| Over a week ago | ||||
JPMorgan analyst Janet… JPMorgan analyst Janet Lee upgraded Great Western to Neutral from Underweight with a price target of $26, up from $19. Great Western reported an improvement in underlying asset quality metrics for Q4, Lee tells investors in a research note. On an overall basis, the company has hit an "inflection point" on credit with the direction of its nonaccrual loans more likely to trend downward from here, led by improving asset quality for the agriculture portfolio as well as the more favorable outlook for the hospitality sector, says the analyst. | ||||
JPMorgan analyst Janet… JPMorgan analyst Janet Lee upgraded Great Western Bancorp to Neutral from Underweight with a $26 price target. | ||||
| Over a month ago | ||||
Reports Q1 tangible book… Reports Q1 tangible book value per share $19.28. Reports Q1 CET1 capital ratio 12%. Reports Q1 net charge-offs .19% "Our quarterly results reflect the meaningful progress in key areas over the past several months," said Mark Borrecco, president and CEO. "Our focus on credit risk management resulted in a 10.0% decrease in nonaccrual loans. We reduced our hotel (excluding casino hotels) portfolio by 20.2% through multiple sales at a 12.0% discount to loan value, and our deferrals tracked lower to 1.29% of loans excluding Paycheck Protection Program ("PPP") loans. Our adoption of CECL allowed us to build an ACL to total loans ratio of 3.50% (excluding PPP loans), and we managed funding and noninterest cost savings leading to $66.3 million of pre-tax pre-provision income2. Our conservative and measured actions helped further strengthen our total capital position to 14.3%." | ||||
| Over a quarter ago | ||||
Net interest income was… Net interest income was $107.5 million for the quarter, a decrease of $0.3 million, or 0.3%, from the prior quarter. Interest income was lower by $3.0 million as a result of decreases in loan interest of $1.8 million and securities interest of $1.2 million, primarily as a result of repricing in a lower rate environment. The decrease in interest income was offset with a $2.7 million reduction in interest expense as a result of a $2.2 million decrease in deposit interest due to lower rates on interest-bearing deposits combined with time deposit runoff, and a $0.5 million decrease in interest as a result of a reduction in higher interest borrowings. Net interest margin was 3.51% for the quarter, a decrease of 6 basis points from the prior quarter. Adjusted net interest margin 2, which adjusts for the realized gain (loss) on interest rate swaps, was 3.40% for the quarter, a decrease of 7 basis points from the prior quarter. Net interest margin declined a net 16 basis points as yields on the securities and loan portfolios decreased 27 and 12 basis points, respectively, due to renewing volumes impacted by a lower repricing environment, combined with a benefit from PPP loan income and lower nonaccrual interest reversals. Offsetting that impact was a 7 basis point lift from a 24% decrease in deposit yields by 9 basis points from lower offering rates and improved mix. In addition, there was a 2 basis point lift from reduced borrowings, including the nominal yield impact resulting from the payoff of $205 million in higher interest FHLB borrowings offset with a reduction in securities and cash late in the quarter. | ||||
DA Davidson analyst… DA Davidson analyst Jeffrey Rulis upgraded Great Western to Buy from Neutral with a $16 price target, up from $14. With the stock currently trading under one-third of Great Western's historical average, Rulis sees an opportunity ahead with the culmination and clearing of various hurdles as the fiscal year closes. | ||||
DA Davidson analyst… DA Davidson analyst Jeffrey Rulis upgraded Great Western to Buy from Neutral with a $16 price target. | |
Reports Q3 tangible book… Reports Q3 tangible book value per share $20.98. Reports Q3 net charge-offs 0.37%. Reports Q3 CET1 capital ratio 10.6%. "While the business environment remained challenging this quarter, we focused on meeting customer needs and continued to find ways to be more agile with our remote workforce," said Mark Borrecco, president and CEO. "Additionally, our new Chief Credit Officer has been essential in assessing our loan portfolio and developing a strategy to improve our credit performance. Finally, we generated core profits despite a significant credit charge, which further added to our stable capital position." | |
Great Western is down… Great Western is down -11.2%, or -$1.57 to $12.45. | |
JPMorgan analyst Janet… JPMorgan analyst Janet Lee downgraded Great Western to Underweight from Neutral with a price target of $15, down from $19. With credit risk more elevated than peers, the stock offers more risk than reward, Lee tells investors in a research note. |