Fdic Bank Deposit Base

Great Southern Bancorp, Inc. Reports Preliminary First Quarter Earnings of $0.60 Per Diluted Common Share.

Preliminary Financial Results for the Quarter Ended March 31,
2013:

SPRINGFIELD

1 City (1990 pop. 105,227), state capital and seat of Sangamon co., central Ill., on the Sangamon River; settled 1818, inc. as a city 1840.
, Mo., April 23, 2013 /PRNewswire/ —

* Asset Quality: Non-performing assets and potential problem loans,
excluding those covered by
FDIC

See Federal Deposit Insurance Corporation (FDIC).
 loss sharing agreements, totaled $112.1
million at March 31, 2013, a decrease of $9.9 million from
December
 see month.
 31,
2012, and a decrease of $18.9 million from March 31, 2012.
Non-performing assets, excluding FDIC-covered non-performing assets, at
March 31, 2013, were $73.0 million, an increase of $388,000 from $72.6
million at December 31, 2012, and an increase of $3.1 million from $69.9
million at March 31, 2012. Non-performing assets were 1.81% of total
assets at March 31, 2013, compared to 1.84% at December 31, 2012, and
1.81% at March 31, 2012. Net charge-offs were $8.3 million for the
quarter ended March 31, 2013. $2.2 million of the net charge-off total
for the quarter was related to loans covered by the loss sharing
agreements with the FDIC. Under these agreements, the FDIC will

reimburse
  
tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es
1. To repay (money spent); refund.

2. To pay back or compensate (another party) for money spent or losses incurred.
 the Bank for 80% of the losses, resulting in the Bank only
realizing a 20% loss on the $2.2 million of charge-offs on covered
loans.

* Total Loans: Total gross loans, including FDIC-covered loans,
increased $15.5 million from December 31, 2012, to March 31, 2013.
Decreases in the FDIC-covered loan portfolios totaled $35.9 million.
Excluding covered loans and mortgage loans held for sale, total loans
increased $52.2 million from December 31, 2012, to March 31, 2013,
primarily in the areas of commercial real estate loans, commercial
business loans, consumer loans and other residential loans, partially
offset by a decrease in one-to four-family residential loans.

* Net Interest Income: Net interest income for the first quarter of
2013 increased $5.3 million to $42.1 million compared to $36.8 million
for the first quarter of 2012. Net interest margin was 4.76% for the
quarter ended March 31, 2013, compared to 4.29% for the first quarter in
2012 and 5.01% for the quarter ended December 31, 2012. These changes
were primarily the result of variations in the yield
accretion

 on
acquired loans due to improvements in expected cash flows in the 2013
period when compared to the first quarter 2012 period. The positive
impact on net interest margin from the additional yield accretion on
acquired loan pools that was recorded during the period was 118 basis
points for the quarter ended March 31, 2013, 72 basis points for the
quarter ended March 31, 2012, and 135 basis points for the quarter ended
December 31, 2012. For further discussion on the additional yield
accretion of the discount on acquired loan pools, see the “Net
Interest Income” section of this release.

* Capital: The capital position of the Company continues to be
strong, significantly exceeding the “well
capitalized


thresholds established by regulators. On a preliminary basis, as of
March 31, 2013, the Company’s Tier 1 leverage ratio was 9.6%, Tier
1
risk-based capital ratio

 was 15.7%, and total risk-based capital ratio
was 17.0%.

Great Southern Bancorp, Inc. (
NASDAQ

:
GSBC

), the holding company for
Great Southern Bank, today reported that preliminary earnings for the
quarter ended March 31, 2013, were $0.60 per
diluted
  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 common share ($8.2
million available to common shareholders) compared to $0.54 per diluted
common share ($7.4 million available to common shareholders) for the
quarter ended March 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20120614/CG25114LOGO)

For the quarter ended March 31, 2013,
annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 return on average
equity was 10.55%; annualized return on average assets was 0.84%; and
net interest margin was 4.76% compared to 10.96%, 0.78% and 4.29%,
respectively, for the quarter ended March 31, 2012.

President and
CEO

 Joseph W.
Turner

 commented, “We are pleased
with our first quarter performance. Earnings were solid at $0.60 per
diluted share, overall asset quality improved and net loans increased
$16 million. Excluding covered loans and mortgages held for sale, total
loans increased $52 million from December 31, 2012. We continue to see
signs of improvement in loan demand in some of our markets, but
competition remains significant. With our strong capital and liquidity
levels, we are well-positioned to lend as economic conditions improve.
We have added lending staff in several key markets, including
Des
Moines

 , city (1990 pop. 193,187), state capital and seat of Polk co., S central Iowa, at the junction of the Des Moines and Raccoon rivers; inc.
, Omaha, and
Kansas City
 two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850).
.

“Overall, nonperforming assets and potential problem loans
(excluding FDIC covered assets) have decreased by $9.9 million from the
end of 2012. The resolution of nonperforming assets continues to be a
priority. For the quarter ended March 31, 2013, the provision for loan
losses was $8.2 million, which was comprised of $6.0 million related to
the legacy loan portfolio and $2.2 million related to the covered
portfolio. We will recover 80% of the $2.2 million from the FDIC and
recorded a receivable for this in the first quarter of 2013.

“We anticipate that the provision for loan losses will
generally be in line with charge-off levels; however, the level of our
allowance for loan losses may decrease if asset quality improves. Based
on our current assessment of the loan portfolio, we believe that
provision expenses and net charge-offs in 2013 will likely be less than
those in 2012 with respective decreases more pronounced in the second
half of the year. As we’ve noted previously, the levels of
non-performing assets, potential problem loans, loan loss provisions and
net charge-offs fluctuate from period to period and are somewhat
difficult to predict.”

Turner continued, “Since the end of 2012, total deposits
increased by
approximately
  
adj.
1. Almost exact or correct:

2.
 $67 million primarily due to attracting new
checking deposit customers throughout the Company’s six-state

footprint

. Our deposit mix continues to trend towards lower-cost
transaction accounts and the cost of deposits continues to decrease. At
the end of the first quarter, the average cost of all deposits was 0.47%
as compared to 0.54% at December 31, 2012.

“We look forward to the remainder of 2013 as we celebrate our
90[sup.th] year of serving and meeting the needs of our
customers.”

NET INTEREST INCOME

Net interest income for the first quarter of 2013 increased $5.3
million to $42.1 million compared to $36.8 million for the first quarter
of 2012. Net interest margin was 4.76% in the first quarter of 2013,
compared to 4.29% in the same period of 2012, an increase of 47 basis
points. The average interest rate spread was 4.69% for the quarter ended
March 31, 2013, compared to 4.16% for the quarter ended March 31, 2012.
For the quarter ended March 31, 2013, the average interest rate spread
decreased 26 basis points compared to the average interest rate spread
of 4.95% in the quarter ended December 31, 2012. This decrease was
primarily due to a 32 basis point decrease in average yield on loans
receivable and a 14 basis point decrease in average yield on investment
securities, partially offset by a seven basis point decrease in average
yield on deposits and a six basis point decrease in average yield on

subordinated

 debentures issued to capital trust.

The Company’s net interest margin was significantly impacted by
additional yield accretion recognized in
conjunction
 in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun.
 with updated
estimates of the fair value of the loan pools acquired in the 2009, 2011
and 2012 FDIC-assisted transactions. On an on-going basis the Company
estimates the cash flows expected to be collected from the acquired loan
pools. For each of the loan portfolios acquired, the cash flow estimates
have increased, based on payment histories and reduced loss expectations
of the loan pools. This resulted in increased income that was spread on
a level-yield basis over the remaining expected lives of the loan pools.
The increases in expected cash flows also reduced the amount of expected
reimbursements under the loss sharing agreements with the FDIC, which
are recorded as
indemnification

 assets. Therefore, the expected
indemnification assets have also been reduced each quarter since the
fourth quarter of 2010, resulting in adjustments to be amortized on a
comparable basis over the remainder of the loss sharing agreements or
the remaining expected lives of the loan pools, whichever is shorter.
The impact of these adjustments on the Company’s financial results
for the reporting periods presented is shown below:

Because these adjustments will be recognized over the remaining
lives of the loan pools and the remainder of the loss sharing
agreements, respectively, they will impact future periods as well. The
remaining accretable yield adjustment that will affect interest income
is $23.6 million and the remaining adjustment to the indemnification
assets that will affect non-interest income (expense) is $(18.4)
million. Of the remaining adjustments, we expect to recognize $12.3
million of interest income and $(10.8) million of non-interest income
(expense) in the remainder of 2013. Additional adjustments may be
recorded in future periods from the FDIC-assisted transactions, as the
Company continues to estimate expected cash flows from the acquired loan
pools.

Excluding the impact of the additional yield accretion, net interest
margin increased one basis point when compared to the year-ago quarter,
and decreased 73 basis points when compared to the fourth quarter of
2012. Decreases in the yield on loans and investments, excluding the
yield accretion income discussed above, when compared to the year-ago
quarter, were offset by the positive effects of the lower deposit costs
and lower rates on short-term borrowings. In many cases, new loans
originated are at rates which are lower than the rates on existing loans
and loans being paid down or paid off. During 2012 and 2013, lower-rate
transaction deposits increased as customers added to existing accounts
or new customer accounts were opened, while higher-rate brokered
deposits decreased and retail time deposits
renewed
  
v. re·newed, re·new·ing, re·news

v.tr.
1. To make new or as if new again; restore:

2.
 at lower rates of
interest.

For additional information on net interest income components, see
the “Average Balances, Interest Rates and Yields” tables in
this release.

NON-INTEREST INCOME

For the quarter ended March 31, 2013, non-interest income decreased
$3.2 million when compared to the quarter ended March 31, 2012,
primarily as a result of the following items:

* Amortization of income related to business acquisitions: There was
a larger decrease to non-interest income from amortization related to
business acquisitions compared to the prior year quarter. The net
amortization, an amount which reduces non-interest income, increased
$4.1 million from the prior year quarter. As described above in the net
interest income section, due to the increase in cash flows expected to
be collected from the TeamBank, Vantus Bank, Sun Security Bank and
InterBank FDIC-covered loan portfolios, $8.3 million of amortization
(decrease in non-interest income) was recorded in the quarter ended
March 31, 2013. This amortization (decrease in non-interest income)
amount was up $3.8 million from the $4.5 million that was recorded in
the quarter ended March 31, 2012,
relating to
 relate prep

 relate prep → ,  
 reductions of expected
reimbursements under the loss sharing agreements with the FDIC.
Offsetting this, the Bank had additional income from the accretion of
the discount on the indemnification assets related to the FDIC-assisted
acquisition involving InterBank, which was completed in April 2012.
Income from the accretion of the discount related to all of the
acquisitions was $1.1 million for the quarter ended March 31, 2013,
compared to $2.7 million for the three months ended March 31, 2012. In
addition, as noted in the “Asset Quality” discussion on page
one, and the “Provision for Loans Losses and Allowance for Loan
Losses” section below, the Bank recorded a loan loss provision of
$2.2 million related to FDIC-covered loans during the quarter ended
March 31, 2013. Under the loss sharing agreements, the FDIC will
reimburse the Bank for 80% of the losses, so the Bank has recorded
income of approximately $1.8 million for that expected

reimbursement

.

* Other income: Other income increased $591,000 compared to the
prior year. The Bank received a payment of approximately $480,000 from

MasterCard

 due to increased volume of
debit card
 card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser’s checking account. They can also be used at automated teller machines for withdrawing cash from the user’s checking account.
 usage. Depending on
usage levels, the Bank could receive future payments from MasterCard. In
addition, the Bank sold a parcel of real estate that had been previously
acquired as a possible branch location at a gain of approximately
$730,000. In the first quarter 2012, the Bank sold or utilized several
state tax credits that resulted in a gain of $885,000, with no similar
gain in the first quarter of 2013.

* Gains on sales of
single-family

adj.
Relating to or being a dwelling designed for one family only:  
 loans: Gains on sales of
single-family loans increased $279,000 compared to the prior year
quarter. This was due to an increase in originations of fixed-rate loans
due to lower fixed rates, which were then sold in the secondary
market.

NON-INTEREST EXPENSE

For the quarter ended March 31, 2013, non-interest expense increased
$2.0 million to $27.0 million, when compared to the quarter ended March
31, 2012. The increase was primarily due to the following items:

* InterBank FDIC-assisted acquisition: Non-interest expense
increased $673,000 for the quarter ended March 31, 2013, when compared
to the quarter ended March 31, 2012, due to
operating costs
 npl →  
 related to
the operations acquired in the FDIC-assisted acquisition involving the
former InterBank on April 27, 2012. This amount included salaries and
benefits of $212,000, occupancy expense of $167,000, and rent and leases
expense of $107,000.

* Salaries and employee benefits: Salaries and employee benefits
increased $685,000 compared to the prior year quarter. As noted above,
$212,000 of the increase is due to the salaries related to the former
InterBank banking centers. The remaining increase is due to continued
internal growth of the Company and the increased number of employees,
and salary increases for existing employees.

* Foreclosure-related expenses: Expenses on foreclosed assets
increased $616,000 for the quarter ended March 31, 2013, when compared
to the quarter ended March 31, 2012, due primarily to increases in the
write-downs of carrying values of foreclosed assets and losses on sales
of assets.

* Net occupancy expense: Net occupancy expense increased $433,000
compared to the prior year quarter. As noted above, $167,000 of the
increase is due to the expenses related to the former InterBank
locations. $51,000 of the increase is due to additional occupancy
expense related to the
Olathe
 , city (1990 pop. 63,352), seat of Johnson co., NE Kans., suburb of Kansas City; inc. 1858. In an area of livestock farms, Olathe grew markedly in the late 20th cent.
,
Kan
 river, China: see Gan.
., and West Republic Road,
Springfield, Mo., banking centers which were new locations that replaced
existing locations during 2012.

* Partnership tax credit: The partnership tax credit expense
increased $220,000 from the prior year quarter. The Company has invested
in certain federal low-income housing tax credits and federal new market
tax credits. These credits are typically purchased at 70-90% of the
amount of the credit and are generally utilized to offset taxes payable
over ten-year and seven-year periods, respectively. During the quarter
ended March 31, 2013, tax credits used to reduce the Company’s tax
expense totaled $1.9 million, up $275,000 from $1.6 million for the
quarter ended March 31, 2012. These tax credits resulted in
corresponding amortization expense of $1.4 million during the quarter
ended March 31, 2013, up $220,000 from $1.2 million for the quarter
ended March 31, 2012. The net result of these transactions was an
increase to non-interest expense and a decrease to income tax expense,
which positively impacted the Company’s effective tax rate, but
negatively impacted the Company’s non-interest expense and
efficiency ratio.

The Company’s efficiency ratio for the quarter ended March 31,
2013, was 59.80% compared to 59.26% for the same quarter in 2012. The
increase in the ratio in the 2013 three-month period was primarily due
to the increases in non-interest expense. The Company’s ratio of
non-interest expense to average assets decreased from 2.79% for the
quarter ended March 31, 2012, to 2.69% for the quarter ended March 31,
2013. Average assets for the quarter ended March 31, 2013, increased
$149.8 million, or 3.9%, from the quarter ended March 31, 2012.

INCOME TAXES

For the quarter ended March 31, 2013, the Company’s effective
tax rate was 15.1%, which was lower than the statutory federal tax rate
of 35%, due primarily to the effects of the tax credits discussed above
and to tax-exempt investments and tax-exempt loans which reduced the
Company’s effective tax rate. In future periods, the Company
expects its effective tax rate typically will be approximately 12%-18%
of pre-tax net income, assuming it continues to maintain or increase its
use of investment tax credits. The Company’s effective tax rate may
fluctuate as it is impacted by the level and timing of the
Company’s
utilization

n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be
 of tax credits and the level of tax-exempt
investments and loans and the overall level of
pretax income

Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm’s performance than aftertax income because taxes in one period may be influenced by activities in earlier periods.
.

CAPITAL

As of March 31, 2013, total stockholders’ equity was $375.9
million (9.3% of total assets). As of March 31, 2013, common
stockholders’ equity was $318.0 million (7.9% of total assets),
equivalent to a book value of $23.36 per common share. Total
stockholders’ equity at December 31, 2012, was $369.9 million (9.4%
of total assets). As of December 31, 2012, common stockholders’
equity was $311.9 million (7.9% of total assets), equivalent to a book
value of $22.94 per common share. At March 31, 2013, the Company’s

tangible

 common equity to total assets ratio was 7.7%, compared to 7.7%
at December 31, 2012. The tangible common equity to total risk-weighted
assets ratio was 12.8% at March 31, 2013, compared to 12.7% at December
31, 2012.

As of March 31, 2013, the Company’s and the Bank’s

regulatory
  
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates
1. To control or direct according to rule, principle, or law.

2.
 capital levels were
categorized
  
tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es
To put into a category or categories; classify.


cat
 as “well
capitalized” as defined by the Federal banking agencies’
capital-related regulations. On a preliminary basis, as of March 31,
2013, the Company’s Tier 1 leverage ratio was 9.6%, Tier 1
risk-based capital ratio was 15.7%, and total risk-based capital ratio
was 17.0%. On March 31, 2013, and on a preliminary basis, the
Bank’s Tier 1 leverage ratio was 9.0%, Tier 1 risk-based capital
ratio was 14.8%, and total risk-based capital ratio was 16.0%.

Great Southern Bancorp, Inc. is a
participant

 in the U.S.
Treasury’s Small Business Lending Fund (SBLF). Through the SBLF, in
August 2011, the Company issued a new series of
preferred stock

 totaling
$57.9 million to the Treasury. The dividend rate on the SBLF preferred
stock for the first quarter of 2013 was 1.0% and the Company currently
expects the dividend rate for the second quarter of 2013 to be
approximately 1.0%.

Stock Repurchase Plan

1. See buyback.

2. See self-tender.
: The Company’s common stock repurchase
plan, which was approved
November
 see month.
 15, 2006, authorizes the
repurchase
  
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es
To buy (something) again.

n.
The act of buying something that one previously sold or owned.

Noun 1.
 of
up to 700,000 shares of the Company’s common stock. Approximately
396,000 shares remain available to be repurchased under this plan. The
Company intends to continue its stock buy-back program from time to time
as long as repurchasing the stock contributes to the overall growth of
shareholder value. The number of shares of stock 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 the control of the
Company. The primary factors, however, are the number of shares
available in the market from sellers at any given time, the price of the
stock within the market as determined by the market, and the projected
impact on the Company’s earnings per share and capital.

PROVISION FOR LOAN LOSSES AND ALLOWANCE FOR LOAN LOSSES

The provision for loan losses for the quarter ended March 31, 2013,
decreased $1.9 million to $8.2 million when compared with the quarter
ended March 31, 2012. The provision for loan losses increased $439,000
compared to the quarter ended December 31, 2012. At March 31, 2013, the
allowance for loan losses was $40.5 million, a decrease of $101,000 from
December 31, 2012. Total net charge-offs were $8.3 million and $9.8
million for the quarters ended March 31, 2013 and 2012, respectively.
Excluding those related to loans covered by loss sharing agreements, net
charge-offs were $6.1 million, with three relationships making up $4.2
million of the net charge-off total for the quarter ended March 31,
2013. The remaining $2.2 million of the net charge-off total for the
quarter ended March 31, 2013 was related to loans covered by the loss
sharing agreements with the FDIC. Under these agreements, the FDIC will
reimburse the Bank for 80% of the losses, so the Bank recognized a net
loss of 20% of the $2.2 million of charge-offs on covered loans. General
market conditions, and more specifically, real estate,
absorption
 [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance.
 rates
and unique
circumstances

 related to individual borrowers and projects
also contributed to the level of provisions and charge-offs. As
properties were categorized as potential problem loans, non-performing
loans or foreclosed assets, evaluations were made of the values of these
assets with corresponding charge-offs as appropriate.

Management records a provision for loan losses in an amount it
believes sufficient to result in an allowance for loan losses that will
cover current net charge-offs as well as risks believed to be inherent
in the loan portfolio of the Bank. The amount of provision charged
against current income is based on several factors, including, but not
limited to, past loss experience, current portfolio mix, actual and
potential losses identified in the loan portfolio, economic conditions,
and internal as well as external reviews. Based on the Company’s
current assessment of these factors and their expected impact on the
loan portfolio, management believes that provision expenses and net
charge-offs in 2013 will likely be less than those in 2012 with
respective decreases more pronounced in the second half of the year. As
noted previously, the levels of non-performing assets, potential problem
loans, loan loss provisions and net charge-offs fluctuate from period to
period and are somewhat difficult to predict.

Weak economic conditions, higher inflation or interest rates, or
other factors may lead to increased losses in the portfolio and/or
requirements for an increase in loan loss provision expense. Management
long ago established various controls in an attempt to limit future
losses, such as a watch list of possible problem loans, documented loan
administration policies and a 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, on-going correspondence with
borrowers, and problem loan work-outs. Management determines which loans
are potentially
uncollectible

, or represent a greater risk of loss, and
makes additional provisions to expense, if necessary, to maintain the
allowance at a satisfactory level.

The Bank’s allowance for loan losses as a percentage of total
loans, excluding loans covered by the FDIC loss sharing agreements, was
2.15%, 2.21% and 2.30% at March 31, 2013, December 31, 2012, and March
31, 2012, respectively. Management considers the allowance for loan
losses adequate to cover losses inherent in the Company’s loan
portfolio at March 31, 2013, based on recent reviews of the
Company’s loan portfolio and current economic conditions. If
economic conditions remain weak or
deteriorate

v.
1. To grow worse in function or condition.

2. To weaken or disintegrate.
 further, it is possible
that additional loan loss provisions would be required, thereby
adversely affecting future results of operations and financial
condition.

ASSET QUALITY

Former TeamBank, Vantus Bank, Sun Security Bank and InterBank
non-performing assets, including foreclosed assets, are not included in
the totals and in the discussion below of non-performing loans,
potential problem loans and foreclosed assets due to the respective loss
sharing agreements with the FDIC, which cover at least 80% of principal
losses that may be incurred in these portfolios. In addition,
FDIC-supported TeamBank, Vantus Bank, Sun Security Bank and InterBank
assets were initially recorded at their estimated fair values as of
their acquisition dates of March 20, 2009,
September
 see month.
 4, 2009,
October
 see month.
 7,
2011, and April 27, 2012, respectively. The overall performance of the
FDIC-covered loan pools has been better than expectations as of the
acquisition dates.

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

Non-performing assets, excluding FDIC-covered non-performing assets,
at March 31, 2013, were $73.0 million, an increase of $388,000 from
$72.6 million at December 31, 2012. Non-performing assets as a
percentage of total assets were 1.81% at March 31, 2013, compared to
1.84% at December 31, 2012.

Compared to December 31, 2012, non-performing loans increased $2.7
million to $25.2 million and foreclosed assets decreased $2.3 million to
$47.8 million. Commercial real estate loans comprised $9.4 million, or
37.5%, of the total $25.2 million of non-performing loans at March 31,
2013, an increase of $1.1 million from December 31, 2012. Non-performing
other commercial loans increased $1.0 million in the three months ended
March 31, 2013, and were $7.2 million, or 28.7%, of the total
non-performing loans at March 31, 2013. Non-performing other residential
loans comprised $3.8 million, or 15.2%, of the total non-performing
loans at March 31, 2013, an increase from $0 at December 31, 2012.
Non-performing one-to four-family residential loans decreased $1.4
million in the three months ended March 31, 2013, and were $3.0 million,
or 12.1%, of the total non-performing loans at March 31, 2013.

Compared to December 31, 2012, potential problem loans decreased
$10.3 million, or 20.8%. This decrease was due to $5.5 million in loans
being removed from potential problem loans, $3.6 million in loans
transferred to foreclosed assets, $3.2 million in charge-offs, $2.3
million in loans transferred to non-performing and $1.6 million in
payments on potential problem loans, partially offset by the addition of
$5.9 million of loans to potential problem loans.

Activity in the non-performing loans category during the quarter
ended March 31, 2013, was as follows:

At March 31, 2013, the commercial real estate category included 13
loans, six of which were added during the quarter. The largest
relationship in this category is comprised of four loans totaling $7.6
million, or 80.2%, of the total category, and is collateralized by three
hotel buildings. Two of these loans totaling $5.7 million, were
classified as non-performing in a previous quarter. The other commercial
category included nine loans, three of which were added during the
quarter. The largest relationship in this category, part of which was
added during the previous quarter and part of which was added during the
current quarter, was $4.1 million, or 56.5% of the total category, and
is collateralized by property in the
Branson
 city (1990 pop. 3,706), Taney co., SW Mo.; inc. 1904. The primarily residential city’s economy is based on tourism, especially to theaters offering live, often lavish country-music shows.
, Mo., area. The other
residential category included one loan which was added during the
quarter. That loan was $3.8 million, and is collateralized by
condominiums in the Branson, Mo., area. The one- to four-family
residential category included 29 loans, three of which were added during
the quarter.

Activity in the potential problem loans category during the quarter
ended March 31, 2013, was as follows:

At March 31, 2013, the commercial real estate category of potential
problem loans included 13 loans. The largest relationship in this
category, which was added during a prior quarter, had a balance of $5.0
million, or 25.6% of the total category. The relationship was
collateralized by properties located in
southwest

 
Missouri
 , one of the midwestern states of the United States.
. The second
largest relationship in this category, a portion of which was added
during the current quarter, had a balance of $5.0 million, or 25.5% and
was collateralized by hotel buildings. The land development category
included seven loans, none of which were added during the current
quarter. The largest relationship in this category, which was added
during the previous quarter, totaled $6.0 million, or 67.9% of the total
category, and was collateralized by property located in the Branson, Mo.
area. The one- to four-family residential category included 33 loans,
two of which were added during the current quarter. The largest
relationship in this category, which was added during the quarter ended
March 31, 2012, and included 13 loans, totaled $1.1 million, or 28.7% of
the total category, and was collateralized by over 30 separate
properties located in southwest Missouri. The other residential category
included three loans, one of which was added during the current quarter.
The largest relationship in this category, which was added during a
previous quarter, totaled $1.5 million, or 48.2% of the total category,
and was collateralized by properties located in the Branson, Mo.,
area.

Activity in foreclosed assets, excluding $17.4 million in foreclosed
assets covered by FDIC loss sharing agreements, during the quarter ended
March 31, 2013, was as follows:

At March 31, 2013, the subdivision construction category of
foreclosed assets included 40 properties, the largest of which was
located in the St.
Louis
 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin.
, Mo. metropolitan area and had a balance of
$3.4 million, or 21.9% of the total category. Of the total dollar amount
in the subdivision construction category, 14.6% and 13.7% is located in
Branson, Mo., and Springfield, Mo., respectively. The land development
category of foreclosed assets included 24 properties, the largest of
which was located in
northwest

 
Arkansas
 , river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo.
 and had a balance of $2.3
million, or 14.8% of the total category. Of the total dollar amount in
the land development category, 52.7% and 34.8% was located in northwest
Arkansas and in the Branson, Mo., area, respectively, including the
largest property previously mentioned. The other residential category of
foreclosed assets included 19 properties, 16 of which were all part of
the same
condominium

 community, which was located in Branson, Mo. and
had a balance of $2.7 million, or 38.0% of the total category. Of the
total dollar amount in the other residential category, 76.7% was located
in the Branson, Mo., area, including the largest property previously
mentioned.

BUSINESS INITIATIVES

Several initiatives have been completed or are underway related to
the Company’s banking center network. In March 2013, a new banking
center in
Downtown

 Springfield opened, which replaced a leased facility
two blocks away. Great Southern operated from this new location at 331
South
Ave

AVE Alta Velocidad Española
AVE Audio Video Entertainment
AVE Advertising Value Equivalent
. in the 1960’s through the 1980’s. Construction will
be underway soon to build a full-service banking center in a commercial
district in Omaha, Neb. In addition to the banking center, a commercial
lending team will be housed in this facility. The facility is expected
to be open in fall 2013. The Company currently operates three banking
centers in the Omaha metropolitan area – two in
Bellevue
 .

1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855.
 and one in Fort

Calhoun
   , John Caldwell 1782-1850.

Vice President of the United States (1825-1832) under John Quincy Adams and Andrew Jackson. In his political philosophy he maintained that the states had the right to nullify federal legislation that they deemed
. In
Maple Grove

, Minn., the Company recently purchased property
for a new banking center site. Expected to open in late 2013, the new
banking center will replace the leased banking center at 13601
80[sup.th] Cir. N., which is a short distance away. The Company also
purchased a commercial building and lot in Ava, Mo., which will replace
the current bank-owned property at 101 N.
Jefferson
 uninc. city (1990 pop. 25,782), Fairfax co., N Va. It is a residential suburb of Washington, D.C.
 less than a mile
away. This location is also expected to open in the fall 2013.

In January 2013, the Company introduced Mobile Check Deposit, a

smartphone

 application-based service enabling customers to conveniently
deposit a paper check to their checking account by utilizing a
smartphone camera. A new and more interactive Company web site,
www.GreatSouthernBank.com, is expected to be launched at the end of
April 2013.

Great Southern Bancorp, Inc. will hold its 24th Annual Meeting of
Shareholders at 10:00 a.m.
CDT

abbr.
Central Daylight Time


 Central Daylight Time

 n abbr (US) (= Central Daylight Time) → hora de verano del centro;
(BRIT
 on
Wednesday
 see week.
, May 15, 2013, at the Great
Southern
Operations Center

, 218 S. Glenstone, Springfield, Mo. Holders
of Great Southern Bancorp, Inc. common stock at the close of business on
the record date, March 1, 2013, can vote at the annual meeting, either
in person or by
proxy

. Material to be presented at the Annual Meeting
will be available on the Company’s website,
www.GreatSouthernBank.com, prior to the start of the meeting.

The common stock of Great Southern Bancorp, Inc., is listed on the
Nasdaq Global Select Market under the symbol “GSBC”. The last
reported sale price of GSBC common stock in the quarter ended March 31,
2013, was $24.39. Headquartered in Springfield, Mo., Great Southern
offers a broad range of banking services to customers. The Company
operates 107 banking centers and more than 200 ATMs in Missouri,
Arkansas, Iowa,
Kansas
 , midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N).
,
Minnesota
 , upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces
 and
Nebraska
 , Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N).
.

www.GreatSouthernBank.com

Forward-Looking Statements

When used in documents filed or
furnished
  
tr.v. fur·nished, fur·nish·ing, fur·nish·es
1. To equip with what is needed, especially to provide furniture for.

2.
 by the Company with the
Securities and Exchange Commission (the “SEC”), in the
Company’s press releases or other public or shareholder
communications, and in oral statements made with the approval of an
authorized executive officer, the words or phrases “will likely
result,” “are expected to,” “will continue,”
“is anticipated,” “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. Such statements are subject to
certain risks and uncertainties, including, among other things, (i)
expected cost savings, synergies and other benefits from the
Company’s merger and acquisition activities might not be realized
within the anticipated time frames or at all and costs or difficulties
relating to integration matters, including but not limited to customer
and employee retention, might be greater than expected; (ii) changes in
economic conditions, either nationally or in the Company’s market
areas; (iii) fluctuations in interest rates; (iv) the risks of lending
and investing activities, including changes in the level and direction
of loan delinquencies and write-offs and changes in estimates of the
adequacy of the allowance for loan losses; (v) the possibility of
other-than-temporary impairments of securities held in the
Company’s securities 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) demand for loans and deposits in the Company’s market areas;
(ix) legislative or regulatory changes that adversely affect the
Company’s business, including, without limitation, the Dodd-Frank
Wall Street Reform and Consumer Protection Act and its implementing
regulations, and the
overdraft
 
 protection regulations and
customers’ responses
thereto
  
adv.
1. To that, this, or it.

2. Archaic In addition to that; furthermore.


Adverb

Formal

1. to that or it

2.
; (x) monetary and fiscal policies of
the Federal Reserve Board and the U.S. Government and other governmental
initiatives affecting the
financial services

 industry; (xi) results of
examinations of the Company and Great Southern by their regulators,
including the possibility that the regulators may, among other things,
require the Company to increase its allowance for loan losses or to

write-down

 assets; (xii) the uncertainties arising from the
Company’s participation in the Small Business Lending Fund
(“SBLF”), including uncertainties concerning the potential
future
redemption

 by us of the U.S. Treasury’s preferred stock
investment under the program, including the timing of, regulatory
approvals for, and conditions placed upon, any such redemption; (xiii)
costs and effects of
litigation

, including settlements and judgments;
and (xiv) competition. The Company wishes to advise readers that the
factors listed above and other risks described from time to time in the
company’s filings 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.

The following tables set forth certain selected
consolidated
  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 financial information of the Company at and for the periods indicated.
Financial data for all periods is unaudited. In the opinion of
management, all adjustments, which consist only of normal
recurring
  
intr.v. re·curred, re·cur·ring, re·curs
1. To happen, come up, or show up again or repeatedly.

2. To return to one’s attention or memory.

3. To return in thought or discourse.
 
accruals

, necessary for a fair presentation of the results for and at
such unaudited periods have been included. The results of operations and
other data for the three months ended March 31, 2013, and 2012, are not
necessarily
indicative
 see mood.
 of the results of operations which may be
expected for the full year or any future period.

Average Balances, Interest Rates and Yields

The following table presents, 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 the amortization of net loan fees, which were
deferred in
accordance

 with accounting standards. Fees included in
interest income were $827,000 and $782,000 for the quarter ended March
31, 2013, and 2012, respectively. Tax-exempt income was not calculated
on a tax equivalent basis. The table does not reflect any effect of
income taxes.

SOURCE Great Southern Bancorp, Inc.