1
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UNITED STATES
SECURITIES & EXCHANGE COMMISSION
Washington, DC. 20549
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FORM 10-Q
/X/ Quarterly Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarter ended March 31, 1996, or
/ / Transition Report Pursuant to Section 13 or 15(D) of the
Securities Exchange Act of 1934
For the transition period from _________ to _________
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Commission File Number 0-18082
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GREAT SOUTHERN BANCORP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
43-1524856
(IRS Employer Identification Number)
1451 E. BATTLEFIELD
SPRINGFIELD, MISSOURI
(Address of principal executive offices)
65804
(Zip Code)
(417) 887-4400
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes /X/ No
The number of shares outstanding of each of the registrant's classes
of common stock 4,421,303 shares of common stock, par value $.01,
outstanding at May 10, 1996
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2
PART I
ITEM 1. FINANCIAL STATEMENTS.
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
March 31, June 30,
1996 1995
------------ ------------
ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,433,922 $ 4,834,190
Interest-bearing deposits in other financial institutions. . . . . . . . . 17,525,069 12,625,761
----------- -----------
Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . 23,958,991 17,459,951
Available for sale securities. . . . . . . . . . . . . . . . . . . . . . . 3,744,232 3,090,782
Held to maturity securities (fair value $52,390,000 - March 1996;
$47,265,000 - June 1995) . . . . . . . . . . . . . . . . . . . . . . . . 52,149,778 46,970,187
Loans receivable, net. . . . . . . . . . . . . . . . . . . . . . . . . . . 545,712,542 519,254,604
Foreclosed assets held for sale, net . . . . . . . . . . . . . . . . . . . 4,813,313 7,999,283
Premises and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 6,756,283 6,716,600
Accrued interest receivable
Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,399,419 3,929,261
Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,292,739 956,518
Investment in FHLBank Stock. . . . . . . . . . . . . . . . . . . . . . . . 9,523,500 8,486,000
Prepaid expenses and other assets. . . . . . . . . . . . . . . . . . . . . 2,534,218 2,806,797
Excess of cost over fair value of net assets acquired. . . . . . . . . . . 1,123,156 1,186,741
Deferred income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,988,921 3,522,844
------------ ------------
Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $658,997,092 $622,379,568
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $390,812,317 $384,327,213
Federal Home Loan Bank advances. . . . . . . . . . . . . . . . . . . . . . 179,819,426 154,323,038
Short-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . 16,303,669 13,946,943
Advance payments by borrowers for taxes and insurance. . . . . . . . . . . 1,951,085 3,225,224
Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . . 2,883,477 2,351,182
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . 520,779 1,223,781
------------ ------------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 592,290,753 559,397,381
------------ ------------
Capital stock
Serial preferred stock, $.01 par value; authorized 1,000,000 shares
Common stock, $.01 par value; authorized 10,000,000 shares,
issued 6,162,501 shares. . . . . . . . . . . . . . . . . . . . . . . . 61,625 61,625
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . 16,777,255 16,692,966
Retained earnings (substantially restricted) . . . . . . . . . . . . . . . 65,982,439 59,755,968
Unrealized appreciation on available-for-sale securities, net of
income taxes of $61,079 - March 1996 and $231,156 - June 1995. . . . . . 95,534 361,551
Treasury stock, at cost; 1,728,170 shares - March 1996;
1,659,743 shares - June 1995 . . . . . . . . . . . . . . . . . . . . . . (16,210,514) (13,889,923)
------------ ------------
Total Stockholders' Equity. . . . . . . . . . . . . . . . . . . . . . . 66,706,339 62,982,187
------------ ------------
Total Liabilities and Stockholders' Equity . . . . . . . . . . . . . $658,997,092 $622,379,568
============ ============
<FN>
See Notes to Consolidated Financial Statements
3
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
1996 1995 1996 1995
----------- ----------- ----------- -----------
INTEREST INCOME
Loans $12,487,950 $11,244,505 $37,110,162 $31,567,242
Investment Securities 963,073 937,914 2,857,825 2,407,579
Other 42,186 33,771 145,390 101,265
---------- ---------- ---------- ----------
TOTAL INTEREST INCOME 13,493,209 12,216,190 40,113,377 34,076,086
---------- ---------- ---------- ----------
INTEREST EXPENSE
Deposits 4,271,225 3,854,875 12,804,282 10,585,574
FHLBank advances 2,735,961 2,368,581 7,856,859 5,700,795
Short-term borrowings 124,421 109,577 421,266 335,931
---------- ---------- ---------- ----------
TOTAL INTEREST EXPENSE 7,131,607 6,333,033 21,082,407 16,622,300
---------- ---------- ---------- ----------
NET INTEREST INCOME 6,361,602 5,883,157 19,030,970 17,453,786
PROVISION FOR LOAN LOSSES 350,016 496,629 997,421 1,111,295
---------- ----------- - ---------- ----------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 6,011,586 5,386,528 18,033,549 16,342,491
---------- ---------- ---------- ----------
NONINTEREST INCOME
Commissions 1,044,825 958,728 3,252,086 3,251,419
Service charge fees 572,170 537,599 1,766,944 1,703,481
Net realized gains on sales of loans and
available-for-sale securities 167,339 23,066 996,029 52,330
Income (expense) on foreclosed assets 972,129 (59,469) 819,649 (70,055)
Other income 454,285 376,787 1,130,148 1,055,636
---------- ---------- ---------- ----------
TOTAL NONINTEREST INCOME 3,210,748 1,836,711 7,964,856 5,992,811
---------- ---------- ---------- ----------
NONINTEREST EXPENSE
Salaries and employee benefits 2,137,559 1,886,663 6,197,216 5,693,218
Net occupancy expense 572,074 477,822 1,672,304 1,367,028
Postage 165,966 160,790 466,969 440,392
Insurance 317,057 313,752 950,859 941,050
Advertising 111,417 100,400 345,711 370,538
Office supplies and printing 115,822 129,400 325,692 412,721
Other operating expenses 864,225 633,988 2,168,324 2,087,055
---------- ---------- ---------- ----------
TOTAL NONINTEREST EXPENSE 4,284,120 3,702,815 12,127,075 11,312,002
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 4,938,214 3,520,424 13,871,330 11,023,300
PROVISION FOR INCOME TAXES 1,717,800 1,126,000 5,288,300 3,963,300
---------- ---------- ---------- ----------
NET INCOME $ 3,220,414 $ 2,394,424 $ 8,583,030 $ 7,060,000
========== ========== ========== ==========
EARNINGS PER COMMON SHARE $.70 $.51 $1.88 $1.48
=== === ==== ====
<FN>
See Notes to Consolidated Financial Statements
4
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
NINE MONTHS ENDED MARCH 31,
1996 1995
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 8,583,030 $ 7,060,000
Items not requiring (providing) cash:
Depreciation 730,554 498,363
Amortization 63,585 63,585
Provision for loan losses 997,421 1,111,295
Provision for losses on foreclosed assets 175,000 200,300
Net realized gains on sale of loans (388,474) (52,330)
FHLBank Stock Dividend (176,400) 0
Loss on sale of premises and equipment 2,171 6,348
Gain on sale of foreclosed assets (1,273,949) (129,500)
Amortization of deferred income,
premiums and discounts (504,190) (867,433)
Net realized gains on sale of available-for-sale securities (607,154) (529)
Deferred income taxes 704,000 (140,999)
Changes in:
Accrued interest receivable (806,379) (1,255,972)
Prepaid expenses and other assets 272,579 (948,262)
Accounts payable and accrued expenses 532,295 203,748
Income taxes payable (703,002) (85,784)
----------- -----------
Net cash provided by operating activities 7,601,087 5,662,830
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans (23,848,503) (63,589,403)
Purchase of premises and equipment (775,283) (1,074,242)
Proceeds from sale of premises and equipment 2,875 0
Proceeds from sale of foreclosed assets 1,924,721 905,698
Capitalized costs on foreclosed assets (192,278) 1,389
Proceeds from sale of available-for-sale securities 2,219,926 0
Proceeds from maturing held-to-maturity securities 3,524,684 30,555,463
Purchase of held-to-maturity securities (8,865,991) (31,453,538)
Purchase of available-for-sale securities (2,702,316) (2,509,259)
Purchase of FHLBank stock (861,100) (2,271,300)
----------- -----------
Net cash used in investing activities (29,573,265) (69,435,192)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in certificates of deposit 5,827,656 37,334,682
Net increase (decrease) in checking and savings 657,448 (13,528,758)
Proceeds from FHLBank advances 337,104,678 313,422,181
Repayments of FHLBank advances (311,608,290) (258,691,131)
Net increase (decrease) in short-term borrowings 2,356,726 (2,577,201)
Advances from borrowers for taxes and insurance (1,274,139) (461,344)
Purchase of treasury stock (2,439,524) (5,564,268)
Dividends paid (2,356,559) (2,090,317)
Stock options exercised 203,222 354,373
----------- -----------
Net cash provided by financing activities 28,471,218 68,198,217
----------- -----------
INCREASE IN CASH AND CASH EQUIVALENTS 6,499,040 4,425,855
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,459,951 14,686,000
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 23,958,991 $ 19,111,855
=========== ===========
<FN>
See Notes to Consolidated Financial Statements
5
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements
of Great Southern Bancorp, Inc. (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments (consisting only of normal recurring
accruals) considered necessary for a fair presentation have been
included. Operating results for the three and nine months ended March
31, 1996 and 1995 are not necessarily indicative of the results that may
be expected for the full year. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended June 30, 1995.
When necessary, reclassifications have been made to prior period
balances to conform to current period presentation. These
reclassifications had no effect on net income.
ITEM II. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATION
The discussion set forth below, as well as other portions of this
Form 10-Q, may contain forward-looking comments. Such comments are
based upon the information currently available to management of the
Company and management's perception thereof as of the date of this Form
10-Q. Actual results of the Company's operations could materially
differ from those forward-looking comments. The differences could be
caused by a number of factors or combination of factors including, but
not limited to, changes in the availability and/or cost of capital;
changes in demand for banking services; changes in the portfolio
composition; change in the interest rate yield on the Company's
investments; changes in management strategy; increased competition from
both bank and non-bank companies; changes in the economic, political or
regulatory environments in the United States; litigation involving the
Company and/or its subsidiaries; and changes in the availability of
qualified labor. Readers should take these factors into account in
evaluating any such forward-looking comments.
General
Parts of management's discussion and analysis in the annual report on
Form 10-K are not included below. The following should be read in
conjunction with management's discussion and analysis in the Company's
June 30, 1995 Form 10-K.
6
The consolidated net income of Great Southern Bancorp, Inc. and more
specifically, the net income of it's primariy subsidiary, Great Southern
Bank, FSB (the "Bank") is primarily dependent upon the difference or
spread between the average yield earned on loans and investments and the
average rate paid on deposits and borrowings, as well as the relative
amounts of such assets and liabilities. The interest rate spread is
affected by regulatory, economic and competitive factors that influence
interest rates, loan demand and deposit flows. The Bank, like other
financial institutions, is subject to interest rate risk to the degree
that its interest-bearing liabilities mature or reprice at different
times, or on a different basis than its interest-earning assets. The
Company's consolidated net income is also affected by, among other
things, gains on sales of loans and available-for-sale investments,
provisions for loan losses, service charge fees and commissions,
operating expenses and income taxes.
Management of the Company has developed and implemented an
asset/liability management strategy to match the repricing and/or
maturity of its interest-earning assets and its interest-bearing
liabilities and to achieve improved and sustained operating income
without adversely affecting asset quality. In implementing this
strategy, the Company has sought, subject to market conditions, to
increase its origination of adjustable-rate loans secured by one- to
four-family residential real estate in order to increase its investment
in loans that are interest rate sensitive. The Company has also sold
substantially all of the fixed-rate, one- to four-family residential
loans originated since fiscal 1986, with servicing retained. Beginning
in fiscal 1992, the Company's lending returned to origination of
adjustable-rate commercial real estate and commercial business loans.
By doing so, the Company is attempting to increase significantly its
loan fees, increase its investment in loans that are interest rate
sensitive and improve the yield on its loan portfolio. The Company
intends to continue prudently to evaluate the origination of commercial
real estate loans (both to purchase existing properties and construct
new properties) in its total loan portfolio subject to commercial real
estate and other market conditions and to applicable regulatory
restrictions and may increase the percent of the commercial real estate
loans to the overall portfolio.
EFFECT OF FEDERAL LAWS AND REGULATIONS
In late 1995, the FDIC adopted a new deposit insurance assessment
rate schedule that provided for lower premiums for BIF members than for
SAIF members such as the Bank. Subsequently, the FDIC made further
reductions to the deposit insurance assessment rates applicable to BIF
members. As a result of such further adjustments, BIF members pay
between 0 basis points and 27 basis points on their deposits. As of
year end, approximately 92% of BIF members were being charged the 0
basis point rate. In contrast, SAIF member institutions such as the
Bank continue to pay assessment rates ranging from 23 basis points to 31
basis points. This disparity causes SAIF members, such as the Bank, to
be placed at a competitive disadvantage with BIF members with respect to
the pricing of loans and deposits, the ability to achieve lower
operating costs, and the ability to raise funds in the capital markets.
7
There are currently pending in Congress a number of legislative
proposals which, if enacted, would affect the BIF/SAIF premium
disparity, and would otherwise affect operations of associations such as
the Bank. Such proposals include a one-time assessment in the range of
70 to 85 basis points on the amount of all SAIF-assessable deposits and
an allocation among SAIF members and BIF members of the interest costs
of the FICO bonds used to fund the resolution of insolvent savings
associations. Also recently introduced was legislation that would
eliminate federal thrift charters (such as that held by the Bank) and
that would require all state chartered thrifts to be regulated like
state banks; any institution that did not voluntarily convert would
become a national bank.
Such proposals would have an adverse effect upon the Company and the
Bank. An 85 basis point assessment on the Bank's December 31, 1995
SAIF-assessable deposits would require the Bank to pay approximately
$3.4 million ($2.1 million after income taxes). If SAIF members were
not permitted to amortize such fees over a period of years, such payment
would have a significant impact on the Bank's earnings and capital as of
the time the payment was made. An elimination of federal thrift
charters would require the Bank to convert its charter. As a result,
the activities and powers of the Bank and the Company may be restricted,
unless the legislative enactment provides for a grandfathering of
existing powers and activities. Moreover, such grandfather privileges,
if granted, may be limited in scope and time. In addition, any
conversion to a bank charter may also adversely affect the Bank by
causing it to recognize bad debt recapture, unless the legislative
proposals modify existing tax laws. Although a related legislative
proposal proposes to grant relief from the tax consequences of such
recapture, such relief may be limited.
RECENT CHANGES IN ACCOUNTING PRINCIPLES
In June 1993, the FASB issued Statement of Financial Accounting
Standards No. 114, "Accounting by Creditors for Impairment of a Loan"
("SFAS 114"). This statement requires discounting expected future cash
flows to measure impairment of certain loans or, as a practical
expedient, impairment measurements based on the loan's observable market
price or the fair value of collateral if the loan is collateral
dependent. In October 1994, the FASB issued Statement No. 118
"Accounting by Creditors for Impairment of a Loan - Income Recognition
and Disclosures" ("SFAS 118") which amended certain provisions of SFAS
114. SFAS 118 allows a creditor to use existing methods for recognizing
interest income on impaired loans and requires information to be
disclosed about the recorded investment in certain impaired loans about
how a creditor recognized interest income related to those loans. These
standards were adopted by the Company during the current June 30, 1996
fiscal year. This accounting change did not have a material adverse
impact on the financial condition or net income of the Company.
8
POTENTIAL IMPACT OF ACCOUNTING PRINCIPLES TO BE IMPLEMENTED IN THE
FUTURE
In May 1995, the FASB issued Statement of Financial Accounting
Standards No. 122, "Accounting for Mortgage Servicing Rights" ("SFAS
122"). SFAS 122 requires that mortgage banking enterprises recognize as
separate assets, rights to service mortgage loans for others, however
those servicing rights are acquired. Adoption of SFAS 122 will be
required by the Company during the fiscal year ending June 30, 1997.
Management has not estimated the impact, if any, of adopting SFAS 122 on
the financial condition or net income of the Company.
ASSET AND LIABILITY MANAGEMENT
During the nine months ended March 31, 1996, the Company experienced
growth in the major areas of its assets and liabilities. Total assets
increased $37 million, primarily due to net loan originations of $26
million, an increase in interest-bearing deposits in other financial
institutions of $6 million and increases in investments and FHLBank
stock of $7 million offset by a decrease in foreclosed assets of $3
million.
The $26 million increase in net loans receivable was primarily from a
net increase of $23 million of commercial real estate and commercial
construction loans and a net increase of $7 million of one- to four-
family and one- to four-family construction loans. The increase in
interest-bearing deposits in financial institutions primarily resulted
from maintaining higher balances at correspondent banks to reduce the
amount of service charge assessments.
Total liabilities increased $33 million, primarily from increases in
FHLBank advances and short-term borrowings of $28 million and increases
in deposits of $7 million, all of which were required to fund the asset
growth previously mentioned. The above represents the Company's
continued practice of using primarily short-term FHLBank advances to
fund net loan originations comprised mainly of adjustable rate loans.
Stockholders' equity increased $3.7 million during the nine months
ended March 31, 1996. This increase was the result of net income of
$8.4 million partially offset by dividend declarations and payments of
$2.4 million and net treasury stock purchases of $2.3 million. The
Company repurchased 106,165 shares of common stock at an average price
of $22.27 per share and reissued 37,738 shares of treasury stock at an
average price of $3.18 per share for stock option exercises.
9
Management believes that a key component of successful
asset/liability management is the monitoring and management of interest
rate sensitivity, which encompasses the repricing and maturity of
interest-earning assets and interest-bearing liabilities. During any
period in which a financial institution has a positive interest rate
sensitivity gap, the amount of its interest-earning assets maturing or
otherwise repricing within such period exceeds the amount of the
interest-bearing liabilities maturing or otherwise repricing within the
same period. Accordingly, in a rising interest rate environment,
financial institutions with positive interest rate sensitivity gaps
generally will experience greater increases in yield on their assets
than in the cost of their liabilities. Conversely, in a falling
interest rate environment, the cost of funds of financial institutions
with positive interest rate sensitivity gaps generally will decrease
less than the yield on their assets. Changes in interest rates
generally will have the opposite effect on financial institutions with
negative interest rate sensitivity gaps. In a rising interest rate
environment financial institutions with negative gaps have more
liabilities than assets mature or reprice during the relevant period,
causing the increase in the cost of liabilities to exceed the increase
in the yield on assets. Conversely, in a falling interest rate
environment, the cost of funds of financial institutions with negative
interest rate sensitivity gaps generally will decrease more than the
yield on their assets. The Company's experience with interest rates are
discussed in more detail under the headings "Results of Operations and
Comparisons of the Three and Nine Months Ended March 31, 1996 and 1995"
and in management's discussion and analysis in the June 30, 1995 Form
10-K.
The Company's one-year interest rate sensitivity gap, as a percentage
of total interest-earning assets was a positive $91 million, or 14%, at
March 31, 1996, as compared to a positive $75 million, or 12.3%, at June
30, 1995. The increase of $16 million resulted primarily from: (i) a
$39 million increase in investment securities due to a shift from the
over 1 to 3 year category and an increase in interest-bearing deposits
in other financial institutions; (ii) an $11 million increase in loans
from new loan originations; offset by (iii) a $15 million increase in
FHLBank advances due to net additional short term advances; (iv) a $17
million increase in time deposits due to new deposits and a shift of
deposits from the over 1 to 3 year category; and (v) other smaller
changes.
10
As a part of its asset and liability management strategy, the Company
has increased its investment in loans which are interest rate sensitive
by emphasizing the origination of adjustable-rate, one- to four-family
residential loans and adjustable-rate or relatively short-term
commercial business and consumer loans, and originating fixed-rate, one-
to four-family residential loans primarily for immediate resale in the
secondary market. Approximately 28% of total assets are currently
invested in commercial real estate and commercial business loans. This
part of the strategy was designed to improve asset yield and fee income,
and to shorten the average maturity and increase the interest rate
sensitivity of the loan portfolio. While efforts to date have
contributed to the changes in the one-year interest rate sensitivity gap
and increasing net interest income, such lending, commensurate with the
increased risk levels, has also resulted in an increase in the level of
non-performing assets. Management continually evaluates existing and
potential commercial real estate and commercial business loans, in order
to try to reduce undesirable risks including concentrations in a given
geographic area or a particular loan category.
While from a credit risk standpoint the Company would prefer higher
levels of one- to four-family and other residential loan originations
than commercial real estate and commercial business loan originations,
the Company has to adapt to the changing lending environment and
commercial real estate and commercial business loans help the Company
maintain the desired size of the loan portfolio and assets in total, as
well as maintain the desired yield on the Company's investments.
Interest rate risk exposure estimates (the sensitivity gap) are not
exact measures of an institution's actual interest rate risk. They are
only indicators of interest rate risk exposure produced in a simplified
modeling environment designed to allow management to gauge the Company's
sensitivity to changes in interest rates. They do not necessarily
indicate the impact of general interest rate movements on the Company's
net interest income because the repricing of certain categories of
assets and liabilities is subject to competitive and other factors
beyond the Company's control. As a result, certain assets and
liabilities indicated as maturing or otherwise repricing within a stated
period may in fact mature or reprice at different times and in different
amounts and would therefore cause a change (which potentially could be
material) in the Company's interest rate risk.
11
The following table sets forth the Company's interest rate sensitive
assets and liabilities that mature or reprice within one year as of the
dates indicated and on the basis of the factors and assumptions set
forth at the end of the tables.
March 31, June 30,
1996 1995
-------- --------
(000'S OMITTED)
Residential, commercial real estate and
construction loans $456,087 $445,745
Commercial business loans 12,223 9,606
Consumer loans 17,853 14,068
Investment securities and other 72,968 33,710
------- -------
Total interest rate sensitive assets
repricing within one year 559,131 503,129
------- -------
Interest-bearing demand deposits 106,112 103,401
Savings deposits 36,813 38,285
Time deposits 197,263 175,728
FHLBank advances 111,828 96,831
Other borrowings and liabilities 16,304 13,947
------- -------
Total interest rate sensitive liabilities
repricing within one year 468,320 428,192
------- -------
One year interest rate sensitivity gap (1) $ 90,811 $ 74,937
======= =======
Interest rate sensitive assets/interest rate
sensitive liabilities 119.4% 117.5%
===== =====
One year interest rate sensitivity gap as a
percent of interest-earning assets 14.0% 12.3%
==== ====
<FN>
___________________________________________
(1) Defined as the Company's interest-earning assets which mature or
reprice within one year minus its interest-bearing liabilities that
mature or reprice within one year.
12
The following table sets forth the interest rate sensitivity of the
Company's assets and liabilities at March 31, 1996, on the basis of the
factors and assumptions set forth below.
Maturing or Repricing
---------------------------------------------------------------
Over 6
6 Months Months Over 1-3 Over 3-5 Over
or Less to 1 Year Years Years 5 Years Total
-------- --------- -------- -------- -------- --------
(Dollars in thousands)
Residential, commercial real
estate and construction loans $349,106 $106,981 $ 20,450 $11,186 $38,453 $526,176
Commercial business loans 11,918 305 148 0 0 12,371
Consumer loans 15,409 2,444 7,220 0 0 25,073
Investment securities and other 21,518 51,450 9,975 0 0 82,943
------- ------- ------- ------ ------ -------
Total interest-earning assets 397,951 161,180 37,793 11,186 38,453 646,563
------- ------- ------- ------ ------ -------
Interest-bearing demand deposits 106,112 0 0 0 0 106,112
Savings deposits 36,813 0 0 0 0 36,813
Time deposit 149,743 47,520 32,388 4,653 5,983 240,287
FHLBank advances 86,918 24,910 37,380 11,053 19,558 179,819
Other borrowings and liabilities 16,304 0 0 0 0 16,304
------- ------- ------- ------ ------ -------
Total interest-bearing liabilities 395,890 72,430 69,768 15,706 25,541 579,335
------- ------- ------- ------ ------ -------
Interest-earning assets less
interest-bearing liabilities $ 2,061 $ 88,750 $(31,975) $(4,520) $12,912 $ 67,228
======= ======= ======= ====== ====== =======
Cumulative interest rate sensitivity gap $ 2,061 $ 90,811 $58,836 $54,316 $67,228
======= ======= ====== ====== ======
Cumulative interest rate sensitivity gap
as a percent of interest-earning
assets at March 31, 1996 .3% 14.0% 9.1% 8.4% 10.4%
=== ==== === === ====
Cumulative interest rate sensitivity gap
as a percent of interest-earning
assets at June 30, 1995 2.1% 12.3% 9.8% 9.1% 10.6%
=== ==== === === ====
<FN>
The assumptions used in the above two tables are:
-- Prepayment rates are derived from market prepayment rates observed
on or about March 31, 1996. They are supplied by the FHLBank of Des
Moines Risk Management Department.
-- Fixed-rate loans, net of loans in process, deferred fees and
discounts are shown on the basis of contractual amortization and the
prepayment assumptions noted above.
-- Adjustable-rate loans are assumed to reprice at the earlier of
maturity or the next contractual repricing date.
-- Zero growth and constant percentage composition of assets and
liabilities and funds from contractual amortization are not reinvested.
13
RESULTS OF OPERATIONS AND COMPARISON OF THE THREE AND NINE MONTHS
ENDED MARCH 31, 1996 and 1995
The increase in earnings for the three and nine months ended March
31, 1996 when compared to the same periods in 1995, respectively, of
$826,000, or 34.5%, and $1.5 million, or 21.6%, was primarily due to
an increase in net interest income of $478,000 and $1.6 million, an
increase in noninterest income of $1.4 million and $2 million, and a
decrease in provision for loan losses of $147,000 and $114,000, offset
by an increase in noninterest expense of $581,000 and $815,000, and an
increase in provision for income taxes of $592,000 and $1.3 million
during the respective periods.
Interest Income
Total interest income increased $1.3 million, or 10.5%, and $6.0
million, or 17.7%, respectively, during the three and nine months
ended March 31, 1996 when compared to the three and nine months ended
March 31, 1995. The increase for the three and nine months,
respectively, was primarily due to a $1.2 million, or 11.1%, and $5.5
million, or 17.6%, increase in interest income on loans and a $34,000,
or 3.5%, and $494,000, or 19.7%, increase in interest income on
investment securities and interest-bearing deposits.
Of the increase in interest income on loans, $963,000 and $3.7
million, respectively, was the result of higher average loan balances
which increased from $502 million and $478 million in the three and
nine months ended March 31, 1995, to $544 million and $533 million in
the three and nine months ended March 31, 1996, as a result of the
increased loan volume discussed earlier The remaining increase of
$281,000 and $1.8 million, respectively, was the result of an increase
in average yield from 8.97% and 8.80% in the three and nine months
ended March 31, 1995, to 9.19% and 9.29% in the three and nine months
ended March 31, 1996, as a result of higher market rates.
Of the increase in interest income on investment securities and
interest-bearing deposits, $60,000 and $282,000, respectively, was the
result of higher average balances from $71.5 million and $70.3 million
in the three and nine months ended March 31,1995 to $76.2 million and
$76 million in the three and nine months ended March 31, 1996
primarily as a result of short term increases in investment securities
to pledge on deposits. The offsetting decrease of $27,000 in the
three months ended March 31, 1996 was the result of a decrease in
average yields from 5.44% during the three months ended March 31, 1995
to 5.28% during the three months ended March 31, 1996 as a result of
lower rates paid on FHLBank stock partially offset by higher market
rates on investment securities. The remaining $282,000 increase in
the nine months ended March 31, 1996 was the result of an increase in
average yields from 4.76% in the nine months ended March 31, 1995 to
5.27% in the nine months ended March 31, 1996, primarily as a result
of higher market rates on investment securities, offset by lower rates
paid on FHLBank stock.
14
Interest Expense
Total interest expense increased $799,000, or 12.6%, and $4.5
million, or 26.8%, respectively, during the three and nine months
ended March 31, 1996 when compared with the same periods in 1995. The
increase for the three and nine months, respectively, was primarily
due to a $382,000, or 15.4%, and $2.2 million, or 37.1%, increase in
interest expense on FHLBank advances and other borrowings, combined
with a $416,000, or 10.8%, and $2.2 million, or 21%, increase in
interest expense on deposits.
Interest expense on FHLBank advances and other borrowings increased
$480,000 and $2 million, respectively, due to higher average balances
from $161 million and $139 million in the three and nine months ended
March 31, 1995 to $194 million and $184 million in the three and nine
months ended March 31, 1996. The remaining $98,000 decrease in the
three months ended March 31, 1996 was due to lower average interest
rates from 6.14% in the three months ended March 31, 1995 to 5.88% in
the three months ended March 31, 1996. The remaining $229,000
increase in the nine months ended March 31, 1996 was due to higher
average interest rates from 5.79% in the nine months ended March 31,
1995 to 6.00% in the nine months ended March 31, 1996. Average
balances increased as a result of the Company's use of short term
FHLBank advances to partially fund loan growth. The changes in
average rates were a result of changes in market rates.
Interest expense on deposits during the three and nine months ended
March 31, 1996, increased primarily as a result of an increase in both
volume and market rates. $195,000 and $1.4 million, respectively, of
the increase resulted from higher average rates on time deposits from
5.36% and 4.93% during the three and nine months ended March 31, 1995,
to 5.69% and 5.74% during the three and nine months ended March 31,
1996. Higher average market rates was the primary factor causing the
increase in average rates.
The remaining increase primarily resulted from an increased volume
in time deposits from an average balance of $226 million and $215
million during the three and nine months ended March 31, 1995 to an
average balance of $243 million and $239 million during the three and
nine months ended March 31, 1996.
Net Interest Income
The Company's overall interest rate spread remained at 4.11% during
the three months ended March 31, 1996 and 1995, and decreased 7 basis
points, or 1.7%, from 4.24% during the nine months ended March 31,
1995, to 4.17% during the nine months ended March 31, 1996. The
decrease is due to an overall increase in the weighted average rates
paid on interest-bearing liabilities partially offset by an overall
increase in the weighted average yield received on interest-earning
assets. The Company believes the interest rate spread will continue
to approximate current levels or decline slightly in the remainder of
fiscal 1996.
15
Provision for Loan Losses
The provision for loan losses decreased from $497,000 and $1.1
million, respectively, during the three and nine months ended March
31, 1995 to $350,000 and $997,000, respectively, during the three and
nine months ended March 31, 1996. In any accounting period, the
provision for loan losses is affected by many factors including, but
not limited to, the change in the composition of the loan portfolio,
the increase or decrease in total loans, the level of delinquencies
and other non-performing loans and the historical loss experience of
the portfolio.
Non-performing assets increased $1.5 million, or 12%, during the
nine months ended March 31, 1996 from $12.8 million at June 30, 1995
to $14.3 million at March 31, 1996. Non-performing loans increased
$4.7 million, or 124%, from $3.8 million at June 30, 1995 to $8.5
million at March 31, 1996, and foreclosed assets declined $3.1 million
from $8.9 million at June 30, 1995 to $5.8 million at March 31, 1996.
Non-performing loans at March 31, 1996 and June 30, 1995, included
$533,000 and $775,000, respectively, of loans in connection with the
sale of foreclosed assets, which are loans that have higher than usual
loan-to-value ratios and are originated in connection with the sale of
foreclosed assets. Substantially all of these loans were performing
at March 31, 1996.
The increase in non-performing loans was primarily the result of i)
the addition of loans totaling $4.3 million on a condominium project
located in Branson, Missouri; ii) the transfer from foreclosed assets
to loans, due to the implementation of FASB 114, of one loan for
$934,000 which had been recorded as an in-substance foreclosure in
fiscal 1994; iii) the addition of loans totaling $1 million on a
restaurant located in Branson, Missouri; partially offset by iv)the
foreclosure of the property securing the $1.6 million loan described
in the Company's Annual Report on Form 10-K for the year ended June
30, 1995 on page 21 under the heading "Missouri - Motel".
The loans on the Branson condominium project totaling $4.3 million
are net of a charge down taken during the nine months ended March 31,
1996 of $1.4 million, based on a new appraisal of the project. The
loans had been reported as loans of concern at September 30, 1995 with
continued decline in the credit quality of the project to nonaccrual
status at December 31, 1995 and March 31, 1996.
The borrower on the $934,000 loan has been delinquent for an
extended period, but is in bankruptcy so the Company has been unable
to obtain possession of the property.
The borrower on the $1 million restaurant loans has been slow in
paying but began showing improvement towards the later part of their
1995 season and has experienced increased advance reservations for the
1996 season which should improve their payment status if these
reservations are converted into sales.
16
The Company foreclosed on the $1.6 million motel located in
Branson, Missouri in October 1995. The motel appraised for slightly
more than the balance of the loan. The Company is seeking a buyer for
the property and in the interim operated the motel during the 1995
fall and winter season in Branson and intends to operate the motel
during the 1996 season.
The $3.1 million decline in foreclosed assets during the nine
months ended March 31, 1996 was primarily due to i) the sale of the
$2.8 million golf course and country club property described in the
Company's Annual Report on Form 10-K for the year ended June 30, 1995
on page 22 under the heading "Missouri - Residential development, golf
course and country club". The sale was for a total of $4 million with
$1 million cash at closing and normal long-term financing for the
balance; ii) the $934,000 property transferred back to loans as noted
above; iii) the sale of 9 condominium units carried at an aggregate of
$424,000 and 3 residential lots carried at an aggregate of $47,000;
iii) the sale of a $400,000 Joplin car wash; iv) a $125,000 charge
down on two existing properties; offset by v) the foreclosure of the
$1.6 million motel noted above; and vi) various other activity of
smaller properties in the account.
Potential problem loans increased $3.3 million during the nine
months ended March 31, 1996 from $5.6 million at June 30, 1995 to $8.9
million at March 31, 1996. These are loans which management has
identified through routine internal review procedures as having
possible credit problems which may cause the borrowers difficulty in
complying with current loan repayment terms. These loans are not
reflected in the non-performing loans. The main reason for the
increase in potential problem loans is the deterioration of the credit
quality of i) a commercial business located in Springfield, Missouri
of $2.6 million; ii) a residential development located in Branson,
Missouri of $1.1 million; iii) a residential development in
Springfield, Missouri of $1.6 million; offset by iv) the reduction of
$1.9 million in a condominium project in Branson, Missouri due to
collateral sales.
The allowance for loan losses at March 31, 1996 and June 30, 1995,
respectively, totaled $14.2 million and $14.6 million, representing
2.6% and 2.8% of total loans, 166% and 380% of non-performing loans,
and 81% and 154% of non-performing loans and potential problem loans
in total. The allowance for foreclosed asset losses totaled $986,000
and $900,000 at March 31, 1996 and June 30, 1995, respectively,
representing 17% and 10.4% of total foreclosed assets. Although the
Company maintains the allowance for loan losses and the allowance for
foreclosed asset losses at levels which it considers to be adequate to
provide for potential losses and selling expenses, there can be no
assurance that such losses will not exceed the estimated amounts,
thereby adversely affecting future results of operations.
17
Noninterest Income
Noninterest income increased $1.4 million, or 75%, and $2 million,
or 33%, respectively, in the three and nine months ended March 31,
1996 when compared to the same periods in 1995. The was primarily due
to: (i) an increase in income on foreclosed assets of $1 million and
$900,000 from the sale of the golf course property discussed above;
(ii) an increase in income of $600,000 in the nine month period from
the sale of available-for-sale securities; (iii) an increase in income
on sale of loans of $144,000 and $344,000 from increased fixed rate
loan production and sale; and (iv) modest increases and decreases in
other noninterest income items.
Noninterest Expense
Noninterest expense increased $581,000, or 15.7%, and $815,000, or
7.2%, respectively, in the three and nine months ended March 31, 1996
when compared to the same periods in 1995. The increase for the three
and nine month periods was due to increases in most major expense
categories primarily to support the growth of the Company as discussed
previously.
Provision for Income Taxes
Provision for income taxes as a percentage of pre-tax income
increased from 32% and 36%, respectively, in the three and nine months
ended March 31, 1995 to 34.8% and 38.1% in the three and nine months
ended March 31, 1996. The increase was due to changes in accrual
estimates.
18
Average Balances, Interest Rates and Yields
The following tables present for the periods indicated the total
dollar amount of interest income from average interest-earning assets
and the resultant yields, as well as the interest expense on average
interest-bearing liabilities, expressed both in dollars and rates, and
the net interest margin. The tables do not include noninterest-
bearing demand deposits and do not reflect any effect of income taxes.
Three Months Ended March 31 ,
---------------------------------------------------------
1996 1995
--------------------------- --------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ------ -------- -------- ------
(Dollars in thousands)
Interest-earning assets:
Loans receivable $543,695 $12,448 9.19% $501,542 $11,244 8.97%
Investment securities and other
interest-earning assets 76,192 1,005 5.28 71,517 972 5.44
------- ------ ---- ------- ------- ----
Total interest-earning assets $619,887 13,493 8.71 $573,059 12,216 8.53
======= ------ ---- ======= ------ ----
Interest-bearing liabilities:
Demand deposits $ 98,716 599 2.43 $ 99,416 585 2.35
Savings deposits 36,248 222 2.45 39,598 238 2.40
Time deposits 242,532 3,450 5.69 226,421 3,032 5.36
------- ----- ---- ------- ----- ----
Total deposits 377,496 4,271 4.53 365,435 3,855 4.22
FHLBank advances and other borrowings 194,447 2,860 5.88 161,410 2,478 6.14
------- ----- ---- ------- ----- ----
Total interest-bearing liabilities $571,943 7,131 4.99 $526,845 6,333 4.81
======= ----- ---- ======= ----- ----
Net interest income:
Interest rate spread $6,362 3.72% $5,883 3.72%
===== ==== ===== ====
Net interest margin(1) 4.11% 4.11%
==== ====
Average interest-earning assets to
average interest-bearing liabilities 108.4% 108.8%
===== =====
<FN>
(1) Defined as the Company's net interest income divided by total
interest-earning assets.
19
Nine Months Ended March 31 ,
---------------------------------------------------------
1996 1995
--------------------------- --------------------------
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
-------- -------- ------ -------- -------- ------
(Dollars in thousands)
Interest-earning assets:
Loans receivable $532,607 $37,110 9.29% $478,151 $31,567 8.80%
Investment securities and other
interest-earning assets 75,994 3,003 5.27 70,325 2,509 4.76
------- ------ ---- ------- ------- ----
Total interest-earning assets $608,601 40,113 8.79 $548,476 34,076 8.28
======= ------ ---- ======= ------ ----
Interest-bearing liabilities:
Demand deposits $101,191 1,849 2.44 $105,133 1,865 2.37
Savings deposits 37,071 691 2.49 41,812 769 2.45
Time deposits 238,546 10,264 5.74 215,164 7,951 4.93
------- ----- ---- ------- ----- ----
Total deposits 376,808 12,804 4.53 362,109 10,585 3.90
FHLBank advances and other borrowings 183,951 8,278 6.00 139,069 6,037 5.79
------- ------ ---- ------- ------ ----
Total interest-bearing liabilities $560,759 21,082 5.01 $501,178 16,622 4.42
======= ------ ---- ======= ------ ----
Net interest income:
Interest rate spread $19,031 3.78% $17,454 3.86%
====== ==== ====== ====
Net interest margin(1) 4.17% 4.24%
==== ====
Average interest-earning assets to
average interest-bearing liabilities 108.5% 109.4%
===== =====
<FN>
(1) Defined as the Company's net interest income divided by total
interest-earning assets.
20
Rate/Volume Analysis
The following schedule presents the dollar amount of changes in
interest income and interest expense for major components of interest-
earning assets and interest-bearing liabilities for the periods shown.
For each category of interest-earning assets and interest-bearing
liabilities, information is provided on changes attributable to (i)
changes in rate (i.e., changes in rate multiplied by old volume) and
(ii) changes in volume (i.e., changes in volume multiplied by old rate).
For purposes of this table, changes attributable to both rate and volume
which cannot be segregated have been allocated proportionately to volume
and to rate.
Three Months Ended March 31, Nine Months Ended March 31,
1996 vs. 1995 1996 vs. 1995
---------------------------- ---------------------------
Increase Increase
(Decrease) (Decrease)
Due to Total Due to Total
------------- Increase -------------- Increase
Rate Volume (Decrease) Rate Volume (Decrease)
---- ------ ---------- ------ ------ ----------
(Dollars in thousands) (Dollars in thousands)
Interest-earning assets:
Loans receivable $281 $ 963 $1,244 $1,814 $3,729 $5,543
Investment securities and
other interest-earning assets (27) 60 33 282 212 494
--- ----- ----- ----- ----- -----
Total interest-earning assets 254 1,023 1,277 2,096 3,941 6,037
--- ----- ----- ----- ----- -----
Interest-bearing liabilities:
Demand deposits 18 (4) 14 64 (80) (16)
Savings deposits 5 (21) (16) 11 (89) (78)
Time deposits 195 223 418 1,392 921 2,313
--- ----- ----- ----- ----- -----
Total deposits 218 198 416 1,467 752 2,219
FHLBank advances and other borrowings (98) 480 382 229 2,012 2,241
--- ----- ----- ----- ----- -----
Total interest-bearing liabilities 120 678 798 1,696 2,764 4,460
--- ----- ----- ----- ----- -----
Net interest income $134 $ 345 $ 479 $ 400 $1,177 $1,577
=== ===== ===== ===== ===== =====
21
LIQUIDITY AND CAPITAL RESOURCES
General
The Company's capital position remained strong, with stockholders'
equity at $66.7 million, or 10.1% of total assets of $659 million at
March 31, 1996 compared to equity at $63 million, or 10.1%, of total
assets of $622 million at June 30, 1995. In addition, the Bank exceeds
each of the regulatory capital requirements. At March 31, 1996, the
Bank had ratios of tangible and core capital to assets of 8.7% and risk-
based capital of 13.4%. Federal regulations at that date required
tangible, core and risk-based capital ratios of 1.5%, 3% and 8%,
respectively.
The Bank is required by regulation to maintain liquidity ratios at
certain levels. Currently, a minimum of 5% of the combined total of
deposits and short-term borrowings must be maintained in the form of
cash and eligible investments. The Bank has historically maintained its
liquidity ratio at a level in excess of that required. As of March 31,
1996, the Bank's liquidity ratio was 7.3%, compared to 4.7% at June 30,
1995. For further information on the June 30, 1995 liquidity, refer to
management's discussion and analysis included in the Company's annual
report Form 10-K for the year ended June 30, 1995. Management believes
that the Company has sufficient cash flows and borrowing capacity
available to meet its commitments and other foreseeable cash needs for
operations. At March 31, 1996, the Company had commitments of
approximately $69 million to fund loan originations, issued lines of
credit, outstanding letters of credit and unadvanced loans.
At March 31, 1996, the investment securities held to maturity
included $272,000 of gross unrealized gains and $32,000 of gross
unrealized losses related to securities intended to be held until
maturity. The unrealized gains and losses are not expected to have a
material effect on future earnings beyond the usual amortization of
acquisition premium or accretion of discount because no sale of the
investment portfolio is foreseen.
The Company's primary sources of funds are savings deposits, FHLBank
advances, other borrowings, loan repayments, proceeds from sales of
loans and investment securities and funds provided from operations. The
Company utilizes particular sources of funds based on the comparative
costs and availability at the time. The Company has from time to time
chosen not to pay rates on deposits as high as the rates paid by certain
of its competitors and, when necessary, supplement deposits with less
expensive alternative sources of funds.
22
STATEMENT OF CASH FLOWS
During the nine months ended March 31, 1996 and 1995, the Company had
positive cash flows from operating activities and positive cash flows
from financing activities. The Company experienced negative cash flows
from investing activities during the nine months ended March 31, 1996
and 1995.
Cash flows from operating activities for the periods covered by the
Statements of Cash Flows have been primarily related to adjustments in
deferred assets, credits and other liabilities, the provision for loan
losses and losses on foreclosed assets, depreciation, sale of foreclosed
assets and the amortization of deferred loan origination fees and
discounts (premiums) on loans and investments, all of which are non-cash
or non-operating adjustments to operating cash flows. As a result, net
income, adjusted for non-cash and non-operating items, was the primary
source of cash flows from operating activities. Operating activities
provided cash flows of $7.6 million and $5.7 million in cash during the
nine months ended March 31, 1996 and 1995, respectively.
During the nine months ended March 31, 1996 and 1995, investing
activities used cash of $29.6 million and $69.4 million, respectively,
primarily due to the net increase of loans in both periods.
Changes in cash flows from financing activities of the periods
covered by the Statements of Cash Flows are due to changes in deposits
after interest credited, changes in FHLBank advances and changes in
short-term borrowings as well as purchases of treasury stock and
dividend payments to stockholders. Financing activities provided $28.5
million and $68.2 million, respectively, in cash during the nine months
ended March 31, 1996 and 1995. Financing activities in the future are
expected to primarily include changes in deposits, changes in FHLBank
advances, and changes in short-term borrowings.
DIVIDENDS
During the nine months ended March 31, 1996, the Company declared and
paid dividends of $0.525 per share compared to dividends declared and
paid during the nine months ended March 31, 1995 of $0.45 per share.
The Board of Directors meets regularly to consider the level and the
timing of dividend payments.
23
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Registrant and its subsidiaries are involved as plaintiff or
defendant in various legal actions arising in the normal course of their
business. While the ultimate outcome of the various legal proceedings
involving the Registrant and its subsidiaries cannot be predicted with
certainty, it is the opinion of management, after consultation with
legal counsel, that these legal actions currently are not material to
the Registrant.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to Vote of Common Stockholders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
See the attached exhibit 11, Statement re computation of earnings
per share.
See the attached exhibit 27, Financial Data Schedule.
b) Reports on Form 8-K
None.
24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Great Southern Bancorp, Inc.
Registrant
Date: May 15, 1996 /s/ William V. Turner
--------------------------
William V. Turner
Chairman of the Board,
President and Chief
Executive Officer
Date: May 15, 1996 /s/ Don M. Gibson
--------------------------
Don M. Gibson,
Executive Vice President and
Chief Financial Officer
25
Exhibit 11- Statement Re Computation of Earnings Per Share
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
---------- ---------- ---------- ----------
Primary:
Average shares outstanding 4,450,812 4,526,196 4,417,438 4,604,392
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 136,348 161,998 131,954 162,460
--------- --------- --------- ---------
Primary shares 4,587,160 4,688,194 4,549,392 4,766,852
========= ========= ========= =========
Net income $3,220,413 $2,394,424 $8,583,029 $7,060,000
========= ========= ========= =========
Per share amount $0.70 $0.51 $1.89 $1.48
==== ==== ==== ====
Fully diluted:
Average shares outstanding 4,450,812 4,526,196 4,417,438 4,604,392
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 137,996 161,998 137,996 162,460
--------- --------- --------- ---------
Primary shares 4,588,808 4,688,194 4,555,434 4,766,852
========= ========= ======== =========
Net income $3,220,413 $2,394,424 $8,583,029 $7,060,000
========= ========= ========= =========
Per share amount $0.70 $0.51 $1.88 $1.48
==== ==== ==== ====
26
Exhibit Index
-------------
Exhibit
No. Description
- - ------- -----------
27 Financial Data Schedule, which is submitted electronically
to the Securities and Exchange Commission for information
only and not filed.