001-36688 | 47-1308512 | |
(Commission File Number) | (IRS Employer Identification No.) | |
100 North Phillips 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 29, 2015, containing financial information for the quarter and fiscal year to date periods ended September 30, 2015. |
99.2 | Slide presentation for conference call for investors and analysts on October 29, 2015. |
GREAT WESTERN BANCORP, INC. | |
Date: October 29, 2015 | By: /s/ Peter Chapman |
Name: Peter Chapman | |
Title: Chief Financial Officer and Executive Vice President |
Exhibit No. | Description |
99.1 | Press release of the registrant dated October 29, 2015, containing financial information for the quarter and fiscal year to date periods ended September 30, 2015. |
99.2 | Slide presentation for conference call for investors and analysts on October 29, 2015. |
• | Fourth quarter net income was $33.8 million, or $0.60 per share, bringing net income for fiscal year 2015 to $109.1 million, or $1.90 per share |
• | Net interest margin and adjusted net interest margin1 each increased compared to the previous quarter to 3.98% and 3.72%, respectively |
• | Net charge-offs during the quarter were minimal at $0.4 million or 0.02% of average loans on an annualized basis |
• | The efficiency ratio1 for the quarter was 45.8%, favorable compared to the previous quarter primarily due to a decrease in tangible noninterest expense1 |
• | Total loans grew $80.0 million during the quarter and $537.7 million, or 7.9%, during fiscal year 2015 |
• | Modest deposit growth during the quarter contributed to 4.7% deposit growth for fiscal year 2015, including $367 million of net growth in business deposits, reflecting a focus on this important funding source |
• | National Australia Bank, Ltd. ("NAB") completed its planned divestiture of 100% of Great Western Bancorp, Inc. ("GWB") |
• | GWB completed a private placement of $35 million of subordinated notes, repaid all outstanding borrowings due to NAB and repurchased $60 million of common stock from NAB in conjunction with the final secondary offering of NAB's shares of GWB |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||
Summary of Credit-Related Charges (Unaudited) | ||||||||||||||||||||
(Dollars in thousands) | For the twelve months ended: | For the three months ended: | ||||||||||||||||||
Item | Included within F/S Line Item(s): | September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||||||||||
Provision for loan losses | Provision for loan losses | $ | 19,041 | $ | 684 | $ | 1,633 | $ | 4,410 | $ | 2,749 | |||||||||
Net OREO charges | Net loss (recovery) on repossessed property and other related expenses | 5,382 | 8,644 | (165 | ) | 1,067 | 341 | |||||||||||||
Reversal (recovery) of interest income on nonperforming loans | Interest income on loans | 372 | (435 | ) | 117 | (100 | ) | (150 | ) | |||||||||||
Loan fair value adjustment related to credit | Net increase (decrease) in fair value of loans at fair value | 3,703 | 18 | 265 | 31 | 1,405 | ||||||||||||||
Total | $ | 28,498 | $ | 8,911 | $ | 1,850 | $ | 5,408 | $ | 4,345 |
• | a $2.2 million reduction in other noninterest expense, which reflects the difference in costs related to branch closures and gain or loss on sale of closed branch locations; |
• | a $2.1 million reduction in scheduled amortization of intangible assets; and |
• | a $0.5 million reduction in net OREO costs; |
• | a $1.3 million increase in salaries and employee benefits driven by incremental roles hired over the course of the fiscal year to support growth and public company requirements and higher health insurance costs; and |
• | a $1.0 million increase in professional fees largely attributable to the timing of costs incurred related to the Company's initial public offering in 2014. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Consolidated Financial Data (Unaudited) | |||||||||||||||||||||||||||
(Dollars in thousands except per share amounts) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Operating Data: | |||||||||||||||||||||||||||
Interest and dividend income (FTE) | $ | 369,957 | $ | 357,139 | $ | 94,499 | $ | 93,582 | $ | 89,794 | $ | 92,082 | $ | 92,265 | |||||||||||||
Interest expense | 29,884 | 32,052 | 7,296 | 7,340 | 7,579 | 7,669 | 7,715 | ||||||||||||||||||||
Noninterest income | 33,890 | 39,781 | 9,049 | 10,005 | 6,936 | 7,900 | 8,501 | ||||||||||||||||||||
Noninterest expense | 186,794 | 200,222 | 44,835 | 46,430 | 48,438 | 47,091 | 48,318 | ||||||||||||||||||||
Provision for loan losses | 19,041 | 684 | 1,633 | 4,410 | 9,679 | 3,319 | 2,749 | ||||||||||||||||||||
Net income | 109,065 | 104,952 | 33,812 | 28,832 | 19,724 | 26,697 | 27,875 | ||||||||||||||||||||
Earnings per common share2 | $ | 1.90 | $ | 1.81 | $ | 0.60 | $ | 0.50 | $ | 0.34 | $ | 0.46 | $ | 0.48 | |||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||
Net interest margin (FTE)3 | 3.94 | % | 4.02 | % | 3.98 | % | 3.95 | % | 3.89 | % | 3.91 | % | 4.10 | % | |||||||||||||
Adjusted net interest margin (FTE)1 3 | 3.68 | % | 3.79 | % | 3.72 | % | 3.70 | % | 3.64 | % | 3.67 | % | 3.86 | % | |||||||||||||
Return on average total assets3 | 1.12 | % | 1.14 | % | 1.38 | % | 1.18 | % | 0.83 | % | 1.10 | % | 1.19 | % | |||||||||||||
Return on average common equity3 | 7.49 | % | 7.34 | % | 9.21 | % | 7.83 | % | 5.49 | % | 7.39 | % | 7.68 | % | |||||||||||||
Return on average tangible common equity1 3 | 15.4 | % | 16.6 | % | 18.1 | % | 15.8 | % | 11.8 | % | 15.8 | % | 16.3 | % | |||||||||||||
Efficiency ratio1 | 48.0 | % | 50.4 | % | 45.8 | % | 46.4 | % | 51.7 | % | 48.5 | % | 49.0 | % | |||||||||||||
Capital: | |||||||||||||||||||||||||||
Tier 1 capital ratio | 10.9 | % | 11.8 | % | 10.9 | % | 11.5 | % | 11.6 | % | 11.8 | % | 11.8 | % | |||||||||||||
Total capital ratio | 12.1 | % | 12.9 | % | 12.1 | % | 12.5 | % | 12.6 | % | 12.9 | % | 12.9 | % | |||||||||||||
Tier 1 leverage ratio | 9.1 | % | 9.1 | % | 9.1 | % | 9.4 | % | 9.3 | % | 9.1 | % | 9.1 | % | |||||||||||||
Common equity tier 1 ratio | 10.1 | % | * | 10.1 | % | 10.8 | % | 10.8 | % | * | * | ||||||||||||||||
Tangible common equity / tangible assets1 | 8.3 | % | 8.2 | % | 8.3 | % | 8.6 | % | 8.4 | % | 8.3 | % | 8.2 | % | |||||||||||||
Asset Quality: | |||||||||||||||||||||||||||
Nonperforming loans | $ | 68,289 | $ | 78,905 | $ | 68,289 | $ | 68,117 | $ | 74,332 | $ | 68,454 | $ | 78,905 | |||||||||||||
OREO | $ | 15,892 | $ | 49,580 | $ | 15,892 | $ | 21,969 | $ | 43,565 | $ | 43,442 | $ | 49,580 | |||||||||||||
Nonperforming loans / total loans | 0.93 | % | 1.16 | % | 0.93 | % | 0.94 | % | 1.05 | % | 0.98 | % | 1.16 | % | |||||||||||||
Net charge-offs (recoveries) | $ | 9,359 | $ | 9,030 | $ | 363 | $ | 906 | $ | 9,073 | $ | (983 | ) | $ | 2,269 | ||||||||||||
Net charge-offs (recoveries) / average total loans3 | 0.13 | % | 0.14 | % | 0.02 | % | 0.05 | % | 0.52 | % | (0.06 | )% | 0.13 | % | |||||||||||||
Allowance for loan losses / total loans | 0.78 | % | 0.70 | % | 0.78 | % | 0.77 | % | 0.74 | % | 0.74 | % | 0.70 | % | |||||||||||||
Watch-rated loans | $ | 310,379 | $ | 287,723 | $ | 310,379 | $ | 322,256 | $ | 384,448 | $ | 275,473 | $ | 287,723 | |||||||||||||
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 Share dilution calculated for the quarter and fiscal year-to-date periods was minimal and, as such, diluted EPS equals EPS for all periods presented. | |||||||||||||||||||||||||||
3 Annualized for all partial-year periods. | |||||||||||||||||||||||||||
* Not applicable for period presented. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Consolidated Income Statement (Unaudited) | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
For the twelve months ended: | For the three months ended: | ||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||||||
Loans | $ | 338,458 | $ | 324,610 | $ | 86,480 | $ | 85,240 | $ | 82,394 | $ | 84,344 | $ | 84,477 | |||||||||||||
Taxable securities | 22,973 | 26,363 | 5,923 | 5,984 | 5,379 | 5,687 | 6,173 | ||||||||||||||||||||
Nontaxable securities | 51 | 80 | 15 | 10 | 13 | 13 | 19 | ||||||||||||||||||||
Dividends on securities | 1,247 | 968 | 250 | 489 | 258 | 250 | 217 | ||||||||||||||||||||
Federal funds sold and other | 652 | 455 | 53 | 155 | 160 | 284 | 55 | ||||||||||||||||||||
Total interest and dividend income | 363,381 | 352,476 | 92,721 | 91,878 | 88,204 | 90,578 | 90,941 | ||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||
Deposits | 23,362 | 25,764 | 5,587 | 5,776 | 5,984 | 6,015 | 6,135 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 563 | 600 | 133 | 134 | 150 | 146 | 158 | ||||||||||||||||||||
FHLB advances and other borrowings | 3,631 | 3,452 | 925 | 867 | 893 | 946 | 861 | ||||||||||||||||||||
Related party notes payable | 771 | 921 | 79 | 233 | 227 | 232 | 231 | ||||||||||||||||||||
Subordinated debentures and other | 1,557 | 1,315 | 572 | 330 | 325 | 330 | 330 | ||||||||||||||||||||
Total interest expense | 29,884 | 32,052 | 7,296 | 7,340 | 7,579 | 7,669 | 7,715 | ||||||||||||||||||||
Net interest income | 333,497 | 320,424 | 85,425 | 84,538 | 80,625 | 82,909 | 83,226 | ||||||||||||||||||||
Provision for loan losses | 19,041 | 684 | 1,633 | 4,410 | 9,679 | 3,319 | 2,749 | ||||||||||||||||||||
Net interest income after provision for loan losses | 314,456 | 319,740 | 83,792 | 80,128 | 70,946 | 79,590 | 80,477 | ||||||||||||||||||||
Noninterest income | |||||||||||||||||||||||||||
Service charges and other fees | 39,134 | 40,204 | 10,238 | 9,627 | 8,871 | 10,398 | 10,476 | ||||||||||||||||||||
Wealth management fees | 7,412 | 7,228 | 1,658 | 1,972 | 1,825 | 1,957 | 1,747 | ||||||||||||||||||||
Net gain on sale of loans | 6,694 | 5,539 | 1,667 | 1,903 | 1,580 | 1,544 | 1,654 | ||||||||||||||||||||
Net gain on sale of securities | 310 | 90 | 259 | — | — | 51 | 84 | ||||||||||||||||||||
Net increase (decrease) in fair value of loans at fair value | 36,742 | 11,904 | 28,828 | (24,394 | ) | 15,208 | 17,100 | (1,602 | ) | ||||||||||||||||||
Net realized and unrealized gain (loss) on derivatives | (62,088 | ) | (30,177 | ) | (34,731 | ) | 18,946 | (21,698 | ) | (24,605 | ) | (4,781 | ) | ||||||||||||||
Other | 5,686 | 4,993 | 1,130 | 1,951 | 1,150 | 1,455 | 923 | ||||||||||||||||||||
Total noninterest income | 33,890 | 39,781 | 9,049 | 10,005 | 6,936 | 7,900 | 8,501 | ||||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||||||
Salaries and employee benefits | 100,646 | 95,105 | 25,273 | 26,612 | 24,673 | 24,088 | 23,929 | ||||||||||||||||||||
Data processing | 19,531 | 19,548 | 5,338 | 4,657 | 4,708 | 4,828 | 5,443 | ||||||||||||||||||||
Occupancy expenses, net | 14,809 | 17,526 | 3,640 | 3,161 | 3,984 | 4,024 | 3,913 | ||||||||||||||||||||
Professional fees | 14,024 | 12,233 | 3,560 | 3,289 | 3,603 | 3,572 | 2,610 | ||||||||||||||||||||
Communication expenses | 4,455 | 4,510 | 1,026 | 1,031 | 1,225 | 1,173 | 1,108 | ||||||||||||||||||||
Advertising | 3,940 | 4,746 | 1,070 | 1,196 | 946 | 728 | 1,361 | ||||||||||||||||||||
Equipment expenses | 3,905 | 4,350 | 949 | 1,075 | 925 | 956 | 1,251 | ||||||||||||||||||||
Net loss (recovery) on repossessed property and other related expenses | 5,382 | 8,644 | (165 | ) | 1,067 | 2,634 | 1,846 | 341 | |||||||||||||||||||
Amortization of core deposits and other intangibles | 7,110 | 16,215 | 708 | 1,776 | 2,313 | 2,313 | 2,767 | ||||||||||||||||||||
Other | 12,992 | 17,345 | 3,436 | 2,566 | 3,427 | 3,563 | 5,595 | ||||||||||||||||||||
Total noninterest expense | 186,794 | 200,222 | 44,835 | 46,430 | 48,438 | 47,091 | 48,318 | ||||||||||||||||||||
Income before income taxes | 161,552 | 159,299 | 48,006 | 43,703 | 29,444 | 40,399 | 40,660 | ||||||||||||||||||||
Provision for income taxes | 52,487 | 54,347 | 14,194 | 14,871 | 9,720 | 13,702 | 12,785 | ||||||||||||||||||||
Net income | $ | 109,065 | $ | 104,952 | $ | 33,812 | $ | 28,832 | $ | 19,724 | $ | 26,697 | $ | 27,875 |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||
Summarized Consolidated Balance Sheet (Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
As of: | |||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 237,770 | $ | 187,171 | $ | 358,440 | $ | 428,186 | $ | 256,639 | |||||||||
Securities | 1,327,327 | 1,410,475 | 1,402,508 | 1,263,983 | 1,341,242 | ||||||||||||||
Total loans | 7,325,198 | 7,245,239 | 7,072,465 | 6,986,765 | 6,787,467 | ||||||||||||||
Allowance for loan losses | (57,200 | ) | (55,930 | ) | (52,426 | ) | (51,820 | ) | (47,518 | ) | |||||||||
Loans, net | 7,267,998 | 7,189,309 | 7,020,039 | 6,934,945 | 6,739,949 | ||||||||||||||
Goodwill and other intangible assets | 704,926 | 705,634 | 707,410 | 709,723 | 712,036 | ||||||||||||||
Other assets | 260,633 | 271,570 | 293,248 | 304,424 | 321,563 | ||||||||||||||
Total assets | $ | 9,798,654 | $ | 9,764,159 | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 | |||||||||
Liabilities and stockholders' equity | |||||||||||||||||||
Noninterest-bearing deposits | $ | 1,368,453 | $ | 1,360,722 | $ | 1,374,589 | $ | 1,381,887 | $ | 1,303,015 | |||||||||
Interest-bearing deposits | 6,018,612 | 5,996,966 | 6,113,109 | 5,857,319 | 5,749,165 | ||||||||||||||
Total deposits | 7,387,065 | 7,357,688 | 7,487,698 | 7,239,206 | 7,052,180 | ||||||||||||||
Securities sold under agreements to repurchase | 185,271 | 161,559 | 163,343 | 190,585 | 161,687 | ||||||||||||||
FHLB advances and other borrowings | 581,000 | 590,520 | 475,019 | 575,085 | 575,094 | ||||||||||||||
Other liabilities | 185,972 | 166,541 | 186,033 | 185,015 | 161,378 | ||||||||||||||
Total liabilities | 8,339,308 | 8,276,308 | 8,312,093 | 8,189,891 | 7,950,339 | ||||||||||||||
Stockholders' equity | 1,459,346 | 1,487,851 | 1,469,552 | 1,451,370 | 1,421,090 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 9,798,654 | $ | 9,764,159 | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Loan Portfolio Summary (Unaudited) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of | Fiscal year-to-date: | |||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | Change ($) | Change (%) | ||||||||||||||||||||
Commercial non-real estate | $ | 1,610,828 | $ | 1,701,024 | $ | 1,657,856 | $ | 1,551,607 | $ | 1,571,640 | $ | 39,188 | 2.5 | % | ||||||||||||
Agriculture | 1,861,465 | 1,813,330 | 1,748,366 | 1,788,028 | 1,681,209 | 180,256 | 10.7 | % | ||||||||||||||||||
Construction and development | 256,697 | 290,525 | 310,011 | 285,366 | 314,000 | (57,303 | ) | (18.2 | )% | |||||||||||||||||
Owner-occupied CRE | 1,122,041 | 1,128,536 | 1,110,074 | 1,146,670 | 1,151,868 | (29,827 | ) | (2.6 | )% | |||||||||||||||||
Non-owner-occupied CRE | 1,227,354 | 1,046,392 | 1,011,274 | 1,033,481 | 922,395 | 304,959 | 33.1 | % | ||||||||||||||||||
Multifamily residential real estate | 239,656 | 255,540 | 241,896 | 180,204 | 152,931 | 86,725 | 56.7 | % | ||||||||||||||||||
Commercial real estate | 2,845,748 | 2,720,993 | 2,673,255 | 2,645,721 | 2,541,194 | 304,554 | 12.0 | % | ||||||||||||||||||
Residential real estate | 921,827 | 922,481 | 905,114 | 910,406 | 901,605 | 20,222 | 2.2 | % | ||||||||||||||||||
Consumer | 73,049 | 75,311 | 80,036 | 85,822 | 90,086 | (17,037 | ) | (18.9 | )% | |||||||||||||||||
Other1 | 38,371 | 38,901 | 35,433 | 35,311 | 34,243 | 4,128 | 12.1 | % | ||||||||||||||||||
Total unpaid principal balance | 7,351,288 | 7,272,040 | 7,100,060 | 7,016,895 | 6,819,977 | 531,311 | 7.8 | % | ||||||||||||||||||
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process | (26,090 | ) | (26,801 | ) | (27,595 | ) | (30,130 | ) | (32,510 | ) | 6,420 | (19.7 | )% | |||||||||||||
Total loans | $ | 7,325,198 | $ | 7,245,239 | $ | 7,072,465 | $ | 6,986,765 | $ | 6,787,467 | $ | 537,731 | 7.9 | % | ||||||||||||
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: | ||||||||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||||||||||||||||||||||||||
Average Balance | Interest (FTE)1 | Yield / Cost2 | Average Balance | Interest (FTE)1 | Yield / Cost2 | Average Balance | Interest (FTE)1 | Yield / Cost2 | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 72,054 | $ | 53 | 0.29 | % | $ | 198,517 | $ | 155 | 0.31 | % | $ | 80,815 | $ | 55 | 0.27 | % | ||||||||||||||
Investment securities | 1,400,485 | 6,188 | 1.75 | % | 1,439,690 | 6,483 | 1.81 | % | 1,403,371 | 6,409 | 1.81 | % | ||||||||||||||||||||
Loans, other than loans acquired with deteriorated credit quality, net | 7,108,598 | 86,613 | 4.83 | % | 6,995,340 | 84,798 | 4.86 | % | 6,527,721 | 84,292 | 5.12 | % | ||||||||||||||||||||
Loans acquired with deteriorated credit quality, net | 112,334 | 1,645 | 5.81 | % | 122,697 | 2,146 | 7.02 | % | 169,287 | 1,509 | 3.54 | % | ||||||||||||||||||||
Loans, net | 7,220,932 | 88,258 | 4.85 | % | 7,118,037 | 86,944 | 4.90 | % | 6,697,008 | 85,801 | 5.08 | % | ||||||||||||||||||||
Total interest-earning assets | 8,693,471 | 94,499 | 4.31 | % | 8,756,244 | 93,582 | 4.29 | % | 8,181,194 | 92,265 | 4.47 | % | ||||||||||||||||||||
Noninterest-earning assets | 1,048,844 | 1,065,347 | 1,130,655 | |||||||||||||||||||||||||||||
Total assets | $ | 9,742,315 | $ | 94,499 | 3.85 | % | $ | 9,821,591 | $ | 93,582 | 3.82 | % | $ | 9,311,849 | $ | 92,265 | 3.93 | % | ||||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,315,345 | $ | 1,312,859 | $ | 1,266,733 | ||||||||||||||||||||||||||
NOW, MMDA and savings deposits | 4,626,315 | $ | 3,185 | 0.27 | % | 4,665,101 | $ | 3,272 | 0.28 | % | 3,980,578 | $ | 2,387 | 0.24 | % | |||||||||||||||||
CDs | 1,408,155 | 2,402 | 0.68 | % | 1,499,667 | 2,504 | 0.67 | % | 1,779,503 | 3,748 | 0.84 | % | ||||||||||||||||||||
Total deposits | 7,349,815 | 5,587 | 0.30 | % | 7,477,627 | 5,776 | 0.31 | % | 7,026,814 | 6,135 | 0.35 | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | 164,843 | 133 | 0.32 | % | 158,758 | 134 | 0.34 | % | 186,477 | 158 | 0.34 | % | ||||||||||||||||||||
FHLB advances and other borrowings | 597,758 | 925 | 0.61 | % | 523,839 | 867 | 0.66 | % | 490,455 | 861 | 0.70 | % | ||||||||||||||||||||
Related party notes payable | 13,321 | 79 | 2.35 | % | 41,295 | 233 | 2.26 | % | 41,295 | 231 | 2.22 | % | ||||||||||||||||||||
Subordinated debentures and other | 79,756 | 572 | 2.85 | % | 56,083 | 330 | 2.36 | % | 56,083 | 330 | 2.33 | % | ||||||||||||||||||||
Total borrowings | 855,678 | 1,709 | 0.79 | % | 779,975 | 1,564 | 0.80 | % | 774,310 | 1,580 | 0.81 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 8,205,493 | $ | 7,296 | 0.35 | % | 8,257,602 | $ | 7,340 | 0.36 | % | 7,801,124 | $ | 7,715 | 0.39 | % | |||||||||||||||||
Noninterest-bearing liabilities | 80,450 | 87,433 | 71,608 | |||||||||||||||||||||||||||||
Stockholders' equity | 1,456,372 | 1,476,556 | 1,439,117 | |||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,742,315 | $ | 9,821,591 | $ | 9,311,849 | ||||||||||||||||||||||||||
Net interest spread | 3.50 | % | 3.46 | % | 3.54 | % | ||||||||||||||||||||||||||
Net interest income and net interest margin (FTE)1 | $ | 87,203 | 3.98 | % | $ | 86,242 | 3.95 | % | $ | 84,550 | 4.10 | % | ||||||||||||||||||||
Less: Tax equivalent adjustment | 1,778 | 1,704 | 1,324 | |||||||||||||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 85,425 | 3.90 | % | $ | 84,538 | 3.87 | % | $ | 83,226 | 4.04 | % | ||||||||||||||||||||
1 These are non-GAAP financial measures management believes are helpful to interpreting our financial results. See the tables 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. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||
Net Interest Margin (FTE) (Unaudited) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
For the twelve months ended: | |||||||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||||||
Average Balance | Interest (FTE)1 | Yield / Cost2 | Average Balance | Interest (FTE)1 | Yield / Cost2 | ||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 244,850 | $ | 652 | 0.27 | % | $ | 167,982 | $ | 455 | 0.27 | % | |||||||||
Investment securities | 1,377,718 | 24,271 | 1.76 | % | 1,419,354 | 27,411 | 1.93 | % | |||||||||||||
Loans, other than loans acquired with deteriorated credit quality, net | 6,889,738 | 336,194 | 4.88 | % | 6,311,857 | 323,438 | 5.12 | % | |||||||||||||
Loans acquired with deteriorated credit quality, net | 129,413 | 8,840 | 6.83 | % | 194,668 | 5,835 | 3.00 | % | |||||||||||||
Loans, net | 7,019,151 | 345,034 | 4.92 | % | 6,506,525 | 329,273 | 5.06 | % | |||||||||||||
Total interest-earning assets | 8,641,719 | 369,957 | 4.28 | % | 8,093,861 | 357,139 | 4.41 | % | |||||||||||||
Noninterest-earning assets | 1,079,201 | 1,149,957 | |||||||||||||||||||
Total assets | $ | 9,720,920 | $ | 369,957 | 3.81 | % | $ | 9,243,818 | $ | 357,139 | 3.86 | % | |||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,350,749 | $ | 1,242,097 | |||||||||||||||||
NOW, MMDA and savings deposits | 4,472,223 | $ | 12,374 | 0.28 | % | 3,952,765 | $ | 9,329 | 0.24 | % | |||||||||||
CDs | 1,539,863 | 10,988 | 0.71 | % | 1,909,269 | 16,435 | 0.86 | % | |||||||||||||
Total deposits | 7,362,835 | 23,362 | 0.32 | % | 7,104,131 | 25,764 | 0.36 | % | |||||||||||||
Securities sold under agreements to repurchase | 168,455 | 563 | 0.33 | % | 193,901 | 600 | 0.31 | % | |||||||||||||
FHLB advances and other borrowings | 554,127 | 3,631 | 0.66 | % | 356,915 | 3,452 | 0.97 | % | |||||||||||||
Related party notes payable | 34,301 | 771 | 2.25 | % | 41,295 | 921 | 2.23 | % | |||||||||||||
Subordinated debentures and other | 62,001 | 1,557 | 2.51 | % | 56,083 | 1,315 | 2.34 | % | |||||||||||||
Total borrowings | 818,884 | 6,522 | 0.80 | % | 648,194 | 6,288 | 0.97 | % | |||||||||||||
Total interest-bearing liabilities | 8,181,719 | $ | 29,884 | 0.37 | % | 7,752,325 | $ | 32,052 | 0.41 | % | |||||||||||
Noninterest-bearing liabilities | 82,978 | 60,721 | |||||||||||||||||||
Stockholders' equity | 1,456,223 | 1,430,772 | |||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,720,920 | $ | 9,243,818 | |||||||||||||||||
Net interest spread | 3.44 | % | 3.45 | % | |||||||||||||||||
Net interest income and net interest margin (FTE)1 | $ | 340,073 | 3.94 | % | $ | 325,087 | 4.02 | % | |||||||||||||
Less: Tax equivalent adjustment | 6,576 | 4,663 | |||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 333,497 | 3.86 | % | $ | 320,424 | 3.96 | % | |||||||||||||
1 These are non-GAAP financial measures management believes are helpful to interpreting our financial results. See the tables 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. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Cash net income and return on average tangible common equity: | |||||||||||||||||||||||||||
Net income | $ | 109,065 | $ | 104,952 | $ | 33,812 | $ | 28,832 | $ | 19,724 | $ | 26,697 | $ | 27,875 | |||||||||||||
Add: Amortization of intangible assets | 7,110 | 16,215 | 708 | 1,776 | 2,313 | 2,313 | 2,767 | ||||||||||||||||||||
Add: Tax on amortization of intangible assets | (880 | ) | (3,244 | ) | (220 | ) | (220 | ) | (220 | ) | (220 | ) | (811 | ) | |||||||||||||
Cash net income | $ | 115,295 | $ | 117,923 | $ | 34,300 | $ | 30,388 | $ | 21,817 | $ | 28,790 | $ | 29,831 | |||||||||||||
Average common equity | $ | 1,456,223 | $ | 1,430,772 | $ | 1,456,372 | $ | 1,476,556 | $ | 1,458,131 | $ | 1,433,837 | $ | 1,439,117 | |||||||||||||
Less: Average goodwill and other intangible assets | 707,920 | 719,573 | 705,284 | 706,526 | 708,782 | 711,088 | 713,462 | ||||||||||||||||||||
Average tangible common equity | $ | 748,303 | $ | 711,199 | $ | 751,088 | $ | 770,030 | $ | 749,349 | $ | 722,749 | $ | 725,655 | |||||||||||||
Return on average common equity * | 7.49 | % | 7.34 | % | 9.21 | % | 7.83 | % | 5.49 | % | 7.39 | % | 7.68 | % | |||||||||||||
Return on average tangible common equity * | 15.4 | % | 16.6 | % | 18.1 | % | 15.8 | % | 11.8 | % | 15.8 | % | 16.3 | % | |||||||||||||
* Calculated as net income divided by average common equity and cash net income divided by average tangible common equity, respectively. Annualized for partial-year periods. | |||||||||||||||||||||||||||
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis): | |||||||||||||||||||||||||||
Net interest income | $ | 333,497 | $ | 320,424 | $ | 85,425 | $ | 84,538 | $ | 80,625 | $ | 82,909 | $ | 83,226 | |||||||||||||
Add: Tax equivalent adjustment | 6,576 | 4,663 | 1,778 | 1,704 | 1,590 | 1,504 | 1,324 | ||||||||||||||||||||
Net interest income (FTE) | 340,073 | 325,087 | 87,203 | 86,242 | 82,215 | 84,413 | 84,550 | ||||||||||||||||||||
Add: Current realized derivative gain (loss) | (21,642 | ) | (18,255 | ) | (5,637 | ) | (5,416 | ) | (5,307 | ) | (5,282 | ) | (4,978 | ) | |||||||||||||
Adjusted net interest income (FTE) | $ | 318,431 | $ | 306,832 | $ | 81,566 | $ | 80,826 | $ | 76,908 | $ | 79,131 | $ | 79,572 | |||||||||||||
Average interest earning assets | $ | 8,641,719 | $ | 8,093,861 | $ | 8,693,471 | $ | 8,756,244 | $ | 8,560,477 | $ | 8,556,688 | $ | 8,181,194 | |||||||||||||
Net interest margin (FTE) * | 3.94 | % | 4.02 | % | 3.98 | % | 3.95 | % | 3.89 | % | 3.91 | % | 4.10 | % | |||||||||||||
Adjusted net interest margin (FTE) ** | 3.68 | % | 3.79 | % | 3.72 | % | 3.70 | % | 3.64 | % | 3.67 | % | 3.86 | % | |||||||||||||
* 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 loans other than loans acquired with deteriorated credit quality: | |||||||||||||||||||||||||||
Interest income | $ | 329,618 | $ | 318,775 | $ | 84,835 | $ | 83,094 | $ | 80,317 | $ | 81,372 | $ | 82,968 | |||||||||||||
Add: Tax equivalent adjustment | 6,576 | 4,663 | 1,778 | 1,704 | 1,590 | 1,504 | 1,324 | ||||||||||||||||||||
Interest income (FTE) | 336,194 | 323,438 | 86,613 | 84,798 | 81,907 | 82,876 | 84,292 | ||||||||||||||||||||
Add: Current realized derivative gain (loss) | (21,642 | ) | (18,255 | ) | (5,637 | ) | (5,416 | ) | (5,307 | ) | (5,282 | ) | (4,978 | ) | |||||||||||||
Adjusted interest income (FTE) | $ | 314,552 | $ | 305,183 | $ | 80,976 | $ | 79,382 | $ | 76,600 | $ | 77,594 | $ | 79,314 | |||||||||||||
Average loans other than loans acquired with deteriorated credit quality | $ | 6,889,738 | $ | 6,311,857 | $ | 7,108,598 | $ | 6,995,340 | $ | 6,828,510 | $ | 6,626,507 | $ | 6,527,721 | |||||||||||||
Yield (FTE) * | 4.88 | % | 5.12 | % | 4.83 | % | 4.86 | % | 4.86 | % | 4.96 | % | 5.12 | % | |||||||||||||
Adjusted yield (FTE) ** | 4.57 | % | 4.84 | % | 4.52 | % | 4.55 | % | 4.55 | % | 4.65 | % | 4.82 | % | |||||||||||||
* 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. | |||||||||||||||||||||||||||
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
At or for the twelve months ended: | At or for the three months ended: | ||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | September 30, 2014 | |||||||||||||||||||||
Efficiency ratio: | |||||||||||||||||||||||||||
Total revenue | $ | 367,387 | $ | 360,205 | $ | 94,474 | $ | 94,543 | $ | 87,561 | $ | 90,809 | $ | 91,727 | |||||||||||||
Add: Tax equivalent adjustment | 6,576 | 4,663 | 1,778 | 1,704 | 1,590 | 1,504 | 1,324 | ||||||||||||||||||||
Total revenue (FTE) | $ | 373,963 | $ | 364,868 | $ | 96,252 | $ | 96,247 | $ | 89,151 | $ | 92,313 | $ | 93,051 | |||||||||||||
Noninterest expense | $ | 186,794 | $ | 200,222 | $ | 44,835 | $ | 46,430 | $ | 48,438 | $ | 47,091 | $ | 48,318 | |||||||||||||
Less: Amortization of intangible assets | 7,110 | 16,215 | 708 | 1,776 | 2,313 | 2,313 | 2,767 | ||||||||||||||||||||
Tangible noninterest expense | $ | 179,684 | $ | 184,007 | $ | 44,127 | $ | 44,654 | $ | 46,125 | $ | 44,778 | $ | 45,551 | |||||||||||||
Efficiency ratio * | 48.0 | % | 50.4 | % | 45.8 | % | 46.4 | % | 51.7 | % | 48.5 | % | 49.0 | % | |||||||||||||
* 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 | $ | 1,459,346 | $ | 1,421,090 | $ | 1,459,346 | $ | 1,487,851 | $ | 1,469,552 | $ | 1,451,370 | $ | 1,421,090 | |||||||||||||
Less: Goodwill and other intangible assets | 704,926 | 712,036 | 704,926 | 705,634 | 707,410 | 709,723 | 712,036 | ||||||||||||||||||||
Tangible common equity | $ | 754,420 | $ | 709,054 | $ | 754,420 | $ | 782,217 | $ | 762,142 | $ | 741,647 | $ | 709,054 | |||||||||||||
Total assets | $ | 9,798,654 | $ | 9,371,429 | $ | 9,798,654 | $ | 9,764,159 | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 | |||||||||||||
Less: Goodwill and other intangible assets | 704,926 | 712,036 | 704,926 | 705,634 | 707,410 | 709,723 | 712,036 | ||||||||||||||||||||
Tangible assets | $ | 9,093,728 | $ | 8,659,393 | $ | 9,093,728 | $ | 9,058,525 | $ | 9,074,235 | $ | 8,931,538 | $ | 8,659,393 | |||||||||||||
Tangible common equity to tangible assets | 8.3 | % | 8.2 | % | 8.3 | % | 8.6 | % | 8.4 | % | 8.3 | % | 8.2 | % |
<87$[EL[R^#7I>$SNI*K'OTSIP<7ZN37T,^3I1AU1FZ:I]3Z>C5
M5,Y:JF/6^P))*'(\A-5N+U=K19\1OMR;9>^(_!Q][>2^A+:!9/Z4ZE95>%Q=
M.NVJVK3S\+GL^P*/L7VS=_#>SR,:U5]MIRT1WV?@?=1FEM]L/=
SOO#S'9_"QRW,-H,12CC,3034JDZTH4
MIS;\73CIN=CHM/VK/X6'B./R;Q-
M3S.+J'49>?P1/J?>TY6BSP?J>VJX1,P_D9OORC.,3VL=I
/4M_3FI[V:L/\$1=O^'_[)?O!7X?FSV!1
M/]IY.:.^&M"ULFA[0_W3=/2&OPHG\TGH_1XLQ^3GAOKK17]Q(/\ Y2_W2_>*
MJ.,X,3^;BGH]3XL_*')'?I6C_@*'M3_=.2GI)/\ =X^;BGH]1/\ ;3\H
YETN0VFYGA^L;5BH=/D2:5W0SP
MC.V5W'#]8VR;CA^L;9-QP_6-IN.&-JQ4S*GSZC;+5X3A^8VR7@X?F-LEX.'Y
MC;)>#A^8VR7@X?F-LEX.$-I>$=+GU&TO".E;O&TNFCS&TN:/,FTN
3M<(EZ-3]1]L !BI66C C0$L8:0*SI9)+I8RU$SG53%-.-%Y]T_LE6A:E
M1$U58,VCWQ^[\[N0W:RWP;S\BV66)>#H8Z
H9JK*Y&K;33SJ_UY6XRYLKD,GIN
M4ISFH4[JJO1I_EYS?A#N=C=X6X??_G-'9'-]VU#8K'XY\#+\?@>'3;J/XL54
MI*+C-]RE%Q;Y/JD^#'RVIZ=1./AX^^(YQ-_I-_W?3E\UI.J5QEL3+]7,\(F+
M<_C%N/QX/FO?ANIQNY3>'F>S6+JO%TJ,57PF+TZ?2,/*[A*W=+DXM>,7W'I\
MCFZ<]@4XU/"_"8]4O)ZCDJM/S-6!5-[<8GUP^EL3L+NI[*F[C9K-=M-F/OYV
MRSJEQHX:OIG3@],9348S^!"$-<8ZFI2DW^;RL8^=U;'KHR]>S#I[_P#7&\_)
M["]U?_
MAL#4] PV4TI2I.DYI2D[4I\[QBNJY)'1:/7GZ:*ZLI13-YXW]?SAZ+
M7*--JQ,.G.UU4VCA$[A_KWOVW;]S;+\_P!S.ZS'
MY72EA,NQU1XC"49QTRIT985.":[FHN/(ZS0**L/-8]-
9PLSJ$8N#3%-%XB.%N$3S_/F]A>Z YI@LXWQ935P
M.,H8RDLCITY5,-5C42EQZW*Z;Y\T=9T-2G)QE%^37-$F(F+2L3-,WAY.89OC\V<'
MCL=BL9=A#K