Great Southern Bancorp's wholly owned subsidiary, Great Southern Bank, has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to terminates its loss sharing agreements related to the 2012 acquisition of certain assets and assumption of all deposits of Inter Savings Bank through an FDIC-assisted transaction.

The agreement requires the FDIC to pay $15.0 million to the Bank to settle all outstanding items related to the terminated loss sharing agreements. As a result of entering into the agreement, assets that were covered by the terminated loss sharing agreements, including covered loans in the amount of $138.8 million and covered other real estate owned in the amount of $2.9 million as of March 31, 2017, have been reclassified as non-covered assets, effective June 9, 2017.

Accordingly, in the second quarter of 2017, the Company expects to realize a one-time after-tax gain of approximately $0.35 per diluted common share, inclusive of the write-off of the remaining indemnification asset, other receivables from the FDIC and the Bank's clawback liability due to the FDIC. There will be no future effects on the Company's non-interest income (expense) related to adjustments or amortization of the indemnification asset and the related clawback liability for Inter Savings Bank. The remaining accretable yield adjustments that affect interest income are not changed by this transaction and will continue to be recognized for all of the Bank's FDIC-assisted transactions in the same manner as they have been previously.

The termination of the loss sharing agreements for the Inter Savings Bank transaction will have no impact on the yields for the loans that were previously covered under this agreement. All future recoveries, gains, losses and expenses related to these previously covered assets will now be recognized entirely by Great Southern Bank since the FDIC will no longer be sharing in such gains or losses. Accordingly, the Company's future earnings will be positively impacted to the extent the Company recognizes gains on any sales or recoveries in excess of the carrying value of such assets. Similarly, the Company's future earnings will be negatively impacted to the extent the Company recognizes expenses, losses or charge-offs related to such assets.  At June 9, 2017, the Company has discounts related to the loan pools totaling approximately $14.0 million which are available to absorb charge-offs.  Any future charge-offs exceeding that aggregate amount would impact the Company's allowance for loan losses.

This agreement terminates the last outstanding loss sharing agreements related to the Bank's four FDIC-assisted acquisitions from 2009 through 2012. In April 2016, the Company executed an agreement with the FDIC to terminate loss sharing agreements related to the FDIC-assisted acquisitions of TeamBank, Vantus Bank and Sun Security Bank. More information about that agreement can be found in the Company's Form 10-Q for the quarter ended March 31, 2016.

Headquartered in Springfield, Mo., Great Southern offers a broad range of banking services to customers. The Company operates 104 retail banking centers and more than 200 ATMs in Missouri, Arkansas, Iowa, Kansas, Minnesota and Nebraska and commercial lending offices in Chicago, Ill., Tulsa, Okla., and Dallas.