settlements, which will be recorded as loan interest income. If the
floating rate of interest exceeds the fixed rate of interest, 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. At September 30, 2022, the
USD-Prime rate was 6.25% and the one-month USD-SOFR OIS rate was 2.49208%.

Interest Income - Investments and Other Interest-earning Assets

Interest income on investments increased $2.3 million in the three months ended
September 30, 2022 compared to the three months ended September 30, 2021.
Interest income increased $1.9 million as a result of an increase in average
balances from $453.3 million during the three months ended September 30, 2021,
to $734.5 million during the three months ended September 30, 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, which fits with the Company's current
asset/liability management strategies. Interest income increased $313,000 as a
result of higher average interest rates from 2.52% during the three months ended
September 30, 2021, to 2.77% during the three month period ended September 30,
2022.

Interest income on investments increased $5.6 million in the nine months ended
September 30, 2022 compared to the nine months ended September 30, 2021.
Interest income increased $4.8 million as a result of an increase in average
balances from $442.8 million during the nine months ended September 30, 2021, to
$670.7 million during the nine months ended September 30, 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. In addition, interest income increased $816,000 as a
result of higher average interest rates from 2.61% during the nine months ended
September 30, 2021, to 2.84% during the nine months ended September 30, 2022.
Also, during the nine months ended September 30, 2022, the Company recorded
interest income of $812,000 received due to the early repayment of one
investment security.

                                       51

Interest income on other interest-earning assets increased $224,000 in the three
months ended September 30, 2022 compared to the three months ended September 30,
2021. Interest income increased $240,000 as a result of higher average interest
rates from 0.15% during the three months ended September 30, 2021, to 2.11%
during the three month period ended September 30, 2022. Partially offsetting
that increase, interest income decreased $16,000 as a result of a decrease in
average balances from $604.0 million during the three months ended September 30,
2021, to $84.8 million during the three months ended September 30, 2022. The
increase in the average interest rates was due to the increase in the rate paid
on funds held at the Federal Reserve Bank. This rate was increased in March,
May, June, July and September 2022 in conjunction with the increase in the
Federal Funds target interest rate.

Interest income on other interest-earning assets increased $397,000 in the nine
months ended September 30, 2022 compared to the nine months ended September 30,
2021. Interest income increased $479,000 as a result of higher average interest
rates from 0.12% during the nine months ended September 30, 2021, to 0.53%
during the nine month period ended September 30, 2022. Interest income decreased
$82,000 as a result of a decrease in average balances from $513.4 million during
the nine months ended September 30, 2021, to $218.3 million during the nine
months ended September 30, 2022. The increase in the average interest rates was
due to the increase in the rate paid on funds held at the Federal Reserve Bank,
as noted above.

Total Interest Expense

Total interest expense increased $2.0 million, or 43.3%, during the three months
ended September 30, 2022, when compared with the three months ended September
30, 2021, due to an increase in interest expense on deposits of $2.1 million, or
70.4%, an increase in interest expense on short-term borrowings of $377,000, an
increase in interest expense on subordinated debentures issued to capital trusts
of $137,000, or 123.4%, and an increase in interest expense on securities sold
under reverse repurchase agreements of $35,000, or 350.0%, partially offset by a
decrease in interest expense on subordinated notes of $566,000, or 33.9%.

Total interest expense decreased $3.0 million, or 17.6%, during the nine months
ended September 30, 2022, when compared with the nine months ended September 30,
2021, due to a decrease in interest expense on subordinated notes of $2.7
million, or 45.3%, and a decrease in interest expense on deposits of $1.1
million, or 10.3%, partially offset by an increase in interest expense on
short-term borrowings of $614,000, or 182.2%, an increase in interest expense on
subordinated debentures issued to capital trusts of $188,000, or 55.8%, and an
increase in interest expense on securities sold under reverse repurchase
agreements of $33,000, or 113.8%.

Interest Expense - Deposits

Interest expense on demand deposits increased $420,000 due to average rates of
interest that increased from 0.15% in the three months ended September 30, 2021
to 0.23% in the three months ended September 30, 2022. Interest rates paid on
demand deposits were higher in the 2022 period due to significant reductions in
the federal funds rate of interest and other market interest rates in 2020 and
2021 that are now increasing. Partially offsetting this increase, interest
expense on demand deposits decreased $22,000, due to a decrease in average
balances from $2.36 billion during the three months ended September 30, 2021 to
$2.30 billion during the three months ended September 30, 2022. The Company
experienced decreased balances in various types of money market accounts,
certain types of NOW accounts and IntraFi Network Reciprocal Deposits.

Interest expense on demand deposits decreased $319,000 due to average rates of
interest that decreased from 0.18% in the nine months ended September 30, 2021
to 0.17% in the nine months ended September 30, 2022. Interest rates paid on
demand deposits were lower in the 2022 period due to significant reductions in
the federal funds rate of interest and other market interest rates since 2020,
although those market interest rates have been increasing significantly since
May 2022. Partially offsetting this decrease, interest expense on demand
deposits increased $92,000, due to an increase in average balances from $2.29
billion during the nine months ended September 30, 2021 to $2.36 billion during
the nine months ended September 30, 2022. The Company experienced increased
balances in various types of money market accounts, certain types of NOW
accounts and IntraFi Network Reciprocal Deposits.

Interest expense on time deposits increased $1.5 million as a result of an
increase in average rates of interest from 0.71% during the three months ended
September 30, 2021, to 1.22% during the three months ended September 30, 2022.
Interest expense on time deposits increased $153,000 due to an increase in
average balances of time deposits from $1.11 billion during the three months
ended September 30, 2021 to $1.20 billion in the three months ended September
30, 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 higher rate of interest due to increases in market interest
rates throughout 2022 and targeted promotions during the three months ended
September 30, 2022. The increase in average balances of time deposits was
primarily a result of increases in retail customer time deposits obtained
through the banking center network and increases in brokered time deposits.
On-line channel deposits were actively reduced by the Company during 2021 and
2022 as other deposit sources increased.

                                       52

Interest expense on time deposits decreased $1.3 million due to a decrease in
average balances of time deposits from $1.21 billion during the nine months
ended September 30, 2021 to $1.02 billion in the nine months ended September 30,
2022. Interest expense on time deposits increased $458,000 as a result of an
increase in average rates of interest from 0.82% during the nine months ended
September 30, 2021, to 0.87% during the nine months ended September 30, 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 higher rate of interest due to rates increasing during the nine
months ended September 30, 2022 due to increases in market interest rates and
targeted promotions. The decrease in average balances of time deposits was
primarily 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 Expense - FHLBank Advances; Short-term Borrowings, Repurchase
Agreements and Other Interest-bearing Liabilities; Subordinated Debentures
Issued to Capital Trusts and Subordinated Notes

FHLBank advances were not utilized during the three and nine months ended
September 30, 2022 and 2021.

Interest expense on reverse repurchase agreements increased $35,000 during the
three months ended September 30, 2022 when compared to the three months ended
September 30, 2021. The average rate of interest was 0.13% for the three months
ended September 30, 2022 compared to 0.03% for the three months ended September
30, 2021. The average balance of repurchase agreements decreased $15.1 million
from $150.0 million in the three months ended September 30, 2021 to $134.9
million in the three months ended September 30, 2022, which was due to changes
in customers' need for this product, which can fluctuate.

Interest expense on reverse repurchase agreements increased $33,000 during the
nine months ended September 30, 2022 when compared to the nine months ended
September 30, 2021. The average rate of interest was 0.06% for the nine months
ended September 30, 2022, compared to 0.03% during the nine months ended
September 30, 2021. The average balance of repurchase agreements decreased $12.6
million from $145.5 million in the nine months ended September 30, 2021 to
$132.9 million in the nine months ended September 30, 2022.

Interest expense on short-term borrowings (including overnight borrowings from
the FHLBank) and other interest-bearing liabilities increased $278,000 during
the three months ended September 30, 2022 when compared to the three months
ended September 30, 2021 due to higher average balances. The average balance of
short-term borrowings and other interest-bearing liabilities increased $68.8
million from $1.2 million in the three months ended September 30, 2021 to $70.0
million in the three months ended September 30, 2022, which was primarily due to
changes in the Company's funding needs and the mix of funding, which can
fluctuate. Most of this increase was due to the utilization of overnight
borrowings from the FHLBank. Interest expense on short-term borrowings
(including overnight borrowings from the FHLBank) and other interest-bearing
liabilities increased $99,000 during the three months ended September 30, 2022
when compared to the three months ended September 30, 2021 due to higher average
rates of interest. The average rate of interest was 2.14% for the three months
ended September 30, 2022, compared to 0.00% for the three months ended September
30, 2021.

Interest expense on short-term borrowings (including overnight borrowings from
the FHLBank) and other interest-bearing liabilities increased $413,000 during
the nine months ended September 30, 2022 when compared to the nine months ended
September 30, 2021 due to higher average balances. The average balance of
short-term borrowings and other interest-bearing liabilities increased $47.7
million from $1.5 million in the nine months ended September 30, 2021 to $49.2
million in the nine months ended September 30, 2022, which was primarily due to
changes in the Company's funding needs and the mix of funding, which can
fluctuate. Most of this increase was due to the utilization of overnight
borrowings from the FHLBank. Interest expense on short-term borrowings
(including overnight borrowings from the FHLBank) and other interest-bearing
liabilities increased $201,000 during the nine months ended September 30, 2022
when compared to the nine months ended September 30, 2021 due to higher average
rates of interest. The average rate of interest was 1.67% for the nine months
ended September 30, 2022, compared to 0.00% for the nine months ended September
30, 2021.

During the three months ended September 30, 2022, compared to the three months
ended September 30, 2021, interest expense on subordinated debentures issued to
capital trusts increased $137,000 due to higher average interest rates. The
average interest rate was 3.82% in the three months ended September 30, 2022
compared to 1.71% in the three months ended September 30, 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 4.38% at
September 30, 2022. There was no change in the average balance of the
subordinated debentures between the 2021 and 2022 periods.

                                       53

During the nine months ended September 30, 2022, compared to the nine months
ended September 30, 2021, interest expense on subordinated debentures issued to
capital trusts increased $188,000 due to higher average interest rates. The
average interest rate was 2.72% in the nine months ended September 30, 2022
compared to 1.75% in the nine months ended September 30, 2021. 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 $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 September 30, 2022, compared to the three months
ended September 30, 2021, interest expense on subordinated notes decreased
$516,000 due to lower average balances during the three months ended September
30, 2022 resulting from the redemption of the 5.25% subordinated notes due
August 15, 2026. The average balance of subordinated notes was $74.2 million in
the three months ended September 30, 2022 compared to $108.9 million in the
three months ended September 30, 2021. Interest expense on subordinated notes
decreased $50,000 due to slightly lower weighted average interest rates. The
average interest rate was 5.91% in the three months ended September 30, 2022
compared to 6.09% in the three months ended September 30, 2021.

During the nine months ended September 30, 2022, compared to the nine months
ended September 30, 2021, interest expense on subordinated notes decreased $2.7
million due to lower average balances, for the reasons discussed above. There
was no change to the average interest rate in the nine months ended September
30, 2022 compared to the nine months ended September 30, 2021.

Net Interest Income

Net interest income for the three months ended September 30, 2022 increased $8.0
million to $52.9 million compared to $44.9 million for the three months ended
September 30, 2021. Net interest margin was 3.96% in the three months ended
September 30, 2022, compared to 3.36% in the three months ended September 30,
2021, an increase of 60 basis points, or 17.9%. The Company experienced
increases in interest income on both loans and investment securities. The
Company experienced increases in interest expense on deposits, short-term
borrowings and subordinated debentures issued to capital trust, and experienced
a decrease in interest expense on subordinated notes.

Net interest income for the nine months ended September 30, 2022 increased $11.3
million to $145.0 million compared to $133.7 million for the nine months ended
September 30, 2021. Net interest margin was 3.73% in the nine months ended
September 30, 2022, compared to 3.37% in the nine months ended September 30,
2021, an increase of 36 basis points, or 10.7%. The Company experienced
increases in interest income on both loans and investment securities. The
Company experienced decreases in interest expense on subordinated notes and
deposits, and experienced an increase in interest expense on short-term
borrowings and subordinated debentures issued to capital trust.

The Company's overall average interest rate spread increased 54 basis points, or
16.8%, from 3.22% during the three months ended September 30, 2021 to 3.76%
during the three months ended September 30, 2022. The increase was due to a 74
basis point increase in the weighted average yield on interest-earning assets
and a 20 basis point increase in the weighted average rate paid on
interest-bearing liabilities. In comparing the two periods, the yield on loans
increased 44 basis points, the yield on investment securities increased 25 basis
points and the yield on other interest-earning assets increased 196 basis
points. The rate paid on deposits increased 23 basis points, the rate paid on
subordinated debentures issued to capital trusts increased 211 basis points, the
rate paid on reverse repurchase agreements increased 11 basis points and the
rate paid on subordinated notes decreased 18 basis points. In addition, the
Company had outstanding overnight borrowings in the 2022 period, which had an
average interest rate of 214 basis points compared to none in the 2021 period.

                                       54

The Company's overall average interest rate spread increased 38 basis points, or
11.9%, from 3.20% during the nine months ended September 30, 2021 to 3.58%
during the nine months ended September 30, 2022. The increase was due to a 29
basis point increase in the weighted average yield on interest-earning assets
and a nine basis point decrease in the weighted average rate paid on
interest-bearing liabilities. In comparing the two periods, the yield on loans
increased ten basis points, the yield on investment securities increased 23
basis points and the yield on other interest-earning assets increased 41 basis
points. The rate paid on deposits decreased three basis points, the rate paid on
subordinated debentures issued to capital trusts increased 97 basis points, the
rate paid on reverse repurchase agreements increased three basis points and the
rate paid on subordinated notes was unchanged. In addition, the Company had
outstanding overnight borrowings in the 2022 period, which had an average
interest rate of 167 basis points compared to none in the 2021 period.

For additional information on net interest income components, refer to the
"Average Balances, Interest Rates and Yields" tables in this Quarterly Report on
Form 10-Q.

Provision for and Allowance 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 replaced 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 economic conditions,
such as changes in the national unemployment rate, commercial real estate price
index, housing price index, consumer sentiment, gross domestic product (GDP) and
construction spending.

Worsening economic conditions from COVID-19 and subsequent variant outbreaks 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 September 30, 2022, the Company recorded provision
expense of $2.0 million on its portfolio of outstanding loans, compared to a
negative provision expense of $3.0 million recorded for the three months ended
September 30, 2021. During the nine months ended September 30, 2022, the Company
recorded provision expense of $2.0 million on its portfolio of outstanding
loans, compared to a negative provision of $3.7 million recorded for the nine
months ended September 30, 2021. The negative provision for credit losses in the
2021 periods reflected positive trends in asset quality metrics, combined with
an improved economic forecast. The positive trends in asset quality metrics
continued in the 2022 periods. The provision recorded during the three months
ended September 30, 2022 was primarily due to loan growth. In the three months
ended September 30, 2022 and 2021, the Company experienced net charge-offs of
$297,000 and net recoveries of $27,000, respectively. In the nine months ended
September 30, 2022 and 2021, the Company experienced net recoveries of $7,000
and net charge-offs of $9,000, respectively. The provision for losses on
unfunded commitments for the three months ended September 30, 2022 was $1.3
million, compared to a provision of $643,000 for the three months ended
September 30, 2021. The provision for losses on unfunded commitments for the
nine months ended September 30, 2022 was $3.3 million, compared to a negative
provision of $338,000 for the nine months ended September 30, 2021. The level
and mix of unfunded commitments resulted in an increase in the required reserve
for such potential losses. General market conditions and unique circumstances
related to specific industries and individual projects contribute to the level
of provisions and charge-offs.

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. 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 primary focus being placed on
those loan pools which exhibit higher risk characteristics. Review of the
acquired loan portfolio includes review of financial information, collateral
valuations and customer interaction to determine if additional reserves are
warranted.

                                       55

The Bank's allowance for credit losses as a percentage of total loans was 1.38%
and 1.49% at September 30, 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 September 30, 2022, based on recent reviews of the
Bank's loan portfolio and current economic conditions. If challenging economic
conditions were to continue or deteriorate, or if 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

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

At September 30, 2022, non-performing assets were $3.4 million, a decrease of
$2.6 million from $6.0 million at December 31, 2021. Non-performing assets as a
percentage of total assets were 0.06% at September 30, 2022, compared to 0.11%
at December 31, 2021.

Compared to December 31, 2021, non-performing loans decreased $2.1 million, to
$3.3 million at September 30, 2022, and foreclosed and repossessed assets
decreased $502,000, to $86,000 at September 30, 2022. Non-performing commercial
real estate loans comprised $1.6 million, or 49.2%, of the total non-performing
loans at September 30, 2022, a decrease of $388,000 from December 31, 2021.
Non-performing one- to four-family residential loans comprised $821,000, or
24.9%, of the total non-performing loans at September 30, 2022, a decrease of
$1.4 million from December 31, 2021. Non-performing construction and land
development loans comprised $468,000, or 14.2%, of the total non-performing
loans at September 30, 2022, unchanged from December 31, 2021. Non-performing
consumer loans comprised $386,000, or 11.7%, of the total non-performing loans
at September 30, 2022, a decrease of $347,000 from December 31, 2021.

Non-performing Loans. Activity in the non-performing loans category during the
nine months ended September 30, 2022 was as follows:

                                                                                      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      September 30

                                                                                              (In Thousands)
One- to four-family construction         $         -    $         -    $   

     -    $           -    $            -    $       -    $       -    $            -
Subdivision construction                           -              -              -                -                 -            -            -                 -
Land development                                 468              -              -                -                 -            -            -               468
Commercial construction                            -              -              -                -                 -            -            -                 -

One- to four-family residential                2,216            292        

  (90)            (279)                 -         (36)      (1,282)               821
Other residential                                  -              -              -                -                 -            -            -                 -
Commercial real estate                         2,006             58              -                -                 -            -        (446)             1,618
Commercial business                                -              -              -                -                 -            -            -                 -
Consumer                                         733             96              -             (73)               (9)         (54)        (307)               386
Total non-performing loans               $     5,423    $       446    $      (90)    $       (352)    $          (9)    $    (90)    $ (2,035)    $        3,293

FDIC-assisted acquired loans included
above                                    $     1,736    $       204    $         -    $           -    $            -    $       -    $ (1,339)    $          601


At September 30, 2022, the non-performing commercial real estate category
included three loans, one of which was added during the nine months ended
September 30, 2022. The largest relationship in the category, which totaled $1.4
million, or 83.6% of the total category, was transferred from potential problem
loans during the fourth quarter of 2021, and is collateralized by a mixed-use
commercial retail building. The non-performing one- to four-family residential
category included 24 loans, four of which were added during the nine months
ended September 30, 2022. The largest relationship in the category totaled
$204,000, or 24.8% of the category. The non-performing one- to four-family
residential category experienced $1.3 million in repayments during the nine
months ended September 30, 2022, of which $752,000 related to a note sale of six
non-performing loans during the three months ending September 30, 2022. 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 25 loans, nine of which were added during the nine months
ended September 30, 2022.

                                       56

Potential Problem Loans. Compared to December 31, 2021, potential problem loans
decreased $155,000, or 7.8%, to $1.8 million at September 30, 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 the potential problem loans categories during the nine months ended
September 30, 2022, was as follows:

                                                                                  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 September 30

                                                                                                      (In Thousands)
One- to four-family construction               $         -    $           

-    $         -    $            -    $            -    $       -    $        -    $            -
Subdivision construction                                15                 -              -                 -                 -            -          (15)                 -
Land development                                         -                 -              -                 -                 -            -             -                 -
Commercial construction                                  -                 -              -                 -                 -            -             -                 -
One- to four-family residential                      1,432               279          (275)                 -                 -            -          (66)             1,370
Other residential                                        -                 -              -                 -                 -            -             -                 -
Commercial real estate                                 210                 -              -                 -                 -            -          (14)               196
Commercial business                                      -                 -              -                 -                 -            -             -                 -
Consumer                                               323               151           (58)              (37)              (14)          (9)          (97)               259
Total potential problem loans                  $     1,980    $          430    $     (333)    $         (37)    $         (14)    $     (9)    $    (192)    $        1,825

FDIC-assisted acquired loans included above    $     1,004    $            -    $         -    $            -    $            -    $       -    $    

(55) $ 949

At September 30, 2022, the one- to four-family residential category of potential
problem loans included 22 loans, one of which was added during the nine months
ended September 30, 2022. The largest relationship in this category totaled
$161,000, or 11.8% of the total 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 28 loans, 18 of which
were added during the nine months ended September 30, 2022.

Other Real Estate Owned and Repossessions. Of the total $269,000 of other real
estate owned and repossessions at September 30, 2022, $183,000 represents
properties which were not acquired through foreclosure.

Activity in foreclosed assets and repossessions during the nine months ended
September 30, 2022, was as follows:

                                                 Beginning                                                              Ending
                                                 Balance,                                 Capitalized     Write-       Balance,
                                                 January 1      Additions      Sales         Costs         Downs     September 30

                                                                                  (In Thousands)

One- to four-family construction                $         -    $         - 

  $     -    $           -    $     -    $           -
Subdivision construction                                  -              -          -                -          -                -
Land development                                        315              -      (300)                -       (15)                -
Commercial construction                                   -              -          -                -          -                -

One- to four-family residential                         183              - 

    (175)                -        (8)                -
Other residential                                         -              -          -                -          -                -
Commercial real estate                                    -              -          -                -          -                -
Commercial business                                       -              -          -                -          -                -
Consumer                                                 90            227      (231)                -          -               86

Total foreclosed assets and repossessions       $       588    $       227    $ (706)    $           -    $  (23)    $          86

FDIC-assisted acquired assets included above    $       498    $         -    $ (475)    $           -    $  (23)    $           -


The one remaining property in the land development category of foreclosed assets
was sold during the three months ended March 31, 2022. The two remaining
properties in the one- to four-family residential category of foreclosed assets
were sold during the three months ended June 30, 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.

                                       57

Loans Classified "Watch"

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 nine
months ended September 30, 2022, loans classified as "Watch" decreased $1.9
million, from $30.7 million at December 31, 2021 to $28.9 million at September
30, 2022 primarily due to loans being upgraded out of the "Watch" category,
partially offset by loans being downgraded to the "Watch" category. See Note 6
for further discussion of the Company's loan grading system.

Non-interest Income

For the three months ended September 30, 2022, non-interest income decreased
$1.8 million to $8.0 million when compared to the three months ended September
30, 2021, primarily as a result of the following item:

Net gains on loan sales: Net gains on loan sales decreased $1.7 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 moved higher beginning in the second
quarter of 2022, mortgage refinance volume has decreased and fixed rate loan
originations and related gains on sales of these loans have decreased
substantially. The lower level of originations is expected to continue as long
as market rates remain elevated.

For the nine months ended September 30, 2022, non-interest income decreased $2.6
million to $26.5 million when compared to the nine months ended September 30,
2021, primarily as a result of the following items:

Net gains on loan sales: Net gains on loan sales decreased $5.4 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 for the same reasons noted above.

Point-of-sale and ATM fees: Point-of-sale and ATM fees increased $899,000
compared to the prior year period. This increase was mainly due to increased
customer debit card transactions in the 2022 period compared to the 2021 period.
In the latter half of 2021 and through the first three quarters of 2022, debit
card usage by customers rebounded and was back to historical levels, and in many
cases, increased levels of activity.

Overdraft and insufficient funds fees: Overdraft and Insufficient funds fees
increased $1.0 million compared to the prior year period. It appears that
consumers have continued to spend significantly in 2022, but some may have lower
account balances as prices for goods and services have increased and government
stimulus payments received by consumers in 2020 and 2021 have been exhausted.

Other income: Other income increased $1.1 million compared to the prior year
period. In the 2022 period, a gain of $1.1 million was recognized on sales of
fixed assets. Also in the 2022 period, the Company recorded a one-time bonus of
$500,000 from its card processor for achieving certain benchmarks related to
debit card activity.

Non-interest Expense

For the three months ended September 30, 2022, non-interest expense increased
$3.5 million to $34.8 million when compared to the three months ended September
30, 2021, primarily as a result of the following items:

Salaries and employee benefits: Salaries and employee benefits increased $1.1
million from the prior year quarter. A portion 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 Phoenix loan office was opened in the
first quarter of 2022 and the Charlotte, North Carolina loan office was opened
in the second quarter of 2022. The operation of these offices added
approximately $200,000 of expense in the 2022 quarter.

                                       58

Legal, Audit and Other Professional Fees: Legal, audit and other professional
fees increased $1.6 million from the prior year quarter, to $2.2 million. In the
2022 period, the Company expensed a total of $1.1 million related to training
and implementation costs for the upcoming core systems conversion and
professional fees to consultants engaged to support the Company's transition of
core and ancillary software and information technology systems. Also in the 2022
period, the Company expensed $372,000 in fees related to the interest rate swaps
initiated in July 2022.

Other operating expenses: Other operating expenses increased $576,000 from the
prior year quarter, to $2.4 million. Of this increase, $142,000 related to
business development, $152,000 related to deposit account fraud losses and
$90,000 related to charitable contributions.

For the nine months ended September 30, 2022, non-interest expense increased
$7.1 million to $99.0 million when compared to the nine months ended September
30, 2021, primarily as a result of the following items:

Salaries and employee benefits: Salaries and employee benefits increased $3.6
million from the prior year period, for the same reasons noted above. Also, in
the second quarter of 2022, the Company paid a special cash bonus to all
employees totaling $1.1 million in response to the rapid and significant
increases in prices for many goods and services.

Legal, Audit and Other Professional Fees: Legal, audit and other professional
fees increased $2.4 million from the prior year period, to $4.2 million, with
$1.6 million related to training and implementation costs for the upcoming core
systems conversion and professional fees to consultants engaged to support the
Company's transition of core and ancillary software and information technology
systems. Also in the 2022 period, the Company expensed $492,000 in fees related
to the interest rate swaps initiated at various times in 2022.

Other operating expenses: Other operating expenses increased $1.3 million from
the prior year period, to $6.1 million. Of this increase, $353,000 related to
business development, $278,000 related to deposit account fraud losses and
$188,000 related to charitable contributions.

The Company's efficiency ratio for the three months ended September 30, 2022,
was 57.09% compared to 57.27% for the same period in 2021. The Company's
efficiency ratio for the nine months ended September 30, 2022, was 57.75%
compared to 56.42% for the same period in 2021. In the three-month period ended
September 30, 2022, the improvement in the efficiency ratio was primarily due to
an increase in net interest income, as a result of increased loan and investment
balances and increased market interest rates compared to the three-month period
ended September 30, 2021, partially offset by increased non-interest expense. In
the nine-month period ended September 30, 2022, the higher efficiency ratio was
primarily due to an increase in non-interest expense, for the reasons noted
above. The Company's ratio of non-interest expense to average assets was 2.49%
and 2.27% for the three months ended September 30, 2022 and 2021, respectively.
The Company's ratio of non-interest expense to average assets was 2.42% and
2.22% for the nine months ended September 30, 2022 and 2021, respectively.
Average assets for the three months ended September 30, 2022, decreased $50.0
million, or 0.9%, from the three months ended September 30, 2021, primarily due
to a decrease in interest bearing cash equivalents, partially offset by an
increase in net loans receivable and investment securities. Average assets for
the nine months ended September 30, 2022, decreased $74.4 million, or 1.3%, from
the nine months ended September 30, 2021, primarily due to a decrease in
interest bearing cash equivalents and net loans receivable, partially offset by
an increase in investment securities.

Provision for Income Taxes

For the three months ended September 30, 2022 and 2021, the Company's effective
tax rate was 20.5% and 20.9%, respectively. For the nine months ended September
30, 2022 and 2021, the Company's effective tax rate was 20.5% and 20.9%,
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 the Company's 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 continually evolve as taxable income
and apportionment between states is 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.

                                       59

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 also includes the
amortization of net loan fees which were deferred in accordance with accounting
standards. Net fees included in interest income were $1.6 million and $2.9
million for the three months ended September 30, 2022 and 2021, respectively.
Net fees included in interest income were $4.7 million and $7.9 million for the
nine months ended September 30, 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.

                                                       September 30,              Three Months Ended                        Three Months Ended
                                                           2022                   September 30, 2022                        September 30, 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                                 3.34 %  $  

872,243    $     7,532        3.43 %  $   687,899    $     6,333        3.65 %
Other residential                                               5.37        885,883         11,836        5.30        934,727         10,456        4.44
Commercial real estate                                          4.90      1,584,249         19,368        4.85      1,537,874         16,477        4.25
Construction                                                    5.34        635,811          9,116        5.69        596,747          6,686        4.44
Commercial business                                             5.06        293,529          3,734        5.05        257,324          3,932        6.06
Other loans                                                     5.15       

197,070 2,309 4.65 212,828 2,484 4.63
Industrial revenue bonds(1)

                                     5.14         13,100            182        5.52         14,402            168        

4.63

Total loans receivable                                          4.92      

4,481,885 54,077 4.79 4,241,801 46,536 4.35

Investment securities(1)                                        2.70       

734,518 5,129 2.77 453,304 2,877 2.52
Interest-earning deposits in other banks

                        3.08         84,797            451        2.11        603,956            227        

0.15

Total interest-earning assets                                   4.63      5,301,200         59,657        4.46      5,299,061         49,640        3.72
Non-interest-earning assets:
Cash and cash equivalents                                                   101,307                                   101,818
Other non-earning assets                                                    176,768                                   128,448
Total assets                                                            $ 5,579,275                               $ 5,529,327

Interest-bearing liabilities:
Interest-bearing demand and savings                             0.39    $ 2,303,579          1,320        0.23    $ 2,360,755            922        0.15
Time deposits                                                   1.54      1,196,452          3,664        1.22      1,114,995          2,003        0.71
Total deposits                                                  0.83     

3,500,031 4,984 0.56 3,475,750 2,925 0.33
Securities sold under reverse repurchase agreements

             0.69        134,917             45        0.13        150,054             10        

0.02

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

                          3.29         69,956            377        2.14          1,206              -           -
Subordinated debentures issued to capital trusts                4.38       

 25,774            248        3.82         25,774            111        1.71
Subordinated notes                                              5.96         74,165          1,105        5.91        108,913          1,671        6.09

Total interest-bearing liabilities                              1.00      3,804,843          6,759        0.70      3,761,697          4,717        0.50
Non-interest-bearing liabilities:
Demand deposits                                                           1,146,542                                 1,085,781
Other liabilities                                                            70,566                                    46,319
Total liabilities                                                         5,021,951                                 4,893,797
Stockholders' equity                                                        557,324                                   635,530
Total liabilities and stockholders' equity                              $ 5,579,275                               $ 5,529,327

Net interest income:
Interest rate spread                                            3.63 %                 $    52,898        3.76 %                 $    44,923        3.22 %
Net interest margin*                                                                                      3.96 %                                    3.36 %
Average interest-earning assets to average
interest- bearing liabilities                                                 139.3 %                                   140.9 %

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

Of the total average balances of investment securities, average tax-exempt

investment securities were $63.4 million and $40.8 million for the three

months ended September 30, 2022 and 2021, respectively. In addition, average

tax-exempt loans and industrial revenue bonds were $16.2 million and $17.6
(1) million for the three months ended September 30, 2022 and 2021, respectively.

Interest income on tax-exempt assets included in this table was $628,000 and

$397,000 for the three months ended September 30, 2022 and 2021,

respectively. Interest income net of disallowed interest expense related to

    tax-exempt assets was $604,000 and $389,000 for the three months ended
    September 30, 2022 and 2021, respectively.


                                       60

                                                                           September 30,                Nine Months Ended                           Nine Months Ended
                                                                                2022                    September 30, 2022                          September 30, 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                                            

3.34 % $ 782,592 $ 20,107 3.44 % $ 676,093

   $    19,211        3.80 %
Other residential                                                          

5.37 832,641 29,890 4.80 983,564

        32,599        4.43
Commercial real estate                                                     

         4.90        1,550,445         51,834        4.47        1,560,208         49,917        4.28
Construction                                                                         5.34          642,264         24,367        5.07          593,774         19,946        4.49
Commercial business                                                                  5.06          290,420         10,431        4.80          290,643         11,365        5.23
Other loans                                                                          5.15          200,014          6,770        4.53          224,020          8,019        4.79

Industrial revenue bonds(1)                                                          5.14           13,472            507        5.03           14,610  

548 5.02

Total loans receivable                                                     

4.92 4,311,848 143,906 4.46 4,342,912

141,605 4.36

Investment securities(1)                                                   

2.70 670,700 14,260 2.84 442,794

         8,655        2.61
Interest-earning deposits in other banks                                             3.08          218,263            862        0.53          513,364  

465 0.12

Total interest-earning assets                                              

4.63 5,200,811 159,028 4.09 5,299,070

       150,725        3.80
Non-interest-earning assets:
Cash and cash equivalents                                                                           95,943                                      98,482
Other non-earning assets                                                                           156,577                                     130,179
Total assets                                                                                 $   5,453,331                               $   5,527,731

Interest-bearing liabilities:
Interest-bearing demand and savings                                        

         0.39    $   2,355,937          2,927        0.17    $   2,287,969          3,154        0.18
Time deposits                                                                        1.54        1,015,003          6,589        0.87        1,212,605          7,450        0.82
Total deposits                                                                       0.83        3,370,940          9,516        0.38        3,500,574         10,604        0.41

Securities sold under reverse repurchase agreements                                  0.69          132,930             62        0.06          145,525             29        0.03
Short-term borrowings, overnight FHLBank borrowings and other                                       49,217            614                        1,487              -
interest-bearing liabilities                                                         3.29                                        1.67                                           -
Subordinated debentures issued to capital trusts                           

         4.38           25,774            525        2.72           25,774            337        1.75
Subordinated notes                                                                   5.96           74,094          3,317        5.99          135,223          6,060        5.99

Total interest-bearing liabilities                                         

1.00 3,652,955 14,034 0.51 3,808,583

        17,030        0.60
Non-interest-bearing liabilities:
Demand deposits                                                                                  1,165,125                                   1,047,157
Other liabilities                                                                                   55,287                                      44,545
Total liabilities                                                                                4,873,367                                   4,900,285

Stockholders' equity                                                                               579,964                                     627,446
Total liabilities and stockholders' equity                                                   $   5,453,331                               $   5,527,731

Net interest income:
Interest rate spread                                                                 3.63 %                   $   144,994        3.58 %                   $   133,695        3.20 %
Net interest margin*                                                                                                             3.73 %                                      3.37 %

Average interest-earning assets to average interest-bearing liabilities    

                         142.4 %                                     139.1 %

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

Of the total average balances of investment securities, average tax-exempt

investment securities were $51.4 million and $42.3 million for the nine

months ended September 30, 2022 and 2021, respectively. In addition, average

tax-exempt loans and industrial revenue bonds were $16.3 million and $18.1
(1) million for the nine months ended September 30, 2022 and 2021, respectively.

Interest income on tax-exempt assets included in this table was $1.5 million

and $1.2 million for the nine months ended September 30, 2022 and 2021,

respectively. Interest income net of disallowed interest expense related to

tax-exempt assets was $1.4 million and $1.2 million for the nine months ended

    September 30, 2022 and 2021, respectively.


                                       61

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 September 30,
                                                                                                            2022 vs. 2021
                                                                                                 Increase (Decrease)           Total
                                                                                                       Due to                 Increase
                                                                                                 Rate          Volume        (Decrease)

                                                                                                        (Dollars in Thousands)

Interest-earning assets:
Loans receivable                                                                              $    4,812     $    2,729     $      7,541
Investment securities                                                                                313          1,939            2,252

Interest-earning deposits in other banks                                                             240           (16)              224
Total interest-earning assets                                                                      5,365          4,652           10,017
Interest-bearing liabilities:
Demand deposits                                                                                      420           (22)              398
Time deposits                                                                                      1,508            153            1,661
Total deposits                                                                                     1,928            131            2,059

Securities sold under reverse repurchase agreements                                                   36            (1)               35

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

            99            278              377
Subordinated debentures issued to capital trust                                                      137              -              137
Subordinated notes                                                                                  (50)          (516)            (566)
Total interest-bearing liabilities                                         

                       2,150          (108)            2,042
Net interest income                                                                           $    3,215     $    4,760     $      7,975


                                                                Nine Months Ended September 30,
                                                                         2022 vs. 2021
                                                              Increase (Decrease)           Total
                                                                     Due to                Increase
                                                             Rate           Volume        (Decrease)

                                                                     (Dollars in Thousands)
Interest-earning assets:
Loans receivable                                           $   3,303     $    (1,002)    $      2,301
Investment securities                                            816            4,789           5,605

Interest-earning deposits in other banks                         479             (82)             397
Total interest-earning assets                                  4,598            3,705           8,303
Interest-bearing liabilities:
Demand deposits                                                (319)               92           (227)
Time deposits                                                    458          (1,319)           (861)
Total deposits                                                   139          (1,227)         (1,088)

Securities sold under reverse repurchase agreements               35              (2)              33

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

                               201              413             614
Subordinated debentures issued to capital trust                  188                -             188
Subordinated notes                                               (6)          (2,737)         (2,743)
Total interest-bearing liabilities                               557       

  (3,553)         (2,996)
Net interest income                                        $   4,041     $      7,258    $     11,299


                                       62

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 September 30, 2022, the Company had commitments of
approximately $112.6 million to fund loan originations, $2.02 billion of unused
lines of credit and unadvanced loans, and $15.7 million of outstanding letters
of credit.

Loan commitments and the unfunded portion of loans at the dates indicated were
as follows (In Thousands):

                                    September 30,      June 30,       March 31,      December 31,      December 31,      December 31,      December 31,
                                        2022             2022           2022             2021              2020              2019              2018
Closed non-construction loans with
unused available lines
Secured by real estate (one- to            198,762
four-family)                       $                  $   190,637    $   

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 -                96,328
commercial business                                        87,556         89,252            91,786            77,411            83,782            87,480

Closed construction loans with
unused available lines
Secured by real estate (one-to             118,429
four-family)                                               93,892         75,214            74,501            42,162            48,213            

37,162

Secured by real estate (not one-to       1,455,081
four-family)                                            1,331,986      1,089,844         1,092,029           823,106           798,810           906,006

Loan commitments not closed
Secured by real estate (one-to              36,493
four-family)                                               88,153        109,472            53,529            85,917            69,295            

24,253

Secured by real estate (not one-to 132,770
four-family)

                                              134,600        212,264           146,826            45,860            92,434           

104,871

Not secured by real estate -                45,902
commercial business                                        14,335          8,223            12,920               699                 -               405

                                   $     2,083,765    $ 1,941,159    $ 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.

At September 30, 2022 and December 31, 2021, the Company had these available
secured lines and on-balance sheet liquidity:

                                                September 30, 2022      December 31, 2021
Federal Home Loan Bank line                    $      954.3 million    $     756.5 million
Federal Reserve Bank line                      $      316.7 million    $     352.4 million
Cash and cash equivalents                      $      189.0 million    $     717.3 million

Unpledged securities - Available-for-sale      $      302.1 million    $     406.8 million
Unpledged securities - Held-to-maturity        $      177.3 million    $                 -


Statements of Cash Flows. During the nine months ended September 30, 2022 and
2021, the Company had positive cash flows from operating activities. The Company
had negative cash flows from investing activities during the nine months ended
September 30, 2022 and positive cash flows from investing activities during the
nine months ended September 30, 2021. The Company had positive cash flows from
financing activities during the nine months ended September 30, 2022 and
negative cash flows from financing activities during the nine months ended
September 30, 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 $53.9 million and $77.7 million during the nine months ended September 30,
2022 and 2021, respectively.

                                       63

During the nine months ended September 30, 2022 and 2021, investing activities
used cash of $788.9 million and provided cash of $239.9 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 provided cash primarily due to the payments
received on investment securities and the net repayments of loans, partially
offset by the purchase of investment securities and the purchases of loans.

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. During the nine months ended September 30, 2022 and 2021, financing
activities provided cash of $206.7 million and used cash of $112.2 million,
respectively. In the 2022 period, financing activities provided cash primarily
as a result of net increases in short-term borrowings and increases in time
deposits, partially offset by decreases in checking and savings deposits, the
repurchase of the Company's common stock and dividends paid to stockholders. In
the 2021 period, financing activities used cash primarily as a result of the
redemption of subordinated notes, net decreases in time deposits, dividends paid
to stockholders and the purchase of the Company's common stock, partially offset
by net increases in checking and savings account balances.

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 September 30, 2022, the Company's total stockholders' equity and common
stockholders' equity were each $511.3 million, or 9.0% of total assets,
equivalent to a book value of $41.75 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 September 30, 2022, the Company's tangible common equity to
tangible assets ratio was 8.8%, compared to 11.2% at December 31, 2021 (See
Non-GAAP Financial Measures below).

Included in stockholders' equity at September 30, 2022 and December 31, 2021,
were unrealized gains (losses) (net of taxes) on the Company's
available-for-sale investment securities totaling $(51.7 million) and $9.1
million, respectively. This change from a net unrealized gain to a net
unrealized loss during 2022 primarily resulted from increasing market interest
rates throughout 2022, which decreased the fair value of investment securities.
Also included in stockholders' equity at September 30, 2022, were unrealized
gains (net of taxes) totaling $30,000 on the Company's investment securities
that were transferred to the held-to-maturity category. Approximately $227
million of investment securities 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 September 30, 2022, were
realized gains (net of taxes) on the Company's terminated cash flow hedge
(interest rate swap), totaling $18.9 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 September 30, 2022, the remaining pre-tax amount to be recorded in
interest income was $24.5 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 September 30, 2022, was an unrealized
loss (net of taxes) on the Company's outstanding cash flow hedges (three
interest rate swaps) totaling $25.6 million. Anticipated higher market interest
rates have caused the fair value of this interest rate swap to decrease.

As noted above, total stockholders' equity decreased $105.5 million, from $616.8
million at December 31, 2021 to $511.3 million at September 30, 2022.
Accumulated other comprehensive income decreased $91.1 million during the nine
months ended September 30, 2022, primarily due to decreases in the fair value of
available-for-sale investment securities and the fair value of cash flow hedges.
Stockholders' equity also decreased due to repurchases of the Company's common
stock totaling $59.3 million and dividends declared on common stock of $14.5
million. Partially offsetting these decreases were net income of $53.3 million
for the nine months ended September 30, 2022 and a $6.0 million increase due to
stock option exercises.

                                       64

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 September 30, 2022, the Bank's
common equity Tier 1 capital ratio was 10.4%, its Tier 1 capital ratio was
10.8%, its total capital ratio was 13.4% and its Tier 1 leverage ratio was
10.6%. As a result, as of September 30, 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 September 30, 2022, the
Company's common equity Tier 1 capital ratio was 11.8%, its Tier 1 capital ratio
was 11.8%, its total capital ratio was 13.0% and its Tier 1 leverage ratio was
11.5%. 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 September 30, 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 Tier 1 leverage ratio was 11.3%. As of December 31, 2021, the Company was
considered well capitalized, with capital ratios in excess of 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 September 30, 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 September 30, 2022, the Company
declared a common stock cash dividend of $0.40 per share, or 27% of net income
per diluted common share for that three month period, and paid a common stock
cash dividend of $0.40 per share (which was declared in June 2022). During the
three months ended September 30, 2021, the Company declared a common stock cash
dividend of $0.36 per share, or 24% 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 June 2021). During the nine months ended September
30, 2022, the Company declared common stock cash dividends totaling $1.16 per
share, or 28% of net income per diluted common share for that nine month period,
and paid common stock cash dividends of $1.12 per share ($0.36 of which was
declared in December 2021). During the nine months ended September 30, 2021, the
Company declared common stock cash dividends of $1.04 per share, or 24% of net
income per diluted common share for that nine month period, and paid common
stock cash dividends of $1.02 per share ($0.34 of which was declared in December
2020). The Board of Directors meets regularly to consider the level and the
timing of dividend payments. The $0.40 per share dividend declared but unpaid as
of September 30, 2022, was paid to stockholders in October 2022.

Common Stock Repurchases and Issuances. The Company has been in various buy-back
programs since May 1990. During the three months ended September 30, 2022, the
Company repurchased 150,271 shares of its common stock at an average price of
$59.06 per share and issued 52,415 shares of common stock at an average price of
$37.26 per share to cover stock option exercises. During the three months ended
September 30, 2021, the Company repurchased 307,059 shares of its common stock
at an average price of $53.13 per share and issued 14,439 shares of stock at an
average price of $37.87 per share to cover stock option exercises. During the
nine months ended September 30, 2022, the Company repurchased 999,586 shares of
its common stock at an average price of $59.28 per share and issued 116,686
shares of common stock at an average price of $42.17 per share to cover stock
option exercises. During the nine months ended September 30, 2021, the Company
repurchased 449,438 shares of its common stock at an average price of $52.89 per
share and issued 63,570 shares of stock at an average price of $41.57 per share
to cover stock option exercises.

                                       65

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.
The authorization of this program became effective during the three months ended
March 31, 2022 and does not have an expiration date.

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"), specifically, 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.

This non-GAAP financial measurement is supplemental and is 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.

Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets

                                                 September 30, 2022      December 31, 2021

                                                          (Dollars in Thousands)

Common equity at period end                     $            511,275    $           616,752

Less: Intangible assets at period end                         11,029       

6,081

Tangible common equity at period end (a)        $            500,246    $  

610,671

Total assets at period end                      $          5,676,249    $  

5,449,944

Less: Intangible assets at period end                         11,029       

6,081

Tangible assets at period end (b)               $          5,665,220    $  

5,443,863

Tangible common equity to tangible assets
(a) / (b)                                                       8.83 %     

11.22 %