Note 24: Regulatory Matters

12 Months Ended

Dec. 31, 2014

Notes

Note 24: Regulatory Matters

Note 24:     Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies.  Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct and material effect on the Company’s financial statements.  Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices.  The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below as of December 31, 2014) of Total and Tier I Capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I Capital (as defined) to adjusted tangible assets (as defined).  Management believes, as of December 31, 2014, that the Bank met all capital adequacy requirements to which it was then subject.

As of December 31, 2014, the most recent notification from the Bank’s regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action.  To be categorized as well capitalized as of December 31, 2014, the Bank must have maintained minimum total risk-based, Tier I risk-based and Tier 1 leverage capital ratios as set forth in the table.  There are no conditions or events since that notification that management believes have changed the Bank’s category.

The Company’s and the Bank’s actual capital amounts and ratios are presented in the following table.  No amount was deducted from capital for interest-rate risk.

					To Be Well
					Capitalized Under
			For Capital		Prompt Corrective
	Actual		Adequacy Purposes		Action Provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
(In Thousands)
As of December 31, 2014
Total risk-based capital
Great Southern Bancorp, Inc.	$473,689	14.5%	$261,062	8.0%	N/A	N/A
Great Southern Bank	$410,291	12.6%	$260,919	8.0%	$326,149	10.0%
Tier I risk-based capital
Great Southern Bancorp, Inc.	$435,254	13.3%	$130,531	4.0%	N/A	N/A
Great Southern Bank	$371,856	11.4%	$130,459	4.0%	$195,689	6.0%
Tier I leverage capital
Great Southern Bancorp, Inc.	$435,254	11.1%	$156,395	4.0%	N/A	N/A
Great Southern Bank	$371,856	9.5%	$156,197	4.0%	$195,247	5.0%
As of December 31, 2013
Total risk-based capital
Great Southern Bancorp, Inc.	$436,156	16.9%	$207,075	8.0%	N/A	N/A
Great Southern Bank	$398,292	15.4%	$206,850	8.0%	$258,562	10.0%
Tier I risk-based capital
Great Southern Bancorp, Inc.	$403,705	15.6%	$103,538	4.0%	N/A	N/A
Great Southern Bank	$365,876	14.2%	$103,425	4.0%	$155,137	6.0%
Tier I leverage capital
Great Southern Bancorp, Inc.	$403,705	11.3%	$143,057	4.0%	N/A	N/A
Great Southern Bank	$365,876	10.2%	$142,865	4.0%	$178,581	5.0%

The Company and the Bank are subject to certain restrictions on the amount of dividends that may be declared without prior regulatory approval.  At December 31, 2014 and 2013, the Company and the Bank exceeded their minimum capital requirements then in effect.  The entities may not pay dividends which would reduce capital below the minimum requirements shown above.