Great Western Bancorp in Sioux Falls, S.D., reported higher quarterly profit on loan growth and improved efficiency.
In the $9.8 billion-asset company's fiscal fourth quarter, net income jumped 21.3% to $33.8 million, compared to a year ago. Earnings per share rose 25% to 60 cents.
Net interest income before the loan-loss provision grew 2.6% year-over-year, to $85.4 million. Total loans grew 7.4% to $7.3 billion. The net interest margin compressed 12 basis points to 3.98%.
Noninterest income rose 6.4% to $9 million. The results included a $28.8 million increase in the fair value of loans.
Noninterest expense dropped by 7.2% to $44.8 million, helped by a $2.2 million expense reduction, which reflects the difference in costs related to branch closures and the sale of closed branches. The efficiency ratio improved to 45.8%.