05 Tier 1 riskbased capital ratio was 13

These e iciency ratios include the impact o the hedge accountingentries or certain interest rate swaps. Excluding the e ects o theseentries, the e iciency ratio or the twel e months o 2008 was 58.11compared to 51.55 in the same period in 2007. Under the new pricingsystem, institutions in all risk categories, e en the best rated, are chargedan DIC premium. The Company's credit o set assessedpremiums or the irst hal o 2007, but premiums were owed by the Company inthe latter hal o 2007 and into 2008.

The Company incurred additional depositinsurance expense o $74,000 in the ourth quarter o 2008 compared to thesame period in 2007.The Company expects increased expense in 2009 as aresult o the DIC increasing insurance premiums or all banks. or the yearended December 31, 2008, compared to the same period in 2007, the Companyincurred additional deposit insurance expense o $827,000.Due to increases in the le el o oreclosed assets, oreclosure-relatedexpenses in the ourth quarter o 2008 were higher than the comparable 2007period by approximately $614,000. Similarly, oreclosure-related expensesincreased $2.8 million in the twel e months ended December 31, 2008, comparedto the same period in 2007.In addition to the expense increases noted abo e, the Company's increasein non-interest expense in the year ended December 31, 2008, compared to 2007,related to the continued growth o the Company. Late in the irst quarter o 2007, Great Southern completed its acquisition o a tra el agency in St.Louis. In addition, since June 2007, the Company opened banking centers inSpring ield, Mo and Branson, Mo. In the year ended December 31, 2008,compared to the year ended December 31, 2007, non-interest expenses increased$576,000 related to the ongoing operations o these entities. Non-GAAP Reconciliation: Three Months Ended December 31,20082007 Non-Interest Re enueNon-Interest Re enue Expense DollarsExpense Dollars(000)(000)(000)(000) E iciency Ratio $13,383 $23,55156.83$13,726 $24,71455.54Amortization o deposit broker origination ees 639(1.61) 523(1.18)Net change in air alue o interest rate swaps and related deposits (1,691) 4.26 (687) 1.55E iciency ratio excluding impact o hedge accounting entries $13,383 $22,49959.48$13,726 $24,55055.91 Net interest income plus non-interest income.Twel e Months Ended December 31,20082007 Non-Interest Re enueNon-Interest Re enue Expense DollarsExpense Dollars(000)(000)(000)(000) E iciency Ratio $55,706 $99,72755.86$51,707$100,82451.28Amortization o deposit broker origination ees 3,111 (1.81) 1,172(.61)Net change in air alue o interest rate swaps and related deposits (6,976) 4.06 (1,695).88E iciency ratio excluding impact o hedge accounting entries $55,706$ 95,86258.11$51,707$100,30151.55 Net interest income plus non-interest income.INCOME TAXES or the three months ended December 31, 2008, the Company's e ecti e taxrate was 27.1.

In uture periods, the Company expectsits e ecti e tax rate to be 32-35.CAPITALAs o December 31, 2008, total stockholders' equity was $234.1 million(8.8 o total assets). As o December 31, 2008, common stockholders' equitywas $178.5 million (6.7 o total assets), equi alent to a book alue o $13.34 per common share. Stockholders' equity at December 31, 2007, was $189.9million (7.8 o total assets), equi alent to a book alue o $14.17 percommon share.As o December 31, 2008, the Company's and the Bank'sregulatory capital le els were categorized as "well capitalized" as de ined bythe ederal banking agencies' capital-related regulations. On December 31,2008, and on a preliminary basis, the Bank's Tier 1 le erage ratio was 7.76,Tier 1 risk-based capital ratio was 10.68, and total risk-based capital ratiowas 11.94. On December 31, 2008, and on a preliminary basis, the Company'sTier 1 le erage ratio was 10.05, Tier 1 risk-based capital ratio was 13.84,and total risk-based capital ratio was 15.09.On December 5, 2008, Great Southern Bancorp, Inc became a participant inthe U.S. Treasury's oluntary Capital Purchase Program (CPP), a part o theEmergency Economic Stabilization Act o 2008, designed to pro ide capital tohealthy inancial institutions to promote con idence and stabilization in theeconomy. At the time the Company was appro ed to participate in the CPP, itexceeded all "well-capitalized" regulatory benchmarks.The Company issued tothe U.S.