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Great Southern ends FDIC loss-share agreement

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Great Southern Bancorp Inc. (Nasdaq: GSBC) terminated a loss-share agreement with the Federal Deposit Insurance Corp.

The cancellation of the agreement means the FDIC will no longer cover $138.8 million in loans and $2.9 million in other real estate owned related to Great Southern’s 2012 FDIC-assisted purchase of Maple Grove, Minnesota-based Inter Savings Bank, according to a news release.

Under the agreement, the FDIC must now pay Great Southern $15 million to settle outstanding sums related to the loss-share agreement, company officials say. Loan yields will not be affected. Under loss-share agreements, the FDIC absorbs a portion of the loss on specified assets. The FDIC will agree to cancel the agreements if the terms are less costly than the continuing costs of covering the assets, according to FDIC.gov.

Great Southern expects to realize a one-time, after-tax gain of 35 cents per diluted share in the second quarter from the loss-share agreement termination. The company is scheduled to release its second-quarter earnings report on July 19.

The termination represents the last of four loss-share agreements related to FDIC-assisted acquisitions between 2009 and 2012. Previously exited agreements involved TeamBank, Vantus Bank and Sun Security Bank, according to the release.

Through its purchase of Inter Savings Bank, Great Southern gained four branches, $467 million in deposits, $403 million in loans and $11 million in other real estate owned, according to Springfield Business Journal archives.

GSBC shares were trading at $53.88 as of 9:02 a.m., compared with a 52-week range of $34.48 to $56.70.


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