Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Consolidated Financial Data (Unaudited)
(Dollars in thousands except per share amounts)
At or for the six months ended | At or for the three months ended | |||||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||||||
Interest and dividend income (FTE) | $ | 181,876 | $ | 175,796 | $ | 89,794 | $ | 92,082 | $ | 92,265 | $ | 89,078 | $ | 85,993 | ||||||||||||||
Interest expense | 15,248 | 16,559 | 7,579 | 7,669 | 7,715 | 7,778 | 7,929 | |||||||||||||||||||||
Noninterest income | 14,836 | 20,966 | 6,936 | 7,900 | 8,501 | 10,314 | 10,140 | |||||||||||||||||||||
Noninterest expense | 95,529 | 97,626 | 48,438 | 47,091 | 48,318 | 54,278 | 49,327 | |||||||||||||||||||||
Provision for loan losses | 12,998 | (3,565 | ) | 9,679 | 3,319 | 2,749 | 1,500 | (2,690 | ) | |||||||||||||||||||
Net income | 46,421 | 54,575 | 19,724 | 26,697 | 27,875 | 22,502 | 25,971 | |||||||||||||||||||||
Earnings per common share2 | $ | 0.80 | $ | 0.94 | $ | 0.34 | $ | 0.46 | $ | 0.48 | $ | 0.39 | $ | 0.45 | ||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Net interest margin (FTE)3 | 3.90 | % | 3.99 | % | 3.89 | % | 3.91 | % | 4.10 | % | 4.03 | % | 3.96 | % | ||||||||||||||
Adjusted net interest margin (FTE)1 3 | 3.66 | % | 3.77 | % | 3.64 | % | 3.67 | % | 3.86 | % | 3.80 | % | 3.73 | % | ||||||||||||||
Return on average total assets3 | 0.96 | % | 1.19 | % | 0.83 | % | 1.10 | % | 1.19 | % | 0.98 | % | 1.15 | % | ||||||||||||||
Return on average common equity3 | 6.44 | % | 7.70 | % | 5.49 | % | 7.39 | % | 7.69 | % | 6.25 | % | 7.41 | % | ||||||||||||||
Return on average tangible common equity1 3 | 13.8 | % | 17.9 | % | 11.8 | % | 15.8 | % | 16.3 | % | 14.2 | % | 17.3 | % | ||||||||||||||
Efficiency ratio1 | 50.1 | % | 49.0 | % | 51.7 | % | 48.5 | % | 49.0 | % | 54.8 | % | 50.6 | % | ||||||||||||||
Capital: | ||||||||||||||||||||||||||||
Tier 1 capital ratio | 11.5 | % | 12.4 | % | 11.5 | % | 11.8 | % | 11.8 | % | 12.1 | % | 12.4 | % | ||||||||||||||
Total capital ratio | 12.6 | % | 13.6 | % | 12.6 | % | 12.9 | % | 12.9 | % | 13.1 | % | 13.6 | % | ||||||||||||||
Tier 1 leverage ratio | 9.3 | % | 9.4 | % | 9.3 | % | 9.1 | % | 9.1 | % | 9.3 | % | 9.4 | % | ||||||||||||||
Common equity tier 1 ratio | 10.7 | % | * | 10.7 | % | * | * | * | * | |||||||||||||||||||
Tangible common equity / tangible assets1 | 8.4 | % | 8.4 | % | 8.4 | % | 8.3 | % | 8.2 | % | 8.3 | % | 8.4 | % | ||||||||||||||
Asset Quality: | ||||||||||||||||||||||||||||
Nonperforming loans | $ | 74,332 | $ | 91,567 | $ | 74,332 | $ | 68,454 | $ | 78,905 | $ | 80,838 | $ | 91,567 | ||||||||||||||
OREO | $ | 43,565 | $ | 77,223 | $ | 43,565 | $ | 43,442 | $ | 49,580 | $ | 54,190 | $ | 77,223 | ||||||||||||||
Nonperforming loans / total loans | 1.05 | % | 1.40 | % | 1.05 | % | 0.98 | % | 1.16 | % | 1.21 | % | 1.40 | % | ||||||||||||||
Net charge-offs (recoveries) | $ | 8,090 | $ | 5,146 | $ | 9,073 | $ | (983 | ) | $ | 2,269 | $ | 1,615 | $ | 6,226 | |||||||||||||
Net charge-offs (recoveries) / average total loans3 | 0.23 | % | 0.16 | % | 0.52 | % | (0.06 | )% | 0.13 | % | 0.10 | % | 0.39 | % | ||||||||||||||
Allowance for loan losses / total loans | 0.74 | % | 0.72 | % | 0.74 | % | 0.74 | % | 0.70 | % | 0.70 | % | 0.72 | % | ||||||||||||||
Watch-rated loans | $ | 384,448 | $ | 209,134 | $ | 384,448 | $ | 275,473 | $ | 287,723 | $ | 266,416 | $ | 209,134 |
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 represented approximately 0.1% of shares outstanding 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 six months ended | For the three months ended | |||||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||
Interest and dividend income | ||||||||||||||||||||||||||||
Loans | $ | 166,738 | $ | 159,336 | $ | 82,394 | $ | 84,344 | $ | 84,477 | $ | 80,797 | $ | 77,933 | ||||||||||||||
Taxable securities | 11,066 | 13,592 | 5,379 | 5,687 | 6,173 | 6,598 | 6,623 | |||||||||||||||||||||
Nontaxable securities | 26 | 28 | 13 | 13 | 19 | 33 | 14 | |||||||||||||||||||||
Dividends on securities | 508 | 400 | 258 | 250 | 217 | 351 | 199 | |||||||||||||||||||||
Federal funds sold and other | 444 | 301 | 160 | 284 | 55 | 99 | 117 | |||||||||||||||||||||
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Total interest and dividend income | 178,782 | 173,657 | 88,204 | 90,578 | 90,941 | 87,878 | 84,886 | |||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||||
Deposits | 11,999 | 13,310 | 5,984 | 6,015 | 6,135 | 6,319 | 6,431 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 296 | 289 | 150 | 146 | 158 | 153 | 143 | |||||||||||||||||||||
FHLB advances and other borrowings | 1,839 | 1,840 | 893 | 946 | 861 | 751 | 803 | |||||||||||||||||||||
Related party notes payable | 459 | 460 | 227 | 232 | 231 | 230 | 226 | |||||||||||||||||||||
Subordinated debentures and other | 655 | 660 | 325 | 330 | 330 | 325 | 326 | |||||||||||||||||||||
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Total interest expense | 15,248 | 16,559 | 7,579 | 7,669 | 7,715 | 7,778 | 7,929 | |||||||||||||||||||||
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Net interest income | 163,534 | 157,098 | 80,625 | 82,909 | 83,226 | 80,100 | 76,957 | |||||||||||||||||||||
Provision for loan losses | 12,998 | (3,565 | ) | 9,679 | 3,319 | 2,749 | 1,500 | (2,690 | ) | |||||||||||||||||||
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Net interest income after provision for loan losses | 150,536 | 160,663 | 70,946 | 79,590 | 80,477 | 78,600 | 79,647 | |||||||||||||||||||||
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Noninterest income | ||||||||||||||||||||||||||||
Service charges and other fees | 19,269 | 20,033 | 8,871 | 10,398 | 10,476 | 9,695 | 9,371 | |||||||||||||||||||||
Net gain on sale of loans | 3,124 | 2,563 | 1,580 | 1,544 | 1,654 | 1,322 | 947 | |||||||||||||||||||||
Casualty insurance commissions | 549 | 557 | 233 | 316 | 196 | 320 | 299 | |||||||||||||||||||||
Investment center income | 1,227 | 1,179 | 654 | 573 | 660 | 578 | 588 | |||||||||||||||||||||
Net gain on sale of securities | 51 | 6 | — | 51 | 84 | — | 6 | |||||||||||||||||||||
Trust department income | 2,006 | 1,905 | 938 | 1,068 | 891 | 942 | 1,000 | |||||||||||||||||||||
Net increase (decrease) in fair value of loans at fair value | 32,308 | (380 | ) | 15,208 | 17,100 | (1,602 | ) | 13,886 | 8,730 | |||||||||||||||||||
Net realized and unrealized gain (loss) on derivatives | (46,303 | ) | (7,599 | ) | (21,698 | ) | (24,605 | ) | (4,781 | ) | (17,797 | ) | (12,436 | ) | ||||||||||||||
Other | 2,605 | 2,702 | 1,150 | 1,455 | 923 | 1,368 | 1,635 | |||||||||||||||||||||
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Total noninterest income | 14,836 | 20,966 | 6,936 | 7,900 | 8,501 | 10,314 | 10,140 | |||||||||||||||||||||
Noninterest expense | ||||||||||||||||||||||||||||
Salaries and employee benefits | 48,761 | 47,050 | 24,673 | 24,088 | 23,929 | 24,126 | 23,029 | |||||||||||||||||||||
Occupancy expenses, net | 8,008 | 8,719 | 3,984 | 4,024 | 3,913 | 4,894 | 4,486 | |||||||||||||||||||||
Data processing | 9,536 | 9,751 | 4,708 | 4,828 | 5,443 | 4,354 | 4,723 | |||||||||||||||||||||
Equipment expenses | 1,881 | 2,022 | 925 | 956 | 1,251 | 1,077 | 995 | |||||||||||||||||||||
Advertising | 1,674 | 2,172 | 946 | 728 | 1,361 | 1,213 | 1,088 | |||||||||||||||||||||
Communication expenses | 2,398 | 2,356 | 1,225 | 1,173 | 1,108 | 1,046 | 1,242 | |||||||||||||||||||||
Professional fees | 7,175 | 6,003 | 3,603 | 3,572 | 2,610 | 3,620 | 3,105 | |||||||||||||||||||||
Net (gain) loss from sale of repossessed property and other assets | (384 | ) | (849 | ) | (16 | ) | (368 | ) | (38 | ) | (1,564 | ) | (278 | ) | ||||||||||||||
Amortization of core deposits and other intangibles | 4,626 | 9,379 | 2,313 | 2,313 | 2,767 | 4,069 | 4,691 | |||||||||||||||||||||
Other | 11,854 | 11,023 | 6,077 | �� | 5,777 | 5,974 | 11,443 | 6,246 | ||||||||||||||||||||
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Total noninterest expense | 95,529 | 97,626 | 48,438 | 47,091 | 48,318 | 54,278 | 49,327 | |||||||||||||||||||||
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Income before income taxes | 69,843 | 84,003 | 29,444 | 40,399 | 40,660 | 34,636 | 40,460 | |||||||||||||||||||||
Provision for income taxes | 23,422 | 29,428 | 9,720 | 13,702 | 12,785 | 12,134 | 14,489 | |||||||||||||||||||||
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Net income | $ | 46,421 | $ | 54,575 | $ | 19,724 | $ | 26,697 | $ | 27,875 | $ | 22,502 | $ | 25,971 | ||||||||||||||
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GREAT WESTERN BANCORP, INC.
Summarized Consolidated Balance Sheet (Unaudited)
(Dollars in thousands)
As of | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 358,440 | $ | 428,186 | $ | 256,639 | $ | 235,077 | $ | 423,148 | ||||||||||
Securities | 1,402,508 | 1,263,983 | 1,341,242 | 1,395,768 | 1,316,338 | |||||||||||||||
Total loans | 7,072,465 | 6,986,765 | 6,787,467 | 6,678,501 | 6,531,763 | |||||||||||||||
Allowance for loan losses | (52,426 | ) | (51,820 | ) | (47,518 | ) | (47,038 | ) | (47,153 | ) | ||||||||||
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Loans, net | 7,020,039 | 6,934,945 | 6,739,949 | 6,631,463 | 6,484,610 | |||||||||||||||
Goodwill and other intangible assets | 707,410 | 709,723 | 712,036 | 714,803 | 718,872 | |||||||||||||||
Other assets | 293,248 | 304,424 | 321,563 | 315,172 | 331,912 | |||||||||||||||
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Total assets | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 | $ | 9,292,283 | $ | 9,274,880 | ||||||||||
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Liabilities and stockholders’ equity | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,374,589 | $ | 1,381,887 | $ | 1,303,015 | $ | 1,294,131 | $ | 1,268,925 | ||||||||||
Interest-bearing deposits | 6,113,109 | 5,857,319 | 5,749,165 | 5,772,981 | 5,983,759 | |||||||||||||||
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Total deposits | 7,487,698 | 7,239,206 | 7,052,180 | 7,067,112 | 7,252,684 | |||||||||||||||
Securities sold under agreements to repurchase | 163,343 | 190,585 | 161,687 | 185,620 | 204,793 | |||||||||||||||
FHLB advances and other borrowings | 475,019 | 575,085 | 575,094 | 435,097 | 230,100 | |||||||||||||||
Other liabilities | 186,033 | 185,015 | 161,378 | 173,490 | 149,647 | |||||||||||||||
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Total liabilities | 8,312,093 | 8,189,891 | 7,950,339 | 7,861,319 | 7,837,224 | |||||||||||||||
Stockholders’ equity | 1,469,552 | 1,451,370 | 1,421,090 | 1,430,964 | 1,437,656 | |||||||||||||||
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Total liabilities and stockholders’ equity | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 | $ | 9,292,283 | $ | 9,274,880 | ||||||||||
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GREAT WESTERN BANCORP, INC.
Loan Portfolio Summary (Unaudited)
(Dollars in thousands)
As of | ||||||||||||||||
March 31, 2015 | September 30, 2014 | Change ($) | Change (%) | |||||||||||||
Commercial non-real estate | $ | 1,657,856 | $ | 1,571,640 | $ | 86,216 | 5.5 | % | ||||||||
Agriculture | 1,748,366 | 1,681,209 | 67,157 | 4.0 | % | |||||||||||
Construction and development | 310,011 | 314,000 | (3,989 | ) | (1.3 | )% | ||||||||||
Owner-occupied CRE | 1,110,074 | 1,151,868 | (41,794 | ) | (3.6 | )% | ||||||||||
Non-owner-occupied CRE | 1,011,274 | 922,395 | 88,879 | 9.6 | % | |||||||||||
Multifamily residential real estate | 241,896 | 152,931 | 88,965 | 58.2 | % | |||||||||||
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Commercial real estate | 2,673,255 | 2,541,194 | 132,061 | 5.2 | % | |||||||||||
Residential real estate | 905,114 | 901,605 | 3,509 | 0.4 | % | |||||||||||
Consumer | 80,036 | 90,086 | (10,050 | ) | (11.2 | )% | ||||||||||
Other1 | 35,433 | 34,243 | 1,190 | 3.5 | % | |||||||||||
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Total unpaid principal balance | 7,100,060 | 6,819,977 | 280,083 | 4.1 | % | |||||||||||
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process | (27,595 | ) | (32,510 | ) | 4,915 | (15.1 | )% | |||||||||
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Total loans | $ | 7,072,465 | $ | 6,787,467 | $ | 284,998 | 4.2 | % | ||||||||
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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 | ||||||||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 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 | $ | 265,929 | $ | 160 | 0.24 | % | $ | 442,902 | $ | 284 | 0.25 | % | $ | 191,031 | $ | 117 | 0.25 | % | ||||||||||||||||||
Investment securities | 1,334,460 | 5,650 | 1.72 | % | 1,336,235 | 5,950 | 1.77 | % | 1,381,475 | 6,836 | 2.01 | % | ||||||||||||||||||||||||
Loans, other than loans acquired with deteriorated credit quality, net | 6,828,510 | 81,907 | 4.86 | % | 6,626,507 | 82,876 | 4.96 | % | 6,224,179 | 78,155 | 5.09 | % | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality, net | 131,578 | 2,077 | 6.40 | % | 151,044 | 2,972 | 7.81 | % | 204,428 | 885 | 1.76 | % | ||||||||||||||||||||||||
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Loans, net | 6,960,088 | 83,984 | 4.89 | % | 6,777,551 | 85,848 | 5.03 | % | 6,428,607 | 79,040 | 4.99 | % | ||||||||||||||||||||||||
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Total interest-earning assets | 8,560,477 | 89,794 | 4.25 | % | 8,556,688 | 92,082 | 4.27 | % | 8,001,113 | 85,993 | 4.36 | % | ||||||||||||||||||||||||
Noninterest-earning assets | 1,090,176 | 1,109,386 | 1,155,039 | |||||||||||||||||||||||||||||||||
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Total assets | $ | 9,650,653 | $ | 89,794 | 3.77 | % | $ | 9,666,074 | $ | 92,082 | 3.78 | % | $ | 9,156,152 | $ | 85,993 | 3.81 | % | ||||||||||||||||||
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Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,282,530 | $ | 1,492,262 | $ | 1,216,315 | ||||||||||||||||||||||||||||||
NOW, MMDA and savings deposits | 4,447,606 | $ | 3,266 | 0.30 | % | 4,149,871 | $ | 2,651 | 0.25 | % | 3,978,103 | $ | 2,318 | 0.24 | % | |||||||||||||||||||||
CDs | 1,567,763 | 2,718 | 0.70 | % | 1,683,865 | 3,364 | 0.79 | % | 1,940,266 | 4,113 | 0.86 | % | ||||||||||||||||||||||||
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Total deposits | 7,297,899 | 5,984 | 0.33 | % | 7,325,998 | 6,015 | 0.33 | % | 7,134,684 | 6,431 | 0.37 | % | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | 182,386 | 150 | 0.33 | % | 167,835 | 146 | 0.35 | % | 192,333 | 143 | 0.30 | % | ||||||||||||||||||||||||
FHLB advances and other borrowings | 528,571 | 893 | 0.69 | % | 566,486 | 946 | 0.66 | % | 259,056 | 803 | 1.26 | % | ||||||||||||||||||||||||
Related party notes payable | 41,295 | 227 | 2.23 | % | 41,295 | 232 | 2.23 | % | 41,295 | 226 | 2.22 | % | ||||||||||||||||||||||||
Subordinated debentures and other | 56,083 | 325 | 2.35 | % | 56,083 | 330 | 2.33 | % | 56,083 | 326 | 2.36 | % | ||||||||||||||||||||||||
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Total borrowings | 808,335 | 1,595 | 0.80 | % | 831,699 | 1,654 | 0.79 | % | 548,767 | 1,498 | 1.11 | % | ||||||||||||||||||||||||
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Total interest-bearing liabilities | 8,106,234 | $ | 7,579 | 0.38 | % | 8,157,697 | $ | 7,669 | 0.37 | % | 7,683,451 | $ | 7,929 | 0.42 | % | |||||||||||||||||||||
Noninterest-bearing liabilities | 86,288 | 74,540 | 51,768 | |||||||||||||||||||||||||||||||||
Stockholders’ equity | 1,458,131 | 1,433,837 | 1,420,933 | |||||||||||||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 9,650,653 | $ | 9,666,074 | $ | 9,156,152 | ||||||||||||||||||||||||||||||
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Net interest spread | 3.39 | % | 3.41 | % | 3.39 | % | ||||||||||||||||||||||||||||||
Net interest income and net interest margin (FTE)1 | $ | 82,215 | 3.89 | % | $ | 84,413 | 3.91 | % | $ | 78,064 | 3.96 | % | ||||||||||||||||||||||||
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Less: Tax equivalent adjustment | 1,590 | 1,504 | 1,107 | |||||||||||||||||||||||||||||||||
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Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 80,625 | 3.82 | % | $ | 82,909 | 3.84 | % | $ | 76,957 | 3.90 | % | ||||||||||||||||||||||||
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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 six months ended | ||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | |||||||||||||||||||||||
Average Balance | Interest (FTE)1 | Yield / Cost2 | Average Balance | Interest (FTE)1 | Yield / Cost2 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and due from banks | $ | 354,415 | $ | 444 | 0.25 | % | $ | 195,307 | $ | 301 | 0.31 | % | ||||||||||||
Investment securities | 1,335,348 | 11,600 | 1.74 | % | 1,428,379 | 14,020 | 1.97 | % | ||||||||||||||||
Loans, other than loans acquired with deteriorated credit quality, net | 6,727,508 | 164,783 | 4.91 | % | 6,186,621 | 158,701 | 5.14 | % | ||||||||||||||||
Loans acquired with deteriorated credit quality, net | 141,311 | 5,049 | 7.17 | % | 202,235 | 2,774 | 2.75 | % | ||||||||||||||||
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Loans, net | 6,868,819 | 169,832 | 4.96 | % | 6,388,856 | 161,475 | 5.07 | % | ||||||||||||||||
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Total interest-earning assets | 8,558,582 | 181,876 | 4.26 | % | 8,012,542 | 175,796 | 4.40 | % | ||||||||||||||||
Noninterest-earning assets | 1,097,254 | 1,189,536 | ||||||||||||||||||||||
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Total assets | $ | 9,655,836 | $ | 181,876 | 3.78 | % | $ | 9,202,078 | $ | 175,796 | 3.83 | % | ||||||||||||
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Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 1,387,396 | $ | 1,226,039 | ||||||||||||||||||||
NOW, MMDA and savings deposits | 4,298,739 | $ | 5,918 | 0.28 | % | 3,934,543 | $ | 4,566 | 0.23 | % | ||||||||||||||
CDs | 1,625,814 | 6,081 | 0.75 | % | 1,956,472 | 8,744 | 0.90 | % | ||||||||||||||||
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Total deposits | 7,311,949 | 11,999 | 0.33 | % | 7,117,054 | 13,310 | 0.38 | % | ||||||||||||||||
Securities sold under agreements to repurchase | 175,111 | 296 | 0.34 | % | 198,207 | 289 | 0.29 | % | ||||||||||||||||
FHLB advances and other borrowings | 547,528 | 1,839 | 0.67 | % | 311,273 | 1,840 | 1.19 | % | ||||||||||||||||
Related party notes payable | 41,295 | 459 | 2.23 | % | 41,295 | 460 | 2.23 | % | ||||||||||||||||
Subordinated debentures and other | 56,083 | 655 | 2.34 | % | 56,083 | 660 | 2.36 | % | ||||||||||||||||
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Total borrowings | 820,017 | 3,249 | 0.79 | % | 606,858 | 3,249 | 1.07 | % | ||||||||||||||||
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Total interest-bearing liabilities | 8,131,966 | $ | 15,248 | 0.38 | % | 7,723,912 | $ | 16,559 | 0.43 | % | ||||||||||||||
Noninterest-bearing liabilities | 77,886 | 56,688 | ||||||||||||||||||||||
Stockholders’ equity | 1,445,984 | 1,421,478 | ||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 9,655,836 | $ | 9,202,078 | ||||||||||||||||||||
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Net interest spread | 3.40 | % | 3.40 | % | ||||||||||||||||||||
Net interest income and net interest margin (FTE)1 | $ | 166,628 | 3.90 | % | $ | 159,237 | 3.99 | % | ||||||||||||||||
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Less: Tax equivalent adjustment | 3,094 | 2,139 | ||||||||||||||||||||||
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Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 163,534 | 3.83 | % | $ | 157,098 | 3.93 | % | ||||||||||||||||
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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. |
Non-GAAP Measures and Reconciliation
We rely on certain non-GAAP measures in making financial and operational decisions about our business. We believe that each of the non-GAAP measures presented is helpful in highlighting trends in our business, financial condition and results of operations which might not otherwise be apparent when relying solely on our financial results calculated in accordance with U.S. generally accepted accounting principles, or GAAP.
In particular, we evaluate our profitability and performance based on our cash net income and return on average tangible common equity, each of which excludes the effects of amortization expense relating to intangible assets and related tax effects from the acquisition of us by National Australia Bank Limited and our acquisitions of other institutions. We believe these measures help highlight trends associated with our financial condition and results of operations by providing net income and return information based on our cash payments and receipts during the applicable period.
We also evaluate our profitability and performance based on our adjusted net interest income, adjusted net interest margin, adjusted interest income on loans other than loans acquired with deteriorated credit quality and adjusted yield on loans other than loans acquired with deteriorated credit quality. We adjust each of these four measures to include the current realized gain (loss) of derivatives we use to manage interest rate risk on certain of our loans, which we believe economically offsets the interest income earned on the loans. Similarly, we evaluate our operational efficiency based on our efficiency ratio, which excludes the effect of amortization of core deposit and other intangibles (a non-cash expense item) and includes the tax benefit associated with our tax-advantaged loans.
We evaluate our financial condition based on the ratio of our tangible common equity to our tangible assets. Our calculation of this ratio excludes the effect of our goodwill and other intangible assets. We believe this measure is helpful in highlighting the common equity component of our capital and because of its focus by federal bank regulators when reviewing the health and strength of financial institutions in recent years and when considering regulatory approvals for certain actions, including capital actions.
Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP measures presented should be considered in context with our GAAP financial results included in this release.
GREAT WESTERN BANCORP, INC.
Reconciliation of Non-GAAP Measures (Unaudited)
(Dollars in thousands)
At or for the six months ended | At or for the three months ended | |||||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||
Cash net income and return on average tangible common equity: | ||||||||||||||||||||||||||||
Net income | $ | 46,421 | $ | 54,575 | $ | 19,724 | $ | 26,697 | $ | 27,875 | $ | 22,502 | $ | 25,971 | ||||||||||||||
Add: Amortization of intangible assets | 4,626 | 9,379 | 2,313 | 2,313 | 2,767 | 4,069 | 4,691 | |||||||||||||||||||||
Add: Tax on amortization of intangible assets | (440 | ) | (1,622 | ) | (220 | ) | (220 | ) | (811 | ) | (811 | ) | (811 | ) | ||||||||||||||
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Cash net income | $ | 50,607 | $ | 62,332 | $ | 21,817 | $ | 28,790 | $ | 29,831 | $ | 25,760 | $ | 29,851 | ||||||||||||||
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Average common equity | $ | 1,445,984 | $ | 1,421,478 | $ | 1,458,131 | $ | 1,433,837 | $ | 1,438,962 | $ | 1,445,097 | $ | 1,420,933 | ||||||||||||||
Less: Average goodwill and other intangible assets | 709,935 | 721,652 | 708,782 | 711,088 | 713,462 | 717,104 | 721,529 | |||||||||||||||||||||
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Average tangible common equity | $ | 736,049 | $ | 699,826 | $ | 749,349 | $ | 722,749 | $ | 725,500 | $ | 727,993 | $ | 699,404 | ||||||||||||||
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Return on average common equity * | 6.44 | % | 7.70 | % | 5.49 | % | 7.39 | % | 7.69 | % | 6.25 | % | 7.41 | % | ||||||||||||||
Return on average tangible common equity * | 13.8 | % | 17.9 | % | 11.8 | % | 15.8 | % | 16.3 | % | 14.2 | % | 17.3 | % |
* | 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 six months ended | At or for the three months ended | |||||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||
Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis): | ||||||||||||||||||||||||||||
Net interest income | $ | 163,534 | $ | 157,098 | $ | 80,625 | $ | 82,909 | $ | 83,226 | $ | 80,100 | $ | 76,957 | ||||||||||||||
Add: Tax equivalent adjustment | 3,094 | 2,139 | 1,590 | 1,504 | 1,324 | 1,200 | 1,107 | |||||||||||||||||||||
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Net interest income (FTE) | 166,628 | 159,237 | 82,215 | 84,413 | 84,550 | 81,300 | 78,064 | |||||||||||||||||||||
Add: Current realized derivative gain (loss) | (10,589 | ) | (8,677 | ) | (5,307 | ) | (5,282 | ) | (4,978 | ) | (4,600 | ) | (4,389 | ) | ||||||||||||||
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Adjusted net interest income (FTE) | $ | 156,039 | $ | 150,560 | $ | 76,908 | $ | 79,131 | $ | 79,572 | $ | 76,700 | $ | 73,675 | ||||||||||||||
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Average interest earning assets | $ | 8,558,582 | $ | 8,012,542 | $ | 8,560,477 | $ | 8,556,688 | $ | 8,181,194 | $ | 8,098,052 | $ | 8,001,113 | ||||||||||||||
Net interest margin (FTE) * | 3.90 | % | 3.99 | % | 3.89 | % | 3.91 | % | 4.10 | % | 4.03 | % | 3.96 | % | ||||||||||||||
Adjusted net interest margin (FTE) ** | 3.66 | % | 3.77 | % | 3.64 | % | 3.67 | % | 3.86 | % | 3.80 | % | 3.73 | % |
* | Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. |
** | Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. |
Adjusted interest income and adjusted yield (fully-tax equivalent basis), on loans other than loans acquired with deteriorated credit quality: | ||||||||||||||||||||||||||||
Interest income | $ | 161,689 | $ | 156,562 | $ | 80,317 | $ | 81,372 | $ | 82,968 | $ | 79,245 | $ | 77,048 | ||||||||||||||
Add: Tax equivalent adjustment | 3,094 | 2,139 | 1,590 | 1,504 | 1,324 | 1,200 | 1,107 | |||||||||||||||||||||
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Interest income (FTE) | 164,783 | 158,701 | 81,907 | 82,876 | 84,292 | 80,445 | 78,155 | |||||||||||||||||||||
Add: Current realized derivative gain (loss) | (10,589 | ) | (8,677 | ) | (5,307 | ) | (5,282 | ) | (4,978 | ) | (4,600 | ) | (4,389 | ) | ||||||||||||||
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Adjusted interest income (FTE) | $ | 154,194 | $ | 150,024 | $ | 76,600 | $ | 77,594 | $ | 79,314 | $ | 75,845 | $ | 73,766 | ||||||||||||||
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Average loans other than loans acquired with deteriorated credit quality | $ | 6,727,508 | $ | 6,186,621 | $ | 6,828,510 | $ | 6,626,507 | $ | 6,527,721 | $ | 6,362,850 | $ | 6,224,179 | ||||||||||||||
Yield (FTE) * | 4.91 | % | 5.14 | % | 4.86 | % | 4.96 | % | 5.12 | % | 5.07 | % | 5.09 | % | ||||||||||||||
Adjusted yield (FTE) ** | 4.60 | % | 4.86 | % | 4.55 | % | 4.65 | % | 4.82 | % | 4.78 | % | 4.81 | % |
* | 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 six months ended | At or for the three months ended | |||||||||||||||||||||||||||
March 31, 2015 | March 31, 2014 | March 31, 2015 | December 31, 2014 | September 30, 2014 | June 30, 2014 | March 31, 2014 | ||||||||||||||||||||||
Efficiency ratio: | ||||||||||||||||||||||||||||
Total revenue | $ | 178,370 | $ | 178,064 | $ | 87,561 | $ | 90,809 | $ | 91,727 | $ | 90,414 | $ | 87,097 | ||||||||||||||
Add: Tax equivalent adjustment | 3,094 | 2,139 | 1,590 | 1,504 | 1,324 | 1,200 | 1,107 | |||||||||||||||||||||
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Total revenue (FTE) | $ | 181,464 | $ | 180,203 | $ | 89,151 | $ | 92,313 | $ | 93,051 | $ | 91,614 | $ | 88,204 | ||||||||||||||
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Noninterest expense | $ | 95,529 | $ | 97,625 | $ | 48,438 | $ | 47,091 | $ | 48,318 | $ | 54,278 | $ | 49,327 | ||||||||||||||
Less: Amortization of intangible assets | 4,626 | 9,379 | 2,313 | 2,313 | 2,767 | 4,069 | 4,691 | |||||||||||||||||||||
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Tangible noninterest expense | $ | 90,903 | $ | 88,246 | $ | 46,125 | $ | 44,778 | $ | 45,551 | $ | 50,209 | $ | 44,636 | ||||||||||||||
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Efficiency ratio * | 50.1 | % | 49.0 | % | 51.7 | % | 48.5 | % | 49.0 | % | 54.8 | % | 50.6 | % | ||||||||||||||
* Calculated as the ratio of tangible noninterest expense to total revenue (FTE).
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Tangible common equity and tangible common equity to tangible assets: | ||||||||||||||||||||||||||||
Total stockholders’ equity | $ | 1,469,552 | $ | 1,437,656 | $ | 1,469,552 | $ | 1,451,370 | $ | 1,421,090 | $ | 1,430,964 | $ | 1,437,656 | ||||||||||||||
Less: Goodwill and other intangible assets | 707,410 | 718,872 | 707,410 | 709,723 | 712,036 | 714,803 | 718,872 | |||||||||||||||||||||
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Tangible common equity | $ | 762,142 | $ | 718,784 | $ | 762,142 | $ | 741,647 | $ | 709,054 | $ | 716,161 | $ | 718,784 | ||||||||||||||
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Total assets | $ | 9,781,645 | $ | 9,274,880 | $ | 9,781,645 | $ | 9,641,261 | $ | 9,371,429 | $ | 9,292,283 | $ | 9,274,880 | ||||||||||||||
Less: Goodwill and other intangible assets | 707,410 | 718,872 | 707,410 | 709,723 | 712,036 | 714,803 | 718,872 | |||||||||||||||||||||
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Tangible assets | $ | 9,074,235 | $ | 8,556,008 | $ | 9,074,235 | $ | 8,931,538 | $ | 8,659,393 | $ | 8,577,480 | $ | 8,556,008 | ||||||||||||||
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Tangible common equity to tangible assets | 8.4 | % | 8.4 | % | 8.4 | % | 8.3 | % | 8.2 | % | 8.3 | % | 8.4 | % |