Great Western earnings up 9 percent for fiscal year despite down quarter

Oct. 25, 2018

Sioux Falls-based Great Western Bancorp Inc. reported earnings growth for fiscal 2018, despite a softer fourth quarter.

Net income for the year was $157.9 million, or $2.67 per share, compared with $144.8 million, or $2.45 per share, for the previous fiscal year. Adjusted net income, which excludes a nonrecurring charge to provision for income taxes, was $171.5 million, or $2.90 per diluted share, for the fiscal year ended Sept. 30, compared with $145.2 million, or $2.46 per diluted share.

Fourth-quarter earnings included net income of $42.3 million, or $0.72 per diluted share, compared with net income of $45.9 million, or $0.78 per diluted share, for the same period a year ago.

“Even though the fourth quarter did have softer loan growth and some nonrecurring items impacting net interest margin, I am pleased with our results for fiscal year 2018,” said Ken Karels, CEO and chairperson of the board.

“We were able to deliver significant year-over-year growth, including a 9.1 percent increase in net income, a 9 percent increase in diluted earnings per share and an 8.5 percent increase in tangible book value while maintaining a strong efficiency ratio.”

Total loans increased by $447.4 million, or 5 percent, to $9.42 billion, while total deposits grew by $755.9 million, or 8.4 percent, to $9.73 billion.

“We are glad to report another strong year of financial results to our stockholders, especially the growth in diluted earnings per share and tangible book value accretion,” Karels said. “While we have seen some pressure on our funding costs, we feel that this is manageable as we move into our fiscal 2019. We are positive about the talent we have recruited and the new locations opening in fiscal 2019.”

Because of robust activity in commercial real estate, Great Western Bank recently opened loan production offices in Cedar Rapids, Iowa; Wichita, Kan.; and Yuma, Ariz. In addition, a full-service retail branch opened in August in Cedar Falls, Iowa, and the bank will open a branch in December in North Scottsdale, Ariz.

Great Western has more than 170 branches in South Dakota, North Dakota, Minnesota, Iowa, Nebraska, Arizona, Colorado, Kansas and Missouri.

Great Western earnings up 9 percent for fiscal year despite down quarter

Sioux Falls-based Great Western Bancorp Inc. reported earnings growth for fiscal 2018, despite a softer fourth quarter.

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