☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware | 47-1308512 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(IRS Employer
Identification Number) |
|||||||
225 South Main Avenue | 57104 | |||||||
Sioux Falls, | South Dakota | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value per share
|
GWB | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
September 30, 2020 | |||||||||||
Number of branches | % of branches | ||||||||||
South Dakota | 37 | 21.1 | % | ||||||||
Iowa and Missouri | 54 | 30.9 | % | ||||||||
Nebraska and Kansas | 52 | 29.7 | % | ||||||||
Arizona | 9 | 5.1 | % | ||||||||
Colorado | 20 | 11.5 | % | ||||||||
North Dakota and Minnesota | 3 | 1.7 | % | ||||||||
Total | 175 | 100.0 | % |
Name | Age | Position | ||||||
Mark Borrecco
|
49 | President and Chief Executive Officer | ||||||
Doug Bass
|
59 | Chief Operating Officer and Executive Vice President | ||||||
Peter Chapman
|
47 | Chief Financial Officer and Executive Vice President | ||||||
Karlyn Knieriem
|
53 | Chief Risk Officer and Executive Vice President | ||||||
Steve Yose | 61 | Chief Credit Officer and Executive Vice President |
High | Low | Dividends Paid | |||||||||||||||
Fiscal Year 2020: | |||||||||||||||||
First Quarter | $ | 36.65 | $ | 31.74 | $ | 0.30 | |||||||||||
Second Quarter | 34.97 | 16.87 | 0.30 | ||||||||||||||
Third Quarter | 20.92 | 10.86 | 0.15 | ||||||||||||||
Fourth Quarter | 15.74 | 11.67 | 0.01 | ||||||||||||||
Fiscal Year 2019: | |||||||||||||||||
First Quarter | $ | 42.86 | $ | 29.52 | $ | 0.25 | |||||||||||
Second Quarter | 38.78 | 30.48 | 0.25 | ||||||||||||||
Third Quarter | 36.21 | 30.74 | 0.30 | ||||||||||||||
Fourth Quarter | 36.44 | 28.06 | 0.30 |
As of September 30, 2020 | |||||
Great Western Bancorp Inc. | $ | 79.55 | |||
S&P 500 | $ | 202.06 | |||
Russell 2000 | $ | 154.20 | |||
KBW Regional Bank Index | $ | 104.77 |
At and for Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net interest income: | |||||||||||||||||
Total interest income (FTE) | $ | 499,718 | $ | 548,760 | $ | 488,434 | |||||||||||
Less: Total interest expense | 74,147 | 122,209 | 74,000 | ||||||||||||||
Net interest income (FTE) | $ | 425,571 | $ | 426,551 | $ | 414,434 | |||||||||||
Net interest margin (FTE) and adjusted net interest margin (FTE) ¹ | |||||||||||||||||
Average interest-earning assets | $ | 11,868,666 | $ | 11,414,926 | $ | 10,647,357 | |||||||||||
Average interest-bearing liabilities | $ | 11,168,035 | $ | 10,698,555 | $ | 9,952,961 | |||||||||||
Net interest margin (FTE) | 3.59 | % | 3.74 | % | 3.89 | % | |||||||||||
Adjusted net interest margin (FTE) ¹ | 3.51 | % | 3.74 | % | 3.84 | % | |||||||||||
1 This is a non-GAAP financial measure we believe is helpful to interpreting our financial results. For more information on this non-GAAP financial measure, see "—Non-GAAP Financial Measures" and for a reconciliation to the most directly comparable GAAP financial measure, see "Item 6. Selected Financial Data—Non-GAAP Financial Measures Reconciliations".
|
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Loans (FTE) | $ | 455,682 | $ | 504,778 | $ | 457,887 | |||||||||||
Investment securities | 42,653 | 41,510 | 29,171 | ||||||||||||||
Federal funds sold and other | 1,383 | 2,472 | 1,376 | ||||||||||||||
Total interest income (FTE) | 499,718 | 548,760 | 488,434 | ||||||||||||||
Less: Tax equivalent adjustment | 6,146 | 5,843 | 6,597 | ||||||||||||||
Total interest income (GAAP) | $ | 493,572 | $ | 542,917 | $ | 481,837 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest expense | |||||||||||||||||
Deposits | $ | 58,603 | $ | 106,718 | $ | 60,112 | |||||||||||
FHLB advances and other borrowings | 11,028 | 9,951 | 8,848 | ||||||||||||||
Subordinated debentures and subordinated notes payable | 4,516 | 5,540 | 5,040 | ||||||||||||||
Total interest expense | $ | 74,147 | $ | 122,209 | $ | 74,000 |
2020 vs 2019 | 2019 vs 2018 | ||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,075 | $ | (2,164) | $ | (1,089) | $ | (283) | $ | 1,379 | $ | 1,096 | |||||||||||
Investment securities | 6,621 | (5,478) | 1,143 | 6,844 | 5,495 | 12,339 | |||||||||||||||||
Non-ASC 310-30 loans | 7,273 | (54,171) | (46,898) | 25,406 | 24,961 | 50,367 | |||||||||||||||||
ASC 310-30 loans | (1,384) | (814) | (2,198) | (2,670) | (806) | (3,476) | |||||||||||||||||
Loans | 5,889 | (54,985) | (49,096) | 22,736 | 24,155 | 46,891 | |||||||||||||||||
Total increase (decrease) | 13,585 | (62,627) | (49,042) | 29,297 | 31,029 | 60,326 | |||||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||||||||
Interest-bearing deposits | 4,384 | (38,095) | (33,711) | 2,209 | 24,004 | 26,213 | |||||||||||||||||
Time deposits | (7,302) | (7,102) | (14,404) | 7,710 | 12,683 | 20,393 | |||||||||||||||||
Securities sold under agreements to repurchase | (3) | (89) | (92) | (119) | (41) | (160) | |||||||||||||||||
FHLB advances and other borrowings | 3,200 | (2,031) | 1,169 | (2,332) | 3,595 | 1,263 | |||||||||||||||||
Subordinated debentures and subordinated notes payable | 10 | (1,034) | (1,024) | 8 | 492 | 500 | |||||||||||||||||
Total increase (decrease) | 289 | (48,351) | (48,062) | 7,476 | 40,733 | 48,209 | |||||||||||||||||
Increase (decrease) in net interest income (FTE) | $ | 13,296 | $ | (14,276) | $ | (980) | $ | 21,821 | $ | (9,704) | $ | 12,117 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Noninterest income | |||||||||||||||||
Service charges and other fees | $ | 37,741 | $ | 43,893 | $ | 51,077 | |||||||||||
Wealth management fees | 11,772 | 8,914 | 9,219 | ||||||||||||||
Mortgage banking income, net | 8,959 | 4,848 | 5,842 | ||||||||||||||
Net gain (loss) on sale of securities | 7,890 | (178) | 6 | ||||||||||||||
Other | 4,623 | 5,287 | 8,276 | ||||||||||||||
Subtotal, product and service fees | 70,985 | 62,764 | 74,420 | ||||||||||||||
Net (decrease) increase in fair value of loans at fair value | (32,529) | 61,412 | (45,407) | ||||||||||||||
Net realized and unrealized (loss) gain on derivatives | (38,439) | (63,444) | 44,596 | ||||||||||||||
Subtotal, loans at fair value and related derivatives | (70,968) | (2,032) | (811) | ||||||||||||||
Total noninterest income | $ | 17 | $ | 60,732 | $ | 73,609 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Noninterest expense | |||||||||||||||||
Salaries and employee benefits | $ | 149,441 | $ | 136,305 | $ | 135,352 | |||||||||||
Data processing and communication | 24,455 | 24,077 | 29,805 | ||||||||||||||
Occupancy and equipment | 21,273 | 20,784 | 20,330 | ||||||||||||||
Professional fees | 21,961 | 14,579 | 17,891 | ||||||||||||||
Advertising | 3,396 | 4,493 | 4,507 | ||||||||||||||
Net loss on repossessed property and other related expenses | 12,858 | 4,367 | 4,369 | ||||||||||||||
Goodwill and intangible assets impairment | 742,352 | — | — | ||||||||||||||
Other | 31,632 | 20,293 | 19,171 | ||||||||||||||
Total noninterest expense | $ | 1,007,368 | $ | 224,898 | $ | 231,425 |
As of September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance Sheet and Other Information | |||||||||||||||||
Total assets | $ | 12,604,439 | $ | 12,788,301 | $ | 12,116,808 | |||||||||||
Loans ¹ | 10,076,142 | 9,706,763 | 9,415,924 | ||||||||||||||
Allowance for loan and lease losses | 149,887 | 70,774 | 64,540 | ||||||||||||||
Deposits | 11,008,779 | 10,300,339 | 9,733,499 | ||||||||||||||
Stockholders' equity | 1,162,933 | 1,900,249 | 1,840,551 | ||||||||||||||
Tangible common equity ² | $ | 1,156,769 | $ | 1,155,052 | $ | 1,093,816 | |||||||||||
Tier 1 capital ratio | 11.8 | % | 11.7 | % | 12.0 | % | |||||||||||
Total capital ratio | 13.3 | % | 12.7 | % | 13.0 | % | |||||||||||
Tier 1 leverage ratio | 9.4 | % | 10.1 | % | 10.7 | % | |||||||||||
Common equity tier 1 ratio | 11.0 | % | 11.0 | % | 11.3 | % | |||||||||||
Tangible common equity / tangible assets ² | 9.2 | % | 9.6 | % | 9.6 | % | |||||||||||
Book value per share - GAAP | $ | 21.14 | $ | 33.76 | $ | 31.24 | |||||||||||
Tangible book value per share ² | $ | 21.03 | $ | 20.52 | $ | 18.57 | |||||||||||
Nonaccrual loans / total loans | 3.22 | % | 1.10 | % | 1.52 | % | |||||||||||
Net charge-offs (recoveries) / average total loans | 0.40 | % | 0.36 | % | 0.18 | % | |||||||||||
Allowance for loan and lease losses / total loans | 1.49 | % | 0.73 | % | 0.69 | % | |||||||||||
1 Loans include unpaid principal balance net of unamortized discount on acquired loans and unearned net deferred fees and costs and net loans in process.
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2 This is a non-GAAP financial measure we believe is helpful to interpreting our financial results. For more information on this non-GAAP financial measure, see "—Non-GAAP Financial Measures" and for a reconciliation to the most directly comparable GAAP financial measure, see "Item 6. Selected Financial Data—Non-GAAP Financial Measures Reconciliations".
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September 30, 2020 | |||||
(dollars in thousands) | |||||
Construction and development | $ | 415,440 | |||
Owner-occupied CRE | 1,411,894 | ||||
Non-owner-occupied CRE | 2,910,965 | ||||
Multifamily residential real estate | 536,642 | ||||
Commercial real estate | 5,274,941 | ||||
Agriculture real estate | 837,540 | ||||
Agriculture operating loans | 886,810 | ||||
Agriculture | 1,724,350 | ||||
Commercial non-real estate | 2,181,656 | ||||
Home equity lines of credit | 141,963 | ||||
Closed-end first lien | 559,514 | ||||
Closed-end junior lien | 31,526 | ||||
Residential construction | 97,099 | ||||
Residential real estate | 830,102 | ||||
Consumer | 63,206 | ||||
Other | 37,347 | ||||
Total unpaid principal balance | $ | 10,111,602 |
September 30, 2020 | |||||||||||||||||||||||
1 Year or Less | >1 Through 5 Years | >5 Years | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Maturity distribution: | |||||||||||||||||||||||
Commercial real estate | $ | 695,458 | $ | 2,155,538 | $ | 2,423,945 | $ | 5,274,941 | |||||||||||||||
Agriculture | 816,990 | 578,682 | 328,678 | 1,724,350 | |||||||||||||||||||
Commercial non-real estate | 674,111 | 1,157,451 | 350,094 | 2,181,656 | |||||||||||||||||||
Residential real estate | 230,526 | 180,939 | 418,637 | 830,102 | |||||||||||||||||||
Consumer | 7,709 | 41,963 | 13,534 | 63,206 | |||||||||||||||||||
Other lending | 37,347 | — | — | 37,347 | |||||||||||||||||||
Total | $ | 2,462,141 | $ | 4,114,573 | $ | 3,534,888 | $ | 10,111,602 |
September 30, 2020 | |||||||||||||||||
Fixed | Variable | Total | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Maturity distribution: | |||||||||||||||||
Commercial real estate | $ | 2,230,223 | $ | 2,349,260 | $ | 4,579,483 | |||||||||||
Agriculture | 696,438 | 210,922 | 907,360 | ||||||||||||||
Commercial non-real estate | 489,263 | 1,018,282 | 1,507,545 | ||||||||||||||
Residential real estate | 332,310 | 267,266 | 599,576 | ||||||||||||||
Consumer | 40,428 | 15,069 | 55,497 | ||||||||||||||
Total | $ | 3,788,662 | $ | 3,860,799 | $ | 7,649,461 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 36,764 | $ | 23,074 | $ | 8,985 | |||||||||||
Additions to other repossessed property | 14,088 | 25,668 | 25,926 | ||||||||||||||
Valuation adjustments and other | (10,776) | (2,328) | (1,447) | ||||||||||||||
Sales | (20,042) | (9,650) | (10,390) | ||||||||||||||
Balance, end of period | $ | 20,034 | $ | 36,764 | $ | 23,074 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Commercial real estate | |||||||||||||||||
Performing TDRs | $ | 23,215 | $ | 17,145 | $ | 2,649 | |||||||||||
Nonperforming TDRs | 11,913 | 904 | 2,616 | ||||||||||||||
Total | 35,128 | 18,049 | 5,265 | ||||||||||||||
Agriculture | |||||||||||||||||
Performing TDRs | 2,976 | 22,929 | 13,248 | ||||||||||||||
Nonperforming TDRs | 45,971 | 24,762 | 73,741 | ||||||||||||||
Total | 48,947 | 47,691 | 86,989 | ||||||||||||||
Commercial non-real estate | |||||||||||||||||
Performing TDRs | 8,734 | 4,398 | 3,420 | ||||||||||||||
Nonperforming TDRs | 4,803 | 4,257 | 656 | ||||||||||||||
Total | 13,537 | 8,655 | 4,076 | ||||||||||||||
Residential real estate | |||||||||||||||||
Performing TDRs | 277 | 263 | 389 | ||||||||||||||
Nonperforming TDRs | 74 | 102 | 143 | ||||||||||||||
Total | 351 | 365 | 532 | ||||||||||||||
Consumer | |||||||||||||||||
Performing TDRs | 3 | 107 | 77 | ||||||||||||||
Nonperforming TDRs | 31 | 48 | — | ||||||||||||||
Total | 34 | 155 | 77 | ||||||||||||||
Total performing TDRs | 35,205 | 44,842 | 19,783 | ||||||||||||||
Total nonperforming TDRs | 62,792 | 30,073 | 77,156 | ||||||||||||||
Total TDRs | $ | 97,997 | $ | 74,915 | $ | 96,939 |
At and for Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Assets covered by a FDIC loss-sharing agreement | |||||||||||||||||||||||||||||
Nonaccrual loans ¹ | $ | — | $ | 2,190 | $ | 2,699 | $ | 4,893 | $ | 4,095 | |||||||||||||||||||
TDRs | — | 43 | 154 | 191 | 255 | ||||||||||||||||||||||||
Other repossessed property | — | — | 131 | — | 106 | ||||||||||||||||||||||||
Allowance for loan and lease losses, loans covered by a FDIC loss-sharing agreement | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | 113 | $ | 262 | $ | 196 | $ | 907 | $ | 1,625 | |||||||||||||||||||
Additional impairment recorded | 442 | 309 | 386 | 196 | — | ||||||||||||||||||||||||
Recoupment of previously-recorded impairment | — | (379) | (302) | (892) | (677) | ||||||||||||||||||||||||
Charge-offs | (61) | (79) | (18) | (15) | (41) | ||||||||||||||||||||||||
Settlement upon expiration of loss-sharing arrangement | (494) | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | — | $ | 113 | $ | 262 | $ | 196 | $ | 907 | |||||||||||||||||||
Other repossessed property covered by a loss-sharing agreement | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 131 | $ | — | $ | 106 | $ | 61 | |||||||||||||||||||
Additions to other repossessed property | — | — | 131 | 14 | 182 | ||||||||||||||||||||||||
Valuation adjustments and other | — | — | — | — | (15) | ||||||||||||||||||||||||
Sales | — | (131) | — | (120) | (122) | ||||||||||||||||||||||||
Settlement upon expiration of loss-sharing agreement | — | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | — | $ | — | $ | 131 | $ | — | $ | 106 | |||||||||||||||||||
1 Includes nonperforming restructured loans.
|
September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Allocation of allowance for loan and lease losses: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 84,496 | $ | 16,827 | $ | 16,777 | $ | 16,941 | $ | 17,946 | |||||||||||||||||||
Agriculture | 27,018 | 30,819 | 28,121 | 25,757 | 25,115 | ||||||||||||||||||||||||
Commercial non-real estate | 27,599 | 17,567 | 13,610 | 14,114 | 12,990 | ||||||||||||||||||||||||
Residential real estate | 8,202 | 4,095 | 4,749 | 5,347 | 7,106 | ||||||||||||||||||||||||
Consumer | 915 | 427 | 257 | 329 | 438 | ||||||||||||||||||||||||
Other lending | 1,657 | 1,039 | 1,026 | 1,015 | 1,047 | ||||||||||||||||||||||||
Total | $ | 149,887 | $ | 70,774 | $ | 64,540 | $ | 63,503 | $ | 64,642 |
September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Allocation of allowance for loan and lease losses: | |||||||||||||||||||||||||||||
Commercial real estate | 56.4 | % | 23.8 | % | 26.0 | % | 26.7 | % | 27.8 | % | |||||||||||||||||||
Agriculture | 18.0 | % | 43.5 | % | 43.6 | % | 40.6 | % | 38.9 | % | |||||||||||||||||||
Commercial non-real estate | 18.4 | % | 24.8 | % | 21.1 | % | 22.2 | % | 20.1 | % | |||||||||||||||||||
Residential real estate | 5.5 | % | 5.8 | % | 7.3 | % | 8.4 | % | 11.0 | % | |||||||||||||||||||
Consumer | 0.6 | % | 0.6 | % | 0.4 | % | 0.5 | % | 0.6 | % | |||||||||||||||||||
Other lending | 1.1 | % | 1.5 | % | 1.6 | % | 1.6 | % | 1.6 | % | |||||||||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
U.S. Treasury securities | $ | 49,924 | $ | 94,178 | $ | 168,394 | |||||||||||
U.S. Agency securities | 24,974 | — | — | ||||||||||||||
Mortgage-backed securities: | |||||||||||||||||
Government National Mortgage Association | 485,689 | 501,139 | 442,458 | ||||||||||||||
Federal Home Loan Mortgage Corporation | 578,650 | 463,974 | 297,380 | ||||||||||||||
Federal National Mortgage Association | 287,842 | 322,340 | 188,192 | ||||||||||||||
Small Business Assistance Program | 244,653 | 316,502 | 260,458 | ||||||||||||||
States and political subdivision securities | 54,224 | 66,145 | 69,566 | ||||||||||||||
Other | 1,006 | 1,006 | 1,006 | ||||||||||||||
Total | $ | 1,726,962 | $ | 1,765,284 | $ | 1,427,454 |
September 30, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Amount | Weighted Avg. Cost | Amount | Weighted Avg. Cost | Amount | Weighted Avg. Cost | |||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 2,586,743 | — | % | $ | 1,956,025 | — | % | $ | 1,842,704 | — | % | ||||||||||||||
Interest-bearing demand | 7,139,058 | 0.26 | % | 6,248,638 | 1.00 | % | 6,043,717 | 0.95 | % | |||||||||||||||||
Time deposits, greater than $250,000 | 352,913 | 1.12 | % | 493,530 | 2.30 | % | 383,868 | 1.89 | % | |||||||||||||||||
Time deposits, less than or equal to $250,000 | 930,065 | 0.75 | % | 1,602,146 | 1.68 | % | 1,463,210 | 1.29 | % | |||||||||||||||||
Total | $ | 11,008,779 | 0.27 | % | $ | 10,300,339 | 0.98 | % | $ | 9,733,499 | 0.86 | % |
September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
South Dakota | $ | 2,839,891 | $ | 2,575,833 | $ | 2,422,208 | |||||||||||
Iowa / Missouri | 3,184,321 | 2,799,597 | 2,757,408 | ||||||||||||||
Nebraska / Kansas | 2,833,921 | 2,611,332 | 2,472,297 | ||||||||||||||
Arizona | 590,567 | 508,308 | 399,212 | ||||||||||||||
Colorado | 1,300,351 | 1,237,052 | 1,228,762 | ||||||||||||||
North Dakota / Minnesota | 30,228 | 55,258 | 50,359 | ||||||||||||||
Corporate and other | 229,500 | 512,959 | 403,253 | ||||||||||||||
Total deposits | $ | 11,008,779 | $ | 10,300,339 | $ | 9,733,499 |
At and for Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Short-term borrowings: | |||||||||||||||||
Securities sold under agreements to repurchase | $ | 65,506 | $ | 68,992 | $ | 90,907 | |||||||||||
FHLB advances | — | 15,000 | 100,000 | ||||||||||||||
Other short-term borrowings | 75,000 | — | — | ||||||||||||||
Total short-term borrowings | $ | 140,506 | $ | 83,992 | $ | 190,907 | |||||||||||
Maximum amount outstanding at any month-end during the period | $ | 539,809 | $ | 371,649 | $ | 808,325 | |||||||||||
Average amount outstanding during the period | $ | 218,340 | $ | 175,133 | $ | 442,398 | |||||||||||
Weighted average rate for the period | 0.75 | % | 1.72 | % | 1.32 | % | |||||||||||
Weighted average rate as of date indicated | 0.09 | % | 0.91 | % | 0.80 | % |
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Less Than 1 Year | 1 to 2 Years | 2 to 5 Years | >5 Years | Not Determined | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Contractual Obligations: | |||||||||||||||||||||||||||||||||||
Customer deposits | $ | 1,043,773 | $ | 148,329 | $ | 63,984 | $ | 2,988 | $ | 9,749,705 | $ | 11,008,779 | |||||||||||||||||||||||
Securities sold under agreement to repurchase | 65,506 | — | — | — | — | 65,506 | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | 75,000 | 30,000 | 90,000 | — | — | 195,000 | |||||||||||||||||||||||||||||
Subordinated debentures | — | — | — | 75,920 | — | 75,920 | |||||||||||||||||||||||||||||
Subordinated notes payable | — | — | 35,000 | — | — | 35,000 | |||||||||||||||||||||||||||||
Operating leases, net of sublease income | — | — | |||||||||||||||||||||||||||||||||
Accrued interest payable | 5,087 | — | — | — | — | 5,087 | |||||||||||||||||||||||||||||
Interest on FHLB advances | 3,372 | 3,363 | 3,747 | — | — | 10,482 | |||||||||||||||||||||||||||||
Interest on subordinated debentures | 1,876 | 1,876 | 5,628 | 16,963 | — | 26,343 | |||||||||||||||||||||||||||||
Interest on subordinated notes payable | 1,201 | 1,201 | 3,452 | — | — | 5,854 | |||||||||||||||||||||||||||||
Other Commitments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit—non-credit card | $ | 1,044,147 | $ | 303,226 | $ | 460,369 | $ | 202,369 | $ | — | $ | 2,010,111 | |||||||||||||||||||||||
Commitments to extend credit—credit card | 128,027 | — | — | — | — | 128,027 | |||||||||||||||||||||||||||||
Letters of credit | 65,707 | — | — | — | — | 65,707 |
September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Commitments to extend credit | $ | 2,138,138 | $ | 2,229,678 | $ | 2,344,550 | |||||||||||
Letters of credit | 65,707 | 68,983 | 69,613 | ||||||||||||||
Total | $ | 2,203,845 | $ | 2,298,661 | $ | 2,414,163 |
September 30, 2020 | ||||||||||||||||||||
Actual | ||||||||||||||||||||
Capital Amount | Ratio | Minimum Capital Requirement Ratio ¹ | Well Capitalized Ratio | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Great Western Bancorp, Inc. | ||||||||||||||||||||
Tier 1 capital | $ | 1,195,453 | 11.8 | % | 6.0 | % | N/A | |||||||||||||
Total capital | 1,350,658 | 13.3 | % | 8.0 | % | N/A | ||||||||||||||
Tier 1 leverage | 1,195,453 | 9.4 | % | 4.0 | % | N/A | ||||||||||||||
Common equity Tier 1 | 1,121,621 | 11.0 | % | 4.5 | % | N/A | ||||||||||||||
Risk-weighted assets | $ | 10,151,339 | ||||||||||||||||||
Great Western Bank | ||||||||||||||||||||
Tier 1 capital | $ | 1,187,905 | 11.7 | % | 6.0 | % | 8.0 | % | ||||||||||||
Total capital | 1,315,077 | 13.0 | % | 8.0 | % | 10.0 | % | |||||||||||||
Tier 1 leverage | 1,187,905 | 9.3 | % | 4.0 | % | 5.0 | % | |||||||||||||
Common equity Tier 1 | 1,187,905 | 11.7 | % | 4.5 | % | 6.5 | % | |||||||||||||
Risk-weighted assets | $ | 10,148,600 | ||||||||||||||||||
1 Does not include capital conservation buffer, which was 2.5% at September 30, 2020.
|
Estimated Increase (Decrease) in Annualized Adjusted Net Interest Income for the Fiscal Year Ended September 30, 2020 | |||||||||||
Change in Market Interest Rates as of September 30, 2020 | Fiscal Year Ending September 30, 2021 | Fiscal Year Ending September 30, 2022 | |||||||||
Immediate Shifts | |||||||||||
+400 basis points | 10.45 | % | 18.53 | % | |||||||
+300 basis points | 7.90 | % | 14.25 | % | |||||||
+200 basis points | 5.30 | % | 9.86 | % | |||||||
+100 basis points | 2.73 | % | 5.37 | % | |||||||
-100 basis points | (3.69) | % | (8.25) | % | |||||||
Gradual Shifts | |||||||||||
+400 basis points | 1.71 | % | |||||||||
+300 basis points | 1.41 | % | |||||||||
+200 basis points | 1.13 | % | |||||||||
+100 basis points | 0.84 | % | |||||||||
-100 basis points | (1.01) | % | |||||||||
Description of the Matter | At September 30, 2020, the Company’s total loans were $10.1 billion and the associated allowance for loan and lease losses (ALLL) was $149.9 million. As explained in Note 1 to the consolidated financial statements, the ALLL consists of reserves for probable losses that have been identified by management related to specific borrowing relationships that are individually evaluated for impairment (“specific reserve”), as well as probable losses inherent in the loan portfolio that are not specifically identified (“collective reserve”). Management’s estimate for the collective reserve reflects losses incurred in the loan portfolio as of the consolidated balance sheet reporting date. Incurred loss estimates are based on historical loss experience and portfolio mix. Incurred loss estimates may be adjusted for qualitative factors such as current economic conditions and current portfolio trends including credit quality, concentrations, aging of the portfolio, and/or significant policy and underwriting changes which are not reflected in the historical loss experience. | ||||
Auditing management’s estimate of the ALLL is complex due to the highly judgmental nature of the qualitative factors used to adjust incurred loss estimates reflected in the collective reserve. Management’s identification and measurement of the qualitative factors is highly judgmental and could have a significant effect on the ALLL. | |||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risk of material misstatement relating to the measurement of the ALLL. This included controls over management’s identification of qualitative risk factors requiring assessment, the review of the basis for determining whether an adjustment for such risk factor was warranted, the basis for the recorded adjustment amount, and the inputs to the recorded adjustments. | ||||
To test the reasonableness of the Company’s qualitative factor adjustments, we evaluated the basis for adjustments considered, the basis for concluding an adjustment was warranted when considering historical loss experience, and completeness of the inputs used by management in determining such adjustments. | |||||
Our procedures included, among others, evaluating the accuracy of management’s inputs by comparing the inputs to the Company’s historical loan performance data, third-party macroeconomic data and peer bank data. | |||||
In addition, we evaluated the overall ALLL amount, inclusive of the adjustments for qualitative factors, and whether the amount appropriately reflects losses incurred in the loan portfolio as of the consolidated balance sheet date. For example, we performed an analytical review of the overall ALLL amount using data from similar banking institutions with similar loan portfolios. We also reviewed subsequent events and transactions and considered whether they corroborate or contradict the Company’s conclusion. |
Description of the Matter | For the period ended September 30, 2020, the Company recorded a goodwill impairment charge of $740.6 million. As discussed in Note 1 and Note 10 to the consolidated financial statements, goodwill is tested for impairment on the basis of one reporting unit at least annually, or more frequently as events occur or circumstances change. In the second quarter of fiscal year 2020, the Company assessed relevant events and circumstances and determined it was appropriate to perform an impairment test. In performing the test, management used both a market capitalization approach and discounted cash flow approach to determine the estimated fair value of the reporting unit. As a result of this analysis, management determined that the carrying value of the reporting unit exceeded its fair value resulting in the recognition of a goodwill impairment charge. | ||||
Auditing management's goodwill impairment test was complex and highly judgmental due to the significant estimation required to determine the estimated fair value of the reporting unit. In particular, the fair value estimate was sensitive to significant assumptions, such as changes in the Company's financial forecast, the discount rate and terminal value, which are affected by expectations about future market or economic conditions, including uncertainty resulting from the COVID-19 pandemic. | |||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the controls over the Company's goodwill impairment process, including controls over management's review of the significant assumptions described above. | ||||
To test the estimated fair value of the Company's reporting unit, with the support of our valuation specialists, we performed audit procedures that included, among others, assessing methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analysis. With the support of the specialists, we compared the significant assumptions used by management to current industry and economic trends. We assessed the historical accuracy of management's estimates and performed sensitivity analyses of significant assumptions to evaluate changes in the fair value estimate of the reporting unit resulting from changes in the assumptions. In addition, we tested management's reconciliation of the fair value of the reporting unit to the market capitalization of the Company. |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 150,085 | $ | 201,487 | |||||||
Interest-bearing bank deposits | 282,802 | 41,987 | |||||||||
Cash and cash equivalents | 432,887 | 243,474 | |||||||||
Securities available for sale | 1,774,626 | 1,783,208 | |||||||||
Loans, net of unearned discounts and deferred fees, including $0 and $31,891 of loans covered by a FDIC loss share agreement at September 30, 2020 and 2019, respectively, and $655,185 and $812,991 of loans at fair value under the fair value option at September 30, 2020 and 2019, respectively, and $12,371 and $7,351 of loans held for sale at September 30, 2020 and 2019, respectively
|
10,076,142 | 9,706,763 | |||||||||
Allowance for loan and lease losses | (149,887) | (70,774) | |||||||||
Net loans | 9,926,255 | 9,635,989 | |||||||||
Premises and equipment, including $600 and $2,757 of property held for sale at September 30, 2020 and 2019, respectively
|
119,054 | 120,645 | |||||||||
Accrued interest receivable | 54,658 | 58,699 | |||||||||
Other repossessed property, including $0 of property covered by a FDIC loss share agreement at September 30, 2020 and 2019
|
20,034 | 36,764 | |||||||||
Goodwill | — | 739,023 | |||||||||
Cash surrender value of life insurance policies | 31,658 | 30,796 | |||||||||
Net deferred tax assets | 47,709 | 7,286 | |||||||||
Other assets | 197,558 | 132,417 | |||||||||
Total assets | $ | 12,604,439 | $ | 12,788,301 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Noninterest-bearing | $ | 2,586,743 | $ | 1,956,025 | |||||||
Interest-bearing | 8,422,036 | 8,344,314 | |||||||||
Total deposits | 11,008,779 | 10,300,339 | |||||||||
Securities sold under agreements to repurchase | 65,506 | 68,992 | |||||||||
FHLB advances and other borrowings | 195,000 | 340,000 | |||||||||
Subordinated debentures and subordinated notes payable | 108,832 | 108,636 | |||||||||
Accrued expenses and other liabilities | 63,389 | 70,085 | |||||||||
Total liabilities | 11,441,506 | 10,888,052 | |||||||||
Stockholders’ equity | |||||||||||
Common stock, $0.01 par value, authorized 500,000,000 shares; 55,014,189 shares issued and outstanding at September 30, 2020 and 56,283,659 shares issued and outstanding at September 30, 2019
|
550 | 563 | |||||||||
Additional paid-in capital | 1,183,647 | 1,228,714 | |||||||||
Retained earnings | (57,169) | 657,475 | |||||||||
Accumulated other comprehensive income | 35,905 | 13,497 | |||||||||
Total stockholders' equity | 1,162,933 | 1,900,249 | |||||||||
Total liabilities and stockholders' equity | $ | 12,604,439 | $ | 12,788,301 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Interest income | |||||||||||||||||
Loans | $ | 449,536 | $ | 498,935 | $ | 451,290 | |||||||||||
Investment securities | 42,653 | 41,510 | 29,171 | ||||||||||||||
Federal funds sold and other | 1,383 | 2,472 | 1,376 | ||||||||||||||
Total interest income | 493,572 | 542,917 | 481,837 | ||||||||||||||
Interest expense | |||||||||||||||||
Deposits | 58,603 | 106,718 | 60,112 | ||||||||||||||
FHLB advances and other borrowings | 11,028 | 9,951 | 8,848 | ||||||||||||||
Subordinated debentures and subordinated notes payable | 4,516 | 5,540 | 5,040 | ||||||||||||||
Total interest expense | 74,147 | 122,209 | 74,000 | ||||||||||||||
Net interest income | 419,425 | 420,708 | 407,837 | ||||||||||||||
Provision for loan and lease losses | 118,392 | 40,947 | 17,986 | ||||||||||||||
Net interest income after provision for loan and lease losses | 301,033 | 379,761 | 389,851 | ||||||||||||||
Noninterest income | |||||||||||||||||
Service charges and other fees | 37,741 | 43,893 | 51,077 | ||||||||||||||
Wealth management fees | 11,772 | 8,914 | 9,219 | ||||||||||||||
Mortgage banking income, net | 8,959 | 4,848 | 5,842 | ||||||||||||||
Net gain (loss) on sale of securities | 7,890 | (178) | 6 | ||||||||||||||
Net (decrease) increase in fair value of loans at fair value | (32,529) | 61,412 | (45,407) | ||||||||||||||
Net realized and unrealized (loss) gain on derivatives | (38,439) | (63,444) | 44,596 | ||||||||||||||
Other | 4,623 | 5,287 | 8,276 | ||||||||||||||
Total noninterest income | 17 | 60,732 | 73,609 | ||||||||||||||
Noninterest expense | |||||||||||||||||
Salaries and employee benefits | 149,441 | 136,305 | 135,352 | ||||||||||||||
Data processing and communication | 24,455 | 24,077 | 29,805 | ||||||||||||||
Occupancy and equipment | 21,273 | 20,784 | 20,330 | ||||||||||||||
Professional fees | 21,961 | 14,579 | 17,891 | ||||||||||||||
Advertising | 3,396 | 4,493 | 4,507 | ||||||||||||||
Net loss on repossessed property and other related expenses | 12,858 | 4,367 | 4,369 | ||||||||||||||
Goodwill and intangible assets impairment | 742,352 | — | — | ||||||||||||||
Other | 31,632 | 20,293 | 19,171 | ||||||||||||||
Total noninterest expense | 1,007,368 | 224,898 | 231,425 | ||||||||||||||
(Loss) income before income taxes | (706,318) | 215,595 | 232,035 | ||||||||||||||
(Benefit from) provision for income taxes | (25,510) | 48,230 | 74,119 | ||||||||||||||
Net (loss) income | $ | (680,808) | $ | 167,365 | $ | 157,916 | |||||||||||
Basic earnings per common share | |||||||||||||||||
Weighted average common shares outstanding | 55,612,251 | 57,154,865 | 58,938,169 | ||||||||||||||
Basic earnings per share | $ | (12.24) | $ | 2.93 | $ | 2.68 | |||||||||||
Diluted earnings per common share | |||||||||||||||||
Weighted average diluted common shares outstanding | 55,612,251 | 57,257,061 | 59,131,650 | ||||||||||||||
Diluted earnings per share | $ | (12.24) | $ | 2.92 | $ | 2.67 | |||||||||||
Dividends per share | |||||||||||||||||
Dividends paid | $ | 42,456 | $ | 62,904 | $ | 53,002 | |||||||||||
Dividends per share | $ | 0.76 | $ | 1.10 | $ | 0.90 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net (loss) income | $ | (680,808) | $ | 167,365 | $ | 157,916 | |||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
Net unrealized holding gain (loss) arising during the period | 37,630 | 59,550 | (32,816) | ||||||||||||||
Reclassification adjustment for net (gain) loss realized in net income | (7,890) | 178 | (6) | ||||||||||||||
Income tax (expense) benefit | (7,332) | (14,722) | 9,244 | ||||||||||||||
Net change in unrealized gain (loss) on securities available for sale | 22,408 | 45,006 | (23,578) | ||||||||||||||
Defined benefit pension plan obligation ¹: | |||||||||||||||||
Net unrealized holding loss arising during the period | — | — | (329) | ||||||||||||||
Income tax benefit | — | — | 125 | ||||||||||||||
Net change in unrealized loss in defined benefit pension plan obligation | — | — | (204) | ||||||||||||||
Other comprehensive income (loss), net of tax | 22,408 | 45,006 | (23,782) | ||||||||||||||
Comprehensive (loss) income | $ | (658,400) | $ | 212,371 | $ | 134,134 | |||||||||||
1 The Company's Board of Directors voted to terminate the defined benefit pension plan ("Pension Plan") effective February 1, 2018. Transfer of all Pension Plan assets, liabilities and administrative responsibilities were completed as of September 30, 2018.
|
Comprehensive Income | Common Stock Par Value |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated Other Comprehensive (Loss) Income | Total | ||||||||||||||||||||||||||||||
Balance, October 1, 2017 | $ | 588 | $ | 1,314,039 | $ | 445,747 | $ | (5,374) | $ | 1,755,000 | |||||||||||||||||||||||||
Net income | $ | 157,916 | — | — | 157,916 | — | 157,916 | ||||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | (23,782) | — | — | — | (23,782) | (23,782) | |||||||||||||||||||||||||||||
Total comprehensive income | $ | 134,134 | |||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | 1 | 4,418 | — | — | 4,419 | ||||||||||||||||||||||||||||||
Reclassification due to adoption of ASU 2018-02 ¹ | — | — | 2,353 | (2,353) | — | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.90 per share
|
— | — | (53,002) | — | (53,002) | ||||||||||||||||||||||||||||||
Balance, September 30, 2018 | $ | 589 | $ | 1,318,457 | $ | 553,014 | $ | (31,509) | $ | 1,840,551 | |||||||||||||||||||||||||
Net income | $ | 167,365 | — | — | 167,365 | — | 167,365 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 45,006 | — | — | — | 45,006 | 45,006 | |||||||||||||||||||||||||||||
Total comprehensive income | $ | 212,371 | |||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | 1 | 4,581 | — | — | 4,582 | ||||||||||||||||||||||||||||||
Repurchase of common stock | (27) | (94,324) | — | — | (94,351) | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $1.10 per share
|
— | — | (62,904) | — | (62,904) | ||||||||||||||||||||||||||||||
Balance, September 30, 2019 | $ | 563 | $ | 1,228,714 | $ | 657,475 | $ | 13,497 | $ | 1,900,249 | |||||||||||||||||||||||||
Net (loss) | $ | (680,808) | — | — | (680,808) | — | (680,808) | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 22,408 | — | — | — | 22,408 | 22,408 | |||||||||||||||||||||||||||||
Total comprehensive (loss) | $ | (658,400) | |||||||||||||||||||||||||||||||||
Cumulative effect adjustment ² | — | — | (182) | — | (182) | ||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | 1 | 3,704 | — | — | 3,705 | ||||||||||||||||||||||||||||||
Repurchase of common stock | (14) | (39,969) | — | — | (39,983) | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.76 per share
|
— | (8,802) | (33,654) | — | (42,456) | ||||||||||||||||||||||||||||||
Balance, September 30, 2020 | $ | 550 | $ | 1,183,647 | $ | (57,169) | $ | 35,905 | $ | 1,162,933 | |||||||||||||||||||||||||
1 Reclassification due to adoption of ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
|
|||||||||||||||||||||||||||||||||||
2 Cumulative effect adjustment relates to the adoption of ASU 2016-02, Leases (Topic 872).and related ASUs on October 1, 2019. See Note 2, "New Accounting Pronouncements," for additional information.
|
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Operating activities | |||||||||||||||||
Net (loss) income | $ | (680,808) | $ | 167,365 | $ | 157,916 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 26,354 | 13,655 | 13,093 | ||||||||||||||
Amortization of FDIC indemnification asset | 1,012 | 1,386 | 2,778 | ||||||||||||||
Net loss on sale of securities and other assets | 2,851 | 2,825 | 5,731 | ||||||||||||||
Net gain on sale of loans | (9,910) | (5,680) | (6,829) | ||||||||||||||
Provision for loan and lease losses | 118,392 | 40,947 | 17,986 | ||||||||||||||
Goodwill and intangible assets impairment | 742,352 | — | — | ||||||||||||||
Provision for (reversal of) loan servicing rights loss | 9 | (4) | (73) | ||||||||||||||
Stock-based compensation | 3,705 | 4,582 | 4,419 | ||||||||||||||
Originations of residential real estate loans held for sale | (501,947) | (289,973) | (264,514) | ||||||||||||||
Proceeds from sales of residential real estate loans held for sale | 506,837 | 293,758 | 273,343 | ||||||||||||||
Net deferred income taxes | (47,754) | 8,124 | 21,302 | ||||||||||||||
Changes in: | |||||||||||||||||
Accrued interest receivable | 4,040 | 249 | (5,772) | ||||||||||||||
Other assets | (77,271) | (48,524) | (34,209) | ||||||||||||||
Accrued interest payable and other liabilities | (5,398) | 2,949 | (2,742) | ||||||||||||||
Net cash provided by operating activities | 82,464 | 191,659 | 182,429 | ||||||||||||||
Investing activities | |||||||||||||||||
Purchase of securities available for sale | (677,873) | (774,707) | (334,900) | ||||||||||||||
Proceeds from sales of securities available for sale | 151,899 | 175,007 | 24,971 | ||||||||||||||
Proceeds from maturities of securities available for sale | 564,123 | 257,201 | 254,985 | ||||||||||||||
Net increase in loans | (426,156) | (348,479) | (490,804) | ||||||||||||||
Payment of covered losses from FDIC indemnification claims | (47) | (14) | (770) | ||||||||||||||
Purchase of premises and equipment | (6,108) | (15,643) | (13,878) | ||||||||||||||
Proceeds from sale of premises and equipment | 44 | 606 | 4,599 | ||||||||||||||
Proceeds from sale of repossessed property | 20,392 | 9,981 | 7,468 | ||||||||||||||
Purchase of FHLB stock | (113,437) | (89,948) | (64,172) | ||||||||||||||
Proceeds from redemption of FHLB stock | 122,483 | 87,528 | 79,190 | ||||||||||||||
Net cash paid in business acquisition | (4,711) | — | — | ||||||||||||||
Net cash used in investing activities | (369,391) | (698,468) | (533,311) | ||||||||||||||
Financing activities | |||||||||||||||||
Net increase in deposits | 708,563 | 567,004 | 756,145 | ||||||||||||||
Net decrease in securities sold under agreements to repurchase and other short-term borrowings | (3,486) | (21,915) | (41,729) | ||||||||||||||
Proceeds from FHLB advances and other long-term borrowings | 755,000 | 810,000 | 150,000 | ||||||||||||||
Repayments on FHLB advances and other long-term borrowings | (900,000) | (745,000) | (518,200) | ||||||||||||||
Common stock repurchased | (39,983) | (94,351) | — | ||||||||||||||
Taxes paid related to net share settlement of equity awards | (1,298) | (1,247) | (4,032) | ||||||||||||||
Dividends paid | (42,456) | (62,904) | (53,002) | ||||||||||||||
Net cash provided by financing activities | 476,340 | 451,587 | 289,182 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 189,413 | (55,222) | (61,700) | ||||||||||||||
Cash and cash equivalents, beginning of period | 243,474 | 298,696 | 360,396 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 432,887 | $ | 243,474 | $ | 298,696 | |||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Cash payments for interest | $ | 85,151 | $ | 114,891 | $ | 69,633 | |||||||||||
Cash payments for income taxes | $ | 29,405 | $ | 46,884 | $ | 50,020 | |||||||||||
Supplemental disclosure of noncash investing and financing activities | |||||||||||||||||
Loans transferred to repossessed properties | $ | (14,088) | $ | (25,668) | $ | (25,926) | |||||||||||
Intangible | Method | Years | ||||||
Core deposit | Straight-line or effective yield |
5 - 10
|
||||||
Customer relationships | Straight-line |
13
|
||||||
Other intangibles | Straight-line |
1.25 - 9.33
|
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||
U.S. Treasury securities | $ | 49,924 | $ | 228 | $ | — | $ | 50,152 | |||||||||||||||
U.S. Agency securities | 24,974 | 86 | — | 25,060 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Government National Mortgage Association | 485,689 | 11,481 | (43) | 497,127 | |||||||||||||||||||
Federal Home Loan Mortgage Corporation | 578,650 | 18,919 | (9) | 597,560 | |||||||||||||||||||
Federal National Mortgage Association | 287,842 | 7,788 | (16) | 295,614 | |||||||||||||||||||
Small Business Assistance Program | 244,653 | 7,884 | (58) | 252,479 | |||||||||||||||||||
States and political subdivision securities | 54,224 | 1,356 | — | 55,580 | |||||||||||||||||||
Other | 1,006 | 48 | — | 1,054 | |||||||||||||||||||
Total | $ | 1,726,962 | $ | 47,790 | $ | (126) | $ | 1,774,626 |
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||
U.S. Treasury securities | $ | 94,178 | $ | 599 | $ | (32) | $ | 94,745 | |||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||
Government National Mortgage Association | 501,139 | 3,374 | (3,027) | 501,486 | |||||||||||||||||||
Federal Home Loan Mortgage Corporation | 463,974 | 8,840 | (770) | 472,044 | |||||||||||||||||||
Federal National Mortgage Association | 322,340 | 5,409 | (398) | 327,351 | |||||||||||||||||||
Small Business Assistance Program | 316,502 | 3,674 | (154) | 320,022 | |||||||||||||||||||
States and political subdivision securities | 66,145 | 494 | (116) | 66,523 | |||||||||||||||||||
Other | 1,006 | 31 | — | 1,037 | |||||||||||||||||||
Total | $ | 1,765,284 | $ | 22,421 | $ | (4,497) | $ | 1,783,208 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||||
(dollars in thousands) | |||||||||||||||||
Due in one year or less | $ | 67,131 | $ | 67,456 | $ | 58,377 | $ | 58,343 | |||||||||
Due after one year through five years | 51,779 | 52,694 | 89,836 | 90,601 | |||||||||||||
Due after five years through ten years | 10,212 | 10,642 | 12,110 | 12,324 | |||||||||||||
Due after ten years | — | — | — | — | |||||||||||||
129,122 | 130,792 | 160,323 | 161,268 | ||||||||||||||
Mortgage-backed securities | 1,596,834 | 1,642,780 | 1,603,955 | 1,620,903 | |||||||||||||
Securities without contractual maturities | 1,006 | 1,054 | 1,006 | 1,037 | |||||||||||||
Total | $ | 1,726,962 | $ | 1,774,626 | $ | 1,765,284 | $ | 1,783,208 |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
|||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Mortgage-backed securities | 71,547 | (103) | 27,897 | (23) | 99,444 | (126) | ||||||||||||||||||||
States and political subdivision securities | — | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 71,547 | $ | (103) | $ | 27,897 | $ | (23) | $ | 99,444 | $ | (126) |
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
Estimated
Fair Value |
Unrealized
Losses |
|||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
As of September 30, 2019 | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | 44,729 | $ | (32) | $ | 44,729 | $ | (32) | ||||||||||||||
Mortgage-backed securities | 94,612 | (205) | 474,979 | (4,144) | 569,591 | (4,349) | ||||||||||||||||||||
States and political subdivision securities | — | — | 23,693 | (116) | 23,693 | (116) | ||||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 94,612 | $ | (205) | $ | 543,401 | $ | (4,292) | $ | 638,013 | $ | (4,497) |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Commercial real estate | $ | 5,274,941 | $ | 5,092,410 | |||||||
Agriculture | 1,724,350 | 2,008,644 | |||||||||
Commercial non-real estate | 2,181,656 | 1,719,956 | |||||||||
Residential real estate | 830,102 | 812,208 | |||||||||
Consumer | 63,206 | 51,925 | |||||||||
Other | 37,347 | 47,541 | |||||||||
Ending balance | 10,111,602 | 9,732,684 | |||||||||
Less: Unamortized discount on acquired loans | (8,215) | (13,655) | |||||||||
Unearned net deferred fees and costs and net loans in process | (27,245) | (12,266) | |||||||||
Total | $ | 10,076,142 | $ | 9,706,763 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
Nonaccrual loans | (dollars in thousands) | ||||||||||
Commercial real estate | $ | 73,146 | $ | 14,973 | |||||||
Agriculture | 217,642 | 77,880 | |||||||||
Commercial non-real estate | 26,843 | 9,502 | |||||||||
Residential real estate | 4,441 | 2,661 | |||||||||
Consumer | 74 | 74 | |||||||||
Total | $ | 322,146 | $ | 105,090 |
As of September 30, 2020 | Commercial Real Estate | Agriculture |
Commercial
Non-Real Estate |
Residential Real Estate ¹ | Consumer ¹ | Other | Total | ||||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||||||
Pass | $ | 4,062,814 | $ | 968,875 | $ | 1,851,323 | $ | 806,436 | $ | 62,285 | $ | 37,347 | $ | 7,789,080 | |||||||||||||||||||||||||||
Watchlist | 577,399 | 265,714 | 94,401 | 6,972 | 709 | — | 945,195 | ||||||||||||||||||||||||||||||||||
Substandard | 229,467 | 348,910 | 94,316 | 13,173 | 93 | — | 685,959 | ||||||||||||||||||||||||||||||||||
Doubtful | 3,323 | 11,540 | 11,623 | 1,473 | 4 | — | 27,963 | ||||||||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance | 4,873,003 | 1,595,039 | 2,051,663 | 828,054 | 63,091 | 37,347 | 9,448,197 | ||||||||||||||||||||||||||||||||||
Loans covered by a FDIC loss sharing agreement | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 4,873,003 | $ | 1,595,039 | $ | 2,051,663 | $ | 828,054 | $ | 63,091 | $ | 37,347 | $ | 9,448,197 | |||||||||||||||||||||||||||
1 The Company generally does not risk rate residential real estate or consumer loans unless a default event such as a bankruptcy or extended nonperformance takes place. Alternatively, standard credit scoring systems are used to assess credit risks of residential real estate and consumer loans.
|
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due |
Total
Past Due |
Current | Total Financing Receivables | ||||||||||||||||||||||||||||||
As of September 30, 2020 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 7,639 | $ | 1,255 | $ | 51,691 | $ | 60,585 | $ | 4,812,418 | $ | 4,873,003 | |||||||||||||||||||||||
Agriculture | 4,371 | 55,649 | 96,290 | 156,310 | 1,438,729 | 1,595,039 | |||||||||||||||||||||||||||||
Commercial non-real estate | 2,865 | 647 | 8,362 | 11,874 | 2,039,789 | 2,051,663 | |||||||||||||||||||||||||||||
Residential real estate | 1,358 | 1,101 | 3,073 | 5,532 | 822,522 | 828,054 | |||||||||||||||||||||||||||||
Consumer | 37 | 8 | 22 | 67 | 63,024 | 63,091 | |||||||||||||||||||||||||||||
Other | — | — | — | — | 37,347 | 37,347 | |||||||||||||||||||||||||||||
Ending balance | 16,270 | 58,660 | 159,438 | 234,368 | 9,213,829 | 9,448,197 | |||||||||||||||||||||||||||||
Loans covered by a FDIC loss sharing agreement | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 16,270 | $ | 58,660 | $ | 159,438 | $ | 234,368 | $ | 9,213,829 | $ | 9,448,197 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due |
Total
Past Due |
Current | Total Financing Receivables | ||||||||||||||||||||||||||||||
As of September 30, 2019 | (dollars in thousands) | ||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,587 | $ | 570 | $ | 2,475 | $ | 6,632 | $ | 4,566,452 | $ | 4,573,084 | |||||||||||||||||||||||
Agriculture | 13,411 | 1,267 | 33,089 | 47,767 | 1,806,772 | 1,854,539 | |||||||||||||||||||||||||||||
Commercial non-real estate | 3,932 | 120 | 4,424 | 8,476 | 1,561,739 | 1,570,215 | |||||||||||||||||||||||||||||
Residential real estate | 311 | 676 | 939 | 1,926 | 775,086 | 777,012 | |||||||||||||||||||||||||||||
Consumer | 61 | 110 | 7 | 178 | 51,580 | 51,758 | |||||||||||||||||||||||||||||
Other | — | — | — | — | 47,541 | 47,541 | |||||||||||||||||||||||||||||
Ending balance | 21,302 | 2,743 | 40,934 | 64,979 | 8,809,170 | 8,874,149 | |||||||||||||||||||||||||||||
Loans covered by a FDIC loss sharing agreement | 536 | 410 | 331 | 1,277 | 30,614 | 31,891 | |||||||||||||||||||||||||||||
Total | $ | 21,838 | $ | 3,153 | $ | 41,265 | $ | 66,256 | $ | 8,839,784 | $ | 8,906,040 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||||||||
Impaired loans: | (dollars in thousands) | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Commercial real estate | $ | 111,121 | $ | 114,034 | $ | 25,087 | $ | 26,003 | $ | 26,297 | $ | 4,159 | |||||||||||
Agriculture | 53,052 | 55,145 | 8,151 | 98,392 | 104,350 | 8,234 | |||||||||||||||||
Commercial non-real estate | 39,821 | 47,571 | 7,822 | 21,331 | 21,777 | 6,062 | |||||||||||||||||
Residential real estate | 5,670 | 6,314 | 1,903 | 3,829 | 4,311 | 1,795 | |||||||||||||||||
Consumer | 98 | 109 | 30 | 207 | 214 | 97 | |||||||||||||||||
Total impaired loans with an allowance recorded | 209,762 | 223,173 | 42,993 | 149,762 | 156,949 | 20,347 | |||||||||||||||||
With no allowance recorded: | |||||||||||||||||||||||
Commercial real estate | 121,380 | 161,211 | — | 28,272 | 66,631 | — | |||||||||||||||||
Agriculture | 308,734 | 332,272 | — | 231,087 | 255,308 | — | |||||||||||||||||
Commercial non-real estate | 66,542 | 75,365 | — | 21,579 | 31,414 | — | |||||||||||||||||
Residential real estate | 6,543 | 8,818 | — | 3,290 | 5,454 | — | |||||||||||||||||
Consumer | — | 108 | — | 1 | 108 | — | |||||||||||||||||
Total impaired loans with no allowance recorded | 503,199 | 577,774 | — | 284,229 | 358,915 | — | |||||||||||||||||
Total impaired loans | $ | 712,961 | $ | 800,947 | $ | 42,993 | $ | 433,991 | $ | 515,864 | $ | 20,347 |
Fiscal Years Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized While on Impaired Status | Average Recorded Investment | Interest Income Recognized While on Impaired Status | Average Recorded Investment | Interest Income Recognized While on Impaired Status | |||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Commercial real estate | $ | 137,017 | $ | 8,528 | $ | 42,374 | $ | 2,339 | $ | 54,434 | $ | 2,815 | ||||||||||||||
Agriculture | 355,719 | 22,927 | 223,146 | 13,093 | 127,483 | 4,767 | ||||||||||||||||||||
Commercial non-real estate | 89,152 | 7,745 | 28,196 | 1,791 | 28,938 | 1,405 | ||||||||||||||||||||
Residential real estate | 10,408 | 691 | 6,889 | 410 | 7,156 | 452 | ||||||||||||||||||||
Consumer | 138 | 9 | 231 | 20 | 219 | 14 | ||||||||||||||||||||
Total | $ | 592,434 | $ | 39,900 | $ | 300,836 | $ | 17,653 | $ | 218,230 | $ | 9,453 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||
Accruing | Nonaccrual | Accruing | Nonaccrual | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Commercial real estate | $ | 23,215 | $ | 11,913 | $ | 17,145 | $ | 904 | |||||||||
Agriculture | 2,976 | 45,971 | 22,929 | 24,762 | |||||||||||||
Commercial non-real estate | 8,734 | 4,803 | 4,398 | 4,257 | |||||||||||||
Residential real estate | 277 | 74 | 263 | 102 | |||||||||||||
Consumer | 3 | 31 | 107 | 48 | |||||||||||||
Total | $ | 35,205 | $ | 62,792 | $ | 44,842 | $ | 30,073 |
September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate | 4 | $ | 17,586 | $ | 17,586 | 2 | $ | 15,466 | $ | 15,466 | 1 | $ | 2,041 | $ | 2,041 | ||||||||||||||||||||
Agriculture | 2 | 993 | 993 | 16 | 11,537 | 11,537 | 5 | 10,753 | 10,753 | ||||||||||||||||||||||||||
Commercial non-real estate | 5 | 6,353 | 6,353 | 2 | 1,445 | 1,445 | — | — | — | ||||||||||||||||||||||||||
Residential real estate | 1 | 50 | 50 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | 2 | 188 | 188 | 1 | 73 | 73 | ||||||||||||||||||||||||||
Total accruing | 12 | $ | 24,982 | $ | 24,982 | 22 | $ | 28,636 | $ | 28,636 | 7 | $ | 12,867 | $ | 12,867 | ||||||||||||||||||||
Change in recorded investment due to principal paydown at time of modification | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||
Change in recorded investment due to chargeoffs at time of modification | — | — | — | — | — | — | — | — | — |
September 30, 2020 | September 30, 2019 | September 30, 2018 | |||||||||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 2,216 | $ | 2,216 | 1 | $ | 882 | $ | 882 | — | $ | — | $ | — | ||||||||||||||||||||
Agriculture | 12 | 27,807 | 27,807 | 9 | 5,802 | 5,802 | 9 | 9,990 | 9,990 | ||||||||||||||||||||||||||
Commercial non-real estate | 5 | 1,752 | 1,752 | 2 | 3,699 | 3,699 | — | — | — | ||||||||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total nonaccruing | 18 | $ | 31,775 | $ | 31,775 | 12 | $ | 10,383 | $ | 10,383 | 9 | $ | 9,990 | $ | 9,990 | ||||||||||||||||||||
Change in recorded investment due to principal paydown at time of modification | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | ||||||||||||||||||||
Change in recorded investment due to chargeoffs at time of modification | — | — | — | — | — | — | — | — | — |
Fiscal Years Ended September 30, | ||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | |||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Commercial real estate | 1 | $ | — | — | $ | — | — | $ | — | |||||||||||||||||
Agriculture | 10 | 1,144 | — | — | 1 | 366 | ||||||||||||||||||||
Commercial non-real estate | 4 | 921 | — | — | — | — | ||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | — | — | 1 | — | — | — | ||||||||||||||||||||
Total | 15 | $ | 2,065 | 1 | $ | — | 1 | $ | 366 |
Fiscal Year Ended September 30, 2020 | Commercial Real Estate | Agriculture | Commercial Non-Real Estate | Residential Real Estate | Consumer | Other | Total | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Beginning balance, October 1, 2019 | $ | 16,827 | $ | 30,819 | $ | 17,567 | $ | 4,095 | $ | 427 | $ | 1,039 | $ | 70,774 | |||||||||||||||||||||||||||
Charge-offs | (5,181) | (21,705) | (14,178) | (615) | (87) | (2,984) | (44,750) | ||||||||||||||||||||||||||||||||||
Recoveries | 1,395 | 2,189 | 1,018 | 453 | 78 | 338 | 5,471 | ||||||||||||||||||||||||||||||||||
Provision | 71,474 | 15,980 | 23,192 | 3,827 | 467 | 3,264 | 118,204 | ||||||||||||||||||||||||||||||||||
(Improvement) impairment of ASC 310-30 loans | (19) | (265) | — | 442 | 30 | — | 188 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2020 | $ | 84,496 | $ | 27,018 | $ | 27,599 | $ | 8,202 | $ | 915 | $ | 1,657 | $ | 149,887 |
Fiscal Year Ended September 30, 2019 | Commercial Real Estate | Agriculture | Commercial Non-Real Estate | Residential Real Estate | Consumer | Other | Total | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Beginning balance, October 1, 2018 | $ | 16,777 | $ | 28,121 | $ | 13,610 | $ | 4,749 | $ | 257 | $ | 1,026 | $ | 64,540 | |||||||||||||||||||||||||||
Charge-offs | (1,511) | (24,847) | (7,895) | (998) | (452) | (1,358) | (37,061) | ||||||||||||||||||||||||||||||||||
Recoveries | 567 | 385 | 392 | 468 | 174 | 362 | 2,348 | ||||||||||||||||||||||||||||||||||
Provision | 1,514 | 27,160 | 11,431 | (56) | 448 | 1,009 | 41,506 | ||||||||||||||||||||||||||||||||||
(Improvement) impairment of ASC 310-30 loans | (520) | — | 29 | (68) | — | — | (559) | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2019 | $ | 16,827 | $ | 30,819 | $ | 17,567 | $ | 4,095 | $ | 427 | $ | 1,039 | $ | 70,774 |
Fiscal Year Ended September 30, 2018 | Commercial Real Estate | Agriculture | Commercial Non-Real Estate | Residential Real Estate | Consumer | Other | Total | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Beginning balance, October 1, 2017 | $ | 16,941 | $ | 25,757 | $ | 14,114 | $ | 5,347 | $ | 329 | $ | 1,015 | $ | 63,503 | |||||||||||||||||||||||||||
Charge-offs | (3,925) | (9,473) | (3,813) | (569) | (192) | (1,932) | (19,904) | ||||||||||||||||||||||||||||||||||
Recoveries | 533 | 332 | 994 | 337 | 141 | 618 | 2,955 | ||||||||||||||||||||||||||||||||||
Provision | 3,231 | 11,355 | 2,315 | (451) | (21) | 1,325 | 17,754 | ||||||||||||||||||||||||||||||||||
(Improvement) impairment of ASC 310-30 loans | (3) | 150 | — | 85 | — | — | 232 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2018 | $ | 16,777 | $ | 28,121 | $ | 13,610 | $ | 4,749 | $ | 257 | $ | 1,026 | $ | 64,540 |
As of September 30, 2020 | Commercial Real Estate | Agriculture | Commercial Non-Real Estate | Residential Real Estate | Consumer | Other | Total | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 25,087 | $ | 8,151 | $ | 7,822 | $ | 1,903 | $ | 30 | $ | — | $ | 42,993 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 59,268 | 18,867 | 19,748 | 5,805 | 855 | 1,657 | 106,200 | ||||||||||||||||||||||||||||||||||
ASC 310-30 loans | 141 | — | 29 | 494 | 30 | — | 694 | ||||||||||||||||||||||||||||||||||
Total allowance | $ | 84,496 | $ | 27,018 | $ | 27,599 | $ | 8,202 | $ | 915 | $ | 1,657 | $ | 149,887 | |||||||||||||||||||||||||||
Financing Receivables | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 232,501 | $ | 361,786 | $ | 106,363 | $ | 12,213 | $ | 98 | $ | — | $ | 712,961 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 4,543,704 | 1,188,442 | 1,200,794 | 777,610 | 62,701 | 37,347 | 7,810,598 | ||||||||||||||||||||||||||||||||||
ASC 310-30 loans | 20,928 | 2,969 | 192 | 25,570 | 292 | — | 49,951 | ||||||||||||||||||||||||||||||||||
Loans Outstanding | $ | 4,797,133 | $ | 1,553,197 | $ | 1,307,349 | $ | 815,393 | $ | 63,091 | $ | 37,347 | $ | 8,573,510 |
As of September 30, 2019 | Commercial Real Estate | Agriculture | Commercial Non-Real Estate | Residential Real Estate | Consumer | Other | Total | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,159 | $ | 8,234 | $ | 6,062 | $ | 1,795 | $ | 97 | $ | — | $ | 20,347 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 12,509 | 22,320 | 11,476 | 2,188 | 330 | 1,039 | 49,862 | ||||||||||||||||||||||||||||||||||
ASC 310-30 loans | 159 | 265 | 29 | 112 | — | — | 565 | ||||||||||||||||||||||||||||||||||
Total allowance | $ | 16,827 | $ | 30,819 | $ | 17,567 | $ | 4,095 | $ | 427 | $ | 1,039 | $ | 70,774 | |||||||||||||||||||||||||||
Financing Receivables | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 54,275 | $ | 329,479 | $ | 42,910 | $ | 7,119 | $ | 208 | $ | — | $ | 433,991 | |||||||||||||||||||||||||||
Collectively evaluated for impairment | 4,418,611 | 1,501,164 | 1,480,949 | 763,645 | 51,112 | 47,541 | 8,263,022 | ||||||||||||||||||||||||||||||||||
ASC 310-30 loans | 22,124 | 2,756 | 221 | 30,280 | 438 | — | 55,819 | ||||||||||||||||||||||||||||||||||
Loans Outstanding | $ | 4,495,010 | $ | 1,833,399 | $ | 1,524,080 | $ | 801,044 | $ | 51,758 | $ | 47,541 | $ | 8,752,832 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 26,047 | $ | 34,973 | $ | 44,131 | |||||||||||
Accretion | (6,869) | (9,202) | (13,193) | ||||||||||||||
Reclassification (to) from nonaccretable difference | (3,790) | 276 | 4,035 | ||||||||||||||
Balance, end of period | $ | 15,388 | $ | 26,047 | $ | 34,973 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Outstanding Balance ¹ | Recorded Investment ² | Carrying Value ³ | Outstanding Balance ¹ | Recorded Investment ² | Carrying Value ³ | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Commercial real estate | $ | 86,691 | $ | 20,928 | $ | 20,787 | $ | 90,295 | $ | 22,124 | $ | 21,965 | |||||||||||
Agriculture | 3,954 | 2,969 | 2,969 | 4,462 | 2,756 | 2,491 | |||||||||||||||||
Commercial non-real estate | 6,937 | 192 | 163 | 7,190 | 221 | 192 | |||||||||||||||||
Residential real estate | 29,757 | 25,570 | 25,076 | 35,413 | 30,280 | 30,168 | |||||||||||||||||
Consumer | 351 | 292 | 262 | 493 | 438 | 438 | |||||||||||||||||
Total lending | $ | 127,690 | $ | 49,951 | $ | 49,257 | $ | 137,853 | $ | 55,819 | $ | 55,254 | |||||||||||
1 Represents the legal balance of ASC 310-30 loans.
|
|||||||||||||||||||||||
2 Represents the book balance of ASC 310-30 loans.
|
|||||||||||||||||||||||
3 Represents the book balance of ASC 310-30 loans net of the related allowance for loan and lease losses.
|
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Balance, beginning of period | $ | 1,079 | $ | 2,502 | $ | 5,704 | |||||||||||
Amortization | (1,012) | (1,386) | (2,778) | ||||||||||||||
Changes in expected reimbursements from FDIC for changes in expected credit losses | — | (10) | (122) | ||||||||||||||
Changes in reimbursable expenses | — | (41) | (1,072) | ||||||||||||||
Payments of covered losses to the FDIC | 47 | 14 | 770 | ||||||||||||||
Settlement upon expiration of loss-sharing arrangement | (114) | — | — | ||||||||||||||
Balance, end of period | $ | — | $ | 1,079 | $ | 2,502 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Land | $ | 31,601 | $ | 31,107 | |||||||
Buildings and building improvements | 101,891 | 95,778 | |||||||||
Furniture and equipment | 24,522 | 26,688 | |||||||||
Construction in progress | 149 | 3,619 | |||||||||
Total | 158,163 | 157,192 | |||||||||
Accumulated depreciation | (39,109) | (36,547) | |||||||||
Premise and equipment, net | $ | 119,054 | $ | 120,645 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Notional Amount |
Gross Asset
Fair Value |
Gross Liability
Fair Value |
Notional Amount |
Gross Asset
Fair Value |
Gross Liability
Fair Value |
||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Interest rate swaps | |||||||||||||||||||||||
Financial institution counterparties | $ | 1,233,430 | $ | — | $ | (64,259) | $ | 1,259,765 | $ | 35 | $ | (38,755) | |||||||||||
Customer counterparties | 641,189 | 83,533 | — | 499,643 | 48,652 | — | |||||||||||||||||
Interest rate caps | |||||||||||||||||||||||
Financial institution counterparties | 20,538 | 2 | — | 100 | 2 | — | |||||||||||||||||
Customer counterparties | 20,538 | — | (2) | 100 | — | (2) | |||||||||||||||||
Risk participation agreements | 80,681 | — | (32) | 56,833 | — | (58) | |||||||||||||||||
Mortgage loan commitments | 92,278 | — | (96) | 56,665 | — | (11) | |||||||||||||||||
Mortgage loan forward sale contracts | 94,084 | 96 | — | 61,872 | 11 | — | |||||||||||||||||
Total | $ | 2,182,738 | $ | 83,631 | $ | (64,389) | $ | 1,934,978 | $ | 48,700 | $ | (38,826) |
Gross Fair Value | Fair Value Offset Amount | Cash Collateral | Net Amount Presented on the Consolidated Balance Sheet | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||
Total Derivative Assets | $ | 83,631 | $ | (5,263) | $ | 20,012 | $ | 98,380 | |||||||||||||||
Total Derivative Liabilities ¹ | $ | (64,389) | $ | 5,263 | $ | 59,028 | $ | (98) | |||||||||||||||
1 There was an additional $22.9 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at September 30, 2020 and is included in other assets in the consolidated balance sheets.
|
Amount of (Loss) Gain Recognized in Consolidated Statements of Income | ||||||||||||||||||||
Fiscal Years Ended September 30, | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | Location of (Loss) Gain Recognized in Consolidated Statements of Income | 2020 | 2019 | 2018 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Interest rate swaps and other derivatives | Net realized and unrealized (loss) gain on derivatives | $ | (38,439) | $ | (63,444) | $ | 44,596 | |||||||||||||
Mortgage loan commitments | Net realized and unrealized (loss) gain on derivatives | 107 | 17 | (28) | ||||||||||||||||
Mortgage loan forward sale contracts | Net realized and unrealized (loss) gain on derivatives | (107) | (17) | 28 |
September 30,
2020 |
September 30,
2019 |
||||||||||
(dollars in thousands) | |||||||||||
Balance, beginning of period | $ | 739,023 | $ | 739,023 | |||||||
Goodwill acquired during the period | 1,539 | — | |||||||||
Goodwill impairment during the period | (740,562) | — | |||||||||
Balance, end of period | $ | — | $ | 739,023 |
Core Deposit Intangible |
Brand
Intangible |
Customer Relationships Intangible |
Other
Intangible |
Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||||||||
Gross carrying amount | $ | 7,339 | $ | — | $ | 3,172 | $ | 538 | $ | 11,049 | |||||||||||||||||||
Accumulated amortization | (4,316) | — | (244) | (325) | (4,885) | ||||||||||||||||||||||||
Net intangible assets | $ | 3,023 | $ | — | $ | 2,928 | $ | 213 | $ | 6,164 | |||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||||||||
Gross carrying amount | $ | 7,339 | $ | 8,464 | $ | — | $ | 538 | $ | 16,341 | |||||||||||||||||||
Accumulated amortization | (3,518) | (6,392) | — | (257) | (10,167) | ||||||||||||||||||||||||
Net intangible assets | $ | 3,821 | $ | 2,072 | $ | — | $ | 281 | $ | 6,174 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
2021 | $ | 1,014 | |||
2022 | 929 | ||||
2023 | 831 | ||||
2024 | 742 | ||||
2025 | 683 | ||||
2026 and thereafter | 1,965 | ||||
Total | $ | 6,164 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows paid for operating leases | $ | 5,720 | |||||||||||||||
Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||||||||
Operating leases | $ | 8,517 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Noninterest-bearing demand | $ | 2,586,743 | $ | 1,956,025 | |||||||
Interest-bearing demand | 7,139,058 | 6,248,638 | |||||||||
Time deposits, greater than $250,000 | 352,913 | 493,530 | |||||||||
Time deposits, less than or equal to $250,000 | 930,065 | 1,602,146 | |||||||||
Total | $ | 11,008,779 | $ | 10,300,339 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
2021 | $ | 1,067,677 | |||
2022 | 148,329 | ||||
2023 | 37,501 | ||||
2024 | 13,108 | ||||
2025 | 13,375 | ||||
2026 and thereafter | 2,988 | ||||
Total | $ | 1,282,978 |
September 30, 2020 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 65,506 | $ | — | $ | — | $ | — | $ | 65,506 | |||||||||||||||||||
Total repurchase agreements | $ | 65,506 | $ | — | $ | — | $ | — | $ | 65,506 |
September 30, 2019 | |||||||||||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||||||||||
Overnight and Continuous | Up to 30 Days | 30-90 Days | Greater than 90 Days | Total | |||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Repurchase agreements | |||||||||||||||||||||||||||||
Mortgage-backed securities | $ | 68,992 | $ | — | $ | — | $ | — | $ | 68,992 | |||||||||||||||||||
Total repurchase agreements | $ | 68,992 | $ | — | $ | — | $ | — | $ | 68,992 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
2021 | $ | 75,000 | |||
2022 | 30,000 | ||||
2023 | 30,000 | ||||
2024 | 60,000 | ||||
2025 | — | ||||
2026 and thereafter | — | ||||
Total | $ | 195,000 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Currently paid or payable | |||||||||||||||||
Federal | $ | 18,511 | $ | 30,779 | $ | 42,261 | |||||||||||
State | 3,733 | 9,327 | 10,556 | ||||||||||||||
Total | 22,244 | 40,106 | 52,817 | ||||||||||||||
Deferred tax (benefit) expense | |||||||||||||||||
Federal | (39,563) | 7,507 | 20,205 | ||||||||||||||
State | (8,191) | 617 | 1,097 | ||||||||||||||
Total | (47,754) | 8,124 | 21,302 | ||||||||||||||
Total (benefit from) provision for income taxes | $ | (25,510) | $ | 48,230 | $ | 74,119 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Income tax expense computed at the statutory rate | $ | (148,327) | $ | 45,275 | $ | 56,915 | |||||||||||
Increase (decrease) in income taxes resulting from: | |||||||||||||||||
State income taxes, net of federal benefit | (3,521) | 7,855 | 8,795 | ||||||||||||||
Tax exempt interest income | (5,515) | (5,193) | (5,778) | ||||||||||||||
Tax impact of stock-based compensation plans | 83 | (91) | (424) | ||||||||||||||
Tax impact of goodwill impairment | 131,051 | — | — | ||||||||||||||
Impact of enacted federal income tax rate reduction | — | — | 13,709 | ||||||||||||||
Other | 719 | 384 | 902 | ||||||||||||||
Income tax expense, as reported | $ | (25,510) | $ | 48,230 | $ | 74,119 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for loan and lease losses | $ | 36,177 | $ | 17,214 | |||||||
Compensation | 3,547 | 4,017 | |||||||||
Securities available for sale | — | — | |||||||||
Other real estate owned | 3,067 | 574 | |||||||||
Core deposit intangible and other fair value adjustments | 2,554 | 3,868 | |||||||||
Excess tax basis of FDIC indemnification asset and clawback liability | — | 4,095 | |||||||||
Excess tax basis of loans acquired over carrying value | 2,059 | 2,656 | |||||||||
Other reserves | 9,245 | 2,926 | |||||||||
Goodwill and other intangibles | 11,075 | — | |||||||||
Lease liability | 5,805 | — | |||||||||
Other | 7,268 | 6,350 | |||||||||
Total deferred tax assets | 80,797 | 41,700 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
Deferred tax liabilities: | |||||||||||
Goodwill and other intangibles | — | (15,064) | |||||||||
Securities available for sale | (11,749) | (4,419) | |||||||||
Premises and equipment | (7,167) | (5,869) | |||||||||
Deferred REIT income | (8,522) | (8,783) | |||||||||
Right of use asset | (5,399) | — | |||||||||
Other | (251) | (279) | |||||||||
Total deferred tax liabilities | (33,088) | (34,414) | |||||||||
Net deferred tax assets | $ | 47,709 | $ | 7,286 |
September 30, 2020 | September 30, 2019 | September 30, 2018 | ||||||||||||||||||||||||
Common
Shares |
Weighted-Average Grant Date Fair Value |
Common
Shares |
Weighted-Average Grant Date Fair Value |
Common
Shares |
Weighted-Average Grant Date Fair Value | |||||||||||||||||||||
Restricted Shares | ||||||||||||||||||||||||||
Restricted shares, beginning of fiscal year | 190,805 | $ | 37.20 | 163,287 | $ | 37.86 | 180,337 | $ | 33.06 | |||||||||||||||||
Granted | 147,282 | 30.68 | 106,753 | 37.27 | 89,376 | 41.07 | ||||||||||||||||||||
Vested | (84,316) | 38.60 | (76,210) | 38.64 | (97,682) | 32.11 | ||||||||||||||||||||
Forfeited | (4,591) | 36.18 | (3,025) | 38.67 | (8,744) | 35.99 | ||||||||||||||||||||
Canceled | — | — | — | — | — | — | ||||||||||||||||||||
Restricted shares, end of period | 249,180 | $ | 32.89 | 190,805 | $ | 37.20 | 163,287 | $ | 37.86 | |||||||||||||||||
Vested, but not issuable at end of period | 62,992 | $ | 33.98 | 50,770 | $ | 33.88 | 39,514 | $ | 32.90 | |||||||||||||||||
Performance Shares | ||||||||||||||||||||||||||
Performance shares, beginning of fiscal year | 173,332 | $ | 38.50 | 175,196 | $ | 36.29 | 133,604 | $ | 33.39 | |||||||||||||||||
Granted | 62,278 | 40.15 | 60,583 | 32.77 | 53,682 | 29.52 | ||||||||||||||||||||
Vested | (54,861) | 39.43 | (59,937) | 30.79 | (7,017) | 18.00 | ||||||||||||||||||||
Forfeited | (5,009) | 37.90 | (2,510) | 39.25 | (5,073) | 37.75 | ||||||||||||||||||||
Canceled | — | — | — | — | — | — | ||||||||||||||||||||
Performance shares, end of period | 175,740 | $ | 33.56 | 173,332 | $ | 38.50 | 175,196 | $ | 36.29 | |||||||||||||||||
Vested, but not issuable at end of period | 5,612 | $ | 18.00 | 5,612 | $ | 18.00 | 5,612 | $ | 18.00 |
Actual | Minimum Capital Requirement Ratio ¹ |
To Be Well Capitalized
Under Prompt Corrective Action Provisions |
||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
As of September 30, 2020 | ||||||||||||||||||||||||||
Tier 1 risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | $ | 1,195,453 | 11.8 | % | $ | 609,080 | 6.0 | % | N/A | N/A | ||||||||||||||||
Bank | 1,187,905 | 11.7 | % | 608,916 | 6.0 | % | $ | 811,888 | 8.0 | % | ||||||||||||||||
Total risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | 1,350,658 | 13.3 | % | 812,107 | 8.0 | % | N/A | N/A | ||||||||||||||||||
Bank | 1,315,077 | 13.0 | % | 811,888 | 8.0 | % | 1,014,860 | 10.0 | % | |||||||||||||||||
Tier 1 leverage capital (to average assets): | ||||||||||||||||||||||||||
Consolidated | 1,195,453 | 9.4 | % | 511,248 | 4.0 | % | N/A | N/A | ||||||||||||||||||
Bank | 1,187,905 | 9.3 | % | 509,649 | 4.0 | % | 637,062 | 5.0 | % | |||||||||||||||||
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | 1,121,621 | 11.0 | % | 456,810 | 4.5 | % | N/A | N/A | ||||||||||||||||||
Bank | $ | 1,187,905 | 11.7 | % | $ | 456,687 | 4.5 | % | $ | 659,659 | 6.5 | % | ||||||||||||||
Actual | Minimum Capital Requirement Ratio ¹ |
To Be Well Capitalized
Under Prompt Corrective Action Provisions |
||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
As of September 30, 2019 | ||||||||||||||||||||||||||
Tier 1 risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | $ | 1,225,355 | 11.7 | % | $ | 627,493 | 6.0 | % | N/A | N/A | ||||||||||||||||
Bank | 1,201,476 | 11.5 | % | 627,311 | 6.0 | % | $ | 836,415 | 8.0 | % | ||||||||||||||||
Total risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | 1,331,611 | 12.7 | % | 836,658 | 8.0 | % | N/A | N/A | ||||||||||||||||||
Bank | 1,272,733 | 12.2 | % | 836,415 | 8.0 | % | 1,045,519 | 10.0 | % | |||||||||||||||||
Tier 1 leverage capital (to average assets): | ||||||||||||||||||||||||||
Consolidated | 1,225,355 | 10.1 | % | 483,487 | 4.0 | % | N/A | N/A | ||||||||||||||||||
Bank | 1,201,476 | 9.9 | % | 483,957 | 4.0 | % | 604,946 | 5.0 | % | |||||||||||||||||
Common Equity Tier 1 risk based capital (to risk-weighted assets): | ||||||||||||||||||||||||||
Consolidated | 1,151,658 | 11.0 | % | 470,620 | 4.5 | % | N/A | N/A | ||||||||||||||||||
Bank | $ | 1,201,476 | 11.5 | % | $ | 470,483 | 4.5 | % | $ | 679,587 | 6.5 | % | ||||||||||||||
1 Does not include capital conservation buffer of 2.5% at both September 30, 2020 and 2019.
|
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Commitments to extend credit | $ | 2,138,138 | $ | 2,229,678 | |||||||
Letters of credit | 65,707 | 68,983 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
2021 | $ | 5,441 | |||
2022 | 4,764 | ||||
2023 | 4,212 | ||||
2024 | 3,406 | ||||
2025 and thereafter | 7,832 | ||||
Total | $ | 25,655 |
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||
U.S. Treasury securities | $ | 50,152 | $ | 50,152 | $ | — | $ | — | |||||||||||||||
U.S. Agency securities | 25,060 | 25,060 | — | — | |||||||||||||||||||
Mortgage-backed securities | 1,642,780 | — | 1,642,780 | — | |||||||||||||||||||
States and political subdivision securities | 55,580 | — | 51,783 | 3,797 | |||||||||||||||||||
Other | 1,054 | — | 1,054 | — | |||||||||||||||||||
Total securities available for sale | $ | 1,774,626 | $ | 75,212 | $ | 1,695,617 | $ | 3,797 | |||||||||||||||
Derivatives-assets | $ | 98,380 | $ | — | $ | 98,380 | $ | — | |||||||||||||||
Derivatives-liabilities | 98 | — | 98 | — | |||||||||||||||||||
Fair value loans | 655,185 | — | 655,185 | — | |||||||||||||||||||
Loan servicing rights | 1,303 | — | — | 1,303 | |||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||
U.S. Treasury securities | $ | 94,745 | $ | 94,745 | $ | — | $ | — | |||||||||||||||
Mortgage-backed securities | 1,620,903 | — | 1,620,903 | — | |||||||||||||||||||
States and political subdivision securities | 66,523 | — | 62,403 | 4,120 | |||||||||||||||||||
Other | 1,037 | — | 1,037 | — | |||||||||||||||||||
Total securities available for sale | $ | 1,783,208 | $ | 94,745 | $ | 1,684,343 | $ | 4,120 | |||||||||||||||
Derivatives-assets | $ | 58,534 | $ | — | $ | 58,534 | $ | — | |||||||||||||||
Derivatives-liabilities | 13 | — | 13 | — | |||||||||||||||||||
Fair value loans | 812,991 | — | 812,991 | — | |||||||||||||||||||
Loan servicing rights | 2,255 | — | — | 2,255 |
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of September 30, 2020 | |||||||||||||||||||||||
Other repossessed property | $ | 17,991 | $ | — | $ | — | $ | 17,991 | |||||||||||||||
Impaired loans | 669,968 | — | — | 669,968 | |||||||||||||||||||
Mortgage loans held for sale, at lower of cost or fair value | 12,371 | — | 12,371 | — | |||||||||||||||||||
Property held for sale | 600 | — | — | 600 | |||||||||||||||||||
As of September 30, 2019 | |||||||||||||||||||||||
Other repossessed property | $ | 34,721 | $ | — | $ | — | $ | 34,721 | |||||||||||||||
Impaired loans | 413,644 | — | — | 413,644 | |||||||||||||||||||
Mortgage loans held for sale, at lower of cost or fair value | 7,351 | — | 7,351 | — | |||||||||||||||||||
Property held for sale | 2,757 | — | — | 2,757 |
Fair Value of Assets / (Liabilities) at September 30, 2020 |
Valuation
Technique(s) |
Unobservable
Input |
Range |
Weighted
Average |
|||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Other repossessed property | $ | 17,991 | Appraisal value | Collateral specific adjustment | N/A | N/A | |||||||||||||||||||||||
Impaired loans | 669,968 | Appraisal value | Collateral specific adjustment | N/A | N/A | ||||||||||||||||||||||||
Property held for sale | 600 | Appraisal value | Collateral specific adjustment | N/A | N/A |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
Net income | $ | (680,808) | $ | 167,365 | $ | 157,916 | |||||||||||
Weighted average common shares outstanding | 55,612,251 | 57,154,865 | 58,938,169 | ||||||||||||||
Dilutive effect of stock based compensation | — | 102,196 | 193,481 | ||||||||||||||
Weighted average common shares outstanding for diluted earnings per share calculation | 55,612,251 | 57,257,061 | 59,131,650 | ||||||||||||||
Basic earnings per share | $ | (12.24) | $ | 2.93 | $ | 2.68 | |||||||||||
Diluted earnings per share | $ | (12.24) | $ | 2.92 | $ | 2.67 |
Amount | |||||
(dollars in thousands) | |||||
Total consideration paid | $4,711 | ||||
Customer relationship intangible | $3,172 | ||||
Goodwill | $1,539 |
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 36,420 | $ | 57,543 | |||||||
Investment in subsidiaries | 1,229,227 | 1,950,077 | |||||||||
Net deferred tax assets | 1,395 | 1,716 | |||||||||
Other assets | 6,086 | 689 | |||||||||
Total assets | $ | 1,273,128 | $ | 2,010,025 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Subordinated debentures and subordinated notes payable | $ | 108,832 | $ | 108,636 | |||||||
Accrued expenses and other liabilities | 1,363 | 1,140 | |||||||||
Total liabilities | 110,195 | 109,776 | |||||||||
Stockholders’ equity | |||||||||||
Common stock | 550 | 563 | |||||||||
Additional paid-in capital | 1,183,647 | 1,228,714 | |||||||||
Retained earnings | (57,169) | 657,475 | |||||||||
Accumulated other comprehensive income | 35,905 | 13,497 | |||||||||
Total stockholders’ equity | 1,162,933 | 1,900,249 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,273,128 | $ | 2,010,025 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Income | |||||||||||||||||
Dividends from subsidiary bank | $ | 75,079 | $ | 148,128 | $ | 111,159 | |||||||||||
Dividends on securities | 2 | 19 | 51 | ||||||||||||||
Other | 87 | 120 | 103 | ||||||||||||||
Total income | 75,168 | 148,267 | 111,313 | ||||||||||||||
Expenses | |||||||||||||||||
Interest on subordinated debentures and subordinated notes payable | 4,515 | 5,540 | 5,040 | ||||||||||||||
Salaries and employee benefits | 5,295 | 6,288 | 5,849 | ||||||||||||||
Professional fees | 1,291 | 1,035 | 1,038 | ||||||||||||||
Other | 2,913 | 2,653 | 2,456 | ||||||||||||||
Total expense | 14,014 | 15,516 | 14,383 | ||||||||||||||
Income before income tax and equity in undistributed net income of subsidiaries | 61,154 | 132,751 | 96,930 | ||||||||||||||
Income tax benefit | (1,114) | (2,965) | (3,075) | ||||||||||||||
Income before equity in undistributed net income of subsidiaries | 62,268 | 135,716 | 100,005 | ||||||||||||||
Equity in undistributed net income of subsidiaries | (743,076) | 31,649 | 57,911 | ||||||||||||||
Net income | $ | (680,808) | $ | 167,365 | $ | 157,916 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Operating Activities | |||||||||||||||||
Net income | $ | (680,808) | $ | 167,365 | $ | 157,916 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||||
Depreciation and amortization | 196 | 168 | 166 | ||||||||||||||
Stock-based compensation | 3,705 | 4,582 | 4,419 | ||||||||||||||
Deferred income taxes | 321 | (227) | 13 | ||||||||||||||
Changes in: | |||||||||||||||||
Other assets | (5,397) | 1,367 | 6,459 | ||||||||||||||
Accrued interest and other liabilities | 223 | 268 | (140) | ||||||||||||||
Equity in undistributed net income of subsidiaries | 743,076 | (31,649) | (57,911) | ||||||||||||||
Net cash provided by operating activities | 61,316 | 141,874 | 110,922 | ||||||||||||||
Financing Activities | |||||||||||||||||
Common stock repurchased | (39,983) | (94,351) | — | ||||||||||||||
Dividends paid | (42,456) | (62,904) | (53,002) | ||||||||||||||
Net cash used in financing activities | (82,439) | (157,255) | (53,002) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (21,123) | (15,381) | 57,920 | ||||||||||||||
Cash and cash equivalents, beginning of period | 57,543 | 72,924 | 15,004 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 36,420 | $ | 57,543 | $ | 72,924 |
By: |
/s/ Mark Borrecco
|
By: |
/s/ Peter Chapman
|
|||||||||||
Name: |
Mark Borrecco
|
Name: |
Peter Chapman
|
|||||||||||
Title: | President and Chief Executive Officer | Title: | Chief Financial Officer | |||||||||||
Date: | November 23, 2020 | Date: | November 23, 2020 |
Number | Description | ||||
Purchase and Assumption Agreement (Whole Bank, All Deposits), dated as of June 4, 2010, among Federal Deposit Insurance Corporation, Receiver of TierOne Bank, Lincoln, Nebraska, Federal Deposit Insurance Corporation and Great Western Bank (incorporated by reference to Exhibit 2.1 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Amended and Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed by Great Western Bancorp, Inc. on December 12, 2014 (File No. 001-36688)) | |||||
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Indenture, dated as of December 17, 2003, between Great Western Bancorporation, Inc. and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Guarantee Agreement, dated as of December 17, 2003, between Great Western Bancorporation, Inc. and U.S. Bank National Association (incorporated by reference to Exhibit 4.15 to Amendment No. 1 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on September 25, 2014 (File No. 333-198458)) | |||||
First Supplemental Indenture dated October 17, 2014, between Great Western Bancorporation, Inc., Great Western Bancorp, Inc. and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed by Great Western Bancorp, Inc. on December 12, 2014 (File No. 001-36688)) | |||||
Amended and Restated Declaration of Trust of Great Western Statutory Trust IV, dated December 17, 2003 (incorporated by reference to Exhibit 4.4 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Indenture, dated as of March 10, 2006, between Great Western Bancorporation, Inc. and LaSalle Bank National Association (incorporated by reference to Exhibit 4.5 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Guarantee Agreement, dated as of March 10, 2006, between Great Western Bancorporation, Inc. and LaSalle Bank National Association (incorporated by reference to Exhibit 4.16 to Amendment No. 1 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on September 25, 2014 (File No. 333-198458)) | |||||
First Supplemental Indenture, dated as of October 17, 2014, among Great Western Bancorporation, Inc., Great Western Bancorp, Inc. and U.S. Bank National Association, successor to LaSalle Bank National Association (incorporated by reference to Exhibit 4.5 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed by Great Western Bancorp, Inc. on December 12, 2014 (File No. 001-36688)) | |||||
First Supplemental Indenture, among Great Western Bancorporation, Inc., Great Western Bancorp, Inc. and U.S. Bank National Association (incorporated by reference to Exhibit 4.6 to Amendment No. 1 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on September 25, 2014 (File No. 333-198458)) | |||||
Amended and Restated Declaration of Trust of GWB Capital Trust VI, dated as of March 10, 2006 (incorporated by reference to Exhibit 4.7 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Indenture, dated as of June 1, 2005, between Sunstate Bancshares, Inc. and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 4.8 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Guarantee Agreement, dated as of June 1, 2005, between Sunstate Bancshares, Inc. and JPMorgan Chase Bank, National Association (incorporated by reference to Exhibit 4.17 to Amendment No. 1 to the Registration Statement on form S-1 filed by Great Western Bancorp, Inc. on September 25, 2014 (File No. 333-198458)) | |||||
First Supplemental Indenture, dated as of May 10, 2007, between Great Western Bancorporation, Inc. and The Bank of New York Trust Company, National Association (incorporated by reference to Exhibit 4.9 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Second Supplemental Indenture, dated October 17, 2014, between Great Western Bancorporation, Inc., Great Western Bancorp, Inc. and The Bank of New York Trust Company, National Association (incorporated by reference to Exhibit 4.9 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed by Great Western Bancorp, Inc. on December 12, 2014 (File No. 001-36688)) | |||||
Amended and Restated Declaration of Trust of Sunstate Bancshares Trust II, dated as of June 1, 2005 (incorporated by reference to Exhibit 4.11 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on August 28, 2014 (File No. 333-198458)) | |||||
Number | Description | ||||
Subordinated Note Purchase Agreement, dated July 31, 2015, between Great Western Bancorp, Inc. and the Note Purchasers identified on Schedule I thereto, and any assignees thereof, including the form of Subordinated Note issued to each of such Purchasers (incorporated by reference to Exhibit 4.19 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2015 filed by Great Western Bancorp, Inc. on December 11, 2015 (File No. 001-36688)) | |||||
First Supplemental Indenture, dated as of May 13, 2016, among Great Western Bancorp, Inc., HF Financial Corp., and Wilmington Trust Company, as Trustee (relating to the HF Financial Capital Trust III trust preferred securities) (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on May 16, 2016 (File No. 001-36688)) | |||||
First Supplemental Indenture, dated as of May 13, 2016, among Great Western Bancorp, Inc., HF Financial Corp., and Wilmington Trust Company, as Trustee (relating to the HF Financial Capital Trust IV trust preferred securities) (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on May 16, 2016 (File No. 001-36688)) | |||||
First Supplemental Indenture, dated as of May 13, 2016, among Great Western Bancorp, Inc., HF Financial Corp., and Wilmington Trust Company, as Trustee (relating to the HF Financial Capital Trust VI trust preferred securities) (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on May 16, 2016 (File No. 001-36688)) | |||||
First Supplemental Indenture, dated as of May 13, 2016, among Great Western Bancorp, Inc., HF Financial Corp., and Wilmington Trust Company, as Trustee (relating to the HF Financial Capital Trust V trust preferred securities) (incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on May 16, 2016 (File No. 001-36688)) | |||||
4.21 **
|
Description of Securities Registered Under Section 12 of the Securities Exchange Act (incorporated by reference to Exhibit 4.21 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019 filed by Great Western Bancorp, Inc. on November 27, 2019 (File No. 001-36688)) | ||||
10.1 *
|
Employment Agreement, dated December 15, 2017, between Great Western Bancorp, Inc. and Kenneth Karels (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on December 18, 2017 (File No. 001-36688)) | ||||
10.2 *
|
Employment Agreement, dated February 6, 2020, between Great Western Bancorp, Inc. and Mark Borrecco (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on February 11, 2020 (File No. 001-36688)) | ||||
10.3 *
|
Employment Agreement, dated December 15, 2017, between Great Western Bancorp, Inc. and Peter Chapman (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on December 18, 2017 (File No. 001-36688)) | ||||
10.4 *
|
Amended and Restated Employment Agreement, dated August 5, 2019, between Great Western Bancorp, Inc. and Doug Bass (incorporated by reference to Exhibit 10.1 to the Current Report on the Form 8-K filed by Great Western Bancorp, Inc. on August 9, 2019 (File No. 001-36688)) | ||||
10.5 *
|
Change in Control Agreement, dated February 22, 2018, between Great Western Bancorp, Inc. and Tim Kintner (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on February 26, 2018 (File No. 001-36688) | ||||
10.6 *
|
Employment Agreement, dated as of June 15, 2018, between Great Western Bancorp, Inc. and Karlyn M. Knieriem (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on July 25, 2018 (File No. 001-36688)) | ||||
10.7 *
|
Employment Agreement, dated April 20, 2020, between Great Western Bancorp, Inc. and Steve Yose (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on April 22, 2020 (File No. 001-36688)) | ||||
10.8 *
|
Great Western Bancorp, Inc. 2014 Omnibus Incentive Compensation Plan (incorporated by reference to Appendix A to the Proxy Statement on Schedule 14A filed by Great Western Bancorp, Inc. on January 10, 2018 (File No. 001-36688)) | ||||
10.9 *
|
Great Western Bancorp, Inc. 2014 Non-Employee Director Plan (incorporated by reference to Appendix B to the Proxy Statement on Schedule 14A filed by Great Western Bancorp, Inc. on January 10, 2018 (File No. 001-36688)) | ||||
10.10 *
|
Great Western Bancorp, Inc. Executive Incentive Compensation Plan (incorporated by reference to Exhibit 10.13 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2014 filed by Great Western Bancorp, Inc. on December 12, 2014 (File No. 001-36688)) | ||||
10.11 *
|
Form of Great Western Bancorp, Inc. 2014 Omnibus Incentive Compensation Plan Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.13 to Amendment No. 2 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on October 3, 2014 (File No. 333-198458)) | ||||
10.12 *
|
Form of Great Western Bancorp, Inc. 2014 Omnibus Incentive Compensation Plan Restricted Share Unit Award Agreement (incorporated by reference to Exhibit 10.14 to Amendment No. 2 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on October 3, 2014 (File No. 333-198458)) | ||||
Number | Description | ||||
10.13 *
|
Form of Great Western Bancorp, Inc. 2014 Non-Employee Director Plan Performance Share Unit Award Agreement (incorporated by reference to Exhibit 10.16 to Amendment No. 3 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on October 9, 2014 (File No. 333-198458)) | ||||
10.14 *
|
Form of Great Western Bancorp, Inc. 2014 Non-Employee Director Plan Restricted Share Unit Award Agreement (incorporated by reference to Exhibit 10.15 to Amendment No. 2 to the Registration Statement on Form S-1 filed by Great Western Bancorp, Inc. on October 3, 2014 (File No. 333-198458)) | ||||
Credit Agreement, dated July 31, 2015, between Great Western Bancorp, Inc. and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.18 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2015 filed by Great Western Bancorp, Inc. on December 11, 2015 (File No. 001-36688)) | |||||
10.16 *
|
Great Western Bancorp, Inc. Clawback Policy (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Great Western Bancorp, Inc. on August 1, 2016 (File No. 001-36688)) | ||||
10.17 *
|
Great Western Bancorp, Inc. Consultant Agreement with Credit Risk Advisors, LLC (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Great Western Bancorp, Inc. on September 19, 2019 (File No. 001-36688)) | ||||
10.18 *
|
Great Western Bancorp, Inc. First Amendment to Consultant Agreement with Credit Risk Advisors, LLC (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Great Western Bancorp, Inc. on October 31, 2019 (File No. 001-36688)) | ||||
10.19 *
|
Great Western Bancorp, Inc. CEO Transition and Retirement Agreement (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K filed by Great Western Bancorp, Inc. on November 26, 2019 (File No. 001-036688)) | ||||
10.20 *
|
Great Western Bancorp, Inc. Amended and Restated CEO Transition and Retirement Agreement between Great Western Bancorp, Inc. and Kenneth Karels (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on June 10, 2020 (File No. 001-036688)) | ||||
10.21 *
|
Great Western Bancorp, Inc. Retirement and Separation Agreement between Great Western Bancorp, Inc. and Douglas Bass (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed by Great Western Bancorp, Inc. on October 21, 2020 (File No. 001-036688)) | ||||
Statement regarding Computation of Per Share Earnings (included as Note 25 to the registrant's audited consolidated financial statements)
|
|||||
21.1 **
|
Subsidiaries of Great Western Bancorp, Inc. | ||||
23.1 **
|
Consent of Ernst & Young LLP | ||||
24.1 **
|
Powers of Attorney (included on signature pages) | ||||
31.1 **
|
Rule 13a-14(a) Certification of Chief Executive Officer of Great Western Bancorp, Inc. in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
31.2 **
|
Rule 13a-14(a) Certification of Chief Financial Officer of Great Western Bancorp, Inc. in accordance with Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
32.1 **
|
Section 1350 Certification of Chief Executive Officer of Great Western Bancorp, Inc. in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 | ||||
32.2 **
|
Section 1350 Certification of Chief Financial Officer of Great Western Bancorp, Inc. in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 | ||||
101.INS *** | XBRL Instance Document | ||||
101.SCH *** | XBRL Taxonomy Extension Schema Document | ||||
101.CAL *** | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF *** | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB *** | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE *** | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 *** | The cover page from the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019, formatted in Inline XBRL (included in Exhibit 101) | ||||
* Indicates management contract or compensatory plan | |||||
** Filed herewith | |||||
*** Furnished, not filed |
Great Western Bancorp, Inc.
|
||||||||
Date: November 23, 2020 | By: |
/s/ Mark Borrecco
|
||||||
Name: |
Mark Borrecco
|
|||||||
Title: | President and Chief Executive Officer |
Signatures | Title | ||||
/s/ Mark Borrecco | |||||
Mark Borrecco |
President, Chief Executive Officer and Director (Principal Executive Officer)
|
||||
/s/ James Brannen | |||||
James Brannen | Chairperson of the Board and Director | ||||
/s/ Frances Grieb | |||||
Frances Grieb | Director | ||||
/s/ Thomas Henning | |||||
Thomas Henning | Director | ||||
/s/ James Israel | |||||
James Israel | Director | ||||
/s/ Stephen Lacy | |||||
Stephen Lacy | Director | ||||
/s/ Daniel Rykhus | |||||
Daniel Rykhus | Director | ||||
/s/ James Spies | |||||
James Spies | Director | ||||
/s/ Peter Chapman | |||||
Peter Chapman |
Chief Financial Officer and Executive Vice President
(Principal Financial Officer and Principal Accounting Officer)
|
Name | Jurisdiction of Incorporation/Organization | ||||
Great Western Bank | South Dakota | ||||
Hometown Investment Services, Inc. | South Dakota | ||||
Great Western Financial Services, Inc. | Nebraska | ||||
Valley Heights Lincoln LLC | Nevada | ||||
Wintergreen Real Estate Holding, LLC | Colorado | ||||
Great Western Investments, Inc. | South Dakota | ||||
Great Western Preferred Capital, Inc. | South Dakota | ||||
Great Western Statutory Trust IV | Connecticut | ||||
GWB Capital Trust VI | Delaware | ||||
Sunstate Bancshares Trust II | Delaware | ||||
HF Financial Capital Trust III | Delaware | ||||
HF Financial Capital Trust IV | Delaware | ||||
HF Financial Capital Trust V | Delaware | ||||
HF Financial Capital Trust VI | Delaware |
Great Western Bancorp, Inc.
|
||||||||
Date: November 23, 2020 | By: | /s/ Mark Borrecco | ||||||
Name: | Mark Borrecco | |||||||
Title: | President and Chief Executive Officer |
Great Western Bancorp, Inc.
|
||||||||
Date: November 23, 2020 | By: | /s/ Peter Chapman | ||||||
Name: | Peter Chapman | |||||||
Title: | Chief Financial Officer and Executive Vice President |
Great Western Bancorp, Inc.
|
||||||||
Date: November 23, 2020 | By: | /s/ Mark Borrecco | ||||||
Name: | Mark Borrecco | |||||||
Title: | President and Chief Executive Officer |
Great Western Bancorp, Inc.
|
||||||||
Date: November 23, 2020 | By: | /s/ Peter Chapman | ||||||
Name: | Peter Chapman | |||||||
Title: | Chief Financial Officer and Executive Vice President |