Acquisition boosts Great Southern's 2Q financials

Springfield-based Great Southern Bancorp Inc. (Nasdaq: GSBC) recorded second-quarter profits of $11.1 million, a 34.4 percent increase compared to net income of $8.2 million in the same quarter a year earlier.

For the quarter ended June 30, Great Southern posted diluted share earnings of 79 cents, a 20-cent uptick compared to second-quarter 2013, according to a news release.

Toward the end of the quarter, on June 20, Great Southern entered a purchase and assumption agreement with the Federal Deposit Insurance Corp. to purchase certain assets and assume all deposits of Moline, Ill.-based Valley Bank. The deal resulted in Great Southern realizing a one-time gain of $10.8 million based on the initial estimated fair value of the assets and liabilities taken on board. The transaction represented Great Southern's fifth FDIC-assisted acquisition, the release said.

"This acquisition supports our long-term strategy of strengthening our presence in the Des Moines area and provides entry into a new market, the attractive Quad Cities metro area," Great Southern President and CEO Joe Turner said in the release. "This transaction, unlike our previous FDIC-assisted transactions, does not provide loss share coverage for the loans acquired and the bargain purchase gain is smaller than those recorded in previous transactions. However, future earnings related to the acquired Valley operations are expected to be meaningful."

The acquisition adds 13 branches - six in the Quad Cities metropolitan market along the Mississippi River and seven in the central Iowa/Des Moines region.

As of June 30, Great Southern's assets were $3.9 billion and deposits were $3.2 billion. Net interest income for the quarter rose 3.8 percent to $40 million from $38.5 million a year earlier, according to the release

The company currently operates 112 branches, said Great Southern spokeswoman Kelly Polonus.

GSBC shares were trading at $30.06 as of 8:58 a.m., compared to a 52-week range of $25.71 to $33.77.