Highlights for the Third Quarter of Fiscal Year 2019 (all quarterly comparisons in this document refer to the second quarter of fiscal year 2019, except as noted)
- Net income was $26.8 million, or $0.47 per diluted share, compared to $44.5 million, or $0.78 per diluted share, for the prior quarter and $45.9 million, or $0.78 per diluted share, for the third quarter of fiscal year 2018
- Net interest margin and adjusted net interest margin1, 2 were 3.70% and 3.71%, respectively, a decrease of 5 basis points each
- Expense control remained strong with the efficiency ratio1 at 47.2% for the quarter and 46.3% for fiscal year-to-date
- Total loans grew to $9.89 billion, an increase of $116.1 million, or 1.2%, with fiscal year-to-date growth of $471.0 million, or 5.0%
- Total deposits were $10.24 billion, a decrease of $232.4 million, or 2.2%, for the quarter due to a reduction in brokered deposits and seasonal outflows consistent with prior years. Fiscal year-to-date growth remained solid at $502.4 million, or 5.2%, with cost of deposit increases beginning to level off
- Profitability remains strong with return on tangible common equity1 of 14.5% for the fiscal year-to-date
- Key asset quality metrics have deteriorated during the quarter, however this was mainly due to the dairy loan portfolio; the asset quality for the remainder of the portfolio remains stable
- The Company’s Board of Directors declared a quarterly dividend of $0.30 per share
SIOUX FALLS, S.D.–(BUSINESS WIRE)–$GWB–Great Western Bancorp, Inc. (NYSE: GWB) today reported net income of $26.8 million, or $0.47 per diluted share, for the third quarter of fiscal year 2019, compared to net income of $44.5 million, or $0.78 per diluted share, for the second quarter of fiscal year 2019 and $45.9 million, or $0.78 per diluted share, for the third quarter of fiscal year 2018.
“We are pleased with the loan growth, expense control and how we have managed our net interest margin during the quarter,” said Ken Karels, Chief Executive Officer and Chairperson of the Board. “The recent deterioration in our asset quality metrics has been disappointing, but this is limited mainly to the dairy loan portfolio, and a couple of instances of customer fraud. We believe the overall asset quality within the remainder of the portfolio remains stable.”
Net Interest Income and Net Interest Margin2
Net interest income was $107.1 million for the quarter, an increase of $2.1 million, or 2.0%. The increase was primarily attributable to higher loan interest income driven by increases in average loans and investments outstanding between the periods, partially offset by the cost of deposits. The cost of deposits modestly increased 3 basis points during the quarter, compared to an increase of 13 basis points in the previous quarter.
Net interest margin was 3.70% and 3.75%, respectively, for the quarters ended June 30, 2019 and March 31, 2019. Adjusted net interest margin1, which adjusts for the realized gain (loss) on interest rate swaps, was 3.71% and 3.76%, respectively, for the same periods. The lower margins were primarily driven by the cost of deposits, which had a moderate increase of 3 basis points to 1.11%, partially offset by the yield on loans, which increased 2 basis points to 5.25%, and the yield on the investment portfolio, which increased 2 basis points to 2.54%.
Total loans outstanding were $9.89 billion as of June 30, 2019, an increase of $116.1 million, or 1.2%, during the quarter, and growth of $471.0 million, or 5.0%, for fiscal year-to-date. During the quarter the commercial real estate (“CRE”) segment of the portfolio grew by $150.0 million, or 3.0%, mainly in the non-owner-occupied category, commercial non-real estate grew by $26.4 million, or 1.5%, and the agriculture segment was reduced by $72.5 million, or 3.4%.
Total deposits were $10.24 billion as of June 30, 2019, a decrease of $232.4 million, or 2.2%, for the quarter with growth of $502.4 million, or 5.2%, for fiscal year-to-date. During the quarter, deposit decreases were driven by a reduction in brokered deposits and seasonal outflows consistent with prior years. Interest-bearing deposits were $8.30 billion, a 4.0% decrease for the quarter, and noninterest-bearing deposits were $1.94 billion, a 6.2% increase for the quarter. FHLB and other borrowings increased by $330.0 million, or 120.0%, for the quarter due to more favorable FHLB short term rates.
1 This is a non-GAAP financial measure management believes is helpful to understanding trends in the business that may not be fully apparent based only on the most comparable GAAP financial measure. Further information on this financial measure and a reconciliation to the most comparable GAAP financial measure is provided at the end of this release.
2 All references to net interest income and net interest margin are presented on a fully-tax equivalent basis unless otherwise noted.
Provision for Loan and Lease Losses and Asset Quality
Provision for loan and lease losses was $26.1 million for the quarter, an increase of $18.4 million. Net charge-offs for the quarter were $17.5 million, or 0.72% of average total loans on an annualized basis, with the majority of net charge-offs concentrated in the agriculture and commercial non-real estate segments of the loan portfolio. Charge-offs in the current quarter included $10.0 million which related to the cattle industry which were based upon new and/or updated information received during the quarter, of which $4.0 million was to a cattle feed operator in which the Company believed involved borrower fraud, and $3.0 million related to loans in the grain industry. These relationships had been classified as substandard for a number of previous quarters. This quarter’s charge-offs also included approximately $4.0 million to a retailer which the Company believed involved borrower fraud and the remaining $1.0 million related to another commercial exposure. The ratio of allowance for loan and lease losses (“ALLL”) to total loans increased to 0.77% as of June 30, 2019 from 0.70% as of the prior quarter.
Included within total loans are approximately $816.9 million of loans for which management has elected the fair value option. These loans are excluded from the ALLL process, but management has estimated that approximately $8.7 million of the fair value adjustment for these loans relates to credit risk, or 0.09% of total loans. Finally, total purchase discount remaining on all acquired loans equates to 0.16% of total loans.
Nonaccrual loans were $118.1 million as of June 30, 2019, representing a decrease of $3.6 million for the quarter. Loans graded “Watch” decreased $80.2 million, or 26.6%, to $220.9 million for the quarter, while loans graded “Substandard” increased $217.1 million, or 83.8%, to $476.0 million for the quarter. The increase in substandard balances was primarily a result of new and/or updated information resulting in downgrades within the dairy loan portfolio. For the relationships moved to substandard, the Company believes it remains well collateralized on these lending relationships. Total other repossessed property balances were $36.4 million as of June 30, 2019, an increase of $3.9 million, or 12.2%.
Total credit-related charges increased compared to the first nine months of fiscal year 2018, the previous quarter and the comparable quarter. A summary of total credit-related charges incurred during the current and comparable nine month periods and current, previous and comparable quarters is presented below:
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GREAT WESTERN BANCORP, INC. |
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Summary of Credit-Related Charges (Unaudited) |
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|
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|
|
|
||||||||||||||||
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|
|
|
|
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For the nine months ended: |
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For the three months ended: |
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|
Item |
Included within F/S Line Item(s): |
June 30, 2019 |
June 30, 2018 |
|
June 30, 2019 |
March 31, 2019 |
June 30, 2018 |
|||||||||||||||
|
|
|
(dollars in thousands) |
||||||||||||||||||||
|
Provision for loan and lease losses |
Provision for loan and lease losses |
$ |
38,965 |
|
$ |
12,972 |
|
|
$ |
26,077 |
|
$ |
7,673 |
|
$ |
3,515 |
|
|||||
|
Net other repossessed property charges |
Net loss on repossessed property and other related expenses |
4,062 |
|
1,519 |
|
|
595 |
|
404 |
|
305 |
|
||||||||||
|
Reversal of interest income on nonaccrual loans |
Interest income on loans |
469 |
|
1,126 |
|
|
173 |
|
337 |
|
216 |
|
||||||||||
|
Loan fair value adjustment related to credit |
Net increase (decrease) in fair value of loans at fair value |
5,579 |
|
197 |
|
|
4,817 |
|
(422 |
) |
(123 |
) |
||||||||||
|
Total |
|
$ |
49,075 |
|
$ |
15,814 |
|
|
$ |
31,662 |
|
$ |
7,992 |
|
$ |
3,913 |
|
|||||
Noninterest Income
Noninterest income was $10.8 million, a decrease of $7.5 million, or 40.9%, for the quarter. Included within noninterest income is the net change in fair value of loans for which the Company has elected the fair value option and the net realized and unrealized gain (loss) of the related derivatives which generated a $7.5 million unfavorable change over the prior quarter. The decrease in this line item was due to $5.2 million in credit charges on loans held at fair value and a $1.3 million increase in the counterparty credit valuation adjustment on the derivative portfolio.
Noninterest Expense
Total noninterest expense was $56.0 million, a decrease of $0.6 million, or 1.0%, for the quarter. Substantially all of the decrease was driven by a $0.6 million decrease in salaries and employee benefits due to a decrease in health insurance expense during the quarter.
The efficiency ratio1 was 47.2% for the quarter, an increase from 45.6%, mainly due to a decrease in noninterest income discussed above.
Provision for Income Taxes
The provision for income taxes for the quarter ended June 30, 2019 was $7.5 million, reflecting an effective tax rate of 22.0%, compared to an effective tax rate of 22.5% in the prior quarter.
Capital
Tier 1 and total capital ratios were 11.3% and 12.4%, respectively, as of June 30, 2019, compared to 11.4% and 12.4%. The common equity tier 1 capital ratio and tier 1 leverage ratio were 10.6% and 10.0%, respectively, as of June 30, 2019 compared to 10.7% and 10.2%. All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized.”
On July 25, 2019, the Company’s Board of Directors declared a dividend of $0.30 per common share payable on August 23, 2019 to stockholders of record as of close of business on August 9, 2019. The aggregate dividend payment will be approximately $17.1 million.
Business Outlook
“We are pleased that we remain solidly profitable and have made good progress on managing the cost of our deposits during the quarter,” added Karels. “Loan growth was good and well diversified across the footprint and we continue to manage our expense base well. We are disappointed with the level of charge-offs, provisioning and movements into substandard loans during the quarter but we expect to work these asset quality metrics to levels that are more acceptable over the coming quarters.”
Conference Call
Great Western Bancorp, Inc. will host a conference call to discuss its financial results for the third quarter of fiscal year 2019 on Thursday, July 25, 2019 at 7:30 AM (CT). The call can be accessed by dialing (855) 238-8837 approximately 10 minutes prior to the start time. Please ask to be joined into the Great Western Bancorp, Inc. (GWB) call. International callers should dial (412) 542-4114. The call will also be broadcast live over the Internet and can be accessed in the Investor Relations section of Great Western’s website at www.greatwesternbank.com. A replay will be available beginning one hour following the conference call and ending on August 8, 2019. To access the replay, dial (877) 344-7529 (U.S.) and use conference ID 10132862. International callers should dial (412) 317-0088 and enter the same conference ID number.
About Great Western Bancorp, Inc.
Great Western Bancorp, Inc. is the holding company for Great Western Bank, a full-service regional bank focused on relationship-based business and agribusiness banking. Great Western Bank offers small and mid-sized businesses a focused suite of financial products and a range of deposit and loan products to retail customers through several channels, including the branch network, online banking system, mobile banking applications and customer care centers. The bank services its customers through more than 170 branches in nine states: Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. To learn more about Great Western Bank visit www.greatwesternbank.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements about Great Western Bancorp, Inc.’s expectations, beliefs, plans, strategies, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. In particular, the statements included in this press release concerning Great Western Bancorp, Inc.’s expected performance and strategy, the outlook for its agricultural lending segment and the interest rate environment are not historical facts and are forward-looking. Accordingly, the forward-looking statements in this press release are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed in the sections titled “Item 1A. Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Great Western Bancorp, Inc.’s Annual Report on Form 10-K for the most recently ended fiscal year, and in other periodic filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and Great Western Bancorp, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
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GREAT WESTERN BANCORP, INC. |
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Consolidated Financial Data (Unaudited) |
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|
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At or for the nine months ended: |
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At or for the three months ended: |
||||||||||||||||||||
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|
June 30, 2019 |
June 30, 2018 |
|
June 30, 2019 |
March 31, 2019 |
December 31, 2018 |
September 30, 2018 |
June 30, 2018 |
|||||||||||||||
|
|
(dollars in thousands, except share and per share amounts) |
||||||||||||||||||||||
|
Operating Data: |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Interest income (FTE) |
$ |
408,503 |
|
$ |
361,514 |
|
|
$ |
139,623 |
|
$ |
135,328 |
|
$ |
133,551 |
|
$ |
126,921 |
|
$ |
126,146 |
|
|
|
Interest expense |
90,148 |
|
50,756 |
|
|
32,570 |
|
30,411 |
|
27,167 |
|
23,244 |
|
19,745 |
|
||||||||
|
Noninterest income |
45,709 |
|
54,355 |
|
|
10,766 |
|
18,223 |
|
16,720 |
|
19,255 |
|
18,939 |
|
||||||||
|
Noninterest expense |
169,686 |
|
171,875 |
|
|
56,000 |
|
56,580 |
|
57,106 |
|
59,550 |
|
57,863 |
|
||||||||
|
Provision for loan and lease losses |
38,965 |
|
12,972 |
|
|
26,077 |
|
7,673 |
|
5,215 |
|
5,015 |
|
3,515 |
|
||||||||
|
Net income |
117,080 |
|
115,636 |
|
|
26,783 |
|
44,511 |
|
45,786 |
|
42,281 |
|
45,874 |
|
||||||||
|
Adjusted net income ¹ |
$ |
117,080 |
|
$ |
129,222 |
|
|
$ |
26,783 |
|
$ |
44,511 |
|
$ |
45,786 |
|
$ |
42,281 |
|
$ |
45,874 |
|
|
|
Common shares outstanding |
56,939,032 |
58,911,563 |
|
56,939,032 |
56,938,435 |
|
56,938,435 |
|
58,917,147 |
|
58,911,563 |
|
|||||||||||
|
Weighted average diluted common shares outstanding |
57,408,023 |
59,134,635 |
|
57,110,103 |
57,074,674 |
|
58,039,292 |
|
59,122,699 |
|
59,170,058 |
|
|||||||||||
|
Earnings per common share – diluted |
$ |
2.04 |
|
$ |
1.96 |
|
|
$ |
0.47 |
|
$ |
0.78 |
|
$ |
0.79 |
|
$ |
0.72 |
|
$ |
0.78 |
|
|
|
Adjusted earnings per common share – diluted ¹ |
$ |
2.04 |
|
$ |
2.19 |
|
|
$ |
0.47 |
|
$ |
0.78 |
|
$ |
0.79 |
|
$ |
0.72 |
|
$ |
0.78 |
|
|
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Net interest margin (FTE) ¹ ² |
3.75 |
% |
3.93 |
% |
|
3.70 |
% |
3.75 |
% |
3.81 |
% |
3.79 |
% |
3.97 |
% |
||||||||
|
Adjusted net interest margin (FTE) ¹ ² |
3.76 |
% |
3.87 |
% |
|
3.71 |
% |
3.76 |
% |
3.81 |
% |
3.77 |
% |
3.94 |
% |
||||||||
|
Return on average total assets ² |
1.25 |
% |
1.32 |
% |
|
0.84 |
% |
1.44 |
% |
1.48 |
% |
1.40 |
% |
1.55 |
% |
||||||||
|
Return on average common equity ² |
8.5 |
% |
8.7 |
% |
|
5.8 |
% |
9.9 |
% |
10.0 |
% |
9.2 |
% |
10.2 |
% |
||||||||
|
Return on average tangible common equity ¹ ² |
14.5 |
% |
15.2 |
% |
|
9.7 |
% |
16.9 |
% |
17.1 |
% |
15.7 |
% |
17.7 |
% |
||||||||
|
Efficiency ratio ¹ |
46.3 |
% |
46.7 |
% |
|
47.2 |
% |
45.6 |
% |
46.1 |
% |
48.1 |
% |
45.8 |
% |
||||||||
|
Capital: |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Tier 1 capital ratio |
11.3 |
% |
11.8 |
% |
|
11.3 |
% |
11.4 |
% |
11.1 |
% |
12.0 |
% |
11.8 |
% |
||||||||
|
Total capital ratio |
12.4 |
% |
12.8 |
% |
|
12.4 |
% |
12.4 |
% |
12.1 |
% |
13.0 |
% |
12.8 |
% |
||||||||
|
Tier 1 leverage ratio |
10.0 |
% |
10.6 |
% |
|
10.0 |
% |
10.2 |
% |
10.1 |
% |
10.7 |
% |
10.6 |
% |
||||||||
|
Common equity tier 1 ratio |
10.6 |
% |
11.0 |
% |
|
10.6 |
% |
10.7 |
% |
10.4 |
% |
11.3 |
% |
11.0 |
% |
||||||||
|
Tangible common equity / tangible assets ¹ |
9.3 |
% |
9.5 |
% |
|
9.3 |
% |
9.2 |
% |
9.0 |
% |
9.6 |
% |
9.5 |
% |
||||||||
|
Book value per share – GAAP |
$ |
33.04 |
|
$ |
30.84 |
|
|
$ |
33.04 |
|
$ |
32.53 |
|
$ |
31.82 |
|
$ |
31.24 |
|
$ |
30.84 |
|
|
|
Tangible book value per share ¹ |
$ |
19.94 |
|
$ |
18.16 |
|
|
$ |
19.94 |
|
$ |
19.43 |
|
$ |
18.72 |
|
$ |
18.57 |
|
$ |
18.16 |
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Nonaccrual loans |
$ |
118,060 |
|
$ |
127,315 |
|
|
$ |
118,060 |
|
$ |
121,616 |
|
$ |
138,944 |
|
$ |
143,206 |
|
$ |
127,315 |
|
|
|
Other repossessed property |
$ |
36,393 |
|
$ |
10,221 |
|
|
$ |
36,393 |
|
$ |
32,450 |
|
$ |
22,224 |
|
$ |
23,074 |
|
$ |
10,221 |
|
|
|
Nonaccrual loans / total loans |
1.19 |
% |
1.36 |
% |
|
1.19 |
% |
1.24 |
% |
1.42 |
% |
1.52 |
% |
1.36 |
% |
||||||||
|
Net charge-offs (recoveries) |
$ |
26,959 |
|
$ |
11,787 |
|
|
$ |
17,534 |
|
$ |
5,863 |
|
$ |
3,562 |
|
$ |
5,163 |
|
$ |
3,966 |
|
|
|
Net charge-offs (recoveries) / average total loans ² |
0.37 |
% |
0.17 |
% |
|
0.72 |
% |
0.25 |
% |
0.15 |
% |
0.22 |
% |
0.17 |
% |
||||||||
|
Allowance for loan and lease losses / total loans |
0.77 |
% |
0.69 |
% |
|
0.77 |
% |
0.70 |
% |
0.68 |
% |
0.69 |
% |
0.69 |
% |
||||||||
|
Watch-rated loans |
$ |
220,883 |
|
$ |
276,001 |
|
|
$ |
220,883 |
|
$ |
301,099 |
|
$ |
321,593 |
|
$ |
343,288 |
|
$ |
276,001 |
|
|
|
Substandard loans |
$ |
475,999 |
|
$ |
268,017 |
|
|
$ |
475,999 |
|
$ |
258,946 |
|
$ |
252,521 |
|
$ |
252,660 |
|
$ |
268,017 |
|
|
|
1 This is a non-GAAP financial measure management believes is helpful to interpreting our financial results. See the tables at the end of this document for the calculation of the measure and reconciliation to the most comparable GAAP measure. |
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2 Annualized for all partial-year periods. |
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|
GREAT WESTERN BANCORP, INC. |
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|
Consolidated Income Statement (Unaudited) |
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
|
|
At or for the nine months ended: |
|
At or for the three months ended: |
||||||||||||||||||||
|
|
June 30, 2019 |
June 30, 2018 |
|
June 30, 2019 |
March 31, 2019 |
December 31, |
September 30, |
June 30, 2018 |
|||||||||||||||
|
|
(dollars in thousands) |
||||||||||||||||||||||
|
Interest income |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Loans |
$ |
372,156 |
|
$ |
334,196 |
|
|
$ |
126,392 |
|
$ |
123,432 |
|
$ |
122,331 |
|
$ |
117,095 |
|
$ |
116,522 |
|
|
|
Investment securities |
30,575 |
|
21,526 |
|
|
11,430 |
|
9,957 |
|
9,189 |
|
7,645 |
|
7,471 |
|
||||||||
|
Federal funds sold and other |
1,416 |
|
882 |
|
|
377 |
|
497 |
|
541 |
|
494 |
|
424 |
|
||||||||
|
Total interest income |
404,147 |
|
356,604 |
|
|
138,199 |
|
133,886 |
|
132,061 |
|
125,234 |
|
124,417 |
|
||||||||
|
Interest expense |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Deposits |
79,507 |
|
40,116 |
|
|
28,615 |
|
27,098 |
|
23,794 |
|
19,996 |
|
16,460 |
|
||||||||
|
FHLB advances and other borrowings |
6,464 |
|
6,941 |
|
|
2,538 |
|
1,923 |
|
2,003 |
|
1,907 |
|
1,963 |
|
||||||||
|
Subordinated debentures and subordinated notes payable |
4,177 |
|
3,699 |
|
|
1,417 |
|
1,390 |
|
1,370 |
|
1,341 |
|
1,322 |
|
||||||||
|
Total interest expense |
90,148 |
|
50,756 |
|
|
32,570 |
|
30,411 |
|
27,167 |
|
23,244 |
|
19,745 |
|
||||||||
|
Net interest income |
313,999 |
|
305,848 |
|
|
105,629 |
|
103,475 |
|
104,894 |
|
101,990 |
|
104,672 |
|
||||||||
|
Provision for loan and lease losses |
38,965 |
|
12,972 |
|
|
26,077 |
|
7,673 |
|
5,215 |
|
5,015 |
|
3,515 |
|
||||||||
|
Net interest income after provision for loan and lease losses |
275,034 |
|
292,876 |
|
|
79,552 |
|
95,802 |
|
99,679 |
|
96,975 |
|
101,157 |
|
||||||||
|
Noninterest income |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Service charges and other fees |
32,219 |
|
37,879 |
|
|
10,321 |
|
10,209 |
|
11,689 |
|
13,198 |
|
12,655 |
|
||||||||
|
Wealth management fees |
6,592 |
|
6,761 |
|
|
2,234 |
|
2,117 |
|
2,241 |
|
2,458 |
|
2,242 |
|
||||||||
|
Mortgage banking income, net |
3,366 |
|
4,178 |
|
|
1,055 |
|
991 |
|
1,320 |
|
1,664 |
|
1,352 |
|
||||||||
|
Net (loss) gain on sale of securities |
(191 |
) |
6 |
|
|
322 |
|
— |
|
(513 |
) |
— |
|
15 |
|
||||||||
|
Net increase (decrease) in fair value of loans at fair value |
49,662 |
|
(30,872 |
) |
|
16,429 |
|
14,018 |
|
19,216 |
|
(14,534 |
) |
(7,370 |
) |
||||||||
|
Net realized and unrealized (loss) gain on derivatives |
(50,252 |
) |
29,602 |
|
|
(20,904 |
) |
(11,032 |
) |
(18,317 |
) |
14,994 |
|
8,093 |
|
||||||||
|
Other |
4,313 |
|
6,801 |
|
|
1,309 |
|
1,920 |
|
1,084 |
|
1,475 |
|
1,952 |
|
||||||||
|
Total noninterest income |
45,709 |
|
54,355 |
|
|
10,766 |
|
18,223 |
|
16,720 |
|
19,255 |
|
18,939 |
|
||||||||
|
Noninterest expense |
|
|
|
|
|
|
|
|
|||||||||||||||
|
Salaries and employee benefits |
103,206 |
|
101,661 |
|
|
33,899 |
|
34,537 |
|
34,770 |
|
33,691 |
|
35,122 |
|
||||||||
|
Data processing and communication |
17,475 |
|
23,251 |
|
|
6,234 |
|
5,964 |
|
5,278 |
|
6,554 |
|
7,177 |
|
||||||||
|
Occupancy and equipment |
15,599 |
|
15,112 |
|
|
4,934 |
|
5,539 |
|
5,126 |
|
5,219 |
|
4,974 |
|
||||||||
|
Professional fees |
11,181 |
|
12,564 |
|
|
3,923 |
|
3,970 |
|
3,288 |
|
5,326 |
|
4,297 |
|
||||||||
|
Advertising |
3,299 |
|
3,441 |
|
|
1,145 |
|
1,216 |
|
938 |
|
1,066 |
|
1,260 |
|
||||||||
|
Net loss on repossessed property and other related expenses |
4,062 |
|
1,519 |
|
|
595 |
|
404 |
|
3,063 |
|
2,850 |
|
305 |
|
||||||||
|
Other |
14,864 |
|
14,327 |
|
|
5,270 |
|
4,950 |
|
4,643 |
|
4,844 |
|
4,728 |
|
||||||||
|
Total noninterest expense |
169,686 |
|
171,875 |
|
|
56,000 |
|
56,580 |
|
57,106 |
|
59,550 |
|
57,863 |
|
||||||||
|
Income before income taxes |
151,057 |
|
175,356 |
|
|
34,318 |
|
57,445 |
|
59,293 |
|
56,680 |
|
62,233 |
|
||||||||
|
Provision for income taxes |
33,977 |
|
59,720 |
|
|
7,535 |
|
12,934 |
|
13,507 |
|
14,399 |
|
16,359 |
|
||||||||
|
Net income |
$ |
117,080 |
|
$ |
115,636 |
|
|
$ |
26,783 |
|
$ |
44,511 |
|
$ |
45,786 |
|
$ |
42,281 |
|
$ |
45,874 |
|
|
|
GREAT WESTERN BANCORP, INC. |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Summarized Consolidated Balance Sheet (Unaudited) |
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|||||||||||||||||||
|
|
As of |
|||||||||||||||||||
|
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, |
|
September 30, |
|
June 30, 2018 |
|||||||||||
|
|
(dollars in thousands) |
|||||||||||||||||||
|
Assets |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cash and cash equivalents |
$ |
225,356 |
|
|
$ |
282,638 |
|
|
$ |
276,760 |
|
|
$ |
298,696 |
|
|
$ |
294,614 |
|
|
|
Investment securities |
1,799,430 |
|
|
1,763,305 |
|
|
1,531,916 |
|
|
1,385,650 |
|
|
1,372,711 |
|
||||||
|
Total loans |
9,886,971 |
|
|
9,770,911 |
|
|
9,767,476 |
|
|
9,415,924 |
|
|
9,379,819 |
|
||||||
|
Allowance for loan and lease losses |
(76,546 |
) |
|
(68,003 |
) |
|
(66,193 |
) |
|
(64,540 |
) |
|
(64,688 |
) |
||||||
|
Loans, net |
9,810,425 |
|
|
9,702,908 |
|
|
9,701,283 |
|
|
9,351,384 |
|
|
9,315,131 |
|
||||||
|
Goodwill |
739,023 |
|
|
739,023 |
|
|
739,023 |
|
|
739,023 |
|
|
739,023 |
|
||||||
|
Other assets |
380,662 |
|
|
342,288 |
|
|
324,659 |
|
|
342,055 |
|
|
287,569 |
|
||||||
|
Total assets |
$ |
12,954,896 |
|
|
$ |
12,830,162 |
|
|
$ |
12,573,641 |
|
|
$ |
12,116,808 |
|
|
$ |
12,009,048 |
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Noninterest-bearing deposits |
$ |
1,936,986 |
|
|
$ |
1,824,507 |
|
|
$ |
1,879,883 |
|
|
$ |
1,842,704 |
|
|
$ |
1,793,293 |
|
|
|
Interest-bearing deposits |
8,298,958 |
|
|
8,643,876 |
|
|
8,233,364 |
|
|
7,890,795 |
|
|
7,792,025 |
|
||||||
|
Total deposits |
10,235,944 |
|
|
10,468,383 |
|
|
10,113,247 |
|
|
9,733,499 |
|
|
9,585,318 |
|
||||||
|
Securities sold under agreements to repurchase |
56,925 |
|
|
62,537 |
|
|
56,649 |
|
|
90,907 |
|
|
105,478 |
|
||||||
|
FHLB advances and other borrowings |
605,000 |
|
|
275,000 |
|
|
410,000 |
|
|
275,000 |
|
|
335,000 |
|
||||||
|
Other liabilities |
175,899 |
|
|
171,848 |
|
|
181,737 |
|
|
176,851 |
|
|
166,511 |
|
||||||
|
Total liabilities |
11,073,768 |
|
|
10,977,768 |
|
|
10,761,633 |
|
|
10,276,257 |
|
|
10,192,307 |
|
||||||
|
Stockholders’ equity |
1,881,128 |
|
|
1,852,394 |
|
|
1,812,008 |
|
|
1,840,551 |
|
|
1,816,741 |
|
||||||
|
Total liabilities and stockholders’ equity |
$ |
12,954,896 |
|
|
$ |
12,830,162 |
|
|
$ |
12,573,641 |
|
|
$ |
12,116,808 |
|
|
$ |
12,009,048 |
|
|
|
GREAT WESTERN BANCORP, INC. |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Loan Portfolio Summary (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
As of |
|
Fiscal year-to-date: |
||||||||||||||||||||
|
|
June 30, 2019 |
|
March 31, 2019 |
|
December 31, |
|
September 30, |
|
Change |
|
Change |
||||||||||||
|
|
(dollars in thousands) |
||||||||||||||||||||||
|
Construction and development |
$ |
626,671 |
|
|
$ |
607,757 |
|
|
$ |
579,941 |
|
|
$ |
637,693 |
|
|
$ |
(11,022 |
) |
|
(1.7 |
)% |
|
|
Owner-occupied CRE |
1,375,235 |
|
|
1,366,844 |
|
|
1,359,979 |
|
|
1,334,480 |
|
|
40,755 |
|
|
3.1 |
% |
||||||
|
Non-owner-occupied CRE |
2,784,030 |
|
|
2,681,686 |
|
|
2,577,158 |
|
|
2,347,237 |
|
|
436,793 |
|
|
18.6 |
% |
||||||
|
Multifamily residential real estate |
413,806 |
|
|
393,505 |
|
|
393,223 |
|
|
309,920 |
|
|
103,886 |
|
|
33.5 |
% |
||||||
|
Commercial real estate |
5,199,742 |
|
|
5,049,792 |
|
|
4,910,301 |
|
|
4,629,330 |
|
|
570,412 |
|
|
12.3 |
% |
||||||
|
Agriculture |
2,049,395 |
|
|
2,121,872 |
|
|
2,234,735 |
|
|
2,182,688 |
|
|
(133,293 |
) |
|
(6.1 |
)% |
||||||
|
Commercial non-real estate |
1,747,501 |
|
|
1,721,095 |
|
|
1,713,760 |
|
|
1,699,987 |
|
|
47,514 |
|
|
2.8 |
% |
||||||
|
Residential real estate |
816,751 |
|
|
815,212 |
|
|
845,262 |
|
|
837,569 |
|
|
(20,818 |
) |
|
(2.5 |
)% |
||||||
|
Consumer |
53,277 |
|
|
44,504 |
|
|
47,704 |
|
|
49,689 |
|
|
3,588 |
|
|
7.2 |
% |
||||||
|
Other ¹ |
48,406 |
|
|
46,163 |
|
|
44,130 |
|
|
46,487 |
|
|
1,919 |
|
|
4.1 |
% |
||||||
|
Total unpaid principal balance |
9,915,072 |
|
|
9,798,638 |
|
|
9,795,892 |
|
|
9,445,750 |
|
|
469,322 |
|
|
5.0 |
% |
||||||
|
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process |
(28,101 |
) |
|
(27,727 |
) |
|
(28,416 |
) |
|
(29,826 |
) |
|
1,725 |
|
|
(5.8 |
)% |
||||||
|
Total loans |
$ |
9,886,971 |
|
|
$ |
9,770,911 |
|
|
$ |
9,767,476 |
|
|
$ |
9,415,924 |
|
|
$ |
471,047 |
|
|
5.0 |
% |
|
|
1 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts, and lease receivables. |
|||||||||||||||||||||||
Contacts
GREAT WESTERN BANCORP, INC.
Investor Relations Contact:
Peter Chapman, 605-373-3198
[email protected]
