2020 understanding bank financial statements

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Executive Development Program 1 2020 Understanding Bank Financial Statements Case Study 1 Jeffery W. Johnson BANKERS INSIGHT GROUP, LLC [email protected]

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Page 1: 2020 Understanding Bank Financial Statements

Executive Development Program 1

2020

Understanding Bank Financial Statements Case Study 1

Jeffery W. Johnson BANKERS INSIGHT GROUP, LLC [email protected]

Page 2: 2020 Understanding Bank Financial Statements

Executive Development Program 2

Greeting EDP Participants

Welcome to the 2020 Executive Development Program ("EDP"). I am delighted to be

a part of the EDP and have an opportunity to meet future bank leaders from various

states.

An important feature of the EDP is acquiring an understanding of financial

institutions' financial statements. The decisions you will make as part of your

bank’s management team will have a definite impact upon the financial

performance of your institution and will be reflected on the financial statements.

To enhance your understanding of bank financial statements, there are two

homework assignment case studies for this session.

This first case study requires an understanding of the Fiscal Year End 9/30/2019

Annual Report for Great Western Bancorp, Inc. (“GWBI”). This midwestern

institution is a regional mid-size bank that provides financial reports worthy to be

utilized as a good case study.

Selected information from the entire Annual Report of GWBI is attached. As such, the

pages are not numbered sequentially from the first to the last page however, each

section you are required to review are numbered sequentially within that section.

Your assignment is as follows:

1. Read the background on GWBI in the Business section (pages 6 through 8) to gain

an understanding of the bank’s business strategy and list any key observations that

would cause you to question management if given an opportunity.

2. Review the Financial Highlights on the first page noting any significant trends and

list any factors that raises your curiosity or would cause you to question

management if given an opportunity

3. Review the financial statements of GWBI, noting the types of assets, liability and

capital accounts and their trend. Supplement your understanding of the assets,

liability and capital accounts by reviewing the Notes to the Financial Statements

that relate to each account. Concentrate on the major accounts including

Investments, Loans, Allowance for Loans & Lease Losses and Capital.

4. After your review of all financial data:

a. What is your overall impression of GWBI?

b. Do you believe the financial statements reflect the strategies outlined by

Management? If yes, what metric did you use to reach this conclusion? If

no, why?

c. Would you personally invest in GWBI?,

Page 3: 2020 Understanding Bank Financial Statements

Executive Development Program 3

This assignment may be a totally new experience for you, therefore, please give it your

best effort. GWBI will be covered during the session and it will be more meaningful if

you invest time to become familiar with Great Western Bancorp, Inc.

Page 4: 2020 Understanding Bank Financial Statements

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Page 5: 2020 Understanding Bank Financial Statements

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Page 6: 2020 Understanding Bank Financial Statements

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Page 16: 2020 Understanding Bank Financial Statements

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Page 19: 2020 Understanding Bank Financial Statements

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Page 20: 2020 Understanding Bank Financial Statements

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Page 21: 2020 Understanding Bank Financial Statements

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