Great Southern Bancorp, Inc. Annual Report 2003

FY2003 Annual Report · Great Southern Bancorp, Inc.

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2003 Annual Report for Shareholders

ANNUAL MEETING

GENERAL INFORMATION

The 15th Annual Meeting of

Shareholders will be held at 10 a.m.
on Tuesday, May 4, 2004, at the
Missouri Sports Hall of Fame,
Springfield, Missouri.

CORPORATE PROFILE

Great Southern Bancorp, Inc.
("GSBC" or the "Company") is the
holding company for Great
Southern Bank (the "Bank"), which
converted from a mutual to a stock
company in December 1989. In June
1998, the Bank converted from a
federal savings bank charter to a
Missouri chartered trust company.
Great Southern was founded in

1923 with a $5,000 investment, 4
employees and 936 members, and
has grown to over $1.5 billion in

assets, with more than 625
employees and in excess of 100,000
customers.

The Bank is headquartered in
Springfield, Missouri and operates
29 full service branches in 15
counties throughout the Ozarks; 11
in Springfield.

A community-oriented company,

GSBC and its subsidiaries offer a
full range of banking, lending,
investment, insurance and travel
services.

CORPORATE MISSION

The mission of Great Southern is to

build winning relationships with our
customers, associates, shareholders
and communities. We carry out our
mission through our core values of
teamwork, mutual respect, doing what’s
right and uncompromising ethical
standards.

We are deeply committed to our

relationships with our four
constituencies and view each with
equal importance. We build winning
relationships with our customers and

help them make their lives better and
easier with our products and services.
We build winning relationships with our
associates, who have chosen our
company to share their skills and
talents and who deserve the
opportunity to reach their full potential.
We build winning relationships with our
shareholders, who have entrusted us
with their wealth and financial future
and with our communities, upon which
our company’s strength, prosperity and
future rest.

STOCK INFORMATION

The Company’s
Common Stock is
listed on The
NASDAQ Stock
Market under the
symbol "GSBC".

As of December 31,

2003, there were
6,851,353 total shares
outstanding and
approximately 2,100
shareholders of
record.

The last sale of the
Company’s Common
Stock on December
31, 2003 was $46.37.

HIGH/LOW STOCK PRICE

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

DIVIDEND DECLARATIONS

First Quarter
Second Quarter
Third Quarter
Fourth Quarter

Year Ended
December 31, 2003
Low
High
$36.14
$39.74
35.75
39.70
37.99
43.86
38.90
47.32

Year Ended
December 31, 2003
$.150
.180
.180
.200

Year Ended
December 31, 2002
Low
$26.70
31.40
34.51
35.65

High
$32.70
39.82
41.34
39.09

Year Ended
December 31, 2002
$.265
.140
.140
.150

CORPORATE HEADQUARTERS
1451 E. Battlefield
Springfield, MO 65804
1 (800) 749-7113

MAILING ADDRESS
P.O. Box 9009, Springfield, MO 65808

DIVIDEND REINVESTMENT
For details on the automatic reinvestment
of dividends in common stock of the
corporation call:
1 (800) 725-6651 or write:

Great Southern Bancorp, Inc.
Shareholder Relations
P.O. Box 9009
Springfield, MO 65808

FORM 10-K
The Form 10-K report filed with the
Securities and Exchange Commission may
be obtained from the Company’s internet
website at www.greatsouthernbank.com
or without charge by request to:

Rex Copeland
Treasurer
Great Southern Bancorp, Inc.
P.O. Box 9009, Springfield, MO 65808

INVESTOR RELATIONS
Teresa Chasteen-Calhoun
or Kelly Polonus
Great Southern Bank
P.O. Box 9009, Springfield, MO 65808

AUDITORS
BKD, LLP
Hammons Tower
P.O. Box 1190
Springfield, MO 65801

LEGAL COUNSEL
Silver Freedman & Taff L.L.P.
1700 Wisconsin Ave., NW
Washington, DC 20007

Carnahan, Evans, Cantwell & Brown
P.O. Box 10009
Springfield, MO 65808

TRANSFER AGENT AND REGISTRAR
Registrar & Transfer Company
10 Commerce Drive
Cranford, New Jersey 07016

2003 Annual Report for Shareholders

Contents

2 Chairman’s Message

Our performance continues to gain recognition for return on
equity, expense management and market share.

8 Around the clock.

Great Southern is expanding the horizon on customer
convenience and accessibility.

10 On the horizon.

Finding new and better ways to serve our customers has led
to the area’s most comprehensive menu of financial products
and services.

12 Around the corner.

As our capability has grown, we’ve been able to explore other
significant opportunities as a result of our reputation, size and
know-how.

16 Across the desk.

Our associates’ talents and dedication play crucial roles in the
company’s success and drive its ultimate performance.

18 Through the community.

Involvement in our communities has resulted in a growing
variety of partnerships spreading across the region in many
new and powerful ways.

20 Our team profile

Great Southern Bancorp, Inc. and Great Southern Bank
Directors and Officers

Message from the Chairman
Great Southern’s 80th

year, 2003, was
another good year

for the company.

are declining. Our stock
continues to perform
extremely well, up 26% over
the prior year end and the
value of each dollar
invested has grown about
31 times since going public
in 1989. As of December 31,
2003, each share of stock
purchased at $9.00 in the
initial public offering had a
value of approximately
$278. In addition, we have
regularly raised our cash
dividend, including a 33%
increase from fourth
quarter 2002 to fourth
quarter 2003.

Our performance

continues to gain
recognition for return on
equity, expense
management and market
share. In the June 2003
edition of the ABA Banking
Journal, all publicly held
U.S. banks and thrifts with
assets over $1 billion were
ranked by 2002 return on
average equity. With a ROE
of 24.25%, Great Southern
ranked 11th on the list of
the 50 top performing
financial institutions with

the distinction of being the
only Missouri-based
financial institution on the
list.

In the first nine months of
2003, the company achieved
an efficiency ratio of 45.62%,
with the American Banker
ranking Great Southern in
the top 8% of the 500 largest
bank holding companies.
Locally, in our home base of
operations, Greene and
Christian Counties in
Missouri, we once again led
in market share with 17.9%
of the deposits with our
closest pursuer at 11.8%
(based on June 30, 2003
FDIC data).

Another noteworthy
accomplishment was Great
Southern’s ranking in the
Springfield, Missouri News-
Leader’s “Best of the
Ozarks” readers’ poll, where
we were voted “Best Bank,”
“Best Travel Agency” and
“Best Investment Brokerage
Services.”

The company was also
honored by inclusion in the
Springfield Business
Journal’s “Dynamic Dozen” –

It was an extremely
challenging year, as it was
for most of corporate
America. We fared well, in
part, because in uncertain
times, it’s just natural for
individuals and businesses
to turn to those they know
and trust…security,
dependability, value and
convenience…become even
more important. These
values have become
synonymous with Great
Southern through the years.
Therefore, in this annual
report, as we embark on our
15th Anniversary as a public
company, and as I enter into
my 30th year as Chairman,
we revisit, with “The Sun
Never Sets” theme, the very
principles which brought us
to where we are today.

Today GSBC is achieving

nearly double digit
increases in operating
earnings per share and
deposit and loan growth
while non-performing assets

Five Year
Cumulative
Total Return**

Great
Southern
Bancorp

Nasdaq US
Companies

Nasdaq
Financial

Net Income*
(per share of common stock)

$3.33

Market Share*
Market Share*
Based on Deposits in Greene
Based on Deposits in Greene
& Christian Counties
& Christian Counties

17.9%

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Signature Bank

Guaranty FSB
* Data Source: FDIC Website

U S Bank

Bank of America

Empire Bank

Commerce Bank

Great Southern Ban

250

200

150

100

JUN
98

DEC
98

DEC
99

DEC
00

DEC
01

DEC
02

DEC
03

Data as of: June 30, 2003.

** Graph assumes that $100 was invested in the Common Stock
on June 30, 1998 and that all dividends were reinvested.

$3.00

2.50

2.00

1.50

1.00

0.50

0.00

JunJun 90
Junun 90
Jun 90
’90†

JunJune 9
Junune 9
June 95
’95

DecDec 00DecDec 00
Dec 00
’00

Dec 03
Dec 03
Dec 03Dec
Dec
’03

† Figure stated is as if the company was
publicly traded for all of the fiscal year
1990 (conversion was in Dec. 1989).

the area’s fastest-growing
companies based on gross
revenues for the last three
fiscal years. Great Southern
was the only financial
institution to make the list.
How did we attain these
results? By remaining true
to our mission, our values
and our strategic business
plan. Through the years we
have developed a
professional, talented,
energetic, disciplined and
committed management
team that understands what
is required to achieve
success. Each member of
this team has a financial
interest in GSBC stock and
is rewarded for seeing that
stockholders share in our
success. The team is
involved in an ongoing
strategic review and plan
process. Through this
process we “plan our work
and work our plan.”

We are pleased to report
that calendar year 2003 was
another banner year with
net income of $3.33 per
share ($23.1 million). In
addition, the company

posted growth in all the
following areas: total assets
were $1.54 billion (up 9%);
gross loans receivable were
$1.14 billion (up 9%); and
total deposits were
$1.09 billion (up 11%).

Non-performing assets
were $16.4 million, down
$2.4 million from December
31, 2002. Non-performings,
as a percentage of total
assets, were 1.07%.

The company continues

to raise the mark on an
already healthy capital
position. As of December 31,
2003, stockholders’ equity
was $119.5 million (7.8% of
total assets), equivalent to a
book value of $17.45 per
share.

Of course, any successful

year is underscored by
contributions from key
departments and initiatives.
It is important that we
highlight a few of these
performances.

To expand and diversify
our loan portfolio, we opted
to open a loan production
branch in Kansas City,
Missouri, and a loan

production office in Rogers,
Arkansas in 2003.

The Kansas City office
originated $41 million in
2003 and now has $85
million in outstanding loan
balances. The Northwest
Arkansas LPO opened in
September, and by year’s
end had $33 million in
originations and
outstanding balances of
$57 million. Research is
currently in progress to
determine potential sites for
additional LPOs.

Our Correspondent

Banking group had a
phenomenal year – balances
more than doubled, from
$43 million at year-end 2002
to $93 million at December
31, 2003. Our
Correspondent Banking
department has been two to
three years in the making,
but in the past 18 months an
aggressive direct mail and
one-on-one calling program
has paid significant
dividends.

Equally successful in

providing relatively low-cost
deposits was the Corporate

Services Team. In 2002, this
commercial business team
brought in $18 million in
deposits. In 2003, the team
surpassed the $50 million
mark – $23 million of which
were commercial and retail
deposits and the remainder
were public funds.

Great Southern Travel
continued to shore up its
dominance of both leisure
and corporate travel
markets in southwest and
central Missouri with
acquisitions of House of
Travel and McDaniel Travel.
The agency is now one of
the largest 100 in the
industry.

We are also making

exciting strides in associate
development. From a new
approach to employee
orientation, to online
training, to an internal
communication link, we are
striving to give our
associates the resources
they need to reach their full
potential. At the center of
this initiative is a newly
formalized corporate
mission, core values and

Total Assets
T
Total Assets
in billions

$1.54

Total Deposits
T
Total Deposits
in billions

$1.14

Total Loans
T
Total Loans
in billions

$1.09

Commercial Real Estate
& Construction Loans
in millions

600

$622

5
1.55

2
1.2

9
0.9

6
0.6

3
0.3

0
0.0

DecDec 90DecDec 90
Dec 90
’90

DecDec 95DecDec 9
Dec 95
’95

DecDec 00DecDec 00
Dec 00
’00

Dec 03
Dec 03
Dec 03Dec
Dec
’03

1.0

0.8

0.6

0.4

0.2

0.0

Dec 90
Dec 90
Dec 90Dec
Dec
’90

Dec 95
Dec 95
Dec 95Dec
Dec
’95

Dec 00
Dec 00
Dec 00Dec
Dec
’00

Decec 03Decec 0
Dec 03
’03

1.0

0.8

0.6

0.4

0.2

0.0

500

400

300

200

100

Dec 90DecDec 9DecDec 9
’90

DecDec 9DecDec 9
Dec 95
’95

DecDec 00DecDec 0
Dec 00
’00

DecDec 03DecDec 03
Dec 03
’03

Dec 90
Dec 90
Dec 90Dec
Dec
’90

Dec 95
Dec 95
Dec 95Dec
Dec
’95

Dec 00
Dec 00
Dec 00Dec
Dec
’00

Decec 03Decec 0
Dec 03
’03

*All per share amounts have been adjusted to reflect stock splits. The company converted to a calendar year in December 1998; therefore prior years’ net income numbers will reflect a June 30 fiscal year end.

Message from the Chairman

guidelines. In the coming
year, there will be
significant internal focus on
instilling and incorporating
the philosophy throughout
our culture.

With 2003’s strong

foundation, we are
optimistic about the year
ahead. We are anticipating
the move, during the
second quarter, into our
new 70,000 square foot
state-of-the-art operations
center. This will free up
much needed space at our
1451 E. Battlefield
headquarters for more loan
officers/originators in the
residential and commercial
loan areas. The new

location will allow
corporate services and
other key teams to be
located together under one
roof, thus enhancing
referrals, selling and
servicing of customers and
teamwork.

We are positioned well,

with respect to our
competitors, across all
business and product lines
and have the strength and
flexibility to perform in
either a growth
environment or one with
more subdued economic
activity. There will continue,
from a corporate
standpoint, to be an
emphasis on non-interest

income generation and
expense management. In all
our markets, the primary
focus will be expanding
relationships with existing
customers while adding new
customers.

We are pleased to

announce the appointment
of Earl A. Steinert Jr. to the
Board of Directors. As a
practicing CPA with more
than 40 years of business
experience, Mr. Steinert’s
expertise will serve us well,
especially in the area of
corporate governance.
In closing, I want to

express my appreciation to
our Associates for their
dedication and

commitment; to our
Customers for their
business and loyalty; to our
Shareholders for their
investment and confidence;
and to our Communities for
their support.

We look forward to
continuing to serve and to
meeting the opportunities
and challenges that 2004
and continued profitable
growth will provide. We
pledge our best efforts in
the year ahead.

William V. Turner
CHAIRMAN

The following tables set forth
selected consolidated
financial information and
other financial data of the
Company. The selected
balance sheet and statement
of income data are derived
from our consolidated
financial statements, which
have been audited by BKD,
LLP. See Item 7 of the Annual
Report on Form 10-K,
“Management's Discussion
and Analysis of Financial
Condition and Results of
Operations,” and Item 8 of the
Annual Report on Form 10-K,
“Financial Statements and
Supplementary Information.”
Results for past periods are
not necessarily indicative of
results that may be expected
for any future period.

Selected Consolidated Financial Data

2003

2002

December 31,
2001
(Dollars in thousands)

2000

1999

Summary Statement of Condition Information:
Assets
Loans receivable, net
Allowance for loan losses
Available-for-sale securities
Held-to-maturity securities
Foreclosed assets held for sale, net
Allowance for foreclosed asset losses
Deposits
Total borrowings
Stockholders’ equity (retained
earnings substantially restricted)
Average loans receivable
Average total assets
Average deposits
Average stockholders’ equity
Number of deposit accounts
Number of full-service offices

$1,540,723
1,094,197
20,844
259,600
53,944
9,034
---
1,137,427
276,584

119,548
1,056,338
1,437,869
1,057,798
113,822
74,822
29

$1,402,638
997,647
21,288
236,269
52,587
4,328
---
1,021,957
268,494

104,709
1,000,044
1,344,989
963,255
95,728
73,861
29

$1,323,103
964,886
21,328
233,805
37,465
3,057
150
886,870
333,666

85,254
936,117
1,193,772
802,286
79,484
71,998
28

$1,130,178
890,784
18,694
126,409
27,758
2,688
---
751,042
291,573

71,049
843,170
1,013,963
676,633
69,208
73,394
27

$964,803
766,807
17,293
79,891
37,646
817
---
625,900
261,642

68,926
746,979
928,182
612,503
68,758
73,932
27

4
4

Selected Consolidated Financial Data

Summary Income Statement Information:
Interest income:

Loans

Investment securities and other

Interest expense:

Deposits

Federal Home Loan Bank advances

Short-term borrowings and trust preferred securities

Net interest income

Provision for loan losses

Net interest income after provision for loan losses

Noninterest income:

Commissions

Service charges and ATM fees

Net realized gains on sales of loans

Net realized gains (losses) on sales of
available-for-sale securities

Other income

Noninterest expense:

Salaries and employee benefits

Net occupancy expense

Postage

Insurance

Advertising

Office supplies and printing

(Income) expense on foreclosed assets

Other operating expenses

Income before income taxes

Provision for income taxes
Net income

2003

$63,283

12,896
76,179

16,582

5,400

1,182
23,164

53,015

4,800

48,215

5,859

11,214

2,187

795

1,775
21,830

18,739

6,335

1,691

683

735

855

1,939

4,615
35,592

34,453

11,362
$23,091

For the Year Ended December 31,
2001
2002
(Dollars in thousands)

2000

1999

$64,062

16,099
80,161

$76,107

13,390
89,497

$77,399

8,751
86,150

$63,386

4,652
68,038

22,244

6,852

1,241
30,337

49,824

5,800

44,024

5,786

8,430

1,575

3,443

1,186
20,420

15,842

5,337

1,426

514

622

828

597

3,765
28,931

35,513

12,301
$23,212

32,405

10,339

3,163
45,907

43,590

5,200

38,390

5,765

8,352

1,756

139

1,237
17,249

15,126

4,730

1,233

485

686

774

216

4,156
27,406

28,233

9,475
$18,758

32,244

14,312

2,305
48,861

37,289

3,106

34,183

7,024

5,968

570

(9)

1,135
14,688

13,642

4,529

1,152

521

713

703

(295)

4,244
25,209

23,662

8,184
$15,478

24,966

9,403

1,094
35,463

32,575

2,062

30,513

7,054

4,502

1,098

316

2,379
15,349

13,765

4,124

1,006

639

611

991

---

4,031
25,167

20,695

7,018
$13,677

Selected Consolidated Financial Data

2003

At or For the Year Ended December 31,
2001

2000

2002

(Dollars in thousands, except for per share data)

Per Common Share Data:

Basic earnings per common share
Diluted earnings per common share
Cash dividends declared
Book value
Average shares outstanding
Year-end actual shares outstanding
Year-end fully diluted shares outstanding

Earnings Performance Ratios:
Return on average assets(1)
Return on average stockholders’ equity(2)
Non-interest income to average total assets
Non-interest expense to average total assets
Average interest rate spread(3)
Year-end interest rate spread
Net interest margin(4)
Adjusted efficiency ratio (excl. foreclosed assets)(5)
Net overhead ratio(6)
Common dividend pay-out ratio

Asset Quality Ratios:

Allowance for loan losses/year-end loans
Non-performing assets/year-end loans and foreclosed assets
Allowance for loan losses/non-performing loans
Net charge-offs/average loans
Gross non-performing assets/year-end assets
Non-performing loans/year-end loans

1.87%
1.46
282.02
.50
1.07
.66

$3.37
3.33
.71
17.45
6,854
6,851
6,941

1.61%
20.29
1.52
2.47
3.68
3.60
3.89
44.96
.96
21.32

$ 3.38
3.34
.70
15.27
6,863
6,857
6,940

1.73%
24.25
1.52
2.11
3.59
3.70
3.85
40.34
.63
20.81

2.09%
1.84
146.60
.58
1.34
1.43

$ 2.72
2.70
.50
12.42
6,890
6,863
6,929

1.57%
23.60
1.44
2.28
3.37
3.44
3.80
44.69
.85
18.52

2.16%
1.22
237.03
.27
.91
.91

$ 2.16
2.12
.50
10.30
7,166
6,897
7,098

1.53%
22.36
1.55
2.52
3.26
3.26
3.81
49.07
1.04
23.58

2.06%
1.66
149.72
.20
1.34
1.37

1999

$ 1.79
1.76
.50
9.20
7,620
7,489
7,601

1.56%
19.98
1.75
2.87
3.36
3.40
3.86
52.51
1.06
28.41

2.21%
1.26
194.48
.23
1.05
1.18

Balance Sheet Ratios:

Loans to deposits
Average interest-earning assets as a percentage of
average interest-bearing liabilities

Capital Ratios:

Average stockholders’ equity to average assets
Year-end tangible stockholders’ equity to assets
Great Southern Bank:
Tier 1 risk-based capital ratio
Total risk-based capital ratio
Tier 1 leverage ratio

Ratio of Earnings to Fixed Charges:(7)

Including deposit interest
Excluding deposit interest

96.20%

97.62%

108.80%

118.61%

122.51%

112.30

111.22

110.67

111.06

111.95

7.92%
7.75

7.12%
7.47

6.66%
6.44

6.83%
6.26

7.41%
7.10

10.86
12.12
8.88

2.49x
6.23x

10.32
11.58
8.22

2.17x
5.39x

8.93
10.20
7.18

1.62x
3.09x

8.91
10.17
7.36

1.48x
2.42x

8.97
10.23
7.45

1.58x
2.97x

(1) Earnings divided by average

total assets.

(2) Earnings divided by average

stockholders’ equity.
(3) Yield on average interest-
earning assets less rate on
average interest-bearing lia-
bilities.

(4) Net interest income divided
by average interest-earning
assets.

(5) Non-interest expense divid-
ed by the sum of net interest
income, on a tax equivalent
basis, plus non-interest
income.

(6) Non-interest expense less

(7)

non-interest income divided
by average total assets.
In computing the ratio of
earnings to fixed charges: (a)
earnings have been based on
income before income taxes
and fixed charges, and (b)

fixed charges consist of inter-
est and amortization of debt
discount and expense includ-
ing amounts capitalized and
the estimated interest por-
tion of rents.

Around the clock.

Minute by minute.

At any hour.

On your schedule.

On the horizon.

One step ahead.

Never stopping.

Wherever you travel.

Around the corner.

Always within reach.

We’re here for you.

Whenever you need us.

Across the desk.

At your service.

At your convenience.

Without hesitation.

Through the
community.

In touch.

Right here.

Right now.

The Great Southern
sun never sets.

Arou n d t h

Although the origin of

the phrase “bankers’
hours” is unknown,

its popular definition as “a
short work day” has
survived for generations.
Undoubtedly it originated at
a time when bankers closed
early each day to tally the
morning’s transactions. But
as banking has evolved,
driven by competition,
technology and a greater
emphasis on service,
today’s youngest new
customers nevertheless
respond to the old joke
“bankers’ hours” with a
knowing smile. Somewhere
deep in our collective
consciousness there

hours, the concept of
banking convenience has
both broadened and
returned to its roots. The
underlying consumer
question is the same one it’s
always been: “How
accessible is my money?”
When convenience was

Down but not out.
Like most of Stockton’s
downtown square, our branch
there took a direct tornado hit in
May ... and disappeared. As
crews cleaned up the rubble, we
set up a “trailer branch” next to
our remaining foundation and
turned the lights back on. A
permanent new branch is under
construction at the same address,
bigger and better than before. ❷

e C l ock

remains a certain anxiety
associated with being
physically apart from our
money.

The latest marketing
surveys continue to show
“convenience” as the
primary reason people bank
where they bank. But as
credit cards, electronic
funds transferring and
online banking have
reduced our dependence on
pocket cash, nearby drive-
thrus and indeed, bankers’

Battlefield.
Gary DeLong was back making
service calls – out of a rented
building and with hastily-salvaged
equipment – within 48 hours of
the Sunday afternoon tornado
that leveled DeLong Plumbing
and many of his neighbors in
Battlefield. His real-time support
team at Great Southern included
Corporate Services officer Brad
Heeren (left) and Gene Summers,
Vice President - Insurance. ❷

defined by bankers’ hours,
Great Southern stayed open
longer than other banks.
When convenience was
defined by proximity, Great
Southern opened more

branches, spread to nearby
communities and cast an
ATM network across the
region to catch commuters
on their way to work and
home.

As convenience has been
refined over the years, and
defined by other measures
including product and
service selection,
responsiveness and
capacity to help, Great
Southern has continued to
expand the horizon on

customer convenience and
accessibility.

Today, Great Southern
remains open longer than
its competitors in every
community we serve. We
serve more communities in
southern Missouri than any
other bank, and maintain
the region’s largest network
of ATMs. We offer a broader
selection of financial
products and services,
including corporate and
correspondent banking,

insurance, travel and
brokerage services, a 24-
hour phonebank and free
online banking ’round the
clock. As we’ve become the
area’s largest home-owned
bank, our capacity to help
has grown and we’ve
become a vital community
partner and ready resource
for special financial
assistance and service
whenever and wherever
we’re needed.

In short, the sun never

sets on Great Southern
convenience.

Best of the Ozarks.
Demographically representative
or not, Springfield News-Leader’s
annual “Best of the Ozarks”
reader poll mirrored much of our
internal research. This year,
Great Southern took First Place in
four categories: Best Bank, Best
Investment Brokerage Services,
Best Travel Agency and Best
Bank Teller. ➛

The sun never sets.
Celebrating Great Southern
convenience, TV spots
emphasized the bank’s many
branches, ATMs, employees and
’round-the-clock consumer touch
points, “which make it even
easier to find out if we’re the right
bank for you.” (cid:4)

Onth e
Our ongoing

determination to
find new and better

ways to serve our
customers has led to the
development of the area’s
most comprehensive menu
of financial products and
services, and we’re adding
faster than we’re
subtracting.

As other banks have
changed hands, explored
niches, consolidated
operations and specialized
over the years, it’s no
surprise that many
consumers today find
themselves maintaining
multiple bank relationships.
Indeed, considering the
evolution of everything
from credit cards to online
brokerage, from credit
unions where you work to
on-the-spot financing where
you shop, it’s more
uncommon today NOT to

Welcome aboard.
The name has changed but the
new Great Southern Travel at the
Galleria retains the expertise of
Branch Manager Marvin
McDaniel and son Brian who
now oversees corporate sales at
our travel headquarters on South
National. Linda Strait, House of
Travel owner for 25 years, is our
new Operations Manager. ❿

We’re trying to

keep it that way.

A new family of

Great Southern
VISA® cards for 2003
revealed a whole
new horizon of
benefits for credit
card holders,
combining Platinum level
card service with either
cash back on purchases or
earned travel rewards.
Compare that to any card
you’re carrying now. It’s
more for your money.

A new internal initiative,

“Partners for Success”
shines the light on our small
business expertise and

service ... available at the

nearest Great
Southern branch.
Home office
Commercial
Lending and
Corporate Services
officers partner with

individual branch managers
to provide their local
business clients full-
spectrum business banking,
including easy applications

Everything under the sun.
Heather Ramsey combines on-site,
“full-Bancorp” customer service
with an impressive list of
amenities for busy VIP clients
including physicians, attorneys
and CPAs. ❷

i z o n

have multiple bank
relationships, whether you
stop to think about it or not.
Great Southern has never
stopped thinking about it. In
fact, as we enter our 81st
year, we find more promise
than ever in our continued
focus on what got us here in
the first place.
Comprehensive personal
service begets
comprehensive loyalty, and
for Great Southern
customers, the dawn of new
financial service and
convenience has always
appeared first at home. Our
customers don’t really need
another bank.

From an infant’s first
college savings account to
their first checking account,
credit card and car loan as a
young adult – through home
loans, family vacations,
business ventures,
retirement and their kids’
kids’ dreams – it’s possible
to enjoy the best in banking
all along the way, all the
while building on a strong
and mutually loyal bank
relationship.

and quick turnaround on
loans up to $150,000.

In our outlying branches,
Great Southern continues to
spread big bank service and
expertise to our small
community neighbors. In
the past year, the bank
significantly expanded its
branch sales force with the
addition of 24 new Personal
Bankers.

Great Southern Financial

The right plan.
Retirement Plan Consultant Greg
Cox presents on-site seminars to
help business owners and their
employees discover the best way
to achieve their mutual goals for
financial security. ❷

Services now fields a team
of Series 7-licensed “team
leaders” to assist branch
personnel in on-the-spot
sales of fixed annuities
across the bank’s entire 120-
mile-radius branch network.
Building on its full-service
capability in affiliation with
Raymond James, our
Financial Services division
also added a full-time
Retirement Plan Specialist
to support the bank’s
Corporate Services team at
the client level. For our
investor and business
clients who expect top
quality funds management,
it just keeps getting better.

client services comes into
sharpest focus at our VIP
Banking level. VIP Banking
Director Heather Ramsey
and her staff work closely
with all internal business
units to offer our entire
menu of products and
services to busy clients at
work or home, on their
schedules, ala carte, and at
their convenience.

Are we trying to be “all
things to all people”? Not
exactly. We’re trying to be
one thing to the people we
know: Their single, best
financial services provider
in the Ozarks.

Bigger is better in the
travel industry as well. In
August, our travel agency
acquired the 35-year-old
House of Travel in
Springfield’s Brentwood
Center, a seven-person
agency devoted to leisure
travel. The addition of
McDaniel Travel in January
underscored Great Southern
Travel’s commitment to
corporate travelers as well.
Together, these key
acquisitions further
strengthened Great
Southern Travel’s position
as the largest travel agency
in southwest and central
Missouri – a win-win move
that gives us even more
clout in negotiating the best
travel deals for our
customers.

As broad as it is, the full
spectrum of Great Southern

The big picture.
Team Leaders Shannan Snider,
Donna Morris, Rebecca Williams
and Marcy Dollens conduct
regular sales and product training
clinics to help branches work
across business lines and build
more comprehensive customer
relationships. ➛

Partners for Success.
Commercial Loan Officer Kent
Lammers helps Branch Manager
Tenya Privett offer big bank loan
service to her nearby business
clients like USA Furniture’s Barry
Hogan, center. (cid:4)

e C o rner

Arou n d t h

As we’ve invested in

new services for

existing customers,

we’ve realized a return far
greater than just solidifying
our primary bank
relationships with them.
Loyal customers refer new
customers. Who are
simultaneously served by
our growing product
portfolio and delivery
channels. Which in turn
reveal new opportunities for
growth as our capability
and influence spreads.

Customer demand leads

to obvious growth

initiatives like the opening
of an additional branch in
Nixa, the relocation and
expansion of our facility on
north Glenstone in
Springfield, and plans for a
second branch in the
vibrant Ozark community to
open later this year.
Other growth

opportunities are less
obvious, but no less
important. Our continued
interest in community
development has uncovered
significant other
underserved markets,
including the region’s
expanding Hispanic and
retirement communities. We
go where there’s a need, and
when we go, we go all out.
Our Hispanic outreach

program, “Sueños Sin

FronterasSM” (Dreams
Without Borders), was
introduced just last year but
already serves as a model
for other local businesses
seeking to address the
specific cultural needs of
our area’s rapidly-growing
Spanish-speaking
population. Key elements of
the program include
bilingual tellers and ATMs,
co-sponsorship of internal
and external literacy
programs in partnership

with local advocacy and
resource organizations, and
the development of
specialized services like a
unique electronic
remittance system that
eliminates costly wire fees
on funds transfers to family
members across the border.
It’s a new market for us, but
the rules are familiar: It’s all
about service, filling a need
and taking care of each
customer.

Hablamos Español.
Great Southern’s culturally-
specific services include Free
Checking, “borderless” ATM cards
for home and away, 24-hour
phone banking in Spanish and a
growing staff of bilingual
associates that includes a
dedicated loan officer. ➛(cid:1)❷

North and South.
Grand Prize winners of free
airline tickets to Mexico at the
Grand Opening of our new Nixa
North location were Gay and
Kevin Howard (shown here with
Branch Manager Keith Willcut).
The Howards opened their first
Great Southern account in 1997
at our southwest Nixa branch on
Mt. Vernon. (cid:4)

Parkmoor at the Gardens.
Each branch is open once a
week to provide on-site, full-
service banking to
residents, their families and
facility staff members, even
if they bank elsewhere. As
Community Development
VP Brian Fogle likes to put
it, “We’re doing well by
doing good.”

As our capability has
grown, we’ve been able to
explore other significant
opportunities simply as a
result of our reputation, size
and know-how. As a “bank’s
bank,” Great Southern offers

The development of
specialized services also
marked our entry into the
area’s growing retirement
and residential living market
– quite literally. Great
Southern’s innovative On-
Premise Banking program
effectively established five
new bank branches inside
prominent area independent
living facilities, including
The Cambridge, Creekside
at Elfindale, Maranatha
Village, The Montclair and

Redefining banking
convenience.
On-Premise personal bankers
Jeremy Tate and Heather Austin
man dedicated branch offices
inside independent living
facilities each week to provide
residents practically every service
our regular branches offer. ➛

The bank for business.
A specially-trained team
coordinates services, referrals
and hand-off procedures between
departments to offer commercial
clients single-source business
banking.Corporate Services
Officers Melanie Robbins, Brad
Heeren, Laura Beaver and
Bonnie Watkins were
instrumental in opening accounts
totaling over $52 million during
the year. ➛

Arou n d t h

a full range of
correspondent banking
services to local banks,
credit unions and other
financial institutions,
including check, coin and
currency processing, ACH
origination, credit services,
account reconciliation and
analysis services. Our new
Correspondent Banking
initiative posted balances of
$93 million by year-end
2003.

e C o rner

Customer referral has
also spurred a number of
important growth
initiatives, including the
development of commercial
loan business in new
territories like Kansas City
and Northwest Arkansas.
Great Southern has been
familiar with these two
growth markets for some
time, primarily as a result of
serving loan needs for local
clients with commercial
interests in those areas. In
2003, the bank opened
dedicated loan production
offices in both Kansas City
and Rogers, Arkansas to
more conveniently serve

those customers, capitalize
on referrals and attract new
business.

Our Kansas City branch
opened in January, 2003 at
9229 Ward Parkway and
experienced strong growth
through the year, with $41
million in commercial loan
originations and more than
$85 million in outstanding
loan balances at year end.
In September, 2003 our
Northwest Arkansas office
opened in Rogers at 2104 S.
54th Street to serve the
Northwest Arkansas
corridor, which includes the
cities of Fayetteville,
Rogers, Springdale and

Bentonville. A Milken
Institute report recently
named the Northwest
Arkansas corridor as the
strongest regional economy

By land or by sea.
Consumer Lending Vice President
Mary Allison and her team have
helped the bank develop a strong
indirect lending market working
with area auto, truck, RV and
motorcycle dealers to offer their
customers attractive on-the-spot
financing. A significant new
client, Tracker Marine produced
more than $8 million additional
loan volume in 2003. With Mary
are TMFS Sales and Operations
Manager Jim Elliff and Assistant
Sales and Operations Manager
Brian Zumwalt. ❷

Sun signs.
Job site signs crowd the
parking lot at our new loan
production office in Rogers,
Ark., all earmarked for sites
like this one where
commercial loan officers Ron
Pender and James Brookhart
support John Montgomery
(center), an experienced
developer of nursing homes
like the new Bradford Park
Manor in Rogers. (cid:4)

14
14

at home. As Kansas City
Manager Cal Glasco likes to
put it, “We simply shower
our customers and
prospects with more
expertise and service than
they expect.”

Or put another way, “the

sun never sets on Great
Southern service.”

in the nation. We don’t have
any reason to doubt it. Loan
originations in 2003 for the
Northwest Arkansas office
totalled $33 million by year
end, with outstanding loan
balances of $57 million at
year end.

Our recipe for success in
these new territories is the
same one we’ve always used

The bank’s bank.
Gwen Hager (center) provides a
full range of Correspondent
Banking services to clients like
Dianna Letterman and Julie
Wagner of the Postal Federal
Community Credit Union. ➛

One on one.
Corporate Services officer
Bonnie Watkins specializes in
tailoring bank services to the
specific needs of clients like
Drury University’s Vice
President of Administration
Raymond Worley III. ➛

Great Southern
hospitality.
In appreciation of our working
associates in real estate, the bank
hosted exclusive Sunset Mixers
for local realtor offices to
introduce a new Realtor®sRate
program that offers favorable
personal home loan rates,
complimentary neighborhood
surround mail service every time
they sell a house and in-house
servicing, on call. (cid:4)

Across t h

e D e sk

deliver on this mission
through our core values of
doing what’s right,
teamwork, mutual respect
and the highest ethical
standards of behavior.

Through the years, the

key to Great
Southern’s success
has been building winning
relationships on many
different levels. It is so
much a part of who we are
as a company that we’ve
incorporated it in a
restatement of our mission:
“Building winning
relationships with our
customers, associates,
shareholders and
communities.”

We expect everyone on
the Great Southern team to

Whether it’s working

across the desk with
customers, with another
Great Southern associate or
working out in the
community, our associates’
talents and dedication play
crucial roles in the
company’s success and
drive its ultimate
performance. As a company,
we are committed to
providing a fair, respectful
and challenging workplace
to ensure that our
associates continue to
thrive and grow.

Ongoing training is
essential, not only to help
our associates reach their
full potential, but to stay up
to speed and maintain our
role of leadership in a
quickly evolving industry.
New training programs in
2003 included advanced
classes on utilizing our
Customer Relationship
Management (CRM)
software system, and a
cross-training program in
which associates receive

comprehensive tools,
techniques and product
training to ensure they are
able to address all of our
customers’ needs, whether
the subject is banking,
insurance, investments or
travel – business or
personal.

Along with training,
practice makes perfect.
Another major initiative in
2003 restructured the
Commercial Lending team
to position itself for

Sun classes.
New recruits learn about Great
Southern’s core values, mission,
roles in the community and their
own positions on the team at
give-and-take orientation classes
that also help identify their
personal career paths and
potential at the company. (cid:3)

The new hot spot.
About 260 Great Southern
employees look forward to
expanded office accommodations
at our new 70,000 sq. ft.
Operations Center, to open in the
second quarter of 2004 on
Glenstone at St. Louis in
Springfield. ❿

additional growth and to
facilitate response to
market demand. A new
Quality Control area rids
relationship managers of
administrative duties so
they can focus more closely
on building relationships
with clients. The division
also worked collaboratively
across business lines to
develop new processes that
capitalize on the company’s
extensive branch network
and allow us to more
efficiently serve small
business clients.

Also to accommodate
future growth, the company
is completing renovation of
a former Albertson’s
grocery superstore that will
serve as our new
Operations Center in
Springfield. The 70,000
square-foot building will
house all operations
personnel under one roof
and provide an efficient,
state-of-the-art work
environment that facilitates
teamwork and internal
communication. As an
added bonus, the move

what they bring to Great
Southern, and as we
embrace the diversity of
many fresh new talents, we
also celebrate the loyalty
and dedication of many
long-term associates,
several with more than two
decades of company service
under their belts.

In terms of opportunity,
the sun never sets at Great
Southern.

Revolving around the sun.
A new intranet Web site, GS Link,
fosters internal communications
and provides all associates
ongoing, timely desktop information
and news about the banking
industry, their company and what’s
happening right now. (cid:3)

frees up much-needed office
space at the bank’s
headquarters on Battlefield
to accommodate and
centralize our expanding
residential and commercial
lending teams.

The benefits of Great
Southern’s continued focus
on the quality of its people
and across-the-desk work
environment have become
especially apparent in the
synergism of a team that
has grown to a population
of more than 600 today.
Every associate is unique in

Other Key Members of
the Management Team
(Standing) Coleen Viefhaus -
Assistant Vice President and
Regional Sales Manager, Paul
Potthoff - Vice President and
Commercial Lending Officer,
Heather Ramsey - Assistant Vice
President and Director of VIP
Banking, Bob Ogden - Vice
President and Commercial
Lending Officer; (seated l to r)
Emily Clayton - Director of
Training, Mary Allison - Vice
President and Consumer Lending
Manager, Kim Warren - Assistant
Vice President and Residential
Lending Manager, Renee Boyce -
Assistant Vice President of Loan
Operations, Denie' Patrick -
Assistant Vice President and
Regional Services Manager, and
Gwen Hager - Correspondent
Banking Officer ➛

20-, 30- and 40-
somethings.
Associates with 2 or more
decades of company service
include (standing) Bob Ogden -
21, Ann Turner - 20, Bill Turner -
30, David Westervelt - 27; (seated
l to r) Debby Ray - 22, Betty Hygh
- 45, Lois McPhetridge - 23, Teresa
Chasteen-Calhoun - 20, Jane
Enloe - 26, Carolyn Northington -
24, and Donna Taylor - 20. ➛

Thro u g
Great Southern’s long

commitment to help
nurture and develop

the communities it serves
has resulted in a growing
variety of partnerships that
continues to spread across
the region in many new and
powerful ways. Indeed,
we’re doing well by doing
good.

Especially as our

capacity to help has grown,
we understand that our
company plays significant
roles in the economic
prosperity of our
communities, whether it’s
helping individuals,

Just add sun.
Springfield’s own center-city
redevelopment reflects the
visionary effort at several of our
recent projects in Kansas City,
where historical, vacant
downtown buildings are being
reborn as luxury-living lofts and
condominiums. ❷

t h e Community

Corporations (CDCs) begin
operation, including the
Ozarks Regional CDC, Joplin
Capital Corporation, and in
response to the May 2003
devastating storms, the
Stockton CDC.

Just as important, we feel
strongly about our role as a
good neighbor. We want to
help where and when we
can -- whether it’s in a time
of crisis or to help an
ongoing worthwhile cause
that betters the lives of
individuals and the
community at large.

Our success has enabled
us to give back to many fine
organizations and in 2003,

the company contributed
$200,000 in cash to local
nonprofits to help them
provide much needed
services.

Our greatest source of
pride, however, is in our
associates, who have
contributed their
considerable resources in
time and talent to causes
throughout our
communities. From reading
a book to a student, to
walking in the American
Cancer Society Relay for
Life or folding clothes for a
clothing bank, Great
Southern associates show
they care about what is

businesses or institutions.
We must also ensure that all
members of our
communities have equal
access to financial products
and services. This is why we
created the Great Southern
Community Development
division, which just
completed its first full year
of operation.

Major Community
Development division
initiatives have included the
Hispanic outreach program,
On-Premise Banking, and
assistance to area
developers with affordable
housing and center city
revitalization projects.

To help small businesses,

Great Southern has
embraced a leadership role
in helping several area
Community Development

Go baby go!
The latest new Halftime Game,
Diaper Dash kept the crowd on
the edge of their seats as “Baby
Bear” contestants raced home to
parents’ welcoming arms ... and
winners’ circle prizes of $250,
$100 and $50 savings accounts. ❿

happening in the
community as they give of
themselves to make things
better.

In 2003, our associates
personally gave more than
$8,000 to help area
nonprofits through our new
monthly Caring and Sharing
Casual Day alone. For a
minimal donation,
associates can wear jeans to
work and help a great cause
at the same time.

This same spirit of caring

and sharing extends
throughout our

Partners in education.
With an armful of ribbons and
medals for McGregor
Elementary’s best readers, Denise
Baker, Marketing and Community
Development VP Brian Fogle
were big hits at the Read-A-Thon
assembly. So was the surprise
appearance of the SMS Boomer
Bear (Lori Hunt, marketing
department). ❷

communities in many ways
other than charitable giving.
At our Partner-In-Education
elementary school, Great
Southern associates were
instrumental in helping
McGregor achieve one of
the most successful
fundraisers in the school’s
history during our first
annual Read-A-Thon. Great
Southern associates read
books to kick off the drive,
funded awards and
presented medals to top
readers in each class.

Other school

partnerships include a long
tradition of support for
sports programs at area
high schools and
universities. Our ever-
popular basketball and
football Halftime Games
have become a favorite and
expected part of the action
for fans and have helped

support, the Missouri
Sports Hall of Fame
presented its 2nd Annual
Founders Award to
Chairman William Turner
and President/CEO Joseph
Turner to lead off its

ceremony of new inductees
for 2003.

Of course we appreciate
the recognition, but that’s
not why we do what we do.
We’re a part of our
community, by choice, and
as everybody around here
knows, the sun never sets
on Great Southern
involvement.

make Great Southern a
household name in
southern Missouri.

A major new attraction

gets up and running this
Spring with the opening of
Hammons Field, a $32
million downtown
Springfield ballpark funded
by Springfield businessman
and philanthropist John Q.
Hammons. The ballpark will
be the home of the
Southwest Missouri State
baseball Bears and a
proposed minor league
team. On opening day, the
festivities will have a warm
and familiar look to area
fans as Great Southern
unveils a top-of-the-5th-
inning pitching contest, the
Great Southern $trike Zone.

Underscoring our
company’s significant
contributions to regional
sports and community

Food banking.
Great Southern associates
collected more than 900 pounds
of food for the regional food
bank, Ozarks Food Harvest
(OFH), and raised more than
$1,200 for OFH’s "Food For
Thought" program, which reaches
out to school children in need of
proper nutrition at home. ❷

Directors and Executive Officers

Directors of Great Southern
Bancorp, Inc.
and Great Southern Bank

Back row
Earl A. Steinert, Jr.
Board Member
Co-owner, EAS Investment
Enterprises, Inc.
William V. Turner
Chairman of the Board
Joseph W. Turner
President and
Chief Executive Officer
Larry D. Frazier
Board Member
Retired – Hollister, MO
Julie T. Brown
Board Member
Shareholder, Carnahan, Evans,
Cantwell & Brown, P.C.
Front row
Thomas J. Carlson
Board Member
Partner, Carlson Gardner, Inc.
William E. Barclay
Board Member
Auto Magic/Jiffy Lube Chairman

Executive Officers of
Great Southern Bank

Left to right

Joseph W. Turner
President and
Chief Executive Officer
Doug Marrs
Vice President, Operations
William V. Turner
Chairman of the Board
Rex Copeland
Senior Vice President and
Chief Financial Officer
Steve Mitchem
Senior Vice President and
Chief Lending Officer

Officers of Great Southern Bank - Strategic Plan Team

Front row along counter
Doug Marrs
Vice President of Bank
Operations
Teresa Chasteen-Calhoun
Vice President and Director of
Marketing
Barby Pohl
Vice President of Branch
Administration
Kelly Polonus
Vice President and Director of
Corporate Communications

Second row
Steve Mitchem
Senior Vice President and Chief
Lending Officer
Byron Robison
Vice President and Agency
Manager
Great Southern Insurance
Kris Conley
Executive Vice President and
General Manager
Great Southern Travel Services
Tammy Baurichter
Vice President and Controller
Matt Snyder
Vice President and Director of
Human Resources

Third row
Gary Lewis
Vice President and Commercial
Lending Officer
Colleen Neill
Executive Assistant
Mike Bennitt
President - Great Southern
Financial Services
Debbie Flowers
Vice President and Credit Risk
Manager
Lin Thomason
Vice President and Director of
Information Services

Back row
Rex Copeland
Senior Vice President and Chief
Financial Officer/Treasurer
Brian Fogle
Vice President of Community
Development
Larry Larimore
Vice President and Compliance
Officer/Secretary
Joe Turner
President and Chief Executive
Officer

2003 Financial Information

Contents

2 Chairman’s Message.

4 Selected Consolidated Financial Data.

7 Management’s Discussion and Analysis of Financial Condition

and Results of Operations.

31 Independent Accountants’ Report.

32 Consolidated Statements of Financial Condition.

34 Consolidated Statements of Income.

35 Consolidated Statements of Stockholders’ Equity.

37 Consolidated Statements of Cash Flows.

40 Notes to Consolidated Financial Statements.