Financial Highlights
-
First quarter net income was $26.7 million, or $0.46 per share
-
Noninterest expense management drove an efficiency ratio1
of 48.5% for the quarter
-
Asset quality remained solid with net recoveries at (0.06)% of total
loans and the allowance for loan losses increasing to 0.74% of total
loans
-
Total loans grew $199.3 million, or 2.9%, and deposits grew $187.0
million, or 2.7%, compared to September 30, 2014
Company Website:
http://www.GreatWesternBank.com
SIOUX FALLS, S.D. -- (Business Wire)
Great Western Bancorp, Inc. (NYSE: GWB) today reported net income of
$26.7 million, or $0.46 per share, for the quarter ended December 31,
2014, compared to net income of $28.6 million, or $0.49 per share, for
the same quarter of fiscal year 2014. Provision for loan losses was $3.3
million in the current quarter compared to $(0.9) million (i.e., release
of provision for loan losses) in the first quarter of fiscal year 2014,
an increase of $4.2 million. Higher provision for loan losses was
partially offset by stronger net interest income and lower noninterest
expenses. Asset quality metrics continue to remain strong and trend
positively.
“We are pleased with our financial performance for the quarter and the
momentum it provides for the remainder of the fiscal year,” said Ken
Karels, President and Chief Executive Officer of Great Western Bancorp,
Inc. “We were able to deliver strong net income, recorded sound loan and
deposit growth, further rationalized our branch footprint and continued
the trend of reducing our cost of deposits, which dates to fiscal year
2011. We have a strong platform in place with balanced and diversified
lending exposure. In addition, we have very limited exposure to energy
which should be reassuring to our shareholders in light of current
economic conditions.”
Presentation of Results for Loans at Fair Value and Related
Derivatives
In the normal course of business, the Company manages interest rate risk
by entering into fixed-to-floating interest rate swaps related to all
fixed-rate loans with original terms longer than five years it extends
to customers. The Company has elected to account for these loans using
the Fair Value Option, with a similar treatment applied to the related
derivatives. Previously, the Company presented the changes in fair value
of these loans related to both interest rates and credit quality in
interest income and the Company presented the changes in fair value of
the derivatives in noninterest expense. Changes in fair value related to
interest rates on the loans and changes in fair value of the derivatives
were completely offset in any reporting period. Seeking to improve the
clarity and comparability of its financial statements, the Company has
elected to change its presentation of the changes in fair value related
to these loans and derivatives by presenting these changes in two
separate line items in noninterest income. Changes in fair value related
to these loans, both related to interest rates and credit quality, will
now be presented in net increase (decrease) in fair value of loans at
fair value within noninterest income, and changes in fair value
related to these derivatives will now be presented in net realized
and unrealized gain (loss) on derivatives within noninterest income.
This change in presentation is consistent with how the Company has
presented its adjusted net interest income, adjusted noninterest
expense, adjusted net interest margin and adjusted efficiency ratio on a
non-GAAP basis to reflect the net effect of these changes in fair value
related to interest rates.
In connection with this change, the Company has determined that the
current realized gain (loss) on the derivatives should have been
presented within noninterest income. Previously, the current realized
gain (loss) on the derivatives was presented in interest income on a net
basis with interest income recognized on the loans. Based on an
evaluation of quantitative and qualitative factors, the Company believes
correcting the presentation of the current realized gain (loss) on the
derivatives is not material to its financial statements previously
presented and has not impacted the Company’s net income for any period
presented. Because the Company believes that, economically, the current
realized gain (loss) on the derivatives increases (decreases) the fixed
interest income received from customers (as historically presented), the
Company presented a non-GAAP adjusted net interest margin and adjusted
loan yield to reflect the underlying economics.
The change in presentation and reclassification of current realized gain
(loss) on derivatives discussed above been reflected for all periods
presented in this release and all supplementary financial data
accompanying this release for purposes of comparability.
Net Interest Income and Net Interest Margin2, 3
Net interest income increased $3.2 million, or 4%, from $81.2 million
for the first quarter of fiscal year 2014 to $84.4 million for the first
quarter of fiscal year 2015. Higher interest income on loans and lower
deposit interest expense were partially offset by lower interest income
from the investment portfolio, which comprises a smaller portion of
interest-earning assets in the first quarter of fiscal year 2015 as a
result of higher loan growth compared to deposit growth over the last
year which was partially funded by run-off of investments.
Net interest margin was 3.91%, 4.10% and 3.98%, respectively, for the
quarters ended December 31, 2014, September 30, 2014, and December 31,
2013. Adjusted net interest margin1, which adjusts for the
realized gain (loss) on interest rate swaps, was 3.67%, 3.86% and 3.77%,
respectively, for the same periods. Net interest margin and adjusted net
interest margin1 for the first quarter of fiscal year 2015
were impacted by the fact that the proceeds from the Company's initial
public offering were held on deposit at Great Western Bank by the
majority selling shareholder for most of the quarter. These funds earned
marginal interest income and drove each measure lower by approximately 9
basis points. The remaining changes were driven by lower loan yields,
partially offset by lower cost of deposits.
Loan growth for the quarter ended December 31, 2014 was $199.3 million,
or 2.9%, compared to September 30, 2014. The majority of the growth for
the quarter occurred in the commercial real estate ($104.5 million) and
agribusiness ($106.8 million) segments of the portfolio, consistent with
strategy. Management believes a portion of the growth in agribusiness
loans during the quarter was driven by customers' tax planning
strategies and may be repaid in the next quarter. Deposits grew by
$187.0 million, or 2.7% compared to September 30, 2014, driven in large
part by successful campaigns to grow business and consumer balances.
Average cost of deposits for the quarter was 0.33%, down 5 basis points
compared to the same quarter in fiscal year 2014, driven by continuing
change in the mix of the deposit portfolio.
Provision for Loan Losses and Asset Quality
Provision for loan losses was $3.3 million for the quarter ended
December 31, 2014, compared to $(0.9) million in the same quarter of
fiscal year 2014. The provision recorded during the quarter was
predominantly driven by a small number of loan relationships for which
management determined that additional specific allowance was required.
Net charge-offs for the quarter were a net recovery of $(1.0) million,
or (0.06)% of total loans on an annualized basis, and the ratio of
allowance for loan losses to total loans increased from 0.70% at
September 30, 2014 to 0.74% at December 31, 2014.
At December 31, 2014, nonperforming loans were $68.5 million compared to
$78.9 million at September 30, 2014, a 13% improvement, with $29.5
million of the balance at December 31, 2014, covered by FDIC
loss-sharing arrangements. OREO balances improved by approximately 12%,
declining by $6.1 million during the quarter, with $10.6 million of OREO
covered by FDIC loss-sharing arrangements.
Noninterest Income3
Noninterest income was $7.9 million for the quarter ended December 31,
2014, a decrease of 27% compared to the first quarter of fiscal year
2014. Included within noninterest income are the changes in fair value
of certain loans for which the Company has elected the fair value option
and the net gain (loss), realized and unrealized, of the related
derivatives used to manage the interest rate risk on these loans. For
the first quarter of fiscal year 2015, these two components of
noninterest income accounted for a net charge of $7.5 million, compared
to a net charge of $4.3 million in the same quarter of fiscal year 2014.
The increase was primarily driven by a $2.7 million charge related to a
change in the fair value, related to credit, of one loan relationship
that was ultimately charged off during the quarter.
Aside from the increased net charges related to loans at fair value and
the related derivatives, noninterest income remained strong, driven
primarily by the Company's portion of recoveries related to acquired
loans and improved trust services revenue. Service charges and other fee
income and gains on sales of originated mortgage loans both remained in
line with the previous quarter and the same quarter of fiscal year 2014.
Noninterest Expense3
Total noninterest expense was $47.1 million for the quarter ended
December 31, 2014, a decrease of 2% or $1.2 million compared to the same
quarter in fiscal year 2014. The decrease in noninterest expense was
driven in large part by a $2.4 million decrease in amortization of
intangible assets, partially offset by a $0.9 million increase in net
OREO costs and higher audit and consulting fees incurred as a result of
being a public company. Costs related to management long-term incentives
issued as part of the IPO were largely offset by lapses of incentives
related to historical incentive plans during the quarter. The efficiency
ratio1 was 48.5% for the quarter, compared to 47.4% for the
same quarter of fiscal year 2014.
Capital
Tier 1 and total capital ratios were 11.8% and 12.9%, respectively, at
December 31, 2014 and September 30, 2014. Retained earnings increased
during the quarter, offset by the impact of higher risk weighted assets
primarily driven by loan growth.
As disclosed this morning, the Company’s board of directors declared a
dividend of $0.12 per common share payable on February 23, 2015 to
owners of record as of close of business on February 12, 2015.
Business Outlook
“Fiscal year 2015 is shaping up to be a solid year for us,” noted
Karels. “We continue to recruit great bankers to serve new and existing
markets in our footprint and find ways to control our cost base while
continuing to provide the outstanding service our customers deserve. Our
loan growth during the quarter outpaced expectations due in part to our
customers' tax planning strategies, and while some of that growth may be
paid down in the March quarter, we believe it is indicative of a strong
underlying pipeline of new business. As was noted last quarter, we face
continued challenges in competition for lending growth due to persistent
lower interest rates. We also made good progress growing business and
consumer deposits during the quarter, which puts us in a position to
fund loan growth through the remainder of the year.”
Conference Call
Great Western Bancorp, Inc. will host a conference call to discuss its
financial results for the first quarter of fiscal year 2015 on
Wednesday, January 28, 2015 at 7:30 AM (CT). The call can be accessed by
dialing (888) 317-6016 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) 317-6016. 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 February 12, 2015. To access the replay, dial (877)
344-7529 (U.S.) and use conference ID #10058830. 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. As of September 30, 2014, Great
Western Bank had nearly $9.4 billion in total assets and 163 branches in
seven states: South Dakota, Iowa, Nebraska, Colorado, Arizona, Kansas
and Missouri. 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. 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’s expectations, beliefs, plans,
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,” “intends” and similar
words or phrases. In particular, the statements included in this press
release concerning Great Western’s expected performance and strategy,
and the interest rate environment, in fiscal year 2015 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’s Annual Report on Form 10-K for the fiscal year ended September
30, 2014. Further, any forward-looking statement speaks only as of the
date on which it is made, and Great Western 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.
1 This is a non-GAAP measure management believes is helpful
to understanding trends in the business that may not be fully apparent
based only on the most comparable GAAP measure. Further information on
this measure and a reconciliation to the most comparable GAAP measure is
provided at the end of this document.
2 All references to net interest income and net interest
margin are presented on a fully-tax equivalent basis unless otherwise
noted.
3 Amounts and results discussed in this section are affected
by the changes discussed in "Presentation of Results for Loans at Fair
Value and Related Derivatives."
|
| | |
| | |
| | |
| | |
| | |
GREAT WESTERN BANCORP, INC. | | | | | | | | | | | | | | | |
Consolidated Financial Data (Unaudited)
| | | | | | | | | | | | | | | |
(Dollars in thousands except per share amounts)
| | | | | | | | | | | | | | | |
| |
|
| |
At and for the three months ended
|
| |
December 31,
| |
September 30,
| |
June 30,
| | | |
December 31,
|
| |
2014
| |
2014
| |
2014
| |
March 31, 2014
| |
2013
|
Operating Data: | | | | | | | | | | | | | | | |
Interest and dividend income (FTE)
| |
$
|
92,082
| | |
$
|
92,265
| | |
$
|
89,077
| | |
$
|
85,994
| | |
$
|
89,803
| |
Interest expense
| |
7,669
| | |
7,715
| | |
7,778
| | |
7,929
| | |
8,630
| |
Noninterest income
| |
7,900
| | |
8,501
| | |
10,314
| | |
10,140
| | |
10,826
| |
Noninterest expense
| |
47,092
| | |
48,318
| | |
54,279
| | |
49,326
| | |
48,299
| |
Provision for loan losses
| |
3,319
| | |
2,749
| | |
1,500
| | |
(2,690
|
)
| |
(875
|
)
|
Net income
| |
26,697
| | |
27,875
| | |
22,503
| | |
25,970
| | |
28,604
| |
Earnings per common share2 | |
$
|
0.46
| | |
$
|
0.48
| | |
$
|
0.39
| | |
$
|
0.45
| | |
$
|
0.49
| |
| | | | | | | | | | | | | | |
|
Performance Ratios: | | | | | | | | | | | | | | | |
Net interest margin (FTE)
| |
3.91
|
%
| |
4.10
|
%
| |
4.03
|
%
| |
3.96
|
%
| |
3.98
|
%
|
Adjusted net interest margin (FTE)1 | |
3.67
|
%
| |
3.86
|
%
| |
3.80
|
%
| |
3.73
|
%
| |
3.77
|
%
|
Return on average total assets
| |
1.10
|
%
| |
1.19
|
%
| |
0.98
|
%
| |
1.15
|
%
| |
1.23
|
%
|
Return on average common equity
| |
7.39
|
%
| |
7.69
|
%
| |
6.25
|
%
| |
7.41
|
%
| |
7.98
|
%
|
Return on average tangible common equity1 | |
15.8
|
%
| |
16.3
|
%
| |
14.2
|
%
| |
17.3
|
%
| |
18.5
|
%
|
Efficiency ratio1 | |
48.5
|
%
| |
49.0
|
%
| |
54.8
|
%
| |
50.6
|
%
| |
47.4
|
%
|
| | | | | | | | | | | | | | |
|
Capital: | | | | | | | | | | | | | | | |
Tier 1 capital ratio
| |
11.8
|
%
| |
11.8
|
%
| |
12.1
|
%
| |
12.4
|
%
| |
12.1
|
%
|
Total capital ratio
| |
12.9
|
%
| |
12.9
|
%
| |
13.1
|
%
| |
13.6
|
%
| |
13.4
|
%
|
Tier 1 leverage ratio
| |
9.1
|
%
| |
9.1
|
%
| |
9.3
|
%
| |
9.4
|
%
| |
8.9
|
%
|
Tangible common equity / tangible assets1 | |
8.3
|
%
| |
8.2
|
%
| |
8.3
|
%
| |
8.4
|
%
| |
8.0
|
%
|
| | | | | | | | | | | | | | |
|
Asset Quality: | | | | | | | | | | | | | | | |
Nonperforming loans
| |
68,454
| | |
78,905
| | |
80,838
| | |
90,468
| | |
119,666
| |
OREO
| |
43,442
| | |
49,580
| | |
54,190
| | |
77,223
| | |
52,726
| |
Nonperforming loans / total loans
| |
0.98
|
%
| |
1.16
|
%
| |
1.21
|
%
| |
1.39
|
%
| |
1.84
|
%
|
Net charge-offs (recoveries)
| |
(983
|
)
| |
2,269
| | |
1,615
| | |
6,226
| | |
(1,080
|
)
|
Net charge-offs (recoveries) / average total loans
| |
(0.06
|
)%
| |
0.13
|
%
| |
0.10
|
%
| |
0.39
|
%
| |
(0.07
|
)%
|
Allowance for loan losses / total loans
| |
0.74
|
%
| |
0.70
|
%
| |
0.70
|
%
| |
0.72
|
%
| |
0.86
|
%
|
| | | | | | | | | | | | | | |
|
NOTE: Certain line items within Operating Data and Performance
Ratios have changed from previous disclosures due to the changes
noted in "Presentation of Results for Loans at Fair Value and
Related Derivatives."
|
|
1 This is a non-GAAP financial measure we believe is
helpful to interpreting our financial results. See the table at the
end of this document for the calculation of the measure and
reconciliation to the most comparable GAAP measure.
|
|
2 Share dilution calculated for the quarter represented
approximately 0.1% of shares outstanding and, as such, diluted EPS
equals EPS for all periods presented.
|
|
|
| | |
| | |
| | |
| | |
| | |
GREAT WESTERN BANCORP, INC. | | | | | | | | | | | | | | | |
Consolidated Income Statement (Unaudited)
| | | | | | | | | | | | | | | |
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| |
|
| |
For the three months ended
|
| |
December 31,
| |
September 30,
| |
June 30,
| |
March 31,
| |
December 31,
|
| |
2014
| |
2014
| |
2014
| |
2014
| |
2013
|
Interest and dividend income | | | | | | | | | | | | | | | |
Loans
| |
$
|
84,344
| | |
$
|
84,477
| | |
$
|
80,797
| | |
$
|
77,933
| | |
$
|
81,403
| |
Taxable securities
| |
5,687
| | |
6,173
| | |
6,598
| | |
6,623
| | |
6,969
| |
Nontaxable securities
| |
13
| | |
18
| | |
33
| | |
15
| | |
14
| |
Dividends on securities
| |
250
| | |
217
| | |
351
| | |
199
| | |
201
| |
Federal funds sold and other
| |
284
|
| |
56
|
| |
99
|
| |
116
|
| |
184
|
|
Total interest and dividend income | | 90,578 | | | 90,941 | | | 87,878 | | | 84,886 | | | 88,771 | |
Interest expense | | | | | | | | | | | | | | | |
Deposits
| |
6,015
| | |
6,136
| | |
6,319
| | |
6,430
| | |
6,879
| |
Securities sold under agreements to repurchase
| |
146
| | |
158
| | |
153
| | |
143
| | |
146
| |
FHLB advances and other borrowings
| |
946
| | |
860
| | |
752
| | |
803
| | |
1,037
| |
Related party notes payable
| |
232
| | |
231
| | |
229
| | |
227
| | |
234
| |
Subordinated debentures and other
| |
330
|
| |
330
|
| |
325
|
| |
326
|
| |
334
|
|
Total interest expense | | 7,669 |
| | 7,715 |
| | 7,778 |
| | 7,929 |
| | 8,630 |
|
Net interest income | | 82,909 | | | 83,226 | | | 80,100 | | | 76,957 | | | 80,141 | |
Provision for loan losses
| |
3,319
|
| |
2,749
|
| |
1,500
|
| |
(2,690
|
)
| |
(875
|
)
|
Net interest income after provision for loan losses | | 79,590 |
| | 80,477 |
| | 78,600 |
| | 79,647 |
| | 81,016 |
|
Noninterest income | | | | | | | | | | | | | | | |
Service charges and other fees
| |
10,398
| | |
10,477
| | |
9,695
| | |
9,370
| | |
10,662
| |
Net gain on sale of loans
| |
1,544
| | |
1,653
| | |
1,323
| | |
947
| | |
1,616
| |
Casualty insurance commissions
| |
316
| | |
196
| | |
321
| | |
298
| | |
258
| |
Investment center income
| |
573
| | |
660
| | |
577
| | |
589
| | |
591
| |
Net gain on sale of securities
| |
51
| | |
84
| | |
—
| | |
6
| | |
—
| |
Trust department income
| |
1,068
| | |
891
| | |
942
| | |
1,000
| | |
905
| |
Net increase (decrease) in fair value of loans at fair value
| |
17,100
| | |
(1,602
|
)
| |
13,886
| | |
8,730
| | |
(9,110
|
)
|
Net realized and unrealized gain (loss) on derivatives
| |
(24,605
|
)
| |
(4,781
|
)
| |
(17,797
|
)
| |
(12,436
|
)
| |
4,837
| |
Other
| |
1,455
|
| |
923
|
| |
1,367
|
| |
1,636
|
| |
1,067
|
|
Total noninterest income | | 7,900 | | | 8,501 | | | 10,314 | | | 10,140 | | | 10,826 | |
Noninterest expense | | | | | | | | | | | | | | | |
Salaries and employee benefits
| |
24,088
| | |
23,928
| | |
24,126
| | |
23,030
| | |
24,021
| |
Occupancy expenses, net
| |
4,024
| | |
3,913
| | |
4,894
| | |
4,486
| | |
4,233
| |
Data processing
| |
4,828
| | |
5,442
| | |
4,354
| | |
4,724
| | |
5,028
| |
Equipment expenses
| |
956
| | |
1,251
| | |
1,077
| | |
995
| | |
1,027
| |
Advertising
| |
728
| | |
1,360
| | |
1,213
| | |
1,089
| | |
1,084
| |
Communication expenses
| |
1,173
| | |
1,108
| | |
1,046
| | |
1,242
| | |
1,114
| |
Professional fees
| |
3,572
| | |
2,609
| | |
3,620
| | |
3,106
| | |
2,898
| |
Net (gain) loss from sale of repossessed property and other assets
| |
(368
|
)
| |
(37
|
)
| |
(1,564
|
)
| |
(279
|
)
| |
(571
|
)
|
Amortization of core deposits and other intangibles
| |
2,313
| | |
2,768
| | |
4,069
| | |
4,690
| | |
4,688
| |
Other
| |
5,778
|
| |
5,976
|
| |
11,444
|
| |
6,243
|
| |
4,777
|
|
Total noninterest expense | | 47,092 |
| | 48,318 |
| | 54,279 |
| | 49,326 |
| | 48,299 |
|
Income before income taxes | | 40,398 | | | 40,660 | | | 34,635 | | | 40,461 | | | 43,543 | |
Provision for income taxes
| |
13,701
|
| |
12,785
|
| |
12,132
|
| |
14,491
|
| |
14,939
|
|
Net income | | $ | 26,697 |
| | $ | 27,875 |
| | $ | 22,503 |
| | $ | 25,970 |
| | $ | 28,604 |
|
| | | | | | | | | | | | | | |
|
NOTE: Certain line items within Interest and Dividend Income,
Noninterest Income and Noninterest Expense have changed from
previous disclosures due to the changes noted in "Presentation of
Results for Loans at Fair Value and Related Derivatives."
|
|
|
| | |
| | |
| | |
| | |
| | |
GREAT WESTERN BANCORP, INC. | | | | | | | | | | | | | | | |
Summarized Consolidated Balance Sheet (Unaudited)
| | | | | | | | | | | | | | | |
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| |
|
| |
As of
|
| |
December 31,
| |
September 30,
| |
June 30,
| | | |
December 31,
|
| |
2014
| |
2014
| |
2014
| |
March 31, 2014
| |
2013
|
Assets | | | | | | | | | | | | | | | |
Cash and due from banks
| |
$
|
428,186
| | |
$
|
256,639
| | |
$
|
235,077
| | |
$
|
423,148
| | |
$
|
408,173
| |
Securities
| |
1,263,983
| | |
1,341,242
| | |
1,395,768
| | |
1,316,338
| | |
1,384,671
| |
Total loans
| |
6,986,765
| | |
6,787,467
| | |
6,678,501
| | |
6,531,763
| | |
6,487,893
| |
Allowance for loan losses
| |
(51,820
|
)
| |
(47,518
|
)
| |
(47,038
|
)
| |
(47,153
|
)
| |
(56,069
|
)
|
Loans, net
| |
6,934,945
| | |
6,739,949
| | |
6,631,463
| | |
6,484,610
| | |
6,431,824
| |
Goodwill and other intangible assets
| |
709,723
| | |
712,036
| | |
714,803
| | |
718,872
| | |
723,562
| |
Other assets
| |
304,424
|
| |
321,563
|
| |
315,172
|
| |
331,912
|
| |
325,181
|
|
Total assets | | $ | 9,641,261 |
| | $ | 9,371,429 |
| | $ | 9,292,283 |
| | $ | 9,274,880 |
| | $ | 9,273,411 |
|
| | | | | | | | | | | | | | |
|
Liabilities and stockholders' equity | | | | | | | | | | | | | | | |
Noninterest-bearing deposits
| |
$
|
1,381,887
| | |
$
|
1,303,015
| | |
$
|
1,294,131
| | |
$
|
1,268,925
| | |
$
|
1,318,975
| |
Interest-bearing deposits
| |
5,857,319
|
| |
5,749,165
|
| |
5,772,981
|
| |
5,983,759
|
| |
5,866,662
|
|
Total deposits
| |
7,239,206
| | |
7,052,180
| | |
7,067,112
| | |
7,252,684
| | |
7,185,637
| |
Securities sold under agreements to repurchase
| |
190,585
| | |
161,687
| | |
185,620
| | |
204,793
| | |
188,399
| |
FHLB advances and other borrowings
| |
575,085
| | |
575,094
| | |
435,097
| | |
230,100
| | |
340,104
| |
Other liabilities
| |
185,015
|
| |
161,378
|
| |
173,490
|
| |
149,647
|
| |
152,955
|
|
Total liabilities | | 8,189,891 | | | 7,950,339 | | | 7,861,319 | | | 7,837,224 | | | 7,867,095 | |
Stockholders' equity
| |
1,451,370
|
| |
1,421,090
|
| |
1,430,964
|
| |
1,437,656
|
| |
1,406,316
|
|
Total liabilities and stockholders' equity | | $ | 9,641,261 |
| | $ | 9,371,429 |
| | $ | 9,292,283 |
| | $ | 9,274,880 |
| | $ | 9,273,411 |
|
| | | | | | | | | | | | | | | | | | | |
|
|
| | |
| | |
| | |
| | |
GREAT WESTERN BANCORP, INC. | | | | | | | | | | | | |
Loan Portfolio Summary (Unaudited)
| | | | | | | | | | | | |
(Dollars in thousands)
| | | | | | | | | | | | |
| |
|
| |
As of
|
| |
December 31,
| |
September 30,
| |
Change
| |
Change
|
| |
2014
| |
2014
| |
($)
| |
(%)
|
Commercial non-real estate
| |
$
|
1,551,607
| | |
$
|
1,571,640
| | |
$
|
(20,033
|
)
| | |
(1.3
|
)%
|
Agriculture
| |
1,788,028
| | |
1,681,209
| | |
106,819
| | |
6.4
|
%
|
Construction and development
| |
285,366
| | |
314,000
| | |
(28,634
|
)
| | |
(9.1
|
)%
|
Owner-occupied CRE
| |
1,146,670
| | |
1,151,868
| | |
(5,198
|
)
| | |
(0.5
|
)%
|
Non-owner-occupied CRE
| |
1,033,481
| | |
922,395
| | |
111,086
| | |
12.0
|
%
|
Multifamily residential real estate
| |
180,204
|
| |
152,931
|
| |
27,273
|
| |
17.8
|
%
|
Commercial real estate
| |
2,645,721
| | |
2,541,194
| | |
104,527
| | |
4.1
|
%
|
Residential real estate
| |
910,406
| | |
901,605
| | |
8,801
| | |
1.0
|
%
|
Consumer
| |
85,822
| | |
90,086
| | |
(4,264
|
)
| | |
(4.7
|
)%
|
Other1 | |
35,311
|
| |
34,243
|
| |
1,068
|
| |
3.1
|
%
|
Total unpaid principal balance | | 7,016,895 | | | 6,819,977 | | | 196,918 | | | 2.9 | % |
Less: Unamortized discount on acquired loans and unearned net
deferred fees and costs and loans in process
| |
(30,130
|
)
| |
(32,510
|
)
| |
2,380
|
| |
(7.3
|
)%
|
Total loans | | $ | 6,986,765 |
| | $ | 6,787,467 |
| | $ | 199,298 |
| | 2.9 | % |
| | | | | | | | | | | |
|
1 Other loans primarily include consumer and commercial
credit cards and customer deposit account overdrafts.
|
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GREAT WESTERN BANCORP, INC. | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Margin (FTE) (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
For the three months ended
|
| |
December 31, 2014
| |
September 30, 2014
| |
December 31, 2013
|
| |
Average
| |
Interest
| |
Yield /
| |
Average
| |
Interest
| |
Yield /
| |
Average
| |
Interest
| |
Yield /
|
| |
Balance
| |
(FTE)1 | |
Cost2 | |
Balance
| |
(FTE)1 | |
Cost2 | |
Balance
| |
(FTE)1 | |
Cost2 |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks
| |
$
|
442,902
| | |
$
|
284
| | |
0.25
|
%
| |
$
|
80,815
| | |
$
|
56
| | |
0.27
|
%
| |
$
|
280,671
| | |
$
|
184
| | |
0.26
|
%
|
Investment securities
| |
1,336,235
| | |
5,950
| | |
1.77
|
%
| |
1,403,371
| | |
6,408
| | |
1.81
|
%
| |
1,471,895
| | |
7,184
| | |
1.94
|
%
|
Loans, other than loans acquired with deteriorated credit quality,
net
| |
6,626,507
| | |
82,876
| | |
4.96
|
%
| |
6,527,721
| | |
84,292
| | |
5.12
|
%
| |
6,130,898
| | |
80,546
| | |
5.21
|
%
|
Loans acquired with deteriorated credit quality, net
| |
151,044
|
| |
2,972
|
| |
7.81
|
%
| |
169,287
|
| |
1,509
|
| |
3.54
|
%
| |
218,195
|
| |
1,889
|
| |
3.43
|
%
|
Loans, net
| |
6,777,551
|
| |
85,848
|
| |
5.03
|
%
| |
6,697,008
|
| |
85,801
|
| |
5.08
|
%
| |
6,349,093
|
| |
82,435
|
| |
5.15
|
%
|
Total interest-earning assets
| |
8,556,688
| | |
92,082
| | |
4.27
|
%
| |
8,181,194
| | |
92,265
| | |
4.47
|
%
| |
8,101,659
| | |
89,803
| | |
4.40
|
%
|
Noninterest-earning assets
| |
1,109,386
|
| | | | | | | |
1,130,655
|
| | | | | | | |
1,146,345
|
| | | | | | |
Total assets
| |
$
|
9,666,074
|
| |
$
|
92,082
|
| |
3.78
|
%
| |
$
|
9,311,849
|
| |
$
|
92,265
|
| |
3.93
|
%
| |
$
|
9,248,004
|
| |
$
|
89,803
|
| |
3.85
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits
| |
$
|
1,492,262
| | | | | | | | |
$
|
1,266,733
| | | | | | | | |
$
|
1,235,764
| | | | | | | |
NOW, MMDA and savings deposits
| |
4,149,871
| | |
$
|
2,651
| | |
0.25
|
%
| |
3,980,578
| | |
$
|
2,387
| | |
0.24
|
%
| |
3,806,620
| | |
$
|
2,248
| | |
0.23
|
%
|
CDs
| |
1,683,865
|
| |
3,364
|
| |
0.79
|
%
| |
1,779,503
|
| |
3,749
|
| |
0.84
|
%
| |
2,057,041
|
| |
4,631
|
| |
0.89
|
%
|
Total deposits
| |
7,325,998
| | |
6,015
| | |
0.33
|
%
| |
7,026,814
| | |
6,136
| | |
0.35
|
%
| |
7,099,425
| | |
6,879
| | |
0.38
|
%
|
Securities sold under agreements to repurchase
| |
167,835
| | |
146
| | |
0.35
|
%
| |
186,477
| | |
158
| | |
0.34
|
%
| |
204,081
| | |
146
| | |
0.28
|
%
|
FHLB advances and other borrowings
| |
566,486
| | |
946
| | |
0.66
|
%
| |
490,455
| | |
860
| | |
0.70
|
%
| |
363,490
| | |
1,037
| | |
1.13
|
%
|
Related party notes payable
| |
41,295
| | |
232
| | |
2.23
|
%
| |
41,295
| | |
231
| | |
2.22
|
%
| |
41,295
| | |
234
| | |
2.25
|
%
|
Subordinated debentures and other
| |
56,083
|
| |
330
|
| |
2.33
|
%
| |
56,083
|
| |
330
|
| |
2.33
|
%
| |
56,083
|
| |
334
|
| |
2.36
|
%
|
Total borrowings
| |
831,699
|
| |
1,654
|
| |
0.79
|
%
| |
774,310
|
| |
1,579
|
| |
0.81
|
%
| |
664,949
|
| |
1,751
|
| |
1.04
|
%
|
Total interest-bearing liabilities
| |
8,157,697
| | |
$
|
7,669
| | |
0.37
|
%
| |
7,801,124
| | |
$
|
7,715
| | |
0.39
|
%
| |
7,764,374
| | |
$
|
8,630
| | |
0.44
|
%
|
Noninterest-bearing liabilities
| |
74,540
| | | | | | | | |
71,608
| | | | | | | | |
61,606
| | | | | | | |
Stockholders' equity
| |
1,433,837
|
| | | | | | | |
1,439,117
|
| | | | | | | |
1,422,024
|
| | | | | | |
Total liabilities and stockholders' equity
| |
$
|
9,666,074
|
| | | | | | | |
$
|
9,311,849
|
| | | | | | | |
$
|
9,248,004
|
| | | | | | |
Net interest spread
| | | | | | | |
3.41
|
%
| | | | | | | |
3.54
|
%
| | | | | | | |
3.41
|
%
|
Net interest income and net interest margin (FTE)1 | | | | |
$
|
84,413
|
| |
3.91
|
%
| | | | |
$
|
84,550
|
| |
4.10
|
%
| | | | |
$
|
81,173
|
| |
3.98
|
%
|
Less: Tax equivalent adjustment
| | | | |
1,504
|
| | | | | | | |
1,324
|
| | | | | | | |
1,032
|
| | | |
Net interest income and net interest margin - ties to Statements
of Comprehensive Income
| | | | |
$
|
82,909
|
| |
3.84
|
%
| | | | |
$
|
83,226
|
| |
4.04
|
%
| | | | |
$
|
80,141
|
| |
3.92
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
NOTE: The amount of interest income and yield on loans other than
loans acquired with deteriorated credit quality and net interest
income and net interest margin differ from previous disclosures due
to the changes noted in "Presentation of Results for Loans at Fair
Value and Related Derivatives" and the change to presenting these
measures on a fully-tax equivalent basis.
|
|
1 These are non-GAAP financial measures we believe are
helpful to interpreting our financial results. See the table at the
end of this document for the calculation of the measures and
reconciliation to the most comparable GAAP measure.
|
|
2 Annualized for all partial-year periods.
|
|
Non-GAAP Measures and Reconciliation
We rely on certain non-GAAP measures in making financial and operational
decisions about our business. We believe that each of the non-GAAP
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. generally accepted accounting principles, or GAAP.
In particular, we evaluate our profitability and performance based on
our cash net income and return on average tangible common equity, each
of which excludes the effects of amortization expense relating to
intangible assets and related tax effects from the acquisition of us by
National Australia Bank Limited 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 based on our cash payments and receipts
during the applicable period.
We also evaluate our profitability and performance based on our adjusted
net interest income, adjusted net interest margin, adjusted interest
income on loans other than loans acquired with deteriorated credit
quality and adjusted yield on loans other than loans acquired with
deteriorated credit quality. 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. 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.
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 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)
| | | | | | | | | | | | | | | |
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| |
|
| |
For the three months ended
|
| |
December 31,
| |
September 30,
| |
June 30,
| |
March 31,
| |
December 31,
|
| |
2014
| |
2014
| |
2014
| |
2014
| |
2013
|
Cash net income and return on average tangible common equity: | | | | | | | | | | | | | | | |
Net income
| |
$
|
26,697
| | |
$
|
27,875
| | |
$
|
22,503
| | |
$
|
25,970
| | |
$
|
28,604
| |
Add: Amortization of intangible assets
| |
2,313
| | |
2,768
| | |
4,069
| | |
4,690
| | |
4,688
| |
Add: Tax on amortization of intangible assets
| |
(220
|
)
| |
(811
|
)
| |
(811
|
)
| |
(811
|
)
| |
(811
|
)
|
Cash net income
| |
$
|
28,790
|
| |
$
|
29,832
|
| |
$
|
25,761
|
| |
$
|
29,849
|
| |
$
|
32,481
|
|
| | | | | | | | | | | | | | |
|
Average common equity
| |
$
|
1,433,837
| | |
$
|
1,438,962
| | |
$
|
1,445,097
| | |
$
|
1,420,933
| | |
$
|
1,422,024
| |
Less: Average goodwill and other intangible assets
| |
711,088
|
| |
713,462
|
| |
717,104
|
| |
721,529
|
| |
726,208
|
|
Average tangible common equity
| |
$
|
722,749
|
| |
$
|
725,500
|
| |
$
|
727,993
|
| |
$
|
699,404
|
| |
$
|
695,816
|
|
Return on average common equity
| |
7.39
|
%
| |
7.69
|
%
| |
6.25
|
%
| |
7.41
|
%
| |
7.98
|
%
|
Return on average tangible common equity *
| |
15.8
|
%
| |
16.3
|
%
| |
14.2
|
%
| |
17.3
|
%
| |
18.5
|
%
|
| | | | | | | | | | | | | | |
|
* Calculated as cash net income divided by average tangible common
equity. Annualized for quarterly periods.
|
| | | | | | | | | | | | | | |
|
Adjusted net interest income and adjusted net interest margin
(fully-tax equivalent basis): | | | | | | | | | | | | | | | |
Net interest income
| |
$
|
82,909
| | |
$
|
83,226
| | |
$
|
80,100
| | |
$
|
76,957
| | |
$
|
80,141
| |
Add: Tax equivalent adjustment
| |
1,504
|
| |
1,324
|
| |
1,199
|
| |
1,108
|
| |
1,032
|
|
Net interest income (FTE)
| |
84,413
| | |
84,550
| | |
81,299
| | |
78,065
| | |
81,173
| |
Add: Current realized derivative gain (loss)
| |
(5,282
|
)
| |
(4,978
|
)
| |
(4,600
|
)
| |
(4,389
|
)
| |
(4,288
|
)
|
Adjusted net interest income (FTE)
| |
$
|
79,131
|
| |
$
|
79,572
|
| |
$
|
76,699
|
| |
$
|
73,676
|
| |
$
|
76,885
|
|
| | | | | | | | | | | | | | |
|
Average interest earning assets
| |
$
|
8,556,688
| | |
$
|
8,181,194
| | |
$
|
8,098,052
| | |
$
|
8,001,112
| | |
$
|
8,101,659
| |
Net interest margin (FTE) *
| |
3.91
|
%
| |
4.10
|
%
| |
4.03
|
%
| |
3.96
|
%
| |
3.98
|
%
|
Adjusted net interest margin (FTE) **
| |
3.67
|
%
| |
3.86
|
%
| |
3.80
|
%
| |
3.73
|
%
| |
3.77
|
%
|
| | | | | | | | | | | | | | |
|
* Calculated as net interest income (FTE) divided by average
interest earning assets. Annualized for quarterly periods.
|
** Calculated as adjusted net interest income (FTE) divided by
average interest earning assets. Annualized for quarterly periods.
|
| | | | | | | | | | | | | | |
|
Adjusted interest income and adjusted yield (fully-tax equivalent
basis), on loans other than loans acquired with deteriorated credit
quality: | | | | | | | | | | | | | | | |
Interest income
| |
$
|
81,372
| | |
$
|
82,968
| | |
$
|
79,245
| | |
$
|
77,048
| | |
$
|
79,514
| |
Add: Tax equivalent adjustment
| |
1,504
|
| |
1,324
|
| |
1,199
|
| |
1,108
|
| |
1,032
|
|
Interest income (FTE)
| |
82,876
| | |
84,292
| | |
80,444
| | |
78,156
| | |
80,546
| |
Add: Current realized derivative gain (loss)
| |
(5,282
|
)
| |
(4,978
|
)
| |
(4,600
|
)
| |
(4,389
|
)
| |
(4,288
|
)
|
Adjusted interest income (FTE)
| |
$
|
77,594
|
| |
$
|
79,314
|
| |
$
|
75,844
|
| |
$
|
73,767
|
| |
$
|
76,258
|
|
| | | | | | | | | | | | | | |
|
Average loans other than loans acquired with deteriorated credit
quality
| |
$
|
6,626,507
| | |
$
|
6,527,721
| | |
$
|
6,362,850
| | |
$
|
6,224,179
| | |
$
|
6,130,898
| |
Yield (FTE) *
| |
4.96
|
%
| |
5.12
|
%
| |
5.07
|
%
| |
5.09
|
%
| |
5.21
|
%
|
Adjusted yield (FTE) **
| |
4.65
|
%
| |
4.82
|
%
| |
4.78
|
%
| |
4.81
|
%
| |
4.93
|
%
|
| | | | | | | | | | | | | | |
|
* Calculated as interest income (FTE) divided by average loans.
Annualized for quarterly periods.
|
** Calculated as adjusted interest income (FTE) divided by average
loans. Annualized for quarterly periods.
|
| | | | | | | | | | | | | | |
|
Efficiency ratio: | | | | | | | | | | | | | | | |
Total revenue
| |
$
|
90,809
| | |
$
|
91,727
| | |
$
|
90,414
| | |
$
|
87,097
| | |
$
|
90,967
| |
Add: Tax equivalent adjustment
| |
1,504
|
| |
1,324
|
| |
1,199
|
| |
1,108
|
| |
1,032
|
|
Total revenue (FTE)
| |
$
|
92,313
|
| |
$
|
93,051
|
| |
$
|
91,613
|
| |
$
|
88,205
|
| |
$
|
91,999
|
|
| | | | | | | | | | | | | | |
|
Noninterest expense
| |
$
|
47,092
| | |
$
|
48,318
| | |
$
|
54,279
| | |
$
|
49,326
| | |
$
|
48,299
| |
Less: Amortization of intangible assets
| |
2,313
|
| |
2,768
|
| |
4,069
|
| |
4,690
|
| |
4,688
|
|
Tangible noninterest expense
| |
$
|
44,779
|
| |
$
|
45,550
|
| |
$
|
50,210
|
| |
$
|
44,636
|
| |
$
|
43,611
|
|
Efficiency ratio *
| |
48.5
|
%
| |
49.0
|
%
| |
54.8
|
%
| |
50.6
|
%
| |
47.4
|
%
|
| | | | | | | | | | | | | | |
|
* 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
| |
$
|
1,451,370
| | |
$
|
1,421,090
| | |
$
|
1,430,964
| | |
$
|
1,437,656
| | |
$
|
1,406,316
| |
Less: Goodwill and other intangible assets
| |
709,723
|
| |
712,036
|
| |
714,803
|
| |
718,872
|
| |
723,562
|
|
Tangible common equity
| |
$
|
741,647
|
| |
$
|
709,054
|
| |
$
|
716,161
|
| |
$
|
718,784
|
| |
$
|
682,754
|
|
| | | | | | | | | | | | | | |
|
Total assets
| |
$
|
9,641,261
| | |
$
|
9,371,429
| | |
$
|
9,292,283
| | |
$
|
9,274,880
| | |
$
|
9,273,411
| |
Less: Goodwill and other intangible assets
| |
709,723
|
| |
712,036
|
| |
714,803
|
| |
718,872
|
| |
723,562
|
|
Tangible assets
| |
$
|
8,931,538
|
| |
$
|
8,659,393
|
| |
$
|
8,577,480
|
| |
$
|
8,556,008
|
| |
$
|
8,549,849
|
|
Tangible common equity to tangible assets
| |
8.3
|
%
| |
8.2
|
%
| |
8.3
|
%
| |
8.4
|
%
| |
8.0
|
%
|
| | | | | | | | | | | | | | |
|
Contacts:
Great Western Bancorp, Inc.
Media Contact:
Cheryl
Olson, 605-336-5681
Cheryl.Olson@GreatWesternBank.com
Source: Great Western Bancorp, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.