Great Southern Bancorp, Inc. Reports Quarterly Earnings

Financial Highlights for the Third Quarter and First Nine Months of 2008:

- The Company's and Bank's regulatory capital levels increased and both
entities remained 'well capitalized' as defined by the Federal banking
agencies' capital-related regulations as of September 30, 2008.

- The allowance for loan losses increased $3.9 million from December 31,
2007. The allowance as a percentage of total loans was 1.63% at
September 30, 2008, as compared to 1.49% at June 30, 2008, and 1.38% at
December 31, 2007.

- From year-end 2007, non-performing loans decreased $2.3 million and
foreclosed assets increased $12.4 million as part of the credit
resolution process. Potential problem loans decreased $14.3 million
from December 31, 2007.

- Net loans decreased $46.8 million, or 3.0%, from December 31, 2007,
primarily as a result of a reduction in outstanding construction and
land development loan balances, which were down $84.4 million from
year-end 2007. In addition, unfunded balances of construction and land
development loans decreased $170.7 million from $266.4 million at
December 31, 2007, to $95.7 million at September 30, 2008.

- Despite the competitive interest rate environment for deposits and
higher-than-normal relative LIBOR rates, the Company's net interest
margin declined by only seven basis points, or 2%, for the three months
ended September 30, 2008, compared to the same period in 2007.

- As part of the Company's on-going expense management, excluding
foreclosure losses and credit-related expenses, operational expense
items were down $643,000 in the third quarter 2008 compared to the
third quarter 2007.

SPRINGFIELD, Mo., Oct. 23 /PRNewswire-FirstCall/ -- Great Southern
Bancorp, Inc. (Nasdaq: GSBC), the holding company for Great Southern Bank,
today reported preliminary earnings for the quarter ended September 30, 2008,
were $.06 per diluted share, or $824,000, compared to the $.54 per diluted
share, or $7.3 million, the Company earned during the same quarter in the
prior year. The quarterly earnings were negatively impacted by the previously
announced write-down of the Company's investment in perpetual preferred stock
of Fannie Mae and Freddie Mac. This write-down amounted to $3.5 million, net
of applicable income taxes at a 35% rate. This write-down equates to
approximately $.26 per diluted share. The Company has not sold this investment
and carried the securities on its books at September 30, 2008, at a value of
$483,000, which was the value of the shares based on recent market trades at
that time.
Preliminary results for the nine months ended September 30, 2008, were a
loss of $.60 per diluted share, or $8.0 million loss, compared to the $1.67
per diluted share, or $22.9 million, the Company earned during the same period
in the prior year. Excluding the effects of the Company's hedge accounting
entries recorded, results for the nine months ended September 30, 2008 and
2007, were a loss of $.73 and income of $1.65 per diluted share, respectively.
In the March 31, 2008, quarter, the Company recorded a provision expense and
related charge-off of $35 million, equal to $1.70 per share (after tax),
related to a $30 million stock loan to a failed Arkansas-based bank holding
company and the under-collateralized portion of other associated loans
totaling $5 million (see the Company's Quarterly Report on Form 10-Q for March
31, 2008, for additional information). The year-to-date results were also
impacted by the investment write-down in the third quarter discussed above.
For the three months ended September 30, 2008, return on average equity
(ROAE) was 1.90%; return on average assets (ROAA) was 0.13%; and net interest
margin (NIM) was 3.13%. The non-cash amortization of prepaid broker fees to
originate certificates of deposit (which was recorded as part of the
accounting change in 2005) reduced net interest margin by 2 basis points (from
3.15%).
For the nine months ended September 30, 2008, ROAE was (5.86)%; ROAA was
(0.43)%; and NIM was 3.09%. The non-cash amortization of prepaid broker fees
to originate certificates of deposit (which was recorded as part of the
accounting change in 2005) reduced net interest margin by 14 basis points
(from 3.23%).
Great Southern President and CEO Joseph W. Turner commented, "The third
quarter write-down of the Fannie Mae and Freddie Mac preferred stock impacted
third quarter earnings by approximately $.26 per diluted share. While we are
disappointed with our earnings results, we are pleased with our fundamental
progress during this difficult economic cycle. Our capital and liquidity
levels continue to increase. We continue to diligently work through problem
assets, increase our allowance for loan losses, and contain core operating
expenses.
"Great Southern continues to maintain a very strong capital position,
which is categorized by regulators as 'well capitalized.' Our total
risk-based capital ratio increased from 11.37% at June 30, 2008, to 11.61% at
September 30, 2008. A total risk-based capital ratio of 10% or greater is
defined as 'well capitalized' by Federal regulatory agencies. The Company's
on-balance sheet and off-balance sheet liquidity levels increased and are
strong.
"Credit quality and the efficient resolution of credit issues is a top
priority. As anticipated, net loan balances declined during the third quarter
with decreases primarily in the construction and land development sector. We
experienced modest growth in single family residential loans, consumer loans
and commercial real estate. Non-performing assets remained elevated, but at
manageable levels, and will likely continue to be elevated into 2009. Compared
to year-end 2007, total classified assets decreased $4.2 million. The
allowance for loan losses increased $3.9 million from the end of 2007 to $29.4
million. The allowance for loan losses to total loans at September 30, 2008,
was 1.63%, which compares favorably with historical peer group averages."
Turner added, "The Company's on-going expense management showed positive
signs in the quarter. While overall expenses were up from the year-ago
quarter, the increase was mainly due to foreclosure and credit-related
expenses. Excluding these items, expenses were down $643,000.
"We will continue to proactively manage through the economic challenges
that have affected our industry. Our associates are focused on serving our
customers. We will continue to work to maintain strong capital and liquidity
levels and set aside appropriate reserves. Our goal remains steadfast even in
these trying times -- to position the Company for long-term growth and
increasing long-term shareholder value."

Selected Financial Data and Non-GAAP Reconciliation:
(Dollars in thousands)

Three Months Ended Nine Months Ended
September 30, 2008 September 30, 2008

Effect of Excluding Effect of Excluding
Hedge Hedge Hedge Hedge
Accounting Accounting Accounting Accounting
As Entries Entries As Entries Entries
Reported Recorded Recorded Reported Recorded Recorded

Net interest
income $18,367 $(139) $18,506 $54,341 $(2,472) $56,813
Provision for
loan losses 4,500 -- 4,500 47,200 -- 47,200
Non-interest
income 1,789 22 1,767 21,836 5,285 16,551
Non-interest
expense 14,650 -- 14,650 42,324 -- 42,324
Provision for
income taxes 182 41 223 (5,350) (985) (6,335)
Net income
(loss) $824 $(76) $900 $(7,997) $1,828 $(9,825)

Three Months Ended Nine Months Ended
September 30, 2007 September 30, 2007

Effect of Excluding Effect of Excluding
Hedge Hedge Hedge Hedge
Accounting Accounting Accounting Accounting
As Entries Entries As Entries Entries
Reported Recorded Recorded Reported Recorded Recorded

Net interest
income $17,932 $(206) $18,138 $53,606 $(649) $54,255
Provision for
loan losses 1,350 -- 1,350 4,125 -- 4,125
Non-interest
income 7,610 139 7,471 22,503 1,008 21,495
Non-interest
expense 13,320 -- 13,320 37,980 -- 37,980
Provision for
income taxes 3,555 23 3,578 11,144 (126) 11,018
Net income $7,317 $(44) $7,361 $22,860 $233 $22,627

Selected Financial Data and Non-GAAP Reconciliation:

Three Months Ended September 30,
2008 2007
Dollars Earnings Dollars Earnings
(000) Per Share (000) Per Share
Reported Earnings $824 $.06 $7,317 $.54

Amortization of deposit
broker origination fees
(net of taxes) 90 .01 134 .01

Net change in fair value
of interest rate swaps
and related deposits
(net of taxes) (14) -- (90) (.01)

Earnings excluding impact
of hedge accounting
entries $900 $.07 $7,361 $.54

Nine Months Ended September 30,
2008 2007
Dollars Earnings Dollars Earnings
(000) Per Share (000) Per Share
Reported Earnings $(7,997) $(.60) $22,860 $1.67

Amortization of deposit
broker origination fees
(net of taxes) 1,607 .12 422 .03

Net change in fair value
of interest rate swaps
and related deposits
(net of taxes) (3,435) (.25) (655) (.05)

Earnings excluding impact
of hedge accounting
entries $(9,825) $(.73) $22,627 $1.65

NET INTEREST INCOME
Including the impact of the accounting entries recorded for certain
interest rate swaps, net interest income for the third quarter of 2008
increased $435,000 to $18.4 million compared to $17.9 million for the third
quarter of 2007. Net interest margin was 3.13% in the quarter ended September
30, 2008, compared to 3.20% in the same period in 2007, a decrease of seven
basis points. Excluding the impact of the accounting entries recorded for
certain interest rate swaps (amortization of deposit broker origination fees),
economically, net interest income for the third quarter of 2008 increased
$368,000 to $18.5 million compared to $18.1 million for the third quarter of
2007. Net interest margin excluding the effects of the accounting change was
3.15% in the quarter ended September 30, 2008, compared to 3.23% in the
quarter ended September 30, 2007.
Part of the decrease in net interest margin resulted from the decision by
the Company to increase the amount of longer-term brokered certificates of
deposit in the first nine months of 2008 to provide liquidity for operations
and to maintain in reserve its available secured funding lines with the
Federal Home Loan Bank (FHLBank) and the Federal Reserve Bank. In the first
nine months of 2008, the Company issued approximately $292 million of new
brokered certificates which are fixed rate certificates with maturity terms of
generally two to four years, which the Company (at its discretion) may redeem
at par generally after six months. In addition in the same period, the Company
issued approximately $87 million of new brokered certificates, which are fixed
rate certificates with maturity terms of generally two to four years, which
the Company may not redeem prior to maturity. There are no interest rate swaps
associated with these brokered certificates. These longer-term certificates
carry an interest rate that is approximately 150 basis points higher than the
interest rate that the Company would have paid if it instead utilized short-
term advances from the FHLBank. The Company decided the higher rate was
justified by the longer term and the ability to keep committed funding lines
available. The net interest margin was also negatively impacted as the Company
originated some of the new certificates in advance of the anticipated
terminations of the existing certificates, thereby causing the Company to have
excess funds for a period of time. These excess funds were invested in short-
term cash equivalents at rates that at times caused the Company to earn a
negative spread. Partially offsetting the increase in brokered CDs, several
existing brokered certificates were redeemed by the Company in the first half
of 2008 as the related interest rate swaps were terminated by the swap
counterparties. These redeemed certificates had effective interest rates
through the interest rate swaps of approximately 90-day LIBOR. Interest rate
swap notional amounts have decreased from $419 million at December 31, 2007,
to $38 million at September 30, 2008.
Another factor that continues to negatively impact net interest income is
the elevated level of LIBOR interest rates compared to Federal Funds rates as
a result of credit and liquidity concerns in financial markets. These LIBOR
interest rates were elevated approximately 50-60 basis points compared to
historical averages versus the stated Federal Funds rate for most of the three
months ended September 30, 2008. In the latter portion of September 2008 and
so far into October 2008, LIBOR rates have spiked even higher in comparison to
the stated Federal Funds rate. These LIBOR interest rates are elevated over
200 basis points compared to historical averages. The Company has interest
rate swaps and other borrowings that are indexed to LIBOR, thereby causing
increased funding costs. Funding costs related to brokered certificates of
deposit have also been elevated due to competition by issuers seeking to
generate significant funding.
The Federal Reserve most recently cut interest rates on October 8, 2008.
Great Southern has a significant portfolio of loans which are tied to a "prime
rate" of interest. Some of these loans are tied to some national index of
"prime," while most are indexed to "Great Southern prime." The Company has
elected to leave its "prime rate" of interest at 5.00% in light of the current
highly competitive funding environment for deposits, including LIBOR rates
that have been well over 4.00%. This does not affect a large number of
customers as a majority of the loans indexed to "Great Southern prime" are
already at interest rate floors which are provided for in individual loan
documents. A rate cut by the Federal Reserve generally would have an
anticipated immediate negative impact on the Company's net interest income due
to the large total balance of loans which generally adjust immediately as
Federal Funds adjust. Because the Federal Funds rate is already very low,
there may also be a negative impact on the Company's net interest income due
to the Company's inability to lower its funding costs in the current
environment. Usually any negative impact is expected to be offset over the
following 60- to 120-day period, and subsequently is expected to have a
positive impact, as the Company's interest rates on deposits, borrowings and
interest rate swaps would normally also go down as a result of a reduction in
interest rates by the Federal Reserve, assuming normal credit, liquidity and
competitive loan and deposit pricing pressures. Any anticipated positive
impact will likely be reduced by the change in the funding mix noted above, as
well as retail deposit competition in the Company's market areas.
For the three months ended September 30, 2008, and 2007, interest income
was reduced $352,000 and $659,000, respectively, due to the reversal of
accrued interest on loans which were added to non-performing status during the
quarter. For the nine months ended September 30, 2008, and 2007, interest
income was reduced $1.0 million and $1.2 million, respectively, due to the
reversal of accrued interest on loans which were added to non-performing
status during the period. Partially offsetting this, the Company collected
interest which was previously charged off in the amount of $0 and $76,000 in
the three months ended September 30, 2008, and 2007, respectively, and $78,000
and $183,000 in the nine months ended September 30, 2008, and 2007,
respectively.
Including the impact of the accounting entries recorded for certain
interest rate swaps, net interest income for the first nine months of 2008
increased $735,000 to $54.3 million compared to $53.6 million for the first
nine months of 2007. Net interest margin was 3.09% in the nine months ended
September 30, 2008, compared to 3.28% in the same period in 2007, a decrease
of 19 basis points.
Excluding the impact of the accounting entries recorded for certain
interest rate swaps, economically, net interest income for the first nine
months of 2008 increased $2.5 million to $56.8 million compared to $54.3
million for the first nine months of 2007. Net interest margin excluding the
effects of the accounting change was 3.23% in the nine months ended September
30, 2008, compared to 3.32% in the nine months ended September 30, 2007, a
decrease of nine basis points.

Non-GAAP Reconciliation:

Three Months Ended September 30,
2008 2007
Dollars Dollars
(000) % (000) %
Net Interest Income/
Margin $18,367 3.13% $17,932 3.20%

Amortization of deposit
broker origination fees 139 .02 206 .03

Net interest income/
margin excluding impact
of hedge accounting
entries $18,506 3.15% $18,138 3.23%

Nine Months Ended September 30,
2008 2007
Dollars Dollars
(000) % (000) %

Net Interest Income/
Margin $54,341 3.09% $53,606 3.28%

Amortization of deposit
broker origination fees 2,472 .14 649 .04

Net interest income/
margin excluding impact
of hedge accounting
entries $56,813 3.23% $54,255 3.32%

For additional information on net interest income components, refer to
"Average Balances, Interest Rates and Yields" table in this release. This
table is prepared including the impact of the accounting changes for interest
rate swaps.
NON-INTEREST INCOME
Non-interest income for the third quarter of 2008 was $1.8 million
compared with $7.6 million for the third quarter of 2007, or a decrease of
$5.8 million. This decrease in non-interest income was primarily the result of
the impairment write-down in value of the Company's investments in available-
for-sale Fannie Mae and Freddie Mac perpetual preferred stock. This write-down
totaled $5.3 million on a pre-tax basis. As previously reported in the
Company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2008,
the Company's investments in Fannie Mae and Freddie Mac securities were
included in securities available for sale at a cost of $4.0 million and $1.8
million, respectively. These securities have recently traded at 5 to 10
percent of par value and are currently not expected to pay dividends. It is
unclear if or when the values of such investment securities will improve, or
whether such values will deteriorate further. Based on these developments,
the Company recorded an other-than-temporary impairment. The Company does not
own any other equity securities issued by Fannie Mae or Freddie Mac.
Excluding the securities loss discussed above, non-interest income for the
third quarter of 2008 was $7.1 million compared with $7.6 million for the
third quarter of 2007, or a decrease of $491,000. Third quarter 2008
commission income from the Company's travel, insurance and investment
divisions decreased $471,000, or 19.3%, compared to the same period in 2007.
Part of this decrease was in the investment division as a result of the
alliance formed with Ameriprise Financial Services through Penney, Murray and
Associates. As a result of this change, Great Southern now records most of its
investment services activity on a net basis in non-interest income. Thus,
non-interest expense related to the investment services division is also
reduced. The Company's travel division also experienced a decrease in
commission income. Customers are reducing their travel in light of current
economic conditions. The net realized gains on loan sales increased $122,000,
or 49.4%, in the third quarter of 2008 compared to the third quarter of 2007.
The gain on loan sales was mainly due to a higher volume of fixed-rate
residential mortgage loan originations, which the Company typically sells in
the secondary market. Income from charges on deposit accounts and fees from
ATM and debit card usage increased $250,000, or 6.5%, in the three months
ended September 30, 2008 compared to the same period in 2007. Late charges and
other fees on loans decreased $111,000 in the three months ended September 30,
2008 compared to the same period in 2007. Non-interest income was also lower
due to the change in the fair value of certain interest rate swaps and the
related change in fair value of hedged deposits, which resulted in an increase
of $32,000 in the three months ended September 30, 2008, and an increase of
$157,000 in the three months ended September 30, 2007.
Including the securities loss discussed above, non-interest income for the
first nine months of 2008 was $21.8 million compared with $22.5 million for
the first nine months of 2007, or a decrease of $667,000. Excluding the
securities loss discussed above, non-interest income for the first nine months
of 2008 was $27.1 million compared with $22.5 million for the first nine
months of 2007, or an increase of $4.6 million. A significant portion of this
increase in non-interest income was due to the change in the fair value of
certain interest rate swaps and the related change in fair value of hedged
deposits, which resulted in an increase of $5.3 million in the nine months
ended September 30, 2008, and an increase of $843,000 in the nine months ended
June 30, 2007. Year-to-date September 30, 2008, commission income from the
Company's travel, insurance and investment divisions decreased $629,000, or
8.2%, compared to the same period in 2007. This decrease was primarily in the
investment division as a result of the alliance formed with Ameriprise
Financial Services described above. The Company's travel division also
experienced a decrease in commission income as discussed above. The net
realized gains on loan sales increased $445,000, or 65.2%, in the nine months
ended September 30, 2008, compared to the same period in 2007. The gain on
loan sales was mainly due to a higher volume of fixed-rate residential
mortgage loan originations, which the Company typically sells in the secondary
market. Income from charges on deposit accounts and fees from ATM and debit
card usage increased $333,000, or 3.0%, in the nine months ended September 30,
2008, compared to the same period in 2007.
NON-INTEREST EXPENSE
Non-interest expense for the third quarter of 2008 was $14.6 million
compared with $13.3 million for the third quarter of 2007, or an increase of
$1.3 million, or 10.0%. The Company's efficiency ratio for the quarter ended
September 30, 2008, was 72.68% compared to 52.15% in the same quarter in 2007.
The efficiency ratio in the third quarter 2008 and year-to-date was primarily
negatively impacted by the investment write-down recorded by the Company. The
third quarter 2008 efficiency ratio was also negatively impacted by increased
expenses related to foreclosures. These efficiency ratios include the impact
of the hedge accounting entries for certain interest rate swaps. Excluding the
effects of these entries, the efficiency ratio for the third quarter of 2008
was 72.26% compared to 52.01% in the same period in 2007. The Company's ratio
of non-interest expense to average assets decreased from 2.24% for the three
months ended September 30, 2007, to 2.07% for the three months ended September
30, 2008, due to the Company's ongoing cost management efforts.
Non-interest expense for the first nine months of 2008 was $42.3 million
compared with $38.0 million for the first nine months of 2007, or an increase
of $4.3 million, or 11.4%. The Company's efficiency ratio for the nine months
ended September 30, 2008, was 55.56% compared to 49.90% in the same period in
2007. These efficiency ratios include the impact of the hedge accounting
entries for certain interest rate swaps. Excluding the effects of these
entries, the efficiency ratio for the first nine months of 2008 was 57.69%
compared to 50.14% in the same period in 2007. The Company's ratio of
non-interest expense to average assets decreased from 2.16% for the nine
months ended September 30, 2007, to 2.13% for the nine months ended September
30, 2008.
In 2007, the Federal Deposit Insurance Corporation (FDIC) began to once
again assess insurance premiums on insured institutions. Under the new pricing
system, institutions in all risk categories, even the best rated, are charged
an FDIC premium. Great Southern received a deposit insurance credit as a
result of premiums previously paid. The Company's credit offset assessed
premiums for the first half of 2007, but premiums were owed by the Company in
the latter half of 2007 and into 2008. The Company incurred additional deposit
insurance expense of $39,000 in the third quarter of 2008 compared to the same
period in 2007, and the Company expects a similar expense in subsequent
quarters. For the nine months ended September 30, 2008, compared to the same
period in 2007, the Company incurred additional deposit insurance expense of
$753,000.
Due to increases in the level of foreclosed assets, foreclosure-related
expenses in the third quarter of 2008 were higher than the comparable 2007
period by approximately $1.7 million. Similarly, foreclosure-related expenses
increased $2.2 million in the nine months ended September 30, 2008, compared
to the same period in 2007. In the three months ended September 30, 2008, the
Company recorded write-downs totaling approximately $1.1 million on four
unrelated foreclosed properties. Two of these properties are under contract to
be sold.
In addition to the expense increases noted above, the Company's increase
in non-interest expense in the first nine months of 2008 compared to the same
periods in 2007 related to the continued growth of the Company. Late in the
first quarter of 2007, Great Southern completed its acquisition of a travel
agency in St. Louis. In addition since June 2007, the Company opened banking
centers in Springfield, Mo. and Branson, Mo. In the nine months ended
September 30, 2008, compared to the nine months ended September 30, 2007, non-
interest expenses increased $600,000 related to the ongoing operations of
these entities.

Non-GAAP Reconciliation:

Three Months Ended September 30,
2008 2007
Non-Interest Revenue Non-Interest Revenue
Expense Dollars* Expense Dollars*
(000) (000) % (000) (000) %
Efficiency Ratio $14,650 $20,156 72.68% $13,320 $25,542 52.15%

Amortization of
deposit broker
origination fees -- 139 (.50) -- 206 (.42)

Net change in fair
value of interest
rate swaps and
related deposits -- (22) .08 -- (139) .28

Efficiency ratio
excluding impact
of hedge
accounting
entries $14,650 $20,273 72.26% $13,320 $25,609 52.01%

* Net interest income plus non-interest income.

Nine Months Ended September 30,
2008 2007
Non-Interest Revenue Non-Interest Revenue
Expense Dollars* Expense Dollars*
(000) (000) % (000) (000) %
Efficiency Ratio $42,324 $76,177 55.56% $37,980 $76,109 49.90%

Amortization of
deposit broker
origination fees -- 2,472 (1.87) -- 649 (.43)

Net change in fair
value of interest
rate swaps and
related deposits -- (5,285) 4.00 -- (1,008) .67

Efficiency ratio
excluding impact
of hedge
accounting
entries $42,324 $73,364 57.69% $37,980 $75,750 50.14%

* Net interest income plus non-interest income.

INCOME TAXES
For the three months ended September 30, 2008, the Company's effective tax
rate was lower than normal at 18.1%, primarily due to the lower pre-tax income
during this period. For the nine months ended September 30, 2008, the
Company's effective tax benefit rate was 40.1%.
CAPITAL
As of September 30, 2008, stockholders' equity was $168.8 million (6.7% of
total assets), equivalent to a book value of $12.61 per share. Stockholders'
equity at December 31, 2007, was $189.9 million (7.8% of total assets),
equivalent to a book value of $14.17 per share. As of September 30, 2008, the
Company's and the Bank's regulatory capital levels were categorized as "well
capitalized" as defined by the Federal banking agencies' capital-related
regulations. On September 30, 2008, and on a preliminary basis, the Bank's
Tier 1 leverage ratio was 8.10%, Tier 1 risk-based capital ratio was 10.26%,
and total risk-based capital ratio was 11.52%. On September 30, 2008, and on a
preliminary basis, the Company's Tier 1 leverage ratio was 8.18%, Tier 1 risk-
based capital ratio was 10.36%, and total risk-based capital ratio was 11.61%.
PROVISION FOR LOAN LOSSES AND ALLOWANCE FOR LOAN LOSSES
The provision for loan losses increased $3.1 million, from $1.4 million
during the three months ended September 30, 2007, to $4.5 million during the
three months ended September 30, 2008. The provision for loan losses increased
$43.1 million, from $4.1 million during the nine months ended September 30,
2007, to $47.2 million during the nine months ended September 30, 2008. See
the Company's Quarterly Report on Form 10-Q for March 31, 2008 for additional
information regarding the large provision for loan losses in the first quarter
of 2008. The allowance for loan losses increased $3.9 million, or 15.4%, to
$29.4 million at September 30, 2008, compared to $25.5 million at December 31,
2007. Net charge-offs were $2.4 million in the three months ended September
30, 2008, versus $1.9 million in the three months ended September 30, 2007.
Four relationships make up $1.2 million of the net charge-off total for the
2008 third quarter. Three of these relationships were transferred to non-
performing loans, and the remaining one relationship was completely charged
off. Net charge-offs were $43.3 million in the nine months ended September 30,
2008, versus $4.3 million in the nine months ended September 30, 2007. The
increase in charge-offs for the nine months ended September 30, 2008, was due
principally to the $35 million which was provided for and charged off in the
quarter ended March 31, 2008, related to the Company's loans to the Arkansas-
based bank holding company and related loans to individuals described in the
Company's Quarterly Report on Form 10-Q for March 31, 2008. In addition,
general market conditions, and more specifically, housing supply, absorption
rates and unique circumstances related to individual borrowers and projects
also contributed to increased provisions and charge-offs. As properties were
transferred into foreclosed assets, evaluations were made of the value of
these assets with corresponding charge-offs as appropriate.
Management records a provision for loan losses in an amount it believes
sufficient to result in an allowance for loan losses that will cover current
net charge-offs as well as risks believed to be inherent in the loan portfolio
of the Bank. The amount of provision charged against current income is based
on several factors, including, but not limited to, past loss experience,
current portfolio mix, actual and potential losses identified in the loan
portfolio, economic conditions, regular reviews by internal staff and
regulatory examinations.
Weak economic conditions, higher inflation or interest rates, or other
factors may lead to increased losses in the portfolio and/or requirements for
an increase in loan loss provision expense. Management has established various
controls in an attempt to limit future losses, such as a watch list of
possible problem loans, documented loan administration policies and a loan
review staff to review the quality and anticipated collectability of the
portfolio. Management determines which loans are potentially uncollectible, or
represent a greater risk of loss, and makes additional provisions to expense,
if necessary, to maintain the allowance at a satisfactory level.
The Bank's allowance for loan losses as a percentage of total loans was
1.63%, 1.49% and 1.38% at September 30, 2008, June 30, 2008 and December 31,
2007, respectively. Management considers the allowance for loan losses
adequate to cover losses inherent in the Company's loan portfolio at this
time, based on recent internal and external reviews of the Company's loan
portfolio and current economic conditions. If economic conditions remain weak
or deteriorate significantly, it is possible that additional loan loss
provisions would be required, thereby adversely affecting future results of
operations and financial condition.
ASSET QUALITY
As a result of changes in balances and composition of the loan portfolio,
changes in economic and market conditions that occur from time to time, and
other factors specific to a borrower's circumstances, the level of
non-performing assets will fluctuate. Non-performing assets at September 30,
2008, were $66.0 million, up $0.1 million from June 30, 2008, and up $10.1
million from December 31, 2007. Non-performing assets as a percentage of
total assets were 2.61% at September 30, 2008, compared to 2.30% at December
31, 2007. Compared to December 31, 2007, non-performing loans decreased $2.3
million to $33.2 million while foreclosed assets increased $12.4 million to
$32.8 million. Commercial real estate, construction and business loans
comprised $30.1 million, or 91%, of the total $33.2 million of non-performing
loans at September 30, 2008.
Non-performing Loans. Compared to June 30, 2008, non-performing loans
increased $0.3 million to $33.2 million. Increases in non-performing loans
during the quarter ended September 30, 2008, were primarily due to the
addition of four loan relationships to the Non-performing Loans category:
-- A $2.5 million loan relationship, which is secured primarily by an
office and residential historic rehabilitation project in St. Louis.
This relationship was charged down approximately $250,000 upon transfer
to non-performing loans.
-- A $3.0 million loan relationship, which is secured primarily by a
condominium development in Kansas City. Some sales occurred during
2007, with the outstanding balance decreasing $1.9 million in 2007.
However, no sales have occurred in 2008. This relationship was charged
down approximately $285,000 upon transfer to non-performing loans.
-- A $1.9 million loan relationship, which is secured primarily by a
residential subdivision development and developed lots in various
subdivisions in Springfield, Mo.
-- A $1.2 million loan relationship, which is primarily secured by lots,
houses and duplexes for resale in the Joplin, Mo., area.

Partially offsetting these increases in non-performing loans were the
following decreases to non-performing loans during the three months ended
September 30, 2008:
-- The primary collateral underlying a $2.7 million loan relationship, a
motel in the State of Florida, was sold by the borrower during the
third quarter of 2008. The Company received a principal reduction on
the debt and financed the new owner.
-- A portion of the primary collateral underlying a $2.6 million loan
relationship, the borrowers' interest in a publicly regulated entity,
was sold by the borrower during the third quarter 2008. The borrower
sold a two-thirds interest in the entity and the new owner assumed the
debt with the Company.
-- The primary collateral underlying a $900,000 loan relationship,
completed houses used as rental properties in Springfield, was
foreclosed during the third quarter of 2008. These houses were
subsequently sold.
-- The primary collateral underlying a $1.7 million loan relationship,
anticipated tax refunds, was reduced by $1.0 million in the three
months ended September 30, 2008, by receipt of a portion of these tax
refunds.
-- Various other significant non-performing loans were further reduced
through charge-offs of approximately $672,000.

At September 30, 2008, six significant loan relationships accounted for
$20.0 million of the total non-performing loan balance of $33.2 million. In
addition to the four new relationships noted above, two other significant loan
relationships were previously included in Non-performing Loans and remained
there at September 30, 2008. These two relationships are described below:
-- A $9.2 million loan relationship, which is secured by a condominium and
retail historic rehabilitation development in St. Louis. The original
relationship has been reduced through the receipt of a portion of the
Federal and State historic tax credits expected to be received by the
Company in 2008. Upon receipt of the remaining Federal and State tax
credits, the Company expects to reduce the balance of this relationship
to approximately $5.0 million, the value of which is substantiated by a
recent appraisal. In October 2008, the balance outstanding was reduced
$1.4 million due to receipt of Tax Increment Financing funds. The
Company expects to remove this relationship from loans and hold it as a
real estate asset once the tax credit process is completed. To date,
five of the ten residential units are leased. The retail space is not
leased at this time. This relationship was described more fully in the
Company's 2007 Annual Report on Form 10-K under "Non-performing
Assets."
-- A $2.3 million loan relationship, which is secured primarily by
commercial land to be developed into commercial lots in Northwest
Arkansas. This relationship was previously described in the Company's
June 30, 2008 Quarterly Report on Form 10-Q under "Non-performing
Assets."

Potential Problem Loans. Potential problem loans decreased $8.3 million
during the three months ended September 30, 2008, from $24.4 million at June
30, 2008, to $16.1 million at September 30, 2008. In addition, potential
problem loans decreased $14.3 million from December 31, 2007. Potential
problem loans are loans which management has identified as having possible
credit problems that may cause the borrowers difficulty in complying with
current repayment terms. These loans are not reflected in the non-performing
assets. During the three months ended September 30, 2008, Potential Problem
Loans increased primarily due to the addition of two unrelated relationships
totaling $3.6 million to the Potential Problem Loans category. These two
additional relationships include: a $2.5 million relationship primarily
secured by an office building and vacant land to be used for commercial
development near Springfield, Mo.; and a $1.2 million relationship primarily
secured by eight single-family houses which were constructed for sale in
Northwest Arkansas. Decreases totaling $10.9 million in Potential Problem
Loans resulted from the transfer of four unrelated relationships described
above to the Non-performing Loans category.
Foreclosed Assets. Foreclosed assets decreased $0.2 million during the
three months ended September 30, 2008, from $33.0 million at June 30, 2008, to
$32.8 million at September 30, 2008. Compared to a balance of $20.4 million at
December 31, 2007, foreclosed assets increased $12.4 million. During the three
months ended September 30, 2008, foreclosed assets increased primarily due to
the addition of several smaller relationships that involve houses which are
completed and for sale or under construction, as well as developed subdivision
lots, partially offset by the sale of similar houses and subdivision lots.
At September 30, 2008, eight separate relationships comprise $22.1
million, or 67%, of the total foreclosed assets balance. These eight
relationships were described more fully in the Company's June 30, 2008
Quarterly Report on Form 10-Q under "Foreclosed Assets."
BUSINESS INITIATIVES
The Company is expanding its retail banking center network in the St.
Louis and Kansas City metropolitan regions. This is part of the Company's
overall long-term plan to open two to three banking centers per year as market
conditions warrant. The Company's first retail banking center in the St. Louis
market is expected to open in 2009. Located in Creve Coeur, Mo., the full-
service banking center will complement a loan production office and a Great
Southern Travel office already in operation in this market. Construction will
be underway soon on a second banking center in the Lee's Summit, Mo., market,
a suburb of Kansas City. The banking center should be completed in 2009 and
will enhance access and service to Lee's Summit-area customers. Great Southern
opened its first Lee's Summit retail location in 2006.
The common stock of Great Southern Bancorp, Inc., is quoted on the Nasdaq
Global Select Market System under the symbol "GSBC". The last reported sale
price of GSBC stock in the quarter ended September 30, 2008, was $12.75.
Great Southern offers a broad range of banking, investment, insurance and
travel services to customers and clients. Headquartered in Springfield, Mo.,
Great Southern operates 39 banking centers and 180 ATMs in Missouri. The
Company also serves lending needs through loan production offices in Overland
Park, Kan., Rogers, Ark., and St. Louis.
http://www.greatsouthernbank.com
Forward-Looking Statements
When used in future filings by the Company with the Securities and
Exchange Commission (the "SEC"), in the Company's press releases or other
public or shareholder communications, and in oral statements made with the
approval of an authorized executive officer, the words or phrases "will likely
result" "are expected to," "will continue," "is anticipated," "estimate,"
"project," "intends" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to certain risks
and uncertainties, including, among other things, changes in economic
conditions in the Company's market area, changes in policies by regulatory
agencies, fluctuations in interest rates, the risks of lending and investing
activities, including changes in the level and direction of loan delinquencies
and write-offs and changes in estimates of the adequacy of the allowance for
loan losses, the Company's ability to access cost-effective funding,
fluctuations in real estate values and both residential and commercial real
estate market conditions, demand for loans and deposits in the Company's
market area and competition, that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to advise readers that the factors listed above
could affect the Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current statements.
The Company does not undertake -- and specifically declines any obligation
-- to publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.
The following tables set forth certain selected consolidated financial
information of the company at and for the periods indicated. Financial data
for all periods is unaudited. In the opinion of management, all adjustments,
which consist only of normal recurring accruals, necessary for a fair
presentation of the results for and at such unaudited periods have been
included. The results of operations and other data for the three and nine
months ended September 30, 2008 and 2007 are not necessarily indicative of the
results of operations, which may be expected for any future period.

Selected Financial Condition
Data: September 30, December 31, June 30,
2008 2007 2008
(Dollars in thousands)
Total assets $2,527,912 $2,431,732 $2,487,082
Loans receivable, gross 1,795,962 1,838,853 1,821,753
Allowance for loan losses 29,379 25,459 27,242
Foreclosed assets, net 32,810 20,399 33,032
Available-for-sale securities,
at fair value 505,715 425,028 460,493
Deposits 1,854,474 1,763,146 1,861,832
Total borrowings 485,569 461,517 435,869
Stockholders' equity 168,784 189,871 172,085
Non-performing assets 66,035 55,874 65,892

Three Months Nine Months Three Months
Ended Ended Ended
September 30, September 30, June 30,
2008 2007 2008 2007 2008
Selected Operating Data: (Dollars in thousands)
Interest income $35,024 $41,976 $109,028 $123,138 $35,664
Interest expense 16,657 24,044 54,687 69,532 17,533
Net interest income 18,367 17,932 54,341 53,606 18,131
Provision for loan
losses 4,500 1,350 47,200 4,125 4,950
Non-interest income 1,789 7,610 21,836 22,503 9,864
Non-interest expense 14,650 13,320 42,324 37,980 13,557
Provision (credit)
for income taxes 182 3,555 (5,350) 11,144 3,156
Net income (loss) $824 $7,317 $(7,997) $22,860 $6,332

At or For The At or For The At or For The
Three Months Nine Months Three Months
Ended Ended Ended
September 30, September 30, June 30,
2008 2007 2008 2007 2008
Per Common Share:
Net income (loss)
(fully diluted) $.06 $.54 $(.60) $1.67 $.47
Book value $12.61 $13.79 $12.61 $13.79 $12.86

Earnings Performance Ratios:
Annualized return on
average assets .13% 1.24% (.43)% 1.31% 1.00%
Annualized return on
average stockholders'
equity 1.90% 15.75% (5.86)% 16.57% 14.13%
Net interest margin 3.13% 3.20% 3.09% 3.28% 3.07%
Net interest margin
excluding hedge acctg.
entries 3.15% 3.23% 3.23% 3.32% 3.23%
Average interest rate
spread 2.87% 2.66% 2.80% 2.74% 2.82%
Efficiency ratio 72.68% 52.15% 55.56% 49.90% 48.43%
Non-interest expense to
average total assets 2.07% 2.24% 2.13% 2.16% 210%

Asset Quality Ratios:
Allowance for loan losses
to period-end loans 1.63% 1.45% 1.63% 1.45% 1.49%
Non-performing assets to
period-end assets 2.61% 2.10% 2.61% 2.10% 2.65%
Non-performing loans to
period-end loans 1.84% 1.92% 1.84% 1.92% 1.79%
Annualized net charge-
offs to average loans .51% .43% 3.10% .32% .90%

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except number of shares)

September 30, December 31, June 30,
2008 2007 2008
(Unaudited) (Unaudited)
ASSETS
Cash $56,020 $79,552 $73,595
Interest-bearing deposits in
other financial institutions 67,008 973 25,956

Cash and cash equivalents 123,028 80,525 99,551
Available-for-sale securities 505,715 425,028 460,493
Held-to-maturity securities
(fair value $1,443 - September
2008; $1,508 - December 2007) 1,360 1,420 1,360
Mortgage loans held for sale 5,184 6,717 9,085
Loans receivable, net of
allowance for loan losses of
$29,379 - September 2008;
$25,459 - December 2007 1,766,583 1,813,394 1,794,511
Interest receivable 12,103 15,441 13,109
Prepaid expenses and other
assets 17,666 14,904 13,868
Foreclosed assets held for
sale, net 32,810 20,399 33,032
Premises and equipment, net 29,954 28,033 29,546
Goodwill and other intangible
assets 1,737 1,909 1,792
Investment in Federal Home Loan
Bank stock 8,448 13,557 9,294
Refundable income taxes 7,252 1,701 9,578
Deferred income taxes 16,072 8,704 11,863

Total Assets $2,527,912 $2,431,732 $2,487,082

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $1,854,474 $1,763,146 $1,861,832
Securities sold under reverse
repurchase agreements with
customers 229,274 143,721 186,736
Federal Home Loan Bank advances 122,847 213,867 123,031
Structured repurchase agreements 50,000 -- --
Short-term borrowings 52,519 73,000 95,173
Subordinated debentures issued
to capital trust 30,929 30,929 30,929
Accrued interest payable 8,882 6,149 7,450
Advances from borrowers for
taxes and insurance 1,232 378 1,017
Accounts payable and accrued
expenses 8,971 10,671 8,829

Total Liabilities 2,359,128 2,241,861 2,314,997

Stockholders' Equity:
Capital stock
Serial preferred stock, $.01
par value; authorized
1,000,000 shares; none issued -- -- --
Common stock, $.01 par value;
authorized 20,000,000 shares;
issued and outstanding
September 2008 - 13,380,969
shares; December 2007 -
13,400,197 shares 134 134 134
Additional paid-in capital 19,693 19,342 19,576
Retained earnings 155,329 170,933 156,913
Accumulated other comprehensive
income (loss) (6,372) (538) (4,538)

Total Stockholders' Equity 168,784 189,871 172,085

Total Liabilities and
Stockholders' Equity $2,527,912 $2,431,732 $2,487,082

GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

THREE MONTHS NINE MONTHS THREE MONTHS
ENDED ENDED ENDED
September 30, September 30, June 30,
2008 2007 2008 2007 2008
(Unaudited) (Unaudited) (Unaudited)

INTEREST INCOME
Loans $28,992 $36,636 $91,393 $107,477 $29,661
Investment securities
and other 6,032 5,340 17,635 15,661 6,003

TOTAL INTEREST INCOME 35,024 41,976 109,028 123,138 35,664

INTEREST EXPENSE
Deposits 13,708 19,867 45,471 57,489 14,863
Federal Home Loan Bank
advances 1,140 1,738 3,864 5,065 1,142
Short-term borrowings and
repurchase agreements 1,473 1,917 4,255 5,576 1,186
Subordinated debentures
issued to capital trust 336 522 1,097 1,402 342

TOTAL INTEREST EXPENSE 16,657 24,044 54,687 69,532 17,533

NET INTEREST INCOME 18,367 17,932 54,341 53,606 18,131
PROVISION FOR LOAN LOSSES 4,500 1,350 47,200 4,125 4,950

NET INTEREST INCOME (LOSS)
AFTER PROVISION FOR LOAN
LOSSES 13,867 16,582 7,141 49,481 13,181

NON-INTEREST INCOME
Commissions 1,964 2,435 7,036 7,665 2,432
Service charges and
ATM fees 4,067 3,817 11,603 11,270 3,970
Net realized gains on
sales of loans 369 247 1,127 682 365
Net realized gains (losses)
on sales and impairments
of available-for-sale
securities (5,293) 4 (5,286) 4 1
Net gain (loss) on sales
of fixed assets 9 11 175 35 156
Late charges and fees on
loans 259 370 632 752 154
Change in interest rate
swap fair value net of
change in hedged deposit
fair value 32 157 5,287 843 2,277
Other income 382 569 1,262 1,252 509

TOTAL NON-INTEREST
INCOME 1,789 7,610 21,836 22,503 9,864

NON-INTEREST EXPENSE
Salaries and employee
benefits 7,561 7,744 23,807 22,373 7,970
Net occupancy and
equipment expense 2,027 1,971 6,212 5,844 2,137
Postage 558 552 1,690 1,670 569
Insurance 542 537 1,662 984 507
Advertising 247 355 866 1,063 342
Office supplies and
printing 209 187 654 659 226
Telephone 320 339 1,052 1,006 360
Legal, audit and other
professional fees 515 285 1,236 867 343
Expense (income) on
foreclosed assets 1,868 125 2,484 275 262
Other operating expenses 803 1,225 2,661 3,239 841

TOTAL NON-INTEREST
EXPENSE 14,650 13,320 42,324 37,980 13,557

INCOME (LOSS) BEFORE INCOME
TAXES 1,006 10,872 (13,347) 34,004 9,488
PROVISION (CREDIT) FOR
INCOME TAXES 182 3,555 (5,350) 11,144 3,156

NET INCOME (LOSS) $824 $7,317 $(7,997) $22,860 $6,332

BASIC EARNINGS PER COMMON
SHARE $.06 $.54 $(.60) $1.68 $.47

DILUTED EARNINGS PER COMMON
SHARE $.06 $.54 $(.60) $1.67 $.47

DIVIDENDS DECLARED PER COMMON
SHARE $.18 $.17 $.54 $.50 $.18

Average Balances, Interest Rates and Yields

The following table presents, for the periods indicated, the total dollar
amount of interest income from average interest-earning assets and the
resulting yields, as well as the interest expense on average interest-bearing
liabilities, expressed both in dollars and rates, and the net interest margin.
Average balances of loans receivable include the average balances of non-
accrual loans for each period. Interest income on loans includes interest
received on non-accrual loans on a cash basis. Interest income on loans
includes the amortization of net loan fees, which were deferred in accordance
with accounting standards. Fees included in interest income were $647,000 and
$990,000 for the three months ended September 30, 2008 and 2007, respectively.
Fees included in interest income were $2.0 million and $2.4 million for the
nine months ended September 30, 2008 and 2007, respectively. Tax-exempt income
was not calculated on a tax equivalent basis. The table does not reflect any
effect of income taxes.

September 30, Three Months Ended Three Months Ended
2008 September 30, 2008 September 30, 2007
Yield/ Average Yield/ Average Yield/
Rate Balance Interest Rate Balance Interest Rate
(Dollars in thousands)
Interest-earning
assets:
Loans receivable:
One- to
four-family
residential 6.28% $213,136 $3,389 6.33% $182,645 $3,239 7.04%
Other
residential 6.73 118,265 1,862 6.26 80,371 1,722 8.50
Commercial real
estate 6.49 494,780 8,056 6.48 449,170 9,340 8.25
Construction 6.11 622,000 9,483 6.07 696,754 14,624 8.33
Commercial
business 5.78 148,015 2,255 6.06 177,655 3,783 8.45
Other loans 7.58 187,446 3,067 6.51 153,184 2,932 7.59
Industrial
revenue bonds 6.40 52,204 880 6.71 58,021 996 6.81

Total loans
receivable 6.42 1,835,846 28,992 6.28 1,797,800 36,636 8.08

Investment
securities
and other
interest-earning
assets 4.84 498,037 6,032 4.82 427,076 5,340 4.96

Total interest-
earning assets 6.05 2,333,883 35,024 5.97 2,224,876 41,976 7.49
Non-interest-
earning assets:
Cash and cash
equivalents 63,274 82,280
Other non-earning
assets 72,829 53,502
Total assets $2,469,986 $2,360,658

Interest-bearing
liabilities:
Interest-bearing
demand and
savings 1.42 $436,129 1,646 1.50 $490,898 4,340 3.51
Time deposits 3.69 1,273,854 12,062 3.77 1,140,326 15,527 5.40
Total
deposits 3.14 1,709,983 13,708 3.19 1,631,224 19,867 4.83
Short-term
borrowings and
structured repo 2.32 275,507 1,473 2.13 173,999 1,917 4.37
Subordinated
debentures
issued to
capital trust 4.37 30,929 336 4.32 30,335 522 6.83
FHLB advances 3.63 122,969 1,140 3.69 141,552 1,738 4.87

Total
interest-
bearing
Liabilities 3.07 2,139,388 16,657 3.10 1,977,110 24,044 4.83
Non-interest-
bearing
liabilities:
Demand deposits 146,983 167,290
Other liabilities 9,881 30,381
Total
liabilities 2,296,252 2,174,781
Stockholders'
equity 173,734 185,877
Total
liabilities
and
stockholders'
equity $2,469,986 $2,360,658

Net interest
income:
Interest rate
spread 2.98% $18,367 2.87% $17,932 2.66%

Net interest
margin* 3.13% 3.20%
Average interest-
earning assets to
average interest-
bearing liabilities 109.1% 112.5%

* Defined as the Company's net interest income divided by total
interest-earning assets.

September 30, Nine Months Ended Nine Months Ended
2008 September 30, 2008 September 30, 2007
Yield/ Average Yield/ Average Yield/
Rate Balance Interest Rate Balance Interest Rate
(Dollars in thousands)
Interest-earning
assets:
Loans receivable:
One- to
four-family
residential 6.28% $203,310 $9,937 6.53% $177,431 $9,356 7.05%
Other
residential 6.73 105,115 5,338 6.78 80,874 5,195 8.59
Commercial real
estate 6.49 479,364 24,243 6.76 452,512 28,449 8.41
Construction 6.11 669,609 32,342 6.45 673,304 42,562 8.45
Commercial
business 5.78 172,097 7,966 6.18 167,900 10,588 8.43
Other loans 7.58 175,519 8,822 6.71 148,732 8,445 7.59
Industrial
revenue bonds 6.40 53,780 2,745 6.82 56,502 2,882 6.82

Total loans
receivable 6.42 1,858,794 91,393 6.57 1,757,255 107,477 8.18

Investment
securities
and other
interest-earning
assets 4.84 491,339 17,635 4.79 430,378 15,661 4.87

Total interest-
earning assets 6.05 2,350,133 109,028 6.20 2,187,633 123,138 7.53
Non-interest-
earning assets:
Cash and cash
equivalents 68,706 88,270
Other non-earning
assets 72,449 47,974
Total assets $2,491,288 $2,323,877

Interest-bearing
liabilities:
Interest-bearing
demand and
savings 1.42 $516,734 7,119 1.84 $470,413 12,076 3.43
Time deposits 3.69 1,219,780 38,352 4.20 1,137,975 45,413 5.34
Total
deposits 3.14 1,736,514 45,471 3.50 1,608,388 57,489 4.78
Short-term
borrowings and
structured repo 2.32 244,435 4,255 2.33 167,630 5,576 4.45
Subordinated
debentures issued
to capital trust 4.37 30,929 1,097 4.74 27,311 1,402 6.86
FHLB advances 3.63 137,245 3,864 3.76 137,274 5,065 4.93

Total
interest-
bearing
liabilities 3.07 2,149,123 54,687 3.40 1,940,603 69,532 4.79
Non-interest-
bearing
liabilities:
Demand deposits 149,446 171,230
Other liabilities 10,671 28,146
Total
liabilities 2,309,240 2,139,979
Stockholders'
equity 182,048 183,898
Total
liabilities
and
stockholders'
equity $2,491,288 $2,323,877

Net interest
income:
Interest rate
spread 2.98% $54,341 2.80% $53,606 2.74%

Net interest
margin* 3.09% 3.28%
Average interest-
earning assets to
average interest-
bearing liabilities 109.4% 112.7%

* Defined as the Company's net interest income divided by total
interest-earning assets.

SOURCE Great Southern Bancorp, Inc.

Kelly Polonus of Great Southern Bancorp, Inc., +1-417-895-5242,
kpolonus@greatsouthernbank.com