GWB
$12.25
Great Western Bancorp
$.13
1.07%
Earnings Details
3rd Quarter June 2020
Wednesday, July 29, 2020 7:03:00 AM
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Summary

Great Western Bancorp (GWB) Recent Earnings

Great Western Bancorp (GWB) reported 3rd Quarter June 2020 earnings of $0.10 per share on revenue of $108.2 million. The consensus earnings estimate was $0.25 per share on revenue of $115.7 million. Revenue fell 27.4% compared to the same quarter a year ago.

Great Western Bancorp Inc is a bank holding company. It is engaged in relationship-based business and agribusiness banking, retail banking and wealth management services.

Results
Reported Earnings
$0.10
Earnings Whisper
-
Consensus Estimate
$0.25
Reported Revenue
$108.2 Mil
Revenue Estimate
$115.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Great Western Bancorp, Inc. Announces Earnings for Third Quarter Fiscal Year 2020

Highlights for the Third Quarter of Fiscal Year 2020 (all quarterly comparisons in this document refer to the second quarter of fiscal year 2020, except as noted)

  • Net income of $5.4 million, or $0.10 per diluted share, compared to net loss of $740.6 million, or $13.25 per diluted share
  • Capital ratios remain at well-capitalized levels with Tier 1 and total capital being 11.3% and 12.9%, respectively
  • The Company's Board of Directors declared a quarterly dividend of $0.01 per share
  • Net interest margin decreased 2 basis points to 3.57% while adjusted net interest margin 1, 2 decreased 8 basis points to 3.47%, as successful deposit cost management mostly offset lower asset yields
  • Total loans grew to $10.31 billion, an increase of $620.7 million, or 6.4%, while total deposits grew to $11.15 billion, an increase of $971.5 million, or 9.5%, primarily as a result of our participation in the SBA's Paycheck Protection Program ("PPP")
  • Net charge-offs remained stable at 0.37% of average total loans on an annualized basis, while the ALLL to total loans increased to 1.44%, or 1.54% excluding PPP loans

 

SIOUX FALLS, S.D.--(BUSINESS WIRE)--Great Western Bancorp, Inc. (NYSE: GWB) today reported net income of $5.4 million, or $0.10 per diluted share, for the third quarter of fiscal year 2020, compared to net loss of $740.6 million, or $13.25 per diluted share, for the second quarter of fiscal year 2020. Adjusted net income 1 which excludes the COVID-19 pandemic impact on goodwill, intangible assets and credit and other related charges, was $5.4 million, or $0.10 per diluted share, compared to $29.1 million, or $0.52 per diluted share.

"While the business environment remained challenging this quarter, we focused on meeting customer needs and continued to find ways to be more agile with our remote workforce," said Mark Borrecco, President and Chief Executive Officer. "Additionally, our new Chief Credit Officer has been essential in assessing our loan portfolio and developing a strategy to improve our credit performance. Finally, we generated core profits despite a significant credit charge, which further added to our stable capital position."

Impact and Response to COVID-19 Pandemic

Through this time of disruption we remain committed to keeping our employees safe and our bank running effectively to serve our customers. We have reopened 140 branches in the markets where COVID-19 cases have remained lower, only seven branches are fully closed, and a majority of our employees who can work outside of our offices are doing so. Social distancing, restrictions on in-person meetings and conferences, company travel restrictions and increased sanitary protocols all remain in place and are all intended to offer the best protection for our employees and customers and enhance our ability to provide our banking services. We are supporting our employees with paid time off, work from home flexibility, PTO cash out, volunteer time off, and a new focus for our internal Diversity & Inclusion Council. Finally, as of July 20, 2020 we are supporting our customers with PPP lending, having provided $724.4 million in loans to over 4,600 customers, improved engagement with customers in impacted segments, and a commitment to working with customers for solutions as we approach the end of the first round of payment deferrals.

Net Interest Income and Net Interest Margin2

Net interest income was $107.9 million, an increase of $4.4 million, or 4.2%. Interest income was lower by $5.4 million as a result of lower loan and securities yields while interest expense decreased $9.6 million, or 41.4%, due to deposit rate cuts and rate optimization through funding mix.

Net interest margin was 3.57% and 3.59% for the quarters ended June 30, 2020 and March 31, 2020, respectively. Adjusted net interest margin1, which adjusts for the realized gain (loss) on interest rate swaps, was 3.47% and 3.55%, respectively, for the same periods. Deposit yields decreased 38 basis points due to rate cuts and a significant increase in noninterest-bearing deposits from CARES Act related inflows, while securities and loan yields decreased 16 and 39 basis points, respectively, reflecting PPP loans yielding 3.11% and continued repricing tied to lower indices stemming from rate cuts in March.

Total loans outstanding were $10.31 billion as of June 30, 2020, an increase of $620.7 million, or 6.4%. The increase in loans during the quarter was mainly attributable to the commercial non-real estate segment of the portfolio, which increased $527.6 million, and the CRE segment, which increased $132.7 million, offset by a reduction in the agriculture segment of $66.7 million. The increase in the commercial non-real estate segment of the portfolio was attributable to $697.0 million in new PPP loans outstanding at June 30 and $57.7 million in mortgage warehouse lending, partially offset by approximately $227.1 million in paydowns. The increase in the CRE segment was due to diversified growth in multifamily, owner-occupied and non-owner-occupied loan types combined with advances on projects under construction, while the decrease in the agriculture segment was due to a $93.0 million net reduction from declines in dairy, beef cattle and other agriculture segments, partially offset by approximately $26.3 million in new PPP loans.

Total deposits were $11.15 billion as of June 30, 2020, an increase of $971.5 million, or 9.5%, due to $870.9 million in checking and savings deposits across both business and consumer accounts as a result of inflows from PPP proceeds and consumer stimulus receipts and $188.0 million in public and brokered deposits with favorable rates offset with a $87.4 million reduction in business and consumer time deposits.


1 This is a non-GAAP financial measure management believes is helpful to understanding trends in 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 $21.6 million, a decrease of $50.2 million, or 69.9%, as a result of significant reserve increases in the prior quarter due to economic environmental factors associated with the COVID-19 outbreak. The ALLL to total loans increased to 1.44% as of June 30, 2020 from 1.40% as of March 31, 2020.

Net charge-offs were $9.4 million, or 0.37% 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.

Included within total loans are approximately $735.4 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 $40.0 million of the fair value adjustment for these loans relates to credit risk, or 0.39% of total loans. Finally, total purchase discount remaining on all acquired loans equates to 0.09% of total loans.

Loans graded "Substandard" increased $70.8 million, or 11.3%, to $698.5 million. The increase in loans graded "Substandard" was primarily due to two senior care credits previously rated as watch that deteriorated further during the quarter. Nonaccrual loans were $274.5 million, representing an increase of $61.4 million, or 28.8%, driven largely by the deterioration of one of the senior care credits mentioned previously as well as a hotel credit previously rated as substandard. Total other repossessed property balances were $19.2 million, a decrease of $8.1 million, or 29.5%, due to the sale of two properties.

Beginning in the third quarter of 2020, we will no longer separate credit-related charges between those related or unrelated to the COVID-19 pandemic as it becomes more difficult to attribute losses caused or not caused by the pandemic the longer it continues. 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:

 

GREAT WESTERN BANCORP, INC.

 

 

 

 

 

 

Summary of Credit-Related Charges (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended:

 

For the three months ended:

Item

Included within F/S Line Item(s):

June 30,
2020

June 30,
2019

 

June 30,
2020

March 31,
2020

June 30,
2019

 

 

(dollars in thousands)

Charges unrelated to COVID-19 pandemic

 

 

 

 

 

 

 

Provision for loan and lease losses

Provision for loan and lease losses

$

41,827

 

$

38,965

 

 

$

21,641

 

$

12,083

 

$

26,077

 

Net other repossessed property charges

Net loss on repossessed property and other related expenses

5,194

 

4,062

 

 

2,475

 

2,377

 

595

 

Net reversal of interest income on nonaccrual loans

Interest income on loans

4,164

 

469

 

 

1,070

 

1,088

 

173

 

Increase in unfunded commitment reserve

Other noninterest expense

2,415

 

 

 

2,215

 

 

 

Net credit loss on derivatives

Net realized and unrealized loss on derivatives

1,709

 

 

 

1,709

 

 

 

Loan fair value adjustment related to credit

Net decrease in fair value of loans at fair value

28,849

 

5,579

 

 

23,292

 

3,423

 

4,817

 

Subtotal charges unrelated to COVID-19 pandemic

 

$

84,158

 

$

49,075

 

 

$

52,402

 

$

18,971

 

$

31,662

 

 

 

 

 

 

 

 

 

Charges related to COVID-19 pandemic

 

 

 

 

 

 

 

Provision for loan and lease losses

Provision for loan and lease losses

$

59,712

 

$

 

 

$

 

$

59,712

 

$

 

Net other repossessed property charges

Net loss on repossessed property and other related expenses

3,314

 

 

 

 

3,314

 

 

Net reversal of interest income on nonaccrual loans

Interest income on loans

 

 

 

 

 

 

Increase in unfunded commitment reserve

Other noninterest expense

444

 

 

 

 

444

 

 

Net credit loss on derivatives

Net realized and unrealized loss on derivatives

 

 

 

 

 

 

Loan fair value adjustment related to credit

Net decrease in fair value of loans at fair value

7,100

 

 

 

 

7,100

 

 

Subtotal charges related to COVID-19 pandemic

 

70,570

 

 

 

 

70,570

 

 

Total credit-related charges

 

$

154,728

 

$

49,075

 

 

$

52,402

 

$

89,541

 

$

31,662

 

 

We continue to evaluate the impact of COVID-19 on our loan portfolio. Industries such as hotels & resorts, restaurants, oil & energy, retail malls, airlines and healthcare have experienced significant revenue loss due to COVID-19. Within our portfolio we have identified the following segments with elevated risk: hotels & resorts with $1.20 billion, or 11.6% of total loans, restaurants with $160.2 million, or 1.6% of total loans, arts and entertainment with $129.6 million, or 1.3% of total loans, senior care with $358.9 million, or 3.5% of total loans, and skilled nursing with $248.9 million, or 2.4% of total loans. Loan exposure in such other identified industries is either immaterial or has not shown general distress thus far. At this time it is difficult to determine ultimate impact upon our portfolio, but we are of the view the credit-related adjustments reflect the best estimate of incurred losses in our portfolio as of June 30, 2020.

Capital

Tier 1 and total capital ratios were 11.3% and 12.9%, respectively, as of June 30, 2020, compared to 11.3% and 12.9% as of March 31, 2020. The common equity tier 1 capital ratio and tier 1 leverage ratio were 10.6% and 9.3%, respectively, as of June 30, 2020, compared to 10.6% and 9.2% as of March 31, 2020. All regulatory capital ratios remain above regulatory minimums to be considered "well capitalized."

On July 29, 2020, the Company's Board of Directors declared a dividend of $0.01 per common share payable on August 27, 2020 to stockholders of record as of close of business on August 13, 2020. The aggregate dividend payment will be approximately $0.6 million. Given the continued uncertainty relating to the duration and potential impact of COVID-19, we believe this further reduced dividend is a prudent and proactive step at this time to help enhance and preserve our capital position if economic conditions continue to deteriorate.

Noninterest Income

Noninterest income was $(11.7) million, a decrease of $11.6 million. Included within noninterest income for the current quarter is $25.8 million in net losses related to the change in fair value of loans for which the Company has elected the fair value option within which was a credit charge of $21.9 million for one previously mentioned senior care facility and the net realized and unrealized gain (loss) of the related derivatives. Excluding these items, remaining noninterest income was $14.1 million for the quarter, compared to $14.6 million, a decrease of $0.5 million primarily related to a $1.5 million reduction in overdraft fees within service charges, offset with a $1.3 million increase in mortgage revenue related to a rise in origination and refinancing spurred on by falling interest rates.

Noninterest Expense

Total noninterest expense was $67.0 million for the quarter. This compares to $66.1 million of noninterest expense in the prior quarter excluding $742.4 million of goodwill and intangible asset impairments, resulting in an increase of $0.9 million, or 1.4%. The increase was driven by a one-time PTO payout offered to employees for $1.1 million, severance costs of $1.6 million, consulting costs of approximately $1.0 million and $2.2 million of reserve for unfunded loan commitments resulting from paydown activity on credit lines. All of these were offset with a $3.2 million decline in OREO related costs.

The efficiency ratio1 was 69.4% for the quarter and 63.5% for the prior quarter.

Provision for Income Taxes

The provision for income taxes for the quarter ended June 30, 2020 was $0.5 million, reflecting an effective tax rate of 8.1%, compared to a benefit from income taxes of $37.7 million for the prior quarter, or an effective tax rate of 4.8%. The change in the effective tax rate was due to a one-time adjustment as the combination of lower pre-tax earnings and static deductions are yielding a lower effective tax rate.

Business Outlook

"While circumstances have improved in certain cases, many individuals, families and businesses are still dealing with uncertainty and challenges of COVID-19," added Borrecco. "We feel the best approach is a cautious one, which means we will be judicious with our branch and office reopening plans. As for our customers and communities, we will continue to provide proactive support and find ways to help them navigate these uncertain times."

Conference Call

Great Western Bancorp, Inc. will host a conference call to discuss its financial results for the third quarter of fiscal year 2020 on Thursday, July 29, 2020 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 5, 2020. To access the replay, dial (877) 344-7529 (U.S.) and use conference ID 10145350 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, strategies for managing troubled loans, the impact on the business arising from the COVID-19 outbreak 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, Form 10-Q for the quarters ended June 30, 2020, March 31, 2020 and December 31, 2019 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.

 

GREAT WESTERN BANCORP, INC.

Consolidated Financial Data (Unaudited)

 

 

 

 

 

 

At and for the nine months ended:

 

At and for the three months ended:

 

June 30,
2020

June 30,
2019

 

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

 

(dollars in thousands, except share and per share amounts)

Operating Data:

 

 

 

 

 

 

 

 

Interest income (FTE)

$

381,289

 

$

408,503

 

 

$

121,472

 

$

126,757

 

$

133,060

 

$

140,257

 

$

139,623

 

Interest expense

63,244

 

90,148

 

 

13,620

 

23,260

 

26,364

 

32,061

 

32,570

 

Noninterest income

3,967

 

45,709

 

 

(11,683)

 

(83)

 

15,733

 

15,023

 

10,766

 

Noninterest expense

932,432

 

169,686

 

 

67,049

 

808,453

 

56,930

 

55,212

 

56,000

 

Provision for loan and lease losses

101,539

 

38,965

 

 

21,641

 

71,795

 

8,103

 

1,982

 

26,077

 

Net income

(691,944)

 

117,080

 

 

5,400

 

(740,618)

 

43,274

 

50,285

 

26,783

 

Adjusted net income ¹

$

77,754

 

$

117,080

 

 

$

5,400

 

$

29,080

 

$

43,274

 

$

50,285

 

$

26,783

 

Common shares outstanding

55,014,047

56,939,032

 

55,014,047

55,013,928

56,382,915

56,283,659

56,939,032

Weighted average diluted common shares outstanding

55,788,751

57,408,023

 

55,145,619

55,906,002

56,457,967

56,804,172

57,110,103

Earnings per common share - diluted

$

(12.40)

 

$

2.04

 

 

$

0.10

 

$

(13.25)

 

$

0.77

 

$

0.89

 

$

0.47

 

Adjusted earnings per common share - diluted ¹

$

1.39

 

$

2.04

 

 

$

0.10

 

$

0.52

 

$

0.77

 

$

0.89

 

$

0.47

 

Performance Ratios:

 

 

 

 

 

 

 

 

Net interest margin (FTE) ¹ ²

3.61

%

3.75

%

 

3.57

%

3.59

%

3.68

%

3.70

%

3.70

%

Adjusted net interest margin (FTE) ¹ ²

3.55

%

3.76

%

 

3.47

%

3.55

%

3.65

%

3.69

%

3.71

%

Return on average total assets ²

(7.22)

%

1.25

%

 

0.17

%

(23.16)

%

1.34

%

1.55

%

0.84

%

Return on average common equity ²

(55.6)

%

8.5

%

 

1.9

%

(155.3)

%

9.0

%

10.6

%

5.8

%

Return on average tangible common equity ¹ ²

2.5

%

14.5

%

 

2.0

%

(9.3)

%

15.0

%

17.6

%

9.7

%

Efficiency ratio ¹

58.7

%

46.3

%

 

69.4

%

63.5

%

46.2

%

44.5

%

47.2

%

Capital:

 

 

 

 

 

 

 

 

Tier 1 capital ratio

11.3

%

11.3

%

 

11.3

%

11.3

%

12.0

%

11.7

%

11.3

%

Total capital ratio

12.9

%

12.4

%

 

12.9

%

12.9

%

13.0

%

12.7

%

12.4

%

Tier 1 leverage ratio

9.3

%

10.0

%

 

9.3

%

9.2

%

10.4

%

10.1

%

10.0

%

Common equity tier 1 ratio

10.6

%

10.6

%

 

10.6

%

10.6

%

11.3

%

11.0

%

10.6

%

Tangible common equity / tangible assets ¹

8.9

%

9.3

%

 

8.9

%

9.3

%

9.7

%

9.6

%

9.3

%

Book value per share - GAAP

$

21.10

 

$

33.04

 

 

$

21.10

 

$

20.97

 

$

34.06

 

$

33.76

 

$

33.04

 

Tangible book value per share ¹

$

20.98

 

$

19.94

 

 

$

20.98

 

$

20.84

 

$

20.77

 

$

20.52

 

$

19.94

 

Asset Quality:

 

 

 

 

 

 

 

 

Nonaccrual loans

$

274,475

 

$

118,060

 

 

$

274,475

 

$

213,075

 

$

156,113

 

$

107,191

 

$

118,060

 

Other repossessed property

$

19,231

 

$

36,393

 

 

$

19,231

 

$

27,289

 

$

39,490

 

$

36,764

 

$

36,393

 

Nonaccrual loans / total loans

2.66

%

1.19

%

 

2.66

%

2.20

%

1.62

%

1.10

%

1.19

%

Net charge-offs (recoveries)

$

24,155

 

$

26,959

 

 

$

9,433

 

$

8,626

 

$

6,096

 

$

7,754

 

$

17,534

 

Net charge-offs (recoveries) / average total loans ²

0.33

%

0.37

%

 

0.37

%

0.36

%

0.25

%

0.31

%

0.72

%

Allowance for loan and lease losses / total loans

1.44

%

0.77

%

 

1.44

%

1.40

%

0.76

%

0.73

%

0.77

%

Watch-rated loans

$

477,128

 

$

220,883

 

 

$

477,128

 

$

420,252

 

$

416,259

 

$

405,549

 

$

220,883

 

Substandard loans

$

698,536

 

$

475,999

 

 

$

698,536

 

$

627,720

 

$

640,121

 

$

472,497

 

$

475,999

 

 

 

 

 

 

 

 

 

 

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.

2 Annualized for all partial-year periods.

 

GREAT WESTERN BANCORP, INC.

Consolidated Income Statement (Unaudited)

 

 

 

 

 

 

At and for the nine months ended:

 

At and for the three months ended:

 

June 30,
2020

June 30,
2019

 

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

 

(dollars in thousands)

Interest income

 

 

 

 

 

 

 

 

Loans

$

342,014

 

$

372,156

 

 

$

109,227

 

$

113,356

 

$

119,431

 

$

126,779

 

$

126,392

 

Investment securities

33,359

 

30,575

 

 

10,532

 

11,329

 

11,498

 

10,935

 

11,430

 

Federal funds sold and other

1,278

 

1,416

 

 

112

 

558

 

608

 

1,056

 

377

 

Total interest income

376,651

 

404,147

 

 

119,871

 

125,243

 

131,537

 

138,770

 

138,199

 

Interest expense

 

 

 

 

 

 

 

 

Deposits

50,818

 

79,507

 

 

10,011

 

18,867

 

21,940

 

27,211

 

28,615

 

FHLB advances and other borrowings

8,807

 

6,464

 

 

2,539

 

3,155

 

3,113

 

3,487

 

2,538

 

Subordinated debentures and subordinated notes payable

3,619

 

4,177

 

 

1,070

 

1,238

 

1,311

 

1,363

 

1,417

 

Total interest expense

63,244

 

90,148

 

 

13,620

 

23,260

 

26,364

 

32,061

 

32,570

 

Net interest income

313,407

 

313,999

 

 

106,251

 

101,983

 

105,173

 

106,709

 

105,629

 

Provision for loan and lease losses

101,539

 

38,965

 

 

21,641

 

71,795

 

8,103

 

1,982

 

26,077

 

Net interest income after provision for loan and lease losses

211,868

 

275,034

 

 

84,610

 

30,188

 

97,070

 

104,727

 

79,552

 

Noninterest income

 

 

 

 

 

 

 

 

Service charges and other fees

28,328

 

32,219

 

 

7,731

 

9,188

 

11,409

 

11,674

 

10,321

 

Wealth management fees

8,859

 

6,592

 

 

2,773

 

3,122

 

2,964

 

2,322

 

2,234

 

Mortgage banking income, net

5,179

 

3,366

 

 

2,422

 

1,145

 

1,612

 

1,482

 

1,055

 

Net gain (loss) on sale of securities

 

(191)

 

 

 

 

 

13

 

322

 

Net (decrease) increase in fair value of loans at fair value

(1,510)

 

49,662

 

 

(22,118)

 

35,541

 

(14,933)

 

11,749

 

16,429

 

Net realized and unrealized (loss) gain on derivatives

(40,379)

 

(50,252)

 

 

(3,681)

 

(50,214)

 

13,516

 

(13,191)

 

(20,904)

 

Other

3,490

 

4,313

 

 

1,190

 

1,135

 

1,165

 

974

 

1,309

 

Total noninterest income (loss)

3,967

 

45,709

 

 

(11,683)

 

(83)

 

15,733

 

15,023

 

10,766

 

Noninterest expense

 

 

 

 

 

 

 

 

Salaries and employee benefits

112,259

 

103,206

 

 

39,042

 

37,312

 

35,905

 

33,099

 

33,899

 

Data processing and communication

17,713

 

17,475

 

 

5,817

 

6,123

 

5,773

 

6,602

 

6,234

 

Occupancy and equipment

15,941

 

15,599

 

 

5,251

 

5,597

 

5,093

 

5,185

 

4,934

 

Professional fees

16,409

 

11,181

 

 

7,382

 

5,263

 

3,764

 

3,398

 

3,923

 

Advertising

2,573

 

3,299

 

 

750

 

958

 

865

 

1,194

 

1,145

 

Net loss on repossessed property and other related expenses

8,508

 

4,062

 

 

2,475

 

5,691

 

342

 

305

 

595

 

Goodwill and intangible assets impairment

742,352

 

 

 

 

742,352

 

 

 

 

Other

16,677

 

14,864

 

 

6,332

 

5,157

 

5,188

 

5,429

 

5,270

 

Total noninterest expense

932,432

 

169,686

 

 

67,049

 

808,453

 

56,930

 

55,212

 

56,000

 

(Loss) income before income taxes

(716,597)

 

151,057

 

 

5,878

 

(778,348)

 

55,873

 

64,538

 

34,318

 

(Benefit from) provision for income taxes

(24,653)

 

33,977

 

 

478

 

(37,730)

 

12,599

 

14,253

 

7,535

 

Net (loss) income

$

(691,944)

 

$

117,080

 

 

$

5,400

 

$

(740,618)

 

$

43,274

 

$

50,285

 

$

26,783

 

 

GREAT WESTERN BANCORP, INC.

Summarized Consolidated Balance Sheet (Unaudited)

 

 

 

As of

 

June 30,
2020

 

March 31,
2020

 

December 31,
2019

 

September 30,
2019

 

June 30,
2019

 

(dollars in thousands)

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

311,585

 

 

$

347,486

 

 

$

247,421

 

 

$

243,474

 

 

$

225,356

 

Investment securities

1,972,626

 

 

1,990,027

 

 

1,904,291

 

 

1,783,208

 

 

1,799,430

 

Total loans

10,313,999

 

 

9,693,295

 

 

9,626,224

 

 

9,706,763

 

 

9,886,971

 

Allowance for loan and lease losses

(148,158)

 

 

(135,950)

 

 

(72,781)

 

 

(70,774)

 

 

(76,546)

 

Loans, net

10,165,841

 

 

9,557,345

 

 

9,553,443

 

 

9,635,989

 

 

9,810,425

 

Goodwill

 

 

 

 

740,562

 

 

739,023

 

 

739,023

 

Other assets

484,276

 

 

492,950

 

 

405,948

 

 

386,607

 

 

380,662

 

Total assets

$

12,934,328

 

 

$

12,387,808

 

 

$

12,851,665

 

 

$

12,788,301

 

 

$

12,954,896

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

2,592,376

 

 

$

1,973,629

 

 

$

2,029,872

 

 

$

1,956,025

 

 

$

1,936,986

 

Interest-bearing deposits

8,558,238

 

 

8,205,486

 

 

8,058,656

 

 

8,344,314

 

 

8,298,958

 

Total deposits

11,150,614

 

 

10,179,115

 

 

10,088,528

 

 

10,300,339

 

 

10,235,944

 

Securities sold under agreements to repurchase

70,362

 

 

64,809

 

 

66,289

 

 

68,992

 

 

56,925

 

FHLB advances and other borrowings

355,000

 

 

800,000

 

 

575,000

 

 

340,000

 

 

605,000

 

Other liabilities

197,708

 

 

190,420

 

 

201,179

 

 

178,721

 

 

175,899

 

Total liabilities

11,773,684

 

 

11,234,344

 

 

10,930,996

 

 

10,888,052

 

 

11,073,768

 

Stockholders' equity

1,160,644

 

 

1,153,464

 

 

1,920,669

 

 

1,900,249

 

 

1,881,128

 

Total liabilities and stockholders' equity

$

12,934,328

 

 

$

12,387,808

 

 

$

12,851,665

 

 

$

12,788,301

 

 

$

12,954,896

 

 

GREAT WESTERN BANCORP, INC.

Loan Portfolio Summary (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

Fiscal year-to-date:

 

June 30,
2020

 

March 31,
2020

 

December 31,
2019

 

September 30,
2019

 

Change
($)

 

Change
(%)

 

(dollars in thousands)

Construction and development

$

407,024

 

 

$

434,264

 

 

$

496,156

 

 

$

463,757

 

 

$

(56,733)

 

 

(12.2)

%

Owner-occupied CRE

1,436,615

 

 

1,414,476

 

 

1,380,773

 

 

1,411,199

 

 

25,416

 

 

1.8

%

Non-owner-occupied CRE

2,965,971

 

 

2,910,516

 

 

2,827,484

 

 

2,853,131

 

 

112,840

 

 

4.0

%

Multifamily residential real estate

545,883

 

 

463,563

 

 

380,301

 

 

364,323

 

 

181,560

 

 

49.8

%

Commercial real estate

5,355,493

 

 

5,222,819

 

 

5,084,714

 

 

5,092,410

 

 

263,083

 

 

5.2

%

Agriculture

1,815,121

 

 

1,881,792

 

 

1,980,678

 

 

2,008,644

 

 

(193,523)

 

 

(9.6)

%

Commercial non-real estate

2,226,759

 

 

1,699,197

 

 

1,676,426

 

 

1,719,956

 

 

506,803

 

 

29.5

%

Residential real estate

862,821

 

 

820,759

 

 

811,735

 

 

812,208

 

 

50,613

 

 

6.2

%

Consumer

61,452

 

 

52,640

 

 

50,697

 

 

51,925

 

 

9,527

 

 

18.3

%

Other ¹

34,713

 

 

39,908

 

 

46,875

 

 

47,541

 

 

(12,828)

 

 

(27.0)

%

Total unpaid principal balance

10,356,359

 

 

9,717,115

 

 

9,651,125

 

 

9,732,684

 

 

623,675

 

 

6.4

%

Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process

(42,360)

 

 

(23,820)

 

 

(24,901)

 

 

(25,921)

 

 

(16,439)

 

 

63.4

%

Total loans

$

10,313,999

 

 

$

9,693,295

 

 

$

9,626,224

 

 

$

9,706,763

 

 

$

607,236

 

 

6.3

%

1 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts, and lease receivables.

 

GREAT WESTERN BANCORP, INC.

Net Interest Margin (FTE) (Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

 

Average Balance

Interest
(FTE)

Yield / Cost ¹

 

Average Balance

Interest
(FTE)

Yield / Cost ¹

 

Average Balance

Interest
(FTE)

Yield / Cost ¹

 

(dollars in thousands)

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing bank deposits ²

$

144,805

 

$

112

 

0.31

%

 

$

56,883

 

$

558

 

3.95

%

 

$

51,640

 

$

377

 

2.93

%

Investment securities

1,987,648

 

10,532

 

2.13

%

 

1,987,045

 

11,329

 

2.29

%

 

1,807,747

 

11,430

 

2.54

%

Non-ASC 310-30 loans, net ³

9,974,802

 

109,326

 

4.41

%

 

9,496,153

 

113,484

 

4.81

%

 

9,699,433

 

125,522

 

5.19

%

ASC 310-30 loans, net

49,250

 

1,502

 

12.27

%

 

50,372

 

1,386

 

11.07

%

 

58,701

 

2,294

 

15.67

%

Loans, net

10,024,052

 

110,828

 

4.45

%

 

9,546,525

 

114,870

 

4.84

%

 

9,758,134

 

127,816

 

5.25

%

Total interest-earning assets

12,156,505

 

121,472

 

4.02

%

 

11,590,453

 

126,757

 

4.40

%

 

11,617,521

 

139,623

 

4.82

%

Noninterest-earning assets

598,159

 

 

 

 

1,273,143

 

 

 

 

1,213,087

 

 

 

Total assets

$

12,754,664

 

$

121,472

 

3.83

%

 

$

12,863,596

 

$

126,757

 

3.96

%

 

$

12,830,608

 

$

139,623

 

4.36

%

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

2,414,567

 

 

 

 

$

1,942,686

 

 

 

 

$

1,875,649

 

 

 

Interest-bearing deposits

6,974,915

 

$

5,604

 

0.32

%

 

6,473,524

 

$

12,083

 

0.75

%

 

6,391,396

 

$

18,493

 

1.16

%

Time deposits

1,430,246

 

4,407

 

1.24

%

 

1,686,977

 

6,784

 

1.62

%

 

2,091,603

 

10,122

 

1.94

%

Total deposits

10,819,728

 

10,011

 

0.37

%

 

10,103,187

 

18,867

 

0.75

%

 

10,358,648

 

28,615

 

1.11

%

Securities sold under agreements to repurchase

64,645

 

15

 

0.09

%

 

56,369

 

24

 

0.17

%

 

60,551

 

41

 

0.27

%

FHLB advances and other borrowings

500,248

 

2,524

 

2.03

%

 

581,834

 

3,131

 

2.16

%

 

361,736

 

2,497

 

2.77

%

Subordinated debentures and subordinated notes payable

108,766

 

1,070

 

3.96

%

 

108,714

 

1,238

 

4.58

%

 

108,584

 

1,417

 

5.23

%

Total borrowings

673,659

 

3,609

 

2.15

%

 

746,917

 

4,393

 

2.37

%

 

530,871

 

3,955

 

2.99

%

Total interest-bearing liabilities

11,493,387

 

$

13,620

 

0.48

%

 

10,850,104

 

$

23,260

 

0.86

%

 

10,889,519

 

$

32,570

 

1.20

%

Noninterest-bearing liabilities

97,553

 

 

 

 

95,457

 

 

 

 

76,957

 

 

 

Stockholders' equity

1,163,724

 

 

 

 

1,918,035

 

 

 

 

1,864,132

 

 

 

Total liabilities and stockholders' equity

$

12,754,664

 

 

 

 

$

12,863,596

 

 

 

 

$

12,830,608

 

 

 

Net interest spread

 

 

3.35

%

 

 

 

3.10

%

 

 

 

3.16

%

Net interest income and net interest margin (FTE)

 

$

107,852

 

3.57

%

 

 

$

103,497

 

3.59

%

 

 

$

107,053

 

3.70

%

Less: Tax equivalent adjustment

 

1,601

 

 

 

 

1,514

 

 

 

 

1,424

 

 

Net interest income and net interest margin - ties to Statements of Comprehensive Income

 

$

106,251

 

3.52

%

 

 

$

101,983

 

3.54

%

 

 

$

105,629

 

3.65

%

1 Annualized for all partial-year periods.

2 Interest income includes $0.1 million and $0.2 million for the third quarter of fiscal years 2020 and 2019, respectively, resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets.

3 Interest income includes $0.2 million and $0.3 million for the third quarter of fiscal years 2020 and 2019, respectively, resulting from accretion of purchase accounting discount associated with acquired loans.

 

GREAT WESTERN BANCORP, INC.

Net Interest Margin (FTE) (Unaudited)

 

 

 

 

 

 

 

Nine Months Ended

 

June 30, 2020

 

June 30, 2019

 

Average Balance

Interest (FTE)

Yield / Cost ¹

 

Average Balance

Interest (FTE)

Yield / Cost ¹

 

(dollars in thousands)

Assets

 

 

 

 

 

 

 

Interest-bearing bank deposits ²

$

78,164

 

$

1,278

 

2.18

%

 

$

68,989

 

$

1,416

 

2.74

%

Investment securities

1,959,681

 

33,359

 

2.27

%

 

1,634,023

 

30,575

 

2.50

%

Non-ASC 310-30 loans, net ³

9,675,039

 

342,042

 

4.72

%

 

9,583,477

 

370,343

 

5.17

%

ASC 310-30 loans, net

50,639

 

4,610

 

12.16

%

 

63,471

 

6,169

 

12.99

%

Loans, net

9,725,678

 

346,652

 

4.76

%

 

9,646,948

 

376,512

 

5.22

%

Total interest-earning assets

11,763,523

 

381,289

 

4.33

%

 

11,349,960

 

408,503

 

4.81

%

Noninterest-earning assets

1,046,576

 

 

 

 

1,195,398

 

 

 

Total assets

$

12,810,099

 

$

381,289

 

3.98

%

 

$

12,545,358

 

$

408,503

 

4.35

%

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

Noninterest-bearing deposits

$

2,111,445

 

 

 

 

$

1,846,467

 

 

 

Interest-bearing deposits

6,585,100

 

$

31,060

 

0.63

%

 

6,301,910

 

$

52,094

 

1.11

%

Time deposits

1,655,059

 

19,758

 

1.59

%

 

2,022,702

 

27,413

 

1.81

%

Total deposits

10,351,604

 

50,818

 

0.66

%

 

10,171,079

 

79,507

 

1.05

%

Securities sold under agreements to repurchase

62,513

 

70

 

0.15

%

 

67,879

 

140

 

0.28

%

FHLB advances and other borrowings

526,372

 

8,737

 

2.22

%

 

289,526

 

6,324

 

2.92

%

Subordinated debentures and subordinated notes payable

108,715

 

3,619

 

4.45

%

 

108,530

 

4,177

 

5.15

%

Total borrowings

697,600

 

12,426

 

2.38

%

 

465,935

 

10,641

 

3.05

%

Total interest-bearing liabilities

11,049,204

 

$

63,244

 

0.76

%

 

10,637,014

 

$

90,148

 

1.13

%

Noninterest-bearing liabilities

97,475

 

 

 

 

73,636

 

 

 

Stockholders' equity

1,663,420

 

 

 

 

1,834,708

 

 

 

Total liabilities and stockholders' equity

$

12,810,099

 

 

 

 

$

12,545,358

 

 

 

Net interest spread

 

 

3.22

%

 

 

 

3.22

%

Net interest income and net interest margin (FTE)

 

$

318,045

 

3.61

%

 

 

$

318,355

 

3.75

%

Less: Tax equivalent adjustment

 

4,638

 

 

 

 

4,356

 

 

Net interest income and net interest margin - ties to Statements of Comprehensive Income

 

$

313,407

 

3.56

%

 

 

$

313,999

 

3.70

%

1 Annualized for all partial-year periods.

2 Interest income includes $0.8 million and $0.3 million for the first nine months of fiscal years 2020 and 2019, respectively, resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets.

3 Interest income includes $1.2 million and $1.0 million for the first nine months of fiscal years 2020 and 2019, respectively, resulting from accretion of purchase accounting discount associated with acquired loans.

 

Non-GAAP Financial Measures and Reconciliation

We rely on certain non-GAAP financial measures in making financial and operational decisions about our business. We believe that each of the non-GAAP financial measures presented is helpful in highlighting trends in our business, financial condition and results of operations which might not otherwise be apparent when relying solely on our financial results calculated in accordance with U.S. GAAP. We disclose net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis.

In particular, we evaluate our profitability and performance based on our adjusted net income, adjusted earnings per common share, tangible net income and return on average tangible common equity. Our adjusted net income and adjusted earnings per common share exclude the after-tax effect of items with a significant impact to net income that we do not believe to be recurring in nature, (e.g., one-time acquisition expenses as well as the COVID-19 impact on credit and other related charges and the impairment of goodwill and certain intangible assets). Our tangible net income and return on average tangible common equity exclude the effects of amortization expense relating to intangible assets and related tax effects from the acquisition of us by National Australia Bank Limited ("NAB") and our acquisitions of other institutions. We believe these measures help highlight trends associated with our financial condition and results of operations by providing net income and return information excluding significant nonrecurring items (for adjusted net income and adjusted earnings per common share) and based on our cash payments and receipts during the applicable period (for tangible net income and return on average tangible common equity).

We also evaluate our profitability and performance based on our adjusted net interest income, adjusted net interest margin, adjusted interest income on non-ASC 310-30 loans and adjusted yield on non-ASC 310-30 loans. We adjust each of these four measures to include the current realized gain (loss) of derivatives we use to manage interest rate risk on certain of our loans, which we believe economically offsets the interest income earned on the loans. Similarly, we evaluate our operational efficiency based on our efficiency ratio, which excludes the effect of amortization of core deposit and other intangibles (a non-cash expense item) and includes the tax benefit associated with our tax-advantaged loans.

We evaluate our financial condition based on the ratio of our tangible common equity to our tangible assets and the ratio of our tangible common equity to common shares outstanding. Our calculation of this ratio excludes the effect of our goodwill and other intangible assets. We believe this measure is helpful in highlighting the common equity component of our capital and because of its focus by federal bank regulators when reviewing the health and strength of financial institutions in recent years and when considering regulatory approvals for certain actions, including capital actions. We also believe the ratio of our tangible common equity to common shares outstanding is helpful in understanding our stockholders’ relative ownership position as we undertake various actions to issue and retire common shares outstanding.

Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this release.

 

GREAT WESTERN BANCORP, INC.

Reconciliation of Non-GAAP Measures (Unaudited)

 

 

 

 

 

 

 

 

 

 

At and for the nine months ended:

 

At and for the three months ended:

 

June 30,
2020

June 30,
2019

 

June 30,
2020

March 31,
2020

December 31,
2019

September 30,
2019

June 30,
2019

 

(dollars in thousands except share and per share amounts)

Adjusted net income and adjusted earnings per common share:

 

 

 

 

 

 

 

 

Net (loss) income - GAAP

$

(691,944)

 

$

117,080

 

 

$

5,400

 

$

(740,618)

 

$

43,274

 

$

50,285

 

$

26,783

 

Add: COVID-19 related impairment of goodwill and certain intangible assets, net of tax

713,013

 

 

 

 

713,013

 

 

 

 

Add: COVID-19 impact on credit and other related charges, net of tax

56,685

 

 

 

 

56,685

 

 

 

 

Adjusted net income

$

77,754

 

$

117,080

 

 

$

5,400

 

$

29,080

 

$

43,274

 

$

50,285

 

$

26,783

 

 

 

 

 

 

 

 

 

 

Weighted average diluted common shares outstanding

55,788,751

 

57,408,023

 

 

55,145,619

 

55,906,002

 

56,457,967

 

56,804,172

 

57,110,103

 

Earnings per common share - diluted

$

(12.40)

 

$

2.04

 

 

$

0.10

 

$

(13.25)

 

$

0.77

 

$

0.89

 

$

0.47

 

Adjusted earnings per common share - diluted

$

1.39

 

$

2.04

 

 

$

0.10

 

$

0.52

 

$

0.77

 

$

0.89

 

$

0.47

 

 

 

 

 

 

 

 

 

 

Tangible net income and return on average tangible common equity:

 

 

 

 

 

 

 

 

Net (loss) income - GAAP

$

(691,944)

 

$

117,080

 

 

$

5,400

 

$

(740,618)

 

$

43,274

 

$

50,285

 

$

26,783

 

Add: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets, net of tax

714,078

 

1,022

 

 

261

 

713,440

 

377

 

315

 

335

 

Tangible net income

$

22,134

 

$

118,102

 

 

$

5,661

 

$

(27,178)

 

$

43,651

 

$

50,600

 

$

27,118

 

 

 

 

 

 

 

 

 

 

Average common equity

$

1,663,420

 

$

1,834,708

 

 

$

1,163,724

 

$

1,918,035

 

$

1,908,519

 

$

1,885,785

 

$

1,864,132

 

Less: Average goodwill and other intangible assets

498,644

 

746,110

 

 

6,527

 

741,257

 

748,146

 

745,349

 

745,718

 

Average tangible common equity

$

1,164,776

 

$

1,088,598

 

 

$

1,157,197

 

$

1,176,778

 

$

1,160,373

 

$

1,140,436

 

$

1,118,414

 

 

 

 

 

 

 

 

 

 

Return on average common equity *

(55.6)

%

8.5

%

 

1.9

%

(155.3)

%

9.0

%

10.6

%

5.8

%

Return on average tangible common equity **

2.5

%

14.5

%

 

2.0

%

(9.3)

%

15.0

%

17.6

%

9.7

%

* Calculated as net income - GAAP divided by average common equity. Annualized for partial-year periods.

** Calculated as tangible net income divided by average tangible common equity. Annualized for partial-year periods.

 

 

 

 

 

 

 

 

 

Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis):

 

 

 

 

 

 

 

 

Net interest income - GAAP

$

313,407

 

$

313,999

 

 

$

106,251

 

$

101,983

 

$

105,173

 

$

106,709

 

$

105,629

 

Add: Tax equivalent adjustment

4,638

 

4,356

 

 

1,601

 

1,514

 

1,523

 

1,487

 

1,424

 

Net interest income (FTE)

318,045

 

318,355

 

 

107,852

 

103,497

 

106,696

 

108,196

 

107,053

 

Add: Current realized derivative gain (loss)

(5,180)

 

746

 

 

(3,040)

 

(1,250)

 

(890)

 

(127)

 

321

 

Adjusted net interest income (FTE)

$

312,865

 

$

319,101

 

 

$

104,812

 

$

102,247

 

$

105,806

 

$

108,069

 

$

107,374

 

 

 

 

 

 

 

 

 

 

Average interest-earning assets

$

11,763,523

 

$

11,349,960

 

 

$

12,156,505

 

$

11,590,453

 

$

11,543,610

 

$

11,609,823

 

$

11,617,521

 

Net interest margin (FTE) *

3.61

%

3.75

%

 

3.57

%

3.59

%

3.68

%

3.70

%

3.70

%

Adjusted net interest margin (FTE) **

3.55

%

3.76

%

 

3.47

%

3.55

%

3.65

%

3.69

%

3.71

%

* Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods.

** Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods.

 

 

 

 

 

 

 

 

 

Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non-ASC 310-30 loans:

 

 

 

 

 

 

 

 

Interest income - GAAP

$

337,404

 

$

365,987

 

 

$

107,725

 

$

111,970

 

$

117,709

 

$

124,923

 

$

124,098

 

Add: Tax equivalent adjustment

4,638

 

4,356

 

 

1,601

 

1,514

 

1,523

 

1,487

 

1,424

 

Interest income (FTE)

342,042

 

370,343

 

 

109,326

 

113,484

 

119,232

 

126,410

 

125,522

 

Add: Current realized derivative gain (loss)

(5,180)

 

746

 

 

(3,040)

 

(1,250)

 

(890)

 

(127)

 

321

 

Adjusted interest income (FTE)

$

336,862

 

$

371,089

 

 

$

106,286

 

$

112,234

 

$

118,342

 

$

126,283

 

$

125,843

 

 

 

 

 

 

 

 

 

 

Average non-ASC 310-30 loans

$

9,675,039

 

$

9,583,477

 

 

$

9,974,802

 

$

9,496,153

 

$

9,554,161

 

$

9,693,395

 

$

9,699,433

 

Yield (FTE) *

4.72

%

5.17

%

 

4.41

%

4.81

%

4.96

%

5.17

%

5.19

%

Adjusted yield (FTE) **

4.65

%

5.18

%

 

4.29

%

4.75

%

4.93

%

5.17

%

5.20

%

* Calculated as interest income (FTE) divided by average loans. Annualized for partial-year periods.

** Calculated as adjusted interest income (FTE) divided by average loans. Annualized for partial-year periods.

 

 

 

 

 

 

 

 

 

Efficiency ratio:

 

 

 

 

 

 

 

 

Total revenue - GAAP

$

317,374

 

$

359,708

 

 

$

94,568

 

$

101,900

 

$

120,906

 

$

121,732

 

$

116,395

 

Add: Tax equivalent adjustment

4,638

 

4,356

 

 

1,601

 

1,514

 

1,523

 

1,487

 

1,424

 

Total revenue (FTE)

$

322,012

 

$

364,064

 

 

$

96,169

 

$

103,414

 

$

122,429

 

$

123,219

 

$

117,819

 

 

 

 

 

 

 

 

 

 

Noninterest expense

$

932,432

 

$

169,686

 

 

$

67,049

 

$

808,453

 

$

56,930

 

$

55,212

 

$

56,000

 

Less: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets

743,484

 

1,173

 

 

278

 

742,779

 

427

 

366

 

385

 

Tangible noninterest expense

$

188,948

 

$

168,513

 

 

$

66,771

 

$

65,674

 

$

56,503

 

$

54,846

 

$

55,615

 

 

 

 

 

 

 

 

 

 

Efficiency ratio *

58.7

%

46.3

%

 

69.4

%

63.5

%

46.2

%

44.5

%

47.2

%

* Calculated as the ratio of tangible noninterest expense to total revenue (FTE).

 

 

 

 

 

 

 

 

 

Tangible common equity and tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

Total stockholders' equity

$

1,160,644

 

$

1,881,128

 

 

$

1,160,644

 

$

1,153,464

 

$

1,920,669

 

$

1,900,249

 

$

1,881,128

 

Less: Goodwill and other intangible assets

6,425

 

745,563

 

 

6,425

 

6,703

 

749,481

 

745,197

 

745,563

 

Tangible common equity

$

1,154,219

 

$

1,135,565

 

 

$

1,154,219

 

$

1,146,761

 

$

1,171,188

 

$

1,155,052

 

$

1,135,565

 

 

 

 

 

 

 

 

 

 

Total assets

$

12,934,328

 

$

12,954,896

 

 

$

12,934,328

 

$

12,387,808

 

$

12,851,665

 

$

12,788,301

 

$

12,954,896

 

Less: Goodwill and other intangible assets

6,425

 

745,563

 

 

6,425

 

6,703

 

749,481

 

745,197

 

745,563

 

Tangible assets

$

12,927,903

 

$

12,209,333

 

 

$

12,927,903

 

$

12,381,105

 

$

12,102,184

 

$

12,043,104

 

$

12,209,333

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

8.9

%

9.3

%

 

8.9

%

9.3

%

9.7

%

9.6

%

9.3

%

 

 

 

 

 

 

 

 

 

Tangible book value per share:

 

 

 

 

 

 

 

 

Total stockholders' equity

$

1,160,644

 

$

1,881,128

 

 

$

1,160,644

 

$

1,153,464

 

$

1,920,669

 

$

1,900,249

 

$

1,881,128

 

Less: Goodwill and other intangible assets

6,425

 

745,563

 

 

6,425

 

6,703

 

749,481

 

745,197

 

745,563

 

Tangible common equity

$

1,154,219

 

$

1,135,565

 

 

$

1,154,219

 

$

1,146,761

 

$

1,171,188

 

$

1,155,052

 

$

1,135,565

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

55,014,047

 

56,939,032

 

 

55,014,047

 

55,013,928

 

56,382,915

 

56,283,659

 

56,939,032

 

Book value per share - GAAP

$

21.10

 

$

33.04

 

 

$

21.10

 

$

20.97

 

$

34.06

 

$

33.76

 

$

33.04

 

Tangible book value per share

$

20.98

 

$

19.94

 

 

$

20.98

 

$

20.84

 

$

20.77

 

$

20.52

 

$

19.94

 

 

GREAT WESTERN BANCORP, INC.

Media and Investor Relations Contacts:

Peter Chapman, 605.373.3198
peter.chapman@greatwesternbank.com

Seth Artz, 605.988.9523
seth.artz@greatwesternbank.com

Source: Great Western Bancorp, Inc.