Banner Corporation Reports Net Income of $37.6 Million, or $1.09 Per Diluted Share, for First Quarter 2024; Declares Quarterly Cash Dividend of $0.48 Per Share
Banner announced that its Board of Directors declared a regular quarterly cash dividend of
“Banner’s operating performance for the first quarter of 2024 reflects our super community bank business strategy of emphasizing a moderate risk profile and strong relationship banking, positioning the Company to weather current market conditions,” said
At
First Quarter 2024 Highlights
-
Revenues were
$144.6 million for the first quarter of 2024, compared to$152.5 million in the preceding quarter and$162.6 million in the first quarter a year ago. -
Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities and the net change in valuation of financial instruments) was
$150.4 million in the first quarter of 2024, compared to$157.1 million in the preceding quarter and$170.4 million in the first quarter a year ago. -
Net interest income was
$133.0 million in the first quarter of 2024, compared to$138.4 million in the preceding quarter and$153.3 million in the first quarter a year ago. - Net interest margin, on a tax equivalent basis, was 3.74%, compared to 3.83% in the preceding quarter and 4.30% in the first quarter a year ago.
-
Mortgage banking operations revenue was
$2.3 million for the first quarter of 2024, compared to$5.4 million in the preceding quarter and$2.7 million in the first quarter a year ago. - Return on average assets was 0.97%, compared to 1.09% in the preceding quarter and 1.44% in the first quarter a year ago.
-
Net loans receivable increased 1% to
$10.72 billion atMarch 31, 2024 , compared to$10.66 billion atDecember 31, 2023 , and increased 7% compared to$10.02 billion atMarch 31, 2023 . -
Non-performing assets were
$29.9 million , or 0.19% of total assets, atMarch 31, 2024 , compared to$30.1 million , or 0.19% of total assets, atDecember 31, 2023 and$27.1 million , or 0.17% of total assets, atMarch 31, 2023 . -
The allowance for credit losses - loans was
$151.1 million , or 1.39% of total loans receivable, as ofMarch 31, 2024 , compared to$149.6 million , or 1.38% of total loans receivable, as ofDecember 31, 2023 and$141.5 million , or 1.39% of total loans receivable, as ofMarch 31, 2023 . -
Total deposits increased to
$13.16 billion atMarch 31, 2024 , compared to$13.03 billion atDecember 31, 2023 and$13.15 billion atMarch 31, 2023 . Core deposits represented 89% of total deposits atMarch 31, 2024 . -
Banner Bank’s estimated uninsured deposits were approximately 31% of total deposits at both
March 31, 2024 andDecember 31, 2023 . -
Banner Bank’s estimated uninsured deposits, excluding collateralized public deposits and affiliate deposits, were approximately 28% of total deposits at both
March 31, 2024 andDecember 31, 2023 . -
Available borrowing capacity was
$5.05 billion atMarch 31, 2024 , compared to$4.65 billion atDecember 31, 2023 . -
On-balance sheet liquidity was
$2.77 billion atMarch 31, 2024 , compared to$2.93 billion atDecember 31, 2023 . -
Dividends paid to shareholders were
$0.48 per share in the quarter endedMarch 31, 2024 . -
Common shareholders’ equity per share increased 1% to
$48.39 atMarch 31, 2024 , compared to$48.12 at the preceding quarter end, and increased 8% from$44.64 atMarch 31, 2023 . -
Tangible common shareholders’ equity per share* increased 1% to
$37.40 atMarch 31, 2024 , compared to$37.09 at the preceding quarter end, and increased 12% from$33.52 atMarch 31, 2023 .
*Non-GAAP (Generally Accepted Accounting Principles) financial measure; See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.
Income Statement Review
Net interest income was
Average yields on interest-earning assets increased 10 basis points to 5.16% for the first quarter of 2024, compared to 5.06% for the preceding quarter, and increased compared to 4.68% in the first quarter a year ago. Average loan yields increased 10 basis points to 5.87%, compared to 5.77% in the preceding quarter, and increased compared to 5.38% in the first quarter a year ago. The increase in average yields on interest-earning assets, particularly loans, during the current quarter reflects the benefit of new loans being originated at higher interest rates. Total deposit costs increased 19 basis points to 1.37% in the first quarter of 2024, compared to 1.18% in the preceding quarter, and compared to 0.28% in the first quarter a year ago. The increase in the cost of deposits was due to a larger percentage of core deposits being in interest bearing accounts as well as an increase in the mix of higher cost retail CDs. The average rate paid on borrowings increased 21 basis points to 4.98% in the first quarter of 2024, compared to 4.77% in the preceding quarter, and compared to 3.41% in the first quarter a year ago. The total cost of funding liabilities increased 22 basis points to 1.53% during the first quarter of 2024, compared to 1.31% in the preceding quarter, and compared to 0.40% in the first quarter a year ago.
A
Total non-interest income was
Mortgage banking operations revenue, including gains on one- to four-family and multifamily loan sales and loan servicing fees, was
First quarter 2024, non-interest income included a
Total non-interest expense was
*Non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures.
Federal and state income tax expense totaled
Balance Sheet Review
Total assets decreased to
Total loans receivable increased to
Loans held for sale were
Total deposits increased to
Banner Bank’s estimated uninsured deposits were
Banner had
Subordinated notes, net of issuance costs, were
At
*Non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.
Credit Quality
The allowance for credit losses - loans was
Substandard loans were
Total non-performing assets were
Conference Call
Banner will host a conference call on
About the Company
Forward-Looking Statements
When used in this press release and in other documents filed with or furnished to the
Factors that could cause Banner’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: (1) potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth, or increased political instability due to acts of war; (2) changes in the interest rate environment, including past increases in the
RESULTS OF OPERATIONS |
|
Quarters Ended |
||||||||||
(in thousands except shares and per share data) |
|
|
|
|
|
|
||||||
INTEREST INCOME: |
|
|
|
|
|
|
||||||
Loans receivable |
|
$ |
156,475 |
|
|
$ |
154,532 |
|
|
$ |
133,257 |
|
Mortgage-backed securities |
|
|
16,934 |
|
|
|
17,398 |
|
|
|
18,978 |
|
Securities and cash equivalents |
|
|
11,279 |
|
|
|
11,808 |
|
|
|
14,726 |
|
Total interest income |
|
|
184,688 |
|
|
|
183,738 |
|
|
|
166,961 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
||||||
Deposits |
|
|
44,613 |
|
|
|
39,342 |
|
|
|
9,244 |
|
|
|
|
2,972 |
|
|
|
1,870 |
|
|
|
1,264 |
|
Other borrowings |
|
|
1,175 |
|
|
|
1,125 |
|
|
|
381 |
|
Subordinated debt |
|
|
2,969 |
|
|
|
2,992 |
|
|
|
2,760 |
|
Total interest expense |
|
|
51,729 |
|
|
|
45,329 |
|
|
|
13,649 |
|
Net interest income |
|
|
132,959 |
|
|
|
138,409 |
|
|
|
153,312 |
|
PROVISION (RECAPTURE) FOR CREDIT LOSSES |
|
|
520 |
|
|
|
2,522 |
|
|
|
(524 |
) |
Net interest income after provision (recapture) for credit losses |
|
|
132,439 |
|
|
|
135,887 |
|
|
|
153,836 |
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
||||||
Deposit fees and other service charges |
|
|
11,022 |
|
|
|
9,560 |
|
|
|
10,562 |
|
Mortgage banking operations |
|
|
2,335 |
|
|
|
5,391 |
|
|
|
2,691 |
|
Bank-owned life insurance |
|
|
2,237 |
|
|
|
2,609 |
|
|
|
2,188 |
|
Miscellaneous |
|
|
1,892 |
|
|
|
1,159 |
|
|
|
1,640 |
|
|
|
|
17,486 |
|
|
|
18,719 |
|
|
|
17,081 |
|
Net loss on sale of securities |
|
|
(4,903 |
) |
|
|
(4,806 |
) |
|
|
(7,252 |
) |
Net change in valuation of financial instruments carried at fair value |
|
|
(992 |
) |
|
|
139 |
|
|
|
(552 |
) |
Total non-interest income |
|
|
11,591 |
|
|
|
14,052 |
|
|
|
9,277 |
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
||||||
Salary and employee benefits |
|
|
62,369 |
|
|
|
60,111 |
|
|
|
61,389 |
|
Less capitalized loan origination costs |
|
|
(3,676 |
) |
|
|
(3,871 |
) |
|
|
(3,431 |
) |
Occupancy and equipment |
|
|
12,462 |
|
|
|
12,200 |
|
|
|
11,970 |
|
Information and computer data services |
|
|
7,320 |
|
|
|
7,098 |
|
|
|
7,147 |
|
Payment and card processing services |
|
|
5,710 |
|
|
|
6,088 |
|
|
|
4,618 |
|
Professional and legal expenses |
|
|
1,530 |
|
|
|
2,267 |
|
|
|
2,121 |
|
Advertising and marketing |
|
|
1,079 |
|
|
|
1,686 |
|
|
|
806 |
|
Deposit insurance |
|
|
2,809 |
|
|
|
2,926 |
|
|
|
1,890 |
|
State and municipal business and use taxes |
|
|
1,304 |
|
|
|
1,372 |
|
|
|
1,300 |
|
Real estate operations, net |
|
|
(220 |
) |
|
|
47 |
|
|
|
(277 |
) |
Amortization of core deposit intangibles |
|
|
723 |
|
|
|
858 |
|
|
|
1,050 |
|
Miscellaneous |
|
|
6,231 |
|
|
|
5,839 |
|
|
|
6,038 |
|
Total non-interest expense |
|
|
97,641 |
|
|
|
96,621 |
|
|
|
94,621 |
|
Income before provision for income taxes |
|
|
46,389 |
|
|
|
53,318 |
|
|
|
68,492 |
|
PROVISION FOR INCOME TAXES |
|
|
8,830 |
|
|
|
10,694 |
|
|
|
12,937 |
|
NET INCOME |
|
$ |
37,559 |
|
|
$ |
42,624 |
|
|
$ |
55,555 |
|
Earnings per common share: |
|
|
|
|
|
|
||||||
Basic |
|
$ |
1.09 |
|
|
$ |
1.24 |
|
|
$ |
1.62 |
|
Diluted |
|
$ |
1.09 |
|
|
$ |
1.24 |
|
|
$ |
1.61 |
|
Cumulative dividends declared per common share |
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
||||||
Basic |
|
|
34,391,564 |
|
|
|
34,381,780 |
|
|
|
34,239,533 |
|
Diluted |
|
|
34,521,105 |
|
|
|
34,472,155 |
|
|
|
34,457,869 |
|
Increase in common shares outstanding |
|
|
46,852 |
|
|
|
2,420 |
|
|
|
114,522 |
|
FINANCIAL CONDITION |
|
|
|
|
|
|
|
Percentage Change |
||||||||||
(in thousands except shares and per share data) |
|
|
|
|
|
|
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
168,427 |
|
|
$ |
209,634 |
|
|
$ |
194,629 |
|
|
(19.7 |
)% |
|
(13.5 |
)% |
Interest-bearing deposits |
|
|
40,849 |
|
|
|
44,830 |
|
|
|
48,363 |
|
|
(8.9 |
)% |
|
(15.5 |
)% |
Total cash and cash equivalents |
|
|
209,276 |
|
|
|
254,464 |
|
|
|
242,992 |
|
|
(17.8 |
)% |
|
(13.9 |
)% |
Securities - trading |
|
|
— |
|
|
|
— |
|
|
|
28,591 |
|
|
nm |
|
(100.0 |
)% |
|
Securities - available for sale, amortized cost |
|
|
2,244,939 |
|
|
|
2,373,783 |
|
|
|
2,653,860 |
|
|
(5.4 |
)% |
|
(15.4 |
)% |
Securities - held to maturity, fair value |
|
|
1,038,312 |
|
|
|
1,059,055 |
|
|
|
1,109,595 |
|
|
(2.0 |
)% |
|
(6.4 |
)% |
Total securities |
|
|
3,283,251 |
|
|
|
3,432,838 |
|
|
|
3,792,046 |
|
|
(4.4 |
)% |
|
(13.4 |
)% |
FHLB stock |
|
|
11,741 |
|
|
|
24,028 |
|
|
|
16,800 |
|
|
(51.1 |
)% |
|
(30.1 |
)% |
Securities purchased under agreements to resell |
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
|
nm |
|
(100.0 |
)% |
|
Loans held for sale |
|
|
9,357 |
|
|
|
11,170 |
|
|
|
49,016 |
|
|
(16.2 |
)% |
|
(80.9 |
)% |
Loans receivable |
|
|
10,869,096 |
|
|
|
10,810,455 |
|
|
|
10,160,684 |
|
|
0.5 |
% |
|
7.0 |
% |
Allowance for credit losses – loans |
|
|
(151,140 |
) |
|
|
(149,643 |
) |
|
|
(141,457 |
) |
|
1.0 |
% |
|
6.8 |
% |
Net loans receivable |
|
|
10,717,956 |
|
|
|
10,660,812 |
|
|
|
10,019,227 |
|
|
0.5 |
% |
|
7.0 |
% |
Accrued interest receivable |
|
|
66,124 |
|
|
|
63,100 |
|
|
|
52,094 |
|
|
4.8 |
% |
|
26.9 |
% |
Property and equipment, net |
|
|
129,889 |
|
|
|
132,231 |
|
|
|
136,362 |
|
|
(1.8 |
)% |
|
(4.7 |
)% |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
— |
% |
|
— |
% |
Other intangibles, net |
|
|
4,961 |
|
|
|
5,684 |
|
|
|
8,390 |
|
|
(12.7 |
)% |
|
(40.9 |
)% |
Bank-owned life insurance |
|
|
306,600 |
|
|
|
304,366 |
|
|
|
299,754 |
|
|
0.7 |
% |
|
2.3 |
% |
Operating lease right-of-use assets |
|
|
40,834 |
|
|
|
43,731 |
|
|
|
47,106 |
|
|
(6.6 |
)% |
|
(13.3 |
)% |
Other assets |
|
|
365,169 |
|
|
|
364,846 |
|
|
|
346,695 |
|
|
0.1 |
% |
|
5.3 |
% |
Total assets |
|
$ |
15,518,279 |
|
|
$ |
15,670,391 |
|
|
$ |
15,533,603 |
|
|
(1.0 |
)% |
|
(0.1 |
)% |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest-bearing |
|
$ |
4,699,553 |
|
|
$ |
4,792,369 |
|
|
$ |
5,764,009 |
|
|
(1.9 |
)% |
|
(18.5 |
)% |
Interest-bearing transaction and savings accounts |
|
|
6,973,338 |
|
|
|
6,759,661 |
|
|
|
6,440,261 |
|
|
3.2 |
% |
|
8.3 |
% |
Interest-bearing certificates |
|
|
1,485,880 |
|
|
|
1,477,467 |
|
|
|
949,932 |
|
|
0.6 |
% |
|
56.4 |
% |
Total deposits |
|
|
13,158,771 |
|
|
|
13,029,497 |
|
|
|
13,154,202 |
|
|
1.0 |
% |
|
— |
% |
Advances from FHLB |
|
|
52,000 |
|
|
|
323,000 |
|
|
|
170,000 |
|
|
(83.9 |
)% |
|
(69.4 |
)% |
Other borrowings |
|
|
183,341 |
|
|
|
182,877 |
|
|
|
214,564 |
|
|
0.3 |
% |
|
(14.6 |
)% |
Subordinated notes, net |
|
|
89,456 |
|
|
|
92,851 |
|
|
|
99,046 |
|
|
(3.7 |
)% |
|
(9.7 |
)% |
Junior subordinated debentures at fair value |
|
|
66,586 |
|
|
|
66,413 |
|
|
|
74,703 |
|
|
0.3 |
% |
|
(10.9 |
)% |
Operating lease liabilities |
|
|
45,524 |
|
|
|
48,659 |
|
|
|
52,772 |
|
|
(6.4 |
)% |
|
(13.7 |
)% |
Accrued expenses and other liabilities |
|
|
211,578 |
|
|
|
228,428 |
|
|
|
191,326 |
|
|
(7.4 |
)% |
|
10.6 |
% |
Deferred compensation |
|
|
46,515 |
|
|
|
45,975 |
|
|
|
45,295 |
|
|
1.2 |
% |
|
2.7 |
% |
Total liabilities |
|
|
13,853,771 |
|
|
|
14,017,700 |
|
|
|
14,001,908 |
|
|
(1.2 |
)% |
|
(1.1 |
)% |
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock |
|
|
1,300,969 |
|
|
|
1,299,651 |
|
|
|
1,293,225 |
|
|
0.1 |
% |
|
0.6 |
% |
Retained earnings |
|
|
663,021 |
|
|
|
642,175 |
|
|
|
564,106 |
|
|
3.2 |
% |
|
17.5 |
% |
Accumulated other comprehensive loss |
|
|
(299,482 |
) |
|
|
(289,135 |
) |
|
|
(325,636 |
) |
|
3.6 |
% |
|
(8.0 |
)% |
Total shareholders’ equity |
|
|
1,664,508 |
|
|
|
1,652,691 |
|
|
|
1,531,695 |
|
|
0.7 |
% |
|
8.7 |
% |
Total liabilities and shareholders’ equity |
|
$ |
15,518,279 |
|
|
$ |
15,670,391 |
|
|
$ |
15,533,603 |
|
|
(1.0 |
)% |
|
(0.1 |
)% |
Common Shares Issued: |
|
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding at end of period |
|
|
34,395,221 |
|
|
|
34,348,369 |
|
|
|
34,308,540 |
|
|
|
|
|
||
Common shareholders’ equity per share (1) |
|
$ |
48.39 |
|
|
$ |
48.12 |
|
|
$ |
44.64 |
|
|
|
|
|
||
Common shareholders’ tangible equity per share (1) (2) |
|
$ |
37.40 |
|
|
$ |
37.09 |
|
|
$ |
33.52 |
|
|
|
|
|
||
Common shareholders’ tangible equity to tangible assets (2) |
|
|
8.50 |
% |
|
|
8.33 |
% |
|
|
7.59 |
% |
|
|
|
|
||
Consolidated Tier 1 leverage capital ratio |
|
|
10.71 |
% |
|
|
10.56 |
% |
|
|
9.96 |
% |
|
|
|
|
nm |
Not meaningful |
|||||
(1) |
Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding. |
|||||
(2) |
Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
|||||
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||
|
|
|
|
|
|
|
|
Percentage Change |
||||||||||
LOANS |
|
|
|
|
|
|
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate (CRE): |
|
|
|
|
|
|
|
|
|
|
||||||||
Owner-occupied |
|
$ |
905,063 |
|
|
$ |
915,897 |
|
|
$ |
865,705 |
|
|
(1.2 |
)% |
|
4.5 |
% |
Investment properties |
|
|
1,544,885 |
|
|
|
1,541,344 |
|
|
|
1,520,261 |
|
|
0.2 |
% |
|
1.6 |
% |
Small balance CRE |
|
|
1,159,355 |
|
|
|
1,178,500 |
|
|
|
1,179,749 |
|
|
(1.6 |
)% |
|
(1.7 |
)% |
Multifamily real estate |
|
|
809,101 |
|
|
|
811,232 |
|
|
|
696,864 |
|
|
(0.3 |
)% |
|
16.1 |
% |
Construction, land and land development: |
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial construction |
|
|
158,011 |
|
|
|
170,011 |
|
|
|
191,051 |
|
|
(7.1 |
)% |
|
(17.3 |
)% |
Multifamily construction |
|
|
573,014 |
|
|
|
503,993 |
|
|
|
362,425 |
|
|
13.7 |
% |
|
58.1 |
% |
One- to four-family construction |
|
|
495,931 |
|
|
|
526,432 |
|
|
|
584,655 |
|
|
(5.8 |
)% |
|
(15.2 |
)% |
Land and land development |
|
|
344,563 |
|
|
|
336,639 |
|
|
|
329,438 |
|
|
2.4 |
% |
|
4.6 |
% |
Commercial business: |
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial business |
|
|
1,262,716 |
|
|
|
1,255,734 |
|
|
|
1,266,047 |
|
|
0.6 |
% |
|
(0.3 |
)% |
Small business scored |
|
|
1,028,067 |
|
|
|
1,022,154 |
|
|
|
960,650 |
|
|
0.6 |
% |
|
7.0 |
% |
Agricultural business, including secured by farmland: |
|
|
|
|
|
|
|
|
|
|
||||||||
Agricultural business, including secured by farmland |
|
|
317,958 |
|
|
|
331,089 |
|
|
|
272,707 |
|
|
(4.0 |
)% |
|
16.6 |
% |
One- to four-family residential |
|
|
1,566,834 |
|
|
|
1,518,046 |
|
|
|
1,252,104 |
|
|
3.2 |
% |
|
25.1 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer—home equity revolving lines of credit |
|
|
597,060 |
|
|
|
588,703 |
|
|
|
564,334 |
|
|
1.4 |
% |
|
5.8 |
% |
Consumer—other |
|
|
106,538 |
|
|
|
110,681 |
|
|
|
114,694 |
|
|
(3.7 |
)% |
|
(7.1 |
)% |
Total loans receivable |
|
$ |
10,869,096 |
|
|
$ |
10,810,455 |
|
|
$ |
10,160,684 |
|
|
0.5 |
% |
|
7.0 |
% |
Loans 30 - 89 days past due and on accrual |
|
$ |
19,649 |
|
|
$ |
19,744 |
|
|
$ |
14,037 |
|
|
|
|
|
||
Total delinquent loans (including loans on non-accrual), net |
|
$ |
39,429 |
|
|
$ |
43,164 |
|
|
$ |
37,251 |
|
|
|
|
|
||
Total delinquent loans / Total loans receivable |
|
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.37 |
% |
|
|
|
|
||
LOANS BY GEOGRAPHIC LOCATION |
|
|
|
|
|
|
|
|
|
Percentage Change |
|||||||||||
|
|
|
|
|
|
|
|
Prior Qtr |
|
Prior Yr Qtr |
|||||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
5,091,912 |
|
|
46.9 |
% |
|
$ |
5,095,602 |
|
|
$ |
4,808,821 |
|
|
(0.1 |
)% |
|
5.9 |
% |
|
|
|
2,687,114 |
|
|
24.7 |
% |
|
|
2,670,923 |
|
|
|
2,490,666 |
|
|
0.6 |
% |
|
7.9 |
% |
|
|
|
2,013,453 |
|
|
18.5 |
% |
|
|
1,974,001 |
|
|
|
1,823,057 |
|
|
2.0 |
% |
|
10.4 |
% |
|
|
|
613,155 |
|
|
5.6 |
% |
|
|
610,064 |
|
|
|
565,335 |
|
|
0.5 |
% |
|
8.5 |
% |
|
|
|
72,652 |
|
|
0.7 |
% |
|
|
68,931 |
|
|
|
67,085 |
|
|
5.4 |
% |
|
8.3 |
% |
Other |
|
|
390,810 |
|
|
3.6 |
% |
|
|
390,934 |
|
|
|
405,720 |
|
|
— |
% |
|
(3.7 |
)% |
Total loans receivable |
|
$ |
10,869,096 |
|
|
100.0 |
% |
|
$ |
10,810,455 |
|
|
$ |
10,160,684 |
|
|
0.5 |
% |
|
7.0 |
% |
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||
(dollars in thousands) |
||||||||||||
LOAN ORIGINATIONS |
Quarters Ended |
|||||||||||
|
|
|
|
|
|
|||||||
Commercial real estate |
$ |
67,362 |
|
|
$ |
76,277 |
|
|
$ |
75,768 |
|
|
Multifamily real estate |
|
385 |
|
|
|
5,360 |
|
|
|
35,520 |
|
|
Construction and land |
|
437,273 |
|
|
|
382,905 |
|
|
|
247,842 |
|
|
Commercial business |
|
154,715 |
|
|
|
166,984 |
|
|
|
131,826 |
|
|
Agricultural business |
|
34,406 |
|
|
|
15,058 |
|
|
|
23,181 |
|
|
One-to four-family residential |
|
17,568 |
|
|
|
37,446 |
|
|
|
34,265 |
|
|
Consumer |
|
66,145 |
|
|
|
57,427 |
|
|
|
60,888 |
|
|
Total loan originations (excluding loans held for sale) |
$ |
777,854 |
|
|
$ |
741,457 |
|
|
$ |
609,290 |
|
|
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||
(dollars in thousands) |
||||||||||||
|
|
Quarters Ended |
||||||||||
CHANGE IN THE |
|
|
|
|
|
|
||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
|
|
|
|
|
||||||
Balance, beginning of period |
|
$ |
149,643 |
|
|
$ |
146,960 |
|
|
$ |
141,465 |
|
Provision for credit losses – loans |
|
|
1,424 |
|
|
|
3,821 |
|
|
|
774 |
|
Recoveries of loans previously charged off: |
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
1,389 |
|
|
|
129 |
|
|
|
184 |
|
One- to four-family real estate |
|
|
16 |
|
|
|
18 |
|
|
|
117 |
|
Commercial business |
|
|
781 |
|
|
|
237 |
|
|
|
119 |
|
Agricultural business, including secured by farmland |
|
|
106 |
|
|
|
16 |
|
|
|
109 |
|
Consumer |
|
|
159 |
|
|
|
131 |
|
|
|
169 |
|
|
|
|
2,451 |
|
|
|
531 |
|
|
|
698 |
|
Loans charged off: |
|
|
|
|
|
|
||||||
Construction and land |
|
|
— |
|
|
|
(933 |
) |
|
|
— |
|
One- to four-family real estate |
|
|
— |
|
|
|
(8 |
) |
|
|
(30 |
) |
Commercial business |
|
|
(1,809 |
) |
|
|
(310 |
) |
|
|
(1,158 |
) |
Consumer |
|
|
(569 |
) |
|
|
(418 |
) |
|
|
(292 |
) |
|
|
|
(2,378 |
) |
|
|
(1,669 |
) |
|
|
(1,480 |
) |
Net recoveries (charge-offs) |
|
|
73 |
|
|
|
(1,138 |
) |
|
|
(782 |
) |
Balance, end of period |
|
$ |
151,140 |
|
|
$ |
149,643 |
|
|
$ |
141,457 |
|
Net recoveries (charge-offs) / Average loans receivable |
|
|
0.001 |
% |
|
|
(0.011 |
)% |
|
|
(0.008 |
)% |
ALLOCATION OF |
|
|
|
|
|
|
||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
|
|
|
|
|
||||||
Commercial real estate |
|
$ |
43,555 |
|
|
$ |
44,384 |
|
|
$ |
42,975 |
|
Multifamily real estate |
|
|
9,293 |
|
|
|
9,326 |
|
|
|
8,475 |
|
Construction and land |
|
|
28,908 |
|
|
|
28,095 |
|
|
|
28,433 |
|
One- to four-family real estate |
|
|
20,432 |
|
|
|
19,271 |
|
|
|
15,736 |
|
Commercial business |
|
|
35,544 |
|
|
|
35,464 |
|
|
|
33,735 |
|
Agricultural business, including secured by farmland |
|
|
3,890 |
|
|
|
3,865 |
|
|
|
3,094 |
|
Consumer |
|
|
9,518 |
|
|
|
9,238 |
|
|
|
9,009 |
|
Total allowance for credit losses – loans |
|
$ |
151,140 |
|
|
$ |
149,643 |
|
|
$ |
141,457 |
|
Allowance for credit losses - loans / Total loans receivable |
|
|
1.39 |
% |
|
|
1.38 |
% |
|
|
1.39 |
% |
Allowance for credit losses - loans / Non-performing loans |
|
|
513 |
% |
|
|
506 |
% |
|
|
528 |
% |
|
|
Quarters Ended |
||||||||||
CHANGE IN THE |
|
|
|
|
|
|
||||||
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS |
|
|
|
|
|
|
||||||
Balance, beginning of period |
|
$ |
14,484 |
|
|
$ |
15,010 |
|
|
$ |
14,721 |
|
Recapture of provision for credit losses - unfunded loan commitments |
|
|
(887 |
) |
|
|
(526 |
) |
|
|
(1,278 |
) |
Balance, end of period |
|
$ |
13,597 |
|
|
$ |
14,484 |
|
|
$ |
13,443 |
|
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||
(dollars in thousands) |
||||||||||||
NON-PERFORMING ASSETS |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Loans on non-accrual status: |
|
|
|
|
|
|||||||
Secured by real estate: |
|
|
|
|
|
|||||||
Commercial |
$ |
2,753 |
|
|
$ |
2,677 |
|
|
$ |
2,815 |
|
|
Construction and land |
|
5,029 |
|
|
|
3,105 |
|
|
|
172 |
|
|
One- to four-family |
|
7,750 |
|
|
|
5,702 |
|
|
|
6,789 |
|
|
Commercial business |
|
7,355 |
|
|
|
9,002 |
|
|
|
9,365 |
|
|
Agricultural business, including secured by farmland |
|
2,496 |
|
|
|
3,167 |
|
|
|
4,074 |
|
|
Consumer |
|
3,411 |
|
|
|
3,204 |
|
|
|
2,247 |
|
|
|
|
28,794 |
|
|
|
26,857 |
|
|
|
25,462 |
|
|
Loans more than 90 days delinquent, still on accrual: |
|
|
|
|
|
|||||||
Secured by real estate: |
|
|
|
|
|
|||||||
Construction and land |
|
286 |
|
|
|
1,138 |
|
|
|
— |
|
|
One- to four-family |
|
409 |
|
|
|
1,205 |
|
|
|
445 |
|
|
Commercial business |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Consumer |
|
— |
|
|
|
401 |
|
|
|
865 |
|
|
|
|
695 |
|
|
|
2,745 |
|
|
|
1,310 |
|
|
Total non-performing loans |
|
29,489 |
|
|
|
29,602 |
|
|
|
26,772 |
|
|
REO |
|
448 |
|
|
|
526 |
|
|
|
340 |
|
|
Other repossessed assets |
|
— |
|
|
|
— |
|
|
|
17 |
|
|
Total non-performing assets |
$ |
29,937 |
|
|
$ |
30,128 |
|
|
$ |
27,129 |
|
|
Total non-performing assets to total assets |
|
0.19 |
% |
|
|
0.19 |
% |
|
|
0.17 |
% |
|
LOANS BY CREDIT RISK RATING |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Pass |
$ |
10,731,015 |
|
|
$ |
10,671,281 |
|
|
$ |
10,008,385 |
|
|
Special Mention |
|
22,029 |
|
|
|
13,732 |
|
|
|
4,251 |
|
|
Substandard |
|
116,052 |
|
|
|
125,442 |
|
|
|
148,048 |
|
|
Total |
$ |
10,869,096 |
|
|
$ |
10,810,455 |
|
|
$ |
10,160,684 |
|
|
|
|
|
|
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
DEPOSIT COMPOSITION |
|
|
|
|
|
|
|
Percentage Change |
||||||||||
|
|
|
|
|
|
|
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
Non-interest-bearing |
|
$ |
4,699,553 |
|
|
$ |
4,792,369 |
|
|
$ |
5,764,009 |
|
|
(1.9 |
)% |
|
(18.5 |
)% |
Interest-bearing checking |
|
|
2,112,799 |
|
|
|
2,098,526 |
|
|
|
1,794,477 |
|
|
0.7 |
% |
|
17.7 |
% |
Regular savings accounts |
|
|
3,171,933 |
|
|
|
2,980,530 |
|
|
|
2,502,084 |
|
|
6.4 |
% |
|
26.8 |
% |
Money market accounts |
|
|
1,688,606 |
|
|
|
1,680,605 |
|
|
|
2,143,700 |
|
|
0.5 |
% |
|
(21.2 |
)% |
Total interest-bearing transaction and savings accounts |
|
|
6,973,338 |
|
|
|
6,759,661 |
|
|
|
6,440,261 |
|
|
3.2 |
% |
|
8.3 |
% |
Total core deposits |
|
|
11,672,891 |
|
|
|
11,552,030 |
|
|
|
12,204,270 |
|
|
1.0 |
% |
|
(4.4 |
)% |
Interest-bearing certificates |
|
|
1,485,880 |
|
|
|
1,477,467 |
|
|
|
949,932 |
|
|
0.6 |
% |
|
56.4 |
% |
Total deposits |
|
$ |
13,158,771 |
|
|
$ |
13,029,497 |
|
|
$ |
13,154,202 |
|
|
1.0 |
% |
|
— |
% |
GEOGRAPHIC CONCENTRATION OF DEPOSITS |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
Percentage Change |
|||||||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Prior Qtr |
|
Prior Yr Qtr |
|||||||||
|
|
$ |
7,258,785 |
|
|
55.2 |
% |
|
$ |
7,247,392 |
|
|
$ |
7,237,499 |
|
|
0.2 |
% |
|
0.3 |
% |
|
|
|
2,914,605 |
|
|
22.1 |
% |
|
|
2,852,677 |
|
|
|
2,911,788 |
|
|
2.2 |
% |
|
0.1 |
% |
|
|
|
2,316,515 |
|
|
17.6 |
% |
|
|
2,269,557 |
|
|
|
2,309,174 |
|
|
2.1 |
% |
|
0.3 |
% |
|
|
|
668,866 |
|
|
5.1 |
% |
|
|
659,871 |
|
|
|
695,741 |
|
|
1.4 |
% |
|
(3.9 |
)% |
Total deposits |
|
$ |
13,158,771 |
|
|
100.0 |
% |
|
$ |
13,029,497 |
|
|
$ |
13,154,202 |
|
|
1.0 |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
INCLUDED IN TOTAL DEPOSITS |
||||||||||||
|
|
|
|
|
|
|
||||||
Public non-interest-bearing accounts |
|
$ |
140,477 |
|
|
$ |
146,916 |
|
|
$ |
177,913 |
|
Public interest-bearing transaction & savings accounts |
|
|
251,161 |
|
|
|
209,699 |
|
|
|
183,924 |
|
Public interest-bearing certificates |
|
|
28,821 |
|
|
|
52,048 |
|
|
|
26,857 |
|
Total public deposits |
|
$ |
420,459 |
|
|
$ |
408,663 |
|
|
$ |
388,694 |
|
Collateralized public deposits |
|
$ |
316,554 |
|
|
$ |
305,306 |
|
|
$ |
277,725 |
|
Total brokered deposits |
|
$ |
107,527 |
|
|
$ |
108,058 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
||||||
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT |
||||||||||||
|
|
|
|
|
|
|
||||||
Number of deposit accounts |
|
|
461,399 |
|
|
|
463,750 |
|
|
|
462,880 |
|
Average account balance per account |
|
$ |
29 |
|
|
$ |
29 |
|
|
$ |
28 |
|
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
ESTIMATED REGULATORY CAPITAL RATIOS AS OF |
|
Actual |
|
Minimum to be categorized as "Adequately Capitalized" |
|
Minimum to be categorized as "Well Capitalized" |
|||||||||||||||
|
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets |
|
$ |
1,927,380 |
|
|
14.70 |
% |
|
$ |
1,049,048 |
|
|
8.00 |
% |
|
$ |
1,311,311 |
|
|
10.00 |
% |
Tier 1 capital to risk-weighted assets |
|
|
1,667,720 |
|
|
12.72 |
% |
|
|
786,786 |
|
|
6.00 |
% |
|
|
786,786 |
|
|
6.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,667,720 |
|
|
10.71 |
% |
|
|
622,892 |
|
|
4.00 |
% |
|
|
n/a |
|
|
n/a |
|
Common equity tier 1 capital to risk-weighted assets |
|
|
1,581,220 |
|
|
12.06 |
% |
|
|
590,090 |
|
|
4.50 |
% |
|
|
n/a |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets |
|
|
1,807,301 |
|
|
13.77 |
% |
|
|
1,049,707 |
|
|
8.00 |
% |
|
|
1,312,134 |
|
|
10.00 |
% |
Tier 1 capital to risk-weighted assets |
|
|
1,647,641 |
|
|
12.56 |
% |
|
|
787,281 |
|
|
6.00 |
% |
|
|
1,049,707 |
|
|
8.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,647,641 |
|
|
10.58 |
% |
|
|
622,882 |
|
|
4.00 |
% |
|
|
778,603 |
|
|
5.00 |
% |
Common equity tier 1 capital to risk-weighted assets |
|
|
1,647,641 |
|
|
12.56 |
% |
|
|
590,460 |
|
|
4.50 |
% |
|
|
852,887 |
|
|
6.50 |
% |
These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports. |
|||||||||||||||||||||
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||||||||||
(rates / ratios annualized) |
||||||||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD |
Quarters Ended |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost(3) |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost(3) |
|
Average Balance |
|
Interest and Dividends |
|
Yield / Cost(3) |
|||||||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Held for sale loans |
$ |
9,939 |
|
|
$ |
167 |
|
|
6.76 |
% |
|
$ |
31,148 |
|
|
$ |
447 |
|
|
5.69 |
% |
|
$ |
52,657 |
|
|
$ |
671 |
|
|
5.17 |
% |
Mortgage loans |
|
8,892,561 |
|
|
|
125,284 |
|
|
5.67 |
% |
|
|
8,770,029 |
|
|
|
123,382 |
|
|
5.58 |
% |
|
|
8,267,386 |
|
|
|
106,900 |
|
|
5.24 |
% |
Commercial/agricultural loans |
|
1,830,095 |
|
|
|
30,847 |
|
|
6.78 |
% |
|
|
1,822,069 |
|
|
|
30,447 |
|
|
6.63 |
% |
|
|
1,709,345 |
|
|
|
25,226 |
|
|
5.99 |
% |
Consumer and other loans |
|
133,854 |
|
|
|
2,196 |
|
|
6.60 |
% |
|
|
138,049 |
|
|
|
2,237 |
|
|
6.43 |
% |
|
|
137,096 |
|
|
|
2,115 |
|
|
6.26 |
% |
Total loans(1) |
|
10,866,449 |
|
|
|
158,494 |
|
|
5.87 |
% |
|
|
10,761,295 |
|
|
|
156,513 |
|
|
5.77 |
% |
|
|
10,166,484 |
|
|
|
134,912 |
|
|
5.38 |
% |
Mortgage-backed securities |
|
2,728,640 |
|
|
|
17,076 |
|
|
2.52 |
% |
|
|
2,798,647 |
|
|
|
17,541 |
|
|
2.49 |
% |
|
|
3,093,860 |
|
|
|
19,123 |
|
|
2.51 |
% |
Other securities |
|
984,639 |
|
|
|
11,501 |
|
|
4.70 |
% |
|
|
1,035,842 |
|
|
|
11,993 |
|
|
4.59 |
% |
|
|
1,404,355 |
|
|
|
15,095 |
|
|
4.36 |
% |
Interest-bearing deposits with banks |
|
45,264 |
|
|
|
459 |
|
|
4.08 |
% |
|
|
45,286 |
|
|
|
506 |
|
|
4.43 |
% |
|
|
53,584 |
|
|
|
608 |
|
|
4.60 |
% |
FHLB stock |
|
19,073 |
|
|
|
209 |
|
|
4.41 |
% |
|
|
15,326 |
|
|
|
215 |
|
|
5.57 |
% |
|
|
14,236 |
|
|
|
90 |
|
|
2.56 |
% |
Total investment securities |
|
3,777,616 |
|
|
|
29,245 |
|
|
3.11 |
% |
|
|
3,895,101 |
|
|
|
30,255 |
|
|
3.08 |
% |
|
|
4,566,035 |
|
|
|
34,916 |
|
|
3.10 |
% |
Total interest-earning assets |
|
14,644,065 |
|
|
|
187,739 |
|
|
5.16 |
% |
|
|
14,656,396 |
|
|
|
186,768 |
|
|
5.06 |
% |
|
|
14,732,519 |
|
|
|
169,828 |
|
|
4.68 |
% |
Non-interest-earning assets |
|
943,725 |
|
|
|
|
|
|
|
875,719 |
|
|
|
|
|
|
|
921,217 |
|
|
|
|
|
|||||||||
Total assets |
$ |
15,587,790 |
|
|
|
|
|
|
$ |
15,532,115 |
|
|
|
|
|
|
$ |
15,653,736 |
|
|
|
|
|
|||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing checking accounts |
$ |
2,104,242 |
|
|
|
6,716 |
|
|
1.28 |
% |
|
$ |
2,060,226 |
|
|
|
5,907 |
|
|
1.14 |
% |
|
$ |
1,779,664 |
|
|
|
906 |
|
|
0.21 |
% |
Savings accounts |
|
3,066,448 |
|
|
|
15,279 |
|
|
2.00 |
% |
|
|
2,885,167 |
|
|
|
12,560 |
|
|
1.73 |
% |
|
|
2,615,173 |
|
|
|
1,884 |
|
|
0.29 |
% |
Money market accounts |
|
1,674,159 |
|
|
|
8,388 |
|
|
2.02 |
% |
|
|
1,723,426 |
|
|
|
7,644 |
|
|
1.76 |
% |
|
|
2,167,138 |
|
|
|
3,799 |
|
|
0.71 |
% |
Certificates of deposit |
|
1,500,429 |
|
|
|
14,230 |
|
|
3.81 |
% |
|
|
1,477,474 |
|
|
|
13,231 |
|
|
3.55 |
% |
|
|
810,821 |
|
|
|
2,655 |
|
|
1.33 |
% |
Total interest-bearing deposits |
|
8,345,278 |
|
|
|
44,613 |
|
|
2.15 |
% |
|
|
8,146,293 |
|
|
|
39,342 |
|
|
1.92 |
% |
|
|
7,372,796 |
|
|
|
9,244 |
|
|
0.51 |
% |
Non-interest-bearing deposits |
|
4,711,922 |
|
|
|
— |
|
|
— |
% |
|
|
5,036,523 |
|
|
|
— |
|
|
— |
% |
|
|
5,960,791 |
|
|
|
— |
|
|
— |
% |
Total deposits |
|
13,057,200 |
|
|
|
44,613 |
|
|
1.37 |
% |
|
|
13,182,816 |
|
|
|
39,342 |
|
|
1.18 |
% |
|
|
13,333,587 |
|
|
|
9,244 |
|
|
0.28 |
% |
Other interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FHLB advances |
|
212,989 |
|
|
|
2,972 |
|
|
5.61 |
% |
|
|
129,630 |
|
|
|
1,870 |
|
|
5.72 |
% |
|
|
105,984 |
|
|
|
1,264 |
|
|
4.84 |
% |
Other borrowings |
|
180,692 |
|
|
|
1,175 |
|
|
2.62 |
% |
|
|
185,518 |
|
|
|
1,125 |
|
|
2.41 |
% |
|
|
229,459 |
|
|
|
381 |
|
|
0.67 |
% |
Junior subordinated debentures and subordinated notes |
|
181,579 |
|
|
|
2,969 |
|
|
6.58 |
% |
|
|
182,678 |
|
|
|
2,992 |
|
|
6.50 |
% |
|
|
189,178 |
|
|
|
2,760 |
|
|
5.92 |
% |
Total borrowings |
|
575,260 |
|
|
|
7,116 |
|
|
4.98 |
% |
|
|
497,826 |
|
|
|
5,987 |
|
|
4.77 |
% |
|
|
524,621 |
|
|
|
4,405 |
|
|
3.41 |
% |
Total funding liabilities |
|
13,632,460 |
|
|
|
51,729 |
|
|
1.53 |
% |
|
|
13,680,642 |
|
|
|
45,329 |
|
|
1.31 |
% |
|
|
13,858,208 |
|
|
|
13,649 |
|
|
0.40 |
% |
Other non-interest-bearing liabilities(2) |
|
303,412 |
|
|
|
|
|
|
|
311,539 |
|
|
|
|
|
|
|
293,205 |
|
|
|
|
|
|||||||||
Total liabilities |
|
13,935,872 |
|
|
|
|
|
|
|
13,992,181 |
|
|
|
|
|
|
|
14,151,413 |
|
|
|
|
|
|||||||||
Shareholders’ equity |
|
1,651,918 |
|
|
|
|
|
|
|
1,539,934 |
|
|
|
|
|
|
|
1,502,323 |
|
|
|
|
|
|||||||||
Total liabilities and shareholders’ equity |
$ |
15,587,790 |
|
|
|
|
|
|
$ |
15,532,115 |
|
|
|
|
|
|
$ |
15,653,736 |
|
|
|
|
|
|||||||||
Net interest income/rate spread (tax equivalent) |
|
|
$ |
136,010 |
|
|
3.63 |
% |
|
|
|
$ |
141,439 |
|
|
3.75 |
% |
|
|
|
$ |
156,179 |
|
|
4.28 |
% |
||||||
Net interest margin (tax equivalent) |
|
|
|
|
3.74 |
% |
|
|
|
|
|
3.83 |
% |
|
|
|
|
|
4.30 |
% |
||||||||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjustments for taxable equivalent basis |
|
|
|
(3,051 |
) |
|
|
|
|
|
|
(3,030 |
) |
|
|
|
|
|
|
(2,867 |
) |
|
|
|||||||||
Net interest income and margin, as reported |
|
|
$ |
132,959 |
|
|
3.65 |
% |
|
|
|
$ |
138,409 |
|
|
3.75 |
% |
|
|
|
$ |
153,312 |
|
|
4.22 |
% |
||||||
Additional Key Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Return on average assets |
|
|
|
|
0.97 |
% |
|
|
|
|
|
1.09 |
% |
|
|
|
|
|
1.44 |
% |
||||||||||||
Adjusted return on average assets(4) |
|
|
|
|
1.08 |
% |
|
|
|
|
|
1.18 |
% |
|
|
|
|
|
1.60 |
% |
||||||||||||
Return on average equity |
|
|
|
|
9.14 |
% |
|
|
|
|
|
10.98 |
% |
|
|
|
|
|
15.00 |
% |
||||||||||||
Adjusted return on average equity(4) |
|
|
|
|
10.24 |
% |
|
|
|
|
|
11.89 |
% |
|
|
|
|
|
16.63 |
% |
||||||||||||
Average equity/average assets |
|
|
|
|
10.60 |
% |
|
|
|
|
|
9.91 |
% |
|
|
|
|
|
9.60 |
% |
||||||||||||
Average interest-earning assets/average interest-bearing liabilities |
|
|
|
|
164.16 |
% |
|
|
|
|
|
169.55 |
% |
|
|
|
|
|
186.55 |
% |
||||||||||||
Average interest-earning assets/average funding liabilities |
|
|
|
|
107.42 |
% |
|
|
|
|
|
107.13 |
% |
|
|
|
|
|
106.31 |
% |
||||||||||||
Non-interest income/average assets |
|
|
|
|
0.30 |
% |
|
|
|
|
|
0.36 |
% |
|
|
|
|
|
0.24 |
% |
||||||||||||
Non-interest expense/average assets |
|
|
|
|
2.52 |
% |
|
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.45 |
% |
||||||||||||
Efficiency ratio |
|
|
|
|
67.55 |
% |
|
|
|
|
|
63.37 |
% |
|
|
|
|
|
58.20 |
% |
||||||||||||
Adjusted efficiency ratio(4) |
|
|
|
|
63.70 |
% |
|
|
|
|
|
60.04 |
% |
|
|
|
|
|
54.23 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
(1) |
Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
|
(2) |
Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. |
|
(3) |
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was |
|
(4) |
Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
|
ADDITIONAL FINANCIAL INFORMATION
(dollars in thousands)
* Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in
ADJUSTED REVENUE |
Quarters Ended |
|||||||||||
|
|
|
|
|
|
|||||||
Net interest income (GAAP) |
$ |
132,959 |
|
|
$ |
138,409 |
|
|
$ |
153,312 |
|
|
Non-interest income (GAAP) |
|
11,591 |
|
|
|
14,052 |
|
|
|
9,277 |
|
|
Total revenue (GAAP) |
|
144,550 |
|
|
|
152,461 |
|
|
|
162,589 |
|
|
Exclude: Net loss on sale of securities |
|
4,903 |
|
|
|
4,806 |
|
|
|
7,252 |
|
|
Net change in valuation of financial instruments carried at fair value |
|
992 |
|
|
|
(139 |
) |
|
|
552 |
|
|
Adjusted revenue (non-GAAP) |
$ |
150,445 |
|
|
$ |
157,128 |
|
|
$ |
170,393 |
|
ADJUSTED EARNINGS |
Quarters Ended |
|||||||||||
|
|
|
|
|
|
|||||||
Net income (GAAP) |
$ |
37,559 |
|
|
$ |
42,624 |
|
|
$ |
55,555 |
|
|
Exclude: Net loss on sale of securities |
|
4,903 |
|
|
|
4,806 |
|
|
|
7,252 |
|
|
Net change in valuation of financial instruments carried at fair value |
|
992 |
|
|
|
(139 |
) |
|
|
552 |
|
|
Banner Forward expenses (1) |
|
— |
|
|
|
— |
|
|
|
143 |
|
|
Related net tax benefit |
|
(1,415 |
) |
|
|
(1,121 |
) |
|
|
(1,907 |
) |
|
Total adjusted earnings (non-GAAP) |
$ |
42,039 |
|
|
$ |
46,170 |
|
|
$ |
61,595 |
|
|
|
|
|
|
|
|
|||||||
Diluted earnings per share (GAAP) |
$ |
1.09 |
|
|
$ |
1.24 |
|
|
$ |
1.61 |
|
|
Diluted adjusted earnings per share (non-GAAP) |
$ |
1.22 |
|
|
$ |
1.34 |
|
|
$ |
1.79 |
|
|
Return on average assets |
|
0.97 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
Adjusted return on average assets (2) |
|
1.08 |
% |
|
|
1.18 |
% |
|
|
1.60 |
% |
|
Return on average equity |
|
9.14 |
% |
|
|
10.98 |
% |
|
|
15.00 |
% |
|
Adjusted return on average equity (3) |
|
10.24 |
% |
|
|
11.89 |
% |
|
|
16.63 |
% |
(1) |
Included in miscellaneous expenses in results of operations. |
|
(2) |
Adjusted earnings (non-GAAP) divided by average assets. |
|
(3) |
Adjusted earnings (non-GAAP) divided by average equity. |
|
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||
(dollars in thousands) |
||||||||||||
ADJUSTED EFFICIENCY RATIO |
|
Quarters Ended |
||||||||||
|
|
|
|
|
|
|
||||||
Non-interest expense (GAAP) |
|
$ |
97,641 |
|
|
$ |
96,621 |
|
|
$ |
94,621 |
|
Exclude: Banner Forward expenses (1) |
|
|
— |
|
|
|
— |
|
|
|
(143 |
) |
CDI amortization |
|
|
(723 |
) |
|
|
(858 |
) |
|
|
(1,050 |
) |
State/municipal tax expense |
|
|
(1,304 |
) |
|
|
(1,372 |
) |
|
|
(1,300 |
) |
REO operations |
|
|
220 |
|
|
|
(47 |
) |
|
|
277 |
|
Adjusted non-interest expense (non-GAAP) |
|
$ |
95,834 |
|
|
$ |
94,344 |
|
|
$ |
92,405 |
|
|
|
|
|
|
|
|
||||||
Net interest income (GAAP) |
|
$ |
132,959 |
|
|
$ |
138,409 |
|
|
$ |
153,312 |
|
Non-interest income (GAAP) |
|
|
11,591 |
|
|
|
14,052 |
|
|
|
9,277 |
|
Total revenue (GAAP) |
|
|
144,550 |
|
|
|
152,461 |
|
|
|
162,589 |
|
Exclude: Net loss on sale of securities |
|
|
4,903 |
|
|
|
4,806 |
|
|
|
7,252 |
|
Net change in valuation of financial instruments carried at fair value |
|
|
992 |
|
|
|
(139 |
) |
|
|
552 |
|
Adjusted revenue (non-GAAP) |
|
$ |
150,445 |
|
|
$ |
157,128 |
|
|
$ |
170,393 |
|
|
|
|
|
|
|
|
||||||
Efficiency ratio (GAAP) |
|
|
67.55 |
% |
|
|
63.37 |
% |
|
|
58.20 |
% |
Adjusted efficiency ratio (non-GAAP) (2) |
|
|
63.70 |
% |
|
|
60.04 |
% |
|
|
54.23 |
% |
(1) |
Included in miscellaneous expenses in results of operations. |
|
(2) |
Adjusted non-interest expense (non-GAAP) divided by adjusted revenue. |
|
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Shareholders’ equity (GAAP) |
|
$ |
1,664,508 |
|
|
$ |
1,652,691 |
|
|
$ |
1,531,695 |
|
Exclude goodwill and other intangible assets, net |
|
|
378,082 |
|
|
|
378,805 |
|
|
|
381,511 |
|
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,286,426 |
|
|
$ |
1,273,886 |
|
|
$ |
1,150,184 |
|
|
|
|
|
|
|
|
||||||
Total assets (GAAP) |
|
$ |
15,518,279 |
|
|
$ |
15,670,391 |
|
|
$ |
15,533,603 |
|
Exclude goodwill and other intangible assets, net |
|
|
378,082 |
|
|
|
378,805 |
|
|
|
381,511 |
|
Total tangible assets (non-GAAP) |
|
$ |
15,140,197 |
|
|
$ |
15,291,586 |
|
|
$ |
15,152,092 |
|
Common shareholders’ equity to total assets (GAAP) |
|
|
10.73 |
% |
|
|
10.55 |
% |
|
|
9.86 |
% |
Tangible common shareholders’ equity to tangible assets (non-GAAP) |
|
|
8.50 |
% |
|
|
8.33 |
% |
|
|
7.59 |
% |
|
|
|
|
|
|
|
||||||
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE |
|
|
|
|
|
|
||||||
Shareholders’ equity (GAAP) |
|
$ |
1,664,508 |
|
|
$ |
1,652,691 |
|
|
$ |
1,531,695 |
|
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,286,426 |
|
|
$ |
1,273,886 |
|
|
$ |
1,150,184 |
|
Common shares outstanding at end of period |
|
|
34,395,221 |
|
|
|
34,348,369 |
|
|
|
34,308,540 |
|
Common shareholders’ equity (book value) per share (GAAP) |
|
$ |
48.39 |
|
|
$ |
48.12 |
|
|
$ |
44.64 |
|
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) |
|
$ |
37.40 |
|
|
$ |
37.09 |
|
|
$ |
33.52 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240417076034/en/
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