Interest Expense - Deposits

             Including the effects of the Company's accounting change in 2005 for certain interest rate swaps, interest on demand deposits increased $976,000 due to an increase in average rates from 1.99% during the three months ended June 30, 2005, to 2.93% during the three months ended June 30, 2006. The average interest rates increased due to higher overall market rates of interest throughout 2005 and into 2006. Market rates of interest on checking and money market accounts began to increase in the latter half of 2004 as the FRB raised short-term interest rates. Interest on demand deposits increased $210,000 due to an increase in average balances from $384 million during the three months ended June 30, 2005, to $423 million during the three months ended June 30, 2006. The Company continued to increase its checking balances in 2006 through increased relationships with correspondent, corporate and retail customers. Average noninterest-bearing demand balances increased from $167 million in the three months ended June 30, 2005, to $191 million in the three months ended June 30, 2006.

             Interest expense on deposits increased $3.0 million as a result of an increase in average rates of interest on time deposits from 3.82% during the three months ended June 30, 2005, to 5.09% during the three months ended June 30, 2006. Interest expense on deposits also increased $1.8 million due to an increase in average balances of time deposits from $852 million during the three months ended June 30, 2005, to $1.02 billion during the three months ended June 30, 2006. Market rates of interest on new certificates began to increase in the latter half of 2004 and throughout 2005 and 2006 as the FRB raised short-term interest rates. In 2005 and 2006, the Company increased its balances of brokered certificates of deposit to fund loan growth. In addition, the Company's interest rate swaps are repricing to higher rates in conjunction with the increases in market interest rates.

             The effects of the Company's accounting change in 2005 for certain interest rate swaps did not impact interest on demand deposits.

             Excluding the effects of the Company's accounting change in 2005 for certain interest rate swaps, economically, interest expense on deposits increased $4.1 million as a result of an increase in average rates of interest on time deposits from 3.11% during the three months ended June 30, 2005, to 4.81% during the three months ended June 30, 2006. Interest expense on deposits also increased $1.5 million due to an increase in average balances of time deposits from $852 million during the three months ended June 30, 2005, to $1.02 billion during the three months ended June 30, 2006.

             Including the effects of the Company's accounting change in 2005 for certain interest rate swaps, interest on demand deposits increased $2.2 million due to an increase in average rates from 1.86% during the six months ended June 30, 2005, to 2.90% during the six months ended June 30, 2006. The average interest rates increased due to higher overall market rates of interest throughout 2005 and into 2006. Market rates of interest on checking and money market accounts began to increase in the latter half of 2004 as the FRB raised short-term interest rates. Interest on demand deposits increased $574,000 due to an increase in average balances from $380 million during the six months ended June 30, 2005, to $436 million during the six months ended June 30, 2006. The Company continued to increase its checking balances in 2006 through increased relationships with correspondent, corporate and retail customers. Average noninterest-bearing demand balances increased from $160 million in the six months ended June 30, 2005, to $186 million in the six months ended June 30, 2006.

             Interest expense on deposits increased $5.0 million as a result of an increase in average rates of interest on time deposits from 3.68% during the six months ended June 30, 2005, to 4.77% during the six months ended June 30, 2006. Interest expense on deposits also increased $3.3 million due to an increase in average balances of time deposits from $829 million during the six months ended June 30, 2005, to $993 million during the six months ended June 30, 2006. Market rates of interest on new certificates began to increase in the latter half of 2004 and throughout 2005 and 2006 as the FRB raised short-term interest rates. In 2005 and 2006, the Company increased its balances of brokered certificates of deposit to fund loan growth. In addition, the Company's interest rate swaps are repricing to higher rates in conjunction with the increases in market interest rates.

             The effects of the Company's accounting change in 2005 for certain interest rate swaps did not impact interest on demand deposits.

             Excluding the effects of the Company's accounting change in 2005 for certain interest rate swaps, economically, interest expense on deposits increased $8.0 million as a result of an increase in average rates of interest on time deposits from 2.87% during the six months ended June 30, 2005, to 4.57% during the six months ended June 30, 2006. Interest expense on deposits also increased $2.7 million due to an increase in average balances of time deposits from $829 million during the six months ended June 30, 2005, to $993 million during the six months ended June 30, 2006.

Non-GAAP Reconciliation:
(Dollars in thousands)

             For additional information on net interest income components, refer to "Average Balances, Interest Rates and Yields" table in this Quarterly Report on Form 10-Q. This table is prepared including the impact of the accounting changes for interest rate swaps.

Provision for Loan Losses and Allowance for Loan Losses

             The provision for loan losses increased $450,000 from $975,000 during the three months ended June 30, 2005 to $1.4 million during the three months ended June 30, 2006. The allowance for loan losses increased $308,000, or 1.2%, to $25.5 million at June 30, 2006 compared to $25.2 million at March 31, 2006. Net charge-offs were $1.1 million in the three months ended June 30, 2006 versus $663,000 in the three months ended June 30, 2005.

             The provision for loan losses increased $875,000 from $1.9 million during the six months ended June 30, 2005 to $2.8 million during the six months ended June 30, 2006. The allowance for loan losses increased $982,000, or 4.0%, to $25.5 million at June 30, 2006 compared to $24.5 million at December 31, 2005. Net charge-offs were $1.8 million in the six months ended June 30, 2006 versus $1.0 million in the six months ended June 30, 2005.

             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. 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 collectibility 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 1.52%, 1.54% and 1.59% at June 30, 2006, March 31, 2006 and December 31, 2005, respectively. The reduction in this percentage was due to growth in the Company's loan portfolio as the allowance for loan losses increased $982,000 during the six months ended June 30, 2006. Management considers the allowance for loan losses adequate to cover losses inherent in the Company's loan portfolio at this time, based on current economic conditions. If economic conditions deteriorate significantly, it is possible that additional assets would be classified as non-performing, and accordingly, additional provision for losses would be required, thereby adversely affecting future results of operations and financial condition.

Non-performing Assets

             As a result of continued growth in 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 June 30, 2006, were $26.2 million, up $9.4 million from December 31, 2005, and up $3.0 million from March 31, 2006. Non-performing assets as a percentage of total assets were 1.17% at June 30, 2006. Compared to December 31, 2005, non-performing loans increased $8.9 million to $25.1 million while foreclosed assets increased $486,000 to $1.1 million. Commercial real estate, construction and business loans comprised $24.0 million, or 95%, of the total $25.1 million of non-performing loans at June 30, 2006.

             Non-performing Loans. Compared to December 31, 2005, non-performing loans increased $8.9 million to $25.1 million. The increase in non-performing loans during the quarter ended June 30, 2006, was primarily due to the addition of one $1.3 million loan relationship and the increase by $1.6 million of one loan relationship (now totaling $5.3 million) to the non-performing category. Other increases in non-performing loans during the six months ended June 30, 2006, were primarily due to the addition of one $3.1 million loan relationship and the increase by $3.9 million of one loan relationship (now totaling $5.3 million) to the non-performing category. This increase was partially offset by the repayment of one $640,000 relationship which was included in non-performing assets at December 31, 2005, and the reduction of another relationship by $1.1 million through the sale of a portion of the assets securing the debt, resulting in a remaining relationship total of $946,000 at June 30, 2006. Five additional significant loan relationships were previously included in Non-performing Loans and remained there at June 30, 2006. These relationships are described more fully in the December 31, 2005, Annual Report on Form 10-K.

             The $1.3 million loan relationship was placed in the Non-performing Loans category during the quarter ended June 30, 2006. This relationship is primarily secured by subdivision lots, houses under construction and commercial real estate lots in the Lake of the Ozarks, Missouri, area.

             Originally included in non-performing loans as $3.7 million (now totaling $5.3 million), $1.6 million was added to the Non-performing Loans category from the Potential Problem Loans category during the three months ended June 30, 2006. The $3.7 million portion of this relationship is secured by a nursing home in Missouri that has had cash flow problems. The additional $1.6 million is secured by a second nursing home in the Springfield, Missouri, area. This second nursing home has performed satisfactorily; however, due to the performance issues of the other property, the entire relationship has now been categorized as non-performing.

             The $3.1 million loan relationship was placed in the Non-performing Loans category during the quarter ended March 31, 2006. At December 31, 2005, this relationship was included in the Potential Problem Loans category and was described more fully in the December 31, 2005, Annual Report on Form 10-K. This relationship is secured by a motel and additional real estate collateral.

             The $5.3 million relationship was discussed in the December 31, 2005 Annual Report on Form 10-K, where $1.5 million was included in the Non-performing Loans category and $6.2 million was included in the Potential Problem Loans category. This relationship is secured by an office building, vacant land, developed and undeveloped residential subdivisions, houses under construction and houses used as rental property. The Company determined that the transfer of this portion of the relationship to the Non-performing Loans category was warranted due to continued deterioration of payment performance. During the three months ended March 31, 2006, the Company recorded a charge-off of $283,000 on this relationship. In addition, during the three months ended June 30, 2006, the borrower sold some of the commercial real estate and subdivision lots. The proceeds of these sales were used to reduce loan balances from $6.2 million to $5.3 million.

             Four additional unrelated credit relationships which were included in non-performing loan totals at December 31, 2005, and remain non-performing loans at June 30, 2006, are discussed below. The first relationship totals $1.4 million and is secured by commercial real estate and equipment of two restaurants - one in Springfield and one in central Missouri. Both restaurants have been closed and the buildings and land are currently offered for sale. The second relationship totals $845,000 and is secured primarily by a mobile home park in the Kansas City, Missouri, metropolitan area and other commercial real estate collateral. The third relationship totals $974,000 and is secured primarily by the receivables, inventory, equipment and other business assets of a home building materials company in Springfield, Missouri. The fourth relationship totals $879,000 and is secured by a motel near Branson, Missouri and a commercial building in Springfield, Missouri. At June 30, 2006, the nine relationships described above accounted for $20.1 million of the non-performing loan total.

             Foreclosed Assets. Of the total $1.1 million of foreclosed assets at June 30, 2006, foreclosed real estate totaled $695,000 and repossessed automobiles, boats and other personal property totaled $386,000. During the latter portion of 2005, the Company sold almost all of its foreclosed real estate assets in separate transactions to unrelated buyers.

             Potential Problem Loans. Potential problem loans decreased $8.7 million during the six months ended June 30, 2006 from $18.4 million at December 31, 2005 to $9.7 million at June 30, 2006. Potential problem loans are loans which management has identified through routine internal review procedures as having possible credit problems which may cause the borrowers difficulty in complying with current repayment terms. These loans are not reflected in the non-performing assets. During the six months ended June 30, 2006, potential problem loans decreased primarily due to the transfer to the non-performing loan category of portions of four unrelated loan relationships which were discussed above. At June 30, 2006, four large unrelated relationships make up the majority of the potential problem loan category. The first two of these relationships were described in the December 31, 2005 Annual Report on Form 10-K under the Potential Problem Loans category and the last two of these relationships were added to the Potential Problem Loans category during the quarter ended June 30, 2006. The first relationship totals $1.2 million (with an additional $5.3 million included in Non-performing Loans) and is secured primarily by single-family houses used as rental property and homes for sale in the Branson, Missouri, area. These loans are not included in the relationship's non-performing totals due to adequate payment performance and income production realized by the borrower on these properties. The second relationship totals $3.1 million and is secured primarily by a townhome development in the Kansas City, Missouri, area. The project has experienced cash flow problems recently due to vacancies in some of the units. Several of the tenants were military personnel who have been redeployed to other locations. The project is currently offered for sale. The third relationship totals $1.8 million and is secured primarily by a motel in Branson, Missouri. The fourth relationship totals $777,000 and is secured primarily by two motels in Texas and another motel in Arkansas. At June 30, 2006, the four significant relationships described above accounted for $6.9 million of the potential problem loan total.

Non-interest Income

             Including the effects of the Company's restatement in 2005 for certain interest rate swaps, total non-interest income decreased $5.7 million in the three months ended June 30, 2006 when compared to the three months ended June 30, 2005. Non-interest income for the second quarter of 2006 was $7.4 million compared with $13.1 million for the second quarter 2005. The decrease in non-interest income was primarily attributable to the effects of the accounting change for interest rate swaps on the prior period results. Non-interest income increased $5.5 million in the three months ended June 30, 2005, and increased $690,000 in the three months ended June 30, 2006, as a result of the change in the fair value of certain interest rate swaps. In addition, non-interest income for the second quarter of 2005 was also impacted by the reclassification of the net interest settlements on these swaps from net interest income to non-interest income. While this had no effect on total net income, non-interest income was increased by $1.1 million in the three months ended June 30, 2005. There was no reclassification of net interest settlements in the three months ended June 30, 2006. Excluding the effects of interest rate swap-related entries, non-interest income increased $325,000, or 5%, in the three months ended June 30, 2006, compared to the three months ended June 30, 2005.

             For the three months ended June 30, 2006, income from commissions from the Company's travel, insurance and investment divisions increased $167,000, or 7%, compared to the same period in 2005. Increases in commission revenues occurred primarily in the travel division. In the latter half of 2003, the Company acquired two travel agencies in the Springfield, Missouri market. These two additions, along with organic growth in our existing travel operations, have led to increased revenue in both the leisure and corporate travel areas. In August 2005, the Company completed its acquisition of a travel company in Columbia, Missouri, and in January 2006, the Company completed its acquisition of a travel company in Lee's Summit, Missouri. The operations of these travel companies are now included in the operating results of the Company. During the quarter ending September 30, 2006, the Company plans to complete its acquisition of a second travel company in Columbia, Missouri. Service charges on deposit accounts and ATM fees increased $296,000, or 9%, compared to the same period in 2005. In 2006 the Company increased some of its per-item charges on certain account activities. In addition, a portion of the fee increase is attributed to growth in accounts to which charges may apply.

             Including the effects of the Company's restatement in 2005 for certain interest rate swaps, total non-interest income decreased $1.4 million in the six months ended June 30, 2006 when compared to the six months ended June 30, 2005. Non-interest income for the first six months of 2006 was $14.6 million compared with $16.0 million for the first six months of 2005. The decrease in non-interest income was primarily attributable to the effects of the accounting change for interest rate swaps on the prior period results. Non-interest income increased $982,000 in the six months ended June 30, 2005, and increased $482,000 in the six months ended June 30, 2006, as a result of the change in the fair value of certain interest rate swaps. In addition, non-interest income for the first six months of 2005 was also impacted by the reclassification of the net interest settlements on these swaps from net interest income to non-interest income. While this had no effect on total net income, non-interest income was increased by $2.7 million in the six months ended June 30, 2005. There was no reclassification of net interest settlements in the six months ended June 30, 2006. Excluding the effects of interest rate swap-related entries, non-interest income increased $1.8 million, or 15%, in the six months ended June 30, 2006, compared to the six months ended June 30, 2005.

             For the six months ended June 30, 2006, income from commissions from the Company's travel, insurance and investment divisions increased $464,000, or 10%, compared to the same period in 2005. Increases in commission revenues occurred primarily in the travel division for the reasons stated above. Service charges on deposit accounts and ATM fees increased $617,000, or 10%, compared to the same period in 2005. Also in the six months ended June 30, 2006, the Company experienced an increase in prepayment fees on loans of $563,000 compared to the same period in 2005. This was primarily the result of the early repayment of five unrelated loans during the quarter ended March 31, 2006. Although the Company does receive prepayment fees from time to time, it is difficult to forecast when and in what amounts fees will be collected.

Non-interest Expense

             Total non-interest expense increased $1.3 million, or 12.5%, in the three months ended June 30, 2006, when compared to the three months ended June 30, 2005. The increase was primarily due to: (i) an increase of $963,000, or 15.5%, in salaries and employee benefits and (ii) smaller increases and decreases in other non-interest expense areas, such as occupancy and equipment expense, postage, advertising, insurance, telephone, legal and professional fees, and bank charges and fees related to additional correspondent relationships.

             The Company's increase in non-interest expense in the second quarter of 2006 compared to the same period in 2005 related to the continued growth of the Company. During the latter half of 2005, Great Southern completed its acquisition of three bank branches in central Missouri, acquired a Columbia, Missouri-based travel agency, and opened a banking center in Republic, Missouri. In the first quarter 2006, Great Southern acquired a travel agency in Lee's Summit, Missouri, and established a new loan production office in Columbia, Missouri. As a result, in the three months ended June 30, 2006, compared to the three months ended June 30, 2005, non-interest expenses increased $475,000 related to the ongoing operations of these entities. In addition to these acquisitions and new office, the Company expanded the loan production offices in St. Louis and Rogers, Ark., and added lending and lending support personnel in the Springfield market. Consistent with many other employers, the cost of health insurance premiums and other benefits for the Company continues to rise and added $285,000 in expenses in the second quarter of 2006 compared to the same quarter in 2005. Effective July 1, 2006, the Company will reduce the benefits which may be earned by current employees in future periods under the Company's multi-employer defined benefit pension plan. In addition, employees hired after June 30, 2006, will not accrue any benefits under this plan. The Company expects that these steps will reduce the Company's expense related to this plan by approximately $400,000 - 500,000 annually beginning in 2007. The savings achieved by taking these steps may be offset by other expenses associated with this plan, including, without limitation, additional Company contributions that may be necessary from time to time to ensure the plan is adequately funded and by a planned increase in the matching portion of the Company's 401(k) plan for all eligible participants.

             As a result of the adoption of FAS 123(R) effective January 1, 2006, during the quarter ended June 30, 2006, the Company also recorded expenses of $114,000, or $.01 per diluted share, related to the cost of stock options previously granted by the Company. No corresponding expense was recorded in 2005.

             Total non-interest expense increased $2.5 million, or 11.9%, in the six months ended June 30, 2006, when compared to the six months ended June 30, 2005. The increase was primarily due to: (i) an increase of $1.8 million, or 14.5%, in salaries and employee benefits; (ii) an increase of $353,000, or 10.2%, in net occupancy and equipment expense; and (iii) smaller increases and decreases in other non-interest expense areas, such as postage, advertising, insurance, telephone, legal and professional fees, and bank charges and fees related to additional correspondent relationships.

             The Company's increase in non-interest expense in the first six months of 2006 compared to the same period in 2005 related to the continued growth of the Company. As noted above, during the latter half of 2005, Great Southern completed its acquisition of three bank branches in central Missouri, acquired a Columbia, Missouri-based travel agency, and opened a banking center in Republic, Missouri, and in the first quarter of 2006, acquired a travel agency in Lee's Summit, Missouri, and established a new loan production office in Columbia, Missouri. As a result, in the six months ended June 30, 2006, compared to the six months ended June 30, 2005, non-interest expenses increased $873,000 related to the ongoing operations of these entities. In addition to these acquisitions and new office, the Company expanded the loan production offices in St. Louis and Rogers, Arkansas, and added lending and lending support personnel in the Springfield market. The cost of health insurance premiums and other benefits for the Company added $585,000 in expenses in the first six months of 2006 compared to the same period in 2005.

             As a result of the adoption of FAS 123(R) effective Janaury 1, 2006, during the six months ended June 30, 2006, the Company also recorded expenses of $229,000, or $.02 per diluted share, related to the cost of stock options previously granted by the Company. No corresponding expesne was recorded in 2005.

Provision for Income Taxes

             Provision for income taxes as a percentage of pre-tax income decreased from 33.0% for the three months ended June 30, 2005, to 31.7% for the three months ended June 30, 2006. The lower effective tax rate in 2006 was the result of a higher level of tax-exempt income relative to overall net income. For future periods, the Company expects the effective tax rate to be in the range of 30-33% of pre-tax income.

             Provision for income taxes as a percentage of pre-tax income increased slightly from 32.1% for the six months ended June 30, 2005, to 32.2% for the six months ended June 30, 2006.

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 $703,000 and $485,000 for the three months ended June 30, 2006 and 2005, respectively. Fees included in interest income were $1.3 million and $870,000 for the six months ended June 30, 2006 and 2005, respectively. Tax-exempt income was not calculated on a tax equivalent basis. The table does not reflect any effect of income taxes.