Banner announced that its Board of Directors declared a regular quarterly cash dividend of
“Our super community bank business model, which emphasizes a moderate risk profile and strong relationship banking, continues to serve us well and we are well positioned to manage the uncertainties of these economic times,” said
At
Third Quarter 2023 Highlights
- Revenues increased 2% to
$154.4 million , compared to$150.9 million in the preceding quarter, and decreased 5% compared to$162.0 million in the third 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
$157.7 million in the third quarter of 2023, compared to$158.6 million in the preceding quarter and$161.5 million in the third quarter a year ago. - Net interest income decreased 1% to
$141.8 million in the third quarter of 2023, compared to$142.5 million in the preceding quarter and decreased 3% compared to$146.4 million in the third quarter a year ago. - Net interest margin, on a tax equivalent basis, was 3.93%, compared to 4.00% in the preceding quarter and 3.85% in the third quarter a year ago.
- Mortgage banking operations revenue increased to
$2.0 million , compared to$1.7 million in the preceding quarter, and compared to$105,000 in the third quarter a year ago. - Return on average assets was 1.17%, compared to 1.02% in the preceding quarter and 1.18% in the third quarter a year ago.
- Net loans receivable increased 1% to
$10.46 billion atSeptember 30, 2023 , compared to$10.33 billion atJune 30, 2023 , and increased 8% compared to$9.69 billion atSeptember 30, 2022 . - Non-performing assets decreased to
$26.8 million , or 0.17% of total assets, atSeptember 30, 2023 , compared to$28.7 million , or 0.18% of total assets atJune 30, 2023 , and increased compared to$15.6 million , or 0.10% of total assets, atSeptember 30, 2022 . - The allowance for credit losses - loans was
$147.0 million , or 1.38% of total loans receivable, as ofSeptember 30, 2023 , compared to$144.7 million , or 1.38% of total loans receivable as ofJune 30, 2023 and$135.9 million , or 1.38% of total loans receivable as ofSeptember 30, 2022 . - Total deposits increased to
$13.17 billion atSeptember 30, 2023 , compared to$13.10 billion atJune 30, 2023 , and decreased compared to$14.23 billion atSeptember 30, 2022 . - Core deposits (non-interest-bearing and interest-bearing transaction and savings accounts) decreased to
$11.72 billion atSeptember 30, 2023 , compared to$11.74 billion atJune 30, 2023 and$13.51 billion atSeptember 30, 2022 . Core deposits represented 89% of total deposits atSeptember 30, 2023 . - Banner Bank’s estimated uninsured deposits were approximately 31% of total deposits at both
September 30, 2023 andJune 30, 2023 . - Banner Bank’s estimated uninsured deposits, excluding collateralized public deposits and affiliate deposits, were approximately 28% of total deposits at both
September 30, 2023 andJune 30, 2023 . - Available borrowing capacity was
$4.62 billion atSeptember 30, 2023 , compared to$4.02 billion atJune 30, 2023 . - On-balance sheet liquidity was
$2.86 billion atSeptember 30, 2023 , compared to$3.07 billion atJune 30, 2023 . - Dividends paid to shareholders were
$0.48 per share in the quarter endedSeptember 30, 2023 . - Common shareholders’ equity per share decreased 1% to
$44.27 atSeptember 30, 2023 , compared to$44.91 at the preceding quarter end, and increased 7% from$41.20 atSeptember 30, 2022 . - Tangible common shareholders’ equity per share* decreased 2% to
$33.22 atSeptember 30, 2023 , compared to$33.83 at the preceding quarter end, and increased 11% from$29.97 atSeptember 30, 2022 .
*Non-GAAP (Generally Accepted Accounting Principles) measure; 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.
Income Statement Review
Net interest income was
Average yields on interest-earning assets increased 14 basis points to 4.94% for the third quarter of 2023, compared to 4.80% for the preceding quarter and increased 97 basis points compared to 3.97% in the third quarter a year ago. Since
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
Third quarter 2023 non-interest income also included a
Total revenue increased 2% to
Total non-interest expense was
Federal and state income tax expense totaled
*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.
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 discussion and 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 the recent increases in the
RESULTS OF OPERATIONS | Quarters Ended | Nine Months Ended | ||||||||||||||||||
(in thousands except shares and per share data) | ||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Loans receivable | $ | 149,254 | $ | 140,848 | $ | 116,610 | $ | 423,359 | $ | 321,466 | ||||||||||
Mortgage-backed securities | 17,691 | 18,285 | 17,558 | 54,954 | 48,486 | |||||||||||||||
Securities and cash equivalents | 12,119 | 12,676 | 16,951 | 39,521 | 37,059 | |||||||||||||||
Total interest income | 179,064 | 171,809 | 151,119 | 517,834 | 407,011 | |||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Deposits | 31,001 | 20,539 | 2,407 | 60,784 | 6,501 | |||||||||||||||
2,233 | 5,157 | — | 8,654 | 291 | ||||||||||||||||
Other borrowings | 1,099 | 771 | 81 | 2,251 | 245 | |||||||||||||||
Subordinated debt | 2,965 | 2,824 | 2,188 | 8,549 | 5,866 | |||||||||||||||
Total interest expense | 37,298 | 29,291 | 4,676 | 80,238 | 12,903 | |||||||||||||||
Net interest income | 141,766 | 142,518 | 146,443 | 437,596 | 394,108 | |||||||||||||||
PROVISION FOR CREDIT LOSSES | 2,027 | 6,764 | 6,087 | 8,267 | 3,660 | |||||||||||||||
Net interest income after provision for credit losses | 139,739 | 135,754 | 140,356 | 429,329 | 390,448 | |||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||
Deposit fees and other service charges | 10,916 | 10,600 | 11,449 | 32,078 | 33,638 | |||||||||||||||
Mortgage banking operations | 2,049 | 1,686 | 105 | 6,426 | 8,523 | |||||||||||||||
Bank-owned life insurance | 2,062 | 2,386 | 1,804 | 6,636 | 5,674 | |||||||||||||||
Miscellaneous | 942 | 1,428 | 1,689 | 4,010 | 5,423 | |||||||||||||||
15,969 | 16,100 | 15,047 | 49,150 | 53,258 | ||||||||||||||||
Net (loss) gain on sale of securities | (2,657 | ) | (4,527 | ) | 6 | (14,436 | ) | 473 | ||||||||||||
Net change in valuation of financial instruments carried at fair value | (654 | ) | (3,151 | ) | 532 | (4,357 | ) | 650 | ||||||||||||
Gain on sale of branches, including related deposits | — | — | — | — | 7,804 | |||||||||||||||
Total non-interest income | 12,658 | 8,422 | 15,585 | 30,357 | 62,185 | |||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||
Salary and employee benefits | 61,091 | 61,972 | 61,639 | 184,452 | 181,957 | |||||||||||||||
Less capitalized loan origination costs | (4,498 | ) | (4,457 | ) | (5,984 | ) | (12,386 | ) | (19,436 | ) | ||||||||||
Occupancy and equipment | 11,722 | 11,994 | 12,008 | 35,686 | 38,512 | |||||||||||||||
Information and computer data services | 7,118 | 7,082 | 6,803 | 21,347 | 19,451 | |||||||||||||||
Payment and card processing services | 5,172 | 4,669 | 5,508 | 14,459 | 16,086 | |||||||||||||||
Professional and legal expenses | 3,042 | 2,400 | 2,619 | 7,563 | 7,677 | |||||||||||||||
Advertising and marketing | 1,362 | 940 | 1,326 | 3,108 | 2,609 | |||||||||||||||
Deposit insurance | 2,874 | 2,839 | 1,946 | 7,603 | 4,910 | |||||||||||||||
State and municipal business and use taxes | 1,359 | 1,229 | 1,223 | 3,888 | 3,389 | |||||||||||||||
Real estate operations, net | (383 | ) | 75 | 68 | (585 | ) | (132 | ) | ||||||||||||
Amortization of core deposit intangibles | 857 | 991 | 1,215 | 2,898 | 4,064 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | — | 793 | |||||||||||||||
Miscellaneous | 6,175 | 5,671 | 6,663 | 17,884 | 18,402 | |||||||||||||||
Total non-interest expense | 95,891 | 95,405 | 95,034 | 285,917 | 278,282 | |||||||||||||||
Income before provision for income taxes | 56,506 | 48,771 | 60,907 | 173,769 | 174,351 | |||||||||||||||
PROVISION FOR INCOME TAXES | 10,652 | 9,180 | 11,837 | 32,769 | 33,353 | |||||||||||||||
NET INCOME | $ | 45,854 | $ | 39,591 | $ | 49,070 | $ | 141,000 | $ | 140,998 | ||||||||||
Earnings per common share: | ||||||||||||||||||||
Basic | $ | 1.33 | $ | 1.15 | $ | 1.43 | $ | 4.11 | $ | 4.11 | ||||||||||
Diluted | $ | 1.33 | $ | 1.15 | $ | 1.43 | $ | 4.09 | $ | 4.09 | ||||||||||
Cumulative dividends declared per common share | $ | 0.48 | $ | 0.48 | $ | 0.44 | $ | 1.44 | $ | 1.32 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
Basic | 34,379,865 | 34,373,434 | 34,224,640 | 34,331,458 | 34,277,182 | |||||||||||||||
Diluted | 34,429,726 | 34,409,024 | 34,416,017 | 34,439,214 | 34,499,246 | |||||||||||||||
Increase (decrease) in common shares outstanding | 1,322 | 36,087 | 429 | 151,931 | (60,873 | ) | ||||||||||||||
FINANCIAL CONDITION | Percentage Change | |||||||||||||||||||||
(in thousands except shares and per share data) | Prior Qtr | Prior Yr Qtr | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Cash and due from banks | $ | 207,171 | $ | 229,918 | $ | 198,154 | $ | 273,052 | (9.9 | )% | (24.1 | )% | ||||||||||
Interest-bearing deposits | 44,535 | 51,407 | 44,908 | 548,869 | (13.4 | )% | (91.9 | )% | ||||||||||||||
Total cash and cash equivalents | 251,706 | 281,325 | 243,062 | 821,921 | (10.5 | )% | (69.4 | )% | ||||||||||||||
Securities - trading | 25,268 | 25,659 | 28,694 | 28,383 | (1.5 | )% | (11.0 | )% | ||||||||||||||
Securities - available for sale, amortized cost | 2,287,993 | 2,465,960 | 2,789,031 | 2,996,173 | (7.2 | )% | (23.6 | )% | ||||||||||||||
Securities - held to maturity, fair value | 1,082,156 | 1,098,570 | 1,117,588 | 1,132,852 | (1.5 | )% | (4.5 | )% | ||||||||||||||
Total securities | 3,395,417 | 3,590,189 | 3,935,313 | 4,157,408 | (5.4 | )% | (18.3 | )% | ||||||||||||||
FHLB stock | 15,600 | 20,800 | 12,000 | 10,000 | (25.0 | )% | 56.0 | % | ||||||||||||||
Securities purchased under agreements to resell | — | — | 300,000 | 300,000 | nm | (100.0 | )% | |||||||||||||||
Loans held for sale | 54,158 | 60,612 | 56,857 | 84,358 | (10.6 | )% | (35.8 | )% | ||||||||||||||
Loans receivable | 10,611,417 | 10,472,407 | 10,146,724 | 9,827,096 | 1.3 | % | 8.0 | % | ||||||||||||||
Allowance for credit losses – loans | (146,960 | ) | (144,680 | ) | (141,465 | ) | (135,918 | ) | 1.6 | % | 8.1 | % | ||||||||||
Net loans receivable | 10,464,457 | 10,327,727 | 10,005,259 | 9,691,178 | 1.3 | % | 8.0 | % | ||||||||||||||
Accrued interest receivable | 61,040 | 57,007 | 57,284 | 50,689 | 7.1 | % | 20.4 | % | ||||||||||||||
Property and equipment, net | 136,504 | 135,414 | 138,754 | 141,280 | 0.8 | % | (3.4 | )% | ||||||||||||||
373,121 | 373,121 | 373,121 | 373,121 | — | % | — | % | |||||||||||||||
Other intangibles, net | 6,542 | 7,399 | 9,440 | 10,655 | (11.6 | )% | (38.6 | )% | ||||||||||||||
Bank-owned life insurance | 303,347 | 301,260 | 297,565 | 295,443 | 0.7 | % | 2.7 | % | ||||||||||||||
Operating lease right-of-use assets | 43,447 | 45,812 | 49,283 | 51,908 | (5.2 | )% | (16.3 | )% | ||||||||||||||
Other assets | 402,541 | 384,070 | 355,493 | 372,848 | 4.8 | % | 8.0 | % | ||||||||||||||
Total assets | $ | 15,507,880 | $ | 15,584,736 | $ | 15,833,431 | $ | 16,360,809 | (0.5 | )% | (5.2 | )% | ||||||||||
LIABILITIES | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest-bearing | $ | 5,197,854 | $ | 5,369,187 | $ | 6,176,998 | $ | 6,507,523 | (3.2 | )% | (20.1 | )% | ||||||||||
Interest-bearing transaction and savings accounts | 6,518,385 | 6,373,269 | 6,719,531 | 7,004,799 | 2.3 | % | (6.9 | )% | ||||||||||||||
Interest-bearing certificates | 1,458,313 | 1,356,600 | 723,530 | 721,944 | 7.5 | % | 102.0 | % | ||||||||||||||
Total deposits | 13,174,552 | 13,099,056 | 13,620,059 | 14,234,266 | 0.6 | % | (7.4 | )% | ||||||||||||||
Advances from FHLB | 140,000 | 270,000 | 50,000 | — | (48.1 | )% | nm | |||||||||||||||
Other borrowings | 188,440 | 193,019 | 232,799 | 234,006 | (2.4 | )% | (19.5 | )% | ||||||||||||||
Subordinated notes, net | 92,748 | 92,646 | 98,947 | 98,849 | 0.1 | % | (6.2 | )% | ||||||||||||||
Junior subordinated debentures at fair value | 66,284 | 67,237 | 74,857 | 73,841 | (1.4 | )% | (10.2 | )% | ||||||||||||||
Operating lease liabilities | 48,642 | 51,234 | 55,205 | 58,031 | (5.1 | )% | (16.2 | )% | ||||||||||||||
Accrued expenses and other liabilities | 231,478 | 223,565 | 200,839 | 209,226 | 3.5 | % | 10.6 | % | ||||||||||||||
Deferred compensation | 45,129 | 45,466 | 44,293 | 43,931 | (0.7 | )% | 2.7 | % | ||||||||||||||
Total liabilities | 13,987,273 | 14,042,223 | 14,376,999 | 14,952,150 | (0.4 | )% | (6.5 | )% | ||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Common stock | 1,297,307 | 1,294,934 | 1,293,959 | 1,291,741 | 0.2 | % | 0.4 | % | ||||||||||||||
Retained earnings | 616,215 | 587,027 | 525,242 | 486,108 | 5.0 | % | 26.8 | % | ||||||||||||||
Accumulated other comprehensive loss | (392,915 | ) | (339,448 | ) | (362,769 | ) | (369,190 | ) | 15.8 | % | 6.4 | % | ||||||||||
Total shareholders’ equity | 1,520,607 | 1,542,513 | 1,456,432 | 1,408,659 | (1.4 | )% | 7.9 | % | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 15,507,880 | $ | 15,584,736 | $ | 15,833,431 | $ | 16,360,809 | (0.5 | )% | (5.2 | )% | ||||||||||
Common Shares Issued: | ||||||||||||||||||||||
Shares outstanding at end of period | 34,345,949 | 34,344,627 | 34,194,018 | 34,191,759 | ||||||||||||||||||
Common shareholders’ equity per share(1) | $ | 44.27 | $ | 44.91 | $ | 42.59 | $ | 41.20 | ||||||||||||||
Common shareholders’ tangible equity per share(1) (2) | $ | 33.22 | $ | 33.83 | $ | 31.41 | $ | 29.97 | ||||||||||||||
Common shareholders’ tangible equity to tangible assets(2) | 7.54 | % | 7.64 | % | 6.95 | % | 6.41 | % | ||||||||||||||
Consolidated Tier 1 leverage capital ratio | 10.40 | % | 10.22 | % | 9.45 | % | 9.06 | % |
(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 discussion and 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 | $ | 911,540 | $ | 894,876 | $ | 845,320 | $ | 862,792 | 1.9 | % | 5.7 | % | ||||||||||
Investment properties | 1,530,087 | 1,558,176 | 1,589,975 | 1,604,881 | (1.8 | )% | (4.7 | )% | ||||||||||||||
Small balance CRE | 1,169,828 | 1,172,825 | 1,200,251 | 1,188,351 | (0.3 | )% | (1.6 | )% | ||||||||||||||
Multifamily real estate | 766,571 | 699,830 | 645,071 | 592,834 | 9.5 | % | 29.3 | % | ||||||||||||||
Construction, land and land development: | ||||||||||||||||||||||
Commercial construction | 168,061 | 183,765 | 184,876 | 171,029 | (8.5 | )% | (1.7 | )% | ||||||||||||||
Multifamily construction | 453,129 | 433,868 | 325,816 | 275,488 | 4.4 | % | 64.5 | % | ||||||||||||||
One- to four-family construction | 536,349 | 547,200 | 647,329 | 666,350 | (2.0 | )% | (19.5 | )% | ||||||||||||||
Land and land development | 346,362 | 345,053 | 328,475 | 329,459 | 0.4 | % | 5.1 | % | ||||||||||||||
Commercial business: | ||||||||||||||||||||||
Commercial business | 1,263,747 | 1,313,226 | 1,283,407 | 1,242,550 | (3.8 | )% | 1.7 | % | ||||||||||||||
Small business scored | 1,000,714 | 982,283 | 947,092 | 906,647 | 1.9 | % | 10.4 | % | ||||||||||||||
Agricultural business, including secured by farmland: | ||||||||||||||||||||||
Agricultural business, including secured by farmland | 334,626 | 310,120 | 295,077 | 299,400 | 7.9 | % | 11.8 | % | ||||||||||||||
One- to four-family residential | 1,438,694 | 1,340,126 | 1,173,112 | 1,025,143 | 7.4 | % | 40.3 | % | ||||||||||||||
Consumer: | ||||||||||||||||||||||
Consumer—home equity revolving lines of credit | 579,836 | 577,725 | 566,291 | 545,807 | 0.4 | % | 6.2 | % | ||||||||||||||
Consumer—other | 111,873 | 113,334 | 114,632 | 116,365 | (1.3 | )% | (3.9 | )% | ||||||||||||||
Total loans receivable | $ | 10,611,417 | $ | 10,472,407 | $ | 10,146,724 | $ | 9,827,096 | 1.3 | % | 8.0 | % | ||||||||||
Loans 30 - 89 days past due and on accrual | $ | 6,108 | $ | 6,259 | $ | 17,186 | $ | 15,208 | ||||||||||||||
Total delinquent loans (including loans on non-accrual), net | $ | 28,312 | $ | 29,135 | $ | 32,371 | $ | 21,728 | ||||||||||||||
Total delinquent loans / Total loans receivable | 0.27 | % | 0.28 | % | 0.32 | % | 0.22 | % |
LOANS BY GEOGRAPHIC LOCATION | Percentage Change | ||||||||||||||||||||
Prior Qtr | Prior Yr Qtr | ||||||||||||||||||||
Amount | Percentage | Amount | Amount | Amount | |||||||||||||||||
$ | 5,046,028 | 47.6 | % | $ | 4,945,074 | $ | 4,777,546 | $ | 4,648,124 | 2.0 | % | 8.6 | % | ||||||||
2,570,175 | 24.2 | % | 2,537,121 | 2,484,980 | 2,323,740 | 1.3 | % | 10.6 | % | ||||||||||||
1,929,531 | 18.2 | % | 1,913,929 | 1,826,743 | 1,765,254 | 0.8 | % | 9.3 | % | ||||||||||||
600,648 | 5.7 | % | 595,065 | 565,586 | 588,498 | 0.9 | % | 2.1 | % | ||||||||||||
57,711 | 0.5 | % | 62,720 | 75,967 | 95,250 | (8.0 | )% | (39.4 | )% | ||||||||||||
Other | 407,324 | 3.8 | % | 418,498 | 415,902 | 406,230 | (2.7 | )% | 0.3 | % | |||||||||||
Total loans receivable | $ | 10,611,417 | 100.0 | % | $ | 10,472,407 | $ | 10,146,724 | $ | 9,827,096 | 1.3 | % | 8.0 | % | |||||||
ADDITIONAL FINANCIAL INFORMATION | ||||||||
(dollars in thousands) | ||||||||
LOAN ORIGINATIONS | Quarters Ended | |||||||
Commercial real estate | $ | 62,337 | $ | 94,640 | $ | 92,062 | ||
Multifamily real estate | 12,725 | 3,441 | 4,603 | |||||
Construction and land | 421,656 | 488,980 | 444,365 | |||||
Commercial business | 157,833 | 128,404 | 218,044 | |||||
Agricultural business | 17,466 | 28,367 | 9,879 | |||||
One-to four-family residential | 43,622 | 52,618 | 92,701 | |||||
Consumer | 70,043 | 112,555 | 126,940 | |||||
Total loan originations (excluding loans held for sale) | $ | 785,682 | $ | 909,005 | $ | 988,594 |
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||
(dollars in thousands) | ||||||||||||
Quarters Ended | ||||||||||||
CHANGE IN THE | ||||||||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS | ||||||||||||
Balance, beginning of period | $ | 144,680 | $ | 141,457 | $ | 128,702 | ||||||
Provision for credit losses – loans | 2,943 | 3,559 | 6,347 | |||||||||
Recoveries of loans previously charged off: | ||||||||||||
Commercial real estate | 170 | 74 | 88 | |||||||||
Construction and land | 29 | — | — | |||||||||
One- to four-family real estate | 59 | 36 | 25 | |||||||||
Commercial business | 403 | 524 | 924 | |||||||||
Agricultural business, including secured by farmland | 19 | 2 | 252 | |||||||||
Consumer | 126 | 117 | 85 | |||||||||
806 | 753 | 1,374 | ||||||||||
Loans charged off: | ||||||||||||
Construction and land | — | (156 | ) | (25 | ) | |||||||
One- to four-family real estate | — | (4 | ) | — | ||||||||
Commercial business | (616 | ) | (566 | ) | (138 | ) | ||||||
Agricultural business, including secured by farmland | (564 | ) | — | (42 | ) | |||||||
Consumer | (289 | ) | (363 | ) | (300 | ) | ||||||
(1,469 | ) | (1,089 | ) | (505 | ) | |||||||
Net (charge-offs) recoveries | (663 | ) | (336 | ) | 869 | |||||||
Balance, end of period | $ | 146,960 | $ | 144,680 | $ | 135,918 | ||||||
Net (charge-offs) recoveries / Average loans receivable | (0.006 | )% | (0.003 | )% | 0.009 | % |
ALLOCATION OF | ||||||||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS | ||||||||||||
Commercial real estate | $ | 44,016 | $ | 43,636 | $ | 44,365 | ||||||
Multifamily real estate | 8,804 | 8,039 | 7,114 | |||||||||
Construction and land | 29,389 | 29,844 | 27,985 | |||||||||
One- to four-family real estate | 17,925 | 16,737 | 12,394 | |||||||||
Commercial business | 34,065 | 33,880 | 31,854 | |||||||||
Agricultural business, including secured by farmland | 3,718 | 3,573 | 3,455 | |||||||||
Consumer | 9,043 | 8,971 | 8,751 | |||||||||
Total allowance for credit losses – loans | $ | 146,960 | $ | 144,680 | $ | 135,918 | ||||||
Allowance for credit losses - loans / Total loans receivable | 1.38 | % | 1.38 | % | 1.38 | % | ||||||
Allowance for credit losses - loans / Non-performing loans | 560 | % | 513 | % | 895 | % |
Quarters Ended | ||||||||||
CHANGE IN THE | ||||||||||
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS | ||||||||||
Balance, beginning of period | $ | 14,664 | $ | 13,443 | $ | 14,246 | ||||
Provision (recapture) for credit losses - unfunded loan commitments | 346 | 1,221 | (205 | ) | ||||||
Balance, end of period | $ | 15,010 | $ | 14,664 | $ | 14,041 |
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||
(dollars in thousands) | |||||||||||||||
NON-PERFORMING ASSETS | |||||||||||||||
Loans on non-accrual status: | |||||||||||||||
Secured by real estate: | |||||||||||||||
Commercial | $ | 1,365 | $ | 2,478 | $ | 3,683 | $ | 6,997 | |||||||
Construction and land | 5,538 | 2,280 | 181 | 299 | |||||||||||
One- to four-family | 5,480 | 7,605 | 5,236 | 2,381 | |||||||||||
Commercial business | 5,289 | 8,439 | 9,886 | 1,462 | |||||||||||
Agricultural business, including secured by farmland | 3,170 | 3,997 | 594 | 594 | |||||||||||
Consumer | 3,378 | 3,272 | 2,126 | 1,779 | |||||||||||
24,220 | 28,071 | 21,706 | 13,512 | ||||||||||||
Loans more than 90 days delinquent, still on accrual: | |||||||||||||||
Secured by real estate: | |||||||||||||||
One- to four-family | 1,799 | 60 | 1,023 | 1,556 | |||||||||||
Commercial business | — | — | — | 64 | |||||||||||
Consumer | 245 | 49 | 264 | 61 | |||||||||||
2,044 | 109 | 1,287 | 1,681 | ||||||||||||
Total non-performing loans | 26,264 | 28,180 | 22,993 | 15,193 | |||||||||||
REO | 546 | 546 | 340 | 340 | |||||||||||
Other repossessed assets | — | — | 17 | 17 | |||||||||||
Total non-performing assets | $ | 26,810 | $ | 28,726 | $ | 23,350 | $ | 15,550 | |||||||
Total non-performing assets to total assets | 0.17 | % | 0.18 | % | 0.15 | % | 0.10 | % |
LOANS BY CREDIT RISK RATING | |||||||||||
Pass | $ | 10,467,498 | $ | 10,315,687 | $ | 10,000,493 | $ | 9,672,473 | |||
Special Mention | 19,394 | 11,745 | 9,081 | 18,251 | |||||||
Substandard | 124,525 | 144,975 | 137,150 | 136,372 | |||||||
Total | $ | 10,611,417 | $ | 10,472,407 | $ | 10,146,724 | $ | 9,827,096 |
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||
DEPOSIT COMPOSITION | Percentage Change | |||||||||||||||||
Prior Qtr | Prior Yr Qtr | |||||||||||||||||
Non-interest-bearing | $ | 5,197,854 | $ | 5,369,187 | $ | 6,176,998 | $ | 6,507,523 | (3.2 | )% | (20.1 | )% | ||||||
Interest-bearing checking | 2,006,866 | 1,908,402 | 1,811,153 | 1,856,244 | 5.2 | % | 8.1 | % | ||||||||||
Regular savings accounts | 2,751,453 | 2,588,298 | 2,710,090 | 2,824,711 | 6.3 | % | (2.6 | )% | ||||||||||
Money market accounts | 1,760,066 | 1,876,569 | 2,198,288 | 2,323,844 | (6.2 | )% | (24.3 | )% | ||||||||||
Total interest-bearing transaction and savings accounts | 6,518,385 | 6,373,269 | 6,719,531 | 7,004,799 | 2.3 | % | (6.9 | )% | ||||||||||
Total core deposits | 11,716,239 | 11,742,456 | 12,896,529 | 13,512,322 | (0.2 | )% | (13.3 | )% | ||||||||||
Interest-bearing certificates | 1,458,313 | 1,356,600 | 723,530 | 721,944 | 7.5 | % | 102.0 | % | ||||||||||
Total deposits | $ | 13,174,552 | $ | 13,099,056 | $ | 13,620,059 | $ | 14,234,266 | 0.6 | % | (7.4 | )% |
GEOGRAPHIC CONCENTRATION OF DEPOSITS | |||||||||||||||||||||
Percentage Change | |||||||||||||||||||||
Amount | Percentage | Amount | Amount | Amount | Prior Qtr | Prior Yr Qtr | |||||||||||||||
$ | 7,241,341 | 55.0 | % | $ | 7,255,731 | $ | 7,563,056 | $ | 7,845,755 | (0.2 | )% | (7.7 | )% | ||||||||
2,918,446 | 22.1 | % | 2,914,267 | 2,998,572 | 3,148,520 | 0.1 | % | (7.3 | )% | ||||||||||||
2,342,345 | 17.8 | % | 2,257,247 | 2,331,524 | 2,493,977 | 3.8 | % | (6.1 | )% | ||||||||||||
672,420 | 5.1 | % | 671,811 | 726,907 | 746,014 | 0.1 | % | (9.9 | )% | ||||||||||||
Total deposits | $ | 13,174,552 | 100.0 | % | $ | 13,099,056 | $ | 13,620,059 | $ | 14,234,266 | 0.6 | % | (7.4 | )% |
INCLUDED IN TOTAL DEPOSITS | ||||||||||||
Public non-interest-bearing accounts | $ | 169,058 | $ | 191,591 | $ | 212,533 | $ | 192,742 | ||||
Public interest-bearing transaction & savings accounts | 188,831 | 189,140 | 180,326 | 172,567 | ||||||||
Public interest-bearing certificates | 46,349 | 45,840 | 26,810 | 33,787 | ||||||||
Total public deposits | $ | 404,238 | $ | 426,571 | $ | 419,669 | $ | 399,096 | ||||
Collateralized public deposits | $ | 300,189 | $ | 309,665 | $ | 304,244 | $ | 301,853 | ||||
Total brokered deposits | $ | 162,856 | $ | 203,649 | $ | — | $ | — | ||||
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT | ||||||||||||
Number of deposit accounts | 466,159 | 467,490 | 471,140 | 477,082 | ||||||||
Average account balance per account | $ | 28 | $ | 28 | $ | 29 | $ | 30 |
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 | $ | 1,873,419 | 14.34 | % | $ | 1,045,239 | 8.00 | % | $ | 1,306,548 | 10.00 | % | ||||||
Tier 1 capital to risk-weighted assets | 1,621,146 | 12.41 | % | 783,929 | 6.00 | % | 783,929 | 6.00 | % | |||||||||
Tier 1 leverage capital to average assets | 1,621,146 | 10.40 | % | 623,306 | 4.00 | % | n/a | n/a | ||||||||||
Common equity tier 1 capital to risk-weighted assets | 1,534,646 | 11.75 | % | 587,947 | 4.50 | % | n/a | n/a | ||||||||||
Total capital to risk-weighted assets | 1,768,801 | 13.54 | % | 1,045,221 | 8.00 | % | 1,306,526 | 10.00 | % | |||||||||
Tier 1 capital to risk-weighted assets | 1,616,528 | 12.37 | % | 783,916 | 6.00 | % | 1,045,221 | 8.00 | % | |||||||||
Tier 1 leverage capital to average assets | 1,616,528 | 10.38 | % | 623,184 | 4.00 | % | 778,980 | 5.00 | % | |||||||||
Common equity tier 1 capital to risk-weighted assets | 1,616,528 | 12.37 | % | 587,937 | 4.50 | % | 849,242 | 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 | $ | 56,697 | $ | 765 | 5.35 | % | $ | 56,073 | $ | 738 | 5.28 | % | $ | 68,608 | $ | 676 | 3.91 | % | |||||||||||
Mortgage loans | 8,596,705 | 118,285 | 5.46 | % | 8,413,392 | 112,097 | 5.34 | % | 7,841,018 | 94,581 | 4.79 | % | |||||||||||||||||
Commercial/agricultural loans | 1,822,609 | 29,866 | 6.50 | % | 1,763,264 | 27,616 | 6.28 | % | 1,670,595 | 20,418 | 4.85 | % | |||||||||||||||||
SBA PPP loans | 4,298 | 28 | 2.58 | % | 5,247 | 67 | 5.12 | % | 21,943 | 613 | 11.08 | % | |||||||||||||||||
Consumer and other loans | 138,723 | 2,226 | 6.37 | % | 138,902 | 2,137 | 6.17 | % | 120,583 | 1,824 | 6.00 | % | |||||||||||||||||
Total loans(1) | 10,619,032 | 151,170 | 5.65 | % | 10,376,878 | 142,655 | 5.51 | % | 9,722,747 | 118,112 | 4.82 | % | |||||||||||||||||
Mortgage-backed securities | 2,863,345 | 17,834 | 2.47 | % | 2,958,700 | 18,429 | 2.50 | % | 3,183,837 | 17,704 | 2.21 | % | |||||||||||||||||
Other securities | 1,071,389 | 12,128 | 4.49 | % | 1,184,503 | 12,932 | 4.38 | % | 1,671,305 | 13,578 | 3.22 | % | |||||||||||||||||
Interest-bearing deposits with banks | 43,594 | 529 | 4.81 | % | 44,922 | 557 | 4.97 | % | 778,196 | 4,406 | 2.25 | % | |||||||||||||||||
FHLB stock | 16,443 | 385 | 9.29 | % | 25,611 | 157 | 2.46 | % | 10,000 | 75 | 2.98 | % | |||||||||||||||||
Total investment securities | 3,994,771 | 30,876 | 3.07 | % | 4,213,736 | 32,075 | 3.05 | % | 5,643,338 | 35,763 | 2.51 | % | |||||||||||||||||
Total interest-earning assets | 14,613,803 | 182,046 | 4.94 | % | 14,590,614 | 174,730 | 4.80 | % | 15,366,085 | 153,875 | 3.97 | % | |||||||||||||||||
Non-interest-earning assets | 932,364 | 939,100 | 1,100,313 | ||||||||||||||||||||||||||
Total assets | $ | 15,546,167 | $ | 15,529,714 | $ | 16,466,398 | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 1,971,179 | 4,190 | 0.84 | % | $ | 1,870,605 | 2,331 | 0.50 | % | $ | 1,862,887 | 429 | 0.09 | % | ||||||||||||||
Savings accounts | 2,659,890 | 8,400 | 1.25 | % | 2,536,713 | 4,895 | 0.77 | % | 2,822,153 | 481 | 0.07 | % | |||||||||||||||||
Money market accounts | 1,793,953 | 6,639 | 1.47 | % | 1,957,553 | 6,007 | 1.23 | % | 2,378,851 | 769 | 0.13 | % | |||||||||||||||||
Certificates of deposit | 1,412,542 | 11,772 | 3.31 | % | 1,126,647 | 7,306 | 2.60 | % | 740,014 | 728 | 0.39 | % | |||||||||||||||||
Total interest-bearing deposits | 7,837,564 | 31,001 | 1.57 | % | 7,491,518 | 20,539 | 1.10 | % | 7,803,905 | 2,407 | 0.12 | % | |||||||||||||||||
Non-interest-bearing deposits | 5,316,023 | — | — | % | 5,445,960 | — | — | % | 6,458,749 | — | — | % | |||||||||||||||||
Total deposits | 13,153,587 | 31,001 | 0.94 | % | 12,937,478 | 20,539 | 0.64 | % | 14,262,654 | 2,407 | 0.07 | % | |||||||||||||||||
Other interest-bearing liabilities: | |||||||||||||||||||||||||||||
FHLB advances | 161,087 | 2,233 | 5.50 | % | 390,705 | 5,157 | 5.29 | % | — | — | — | % | |||||||||||||||||
Other borrowings | 194,659 | 1,099 | 2.24 | % | 188,060 | 771 | 1.64 | % | 242,658 | 81 | 0.13 | % | |||||||||||||||||
Junior subordinated debentures and subordinated notes | 182,678 | 2,965 | 6.44 | % | 185,096 | 2,824 | 6.12 | % | 189,178 | 2,188 | 4.59 | % | |||||||||||||||||
Total borrowings | 538,424 | 6,297 | 4.64 | % | 763,861 | 8,752 | 4.60 | % | 431,836 | 2,269 | 2.08 | % | |||||||||||||||||
Total funding liabilities | 13,692,011 | 37,298 | 1.08 | % | 13,701,339 | 29,291 | 0.86 | % | 14,694,490 | 4,676 | 0.13 | % | |||||||||||||||||
Other non-interest-bearing liabilities(2) | 296,578 | 279,232 | 257,058 | ||||||||||||||||||||||||||
Total liabilities | 13,988,589 | 13,980,571 | 14,951,548 | ||||||||||||||||||||||||||
Shareholders’ equity | 1,557,578 | 1,549,143 | 1,514,850 | ||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 15,546,167 | $ | 15,529,714 | $ | 16,466,398 | |||||||||||||||||||||||
Net interest income/rate spread (tax equivalent) | $ | 144,748 | 3.86 | % | $ | 145,439 | 3.94 | % | $ | 149,199 | 3.84 | % | |||||||||||||||||
Net interest margin (tax equivalent) | 3.93 | % | 4.00 | % | 3.85 | % | |||||||||||||||||||||||
Reconciliation to reported net interest income: | |||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis | (2,982 | ) | (2,921 | ) | (2,756 | ) | |||||||||||||||||||||||
Net interest income and margin, as reported | $ | 141,766 | 3.85 | % | $ | 142,518 | 3.92 | % | $ | 146,443 | 3.78 | % | |||||||||||||||||
Additional Key Financial Ratios: | |||||||||||||||||||||||||||||
Return on average assets | 1.17 | % | 1.02 | % | 1.18 | % | |||||||||||||||||||||||
Return on average equity | 11.68 | % | 10.25 | % | 12.85 | % | |||||||||||||||||||||||
Average equity/average assets | 10.02 | % | 9.98 | % | 9.20 | % | |||||||||||||||||||||||
Average interest-earning assets/average interest-bearing liabilities | 174.47 | % | 176.74 | % | 186.58 | % | |||||||||||||||||||||||
Average interest-earning assets/average funding liabilities | 106.73 | % | 106.49 | % | 104.57 | % | |||||||||||||||||||||||
Non-interest income/average assets | 0.32 | % | 0.22 | % | 0.38 | % | |||||||||||||||||||||||
Non-interest expense/average assets | 2.45 | % | 2.46 | % | 2.29 | % | |||||||||||||||||||||||
Efficiency ratio(4) | 62.10 | % | 63.21 | % | 58.65 | % | |||||||||||||||||||||||
Adjusted efficiency ratio(5) | 59.00 | % | 58.58 | % | 57.04 | % |
(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) Non-interest expense divided by the total of net interest income and non-interest income.
(5) Adjusted non-interest expense divided by adjusted revenue. Represent 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.
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
(rates / ratios annualized) | |||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD | Nine Months Ended | ||||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost(3) | Average Balance | Interest and Dividends | Yield/Cost(3) | ||||||||||||||
Interest-earning assets: | |||||||||||||||||||
Held for sale loans | $ | 55,157 | $ | 2,174 | 5.27 | % | $ | 94,289 | $ | 2,446 | 3.47 | % | |||||||
Mortgage loans | 8,427,034 | 337,282 | 5.35 | % | 7,581,540 | 261,021 | 4.60 | % | |||||||||||
Commercial/agricultural loans | 1,763,248 | 82,658 | 6.27 | % | 1,574,957 | 52,582 | 4.46 | % | |||||||||||
SBA PPP loans | 5,437 | 145 | 3.57 | % | 51,890 | 4,453 | 11.47 | % | |||||||||||
Consumer and other loans | 138,246 | 6,478 | 6.26 | % | 117,892 | 5,207 | 5.91 | % | |||||||||||
Total loans(1) | 10,389,122 | 428,737 | 5.52 | % | 9,420,568 | 325,709 | 4.62 | % | |||||||||||
Mortgage-backed securities | 2,971,124 | 55,386 | 2.49 | % | 3,110,769 | 48,904 | 2.10 | % | |||||||||||
Other securities | 1,220,074 | 40,155 | 4.40 | % | 1,624,138 | 32,333 | 2.66 | % | |||||||||||
Interest-bearing deposits with banks | 47,330 | 1,694 | 4.79 | % | 1,214,076 | 7,507 | 0.83 | % | |||||||||||
FHLB stock | 18,772 | 632 | 4.50 | % | 10,579 | 281 | 3.55 | % | |||||||||||
Total investment securities | 4,257,300 | 97,867 | 3.07 | % | 5,959,562 | 89,025 | 2.00 | % | |||||||||||
Total interest-earning assets | 14,646,422 | 526,604 | 4.81 | % | 15,380,130 | 414,734 | 3.61 | % | |||||||||||
Non-interest-earning assets | 930,934 | 1,250,719 | |||||||||||||||||
Total assets | $ | 15,577,356 | $ | 16,630,849 | |||||||||||||||
Deposits: | |||||||||||||||||||
Interest-bearing checking accounts | $ | 1,874,518 | 7,427 | 0.53 | % | $ | 1,915,184 | 991 | 0.07 | % | |||||||||
Savings accounts | 2,604,089 | 15,179 | 0.78 | % | 2,826,757 | 1,187 | 0.06 | % | |||||||||||
Money market accounts | 1,971,514 | 16,445 | 1.12 | % | 2,400,267 | 1,806 | 0.10 | % | |||||||||||
Certificates of deposit | 1,118,874 | 21,733 | 2.60 | % | 782,548 | 2,517 | 0.43 | % | |||||||||||
Total interest-bearing deposits | 7,568,995 | 60,784 | 1.07 | % | 7,924,756 | 6,501 | 0.11 | % | |||||||||||
Non-interest-bearing deposits | 5,571,896 | — | — | % | 6,445,579 | — | — | % | |||||||||||
Total deposits | 13,140,891 | 60,784 | 0.62 | % | 14,370,335 | 6,501 | 0.06 | % | |||||||||||
Other interest-bearing liabilities: | |||||||||||||||||||
FHLB advances | 219,461 | 8,654 | 5.27 | % | 13,919 | 291 | 2.80 | % | |||||||||||
Other borrowings | 203,932 | 2,251 | 1.48 | % | 253,545 | 245 | 0.13 | % | |||||||||||
Junior subordinated debentures and subordinated notes | 186,964 | 8,549 | 6.11 | % | 190,103 | 5,866 | 4.13 | % | |||||||||||
Total borrowings | 610,357 | 19,454 | 4.26 | % | 457,567 | 6,402 | 1.87 | % | |||||||||||
Total funding liabilities | 13,751,248 | 80,238 | 0.78 | % | 14,827,902 | 12,903 | 0.12 | % | |||||||||||
Other non-interest-bearing liabilities(2) | 289,558 | 241,010 | |||||||||||||||||
Total liabilities | 14,040,806 | 15,068,912 | |||||||||||||||||
Shareholders’ equity | 1,536,550 | 1,561,937 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 15,577,356 | $ | 16,630,849 | |||||||||||||||
Net interest income/rate spread (tax equivalent) | $ | 446,366 | 4.03 | % | $ | 401,831 | 3.49 | % | |||||||||||
Net interest margin (tax equivalent) | 4.07 | % | 3.49 | % | |||||||||||||||
Reconciliation to reported net interest income: | |||||||||||||||||||
Adjustments for taxable equivalent basis | (8,770 | ) | (7,723 | ) | |||||||||||||||
Net interest income and margin, as reported | $ | 437,596 | 3.99 | % | $ | 394,108 | 3.43 | % | |||||||||||
Additional Key Financial Ratios: | |||||||||||||||||||
Return on average assets | 1.21 | % | 1.13 | % | |||||||||||||||
Return on average equity | 12.27 | % | 12.07 | % | |||||||||||||||
Average equity/average assets | 9.86 | % | 9.39 | % | |||||||||||||||
Average interest-earning assets/average interest-bearing liabilities | 179.07 | % | 183.48 | % | |||||||||||||||
Average interest-earning assets/average funding liabilities | 106.51 | % | 103.72 | % | |||||||||||||||
Non-interest income/average assets | 0.26 | % | 0.50 | % | |||||||||||||||
Non-interest expense/average assets | 2.45 | % | 2.24 | % | |||||||||||||||
Efficiency ratio(4) | 61.10 | % | 60.99 | % | |||||||||||||||
Adjusted efficiency ratio(5) | 57.19 | % | 59.39 | % |
(1) Average balances include loans accounted for on a nonaccrual basis and 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) Non-interest expense divided by the total of net interest income and non-interest income.
(5) Adjusted non-interest expense divided by adjusted revenue. These represent 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.
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 | Nine Months Ended | ||||||||||||||
Net interest income (GAAP) | $ | 141,766 | $ | 142,518 | $ | 146,443 | $ | 437,596 | $ | 394,108 | ||||||
Non-interest income (GAAP) | 12,658 | 8,422 | 15,585 | 30,357 | 62,185 | |||||||||||
Total revenue (GAAP) | 154,424 | 150,940 | 162,028 | 467,953 | 456,293 | |||||||||||
Exclude: Net loss (gain) on sale of securities | 2,657 | 4,527 | (6 | ) | 14,436 | (473 | ) | |||||||||
Net change in valuation of financial instruments carried at fair value | 654 | 3,151 | (532 | ) | 4,357 | (650 | ) | |||||||||
Gain on sale of branches | — | — | — | — | (7,804 | ) | ||||||||||
Adjusted revenue (non-GAAP) | $ | 157,735 | $ | 158,618 | $ | 161,490 | $ | 486,746 | $ | 447,366 |
ADJUSTED EARNINGS | Quarters Ended | Nine Months Ended | |||||||||||||||||
Net income (GAAP) | $ | 45,854 | $ | 39,591 | $ | 49,070 | $ | 141,000 | $ | 140,998 | |||||||||
Exclude: Net loss (gain) on sale of securities | 2,657 | 4,527 | (6 | ) | 14,436 | (473 | ) | ||||||||||||
Net change in valuation of financial instruments carried at fair value | 654 | 3,151 | (532 | ) | 4,357 | (650 | ) | ||||||||||||
Gain on sale of branches | — | — | — | — | (7,804 | ) | |||||||||||||
Banner Forward expenses(1) | 996 | 195 | 411 | 1,334 | 4,455 | ||||||||||||||
Loss on extinguishment of debt | — | — | — | — | 793 | ||||||||||||||
Related net tax (benefit) expense | (1,033 | ) | (1,890 | ) | 31 | (4,830 | ) | 883 | |||||||||||
Total adjusted earnings (non-GAAP) | $ | 49,128 | $ | 45,574 | $ | 48,974 | $ | 156,297 | $ | 138,202 | |||||||||
Diluted earnings per share (GAAP) | $ | 1.33 | $ | 1.15 | $ | 1.43 | $ | 4.09 | $ | 4.09 | |||||||||
Diluted adjusted earnings per share (non-GAAP) | $ | 1.43 | $ | 1.32 | $ | 1.42 | $ | 4.54 | $ | 4.01 |
(1) Included in miscellaneous expenses in results of operations.
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
ADJUSTED EFFICIENCY RATIO | Quarters Ended | Nine Months Ended | ||||||||||||||||||
Non-interest expense (GAAP) | $ | 95,891 | $ | 95,405 | $ | 95,034 | $ | 285,917 | $ | 278,282 | ||||||||||
Exclude: Banner Forward expenses(1) | (996 | ) | (195 | ) | (411 | ) | (1,334 | ) | (4,455 | ) | ||||||||||
CDI amortization | (857 | ) | (991 | ) | (1,215 | ) | (2,898 | ) | (4,064 | ) | ||||||||||
State/municipal tax expense | (1,359 | ) | (1,229 | ) | (1,223 | ) | (3,888 | ) | (3,389 | ) | ||||||||||
REO operations | 383 | (75 | ) | (68 | ) | 585 | 132 | |||||||||||||
Loss on extinguishment of debt | — | — | — | — | (793 | ) | ||||||||||||||
Adjusted non-interest expense (non-GAAP) | $ | 93,062 | $ | 92,915 | $ | 92,117 | $ | 278,382 | $ | 265,713 | ||||||||||
Net interest income (GAAP) | $ | 141,766 | $ | 142,518 | $ | 146,443 | $ | 437,596 | $ | 394,108 | ||||||||||
Non-interest income (GAAP) | 12,658 | 8,422 | 15,585 | 30,357 | 62,185 | |||||||||||||||
Total revenue (GAAP) | 154,424 | 150,940 | 162,028 | 467,953 | 456,293 | |||||||||||||||
Exclude: Net loss (gain) on sale of securities | 2,657 | 4,527 | (6 | ) | 14,436 | (473 | ) | |||||||||||||
Net change in valuation of financial instruments carried at fair value | 654 | 3,151 | (532 | ) | 4,357 | (650 | ) | |||||||||||||
Gain on sale of branches | — | — | — | — | (7,804 | ) | ||||||||||||||
Adjusted revenue (non-GAAP) | $ | 157,735 | $ | 158,618 | $ | 161,490 | $ | 486,746 | $ | 447,366 | ||||||||||
Efficiency ratio (GAAP) | 62.10 | % | 63.21 | % | 58.65 | % | 61.10 | % | 60.99 | % | ||||||||||
Adjusted efficiency ratio (non-GAAP) | 59.00 | % | 58.58 | % | 57.04 | % | 57.19 | % | 59.39 | % |
(1) Included in miscellaneous expenses in results of operations.
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS | ||||||||||||||||
Shareholders’ equity (GAAP) | $ | 1,520,607 | $ | 1,542,513 | $ | 1,456,432 | $ | 1,408,659 | ||||||||
Exclude goodwill and other intangible assets, net | 379,663 | 380,520 | 382,561 | 383,776 | ||||||||||||
Tangible common shareholders’ equity (non-GAAP) | $ | 1,140,944 | $ | 1,161,993 | $ | 1,073,871 | $ | 1,024,883 | ||||||||
Total assets (GAAP) | $ | 15,507,880 | $ | 15,584,736 | $ | 15,833,431 | $ | 16,360,809 | ||||||||
Exclude goodwill and other intangible assets, net | 379,663 | 380,520 | 382,561 | 383,776 | ||||||||||||
Total tangible assets (non-GAAP) | $ | 15,128,217 | $ | 15,204,216 | $ | 15,450,870 | $ | 15,977,033 | ||||||||
Common shareholders’ equity to total assets (GAAP) | 9.81 | % | 9.90 | % | 9.20 | % | 8.61 | % | ||||||||
Tangible common shareholders’ equity to tangible assets (non-GAAP) | 7.54 | % | 7.64 | % | 6.95 | % | 6.41 | % | ||||||||
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE | ||||||||||||||||
Tangible common shareholders’ equity (non-GAAP) | $ | 1,140,944 | $ | 1,161,993 | $ | 1,073,871 | $ | 1,024,883 | ||||||||
Common shares outstanding at end of period | 34,345,949 | 34,344,627 | 34,194,018 | 34,191,759 | ||||||||||||
Common shareholders’ equity (book value) per share (GAAP) | $ | 44.27 | $ | 44.91 | $ | 42.59 | $ | 41.20 | ||||||||
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) | $ | 33.22 | $ | 33.83 | $ | 31.41 | $ | 29.97 |
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Source:
2023 GlobeNewswire, Inc., source