(Commission File Number) | (IRS Employer Identification Number) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | ||||
99.1 | Press release of Great Western dated July 29, 2021, containing financial information for the quarter ended June 30, 2021. | ||||
99.2 | Quarterly Investor Relations Presentation for the third quarter of fiscal year 2021. |
GREAT WESTERN BANCORP, INC. | |||||
Date: July 29, 2021 | By: /s/ Peter Chapman | ||||
Name: Peter Chapman | |||||
Title: Chief Financial Officer and Executive Vice President |
Exhibit No. | Description | ||||
Press release of Great Western dated July 29, 2021, containing financial information for the quarter ended June 30, 2021. | |||||
Quarterly Investor Relations Presentation for the third quarter of fiscal year 2021. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||
Summary of Credit-Related Charges (Unaudited) | |||||||||||||||||||||||
For the nine months ended: | For the three months ended: | ||||||||||||||||||||||
Item | Included within F/S Line Item(s): | June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
(Reversal of) provision for credit losses ¹ | (Reversal of) provision for credit losses ¹ | $ | (13,800) | $ | 101,539 | $ | (20,699) | $ | (5,000) | $ | 21,641 | ||||||||||||
Increase provision for unfunded commitments reserve ¹ | Other noninterest expense ¹ | — | 2,859 | — | — | 2,215 | |||||||||||||||||
Net other repossessed property charges (income) | Net (gain) loss on repossessed property and other related expenses | (469) | 8,508 | (760) | (54) | 2,475 | |||||||||||||||||
Net (recovery) reversal of interest income on nonaccrual loans | Interest income on loans | (6,134) | 4,164 | (2,514) | (707) | 1,070 | |||||||||||||||||
Net realized credit loss on derivatives | Change in fair value of FVO loans and related derivatives | 210 | 1,709 | — | — | 1,709 | |||||||||||||||||
Loan fair value adjustment related to credit | Change in fair value of FVO loans and related derivatives | (2,674) | 35,949 | (4,111) | (27) | 23,292 | |||||||||||||||||
Total credit-related charges | $ | (22,867) | $ | 154,728 | $ | (28,084) | $ | (5,788) | $ | 52,402 | |||||||||||||
1 Beginning in the first quarter of fiscal year 2021, increase (decrease) in unfunded commitment reserve is included in provision for credit losses. |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Consolidated Financial Data (Unaudited) | ||||||||||||||||||||||||||
At and for the nine months ended: | At and for the three months ended: | |||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||
(dollars in thousands, except share and per share amounts) | ||||||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||
Interest income (FTE) | $ | 331,988 | $ | 381,289 | $ | 104,219 | $ | 110,574 | $ | 117,195 | $ | 118,429 | $ | 121,472 | ||||||||||||
Interest expense | 18,977 | 63,244 | $ | 5,161 | $ | 6,127 | $ | 7,689 | $ | 10,903 | $ | 13,620 | ||||||||||||||
Noninterest income (loss) | 50,712 | 3,967 | $ | 19,371 | $ | 17,193 | $ | 14,148 | $ | (3,950) | $ | (11,683) | ||||||||||||||
Noninterest expense | 177,057 | 932,432 | $ | 60,505 | $ | 59,103 | $ | 57,449 | $ | 74,936 | $ | 67,049 | ||||||||||||||
(Reversal of) provision for credit losses ³ | (13,800) | 101,539 | $ | (20,699) | $ | (5,000) | $ | 11,899 | $ | 16,853 | $ | 21,641 | ||||||||||||||
Net income (loss) | 151,367 | (691,944) | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||||
Adjusted net income ¹ | $ | 151,367 | $ | 77,754 | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||
Common shares outstanding | 55,116,095 | 55,014,047 | 55,116,095 | 55,111,403 | 55,105,105 | 55,014,189 | 55,014,047 | |||||||||||||||||||
Weighted average diluted common shares outstanding | 55,409,573 | 55,788,751 | 55,524,979 | 55,456,399 | 55,247,343 | 55,164,548 | 55,145,619 | |||||||||||||||||||
Earnings per common share - diluted | $ | 2.74 | $ | (12.40) | $ | 1.06 | $ | 0.93 | $ | 0.75 | $ | 0.20 | $ | 0.10 | ||||||||||||
Adjusted earnings per common share - diluted ¹ | $ | 2.74 | $ | 1.39 | $ | 1.06 | $ | 0.93 | $ | 0.75 | $ | 0.20 | $ | 0.10 | ||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||
Net interest margin (FTE) ¹ ² | 3.46 | % | 3.61 | % | 3.23 | % | 3.51 | % | 3.63 | % | 3.51 | % | 3.57 | % | ||||||||||||
Adjusted net interest margin (FTE) ¹ ² | 3.35 | % | 3.55 | % | 3.13 | % | 3.40 | % | 3.52 | % | 3.40 | % | 3.47 | % | ||||||||||||
Return on average total assets ² | 1.59 | % | (7.22) | % | 1.81 | % | 1.64 | % | 1.30 | % | 0.35 | % | 0.17 | % | ||||||||||||
Return on average common equity ² | 18.7 | % | (55.6) | % | 21.2 | % | 19.8 | % | 15.2 | % | 3.8 | % | 1.9 | % | ||||||||||||
Return on average tangible common equity ¹ ² | 18.9 | % | 2.5 | % | 21.4 | % | 20.0 | % | 15.3 | % | 3.9 | % | 2.0 | % | ||||||||||||
Efficiency ratio ¹ | 48.5 | % | 58.7 | % | 50.9 | % | 48.4 | % | 46.2 | % | 72.1 | % | 69.4 | % | ||||||||||||
Capital: | ||||||||||||||||||||||||||
Tier 1 capital ratio | 14.5 | % | 11.3 | % | 14.5 | % | 13.5 | % | 12.7 | % | 11.8 | % | 11.3 | % | ||||||||||||
Total capital ratio | 16.0 | % | 12.9 | % | 16.0 | % | 15.1 | % | 14.3 | % | 13.3 | % | 12.9 | % | ||||||||||||
Tier 1 leverage ratio | 10.1 | % | 9.3 | % | 10.1 | % | 10.0 | % | 9.7 | % | 9.4 | % | 9.3 | % | ||||||||||||
Common equity tier 1 ratio | 13.7 | % | 10.6 | % | 13.7 | % | 12.8 | % | 12.0 | % | 11.0 | % | 10.6 | % | ||||||||||||
Tangible common equity / tangible assets ¹ | 8.8 | % | 8.9 | % | 8.8 | % | 8.4 | % | 8.3 | % | 9.2 | % | 8.9 | % | ||||||||||||
Book value per share - GAAP | $ | 21.07 | $ | 21.10 | $ | 21.07 | $ | 19.85 | $ | 19.39 | $ | 21.14 | $ | 21.10 | ||||||||||||
Tangible book value per share ¹ | $ | 20.97 | $ | 20.98 | $ | 20.97 | $ | 19.75 | $ | 19.28 | $ | 21.03 | $ | 20.98 | ||||||||||||
Asset Quality: | ||||||||||||||||||||||||||
Nonaccrual loans | $ | 210,083 | $ | 274,475 | $ | 210,083 | $ | 284,541 | $ | 292,357 | $ | 324,946 | $ | 274,475 | ||||||||||||
Other repossessed property | $ | 11,498 | $ | 19,231 | $ | 11,498 | $ | 17,529 | $ | 18,086 | $ | 20,034 | $ | 19,231 | ||||||||||||
Nonaccrual loans / total loans | 2.48 | % | 2.66 | % | 2.48 | % | 3.16 | % | 3.07 | % | 3.22 | % | 2.66 | % | ||||||||||||
Net charge-offs (recoveries) | $ | 43,410 | $ | 24,155 | $ | 5,211 | $ | 7,841 | $ | 30,358 | $ | 15,124 | $ | 9,433 | ||||||||||||
Net charge-offs (recoveries) / average total loans ² | 0.62 | % | 0.33 | % | 0.24 | % | 0.34 | % | 1.22 | % | 0.59 | % | 0.37 | % | ||||||||||||
Allowance for credit losses / total loans | 3.19 | % | 1.44 | % | 3.19 | % | 3.28 | % | 3.24 | % | 1.49 | % | 1.44 | % | ||||||||||||
Watch-rated loans (under former risk rating system) ⁴ | n/a | $ | 477,128 | n/a | n/a | n/a | $ | 982,841 | $ | 477,128 | ||||||||||||||||
Special mention loans ⁴ | $ | 374,782 | n/a | $ | 374,782 | $ | 512,320 | $ | 453,484 | n/a | n/a | |||||||||||||||
Classified loans (substandard or worse) | $ | 612,175 | $ | 702,795 | $ | 612,175 | $ | 673,854 | $ | 716,948 | $ | 769,515 | $ | 702,795 | ||||||||||||
Criticized loans (special mention or worse) ⁴ | $ | 986,957 | n/a | $ | 986,957 | $ | 1,186,174 | $ | 1,170,432 | n/a | n/a | |||||||||||||||
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. | ||||||||||||||||||||||||||
3 Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, this line represented the provision for loan and lease losses under the incurred model. | ||||||||||||||||||||||||||
4 Upon implementation of the new risk rating system on October 1, 2020, the reported Watch rating was retired and new Special Mention loans and Criticized loans ratings were introduced for monitoring and reporting purposes. |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Consolidated Income Statement (Unaudited) | ||||||||||||||||||||||||||
At and for the nine months ended: | At and for the three months ended: | |||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Interest income | ||||||||||||||||||||||||||
Loans | $ | 300,925 | $ | 342,014 | $ | 93,328 | $ | 100,274 | $ | 107,323 | $ | 107,522 | $ | 109,227 | ||||||||||||
Investment securities | 25,079 | 33,359 | 8,642 | 8,318 | 8,119 | 9,294 | 10,532 | |||||||||||||||||||
Federal funds sold and other | 1,214 | 1,278 | 654 | 405 | 155 | 105 | 112 | |||||||||||||||||||
Total interest income | 327,218 | 376,651 | 102,624 | 108,997 | 115,597 | 116,921 | 119,871 | |||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Deposits | 13,976 | 50,818 | 3,505 | 4,479 | 5,992 | 7,785 | 10,011 | |||||||||||||||||||
FHLB advances and other borrowings | 2,603 | 8,807 | 867 | 856 | 880 | 2,221 | 2,539 | |||||||||||||||||||
Subordinated debentures and subordinated notes payable | 2,398 | 3,619 | 789 | 792 | 817 | 897 | 1,070 | |||||||||||||||||||
Total interest expense | 18,977 | 63,244 | 5,161 | 6,127 | 7,689 | 10,903 | 13,620 | |||||||||||||||||||
Net interest income | 308,241 | 313,407 | 97,463 | 102,870 | 107,908 | 106,018 | 106,251 | |||||||||||||||||||
(Reversal of) provision for credit losses ¹ | (13,800) | 101,539 | (20,699) | (5,000) | 11,899 | 16,853 | 21,641 | |||||||||||||||||||
Net interest income after provision for loan and lease losses | 322,041 | 211,868 | 118,162 | 107,870 | 96,009 | 89,165 | 84,610 | |||||||||||||||||||
Noninterest income | ||||||||||||||||||||||||||
Service charges and other fees | 27,228 | 28,328 | 9,005 | 8,599 | 9,624 | 9,413 | 7,731 | |||||||||||||||||||
Wealth management fees | 9,688 | 8,859 | 3,477 | 3,182 | 3,029 | 2,913 | 2,773 | |||||||||||||||||||
Mortgage banking income, net | 9,937 | 5,179 | 2,157 | 3,690 | 4,090 | 3,780 | 2,422 | |||||||||||||||||||
Net gain (loss) on sale of securities and other assets | 247 | — | — | (1) | 248 | 7,890 | — | |||||||||||||||||||
Derivative interest expense | (9,692) | (5,181) | (3,117) | (3,182) | (3,393) | (3,541) | (3,040) | |||||||||||||||||||
Change in fair value of FVO loans and related derivatives | 2,480 | (37,658) | 4,110 | 42 | (1,672) | (24,648) | (25,001) | |||||||||||||||||||
Other derivative income (loss) | 5,683 | 950 | 1,530 | 3,255 | 898 | (890) | 2,242 | |||||||||||||||||||
Other | 5,141 | 3,490 | 2,209 | 1,608 | 1,324 | 1,133 | 1,190 | |||||||||||||||||||
Total noninterest income (loss) | 50,712 | 3,967 | 19,371 | 17,193 | 14,148 | (3,950) | (11,683) | |||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||
Salaries and employee benefits | 116,918 | 112,259 | 40,239 | 39,125 | 37,554 | 37,182 | 39,042 | |||||||||||||||||||
Data processing and communication | 19,825 | 17,713 | 7,054 | 6,545 | 6,226 | 6,742 | 5,817 | |||||||||||||||||||
Occupancy and equipment | 15,829 | 15,941 | 5,105 | 5,511 | 5,213 | 5,332 | 5,251 | |||||||||||||||||||
Professional fees | 12,293 | 16,409 | 4,644 | 3,734 | 3,915 | 5,552 | 7,382 | |||||||||||||||||||
Advertising | 1,635 | 2,573 | 602 | 477 | 556 | 823 | 750 | |||||||||||||||||||
Net (gain) loss on repossessed property and other related expenses | (469) | 8,508 | (760) | (54) | 345 | 4,350 | 2,475 | |||||||||||||||||||
Goodwill and intangible assets impairment | — | 742,352 | — | — | — | — | — | |||||||||||||||||||
Other ¹ | 11,026 | 16,677 | 3,621 | 3,765 | 3,640 | 14,955 | 6,332 | |||||||||||||||||||
Total noninterest expense | 177,057 | 932,432 | 60,505 | 59,103 | 57,449 | 74,936 | 67,049 | |||||||||||||||||||
Income (loss) before income taxes | 195,696 | (716,597) | 77,028 | 65,960 | 52,708 | 10,279 | 5,878 | |||||||||||||||||||
Provision for (benefit from) income taxes | 44,329 | (24,653) | 18,279 | 14,661 | 11,389 | (857) | 478 | |||||||||||||||||||
Net income (loss) | $ | 151,367 | $ | (691,944) | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||
1 For the three and nine months ended June 30, 2021, this line includes a $0.2 million and $0.3 million decrease in provision for unfunded commitments reserve, respectively. For the three and nine months ended June 30, 2020, increase in provision for unfunded commitments reserve of $2.2 million and $2.9 million, respectively, were recorded in other noninterest expense in the consolidated income statement. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||||
Summarized Consolidated Balance Sheet (Unaudited) | |||||||||||||||||||||||||||||
As of | |||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,756,345 | $ | 1,383,071 | $ | 1,061,796 | $ | 432,887 | $ | 311,585 | |||||||||||||||||||
Investment securities | 2,383,959 | 2,265,261 | 2,059,615 | 1,774,626 | 1,972,626 | ||||||||||||||||||||||||
Total loans | 8,477,783 | 9,011,352 | 9,517,876 | 10,076,142 | 10,313,999 | ||||||||||||||||||||||||
Allowance for credit losses ¹ | (270,298) | (295,953) | (308,794) | (149,887) | (148,158) | ||||||||||||||||||||||||
Loans, net | 8,207,485 | 8,715,399 | 9,209,082 | 9,926,255 | 10,165,841 | ||||||||||||||||||||||||
Other assets | 722,440 | 650,008 | 483,890 | 470,671 | 484,276 | ||||||||||||||||||||||||
Total assets | $ | 13,070,229 | $ | 13,013,739 | $ | 12,814,383 | $ | 12,604,439 | $ | 12,934,328 | |||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 2,958,488 | $ | 2,845,309 | $ | 2,858,455 | $ | 2,586,743 | $ | 2,592,376 | |||||||||||||||||||
Interest-bearing deposits | 8,579,289 | 8,718,745 | 8,514,863 | 8,422,036 | 8,558,238 | ||||||||||||||||||||||||
Total deposits | 11,537,777 | 11,564,054 | 11,373,318 | 11,008,779 | 11,150,614 | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | 80,167 | 63,153 | 80,355 | 65,506 | 70,362 | ||||||||||||||||||||||||
FHLB advances and other borrowings | 120,000 | 120,000 | 120,000 | 195,000 | 355,000 | ||||||||||||||||||||||||
Other liabilities | 171,216 | 172,613 | 172,209 | 172,221 | 197,708 | ||||||||||||||||||||||||
Total liabilities | 11,909,160 | 11,919,820 | 11,745,882 | 11,441,506 | 11,773,684 | ||||||||||||||||||||||||
Stockholders' equity | 1,161,069 | 1,093,919 | 1,068,501 | 1,162,933 | 1,160,644 | ||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 13,070,229 | $ | 13,013,739 | $ | 12,814,383 | $ | 12,604,439 | $ | 12,934,328 | |||||||||||||||||||
1 Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model. |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||||||||
Loan Portfolio Summary (Unaudited) | ||||||||||||||||||||||||||||||||
As of | Fiscal year-to-date: | |||||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | Change ($) | Change (%) | |||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Construction and development | $ | 433,293 | $ | 472,939 | $ | 482,462 | $ | 415,440 | $ | 17,853 | 4.3 | % | ||||||||||||||||||||
Owner-occupied CRE | 1,318,196 | 1,381,693 | 1,411,558 | 1,411,894 | (93,698) | (6.6) | % | |||||||||||||||||||||||||
Non-owner-occupied CRE | 2,244,335 | 2,340,206 | 2,660,682 | 2,910,965 | (666,630) | (22.9) | % | |||||||||||||||||||||||||
Multifamily residential real estate | 592,544 | 619,353 | 476,159 | 536,642 | 55,902 | 10.4 | % | |||||||||||||||||||||||||
Total commercial real estate | 4,588,368 | 4,814,191 | 5,030,861 | 5,274,941 | (686,573) | (13.0) | % | |||||||||||||||||||||||||
Agriculture | 1,438,499 | 1,549,926 | 1,635,952 | 1,724,350 | (285,851) | (16.6) | % | |||||||||||||||||||||||||
Commercial non-real estate | 1,710,938 | 1,897,569 | 2,054,478 | 2,181,656 | (470,718) | (21.6) | % | |||||||||||||||||||||||||
Residential real estate | 631,688 | 660,450 | 708,086 | 830,102 | (198,414) | (23.9) | % | |||||||||||||||||||||||||
Consumer and other ¹ | 108,290 | 89,216 | 88,499 | 100,553 | 7,737 | 7.7 | % | |||||||||||||||||||||||||
Total loans | 8,477,783 | 9,011,352 | 9,517,876 | 10,111,602 | (1,633,819) | (16.2) | % | |||||||||||||||||||||||||
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process ² | — | — | — | (35,460) | 35,460 | (100.0) | % | |||||||||||||||||||||||||
Total loans | $ | 8,477,783 | $ | 9,011,352 | $ | 9,517,876 | $ | 10,076,142 | $ | (1,598,359) | (15.9) | % | ||||||||||||||||||||
1 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts, leases. Loans in process are included in this category beginning first quarter of fiscal year 2021. | ||||||||||||||||||||||||||||||||
2 Beginning in the first quarter of fiscal year 2021, loan segments are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, and unearned net deferred fees and costs, as a part of the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||||||||||||||
Net Interest Margin (FTE) (Unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||||||||||||||
Average Balance | Interest (FTE) | Yield / Cost ¹ | Average Balance | Interest (FTE) | Yield / Cost ¹ | Average Balance | Interest (FTE) | Yield / Cost ¹ | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-bearing bank deposits ² | $ | 1,357,821 | $ | 306 | 0.09 | % | $ | 818,162 | $ | 213 | 0.11 | % | $ | 144,805 | $ | 112 | 0.31 | % | |||||||||||||||||
Other interest-earning assets | 121,981 | 348 | 1.14 | % | 71,330 | 192 | 1.09 | % | — | — | — | % | |||||||||||||||||||||||
Investment securities | 2,318,325 | 8,642 | 1.50 | % | 2,167,784 | 8,318 | 1.56 | % | 1,987,648 | 10,532 | 2.13 | % | |||||||||||||||||||||||
Non-ASC 310-30 loans, net ³ | 8,500,919 | 94,923 | 4.48 | % | 9,016,221 | 101,851 | 4.58 | % | 9,974,802 | 109,326 | 4.41 | % | |||||||||||||||||||||||
ASC 310-30 loans, net ⁴ | — | — | — | % | — | — | — | % | 49,250 | 1,502 | 12.27 | % | |||||||||||||||||||||||
Loans, net | 8,500,919 | 94,923 | 4.48 | % | 9,016,221 | 101,851 | 4.58 | % | 10,024,052 | 110,828 | 4.45 | % | |||||||||||||||||||||||
Total interest-earning assets | 12,299,046 | 104,219 | 3.40 | % | 12,073,497 | 110,574 | 3.71 | % | 12,156,505 | 121,472 | 4.02 | % | |||||||||||||||||||||||
Noninterest-earning assets | 743,109 | 602,004 | 598,159 | ||||||||||||||||||||||||||||||||
Total assets | $ | 13,042,155 | $ | 104,219 | 3.21 | % | $ | 12,675,501 | $ | 110,574 | 3.54 | % | $ | 12,754,664 | $ | 121,472 | 3.83 | % | |||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 2,863,176 | $ | 2,713,360 | $ | 2,414,567 | |||||||||||||||||||||||||||||
Interest-bearing deposits | 7,834,032 | $ | 2,618 | 0.13 | % | 7,550,507 | $ | 3,196 | 0.17 | % | 6,974,915 | $ | 5,604 | 0.32 | % | ||||||||||||||||||||
Time deposits | 863,923 | 887 | 0.41 | % | 1,004,405 | 1,283 | 0.52 | % | 1,430,246 | 4,407 | 1.24 | % | |||||||||||||||||||||||
Total deposits | 11,561,131 | 3,505 | 0.12 | % | 11,268,272 | 4,479 | 0.16 | % | 10,819,728 | 10,011 | 0.37 | % | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 74,785 | 14 | 0.08 | % | 69,282 | 13 | 0.08 | % | 64,645 | 15 | 0.09 | % | |||||||||||||||||||||||
FHLB advances and other borrowings | 120,000 | 853 | 2.85 | % | 120,000 | 843 | 2.85 | % | 500,248 | 2,524 | 2.03 | % | |||||||||||||||||||||||
Subordinated debentures and subordinated notes payable | 108,913 | 789 | 2.91 | % | 108,879 | 792 | 2.95 | % | 108,766 | 1,070 | 3.96 | % | |||||||||||||||||||||||
Total borrowings | 303,698 | 1,656 | 2.19 | % | 298,161 | 1,648 | 2.24 | % | 673,659 | 3,609 | 2.15 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | 11,864,829 | $ | 5,161 | 0.17 | % | 11,566,433 | $ | 6,127 | 0.21 | % | 11,493,387 | $ | 13,620 | 0.48 | % | ||||||||||||||||||||
Noninterest-bearing liabilities | 63,535 | 59,680 | 97,553 | ||||||||||||||||||||||||||||||||
Stockholders' equity | 1,113,791 | 1,049,388 | 1,163,724 | ||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 13,042,155 | $ | 12,675,501 | $ | 12,754,664 | |||||||||||||||||||||||||||||
Net interest spread | 3.04 | % | 3.33 | % | 3.35 | % | |||||||||||||||||||||||||||||
Net interest income and net interest margin (FTE) | $ | 99,058 | 3.23 | % | $ | 104,447 | 3.51 | % | $ | 107,852 | 3.57 | % | |||||||||||||||||||||||
Less: Tax equivalent adjustment | 1,595 | 1,577 | 1,601 | ||||||||||||||||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 97,463 | 3.18 | % | $ | 102,870 | 3.46 | % | $ | 106,251 | 3.52 | % | |||||||||||||||||||||||
1 Annualized for all partial-year periods. | |||||||||||||||||||||||||||||||||||
2 Interest income includes $0.1 million for the third quarter of fiscal year 2020 resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets. For the third quarter of fiscal year 2021, all amounts were included in other interesting-earning assets. | |||||||||||||||||||||||||||||||||||
3 Interest income includes $0.0 million and $0.2 million for the third quarter of fiscal years 2021 and 2020, respectively, resulting from accretion of purchase accounting discount associated with acquired loans. | |||||||||||||||||||||||||||||||||||
4 Beginning in the first quarter of fiscal year 2021, ASC 310-30 loans began being reported with non-ASC 310-30 loans. Upon adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, discounts on ASC 310-30 loans related to noncredit factors accreted to interest income were immaterial. |
GREAT WESTERN BANCORP, INC. | |||||||||||||||||||||||
Net Interest Margin (FTE) (Unaudited) | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||
Average Balance | Interest (FTE) | Yield / Cost ¹ | Average Balance | Interest (FTE) | Yield / Cost ¹ | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-bearing bank deposits ² | $ | 889,362 | $ | 622 | 0.09 | % | $ | 78,164 | $ | 1,278 | 2.18 | % | |||||||||||
Other interest-earning assets | 71,085 | 592 | 1.11 | % | — | — | — | % | |||||||||||||||
Investment securities | 2,123,979 | 25,079 | 1.58 | % | 1,959,681 | 33,359 | 2.27 | % | |||||||||||||||
Non-ASC 310-30 loans, net ³ | 9,028,273 | 305,695 | 4.53 | % | 9,675,039 | 342,042 | 4.72 | % | |||||||||||||||
ASC 310-30 loans, net ⁴ | — | — | — | % | 50,639 | 4,610 | 12.16 | % | |||||||||||||||
Loans, net | 9,028,273 | 305,695 | 4.53 | % | 9,725,678 | 346,652 | 4.76 | % | |||||||||||||||
Total interest-earning assets | 12,112,699 | 331,988 | 3.66 | % | 11,763,523 | 381,289 | 4.33 | % | |||||||||||||||
Noninterest-earning assets | 653,353 | 1,046,576 | |||||||||||||||||||||
Total assets | $ | 12,766,052 | $ | 331,988 | 3.48 | % | $ | 12,810,099 | $ | 381,289 | 3.98 | % | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Noninterest-bearing deposits | $ | 2,746,884 | $ | 2,111,445 | |||||||||||||||||||
Interest-bearing deposits | 7,554,204 | $ | 9,780 | 0.17 | % | 6,585,100 | $ | 31,060 | 0.63 | % | |||||||||||||
Time deposits | 1,018,492 | 4,196 | 0.55 | % | 1,655,059 | 19,758 | 1.59 | % | |||||||||||||||
Total deposits | 11,319,580 | 13,976 | 0.17 | % | 10,351,604 | 50,818 | 0.66 | % | |||||||||||||||
Securities sold under agreements to repurchase | 74,235 | 45 | 0.08 | % | 62,513 | 70 | 0.15 | % | |||||||||||||||
FHLB advances and other borrowings | 120,000 | 2,558 | 2.85 | % | 526,372 | 8,737 | 2.22 | % | |||||||||||||||
Subordinated debentures and subordinated notes payable | 108,880 | 2,398 | 2.94 | % | 108,715 | 3,619 | 4.45 | % | |||||||||||||||
Total borrowings | 303,115 | 5,001 | 2.21 | % | 697,600 | 12,426 | 2.38 | % | |||||||||||||||
Total interest-bearing liabilities | 11,622,695 | $ | 18,977 | 0.22 | % | 11,049,204 | $ | 63,244 | 0.76 | % | |||||||||||||
Noninterest-bearing liabilities | 61,605 | 97,475 | |||||||||||||||||||||
Stockholders' equity | 1,081,752 | 1,663,420 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 12,766,052 | $ | 12,810,099 | |||||||||||||||||||
Net interest spread | 3.26 | % | 3.22 | % | |||||||||||||||||||
Net interest income and net interest margin (FTE) | $ | 313,011 | 3.46 | % | $ | 318,045 | 3.61 | % | |||||||||||||||
Less: Tax equivalent adjustment | 4,770 | 4,638 | |||||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 308,241 | 3.40 | % | $ | 313,407 | 3.56 | % | |||||||||||||||
1 Annualized for all partial-year periods. | |||||||||||||||||||||||
2 Interest income includes $0.8 million for fiscal year 2020 resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets. For fiscal year 2021, all amounts were included in other interest-earning assets. | |||||||||||||||||||||||
3 Interest income includes $0.0 million and $1.2 million for the fiscal years 2021 and 2020, respectively, resulting from accretion of purchase accounting discount associated with acquired loans. | |||||||||||||||||||||||
4 Beginning in the first quarter of fiscal year 2021, ASC 310-30 loans began being reported with non-ASC 310-30 loans. Upon adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, discounts on ASC 310-30 loans related to noncredit factors accreted to interest income were immaterial. |
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||||||||||||
At and for the nine months ended: | At and for the three months ended: | |||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||
(dollars in thousands except share and per share amounts) | ||||||||||||||||||||||||||
Adjusted net income and adjusted earnings per common share: | ||||||||||||||||||||||||||
Net income (loss) - GAAP | $ | 151,367 | $ | (691,944) | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||
Add: COVID-19 related impairment of goodwill and certain intangible assets, net of tax | — | 713,013 | — | — | — | — | — | |||||||||||||||||||
Add: COVID-19 impact on credit and other related charges, net of tax | — | 56,685 | — | — | — | — | — | |||||||||||||||||||
Adjusted net income | $ | 151,367 | $ | 77,754 | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||
Weighted average diluted common shares outstanding | 55,409,573 | 55,788,751 | 55,524,979 | 55,456,399 | 55,247,343 | 55,164,548 | 55,145,619 | |||||||||||||||||||
Earnings per common share - diluted | $ | 2.74 | $ | (12.40) | $ | 1.06 | $ | 0.93 | $ | 0.75 | $ | 0.20 | $ | 0.10 | ||||||||||||
Adjusted earnings per common share - diluted | $ | 2.74 | $ | 1.39 | $ | 1.06 | $ | 0.93 | $ | 0.75 | $ | 0.20 | $ | 0.10 | ||||||||||||
GREAT WESTERN BANCORP, INC. | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) | ||||||||||||||||||||||||||
At and for the nine months ended: | At and for the three months ended: | |||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||
(dollars in thousands except share and per share amounts) | ||||||||||||||||||||||||||
Pre-tax pre-provision income ("PTPP"): | ||||||||||||||||||||||||||
Income (loss) before income taxes - GAAP | $ | 195,696 | $ | (716,597) | $ | 77,028 | $ | 65,960 | $ | 52,708 | $ | 10,279 | $ | 5,878 | ||||||||||||
Add: Provision for credit losses - GAAP | (13,800) | 101,539 | (20,699) | (5,000) | 11,899 | 16,853 | 21,641 | |||||||||||||||||||
Add: Change in fair value of FVO loans and related derivatives - GAAP | (2,480) | 37,658 | (4,110) | (42) | 1,672 | 24,648 | 25,001 | |||||||||||||||||||
Add: Goodwill impairment - GAAP | — | 742,352 | — | — | — | — | — | |||||||||||||||||||
Pre-tax pre-provision income | $ | 179,416 | $ | 164,952 | $ | 52,219 | $ | 60,918 | $ | 66,279 | $ | 51,780 | $ | 52,520 | ||||||||||||
Tangible net income and return on average tangible common equity: | ||||||||||||||||||||||||||
Net income (loss) - GAAP | $ | 151,367 | $ | (691,944) | $ | 58,749 | $ | 51,299 | $ | 41,319 | $ | 11,136 | $ | 5,400 | ||||||||||||
Add: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets, net of tax | 775 | 714,078 | 253 | 261 | 261 | 261 | 261 | |||||||||||||||||||
Tangible net income (loss) | $ | 152,142 | $ | 22,134 | $ | 59,002 | $ | 51,560 | $ | 41,580 | $ | 11,397 | $ | 5,661 | ||||||||||||
Average common equity | $ | 1,081,752 | $ | 1,663,420 | $ | 1,113,791 | $ | 1,049,388 | $ | 1,082,077 | $ | 1,174,996 | $ | 1,163,724 | ||||||||||||
Less: Average goodwill and other intangible assets | 5,744 | 498,644 | 5,485 | 5,742 | 6,004 | 6,265 | 6,527 | |||||||||||||||||||
Average tangible common equity | $ | 1,076,008 | $ | 1,164,776 | $ | 1,108,306 | $ | 1,043,646 | $ | 1,076,073 | $ | 1,168,731 | $ | 1,157,197 | ||||||||||||
Return on average common equity * | 18.7 | % | (55.6) | % | 21.2 | % | 19.8 | % | 15.2 | % | 3.8 | % | 1.9 | % | ||||||||||||
Return on average tangible common equity ** | 18.9 | % | 2.5 | % | 21.4 | % | 20.0 | % | 15.3 | % | 3.9 | % | 2.0 | % | ||||||||||||
* 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), on non-ASC 310-30 loans: | ||||||||||||||||||||||||||
Net interest income - GAAP | $ | 308,241 | $ | 313,407 | $ | 97,463 | $ | 102,870 | $ | 107,908 | $ | 106,018 | $ | 106,251 | ||||||||||||
Add: Tax equivalent adjustment | 4,770 | 4,638 | 1,595 | 1,577 | 1,598 | 1,508 | 1,601 | |||||||||||||||||||
Net interest income (FTE) | 313,011 | 318,045 | 99,058 | 104,447 | 109,506 | 107,526 | 107,852 | |||||||||||||||||||
Add: Derivative interest expense | (9,692) | (5,180) | (3,117) | (3,182) | (3,393) | (3,541) | (3,040) | |||||||||||||||||||
Adjusted net interest income (FTE) | $ | 303,319 | $ | 312,865 | $ | 95,941 | $ | 101,265 | $ | 106,113 | $ | 103,985 | $ | 104,812 | ||||||||||||
Average interest-earning assets | $12,112,699 | $11,763,523 | $12,299,046 | $12,073,497 | $11,965,555 | $12,184,093 | $12,156,505 | |||||||||||||||||||
Net interest margin (FTE) * | 3.46 | % | 3.61 | % | 3.23 | % | 3.51 | % | 3.63 | % | 3.51 | % | 3.57 | % | ||||||||||||
Adjusted net interest margin (FTE) ** | 3.35 | % | 3.55 | % | 3.13 | % | 3.40 | % | 3.52 | % | 3.40 | % | 3.47 | % | ||||||||||||
* Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. | ||||||||||||||||||||||||||
** Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. | ||||||||||||||||||||||||||
Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non-ASC 310-30 loans: | ||||||||||||||||||||||||||
Interest income - GAAP | $ | 300,925 | $ | 337,404 | $ | 93,328 | $ | 100,274 | $ | 107,323 | $ | 106,305 | $ | 107,725 | ||||||||||||
Add: Tax equivalent adjustment | 4,770 | 4,638 | 1,595 | 1,577 | 1,598 | 1,508 | 1,601 | |||||||||||||||||||
Interest income (FTE) | 305,695 | 342,042 | 94,923 | 101,851 | 108,921 | 107,813 | 109,326 | |||||||||||||||||||
Add: Derivative interest expense | (9,692) | (5,180) | (3,117) | (3,182) | (3,393) | (3,541) | (3,040) | |||||||||||||||||||
Adjusted interest income (FTE) | $ | 296,003 | $ | 336,862 | $ | 91,806 | $ | 98,669 | $ | 105,528 | $ | 104,272 | $ | 106,286 | ||||||||||||
Average non-ASC310-30 loans | $9,028,273 | $9,675,039 | $8,500,919 | $9,016,221 | $9,567,679 | $9,977,591 | $9,974,802 | |||||||||||||||||||
Yield (FTE) * | 4.53 | % | 4.72 | % | 4.48 | % | 4.58 | % | 4.52 | % | 4.30 | % | 4.41 | % | ||||||||||||
Adjusted yield (FTE) ** | 4.38 | % | 4.65 | % | 4.33 | % | 4.44 | % | 4.38 | % | 4.16 | % | 4.29 | % | ||||||||||||
* 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) | ||||||||||||||||||||||||||
At and for the nine months ended: | At and for the three months ended: | |||||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | June 30, 2021 | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | ||||||||||||||||||||
(dollars in thousands except share and per share amounts) | ||||||||||||||||||||||||||
Efficiency ratio: | ||||||||||||||||||||||||||
Total revenue - GAAP | $ | 358,953 | $ | 317,374 | $ | 116,834 | $ | 120,063 | $ | 122,056 | $ | 102,068 | $ | 94,568 | ||||||||||||
Add: Tax equivalent adjustment | 4,770 | 4,638 | 1,595 | 1,577 | 1,598 | 1,508 | 1,601 | |||||||||||||||||||
Total revenue (FTE) | $ | 363,723 | $ | 322,012 | $ | 118,429 | $ | 121,640 | $ | 123,654 | $ | 103,576 | $ | 96,169 | ||||||||||||
Noninterest expense | $ | 177,057 | $ | 932,432 | $ | 60,505 | $ | 59,103 | $ | 57,449 | $ | 74,936 | $ | 67,049 | ||||||||||||
Less: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets | 775 | 743,484 | 253 | 261 | 261 | 261 | 278 | |||||||||||||||||||
Tangible noninterest expense | $ | 176,282 | $ | 188,948 | $ | 60,252 | $ | 58,842 | $ | 57,188 | $ | 74,675 | $ | 66,771 | ||||||||||||
Efficiency ratio * | 48.5 | % | 58.7 | % | 50.9 | % | 48.4 | % | 46.2 | % | 72.1 | % | 69.4 | % | ||||||||||||
* 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 | $ | 1,161,069 | $ | 1,160,644 | $ | 1,161,069 | $ | 1,093,919 | $ | 1,068,501 | $ | 1,162,933 | $ | 1,160,644 | ||||||||||||
Less: Goodwill and other intangible assets | 5,390 | 6,425 | 5,390 | 5,643 | 5,904 | 6,164 | 6,425 | |||||||||||||||||||
Tangible common equity | $ | 1,155,679 | $ | 1,154,219 | $ | 1,155,679 | $ | 1,088,276 | $ | 1,062,597 | $ | 1,156,769 | $ | 1,154,219 | ||||||||||||
Total assets | $ | 13,070,229 | $ | 12,934,328 | $ | 13,070,229 | $ | 13,013,739 | $ | 12,814,383 | $ | 12,604,439 | $ | 12,934,328 | ||||||||||||
Less: Goodwill and other intangible assets | 5,390 | 6,425 | 5,390 | 5,643 | 5,904 | 6,164 | 6,425 | |||||||||||||||||||
Tangible assets | $ | 13,064,839 | $ | 12,927,903 | $ | 13,064,839 | $ | 13,008,096 | $ | 12,808,479 | $ | 12,598,275 | $ | 12,927,903 | ||||||||||||
Tangible common equity to tangible assets | 8.8 | % | 8.9 | % | 8.8 | % | 8.4 | % | 8.3 | % | 9.2 | % | 8.9 | % | ||||||||||||
Tangible book value per share: | ||||||||||||||||||||||||||
Total stockholders' equity | $ | 1,161,069 | $ | 1,160,644 | $ | 1,161,069 | $ | 1,093,919 | $ | 1,068,501 | $ | 1,162,933 | $ | 1,160,644 | ||||||||||||
Less: Goodwill and other intangible assets | 5,390 | 6,425 | 5,390 | 5,643 | 5,904 | 6,164 | 6,425 | |||||||||||||||||||
Tangible common equity | $ | 1,155,679 | $ | 1,154,219 | $ | 1,155,679 | $ | 1,088,276 | $ | 1,062,597 | $ | 1,156,769 | $ | 1,154,219 | ||||||||||||
Common shares outstanding | 55,116,095 | 55,014,047 | 55,116,095 | 55,111,403 | 55,105,105 | 55,014,189 | 55,014,047 | |||||||||||||||||||
Book value per share - GAAP | $ | 21.07 | $ | 21.10 | $ | 21.07 | $ | 19.85 | $ | 19.39 | $ | 21.14 | $ | 21.10 | ||||||||||||
Tangible book value per share | $ | 20.97 | $ | 20.98 | $ | 20.97 | $ | 19.75 | $ | 19.28 | $ | 21.03 | $ | 20.98 |
&UP1SIC>6%N/2(U
M,"XP,# P,# B('AM<$0!YJ'I0>OA[I'Q,?/A]I'Y0?OQ_J
M(!4@02!L()@@Q"#P(1PA2"%U(:$ASB'[(B