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GREAT WESTERN BANK RESULTS
Great Western Bank (GWB) offers a range of traditional banking and wealth management products to retail, business and agribanking customers in the United States. GWB has 197 branches in seven states in the midwest of the United States, over 1,500 employees and more than 400,000 customers.
STRATEGY
Our strategy is to continue to grow, with an increased focus on small to medium sized corporates and agribusiness.
PERFORMANCE
In difficult economic conditions, GWB posted cash earnings of US$67 million and underlying profit of US$149 million. Our SME and agribusiness strategies made strong contributions. Our agribusiness loan portfolio now totals US$923 million and represents 17% of the loan portfolio. Lending remained fully deposit funded, with a ratio of retail deposits to gross loans and acceptances of 111%.
Customer satisfaction is a key driver of our business success. In each region where GWB operates, our annual customer satisfaction survey saw customers rate us higher at 88.1% than the market average of 81.9% for other financial institutions.
During the year, GWB made two strategic acquisitions. In April, we acquired F&M Bank in Iowa, adding US$410 million in deposits, US$109 million in performing loans and ten branches in a prime agricultural area of Iowa. In June, GWB acquired certain assets and liabilities of TierOne Bank in Nebraska. The acquisition adds 62 branches, and approximately US$1.6 billion in loans and US$1.9 billion in deposits. As part of the transaction, GWB entered into a loss share agreement with the US Federal Deposit Insurance Corporation (FDIC). The FDIC has agreed to fund 80% of credit losses on covered assets (mainly loans) for defined periods.
The integration of acquisitions made in 2009 – First Community Bank in Colorado and the Canon City branch of Wachovia Bank – has been successful, with improved operating efficiencies and deposit growth of more than 20% achieved in the first year of operation.