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FDIC-Assisted Acquisition

12 Months Ended

Dec. 31, 2011

FDIC-Assisted Acquisition [Abstract]

Note 29: FDIC-Assisted Acquisition

On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement, including a loss sharing agreement as described in Note 5, with the FDIC to purchase substantially all of the assets and assume substantially all of the deposits and other liabilities of Sun Security Bank, a full-service bank headquartered in Ellington, Missouri. Established in 1970, Sun Security Bank operated 27 locations in 15 counties in central and southern Missouri. The fair values of the assets acquired and liabilities assumed in the transaction were as follows:

	October 7,
	2011
	(In Thousands)

Cash	$2,410
Due from banks	64,417
Cash and cash equivalents	66,827

Investment securities	45,347
Loans receivable, net of discount on loans purchased of $74,038	163,674
Foreclosed real estate	9,056
FDIC indemnification asset	67,384
Federal Home Loan Bank of Des Moines stock	2,978
Fixed assets	54
Accrued interest receivable	1,593
Core deposit intangible	2,453
Other assets	2,944

Total assets acquired	362,310

Liabilities
Demand and savings deposits	166,477
Time deposits	114,385

Total deposits	280,862

Advances from Federal Home Loan Bank of Des Moines	64,330
Accrued interest payable	248
Advances from borrowers for taxes and insurance	384

Total liabilities assumed	345,824


Gain recognized on business acquisition	$16,486

Under the terms of the Purchase and Assumption Agreement, the FDIC agreed to transfer net assets to Great Southern at a discount of $55.0 million to compensate Great Southern for losses not covered by the loss sharing agreement and troubled asset management costs. No premium was paid to the FDIC for the deposits, resulting in a net purchase discount of $55.0 million. Details related to the transfer are as follows:

	October 7,
	2011
	(In Thousands)

Net assets as determined by the FDIC	$11,443
Cash transferred by the FDIC	43,532
Net assets per Purchase and Assumption Agreement	54,975

Purchase accounting adjustments:
Loans	(76,837)
Foreclosed real estate	(21,130)
FDIC indemnification asset	67,384
Deposits	(801)
Advances from Federal Home Loan Bank of Des Moines	(9,330)
Core deposit intangible	2,453
Other adjustments	(228)

Gain recognized on business acquisition	$16,486

The acquisition of the net assets of Sun Security Bank was determined to constitute a business acquisition in accordance with FASB ASC 805. FASB ASC 805 allows a measurement period of up to one year to adjust initial fair value estimates as of the acquisition date. Therefore, assets acquired and liabilities assumed were recorded on a preliminary basis at fair value on the date of acquisition, after adjustment for expected loss recoveries under the loss sharing agreement which is described in Note 5. Based upon the preliminary acquisition date fair values of the net assets acquired, no goodwill was recorded. The transaction resulted in a preliminary bargain purchase gain of $16.5 million for the year ended December 31, 2011.