Great Southern Bank Announces Plans to Sell Great Southern Travel
and Great Southern Insurance
SPRINGFIELD, Mo., Nov. 9,
2012 /PRNewswire/ -- Great Southern Bancorp, Inc.
(NASDAQ:GSBC) subsidiary Great Southern Bank announced today that
separate definitive agreements have been signed to sell Great
Southern Travel to Milwaukee,
Wisconsin-based Adelman Travel and Great Southern Insurance
to St. Louis-based HM, effective
Nov. 30, 2012, for both entities.
Current Great Southern Travel and Great Southern Insurance
employees and offices will become part of each acquirer's
respective operations. Customers of both entities will not
see any disruption in service and can expect even greater offerings
and service in the future.
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Great Southern President and CEO Joseph
W. Turner said, "Great Southern Bank has experienced
phenomenal growth during the last three years, growing from a
primarily southwest Missouri-based
bank with 39 banking centers to 107 banking centers in six
states. Banking is and always has been our core business. We
have made the decision to strictly focus our resources on that core
business. The decision to find buyers for our travel agency and
insurance company was not taken lightly. Both divisions have been
very visible parts of our institution for decades and they are
highly respected and profitable entities. Our top priority was to
find buyers that we knew would take excellent care of our customers
and employees and provide even more resources and capabilities. We
have exceeded this objective with Adelman Travel and
HM. Adelman Travel is a world-class travel management company
that will use their strong position in the travel industry to take
travel services to the next level for our current customers and
employees. In the same light, HM is a growing and dynamic insurance
company offering a wide range of insurance solutions."
Adelman Travel, with more than $400
million in annual revenue, provides business and consumer
travel solutions on a global scale. Now in their 27th year in
business, Adelman employs 185 people and operates 20 full-service
on-site travel centers nationwide and four regional reservation
centers. They are the largest travel agency in Wisconsin and rank in the top 10 of all travel
management companies nationwide.
"Both companies will bring their core strengths to this union,"
said Craig Adelman, the company's
founder, chairman and CEO. "Adelman Travel has much to offer
Great Southern Travel's corporate travelers in the way of
innovative services and technology solutions. At the same
time, we are excited at the prospect of expanding our vacations
division through the experience of Great Southern Travel
consultants. Additionally, our combined purchasing power will
directly benefit both our corporate and leisure customers."
HM was founded in 1991 and is one of the largest privately held
insurance brokers in the United States. HM provides risk
management services to clients in all 50 states and around the
globe offering Property-Casualty, Employee Benefit, Personal Lines,
and Financial services.
HM CEO Michael F. Shanahan, Jr.
said, "We are very excited about this transaction as it gives us
great visibility in the Springfield market and in southwest
Missouri. Joe Turner and his leadership team have built a
first class insurance organization that shares our "client first"
philosophy. We are really looking forward to welcoming their
associates, and all of their clients, into the HM Family."
These transactions will result in the transfer of assets to HM
on Dec. 1, 2012, and to Adelman
Travel on Dec. 3, 2012. The combined
sales are expected to result in transaction gains totaling
approximately $6.8 million, which
will be recorded in the fourth quarter of 2012. In the
trailing twelve month period as of Sept. 30,
2012, Great Southern Travel and Great Southern Insurance on
a combined basis produced $8.2
million in non-interest income, $7.2
million in non-interest expense and $739,000 in net income, or a diluted earnings per
share effect of $0.05.
With total assets of $4.1 billion,
Great Southern is headquartered in Springfield, Mo., and operates 107 retail
banking centers and more than 200 ATMs in Missouri, Arkansas, Iowa, Kansas,
Minnesota and Nebraska. Great Southern Bancorp is a public
company and its common stock (ticker: GSBC) is listed on the NASDAQ
Global Select stock exchange.
www.GreatSouthernTravel.com
www.GreatSouthernInsurance.com
www.adelmantravel.com
www.hmrisk.com
Forward-Looking Statements
When used in this press release and in filings by the Company
with the Securities and Exchange Commission (the "SEC"), in the
Company's other 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, (i) expected cost savings, synergies
and other benefits from the Company's merger and acquisition
activities, including but not limited to the recently completed
FDIC-assisted transactions involving Sun Security Bank and
InterBank, might not be realized within the anticipated time frames
or at all, the possibility that the amount of the gain the Company
ultimately recognizes from the InterBank transaction will be
materially different from the preliminary gain recorded, and costs
or difficulties relating to integration matters, including but not
limited to customer and employee retention, might be greater than
expected; (ii) changes in economic conditions, either nationally or
in the Company's market areas; (iii) fluctuations in interest
rates; (iv) 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; (v) the possibility of
other-than-temporary impairments of securities held in the
Company's securities portfolio; (vi) the Company's ability to
access cost-effective funding; (vii) fluctuations in real estate
values and both residential and commercial real estate market
conditions; (viii) demand for loans and deposits in the Company's
market areas; (ix) legislative or regulatory changes that adversely
affect the Company's business, including, without limitation, the
Dodd-Frank Wall Street Reform and Consumer Protection Act and its
implementing regulations, and the new overdraft protection
regulations and customers' responses thereto; (x) monetary and
fiscal policies of the Federal Reserve Board and the U.S.
Government and other governmental initiatives affecting the
financial services industry; (xi) results of examinations of the
Company and the Bank by their regulators, including the possibility
that the regulators may, among other things, require the Company to
increase its allowance for loan losses or to write-down assets;
(xii) the uncertainties arising from the Company's participation in
the Small Business Lending Fund program, including uncertainties
concerning the potential future redemption by us of the U.S.
Treasury's preferred stock investment under the program, including
the timing of, regulatory approvals for, and conditions placed
upon, any such redemption; (xiii) costs and effects of litigation,
including settlements and judgments; and (xiv) competition.
The Company wishes to advise readers that the factors listed above
and other risks described from time to time in the Company's
filings with the SEC 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.
SOURCE Great Southern Bancorp, Inc.