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Loan growth boosts Great Western Bank profits in 2nd quarter


Great Western Bancorp Inc. reported first-quarter profits of $30.5 million, or 55 cents per share, compared with $26.7 million, or 46 cents per share, for the year-ago quarter.

The increase was driven by higher net interest income, primarily attributable to loan growth and a reduction in non-interest expenses, according to a release. Total loans grew $205.5 million, or 2.8 percent, during the quarter, with agriculture loans increasing 5.8 percent to $107.8 million and commercial real estate loans increasing 4.1 percent to $116.3 million.

Great Western’s efficiency ratio improved to 45.1 percent from 48.5 percent a year ago, driven by a 4.5 percent increase in total revenue and a 2.8 percent reduction in tangible non-interest expense. The efficiency ratio is a measure of a bank’s overhead compared with revenues. Sioux Falls, S.D.-based Great Western Bancorp is the parent of Great Western Bank, which has eight branches in Greater Des Moines.

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