001-36688 | 47-1308512 | |
(Commission File Number) | (IRS Employer Identification No.) | |
225 South Main Avenue | ||
Sioux Falls, South Dakota | 57104 | |
(Address of Principal Executive Offices) | (Zip Code) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit No. | Description |
99.1 | Press release of Great Western dated October 26, 2017, containing financial information for the quarter ended September 30, 2017. |
99.2 | Slide presentation for conference call for investors and analysts on October 26, 2017. |
99.3 | Quarterly Investor Relations Presentation for the fourth quarter of fiscal year 2017. |
GREAT WESTERN BANCORP, INC. | |
Date: October 26, 2017 | By: /s/ Peter Chapman |
Name: Peter Chapman | |
Title: Chief Financial Officer and Executive Vice President |
Exhibit No. | Description |
Press release of the registrant dated October 26, 2017, containing financial information for the quarter ended September 30, 2017. | |
Slide presentation for conference call for investors and analysts on October 26, 2017. | |
Quarterly Investor Relations Presentation for the fourth quarter of fiscal year 2017. |
• | Fourth quarter net income was $37.7 million, or $0.64 per diluted share, compared to $33.8 million, or $0.57 per diluted share, for the same period in fiscal year 2016, an 11.6% increase |
• | Net income for fiscal year 2017 was $144.8 million, or $2.45 per diluted share, compared to $121.3 million, or $2.14 per diluted share for fiscal year 2016, a 14.5% increase |
• | Net interest margin and adjusted net interest margin1, 2 were 4.00% and 3.90%, respectively, for the fourth quarter of fiscal year 2017 compared to 4.00% and 3.87%, respectively, for the prior quarter |
• | The efficiency ratio1 remains attractive at 47.1% for the quarter compared to 46.7% |
• | Approximately 200 thousand shares of common stock were repurchased and retired during the quarter under the authorized stock repurchase program |
• | Total loans grew $176.7 million, or 2.0%, during the fourth quarter of fiscal year 2017 |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||
Summary of Credit-Related Charges (Unaudited) | ||||||||||||||||
For the twelve months ended: | For the three months ended: | |||||||||||||||
Item | Included within F/S Line Item(s): | September 30, 2017 | September 30, 2016 | September 30, 2017 | June 30, 2017 | |||||||||||
(dollars in thousands) | ||||||||||||||||
Provision for loan and lease losses | Provision for loan and lease losses | $ | 21,539 | $ | 16,955 | $ | 4,685 | $ | 5,796 | |||||||
Net OREO charges | Net loss on repossessed property and other related expenses | 1,749 | 1,263 | 541 | 152 | |||||||||||
Reversal of interest income on nonaccrual loans | Interest income on loans | 930 | 1,433 | 697 | 332 | |||||||||||
Loan fair value adjustment related to credit | Net increase (decrease) in fair value of loans at fair value | 936 | 1,618 | 940 | (293 | ) | ||||||||||
Total | $ | 25,154 | $ | 21,269 | $ | 6,863 | $ | 5,987 |
• | Net interest income for fiscal year 2017 was $404.9 million, an increase of $35.2 million, or 9.5%. The increase was primarily attributable to higher loan interest income driven by 10.8% growth in average loans outstanding between the periods combined with a 5 basis point increase in the yield on total loans, partially offset by an 8 basis point increase in the cost of deposits. |
• | Customer loan balances increased by $350.2 million, or 4.1%, during fiscal year 2017. The net fiscal year-to-date growth was primarily driven by $370.7 million of CRE loan growth and more modest C&I growth, partially offset by reductions in residential real estate and agriculture loans. |
• | Average total deposit growth was $897.0 million, or 11.3% for fiscal year 2017. Average noninterest-bearing deposits were $1.81 billion while interest-bearing deposits averaged $7.01 billion for the same period. Total deposit balances for fiscal year 2017 increased by $372.8 million, or 4.3%. |
• | Provision for loan and lease losses was $21.5 million for fiscal year 2017, an increase of $4.6 million, or 27.0%. Net charge-offs for fiscal year 2017 were $22.7 million, or 26 basis points of average total loans, an increase of $13.2 million, or 14 basis points of average total loans, driving the majority of the increase in provision for loan and lease losses. Net charge-offs were primarily concentrated in the C&I and agriculture loan portfolios. |
• | Asset quality metrics remained stable as loans graded "Watch" decreased $16.0 million, or 4.9% to $311.6 million while loans graded "Substandard" decreased $8.8 million, or 3.6% to $232.8 million and total nonaccrual loans increased by $11.9 million, or 9.4% to $138.3 million at September 30, 2017. |
• | Noninterest income for fiscal year 2017 was $56.1 million, an increase of $13.5 million, or 31.8%. Of this movement, $7.0 million is attributable to the net effect of the change in fair value of 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. The remaining $6.5 million increase in noninterest income was primarily due to a $2.4 million increase in service charges and other fees, a $1.8 million increase in wealth management fees and a $1.7 million increase in other income. |
• | Noninterest expense for fiscal year 2017 was $216.6 million, an increase of $9.0 million, or 4.3%. The increase was due to a $19.1 million increase in salaries and employee benefits, a $2.8 million increase in data processing, a $1.5 million increase in professional fees, partially offset by a $15.0 million decrease in acquisition expenses. |
• | The efficiency ratio1 was 46.5% for fiscal year 2017, compared to 49.6%, with a large portion of the decrease driven by the absence of one-time acquisition costs in fiscal year 2017. |
• | The effective tax rate for fiscal years 2017 and 2016 was 32.4% and 32.7%, respectively. |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||||
Consolidated Financial Data (Unaudited) | ||||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | |||||||||||||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||
(dollars in thousands except share and per share amounts) | ||||||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||||
Interest and dividend income (FTE) | $ | 450,266 | $ | 403,232 | $ | 117,089 | $ | 112,555 | $ | 110,075 | $ | 110,548 | $ | 109,730 | ||||||||||||||
Interest expense | 45,320 | 33,524 | 13,391 | 11,671 | 10,494 | 9,764 | 9,491 | |||||||||||||||||||||
Noninterest income | 56,062 | 42,537 | 12,836 | 15,485 | 13,834 | 13,907 | 15,798 | |||||||||||||||||||||
Noninterest expense | 216,643 | 207,640 | 55,332 | 54,922 | 53,852 | 52,537 | 57,342 | |||||||||||||||||||||
Provision for loan and lease losses | 21,539 | 16,955 | 4,685 | 5,796 | 4,009 | 7,049 | 5,063 | |||||||||||||||||||||
Net income | 144,786 | 121,253 | 37,662 | 35,060 | 35,162 | 36,903 | 33,758 | |||||||||||||||||||||
Adjusted net income 1 | $ | 145,226 | $ | 130,982 | $ | 37,662 | $ | 35,060 | $ | 35,162 | $ | 37,343 | $ | 35,458 | ||||||||||||||
Common shares outstanding | 58,834,066 | 58,693,304 | 58,834,066 | 58,761,597 | 58,760,517 | 58,755,989 | 58,693,304 | |||||||||||||||||||||
Weighted average diluted common shares outstanding | 59,029,382 | 56,729,350 | 58,914,144 | 59,130,632 | 59,073,669 | 58,991,905 | 58,938,367 | |||||||||||||||||||||
Earnings per common share - diluted | $ | 2.45 | $ | 2.14 | $ | 0.64 | $ | 0.59 | $ | 0.60 | $ | 0.63 | $ | 0.57 | ||||||||||||||
Adjusted earnings per common share - diluted 1 | $ | 2.46 | $ | 2.31 | $ | 0.64 | $ | 0.59 | $ | 0.60 | $ | 0.63 | $ | 0.60 | ||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Net interest margin (FTE) 2 | 3.97 | % | 3.96 | % | 4.00 | % | 4.00 | % | 3.98 | % | 3.89 | % | 3.92 | % | ||||||||||||||
Adjusted net interest margin (FTE) 1 2 | 3.83 | % | 3.74 | % | 3.90 | % | 3.87 | % | 3.83 | % | 3.71 | % | 3.73 | % | ||||||||||||||
Return on average total assets 2 | 1.27 | % | 1.16 | % | 1.30 | % | 1.25 | % | 1.26 | % | 1.28 | % | 1.19 | % | ||||||||||||||
Return on average common equity 2 | 8.5 | % | 7.9 | % | 8.6 | % | 8.2 | % | 8.5 | % | 8.8 | % | 8.2 | % | ||||||||||||||
Return on average tangible common equity 1 2 | 15.4 | % | 15.1 | % | 15.2 | % | 14.8 | % | 15.4 | % | 16.3 | % | 15.3 | % | ||||||||||||||
Efficiency ratio 1 | 46.5 | % | 49.6 | % | 47.1 | % | 46.7 | % | 47.0 | % | 45.1 | % | 48.5 | % | ||||||||||||||
Capital: | ||||||||||||||||||||||||||||
Tier 1 capital ratio | 11.4 | % | 11.1 | % | 11.4 | % | 11.5 | % | 11.6 | % | 11.2 | % | 11.1 | % | ||||||||||||||
Total capital ratio | 12.5 | % | 12.2 | % | 12.5 | % | 12.6 | % | 12.7 | % | 12.3 | % | 12.2 | % | ||||||||||||||
Tier 1 leverage ratio | 10.3 | % | 9.5 | % | 10.3 | % | 10.3 | % | 10.0 | % | 9.7 | % | 9.5 | % | ||||||||||||||
Common equity tier 1 ratio | 10.7 | % | 10.2 | % | 10.7 | % | 10.7 | % | 10.8 | % | 10.4 | % | 10.2 | % | ||||||||||||||
Tangible common equity / tangible assets1 | 9.2 | % | 8.5 | % | 9.2 | % | 9.2 | % | 9.0 | % | 8.7 | % | 8.5 | % | ||||||||||||||
Book value per share - GAAP | $ | 29.83 | $ | 28.34 | $ | 29.83 | $ | 29.49 | $ | 29.05 | $ | 28.57 | $ | 28.34 | ||||||||||||||
Tangible book value per share1 | $ | 17.11 | $ | 15.55 | $ | 17.11 | $ | 16.75 | $ | 16.29 | $ | 15.81 | $ | 15.55 | ||||||||||||||
Asset Quality: | ||||||||||||||||||||||||||||
Nonaccrual loans | $ | 138,312 | $ | 126,395 | $ | 138,312 | $ | 123,641 | $ | 127,675 | $ | 124,178 | $ | 126,395 | ||||||||||||||
OREO | $ | 8,985 | $ | 10,282 | $ | 8,985 | $ | 9,051 | $ | 6,994 | $ | 8,093 | $ | 10,282 | ||||||||||||||
Nonaccrual loans / total loans | 1.54 | % | 1.46 | % | 1.54 | % | 1.41 | % | 1.47 | % | 1.41 | % | 1.46 | % | ||||||||||||||
Net charge-offs (recoveries) | $ | 22,678 | $ | 9,513 | $ | 5,394 | $ | 4,267 | $ | 8,091 | $ | 4,924 | $ | 4,654 | ||||||||||||||
Net charge-offs (recoveries) / average total loans 2 | 0.26 | % | 0.12 | % | 0.24 | % | 0.20 | % | 0.38 | % | 0.22 | % | 0.21 | % | ||||||||||||||
Allowance for loan and lease losses / total loans | 0.71 | % | 0.74 | % | 0.71 | % | 0.73 | % | 0.72 | % | 0.76 | % | 0.74 | % | ||||||||||||||
Watch-rated loans | $ | 311,611 | $ | 327,608 | $ | 311,611 | $ | 298,963 | $ | 324,457 | $ | 334,673 | $ | 327,608 | ||||||||||||||
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 or for the twelve months ended: | At or for the three months ended: | |||||||||||||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||
Loans | $ | 414,434 | $ | 370,444 | $ | 108,181 | $ | 103,435 | $ | 101,136 | $ | 101,683 | $ | 101,307 | ||||||||||||||
Taxable securities | 24,262 | 23,249 | 6,092 | 6,238 | 6,055 | 5,878 | 5,649 | |||||||||||||||||||||
Nontaxable securities | 978 | 230 | 268 | 269 | 241 | 199 | 145 | |||||||||||||||||||||
Dividends on securities | 1,071 | 1,201 | 232 | 296 | 242 | 300 | 369 | |||||||||||||||||||||
Federal funds sold and other | 922 | 574 | 194 | 163 | 219 | 346 | 248 | |||||||||||||||||||||
Total interest and dividend income | 441,667 | 395,698 | 114,967 | 110,401 | 107,893 | 108,406 | 107,718 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 35,035 | 25,114 | 10,439 | 9,478 | 7,829 | 7,290 | 6,968 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 384 | 519 | 85 | 86 | 98 | 115 | 125 | |||||||||||||||||||||
FHLB advances and other borrowings | 5,437 | 4,154 | 1,702 | 994 | 1,469 | 1,271 | 1,323 | |||||||||||||||||||||
Subordinated debentures and subordinated notes payable | 4,464 | 3,737 | 1,165 | 1,113 | 1,098 | 1,088 | 1,075 | |||||||||||||||||||||
Total interest expense | 45,320 | 33,524 | 13,391 | 11,671 | 10,494 | 9,764 | 9,491 | |||||||||||||||||||||
Net interest income | 396,347 | 362,174 | 101,576 | 98,730 | 97,399 | 98,642 | 98,227 | |||||||||||||||||||||
Provision for loan and lease losses | 21,539 | 16,955 | 4,685 | 5,796 | 4,009 | 7,049 | 5,063 | |||||||||||||||||||||
Net interest income after provision for loan and lease losses | 374,808 | 345,219 | 96,891 | 92,934 | 93,390 | 91,593 | 93,164 | |||||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||||
Service charges and other fees | 48,573 | 46,209 | 11,838 | 12,730 | 11,919 | 12,086 | 13,111 | |||||||||||||||||||||
Wealth management fees | 9,118 | 7,283 | 2,002 | 2,433 | 2,429 | 2,254 | 2,196 | |||||||||||||||||||||
Mortgage banking income, net | 7,928 | 7,261 | 1,798 | 1,828 | 1,640 | 2,662 | 3,119 | |||||||||||||||||||||
Net gain (loss) on sale of securities | 75 | 160 | 32 | — | 44 | — | 356 | |||||||||||||||||||||
Net increase (decrease) in fair value of loans at fair value | (65,231 | ) | 26,314 | (2,073 | ) | 6,060 | (5,216 | ) | (64,001 | ) | (8,939 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on derivatives | 49,900 | (48,658 | ) | (1,581 | ) | (9,088 | ) | 1,592 | 58,976 | 4,721 | ||||||||||||||||||
Other | 5,699 | 3,968 | 820 | 1,522 | 1,426 | 1,930 | 1,234 | |||||||||||||||||||||
Total noninterest income | 56,062 | 42,537 | 12,836 | 15,485 | 13,834 | 13,907 | 15,798 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Salaries and employee benefits | 128,135 | 109,055 | 31,263 | 32,868 | 32,370 | 31,634 | 30,638 | |||||||||||||||||||||
Data processing | 24,514 | 21,719 | 6,494 | 6,378 | 5,965 | 5,677 | 5,896 | |||||||||||||||||||||
Occupancy expenses | 16,470 | 15,759 | 4,033 | 4,057 | 4,355 | 4,024 | 4,323 | |||||||||||||||||||||
Professional fees | 15,038 | 13,572 | 4,503 | 4,141 | 3,559 | 2,835 | 4,485 | |||||||||||||||||||||
Communication expenses | 3,774 | 3,721 | 830 | 992 | 914 | 1,040 | 1,072 | |||||||||||||||||||||
Advertising | 3,983 | 4,267 | 954 | 1,059 | 995 | 975 | 1,252 | |||||||||||||||||||||
Equipment expenses | 3,347 | 3,795 | 973 | 809 | 768 | 798 | 1,001 | |||||||||||||||||||||
Net loss (gain) on repossessed property and other related expenses | 1,749 | 1,263 | 541 | 152 | 397 | 658 | 784 | |||||||||||||||||||||
Amortization of core deposits and other intangibles | 2,358 | 3,264 | 430 | 538 | 550 | 839 | 1,024 | |||||||||||||||||||||
Acquisition expenses | 710 | 15,692 | — | — | — | 710 | 2,742 | |||||||||||||||||||||
Other | 16,565 | 15,533 | 5,311 | 3,928 | 3,979 | 3,347 | 4,125 | |||||||||||||||||||||
Total noninterest expense | 216,643 | 207,640 | 55,332 | 54,922 | 53,852 | 52,537 | 57,342 | |||||||||||||||||||||
Income before income taxes | 214,227 | 180,116 | 54,395 | 53,497 | 53,372 | 52,963 | 51,620 | |||||||||||||||||||||
Provision for income taxes | 69,441 | 58,863 | 16,733 | 18,437 | 18,210 | 16,060 | 17,862 | |||||||||||||||||||||
Net income | $ | 144,786 | $ | 121,253 | $ | 37,662 | $ | 35,060 | $ | 35,162 | $ | 36,903 | $ | 33,758 |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||
Summarized Consolidated Balance Sheet (Unaudited) | |||||||||||||||||||
As of | |||||||||||||||||||
September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 360,396 | $ | 327,901 | $ | 335,929 | $ | 270,168 | $ | 524,611 | |||||||||
Securities | 1,367,960 | 1,366,442 | 1,350,893 | 1,371,558 | 1,315,860 | ||||||||||||||
Total loans | 8,968,553 | 8,791,852 | 8,697,426 | 8,779,107 | 8,682,644 | ||||||||||||||
Allowance for loan and lease losses | (63,503 | ) | (64,214 | ) | (62,685 | ) | (66,767 | ) | (64,642 | ) | |||||||||
Loans, net | 8,905,050 | 8,727,638 | 8,634,741 | 8,712,340 | 8,618,002 | ||||||||||||||
Goodwill and other intangible assets | 748,397 | 748,828 | 749,366 | 749,916 | 750,755 | ||||||||||||||
Other assets | 308,208 | 295,375 | 285,912 | 318,635 | 321,952 | ||||||||||||||
Total assets | $ | 11,690,011 | $ | 11,466,184 | $ | 11,356,841 | $ | 11,422,617 | $ | 11,531,180 | |||||||||
Liabilities and stockholders' equity | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,856,126 | $ | 1,915,560 | $ | 2,026,627 | $ | 1,954,881 | $ | 1,880,512 | |||||||||
Interest-bearing deposits | 7,121,487 | 7,043,542 | 7,065,291 | 6,751,366 | 6,724,278 | ||||||||||||||
Total deposits | 8,977,613 | 8,959,102 | 9,091,918 | 8,706,247 | 8,604,790 | ||||||||||||||
Securities sold under agreements to repurchase | 132,636 | 123,851 | 124,472 | 142,741 | 141,688 | ||||||||||||||
FHLB advances and other borrowings | 644,214 | 471,719 | 264,624 | 711,029 | 871,037 | ||||||||||||||
Other liabilities | 180,548 | 178,529 | 168,966 | 183,962 | 250,274 | ||||||||||||||
Total liabilities | 9,935,011 | 9,733,201 | 9,649,980 | 9,743,979 | 9,867,789 | ||||||||||||||
Stockholders' equity | 1,755,000 | 1,732,983 | 1,706,861 | 1,678,638 | 1,663,391 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 11,690,011 | $ | 11,466,184 | $ | 11,356,841 | $ | 11,422,617 | $ | 11,531,180 |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Loan Portfolio Summary (Unaudited) | ||||||||||||||||||||||||||
As of | Fiscal year-to-date: | |||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | Change ($) | Change (%) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Construction and development | $ | 538,736 | $ | 490,025 | $ | 450,419 | $ | 423,864 | $ | 469,968 | $ | 68,768 | 14.6 | % | ||||||||||||
Owner-occupied CRE | 1,219,523 | 1,232,488 | 1,191,348 | 1,197,253 | 1,167,265 | 52,258 | 4.5 | % | ||||||||||||||||||
Non-owner-occupied CRE | 2,025,326 | 1,881,726 | 1,754,631 | 1,775,107 | 1,678,007 | 347,319 | 20.7 | % | ||||||||||||||||||
Multifamily residential real estate | 341,220 | 361,360 | 454,437 | 455,880 | 438,867 | (97,647 | ) | (22.2 | )% | |||||||||||||||||
Commercial real estate | 4,124,805 | 3,965,599 | 3,850,835 | 3,852,104 | 3,754,107 | 370,698 | 9.9 | % | ||||||||||||||||||
Agriculture | 2,122,138 | 2,087,113 | 2,114,287 | 2,206,263 | 2,168,937 | (46,799 | ) | (2.2 | )% | |||||||||||||||||
Commercial non-real estate | 1,718,914 | 1,715,630 | 1,690,149 | 1,643,986 | 1,673,166 | 45,748 | 2.7 | % | ||||||||||||||||||
Residential real estate | 932,892 | 953,340 | 971,374 | 1,008,325 | 1,020,958 | (88,066 | ) | (8.6 | )% | |||||||||||||||||
Consumer | 66,559 | 70,028 | 74,718 | 71,795 | 76,273 | (9,714 | ) | (12.7 | )% | |||||||||||||||||
Other 1 | 43,207 | 44,111 | 39,976 | 47,569 | 42,477 | 730 | 1.7 | % | ||||||||||||||||||
Total unpaid principal balance | 9,008,515 | 8,835,821 | 8,741,339 | 8,830,042 | 8,735,918 | 272,597 | 3.1 | % | ||||||||||||||||||
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process | (39,962 | ) | (43,969 | ) | (43,913 | ) | (50,935 | ) | (53,274 | ) | 13,312 | (25.0 | )% | |||||||||||||
Total loans | $ | 8,968,553 | $ | 8,791,852 | $ | 8,697,426 | $ | 8,779,107 | $ | 8,682,644 | $ | 285,909 | 3.3 | % | ||||||||||||
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) | ||||||||||||||||||||||||||||||||
For the three months ended: | ||||||||||||||||||||||||||||||||
September 30, 2017 | June 30, 2017 | September 30, 2016 | ||||||||||||||||||||||||||||||
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 | $ | 55,834 | $ | 194 | 1.38 | % | $ | 62,187 | $ | 163 | 1.05 | % | $ | 183,985 | $ | 248 | 0.54 | % | ||||||||||||||
Investment securities | 1,403,240 | 6,592 | 1.86 | % | 1,398,370 | 6,803 | 1.95 | % | 1,379,971 | 6,163 | 1.78 | % | ||||||||||||||||||||
Non ASC 310-30 loans, net 2 | 8,728,514 | 107,024 | 4.86 | % | 8,550,349 | 102,720 | 4.82 | % | 8,477,214 | 101,070 | 4.74 | % | ||||||||||||||||||||
ASC 310-30 loans, net | 95,813 | 3,279 | 13.58 | % | 113,498 | 2,869 | 10.14 | % | 132,573 | 2,249 | 6.75 | % | ||||||||||||||||||||
Loans, net | 8,824,327 | 110,303 | 4.96 | % | 8,663,847 | 105,589 | 4.89 | % | 8,609,787 | 103,319 | 4.77 | % | ||||||||||||||||||||
Total interest-earning assets | 10,283,401 | 117,089 | 4.52 | % | 10,124,404 | 112,555 | 4.46 | % | 10,173,743 | 109,730 | 4.29 | % | ||||||||||||||||||||
Noninterest-earning assets | 1,166,931 | 1,154,295 | 1,152,995 | |||||||||||||||||||||||||||||
Total assets | $ | 11,450,332 | $ | 117,089 | 4.06 | % | $ | 11,278,699 | $ | 112,555 | 4.00 | % | $ | 11,326,738 | $ | 109,730 | 3.85 | % | ||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,793,321 | $ | 1,815,407 | $ | 1,710,901 | ||||||||||||||||||||||||||
NOW, money market and savings deposits | 5,817,665 | $ | 7,909 | 0.54 | % | 5,849,998 | $ | 7,172 | 0.49 | % | 5,405,798 | $ | 4,709 | 0.35 | % | |||||||||||||||||
CDs | 1,280,226 | 2,530 | 0.78 | % | 1,289,402 | 2,306 | 0.72 | % | 1,402,427 | 2,259 | 0.64 | % | ||||||||||||||||||||
Total deposits | 8,891,212 | 10,439 | 0.47 | % | 8,954,807 | 9,478 | 0.42 | % | 8,519,126 | 6,968 | 0.33 | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | 116,004 | 85 | 0.29 | % | 118,373 | 86 | 0.29 | % | 152,412 | 125 | 0.33 | % | ||||||||||||||||||||
FHLB advances and other borrowings | 509,959 | 1,702 | 1.32 | % | 303,846 | 994 | 1.31 | % | 749,122 | 1,323 | 0.70 | % | ||||||||||||||||||||
Subordinated debentures and subordinated notes payable | 108,275 | 1,165 | 4.27 | % | 108,234 | 1,113 | 4.13 | % | 111,840 | 1,075 | 3.82 | % | ||||||||||||||||||||
Total borrowings | 734,238 | 2,952 | 1.60 | % | 530,453 | 2,193 | 1.66 | % | 1,013,374 | 2,523 | 0.99 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 9,625,450 | $ | 13,391 | 0.55 | % | 9,485,260 | $ | 11,671 | 0.49 | % | 9,532,500 | $ | 9,491 | 0.39 | % | |||||||||||||||||
Noninterest-bearing liabilities | 84,453 | 77,979 | 147,083 | |||||||||||||||||||||||||||||
Stockholders' equity | 1,740,429 | 1,715,460 | 1,647,155 | |||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,450,332 | $ | 11,278,699 | $ | 11,326,738 | ||||||||||||||||||||||||||
Net interest spread | 3.51 | % | 3.51 | % | 3.46 | % | ||||||||||||||||||||||||||
Net interest income and net interest margin (FTE) | $ | 103,698 | 4.00 | % | $ | 100,884 | 4.00 | % | $ | 100,239 | 3.92 | % | ||||||||||||||||||||
Less: Tax equivalent adjustment | 2,122 | 2,154 | 2,012 | |||||||||||||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 101,576 | 3.92 | % | $ | 98,730 | 3.91 | % | $ | 98,227 | 3.84 | % | ||||||||||||||||||||
1 Annualized for all partial-year periods. | ||||||||||||||||||||||||||||||||
2 Interest income includes $0.8 million and $1.7 million for the fourth quarter of fiscal year 2017 and 2016, respectively, resulting from accretion of purchase accounting discount associated with acquired loans. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||
Net Interest Margin (FTE) (Unaudited) | |||||||||||||||||||||
For the twelve months ended: | |||||||||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||||||||
Average Balance | Interest (FTE) | Yield / Cost 1 | Average Balance | Interest (FTE) | Yield / Cost 1 | ||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Interest-bearing bank deposits | $ | 123,616 | $ | 922 | 0.75 | % | $ | 122,651 | $ | 574 | 0.47 | % | |||||||||
Investment securities | 1,390,453 | 26,311 | 1.89 | % | 1,366,925 | 24,680 | 1.81 | % | |||||||||||||
Non ASC 310-30 loans, net 2 | 8,581,615 | 412,232 | 4.80 | % | 7,736,454 | 370,521 | 4.79 | % | |||||||||||||
ASC 310-30 loans, net | 114,057 | 10,801 | 9.47 | % | 113,828 | 7,457 | 6.55 | % | |||||||||||||
Loans, net | 8,695,672 | 423,033 | 4.86 | % | 7,850,282 | 377,978 | 4.81 | % | |||||||||||||
Total interest-earning assets | 10,209,741 | 450,266 | 4.41 | % | 9,339,858 | 403,232 | 4.32 | % | |||||||||||||
Noninterest-earning assets | 1,154,861 | 1,079,503 | |||||||||||||||||||
Total assets | $ | 11,364,602 | $ | 450,266 | 3.96 | % | $ | 10,419,361 | $ | 403,232 | 3.87 | % | |||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,806,491 | $ | 1,493,287 | |||||||||||||||||
NOW, money market and savings deposits | 5,709,863 | $ | 25,969 | 0.45 | % | 5,081,401 | $ | 16,206 | 0.32 | % | |||||||||||
CDs | 1,300,987 | 9,066 | 0.70 | % | 1,345,693 | 8,908 | 0.66 | % | |||||||||||||
Total deposits | 8,817,341 | 35,035 | 0.40 | % | 7,920,381 | 25,114 | 0.32 | % | |||||||||||||
Securities sold under agreements to repurchase | 122,188 | 384 | 0.31 | % | 160,820 | 519 | 0.32 | % | |||||||||||||
FHLB advances and other borrowings | 525,491 | 5,437 | 1.03 | % | 580,283 | 4,154 | 0.72 | % | |||||||||||||
Subordinated debentures and subordinated notes payable | 108,917 | 4,464 | 4.10 | % | 98,689 | 3,737 | 3.79 | % | |||||||||||||
Total borrowings | 756,596 | 10,285 | 1.36 | % | 839,792 | 8,410 | 1.00 | % | |||||||||||||
Total interest-bearing liabilities | 9,573,937 | $ | 45,320 | 0.47 | % | 8,760,173 | $ | 33,524 | 0.38 | % | |||||||||||
Noninterest-bearing liabilities | 88,440 | 117,344 | |||||||||||||||||||
Stockholders' equity | 1,702,225 | 1,541,844 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 11,364,602 | $ | 10,419,361 | |||||||||||||||||
Net interest spread | 3.49 | % | 3.49 | % | |||||||||||||||||
Net interest income and net interest margin (FTE) | $ | 404,946 | 3.97 | % | $ | 369,708 | 3.96 | % | |||||||||||||
Less: Tax equivalent adjustment | 8,599 | 7,534 | |||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 396,347 | 3.88 | % | $ | 362,174 | 3.88 | % | |||||||||||||
1 Annualized for all partial-year periods. | |||||||||||||||||||||
2 Interest income includes $4.1 million and $3.6 million for the twelve months ended 2017 and 2016, respectively, resulting from accretion of purchase accounting discount associated with acquired loans. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||
(dollars in thousands except share and per share amounts) | |||||||||||||||||||||||||||
Adjusted net income and adjusted earnings per common share: | |||||||||||||||||||||||||||
Net income - GAAP | $ | 144,786 | $ | 121,253 | $ | 37,662 | $ | 35,060 | $ | 35,162 | $ | 36,903 | $ | 33,758 | |||||||||||||
Add: Acquisition expenses, net of tax | 440 | 9,729 | — | — | — | 440 | 1,700 | ||||||||||||||||||||
Adjusted net income | $ | 145,226 | $ | 130,982 | $ | 37,662 | $ | 35,060 | $ | 35,162 | $ | 37,343 | $ | 35,458 | |||||||||||||
Weighted average diluted common shares outstanding | 59,029,382 | 56,729,350 | 58,914,144 | 59,130,632 | 59,073,669 | 58,991,905 | 58,938,367 | ||||||||||||||||||||
Earnings per common share - diluted | $ | 2.45 | $ | 2.14 | $ | 0.64 | $ | 0.59 | $ | 0.60 | $ | 0.63 | $ | 0.57 | |||||||||||||
Adjusted earnings per common share - diluted | $ | 2.46 | $ | 2.31 | $ | 0.64 | $ | 0.59 | $ | 0.60 | $ | 0.63 | $ | 0.60 | |||||||||||||
Tangible net income and return on average tangible common equity: | |||||||||||||||||||||||||||
Net income - GAAP | $ | 144,786 | $ | 121,253 | $ | 37,662 | $ | 35,060 | $ | 35,162 | $ | 36,903 | $ | 33,758 | |||||||||||||
Add: Amortization of intangible assets, net of tax | 2,044 | 2,384 | 380 | 488 | 500 | 676 | 804 | ||||||||||||||||||||
Tangible net income | $ | 146,830 | $ | 123,637 | $ | 38,042 | $ | 35,548 | $ | 35,662 | $ | 37,579 | $ | 34,562 | |||||||||||||
Average common equity | $ | 1,702,225 | $ | 1,541,844 | $ | 1,740,429 | $ | 1,715,460 | $ | 1,686,770 | $ | 1,666,243 | $ | 1,647,155 | |||||||||||||
Less: Average goodwill and other intangible assets | 749,393 | 721,726 | 748,571 | 749,074 | 749,638 | 750,290 | 750,756 | ||||||||||||||||||||
Average tangible common equity | $ | 952,832 | $ | 820,118 | $ | 991,858 | $ | 966,386 | $ | 937,132 | $ | 915,953 | $ | 896,399 | |||||||||||||
Return on average common equity * | 8.5 | % | 7.9 | % | 8.6 | % | 8.2 | % | 8.5 | % | 8.8 | % | 8.2 | % | |||||||||||||
Return on average tangible common equity ** | 15.4 | % | 15.1 | % | 15.2 | % | 14.8 | % | 15.4 | % | 16.3 | % | 15.3 | % | |||||||||||||
* 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 | $ | 396,347 | $ | 362,174 | $ | 101,576 | $ | 98,730 | $ | 97,399 | $ | 98,642 | $ | 98,227 | |||||||||||||
Add: Tax equivalent adjustment | 8,599 | 7,534 | 2,122 | 2,154 | 2,182 | 2,142 | 2,012 | ||||||||||||||||||||
Net interest income (FTE) | 404,946 | 369,708 | 103,698 | 100,884 | 99,581 | 100,784 | 100,239 | ||||||||||||||||||||
Add: Current realized derivative gain (loss) | (14,395 | ) | (20,727 | ) | (2,714 | ) | (3,320 | ) | (3,875 | ) | (4,486 | ) | (4,895 | ) | |||||||||||||
Adjusted net interest income (FTE) | $ | 390,551 | $ | 348,981 | $ | 100,984 | $ | 97,564 | $ | 95,706 | $ | 96,298 | $ | 95,344 | |||||||||||||
Average interest-earning assets | $ | 10,209,741 | $ | 9,339,858 | $ | 10,283,401 | $ | 10,124,404 | $ | 10,144,875 | $ | 10,286,284 | $ | 10,173,743 | |||||||||||||
Net interest margin (FTE) * | 3.97 | % | 3.96 | % | 4.00 | % | 4.00 | % | 3.98 | % | 3.89 | % | 3.92 | % | |||||||||||||
Adjusted net interest margin (FTE) ** | 3.83 | % | 3.74 | % | 3.90 | % | 3.87 | % | 3.83 | % | 3.71 | % | 3.73 | % | |||||||||||||
* 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. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2017 | September 30, 2016 | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||
(dollars in thousands except share and per share amounts) | |||||||||||||||||||||||||||
Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non ASC 310-30 loans: | |||||||||||||||||||||||||||
Net interest income - GAAP | $ | 403,633 | $ | 362,987 | $ | 104,902 | $ | 100,566 | $ | 98,825 | $ | 99,339 | $ | 99,058 | |||||||||||||
Add: Tax equivalent adjustment | 8,599 | 7,534 | 2,122 | 2,154 | 2,182 | 2,142 | 2,012 | ||||||||||||||||||||
Interest income (FTE) | 412,232 | 370,521 | 107,024 | 102,720 | 101,007 | 101,481 | 101,070 | ||||||||||||||||||||
Add: Current realized derivative gain (loss) | (14,395 | ) | (20,727 | ) | (2,714 | ) | (3,320 | ) | (3,875 | ) | (4,486 | ) | (4,895 | ) | |||||||||||||
Adjusted interest income (FTE) | $ | 397,837 | $ | 349,794 | $ | 104,310 | $ | 99,400 | $ | 97,132 | $ | 96,995 | $ | 96,175 | |||||||||||||
Average non ASC 310-30 loans | $ | 8,581,615 | $ | 7,736,454 | $ | 8,728,514 | $ | 8,550,349 | $ | 8,531,652 | $ | 8,515,947 | $ | 8,477,214 | |||||||||||||
Yield (FTE) * | 4.80 | % | 4.79 | % | 4.86 | % | 4.82 | % | 4.80 | % | 4.73 | % | 4.74 | % | |||||||||||||
Adjusted yield (FTE) ** | 4.64 | % | 4.52 | % | 4.74 | % | 4.66 | % | 4.62 | % | 4.52 | % | 4.51 | % | |||||||||||||
* 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 | $ | 452,409 | $ | 404,711 | $ | 114,412 | $ | 114,215 | $ | 111,233 | $ | 112,549 | $ | 114,025 | |||||||||||||
Add: Tax equivalent adjustment | 8,599 | 7,534 | 2,122 | 2,154 | 2,182 | 2,142 | 2,012 | ||||||||||||||||||||
Total revenue (FTE) | $ | 461,008 | $ | 412,245 | $ | 116,534 | $ | 116,369 | $ | 113,415 | $ | 114,691 | $ | 116,037 | |||||||||||||
Noninterest expense | $ | 216,643 | $ | 207,640 | $ | 55,332 | $ | 54,922 | $ | 53,852 | $ | 52,537 | $ | 57,342 | |||||||||||||
Less: Amortization of intangible assets | 2,358 | 3,264 | 430 | 538 | 550 | 839 | 1,024 | ||||||||||||||||||||
Tangible noninterest expense | $ | 214,285 | $ | 204,376 | $ | 54,902 | $ | 54,384 | $ | 53,302 | $ | 51,698 | $ | 56,318 | |||||||||||||
Efficiency ratio * | 46.5 | % | 49.6 | % | 47.1 | % | 46.7 | % | 47.0 | % | 45.1 | % | 48.5 | % | |||||||||||||
* 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 | $ | 1,755,000 | $ | 1,663,391 | $ | 1,755,000 | $ | 1,732,983 | $ | 1,706,861 | $ | 1,678,638 | $ | 1,663,391 | |||||||||||||
Less: Goodwill and other intangible assets | 748,397 | 750,755 | 748,397 | 748,828 | 749,366 | 749,916 | 750,755 | ||||||||||||||||||||
Tangible common equity | $ | 1,006,603 | $ | 912,636 | $ | 1,006,603 | $ | 984,155 | $ | 957,495 | $ | 928,722 | $ | 912,636 | |||||||||||||
Total assets | $ | 11,690,011 | $ | 11,531,180 | $ | 11,690,011 | $ | 11,466,184 | $ | 11,356,841 | $ | 11,422,617 | $ | 11,531,180 | |||||||||||||
Less: Goodwill and other intangible assets | 748,397 | 750,755 | 748,397 | 748,828 | 749,366 | 749,916 | 750,755 | ||||||||||||||||||||
Tangible assets | $ | 10,941,614 | $ | 10,780,425 | $ | 10,941,614 | $ | 10,717,356 | $ | 10,607,475 | $ | 10,672,701 | $ | 10,780,425 | |||||||||||||
Tangible common equity to tangible assets | 9.2 | % | 8.5 | % | 9.2 | % | 9.2 | % | 9.0 | % | 8.7 | % | 8.5 | % | |||||||||||||
Tangible book value per share: | |||||||||||||||||||||||||||
Total stockholders' equity | $ | 1,755,000 | $ | 1,663,391 | $ | 1,755,000 | $ | 1,732,983 | $ | 1,706,861 | $ | 1,678,638 | $ | 1,663,391 | |||||||||||||
Less: Goodwill and other intangible assets | 748,397 | 750,755 | 748,397 | 748,828 | 749,366 | 749,916 | 750,755 | ||||||||||||||||||||
Tangible common equity | $ | 1,006,603 | $ | 912,636 | $ | 1,006,603 | $ | 984,155 | $ | 957,495 | $ | 928,722 | $ | 912,636 | |||||||||||||
Common shares outstanding | 58,834,066 | 58,693,304 | 58,834,066 | 58,761,597 | 58,760,517 | 58,755,989 | 58,693,304 | ||||||||||||||||||||
Book value per share - GAAP | $ | 29.83 | $ | 28.34 | $ | 29.83 | $ | 29.49 | $ | 29.05 | $ | 28.57 | $ | 28.34 | |||||||||||||
Tangible book value per share | $ | 17.11 | $ | 15.55 | $ | 17.11 | $ | 16.75 | $ | 16.29 | $ | 15.81 | $ | 15.55 |
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