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Section 1: 8-K (8-K)

gwb-20200128
0001613665false00016136652020-01-282020-01-28

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2020

GREAT WESTERN BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
(State or Other Jurisdiction of Incorporation)
001-3668847-1308512
(Commission File Number)(IRS Employer
Identification Number)
225 South Main Avenue57104
Sioux Falls,South Dakota
(Address of principal executive offices)(Zip Code)
(605) 334-2548
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per share
GWBNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).    Emerging growth company  
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.  Results of Operations and Financial Condition.

On January 28, 2020, Great Western Bancorp, Inc. ("Great Western" and, together with its consolidated subsidiaries, the “Company”) announced its earnings for the first fiscal quarter ended December 31, 2019. A copy of Great Western's press release containing this information is attached as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.

Item 7.01. Regulation FD Disclosure.

A copy of the slide presentation relating to the Company’s earnings results for use on the conference call being held for investors and analysts is being furnished as Exhibit 99.2 to this report on Form 8-K and is incorporated herein by reference.

The Company is also furnishing via this report on Form 8-K a copy of its Quarterly Investor Relations Presentation which includes financial data as of and for the three months ended December 31, 2019. The Company intends to use this presentation for any investor meetings or related interactions through the second quarter of fiscal year 2020. A copy of the presentation will also be available in the Investor Relations section of the Company’s website, www.greatwesternbank.com. A copy of the presentation is furnished as Exhibit 99.3 to this Form 8-K and is incorporated herein by reference.
Item 9.01.  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.Description
99.1  Press release of Great Western dated January 28, 2020, containing financial information for the quarter ended December 31, 2019.
99.2  
Slide presentation for conference call for investors and analysts on January 28, 2020.
99.3  Quarterly Investor Relations Presentation for the first quarter of fiscal year 2020.

All information provided in this report on Form 8-K, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities under that Section, and shall not be deemed to be incorporated by reference into any filing of Great Western under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such a filing.




Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be filed on its behalf by the undersigned hereunto duly authorized.


GREAT WESTERN BANCORP, INC.
Date: January 28, 2020
By:   /s/ Peter Chapman
Name:   Peter Chapman 
Title:   Chief Financial Officer and Executive Vice President





INDEX TO EXHIBITS


Exhibit No.Description
Press release of the registrant dated January 28, 2020, containing financial information for the quarter ended December 31, 2019.
Slide presentation for conference call for investors and analysts on January 28, 2020.
Quarterly Investor Relations Presentation for the first quarter of fiscal year 2020.

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Section 2: EX-99.1 (EX-99.1)

Document
Exhibit 99.1
402468915_image11.jpg
Great Western Bancorp, Inc. Announces Earnings of $43.3 Million for First Quarter Fiscal Year 2020 and Dividends of $0.30 Per Share
Highlights for the First Quarter of Fiscal Year 2020 (all quarterly comparisons in this document refer to the fourth quarter of fiscal year 2019, except as noted)
Net income was $43.3 million, or $0.77 per diluted share, compared to $50.3 million, or $0.89 per diluted share
Net interest margin decreased 2 basis points to 3.68% while adjusted net interest margin1, 2 decreased 4 basis points to 3.65%
Expense control remained strong with an efficiency ratio1 of 46.2%
Total loans were $9.63 billion, a decline of $80.5 million, or 0.8%
Total deposits were $10.09 billion, a decrease of $211.8 million, or 2.1%
Net charge-offs recognized were 0.25% of average total loans on an annualized basis, down from 0.31% of average total loans on an annualized basis, while other key asset quality metrics including nonaccrual loans, watch loans, substandard loans and other repossessed property deteriorated during the quarter due to downgrades on a small number of agriculture and agriculture-related exposures
The Company's Board of Directors declared a quarterly dividend of $0.30 per share
Sioux Falls, SD - January 28, 2020 - Great Western Bancorp, Inc. (NYSE: GWB) today reported net income of $43.3 million, or $0.77 per diluted share, for the first quarter of fiscal year 2020, compared to net income of $50.3 million, or $0.89 per diluted share, for the fourth quarter of fiscal year 2019.
"We are pleased with the start to our 2020 fiscal year with good earnings underpinned by us managing the cost of our deposits and expenses well," said Ken Karels, Chairperson of the Board, President and Chief Executive Officer. "While we have seen substandard loan balances increase through the quarter due to the migration of a small number of individual exposures, we feel comfortable with our strategies of working with customers to rehabilitate or exit many of these relationships."
Net Interest Income and Net Interest Margin2
Net interest income was $106.7 million, a decrease of $1.5 million, or 1.4%. The decrease was due to lower loan interest income as a result of a decrease in average loans outstanding, combined with a $2.0 million net reversal of interest income on loans moved to nonaccrual during the quarter, partially offset by a 20 basis point decrease in the cost of deposits.
Net interest margin was 3.68% and 3.70% for the quarters ended December 31, 2019 and September 30, 2019, respectively. Adjusted net interest margin1, which adjusts for the realized gain (loss) on interest rate swaps, was 3.65% and 3.69%, respectively, for the same periods. The lower margins were primarily driven by the yield on loans, which included a 7 basis point reduction in net interest margin due to the net reversal of interest income noted above, partially offset by a 20 basis point decrease in the cost of deposits to 0.86%.
Total loans outstanding were $9.63 billion as of December 31, 2019, a decrease of $80.5 million, or 0.8%. The decline in loans during the quarter was mainly attributable to the commercial non-real estate segment of the portfolio, which decreased by $43.5 million, or 2.5%, due to disbursement transaction timing within our mortgage warehouse lending, a reduction in the agriculture segment of $28.0 million, or 1.4%, primarily due to the workout of a small number of large relationships and a decrease of $7.7 million, or 0.2%, in CRE impacted by a number of loans refinancing with other institutions due to lower rates.
Total deposits were $10.09 billion as of December 31, 2019, a decrease of $211.8 million, or 2.1%, due to a reduction in the use of brokered deposits offset by increases in both consumer and business deposits. Interest-bearing deposits were $8.06 billion, a 3.4% decrease, and noninterest-bearing deposits were $2.03 billion, a 3.8% increase. FHLB and other borrowings increased by $235.0 million, or 69.1%, due to favorable rates making them a more cost-effective source of funding.
Provision for Loan and Lease Losses and Asset Quality
Provision for loan and lease losses was $8.1 million, an increase of $6.1 million. Net charge-offs were $6.1 million, or 0.25% of average total loans on an annualized basis, with the majority of net charge-offs concentrated in the agriculture and commercial non-real estate segments of the loan portfolio. The ratio of allowance for loan and lease losses ("ALLL") to total loans increased to 0.76% as of December 31, 2019 from 0.73% as of September 30, 2019.
————————————————————————————————————————————————————
1 This is a non-GAAP financial measure management believes is helpful to understanding trends in the business that may not be fully apparent based only on the most comparable GAAP financial measure. Further information on this financial measure and a reconciliation to the most comparable GAAP financial measure is provided at the end of this release.
2 All references to net interest income and net interest margin are presented on a fully-tax equivalent basis unless otherwise noted.
1-

Exhibit 99.1
Included within total loans are approximately $772.2 million of loans for which management has elected the fair value option. These loans are excluded from the ALLL process, but management has estimated that approximately $6.2 million of the fair value adjustment for these loans relates to credit risk, or 0.06% of total loans. Finally, total purchase discount remaining on all acquired loans equates to 0.12% of total loans.
Nonaccrual loans were $156.1 million as of December 31, 2019, representing an increase of $48.9 million, or 45.6%, related primarily to a small number of agriculture loans identified as we continue to work through the higher risk credits. Loans graded "Watch" increased $10.7 million, or 2.6%, to $416.3 million, and loans graded "Substandard" increased $167.6 million, or 35.5%, to $640.1 million. The increase in loans graded "Substandard" was primarily due to downgrades in the agriculture and agriculture-related commercial non-real estate segments, with a small number of downgrades in the commercial non-real estate segment. Total other repossessed property balances were $39.5 million as of December 31, 2019, an increase of $2.7 million, or 7.4%.
Total credit-related charges for the current quarter increased compared to the previous quarter and the comparable quarter of fiscal year 2019. A summary of total credit-related charges incurred during the current, previous and comparable quarters is presented below:
GREAT WESTERN BANCORP, INC.
Summary of Credit-Related Charges (Unaudited)
For the three months ended:
ItemIncluded within F/S Line Item(s):December 31,
2019
September 30,
2019
December 31,
2018
(dollars in thousands) 
Provision for loan and lease lossesProvision for loan and lease losses$8,103  $1,982  $5,215  
Net other repossessed property chargesNet loss on repossessed property and other related expenses342  305  3,063  
Net reversal (recovery) of interest income on nonaccrual loansInterest income on loans2,006  (157) (41) 
Loan fair value adjustment related to creditNet increase in fair value of loans at fair value2,134  2,085  1,184  
Total$12,585  $4,215  $9,421  
Noninterest Income
Noninterest income was $15.7 million, an increase of $0.7 million, or 4.7%. The increase was primarily due to an increase of $0.6 million, or 27.6%, in wealth management fees as a result of the purchase and assumption of management of trust assets in Colorado during the quarter. Included within noninterest income is the net change in fair value of loans for which the Company has elected the fair value option and the net realized and unrealized gain (loss) of the related derivatives which generated a negligible change over the prior quarter.
Noninterest Expense
Total noninterest expense was $56.9 million, an increase of $1.7 million, or 3.1%. The majority of the increase was due to a $2.8 million increase in salaries and employee benefits, driven primarily by items related to fiscal year-end including vesting of share-based awards, incentive compensation and related payroll taxes as well as an increase in recruiting expense. In addition, data processing and communication expense decreased $0.8 million, or 12.6%, due to higher annual licensing and marketing campaign communication costs in the prior quarter.
The efficiency ratio1 was 46.2%, an increase from 44.5%, mainly due to due to the net reversal of interest income and higher salaries and employee benefits discussed previously.
Provision for Income Taxes
The provision for income taxes for the quarter ended December 31, 2019 was $12.6 million, reflecting an effective tax rate of 22.5%, compared to an effective tax rate of 22.1% in the prior quarter.
Capital
Tier 1 and total capital ratios were 12.0% and 13.0%, respectively, as of December 31, 2019, compared to 11.7% and 12.7% as of September 30, 2019. The common equity tier 1 capital ratio and tier 1 leverage ratio were 11.3% and 10.4%, respectively, as of December 31, 2019 compared to 11.0% and 10.1% as of September 30, 2019. All regulatory capital ratios remain above regulatory minimums to be considered "well capitalized."
On January 28, 2020, the Company’s Board of Directors declared a dividend of $0.30 per common share payable on February 26, 2020 to stockholders of record as of close of business on February 12, 2020. The aggregate dividend payment will be approximately $16.9 million.
2-

Exhibit 99.1
Business Outlook
"We expect loan growth to be modest for the remainder of the fiscal year as we work through some of our substandard loan balances and our emphasis on sound loan underwriting standards," added Karels. "We have begun to see improvements in operating performance of our dairy segment that continue to support our strategy with the portfolio."
Conference Call
Great Western Bancorp, Inc. will host a conference call to discuss its financial results for the first quarter of fiscal year 2020 on Thursday, January 28, 2020 at 7:30 AM (CT). The call can be accessed by dialing (855) 238-8837 approximately 10 minutes prior to the start time. Please ask to be joined into the Great Western Bancorp, Inc. (GWB) call. International callers should dial (412) 542-4114. The call will also be broadcast live over the Internet and can be accessed in the Investor Relations section of Great Western’s website at www.greatwesternbank.com. A replay will be available beginning one hour following the conference call and ending on February 11, 2020. To access the replay, dial (877) 344-7529 (U.S.) and use conference ID 10137768. International callers should dial (412) 317-0088 and enter the same conference ID number.
Annual Stockholder Meeting
The Company's Board of Directors has set the Great Western Bancorp, Inc. Annual Stockholder Meeting for Tuesday, February 4, 2020. The meeting will commence at 9:00 a.m. Mountain Time, at The Phoenician, 6000 E. Camelback Road, Scottsdale, Arizona. The record date for determination of stockholders entitled to notice of, and to vote at, the Annual Stockholder Meeting was December 9, 2019.
About Great Western Bancorp, Inc.
Great Western Bancorp, Inc. is the holding company for Great Western Bank, a full-service regional bank focused on relationship-based business and agribusiness banking. Great Western Bank offers small and mid-sized businesses a focused suite of financial products and a range of deposit and loan products to retail customers through several channels, including the branch network, online banking system, mobile banking applications and customer care centers. The bank services its customers through more than 170 branches in nine states: Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. To learn more about Great Western Bank visit www.greatwesternbank.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements about Great Western Bancorp, Inc.’s expectations, beliefs, plans, strategies, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. In particular, the statements included in this press release concerning Great Western Bancorp, Inc.’s expected performance and strategy, the outlook for its agricultural lending segment, strategies for managing troubled loans, and the interest rate environment are not historical facts and are forward-looking. Accordingly, the forward-looking statements in this press release are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward-looking statements are qualified in their entirety by reference to the factors discussed in the sections titled “Item 1A. Risk Factors” and "Cautionary Note Regarding Forward-Looking Statements" in Great Western Bancorp, Inc.’s Annual Report on Form 10-K for the most recently ended fiscal year, and in other periodic filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and Great Western Bancorp, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.
3-

Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Consolidated Financial Data (Unaudited)
At and for the three months ended:
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
(dollars in thousands, except share and per share amounts)
Operating Data:
Interest income (FTE)$133,060  $140,257  $139,623  $135,328  $133,551  
Interest expense26,364  32,061  32,570  30,411  27,167  
Noninterest income15,733  15,023  10,766  18,223  16,720  
Noninterest expense56,930  55,212  56,000  56,580  57,106  
Provision for loan and lease losses8,103  1,982  26,077  7,673  5,215  
Net income43,274  50,285  26,783  44,511  45,786  
Common shares outstanding56,382,915  56,283,659  56,939,032  56,938,435  56,938,435  
Weighted average diluted common shares outstanding56,457,967  56,804,172  57,110,103  57,074,674  58,039,292  
Earnings per common share - diluted$0.77  $0.89  $0.47  $0.78  $0.79  
Performance Ratios:
Net interest margin (FTE) ¹ ²3.68 %3.70 %3.70 %3.75 %3.81 %
Adjusted net interest margin (FTE) ¹ ²3.65 %3.69 %3.71 %3.76 %3.81 %
Return on average total assets ²1.34 %1.55 %0.84 %1.44 %1.48 %
Return on average common equity ²9.0 %10.6 %5.8 %9.9 %10.0 %
Return on average tangible common equity ¹ ²15.0 %17.6 %9.7 %16.9 %17.1 %
Efficiency ratio ¹46.2 %44.5 %47.2 %45.6 %46.1 %
Capital:
Tier 1 capital ratio12.0 %11.7 %11.3 %11.4 %11.1 %
Total capital ratio13.0 %12.7 %12.4 %12.4 %12.1 %
Tier 1 leverage ratio10.4 %10.1 %10.0 %10.2 %10.1 %
Common equity tier 1 ratio11.3 %11.0 %10.6 %10.7 %10.4 %
Tangible common equity / tangible assets ¹9.7 %9.6 %9.3 %9.2 %9.0 %
Book value per share - GAAP$34.06  $33.76  $33.04  $32.53  $31.82  
Tangible book value per share ¹$20.77  $20.52  $19.94  $19.43  $18.72  
Asset Quality:
Nonaccrual loans$156,113  $107,191  $118,060  $121,616  $138,944  
Other repossessed property$39,490  $36,764  $36,393  $32,450  $22,224  
Nonaccrual loans / total loans1.62 %1.10 %1.19 %1.24 %1.42 %
Net charge-offs (recoveries)$6,096  $7,754  $17,534  $5,863  $3,562  
Net charge-offs (recoveries) / average total loans ²0.25 %0.31 %0.72 %0.25 %0.15 %
Allowance for loan and lease losses / total loans0.76 %0.73 %0.77 %0.70 %0.68 %
Watch-rated loans$416,259  $405,549  $220,883  $301,099  $321,593  
Substandard loans$640,121  $472,497  $475,999  $258,946  $252,521  
1 This is a non-GAAP financial measure management believes is helpful to interpreting our financial results. See the tables at the end of this document for the calculation of the measure and reconciliation to the most comparable GAAP measure.
2 Annualized for all partial-year periods.

4-

Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Consolidated Income Statement (Unaudited)
At and for the three months ended:
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
(dollars in thousands) 
Interest income
Loans$119,431  $126,779  $126,392  $123,432  $122,331  
Investment securities11,498  10,935  11,430  9,957  9,189  
Federal funds sold and other608  1,056  377  497  541  
Total interest income131,537  138,770  138,199  133,886  132,061  
Interest expense
Deposits21,940  27,211  28,615  27,098  23,794  
FHLB advances and other borrowings3,113  3,487  2,538  1,923  2,003  
Subordinated debentures and subordinated notes payable1,311  1,363  1,417  1,390  1,370  
Total interest expense26,364  32,061  32,570  30,411  27,167  
Net interest income105,173  106,709  105,629  103,475  104,894  
Provision for loan and lease losses8,103  1,982  26,077  7,673  5,215  
Net interest income after provision for loan and lease losses97,070  104,727  79,552  95,802  99,679  
Noninterest income
Service charges and other fees11,409  11,674  10,321  10,209  11,689  
Wealth management fees2,964  2,322  2,234  2,117  2,241  
Mortgage banking income, net1,612  1,482  1,055  991  1,320  
Net gain (loss) on sale of securities—  13  322  —  (513) 
Net (decrease) increase in fair value of loans at fair value(14,933) 11,749  16,429  14,018  19,216  
Net realized and unrealized gain (loss) on derivatives13,516  (13,191) (20,904) (11,032) (18,317) 
Other1,165  974  1,309  1,920  1,084  
Total noninterest income15,733  15,023  10,766  18,223  16,720  
Noninterest expense
Salaries and employee benefits35,905  33,099  33,899  34,537  34,770  
Data processing and communication5,773  6,602  6,234  5,964  5,278  
Occupancy and equipment5,093  5,185  4,934  5,539  5,126  
Professional fees3,764  3,398  3,923  3,970  3,288  
Advertising865  1,194  1,145  1,216  938  
Net loss on repossessed property and other related expenses342  305  595  404  3,063  
Other5,188  5,429  5,270  4,950  4,643  
Total noninterest expense56,930  55,212  56,000  56,580  57,106  
Income before income taxes55,873  64,538  34,318  57,445  59,293  
Provision for income taxes12,599  14,253  7,535  12,934  13,507  
Net income$43,274  $50,285  $26,783  $44,511  $45,786  

5-

Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Summarized Consolidated Balance Sheet (Unaudited)
As of
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
(dollars in thousands) 
Assets
Cash and cash equivalents$247,421  $243,474  $225,356  $282,638  $276,760  
Investment securities1,904,291  1,783,208  1,799,430  1,763,305  1,531,916  
Total loans9,626,224  9,706,763  9,886,971  9,770,911  9,767,476  
Allowance for loan and lease losses(72,781) (70,774) (76,546) (68,003) (66,193) 
Loans, net9,553,443  9,635,989  9,810,425  9,702,908  9,701,283  
Goodwill740,562  739,023  739,023  739,023  739,023  
Other assets399,803  386,607  380,662  342,288  324,659  
Total assets$12,845,520  $12,788,301  $12,954,896  $12,830,162  $12,573,641  
Liabilities and stockholders' equity
Noninterest-bearing deposits$2,029,872  $1,956,025  $1,936,986  $1,824,507  $1,879,883  
Interest-bearing deposits8,058,656  8,344,314  8,298,958  8,643,876  8,233,364  
Total deposits10,088,528  10,300,339  10,235,944  10,468,383  10,113,247  
Securities sold under agreements to repurchase66,289  68,992  56,925  62,537  56,649  
FHLB advances and other borrowings575,000  340,000  605,000  275,000  410,000  
Other liabilities195,034  178,721  175,899  171,848  181,737  
Total liabilities10,924,851  10,888,052  11,073,768  10,977,768  10,761,633  
Stockholders' equity1,920,669  1,900,249  1,881,128  1,852,394  1,812,008  
Total liabilities and stockholders' equity$12,845,520  $12,788,301  $12,954,896  $12,830,162  $12,573,641  

GREAT WESTERN BANCORP, INC.
Loan Portfolio Summary (Unaudited)
As ofFiscal year-to-date:
December 31,
2019
September 30,
2019
Change
($)
Change
(%)
(dollars in thousands) 
Construction and development$496,156  $463,757  $32,399  7.0 %
Owner-occupied CRE1,380,773  1,411,199  (30,426) (2.2)%
Non-owner-occupied CRE2,827,484  2,853,131  (25,647) (0.9)%
Multifamily residential real estate380,301  364,323  15,978  4.4 %
Commercial real estate5,084,714  5,092,410  (7,696) (0.2)%
Agriculture1,980,678  2,008,644  (27,966) (1.4)%
Commercial non-real estate1,676,426  1,719,956  (43,530) (2.5)%
Residential real estate811,735  812,208  (473) (0.1)%
Consumer50,697  51,925  (1,228) (2.4)%
Other ¹46,875  47,541  (666) (1.4)%
Total unpaid principal balance9,651,125  9,732,684  (81,559) (0.8)%
Less: Unamortized discount on acquired loans and unearned net deferred fees and costs and loans in process(24,901) (25,921) 1,020  (3.9)%
Total loans$9,626,224  $9,706,763  $(80,539) (0.8)%
1 Other loans primarily include consumer and commercial credit cards, customer deposit account overdrafts, and lease receivables.

6-

Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Net Interest Margin (FTE) (Unaudited)
Three Months Ended
December 31, 2019September 30, 2019December 31, 2018
Average Balance  Interest (FTE) Yield / Cost ¹  Average Balance  Interest (FTE) Yield / Cost ¹  Average Balance  Interest (FTE) Yield / Cost ¹  
(dollars in thousands) 
Assets
Interest-bearing bank deposits ²$32,803  $608  7.37 %$39,617  $1,056  10.58 %$91,780  $541  2.34 %
Investment securities1,904,350  11,498  2.40 %1,822,670  10,935  2.38 %1,491,285  9,189  2.44 %
Non-ASC 310-30 loans, net ³9,554,161  119,232  4.96 %9,693,395  126,410  5.17 %9,435,901  121,851  5.12 %
ASC 310-30 loans, net52,296  1,722  13.10 %54,141  1,856  13.60 %67,834  1,970  11.52 %
Loans, net9,606,457  120,954  5.01 %9,747,536  128,266  5.22 %9,503,735  123,821  5.17 %
Total interest-earning assets11,543,610  133,060  4.59 %11,609,823  140,257  4.79 %11,086,800  133,551  4.78 %
Noninterest-earning assets1,267,983  1,238,412  1,186,821  
Total assets$12,811,593  $133,060  4.13 %$12,848,235  $140,257  4.33 %$12,273,621  $133,551  4.32 %
Liabilities and Stockholders' Equity
Noninterest-bearing deposits$1,977,084  $1,903,177  $1,865,295  
Interest-bearing deposits6,306,861  $13,373  0.84 %6,241,782  $17,211  1.09 %6,148,755  $15,736  1.02 %
Time deposits1,847,954  8,567  1.84 %2,054,370  10,000  1.93 %1,937,295  8,058  1.65 %
Total deposits10,131,899  21,940  0.86 %10,199,329  27,211  1.06 %9,951,345  23,794  0.95 %
Securities sold under agreements to repurchase66,527  31  0.19 %62,302  40  0.25 %79,849  57  0.28 %
FHLB advances and other borrowings497,034  3,082  2.47 %512,924  3,447  2.67 %242,495  1,946  3.18 %
Subordinated debentures and subordinated notes payable108,663  1,311  4.80 %108,622  1,363  4.98 %108,483  1,370  5.01 %
Total borrowings672,224  4,424  2.62 %683,848  4,850  2.81 %430,827  3,373  3.11 %
Total interest-bearing liabilities10,804,123  $26,364  0.97 %10,883,177  $32,061  1.17 %10,382,172  $27,167  1.04 %
Noninterest-bearing liabilities98,951  79,273  74,397  
Stockholders' equity1,908,519  1,885,785  1,817,052  
Total liabilities and stockholders' equity$12,811,593  $12,848,235  $12,273,621  
Net interest spread3.16 %3.16 %3.28 %
Net interest income and net interest margin (FTE)$106,696  3.68 %$108,196  3.70 %$106,384  3.81 %
Less: Tax equivalent adjustment1,523  1,487  1,490  
Net interest income and net interest margin - ties to Statements of Comprehensive Income$105,173  3.62 %$106,709  3.65 %$104,894  3.75 %
1 Annualized for all partial-year periods.
2 Interest income includes $0.4 million and $0.0 million for the first quarter of fiscal years 2020 and 2019, respectively, resulting from interest earned on derivative collateral included in other assets on the consolidated balance sheets.
3 Interest income includes $0.6 million and $0.4 million for the first quarter of fiscal years 2020 and 2019, respectively, resulting from accretion of purchase accounting discount associated with acquired loans.
Non-GAAP Financial Measures and Reconciliation
We rely on certain non-GAAP financial measures in making financial and operational decisions about our business. We believe that each of the non-GAAP financial measures presented is helpful in highlighting trends in our business, financial condition and results of operations which might not otherwise be apparent when relying solely on our financial results calculated in accordance with U.S. GAAP. We disclose net interest income and related ratios and analysis on a taxable-equivalent basis, which may also be considered non-GAAP financial measures. We believe this presentation to be the preferred industry measurement of net interest income as it provides a relevant comparison of net interest income arising from taxable and tax-exempt sources. In addition, certain performance measures, including the efficiency ratio and net interest margin utilize net interest income on a taxable-equivalent basis.
In particular, we evaluate our profitability and performance based on our tangible net income and return on average tangible common equity. Our tangible net income and return on average tangible common equity exclude the effects of amortization expense relating to intangible assets and related tax effects from the acquisition of us by National Australia Bank Limited ("NAB") and our acquisitions of other institutions. We believe these measures help highlight trends associated with our financial condition and results of operations by providing net income and return information based on our cash payments and receipts during the applicable period.
7-

Exhibit 99.1
We also evaluate our profitability and performance based on our adjusted net interest income, adjusted net interest margin, adjusted interest income on non-ASC 310-30 loans and adjusted yield on non-ASC 310-30 loans. We adjust each of these four measures to include the current realized gain (loss) of derivatives we use to manage interest rate risk on certain of our loans, which we believe economically offsets the interest income earned on the loans. Similarly, we evaluate our operational efficiency based on our efficiency ratio, which excludes the effect of amortization of core deposit and other intangibles (a non-cash expense item) and includes the tax benefit associated with our tax-advantaged loans.
We evaluate our financial condition based on the ratio of our tangible common equity to our tangible assets and the ratio of our tangible common equity to common shares outstanding. Our calculation of this ratio excludes the effect of our goodwill and other intangible assets. We believe this measure is helpful in highlighting the common equity component of our capital and because of its focus by federal bank regulators when reviewing the health and strength of financial institutions in recent years and when considering regulatory approvals for certain actions, including capital actions. We also believe the ratio of our tangible common equity to common shares outstanding is helpful in understanding our stockholders’ relative ownership position as we undertake various actions to issue and retire common shares outstanding.
Reconciliations for each of these non-GAAP financial measures to the closest GAAP financial measures are included in the tables below. Each of the non-GAAP financial measures presented should be considered in context with our GAAP financial results included in this release.
GREAT WESTERN BANCORP, INC.
Reconciliation of Non-GAAP Measures (Unaudited)
At and for the three months ended:
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
(dollars in thousands except share and per share amounts)
Tangible net income and return on average tangible common equity:
Net income - GAAP$43,274  $50,285  $26,783  $44,511  $45,786  
Add: Amortization of intangible assets, net of tax377  315  335  343  344  
Tangible net income$43,651  $50,600  $27,118  $44,854  $46,130  
Average common equity$1,908,519  $1,885,785  $1,864,132  $1,822,940  $1,817,052  
Less: Average goodwill and other intangible assets748,146  745,349  745,718  746,107  746,503  
Average tangible common equity$1,160,373  $1,140,436  $1,118,414  $1,076,833  $1,070,549  
Return on average common equity *9.0 %10.6 %5.8 %9.9 %10.0 %
Return on average tangible common equity **15.0 %17.6 %9.7 %16.9 %17.1 %
* Calculated as net income - GAAP divided by average common equity. Annualized for partial-year periods.
** Calculated as tangible net income divided by average tangible common equity. Annualized for partial-year periods.
Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis):
Net interest income - GAAP$105,173  $106,709  $105,629  $103,475  $104,894  
Add: Tax equivalent adjustment1,523  1,487  1,424  1,442  1,490  
Net interest income (FTE)106,696  108,196  107,053  104,917  106,384  
Add: Current realized derivative gain (loss)(890) (127) 321  405  21  
Adjusted net interest income (FTE)$105,806  $108,069  $107,374  $105,322  $106,405  
Average interest-earning assets$11,543,610  $11,609,823  $11,617,521  $11,345,559  $11,086,800  
Net interest margin (FTE) *3.68 %3.70 %3.70 %3.75 %3.81 %
Adjusted net interest margin (FTE) **3.65 %3.69 %3.71 %3.76 %3.81 %
* Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods.
** Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods.
Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non-ASC 310-30 loans:
Interest income - GAAP$117,709  $124,923  $124,098  $121,528  $120,361  
Add: Tax equivalent adjustment1,523  1,487  1,424  1,442  1,490  
Interest income (FTE)119,232  126,410  125,522  122,970  121,851  
Add: Current realized derivative gain (loss)(890) (127) 321  405  21  
Adjusted interest income (FTE)$118,342  $126,283  $125,843  $123,375  $121,872  
Average non-ASC 310-30 loans$9,554,161  $9,693,395  $9,699,433  $9,615,096  $9,435,901  
Yield (FTE) *4.96 %5.17 %5.19 %5.19 %5.12 %
Adjusted yield (FTE) **4.93 %5.17 %5.20 %5.20 %5.12 %
* Calculated as interest income (FTE) divided by average loans. Annualized for partial-year periods.
** Calculated as adjusted interest income (FTE) divided by average loans. Annualized for partial-year periods.
8-

Exhibit 99.1
GREAT WESTERN BANCORP, INC.
Reconciliation of Non-GAAP Measures (Unaudited)
At and for the three months ended:
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019
December 31,
2018
(dollars in thousands except share and per share amounts)
Efficiency ratio:
Total revenue - GAAP$120,906  $121,732  $116,395  $121,698  $121,614  
Add: Tax equivalent adjustment1,523  1,487  1,424  1,442  1,490  
Total revenue (FTE)$122,429  $123,219  $117,819  $123,140  $123,104  
Noninterest expense$56,930  $55,212  $56,000  $56,580  $57,106  
Less: Amortization of intangible assets427  366  385  394  394  
Tangible noninterest expense$56,503  $54,846  $55,615  $56,186  $56,712  
Efficiency ratio *46.2 %44.5 %47.2 %45.6 %46.1 %
* Calculated as the ratio of tangible noninterest expense to total revenue (FTE).
Tangible common equity and tangible common equity to tangible assets:
Total stockholders' equity$1,920,669  $1,900,249  $1,881,128  $1,852,394  $1,812,008  
Less: Goodwill and other intangible assets749,481  745,197  745,563  745,947  746,341  
Tangible common equity$1,171,188  $1,155,052  $1,135,565  $1,106,447  $1,065,667  
Total assets$12,845,520  $12,788,301  $12,954,896  $12,830,162  $12,573,641  
Less: Goodwill and other intangible assets749,481  745,197  745,563  745,947  746,341  
Tangible assets$12,096,039  $12,043,104  $12,209,333  $12,084,215  $11,827,300  
Tangible common equity to tangible assets9.7 %9.6 %9.3 %9.2 %9.0 %
Tangible book value per share:
Total stockholders' equity$1,920,669  $1,900,249  $1,881,128  $1,852,394  $1,812,008  
Less: Goodwill and other intangible assets749,481  745,197  745,563  745,947  746,341  
Tangible common equity$1,171,188  $1,155,052  $1,135,565  $1,106,447  $1,065,667  
Common shares outstanding56,382,915  56,283,659  56,939,032  56,938,435  56,938,435  
Book value per share - GAAP$34.06  $33.76  $33.04  $32.53  $31.82  
Tangible book value per share$20.77  $20.52  $19.94  $19.43  $18.72  

GREAT WESTERN BANCORP, INC.
Media and Investor Relations Contacts:
Peter Chapman, 605.373.3198
peter.chapman@greatwesternbank.com
Seth Artz, 605.988.9523
seth.artz@greatwesternbank.com

9-
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Section 3: EX-99.2 (EX-99.2)

erdeck20191231final
Earnings Release | December 31, 2019


 
ABOUT GWB Company Snapshot EPS Performance CAGR EPS 10% 3 • Full-service regional bank focused on relationship-based $2.90 $2.92 business and agribusiness banking $2.46 • 175 banking branches across nine states: Arizona, Colorado, $2.31 $2.67 Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota $2.45 $1.90 and South Dakota $2.14 $0.79 $0.77 • Headquartered in Sioux Falls, South Dakota • 5th largest farm lender bank in the U.S. as of 09/30/19 1 FY15 FY16 FY17 FY18 FY19 FYTD 19 FYTD 20 EPS - diluted Adj. EPS - diluted ² Strong Earnings and Efficiency Tangible Book Value 5 per Share Accretion $172 $167 160.00 GWB CAGR TBV 11% 3 $145 150.00 $131 $158 140.00 $109 $121 130.00 $46 $43 120.00 110.00 48% 50% 47% 47% 46% Peer CAGR TBV 7% 3 46% 46% 100.00 90.00 FY15 FY16 FY17 FY18 FY19 FYTD 19 FYTD 20 4QFY141QFY152QFY153QFY154QFY151QFY162QFY163QFY164QFY161QFY172QFY173QFY174QFY171QFY182QFY183QFY184QFY181QFY192QFY193QFY194QFY19 4 Net Income Adj. Net Income ² Efficiency GWB GWB Peer Group Ratio 5 1 3 2 Source: American Banker's Association 4 Compound Annual Growth Rate over 5 years Excludes after-tax effect of items with a significant impact to net income that we do not believe to 5 See appendix for Peer Group listing; data sourced from SNL Financial be recurring in nature, such as one-time acquisition expenses or the effect of revaluation of Non-GAAP measures, see appendix for reconciliations 2 deferred taxes


 
EXECUTING ON STRATEGY • Total loans decreased 0.8% to $9.63 billion during the quarter Focused Business • Loan decline was mainly attributable to the commercial non-real estate segment of the portfolio, which Banking Franchise decreased by $43.5 million, or 2.5% and a reduction in the agriculture segment of $28.0 million, or 1.4% with Agribusiness • Deposits decreased by 2.1% to $10.09 billion during the quarter, driven by a reduction in the use of brokered Experience deposits offset by increases in both consumer and business deposits • Fully diluted EPS 1 of $0.77 for the quarter compared to $0.89 for 4QFY19 Strong Profitability • Profitability remains strong with ROTCE 1 of 15.0% and ROAA of 1.34% for the quarter Driven by a Highly Efficient Operating • Efficiency ratio 1 of 46.2% for the quarter compared to 44.5% for the prior quarter Model • All regulatory capital ratios remain above minimums to be considered “well capitalized” Strong Capital • Quarterly dividend of $0.30 per share Generation and ◦ Dividend payable February 26, 2020 to stockholders of record as of the close of business on Attractive Dividend February 12, 2020 • Net charge-offs of $6.1 million during the quarter represent 0.25% of average total loans on an annualized basis, majority of which were in agriculture and commercial non-real estate segments of the loan portfolio Focus on Credit • Loans graded "Substandard" increased by 35.5% to $640.1 million during the quarter and loans graded and Key Asset "Watch" increased by 2.6% to $416.3 million primarily due to downgrades in the agriculture and agriculture- Quality Metrics related segment, with a small number of downgrades in the commercial non-real estate segment • Nonaccrual loans increased by 45.6% to $156.1 million during the quarter primarily due to a small number of agriculture loans identified as we continue to work through the higher risk credits 1 This is a non-GAAP measure. See appendix for reconciliation. 3


 
REVENUE Revenue Highlights Net Interest Income ($MM) and NIM • Net interest income (FTE) decreased 1.4% to $106.7 million compared to prior quarter $108.2 $106.7 $106.4 $106.7 ◦ Interest income included a $2.0 million net reversal of interest income on loans moved to nonaccrual during the quarter 3.70% 3.68% 3.81% 3.68% • NIM (FTE) adjusted NIM (FTE) 2 was down 2 and 4 basis points, respectively, compared to 4QFY19 3.69% 3.65% 3.81% 3.65% • Noninterest income increased $0.6 million compared to prior quarter due to wealth management fees increasing as a result of the purchase and assumption of management of trust assets 4QFY19 1QFY20 FYTD 19 FYTD 20 in Colorado Net Interest Income (FTE) NIM (FTE) Adjusted NIM (FTE) ² NIM Analysis Noninterest Income 1 Service charges Other Service fees 0.01% $1,481 3.70% 0.02% 3.68% $2,569 0.14% 0.03% 3.69% 3.65% Wealth management (0.14)% $2,964 (0.07)% (0.03)% OD/NSF fees $3,986 Mortgage banking income, net $1,612 Loans Other 4QFY19 Deposits 1QFY20 Derivatives Borrowings $1,165 Brokered CDs Interchange income $3,373 Cash & Investments Nonaccrual Interest 1 Chart excludes changes related to loans and derivatives at fair value which netted $(1.4) million NIM (FTE) Adjusted NIM (FTE) ² for the quarter and gain/loss on sale of securities. Dollars in thousands. 2 Adjusted NIM (FTE) is a non-GAAP measure. See appendix for reconciliations. 4


 
EARNINGS, EXPENSES & PROVISION Highlights Net Income ($MM) • Net income of $43.3 million, a decrease of 13.9% over 4QFY19 $50.3 $45.8 $44.5 • Higher provision for loan losses during the quarter due $43.3 mainly to an increase in specific reserves in the agriculture, CRE and commercial non-real estate $26.8 segments • ROAA of 1.34% and 15.0% ROTCE 1 for the quarter 1.55% 1.48% 1.44% 1.34% • Efficiency ratio 1 was 46.2% for the quarter 0.84% • Noninterest expense remained stable from 4QFY19 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 Net Income Adjusted Net Income ROAA Noninterest Expense ($MM) Provision for Loan Losses ($MM) Sustained peer-leading $8.1 $8.1 efficiency ratio 1, 2 $55.2 $56.9 $57.1 $56.9 $5.2 46.1% 46.2% 44.5% 46.2% $2.0 4QFY19 1QFY20 FYTD 19 FYTD 20 4QFY19 1QFY20 FYTD 19 FYTD 20 Noninterest expense Efficiency Ratio 1 ROTCE and efficiency ratio are non-GAAP measures. See appendix for reconciliations. 5 2 See appendix for Peer Group listing; data sourced from SNL Financial.


 
BALANCE SHEET OVERVIEW Balance Sheet Highlights Total Loans ($MM) • Outstanding loans decreased $80.5 million, or 0.8%, during the $9,416 $9,707 $9,626 quarter $8,683 $8,969 ▪ Decline in the quarter due to the commercial non-real $7,325 $864 estate segment, which decreased due to disbursement $7,819 transaction timing within our mortgage warehouse lending, the agriculture segment, which was impacted by the workout of a small number of large credits and the CRE segment, which had a small number of loans refinance with other institutions at lower rates • Deposits declined $211.8 million, or 2.1%, during the quarter FY15 FY16 FY17 FY18 FY19 1QFY20 ▪ Decrease during the quarter was driven by a decrease in brokered deposits offset by increases in both consumer Total Loans Loans Acquired and business deposits Deposits ($MM) Capital 13.0% 13.0% $10,300 12.7% $9,733 $10,089 12.5% 12.1% 12.2% $8,605 $8,978 $7,387 12.0% 12.0% $863 1.05% 11.7% $7,742 11.4% 0.86% 10.9% 11.1% 0.65% 9.7% 0.40% 9.6% 9.6% 0.32% 0.32% 9.2% 8.3% 8.5% FY15 FY16 FY17 FY18 FY19 1QFY20 FY15 FY16 FY17 FY18 FY19 1QFY20 Total Deposits Deposits Acquired Cost of Deposits Tier 1 Capital Total Capital TCE / TA ¹ 1 TCE / TA is a non-GAAP measure. See appendix for reconciliation. 6


 
ASSET QUALITY Highlights • Asset quality remains a key focus as we make progress working through substandard credits and higher risk credits in both ag and non-ag portfolios • Watch remained relatively stable for the quarter • "Substandard" loans increased $167.6 million, or 35.5%, primarily due to downgrades in the agriculture and agriculture-related commercial non-real estate segments • Later in the year we will transition to a rating system that better aligns with industry standards and offers better granularity, particularly the adoption of a Special Mention category within a Criticized Loan classification Watch Loans ($MM) Substandard Loans ($MM) $640 $406 $416 $216 $206 $197 $343 $328 $310 $312 $84 $472 $123 $121 $132 $115 6.6% $253 4.2% 4.2% 4.3% $242 $233 4.9% 3.8% 3.6% $81 3.5% $184 $111 $71 2.8% 2.5% 2.6% 2.7% $130 $189 $205 $180 $259 $200 $219 $54 $131 $162 $172 $357 $424 FY15 FY16 FY17 FY18 FY19 1QFY20 FY15 FY16 FY17 FY18 FY19 1QFY20 Ag Loans Non Ag Loans % of Total Loans Ag Loans Non Ag Loans % Total Loans 7


 
ASSET QUALITY Highlights Nonaccruals / Total Loans 83.8% • Nonaccrual loans increased 45.6% for the quarter due to a small number of agriculture loans identified as we continue 66.0% to work through the higher risk credits. 51.1% 46.6% • Net charge-offs for the quarter were 0.25% of average 45.9% 45.1% 0.29% loans on an annualized basis, down from 0.31% of 0.67% 0.42% 0.38% average total loans on an annualized basis for the prior 0.30% quarter 0.60% 1.12% 1.14% 1.33% 0.79% 0.80% • The ratio of ALLL to total loans increased to 0.76% for the 0.33% quarter from 0.73% as of the prior quarter FY15 FY16 FY17 FY18 FY19 1QFY20 AG Non-AG Reserves/ Total NALs Net Charge-offs / Average Total Loans 2 Comprehensive Credit-Related Coverage ($MM) 0.36% GWB Legacy Loans Amortized Acquired 0.02% Cost Fair Value Loans Total 0.26% 0.08% 0.25% ALLL $ 70.2 $ — $ 2.6 $ 72.8 0.02% Remaining Loan Discount $ — $ — $ 11.9 $ 11.9 0.18% 0.06% Fair Value Adjustment (Credit) $ — $ 6.2 $ — $ 6.2 0.13% 0.14% Total ALLL / Discount / FV Adj. $ 70.2 $ 6.2 $ 14.5 $ 90.9 0.12% 0.03% 0.25% Total Loans $ 8,441.3 $ 772.2 $ 412.7 $ 9,626.2 0.02% 0.10% 0.18% ALLL / Total Loans 0.83 % — % 0.63 % 0.76 % 0.11% 0.05% 0.08% Discount / Total Loans — % — % 2.88 % 0.12 % 0.04% 0.02% 0.04% FV Adj. / Total Loans — % 0.80 % — % 0.06 % FY15 FY16 FY17 FY18 FY19 FYTD 20 Total Coverage / Total Loans ¹ 0.83 % 0.80 % 3.51 % 0.94 % CRE AG C&I Other Total Loans 1 Comprehensive Credit-Related Coverage is a non-GAAP measure that Management believes is useful to demonstrate that the FV adjustments related to credit and remaining loan discounts consider credit risk and should be considered as part of total coverage 2 8 Annualized for partial periods


 
AG LOAN ASSET QUALITY Commentary Ag Net Charge-offs / Average Total Loans 1 • Charge-offs continue to be driven by loans in the cattle sector while substandard and watch levels for beef are 0.01% showing improvement • Upgrades in dairy loans were more than offset by downgrades to substandard as a lag in customer financials has resulted in a deterioration of rating metrics and stalled 0.19% potential portfolio improvements • Two loans in the swine sector were downgraded as 0.03% 0.18% performance and metrics have been pressured by weak 0.05% prices in the latter part of the year, primarily from tariffs 0.02% 0.07% 0.05% 0.03% 0.03% FY15 FY16 FY17 FY18 FY19 FYTD 20 Ag Watch Loans by Category 2 Ag Substandard Loans by Category 2 $16 $48 $25 $24 $76 $16 $9 $19 $12 $44 $35 $40 $90 $195 $230 $63 $123 $13 $67 $103 $14 $21 $15 $28 $145 $69 $22 $69 $86 $96 $30 $75 $73 $64 $75 $31 $94 $79 $62 $35 $23 $51 $47 FY15 FY16 FY17 FY18 FY19 FYTD 20 FY15 FY16 FY17 FY18 FY19 FYTD 20 Grains Beef Cattle Dairy Farms Hogs All Other 1 Annualized for partial year periods 2 Categories with less than $20m were considered immaterial and combined in Other 9


 
PROVEN BUSINESS STRATEGY Focused Business Banking Franchise with Agribusiness Experience Attract and Retain High-Quality Relationship Bankers Invest in Organic Growth While Optimizing Footprint Deepen Customer Relationships Explore Accretive Strategic Acquisition Opportunities Strong Profitability Driven by a Highly Efficient Operating Mode Strong Capital Generation and Attractive Dividend Focus on Credit and Key Asset Quality Metrics 10


 
DISCLOSURES Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements about Great Western Bancorp, Inc.’s expectations, beliefs, plans, strategies, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. In particular, the statements included in this Presentation concerning Great Western Bancorp, Inc.’s expected performance and strategy, the outlook for its agricultural lending segment, strategies for managing troubled loans, and the interest rate environment are not historical facts and are forward-looking. Accordingly, the forward-looking statements in this Presentation are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties, that could cause actual results to differ materially from those expressed. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward- looking statements are qualified in their entirety by reference to the factors discussed in the sections titled “Item 1A. Risk Factors” and "Cautionary Note Regarding Forward-Looking Statements" in Great Western Bancorp, Inc.’s Annual Report on Form 10-K for the most recently ended fiscal year, and in other periodic filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and Great Western Bancorp, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Non-GAAP Financial Measures: This presentation contains non-GAAP measures which our management relies on in making financial and operational decisions about our business and which exclude certain items that we do not consider reflective of our business performance. We believe that the presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. These non-GAAP measures should be considered in context with our GAAP results. A reconciliation of these non-GAAP measures appears in our earnings release dated January 28, 2020 and in Appendix 1 to this presentation. Our earnings release and this presentation are available in the Investor Relations section of our website at www.greatwesternbank.com. Our earnings release and this presentation are also available as part of our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 28, 2020. Explanatory Note: In this presentation, all financial information presented refers to the financial results of Great Western Bancorp, Inc. combined with those of its predecessor, Great Western Bancorporation, Inc. 11


 
Appendix 1 Non-GAAP Measures


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Tangible net income and return on average tangible common equity: Net income - GAAP $ 43,274 $ 50,285 $ 26,783 $ 44,511 $ 45,786 Add: Amortization of intangible assets, net of tax 377 315 335 343 344 Tangible net income $ 43,651 $ 50,600 $ 27,118 $ 44,854 $ 46,130 Average common equity $ 1,908,519 $ 1,885,785 $ 1,864,132 $ 1,822,940 $ 1,817,052 Less: Average goodwill and other intangible assets 748,146 745,349 745,718 746,107 746,503 Average tangible common equity $ 1,160,373 $ 1,140,436 $ 1,118,414 $ 1,076,833 $ 1,070,549 Return on average common equity * 9.0 % 10.6 % 5.8 % 9.9 % 10.0 % Return on average tangible common equity ** 15.0 % 17.6 % 9.7 % 16.9 % 17.1 % * Calculated as net income - GAAP divided by average common equity. Annualized for partial-year periods. ** Calculated as tangible net income divided by average tangible common equity. Annualized for partial-year periods. Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis): Net interest income - GAAP $ 105,173 $ 106,709 $ 105,629 $ 103,475 $ 104,894 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Net interest income (FTE) 106,696 108,196 107,053 104,917 106,384 Add: Current realized derivative gain (loss) (890) (127) 321 405 21 Adjusted net interest income (FTE) $ 105,806 $ 108,069 $ 107,374 $ 105,322 $ 106,405 Average interest-earning assets $ 11,543,610 $ 11,609,823 $ 11,617,521 $ 11,345,559 $ 11,086,800 Net interest margin (FTE) * 3.68 % 3.70 % 3.70 % 3.75 % 3.81 % Adjusted net interest margin (FTE) ** 3.65 % 3.69 % 3.71 % 3.76 % 3.81 % * Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. ** Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. 13


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non-ASC 310-30 loans: Interest income - GAAP $ 117,709 $ 124,923 $ 124,098 $ 121,528 $ 120,361 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Interest income (FTE) 119,232 126,410 125,522 122,970 121,851 Add: Current realized derivative gain (loss) (890) (127) 321 405 21 Adjusted interest income (FTE) $ 118,342 $ 126,283 $ 125,843 $ 123,375 $ 121,872 Average non-ASC 310-30 loans $ 9,554,161 $ 9,693,395 $ 9,699,433 $ 9,615,096 $ 9,435,901 Yield (FTE) * 4.96 % 5.17 % 5.19 % 5.19 % 5.12 % Adjusted yield (FTE) ** 4.93 % 5.17 % 5.20 % 5.20 % 5.12 % * Calculated as interest income (FTE) divided by average loans. Annualized for partial-year periods. ** Calculated as adjusted interest income (FTE) divided by average loans. Annualized for partial-year periods. Efficiency ratio: Total revenue - GAAP $ 120,906 $ 121,732 $ 116,395 $ 121,698 $ 121,614 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Total revenue (FTE) $ 122,429 $ 123,219 $ 117,819 $ 123,140 $ 123,104 Noninterest expense $ 56,930 $ 55,212 $ 56,000 $ 56,580 $ 57,106 Less: Amortization of intangible assets 427 366 385 394 394 Tangible noninterest expense $ 56,503 $ 54,846 $ 55,615 $ 56,186 $ 56,712 Efficiency ratio * 46.2 % 44.5 % 47.2 % 45.6 % 46.1 % * Calculated as the ratio of tangible noninterest expense to total revenue (FTE). 14


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Tangible common equity and tangible common equity to tangible assets: Total stockholders' equity $ 1,920,669 $ 1,900,249 $ 1,881,128 $ 1,852,394 $ 1,812,008 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible common equity $ 1,171,188 $ 1,155,052 $ 1,135,565 $ 1,106,447 $ 1,065,667 Total assets $ 12,845,520 $ 12,788,301 $ 12,954,896 $ 12,830,162 $ 12,573,641 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible assets $ 12,096,039 $ 12,043,104 $ 12,209,333 $ 12,084,215 $ 11,827,300 Tangible common equity to tangible assets 9.7 % 9.6 % 9.3 % 9.2 % 9.0 % Tangible book value per share: Total stockholders' equity $ 1,920,669 $ 1,900,249 $ 1,881,128 $ 1,852,394 $ 1,812,008 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible common equity $ 1,171,188 $ 1,155,052 $ 1,135,565 $ 1,106,447 $ 1,065,667 Common shares outstanding 56,382,915 56,283,659 56,939,032 56,938,435 56,938,435 Book value per share - GAAP $ 34.06 $ 33.76 $ 33.04 $ 32.53 $ 31.82 Tangible book value per share $ 20.77 $ 20.52 $ 19.94 $ 19.43 $ 18.72 15


 
Appendix 2 Accounting for Loans at FV and Related Derivatives


 
LOANS AT FAIR VALUE & RELATED DERIVATIVES Overview • For certain loans with an original term greater than 5 years with a fixed rate to the customer, Great Western Bank (“GWB”) has entered into equal and offsetting fixed-to-floating interest rate swaps with two US counterparties • Total size of the portfolio was $772.2 million at December 31, 2019 GWB has elected the Fair Value Option (ASC 825) on these loans and applies a similar treatment to the related derivatives: ◦ Changes in the fair value of the loans and the derivatives and the current period realized cost (benefit) of the derivatives (i.e., the net pay fixed/receive floating settlement) are recorded in earnings through noninterest income ◦ This differs significantly from most peers who have elected Hedge Accounting treatment ◦ The historical election is irrevocable so the concept will be present for the foreseeable future in GWB’s financial statements even if different accounting elections are made on future originations ◦ Management presents non-GAAP measures to provide more clarity on the underlying economics Summary x Income Statement Line Item: x x Net (decrease) increase in fair value of Net realized and unrealized gain (loss) x loans at fair value on derivatives Net Relationship Notes (Decrease) increase in FV related to interest rates $ (12,799) $ 12,799 $ — 1 (Decrease) increase in FV related to credit $ (2,134) $ 389 $ (1,745) 2 Increase in SWAP fees $ — $ 1,218 $ 1,218 3 Current period realized cost of derivatives $ — $ (890) $ (890) 4 Subtotal, loans at FV and related derivatives $ (14,933) $ 13,516 $ (1,417) 5 1 Equal and offsetting each period. Changes in the FV of each financial asset and liability driven by current compared to contractual rates. 2 Management records an adjustment for credit risk in noninterest income based on loss history for similar loans, adjusted for an assessment of existing market conditions for each loan segment. The FV adjustment related to credit is not included in the ALLL but loans are included in the ALLL coverage ratio denominator. 3 Swap fees are fees related to transacting interest rate swaps and other interest rate derivatives. 4 Current period actual cost of fixed-to-float interest rate swaps. Within non-GAAP financial measures, management reclassifies this component to interest income, resulting in adjusted interest income, adjusted net interest income and adjusted NIM, reflecting the underlying economics of the transactions. All else equal, this drag on earnings will reduce as short-term LIBOR rates increase. 5 While US GAAP mandates the presentation of these items in noninterest income, management believes the residual net amount economically represents the net credit exposure of this segment of the portfolio - presented as a "credit-related charge" in the earnings release and elsewhere (see note (2)) - and the current period derivative cost which should be analyzed relative to gross interest income received from the loan customers (see note (4)) as presented in non-GAAP measures. 17


 
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Section 4: EX-99.3 (EX-99.3)

ipdeck20191231final
Quarterly Investor Relations Presentation At and for the three months ended December 31, 2019


 
ABOUT GWB Company Snapshot EPS Performance • Full-service regional bank focused on relationship-based CAGR EPS 10% 3 business and agribusiness banking $2.90 $2.92 $0.23 • 175 banking branches across nine states: Arizona, Colorado, $2.46 $2.31 $2.67 Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota $0.17 $2.45 and South Dakota $1.90 $2.14 $0.79 • Headquartered in Sioux Falls, South Dakota $0.77 • 5th largest farm lender bank in the U.S. as of 09/30/19 1 FY15 FY16 FY17 FY18 FY19 FYTD 19 FYTD 20 EPS - diluted Adj. EPS - diluted ² Strong Earnings and Efficiency Tangible Book Value 5 per Share Accretion $172 160.00 $167 GWB CAGR TBV 11% 3 $145 $14 150.00 $131 $158 140.00 $109 $10 $121 130.00 $46 $43 120.00 110.00 Peer CAGR TBV 7% 3 48% 50% 47% 47% 46% 46% 46% 100.00 90.00 FY15 FY16 FY17 FY18 FY19 FYTD 19 FYTD 20 4QFY141QFY152QFY153QFY154QFY151QFY162QFY163QFY164QFY161QFY172QFY173QFY174QFY171QFY182QFY183QFY184QFY181QFY192QFY193QFY194QFY19 4 5 Net Income Adj. Net Income ² Efficiency GWB GWB Peer Group Ratio 1 3 2 Source: American Banker's Association 4 Compound Annual Growth Rate over 5 years Excludes after-tax effect of items with a significant impact to net income that we do not believe to be 5 See appendix for Peer Group listing; data sourced from SNL Financial recurring in nature, such as one-time acquisition expenses or the effect of revaluation of deferred taxes Non-GAAP measures, see appendix for reconciliations 2


 
ABOUT GWB Company Snapshot Exchange / Ticker • NYSE: GWB Market Cap • 56.4 million shares outstanding / $1.96 billion Ownership • 100% publicly traded Total Assets • $12.85 billion ROA / ROTCE 1 • 1.34% / 15.0% Efficiency Ratio 1 • 46.2% Locations • 175 branches in nine states FTEs • Approximately 1,600 Business & Ag • 70% of loans in business and 21% in agribusiness segments Experience • 5th largest farm lender bank in the U.S. 2 NOTE: All financial data is as of or for the three months ended December 31, 2019 unless otherwise noted. Market Cap calculated based on December 31, 2019 closing price of $34.74. Branch count as of December 31, 2019. 1 See appendix for non-GAAP reconciliation for ROTCE and efficiency ratio. 2 As of September 30, 2019. Source: American Banker's Association 3


 
FOFootpriOTPRIntNT Attractive Markets • 175 banking branches across nine Midwestern and Western states • Vibrant, diverse economies balanced across growing commercial hub cities and smaller rural communities • Opportunities for expansion into new markets within and adjacent to footprint 4


 
EXECUTING ON STRATEGY • Total loans decreased 0.8% to $9.63 billion during the quarter • Loan decline was mainly attributable to the commercial non-real estate segment of the portfolio, which Focused Business Banking Franchise decreased by $43.5 million, or 2.5% and a reduction in the agriculture segment of $28.0 million, or 1.4% with Agribusiness • Deposits decreased by 2.1% to $10.09 billion during the quarter, driven by a reduction in the use of brokered Experience deposits offset by increases in both consumer and business deposits • Fully diluted EPS 1 of $0.77 for the quarter compared to $0.89 for 4QFY19 Strong Profitability • Profitability remains strong with ROTCE 1 of 15.0% and ROAA of 1.34% for the quarter Driven by a Highly Efficient Operating • Efficiency ratio 1 of 46.2% for the quarter compared to 44.5% for the prior quarter Model • All regulatory capital ratios remain above minimums to be considered “well capitalized” Strong Capital • Quarterly dividend of $0.30 per share Generation and Attractive Dividend ◦ Dividend payable February 26, 2020 to stockholders of record as of the close of business on February 12, 2020 • Net charge-offs of $6.1 million during the quarter represent 0.25% of average total loans on an annualized basis, majority of which were in agriculture and commercial non-real estate segments of the loan portfolio Focus on Credit • Loans graded "Substandard" increased by 35.5% to $640.1 million during the quarter and loans graded and Key Asset "Watch" increased by 2.6% to $416.3 million primarily due to downgrades in the agriculture and agriculture- Quality Metrics related segment, with a small number of downgrades in the commercial non-real estate segment • Nonaccrual loans increased by 45.6% to $156.1 million during the quarter primarily due to a small number of agriculture loans identified as we continue to work through the higher risk credits 1 This is a non-GAAP measure. See appendix for reconciliation. 5


 
EXPERIENCED MANAGEMENT TEAM Industry Great Western Bank x x 1 Executive Officers experience (yrs) experience (yrs) x Ken Karels Former COO and Regional President - Great Western 43 18 Chairperson, President & CEO Former President and CEO - Marquette Bank Doug Bass x Former Regional President for Nebraska, Iowa, Kansas, Missouri, Arizona, Colorado, L&D, Marketing, Operations and People & Culture 37 11 Executive VP & COO Prior positions with U.S. Bank and First American Bank Group Pete Chapman x Responsible for financial / regulatory reporting, planning and strategy, project management, treasury, loan and deposit operations and information technology 26 16 Executive VP & CFO Prior U.S. experience with E&Y Karlyn Knieriem x Responsible for risk framework across GWB including Enterprise Risk, Compliance, BSA and Risk Asset Review 22 3 Executive VP & CRO Prior experience includes senior management roles with First National Bank of Omaha Tim Kintner x Regional President for South Dakota and responsible for the retail business across the footprint Executive VP & Regional Prior leadership positions with Bankers Trust Company, Bankers Trust, Marquette Bank, and Wells Fargo 37 2 President SD Non-Executive Officers x x x x x Scott Erkonen Prior leadership role representing the United States internationally in the areas of IT Governance and 24 13 Chief Information Officer Information Security — ISO (International Organization for Standardization) x Bart Floyd Prior experience with US Bank, Wells Fargo/South Trust Bank, and commercial banking and private 24 8 Regional President IA, KS & MO financing for organizations in Iowa, Colorado, and Texas x Michael Gough Prior leadership roles with GWB include Senior Lender, EVP - Credit, Executive GM - Strategic Business 37 24 Senior VP - Credit Services and Chief Credit Officer x Gail Grant Former Group President for Northern Colorado and Arizona 31 11 Regional President CO & AZ Prior experience with Wells Fargo/Norwest Andy Pederson x Head of P&C and L&D Prior experience - Senior Human Resource Generalist for Citibank and Wells Fargo 20 11 Donald Straka x General Counsel and Corporate Prior experience - attorney and executive in banking, securities and M&A 32 6 Secretary Chris Wiedenfeld x Prior experience with American National Bank, US Bank, and Lauritzen Corporation 24 6 Regional President NE Consultant x x x x x Michael Doyle President and founder of Credit Risk Advisors, LLC. 30 <1 Consultant - Interim CCO Prior experience - Executive VP and Chief Credit Officer U.S. Bancorp 1 For Mr. Chapman, includes experience at National Australia Bank, Ltd. and subsidiaries; For Mr. Erkonen, includes experience at HF Financial Corp. 6


 
ACQUISITION HISTORY Acquired First Community Acquired North Central Acquired Security Bank's Colorado franchise Bancshares Inc. Bank and a branch from Wachovia ($0.4 billion total) Acquired HF Financial ($0.1 billion) ($0.6 billion total) Corp. ($1.1 billion total) Acquired Acquired F&M Sunstate Bank Bank-Iowa and $12.8 $12.8 and three TierOne Bank $12.1 $12.0 branches from ($3.0 billion total) $11.5 $11.7 HF Financial Corp. $1.1 ($0.2 billion $10.0 $9.8 total) $9.4 $10.4 $9.0 $9.1 $8.3 $8.2 $0.4 $8.0 $8.6 $3.0 $6.0 $5.2 $4.3 $0.6 $5.3 $4.0 $3.4 $4.6 $3.1 $0.1 $0.2 $3.0 $3.2 $2.0 $0.0 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 FYTD 20 Period Ending Pre-Acquisition Assets Acquired Assets Note: Total assets are as of September 30 of each fiscal year unless otherwise noted. Acquired assets are the total of the fair value of total assets acquired and the net cash and cash equivalents received, at the time of acquisition of each indicated year. 7


 
LOAN PORTFOLIO COMPOSITION Loan Portfolio ($MM) Portfolio Segmentation by Type At September 30 of each fiscal year unless otherwise noted (UPB). Residential real estate, 8.5% Consumer & Other, 1.0% $9,733 $9,651 $9,446 Multifamily, 3.9% Commercial non-real estate, 17.4% $9,009 912 $909 $8,736 $934 $1,043 $1,140 1,720 $1,676 Ag real estate, 9.8% $7,351 $1,700 Non owner-occupied CRE, 29.3% $1,719 $1,033 $1,673 Ag operating, 10.7% 2,009 $1,981 $2,183 $1,611 Owner-occupied CRE, 14.3% Construction & $2,122 development, 5.1% $2,169 Geographic Diversification $1,861 Nebraska / Kansas, 17.1% $5,092 $5,085 South Dakota, 22.5% $4,629 $4,125 $3,754 Arizona, 14.3% $2,846 Colorado, 13.1% FY15 FY16 FY17 FY18 FY19 FYTD 20 North Dakota / Commercial RE Agriculture C&I Other Iowa / Missouri, 28.7% Minnesota, 2.8% Other, 1.5% NOTE: Other loans represent certain ASC 310-30 loans and certain other loans managed by our staff 8


 
COMMERCIAL LOANS Highlights • CRE loans decreased by $7.7 million, or 0.2%, as a result of a number of loans refinancing with other institutions due to lower rates • C&I loans decreased by $43.5 million, or 2.5%, during the quarter due to a seasonal slow down in mortgage warehouse lending CRE Portfolio Composition by Type (UPB $MM) C&I Portfolio Composition by Industry (UPB) Retail Trade 8.4% Accommodation and Food Services 7.7% Multifamily, 7.5% Manufacturing 9.9% Transportation and Non owner- Warehousing 7.2% occupied CRE, Construction and Finance and Insurance 6.4% Construction 10.1% 55.6% development, 9.7% Real Estate and Rental and Leasing 5.4% Public Administration 4.0% Health Care and Social Assistance 11.6% Other 14.9% Owner-occupied CRE, 27.2% Wholesale Trade 14.4% CRE Portfolio Exposure Sizes (UPB) C&I Portfolio Exposure Sizes (UPB) $15M+, 29.8% <$250K, 7.6% <$250K, 2.2% $250K - $1M, 11.6% $15M+, 29.7% $250K - $1M, 7.8% $1M - $5M, 27.8% $1M - $5M, 27.5% $5M- $15M, 32.4% $5M- $15M, 23.6% NOTE: All customer references are aggregated based on CIF and do not group CIFs with related ownership groups. Industry disclosures based on NAICS codes. 1 Regulatory concentration levels of CRE are 100% of the Company's total risk-based capital for loans for construction, land and land development and 300% of the Company's total risk- 9 based capital for total nonowner-occupied CRE loans.


 
AG LOAN PORTFOLIO Highlights Ag Portfolio Composition by Industry (UPB) • Portfolio balanced across sub segments • 10 largest Ag exposures represent 16.0% of total Ag and average $32 million Beef Cattle, 20.1% Dairy Farms, 27.2% • Approximately 3,000 customers with an average exposure size of $660,000 Grains, 28.5% • Dairy and flood exposure being closely monitored Proteins, 52.2% Other, 19.3% • Tariffs on the agriculture market continue to be monitored Hogs, 4.9% • Higher FY 19 charge-offs driven by a small number of cattle relationships Grains, 28.5% Other Specialty, 19.3% Geography Ag Portfolio Exposure Sizes (UPB) Other, 0.1% <$250K, 6.9% $15M+, 22.6% South Dakota, 28.7% $250K - $1M, 14.7% Arizona, 38.3% Colorado, 7.4% North Dakota / $1M - $5M, 29.4% $5M- $15M, 26.4% Minnesota, 0.1% Nebraska / Kansas, 7.2% Iowa / Missouri, 18.2% NOTE: All customer references are aggregated based on CIF and do not group CIFs with related ownership groups. Industry disclosures based on NAICS codes. 10


 
Highlights ASSET QUALITY Highlights • Asset quality remains a key focus as we make progress working through substandard credits and higher risk credits in both ag and non-ag portfolios • Watch remained relatively stable for the quarter • "Substandard" loans increased $167.6 million, or 35.5%, primarily due to downgrades in the agriculture and agriculture-related commercial non-real estate segments • Later in the year we will transition to a rating system that better aligns with industry standards and offers better granularity, particularly the adoption of a Special Mention category within a Criticized Loan classification Watch Loans ($MM) Substandard Loans ($MM) $640 $406 $416 $216 $206 $197 $343 $328 $310 $312 $84 $472 $123 $121 $132 $115 6.6% $253 4.2% 4.2% 4.3% $242 $233 4.9% 3.8% 3.6% $81 3.5% $184 $111 $71 2.8% 2.5% 2.6% 2.7% $130 $189 $205 $180 $259 $200 $219 $54 $131 $162 $172 $357 $424 FY15 FY16 FY17 FY18 FY19 1QFY20 FY15 FY16 FY17 FY18 FY19 1QFY20 Ag Loans Non Ag Loans % of Total Loans Ag Loans Non Ag Loans % Total Loans 11


 
ASSET QUALITY Highlights Nonaccruals / Total Loans • Nonaccrual loans increased 45.6% for the quarter due to a 83.8% small number of agriculture loans identified as we continue 66.0% to work through the higher risk credits. 51.1% • Net charge-offs for the quarter were 0.25% of average 45.9% 45.1% 46.6% 0.29% loans on an annualized basis, down from 0.31% of average 0.42% 0.38% total loans on an annualized basis for the prior quarter 0.67% 0.30% • The ratio of ALLL to total loans increased to 0.76% for the 0.60% 1.12% 1.14% 1.33% 0.79% 0.80% quarter from 0.73% as of the prior quarter 0.33% FY15 FY16 FY17 FY18 FY19 1QFY20 AG Non-AG Reserves/ Total NALs Net Charge-offs / Average Total Loans 2 Comprehensive Credit-Related Coverage ($MM) 0.36% GWB Legacy Loans Amortized Acquired 0.02% Cost Fair Value Loans Total 0.26% 0.08% 0.25% ALLL $ 70.2 $ — $ 2.6 $ 72.8 0.02% Remaining Loan Discount $ — $ — $ 11.9 $ 11.9 0.18% 0.06% Fair Value Adjustment (Credit) $ — $ 6.2 $ — $ 6.2 0.13% 0.14% Total ALLL / Discount / FV Adj. $ 70.2 $ 6.2 $ 14.5 $ 90.9 0.12% 0.03% 0.25% Total Loans $ 8,441.3 $ 772.2 $ 412.7 $ 9,626.2 0.02% 0.10% 0.18% ALLL / Total Loans 0.83 % — % 0.63 % 0.76 % 0.11% 0.05% 0.08% Discount / Total Loans — % — % 2.88 % 0.12 % 0.04% 0.04% 0.02% FV Adj. / Total Loans — % 0.80 % — % 0.06 % FY15 FY16 FY17 FY18 FY19 FYTD 20 Total Coverage / Total Loans ¹ 0.83 % 0.80 % 3.51 % 0.94 % CRE AG C&I Other Total Loans 1 Comprehensive Credit-Related Coverage is a non-GAAP measure that Management believes is useful to demonstrate that the FV adjustments related to credit and remaining loan discounts consider credit risk and should be considered as part of total coverage 2 12 Annualized for partial periods


 
AG LOAN ASSET QUALITY Commentary Ag Net Charge-offs / Average Total Loans 1 0.01% • Charge-offs continue to be driven by loans in the cattle sector while substandard and watch levels for beef are showing improvement • Upgrades in dairy loans were more than offset by downgrades to substandard as a lag in customer financials 0.19% has resulted in a deterioration of rating metrics and stalled potential portfolio improvements 0.18% • Two loans in the swine sector were downgraded as 0.03% performance and metrics have been pressured by weak 0.05% 0.02% 0.07% prices in the latter part of the year, primarily from tariffs 0.05% 0.03% 0.03% FY15 FY16 FY17 FY18 FY19 FYTD 20 Ag Watch Loans by Category 2 Ag Substandard Loans by Category 2 $16 $48 $24 $76 $16 $25 $19 $12 $9 $44 $35 $40 $90 $195 $230 $123 $63 $67 $103 $14 $13 $21 $15 $28 $145 $69 $22 $69 $96 $30 $86 $75 $73 $75 $64 $94 $35 $31 $79 $62 $23 $51 $47 FY15 FY16 FY17 FY18 FY19 FYTD 20 FY15 FY16 FY17 FY18 FY19 FYTD 20 1 Grains Beef Cattle Dairy Farms Hogs All Other Annualized for partial year periods 2 Categories with less than $20m were considered immaterial and combined in Other 13


 
INVESTMENTS & BORROWINGS Highlights • Investment portfolio weighted average life of 3.9 years as of December 31, 2019 and yield of 2.40% for the quarter ended December 31, 2019, an increase of 2 basis points compared to the prior quarter • Spot yield on the portfolio at December 31, 2019 was 2.42% with yields on new purchases at levels above maturities • Borrowings portfolio had a cost of 2.62% for the quarter ended December 31, 2019, a decrease of 19 basis points compared to the prior quarter, making it a more cost effective source of funding Investment Portfolio Borrowings & Weighted Average Cost Other 0.1% U.S. Treasuries 3.7% States and political Securities sold under subdivisions 3.3% agreements to repurchase, 0.19% GNMA 29.1% WA Cost Subordinated debentures and subordinated notes payable, 4.80% WA Cost FHLB & Other Other MBS 63.8% Borrowings, 2.47% WA Cost 14


 
DEPOSITS Portfolio Segmentation by Type Portfolio Over Time ($MM) At September 30 of each fiscal year unless otherwise noted. Other time Time certificates $10,300 certificates, 12.4% $10,089 $250K+, 4.5% $9,733 $8,978 2,096 1,711 $8,605 Non-Interest- 1,847 Bearing Demand, 1,275 20.1% 1,381 $7,387 1.05% 1,380 0.86% NOW, MMDA and 0.65% Savings, 63.0% 0.40% 0.32% 0.32% 6,248 6,348 5,847 6,043 5,343 Geographic Diversification 4,638 Arizona, 5.2% Nebraska / Kansas, 25.9% Colorado, 12.1% North Dakota / Minnesota, 0.5% $1,881 $1,856 $1,843 $1,956 $2,030 $1,369 FY15 FY16 FY17 FY18 FY19 FYTD 20 Iowa / Missouri, 27.6% South Dakota, 28.7% Noninterest-Bearing Interest-Bearing Time Cost of Deposits Demand 15 NOTE: South Dakota and Corporate deposits include deposits managed by our Corporate staff.


 
GROWTH - METRO VS RURAL Metro and Rural Markets • Historically, the Company's core Midwestern presence was focused in Iowa, Nebraska and South Dakota in rural markets largely supported by agricultural economies • M&A activity and de novo expansion over the last decade have expanded the footprint to include more metro 1 markets including metro markets in Colorado and Arizona • While loan and deposit balances in the core Midwestern markets remain critical to maintain, growth prospects are much more robust in Metro markets • Compound average growth over the last five years in metro markets has been 9% for loans and 8% for deposits, compared to (2)% and 4%, respectively, in rural markets which provide good, stable sources of funding Loans ($MM) Deposits ($MM) September 2015 September 2015 $76 1.2% 1.0% $85 $3,548 62.8% 48.0% $4,600 December 2019 December 2019 2.6% 36.0% 0.4% 51.0% $259 $2,640 $42 $3,763 50.9% $5,142 25.1% 74.5% $2,414 $7,170 46.5% $4,688 1 16 Metro markets generally include MSAs with >100K populations


 
CAPITAL Summary Capital Priorities • Attractive dividend of $0.30 for the quarter ended December 31, 2019 (dividend yield of 3.5% based on avg. 1 Organic Growth & Attractive Dividend Yield closing price during the quarter) 1 • Earnings and return on equity provide capital in excess of that required to fund organic growth and provides flexibility to 2 Attractive and Accretive Acquisitions execute upon deploying capital to enhance shareholder value • Strong earnings above is what is required to fund organic growth. Provides flexibility to execute upon deploying capital to enhance shareholder value 3 Share Buybacks Capital Ratios Total Tangible Capital Composition ($MM) Well Capitalized Difference to Well Great Western Bancorp, Inc. Ratio Minimum Capitalized Tier 1 capital 12.0% 8.0% 4.0% Total capital 13.0% 10.0% 3.0% Tangible equity net of Tier 1 leverage 10.4% 5.0% 5.4% DTAs and AOCI, 87% Common equity tier 1 11.3% 6.5% 4.8% $1,174.0 Tangible common equity / tangible assets ² 9.7% x x Risk-weighted assets ($MM) $10,395 x x Well Capitalized Difference to Well Great Western Bank Ratio Minimum Capitalized Eligible subordinated debt, 3%, $35.0 Tier 1 capital 11.6% 8.0% 3.6% Total capital 12.3% 10.0% 2.3% Eligible ALLL & reserve Tier 1 leverage 10.0% 5.0% 5.0% for unfunded Common equity tier 1 11.6% 6.5% 5.1% commitments, 5% $73.5 Risk-weighted assets ($MM) $10,390 x x Eligible trust-preferred securities, 5% $73.7 1 Future dividends subject to Board approval. 2 TCE/TA is a non=GAAP measure. See appendix for reconciliation. 17


 
INTEREST RATE SENSITIVITY Summary Sensitivity Modeling ◦ Management believes the balance sheet is well-positioned in the 15.00% current interest rate environment but funding costs are increasing ▪ Internal expense planning is not dependent on rate hikes and NIM expansion 10.00% • Investment portfolio weighted average life of 3.9 years 5.00% • Relatively short average tenor of the loan portfolio (1.3 years at December 31, 2019) due to: 0.00% • Higher proportion of 12-month revolving lines of credit in line with business and agriculture lending focus -5.00% • Certain fixed-rate loans with original terms greater than 5 -100 bps +100 bps +200 bps +300 bps +400 bps years are swapped to floating • Within the loan portfolio, 40.3% is variable or expected to Immediate Gradual reprice in the next 12 months Rate Type Concentration Rate Term Adjustable, 21.1% Fixed Rate Term Adjustable Fixed Rate Term Adjustable - 3% 1% 30% 1% Variable, 29.4% Hedged, 2.0% 1% 20% 8% 7% 31% 31% 27% 27% 10% 16% 18% Fixed - Hedged, 5.9% 10% 9% Fixed, 41.6% 5% 5% 0% <3m 3m- 12m- 3y-5y 5y+ <3m 3m- 12m- 3y-5y 5y+ 12m 3y 12m 3y • Variable/Adjustable: 40% Prime, 29% 5yr Tsy, 31% all other • Fixed: fixed rate through maturity Fixed Swapped to Variable Adjustable • Variable: rate will reset prior to 01/31/20 • Adjustable: adjustable rate that will reset after 01/31/20 18


 
GOODWILL & INTANGIBLE ASSETS Goodwill ($MM) Other Intangible Assets ($MM) 1 • Majority of goodwill on GWB’s balance sheet (84%) resulted • Existing intangible assets and related amortization have from the acquisition of GWB by National Australia Bank Ltd. in become minimal 2008 and was pushed down to GWB’s balance sheet • Future M&A activity could generate additional assets and • Recognizing an impairment, which management does not amortization expense believe currently exists, is the only opportunity to eliminate the NAB-related goodwill $20.0 $20.0 $18.0 HF Financial, $41 $16.0 $15.0 Current acquisitions, $2 $14.0 GWB acquisitions $12.0 pre-IPO, $76 $10.0 $10.0 $8.0 $6.0 $5.0 $4.0 $2.0 $0.0 $0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 NAB acquisition of GWB, $622 2026 & thereafter Year-end balance (left axis) Annual amortization (right axis) 1 Balances and amortization expense at September 30 and for the respective fiscal years. Amounts for fiscal years 2020 – 2026 & thereafter are forecast based on existing intangible assets and could 19 change materially based on future acquisitions.


 
Income Statement Summary


 
REVENUE Revenue Highlights Net Interest Income ($MM) and NIM • Net interest income (FTE) decreased 1.4% to $106.7 million compared to prior quarter $108.2 ◦ Loan interest income included a $2.0 million net $106.7 $106.4 $106.7 reversal of interest income on loans moved to nonaccrual during the quarter 3.70% 3.68% 3.81% • NIM (FTE) adjusted NIM (FTE) 2 was down 2 and 4 basis 3.68% points, respectively, compared to 4QFY19 3.69% 3.65% 3.81% • Noninterest income increased $0.6 million compared to prior 3.65% quarter due to wealth management fees increasing as a result of the purchase and assumption of management of trust assets in Colorado 4QFY19 1QFY20 FYTD 19 FYTD 20 Net Interest Income (FTE) NIM (FTE) Adjusted NIM (FTE) ² NIM Analysis Noninterest Income 1 Service charges Other Service fees 0.01% $1,481 3.70% 0.02% 3.68% $2,569 0.14% 0.03% 3.69% 3.65% Wealth management (0.14)% $2,964 (0.07)% (0.03)% OD/NSF fees $3,986 Mortgage banking income, net $1,612 Loans Other 4QFY19 Deposits 1QFY20 Derivatives Borrowings $1,165 Brokered CDs Interchange income $3,373 Cash & Investments Nonaccrual Interest 1 Chart excludes changes related to loans and derivatives at fair value which netted $(1.4) million for the quarter and gain/loss on sale of securities. Dollars in thousands. NIM (FTE) Adjusted NIM (FTE) ² 2 Adjusted NIM (FTE) is a non-GAAP measure. See appendix for reconciliations. 21


 
EARNINGS, EXPENSES & PROVISION Highlights Net Income ($MM) • Net income of $43.3 million, a decrease of 13.9% over 4QFY19 $50.3 $45.8 $44.5 • Higher provision for loan losses during the quarter due $43.3 mainly to an increase in specific reserves in the agriculture, CRE and commercial non-real estate $26.8 segments • ROAA of 1.34% and 15.0% ROTCE 1 for the quarter 1.55% 1.48% 1.44% 1.34% • Efficiency ratio 1 was 46.2% for the quarter 0.84% • Noninterest expense remained stable from 4QFY19 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 Net Income Adjusted Net Income ROAA Noninterest Expense ($MM) Provision for Loan Losses ($MM) Sustained peer-leading $8.1 $8.1 efficiency ratio 1, 2 $55.2 $56.9 $57.1 $56.9 $5.2 46.1% 46.2% 44.5% 46.2% $2.0 4QFY19 1QFY20 FYTD 19 FYTD 20 4QFY19 1QFY20 FYTD 19 FYTD 20 Noninterest expense Efficiency Ratio 1 2 ROTCE and efficiency ratio are non-GAAP measures. See appendix for reconciliations. See appendix for Peer Group listing; data sourced from SNL Financial. 22


 
PROVEN BUSINESS STRATEGY Focused Business Banking Franchise with Agribusiness Experience Attract and Retain High-Quality Relationship Bankers Invest in Organic Growth While Optimizing Footprint Deepen Customer Relationships Explore Accretive Strategic Acquisition Opportunities Strong Profitability Driven by a Highly Efficient Operating Model Strong Capital Generation and Attractive Dividend Focus on Credit and Key Asset Quality Metrics 23


 
DISCLOSURES Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements about Great Western Bancorp, Inc.’s expectations, beliefs, plans, strategies, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipates,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “views,” “intends” and similar words or phrases. In particular, the statements included in this Presentation concerning Great Western Bancorp, Inc.’s expected performance and strategy, the outlook for its agricultural lending segment, strategies for managing troubled loans, and the interest rate environment are not historical facts and are forward-looking. Accordingly, the forward-looking statements in this Presentation are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties, that could cause actual results to differ materially from those expressed. All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations, and, therefore, you are cautioned not to place undue reliance on such statements. Any forward- looking statements are qualified in their entirety by reference to the factors discussed in the sections titled “Item 1A. Risk Factors” and "Cautionary Note Regarding Forward-Looking Statements" in Great Western Bancorp, Inc.’s Annual Report on Form 10-K for the most recently ended fiscal year, and in other periodic filings with the Securities and Exchange Commission. Further, any forward-looking statement speaks only as of the date on which it is made, and Great Western Bancorp, Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. Non-GAAP Financial Measures: This presentation contains non-GAAP measures which our management relies on in making financial and operational decisions about our business and which exclude certain items that we do not consider reflective of our business performance. We believe that the presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. These non-GAAP measures should be considered in context with our GAAP results. A reconciliation of these non-GAAP measures appears in our earnings release dated January 28, 2020 and in Appendix 1 to this presentation. Our earnings release and this presentation are available in the Investor Relations section of our website at www.greatwesternbank.com. Our earnings release and this presentation are also available as part of our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 28, 2020. Explanatory Note: In this presentation, all financial information presented refers to the financial results of Great Western Bancorp, Inc. combined with those of its predecessor, Great Western Bancorporation, Inc. 24


 
Appendix 1 Non-GAAP Measures


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Tangible net income and return on average tangible common equity: x x x x x Net income - GAAP $ 43,274 $ 50,285 $ 26,783 $ 44,511 $ 45,786 Add: Amortization of intangible assets, net of tax 377 315 335 343 344 Tangible net income $ 43,651 $ 50,600 $ 27,118 $ 44,854 $ 46,130 Average common equity $ 1,908,519 $ 1,885,785 $ 1,864,132 $ 1,822,940 $ 1,817,052 Less: Average goodwill and other intangible assets 748,146 745,349 745,718 746,107 746,503 Average tangible common equity $ 1,160,373 $ 1,140,436 $ 1,118,414 $ 1,076,833 $ 1,070,549 Return on average common equity * 9.0 % 10.6 % 5.8 % 9.9 % 10.0 % Return on average tangible common equity ** 15.0 % 17.6 % 9.7 % 16.9 % 17.1 % * Calculated as net income - GAAP divided by average common equity. Annualized for partial-year periods. ** Calculated as tangible net income divided by average tangible common equity. Annualized for partial-year periods. x x x x x x Adjusted net interest income and adjusted net interest margin (fully-tax equivalent basis): x x x x x Net interest income - GAAP $ 105,173 $ 106,709 $ 105,629 $ 103,475 $ 104,894 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Net interest income (FTE) 106,696 108,196 107,053 104,917 106,384 Add: Current realized derivative gain (loss) (890) (127) 321 405 21 Adjusted net interest income (FTE) $ 105,806 $ 108,069 $ 107,374 $ 105,322 $ 106,405 Average interest-earning assets $ 11,543,610 $ 11,609,823 $ 11,617,521 $ 11,345,559 $ 11,086,800 Net interest margin (FTE) * 3.68 % 3.70 % 3.70 % 3.75 % 3.81 % Adjusted net interest margin (FTE) ** 3.65 % 3.69 % 3.71 % 3.76 % 3.81 % * Calculated as net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. ** Calculated as adjusted net interest income (FTE) divided by average interest earning assets. Annualized for partial-year periods. 26


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Adjusted interest income and adjusted yield (fully-tax equivalent basis), on non-ASC 310-30 loans: x x x x x Interest income - GAAP $ 117,709 $ 124,923 $ 124,098 $ 121,528 $ 120,361 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Interest income (FTE) 119,232 126,410 125,522 122,970 121,851 Add: Current realized derivative gain (loss) (890) (127) 321 405 21 Adjusted interest income (FTE) $ 118,342 $ 126,283 $ 125,843 $ 123,375 $ 121,872 Average non-ASC 310-30 loans $ 9,554,161 $ 9,693,395 $ 9,699,433 $ 9,615,096 $ 9,435,901 Yield (FTE) * 4.96 % 5.17 % 5.19 % 5.19 % 5.12 % Adjusted yield (FTE) ** 4.93 % 5.17 % 5.20 % 5.20 % 5.12 % * Calculated as interest income (FTE) divided by average loans. Annualized for partial-year periods. ** Calculated as adjusted interest income (FTE) divided by average loans. Annualized for partial-year periods. x x x x x x Efficiency ratio: x x x x x Total revenue - GAAP $ 120,906 $ 121,732 $ 116,395 $ 121,698 $ 121,614 Add: Tax equivalent adjustment 1,523 1,487 1,424 1,442 1,490 Total revenue (FTE) $ 122,429 $ 123,219 $ 117,819 $ 123,140 $ 123,104 Noninterest expense $ 56,930 $ 55,212 $ 56,000 $ 56,580 $ 57,106 Less: Amortization of intangible assets 427 366 385 394 394 Tangible noninterest expense $ 56,503 $ 54,846 $ 55,615 $ 56,186 $ 56,712 Efficiency ratio * 46.2 % 44.5 % 47.2 % 45.6 % 46.1 % * Calculated as the ratio of tangible noninterest expense to total revenue (FTE). 27


 
NON-GAAP MEASURES At or for the three months ended: December 31, September 30, June 30, March 31, December 31, 2019 2019 2019 2019 2018 Tangible common equity and tangible common equity to tangible assets: x x x x x Total stockholders' equity $ 1,920,669 $ 1,900,249 $ 1,881,128 $ 1,852,394 $ 1,812,008 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible common equity $ 1,171,188 $ 1,155,052 $ 1,135,565 $ 1,106,447 $ 1,065,667 Total assets $ 12,845,520 $ 12,788,301 $ 12,954,896 $ 12,830,162 $ 12,573,641 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible assets $ 12,096,039 $ 12,043,104 $ 12,209,333 $ 12,084,215 $ 11,827,300 Tangible common equity to tangible assets 9.7 % 9.6 % 9.3 % 9.2 % 9.0 % x x x x x x Tangible book value per share: x x x x x Total stockholders' equity $ 1,920,669 $ 1,900,249 $ 1,881,128 $ 1,852,394 $ 1,812,008 Less: Goodwill and other intangible assets 749,481 745,197 745,563 745,947 746,341 Tangible common equity $ 1,171,188 $ 1,155,052 $ 1,135,565 $ 1,106,447 $ 1,065,667 Common shares outstanding 56,382,915 56,283,659 56,939,032 56,938,435 56,938,435 Book value per share - GAAP $ 34.06 $ 33.76 $ 33.04 $ 32.53 $ 31.82 Tangible book value per share $ 20.77 $ 20.52 $ 19.94 $ 19.43 $ 18.72 28


 
Appendix 2 Agriculture Lending & Economy


 
AG LENDING 101 Overview • Underwriting identical to comparable C&I and CRE loans where cash flow is the primary repayment source and loan and line amounts subject to loan value ("LTV") limits and "normalized" collateral values • Liquid markets typically exist for ag-related collateral which is the secondary repayment source (e.g., harvested grain or grain inventory, cattle, farm equipment and land sale/lease) in foreclosure scenarios • Many market and economic conditions can influence the profitability of individual borrowers; key to partner with seasoned producers that manage their own cost structure diligently Grains • 29% of the Ag loan portfolio or approx. 6% of overall loan portfolio • Most borrowers in footprint in MW states (IA, SD, NE) ◦ Corn and soybeans primary crop production • Corn and soybean prices spiked beginning in late 2007 and remained high for 3-4 years ◦ Drove cost of production higher as land and other input costs were in high demand; ◦ Gross value of corn production per acre increased 138% from 2006 to 2011 (USDA) • Crop prices have reverted to more sustainable long-term levels but costs have not reset as quickly • Federally-subsidized crop insurance protects a portion of grain producers' projected revenue each year Source: Bloomberg LLP 30


 
AG LENDING 101 Beef Cattle • 20% of the Ag loan portfolio or approx. 4% overall, primarily in SD • Beef cattle producers include: ◦ Cow-calf operators that breed cattle and raise calves to a certain weight (typically 500-600 lbs.; "Feeder Cattle") ◦ Feedlots who purchase feeder cattle and finish them for sale to processors (typically 1200+lbs.; "Live Cattle") ◦ GWB portfolio split roughly 73/27 as of December 31, 2019 • Industry is very cyclical driven by supply and demand (e.g., prices paid by feedlots dictate how many calves are bred and which stock cattle are retained for breeding vs. slaughtered) Dairy • 27% of the Ag loan portfolio or approx. 6% overall, primarily in AZ • Very cyclical pricing over time; producers that manage costs, are vertically integrated and use risk management techniques are best suited to generate profitability over time • Arizona has a milk quota system that provides some support for milk price margins for units of production providing limited stability for producers Source: Bloomberg LLP 31


 
AG ECONOMY Highlights • Industry balance sheets remain strong with debt/asset and debt/equity ratios below long-term averages and significantly below 1980s levels that precipitated, and resulted, from the period of high losses in the early 1980s • Ag sector net charge-offs, which have historically been low for the industry and for Great Western Bank, are rising Farm Balance Sheet Overview 1 30% $3,500 25% $3,000 $2,500 20% $2,000 15% $1,500 10% $1,000 5% $500 —% $— 1975197619771978 1979198019811982 1983198419851986 1987198819891990 1991199219931994 1995199619971998 1999200020012002 2003200420052006 2007200820092010 2011201220132014 2015201620172018 2019F Farm sector debt ($MM) Farm sector equity ($MM) Debt to asset ratio (%) Debt to equity ratio (%) 1 Source: USDA Economic Research Service; 2019 is forecast data 32


 
Appendix 3 Peer Group


 
PEER GROUP • BancorpSouth Bank • Fulton Financial Corporation • Banner Corporation • Glacier Bancorp, Inc. • Berkshire Hills Bancorp, Inc. • Heartland Financial USA, Inc. • Columbia Banking System, Inc. • Old National Bancorp • Community Bank System, Inc. • Renasant Corporation • Customers Bancorp, Inc. • Trustmark Corporation • CVB Financial Corp. • UMB Financial Corporation • First BanCorp. • United Bankshares, Inc. • First Midwest Bancorp, Inc. • United Community Banks, Inc. 34


 
Appendix 4 Accounting for Loans at FV and Related Derivatives


 
LOANS AT FAIR VALUE & RELATED DERIVATIVES Overview • For certain loans with an original term greater than 5 years with a fixed rate to the customer, Great Western Bank (“GWB”) has entered into equal and offsetting fixed-to-floating interest rate swaps with two US counterparties • Total size of the portfolio was $772.2 million at December 31, 2019 GWB has elected the Fair Value Option (ASC 825) on these loans and applies a similar treatment to the related derivatives: ◦ Changes in the fair value of the loans and the derivatives and the current period realized cost (benefit) of the derivatives (i.e., the net pay fixed/receive floating settlement) are recorded in earnings through noninterest income ◦ This differs significantly from most peers who have elected Hedge Accounting treatment ◦ The historical election is irrevocable so the concept will be present for the foreseeable future in GWB’s financial statements even if different accounting elections are made on future originations ◦ Management presents non-GAAP measures to provide more clarity on the underlying economics Summary Income Statement Line Item: Net (decrease) increase in fair value Net realized and unrealized gain (loss) of loans at fair value on derivatives Net Relationship Notes (Decrease) increase in FV related to interest rates $ (12,799) $ 12,799 $ — 1 (Decrease) increase in FV related to credit $ (2,134) $ 389 $ (1,745) 2 Increase in SWAP fees $ — $ 1,218 $ 1,218 3 Current period realized cost of derivatives $ — $ (890) $ (890) 4 Subtotal, loans at FV and related derivatives $ (14,933) $ 13,516 $ (1,417) 5 1 Equal and offsetting each period. Changes in the FV of each financial asset and liability driven by current compared to contractual rates. 2 Management records an adjustment for credit risk in noninterest income based on loss history for similar loans, adjusted for an assessment of existing market conditions for each loan segment. The FV adjustment related to credit is not included in the ALLL but loans are included in the ALLL coverage ratio denominator. 3 Swap fees are fees related to transacting interest rate swaps and other interest rate derivatives. 4 Current period actual cost of fixed-to-float interest rate swaps. Within non-GAAP financial measures, management reclassifies this component to interest income, resulting in adjusted interest income, adjusted net interest income and adjusted NIM, reflecting the underlying economics of the transactions. All else equal, this drag on earnings will reduce as short-term LIBOR rates increase. 5 While US GAAP mandates the presentation of these items in noninterest income, management believes the residual net amount economically represents the net credit exposure of this segment of the portfolio - presented as a "credit-related charge" in the earnings release and elsewhere (see note (2)) - and the current period derivative cost which should be analyzed relative to gross interest income received from the loan customers (see note (4)) as presented in non-GAAP measures. 36


 
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