Note 13: Business Combinations: Business Acquisition Policy -- Citizens State Bank (Policies)

6 Months Ended

Dec. 31, 2013

Policies

Business Acquisition Policy -- Citizens State Bank

On November 7, 2013, the Company announced that it has entered into a definitive stock purchase agreement whereby it will acquire Citizens State Bankshares of Bald Knob, Inc. (Citizens), headquartered in Bald Knob, Arkansas, in an all-cash transaction valued at approximately $5.9 million, subject to certain adjustments for transaction expenses and Citizens’ equity at closing.  Citizens’ wholly-owned bank subsidiary, Citizens State Bank, will be merged with and into Southern Bank immediately upon closing, which the Company now anticipates will occur in February, 2014.  At December 31, 2013, Citizens held assets of $70.2 million, loans, net, of $11.6 million, and deposits of $62.3 million.  The Company will recognize all acquisition-related costs as an expense.  The Company’s acquisition-related costs were $57,000 through December 31, 2013, and are reflected in legal and professional fees.