Asexpected,Springfield, Mo.-based GreatSouthern Bancorp Inc. unit Great Southern Bank and the FDIC on April 26 agreed toterminate the loss-sharing agreements for Paola, Kan.-based , Sioux City, Iowa-based and Ellington,Mo.-based Sun SecurityBank — failed banks whose deposits Great Southern Bank assumedin separate assisted transactions in 2009 and 2011, along with certain of theirassets.
The FDICpaid $4.4 million to Great Southern Bank as net consideration for the earlytermination, pursuant to the termination agreement.
Assets thatwere covered by the terminated loss-sharing arrangements are now reclassifiedas noncovered assets, effective April 26, because of the termination agreement.Such assets include covered loans amounting to $61.5 million and covered otherreal estate owned amounting to $468,000 as of March 31.
Purchasedcredit impaired loans that were previously covered by the terminatedloss-sharing agreements will continue to be accounted for as purchased creditimpaired loans. The termination agreement will eliminate from the company'sbooks the FDIC indemnification assets and other related receivables for theterminated loss-sharing agreements, which totaled $4.4 million as of March 31.As a result, some $1.9 million of the $4.4 million total indemnification assetsand receivables as of March 31, which had been scheduled to be amortizedagainst future earnings, will no longer negatively impact the income statement.
GreatSouthern Bank will continue to maintain its loss-sharing agreement with thefederal agency in conjunction with its FDIC-assisted of Maple Grove,Minn.-based Inter Savings BankFSB in 2012.