Oct. 25, 2019

Sioux Falls-based Great Western Bancorp has reported a 6 percent increase in its earnings for the 2019 fiscal year.

Net income was  $167.4 million, or $2.92 per share, compared with $171.5 million, or $2.67 per share, for fiscal 2018.

“Overall, we are pleased with the performance of the company for the 2019 fiscal year, with an increase in tangible book value per share over 10 percent for the year,” said Ken Karels, chairman, president and CEO. “I am confident that while asset-quality metrics have deteriorated through the latter half of 2019, the team has a good plan to manage these metrics during 2020.”

Great Western Bancorp, the holding company for Great Western Bank, saw its earnings drop more than 40 percent in its third quarter after issues with its dairy portfolio that the company said included customer fraud.

Net income was $50.3 million, or 89 cents per share, in the fourth quarter, compared with $26.8 million, or 47 cents per share, for the same time last year.

Total loans dropped $180.2 million, or 1.8 percent, for the quarter compared to the previous three months, while deposits increased $64.4 million, or less than 1 percent.

“We are pleased with how the company is positioned as the interest rate yield curve provides a more uncertain outlook into our fiscal 2020 year. We will continue to remain disciplined on loan pricing and structure to ensure we keep the bank safe,” Karels said. “During fiscal year 2020, we will look to improve our asset-quality metrics; if this results in lower balance sheet growth, we feel it is the right thing to do for the long-term perspective of the company.”

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