Maryland
|
43-1524856
|
|
(State of Incorporation)
|
(IRS Employer Identification Number)
|
|
1451 E. Battlefield, Springfield, Missouri
|
65804
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
(417) 887-4400
|
Large accelerated filer / /
|
Accelerated filer /X/
|
Non-accelerated filer / /
|
Smaller reporting company / /
|
(Do not check if a smaller
reporting company)
|
JUNE 30,
|
DECEMBER 31,
|
|||||||
2011
|
2010
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
|
$
|
81,240
|
$
|
69,756
|
||||
Interest-bearing deposits in other financial institutions
|
274,185
|
360,215
|
||||||
Cash and cash equivalents
|
355,425
|
429,971
|
||||||
Available-for-sale securities
|
831,059
|
769,546
|
||||||
Held-to-maturity securities (fair value $2,137 – June 2011;
|
||||||||
$1,300 - December 2010)
|
1,865
|
1,125
|
||||||
Mortgage loans held for sale
|
8,798
|
22,499
|
||||||
Loans receivable, net of allowance for loan losses of
|
||||||||
$40,487 – June 2011; $41,487 - December 2010
|
1,910,885
|
1,876,887
|
||||||
FDIC indemnification asset
|
76,387
|
100,878
|
||||||
Interest receivable
|
11,690
|
12,628
|
||||||
Prepaid expenses and other assets
|
54,688
|
52,390
|
||||||
Foreclosed assets held for sale, net
|
70,577
|
60,262
|
||||||
Premises and equipment, net
|
76,902
|
68,352
|
||||||
Goodwill and other intangible assets
|
4,980
|
5,395
|
||||||
Investment in Federal Home Loan Bank stock
|
11,241
|
11,572
|
||||||
Deferred income taxes
|
3,727
|
--
|
||||||
Total Assets
|
$
|
3,418,224
|
$
|
3,411,505
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Liabilities:
|
||||||||
Deposits
|
$
|
2,622,772
|
$
|
2,595,893
|
||||
Federal Home Loan Bank advances
|
151,889
|
153,525
|
||||||
Securities sold under reverse repurchase agreements with customers
|
229,693
|
257,180
|
||||||
Short-term borrowings
|
660
|
778
|
||||||
Structured repurchase agreements
|
53,116
|
53,142
|
||||||
Subordinated debentures issued to capital trusts
|
30,929
|
30,929
|
||||||
Accrued interest payable
|
2,791
|
3,765
|
||||||
Advances from borrowers for taxes and insurance
|
1,929
|
1,019
|
||||||
Accounts payable and accrued expenses
|
10,050
|
10,395
|
||||||
Current and deferred income taxes
|
--
|
870
|
||||||
Total Liabilities
|
3,103,829
|
3,107,496
|
||||||
Stockholders' Equity:
|
||||||||
Capital stock
|
||||||||
Serial preferred stock, $.01 par value; authorized 1,000,000 shares; issued
and outstanding 58,000 shares
|
56,723
|
56,480
|
||||||
Common stock, $.01 par value; authorized 20,000,000 shares;
issued and outstanding June 2011 – 13,461,614 shares;
|
||||||||
December 2010 - 13,454,000 shares
|
134
|
134
|
||||||
Stock warrants; 909,091 shares
|
2,452
|
2,452
|
||||||
Additional paid-in capital
|
20,936
|
20,701
|
||||||
Retained earnings
|
225,428
|
220,021
|
||||||
Accumulated other comprehensive gain
|
8,722
|
4,221
|
||||||
Total Stockholders' Equity
|
314,395
|
304,009
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
3,418,224
|
$
|
3,411,505
|
|
|
THREE MONTHS ENDED
JUNE 30,
|
|
|||||
|
|
2011
|
|
|
2010
|
|
||
INTEREST INCOME
|
|
(Unaudited)
|
|
|||||
Loans
|
|
$
|
42,243
|
|
|
$
|
32,553
|
|
Investment securities and other
|
|
|
6,901
|
|
|
|
7,059
|
|
TOTAL INTEREST INCOME
|
|
|
49,144
|
|
|
|
39,612
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
6,661
|
|
|
|
10,140
|
|
Federal Home Loan Bank advances
|
|
|
1,304
|
|
|
|
1,407
|
|
Short-term borrowings and repurchase agreements
|
|
|
747
|
|
|
|
799
|
|
Subordinated debentures issued to capital trusts
|
|
|
140
|
|
|
|
142
|
|
TOTAL INTEREST EXPENSE
|
|
|
8,852
|
|
|
|
12,488
|
|
NET INTEREST INCOME
|
|
|
40,292
|
|
|
|
27,124
|
|
PROVISION FOR LOAN LOSSES
|
|
|
8,431
|
|
|
|
12,000
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
|
31,861
|
|
|
|
15,124
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
|
Commissions
|
|
|
2,486
|
|
|
|
2,344
|
|
Service charges and ATM fees
|
|
|
4,473
|
|
|
|
5,061
|
|
Net realized gains on sales of loans
|
|
|
702
|
|
|
|
755
|
|
Net realized gains (losses) on sales and impairments of available-for-sale securities
|
(400
|
)
|
3,465
|
|||||
Late charges and fees on loans
|
|
|
162
|
|
|
|
237
|
|
Accretion (amortization) of income related to business acquisitions
|
|
|
(10,296
|
)
|
|
|
1,665
|
|
Other income
|
|
|
714
|
|
|
|
612
|
|
TOTAL NON-INTEREST INCOME
|
|
|
(2,159
|
)
|
|
|
14,139
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
11,709
|
|
|
|
11,167
|
|
Net occupancy and equipment expense
|
|
|
3,639
|
|
|
|
3,382
|
|
Postage
|
|
|
811
|
|
|
|
835
|
|
Insurance
|
|
|
1,498
|
|
|
|
1,120
|
|
Advertising
|
|
|
408
|
|
|
|
580
|
|
Office supplies and printing
|
|
|
354
|
|
|
|
360
|
|
Telephone
|
|
|
513
|
|
|
|
566
|
|
Legal, audit and other professional fees
|
|
|
723
|
|
|
|
626
|
|
Expense on foreclosed assets
|
|
|
627
|
|
|
|
416
|
|
Other operating expenses
|
|
|
1,855
|
|
|
|
1,756
|
|
TOTAL NON-INTEREST EXPENSE
|
|
|
22,137
|
|
|
|
20,808
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
7,565
|
|
|
|
8,455
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
1,675
|
|
|
|
2,631
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
5,890
|
|
|
|
5,824
|
|
PREFERRED STOCK DIVIDENDS AND DISCOUNT ACCRETION
|
|
|
782
|
|
|
|
848
|
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
5,108
|
|
|
$
|
4,976
|
|
BASIC EARNINGS PER COMMON SHARE
|
|
$
|
0.38
|
|
|
$
|
0.37
|
|
DILUTED EARNINGS PER COMMON SHARE
|
|
$
|
0.37
|
|
|
$
|
0.35
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
.18
|
|
|
$
|
.18
|
|
|
|
SIX MONTHS ENDED
JUNE 30,
|
|
|||||
|
|
2011
|
|
|
2010
|
|
||
INTEREST INCOME
|
|
(Unaudited)
|
|
|||||
Loans
|
|
$
|
84,327
|
|
|
$
|
64,747
|
|
Investment securities and other
|
|
|
13,858
|
|
|
|
14,619
|
|
TOTAL INTEREST INCOME
|
|
|
98,185
|
|
|
|
79,366
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
14,147
|
|
|
|
20,797
|
|
Federal Home Loan Bank advances
|
|
|
2,601
|
|
|
|
2,804
|
|
Short-term borrowings and repurchase agreements
|
|
|
1,503
|
|
|
|
1,792
|
|
Subordinated debentures issued to capital trusts
|
|
|
281
|
|
|
|
278
|
|
TOTAL INTEREST EXPENSE
|
|
|
18,532
|
|
|
|
25,671
|
|
NET INTEREST INCOME
|
|
|
79,653
|
|
|
|
53,695
|
|
PROVISION FOR LOAN LOSSES
|
|
|
16,631
|
|
|
|
17,500
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
|
|
63,022
|
|
|
|
36,195
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME
|
|
|
|
|
|
|
|
|
Commissions
|
|
|
4,923
|
|
|
|
4,410
|
|
Service charges and ATM fees
|
|
|
8,535
|
|
|
|
9,644
|
|
Net realized gains on sales of loans
|
|
|
1,609
|
|
|
|
1,548
|
|
Net realized gains (losses) on sales and impairments of available-for-sale securities
|
(400
|
)
|
3,465
|
|||||
Late charges and fees on loans
|
|
|
284
|
|
|
|
441
|
|
Accretion (amortization) of income related to business acquisitions
|
|
|
(20,049
|
)
|
|
|
2,565
|
|
Other income
|
|
|
1,168
|
|
|
|
1,064
|
|
TOTAL NON-INTEREST INCOME
|
|
|
(3,930
|
)
|
|
|
23,137
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
23,281
|
|
|
|
22,203
|
|
Net occupancy and equipment expense
|
|
|
7,329
|
|
|
|
6,871
|
|
Postage
|
|
|
1,566
|
|
|
|
1,667
|
|
Insurance
|
|
|
2,945
|
|
|
|
2,252
|
|
Advertising
|
|
|
683
|
|
|
|
799
|
|
Office supplies and printing
|
|
|
632
|
|
|
|
823
|
|
Telephone
|
|
|
1,139
|
|
|
|
1,108
|
|
Legal, audit and other professional fees
|
|
|
1,485
|
|
|
|
1,291
|
|
Expense on foreclosed assets
|
|
|
1,056
|
|
|
|
2,583
|
|
Other operating expenses
|
|
|
3,631
|
|
|
|
3,354
|
|
TOTAL NON-INTEREST EXPENSE
|
|
|
43,747
|
|
|
|
42,951
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
15,345
|
|
|
|
16,381
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
3,562
|
|
|
|
5,018
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
11,783
|
|
|
|
11,363
|
|
PREFERRED STOCK DIVIDENDS AND DISCOUNT ACCRETION
|
|
|
1,628
|
|
|
|
1,687
|
|
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
10,155
|
|
|
$
|
9,676
|
|
BASIC EARNINGS PER COMMON SHARE
|
|
$
|
0.75
|
|
|
$
|
0.72
|
|
DILUTED EARNINGS PER COMMON SHARE
|
|
$
|
0.73
|
|
|
$
|
0.69
|
|
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
.36
|
|
|
$
|
.36
|
|
|
|
SIX MONTHS ENDED JUNE 30,
|
|
|||||
|
|
2011
|
|
|
2010
|
|
||
|
|
(Unaudited)
|
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
||||
Net income
|
|
$
|
11,783
|
|
|
$
|
11,363
|
|
Proceeds from sales of loans held for sale
|
|
|
86,449
|
|
|
|
67,254
|
|
Originations of loans held for sale
|
|
|
(71,913
|
)
|
|
|
(68,981
|
)
|
Items not requiring (providing) cash:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
2,416
|
|
|
|
1,631
|
|
Amortization of other assets
|
|
|
1,121
|
|
|
|
511
|
|
Compensation expense for stock option grants
|
239
|
227
|
||||||
Provision for loan losses
|
|
|
16,631
|
|
|
|
17,500
|
|
Net gains on loan sales
|
|
|
(1,609
|
)
|
|
|
(1,548
|
)
|
Net (gains) losses on sale or impairment of available-for-sale investment securities
|
400
|
(3,465
|
)
|
|||||
Net (gains) losses on sale of premises and equipment
|
|
|
150
|
|
|
(15
|
)
|
|
(Gain) loss on sale of foreclosed assets
|
|
|
(536
|
)
|
|
|
695
|
|
Amortization (accretion) of deferred income, premiums, discounts
|
|
|
||||||
and fair value adjustments
|
|
|
17,998
|
|
|
|
(2,125
|
)
|
Deferred income taxes
|
|
|
(7,453
|
)
|
|
|
408
|
|
Changes in:
|
|
|
|
|
|
|
|
|
Interest receivable
|
|
|
938
|
|
|
|
1,535
|
|
Prepaid expenses and other assets
|
|
|
4,377
|
|
|
|
16,929
|
|
Accounts payable and accrued expenses
|
|
|
(1,256
|
)
|
|
|
22,834
|
|
Income taxes refundable/payable
|
|
|
432
|
|
|
|
(8,350
|
)
|
Net cash provided by operating activities
|
|
|
60,167
|
|
|
|
56,403
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net (increase) decrease in loans
|
|
|
(70,154
|
)
|
|
|
92,967
|
|
Purchase of loans
|
|
|
(150
|
)
|
|
|
(12,132
|
)
|
Proceeds from sale of student loans
|
|
|
798
|
|
|
|
22,219
|
|
Purchase of additional business units
|
(1
|
)
|
(25
|
)
|
||||
Purchase of premises and equipment
|
|
|
(8,587
|
)
|
|
|
(3,521
|
)
|
Proceeds from sale of premises and equipment
|
|
|
140
|
|
|
|
118
|
|
Proceeds from sale of foreclosed assets
|
|
|
7,167
|
|
|
|
16,952
|
|
Capitalized costs on foreclosed assets
|
|
|
(198
|
)
|
|
|
(651
|
)
|
Proceeds from sales of available-for-sale investment securities
|
--
|
145,852
|
|
|||||
Proceeds from maturing held-to-maturity investment securities
|
1,202
|
410
|
||||||
Proceeds from called investment securities
|
|
|
6,745
|
|
|
|
17,942
|
|
Principal reductions on mortgage-backed securities
|
|
|
61,963
|
|
|
|
116,215
|
|
Purchase of available-for-sale securities
|
|
|
(126,423
|
)
|
|
|
(239,729
|
)
|
Purchase of held-to-maturity securities
|
(840
|
)
|
(15,000
|
)
|
||||
(Purchase) redemption of Federal Home Loan Bank stock
|
|
|
331
|
|
|
|
(970
|
)
|
Net cash (used in) provided by investing activities
|
|
|
(128,007
|
)
|
|
|
140,647
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net decrease in certificates of deposit
|
|
|
(67,281
|
)
|
|
|
(202,197
|
)
|
Net increase in checking and savings deposits
|
|
|
94,698
|
|
|
|
96,748
|
|
Repayments of Federal Home Loan Bank advances
|
|
|
(1,228
|
)
|
|
|
(4,677
|
)
|
Net decrease in short-term borrowings and structured repo
|
|
|
(27,605
|
)
|
|
|
(60,941
|
)
|
Advances from borrowers for taxes and insurance
|
|
|
910
|
|
|
|
503
|
|
Dividends paid
|
|
|
(6,293
|
)
|
|
|
(6,280
|
)
|
Stock options exercised
|
|
|
93
|
|
|
|
374
|
|
Net cash used in financing activities
|
|
|
(6,706
|
)
|
|
|
(176,470
|
)
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(74,546
|
)
|
|
|
20,580
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
429,971
|
|
|
|
444,576
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
355,425
|
|
|
$
|
465,156
|
|
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Net unrealized gain on available-for-sale securities
|
$ | 9,332 | $ | 4,204 | ||||
Non-credit component of unrealized gain on available-for-sale debt
|
||||||||
securities for which a portion of an other-than-temporary impairment
|
||||||||
has been recognized
|
571 | — | ||||||
Other-than-temporary impairment loss recognized in earnings on
|
||||||||
available-for-sale debt securities
|
(400 | ) | — | |||||
Less reclassification adjustment for gain included in net income
|
— | 3,465 | ||||||
Other comprehensive income, before tax effect
|
9,503 | 739 | ||||||
Tax expense
|
3,326 | 259 | ||||||
Change in unrealized gain on available-for-sale securities,
|
||||||||
net of income taxes
|
$ | 6,177 | $ | 480 | ||||
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Net unrealized gain on available-for-sale securities
|
$ | 6,620 | $ | 3,602 | ||||
Non-credit component of unrealized gain on available-for-sale debt
|
||||||||
securities for which a portion of an other-than-temporary impairment
|
||||||||
has been recognized
|
705 | (435 | ) | |||||
Other-than-temporary impairment loss recognized in earnings on
|
||||||||
available-for-sale debt securities
|
(400 | ) | — | |||||
Less reclassification adjustment for gain included in net income
|
— | 3,465 | ||||||
Other comprehensive income (loss), before tax effect
|
6,925 | (298 | ) | |||||
Tax expense (benefit)
|
2,424 | (104 | ) | |||||
Change in unrealized gain (loss) on available-for-sale securities,
|
||||||||
net of income taxes
|
$ | 4,501 | $ | (194 | ) | |||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Net unrealized gain on available-for-sale securities
|
$ | 13,499 | $ | 7,279 | ||||
Net unrealized loss on available-for-sale debt securities for which a
|
||||||||
portion of an other-than-temporary impairment has been recognized
|
(80 | ) | (785 | ) | ||||
13,419 | 6,494 | |||||||
Tax expense
|
4,697 | 2,273 | ||||||
Net-of-tax amount
|
$ | 8,722 | $ | 4,221 |
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands, Except
|
||||||||
Per Share Data)
|
||||||||
Basic:
|
||||||||
Average shares outstanding
|
13,457 | 13,431 | ||||||
Net income available to common shareholders
|
$ | 5,108 | $ | 4,977 | ||||
Per share amount
|
$ | 0.38 | $ | 0.37 | ||||
Diluted:
|
||||||||
Average shares outstanding
|
13,457 | 13,431 | ||||||
Net effect of dilutive stock options and warrants – based on the treasury
|
||||||||
stock method using average market price
|
498 | 617 | ||||||
Diluted shares
|
13,955 | 14,048 | ||||||
Net income available to common shareholders
|
$ | 5,108 | $ | 4,977 | ||||
Per share amount
|
$ | 0.37 | $ | 0.35 | ||||
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands, Except
|
||||||||
Per Share Data)
|
||||||||
Basic:
|
||||||||
Average shares outstanding
|
13,457 | 13,429 | ||||||
Net income available to common shareholders
|
$ | 10,155 | $ | 9,676 | ||||
Per share amount
|
$ | 0.75 | $ | 0.72 | ||||
Diluted:
|
||||||||
Average shares outstanding
|
13,457 | 13,429 | ||||||
Net effect of dilutive stock options and warrants – based on the treasury
|
||||||||
stock method using average market price
|
531 | 607 | ||||||
Diluted shares
|
13,988 | 14,036 | ||||||
Net income available to common shareholders
|
$ | 10,155 | $ | 9,676 | ||||
Per share amount
|
$ | 0.73 | $ | 0.69 | ||||
June 30, 2011
|
||||||||||||||||||||
Gross
|
Gross
|
Tax
|
||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Equivalent
|
||||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
Yield
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES:
|
||||||||||||||||||||
U.S. government agencies
|
$ | 23,948 | $ | 131 | $ | — | $ | 24,079 | 2.56 | % | ||||||||||
Collateralized mortgage obligations
|
5,233 | 135 | 454 | 4,914 | 7.66 | |||||||||||||||
Mortgage-backed securities
|
627,229 | 13,509 | 897 | 639,841 | 3.19 | |||||||||||||||
Small Business Administration
|
||||||||||||||||||||
loan pools
|
58,647 | 596 | 46 | 59,197 | 1.86 | |||||||||||||||
States and political subdivisions
|
101,304 | 1,326 | 2,215 | 100,415 | 6.15 | |||||||||||||||
Corporate bonds
|
49 | 321 | — | 370 | 38.57 | |||||||||||||||
Equity securities
|
1,230 | 1,013 | — | 2,243 | — | |||||||||||||||
$ | 817,640 | $ | 17,031 | $ | 3,612 | $ | 831,059 | 3.47 | % | |||||||||||
HELD-TO-MATURITY SECURITIES:
|
||||||||||||||||||||
States and political subdivisions
|
$ | 1,865 | $ | 272 | $ | — | $ | 2,137 | 4.34 | % |
December 31, 2010
|
||||||||||||||||||||
Gross
|
Gross
|
Tax
|
||||||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Equivalent
|
||||||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
Yield
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
AVAILABLE-FOR-SALE SECURITIES:
|
||||||||||||||||||||
U.S. government agencies
|
$ | 4,000 | $ | — | $ | 20 | $ | 3,980 | 2.35 | % | ||||||||||
Collateralized mortgage obligations
|
8,311 | 183 | 814 | 7,680 | 6.48 | |||||||||||||||
Mortgage-backed securities
|
590,085 | 10,879 | 1,753 | 599,211 | 3.30 | |||||||||||||||
Small Business Administration
|
||||||||||||||||||||
loan pools
|
60,063 | 851 | — | 60,914 | 1.93 | |||||||||||||||
States and political subdivisions
|
99,314 | 378 | 4,075 | 95,617 | 6.16 | |||||||||||||||
Corporate bonds
|
49 | — | 28 | 21 | 74.97 | |||||||||||||||
Equity securities
|
1,230 | 893 | — | 2,123 | 0.18 | |||||||||||||||
$ | 763,052 | $ | 13,184 | $ | 6,690 | $ | 769,546 | 3.59 | % | |||||||||||
HELD-TO-MATURITY SECURITIES:
|
||||||||||||||||||||
States and political subdivisions
|
$ | 1,125 | $ | 175 | $ | — | $ | 1,300 | 7.31 | % |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
(In Thousands)
|
||||||||
One year or less
|
$ | 681 | $ | 683 | ||||
After one through five years
|
6,229 | 6,299 | ||||||
After five through ten years
|
9,452 | 9,648 | ||||||
After ten years
|
167,586 | 167,431 | ||||||
Securities not due on a single maturity date
|
632,462 | 644,755 | ||||||
Equity securities
|
1,230 | 2,243 | ||||||
$ | 817,640 | $ | 831,059 | |||||
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
(In Thousands)
|
||||||||
One year or less
|
$ | 840 | $ | 959 | ||||
After five through ten years
|
1,025 | 1,178 | ||||||
$ | 1,865 | $ | 2,137 |
June 30, 2011
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Description of Securities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | 19,637 | $ | 46 | $ | — | $ | — | $ | 19,637 | $ | 46 | ||||||||||||
Collateralized mortgage
|
||||||||||||||||||||||||
obligations
|
67 | — | 1,880 | 454 | 1,947 | 454 | ||||||||||||||||||
Mortgage-backed securities
|
117,860 | 897 | — | — | 117,860 | 897 | ||||||||||||||||||
States and political
|
||||||||||||||||||||||||
subdivisions
|
27,616 | 739 | 7,149 | 1,476 | 34,765 | 2,215 | ||||||||||||||||||
$ | 165,180 | $ | 1,682 | $ | 9,029 | $ | 1,930 | $ | 174,209 | $ | 3,612 |
December 31, 2010
|
||||||||||||||||||||||||
Less than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Description of Securities
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
U.S. government agencies
|
$ | 3,980 | $ | 20 | $ | — | $ | — | $ | 3,980 | $ | 20 | ||||||||||||
Collateralized mortgage
|
||||||||||||||||||||||||
obligations
|
— | — | 1,809 | 814 | 1,809 | 814 | ||||||||||||||||||
Mortgage-backed securities
|
231,524 | 1,753 | — | — | 231,524 | 1,753 | ||||||||||||||||||
States and political
|
||||||||||||||||||||||||
subdivisions
|
56,221 | 2,328 | 5,257 | 1,747 | 61,478 | 4,075 | ||||||||||||||||||
Corporate bonds
|
8 | 24 | 14 | 4 | 22 | 28 | ||||||||||||||||||
$ | 291,733 | $ | 4,125 | $ | 7,080 | $ | 2,565 | $ | 298,813 | $ | 6,690 |
Accumulated
|
||||
Credit Losses
|
||||
(In Thousands)
|
||||
Credit losses on debt securities held
|
||||
April 1, 2011
|
$ | 2,983 | ||
Additions related to other-than-temporary losses not previously recognized
|
— | |||
Additions related to increases in credit losses on debt securities for which
|
||||
other-than-temporary impairment losses were previously recognized
|
400 | |||
Reductions due to sales
|
— | |||
June 30, 2011
|
$ | 3,383 |
Accumulated
|
||||
Credit Losses
|
||||
(In Thousands)
|
||||
Credit losses on debt securities held
|
||||
April 1, 2010
|
$ | 2,983 | ||
Additions related to other-than-temporary losses not previously recognized
|
— | |||
Reductions due to sales
|
— | |||
June 30, 2010
|
$ | 2,983 |
Accumulated
|
||||
Credit Losses
|
||||
(In Thousands)
|
||||
Credit losses on debt securities held
|
||||
January 1, 2011
|
$ | 2,983 | ||
Additions related to other-than-temporary losses not previously recognized
|
— | |||
Additions related to increases in credit losses on debt securities for which
|
||||
other-than-temporary impairment losses were previously recognized
|
400 | |||
Reductions due to sales
|
— | |||
June 30, 2011
|
$ | 3,383 |
Accumulated
|
||||
Credit Losses
|
||||
(In Thousands)
|
||||
Credit losses on debt securities held
|
||||
January 1, 2010
|
$ | 2,983 | ||
Additions related to other-than-temporary losses not previously recognized
|
— | |||
Reductions due to sales
|
— | |||
June 30, 2010
|
$ | 2,983 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
One- to four-family residential construction
|
$ | 30,070 | $ | 29,102 | ||||
Subdivision construction
|
73,343 | 86,649 | ||||||
Land development
|
79,674 | 95,573 | ||||||
Commercial construction
|
99,368 | 68,018 | ||||||
Owner occupied one- to four-family residential
|
96,153 | 98,099 | ||||||
Non-owner occupied one- to four-family residential
|
137,241 | 136,984 | ||||||
Commercial real estate
|
571,117 | 530,277 | ||||||
Other residential
|
237,321 | 210,846 | ||||||
Commercial business
|
196,735 | 185,865 | ||||||
Industrial revenue bonds
|
64,631 | 64,641 | ||||||
Consumer auto
|
55,569 | 48,992 | ||||||
Consumer other
|
74,568 | 77,331 | ||||||
Home equity lines of credit
|
44,825 | 46,852 | ||||||
FDIC-supported loans, net of discounts (TeamBank)
|
141,353 | 144,633 | ||||||
FDIC-supported loans, net of discounts (Vantus Bank)
|
141,920 | 160,163 | ||||||
2,043,888 | 1,984,025 | |||||||
Undisbursed portion of loans in process
|
(90,079 | ) | (63,108 | ) | ||||
Allowance for loan losses
|
(40,487 | ) | (41,487 | ) | ||||
Deferred loan fees and gains, net
|
(2,437 | ) | (2,543 | ) | ||||
$ | 1,910,885 | $ | 1,876,887 | |||||
Weighted average interest rate
|
5.94 | % | 6.03 | % |
June 30, 2011
|
||||||||||||||||||||||||||||
Total Loans
|
||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Over 90
|
Total Past
|
Total Loans
|
> 90 Days and
|
|||||||||||||||||||||||
Past Due
|
Past Due
|
Days
|
Due
|
Current
|
Receivable
|
Still Accruing
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
One- to four-family
|
||||||||||||||||||||||||||||
residential construction
|
$ | 120 | $ | — | $ | 832 | $ | 952 | $ | 29,118 | $ | 30,070 | $ | — | ||||||||||||||
Subdivision construction
|
68 | 349 | 4,666 | 5,083 | 68,260 | 73,343 | — | |||||||||||||||||||||
Land development
|
— | — | 1,349 | 1,349 | 78,325 | 79,674 | — | |||||||||||||||||||||
Commercial construction
|
— | — | — | — | 99,368 | 99,368 | — | |||||||||||||||||||||
Owner occupied one- to four-
|
||||||||||||||||||||||||||||
family residential
|
578 | 2,222 | 3,070 | 5,870 | 90,283 | 96,153 | 118 | |||||||||||||||||||||
Non-owner occupied one- to
|
||||||||||||||||||||||||||||
four-family residential
|
73 | — | 2,385 | 2,458 | 134,783 | 137,241 | 98 | |||||||||||||||||||||
Commercial real estate
|
1,381 | 1,722 | 5,337 | 8,440 | 562,677 | 571,117 | — | |||||||||||||||||||||
Other residential
|
189 | — | 3,093 | 3,282 | 234,039 | 237,321 | — | |||||||||||||||||||||
Commercial business
|
50 | 164 | 1,443 | 1,657 | 195,078 | 196,735 | — | |||||||||||||||||||||
Industrial revenue bonds
|
— | — | 2,110 | 2,110 | 62,521 | 64,631 | — | |||||||||||||||||||||
Consumer auto
|
449 | 26 | 83 | 558 | 55,011 | 55,569 | 11 | |||||||||||||||||||||
Consumer other
|
1,332 | 386 | 747 | 2,465 | 72,103 | 74,568 | 355 | |||||||||||||||||||||
Home equity lines of credit
|
306 | 80 | 144 | 530 | 44,295 | 44,825 | — | |||||||||||||||||||||
FDIC-supported loans, net of
|
||||||||||||||||||||||||||||
discounts (TeamBank)
|
555 | 1,721 | 19,046 | 21,322 | 120,031 | 141,353 | 146 | |||||||||||||||||||||
FDIC-supported loans, net of
|
||||||||||||||||||||||||||||
discounts (Vantus Bank)
|
286 | 2,917 | 7,194 | 10,397 | 131,523 | 141,920 | 33 | |||||||||||||||||||||
5,387 | 9,587 | 51,499 | 66,473 | 1,977,415 | 2,043,888 | $ | 761 | |||||||||||||||||||||
Less FDIC-supported loans,
|
||||||||||||||||||||||||||||
net of discounts
|
841 | 4,638 | 26,240 | 31,719 | 251,554 | 283,273 | ||||||||||||||||||||||
Total
|
$ | 4,546 | $ | 4,949 | $ | 25,259 | $ | 34,754 | $ | 1,725,861 | $ | 1,760,615 |
December 31, 2010
|
||||||||||||||||||||||||||||
Total Loans
|
||||||||||||||||||||||||||||
30-59 Days
|
60-89 Days
|
Over 90
|
Total Past
|
Total Loans
|
> 90 Days and
|
|||||||||||||||||||||||
Past Due
|
Past Due
|
Days
|
Due
|
Current
|
Receivable
|
Still Accruing
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
One- to four-family
|
||||||||||||||||||||||||||||
residential construction
|
$ | 261 | $ | — | $ | 578 | $ | 839 | $ | 28,263 | $ | 29,102 | $ | — | ||||||||||||||
Subdivision construction
|
281 | 1,015 | 1,860 | 3,156 | 83,493 | 86,649 | — | |||||||||||||||||||||
Land development
|
2,730 | — | 5,668 | 8,398 | 42,616 | 51,014 | — | |||||||||||||||||||||
Commercial construction
|
— | — | — | — | 112,577 | 112,577 | — | |||||||||||||||||||||
Owner occupied one- to four-
|
||||||||||||||||||||||||||||
family residential
|
4,856 | 914 | 2,724 | 8,494 | 89,605 | 98,099 | — | |||||||||||||||||||||
Non-owner occupied one- to
|
||||||||||||||||||||||||||||
four-family residential
|
2,085 | 2,130 | 2,831 | 7,046 | 129,938 | 136,984 | — | |||||||||||||||||||||
Commercial real estate
|
2,749 | 8,546 | 6,074 | 17,369 | 512,908 | 530,277 | — | |||||||||||||||||||||
Other residential
|
— | 4,011 | 4,202 | 8,213 | 202,633 | 210,846 | — | |||||||||||||||||||||
Commercial business
|
350 | 355 | 1,642 | 2,347 | 183,518 | 185,865 | — | |||||||||||||||||||||
Industrial revenue bonds
|
— | — | 2,190 | 2,190 | 62,451 | 64,641 | — | |||||||||||||||||||||
Consumer auto
|
427 | 35 | 94 | 556 | 48,436 | 48,992 | 22 | |||||||||||||||||||||
Consumer other
|
1,331 | 318 | 1,417 | 3,066 | 74,265 | 77,331 | 565 | |||||||||||||||||||||
Home equity lines of credit
|
152 | 160 | 140 | 452 | 46,400 | 46,852 | — | |||||||||||||||||||||
FDIC-supported loans, net of
|
||||||||||||||||||||||||||||
discounts (TeamBank)
|
2,719 | 3,731 | 13,285 | 19,735 | 124,898 | 144,633 | — | |||||||||||||||||||||
FDIC-supported loans, net of
|
||||||||||||||||||||||||||||
discounts (Vantus Bank)
|
2,277 | 1,414 | 9,399 | 13,090 | 147,073 | 160,163 | — | |||||||||||||||||||||
20,218 | 22,629 | 52,104 | 94,951 | 1,889,074 | 1,984,025 | $ | 587 | |||||||||||||||||||||
Less FDIC-supported loans,
|
||||||||||||||||||||||||||||
net of discounts
|
4,996 | 5,145 | 22,684 | 32,825 | 271,971 | 304,796 | ||||||||||||||||||||||
Total
|
$ | 15,222 | $ | 17,484 | $ | 29,420 | $ | 62,126 | $ | 1,617,103 | $ | 1,679,229 |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
One- to four-family residential construction
|
$ | 832 | $ | 578 | ||||
Subdivision construction
|
4,666 | 1,860 | ||||||
Land development
|
1,349 | 5,668 | ||||||
Commercial construction
|
— | — | ||||||
Owner occupied one- to four-family residential
|
2,952 | 2,724 | ||||||
Non-owner occupied one- to four-family residential
|
2,287 | 2,831 | ||||||
Commercial real estate
|
5,337 | 6,074 | ||||||
Other residential
|
3,093 | 4,202 | ||||||
Commercial business
|
1,443 | 1,642 | ||||||
Industrial revenue bonds
|
2,110 | 2,190 | ||||||
Consumer auto
|
72 | 72 | ||||||
Consumer other
|
392 | 852 | ||||||
Home equity lines of credit
|
144 | 140 | ||||||
Total
|
$ | 24,677 | $ | 28,833 |
One- to Four-
|
||||||||||||||||||||||||||||
Family
|
Other
|
|||||||||||||||||||||||||||
Residential and
|
Residential and
|
Commercial
|
Commercial
|
Commercial
|
||||||||||||||||||||||||
Construction
|
Construction
|
Real Estate
|
Construction
|
Business
|
Consumer
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||
Balance April 1, 2011
|
$ | 11,546 | $ | 3,798 | $ | 15,807 | $ | 5,235 | $ | 3,010 | $ | 2,438 | $ | 41,834 | ||||||||||||||
Provision charged to expense
|
772 | 1,756 | 2,673 | 2,348 | 38 | 844 | 8,431 | |||||||||||||||||||||
Losses charged off
|
(758 | ) | (1,926 | ) | (3,526 | ) | (2,433 | ) | (924 | ) | (917 | ) | (10,484 | ) | ||||||||||||||
Recoveries
|
2 | 1 | 49 | 5 | 200 | 449 | 706 | |||||||||||||||||||||
Balance June 30, 2011
|
$ | 11,562 | $ | 3,629 | $ | 15,003 | $ | 5,155 | $ | 2,324 | $ | 2,814 | $ | 40,487 | ||||||||||||||
Balance January 1, 2011
|
$ | 11,483 | $ | 3,866 | $ | 14,336 | $ | 5,852 | $ | 3,281 | $ | 2,669 | $ | 41,487 | ||||||||||||||
Provision charged to expense
|
4,010 | 2,649 | 5,885 | 3,145 | 8 | 934 | 16,631 | |||||||||||||||||||||
Losses charged off
|
(3,959 | ) | (2,888 | ) | (5,269 | ) | (3,851 | ) | (1,716 | ) | (1,807 | ) | (19,490 | ) | ||||||||||||||
Recoveries
|
28 | 2 | 51 | 9 | 751 | 1,018 | 1,859 | |||||||||||||||||||||
Balance June 30, 2011
|
$ | 11,562 | $ | 3,629 | $ | 15,003 | $ | 5,155 | $ | 2,324 | $ | 2,814 | $ | 40,487 | ||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 3,293 | $ | 369 | $ | 1,901 | $ | 1,288 | $ | 502 | $ | 86 | $ | 7,439 | ||||||||||||||
Collectively evaluated for impairment
|
$ | 8,269 | $ | 3,259 | $ | 13,103 | $ | 3,838 | $ | 1,823 | $ | 2,727 | $ | 33,019 | ||||||||||||||
Loans acquired and accounted for
under ASC 310-30
|
$ | — | $ | — | $ | — | $ | 30 | $ | — | $ | — | $ | 30 | ||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 39,478 | $ | 24,557 | $ | 68,603 | $ | 31,887 | $ | 7,250 | $ | 708 | $ | 172,483 | ||||||||||||||
Collectively evaluated for impairment
|
$ | 297,330 | $ | 212,763 | $ | 567,145 | $ | 147,155 | $ | 189,484 | $ | 174,255 | $ | 1,588,132 | ||||||||||||||
Loans acquired and accounted for
under ASC 310-30
|
$ | 66,352 | $ | 23,529 | $ | 121,862 | $ | 22,731 | $ | 14,639 | $ | 34,160 | $ | 283,273 |
One- to Four-
|
||||||||||||||||||||||||||||
Family
|
Other
|
|||||||||||||||||||||||||||
Residential and
|
Residential and
|
Commercial
|
Commercial
|
Commercial
|
||||||||||||||||||||||||
Construction
|
Construction
|
Real Estate
|
Construction
|
Business
|
Consumer
|
Total
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||
Individually evaluated for
|
||||||||||||||||||||||||||||
impairment
|
$ | 4,353 | $ | 1,714 | $ | 3,089 | $ | 2,083 | $ | 784 | $ | 37 | $ | 12,060 | ||||||||||||||
Collectively evaluated for
|
||||||||||||||||||||||||||||
impairment
|
$ | 7,100 | $ | 2,152 | $ | 11,247 | $ | 3,769 | $ | 1,697 | $ | 2,632 | $ | 28,597 | ||||||||||||||
Loans acquired and accounted
|
||||||||||||||||||||||||||||
for under ASC 310-30
|
$ | — | $ | — | $ | — | $ | 30 | $ | 800 | $ | — | $ | 830 | ||||||||||||||
Loans
|
||||||||||||||||||||||||||||
Individually evaluated for
|
||||||||||||||||||||||||||||
impairment
|
$ | 40,562 | $ | 25,246 | $ | 72,379 | $ | 45,334 | $ | 8,340 | $ | 622 | $ | 192,483 | ||||||||||||||
Collectively evaluated for
|
||||||||||||||||||||||||||||
impairment
|
$ | 310,272 | $ | 185,600 | $ | 522,539 | $ | 118,257 | $ | 177,525 | $ | 172,553 | $ | 1,486,746 | ||||||||||||||
Loans acquired and accounted
|
||||||||||||||||||||||||||||
for under ASC 310-30
|
$ | 75,727 | $ | 23,277 | $ | 128,704 | $ | 22,858 | $ | 15,215 | $ | 39,015 | $ | 304,796 |
June 30, 2011
|
||||||||||||
Unpaid
|
||||||||||||
Recorded
|
Principal
|
Specific
|
||||||||||
Balance
|
Balance
|
Allowance
|
||||||||||
(In Thousands)
|
||||||||||||
One- to four-family residential construction
|
$ | 2,106 | $ | 2,197 | $ | 121 | ||||||
Subdivision construction
|
8,543 | 9,467 | 1,498 | |||||||||
Land development
|
7,330 | 7,995 | 1,288 | |||||||||
Commercial construction
|
— | — | — | |||||||||
Owner occupied one- to four-family residential
|
3,960 | 4,529 | 601 | |||||||||
Non-owner occupied one- to four-family residential
|
9,126 | 9,323 | 1,074 | |||||||||
Commercial real estate
|
22,038 | 24,641 | 1,795 | |||||||||
Other residential
|
8,330 | 9,266 | 369 | |||||||||
Commercial business
|
2,366 | 3,212 | 502 | |||||||||
Industrial revenue bonds
|
2,110 | 2,190 | 105 | |||||||||
Consumer auto
|
121 | 141 | 6 | |||||||||
Consumer other
|
550 | 615 | 63 | |||||||||
Home equity lines of credit
|
120 | 129 | 17 | |||||||||
Total
|
$ | 66,700 | $ | 73,705 | $ | 7,439 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2011
|
June 30, 2011
|
|||||||||||||||
Average
|
Average
|
|||||||||||||||
Investment
|
Interest
|
Investment
|
Interest
|
|||||||||||||
in Impaired
|
Income
|
in Impaired
|
Income
|
|||||||||||||
Loans
|
Recognized
|
Loans
|
Recognized
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
One- to four-family residential construction
|
$ | 2,006 | $ | 9 | $ | 1,882 | $ | 18 | ||||||||
Subdivision construction
|
8,314 | 54 | 8,909 | 115 | ||||||||||||
Land development
|
11,066 | 70 | 12,751 | 233 | ||||||||||||
Commercial construction
|
— | — | 617 | — | ||||||||||||
Owner occupied one- to four-family residential
|
3,838 | 10 | 4,568 | 34 | ||||||||||||
Non-owner occupied one- to four-family residential
|
9,446 | 98 | 9,944 | 201 | ||||||||||||
Commercial real estate
|
23,901 | 205 | 26,282 | 461 | ||||||||||||
Other residential
|
9,701 | 93 | 11,032 | 191 | ||||||||||||
Commercial business
|
3,497 | 13 | 5,264 | 62 | ||||||||||||
Industrial revenue bonds
|
2,137 | — | 2,163 | — | ||||||||||||
Consumer auto
|
109 | 1 | 262 | 4 | ||||||||||||
Consumer other
|
575 | 3 | 579 | 7 | ||||||||||||
Home equity lines of credit
|
182 | — | 267 | 1 | ||||||||||||
Total
|
$ | 74,772 | $ | 556 | $ | 84,520 | $ | 1,327 |
December 31, 2010
|
||||||||||||||||||||
Average
|
||||||||||||||||||||
Unpaid
|
Investment
|
Interest
|
||||||||||||||||||
Recorded
|
Principal
|
Specific
|
in Impaired
|
Income
|
||||||||||||||||
Balance
|
Balance
|
Allowance
|
Loans
|
Recognized
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
One- to four-family residential
|
||||||||||||||||||||
construction
|
$ | 1,947 | $ | 2,371 | $ | 258 | $ | 1,724 | $ | 83 | ||||||||||
Subdivision construction
|
9,894 | 10,560 | 2,326 | 7,850 | 415 | |||||||||||||||
Land development
|
17,957 | 21,006 | 1,925 | 18,760 | 534 | |||||||||||||||
Commercial construction
|
1,851 | 1,851 | 158 | 458 | 31 | |||||||||||||||
Owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
5,205 | 5,620 | 542 | 3,612 | 69 | |||||||||||||||
Non-owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
11,785 | 12,267 | 1,227 | 8,182 | 386 | |||||||||||||||
Commercial real estate
|
25,782 | 26,392 | 3,045 | 10,615 | 603 | |||||||||||||||
Other residential
|
9,768 | 9,869 | 1,714 | 8,123 | 140 | |||||||||||||||
Commercial business
|
9,722 | 12,495 | 828 | 2,630 | 114 | |||||||||||||||
Consumer auto
|
125 | 137 | 4 | 30 | 1 | |||||||||||||||
Consumer other
|
429 | 481 | 14 | 93 | 4 | |||||||||||||||
Home equity lines of credit
|
148 | 166 | 19 | 109 | 1 | |||||||||||||||
Total
|
$ | 94,613 | $ | 103,215 | $ | 12,060 | $ | 62,186 | $ | 2,381 |
June 30, 2011
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
Satisfactory
|
Watch
|
Mention
|
Substandard
|
Total
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
One- to four-family residential
|
||||||||||||||||||||
construction
|
$ | 26,723 | $ | 2,009 | $ | — | $ | 1,338 | $ | 30,070 | ||||||||||
Subdivision construction
|
55,514 | 10,562 | — | 7,267 | 73,343 | |||||||||||||||
Land development
|
52,590 | 20,459 | — | 6,625 | 79,674 | |||||||||||||||
Commercial construction
|
94,565 | 4,803 | — | — | 99,368 | |||||||||||||||
Owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
92,222 | 525 | — | 3,406 | 96,153 | |||||||||||||||
Non-owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
122,870 | 6,714 | — | 7,657 | 137,241 | |||||||||||||||
Commercial real estate
|
504,624 | 48,559 | 2,684 | 15,250 | 571,117 | |||||||||||||||
Other residential
|
212,763 | 21,276 | — | 3,282 | 237,321 | |||||||||||||||
Commercial business
|
189,484 | 4,885 | — | 2,366 | 196,735 | |||||||||||||||
Industrial revenue bonds
|
62,521 | — | — | 2,110 | 64,631 | |||||||||||||||
Consumer auto
|
55,474 | — | — | 95 | 55,569 | |||||||||||||||
Consumer other
|
74,076 | — | — | 492 | 74,568 | |||||||||||||||
Home equity lines of credit
|
44,705 | — | — | 120 | 44,825 | |||||||||||||||
FDIC-supported loans, net of discounts
|
||||||||||||||||||||
(TeamBank)
|
141,353 | — | — | — | 141,353 | |||||||||||||||
FDIC-supported loans, net of discounts
|
||||||||||||||||||||
(Vantus Bank)
|
141,920 | — | — | — | 141,920 | |||||||||||||||
Total
|
$ | 1,871,404 | $ | 119,792 | $ | 2,684 | $ | 50,008 | $ | 2,043,888 |
December 31, 2010
|
||||||||||||||||||||
Special
|
||||||||||||||||||||
Satisfactory
|
Watch
|
Mention
|
Substandard
|
Total
|
||||||||||||||||
(In Thousands)
|
||||||||||||||||||||
One- to four-family residential
|
||||||||||||||||||||
construction
|
$ | 27,620 | $ | 549 | $ | — | $ | 933 | $ | 29,102 | ||||||||||
Subdivision construction
|
69,907 | 8,408 | — | 8,334 | 86,649 | |||||||||||||||
Land development
|
57,486 | 20,834 | — | 17,253 | 95,573 | |||||||||||||||
Commercial construction
|
60,770 | 5,397 | — | 1,851 | 68,018 | |||||||||||||||
Owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
92,385 | 766 | — | 4,948 | 98,099 | |||||||||||||||
Non-owner occupied one- to four-family
|
||||||||||||||||||||
residential
|
120,360 | 6,471 | — | 10,153 | 136,984 | |||||||||||||||
Commercial real estate
|
460,088 | 46,805 | 2,574 | 20,810 | 530,277 | |||||||||||||||
Other residential
|
185,600 | 15,478 | — | 9,768 | 210,846 | |||||||||||||||
Commercial business
|
177,525 | 812 | — | 7,528 | 185,865 | |||||||||||||||
Industrial revenue bonds
|
62,451 | — | — | 2,190 | 64,641 | |||||||||||||||
Consumer auto
|
48,883 | — | — | 109 | 48,992 | |||||||||||||||
Consumer other
|
76,966 | — | — | 365 | 77,331 | |||||||||||||||
Home equity lines of credit
|
46,704 | — | — | 148 | 46,852 | |||||||||||||||
FDIC-supported loans, net of discounts
|
||||||||||||||||||||
(TeamBank)
|
144,633 | — | — | — | 144,633 | |||||||||||||||
FDIC-supported loans, net of discounts
|
||||||||||||||||||||
(Vantus Bank)
|
160,163 | — | — | — | 160,163 | |||||||||||||||
Total
|
$ | 1,791,541 | $ | 105,520 | $ | 2,574 | $ | 84,390 | $ | 1,984,025 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2011
|
June 30, 2011
|
|||||||||||||||
(In Thousands, Except Per Share and Basis Points Data)
|
||||||||||||||||
Impact on net interest income/
|
||||||||||||||||
net interest margin (in basis points)
|
$ | 12,814 | 166 bps | $ | 25,481 | 164 bps | ||||||||||
Non-interest income
|
(11,491 | ) | (22,753 | ) | ||||||||||||
Net impact to pre-tax income
|
$ | 1,323 | $ | 2,728 | ||||||||||||
Net impact net of taxes
|
$ | 860 | $ | 1,773 | ||||||||||||
Impact to diluted earnings per common share
|
$ | 0.07 | $ | 0.13 |
June 30, 2011
|
||||||||
Foreclosed
|
||||||||
Loans
|
Assets
|
|||||||
(In Thousands)
|
||||||||
Initial basis for loss sharing determination,
|
||||||||
net of activity since acquisition date
|
$ | 195,377 | $ | 16,615 | ||||
Non-credit premium/(discount), net of activity since acquisition date
|
(2,459 | ) | — | |||||
Reclassification from nonaccretable discount to accretable discount
|
||||||||
due to change in expected losses (net of accretion to date)
|
(12,533 | ) | — | |||||
Original estimated fair value of assets, net of activity since
|
||||||||
acquisition date
|
(141,353 | ) | (6,672 | ) | ||||
Expected loss remaining
|
39,032 | 9,943 | ||||||
Assumed loss sharing recovery percentage
|
84 | % | 78 | % | ||||
Expected loss remaining
|
32,609 | 7,792 | ||||||
Indemnification asset to be amortized resulting from
|
||||||||
change in expected losses
|
11,886 | — | ||||||
Accretable discount on FDIC indemnification asset
|
(4,186 | ) | — | |||||
FDIC indemnification asset
|
$ | 40,309 | $ | 7,792 |
December 31, 2010
|
||||||||
Foreclosed
|
||||||||
Loans
|
Assets
|
|||||||
(In Thousands)
|
||||||||
Initial basis for loss sharing determination,
|
||||||||
net of activity since acquisition date
|
$ | 219,289 | $ | 15,921 | ||||
Non-credit premium/(discount), net of activity since acquisition date
|
(3,875 | ) | — | |||||
Reclassification from nonaccretable discount to accretable discount
|
||||||||
due to change in expected losses (net of accretion to date)
|
(21,071 | ) | — | |||||
Original estimated fair value of assets, net of activity since
|
||||||||
acquisition date
|
(144,633 | ) | (5,463 | ) | ||||
Expected loss remaining
|
49,710 | 10,458 | ||||||
Assumed loss sharing recovery percentage
|
85 | % | 78 | % | ||||
Expected loss remaining
|
42,275 | 8,204 | ||||||
Indemnification asset to be amortized resulting from
|
||||||||
change in expected losses
|
20,011 | — | ||||||
Accretable discount on FDIC indemnification asset
|
(6,077 | ) | — | |||||
FDIC indemnification asset
|
$ | 56,209 | $ | 8,204 |
June 30, 2011
|
||||||||
Foreclosed
|
||||||||
Loans
|
Assets
|
|||||||
(In Thousands)
|
||||||||
Initial basis for loss sharing determination,
|
||||||||
net of activity since acquisition date
|
$ | 178,190 | $ | 9,347 | ||||
Non-credit premium/(discount), net of activity since acquisition date
|
(908 | ) | — | |||||
Reclassification from nonaccretable discount to accretable discount
|
||||||||
due to change in expected losses (net of accretion to date)
|
(12,735 | ) | — | |||||
Original estimated fair value of assets, net of activity since
|
||||||||
acquisition date
|
(141,920 | ) | (5,677 | ) | ||||
Expected loss remaining
|
22,627 | 3,670 | ||||||
Assumed loss sharing recovery percentage
|
80 | % | 80 | % | ||||
Expected loss remaining
|
18,101 | 2,936 | ||||||
Indemnification asset to be amortized resulting from
|
||||||||
change in expected losses
|
10,187 | — | ||||||
Accretable discount on FDIC indemnification asset
|
(2,829 | ) | (109 | ) | ||||
FDIC indemnification asset
|
$ | 25,459 | $ | 2,827 |
December 31, 2010
|
||||||||
Foreclosed
|
||||||||
Loans
|
Assets
|
|||||||
(In Thousands)
|
||||||||
Initial basis for loss sharing determination,
|
||||||||
net of activity since acquisition date
|
$ | 208,080 | $ | 9,944 | ||||
Non-credit premium/(discount), net of activity since acquisition date
|
(1,431 | ) | — | |||||
Reclassification from nonaccretable discount to accretable discount
|
||||||||
due to change in expected losses (net of accretion to date)
|
(18,428 | ) | — | |||||
Original estimated fair value of assets, net of activity since
|
||||||||
acquisition date
|
(160,163 | ) | (5,899 | ) | ||||
Expected loss remaining
|
28,058 | 4,045 | ||||||
Assumed loss sharing recovery percentage
|
80 | % | 80 | % | ||||
Expected loss remaining
|
22,445 | 3,236 | ||||||
Indemnification asset to be amortized resulting from
|
||||||||
change in expected losses
|
14,743 | — | ||||||
Accretable discount on FDIC indemnification asset
|
(3,850 | ) | (109 | ) | ||||
FDIC indemnification asset
|
$ | 33,338 | $ | 3,127 |
TeamBank
|
Vantus Bank
|
|||||||
(In Thousands)
|
||||||||
Balance, April 1, 2010
|
$ | 27,681 | $ | 34,939 | ||||
Accretion
|
(3,477 | ) | (4,495 | ) | ||||
Balance, June 30, 2010
|
$ | 24,204 | $ | 30,444 | ||||
Balance, April 1, 2011
|
$ | 27,287 | $ | 31,882 | ||||
Accretion
|
(10,854 | ) | (7,364 | ) | ||||
Reclassification from nonaccretable difference(1)
|
6,712 | 2,365 | ||||||
Balance, June 30, 2011
|
$ | 23,145 | $ | 26,883 |
1) | Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools totaling $2.5 million and $581,000 for TeamBank and Vantus Bank, respectively. |
TeamBank
|
Vantus Bank
|
|||||||
(In Thousands)
|
||||||||
Balance, January 1, 2010
|
$ | 31,300 | $ | 39,023 | ||||
Accretion
|
(7,096 | ) | (8,579 | ) | ||||
Balance, June 30, 2010
|
$ | 24,204 | $ | 30,444 | ||||
Balance, January 1, 2011
|
$ | 36,765 | $ | 35,796 | ||||
Accretion
|
(21,523 | ) | (15,510 | ) | ||||
Reclassification from nonaccretable difference(1)
|
7,903 | 6,597 | ||||||
Balance, June 30, 2011
|
$ | 23,145 | $ | 26,883 |
1) | Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools totaling $2.8 million and $1.8 million for TeamBank and Vantus Bank, respectively. |
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
One-to four-family construction
|
$ | 1,303 | $ | 2,510 | ||||
Subdivision construction
|
19,969 | 19,816 | ||||||
Land development
|
18,148 | 10,620 | ||||||
Commercial construction
|
2,747 | 3,997 | ||||||
One-to four-family residential
|
3,239 | 2,896 | ||||||
Other residential
|
4,978 | 4,178 | ||||||
Commercial real estate
|
6,093 | 4,565 | ||||||
Commercial business
|
32 | — | ||||||
Consumer
|
1,720 | 318 | ||||||
58,229 | 48,900 | |||||||
FDIC-supported foreclosed assets, net of discounts
|
12,348 | 11,362 | ||||||
$ | 70,577 | $ | 60,262 |
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Net (gain) loss on sales of real estate
|
$ | 34 | $ | (350 | ) | |||
Operating expenses, net of rental income
|
593 | 766 | ||||||
$ | 627 | $ | 416 |
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Net (gain) loss on sales of real estate
|
$ | (283 | ) | $ | 894 | |||
Operating expenses, net of rental income
|
1,339 | 1,689 | ||||||
$ | 1,056 | $ | 2,583 |
June 30,
|
December 31,
|
||
2011
|
2010
|
||
(In Thousands)
|
|||
Time Deposits:
|
|||
0.00% - 1.99%
|
$ 976,059
|
$ 838,619
|
|
2.00% - 2.99%
|
166,477
|
298,029
|
|
3.00% - 3.99%
|
20,889
|
28,398
|
|
4.00% - 4.99%
|
60,626
|
126,001
|
|
5.00% - 5.99%
|
7,512
|
8,346
|
|
6.00% - 6.99%
|
321
|
311
|
|
Total time deposits (1.47% - 1.85%)
|
1,231,884
|
1,299,704
|
|
Non-interest-bearing demand deposits
|
278,349
|
257,569
|
|
Interest-bearing demand and savings deposits (0.71% - 0.83%)
|
1,112,539
|
1,038,620
|
|
Total Deposits
|
$2,622,772
|
$2,595,893
|
Three Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Tax at statutory rate
|
35.0 | % | 35.0 | % | ||||
Nontaxable interest and dividends
|
(7.1 | ) | (5.1 | ) | ||||
Tax credits
|
(7.4 | ) | — | |||||
State taxes
|
1.0 | 0.8 | ||||||
Other
|
0.6 | 0.4 | ||||||
22.1 | % | 31.1 | % |
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Tax at statutory rate
|
35.0 | % | 35.0 | % | ||||
Nontaxable interest and dividends
|
(7.2 | ) | (5.0 | ) | ||||
Tax credits
|
(6.6 | ) | (0.3 | ) | ||||
State taxes
|
1.4 | 0.8 | ||||||
Other
|
0.6 | 0.1 | ||||||
23.2 | % | 30.6 | % |
·
|
Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
|
·
|
Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means.
|
·
|
Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity's own assumptions that are supported by little or no market activity or observable inputs.
|
Fair value measurements at
|
||||||||||||||||
June 30, 2011, using
|
||||||||||||||||
Quoted prices
|
||||||||||||||||
in active
|
||||||||||||||||
markets
|
Other
|
Significant
|
||||||||||||||
Fair value
|
for identical
|
observable
|
unobservable
|
|||||||||||||
June 30,
|
assets
|
inputs
|
inputs
|
|||||||||||||
2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. government agencies
|
$ | 24,079 | $ | — | $ | 24,079 | $ | — | ||||||||
Collateralized mortgage obligations
|
4,914 | — | 4,914 | — | ||||||||||||
Mortgage-backed securities
|
639,841 | — | 639,841 | — | ||||||||||||
Small Business Administration loan pools
|
59,197 | — | 59,197 | — | ||||||||||||
Corporate bonds
|
370 | — | 370 | — | ||||||||||||
States and political subdivisions
|
100,415 | — | 100,415 | — | ||||||||||||
Equity securities
|
2,243 | 558 | 1,685 | — | ||||||||||||
Mortgage servicing rights
|
450 | — | — | 450 |
Fair value measurements at
|
||||||||||||||||
December 31, 2010, using
|
||||||||||||||||
Quoted prices
|
||||||||||||||||
in active
|
||||||||||||||||
markets
|
Other
|
Significant
|
||||||||||||||
Fair value
|
for identical
|
observable
|
unobservable
|
|||||||||||||
December 31,
|
assets
|
inputs
|
inputs
|
|||||||||||||
2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
U.S. government agencies
|
$ | 3,980 | $ | — | $ | 3,980 | $ | — | ||||||||
Collateralized mortgage obligations
|
7,680 | — | 7,680 | — | ||||||||||||
Mortgage-backed securities
|
599,211 | — | 599,211 | — | ||||||||||||
Small Business Administration loan pools
|
60,914 | — | 60,914 | — | ||||||||||||
Corporate bonds
|
21 | — | 21 | — | ||||||||||||
States and political subdivisions
|
95,617 | — | 95,617 | — | ||||||||||||
Equity securities
|
2,123 | 630 | 1,493 | — | ||||||||||||
Mortgage servicing rights
|
637 | — | — | 637 |
Mortgage Servicing Rights
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Balance, April 1
|
$ | 542 | $ | 1,060 | ||||
Additions
|
3 | 1 | ||||||
Amortization
|
(95 | ) | (146 | ) | ||||
Balance, June 30
|
$ | 450 | $ | 915 | ||||
Mortgage Servicing Rights
|
||||||||
2011
|
2010
|
|||||||
(In Thousands)
|
||||||||
Balance, January 1
|
$ | 637 | $ | 1,132 | ||||
Additions
|
11 | 37 | ||||||
Amortization
|
(198 | ) | (254 | ) | ||||
Balance, June 30
|
$ | 450 | $ | 915 | ||||
June 30, 2011
|
|||||||
Fair Value Measurements Using
|
|||||||
Quoted prices
|
|||||||
in active
|
|||||||
markets
|
Other
|
Significant
|
|||||
Fair value
|
for identical
|
observable
|
unobservable
|
||||
June 30,
|
assets
|
inputs
|
inputs
|
||||
2011
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||
(In Thousands)
|
|||||||
Impaired loans
|
$ 45,939
|
$ —
|
$ —
|
$ 45,939
|
|||
Foreclosed assets held for sale
|
491
|
—
|
—
|
491
|
December 31, 2010
|
|||||||
Fair Value Measurements Using
|
|||||||
Quoted prices
|
|||||||
in active
|
|||||||
markets
|
Other
|
Significant
|
|||||
Fair value
|
for identical
|
observable
|
unobservable
|
||||
December 31,
|
assets
|
inputs
|
inputs
|
||||
2010
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||
(In Thousands)
|
|||||||
Impaired loans
|
$ 80,407
|
$ —
|
$ —
|
$ 80,407
|
|||
Foreclosed assets held for sale
|
10,360
|
—
|
—
|
10,360
|
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 355,425 | $ | 355,425 | $ | 429,971 | $ | 429,971 | ||||||||
Available-for-sale securities
|
831,059 | 831,059 | 769,546 | 769,546 | ||||||||||||
Held-to-maturity securities
|
1,865 | 2,137 | 1,125 | 1,300 | ||||||||||||
Mortgage loans held for sale
|
8,798 | 8,798 | 22,499 | 22,499 | ||||||||||||
Loans, net of allowance for loan losses
|
1,910,885 | 1,911,316 | 1,876,887 | 1,878,345 | ||||||||||||
Accrued interest receivable
|
11,690 | 11,690 | 12,628 | 12,628 | ||||||||||||
Investment in FHLB stock
|
11,241 | 11,241 | 11,572 | 11,572 | ||||||||||||
Mortgage servicing rights
|
450 | 450 | 637 | 637 |
June 30, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
$ | 2,622,772 | $ | 2,624,143 | $ | 2,595,893 | $ | 2,603,440 | ||||||||
FHLB advances
|
151,889 | 155,532 | 153,525 | 158,052 | ||||||||||||
Short-term borrowings
|
230,353 | 230,353 | 257,958 | 257,958 | ||||||||||||
Structured repurchase agreements
|
53,116 | 60,418 | 53,142 | 61,007 | ||||||||||||
Subordinated debentures
|
30,929 | 30,929 | 30,929 | 30,929 | ||||||||||||
Accrued interest payable
|
2,791 | 2,791 | 3,765 | 3,765 | ||||||||||||
Unrecognized financial instruments
|
||||||||||||||||
(net of contractual value)
|
||||||||||||||||
Commitments to originate loans
|
— | — | — | — | ||||||||||||
Letters of credit
|
35 | 35 | 50 | 50 | ||||||||||||
Lines of credit
|
— | — | — | — |
Beginning Balance, January 1
|
Additions to Non-Performing
|
Removed from Non-Performing
|
Transfers to Potential Problem Loans
|
Transfers to Foreclosed Assets
|
Charge-Offs
|
Payments
|
Ending Balance,
June 30
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
One- to four-family construction
|
$ | 578 | $ | 699 | $ | — | $ | — | $ | — | $ | (57 | ) | $ | (388 | ) | $ | 832 | ||||||||||||||
Subdivision construction
|
1,860 | 6,325 | (26 | ) | — | (2,131 | ) | (1,257 | ) | (105 | ) | 4,666 | ||||||||||||||||||||
Land development
|
5,668 | 97 | (667 | ) | (2,931 | ) | (767 | ) | (51 | ) | 1,349 | |||||||||||||||||||||
Commercial construction
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
One- to four-family residential
|
5,608 | 3,502 | — | — | (2,636 | ) | (563 | ) | (456 | ) | 5,455 | |||||||||||||||||||||
Other residential
|
4,203 | — | — | — | (183 | ) | (883 | ) | (44 | ) | 3,093 | |||||||||||||||||||||
Commercial real estate
|
6,074 | 13,658 | (3,687 | ) | (1,911 | ) | (3,619 | ) | (4,392 | ) | (786 | ) | 5,337 | |||||||||||||||||||
Commercial business
|
3,832 | 747 | (497 | ) | (3 | ) | (42 | ) | (99 | ) | (385 | ) | 3,553 | |||||||||||||||||||
Consumer
|
1,597 | 752 | (201 | ) | (120 | ) | (30 | ) | (226 | ) | (798 | ) | 974 | |||||||||||||||||||
Total
|
$ | 29,420 | $ | 25,780 | $ | (4,411 | ) | $ | (2,701 | ) | $ | (11,572 | ) | $ | (8,244 | ) | $ | (3,013 | ) | $ | 25,259 | |||||||||||
Beginning Balance,
January 1
|
Additions to Potential Problem
|
Removed from Potential Problem
|
Transfers to Non-Performing
|
Transfers to Foreclosed Assets
|
Charge-Offs
|
Payments
|
Ending Balance,
June 30
|
|||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||
One- to four-family construction
|
$ | 714 | $ | 653 | $ | (196 | ) | $ | (261 | ) | $ | — | $ | — | $ | (240 | ) | $ | 670 | |||||||||||||
Subdivision construction
|
6,473 | 630 | (1,131 | ) | (2,266 | ) | — | (861 | ) | (245 | ) | 2,600 | ||||||||||||||||||||
Land development
|
11,476 | 769 | (1,724 | ) | — | (3,832 | ) | (1,327 | ) | (190 | ) | 5,172 | ||||||||||||||||||||
Commercial construction
|
1,851 | — | (1,200 | ) | — | — | (651 | ) | — | — | ||||||||||||||||||||||
One- to four-family residential
|
8,786 | 1,594 | (1,270 | ) | (862 | ) | — | (890 | ) | (1,984 | ) | 5,374 | ||||||||||||||||||||
Other residential
|
5,674 | 189 | (3,850 | ) | — | — | (1,715 | ) | (5 | ) | 293 | |||||||||||||||||||||
Commercial real estate
|
14,729 | 4,348 | (1,160 | ) | (5,068 | ) | (2,669 | ) | — | (267 | ) | 9,913 | ||||||||||||||||||||
Commercial business
|
5,934 | 2,845 | (3,653 | ) | (503 | ) | (1,361 | ) | (1.513 | ) | (814 | ) | 935 | |||||||||||||||||||
Consumer
|
12 | 224 | (62 | ) | (11 | ) | — | — | (25 | ) | 138 | |||||||||||||||||||||
Total
|
$ | 55,649 | $ | 11,252 | $ | (14,246 | ) | $ | (8,971 | ) | $ | (7,862 | ) | $ | (6,957 | ) | $ | (3,770 | ) | $ | 25,095 | |||||||||||
Beginning Balance, January 1
|
Additions
|
Proceeds from Sales
|
Capitalized Costs
|
ORE Expense Write-Downs
|
Ending Balance,
June 30
|
|||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
One- to four-family construction
|
$ | 2,510 | $ | — | $ | (1,275 | ) | $ | 148 | $ | (80 | ) | $ | 1,303 | ||||||||||
Subdivision construction
|
19,816 | 1,365 | (1,185 | ) | — | (27 | ) | 19,969 | ||||||||||||||||
Land development
|
10,620 | 7,528 | — | — | — | 18,148 | ||||||||||||||||||
Commercial construction
|
3,997 | — | (1,250 | ) | — | — | 2,747 | |||||||||||||||||
One- to four-family residential
|
2,896 | 2,813 | (2,261 | ) | — | (209 | ) | 3,239 | ||||||||||||||||
Other residential
|
4,178 | 983 | (193 | ) | — | 10 | 4,978 | |||||||||||||||||
Commercial real estate
|
4,565 | 6,288 | (4,626 | ) | — | (134 | ) | 6,093 | ||||||||||||||||
Commercial business
|
— | 42 | (10 | ) | 32 | |||||||||||||||||||
Consumer
|
318 | 1,872 | (470 | ) | — | — | 1,720 | |||||||||||||||||
Total
|
$ | 48,900 | $ | 20,891 | $ | (11,270 | ) | $ | 148 | $ | (440 | ) | $ | 58,229 | ||||||||||
June 30,
2011(2)
|
Three Months Ended
June 30, 2011
|
Three Months Ended
June 30, 2010
|
|||||||||||||||||||||
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||||
Loans receivable:
|
|||||||||||||||||||||||
One- to four-family residential
|
5.42
|
%
|
$
|
305,887
|
$
|
5,827
|
7.64
|
%
|
$
|
341,800
|
$
|
5,204
|
6.11
|
%
|
|||||||||
Other residential
|
5.47
|
252,564
|
3,771
|
5.99
|
216,004
|
3,180
|
5.90
|
||||||||||||||||
Commercial real estate
|
5.90
|
665,535
|
13,379
|
8.06
|
691,917
|
11,117
|
6.44
|
||||||||||||||||
Construction
|
5.53
|
262,272
|
9,006
|
13.77
|
331,040
|
5,454
|
7.06
|
||||||||||||||||
Commercial business
|
5.55
|
177,662
|
5,054
|
11.41
|
171,415
|
3,016
|
6.61
|
||||||||||||||||
Other loans
|
7.24
|
209,087
|
4,171
|
8.00
|
223,119
|
3,647
|
6.56
|
||||||||||||||||
Industrial revenue bonds (1)
|
5.99
|
70,485
|
1,035
|
5.89
|
62,844
|
935
|
5.97
|
||||||||||||||||
Total loans receivable
|
5.94
|
1,943,492
|
42,243
|
8.72
|
2,038,139
|
32,553
|
6.41
|
||||||||||||||||
Investment securities (1)
|
3.47
|
846,169
|
6,731
|
3.19
|
771,917
|
6,920
|
3.60
|
||||||||||||||||
Other interest-earning assets
|
0.19
|
315,231
|
170
|
0.22
|
234,294
|
139
|
0.24
|
||||||||||||||||
Total interest-earning assets
|
4.76
|
3,104,892
|
49,144
|
6.35
|
3,044,350
|
39,612
|
5.22
|
||||||||||||||||
Non-interest-earning assets:
|
|||||||||||||||||||||||
Cash and cash equivalents
|
74,936
|
280,965
|
|||||||||||||||||||||
Other non-earning assets
|
262,206
|
280,101
|
|||||||||||||||||||||
Total assets
|
$
|
3,442,034
|
$
|
3,605,416
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||
Interest-bearing demand and savings
|
0.71
|
$
|
1,113,021
|
2,018
|
0.73
|
$
|
898,182
|
2,143
|
0.96
|
||||||||||||||
Time deposits
|
1.47
|
1,251,663
|
4,643
|
1.49
|
1,561,764
|
7,997
|
2.05
|
||||||||||||||||
Total deposits
|
1.11
|
2,364,684
|
6,661
|
1.13
|
2,459,946
|
10,140
|
1.65
|
||||||||||||||||
Short-term borrowings and structured
repurchase agreements
|
1.05
|
292,806
|
747
|
1.02
|
353,472
|
799
|
0.91
|
||||||||||||||||
Subordinated debentures issued to capital trusts
|
1.84
|
30,929
|
140
|
1.82
|
30,929
|
142
|
1.84
|
||||||||||||||||
FHLB advances
|
3.47
|
152,107
|
1,304
|
3.44
|
167,514
|
1,407
|
3.37
|
||||||||||||||||
Total interest-bearing liabilities
|
1.24
|
2,840,526
|
8,852
|
1.25
|
3,011,861
|
12,488
|
1.66
|
||||||||||||||||
Non-interest-bearing liabilities:
|
|||||||||||||||||||||||
Demand deposits
|
265,348
|
257,876
|
|||||||||||||||||||||
Other liabilities
|
14,314
|
23,322
|
|||||||||||||||||||||
Total liabilities
|
3,120,188
|
3,293,059
|
|||||||||||||||||||||
Stockholders’ equity
|
321,846
|
312,357
|
|||||||||||||||||||||
Total liabilities and stockholders’
equity
|
$
|
3,442,034
|
$
|
3,605,416
|
|||||||||||||||||||
Net interest income:
|
|||||||||||||||||||||||
Interest rate spread
|
3.52
|
%
|
$
|
40,292
|
5.10
|
%
|
$
|
27,124
|
3.56
|
%
|
|||||||||||||
Net interest margin*
|
5.21
|
%
|
3.57
|
%
|
|||||||||||||||||||
Average interest-earning assets to
average interest-bearing liabilities
|
109.3
|
%
|
101.1
|
%
|
(1) |
Of the total average balances of investment securities, average tax-exempt investment securities were $97.6 million and $62.7 million for the three months ended June 30, 2011 and 2010, respectively. In addition, average tax-exempt loans and industrial revenue bonds were $45.0 million and $44.9 million for the three months ended June 30, 2011 and 2010, respectively. Interest income on tax-exempt assets included in this table was $1.7 million and $1.4 million for the three months ended June 30, 2011 and 2010, respectively. Interest income net of disallowed interest expense related to tax-exempt assets was $1.5 million and $1.2 million for the three months ended June 30, 2011 and 2010, respectively.
|
(2) |
The yield/rate on loans at June 30, 2011 does not include the impact of the accretable yield (income) on loans acquired in the 2009 FDIC-assisted transactions. See “Net Interest Income” for a discussion of the effect on results of operations for the three months ended June 30, 2011.
|
June 30,
2011(2)
|
Six Months Ended
June 30, 2011
|
Six Months Ended
June 30, 2010
|
|||||||||||||||||||||
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
Average
Balance
|
Interest
|
Yield/
Rate
|
|||||||||||||||||
(Dollars in thousands)
|
|||||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||||
Loans receivable:
|
|||||||||||||||||||||||
One- to four-family residential
|
5.42
|
%
|
$
|
309,789
|
$
|
11,876
|
7.73
|
%
|
$
|
344,405
|
$
|
10,352
|
6.06
|
%
|
|||||||||
Other residential
|
5.47
|
244,774
|
7,343
|
6.05
|
216,372
|
6,465
|
6.03
|
||||||||||||||||
Commercial real estate
|
5.90
|
655,193
|
26,434
|
8.14
|
703,234
|
22,325
|
6.40
|
||||||||||||||||
Construction
|
5.53
|
267,721
|
18,089
|
13.63
|
342,350
|
10,321
|
6.97
|
||||||||||||||||
Commercial business
|
5.55
|
176,543
|
10,298
|
11.76
|
170,288
|
5,885
|
6.08
|
||||||||||||||||
Other loans
|
7.24
|
209,280
|
8,211
|
7.91
|
231,331
|
7,400
|
6.45
|
||||||||||||||||
Industrial revenue bonds (1)
|
5.99
|
71,420
|
2,076
|
5.86
|
66,687
|
1,999
|
6.04
|
||||||||||||||||
Total loans receivable
|
5.94
|
1,934,720
|
84,327
|
8.79
|
2,074,667
|
64,747
|
6.29
|
||||||||||||||||
Investment securities (1)
|
3.47
|
838,691
|
13,522
|
3.25
|
774,268
|
14,356
|
3.74
|
||||||||||||||||
Other interest-earning assets
|
0.19
|
358,057
|
336
|
0.19
|
226,098
|
263
|
0.23
|
||||||||||||||||
Total interest-earning assets
|
4.76
|
3,131,468
|
98,185
|
6.32
|
3,075,033
|
79,366
|
5.20
|
||||||||||||||||
Non-interest-earning assets:
|
|||||||||||||||||||||||
Cash and cash equivalents
|
74,146
|
291,754
|
|||||||||||||||||||||
Other non-earning assets
|
259,509
|
275,301
|
|||||||||||||||||||||
Total assets
|
$
|
3,465,123
|
$
|
3,642,088
|
|||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||
Interest-bearing demand and savings
|
0.71
|
$
|
1,101,713
|
4,125
|
0.76
|
$
|
873,741
|
4,201
|
0.97
|
||||||||||||||
Time deposits
|
1.47
|
1,283,874
|
10,022
|
1.57
|
1,618,236
|
16,596
|
2.07
|
||||||||||||||||
Total deposits
|
1.11
|
2,385,587
|
14,147
|
1.20
|
2,491,977
|
20,797
|
1.68
|
||||||||||||||||
Short-term borrowings and structured repurchase agreements
|
1.05
|
307,374
|
1,503
|
0.99
|
365,397
|
1,792
|
0.99
|
||||||||||||||||
Subordinated debentures issued to capital trusts
|
1.84
|
30,929
|
281
|
1.83
|
30,929
|
278
|
1.81
|
||||||||||||||||
FHLB advances
|
3.47
|
152,556
|
2,601
|
3.44
|
168,013
|
2,804
|
3.37
|
||||||||||||||||
Total interest-bearing liabilities
|
1.24
|
2,876,446
|
18,532
|
1.30
|
3,056,316
|
25,671
|
1.69
|
||||||||||||||||
Non-interest-bearing liabilities:
|
|||||||||||||||||||||||
Demand deposits
|
258,644
|
253,489
|
|||||||||||||||||||||
Other liabilities
|
15,084
|
23,162
|
|||||||||||||||||||||
Total liabilities
|
3,150,174
|
3,332,967
|
|||||||||||||||||||||
Stockholders’ equity
|
314,949
|
309,121
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$
|
3,465,123
|
$
|
3,642,088
|
|||||||||||||||||||
Net interest income:
|
|||||||||||||||||||||||
Interest rate spread
|
3.52
|
%
|
$
|
79,653
|
5.02
|
%
|
$
|
53,695
|
3.51
|
%
|
|||||||||||||
Net interest margin*
|
5.13
|
%
|
3.52
|
%
|
|||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
108.9
|
%
|
100.6
|
%
|
(1) |
Of the total average balances of investment securities, average tax-exempt investment securities were $96.1 million and $63.0 million for the six months ended June 30, 2011 and 2010, respectively. In addition, average tax-exempt loans and industrial revenue bonds were $44.3 million and $45.8 million for the six months ended June 30, 2011 and 2010, respectively. Interest income on tax-exempt assets included in this table was $3.5 million and $2.7 million for the six months ended June 30, 2011 and 2010, respectively. Interest income net of disallowed interest expense related to tax-exempt assets was $3.2 million and $2.4 million for the six months ended June 30, 2011 and 2010, respectively.
|
(2) |
The yield/rate on loans at June 30, 2011 does not include the impact of the accretable yield (income) on loans acquired in the 2009 FDIC-assisted transactions. See “Net Interest Income” for a discussion of the effect on results of operations for the six months ended June 30, 2011.
|
Three Months Ended June 30,
|
||||||||||||
2011 vs. 2010
|
||||||||||||
Increase
(Decrease)
Due to
|
||||||||||||
Total
Increase
(Decrease)
|
||||||||||||
Rate
|
Volume
|
|||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$
|
12,176
|
|
$
|
(2,486
|
)
|
$
|
9,690
|
||||
Investment securities
|
(1,065
|
)
|
876
|
|
(189
|
)
|
||||||
Other interest-earning assets
|
(20
|
)
|
51
|
31
|
||||||||
Total interest-earning assets
|
11,091
|
(1,559
|
)
|
9,532
|
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
Demand deposits
|
(751
|
)
|
626
|
(125
|
)
|
|||||||
Time deposits
|
(1,949
|
)
|
(1,405
|
)
|
(3,354
|
)
|
||||||
Total deposits
|
(2,700
|
)
|
(779
|
)
|
(3,479
|
)
|
||||||
Short-term borrowings and structured repo
|
156
|
(208
|
)
|
(52
|
)
|
|||||||
Subordinated debentures issued to capital trust
|
(2
|
)
|
--
|
(2
|
)
|
|||||||
FHLBank advances
|
45
|
(148
|
)
|
(103
|
)
|
|||||||
Total interest-bearing liabilities
|
(2,501
|
)
|
(1,135
|
)
|
(3,636
|
)
|
||||||
Net interest income
|
$
|
13,592
|
$
|
(424
|
)
|
$
|
13,168
|
Six Months Ended June 30,
|
||||||||||||
2011 vs. 2010
|
||||||||||||
Increase
(Decrease)
Due to
|
||||||||||||
Total
Increase
(Decrease)
|
||||||||||||
Rate
|
Volume
|
|||||||||||
(Dollars in thousands)
|
||||||||||||
Interest-earning assets:
|
||||||||||||
Loans receivable
|
$
|
23,593
|
|
$
|
(4,013
|
)
|
$
|
19,580
|
||||
Investment securities
|
(1,992
|
)
|
1,158
|
|
(834
|
)
|
||||||
Other interest-earning assets
|
(59
|
)
|
132
|
73
|
||||||||
Total interest-earning assets
|
21,542
|
(2,723
|
)
|
18,819
|
|
|||||||
Interest-bearing liabilities:
|
||||||||||||
Demand deposits
|
(1,058
|
)
|
982
|
(76
|
)
|
|||||||
Time deposits
|
(3,525
|
)
|
(3,049
|
)
|
(6,574
|
)
|
||||||
Total deposits
|
(4,583
|
)
|
(2,067
|
)
|
(6,650
|
)
|
||||||
Short-term borrowings and structured repo
|
(5
|
)
|
(284
|
)
|
(289
|
)
|
||||||
Subordinated debentures issued to capital trust
|
3
|
--
|
3
|
|||||||||
FHLBank advances
|
62
|
(265
|
)
|
(203
|
)
|
|||||||
Total interest-bearing liabilities
|
(4,523
|
)
|
(2,616
|
)
|
(7,139
|
)
|
||||||
Net interest income
|
$
|
26,065
|
$
|
(107
|
)
|
$
|
25,958
|
Federal Home Loan Bank line
|
$298.3 million
|
Federal Reserve Bank line
|
$284.8 million
|
Interest-Bearing and Non-Interest-Bearing Deposits
|
$355.4 million
|
Unpledged Securities
|
$100.9 million
|
Total Number
of Shares
Purchased
|
Average
Price
Per Share
|
Total Number
of Shares
Purchased
As Part of
Publicly
Announced
Plan
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under the
Plan(1)
|
|||||||||||||
April 1, 2011 –
April 30, 2011
|
---
|
$
|
----
|
---
|
396,562
|
|||||||||||
May 1, 2011 –
May 31, 2011
|
---
|
$
|
----
|
---
|
396,562
|
|||||||||||
June 1, 2011 –
June 30, 2011
|
---
|
$
|
----
|
---
|
396,562
|
|||||||||||
---
|
$
|
----
|
---
|
_______________________
|
|||
(1)
|
Amount represents the number of shares available to be repurchased under the plan as of the last calendar day
of the month shown.
|
a)
|
Exhibits
|
|
See Exhibit Index.
|
Great Southern Bancorp, Inc.
|
|
Registrant
|
|
Date: August 5, 2011
|
/s/ Joseph W. Turner
|
Joseph W. Turner
President and Chief Executive Officer
(Principal Executive Officer)
|
|
Date: August 5, 2011
|
/s/ Rex A. Copeland
|
Rex A. Copeland
Treasurer
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
Description
|
|
(2)
|
Plan of acquisition, reorganization, arrangement, liquidation, or succession
|
|
(i)
|
The Purchase and Assumption Agreement, dated as of March 20, 2009, among Federal Deposit Insurance Corporation, Receiver of TeamBank, N.A., Paola, Kansas, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on March 26, 2010 is incorporated herein by reference as Exhibit 2.1.
|
|
(ii)
|
The Purchase and Assumption Agreement, dated as of September 4, 2009, among Federal Deposit Insurance Corporation, Receiver of Vantus Bank, Sioux City, Iowa, Federal Deposit Insurance Corporation and Great Southern Bank, previously filed with the Commission (File no. 000-18082) as Exhibit 2.1 to the Registrant's Current Report on Form 8-K filed on September 11, 2010 is incorporated herein by reference as Exhibit 2.1.
|
|
(3)
|
Articles of incorporation and Bylaws
|
|
(i)
|
The Registrant's Charter previously filed with the Commission as Appendix D to the Registrant's Definitive Proxy Statement on Schedule 14A filed on June 30, 2004 (File No. 000-18082), is incorporated herein by reference as Exhibit 3.1.
|
|
(iA)
|
The Articles Supplementary to the Registrant's Charter setting forth the terms of the Registrant's Fixed Rated Cumulative Perpetual Preferred Stock, Series A, previously filed with the Commission (File no. 000-18082) as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on December 9, 2008, are incorporated herein by reference as Exhibit 3(i).
|
|
(ii)
|
The Registrant's Bylaws, previously filed with the Commission (File no. 000-18082) as Exhibit 3(ii) to the Registrant's Current Report on Form 8-K filed on October 23, 2007, is incorporated herein by reference as Exhibit 3.2
|
|
(4)
|
Instruments defining the rights of security holders, including indentures
|
|
The Company hereby agrees to furnish the SEC upon request, copies of the instruments defining the rights of the holders of each issue of the Registrant's long-term debt.
The warrant to purchase shares of the Registrant's common stock dated December 5, 2008, previously filed with the Commission (File no. 000-18082) as Exhibit 4.2 to the Registrant's Current Report on Form 8-K filed on December 9, 2008, is incorporated herein by reference as Exhibit 4(i).
|
||
(9)
|
Voting trust agreement
|
|
Inapplicable.
|
||
(10)
|
Material contracts
|
|
The Registrant's 1989 Stock Option and Incentive Plan previously filed with the Commission (File no. 000-18082) as Exhibit 10.2 to the Registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1990, is incorporated herein by reference as Exhibit 10.1.
|
The Registrant's 1997 Stock Option and Incentive Plan previously filed with the Commission (File no. 000-18082) as Annex A to the Registrant's Definitive Proxy Statement on Schedule 14A filed on September 18, 1997 is incorporated herein by reference as Exhibit 10.2.
The Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission (File No. 000-18082) as Annex A to the Registrant's Definitive Proxy Statement on Schedule 14A filed on April 14, 2003, is incorporated herein by reference as Exhibit 10.3.
The employment agreement dated September 18, 2002 between the Registrant and William V. Turner previously filed with the Commission (File no. 000-18082) as Exhibit 10.2 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, is incorporated herein by reference as Exhibit 10.4.
The employment agreement dated September 18, 2002 between the Registrant and Joseph W. Turner previously filed with the Commission (File no. 000-18082) as Exhibit 10.4 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, is incorporated herein by reference as Exhibit 10.5.
The form of incentive stock option agreement under the Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File no. 000-18082) filed on February 24, 2005 is incorporated herein by reference as Exhibit 10.6.
The form of non-qualified stock option agreement under the Registrant's 2003 Stock Option and Incentive Plan previously filed with the Commission as Exhibit 10.2 to the Registrant's Current Report on Form 8-K (File no. 000-18082) filed on February 24, 2005 is incorporated herein by reference as Exhibit 10.7.
A description of the current salary and bonus arrangements for 2011 for the Registrant's named executive officers previously filed with the Commission as Exhibit 10.8 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 is incorporated herein by reference as Exhibit 10.8.
A description of the current fee arrangements for the Registrant's directors previously filed with the Commission as Exhibit 10.9 to the Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 is incorporated herein by reference as Exhibit 10.9.
The Letter Agreement, including Schedule A, and Securities Purchase Agreement, dated December 5, 2008, between the Registrant and the United States Department of the Treasury, previously filed with the Commission (File no. 000-18082) as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on December 8, 2008, is incorporated herein by reference as Exhibit 10.10.
The form of Compensation Modification Agreement and Waiver, executed by each of William V. Turner, Joseph W. Turner, Rex A. Copeland, Steven G. Mitchem, Douglas W. Marrs and Linton J. Thomason, previously filed with the Commission (File no. 000-18082) as Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on December 8, 2008, is incorporated herein by reference as Exhibit 10.11.
|
||
(11)
|
Statement re computation of per share earnings
|
|
Included in Note 6 to the Consolidated Financial Statements.
|
||
(15)
|
Letter re unaudited interim financial information
|
|
Inapplicable.
|
(18)
|
Letter re change in accounting principles
|
|
Inapplicable.
|
||
(19)
|
Report furnished to securityholders.
|
|
Inapplicable.
|
||
(22)
|
Published report regarding matters submitted to vote of security holders
|
|
Inapplicable.
|
||
(23)
|
Consents of experts and counsel
|
|
Inapplicable.
|
||
(24)
|
Power of attorney
|
|
None.
|
||
(31.1)
|
Rule 13a-14(a) Certification of Chief Executive Officer
|
|
Attached as Exhibit 31.1
|
||
(31.2)
|
Rule 13a-14(a) Certification of Treasurer
|
|
Attached as Exhibit 31.2
|
||
(32)
|
Certification pursuant to Section 906 of Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350)
|
|
Attached as Exhibit 32.
|
||
(99)
|
Additional Exhibits
|
|
None.
|
||
(101)
|
||
Attached as Exhibit 101 are the following financial statements from the Great Southern Bancorp, Inc. Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, formatted in Extensive Business Reporting Language (XBRL): (i) consolidated statements of financial condition, (ii) consolidated statements of income, (iii) consolidated statements of cash flows and (iv) the notes to consolidated financial statements.
|
I, Joseph W. Turner, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Great Southern Bancorp, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 5, 2011
/s/ Joseph W. Turner
Joseph W. Turner
President and Chief Executive Officer
|
I, Rex A. Copeland, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Great Southern Bancorp, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d) disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|
5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
|
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: August 5, 2011
/s/ Rex A. Copeland
Rex A. Copeland
Treasurer
|
Dated: August 5, 2011
|
/s/ Joseph W. Turner
Joseph W. Turner
President and Chief Executive Officer
|
Dated: August 5, 2011
|
/s/ Rex A. Copeland
Rex A. Copeland
Treasurer
|
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES - CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $)
In Thousands, except Per Share data |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
INTEREST INCOME | Â | Â | Â | Â |
Loans | $ 42,243 | $ 32,553 | $ 84,327 | $ 64,747 |
Investment securities and other | 6,901 | 7,059 | 13,858 | 14,619 |
TOTAL INTEREST INCOME | 49,144 | 39,612 | 98,185 | 79,366 |
INTEREST EXPENSE | Â | Â | Â | Â |
Deposits | 6,661 | 10,140 | 14,147 | 20,797 |
Federal Home Loan Bank advances | 1,304 | 1,407 | 2,601 | 2,804 |
Short-term borrowings and repurchase agreements | 747 | 799 | 1,503 | 1,792 |
Subordinated debentures issued to capital trusts | 140 | 142 | 281 | 278 |
TOTAL INTEREST EXPENSE | 8,852 | 12,488 | 18,532 | 25,671 |
NET INTEREST INCOME | 40,292 | 27,124 | 79,653 | 53,695 |
PROVISION FOR LOAN LOSSES | 8,431 | 12,000 | 16,631 | 17,500 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 31,861 | 15,124 | 63,022 | 36,195 |
NON-INTEREST INCOME | Â | Â | Â | Â |
Commissions | 2,486 | 2,344 | 4,923 | 4,410 |
Service charges and ATM fees | 4,473 | 5,061 | 8,535 | 9,644 |
Net realized gains on sales of loans | 702 | 755 | 1,609 | 1,548 |
Net realized gains (losses) on sales and impairments of available-for-sale securities | (400) | 3,465 | (400) | 3,465 |
Late charges and fees on loans | 162 | 237 | 284 | 441 |
Accretion (amortization) of income related to business acquisitions | (10,296) | 1,665 | (20,049) | 2,565 |
Other income | 714 | 612 | 1,168 | 1,064 |
TOTAL NON-INTEREST INCOME | (2,159) | 14,139 | (3,930) | 23,137 |
NON-INTEREST EXPENSE | Â | Â | Â | Â |
Salaries and employee benefits | 11,709 | 11,167 | 23,281 | 22,203 |
Net occupancy and equipment expense | 3,639 | 3,382 | 7,329 | 6,871 |
Postage | 811 | 835 | 1,566 | 1,667 |
Insurance | 1,498 | 1,120 | 2,945 | 2,252 |
Advertising | 408 | 580 | 683 | 799 |
Office supplies and printing | 354 | 360 | 632 | 823 |
Telephone | 513 | 566 | 1,139 | 1,108 |
Legal, audit and other professional fees | 723 | 626 | 1,485 | 1,291 |
Expense on foreclosed assets | 627 | 416 | 1,056 | 2,583 |
Other operating expenses | 1,855 | 1,756 | 3,631 | 3,354 |
TOTAL NON-INTEREST EXPENSE | 22,137 | 20,808 | 43,747 | 42,951 |
INCOME BEFORE INCOME TAXES | 7,565 | 8,455 | 15,345 | 16,381 |
PROVISION FOR INCOME TAXES | 1,675 | 2,631 | 3,562 | 5,018 |
NET INCOME | 5,890 | 5,824 | 11,783 | 11,363 |
PREFERRED STOCK DIVIDENDS AND DISCOUNT ACCRETION | 782 | 848 | 1,628 | 1,687 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 5,108 | $ 4,976 | $ 10,155 | $ 9,676 |
BASIC EARNINGS PER COMMON SHARE | $ 0.38 | $ 0.37 | $ 0.75 | $ 0.72 |
DILUTED EARNINGS PER COMMON SHARE | $ 0.37 | $ 0.35 | $ 0.73 | $ 0.69 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 0.18 | $ 0.18 | $ 0.36 | $ 0.36 |
Document and Entity Information (USD $)
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3 Months Ended |
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Jun. 30, 2011
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Document and Entity Information | Â |
Entity Registrant Name | Great Southern Bancorp Inc |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2011 |
Amendment Flag | false |
Entity Central Index Key | 0000854560 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 13,461,614 |
Entity Public Float | $ 3,418,224,000 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2011 |
Document Fiscal Period Focus | Q2 |
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Loans and Allowance for Loan Losses
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Loans and Allowance for Loan Losses [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 8: LOANS AND ALLOWANCE FOR LOAN LOSSES
Classes of loans by aging were as follows:
Nonaccruing loans (excluding FDIC-supported loans, net of discount) are summarized as follows:
The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2011. Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2011:
The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2010:
Impaired loans are summarized as follows:
Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. At June 30, 2011, the Company had $7.4 million of construction loans, $7.4 million of residential mortgage loans, $10.2 million of commercial real estate loans, $51,000 of commercial business loans and $213,000 of consumer loans that were modified in troubled debt restructurings and impaired. Of the total troubled debt restructurings, $22.6 million were accruing interest at June 30, 2011. At December 31, 2010, the Company had $6.5 million of construction loans, $5.5 million of residential mortgage loans, $8.2 million of commercial real estate loans, $57,000 of other commercial loans and $150,000 of consumer loans that were modified in troubled debt restructurings and impaired. Of the total troubled debt restructurings, $16.5 million were accruing interest at December 31, 2010.
The company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as Satisfactory, Watch, Special Mention and Substandard. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected. Special mention loans possess potential weaknesses that deserve managements close attention but do not expose the Bank to a degree of risk that warrants substandard classification. 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. Loans not meeting any of the criteria previously described are considered satisfactory. The FDIC-covered loans are evaluated using this internal grading system. However, since the loans are accounted for in pools and are currently substantially covered through loss sharing agreements with the FDIC, all of the loan pools were considered satisfactory at June 30, 2011 and December 31, 2010, respectively. See Note 9 for further discussion of the acquired loan pools and loss sharing agreements. The loan grading system is presented by loan class below:
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Fair Value Measures and Disclosures | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | NOTE 13: FAIR VALUE MEASUREMENT
ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also specifies a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: · Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
· Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means.
· Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity's own assumptions that are supported by little or no market activity or observable inputs.
Financial instruments are broken down as follows by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period.
The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying balance sheets at June 30, 2011, as well as the general classification of such assets pursuant to the valuation hierarchy.
Securities Available for Sale. Investment securities available for sale are recorded at fair value on a recurring basis. The fair values used by the Company are obtained from an independent pricing service, which represent either quoted market prices for the identical asset or fair values determined by pricing models, or other model-based valuation techniques, that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems. Recurring Level 1 securities include exchange traded equity securities. Recurring Level 2 securities available for sale include U.S. government agency securities, mortgage-backed securities, collateralized mortgage obligations, Small Business Administration (SBA) loan pools, state and municipal bonds, corporate bonds and equity securities. Inputs used for valuing Level 2 securities include observable data that may include dealer quotes, benchmark yields, market spreads, live trading levels and market consensus prepayment speeds, among other things. Additional inputs include indicative values derived from the independent pricing services proprietary computerized models. No securities available for sale were included in the category of Recurring Level 3 securities at or for the three and six months ended June 30, 2011.
Mortgage Servicing Rights. Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.
The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. From December 31, 2010 to June 30, 2011, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy.
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs.
The following is a description of valuation methodologies used for assets measured at fair value on a nonrecurring basis at June 30, 2011, as well as the general classification of such assets pursuant to the valuation hierarchy.
Impaired Loans. A loan is considered to be impaired when it is probable that all of the principal and interest due may not be collected according to its contractual terms. Generally, when a loan is considered impaired, the amount of reserve required under FASB ASC 310, Receivables, is measured based on the fair value of the underlying collateral. The Company makes such measurements on all material loans deemed impaired using the fair value of the collateral for collateral dependent loans. The fair value of collateral used by the Company is determined by obtaining an observable market price or by obtaining an appraised value from an independent, licensed or certified appraiser, using observable market data. This data includes information such as selling price of similar properties and capitalization rates of similar properties sold within the market, expected future cash flows or earnings of the subject property based on current market expectations, and other relevant factors. In addition, management may apply selling and other discounts to the underlying collateral value to determine the fair value. If an appraised value is not available, the fair value of the impaired loan is determined by an adjusted appraised value including unobservable cash flows.
The Company records impaired loans as Nonrecurring Level 3. If a loans fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for loan losses specific to the loan. Loans for which such charge-offs or reserves were recorded during the six months ended June 30, 2011 are shown in the table below (net of reserves).
Foreclosed Assets Held for Sale. Foreclosed assets held for sale are initially recorded at fair value less estimated cost to sell at the date of foreclosure. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. The foreclosed assets represented in the table below were re-measured during the six months ended June 30, 2011, subsequent to their initial transfer to foreclosed assets.
The following tables present the fair value measurements of assets measured at fair value during the periods presented on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2011 and December 31, 2010:
The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheet at amounts other than fair value:
Cash and Cash Equivalents and Federal Home Loan Bank Stock. The carrying amount approximates fair value.
Loans and Interest Receivable. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics are aggregated for purposes of the calculations. The carrying amount of accrued interest receivable approximates its fair value.
Deposits and Accrued Interest Payable. The fair value of demand deposits and savings accounts is the amount payable on demand at the reporting date, i.e., their carrying amounts. The fair value of fixed maturity certificates of deposit is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.
Federal Home Loan Bank Advances. Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate fair value of existing advances.
Short-Term Borrowings. The carrying amount approximates fair value.
Subordinated Debentures Issued to Capital Trusts. The subordinated debentures have floating rates that reset quarterly. The Company can redeem these instruments at par on a quarterly basis beginning in February (with respect to $25.8 million of the subordinated debentures) and October (with respect to $5.2 million of the subordinated debentures) 2012, respectively. The carrying amount of these debentures approximates their fair value.
Structured Repurchase Agreements. Structured repurchase agreements are collateralized borrowings from counterparties. In addition to the principal amount owed, the counterparty also determines an amount that would be owed by either party in the event the agreement is terminated prior to maturity by the Company. The fair values of the structured repurchase agreements are estimated based on the amount the Company would be required to pay to terminate the agreement at the balance sheet date.
Commitments to Originate Loans, Letters of Credit and Lines of Credit. The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date.
The following table presents estimated fair values of the Companys financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which method involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate.
The following disclosure relates to financial assets for which it is not practicable for the Company to estimate the fair value at June 30, 2011.
FDIC Indemnification Asset: As part of the 2009 Purchase and Assumption Agreements, the Bank and the FDIC entered into loss sharing agreements. These agreements cover realized losses on loans and foreclosed real estate.
Under the first agreement (TeamBank), the FDIC will reimburse the Bank for 80% of the first $115 million in realized losses. The FDIC will reimburse the Bank 95% on realized losses that exceed $115 million. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. This loss sharing asset is measured separately from the loan portfolio because it is not contractually embedded in the loans and is not transferable with the loans or foreclosed assets should the Bank choose to dispose of them. Fair value at the acquisition date (March 20, 2009) was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and the loss sharing percentages. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This loss sharing asset is also separately measured from the related foreclosed real estate. At June 30, 2011, the carrying value of the FDIC indemnification asset was $48.1 million, with $11.9 million of this amount scheduled to be amortized against non-interest income over future periods as a result of the changes in expected losses recognized in the quarter ended June 30, 2011 and in previous periods. Although this asset is a contractual receivable from the FDIC, there is no effective interest rate. The Bank will collect this asset over the next several years. The amount ultimately collected will depend on the timing and amount of collections and charge-offs on the acquired assets covered by the loss sharing agreement. While this asset was recorded at its estimated fair value at March 20, 2009, it is not practicable to complete a fair value analysis of the entire portfolio of loans and foreclosed assets covered by the loss sharing agreement on a quarterly or annual basis in order to estimate the fair value of the FDIC indemnification asset.
Under the second agreement (Vantus Bank), the FDIC will reimburse the Bank for 80% of the first $102 million in realized losses. The FDIC will reimburse the Bank 95% on realized losses that exceed $102 million. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. This loss sharing asset is measured separately from the loan portfolio because it is not contractually embedded in the loans and is not transferable with the loans or foreclosed assets should the Bank choose to dispose of them. Fair value at the acquisition date (September 4, 2009) was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and the loss sharing percentages. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This loss sharing asset is also separately measured from the related foreclosed real estate. At June 30, 2011, the carrying value of the FDIC indemnification asset was $28.3 million, with $10.2 million of this amount scheduled to be amortized against non-interest income over future periods as a result of the changes in expected losses recognized in the quarter ended June 30, 2011 and in previous periods. Although this asset is a contractual receivable from the FDIC, there is no effective interest rate. The Bank will collect this asset over the next several years. The amount ultimately collected will depend on the timing and amount of collections and charge-offs on the acquired assets covered by the loss sharing agreement. While this asset was recorded at its estimated fair value at September 4, 2009, it is not practicable to complete a fair value analysis of the entire portfolio of loans and foreclosed assets covered by the loss sharing agreement on a quarterly or annual basis in order to estimate the fair value of the FDIC indemnification asset.
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Recent Accounting Pronouncements
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Jun. 30, 2011
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Recent Accounting Pronouncements [Abstract] | Â |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | NOTE 4: RECENT ACCOUNTING PRONOUNCEMENTS
In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05 to amend FASB ASC Topic 220, Comprehensive Income: Presentation of Comprehensive Income. The purpose of the Update is to improve the comparability, consistency and transparency of financial reporting related to other comprehensive income. It eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders equity. Instead, the components of other comprehensive income must either be presented with net income in a single continuous statement of comprehensive income or as a separate but consecutive statement following the statement of operations. Regardless of which method is used, adjustments for items that are reclassified from other comprehensive income to net income must be presented on the face of the financial statements. The Update is effective on a retrospective basis for interim and annual reporting periods beginning after December 15, 2011, and is not expected to have a material impact on the Companys financial position or results of operations.
In May 2011, the FASB issued ASU No. 2011-04 to amend FASB ASC Topic 820, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in U.S. GAAP and IFRSs. The Update amends the GAAP requirements for measuring fair value and for disclosures about fair value measurements to improve consistency between GAAP and IFRSs by changing some of the wording used to describe the requirements, clarifying the intended application of certain requirements and changing certain principles. The Update is effective on a prospective basis for interim and annual reporting periods beginning after December 15, 2011, and is not expected to have a material impact on the Companys financial position or results of operations.
In April 2011, the FASB issued ASU No. 2011-03 to amend FASB ASC Topic 860, Transfers and Servicing. ASC 860 outlines when the transfer of financial assets under a repurchase agreement may or may not be accounted for as a sale. Whether the transferring entity maintains effective control over the transferred financial assets provides the basis for such a determination. The previous requirement that the transferor must have the ability to repurchase or redeem the financial assets before the maturity of the agreement is removed from the assessment of effective control by this Update. The Update is effective on a prospective basis for interim and annual reporting periods beginning on or after December 15, 2011, and is not expected to have a material impact on the Companys financial position or results of operations.
In April 2011, the FASB issued ASU No. 2011-02 to amend FASB ASC Subtopic 310-40, Receivables Troubled Debt Restructurings by Creditors. The statement clarifies guidance used by creditors to identify troubled debt restructurings and to result in more consistent application of GAAP for debt restructurings. The guidance is effective for interim and annual reporting periods beginning after June 15, 2011. Management is still evaluating the impact of this Update but at this time it does not expect it to have a material impact on the Companys financial position or results of operations.
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Foreclosed Assets Held for Sale
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Foreclosed Assets Held for Sale [Abstract] | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Owned [Text Block] | NOTE 10: FORECLOSED ASSETS HELD FOR SALE
Major classifications of foreclosed assets were as follows:
Expenses applicable to foreclosed assets included the following:
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Deposits
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Deposits [Abstract] {1} | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposit Liabilities Disclosures [Text Block] | NOTE 11: DEPOSITS
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Loss Sharing Agreements and FDIC Indemnification Assets
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Loss Sharing Agreements and FDIC Indemnification Assets | NOTE 9: LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS
On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. A detailed discussion of this transaction is included in the Companys Annual Report on Form 10-K for the year ended December 31, 2009, under the section titled Item 8. Financial Statements and Supplementary Information.
The loans, commitments and foreclosed assets purchased in the TeamBank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank which affords the Bank significant protection. Under the loss sharing agreement, the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $115.0 million, the FDIC has agreed to reimburse the Bank for 80% of the losses. On losses exceeding $115.0 million, the FDIC has agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. A discount was recorded in conjunction with the fair value of the acquired loans and the amount accreted to yield during the three and six months ended June 30, 2011 was $668,000 and $1.4 million, respectively. The amount accreted to yield during the three and six months ended June 30, 2010 was $400,000 and $700,000, respectively. On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. A detailed discussion of this transaction is included in the Companys Annual Report on Form 10-K for the year ended December 31, 2009, under the section titled Item 8. Financial Statements and Supplementary Information. The loans, commitments and foreclosed assets purchased in the Vantus Bank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank which affords the Bank significant protection. Under the loss sharing agreement, the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $102.0 million, the FDIC has agreed to reimburse the Bank for 80% of the losses. On losses exceeding $102.0 million, the FDIC has agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. A discount was recorded in conjunction with the fair value of the acquired loans and the amount accreted to yield during the three and six months ended June 30, 2011 was $247,000 and $523,000, respectively. The amount accreted to yield during the three and six months ended June 30, 2010 was $300,000 and $550,000, respectively.
Fair Value and Expected Cash Flows. At the time of these acquisitions, the Company determined the fair value of the loan portfolios based on several assumptions. Factors considered in the valuations were projected cash flows for the loans, type of loan and related collateral, classification status, fixed or variable interest rate, term of loan, current discount rates and whether or not the loan was amortizing. Loans were grouped together according to similar characteristics and were treated in the aggregate when applying various valuation techniques. Management also estimated the amount of credit losses that were expected to be realized for the loan portfolios. The discounted cash flow approach was used to value each pool of loans. For non-performing loans, fair value was estimated by calculating the present value of the recoverable cash flows using a discount rate based on comparable corporate bond rates. This valuation of the acquired loans is a significant component leading to the valuation of the loss sharing assets recorded.
The amount of the estimated cash flows expected to be received from the acquired loan pools in excess of the fair values recorded for the loan pools is referred to as the accretable yield. The accretable yield is recognized as interest income over the estimated lives of the loans. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the Companys cash flow expectations are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. During the three and six months ended June 30, 2011, increases in expected cash flows related to both acquired loan portfolios resulted in adjustments of $7.9 million and $11.3 million, respectively, to the accretable yield to be spread over the estimated remaining lives of the loans on a level-yield basis. During the year ended December 31, 2010, similar such adjustments totaling $58.9 million were made to the accretable yield. The current year increases in expected cash flows also reduced the amount of expected reimbursements under the loss sharing agreements. During the three and six months ended June 30, 2011, this resulted in corresponding adjustments of $7.2 million and $10.1 million, respectively, to the indemnification assets to be amortized on a level-yield basis over the remainder of the loss sharing agreements or the remaining expected lives of the loan pools, whichever is shorter. During the second half of the year ended December 31, 2010, similar such adjustments totaling $51.8 million were made to the indemnification assets. The impact of adjustments on the Companys financial results for the current reporting period is shown below:
Because these adjustments will be recognized over the estimated remaining lives of the loan pools, they will impact future periods as well. The majority of the remaining $25.3 million of accretable yield adjustment affecting interest income and $(22.1) million of adjustment to the indemnification assets affecting non-interest income is expected to be recognized over the next year, with $15.2 million of interest income and $(13.5) million of non-interest income (expense) expected to be recognized in the remainder of 2011. Additional adjustments may be recorded in future periods as the Company continues to estimate expected cash flows from the acquired loan pools.
The loss sharing asset is measured separately from the loan portfolio because it is not contractually embedded in the loans and is not transferable with the loans should the Bank choose to dispose of them. Fair value was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool (as discussed above) and the loss sharing percentages outlined in the Purchase and Assumption Agreement with the FDIC. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. The loss sharing asset is also separately measured from the related foreclosed real estate.
TeamBank FDIC Indemnification Asset. The following tables present the balances of the FDIC indemnification asset related to the TeamBank transaction at June 30, 2011 and December 31, 2010. Gross loan balances (due from the borrower) were reduced approximately $240.4 million since the transaction date through repayments by the borrower, transfers to foreclosed assets or charge-offs to customer loan balances.
Vantus Bank Indemnification Asset. The following tables present the balances of the FDIC indemnification asset related to the Vantus Bank transaction at June 30, 2011 and December 31, 2010. Gross loan balances (due from the borrower) were reduced approximately $153.4 million since the transaction date through repayments by the borrower, transfers to foreclosed assets or charge-downs to customer loan balances.
Changes in the accretable yield for acquired loan pools were as follows for the three months ended June 30, 2011 and 2010:
Changes in the accretable yield for acquired loan pools were as follows for the six months ended June 30, 2011 and 2010:
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Operating Segments
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3 Months Ended |
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Jun. 30, 2011
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Operating Segments [Abstract] | Â |
Segment Reporting Disclosure [Text Block] | NOTE 2: OPERATING SEGMENTS
The Company's banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans through deposits attracted from the general public and correspondent account relationships, brokered deposits and borrowings from the Federal Home Loan Bank ("FHLBank") and others. The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance.
Revenue from segments below the reportable segment threshold is attributable to three operating segments of the Company. These segments include insurance services, travel services and investment services. Selected information is not presented separately for the Company's reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements.
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Stockholders Equity
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3 Months Ended |
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Jun. 30, 2011
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Stockholders Equity [Abstract] | Â |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5: STOCKHOLDERS' EQUITY
Previously, the Company's stockholders approved the Company's reincorporation to the State of Maryland. Under Maryland law, there is no concept of "Treasury Shares." Instead, shares purchased by the Company constitute authorized but unissued shares under Maryland law. Accounting principles generally accepted in the United States of America state that accounting for treasury stock shall conform to state law. The cost of shares purchased by the Company has been allocated to Common Stock and Retained Earnings balances.
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Earnings Per Share
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Jun. 30, 2011
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Earnings Per Share | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | NOTE 6: EARNINGS PER SHARE
Options to purchase 614,760 and 423,958 shares of common stock were outstanding at June 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share for each period because the options exercise prices were greater than the average market prices of the common shares for the three months ended June 30, 2011 and 2010, respectively.
Options to purchase 529,160 and 427,308 shares of common stock were outstanding at June 30, 2011 and 2010, respectively, but were not included in the computation of diluted earnings per share for each period because the options exercise prices were greater than the average market prices of the common shares for the three months ended June 30, 2011 and 2010, respectively.
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