☒ |
QUARTERLY 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 | ☐ |
(Unaudited) | |||||||||||
June 30, 2021 | September 30, 2020 | ||||||||||
Assets | |||||||||||
Cash and due from banks | $ | 154,046 | $ | 150,085 | |||||||
Interest-bearing bank deposits | 1,602,299 | 282,802 | |||||||||
Cash and cash equivalents | 1,756,345 | 432,887 | |||||||||
Securities purchased under agreements to resell | 104,523 | — | |||||||||
Securities available for sale | 2,181,514 | 1,774,626 | |||||||||
Securities held to maturity | 202,445 | — | |||||||||
Loans, net of unearned discounts and deferred fees, including $545,149 and $655,185 of loans at fair value under the fair value option at June 30, 2021 and September 30, 2020, respectively; and $1,377 and $12,371 of loans held for sale at June 30, 2021 and September 30, 2020, respectively
|
8,477,783 | 10,076,142 | |||||||||
Allowance for credit losses ¹ | (270,298) | (149,887) | |||||||||
Net loans | 8,207,485 | 9,926,255 | |||||||||
Premises and equipment, including $600 of property held for sale at both June 30, 2021 and September 30, 2020
|
117,240 | 119,054 | |||||||||
Accrued interest receivable | 36,245 | 54,658 | |||||||||
Other repossessed property | 11,498 | 20,034 | |||||||||
Cash surrender value of life insurance policies | 183,575 | 31,658 | |||||||||
Net deferred tax assets | 84,981 | 47,709 | |||||||||
Other assets | 184,378 | 197,558 | |||||||||
Total assets | $ | 13,070,229 | $ | 12,604,439 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Noninterest-bearing | $ | 2,958,488 | $ | 2,586,743 | |||||||
Interest-bearing | 8,579,289 | 8,422,036 | |||||||||
Total deposits | 11,537,777 | 11,008,779 | |||||||||
Securities sold under agreements to repurchase | 80,167 | 65,506 | |||||||||
FHLB advances and other borrowings | 120,000 | 195,000 | |||||||||
Subordinated debentures and subordinated notes payable | 108,933 | 108,832 | |||||||||
Accrued expenses and other liabilities | 62,283 | 63,389 | |||||||||
Total liabilities | 11,909,160 | 11,441,506 | |||||||||
Stockholders’ equity | |||||||||||
Common stock, $0.01 par value, authorized 500,000,000 shares; 55,116,095 shares issued and outstanding at June 30, 2021 and 55,014,189 shares issued and outstanding at September 30, 2020
|
551 | 550 | |||||||||
Additional paid-in capital | 1,184,638 | 1,183,647 | |||||||||
Retained earnings | (38,721) | (57,169) | |||||||||
Accumulated other comprehensive income | 14,601 | 35,905 | |||||||||
Total stockholders' equity | 1,161,069 | 1,162,933 | |||||||||
Total liabilities and stockholders' equity | $ | 13,070,229 | $ | 12,604,439 | |||||||
1 Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model.
|
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Loans | $ | 93,328 | $ | 109,227 | $ | 300,925 | $ | 342,014 | |||||||||||||||
Investment securities | 8,642 | 10,532 | 25,079 | 33,359 | |||||||||||||||||||
Federal funds sold and other | 654 | 112 | 1,214 | 1,278 | |||||||||||||||||||
Total interest income | 102,624 | 119,871 | 327,218 | 376,651 | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Deposits | 3,505 | 10,011 | 13,976 | 50,818 | |||||||||||||||||||
FHLB advances and other borrowings | 867 | 2,539 | 2,603 | 8,807 | |||||||||||||||||||
Subordinated debentures and subordinated notes payable | 789 | 1,070 | 2,398 | 3,619 | |||||||||||||||||||
Total interest expense | 5,161 | 13,620 | 18,977 | 63,244 | |||||||||||||||||||
Net interest income | 97,463 | 106,251 | 308,241 | 313,407 | |||||||||||||||||||
(Reversal of) provision for credit losses ¹ | (20,699) | 21,641 | (13,800) | 101,539 | |||||||||||||||||||
Net interest income after (reversal of) provision for credit losses | 118,162 | 84,610 | 322,041 | 211,868 | |||||||||||||||||||
Noninterest income | |||||||||||||||||||||||
Service charges and other fees | 9,005 | 7,731 | 27,228 | 28,328 | |||||||||||||||||||
Wealth management fees | 3,477 | 2,773 | 9,688 | 8,859 | |||||||||||||||||||
Mortgage banking income, net | 2,157 | 2,422 | 9,937 | 5,179 | |||||||||||||||||||
Net gain on sale of securities and other assets | — | — | 247 | — | |||||||||||||||||||
Derivative interest expense | (3,117) | (3,040) | (9,692) | (5,181) | |||||||||||||||||||
Change in fair value of FVO loans and related derivatives | 4,110 | (25,001) | 2,480 | (37,658) | |||||||||||||||||||
Other derivative income | 1,530 | 2,242 | 5,683 | 950 | |||||||||||||||||||
Other | 2,209 | 1,190 | 5,141 | 3,490 | |||||||||||||||||||
Total noninterest income (loss) | 19,371 | (11,683) | 50,712 | 3,967 | |||||||||||||||||||
Noninterest expense | |||||||||||||||||||||||
Salaries and employee benefits | 40,239 | 39,042 | 116,918 | 112,259 | |||||||||||||||||||
Data processing and communication | 7,054 | 5,817 | 19,825 | 17,713 | |||||||||||||||||||
Occupancy and equipment | 5,105 | 5,251 | 15,829 | 15,941 | |||||||||||||||||||
Professional fees | 4,644 | 7,382 | 12,293 | 16,409 | |||||||||||||||||||
Advertising | 602 | 750 | 1,635 | 2,573 | |||||||||||||||||||
Net (gain) loss on repossessed property and other related expenses | (760) | 2,475 | (469) | 8,508 | |||||||||||||||||||
Goodwill and intangible assets impairment | — | — | — | 742,352 | |||||||||||||||||||
Other ¹ | 3,621 | 6,332 | 11,026 | 16,677 | |||||||||||||||||||
Total noninterest expense | 60,505 | 67,049 | 177,057 | 932,432 | |||||||||||||||||||
Income (loss) before income taxes | 77,028 | 5,878 | 195,696 | (716,597) | |||||||||||||||||||
Provision for (benefit from) income taxes | 18,279 | 478 | 44,329 | (24,653) | |||||||||||||||||||
Net income (loss) | $ | 58,749 | $ | 5,400 | $ | 151,367 | $ | (691,944) | |||||||||||||||
Basic earnings per common share | |||||||||||||||||||||||
Weighted average common shares outstanding | 55,207,008 | 55,082,621 | 55,175,567 | 55,788,751 | |||||||||||||||||||
Basic earnings per share | $ | 1.06 | $ | 0.10 | $ | 2.74 | $ | (12.40) | |||||||||||||||
Diluted earnings per common share | |||||||||||||||||||||||
Weighted average diluted common shares outstanding | 55,524,979 | 55,145,619 | 55,409,573 | 55,788,751 | |||||||||||||||||||
Diluted earnings per share | $ | 1.06 | $ | 0.10 | $ | 2.74 | $ | (12.40) | |||||||||||||||
Dividends per share | |||||||||||||||||||||||
Dividends paid | $ | 551 | $ | 8,252 | $ | 1,652 | $ | 41,906 | |||||||||||||||
Dividends per share | $ | 0.01 | $ | 0.15 | $ | 0.03 | $ | 0.75 | |||||||||||||||
1 For the three and nine months ended June 30, 2021, this line includes a $0.2 million and $0.3 million reversal of provision, respectively, for unfunded commitments reserve. For the three and nine months ended June 30, 2020, provision for unfunded commitments reserve of $2.2 million and $2.9 million, respectively, was recorded in other noninterest expense in the consolidated income statement.
|
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 58,749 | $ | 5,400 | $ | 151,367 | $ | (691,944) | |||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
Net unrealized holding gain (loss) arising during the period | 11,161 | 11,838 | (28,027) | 42,019 | |||||||||||||||||||
Reclassification adjustment for net gain realized in net income | — | — | (247) | — | |||||||||||||||||||
Income tax (expense) benefit | (2,751) | (2,919) | 6,970 | (10,359) | |||||||||||||||||||
Other comprehensive income (loss), net of tax | 8,410 | 8,919 | (21,304) | 31,660 | |||||||||||||||||||
Comprehensive income (loss) | $ | 67,159 | $ | 14,319 | $ | 130,063 | $ | (660,284) | |||||||||||||||
Comprehensive Income | Common Stock Par Value |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||
Balance, April 1, 2020 | $ | 550 | $ | 1,190,381 | $ | (73,705) | $ | 36,238 | $ | 1,153,464 | |||||||||||||||||||||||||
Net income | $ | 5,400 | — | — | 5,400 | — | 5,400 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 8,919 | — | — | — | 8,919 | 8,919 | |||||||||||||||||||||||||||||
Total comprehensive income | $ | 14,319 | |||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | 1,113 | — | — | 1,113 | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.15 per share
|
— | (8,252) | — | — | (8,252) | ||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 550 | $ | 1,183,242 | $ | (68,305) | $ | 45,157 | $ | 1,160,644 | |||||||||||||||||||||||||
Balance, April 1, 2021 | $ | 551 | $ | 1,184,647 | $ | (97,470) | $ | 6,191 | $ | 1,093,919 | |||||||||||||||||||||||||
Net income | $ | 58,749 | — | — | 58,749 | — | 58,749 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 8,410 | — | — | — | 8,410 | 8,410 | |||||||||||||||||||||||||||||
Total comprehensive income | $ | 67,159 | |||||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | — | 542 | — | — | 542 | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.01 per share
|
— | (551) | — | — | (551) | ||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 551 | $ | 1,184,638 | $ | (38,721) | $ | 14,601 | $ | 1,161,069 | |||||||||||||||||||||||||
Comprehensive (Loss) Income | Common Stock Par Value |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated Other Comprehensive Income | Total | ||||||||||||||||||||||||||||||
Balance, October 1, 2019 | $ | 563 | $ | 1,228,714 | $ | 657,475 | $ | 13,497 | $ | 1,900,249 | |||||||||||||||||||||||||
Net (loss) | $ | (691,944) | — | — | (691,944) | — | (691,944) | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 31,660 | — | — | — | 31,660 | 31,660 | |||||||||||||||||||||||||||||
Total comprehensive (loss) | $ | (660,284) | |||||||||||||||||||||||||||||||||
Cumulative effect adjustment related to ASU adoption ¹ | — | — | (182) | — | (182) | ||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | 1 | 2,749 | — | — | 2,750 | ||||||||||||||||||||||||||||||
Repurchase common stock | (14) | (39,969) | — | — | (39,983) | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.75 per share
|
— | (8,252) | (33,654) | — | (41,906) | ||||||||||||||||||||||||||||||
Balance, June 30, 2020 | $ | 550 | $ | 1,183,242 | $ | (68,305) | $ | 45,157 | $ | 1,160,644 | |||||||||||||||||||||||||
Balance, October 1, 2020 | $ | 550 | $ | 1,183,647 | $ | (57,169) | $ | 35,905 | $ | 1,162,933 | |||||||||||||||||||||||||
Net income | $ | 151,367 | — | — | 151,367 | — | 151,367 | ||||||||||||||||||||||||||||
Other comprehensive (loss), net of tax | (21,304) | — | — | — | (21,304) | (21,304) | |||||||||||||||||||||||||||||
Total comprehensive income | $ | 130,063 | |||||||||||||||||||||||||||||||||
Cumulative effect adjustment related to ASU adoption ² | — | — | (132,919) | — | (132,919) | ||||||||||||||||||||||||||||||
Stock-based compensation, net of tax | 1 | 2,643 | — | — | 2,644 | ||||||||||||||||||||||||||||||
Cash dividends: | |||||||||||||||||||||||||||||||||||
Common stock, $0.03 per share
|
— | (1,652) | — | — | (1,652) | ||||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | 551 | $ | 1,184,638 | $ | (38,721) | $ | 14,601 | $ | 1,161,069 | |||||||||||||||||||||||||
¹ Cumulative effect adjustment related to the Company's adoption of ASU 2016-02, Leases (Topic 842), and subsequent related ASUs on October 1, 2019.
|
|||||||||||||||||||||||||||||||||||
2 Cumulative effect adjustment related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020. For additional information, see Note 2, "New Accounting Pronouncements".
|
Nine Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 151,367 | $ | (691,944) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and deferred fee accretion, net | (13,285) | 13,152 | |||||||||
Amortization of FDIC indemnification asset | — | 1,012 | |||||||||
Net (gain) loss on sale of other assets | (1,037) | 6,649 | |||||||||
Net gain on sale of loans | (10,469) | (5,840) | |||||||||
(Reversal of) provision for credit losses ¹ | (13,800) | 101,539 | |||||||||
Goodwill and intangible assets impairment | — | 742,352 | |||||||||
(Reversal of) provision for loan servicing rights loss | (1) | 6 | |||||||||
Stock-based compensation | 2,644 | 2,750 | |||||||||
Originations of residential real estate loans held for sale | (320,216) | (231,420) | |||||||||
Proceeds from sales of residential real estate loans held for sale | 341,680 | 231,771 | |||||||||
Proceeds from sale of other assets | 348 | — | |||||||||
Net deferred income taxes | 12,570 | (56,659) | |||||||||
Changes in: | |||||||||||
Accrued interest receivable | 18,413 | 744 | |||||||||
Other assets | 9,586 | (71,570) | |||||||||
Accrued interest payable and other liabilities | (159) | 20,128 | |||||||||
Net cash provided by operating activities | 177,641 | 62,670 | |||||||||
Investing activities | |||||||||||
Net change in securities purchased under agreements to resell | (104,523) | — | |||||||||
Purchase of debt securities available for sale | (1,007,175) | (540,697) | |||||||||
Proceeds from maturities of debt securities available for sale | 560,572 | 387,950 | |||||||||
Purchase of debt securities held to maturity | (201,281) | — | |||||||||
Proceeds from maturities of debt securities held to maturity | 2,574 | — | |||||||||
Net decrease (increase) in loans | 1,568,833 | (633,971) | |||||||||
Payment of covered losses from FDIC indemnification claims | — | (46) | |||||||||
Purchase of premises and equipment | (3,907) | (4,988) | |||||||||
Proceeds from sale of premises and equipment | 572 | — | |||||||||
Proceeds from sale of repossessed property | 13,467 | 18,798 | |||||||||
Purchase of bank owned life insurance policies | (150,000) | — | |||||||||
Purchase of FHLB stock | (10) | (113,437) | |||||||||
Proceeds from redemption of FHLB stock | 280 | 112,992 | |||||||||
Net cash paid in business acquisition | — | (4,711) | |||||||||
Net cash provided by (used in) investing activities | 679,402 | (778,110) | |||||||||
Financing activities | |||||||||||
Net increase in deposits | 529,020 | 850,367 | |||||||||
Net increase in securities sold under agreements to repurchase and other short-term borrowings | 14,661 | 1,370 | |||||||||
Proceeds from FHLB advances and other long-term borrowings | — | 680,000 | |||||||||
Repayments on FHLB advances and other long-term borrowings | (75,000) | (665,000) | |||||||||
Common stock repurchased | — | (39,983) | |||||||||
Taxes paid related to net share settlement of equity awards | (614) | (1,297) | |||||||||
Dividends paid | (1,652) | (41,906) | |||||||||
Net cash provided by financing activities | 466,415 | 783,551 | |||||||||
Net increase in cash and cash equivalents | 1,323,458 | 68,111 | |||||||||
Cash and cash equivalents, beginning of period | 432,887 | 243,474 | |||||||||
Cash and cash equivalents, end of period | $ | 1,756,345 | $ | 311,585 | |||||||
Supplemental disclosure of cash flow information | |||||||||||
Cash payments for interest | $ | 22,292 | $ | 71,423 | |||||||
Cash (receipts from) payments for income taxes | $ | 29,799 | $ | 21,089 | |||||||
Supplemental disclosure of noncash investing and financing activities | |||||||||||
Loans transferred to repossessed properties | $ | (4,029) | $ | (7,762) | |||||||
1 For the nine months ended June 30, 2021, this line includes a $0.3 million (reversal of) provision for unfunded commitments reserve.
|
Credit Quality
Risk Rating Effective After October 1, 2020 |
Credit Quality Indicators | ||||
Pass | Commercial loans within this category are not adversely rated, current as to principal and interest, and are otherwise in material compliance with the contractual terms of the loan agreement. Management believes there is a low likelihood of loss related to loans in this category. | ||||
Special Mention | Commercial loans within this category have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant an adverse classification. | ||||
Substandard | Commercial loans within this category are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans in this category are assigned a workout loan officer to closely monitor the relationship. | ||||
Doubtful | Commercial loans within this category are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. |
Loan Segment | Composition | Collateral | Primary Source of Repayment | Key Risk Characteristics | ||||||||||
Construction and development 1
|
Commercial and residential construction loans | Secured by commercial and residential real estate | Cash flows | Industry and geography of borrower's business, purpose of the loan, repayment sources, borrower's capacity and financial performance, loan covenants, guarantees and nature of pledged collateral | ||||||||||
Owner-occupied CRE | Small and middle market businesses | Secured by commercial real estate | ||||||||||||
Non-owner-occupied CRE | ||||||||||||||
Multifamily residential real estate | ||||||||||||||
Agriculture | Agri-business operating and real estate loans | Secured by operating assets, agricultural real estate, and guarantees of owners | Cash flows | Geography of the borrower's operations, commodity type and prices and weather patterns, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral | ||||||||||
Commercial non-real estate | Small and middle market businesses and loans made to public sector | Secured by business assets and guarantees of owners | Cash flows | Industry and geography of the borrower's business, purpose of the loan, repayment sources, borrower's debt capacity and financial performance, loan covenants, guarantees and nature of pledged collateral | ||||||||||
Residential real estate | Residential mortgages and home equity loans and lines | Secured by residential real estate | Borrower's income | Borrower's capacity and willingness to repay, unemployment rates and other economic factors, and customer repayment history | ||||||||||
Consumer and other | Consumer loans and all other loan relationships that do not fit within categories above, including consumer and commercial credit cards and consumer deposit account overdrafts | Secured by automobiles, unsecured | ||||||||||||
1 Residential real estate construction loans are included in the construction and development segment until construction is completed, after which the loan is moved to the residential real estate loan segment.
|
Reported Balance September 30,
2020 |
Reclassifications ¹ | Unamortized Discounts, Unearned Net Deferred Fees and Net Loans in Process Included in Amortized Cost ² |
Adjusted Balance September 30,
2020 |
Adoption of ASU 2016-13, as amended ³ | Adjusted Balance October 1, 2020 | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Construction and development | n/a ⁴ | $ | 512,539 | $ | (2,895) | $ | 509,644 | $ | — | $ | 509,644 | ||||||||||||||||||||||||
Owner-occupied CRE | n/a ⁴ | 1,420,061 | (2,667) | 1,417,394 | 36 | 1,417,430 | |||||||||||||||||||||||||||||
Non-owner-occupied CRE | n/a ⁴ | 2,902,612 | (8,232) | 2,894,380 | 1,497 | 2,895,877 | |||||||||||||||||||||||||||||
Multifamily residential real estate | n/a ⁴ | 536,828 | (2,845) | 533,983 | (8) | 533,975 | |||||||||||||||||||||||||||||
Total commercial real estate | 5,274,941 | (5,274,941) | — | — | — | — | |||||||||||||||||||||||||||||
Agriculture | 1,724,350 | — | (1,654) | 1,722,696 | 55 | 1,722,751 | |||||||||||||||||||||||||||||
Commercial non-real estate | 2,181,656 | — | (16,618) | 2,165,038 | (85) | 2,164,953 | |||||||||||||||||||||||||||||
Residential real estate | 830,102 | (97,099) | (2,191) | 730,812 | 23 | 730,835 | |||||||||||||||||||||||||||||
Consumer and other | — | 100,553 | 1,642 | 102,195 | (20) | 102,175 | |||||||||||||||||||||||||||||
Consumer | 63,206 | (63,206) | — | — | — | — | |||||||||||||||||||||||||||||
Other | 37,347 | (37,347) | — | — | — | — | |||||||||||||||||||||||||||||
Ending balance | 10,111,602 | — | (35,460) | 10,076,142 | 1,498 | 10,077,640 | |||||||||||||||||||||||||||||
Less: Unamortized discount
on acquired loans |
(8,215) | — | 8,215 | — | — | — | |||||||||||||||||||||||||||||
Unearned net deferred fees and
costs and net loans in process
|
(27,245) | — | 27,245 | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 10,076,142 | $ | — | $ | — | $ | 10,076,142 | $ | 1,498 | $ | 10,077,640 | |||||||||||||||||||||||
Allowance: | |||||||||||||||||||||||||||||||||||
Construction and development | n/a ⁴ | $ | (7,012) | $ | — | $ | (7,012) | $ | (11,963) | $ | (18,975) | ||||||||||||||||||||||||
Owner-occupied CRE | n/a ⁴ | (20,530) | — | (20,530) | (4,298) | (24,828) | |||||||||||||||||||||||||||||
Non-owner-occupied CRE | n/a ⁴ | (50,965) | — | (50,965) | (98,986) | (149,951) | |||||||||||||||||||||||||||||
Multifamily residential real estate | n/a ⁴ | (6,726) | — | (6,726) | (2,681) | (9,407) | |||||||||||||||||||||||||||||
Total commercial real estate | (84,496) | 84,496 | — | — | — | — | |||||||||||||||||||||||||||||
Agriculture | (27,018) | — | — | (27,018) | (24,360) | (51,378) | |||||||||||||||||||||||||||||
Commercial non-real estate | (27,599) | — | — | (27,599) | (32,938) | (60,537) | |||||||||||||||||||||||||||||
Residential real estate | (8,202) | 737 | — | (7,465) | (2,595) | (10,060) | |||||||||||||||||||||||||||||
Consumer and other | (2,572) | — | — | (2,572) | 532 | (2,040) | |||||||||||||||||||||||||||||
Total | $ | (149,887) | $ | — | $ | — | $ | (149,887) | $ | (177,289) | $ | (327,176) | |||||||||||||||||||||||
1 Reclassifications made from reported loan and related allowance segments to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, to estimate credit losses.
|
|||||||||||||||||||||||||||||||||||
2 Unamortized discount on acquired loans, unearned net deferred fees and costs and net loans in process to related were assigned to appropriate loan portfolio segment to present loan categories at amortized cost.
|
|||||||||||||||||||||||||||||||||||
3 Discounts on previously acquired loans and Day 1 impact of adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, were transferred to allowance for credit losses as a part of CECL adoption.
|
|||||||||||||||||||||||||||||||||||
4 Balance for this segment is included in total commercial real estate for September 30, 2020.
|
June 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
Amortized
Cost |
Gross Unrealized Gains | Gross Unrealized Losses |
Estimated
Fair Value |
||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 99,047 | $ | 201 | $ | (98) | $ | 99,150 | $ | 49,924 | $ | 228 | $ | — | $ | 50,152 | |||||||||||||
U.S. Agency securities | 24,976 | — | (865) | 24,111 | 24,974 | 86 | — | 25,060 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Government National Mortgage Association | 312,811 | 6,710 | (274) | 319,247 | 485,689 | 11,481 | (43) | 497,127 | |||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 977,156 | 11,786 | (7,142) | 981,800 | 578,650 | 18,919 | (9) | 597,560 | |||||||||||||||||||||
Federal National Mortgage Association | 439,752 | 4,748 | (3,864) | 440,636 | 287,842 | 7,788 | (16) | 295,614 | |||||||||||||||||||||
Small Business Assistance Program | 232,089 | 7,167 | (343) | 238,913 | 244,653 | 7,884 | (58) | 252,479 | |||||||||||||||||||||
States and political subdivision securities | 47,287 | 1,091 | (1) | 48,377 | 54,224 | 1,356 | — | 55,580 | |||||||||||||||||||||
Corporate debt securities | 28,000 | 244 | — | 28,244 | — | — | — | — | |||||||||||||||||||||
Other | 1,006 | 30 | — | 1,036 | 1,006 | 48 | — | 1,054 | |||||||||||||||||||||
Total | $ | 2,162,124 | $ | 31,977 | $ | (12,587) | $ | 2,181,514 | $ | 1,726,962 | $ | 47,790 | $ | (126) | $ | 1,774,626 | |||||||||||||
Securities held to maturity | |||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 13,666 | $ | 41 | $ | — | $ | 13,707 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||
Government National Mortgage Association | 45,964 | — | (49) | 45,915 | — | — | — | — | |||||||||||||||||||||
Federal Home Loan Mortgage Corporation | 53,616 | 43 | (34) | 53,625 | — | — | — | — | |||||||||||||||||||||
Federal National Mortgage Association | 46,408 | 3 | (186) | 46,225 | — | — | — | — | |||||||||||||||||||||
Small Business Assistance Program | 39,341 | — | (238) | 39,103 | — | — | — | — | |||||||||||||||||||||
States and political subdivision securities | 3,450 | — | — | 3,450 | — | — | — | — | |||||||||||||||||||||
Total | $ | 202,445 | $ | 87 | $ | (507) | $ | 202,025 | $ | — | $ | — | $ | — | $ | — |
June 30, 2021 | September 30, 2020 | ||||||||||||||||
Amortized
Cost |
Estimated
Fair Value |
Amortized
Cost |
Estimated
Fair Value |
||||||||||||||
(dollars in thousands) | |||||||||||||||||
Securities available for sale | |||||||||||||||||
Due in one year or less | $ | 18,198 | $ | 18,289 | $ | 67,131 | $ | 67,456 | |||||||||
Due after one year through five years | 123,092 | 122,998 | 51,779 | 52,694 | |||||||||||||
Due after five years through ten years | 58,020 | 58,595 | 10,212 | 10,642 | |||||||||||||
Due after ten years | — | — | — | — | |||||||||||||
199,310 | 199,882 | 129,122 | 130,792 | ||||||||||||||
Mortgage-backed securities | 1,961,808 | 1,980,596 | 1,596,834 | 1,642,780 | |||||||||||||
Securities without contractual maturities | 1,006 | 1,036 | 1,006 | 1,054 | |||||||||||||
Total | $ | 2,162,124 | $ | 2,181,514 | $ | 1,726,962 | $ | 1,774,626 | |||||||||
Securities held to maturity | |||||||||||||||||
Due in one year or less | $ | 150 | $ | 150 | $ | — | $ | — | |||||||||
Due after one year through five years | 500 | 500 | — | — | |||||||||||||
Due after five years through ten years | 16,466 | 16,507 | — | — | |||||||||||||
Due after ten years | — | — | — | — | |||||||||||||
17,116 | 17,157 | — | — | ||||||||||||||
Mortgage-backed securities | 185,329 | 184,868 | — | — | |||||||||||||
Securities without contractual maturities | — | — | — | — | |||||||||||||
Total | $ | 202,445 | $ | 202,025 | $ | — | $ | — |
As of June 30, 2021 | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | 49,264 | $ | (98) | $ | — | $ | — | $ | 49,264 | $ | (98) | ||||||||||||||
U.S. Agency securities | 24,111 | (865) | — | — | 24,111 | (865) | ||||||||||||||||||||
Mortgage-backed securities | 819,752 | (11,477) | 12,402 | (146) | 832,154 | (11,623) | ||||||||||||||||||||
States and political subdivision securities | 999 | (1) | — | — | 999 | (1) | ||||||||||||||||||||
Total | $ | 894,126 | $ | (12,441) | $ | 12,402 | $ | (146) | $ | 906,528 | $ | (12,587) | ||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Mortgage-backed securities | 136,102 | (507) | — | — | 136,102 | (507) | ||||||||||||||||||||
States and political subdivision securities | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 136,102 | $ | (507) | $ | — | $ | — | $ | 136,102 | $ | (507) |
As of September 30, 2020 | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
U.S. Agency securities | — | — | — | — | — | — | ||||||||||||||||||||
Mortgage-backed securities | 71,547 | (103) | 27,897 | (23) | 99,444 | (126) | ||||||||||||||||||||
States and political subdivision securities | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 71,547 | $ | (103) | $ | 27,897 | $ | (23) | $ | 99,444 | $ | (126) | ||||||||||||||
Securities held to maturity | ||||||||||||||||||||||||||
U.S. Treasury securities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Mortgage-backed securities | — | — | — | — | — | — | ||||||||||||||||||||
States and political subdivision securities | — | — | — | — | — | — | ||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
June 30, 2021 | September 30, 2020 | ||||||||||||||||||||||||||||
Total Loans | Less: Fair Value Option Loans | Less: Guaranteed Loans ¹ | Loans at Amortized Cost | Total Loans ² | Less: Fair Value Option Loans | Less: Guaranteed Loans ¹ | Loans at Amortized Cost | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Construction and development | $ | 433,293 | $ | — | $ | — | $ | 433,293 | $ | 509,644 | $ | — | $ | — | $ | 509,644 | |||||||||||||
Owner-occupied CRE | 1,318,196 | 93,756 | 50,189 | 1,174,251 | 1,417,394 | 109,097 | 48,468 | 1,259,829 | |||||||||||||||||||||
Non-owner-occupied CRE | 2,244,335 | 230,174 | 26,802 | 1,987,359 | 2,894,380 | 283,266 | 27,402 | 2,583,712 | |||||||||||||||||||||
Multifamily residential real estate | 592,544 | 1,474 | — | 591,070 | 533,983 | 3,847 | — | 530,136 | |||||||||||||||||||||
Total commercial real estate | 4,588,368 | 325,404 | 76,991 | 4,185,973 | 5,355,401 | 396,210 | 75,870 | 4,883,321 | |||||||||||||||||||||
Agriculture | 1,438,499 | 106,060 | 34,608 | 1,297,831 | 1,722,696 | 129,041 | 42,353 | 1,551,302 | |||||||||||||||||||||
Commercial non-real estate | 1,710,938 | 113,685 | 380,812 | 1,216,441 | 2,165,038 | 129,934 | 744,371 | 1,290,733 | |||||||||||||||||||||
Residential real estate ³ | 631,688 | — | 279 | 631,409 | 730,812 | — | 290 | 730,522 | |||||||||||||||||||||
Consumer and other ⁴ | 108,290 | — | — | 108,290 | 102,195 | — | — | 102,195 | |||||||||||||||||||||
Total | $ | 8,477,783 | $ | 545,149 | $ | 492,690 | $ | 7,439,944 | $ | 10,076,142 | $ | 655,185 | $ | 862,884 | $ | 8,558,073 | |||||||||||||
1 Includes loans guaranteed by agencies of the U.S. government.
|
|||||||||||||||||||||||||||||
2 As a part of the adoption of CECL, loan pools are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, and unearned net deferred fees and costs. For additional information on September 30, 2020 loan segment balances, see Note 2.
|
|||||||||||||||||||||||||||||
3 Includes residential real estate loans held for sale of $1.4 million and $12.4 million at June 30, 2021 and September 30, 2020, respectively, recorded at the lower of cost or fair value.
|
|||||||||||||||||||||||||||||
4 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts and loans in process.
|
As of June 30, 2021 | Current or Less Than 30 Days Past Due | 30-89 Days Past Due | 90 Days Past Due and Still Accruing | Nonaccrual | Total | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Construction and development | $ | 433,271 | $ | — | $ | — | $ | 22 | $ | 433,293 | |||||||||||||||||||
Owner-occupied CRE | 1,210,373 | 142 | — | 13,925 | 1,224,440 | ||||||||||||||||||||||||
Non-owner-occupied CRE | 2,007,189 | — | — | 6,972 | 2,014,161 | ||||||||||||||||||||||||
Multifamily residential real estate | 584,187 | — | — | 6,883 | 591,070 | ||||||||||||||||||||||||
Total commercial real estate | 4,235,020 | 142 | — | 27,802 | 4,262,964 | ||||||||||||||||||||||||
Agriculture | 1,195,763 | 8,005 | — | 128,671 | 1,332,439 | ||||||||||||||||||||||||
Commercial non-real estate | 1,561,870 | 1,231 | — | 34,152 | 1,597,253 | ||||||||||||||||||||||||
Residential real estate | 624,738 | 500 | — | 6,450 | 631,688 | ||||||||||||||||||||||||
Consumer and other | 108,134 | 115 | 10 | 31 | 108,290 | ||||||||||||||||||||||||
Total | $ | 7,725,525 | $ | 9,993 | $ | 10 | $ | 197,106 | $ | 7,932,634 |
As of September 30, 2020 | Current or Less Than 30 Days Past Due | 30-89 Days Past Due | 90 Days Past Due and Still Accruing | Nonaccrual | Total | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Commercial real estate | $ | 4,790,963 | $ | 8,894 | $ | — | $ | 73,146 | $ | 4,873,003 | |||||||||||||||||||
Agriculture | 1,317,377 | 60,020 | — | 217,642 | 1,595,039 | ||||||||||||||||||||||||
Commercial non-real estate | 2,021,308 | 3,512 | — | 26,843 | 2,051,663 | ||||||||||||||||||||||||
Residential real estate | 821,154 | 2,459 | — | 4,441 | 828,054 | ||||||||||||||||||||||||
Consumer and other | 100,319 | 45 | — | 74 | 100,438 | ||||||||||||||||||||||||
Total | $ | 9,051,121 | $ | 74,930 | $ | — | $ | 322,146 | $ | 9,448,197 |
September 30, 2020 | June 30, 2021 | Three Months Ended June 30, 2021 | Nine Months Ended June 30, 2021 | |||||||||||||||||||||||
Nonaccrual | Nonaccrual | Nonaccrual Loans with No Related ACL |
Accrued Interest
Written Off on Nonaccrual Loans |
Accrued Interest
Written Off on Nonaccrual Loans |
||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Construction and development | n/a ¹ | $ | 22 | $ | — | $ | — | $ | 115 | |||||||||||||||||
Owner-occupied CRE | n/a ¹ | 13,925 | 4,232 | 17 | 31 | |||||||||||||||||||||
Non-owner-occupied CRE | n/a ¹ | 6,972 | 1,207 | 19 | 1,922 | |||||||||||||||||||||
Multifamily residential real estate | n/a ¹ | 6,883 | 6,883 | 40 | 40 | |||||||||||||||||||||
Total commercial real estate | $ | 73,146 | 27,802 | 12,322 | 76 | 2,108 | ||||||||||||||||||||
Agriculture | 217,642 | 128,671 | 40,333 | 64 | 775 | |||||||||||||||||||||
Commercial non-real estate | 26,843 | 34,152 | 8,328 | 26 | 25 | |||||||||||||||||||||
Residential real estate | 4,441 | 6,450 | 87 | 7 | 75 | |||||||||||||||||||||
Consumer and other | 74 | 31 | — | — | 1 | |||||||||||||||||||||
Total | $ | 322,146 | $ | 197,106 | $ | 61,070 | $ | 173 | $ | 2,984 | ||||||||||||||||
1 Balance for this segment is included in total commercial real estate for September 30, 2020.
|
Term loans | |||||||||||||||||||||||||||||
Fiscal Year to Date | Fiscal Year | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Revolving Loans |
Revolving Loans
Converted to Term Loans |
Total | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Construction and development | |||||||||||||||||||||||||||||
Pass | $ | 167,374 | $ | 116,332 | $ | 57,660 | $ | 11,743 | $ | 712 | $ | 612 | $ | 53,861 | $ | — | $ | 408,294 | |||||||||||
Special Mention | 2,560 | — | 196 | — | — | — | — | — | 2,756 | ||||||||||||||||||||
Substandard | 20,824 | — | 1,419 | — | — | — | — | — | 22,243 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total construction and development | $ | 190,758 | $ | 116,332 | $ | 59,275 | $ | 11,743 | $ | 712 | $ | 612 | $ | 53,861 | $ | — | $ | 433,293 | |||||||||||
Owner-occupied CRE | |||||||||||||||||||||||||||||
Pass | $ | 236,108 | $ | 332,095 | $ | 205,302 | $ | 103,336 | $ | 117,637 | $ | 122,449 | $ | 43,401 | $ | — | $ | 1,160,328 | |||||||||||
Special Mention | 7,716 | 1,606 | 2,810 | 5,798 | 5,525 | 7,723 | 383 | — | 31,561 | ||||||||||||||||||||
Substandard | 6,067 | 3,968 | 2,277 | 524 | 11,906 | 4,544 | 75 | — | 29,361 | ||||||||||||||||||||
Doubtful | — | — | 3,190 | — | — | — | — | — | 3,190 | ||||||||||||||||||||
Total owner-occupied CRE | $ | 249,891 | $ | 337,669 | $ | 213,579 | $ | 109,658 | $ | 135,068 | $ | 134,716 | $ | 43,859 | $ | — | $ | 1,224,440 | |||||||||||
Non-owner-occupied CRE | |||||||||||||||||||||||||||||
Pass | $ | 214,538 | $ | 335,587 | $ | 275,953 | $ | 273,022 | $ | 246,273 | $ | 257,951 | $ | 36,659 | $ | — | $ | 1,639,983 | |||||||||||
Special Mention | 16,343 | 28,609 | 45,051 | 57,833 | 34,774 | 14,608 | 345 | — | 197,563 | ||||||||||||||||||||
Substandard | 66,008 | 6,273 | 31,616 | 32,466 | 7,623 | 8,052 | 24,193 | — | 176,231 | ||||||||||||||||||||
Doubtful | 384 | — | — | — | — | — | — | — | 384 | ||||||||||||||||||||
Total non-owner-occupied CRE | $ | 297,273 | $ | 370,469 | $ | 352,620 | $ | 363,321 | $ | 288,670 | $ | 280,611 | $ | 61,197 | $ | — | $ | 2,014,161 | |||||||||||
Multifamily residential real estate | |||||||||||||||||||||||||||||
Pass | $ | 153,086 | $ | 96,574 | $ | 145,985 | $ | 68,696 | $ | 67,826 | $ | 37,156 | $ | 1,186 | $ | — | $ | 570,509 | |||||||||||
Special Mention | — | — | 1,261 | — | 1,042 | 808 | — | — | 3,111 | ||||||||||||||||||||
Substandard | 252 | 499 | — | 9,393 | — | 423 | — | — | 10,567 | ||||||||||||||||||||
Doubtful | — | 6,883 | — | — | — | — | — | — | 6,883 | ||||||||||||||||||||
Total multifamily residential real estate | $ | 153,338 | $ | 103,956 | $ | 147,246 | $ | 78,089 | $ | 68,868 | $ | 38,387 | $ | 1,186 | $ | — | $ | 591,070 | |||||||||||
Total commercial real estate | |||||||||||||||||||||||||||||
Pass | $ | 771,106 | $ | 880,588 | $ | 684,900 | $ | 456,797 | $ | 432,448 | $ | 418,168 | $ | 135,107 | $ | — | $ | 3,779,114 | |||||||||||
Special Mention | 26,619 | 30,215 | 49,318 | 63,631 | 41,341 | 23,139 | 728 | — | 234,991 | ||||||||||||||||||||
Substandard | 93,151 | 10,740 | 35,312 | 42,383 | 19,529 | 13,019 | 24,268 | — | 238,402 | ||||||||||||||||||||
Doubtful | 384 | 6,883 | 3,190 | — | — | — | — | — | 10,457 | ||||||||||||||||||||
Total commercial real estate | $ | 891,260 | $ | 928,426 | $ | 772,720 | $ | 562,811 | $ | 493,318 | $ | 454,326 | $ | 160,103 | $ | — | $ | 4,262,964 | |||||||||||
Agriculture | |||||||||||||||||||||||||||||
Pass | $ | 185,395 | $ | 148,858 | $ | 73,722 | $ | 58,803 | $ | 57,291 | $ | 22,670 | $ | 444,244 | $ | — | $ | 990,983 | |||||||||||
Special Mention | 22,971 | 12,862 | 4,131 | 24,327 | 4,842 | 3,562 | 28,318 | — | 101,013 | ||||||||||||||||||||
Substandard | 25,786 | 8,929 | 14,828 | 36,941 | 36,381 | 4,312 | 87,780 | — | 214,957 | ||||||||||||||||||||
Doubtful | 1,704 | — | 888 | 21,391 | 1,007 | — | 496 | — | 25,486 | ||||||||||||||||||||
Total agriculture | $ | 235,856 | $ | 170,649 | $ | 93,569 | $ | 141,462 | $ | 99,521 | $ | 30,544 | $ | 560,838 | $ | — | $ | 1,332,439 | |||||||||||
Commercial non-real estate | |||||||||||||||||||||||||||||
Pass | $ | 412,511 | $ | 263,816 | $ | 172,804 | $ | 47,621 | $ | 40,763 | $ | 33,105 | $ | 527,533 | $ | — | $ | 1,498,153 | |||||||||||
Special Mention | 1,967 | 2,283 | 2,821 | 151 | 2,520 | 763 | 18,271 | — | 28,776 | ||||||||||||||||||||
Substandard | 13,229 | 4,563 | 10,080 | 17,974 | 118 | 1,098 | 17,310 | — | 64,372 | ||||||||||||||||||||
Doubtful | — | — | 47 | 62 | — | 3,969 | 1,874 | — | 5,952 | ||||||||||||||||||||
Total commercial non-real estate | $ | 427,707 | $ | 270,662 | $ | 185,752 | $ | 65,808 | $ | 43,401 | $ | 38,935 | $ | 564,988 | $ | — | $ | 1,597,253 | |||||||||||
Term loans | |||||||||||||||||||||||||||||
Fiscal Year to Date | Fiscal Year | ||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior to 2017 | Revolving Loans |
Revolving Loans
Converted to Term Loans |
Total | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Residential real estate ¹ | |||||||||||||||||||||||||||||
Pass | $ | 106,126 | $ | 180,443 | $ | 61,267 | $ | 40,503 | $ | 24,232 | $ | 96,829 | $ | 110,650 | $ | 274 | $ | 620,324 | |||||||||||
Special Mention | 731 | 219 | 267 | 297 | 128 | 294 | 148 | — | 2,084 | ||||||||||||||||||||
Substandard | 37 | 952 | 1,591 | 739 | 499 | 4,540 | 922 | — | 9,280 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total residential real estate | $ | 106,894 | $ | 181,614 | $ | 63,125 | $ | 41,539 | $ | 24,859 | $ | 101,663 | $ | 111,720 | $ | 274 | $ | 631,688 | |||||||||||
Consumer and other ¹ | |||||||||||||||||||||||||||||
Pass | $ | 20,711 | $ | 11,906 | $ | 16,675 | $ | 1,910 | $ | 734 | $ | 797 | $ | 55,492 | $ | — | $ | 108,225 | |||||||||||
Special Mention | — | — | — | — | — | — | 34 | — | 34 | ||||||||||||||||||||
Substandard | — | 3 | 8 | — | — | — | 20 | — | 31 | ||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total consumer and other | $ | 20,711 | $ | 11,909 | $ | 16,683 | $ | 1,910 | $ | 734 | $ | 797 | $ | 55,546 | $ | — | $ | 108,290 | |||||||||||
Total loans | |||||||||||||||||||||||||||||
Pass | $ | 1,495,849 | $ | 1,485,611 | $ | 1,009,368 | $ | 605,634 | $ | 555,468 | $ | 571,569 | $ | 1,273,026 | $ | 274 | $ | 6,996,799 | |||||||||||
Special Mention | 52,288 | 45,579 | 56,537 | 88,406 | 48,831 | 27,758 | 47,499 | — | 366,898 | ||||||||||||||||||||
Substandard | 132,203 | 25,187 | 61,819 | 98,037 | 56,527 | 22,969 | 130,300 | — | 527,042 | ||||||||||||||||||||
Doubtful | 2,088 | 6,883 | 4,125 | 21,453 | 1,007 | 3,969 | 2,370 | — | 41,895 | ||||||||||||||||||||
Total loans | $ | 1,682,428 | $ | 1,563,260 | $ | 1,131,849 | $ | 813,530 | $ | 661,833 | $ | 626,265 | $ | 1,453,195 | $ | 274 | $ | 7,932,634 | |||||||||||
1 The Company generally does not risk rate residential real estate or consumer and other 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 and other loans.
|
September 30, 2020 | |||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance for Credit Losses | |||||||||
Impaired loans: | (dollars in thousands) | ||||||||||
With an allowance for credit losses recorded: | |||||||||||
Commercial real estate | $ | 111,121 | $ | 114,034 | $ | 25,087 | |||||
Agriculture | 53,052 | 55,145 | 8,151 | ||||||||
Commercial non-real estate | 39,821 | 47,571 | 7,822 | ||||||||
Residential real estate | 5,670 | 6,314 | 1,903 | ||||||||
Consumer and other | 98 | 109 | 30 | ||||||||
Total impaired loans with an allowance for credit losses recorded | 209,762 | 223,173 | 42,993 | ||||||||
With no allowance for credit losses recorded: | |||||||||||
Commercial real estate | 121,380 | 161,211 | — | ||||||||
Agriculture | 308,734 | 332,272 | — | ||||||||
Commercial non-real estate | 66,542 | 75,365 | — | ||||||||
Residential real estate | 6,543 | 8,818 | — | ||||||||
Consumer and other | — | 108 | — | ||||||||
Total impaired loans with no allowance for credit losses recorded | 503,199 | 577,774 | — | ||||||||
Total impaired loans | $ | 712,961 | $ | 800,947 | $ | 42,993 |
Three Months Ended June 30, 2020 | Nine Months Ended June 30, 2020 | ||||||||||||||||
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 | $ | 152,871 | $ | 1,684 | $ | 113,146 | $ | 5,350 | |||||||||
Agriculture | 348,006 | 3,421 | 354,202 | 16,722 | |||||||||||||
Commercial non-real estate | 97,310 | 678 | 84,849 | 5,079 | |||||||||||||
Residential real estate | 10,901 | 120 | 9,957 | 513 | |||||||||||||
Consumer | 117 | 2 | 148 | 6 | |||||||||||||
Total | $ | 609,205 | $ | 5,905 | $ | 562,302 | $ | 27,670 |
Three Months Ended June 30, 2020 | Nine Months Ended June 30, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Balance, beginning of period | $ | 19,340 | $ | 26,047 | |||||||
Accretion | (1,854) | (5,547) | |||||||||
Reclassification (to) nonaccretable difference | (776) | (3,790) | |||||||||
Balance, end of period | $ | 16,710 | $ | 16,710 |
June 30, 2021 | September 30, 2020 | ||||||||||||||||
Accruing | Nonaccrual | Accruing | Nonaccrual | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Construction and development | $ | — | $ | 22 | n/a ¹ | n/a ¹ | |||||||||||
Owner-occupied CRE | 3,346 | 4,166 | n/a ¹ | n/a ¹ | |||||||||||||
Non-owner-occupied CRE | 11,756 | 10 | n/a ¹ | n/a ¹ | |||||||||||||
Multifamily residential real estate | — | — | n/a ¹ | n/a ¹ | |||||||||||||
Total commercial real estate | 15,102 | 4,198 | $ | 23,215 | $ | 11,913 | |||||||||||
Agriculture | 20,908 | 9,275 | 2,976 | 45,971 | |||||||||||||
Commercial non real estate | 4,626 | 22,769 | 8,734 | 4,803 | |||||||||||||
Residential real estate | 236 | 52 | 277 | 74 | |||||||||||||
Consumer and other | — | 18 | 3 | 31 | |||||||||||||
Total | $ | 40,872 | $ | 36,312 | $ | 35,205 | $ | 62,792 | |||||||||
1 Balance for this segment is included in total commercial real estate for September 30, 2020.
|
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | Recorded Investment | Recorded Investment | ||||||||||||||||||||||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Construction and development | — | $ | — | $ | — | n/a ¹ | n/a ¹ | n/a ¹ | — | $ | — | $ | — | n/a ¹ | n/a ¹ | n/a ¹ | |||||||||||||||||||||||||||||||
Owner-occupied CRE | 2 | 1,446 | 1,446 | n/a ¹ | n/a ¹ | n/a ¹ | 2 | 1,446 | 1,446 | n/a ¹ | n/a ¹ | n/a ¹ | |||||||||||||||||||||||||||||||||||
Non-owner-occupied CRE | — | — | — | n/a ¹ | n/a ¹ | n/a ¹ | — | — | — | n/a ¹ | n/a ¹ | n/a ¹ | |||||||||||||||||||||||||||||||||||
Multifamily residential real estate | — | — | — | n/a ¹ | n/a ¹ | n/a ¹ | — | — | — | n/a ¹ | n/a ¹ | n/a ¹ | |||||||||||||||||||||||||||||||||||
Total commercial real estate | 2 | 1,446 | 1,446 | — | — | — | 2 | 1,446 | 1,446 | 1 | 2,216 | 2,216 | |||||||||||||||||||||||||||||||||||
Agriculture | 6 | 1,758 | 1,758 | 1 | 19,342 | 19,342 | 9 | 4,305 | 4,305 | 11 | 20,797 | 20,797 | |||||||||||||||||||||||||||||||||||
Commercial non-real estate | 3 | 15,238 | 15,238 | 3 | 922 | 922 | 4 | 15,982 | 15,982 | 5 | 1,752 | 1,752 | |||||||||||||||||||||||||||||||||||
Residential real estate | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Total nonaccruing | 11 | $ | 18,442 | $ | 18,442 | 4 | $ | 20,264 | $ | 20,264 | 15 | $ | 21,733 | $ | 21,733 | 17 | $ | 24,765 | $ | 24,765 | |||||||||||||||||||||||||||
Change in recorded investment due to principal paydown at time of modification | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||||||||||||||||
Change in recorded investment due to chargeoffs at time of modification | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
1 Balance for this segment is included in total commercial real estate for the three and nine months ended June 30, 2020.
|
Three Months Ended June 30, 2021 | Beginning balance, April 1, 2021 | Charge-offs | Recoveries | Provision for (reversal of) credit losses on loans | Ending balance, June 30, 2021 | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Construction and development | $ | 15,088 | $ | — | $ | 38 | $ | 1,054 | $ | 16,180 | |||||||||||||||||||
Owner-occupied CRE | 24,611 | (483) | 97 | (3,793) | 20,432 | ||||||||||||||||||||||||
Non-owner-occupied CRE | 135,933 | (3,310) | 1 | (6,668) | 125,956 | ||||||||||||||||||||||||
Multifamily residential real estate | 11,855 | (377) | — | (5,317) | 6,161 | ||||||||||||||||||||||||
Total commercial real estate | 187,487 | (4,170) | 136 | (14,724) | 168,729 | ||||||||||||||||||||||||
Agriculture | 45,783 | (1,654) | 176 | (3,648) | 40,657 | ||||||||||||||||||||||||
Commercial non-real estate | 52,074 | (19) | 301 | (1,332) | 51,024 | ||||||||||||||||||||||||
Residential real estate | 8,903 | (1) | 29 | (893) | 8,038 | ||||||||||||||||||||||||
Consumer and other | 1,706 | (150) | 141 | 153 | 1,850 | ||||||||||||||||||||||||
Total | $ | 295,953 | $ | (5,994) | $ | 783 | $ | (20,444) | $ | 270,298 |
Nine Months Ended June 30, 2021 | Adjusted balance September 30, 2020 ¹ | Adoption of ASU 2016-13, as amended | Adjusted beginning balance, October 1, 2020 | Charge-offs | Recoveries | (Reversal of) provision for credit losses on loans | Ending balance, June 30, 2021 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Construction and development | $ | 7,012 | $ | 11,963 | $ | 18,975 | $ | (27) | $ | 377 | $ | (3,145) | $ | 16,180 | |||||||||||||||||||||||||||
Owner-occupied CRE | 20,530 | 4,298 | 24,828 | (483) | 98 | (4,011) | 20,432 | ||||||||||||||||||||||||||||||||||
Non-owner-occupied CRE | 50,965 | 98,986 | 149,951 | (36,951) | 455 | 12,501 | 125,956 | ||||||||||||||||||||||||||||||||||
Multifamily residential real estate | 6,726 | 2,681 | 9,407 | (377) | — | (2,869) | 6,161 | ||||||||||||||||||||||||||||||||||
Total commercial real estate | 85,233 | 117,928 | 203,161 | (37,838) | 930 | 2,476 | 168,729 | ||||||||||||||||||||||||||||||||||
Agriculture | 27,018 | 24,360 | 51,378 | (5,042) | 2,673 | (8,352) | 40,657 | ||||||||||||||||||||||||||||||||||
Commercial non-real estate | 27,599 | 32,938 | 60,537 | (4,750) | 860 | (5,623) | 51,024 | ||||||||||||||||||||||||||||||||||
Residential real estate | 7,465 | 2,595 | 10,060 | (300) | 248 | (1,970) | 8,038 | ||||||||||||||||||||||||||||||||||
Consumer and other | 2,572 | (532) | 2,040 | (619) | 428 | 1 | 1,850 | ||||||||||||||||||||||||||||||||||
Total | $ | 149,887 | $ | 177,289 | $ | 327,176 | $ | (48,549) | $ | 5,139 | $ | (13,468) | $ | 270,298 | |||||||||||||||||||||||||||
1 At September 30, 2020, the allowance balances were reclassified to align with the eight loan portfolio pools established for adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs. For additional information, see Note 2.
|
Three Months Ended June 30, 2020 | Beginning balance, April 1, 2020 | Charge-offs | Recoveries | Provision for credit losses on loans | Impairment of ASC 310-30 loans | Ending balance, June 30, 2020 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 64,414 | $ | (1,335) | $ | 121 | $ | 15,392 | $ | 31 | $ | 78,623 | |||||||||||||||||||||||
Agriculture | 29,526 | (4,250) | 735 | 3,418 | — | 29,429 | |||||||||||||||||||||||||||||
Commercial non-real estate | 31,766 | (3,210) | 131 | 359 | — | 29,046 | |||||||||||||||||||||||||||||
Residential real estate | 8,356 | (92) | 48 | 229 | — | 8,541 | |||||||||||||||||||||||||||||
Consumer and other | 1,888 | (1,720) | 139 | 2,203 | 9 | 2,519 | |||||||||||||||||||||||||||||
Total | $ | 135,950 | $ | (10,607) | $ | 1,174 | $ | 21,601 | $ | 40 | $ | 148,158 |
Nine Months Ended June 30, 2020 | Beginning balance, October 1, 2019 | Charge-offs | Recoveries | Provision for credit losses on loans | (Improvement) impairment of ASC 310-30 loans | Ending balance, June 30, 2020 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 16,827 | $ | (2,789) | $ | 355 | $ | 64,249 | $ | (19) | $ | 78,623 | |||||||||||||||||||||||
Agriculture | 30,819 | (13,378) | 2,143 | 10,110 | (265) | 29,429 | |||||||||||||||||||||||||||||
Commercial non-real estate | 17,567 | (8,269) | 303 | 19,445 | — | 29,046 | |||||||||||||||||||||||||||||
Residential real estate | 4,095 | (379) | 360 | 4,023 | 442 | 8,541 | |||||||||||||||||||||||||||||
Consumer and other | 1,466 | (2,825) | 324 | 3,524 | 30 | 2,519 | |||||||||||||||||||||||||||||
Total | $ | 70,774 | $ | (27,640) | $ | 3,485 | $ | 101,351 | $ | 188 | $ | 148,158 |
June 30, 2021 | September 30, 2020 | ||||||||||||||||||||||
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 - FVO loan portfolio | |||||||||||||||||||||||
Financial institution counterparties | $ | 522,170 | $ | — | $ | (37,253) | $ | 592,241 | $ | — | $ | (62,587) | |||||||||||
Interest rate swaps - Other | |||||||||||||||||||||||
Financial institution counterparties | 782,712 | — | (1,046) | 641,189 | — | (1,672) | |||||||||||||||||
Customer counterparties | 782,712 | 55,329 | (3,733) | 641,189 | 83,533 | — | |||||||||||||||||
Interest rate caps | |||||||||||||||||||||||
Financial institution counterparties | 30,529 | 5 | — | 20,538 | 2 | — | |||||||||||||||||
Customer counterparties | 30,529 | — | (5) | 20,538 | — | (2) | |||||||||||||||||
Risk participation agreements | 107,552 | — | (207) | 80,681 | — | (32) | |||||||||||||||||
Mortgage loan commitments | 45,349 | — | (6) | 92,278 | — | (96) | |||||||||||||||||
Mortgage loan forward sale contracts | 44,577 | 6 | — | 94,084 | 96 | — | |||||||||||||||||
Total | $ | 2,346,130 | $ | 55,340 | $ | (42,250) | $ | 2,182,738 | $ | 83,631 | $ | (64,389) |
Gross Fair Value | Fair Value Offset Amount | Cash Collateral | Net Amount Presented on the Consolidated Balance Sheet | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of June 30, 2021 | |||||||||||||||||||||||
Total Derivative Assets | $ | 55,340 | $ | (2,898) | $ | 13,474 | $ | 65,916 | |||||||||||||||
Total Derivative Liabilities ¹ | (42,250) | 2,898 | 35,607 | (3,745) | |||||||||||||||||||
1 There was an additional $25.8 million of collateral held for initial margin with a Futures Clearing Merchant for clearing derivatives at June 30, 2021 and is included in other assets in the consolidated balance sheets.
|
Amount of (Loss) Gain Recognized in Consolidated Statements of Income | ||||||||||||||||||||
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||||||
Location of (Loss) Gain Recognized in Consolidated Statements of Income | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Interest rate swaps - FVO loan portfolio | Derivative interest expense | $ | (3,117) | $ | (3,040) | $ | (9,692) | $ | (5,181) | |||||||||||
Interest rate swaps - FVO loan portfolio | Change in fair value of FVO loans and related derivatives | (3,685) | (2,883) | 27,641 | (36,148) | |||||||||||||||
Interest rate swaps and other derivatives | Other derivative income | 1,530 | 2,242 | 5,683 | 950 | |||||||||||||||
Mortgage loan commitments | Other derivative income | 175 | (627) | 90 | 21 | |||||||||||||||
Mortgage loan forward sale contracts | Other derivative income | (175) | 627 | (90) | (21) |
Core Deposit Intangible | Customer Relationships Intangible |
Other
Intangible |
Total | ||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
As of June 30, 2021 | |||||||||||||||||||||||||||||
Gross carrying amount | $ | 7,339 | $ | 3,172 | $ | 538 | $ | 11,049 | |||||||||||||||||||||
Accumulated amortization | (4,858) | (427) | (374) | (5,659) | |||||||||||||||||||||||||
Net intangible assets | $ | 2,481 | $ | 2,745 | $ | 164 | $ | 5,390 | |||||||||||||||||||||
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 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
Remaining in 2021 | $ | 240 | |||
2022 | 929 | ||||
2023 | 831 | ||||
2024 | 742 | ||||
2025 | 683 | ||||
2026 and thereafter | 1,965 | ||||
Total | $ | 5,390 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows paid for operating leases | $ | 1,413 | $ | 1,400 | $ | 4,341 | $ | 4,226 | |||||||||
Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||||||||
Operating leases | $ | (443) | $ | 2,415 | $ | 2,444 | $ | 8,046 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
Remaining in 2021 | $ | 1,895 | |||
2022 | 4,973 | ||||
2023 | 4,294 | ||||
2024 | 3,545 | ||||
2025 | 2,605 | ||||
2026 and thereafter | 5,446 | ||||
Total undiscounted lease payments | 22,758 | ||||
Less: Amounts representing interest | (1,739) | ||||
Lease liability | $ | 21,019 |
June 30, 2021 | |||||||||||||||||||||||||||||
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 | $ | 80,167 | $ | — | $ | — | $ | — | $ | 80,167 | |||||||||||||||||||
Total repurchase agreements | $ | 80,167 | $ | — | $ | — | $ | — | $ | 80,167 |
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 |
Fiscal year | Amount | ||||
(dollars in thousands) | |||||
Remaining in 2021 | $ | — | |||
2022 | 30,000 | ||||
2023 | 30,000 | ||||
2024 | 60,000 | ||||
2025 | — | ||||
2026 and thereafter | — | ||||
Total | $ | 120,000 |
June 30, 2021 | September 30, 2020 | ||||||||||||||||
Common
Shares |
Weighted-Average Grant Date Fair Value |
Common
Shares |
Weighted-Average Grant Date Fair Value | ||||||||||||||
Restricted Shares | |||||||||||||||||
Restricted shares, beginning of fiscal year | 249,180 | $ | 32.89 | 190,805 | $ | 37.20 | |||||||||||
Granted | 180,125 | 18.92 | 147,282 | 30.68 | |||||||||||||
Vested | (94,247) | 33.42 | (84,316) | 38.60 | |||||||||||||
Forfeited | (4,388) | 26.90 | (4,591) | 36.18 | |||||||||||||
Canceled | — | — | — | — | |||||||||||||
Restricted shares, end of period | 330,670 | $ | 25.21 | 249,180 | $ | 32.89 | |||||||||||
Vested, but not issuable at end of period | 87,324 | $ | 29.32 | 62,992 | $ | 33.98 | |||||||||||
Performance Shares | |||||||||||||||||
Performance shares, beginning of fiscal year | 175,740 | $ | 33.56 | 173,332 | $ | 38.50 | |||||||||||
Granted | 106,000 | 18.87 | 62,278 | 40.15 | |||||||||||||
Vested | (25,452) | 41.07 | (54,861) | 39.43 | |||||||||||||
Forfeited | (5,242) | 28.85 | (5,009) | 37.90 | |||||||||||||
Canceled | — | — | — | — | |||||||||||||
Performance shares, end of period | 251,046 | $ | 25.08 | 175,740 | $ | 33.56 | |||||||||||
Vested, but not issuable at end of period | 5,612 | $ | 18.00 | 5,612 | $ | 18.00 |
Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
As of June 30, 2021 | |||||||||||||||||||||||
Other repossessed property | $ | 5,786 | $ | — | $ | — | $ | 5,786 | |||||||||||||||
Impaired loans | 187,903 | — | — | 187,903 | |||||||||||||||||||
Mortgage loans held for sale, at lower of cost or fair value | 1,377 | — | 1,377 | — | |||||||||||||||||||
Property held for sale | 600 | — | — | 600 | |||||||||||||||||||
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 |
Fair Value of Assets / (Liabilities) at June 30, 2021 |
Valuation
Technique(s) |
Unobservable
Input |
Range |
Weighted
Average |
|||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Other repossessed property | $ | 5,786 | Appraisal value | Collateral specific adjustment | N/A | N/A | |||||||||||||||||||||||
Impaired loans | 187,903 | Appraisal value | Collateral specific adjustment | N/A | N/A | ||||||||||||||||||||||||
Property held for sale | 600 | Appraisal value | Collateral specific adjustment | N/A | N/A |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||
Net income (loss) | $ | 58,749 | $ | 5,400 | $ | 151,367 | $ | (691,944) | |||||||||
Weighted average common shares outstanding | 55,207,008 | 55,082,621 | 55,175,567 | 55,788,751 | |||||||||||||
Dilutive effect of stock based compensation | 317,971 | 62,998 | 234,006 | — | |||||||||||||
Weighted average common shares outstanding for diluted earnings per share calculation | 55,524,979 | 55,145,619 | 55,409,573 | 55,788,751 | |||||||||||||
Basic earnings per share | $ | 1.06 | $ | 0.10 | $ | 2.74 | $ | (12.40) | |||||||||
Diluted earnings per share | $ | 1.06 | $ | 0.10 | $ | 2.74 | $ | (12.40) |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands, except share and per share amounts) | |||||||||||||||||
Operating Data: | |||||||||||||||||
Interest income (FTE) | $ | 104,219 | $ | 121,472 | $ | 331,988 | $ | 381,289 | |||||||||
Interest expense | 5,161 | 13,620 | 18,977 | 63,244 | |||||||||||||
Noninterest income (loss) | 19,371 | (11,683) | 50,712 | 3,967 | |||||||||||||
Noninterest expense | 60,505 | 67,049 | 177,057 | 932,432 | |||||||||||||
(Reversal of) provision for credit losses ³ | (20,699) | 21,641 | (13,800) | 101,539 | |||||||||||||
Net income (loss) | 58,749 | 5,400 | 151,367 | (691,944) | |||||||||||||
Adjusted net income ¹ | 58,749 | 5,400 | 151,367 | 77,754 | |||||||||||||
Common shares outstanding | 55,116,095 | 55,014,047 | 55,116,095 | 55,014,047 | |||||||||||||
Weighted average diluted common shares outstanding | 55,524,979 | 55,145,619 | 55,409,573 | 55,788,751 | |||||||||||||
Earnings per common share - diluted | $ | 1.06 | $ | 0.10 | $ | 2.74 | $ | (12.40) | |||||||||
Adjusted earnings per common share - diluted ¹ | 1.06 | 0.10 | 2.74 | 1.39 | |||||||||||||
Performance Ratios: | |||||||||||||||||
Net interest margin (FTE) ¹ ² | 3.23 | % | 3.57 | % | 3.46 | % | 3.61 | % | |||||||||
Adjusted net interest margin (FTE) ¹ ² | 3.13 | % | 3.47 | % | 3.35 | % | 3.55 | % | |||||||||
Return on average total assets ² | 1.81 | % | 0.17 | % | 1.59 | % | (7.22) | % | |||||||||
Return on average common equity ² | 21.2 | % | 1.9 | % | 18.7 | % | (55.6) | % | |||||||||
Return on average tangible common equity ¹ ² | 21.4 | % | 2.0 | % | 18.9 | % | 2.5 | % | |||||||||
Efficiency ratio ¹ | 50.9 | % | 69.4 | % | 48.5 | % | 58.7 | % | |||||||||
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, including a reconciliation to the most directly comparable GAAP financial measure, see "—Non-GAAP Financial Measures" section.
|
|||||||||||||||||
2 Annualized for all partial-year periods.
|
|||||||||||||||||
3 Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, this line represented the provision for loan and lease losses under the incurred model.
|
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Net interest income: | |||||||||||||||||
Total interest income (FTE) | $ | 104,219 | $ | 121,472 | $ | 331,988 | $ | 381,289 | |||||||||
Less: Total interest expense | 5,161 | 13,620 | 18,977 | 63,244 | |||||||||||||
Net interest income (FTE) | $ | 99,058 | $ | 107,852 | $ | 313,011 | $ | 318,045 | |||||||||
Net interest margin (FTE) and adjusted net interest margin (FTE) ¹ | |||||||||||||||||
Average interest-earning assets | $ | 12,299,046 | $ | 12,156,505 | $ | 12,112,699 | $ | 11,763,523 | |||||||||
Average interest-bearing liabilities | 11,864,829 | 11,493,387 | 11,622,695 | 11,049,204 | |||||||||||||
Net interest margin (FTE) | 3.23 | % | 3.57 | % | 3.46 | % | 3.61 | % | |||||||||
Adjusted net interest margin (FTE) ¹ | 3.13 | % | 3.47 | % | 3.35 | % | 3.55 | % | |||||||||
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, including a reconciliation to the most directly comparable GAAP financial measure, see "—Non-GAAP Financial Measures" section.
|
Nine Months Ended | |||||||||||||||||||||||
June 30, 2021 | June 30, 2020 | ||||||||||||||||||||||
Average Balance | Interest (FTE) | Yield / Cost ¹ | Average Balance | Interest (FTE) | Yield / Cost ¹ | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Interest-bearing bank deposits ² | $ | 889,362 | $ | 622 | 0.09 | % | $ | 78,164 | $ | 1,278 | 2.18 | % | |||||||||||
Other interest-earning assets | 71,085 | 592 | 1.11 | % | — | — | — | % | |||||||||||||||
Investment securities | 2,123,979 | 25,079 | 1.58 | % | 1,959,681 | 33,359 | 2.27 | % | |||||||||||||||
Non-ASC 310-30 loans, net ³ | 9,028,273 | 305,695 | 4.53 | % | 9,675,039 | 342,042 | 4.72 | % | |||||||||||||||
ASC 310-30 loans, net ⁴ | — | — | — | % | 50,639 | 4,610 | 12.16 | % | |||||||||||||||
Loans, net | 9,028,273 | 305,695 | 4.53 | % | 9,725,678 | 346,652 | 4.76 | % | |||||||||||||||
Total interest-earning assets | 12,112,699 | 331,988 | 3.66 | % | 11,763,523 | 381,289 | 4.33 | % | |||||||||||||||
Noninterest-earning assets | 653,353 | 1,046,576 | |||||||||||||||||||||
Total assets | $ | 12,766,052 | $ | 331,988 | 3.48 | % | $ | 12,810,099 | $ | 381,289 | 3.98 | % | |||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||
Noninterest-bearing deposits | $ | 2,746,884 | $ | 2,111,445 | |||||||||||||||||||
Interest-bearing deposits | 7,554,204 | $ | 9,780 | 0.17 | % | 6,585,100 | $ | 31,060 | 0.63 | % | |||||||||||||
Time deposits | 1,018,492 | 4,196 | 0.55 | % | 1,655,059 | 19,758 | 1.59 | % | |||||||||||||||
Total deposits | 11,319,580 | 13,976 | 0.17 | % | 10,351,604 | 50,818 | 0.66 | % | |||||||||||||||
Securities sold under agreements to repurchase | 74,235 | 45 | 0.08 | % | 62,513 | 70 | 0.15 | % | |||||||||||||||
FHLB advances and other borrowings | 120,000 | 2,558 | 2.85 | % | 526,372 | 8,737 | 2.22 | % | |||||||||||||||
Subordinated debentures and subordinated notes payable | 108,880 | 2,398 | 2.94 | % | 108,715 | 3,619 | 4.45 | % | |||||||||||||||
Total borrowings | 303,115 | 5,001 | 2.21 | % | 697,600 | 12,426 | 2.38 | % | |||||||||||||||
Total interest-bearing liabilities | 11,622,695 | $ | 18,977 | 0.22 | % | 11,049,204 | $ | 63,244 | 0.76 | % | |||||||||||||
Noninterest-bearing liabilities | 61,605 | 97,475 | |||||||||||||||||||||
Stockholders' equity | 1,081,752 | 1,663,420 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 12,766,052 | $ | 12,810,099 | |||||||||||||||||||
Net interest spread | 3.26 | % | 3.22 | % | |||||||||||||||||||
Net interest income and net interest margin (FTE) | $ | 313,011 | 3.46 | % | $ | 318,045 | 3.61 | % | |||||||||||||||
Less: Tax equivalent adjustment | 4,770 | 4,638 | |||||||||||||||||||||
Net interest income and net interest margin - ties to Statements of Comprehensive Income | $ | 308,241 | 3.40 | % | $ | 313,407 | 3.56 | % | |||||||||||||||
¹ Annualized for all partial-year periods. | |||||||||||||||||||||||
2 Interest income includes $0.8 million for the first nine months of fiscal year 2020 resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets. For the first nine months of fiscal year 2021, all amounts were included in other interest-earning assets.
|
|||||||||||||||||||||||
3 Interest income includes $0.0 million and $1.2 million for the first nine months of fiscal years 2021 and 2020, respectively, resulting from accretion of purchase accounting discount associated with acquired loans.
|
|||||||||||||||||||||||
4 Beginning in the first quarter of fiscal year 2021, ASC 310-30 loans began being reported with non-ASC 310-30 loans. Upon adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, discounts on ASC 310-30 loans related to noncredit factors accreted to interest income were immaterial.
|
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Loans (FTE) | $ | 94,923 | $ | 110,828 | $ | 305,695 | $ | 346,652 | |||||||||
Investment securities | 8,642 | 10,532 | 25,079 | 33,359 | |||||||||||||
Federal funds sold and other | 654 | 112 | 1,214 | 1,278 | |||||||||||||
Total interest income (FTE) | 104,219 | 121,472 | 331,988 | 381,289 | |||||||||||||
Less: Tax equivalent adjustment | 1,595 | 1,601 | 4,770 | 4,638 | |||||||||||||
Total interest income (GAAP) | $ | 102,624 | $ | 119,871 | $ | 327,218 | $ | 376,651 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest expense | |||||||||||||||||
Deposits | $ | 3,505 | $ | 10,011 | $ | 13,976 | $ | 50,818 | |||||||||
FHLB advances and other borrowings | 867 | 2,539 | 2,603 | 8,807 | |||||||||||||
Subordinated debentures and subordinated notes payable | 789 | 1,070 | 2,398 | 3,619 | |||||||||||||
Total interest expense | $ | 5,161 | $ | 13,620 | $ | 18,977 | $ | 63,244 |
Current Quarter vs Comparable Quarter | Current 9 month period vs Comparable 9 month period | ||||||||||||||||||||||
Volume | Rate | Total | Volume | Rate | Total | ||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 273 | $ | — | $ | 273 | $ | 820 | $ | (573) | $ | 247 | |||||||||||
Other interest earning assets | 250 | 19 | 269 | 563 | (874) | (311) | |||||||||||||||||
Investment securities | 1,734 | (3,624) | (1,890) | 3,151 | (11,431) | (8,280) | |||||||||||||||||
Loans | (16,998) | 1,093 | (15,905) | (24,835) | (16,122) | (40,957) | |||||||||||||||||
Total decrease | (14,741) | (2,512) | (17,253) | (20,301) | (29,000) | (49,301) | |||||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||||||||
Interest-bearing deposits | 620 | (3,606) | (2,986) | 4,006 | (25,286) | (21,280) | |||||||||||||||||
Time deposits | (1,311) | (2,209) | (3,520) | (5,765) | (9,797) | (15,562) | |||||||||||||||||
Securities sold under agreements to repurchase | 2 | (3) | (1) | 11 | (36) | (25) | |||||||||||||||||
FHLB advances and other borrowings | (2,427) | 756 | (1,671) | (8,169) | 1,990 | (6,179) | |||||||||||||||||
Subordinated debentures and subordinated notes payable | 1 | (282) | (281) | 5 | (1,226) | (1,221) | |||||||||||||||||
Total decrease | (3,115) | (5,344) | (8,459) | (9,912) | (34,355) | (44,267) | |||||||||||||||||
(Decrease) increase in net interest income (FTE) | $ | (11,626) | $ | 2,832 | $ | (8,794) | $ | (10,389) | $ | 5,355 | $ | (5,034) |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Noninterest income | |||||||||||||||||
Service charges and other fees | $ | 9,005 | $ | 7,731 | $ | 27,228 | $ | 28,328 | |||||||||
Wealth management fees | 3,477 | 2,773 | 9,688 | 8,859 | |||||||||||||
Mortgage banking income, net | 2,157 | 2,422 | 9,937 | 5,179 | |||||||||||||
Net gain on sale of securities and other assets | — | — | 247 | — | |||||||||||||
Other | 2,209 | 1,190 | 5,141 | 3,490 | |||||||||||||
Subtotal, service and product fees | 16,848 | 14,116 | 52,241 | 45,856 | |||||||||||||
Derivative interest expense | (3,117) | (3,040) | (9,692) | (5,181) | |||||||||||||
Change in fair value of FVO loans and related derivatives | 4,110 | (25,001) | 2,480 | (37,658) | |||||||||||||
Other derivative income (loss) | 1,530 | 2,242 | 5,683 | 950 | |||||||||||||
Subtotal, changes in fair value for loans at fair value and derivatives | 2,523 | (25,799) | (1,529) | (41,889) | |||||||||||||
Total noninterest income (loss) | $ | 19,371 | $ | (11,683) | $ | 50,712 | $ | 3,967 |
Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Noninterest expense | |||||||||||||||||
Salaries and employee benefits | $ | 40,239 | $ | 39,042 | $ | 116,918 | $ | 112,259 | |||||||||
Data processing and communication | 7,054 | 5,817 | 19,825 | 17,713 | |||||||||||||
Occupancy and equipment | 5,105 | 5,251 | 15,829 | 15,941 | |||||||||||||
Professional fees | 4,644 | 7,382 | 12,293 | 16,409 | |||||||||||||
Advertising | 602 | 750 | 1,635 | 2,573 | |||||||||||||
Net (gain) loss on repossessed property and other related expenses | (760) | 2,475 | (469) | 8,508 | |||||||||||||
Goodwill and intangible assets impairment | — | — | — | 742,352 | |||||||||||||
Other ¹ | 3,621 | 6,332 | 11,026 | 16,677 | |||||||||||||
Total noninterest expense | $ | 60,505 | $ | 67,049 | $ | 177,057 | $ | 932,432 |
As of June 30,
2021 |
As of September 30,
2020 |
||||||||||
(dollars in thousands) | |||||||||||
Balance Sheet and Other Information: | |||||||||||
Total assets | $ | 13,070,229 | $ | 12,604,439 | |||||||
Loans ¹ | 8,477,783 | 10,076,142 | |||||||||
Allowance for credit losses ⁴ | 270,298 | 149,887 | |||||||||
Deposits | 11,537,777 | 11,008,779 | |||||||||
Stockholders' equity | 1,161,069 | 1,162,933 | |||||||||
Tangible common equity ² | 1,155,679 | 1,156,769 | |||||||||
Tier 1 capital ratio | 14.5 | % | 11.8 | % | |||||||
Total capital ratio | 16.0 | % | 13.3 | % | |||||||
Tier 1 leverage ratio | 10.1 | % | 9.4 | % | |||||||
Common equity tier 1 ratio | 13.7 | % | 11.0 | % | |||||||
Tangible common equity / tangible assets ² | 8.8 | % | 9.2 | % | |||||||
Book value per share - GAAP | $ | 21.07 | $ | 21.14 | |||||||
Tangible book value per share ² | $ | 20.97 | $ | 21.03 | |||||||
Nonaccrual loans / total loans | 2.48 | % | 3.22 | % | |||||||
Net charge-offs (recoveries) / average total loans ³ | 0.62 | % | 0.40 | % | |||||||
Allowance for credit losses ⁴ / total loans | 3.19 | % | 1.49 | % | |||||||
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.
|
|||||||||||
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, including a reconciliation to the most directly comparable GAAP financial measure, see "—Non-GAAP Financial Measures" section.
|
|||||||||||
3 Annualized for partial-year periods, except for September 30, 2020, which was for the twelve month period.
|
|||||||||||
4 Prior to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, on October 1, 2020, this line represented the allowance for loan and lease losses under the incurred loss model.
|
June 30,
2021 |
September 30,
2020 1
|
||||||||||
(dollars in thousands) | |||||||||||
Construction and development | $ | 433,293 | $ | 509,644 | |||||||
Owner-occupied CRE | 1,318,196 | 1,417,394 | |||||||||
Non-owner-occupied CRE | 2,244,335 | 2,894,380 | |||||||||
Multifamily residential real estate | 592,544 | 533,983 | |||||||||
Total commercial real estate | 4,588,368 | 5,355,401 | |||||||||
Agriculture | 1,438,499 | 1,722,696 | |||||||||
Commercial non-real estate | 1,710,938 | 2,165,038 | |||||||||
Residential real estate ³ | 631,688 | 730,812 | |||||||||
Consumer and other ² | 108,290 | 102,195 | |||||||||
Total loans | 8,477,783 | 10,076,142 | |||||||||
Allowance for credit losses | (270,298) | (149,887) | |||||||||
Loans, net | $ | 8,207,485 | $ | 9,926,255 | |||||||
1 As a part of the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent related ASUs, loan segments are presented based on amortized cost, which includes unpaid principal balance, unamortized discount on acquired loans, unearned net deferred fees and costs and loans in process. For additional information on September 30, 2020 loan segment balances, see Note 2.
|
|||||||||||
2 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts, and loans in process.
|
June 30, 2021 | |||||
(dollars in thousands) | |||||
Construction and development | $ | 433,293 | |||
Owner-occupied CRE | 1,318,196 | ||||
Non-owner-occupied CRE | 2,244,335 | ||||
Multifamily residential real estate | 592,544 | ||||
Total commercial real estate | 4,588,368 | ||||
Agriculture real estate | 680,975 | ||||
Agriculture operating loans | 757,524 | ||||
Total agriculture | 1,438,499 | ||||
Commercial non-real estate | 1,710,938 | ||||
Home equity lines of credit | 104,516 | ||||
Closed end first lien | 502,193 | ||||
Closed end junior lien | 24,979 | ||||
Total residential real estate | 631,688 | ||||
Consumer and other | 108,290 | ||||
Total | $ | 8,477,783 |
June 30, 2021 | |||||||||||||||||||||||
1 Year or Less | >1 Through 5 Years | >5 Years | Total | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Maturity distribution: | |||||||||||||||||||||||
Construction and development | $ | 180,706 | $ | 204,599 | $ | 47,988 | $ | 433,293 | |||||||||||||||
Owner-occupied CRE | 78,438 | 505,523 | 734,235 | 1,318,196 | |||||||||||||||||||
Non-owner-occupied CRE | 190,434 | 938,342 | 1,115,559 | 2,244,335 | |||||||||||||||||||
Multifamily residential real estate | 116,272 | 234,066 | 242,206 | 592,544 | |||||||||||||||||||
Total commercial real estate | 565,850 | 1,882,530 | 2,139,988 | 4,588,368 | |||||||||||||||||||
Agriculture | 682,936 | 438,573 | 316,990 | 1,438,499 | |||||||||||||||||||
Commercial non-real estate | 635,245 | 711,607 | 364,086 | 1,710,938 | |||||||||||||||||||
Residential real estate | 40,435 | 130,295 | 460,958 | 631,688 | |||||||||||||||||||
Consumer and other | 7,292 | 74,690 | 26,308 | 108,290 | |||||||||||||||||||
Total | $ | 1,931,758 | $ | 3,237,695 | $ | 3,308,330 | $ | 8,477,783 |
June 30, 2021 | |||||||||||||||||
Fixed | Variable | Total | |||||||||||||||
(dollars in thousands) | |||||||||||||||||
Maturity distribution: | |||||||||||||||||
Construction and development | $ | 52,425 | $ | 200,162 | $ | 252,587 | |||||||||||
Owner-occupied CRE | 739,814 | 499,944 | 1,239,758 | ||||||||||||||
Non-owner-occupied CRE | 909,655 | 1,144,246 | 2,053,901 | ||||||||||||||
Multifamily residential real estate | 218,879 | 257,393 | 476,272 | ||||||||||||||
Total commercial real estate | 1,920,773 | 2,101,745 | 4,022,518 | ||||||||||||||
Agriculture | 569,769 | 185,794 | 755,563 | ||||||||||||||
Commercial non-real estate | 715,092 | 360,601 | 1,075,693 | ||||||||||||||
Residential real estate | 308,056 | 283,197 | 591,253 | ||||||||||||||
Consumer and other | 42,139 | 58,859 | 100,998 | ||||||||||||||
Total | $ | 3,555,829 | $ | 2,990,196 | $ | 6,546,025 |
Three Months Ended June 30, 2021 | Nine Months Ended June 30, 2021 | ||||||||||
(dollars in thousands) | |||||||||||
Balance, beginning of period | $ | 17,529 | $ | 20,034 | |||||||
Additions to other repossessed property | 3,151 | 4,029 | |||||||||
Valuation adjustments and other | (241) | (714) | |||||||||
Sales | (8,941) | (11,851) | |||||||||
Balance, end of period | $ | 11,498 | $ | 11,498 |
June 30,
2021 |
September 30,
2020 |
||||||||||
(dollars in thousands) | |||||||||||
Securities available for sale | |||||||||||
U.S. Treasury securities | $ | 99,047 | $ | 49,924 | |||||||
U.S. Agency securities | 24,976 | 24,974 | |||||||||
Mortgage-backed securities: | |||||||||||
Government National Mortgage Association | 312,811 | 485,689 | |||||||||
Federal Home Loan Mortgage Corporation | 977,156 | 578,650 | |||||||||
Federal National Mortgage Association | 439,752 | 287,842 | |||||||||
Small Business Assistance Program | 232,089 | 244,653 | |||||||||
States and political subdivision securities | 47,287 | 54,224 | |||||||||
Corporate debt securities | 28,000 | — | |||||||||
Other | 1,006 | 1,006 | |||||||||
Total | $ | 2,162,124 | $ | 1,726,962 | |||||||
Securities held to maturity | |||||||||||
U.S. Treasury securities | $ | 13,666 | $ | — | |||||||
Mortgage-backed securities: | |||||||||||
Government National Mortgage Association | 45,964 | — | |||||||||
Federal Home Loan Mortgage Corporation | 53,616 | — | |||||||||
Federal National Mortgage Association | 46,408 | — | |||||||||
Small Business Assistance Program | 39,341 | — | |||||||||
States and political subdivision securities | 3,450 | — | |||||||||
Total | $ | 202,445 | $ | — |
June 30, 2021 | September 30, 2020 | ||||||||||||||||
Amount | Weighted Avg. Cost | Amount | Weighted Avg. Cost | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Noninterest-bearing demand | $ | 2,958,488 | — | % | $ | 2,586,743 | — | % | |||||||||
Interest-bearing demand | 7,782,104 | 0.13 | % | 7,139,058 | 0.26 | % | |||||||||||
Time deposits, greater than $250,000 | 183,820 | 0.70 | % | 352,913 | 1.12 | % | |||||||||||
Time deposits, less than or equal to $250,000 | 613,365 | 0.32 | % | 930,065 | 0.75 | % | |||||||||||
Total | $ | 11,537,777 | 0.12 | % | $ | 11,008,779 | 0.27 | % |
June 30,
2021 |
September 30,
2020 |
||||||||||
(dollars in thousands) | |||||||||||
South Dakota / Minnesota / North Dakota | $ | 2,978,809 | $ | 2,870,119 | |||||||
Iowa / Missouri | 3,446,128 | 3,184,321 | |||||||||
Nebraska / Kansas | 3,009,231 | 2,833,921 | |||||||||
Arizona | 652,397 | 590,567 | |||||||||
Colorado | 1,380,128 | 1,300,351 | |||||||||
Specialized Assets | 19,770 | — | |||||||||
Other | 51,314 | 229,500 | |||||||||
Total deposits | $ | 11,537,777 | $ | 11,008,779 |
June 30, 2021 | |||||||||||
Greater than $250,000 | Less than or equal to $250,000 | ||||||||||
(dollars in thousands) | |||||||||||
Remaining maturity: | |||||||||||
Three months or less | $ | 51,972 | $ | 157,487 | |||||||
Over three through six months | 44,936 | 143,720 | |||||||||
Over six through twelve months | 59,025 | 186,230 | |||||||||
Over twelve months | 27,887 | 125,928 | |||||||||
Total | $ | 183,820 | $ | 613,365 | |||||||
Percent of total deposits | 1.6 | % | 5.3 | % |
At and for the Nine Months Ended June 30, 2021 | At and for the Fiscal Year Ended September 30, 2020 | ||||||||||
(dollars in thousands) | |||||||||||
Short-term borrowings: | |||||||||||
Securities sold under agreements to repurchase | $ | 80,167 | $ | 65,506 | |||||||
Other short-term borrowings | — | 75,000 | |||||||||
Total short-term borrowings | $ | 80,167 | $ | 140,506 | |||||||
Maximum amount outstanding at any month-end during the period | $ | 80,355 | $ | 539,809 | |||||||
Average amount outstanding during the period | 74,235 | 218,340 | |||||||||
Weighted average rate for the period | 0.08 | % | 0.75 | % | |||||||
Weighted average rate as of date indicated | 0.08 | % | 0.09 | % |
June 30, 2021 | |||||||||||||||||||||||||||||||||||
Less Than 1 Year | 1 to 2 Years | 2 to 5 Years | >5 Years | Not Determined | Total | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Contractual Obligations: | |||||||||||||||||||||||||||||||||||
Customer deposits | $ | 613,294 | $ | 100,233 | $ | 52,059 | $ | 1,523 | $ | 10,770,668 | $ | 11,537,777 | |||||||||||||||||||||||
Securities sold under agreement to repurchase | 80,167 | — | — | — | — | 80,167 | |||||||||||||||||||||||||||||
FHLB advances and other borrowings | — | 30,000 | 90,000 | — | — | 120,000 | |||||||||||||||||||||||||||||
Subordinated debentures | — | — | — | 75,920 | — | 75,920 | |||||||||||||||||||||||||||||
Subordinated notes payable | — | — | 35,000 | — | — | 35,000 | |||||||||||||||||||||||||||||
Accrued interest payable | 1,773 | — | — | — | — | 1,773 | |||||||||||||||||||||||||||||
Interest on FHLB advances | 3,372 | 2,742 | 1,839 | — | — | 7,953 | |||||||||||||||||||||||||||||
Interest on subordinated debentures | 1,787 | 1,787 | 5,361 | 14,776 | — | 23,711 | |||||||||||||||||||||||||||||
Interest on subordinated notes payable | 1,157 | 1,157 | 2,459 | — | — | 4,773 | |||||||||||||||||||||||||||||
Other Commitments: | |||||||||||||||||||||||||||||||||||
Commitments to extend credit—non-credit card | $ | 1,406,527 | $ | 225,981 | $ | 253,783 | $ | 216,852 | $ | — | $ | 2,103,143 | |||||||||||||||||||||||
Commitments to extend credit—credit card | 128,174 | — | — | — | — | 128,174 | |||||||||||||||||||||||||||||
Letters of credit | 52,870 | — | — | — | — | 52,870 |
June 30,
2021 |
September 30,
2020 |
||||||||||
(dollars in thousands) | |||||||||||
Commitments to extend credit | $ | 2,231,317 | $ | 2,138,138 | |||||||
Letters of credit | 52,870 | 65,707 | |||||||||
Total | $ | 2,284,187 | $ | 2,203,845 |
At or for the nine months ended: | At or for the three months ended: | |||||||||||||||||||||||||
June 30,
2021 |
June 30,
2020 |
June 30,
2021 |
March 31,
2021 |
December 31,
2020 |
September 30,
2020 |
June 30,
2020 |
||||||||||||||||||||
(Dollars in thousands except share and per share amounts)
|
||||||||||||||||||||||||||
Tangible book value per share: | ||||||||||||||||||||||||||
Total stockholders' equity | $ | 1,161,069 | $ | 1,160,644 | $ | 1,161,069 | $ | 1,093,919 | $ | 1,068,501 | $ | 1,162,933 | $ | 1,160,644 | ||||||||||||
Less: Goodwill and other intangible assets | 5,390 | 6,425 | 5,390 | 5,643 | 5,904 | 6,164 | 6,425 | |||||||||||||||||||
Tangible common equity | $ | 1,155,679 | $ | 1,154,219 | $ | 1,155,679 | $ | 1,088,276 | $ | 1,062,597 | $ | 1,156,769 | $ | 1,154,219 | ||||||||||||
Common shares outstanding | 55,116,095 | 55,014,047 | 55,116,095 | 55,111,403 | 55,105,105 | 55,014,189 | 55,014,047 | |||||||||||||||||||
Book value per share - GAAP | $ | 21.07 | $ | 21.10 | $ | 21.07 | $ | 19.85 | $ | 19.39 | $ | 21.14 | $ | 21.10 | ||||||||||||
Tangible book value per share | $ | 20.97 | $ | 20.98 | $ | 20.97 | $ | 19.75 | $ | 19.28 | $ | 21.03 | $ | 20.98 |
Estimated Increase (Decrease) in Annualized Adjusted Net Interest Income for the Quarter Ended June 30, 2021 | |||||||||||
Change in Market Interest Rates as of June 30, 2021 | Twelve Months Ending June 30, 2022 | Twelve Months Ending June 30, 2023 | |||||||||
Immediate Shifts | |||||||||||
+400 basis points | 20.70 | % | 28.20 | % | |||||||
+300 basis points | 15.60 | % | 21.60 | % | |||||||
+200 basis points | 10.40 | % | 14.70 | % | |||||||
+100 basis points | 5.40 | % | 7.80 | % | |||||||
-100 basis points | (3.70) | % | (8.30) | % | |||||||
Gradual Shifts | |||||||||||
+400 basis points | 5.90 | % | |||||||||
+300 basis points | 4.50 | % | |||||||||
+200 basis points | 3.10 | % | |||||||||
+100 basis points | 1.70 | % | |||||||||
-100 basis points | (1.70) | % | |||||||||
Exhibit Number | Description | ||||
Statement regarding Computation of Per Share Earnings (included as Note 15 to the registrant's unaudited consolidated financial statements) | |||||
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 | ||||
** Filed herewith | |||||
*** Furnished, not filed | |||||
Great Western Bancorp, Inc.
|
||||||||
Date: August 4, 2021 | By: |
/s/ Peter Chapman
|
||||||
Name: |
Peter Chapman
|
|||||||
Title: |
Chief Financial Officer and Executive Vice President
(Principal Financial Officer and Authorized Officer) |
Great Western Bancorp, Inc.
|
||||||||
Date: August 4, 2021 | By: | /s/ Mark Borrecco | ||||||
Name: | Mark Borrecco | |||||||
Title: | President and Chief Executive Officer |
Great Western Bancorp, Inc.
|
||||||||
Date: August 4, 2021 | By: | /s/ Peter Chapman | ||||||
Name: | Peter Chapman | |||||||
Title: | Chief Financial Officer and Executive Vice President |
Great Western Bancorp, Inc.
|
||||||||
Date: August 4, 2021 | By: | /s/ Mark Borrecco | ||||||
Name: | Mark Borrecco | |||||||
Title: | President and Chief Executive Officer |
Great Western Bancorp, Inc.
|
||||||||
Date: August 4, 2021 | By: | /s/ Peter Chapman | ||||||
Name: | Peter Chapman | |||||||
Title: | Chief Financial Officer and Executive Vice President |