Great Western Bancorp, Inc. Announces Earnings for the Quarter Ending on September 30, 2021
Great Western Bancorp reported a net income of $51.9 million, or $0.93 per diluted share, for the quarter ending September 30, 2021, down from $58.7 million, or $1.06 per share in the previous quarter. Net interest income fell to $95.1 million, a decrease from $99.1 million. The total loans decreased by $292.7 million to $8.19 billion, while total deposits declined $227.3 million to $11.31 billion. A pending merger with First Interstate Bancorp is expected to close in Q1 2022.
- Asset quality improved with nonaccrual loans down 5.8% from the prior quarter.
- Total capital ratio increased to 16.3%, up from 16.0%.
- Net income decreased by $6.8 million, marking a 11.6% decline from the previous quarter.
- Net interest income fell by $4.0 million, reflecting a 4.0% decrease in interest income.
Highlights for the Quarter Ending on
-
Net income of
, or$51.9 million per diluted share, down from$0.93 , or$58.7 million per diluted share$1.06 -
Net interest income1 of
, down from$95.1 million , with net interest margin1 of$99.1 million 3.10% , down from3.23% -
Total loans of
, down$8.19 billion , including a reduction of$292.7 million in Paycheck Protection Program ("PPP") loans$152.9 million -
Total deposits of
, down$11.31 billion $227.3 million -
Allowance for credit losses ("ACL") of
, down from$246.0 million , and a ratio of ACL to total loans of$270.3 million 3.01% , down from3.19% -
Nonaccrual loans of
, down$197.9 million , or$12.2 million 5.8% , and other repossessed property of , down$4.5 million , or$7.0 million 61.0% -
Net charge-offs of
, or$4.1 million 0.20% of average total loans (annualized), down from and$5.2 million 0.24% , respectively -
Total capital ratio of
16.3% , up from16.0% ; tier 1 capital ratio of15.1% , up from14.5% ; common equity tier 1 capital ratio of14.3% , up from13.7% -
Return on average common equity of
17.5% -
The Company's Board of Directors declared a quarterly dividend of
per share$0.05
"The progress this quarter caps off what has been a productive fiscal year for our company," said
I am proud of our team's performance this year. This improvement along with our announced partnership with First Interstate will accelerate our ability to improve delivery of products and services to our customers and support future growth."
Pending Merger of
On
Net Interest Income and Net Interest Margin1
Net interest income was
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
The efficiency ratio2 was
Provision for Income Taxes
Income tax expense was
Asset Quality
The ACL was
The ratio of ACL to total loans was
Net charge-offs were
Included within total loans are approximately
Nonaccrual loans were
Classified loans were
Total other repossessed property balances were
A summary of total credit-related charges incurred during the current and comparable twelve month periods and current, previous and comparable quarters is presented below:
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Summary of Credit-Related Charges (Unaudited) |
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For the twelve months ended: |
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For the three months ended: |
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Item |
Included within F/S Line Item(s): |
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(dollars in thousands) |
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(Reversal of) provision for credit losses ¹ |
(Reversal of) provision for credit losses ¹ |
$ |
(34,734) |
|
$ |
118,392 |
|
|
$ |
(20,934) |
|
$ |
(20,699) |
|
$ |
16,853 |
|
Increase (decrease) provision for unfunded commitments reserve ¹ |
Other noninterest expense ¹ |
— |
|
1,939 |
|
|
— |
|
— |
|
(920) |
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Net other repossessed property charges (income) |
Net (gain) loss on repossessed property and other related expenses |
(1,782) |
|
12,858 |
|
|
(1,313) |
|
(760) |
|
4,350 |
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Net (recovery) reversal of interest income on nonaccrual loans |
Interest income on loans |
(7,660) |
|
4,894 |
|
|
(1,526) |
|
(2,514) |
|
730 |
|
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Net realized credit loss on derivatives |
Change in fair value of FVO loans and related derivatives |
210 |
|
2,952 |
|
|
— |
|
— |
|
1,243 |
|
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Loan fair value adjustment related to credit |
Change in fair value of FVO loans and related derivatives |
(3,664) |
|
59,356 |
|
|
(990) |
|
(4,111) |
|
23,407 |
|
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Total credit-related charges |
|
$ |
(47,630) |
|
$ |
200,391 |
|
|
$ |
(24,763) |
|
$ |
(28,084) |
|
$ |
45,663 |
|
1 Beginning in the first quarter of fiscal year 2021, increase (decrease) in unfunded commitment reserve is included in provision for credit losses. |
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We continue to evaluate the impact of the COVID-19 pandemic on our loan portfolio. Industries such as hotels & resorts (excluding casino hotels), casino hotels, restaurants, arts and entertainment, oil & energy, retail malls, airlines and healthcare have experienced varied business disruptions due to COVID-19. Since the beginning of the pandemic we have been closely monitoring the following loan segments (excluding PPP loans) given elevated industry risk from COVID-19: hotels & resorts (excluding casino hotels) with
Loans and Deposits
Total loans outstanding were
We have supported PPP, having provided over 4,800 loans for
Total deposits were
Capital
Total capital and tier 1 capital ratios were
On
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve inherent risks and uncertainties. Statements about GWBI’s, FIBK's or the combined company's expectations, beliefs, plans, strategies, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. In particular, the statements included in this press release concerning GWBI’s expected performance and strategy, strategies for managing troubled loans, the appropriateness of the ACL, the impact on the business arising from the COVID-19 pandemic, the interest rate environment and the business combination transaction between GWBI and FIBK (the "Transaction") are not historical facts and are forward-looking. Accordingly, the forward-looking statements in this press release are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. In addition to factors previously disclosed in GWBI's and FIBK's reports filed with the
All forward-looking statements attributable to GWBI, FIBK or the combined company, or persons acting on GWBI's or FIBK's behalf, are expressly qualified in their entirety by the cautionary statements set forth above. Forward-looking statements speak only as of the date they are made and GWBI and FIBK do not undertake or assume any obligation to update publicly any of these statements to reflect actual results, new information or future events, changes in assumptions, or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If GWBI or FIBK update one or more forward-looking statements, no inference should be drawn that GWBI or FIBK will make additional updates with respect to those or other forward-looking statements. Further information regarding GWBI, FIBK and the factors which could affect the forward-looking statements contained herein can be found in GWBI's Annual Report on Form 10-K for the fiscal year ended
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Consolidated Financial Data (Unaudited) |
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At and for the twelve months ended: |
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At and for the three months ended: |
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(dollars in thousands, except share and per share amounts) |
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Operating Data: |
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Interest income (FTE) |
$ |
431,488 |
|
|
$ |
499,718 |
|
|
|
$ |
99,500 |
|
|
$ |
104,219 |
|
$ |
110,574 |
|
$ |
117,195 |
$ |
118,429 |
|
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Interest expense |
$ |
23,417 |
|
|
$ |
74,147 |
|
|
|
$ |
4,440 |
|
|
$ |
5,161 |
|
$ |
6,127 |
|
$ |
7,689 |
$ |
10,903 |
|
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Noninterest income (loss) |
$ |
66,564 |
|
|
$ |
17 |
|
|
|
$ |
15,852 |
|
|
$ |
19,371 |
|
$ |
17,193 |
|
$ |
14,148 |
$ |
(3,950 |
) |
|||||||
Noninterest expense |
$ |
240,756 |
|
|
$ |
1,007,368 |
|
|
|
$ |
63,699 |
|
|
$ |
60,505 |
|
$ |
59,103 |
|
$ |
57,449 |
$ |
74,936 |
|
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(Reversal of) provision for credit losses ³ |
$ |
(34,734 |
) |
|
$ |
118,392 |
|
|
|
$ |
(20,934 |
) |
|
$ |
(20,699 |
) |
$ |
(5,000 |
) |
$ |
11,899 |
$ |
16,853 |
|
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Net income (loss) |
$ |
203,258 |
|
|
$ |
(680,808 |
) |
|
|
$ |
51,891 |
|
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
$ |
11,136 |
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Adjusted net income ¹ |
$ |
203,258 |
|
|
$ |
88,890 |
|
|
|
$ |
51,891 |
|
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
$ |
11,136 |
|
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Common shares outstanding |
55,116,503 |
|
|
55,014,189 |
|
|
|
55,116,503 |
|
|
55,116,095 |
|
55,111,403 |
|
55,105,105 |
|
55,014,189 |
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Weighted average diluted common shares outstanding |
55,443,909 |
|
|
55,612,251 |
|
|
|
55,546,917 |
|
|
55,524,979 |
|
55,456,399 |
|
55,247,343 |
|
55,164,548 |
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Earnings per common share - diluted |
$ |
3.67 |
|
|
$ |
(12.24 |
) |
|
|
$ |
0.93 |
|
|
$ |
1.06 |
|
$ |
0.93 |
|
$ |
0.75 |
|
$ |
0.20 |
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Adjusted earnings per common share - diluted ¹ |
$ |
3.67 |
|
|
$ |
1.60 |
|
|
|
$ |
0.93 |
|
|
$ |
1.06 |
|
$ |
0.93 |
|
$ |
0.75 |
|
$ |
0.20 |
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Performance Ratios: |
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Net interest margin (FTE) ¹ ² |
3.36 |
|
% |
3.59 |
|
% |
|
3.10 |
|
% |
3.23 |
% |
3.51 |
% |
3.63 |
% |
3.51 |
% |
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Adjusted net interest margin (FTE) ¹ ² |
3.26 |
|
% |
3.51 |
|
% |
|
3.00 |
|
% |
3.13 |
% |
3.40 |
% |
3.52 |
% |
3.40 |
% |
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Return on average total assets ² |
1.59 |
|
% |
(5.32 |
) |
% |
|
1.59 |
|
% |
1.81 |
% |
1.64 |
% |
1.30 |
% |
0.35 |
% |
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Return on average common equity ² |
18.4 |
|
% |
(44.2 |
) |
% |
|
17.5 |
|
% |
21.2 |
% |
19.8 |
% |
15.2 |
% |
3.8 |
% |
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Return on average tangible common equity ¹ ² |
18.6 |
|
% |
2.9 |
|
% |
|
17.7 |
|
% |
21.4 |
% |
20.0 |
% |
15.3 |
% |
3.9 |
% |
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Efficiency ratio ¹ |
50.5 |
|
% |
61.9 |
|
% |
|
57.2 |
|
% |
50.9 |
% |
48.4 |
% |
46.2 |
% |
72.1 |
% |
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Capital: |
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Tier 1 capital ratio |
15.1 |
|
% |
11.8 |
|
% |
|
15.1 |
|
% |
14.5 |
% |
13.5 |
% |
12.7 |
% |
11.8 |
% |
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Total capital ratio |
16.3 |
|
% |
13.3 |
|
% |
|
16.3 |
|
% |
16.0 |
% |
15.1 |
% |
14.3 |
% |
13.3 |
% |
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Tier 1 leverage ratio |
10.6 |
|
% |
9.4 |
|
% |
|
10.6 |
|
% |
10.1 |
% |
10.0 |
% |
9.7 |
% |
9.4 |
% |
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Common equity tier 1 ratio |
14.3 |
|
% |
11.0 |
|
% |
|
14.3 |
|
% |
13.7 |
% |
12.8 |
% |
12.0 |
% |
11.0 |
% |
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Tangible common equity / tangible assets ¹ |
9.3 |
|
% |
9.2 |
|
% |
|
9.3 |
|
% |
8.8 |
% |
8.4 |
% |
8.3 |
% |
9.2 |
% |
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Book value per share - GAAP |
$ |
21.80 |
|
|
$ |
21.14 |
|
|
|
$ |
21.80 |
|
|
$ |
21.07 |
|
$ |
19.85 |
|
$ |
19.39 |
|
$ |
21.14 |
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Tangible book value per share ¹ |
$ |
21.71 |
|
|
$ |
21.03 |
|
|
|
$ |
21.71 |
|
|
$ |
20.97 |
|
$ |
19.75 |
|
$ |
19.28 |
|
$ |
21.03 |
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Asset Quality: |
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Nonaccrual loans |
$ |
197,936 |
|
|
$ |
324,946 |
|
|
|
$ |
197,936 |
|
$ |
210,083 |
|
$ |
284,541 |
|
$ |
292,357 |
$ |
324,946 |
|
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Other repossessed property |
$ |
4,479 |
|
|
$ |
20,034 |
|
|
|
$ |
4,479 |
|
$ |
11,498 |
|
$ |
17,529 |
|
$ |
18,086 |
$ |
20,034 |
|
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Nonaccrual loans / total loans |
2.42 |
|
% |
3.22 |
|
% |
|
2.42 |
|
% |
2.48 |
% |
3.16 |
% |
3.07 |
% |
3.22 |
% |
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Net charge-offs (recoveries) |
$ |
47,550 |
|
|
$ |
39,279 |
|
|
|
$ |
4,140 |
|
$ |
5,211 |
|
$ |
7,841 |
|
$ |
30,358 |
$ |
15,124 |
|
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Net charge-offs (recoveries) / average total loans ² |
0.52 |
|
% |
0.40 |
|
% |
|
0.20 |
|
% |
0.24 |
% |
0.34 |
% |
1.22 |
% |
0.59 |
% |
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Allowance for credit losses / total loans |
3.01 |
|
% |
1.49 |
|
% |
|
3.01 |
|
% |
3.19 |
% |
3.28 |
% |
3.24 |
% |
1.49 |
% |
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Watch-rated loans (under former risk rating system) ⁴ |
n/a |
|
$ |
982,841 |
|
|
|
n/a |
|
n/a |
|
n/a |
|
n/a |
$ |
982,841 |
|
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Special mention loans ⁴ |
$ |
351,499 |
|
|
n/a |
|
|
$ |
351,499 |
|
$ |
374,782 |
|
$ |
512,320 |
|
$ |
453,484 |
|
n/a |
|
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Classified loans (substandard or worse) |
$ |
604,877 |
|
|
$ |
769,515 |
|
|
|
$ |
604,877 |
|
$ |
612,175 |
|
$ |
673,854 |
|
$ |
716,948 |
|
$ |
769,515 |
|
|||||||
Criticized loans (special mention or worse) ⁴ |
$ |
956,376 |
|
|
n/a |
|
|
$ |
956,376 |
|
$ |
986,957 |
|
$ |
1,186,174 |
|
$ |
1,170,432 |
|
n/a |
|
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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. |
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2 Annualized for all partial-year periods. |
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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 |
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4 Upon implementation of the new risk rating system on |
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Consolidated Income Statement (Unaudited) |
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At and for the twelve months ended: |
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At and for the three months ended: |
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(dollars in thousands) |
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Interest income |
|
|
|
|
|
|
|
|
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Loans |
$ |
388,977 |
|
$ |
449,536 |
|
|
$ |
88,052 |
|
$ |
93,328 |
|
$ |
100,274 |
|
$ |
107,323 |
|
$ |
107,522 |
|
Investment securities |
33,995 |
|
42,653 |
|
|
8,916 |
|
8,642 |
|
8,318 |
|
8,119 |
|
9,294 |
|
|||||||
Federal funds sold and other |
2,172 |
|
1,383 |
|
|
958 |
|
654 |
|
405 |
|
155 |
|
105 |
|
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Total interest income |
425,144 |
|
493,572 |
|
|
97,926 |
|
102,624 |
|
108,997 |
|
115,597 |
|
116,921 |
|
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Interest expense |
|
|
|
|
|
|
|
|
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Deposits |
16,754 |
|
58,603 |
|
|
2,778 |
|
3,505 |
|
4,479 |
|
5,992 |
|
7,785 |
|
|||||||
FHLB advances and other borrowings |
3,481 |
|
11,028 |
|
|
878 |
|
867 |
|
856 |
|
880 |
|
2,221 |
|
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Subordinated debentures and subordinated notes payable |
3,182 |
|
4,516 |
|
|
784 |
|
789 |
|
792 |
|
817 |
|
897 |
|
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Total interest expense |
23,417 |
|
74,147 |
|
|
4,440 |
|
5,161 |
|
6,127 |
|
7,689 |
|
10,903 |
|
|||||||
Net interest income |
401,727 |
|
419,425 |
|
|
93,486 |
|
97,463 |
|
102,870 |
|
107,908 |
|
106,018 |
|
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(Reversal of) provision for credit losses ¹ |
(34,734) |
|
118,392 |
|
|
(20,934) |
|
(20,699) |
|
(5,000) |
|
11,899 |
|
16,853 |
|
|||||||
Net interest income after provision for loan and lease losses |
436,461 |
|
301,033 |
|
|
114,420 |
|
118,162 |
|
107,870 |
|
96,009 |
|
89,165 |
|
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Noninterest income |
|
|
|
|
|
|
|
|
||||||||||||||
Service charges and other fees |
37,129 |
|
37,741 |
|
|
9,901 |
|
9,005 |
|
8,599 |
|
9,624 |
|
9,413 |
|
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Wealth management fees |
13,347 |
|
11,772 |
|
|
3,659 |
|
3,477 |
|
3,182 |
|
3,029 |
|
2,913 |
|
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Mortgage banking income, net |
11,337 |
|
8,959 |
|
|
1,400 |
|
2,157 |
|
3,690 |
|
4,090 |
|
3,780 |
|
|||||||
Net gain (loss) on sale of securities and other assets |
249 |
|
7,890 |
|
|
2 |
|
— |
|
(1) |
|
248 |
|
7,890 |
|
|||||||
Derivative interest expense |
(12,727) |
|
(8,722) |
|
|
(3,035) |
|
(3,117) |
|
(3,182) |
|
(3,393) |
|
(3,541) |
|
|||||||
Change in fair value of FVO loans and related derivatives |
3,468 |
|
(62,306) |
|
|
988 |
|
4,110 |
|
42 |
|
(1,672) |
|
(24,648) |
|
|||||||
Other derivative income (loss) |
6,500 |
|
60 |
|
|
817 |
|
1,530 |
|
3,255 |
|
898 |
|
(890) |
|
|||||||
Other |
7,261 |
|
4,623 |
|
|
2,120 |
|
2,209 |
|
1,608 |
|
1,324 |
|
1,133 |
|
|||||||
Total noninterest income (loss) |
66,564 |
|
17 |
|
|
15,852 |
|
19,371 |
|
17,193 |
|
14,148 |
|
(3,950) |
|
|||||||
Noninterest expense |
|
|
|
|
|
|
|
|
||||||||||||||
Salaries and employee benefits |
154,288 |
|
149,441 |
|
|
37,370 |
|
40,239 |
|
39,125 |
|
37,554 |
|
37,182 |
|
|||||||
Data processing and communication |
27,526 |
|
24,455 |
|
|
7,701 |
|
7,054 |
|
6,545 |
|
6,226 |
|
6,742 |
|
|||||||
Occupancy and equipment |
21,270 |
|
21,273 |
|
|
5,441 |
|
5,105 |
|
5,511 |
|
5,213 |
|
5,332 |
|
|||||||
Professional fees |
21,332 |
|
21,961 |
|
|
9,039 |
|
4,644 |
|
3,734 |
|
3,915 |
|
5,552 |
|
|||||||
Advertising |
2,756 |
|
3,396 |
|
|
1,121 |
|
602 |
|
477 |
|
556 |
|
823 |
|
|||||||
Net (gain) loss on repossessed property and other related expenses |
(1,782) |
|
12,858 |
|
|
(1,313) |
|
(760) |
|
(54) |
|
345 |
|
4,350 |
|
|||||||
|
— |
|
742,352 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||
Other |
15,366 |
|
31,632 |
|
|
4,340 |
|
3,621 |
|
3,765 |
|
3,640 |
|
14,955 |
|
|||||||
Total noninterest expense |
240,756 |
|
1,007,368 |
|
|
63,699 |
|
60,505 |
|
59,103 |
|
57,449 |
|
74,936 |
|
|||||||
Income (loss) before income taxes |
262,269 |
|
(706,318) |
|
|
66,573 |
|
77,028 |
|
65,960 |
|
52,708 |
|
10,279 |
|
|||||||
Provision for (benefit from) income taxes |
59,011 |
|
(25,510) |
|
|
14,682 |
|
18,279 |
|
14,661 |
|
11,389 |
|
(857) |
|
|||||||
Net income (loss) |
$ |
203,258 |
|
$ |
(680,808) |
|
|
$ |
51,891 |
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
|
$ |
11,136 |
|
1 For the three and twelve months ended |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Summarized Consolidated Balance Sheet (Unaudited) |
|
|
|
|
|
|
|
|
|||||||||||
|
|
||||||||||||||||||
|
As of |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(dollars in thousands) |
||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
1,552,260 |
|
|
$ |
1,756,345 |
|
|
$ |
1,383,071 |
|
|
$ |
1,061,796 |
|
|
$ |
432,887 |
|
Investment securities |
2,710,953 |
|
|
2,383,959 |
|
|
2,265,261 |
|
|
2,059,615 |
|
|
1,774,626 |
|
|||||
Total loans |
8,185,053 |
|
|
8,477,783 |
|
|
9,011,352 |
|
|
9,517,876 |
|
|
10,076,142 |
|
|||||
Allowance for credit losses ¹ |
(246,038) |
|
|
(270,298) |
|
|
(295,953) |
|
|
(308,794) |
|
|
(149,887) |
|
|||||
Loans, net |
7,939,015 |
|
|
8,207,485 |
|
|
8,715,399 |
|
|
9,209,082 |
|
|
9,926,255 |
|
|||||
Other assets |
709,240 |
|
|
722,440 |
|
|
650,008 |
|
|
483,890 |
|
|
470,671 |
|
|||||
Total assets |
$ |
12,911,468 |
|
|
$ |
13,070,229 |
|
|
$ |
13,013,739 |
|
|
$ |
12,814,383 |
|
|
$ |
12,604,439 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits |
$ |
2,608,579 |
|
|
$ |
2,958,488 |
|
|
$ |
2,845,309 |
|
|
$ |
2,858,455 |
|
|
$ |
2,586,743 |
|
Interest-bearing deposits |
8,701,887 |
|
|
8,579,289 |
|
|
8,718,745 |
|
|
8,514,863 |
|
|
8,422,036 |
|
|||||
Total deposits |
11,310,466 |
|
|
11,537,777 |
|
|
11,564,054 |
|
|
11,373,318 |
|
|
11,008,779 |
|
|||||
Securities sold under agreements to repurchase |
91,289 |
|
|
80,167 |
|
|
63,153 |
|
|
80,355 |
|
|
65,506 |
|
|||||
FHLB advances and other borrowings |
120,000 |
|
|
120,000 |
|
|
120,000 |
|
|
120,000 |
|
|
195,000 |
|
|||||
Other liabilities |
188,234 |
|
|
171,216 |
|
|
172,613 |
|
|
172,209 |
|
|
172,221 |
|
|||||
Total liabilities |
11,709,989 |
|
|
11,909,160 |
|
|
11,919,820 |
|
|
11,745,882 |
|
|
11,441,506 |
|
|||||
Stockholders' equity |
1,201,479 |
|
|
1,161,069 |
|
|
1,093,919 |
|
|
1,068,501 |
|
|
1,162,933 |
|
|||||
Total liabilities and stockholders' equity |
$ |
12,911,468 |
|
|
$ |
13,070,229 |
|
|
$ |
13,013,739 |
|
|
$ |
12,814,383 |
|
|
$ |
12,604,439 |
|
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 |
|||||||||||||||||||
|
|||||||||||||||||||||||||
Loan Portfolio Summary (Unaudited) |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
As of |
|
|
|
Fiscal year-to-date: |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
Change ($) |
Change (%) |
|||||||||||||
|
(dollars in thousands) |
||||||||||||||||||||||||
Construction and development |
$ |
394,712 |
|
|
$ |
433,293 |
|
|
$ |
472,939 |
|
|
$ |
482,462 |
|
|
$ |
415,440 |
|
|
$ |
(20,728) |
|
(5.0) |
% |
Owner-occupied CRE |
1,357,715 |
|
|
1,318,196 |
|
|
1,381,693 |
|
|
1,411,558 |
|
|
1,411,894 |
|
|
(54,179) |
|
(3.8) |
% |
||||||
Non-owner-occupied CRE |
2,191,848 |
|
|
2,244,335 |
|
|
2,340,206 |
|
|
2,660,682 |
|
|
2,910,965 |
|
|
(719,117) |
|
(24.7) |
% |
||||||
Multifamily residential real estate |
539,063 |
|
|
592,544 |
|
|
619,353 |
|
|
476,159 |
|
|
536,642 |
|
|
2,421 |
|
0.5 |
% |
||||||
Total commercial real estate |
4,483,338 |
|
|
4,588,368 |
|
|
4,814,191 |
|
|
5,030,861 |
|
|
5,274,941 |
|
|
(791,603) |
|
(15.0) |
% |
||||||
Agriculture |
1,428,614 |
|
|
1,438,499 |
|
|
1,549,926 |
|
|
1,635,952 |
|
|
1,724,350 |
|
|
(295,736) |
|
(17.2) |
% |
||||||
Commercial non-real estate |
1,535,394 |
|
|
1,710,938 |
|
|
1,897,569 |
|
|
2,054,478 |
|
|
2,181,656 |
|
|
(646,262) |
|
(29.6) |
% |
||||||
Residential real estate |
628,098 |
|
|
631,688 |
|
|
660,450 |
|
|
708,086 |
|
|
830,102 |
|
|
(202,004) |
|
(24.3) |
% |
||||||
Consumer and other ¹ |
109,609 |
|
|
108,290 |
|
|
89,216 |
|
|
88,499 |
|
|
100,553 |
|
|
9,056 |
|
9.0 |
% |
||||||
Total loans |
8,185,053 |
|
|
8,477,783 |
|
|
9,011,352 |
|
|
9,517,876 |
|
|
10,111,602 |
|
|
(1,926,549) |
|
(19.1) |
% |
||||||
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 |
$ |
8,185,053 |
|
|
$ |
8,477,783 |
|
|
$ |
9,011,352 |
|
|
$ |
9,517,876 |
|
|
$ |
10,076,142 |
|
|
$ |
(1,891,089) |
|
(18.8) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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. |
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net Interest Margin (FTE) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||
|
Average Balance |
Interest
|
Yield / Cost ¹ |
|
Average Balance |
Interest
|
Yield / Cost ¹ |
|
Average Balance |
Interest
|
Yield / Cost ¹ |
|||||||||||||||
|
(dollars in thousands) |
|||||||||||||||||||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing bank deposits ² |
$ |
1,466,674 |
|
$ |
607 |
|
0.16 |
% |
|
$ |
1,357,821 |
|
$ |
306 |
|
0.09 |
% |
|
$ |
167,048 |
|
$ |
105 |
|
0.25 |
% |
Other interest-earning assets |
127,321 |
|
351 |
|
1.09 |
% |
|
121,981 |
|
348 |
|
1.14 |
% |
|
— |
|
— |
|
— |
% |
||||||
Investment securities |
2,531,714 |
|
8,916 |
|
1.40 |
% |
|
2,318,325 |
|
8,642 |
|
1.50 |
% |
|
1,992,448 |
|
9,294 |
|
1.86 |
% |
||||||
Non-ASC 310-30 loans, net ³ |
8,053,490 |
|
89,626 |
|
4.42 |
% |
|
8,500,919 |
|
94,923 |
|
4.48 |
% |
|
9,977,591 |
|
107,813 |
|
4.30 |
% |
||||||
ASC 310-30 loans, net ⁴ |
— |
|
— |
|
— |
% |
|
— |
|
— |
|
— |
% |
|
47,006 |
|
1,217 |
|
10.30 |
% |
||||||
Loans, net |
8,053,490 |
|
89,626 |
|
4.42 |
% |
|
8,500,919 |
|
94,923 |
|
4.48 |
% |
|
10,024,597 |
|
109,030 |
|
4.33 |
% |
||||||
Total interest-earning assets |
12,179,199 |
|
99,500 |
|
3.24 |
% |
|
12,299,046 |
|
104,219 |
|
3.40 |
% |
|
12,184,093 |
|
118,429 |
|
3.87 |
% |
||||||
Noninterest-earning assets |
741,138 |
|
|
|
|
743,109 |
|
|
|
|
610,228 |
|
|
|
||||||||||||
Total assets |
$ |
12,920,337 |
|
$ |
99,500 |
|
3.05 |
% |
|
$ |
13,042,155 |
|
$ |
104,219 |
|
3.21 |
% |
|
$ |
12,794,321 |
|
$ |
118,429 |
|
3.68 |
% |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits |
$ |
2,898,276 |
|
|
|
|
$ |
2,863,176 |
|
|
|
|
$ |
2,575,732 |
|
|
|
|||||||||
Interest-bearing deposits |
7,696,542 |
|
$ |
2,066 |
|
0.11 |
% |
|
7,834,032 |
|
$ |
2,618 |
|
0.13 |
% |
|
7,079,302 |
|
$ |
4,534 |
|
0.25 |
% |
|||
Time deposits |
759,420 |
|
712 |
|
0.37 |
% |
|
863,923 |
|
887 |
|
0.41 |
% |
|
1,371,589 |
|
3,251 |
|
0.94 |
% |
||||||
Total deposits |
11,354,238 |
|
2,778 |
|
0.10 |
% |
|
11,561,131 |
|
3,505 |
|
0.12 |
% |
|
11,026,623 |
|
7,785 |
|
0.28 |
% |
||||||
Securities sold under agreements to repurchase |
88,511 |
|
17 |
|
0.08 |
% |
|
74,785 |
|
14 |
|
0.08 |
% |
|
73,451 |
|
18 |
|
0.10 |
% |
||||||
FHLB advances and other borrowings |
120,032 |
|
861 |
|
2.85 |
% |
|
120,000 |
|
853 |
|
2.85 |
% |
|
315,641 |
|
2,203 |
|
2.78 |
% |
||||||
Subordinated debentures and subordinated notes payable |
108,947 |
|
784 |
|
2.85 |
% |
|
108,913 |
|
789 |
|
2.91 |
% |
|
108,812 |
|
897 |
|
3.28 |
% |
||||||
Total borrowings |
317,490 |
|
1,662 |
|
2.08 |
% |
|
303,698 |
|
1,656 |
|
2.19 |
% |
|
497,904 |
|
3,118 |
|
2.49 |
% |
||||||
Total interest-bearing liabilities |
11,671,728 |
|
$ |
4,440 |
|
0.15 |
% |
|
11,864,829 |
|
$ |
5,161 |
|
0.17 |
% |
|
11,524,527 |
|
$ |
10,903 |
|
0.38 |
% |
|||
Noninterest-bearing liabilities |
71,844 |
|
|
|
|
63,535 |
|
|
|
|
94,798 |
|
|
|
||||||||||||
Stockholders' equity |
1,176,765 |
|
|
|
|
1,113,791 |
|
|
|
|
1,174,996 |
|
|
|
||||||||||||
Total liabilities and stockholders' equity |
$ |
12,920,337 |
|
|
|
|
$ |
13,042,155 |
|
|
|
|
$ |
12,794,321 |
|
|
|
|||||||||
Net interest spread |
|
|
2.90 |
% |
|
|
|
3.04 |
% |
|
|
|
3.30 |
% |
||||||||||||
Net interest income and net interest margin (FTE) |
|
$ |
95,060 |
|
3.10 |
% |
|
|
$ |
99,058 |
|
3.23 |
% |
|
|
$ |
107,526 |
|
3.51 |
% |
||||||
Less: Tax equivalent adjustment |
|
1,574 |
|
|
|
|
1,595 |
|
|
|
|
1,508 |
|
|
||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income |
|
$ |
93,486 |
|
3.05 |
% |
|
|
$ |
97,463 |
|
3.18 |
% |
|
|
$ |
106,018 |
|
3.46 |
% |
||||||
1 Annualized for all partial-year periods. |
||||||||||||||||||||||||||
2 Interest income includes nominal amounts for the fourth quarter of fiscal year 2020 resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets. For the fourth quarter of fiscal year 2021, all amounts were included in other interesting-earning assets. |
||||||||||||||||||||||||||
3 Interest income includes |
||||||||||||||||||||||||||
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. |
|
|
|
|
|
|
|
|||||||||||
Net Interest Margin (FTE) (Unaudited) |
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
||||||||||||
|
Twelve Months Ended |
||||||||||||||||
|
|
|
|
||||||||||||||
|
Average Balance |
Interest (FTE) |
Yield / Cost ¹ |
|
Average Balance |
Interest (FTE) |
Yield / Cost ¹ |
||||||||||
|
(dollars in thousands) |
||||||||||||||||
Assets |
|
|
|
|
|
|
|
||||||||||
Interest-bearing bank deposits ² |
$ |
1,033,690 |
|
$ |
1,229 |
|
0.12 |
% |
|
$ |
100,385 |
|
$ |
1,383 |
|
1.38 |
% |
Other interest-earning assets |
85,144 |
|
943 |
|
1.11 |
% |
|
— |
|
— |
|
— |
% |
||||
Investment securities |
2,225,913 |
|
33,995 |
|
1.53 |
% |
|
1,967,873 |
|
42,653 |
|
2.17 |
% |
||||
Non-ASC 310-30 loans, net ³ |
8,784,577 |
|
395,321 |
|
4.50 |
% |
|
9,750,677 |
|
449,855 |
|
4.61 |
% |
||||
ASC 310-30 loans, net ⁴ |
— |
|
— |
|
— |
% |
|
49,731 |
|
5,827 |
|
11.72 |
% |
||||
Loans, net |
8,784,577 |
|
395,321 |
|
4.50 |
% |
|
9,800,408 |
|
455,682 |
|
4.65 |
% |
||||
Total interest-earning assets |
12,129,324 |
|
431,488 |
|
3.56 |
% |
|
11,868,666 |
|
499,718 |
|
4.21 |
% |
||||
Noninterest-earning assets |
675,299 |
|
|
|
|
937,489 |
|
|
|
||||||||
Total assets |
$ |
12,804,623 |
|
$ |
431,488 |
|
3.37 |
% |
|
$ |
12,806,155 |
|
$ |
499,718 |
|
3.90 |
% |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits |
$ |
2,784,732 |
|
|
|
|
$ |
2,227,518 |
|
|
|
||||||
Interest-bearing deposits |
7,589,788 |
|
$ |
11,846 |
|
0.16 |
% |
|
6,708,650 |
|
$ |
35,594 |
|
0.53 |
% |
||
Time deposits |
953,724 |
|
4,908 |
|
0.51 |
% |
|
1,584,191 |
|
23,009 |
|
1.45 |
% |
||||
Total deposits |
11,328,244 |
|
16,754 |
|
0.15 |
% |
|
10,520,359 |
|
58,603 |
|
0.56 |
% |
||||
Securities sold under agreements to repurchase |
77,804 |
|
62 |
|
0.08 |
% |
|
65,248 |
|
88 |
|
0.13 |
% |
||||
FHLB advances and other borrowings |
120,008 |
|
3,419 |
|
2.85 |
% |
|
473,689 |
|
10,940 |
|
2.31 |
% |
||||
Subordinated debentures and subordinated notes payable |
108,897 |
|
3,182 |
|
2.92 |
% |
|
108,739 |
|
4,516 |
|
4.15 |
% |
||||
Total borrowings |
306,709 |
|
6,663 |
|
2.17 |
% |
|
647,676 |
|
15,544 |
|
2.40 |
% |
||||
Total interest-bearing liabilities |
11,634,953 |
|
$ |
23,417 |
|
0.20 |
% |
|
11,168,035 |
|
$ |
74,147 |
|
0.66 |
% |
||
Noninterest-bearing liabilities |
64,165 |
|
|
|
|
96,806 |
|
|
|
||||||||
Stockholders' equity |
1,105,505 |
|
|
|
|
1,541,314 |
|
|
|
||||||||
Total liabilities and stockholders' equity |
$ |
12,804,623 |
|
|
|
|
$ |
12,806,155 |
|
|
|
||||||
Net interest spread |
|
|
3.17 |
% |
|
|
|
3.24 |
% |
||||||||
Net interest income and net interest margin (FTE) |
|
$ |
408,071 |
|
3.36 |
% |
|
|
$ |
425,571 |
|
3.59 |
% |
||||
Less: Tax equivalent adjustment |
|
6,344 |
|
|
|
|
6,146 |
|
|
||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income |
|
$ |
401,727 |
|
3.31 |
% |
|
|
$ |
419,425 |
|
3.53 |
% |
||||
2 Interest income includes |
|||||||||||||||||
3 Interest income includes |
|||||||||||||||||
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. |
|||||||||||||||||
Non-GAAP Financial Measures and Reconciliation
We rely on certain non-GAAP financial measures in making financial and operational decisions about our business. We believe that each of the non-GAAP financial measures presented is helpful in highlighting trends in our business, financial condition and results of operations which might not otherwise be apparent when relying solely on our financial results calculated in accordance with GAAP. We disclose net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis.
In particular, we evaluate our profitability and performance based on our adjusted net income, adjusted earnings per common share, pre-tax pre-provision income ("PTPP"), tangible net income and return on average tangible common equity. Our adjusted net income and adjusted earnings per common share exclude the after-tax effect of items with a significant impact to net income that we do not believe to be recurring in nature, (e.g., one-time acquisition expenses as well as the second quarter of fiscal year 2020 COVID-19 impact on credit and other related charges and the impairment of goodwill and certain intangible assets). Our PTPP income excludes total provision for credit losses, credit gains/losses on loans held for investment measured at fair value and goodwill impairment. Our tangible net income and return on average tangible common equity exclude the effects of amortization expense relating to intangible assets and our acquisitions of other institutions. We believe these measures help highlight trends associated with our financial condition and results of operations by providing net income and return information excluding significant nonrecurring items (for adjusted net income and adjusted earnings per common share), measure our ability to generate capital by providing net income excluding credit losses (for PTPP income) and measure net income based on our cash payments and receipts during the applicable period (for tangible net income and return on average tangible common equity).
We also evaluate our profitability and performance based on our adjusted net interest income, adjusted net interest margin, adjusted interest income on loans and adjusted yield on loans. We adjust each of these four measures to include the derivative interest expense we use to manage interest rate risk on certain of our loans, which we believe economically offsets the interest income earned on the loans. Similarly, we evaluate our operational efficiency based on our efficiency ratio, which excludes the effect of amortization of core deposit and other intangibles (a non-cash expense item) and includes the tax benefit associated with our tax-advantaged loans.
We evaluate our financial condition based on the ratio of our tangible common equity to our tangible assets and the ratio of our tangible common equity to common shares outstanding. Our calculation of this ratio excludes the effect of our goodwill and other intangible assets. We believe this measure is helpful in highlighting the common equity component of our capital and because of its focus by federal bank regulators when reviewing the health and strength of financial institutions in recent years and when considering regulatory approvals for certain actions, including capital actions. We also believe the ratio of our tangible common equity to common shares outstanding is helpful in understanding our stockholders’ relative ownership position as we undertake various actions to issue and retire common shares outstanding.
Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this release.
|
|
|
|
|
|
|
|
|
||||||||||||||
Reconciliation of Non-GAAP Measures (Unaudited) |
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
At and for the twelve months ended: |
|
At and for the three months ended: |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(dollars in thousands except share and per share amounts) |
|||||||||||||||||||||
Adjusted net income and adjusted earnings per common share: |
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) - GAAP |
$ |
203,258 |
|
$ |
(680,808) |
|
|
$ |
51,891 |
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
|
$ |
11,136 |
|
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 |
$ |
203,258 |
|
$ |
88,890 |
|
|
$ |
51,891 |
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
|
$ |
11,136 |
|
Weighted average diluted common shares outstanding |
55,443,909 |
|
55,612,251 |
|
|
55,546,917 |
|
55,524,979 |
|
55,456,399 |
|
55,247,343 |
|
55,164,548 |
|
|||||||
Earnings per common share - diluted |
$ |
3.67 |
|
$ |
(12.24) |
|
|
$ |
0.93 |
|
$ |
1.06 |
|
$ |
0.93 |
|
$ |
0.75 |
|
$ |
0.20 |
|
Adjusted earnings per common share - diluted |
$ |
3.67 |
|
$ |
1.60 |
|
|
$ |
0.93 |
|
$ |
1.06 |
|
$ |
0.93 |
|
$ |
0.75 |
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pre-tax pre-provision income ("PTPP"): |
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) before income taxes - GAAP |
$ |
262,269 |
|
$ |
(706,318) |
|
|
$ |
66,573 |
|
$ |
77,028 |
|
$ |
65,960 |
|
$ |
52,708 |
|
$ |
10,279 |
|
Add: (Reversal of) provision for credit losses - GAAP |
(34,734) |
|
118,392 |
|
|
(20,934) |
|
(20,699) |
|
(5,000) |
|
11,899 |
|
16,853 |
|
|||||||
Add: Change in fair value of FVO loans and related derivatives - GAAP |
(3,468) |
|
62,306 |
|
|
(988) |
|
(4,110) |
|
(42) |
|
1,672 |
|
24,648 |
|
|||||||
Add: |
— |
|
742,352 |
|
|
— |
|
— |
|
— |
|
— |
|
— |
|
|||||||
Pre-tax pre-provision income |
$ |
224,067 |
|
$ |
216,732 |
|
|
$ |
44,651 |
|
$ |
52,219 |
|
$ |
60,918 |
|
$ |
66,279 |
|
$ |
51,780 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
Tangible net income and return on average tangible common equity: |
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) - GAAP |
$ |
203,258 |
|
$ |
(680,808) |
|
|
$ |
51,891 |
|
$ |
58,749 |
|
$ |
51,299 |
|
$ |
41,319 |
|
$ |
11,136 |
|
Add: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets, net of tax |
1,014 |
|
714,339 |
|
|
239 |
|
253 |
|
261 |
|
261 |
|
261 |
|
|||||||
Tangible net income |
$ |
204,272 |
|
$ |
33,531 |
|
|
$ |
52,130 |
|
$ |
59,002 |
|
$ |
51,560 |
|
$ |
41,580 |
|
$ |
11,397 |
|
Average common equity |
$ |
1,105,505 |
|
$ |
1,541,314 |
|
|
$ |
1,176,765 |
|
$ |
1,113,791 |
|
$ |
1,049,388 |
|
$ |
1,082,077 |
|
$ |
1,174,996 |
|
Less: Average goodwill and other intangible assets |
5,619 |
|
375,549 |
|
|
5,244 |
|
5,485 |
|
5,742 |
|
6,004 |
|
6,265 |
|
|||||||
Average tangible common equity |
$ |
1,099,886 |
|
$ |
1,165,765 |
|
|
$ |
1,171,521 |
|
$ |
1,108,306 |
|
$ |
1,043,646 |
|
$ |
1,076,073 |
|
$ |
1,168,731 |
|
Return on average common equity * |
18.4 |
% |
(44.2) |
% |
|
17.5 |
% |
21.2 |
% |
19.8 |
% |
15.2 |
% |
3.8 |
% |
|||||||
Return on average tangible common equity ** |
18.6 |
% |
2.9 |
% |
|
17.7 |
% |
21.4 |
% |
20.0 |
% |
15.3 |
% |
3.9 |
% |
|||||||
* 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 |
$ |
401,727 |
|
$ |
419,425 |
|
|
$ |
93,486 |
|
$ |
97,463 |
|
$ |
102,870 |
|
$ |
107,908 |
|
$ |
106,018 |
|
Add: Tax equivalent adjustment |
6,344 |
|
6,146 |
|
|
1,574 |
|
1,595 |
|
1,577 |
|
1,598 |
|
1,508 |
|
|||||||
Net interest income (FTE) |
408,071 |
|
425,571 |
|
|
95,060 |
|
99,058 |
|
104,447 |
|
109,506 |
|
107,526 |
|
|||||||
Add: Derivative interest expense |
(12,727) |
|
(8,721) |
|
|
(3,035) |
|
(3,117) |
|
(3,182) |
|
(3,393) |
|
(3,541) |
|
|||||||
Adjusted net interest income (FTE) |
$ |
395,344 |
|
$ |
416,850 |
|
|
$ |
92,025 |
|
$ |
95,941 |
|
$ |
101,265 |
|
$ |
106,113 |
|
$ |
103,985 |
|
Average interest-earning assets |
$ |
12,129,324 |
|
$ |
11,868,666 |
|
|
$ |
12,179,199 |
|
$ |
12,299,046 |
|
$ |
12,073,497 |
|
$ |
11,965,555 |
|
$ |
12,184,093 |
|
Net interest margin (FTE) * |
3.36 |
% |
3.59 |
% |
|
3.10 |
% |
3.23 |
% |
3.51 |
% |
3.63 |
% |
3.51 |
% |
|||||||
Adjusted net interest margin (FTE) ** |
3.26 |
% |
3.51 |
% |
|
3.00 |
% |
3.13 |
% |
3.40 |
% |
3.52 |
% |
3.40 |
% |
|||||||
* 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 |
$ |
388,977 |
|
$ |
443,709 |
|
|
$ |
88,052 |
|
$ |
93,328 |
|
$ |
100,274 |
|
$ |
107,323 |
|
$ |
106,305 |
|
Add: Tax equivalent adjustment |
6,344 |
|
6,146 |
|
|
1,574 |
|
1,595 |
|
1,577 |
|
1,598 |
|
1,508 |
|
|||||||
Interest income (FTE) |
395,321 |
|
449,855 |
|
|
89,626 |
|
94,923 |
|
101,851 |
|
108,921 |
|
107,813 |
|
|||||||
Add: Derivative interest expense |
(12,727) |
|
(8,721) |
|
|
(3,035) |
|
(3,117) |
|
(3,182) |
|
(3,393) |
|
(3,541) |
|
|||||||
Adjusted interest income (FTE) |
$ |
382,594 |
|
$ |
441,134 |
|
|
$ |
86,591 |
|
$ |
91,806 |
|
$ |
98,669 |
|
$ |
105,528 |
|
$ |
104,272 |
|
Average non-ASC310-30 loans |
$ |
8,784,577 |
|
$ |
9,750,677 |
|
|
$ |
8,053,490 |
|
$ |
8,500,919 |
|
$ |
9,016,221 |
|
$ |
9,567,679 |
|
$ |
9,977,591 |
|
Yield (FTE) * |
4.50 |
% |
4.61 |
% |
|
4.42 |
% |
4.48 |
% |
4.58 |
% |
4.52 |
% |
4.30 |
% |
|||||||
Adjusted yield (FTE) ** |
4.36 |
% |
4.52 |
% |
|
4.27 |
% |
4.33 |
% |
4.44 |
% |
4.38 |
% |
4.16 |
% |
|||||||
* 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 |
$ |
468,291 |
|
$ |
419,442 |
|
|
$ |
109,338 |
|
$ |
116,834 |
|
$ |
120,063 |
|
$ |
122,056 |
|
$ |
102,068 |
|
Add: Tax equivalent adjustment |
6,344 |
|
6,146 |
|
|
1,574 |
|
1,595 |
|
1,577 |
|
1,598 |
|
1,508 |
|
|||||||
Total revenue (FTE) |
$ |
474,635 |
|
$ |
425,588 |
|
|
$ |
110,912 |
|
$ |
118,429 |
|
$ |
121,640 |
|
$ |
123,654 |
|
$ |
103,576 |
|
Noninterest expense |
$ |
240,756 |
|
$ |
1,007,368 |
|
|
$ |
63,699 |
|
$ |
60,505 |
|
$ |
59,103 |
|
$ |
57,449 |
|
$ |
74,936 |
|
Less: Amortization of intangible assets and COVID-19 related impairment of goodwill and certain intangible assets |
1,014 |
|
743,745 |
|
|
239 |
|
253 |
|
261 |
|
261 |
|
261 |
|
|||||||
Tangible noninterest expense |
$ |
239,742 |
|
$ |
263,623 |
|
|
$ |
63,460 |
|
$ |
60,252 |
|
$ |
58,842 |
|
$ |
57,188 |
|
$ |
74,675 |
|
Efficiency ratio * |
50.5 |
% |
61.9 |
% |
|
57.2 |
% |
50.9 |
% |
48.4 |
% |
46.2 |
% |
72.1 |
% |
|||||||
* 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 |
$ |
1,201,479 |
|
$ |
1,162,933 |
|
|
$ |
1,201,479 |
|
$ |
1,161,069 |
|
$ |
1,093,919 |
|
$ |
1,068,501 |
|
$ |
1,162,933 |
|
Less: |
5,151 |
|
6,164 |
|
|
5,151 |
|
5,390 |
|
5,643 |
|
5,904 |
|
6,164 |
|
|||||||
Tangible common equity |
$ |
1,196,328 |
|
$ |
1,156,769 |
|
|
$ |
1,196,328 |
|
$ |
1,155,679 |
|
$ |
1,088,276 |
|
$ |
1,062,597 |
|
$ |
1,156,769 |
|
Total assets |
$ |
12,911,468 |
|
$ |
12,604,439 |
|
|
$ |
12,911,468 |
|
$ |
13,070,229 |
|
$ |
13,013,739 |
|
$ |
12,814,383 |
|
$ |
12,604,439 |
|
Less: |
5,151 |
|
6,164 |
|
|
5,151 |
|
5,390 |
|
5,643 |
|
5,904 |
|
6,164 |
|
|||||||
Tangible assets |
$ |
12,906,317 |
|
$ |
12,598,275 |
|
|
$ |
12,906,317 |
|
$ |
13,064,839 |
|
$ |
13,008,096 |
|
$ |
12,808,479 |
|
$ |
12,598,275 |
|
Tangible common equity to tangible assets |
9.3 |
% |
9.2 |
% |
|
9.3 |
% |
8.8 |
% |
8.4 |
% |
8.3 |
% |
9.2 |
% |
|||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
Tangible book value per share: |
|
|
|
|
|
|
|
|
||||||||||||||
Total stockholders' equity |
$ |
1,201,479 |
|
$ |
1,162,933 |
|
|
$ |
1,201,479 |
|
$ |
1,161,069 |
|
$ |
1,093,919 |
|
$ |
1,068,501 |
|
$ |
1,162,933 |
|
Less: |
5,151 |
|
6,164 |
|
|
5,151 |
|
5,390 |
|
5,643 |
|
5,904 |
|
6,164 |
|
|||||||
Tangible common equity |
$ |
1,196,328 |
|
$ |
1,156,769 |
|
|
$ |
1,196,328 |
|
$ |
1,155,679 |
|
$ |
1,088,276 |
|
$ |
1,062,597 |
|
$ |
1,156,769 |
|
Common shares outstanding |
55,116,503 |
|
55,014,189 |
|
|
55,116,503 |
|
55,116,095 |
|
55,111,403 |
|
55,105,105 |
|
55,014,189 |
|
|||||||
Book value per share - GAAP |
$ |
21.80 |
|
$ |
21.14 |
|
|
$ |
21.80 |
|
$ |
21.07 |
|
$ |
19.85 |
|
$ |
19.39 |
|
$ |
21.14 |
|
Tangible book value per share |
$ |
21.71 |
|
$ |
21.03 |
|
|
$ |
21.71 |
|
$ |
20.97 |
|
$ |
19.75 |
|
$ |
19.28 |
|
$ |
21.03 |
|
1 All references to net interest income and net interest margin are presented on a fully-tax equivalent basis unless otherwise noted.
2 This is a non-GAAP financial measure management believes is helpful to understanding trends in our business that may not be fully apparent based only on the most comparable GAAP financial measure. Further information on this financial measure and a reconciliation to the most comparable GAAP financial measure is provided at the end of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211026006046/en/
Investor Relations Contact:
seth.artz@greatwesternbank.com
Media Contact:
alexis.feterl@greatwesternbank.com
Source:
FAQ
What were the earnings results for Great Western Bancorp for Q3 2021?
What caused the decline in net interest income for GWB in Q3 2021?
Is there a merger planned for Great Western Bancorp?
What is the outlook for Great Western Bancorp after the merger with First Interstate?