Great Western Bancorp in Sioux Falls, S.D., reported lower profit in its first quarter since completing its initial public offering.
The $9.6 billion-asset company said in a press release Thursday that its net income fell 7% from a year earlier, to $26.7 million. Earnings 46 cents a share met the average estimate of analysts polled by Bloomberg.
Net interest income rose 4%, to $84.4 million. Total loans increased by 8%, to $7 billion, led by growth in commercial real estate and agriculture. The net interest margin compressed by 7 basis points, to 3.91%. The company recorded a $3.3 million loan-loss provision, compared to an $875,000 reserve release a year earlier.
Noninterest income fell 27%, to $7.9 million. The company recorded a net charge of $7.5 million tied to loans at fair value and the related derivatives used to manage the interest rate risk.
Noninterest expenses declined 2%, to $47.1 million, driven in part by a $2.4 million decline in the amortization of intangible assets.