Great Western shows earnings growth as it adjusts ag loans

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Sioux Falls-based Great Western Bancorp, Inc. has reported a nearly 15 percent increase in net income for its second quarter of 2017, which included some adjustments to its agriculture lending portfolio.

Net income was $35.2 million, or 60 cents per share, compared with $30.7 million, or 55 cents per share, for the same time last year.

Fiscal year-to-date net income of $72.1 million represents an increase of 17.9 percent compared with the same period in fiscal year 2016.

“We are proud to deliver another robust quarter of net income and are happy to announce an increase to our quarterly dividend which reflects our strong capital generation,” said Ken Karels, chairman, president and CEO. “We have made significant progress managing through the annual renewal process with many of our farm and ranch customers and continue to feel comfortable with that portion of our business.”

The bank made “significant progress” during the quarter managing through some its more challenging agriculture loans, he added.

“Which included recognizing charge-offs on a number of relationships with specific reserves that we had previously identified as problems,” Karels said. “We also managed a number of weaker agriculture relationships out of the bank, which we believe is best for the long-term health of the Company but also led to lower loan growth for the quarter. We are starting to see more activity in our loan pipeline and remain confident we can deliver mid-single-digit loan growth for the full year, which will be supported by the great deposit growth we delivered this quarter.”

Great Western has more than 170 branches in nine states.

 

Great Western shows earnings growth as it adjusts ag loans

Sioux Falls-based Great Western Bancorp, Inc. has reported a nearly 15 percent increase in net income for its second quarter of 2017, which included some adjustments to its agriculture lending portfolio.

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