Great Southern Bancorp Inc. of Springfield, Mo., swung to a profit of $17.4 million last quarter, from a loss of $15.1 million a year earlier, because of its acquisition of a failed bank.
The $3.4 billion-asset company recognized a gain of $25.4 million from the fair-value accounting associated with its March acquisition of TeamBank in Paola, Kan., from the Federal Deposit Insurance Corp. Great Southern said there could be further gains of this kind.
The gain offset a $4 million writedown of trust-preferred securities and a collateralized mortgage obligation.
Excluding the gain and the writedown, Great Southern reported core operating earnings of $6 million.
"Overall, the company performed well in the first quarter," said Joseph W. Turner, its president and chief executive. "Credit quality and credit issue resolution continue to be top priorities."
The provision for loan losses shrank 86% from a year earlier, to $5 million. The drop was mostly attributed to the chargeoff of a loan to a bank holding company a year earlier. Nonperforming assets increased 10.2%, to $61.6 million.