Note 17: Acquisitions: Acquisition of Citizens State Bankshares and Citizens State Bank (Policies)

12 Months Ended

Jun. 30, 2014

Policies

Acquisition of Citizens State Bankshares and Citizens State Bank

On February 21, 2014, the Company completed its acquisition of Citizens State Bankshares of Bald Knob, Inc., and its subsidiary, the Citizens State Bank, Bald Knob, Arkansas (herein collectively, “Citizens State Bank”).  Citizens State Bank was merged into the Company’s existing bank subsidiary, Southern Bank, on that date. The Company completed the conversion of data systems for the Citizens State Bank operations in April, 2014. The Company acquired CSB primarily for the purpose of conducting commercial banking activities in markets where it believes the Company’s business model will perform well, and for the long-term value of its core deposit franchise.  Through June 30, 2014, the Company incurred $368,000 in third-party acquisition-related costs. The expenses are included in noninterest expense in the Company’s consolidated statement of income for the year ended June 30, 2014.   There was no goodwill arising from the acquisition.