WALLA WALLA, Wash., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Banner
Corporation (NASDAQ GSM: BANR) (“Banner”), the parent company of
Banner Bank, today reported net income of $49.9 million, or $1.44
per diluted share, for the third quarter of 2021, an 8% decrease
compared to $54.4 million, or $1.56 per diluted share, for the
second quarter of 2021 and a 36% increase compared to $36.5
million, or $1.03 per diluted share, for the third quarter of 2020.
Banner’s third quarter 2021 results include $8.6 million in
recapture of provision for credit losses, compared to $10.3 million
in recapture of provision for credit losses in the preceding
quarter and $15.2 million in provision for credit losses in the
third quarter of 2020. The third quarter 2020 provision for credit
losses was primarily the result of the impact of the COVID-19
pandemic. In the first nine months of 2021, net income was $151.1
million, or $4.32 per diluted share, compared to net income of
$77.0 million, or $2.17 per diluted share for the same period a
year earlier. Banner’s first nine months of 2021 results include
$28.1 million in recapture of provision for credit losses, compared
to $67.3 million in provision for credit losses in the first nine
months of 2020.
Banner announced that its Board of Directors
declared a regular quarterly cash dividend of $0.41 per share. The
dividend will be payable November 12, 2021, to common shareholders
of record on November 02, 2021.
“Our third quarter 2021 performance continues to
demonstrate the success of our super community bank model, which is
based on responsive service that generates client loyalty and
attracts new client relationships,” said Mark Grescovich, President
and CEO. “We benefited from continued core deposit growth and an
acceleration of SBA PPP loan fee income as a result of SBA PPP loan
forgiveness. The unprecedented level of market liquidity and our
continued focus on building client relationships contributed to our
core deposits increasing 18% compared to September 30, 2020.
Additionally, Banner had provided 13,293 SBA PPP loans totaling
nearly $1.61 billion as of September 30, 2021. As of quarter
end, SBA forgiveness had been received for 10,548 SBA PPP loans
totaling $1.23 billion. Our essential onsite employees, such
as those working in our branches, continue to serve clients in
person. In July 2021, we began to normalize our operations by
returning additional groups of employees back to bank worksites;
however, due to the recent increases in COVID-19 cases, we have
currently suspended returning our remaining employees to bank
worksites.”
“After a comprehensive review of our business,
we implemented Banner Forward, a bank-wide initiative to drive
revenue growth and reduce operating expense,” said Grescovich.
“Implementation of this plan commenced during the third quarter of
2021 with full implementation expected in 2023, with the goal of
producing meaningful results in the near term while staying true to
our mission and value proposition of being connected, knowledgeable
and responsive to our clients, communities and employees. The focus
of Banner Forward is to accelerate growth in commercial banking,
deepen relationships with retail customers, advance technology
strategies to enhance our digital service channels, while
streamlining underwriting and back office processes. As part of
Banner Forward, we have identified potential additional
opportunities to rationalize our physical footprint. During the
third quarter of 2021, we incurred expenses of $7.6 million related
to Banner Forward.”
“Due to improvements in economic forecasts and
continued solid performance of the loan portfolio during the
current quarter, we recorded an $8.6 million recapture to our
provision for credit losses during the current quarter. This
compares to a $10.3 million recapture to our provision for credit
losses during the preceding quarter and a $15.2 million provision
for credit losses in the third quarter a year ago. Our allowance
for credit losses - loans remains strong at 1.52% of total loans
and 485% of non-performing loans at September 30, 2021,
compared to 1.53% of total loans and 481% of non-performing loans
at June 30, 2021,” said Grescovich.
At September 30, 2021, Banner Corporation
had $16.64 billion in assets, $9.08 billion in net loans and $14.16
billion in deposits. Banner operates 150 branch offices, including
branches located in eight of the top 20 largest western
Metropolitan Statistical Areas by population.
Third Quarter 2021
Highlights
- Revenues increased 4% to $155.5
million, compared to $149.9 million in the preceding quarter, and
increased 4% when compared to $149.2 million in the third quarter a
year ago.
- Net interest income, before the
recapture of provision for credit losses, increased to $130.1
million in the third quarter of 2021, compared to $127.6 million in
the preceding quarter and $121.0 million in the third quarter a
year ago.
- Net interest margin on a tax
equivalent basis was 3.47%, compared to 3.52% in the preceding
quarter and 3.72% in the third quarter a year ago.
- Mortgage banking revenues increased
30% to $9.8 million, compared to $7.5 million in the preceding
quarter, and decreased 41% compared to $16.6 million in the third
quarter a year ago.
- Return on average assets was 1.20%,
compared to 1.36% in the preceding quarter and 1.01% in the third
quarter a year ago.
- Net loans receivable decreased to
$9.08 billion at September 30, 2021, compared to $9.51 billion
at June 30, 2021, and decreased 9% when compared to $10.00 billion
at September 30, 2020.
- Non-performing assets decreased to
$29.7 million, or 0.18% of total assets, at September 30,
2021, compared to $31.5 million, or 0.19% of total assets in the
preceding quarter, and decreased from $36.7 million, or 0.25% of
total assets, at September 30, 2020.
- The allowance for credit losses -
loans was $139.9 million, or 1.52% of total loans receivable, as of
September 30, 2021, compared to $148.0 million, or 1.53% of
total loans receivable as of June 30, 2021 and $168.0 million or
1.65% of total loans receivable as of September 30, 2020.
- Core deposits (non-interest-bearing
and interest-bearing transaction and savings accounts) increased 4%
to $13.31 billion at September 30, 2021, compared to $12.76
billion at June 30, 2021, and increased 18% compared to $11.30
billion a year ago. Core deposits represented 94% of total deposits
at September 30, 2021.
- Dividends to shareholders were
$0.41 per share in the quarter ended September 30, 2021.
- Common shareholders’ equity per
share increased 1% to $48.67 at September 30, 2021, compared
to $48.31 at the preceding quarter end, and increased 4% from
$46.83 a year ago.
- Tangible common shareholders’
equity per share* increased 1% to $37.30 at September 30,
2021, compared to $36.99 at the preceding quarter end, and
increased 5% from $35.56 a year ago.
- Banner repurchased 300,000 shares
of its common stock during the quarter at an average cost of $55.50
per share.
*Tangible common shareholders’ equity per
share and the ratio of tangible common equity to tangible assets
(both of which exclude goodwill and other intangible assets, net),
and references to adjusted revenue (which excludes fair value
adjustments and net gain (loss) on the sale of securities from the
total of net interest income and non-interest income) and the
adjusted efficiency ratio (which excludes merger and
acquisition-related expenses, COVID-19 expenses, Banner Forward
expenses, amortization of core deposit intangibles, real estate
owned operations and state/municipal taxes from non-interest
expense divided by adjusted revenue) represent non-GAAP (Generally
Accepted Accounting Principles) financial measures. Management has
presented these non-GAAP financial measures in this earnings
release because it believes that they provide useful and
comparative information to assess trends in Banner’s core
operations reflected in the current quarter’s results and
facilitate the comparison of our performance with the performance
of our peers. Where applicable, comparable earnings information
using GAAP financial measures is also presented. See also Non-GAAP
Financial Measures reconciliation tables on the last two pages of
this press release.
Significant Recent Initiatives and
Events
In September 2021, Banner completed the
consolidation of five branches as it continues to see migration of
transactions to the digital space, reducing in-branch transactions.
During the past year, client adoption of mobile and digital banking
accelerated, while physical branch transaction volume declined.
Banner anticipates this shift in client service delivery channel
preference will continue after the COVID-19 pandemic related
restrictions have ended.
Income Statement Review
Net interest income, before the recapture of
provision for credit losses, was $130.1 million in the third
quarter of 2021, compared to $127.6 million in the preceding
quarter and $121.0 million in the third quarter a year ago.
Banner’s net interest margin on a tax equivalent
basis was 3.47% for the third quarter of 2021, a five basis-point
decrease compared to 3.52% in the preceding quarter and a 25
basis-point decrease compared to 3.72% in the third quarter a year
ago.
“Higher core deposit balances, resulting in an
increase in low yielding short term investments, adversely affected
our net interest margin during the quarter. This impact was partly
offset by higher interest income, primarily as a result of the
decline in low yielding SBA PPP loans and a corresponding
acceleration of the recognition of deferred loan fee income due to
loan repayments from SBA loan forgiveness,” said Grescovich.
“Additionally, the ongoing low interest rate environment continues
to place downward pressure on loan yields.” Acquisition accounting
adjustments added three basis points to the net interest margin in
both the current and preceding quarter and seven basis points in
the third quarter a year ago. The total purchase discount for
acquired loans was $11.5 million at September 30, 2021,
compared to $12.5 million at June 30, 2021, and $17.9 million at
September 30, 2020. In the first nine months of 2021, Banner’s
net interest margin on a tax equivalent basis was 3.48% compared to
3.93% in the first nine months of 2020.
Average interest-earning asset yields decreased
six basis points to 3.62% in the third quarter compared to 3.68%
for the preceding quarter and decreased 36 basis points compared to
3.98% in the third quarter a year ago. Average loan yields
increased 18 basis points to 4.88% compared to 4.70% in the
preceding quarter and increased 41 basis points compared to 4.47%
in the third quarter a year ago. The increase in average loan
yields during the current quarter compared to the preceding quarter
was primarily the result of the decline in the average balance of
low yielding SBA PPP loans due to loan repayments from SBA loan
forgiveness during the last two quarters, partially offset by lower
rates on new originations and adjustable-rate loans resetting to
lower current market rates. Loan discount accretion added five
basis points to average loan yields in both the current and
preceding quarter and nine basis points in the third quarter a year
ago. Deposit costs were 0.08% in the third quarter of 2021, a one
basis-point decrease compared to the preceding quarter and a nine
basis-point decrease compared to the third quarter a year ago. The
year-over-year decrease in quarterly deposit costs was primarily
the result of decreases in market interest rates during 2020. The
total cost of funds was 0.16% during the third quarter of 2021, a
one basis-point decrease compared to the preceding quarter and an
11 basis-point decrease compared to the third quarter a year
ago.
Banner recorded an $8.6 million recapture of
provision for credit losses in the current quarter (comprised of an
$8.9 million recapture of credit losses - loans and a $218,000
provision for credit losses - unfunded loan commitments). This
recapture compares to a $10.3 million recapture of provision for
credit losses in the prior quarter (comprised of an $8.1 million
recapture of provision for credit losses - loans and a $2.2 million
recapture of provision for credit losses - unfunded loan
commitments) and a $15.2 million provision for credit losses in the
third quarter a year ago (comprised of a $13.6 million provision
for credit losses - loans and a $1.5 million recapture of provision
for credit losses - unfunded loan commitments). The recapture of
provision for credit losses for the current and preceding quarters
primarily reflects improvement in forecasted economic indicators
and a decrease in adversely classified loans. The provision for
credit losses recorded in the third quarter a year ago primarily
reflected expected lifetime credit losses based upon the economic
conditions and the potential effects from forecasted deterioration
of economic metrics due to the COVID-19 pandemic based on the
outlook as of September 30, 2020.
Total non-interest income was $25.3 million in
the third quarter of 2021, compared to $22.3 million in the
preceding quarter and $28.2 million in the third quarter a year
ago. Deposit fees and other service charges were $10.5 million in
the third quarter of 2021, compared to $9.8 million in the
preceding quarter and $8.7 million in the third quarter a year ago.
The increase in deposit fees and other service charges from the
third quarter a year ago is primarily a result of increased
transaction deposit account activity and higher fees on certain
transactions. Mortgage banking revenues, including gains on one- to
four-family and multifamily loan sales and loan servicing fees,
increased to $9.8 million in the third quarter, compared to $7.5
million in the preceding quarter and decreased compared to $16.6
million in the third quarter of 2020. The higher mortgage banking
revenue quarter-over-quarter primarily reflects an increase in the
gain on sale margin on one- to four-family held-for-sale loans and
higher gains on the sale of multifamily held-for-sale loans. The
decrease compared to the third quarter of 2020 was primarily due to
a decrease in the gain on sale margin on one- to four-family
held-for-sale loans, partially offset by higher gains on the sale
of multifamily held-for-sale loans as well as a reduction in the
volume of one- to four-family loans sold. Home purchase activity
accounted for 68% of one- to four-family mortgage loan originations
in the third quarter of 2021, compared to 66% in the prior quarter
and 56% in the third quarter of 2020. In the first nine months of
2021, total non-interest income decreased 4% to $71.9 million,
compared to $75.1 million in the first nine months of 2020.
Banner’s third quarter 2021 results included a
$1.8 million net gain for fair value adjustments as a result of
changes in the valuation of financial instruments carried at fair
value, principally comprised of certain investment securities held
for trading, and a $56,000 net gain on the sale of securities. In
the preceding quarter, results included a $58,000 net gain for fair
value adjustments and a $77,000 net gain on the sale of securities.
In the third quarter a year ago, results included a $37,000 net
gain for fair value adjustments and a $644,000 net gain on the sale
of securities.
Total revenue increased 4% to $155.5 million for
the third quarter of 2021, compared to $149.9 million in the
preceding quarter, and increased 4% compared to $149.2 million in
the third quarter a year ago. Year-to-date, total revenues
increased 3% to $447.3 million compared to $435.0 million for the
same period one year earlier. Adjusted revenue* (the total of net
interest income and total non-interest income excluding the net
gain or loss on the sale of securities and the net change in
valuation of financial instruments) was $153.6 million in the third
quarter of 2021, compared to $149.8 million in the preceding
quarter and $148.6 million in the third quarter of 2020. In the
first nine months of the year, adjusted revenue* was $444.8
million, compared to $436.5 million in the first nine months of
2020.
Total non-interest expense was $102.1 million in
the third quarter of 2021, compared to $92.6 million in the
preceding quarter and $90.0 million in the third quarter of 2020.
The increase in non-interest expense for the current quarter
compared to the prior quarter primarily reflects an $8.0 million
increase in professional and legal expenses, primarily due to
increased consultant expense, which included $5.8 million of
expense related to the Banner Forward initiative in the current
quarter, compared to $1.5 million in the prior quarter, as
well as a $4.0 million accrual recorded related to pending
litigation during the current quarter. Additionally, payment and
card processing services expense increased $1.2 million primarily
reflecting an increase in fraud related losses. These increases for
the current quarter were partially offset by a $2.1 million
decrease from the preceding quarter in salary and employee benefits
expense related to a reduction in staffing. The year-over-year
quarterly increase in non-interest expense also reflects increases
in payment and card processing services expense, professional and
legal expenses, and miscellaneous non-interest expense. The
year-over-year quarterly increases in non-interest expense were
partially offset by decreases in salary and employee benefits and
COVID-19 expenses. COVID-19 expenses were $44,000 for the third
quarter of 2021, compared to $117,000 for the preceding quarter and
$778,000 in the third quarter a year ago. Year-to-date, total
non-interest expense was $288.3 million, compared to $274.0 million
in the same period a year earlier. Banner’s efficiency ratio was
65.70% for the current quarter, compared to 61.79% in the preceding
quarter and 60.32% in the year ago quarter. Banner’s adjusted
efficiency ratio* was 59.65% for the current quarter, compared to
58.50% in the preceding quarter and 58.02% in the year ago
quarter.
For the third quarter of 2021, Banner had $12.1
million in state and federal income tax expense for an effective
tax rate of 19.5%, reflecting the benefits from tax exempt income.
Banner’s statutory income tax rate is 23.7%, representing a blend
of the statutory federal income tax rate of 21.0% and apportioned
effects of the state income tax rates.
Balance Sheet Review
Total assets increased to $16.64 billion at
September 30, 2021, compared to $16.18 billion at June 30,
2021, and increased 14% when compared to $14.64 billion at
September 30, 2020. The total of securities and
interest-bearing deposits held at other banks was $6.03 billion at
September 30, 2021, compared to $5.19 billion at June 30, 2021
and $2.63 billion at September 30, 2020. The average effective
duration of Banner's securities portfolio was approximately 4.4
years at September 30, 2021, compared to 4.0 years at
September 30, 2020.
Net loans receivable decreased 4% to $9.08
billion at September 30, 2021, compared to $9.51 billion at
June 30, 2021, and decreased 9% when compared to $10.00 billion at
September 30, 2020. The decrease in net loans compared to the
prior quarter primarily reflects the forgiveness of SBA PPP loans.
SBA PPP loans decreased 62% to $310.2 million at September 30,
2021, compared to $825.1 million at June 30, 2021, and decreased
73% when compared to $1.15 billion at September 30, 2020. The
decrease in SBA PPP loans was partially offset by increases in
commercial real estate, multifamily real estate and one- to
four-family loans. Commercial real estate and multifamily real
estate loans increased 2% to $4.24 billion at September 30,
2021, compared to $4.14 billion at June 30, 2021, and increased 4%
compared to $4.07 billion a year ago. Commercial business loans
decreased 21% to $2.12 billion at September 30, 2021, compared
to $2.68 billion at June 30, 2021, and decreased 32% compared to
$3.11 billion a year ago, primarily due to SBA PPP loans forgiven.
Excluding PPP loans, commercial business loans decreased 3% to
$1.82 billion at September 30, 2021, compared to $1.87 billion
at June 30, 2021, and decreased 7% compared to $1.96 billion a year
ago. Agricultural business loans increased to $287.5 million at
September 30, 2021, compared to $265.4 million three months
earlier and decreased from $326.2 million a year ago. Total
construction, land and land development loans were $1.33 billion at
September 30, 2021, a 3% decrease from $1.37 billion at June
30, 2021, and a 5% increase compared to $1.27 billion a year
earlier. Consumer loans increased slightly to $561.2 million at
September 30, 2021, compared to $560.7 million at June 30,
2021, and decreased from $622.8 million a year ago. One- to
four-family loans increased to $682.4 million at September 30,
2021, compared to $637.7 million at June 30, 2021, and decreased
from $771.4 million a year ago. The year over year decrease
primarily reflects held for investment loans being refinanced and
sold as held for sale loans.
Loans held for sale were $63.7 million at
September 30, 2021, compared to $71.7 million at June 30,
2021, and $185.9 million at September 30, 2020. The volume of
one- to four- family residential mortgage loans sold was
$232.2 million in the current quarter, compared to
$266.7 million in the preceding quarter and
$327.7 million in the third quarter a year ago. During the
third quarter of 2021, Banner sold $96.1 million in
multifamily loans, compared to $83.9 million in the preceding
quarter and $108.6 million in the third quarter a year
ago.
Total deposits increased 4% to $14.16 billion at
September 30, 2021, compared to $13.64 billion at June 30,
2021, and increased 16% when compared to $12.22 billion a year ago.
The year-over-year increase in total deposits was due primarily to
SBA PPP loan funds deposited into client accounts and an increase
in general client liquidity due to reduced business investment and
consumer spending during the COVID-19 pandemic.
Non-interest-bearing account balances increased 5% to $6.40 billion
at September 30, 2021, compared to $6.09 billion at June 30,
2021, and increased 18% compared to $5.41 billion a year ago. Core
deposits were 94% of total deposits at both September 30, 2021
and June 30, 2021 and increased 18% compared to a year ago.
Certificates of deposit decreased to $851.1 million at
September 30, 2021, compared to $873.0 million at June 30,
2021, and decreased 7% compared to $915.4 million a year earlier.
FHLB borrowings decreased to $50.0 million at September 30,
2021, compared to $100.0 million at June 30, 2021 and decreased
from $150.0 million a year ago.
At September 30, 2021, total common
shareholders’ equity was $1.67 billion, or 10.02% of assets,
compared to $1.67 billion or 10.32% of assets at June 30, 2021, and
$1.65 billion or 11.25% of assets a year ago. At September 30,
2021, tangible common shareholders’ equity*, which excludes
goodwill and other intangible assets, net, was $1.28 billion, or
7.86% of tangible assets*, compared to $1.28 billion, or 8.09% of
tangible assets, at June 30, 2021, and $1.25 billion, or 8.78% of
tangible assets, a year ago. Banner’s tangible book value per
share* increased to $37.30 at September 30, 2021, compared to
$35.56 per share a year ago.
Banner and its subsidiary bank continue to
maintain capital levels in excess of the requirements to be
categorized as “well-capitalized.” At September 30, 2021,
Banner's common equity Tier 1 capital ratio was 11.25%, its Tier 1
leverage capital to average assets ratio was 8.79%, and its total
capital to risk-weighted assets ratio was 14.55%.
Credit Quality
The allowance for credit losses - loans was
$139.9 million at September 30, 2021, or 1.52% of total loans
receivable outstanding and 485% of non-performing loans, compared
to $148.0 million at June 30, 2021, or 1.53% of total loans
receivable outstanding and 481% of non-performing loans, and $168.0
million at September 30, 2020, or 1.65% of total loans
receivable outstanding and 482% of non-performing loans. In
addition to the allowance for credit losses - loans, Banner
maintains an allowance for credit losses - unfunded loan
commitments, which was $10.1 million at September 30, 2021,
compared to $9.9 million at June 30, 2021 and $12.1 million at
September 30, 2020. Net loan recoveries totaled $756,000 in
the third quarter of 2021, compared to net loan recoveries of
$55,000 in the preceding quarter and $2.0 million of net loan
charge-offs in the third quarter a year ago. Non-performing loans
were $28.9 million at September 30, 2021, compared to $30.8
million at June 30, 2021, and $34.8 million a year ago. Real estate
owned and other repossessed assets were $869,000 at
September 30, 2021, compared to $780,000 at June 30, 2021, and
$1.8 million a year ago.
Banner’s total substandard loans were $225.8
million at September 30, 2021, compared to $272.8 million at
June 30, 2021, and $423.2 million a year ago. The quarter over
quarter decrease reflects the payoff of substandard loans as well
as risk rating upgrades as certain industries impacted by the
COVID-19 pandemic have begun to stabilize.
Banner’s total non-performing assets were $29.7
million, or 0.18% of total assets, at September 30, 2021,
compared to $31.5 million, or 0.19% of total assets, at June 30,
2021, and $36.7 million, or 0.25% of total assets, a year ago.
At September 30, 2021, Banner had 41
mortgage loans totaling $12.4 million operating under
forbearance agreements due to COVID-19. Since these loans were
performing loans that were current on their payments prior to the
COVID-19 pandemic, these modifications are not considered to be
troubled debt restructurings pursuant to applicable accounting and
regulatory guidance.
Conference Call
Banner will host a conference call on Thursday,
October 21, 2021, at 8:00 a.m. PDT, to discuss its third quarter
results. To listen to the call on-line, go to www.bannerbank.com.
Investment professionals are invited to dial (866) 235-9915 to
participate in the call. A replay will be available for one week at
(877) 344-7529 using access code 10160533, or at
www.bannerbank.com.
About the Company
Banner Corporation is a $16.64 billion bank
holding company operating one commercial bank in four Western
states through a network of branches offering a full range of
deposit services and business, commercial real estate,
construction, residential, agricultural and consumer loans. Visit
Banner Bank on the Web at www.bannerbank.com.
Forward-Looking Statements
When used in this press release and in other
documents filed with or furnished to the Securities and Exchange
Commission (the “SEC”), in press releases or other public
stockholder communications, or in oral statements made with the
approval of an authorized executive officer, the words or phrases
“may,” “believe,” “will,” “will likely result,” “are expected to,”
“will continue,” “is anticipated,” “estimate,” “project,” “plans,”
“potential,” or similar expressions are intended to identify
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. You are cautioned not to
place undue reliance on any forward-looking statements, which speak
only as of the date such statements are made and based only on
information then actually known to Banner. Banner does not
undertake and specifically disclaims any obligation to revise any
forward-looking statements to reflect the occurrence of anticipated
or unanticipated events or circumstances after the date of such
statements. These statements may relate to future financial
performance, strategic plans or objectives, revenues or earnings
projections, or other financial information. By their nature,
these statements are subject to numerous uncertainties that could
cause actual results to differ materially from those anticipated in
the statements and could negatively affect Banner’s operating and
stock price performance.
The COVID-19, pandemic is adversely
affecting us, our clients, counterparties, employees, and
third-party service providers, and the ultimate extent of the
impacts on our business, financial position, results of operations,
liquidity, and prospects is uncertain. Deterioration in general
business and economic conditions, including increases in
unemployment rates, or turbulence in domestic or global financial
markets could adversely affect our revenues and the values of our
assets and liabilities, reduce the availability of funding, lead to
a tightening of credit, and increase stock price volatility. In
addition, changes to statutes, regulations, or regulatory policies
or practices as a result of, or in response to COVID-19, could
affect us in substantial and unpredictable ways. Other factors that
could cause actual results to differ materially from the results
anticipated or projected include, but are not limited to, the
following: (1) the credit risks of lending activities,
including changes in the level and direction of loan delinquencies
and write-offs and changes in estimates of the adequacy of the
allowance for credit losses, which could necessitate additional
provisions for credit losses, resulting both from loans originated
and loans acquired from other financial institutions; (2) results
of examinations by regulatory authorities, including the
possibility that any such regulatory authority may, among other
things, require increases in the allowance for credit losses or
writing down of assets or impose restrictions or penalties with
respect to Banner’s activities; (3) competitive pressures among
depository institutions; (4) interest rate movements and their
impact on client behavior and net interest margin; (5) the impact
of repricing and competitors’ pricing initiatives on loan and
deposit products; (6) fluctuations in real estate values; (7) the
ability to adapt successfully to technological changes to meet
clients’ needs and developments in the market place; (8) the
ability to access cost-effective funding; (9) changes in financial
markets; (10) changes in economic conditions in general and in
Washington, Idaho, Oregon and California in particular; (11) the
costs, effects and outcomes of litigation; (12) legislation or
regulatory changes, including but not limited to the impact of the
Dodd-Frank Act and regulations adopted thereunder, changes in
regulatory capital requirements pursuant to the implementation of
the Basel III capital standards, other governmental initiatives
affecting the financial services industry and changes in federal
and/or state tax laws or interpretations thereof by taxing
authorities; (13) changes in accounting principles, policies or
guidelines; (14) future acquisitions by Banner of other depository
institutions or lines of business; (15) future goodwill impairment
due to changes in Banner’s business, changes in market conditions,
including as a result of the COVID-19 pandemic or other factors;
(16) the costs associated with Banner Forward and (17) other
economic, competitive, governmental, regulatory, and technological
factors affecting our operations, pricing, products and services;
and other risks detailed from time to time in our filings with the
Securities and Exchange Commission including our Quarterly Reports
on Form 10-Q and our Annual Reports on Form 10-K.
RESULTS OF
OPERATIONS |
|
Quarters Ended |
|
Nine Months Ended |
(in thousands except shares
and per share data) |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
$ |
116,487 |
|
|
$ |
115,391 |
|
|
$ |
116,716 |
|
|
$ |
340,802 |
|
|
$ |
350,815 |
|
Mortgage-backed securities |
|
11,695 |
|
|
11,437 |
|
|
7,234 |
|
|
32,503 |
|
|
24,354 |
|
Securities and cash equivalents |
|
7,686 |
|
|
6,737 |
|
|
5,631 |
|
|
20,649 |
|
|
14,824 |
|
|
|
135,868 |
|
|
133,565 |
|
|
129,581 |
|
|
393,954 |
|
|
389,993 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,749 |
|
|
3,028 |
|
|
5,179 |
|
|
9,386 |
|
|
20,623 |
|
Federal Home Loan Bank advances |
|
655 |
|
|
655 |
|
|
988 |
|
|
2,244 |
|
|
4,036 |
|
Other borrowings |
|
125 |
|
|
124 |
|
|
128 |
|
|
358 |
|
|
482 |
|
Junior subordinated debentures and subordinated notes |
|
2,193 |
|
|
2,204 |
|
|
2,260 |
|
|
6,605 |
|
|
4,988 |
|
|
|
5,722 |
|
|
6,011 |
|
|
8,555 |
|
|
18,593 |
|
|
30,129 |
|
Net interest income |
|
130,146 |
|
|
127,554 |
|
|
121,026 |
|
|
375,361 |
|
|
359,864 |
|
(RECAPTURE)/PROVISION
FOR CREDIT LOSSES |
|
(8,638 |
) |
|
(10,256 |
) |
|
15,180 |
|
|
(28,145 |
) |
|
67,273 |
|
Net interest income after (recapture)/provision for credit
losses |
|
138,784 |
|
|
137,810 |
|
|
105,846 |
|
|
403,506 |
|
|
292,591 |
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
|
|
|
|
Deposit fees and other service charges |
|
10,457 |
|
|
9,758 |
|
|
8,742 |
|
|
29,154 |
|
|
26,091 |
|
Mortgage banking operations |
|
9,752 |
|
|
7,478 |
|
|
16,562 |
|
|
28,670 |
|
|
40,891 |
|
Bank-owned life insurance |
|
1,245 |
|
|
1,245 |
|
|
1,286 |
|
|
3,797 |
|
|
4,653 |
|
Miscellaneous |
|
2,046 |
|
|
3,720 |
|
|
951 |
|
|
7,808 |
|
|
5,017 |
|
|
|
23,500 |
|
|
22,201 |
|
|
27,541 |
|
|
69,429 |
|
|
76,652 |
|
Net gain on sale of securities |
|
56 |
|
|
77 |
|
|
644 |
|
|
618 |
|
|
815 |
|
Net change in valuation of financial instruments carried at fair
value |
|
1,778 |
|
|
58 |
|
|
37 |
|
|
1,895 |
|
|
(2,360 |
) |
Total non-interest income |
|
25,334 |
|
|
22,336 |
|
|
28,222 |
|
|
71,942 |
|
|
75,107 |
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
|
|
|
|
Salary and employee benefits |
|
59,799 |
|
|
61,935 |
|
|
61,171 |
|
|
186,553 |
|
|
184,494 |
|
Less capitalized loan origination costs |
|
(8,290 |
) |
|
(8,768 |
) |
|
(8,517 |
) |
|
(26,754 |
) |
|
(25,433 |
) |
Occupancy and equipment |
|
13,153 |
|
|
12,823 |
|
|
13,022 |
|
|
38,965 |
|
|
39,114 |
|
Information / computer data services |
|
6,110 |
|
|
5,602 |
|
|
6,090 |
|
|
17,915 |
|
|
17,984 |
|
Payment and card processing services |
|
6,181 |
|
|
4,975 |
|
|
4,044 |
|
|
15,482 |
|
|
12,135 |
|
Professional and legal expenses |
|
12,324 |
|
|
4,371 |
|
|
2,368 |
|
|
20,023 |
|
|
6,450 |
|
Advertising and marketing |
|
1,521 |
|
|
1,181 |
|
|
1,105 |
|
|
3,965 |
|
|
3,584 |
|
Deposit insurance expense |
|
1,469 |
|
|
1,241 |
|
|
1,628 |
|
|
4,243 |
|
|
4,968 |
|
State/municipal business and use taxes |
|
1,219 |
|
|
1,083 |
|
|
1,196 |
|
|
3,367 |
|
|
3,284 |
|
Real estate operations |
|
53 |
|
|
118 |
|
|
(11 |
) |
|
(71 |
) |
|
93 |
|
Amortization of core deposit intangibles |
|
1,575 |
|
|
1,711 |
|
|
1,864 |
|
|
4,997 |
|
|
5,867 |
|
Miscellaneous |
|
6,977 |
|
|
6,156 |
|
|
5,285 |
|
|
18,642 |
|
|
16,841 |
|
|
|
102,091 |
|
|
92,428 |
|
|
89,245 |
|
|
287,327 |
|
|
269,381 |
|
COVID-19 expenses |
|
44 |
|
|
117 |
|
|
778 |
|
|
309 |
|
|
3,169 |
|
Merger and acquisition-related expenses |
|
10 |
|
|
79 |
|
|
5 |
|
|
660 |
|
|
1,483 |
|
Total non-interest expense |
|
102,145 |
|
|
92,624 |
|
|
90,028 |
|
|
288,296 |
|
|
274,033 |
|
Income before provision for income taxes |
|
61,973 |
|
|
67,522 |
|
|
44,040 |
|
|
187,152 |
|
|
93,665 |
|
PROVISION
FOR INCOME TAXES |
|
12,089 |
|
|
13,140 |
|
|
7,492 |
|
|
36,031 |
|
|
16,694 |
|
NET
INCOME |
|
$ |
49,884 |
|
|
$ |
54,382 |
|
|
$ |
36,548 |
|
|
$ |
151,121 |
|
|
$ |
76,971 |
|
Earnings per share available
to common shareholders: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.45 |
|
|
$ |
1.57 |
|
|
$ |
1.04 |
|
|
$ |
4.35 |
|
|
$ |
2.18 |
|
Diluted |
|
$ |
1.44 |
|
|
$ |
1.56 |
|
|
$ |
1.03 |
|
|
$ |
4.32 |
|
|
$ |
2.17 |
|
Cumulative dividends declared
per common share |
|
$ |
0.41 |
|
|
$ |
0.41 |
|
|
$ |
0.41 |
|
|
$ |
1.23 |
|
|
$ |
0.82 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
34,446,510 |
|
|
34,736,639 |
|
|
35,193,109 |
|
|
34,716,914 |
|
|
35,285,567 |
|
Diluted |
|
34,669,492 |
|
|
34,933,714 |
|
|
35,316,679 |
|
|
35,012,228 |
|
|
35,524,771 |
|
(Decrease) increase in common
shares outstanding |
|
(298,897 |
) |
|
(184,455 |
) |
|
669 |
|
|
(907,209 |
) |
|
(593,008 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
CONDITION |
|
|
|
|
|
|
|
|
|
Percentage Change |
(in thousands except shares
and per share data) |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
392,035 |
|
|
|
$ |
329,359 |
|
|
|
$ |
311,899 |
|
|
|
$ |
289,144 |
|
|
|
19.0 |
|
% |
|
35.6 |
|
% |
Interest-bearing deposits |
|
1,808,547 |
|
|
|
1,138,572 |
|
|
|
922,284 |
|
|
|
416,394 |
|
|
|
58.8 |
|
% |
|
334.3 |
|
% |
Total cash and cash equivalents |
|
2,200,582 |
|
|
|
1,467,931 |
|
|
|
1,234,183 |
|
|
|
705,538 |
|
|
|
49.9 |
|
% |
|
211.9 |
|
% |
Securities - trading |
|
26,875 |
|
|
|
25,097 |
|
|
|
24,980 |
|
|
|
23,276 |
|
|
|
7.1 |
|
% |
|
15.5 |
|
% |
Securities - available for
sale |
|
3,446,575 |
|
|
|
3,275,979 |
|
|
|
2,322,593 |
|
|
|
1,758,384 |
|
|
|
5.2 |
|
% |
|
96.0 |
|
% |
Securities - held to
maturity |
|
447,708 |
|
|
|
455,256 |
|
|
|
421,713 |
|
|
|
429,033 |
|
|
|
(1.7 |
) |
% |
|
4.4 |
|
% |
Total securities |
|
3,921,158 |
|
|
|
3,756,332 |
|
|
|
2,769,286 |
|
|
|
2,210,693 |
|
|
|
4.4 |
|
% |
|
77.4 |
|
% |
Equity securities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
450,255 |
|
|
|
nm |
|
(100.0 |
) |
% |
Federal Home Loan Bank
stock |
|
12,000 |
|
|
|
14,001 |
|
|
|
16,358 |
|
|
|
16,363 |
|
|
|
(14.3 |
) |
% |
|
(26.7 |
) |
% |
Securities purchased under
agreements to resell |
|
300,000 |
|
|
|
300,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
% |
|
nm |
Loans held for sale |
|
63,678 |
|
|
|
71,741 |
|
|
|
243,795 |
|
|
|
185,938 |
|
|
|
(11.2 |
) |
% |
|
(65.8 |
) |
% |
Loans receivable |
|
9,218,384 |
|
|
|
9,654,181 |
|
|
|
9,870,982 |
|
|
|
10,163,917 |
|
|
|
(4.5 |
) |
% |
|
(9.3 |
) |
% |
Allowance for credit losses -
loans |
|
(139,915 |
) |
|
|
(148,009 |
) |
|
|
(167,279 |
) |
|
|
(167,965 |
) |
|
|
(5.5 |
) |
% |
|
(16.7 |
) |
% |
Net loans receivable |
|
9,078,469 |
|
|
|
9,506,172 |
|
|
|
9,703,703 |
|
|
|
9,995,952 |
|
|
|
(4.5 |
) |
% |
|
(9.2 |
) |
% |
Accrued interest
receivable |
|
43,644 |
|
|
|
46,979 |
|
|
|
46,617 |
|
|
|
48,321 |
|
|
|
(7.1 |
) |
% |
|
(9.7 |
) |
% |
Real estate owned (REO) held
for sale, net |
|
852 |
|
|
|
763 |
|
|
|
816 |
|
|
|
1,795 |
|
|
|
11.7 |
|
% |
|
(52.5 |
) |
% |
Property and equipment,
net |
|
151,503 |
|
|
|
156,063 |
|
|
|
164,556 |
|
|
|
171,576 |
|
|
|
(2.9 |
) |
% |
|
(11.7 |
) |
% |
Goodwill |
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
|
— |
|
% |
|
— |
|
% |
Other intangibles, net |
|
16,429 |
|
|
|
18,004 |
|
|
|
21,426 |
|
|
|
23,291 |
|
|
|
(8.7 |
) |
% |
|
(29.5 |
) |
% |
Bank-owned life insurance |
|
192,950 |
|
|
|
192,677 |
|
|
|
191,830 |
|
|
|
191,755 |
|
|
|
0.1 |
|
% |
|
0.6 |
|
% |
Operating lease right-of-use
assets |
|
58,523 |
|
|
|
55,287 |
|
|
|
55,367 |
|
|
|
58,114 |
|
|
|
5.9 |
|
% |
|
0.7 |
|
% |
Other assets |
|
224,970 |
|
|
|
222,786 |
|
|
|
210,565 |
|
|
|
209,363 |
|
|
|
1.0 |
|
% |
|
7.5 |
|
% |
Total assets |
|
$ |
16,637,879 |
|
|
|
$ |
16,181,857 |
|
|
|
$ |
15,031,623 |
|
|
|
$ |
14,642,075 |
|
|
|
2.8 |
|
% |
|
13.6 |
|
% |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
6,400,864 |
|
|
|
$ |
6,090,063 |
|
|
|
$ |
5,492,924 |
|
|
|
$ |
5,412,570 |
|
|
|
5.1 |
|
% |
|
18.3 |
|
% |
Interest-bearing transaction and savings accounts |
|
6,912,759 |
|
|
|
6,673,598 |
|
|
|
6,159,052 |
|
|
|
5,887,419 |
|
|
|
3.6 |
|
% |
|
17.4 |
|
% |
Interest-bearing certificates |
|
851,054 |
|
|
|
873,047 |
|
|
|
915,320 |
|
|
|
915,352 |
|
|
|
(2.5 |
) |
% |
|
(7.0 |
) |
% |
Total deposits |
|
14,164,677 |
|
|
|
13,636,708 |
|
|
|
12,567,296 |
|
|
|
12,215,341 |
|
|
|
3.9 |
|
% |
|
16.0 |
|
% |
Advances from Federal Home
Loan Bank |
|
50,000 |
|
|
|
100,000 |
|
|
|
150,000 |
|
|
|
150,000 |
|
|
|
(50.0 |
) |
% |
|
(66.7 |
) |
% |
Customer repurchase agreements
and other borrowings |
|
247,358 |
|
|
|
237,736 |
|
|
|
184,785 |
|
|
|
176,983 |
|
|
|
4.0 |
|
% |
|
39.8 |
|
% |
Subordinated notes, net |
|
98,472 |
|
|
|
98,380 |
|
|
|
98,201 |
|
|
|
98,114 |
|
|
|
0.1 |
|
% |
|
0.4 |
|
% |
Junior subordinated debentures
at fair value |
|
124,853 |
|
|
|
117,520 |
|
|
|
116,974 |
|
|
|
109,821 |
|
|
|
6.2 |
|
% |
|
13.7 |
|
% |
Operating lease
liabilities |
|
62,946 |
|
|
|
59,117 |
|
|
|
59,343 |
|
|
|
61,869 |
|
|
|
6.5 |
|
% |
|
1.7 |
|
% |
Accrued expenses and other
liabilities |
|
175,960 |
|
|
|
216,399 |
|
|
|
143,300 |
|
|
|
138,169 |
|
|
|
(18.7 |
) |
% |
|
27.4 |
|
% |
Deferred compensation |
|
46,494 |
|
|
|
46,786 |
|
|
|
45,460 |
|
|
|
45,249 |
|
|
|
(0.6 |
) |
% |
|
2.8 |
|
% |
Total liabilities |
|
14,970,760 |
|
|
|
14,512,646 |
|
|
|
13,365,359 |
|
|
|
12,995,546 |
|
|
|
3.2 |
|
% |
|
15.2 |
|
% |
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
1,297,145 |
|
|
|
1,311,455 |
|
|
|
1,349,879 |
|
|
|
1,347,612 |
|
|
|
(1.1 |
) |
% |
|
(3.7 |
) |
% |
Retained earnings |
|
355,035 |
|
|
|
319,505 |
|
|
|
247,316 |
|
|
|
222,959 |
|
|
|
11.1 |
|
% |
|
59.2 |
|
% |
Other components of
shareholders’ equity |
|
14,939 |
|
|
|
38,251 |
|
|
|
69,069 |
|
|
|
75,958 |
|
|
|
(60.9 |
) |
% |
|
(80.3 |
) |
% |
Total shareholders’ equity |
|
1,667,119 |
|
|
|
1,669,211 |
|
|
|
1,666,264 |
|
|
|
1,646,529 |
|
|
|
(0.1 |
) |
% |
|
1.3 |
|
% |
Total liabilities and shareholders’ equity |
|
$ |
16,637,879 |
|
|
|
$ |
16,181,857 |
|
|
|
$ |
15,031,623 |
|
|
|
$ |
14,642,075 |
|
|
|
2.8 |
|
% |
|
13.6 |
|
% |
Common Shares
Issued: |
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period |
|
34,251,991 |
|
|
|
34,550,888 |
|
|
|
35,159,200 |
|
|
|
35,158,568 |
|
|
|
|
|
|
Common shareholders’ equity
per share (1) |
|
$ |
48.67 |
|
|
|
$ |
48.31 |
|
|
|
$ |
47.39 |
|
|
|
$ |
46.83 |
|
|
|
|
|
|
Common shareholders’ tangible
equity per share (1) (2) |
|
$ |
37.30 |
|
|
|
$ |
36.99 |
|
|
|
$ |
36.17 |
|
|
|
$ |
35.56 |
|
|
|
|
|
|
Common shareholders’ tangible
equity to tangible assets (2) |
|
7.86 |
|
% |
|
8.09 |
|
% |
|
8.69 |
|
% |
|
8.78 |
|
% |
|
|
|
|
Consolidated Tier 1 leverage
capital ratio |
|
8.79 |
|
% |
|
8.86 |
|
% |
|
9.50 |
|
% |
|
9.56 |
|
% |
|
|
|
|
(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 excludes goodwill and other
intangible assets. Tangible assets exclude goodwill and
other intangible assets. These ratios represent non-GAAP
financial measures. See also Non-GAAP Financial Measures
reconciliation tables on the final two pages of the press release
tables. |
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change |
LOANS |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
$ |
1,122,275 |
|
|
$ |
1,066,237 |
|
|
$ |
1,076,467 |
|
|
$ |
1,049,877 |
|
|
5.3 |
|
% |
|
6.9 |
|
% |
Investment properties |
|
1,980,284 |
|
|
1,950,211 |
|
|
1,955,684 |
|
|
1,991,258 |
|
|
1.5 |
|
% |
|
(0.6 |
) |
% |
Small balance CRE |
|
601,751 |
|
|
621,102 |
|
|
573,849 |
|
|
597,971 |
|
|
(3.1 |
) |
% |
|
0.6 |
|
% |
Multifamily real estate |
|
532,760 |
|
|
504,445 |
|
|
428,223 |
|
|
426,659 |
|
|
5.6 |
|
% |
|
24.9 |
|
% |
Construction, land and land
development: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial construction |
|
170,205 |
|
|
182,868 |
|
|
228,937 |
|
|
220,285 |
|
|
(6.9 |
) |
% |
|
(22.7 |
) |
% |
Multifamily construction |
|
278,184 |
|
|
295,661 |
|
|
305,527 |
|
|
291,105 |
|
|
(5.9 |
) |
% |
|
(4.4 |
) |
% |
One- to four-family construction |
|
571,431 |
|
|
603,895 |
|
|
507,810 |
|
|
518,085 |
|
|
(5.4 |
) |
% |
|
10.3 |
|
% |
Land and land development |
|
308,164 |
|
|
290,404 |
|
|
248,915 |
|
|
240,803 |
|
|
6.1 |
|
% |
|
28.0 |
|
% |
Commercial business: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial business |
|
1,039,731 |
|
|
1,124,359 |
|
|
1,133,989 |
|
|
1,193,651 |
|
|
(7.5 |
) |
% |
|
(12.9 |
) |
% |
SBA PPP |
|
306,976 |
|
|
807,172 |
|
|
1,044,472 |
|
|
1,149,968 |
|
|
(62.0 |
) |
% |
|
(73.3 |
) |
% |
Small business scored |
|
775,554 |
|
|
743,975 |
|
|
743,451 |
|
|
763,824 |
|
|
4.2 |
|
% |
|
1.5 |
|
% |
Agricultural business,
including secured by farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
Agricultural business, including secured by farmland |
|
284,255 |
|
|
247,467 |
|
|
299,949 |
|
|
326,169 |
|
|
14.9 |
|
% |
|
(12.9 |
) |
% |
SBA PPP |
|
3,214 |
|
|
17,962 |
|
|
— |
|
|
— |
|
|
(82.1 |
) |
% |
|
nm |
One- to four-family
residential |
|
682,368 |
|
|
637,701 |
|
|
717,939 |
|
|
771,431 |
|
|
7.0 |
|
% |
|
(11.5 |
) |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer—home equity revolving lines of credit |
|
462,819 |
|
|
458,915 |
|
|
491,812 |
|
|
504,523 |
|
|
0.9 |
|
% |
|
(8.3 |
) |
% |
Consumer—other |
|
98,413 |
|
|
101,807 |
|
|
113,958 |
|
|
118,308 |
|
|
(3.3 |
) |
% |
|
(16.8 |
) |
% |
Total loans receivable |
|
$ |
9,218,384 |
|
|
$ |
9,654,181 |
|
|
$ |
9,870,982 |
|
|
$ |
10,163,917 |
|
|
(4.5 |
) |
% |
|
(9.3 |
) |
% |
Restructured loans performing
under their restructured terms |
|
$ |
5,273 |
|
|
$ |
5,472 |
|
|
$ |
6,673 |
|
|
$ |
5,790 |
|
|
|
|
|
Loans 30 - 89 days past due
and on accrual |
|
$ |
6,911 |
|
|
$ |
5,656 |
|
|
$ |
12,291 |
|
|
$ |
18,158 |
|
|
|
|
|
Total delinquent loans
(including loans on non-accrual), net |
|
$ |
18,619 |
|
|
$ |
23,582 |
|
|
$ |
36,131 |
|
|
$ |
37,464 |
|
|
|
|
|
Total delinquent
loans / Total loans receivable |
|
0.20 |
% |
|
0.24 |
% |
|
0.37 |
% |
|
0.37 |
% |
|
|
|
|
LOANS BY GEOGRAPHIC
LOCATION |
|
|
|
|
|
|
|
|
|
|
|
Percentage Change |
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington |
|
$ |
4,319,008 |
|
|
46.9 |
% |
|
$ |
4,541,792 |
|
|
$ |
4,647,553 |
|
|
$ |
4,767,113 |
|
|
(4.9 |
) |
% |
|
(9.4 |
) |
% |
California |
|
2,160,280 |
|
|
23.4 |
% |
|
2,246,580 |
|
|
2,279,749 |
|
|
2,316,739 |
|
|
(3.8 |
) |
% |
|
(6.8 |
) |
% |
Oregon |
|
1,679,452 |
|
|
18.2 |
% |
|
1,753,285 |
|
|
1,792,156 |
|
|
1,858,465 |
|
|
(4.2 |
) |
% |
|
(9.6 |
) |
% |
Idaho |
|
536,128 |
|
|
5.8 |
% |
|
525,610 |
|
|
537,996 |
|
|
576,983 |
|
|
2.0 |
|
% |
|
(7.1 |
) |
% |
Utah |
|
89,620 |
|
|
1.0 |
% |
|
92,103 |
|
|
80,704 |
|
|
76,314 |
|
|
(2.7 |
) |
% |
|
17.4 |
|
% |
Other |
|
433,896 |
|
|
4.7 |
% |
|
494,811 |
|
|
532,824 |
|
|
568,303 |
|
|
(12.3 |
) |
% |
|
(23.7 |
) |
% |
Total loans receivable |
|
$ |
9,218,384 |
|
|
100.0 |
% |
|
$ |
9,654,181 |
|
|
$ |
9,870,982 |
|
|
$ |
10,163,917 |
|
|
(4.5 |
) |
% |
|
(9.3 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
(dollars in thousands) |
|
|
|
LOAN
ORIGINATIONS |
Quarters Ended |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
Commercial real estate |
$ |
174,827 |
|
|
$ |
103,415 |
|
|
$ |
74,400 |
|
Multifamily real estate |
26,155 |
|
|
45,674 |
|
|
2,664 |
|
Construction and land |
496,386 |
|
|
509,828 |
|
|
412,463 |
|
Commercial business: |
|
|
|
|
|
Commercial business |
229,859 |
|
|
181,996 |
|
|
128,729 |
|
SBA PPP |
907 |
|
|
55,990 |
|
|
24,848 |
|
Agricultural business |
9,223 |
|
|
12,546 |
|
|
16,990 |
|
One-to four-family
residential |
49,594 |
|
|
47,086 |
|
|
32,733 |
|
Consumer |
145,102 |
|
|
131,424 |
|
|
132,100 |
|
Total loan originations
(excluding loans held for sale) |
$ |
1,132,053 |
|
|
$ |
1,087,959 |
|
|
$ |
824,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
Quarters Ended |
CHANGE IN
THE |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
ALLOWANCE FOR
CREDIT LOSSES - LOANS |
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
148,009 |
|
|
|
$ |
156,054 |
|
|
|
$ |
156,352 |
|
|
(Recapture)/provision for
credit losses - loans |
|
(8,850 |
) |
|
|
(8,100 |
) |
|
|
13,641 |
|
|
Recoveries of loans previously
charged off: |
|
|
|
|
|
|
Commercial real estate |
|
923 |
|
|
|
147 |
|
|
|
23 |
|
|
One- to four-family real estate |
|
19 |
|
|
|
20 |
|
|
|
94 |
|
|
Commercial business |
|
230 |
|
|
|
321 |
|
|
|
246 |
|
|
Agricultural business, including secured by farmland |
|
17 |
|
|
|
8 |
|
|
|
— |
|
|
Consumer |
|
227 |
|
|
|
97 |
|
|
|
82 |
|
|
|
|
1,416 |
|
|
|
593 |
|
|
|
445 |
|
|
Loans charged off: |
|
|
|
|
|
|
Commercial real estate |
|
— |
|
|
|
(3 |
) |
|
|
(379 |
) |
|
One- to four-family real estate |
|
— |
|
|
|
— |
|
|
|
(72 |
) |
|
Commercial business |
|
(362 |
) |
|
|
(123 |
) |
|
|
(1,297 |
) |
|
Agricultural business, including secured by farmland |
|
(179 |
) |
|
|
(2 |
) |
|
|
(492 |
) |
|
Consumer |
|
(119 |
) |
|
|
(410 |
) |
|
|
(233 |
) |
|
|
|
(660 |
) |
|
|
(538 |
) |
|
|
(2,473 |
) |
|
Net recoveries (charge-offs) |
|
756 |
|
|
|
55 |
|
|
|
(2,028 |
) |
|
Balance, end of period |
|
$ |
139,915 |
|
|
|
$ |
148,009 |
|
|
|
$ |
167,965 |
|
|
Net recoveries (charge-offs) /
Average loans receivable |
|
0.008 |
|
% |
|
0.001 |
|
% |
|
(0.019 |
) |
% |
|
|
|
|
|
|
|
ALLOCATION
OF |
|
|
|
|
|
|
ALLOWANCE FOR
CREDIT LOSSES - LOANS |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
Specific or allocated credit
loss allowance: |
|
|
|
|
|
|
Commercial real estate |
|
$ |
57,215 |
|
|
$ |
60,349 |
|
|
$ |
59,705 |
|
Multifamily real estate |
|
6,657 |
|
|
5,807 |
|
|
3,256 |
|
Construction and land |
|
29,342 |
|
|
30,899 |
|
|
39,477 |
|
One- to four-family real estate |
|
9,460 |
|
|
9,800 |
|
|
12,868 |
|
Commercial business |
|
26,873 |
|
|
30,830 |
|
|
35,369 |
|
Agricultural business, including secured by farmland |
|
3,177 |
|
|
3,256 |
|
|
5,051 |
|
Consumer |
|
7,191 |
|
|
7,068 |
|
|
12,239 |
|
Total allowance for credit losses - loans |
|
$ |
139,915 |
|
|
$ |
148,009 |
|
|
$ |
167,965 |
|
Allowance for credit losses -
loans / Total loans receivable |
|
1.52 |
% |
|
1.53 |
% |
|
1.65 |
% |
Allowance for credit losses -
loans / Non-performing loans |
|
485 |
% |
|
481 |
% |
|
482 |
% |
|
|
Quarters Ended |
CHANGE IN
THE |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
ALLOWANCE FOR
CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS |
|
|
|
|
|
|
Balance, beginning of period |
|
$ |
9,909 |
|
|
$ |
12,077 |
|
|
|
$ |
10,555 |
|
Provision/(recapture) for
credit losses - unfunded loan commitments |
|
218 |
|
|
(2,168 |
) |
|
|
1,539 |
|
Balance, end of period |
|
$ |
10,127 |
|
|
$ |
9,909 |
|
|
|
$ |
12,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
NON-PERFORMING
ASSETS |
|
|
|
|
|
|
|
Loans on non-accrual
status: |
|
|
|
|
|
|
|
Secured by real estate: |
|
|
|
|
|
|
|
Commercial |
$ |
14,931 |
|
|
$ |
17,427 |
|
|
$ |
18,199 |
|
|
$ |
7,824 |
|
Construction and land |
354 |
|
|
541 |
|
|
936 |
|
|
937 |
|
One- to four-family |
3,182 |
|
|
4,007 |
|
|
3,556 |
|
|
2,978 |
|
Commercial business |
2,700 |
|
|
3,673 |
|
|
5,407 |
|
|
14,867 |
|
Agricultural business, including secured by farmland |
1,022 |
|
|
1,200 |
|
|
1,743 |
|
|
2,066 |
|
Consumer |
1,850 |
|
|
1,799 |
|
|
2,719 |
|
|
2,896 |
|
|
24,039 |
|
|
28,647 |
|
|
32,560 |
|
|
31,568 |
|
Loans more than 90 days
delinquent, still on accrual: |
|
|
|
|
|
|
|
Secured by real estate: |
|
|
|
|
|
|
|
Commercial |
3,955 |
|
|
911 |
|
|
— |
|
|
— |
|
One- to four-family |
772 |
|
|
579 |
|
|
1,899 |
|
|
2,649 |
|
Commercial business |
61 |
|
|
495 |
|
|
1,025 |
|
|
425 |
|
Consumer |
34 |
|
|
131 |
|
|
130 |
|
|
181 |
|
|
4,822 |
|
|
2,116 |
|
|
3,054 |
|
|
3,255 |
|
Total non-performing
loans |
28,861 |
|
|
30,763 |
|
|
35,614 |
|
|
34,823 |
|
REO |
852 |
|
|
763 |
|
|
816 |
|
|
1,795 |
|
Other repossessed assets |
17 |
|
|
17 |
|
|
51 |
|
|
37 |
|
Total non-performing assets |
$ |
29,730 |
|
|
$ |
31,543 |
|
|
$ |
36,481 |
|
|
$ |
36,655 |
|
Total non-performing
assets to total assets |
0.18 |
% |
|
0.19 |
% |
|
0.24 |
% |
|
0.25 |
% |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
LOANS BY CREDIT
RISK RATING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
$ |
8,956,604 |
|
|
$ |
9,315,264 |
|
|
$ |
9,494,147 |
|
|
$ |
9,699,098 |
|
Special Mention |
36,001 |
|
|
66,103 |
|
|
36,598 |
|
|
41,575 |
|
Substandard |
225,779 |
|
|
272,814 |
|
|
340,237 |
|
|
423,244 |
|
Total |
$ |
9,218,384 |
|
|
$ |
9,654,181 |
|
|
$ |
9,870,982 |
|
|
$ |
10,163,917 |
|
|
Quarters Ended |
|
Nine Months Ended |
REAL ESTATE
OWNED |
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
Balance, beginning of period |
$ |
763 |
|
|
$ |
340 |
|
|
$ |
2,400 |
|
|
|
$ |
816 |
|
|
|
$ |
814 |
|
|
Additions from loan foreclosures |
89 |
|
|
423 |
|
|
— |
|
|
|
512 |
|
|
|
1,588 |
|
|
Proceeds from dispositions of REO |
— |
|
|
— |
|
|
(707 |
) |
|
|
(783 |
) |
|
|
(805 |
) |
|
Gain on sale of REO |
— |
|
|
— |
|
|
120 |
|
|
|
307 |
|
|
|
216 |
|
|
Valuation adjustments in the period |
— |
|
|
— |
|
|
(18 |
) |
|
|
— |
|
|
|
(18 |
) |
|
Balance, end of period |
$ |
852 |
|
|
$ |
763 |
|
|
$ |
1,795 |
|
|
|
$ |
852 |
|
|
|
$ |
1,795 |
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
COMPOSITION |
|
|
|
|
|
|
|
|
|
Percentage Change |
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
6,400,864 |
|
|
$ |
6,090,063 |
|
|
$ |
5,492,924 |
|
|
$ |
5,412,570 |
|
|
5.1 |
|
% |
|
18.3 |
|
% |
Interest-bearing checking |
|
1,799,657 |
|
|
1,736,696 |
|
|
1,569,435 |
|
|
1,434,224 |
|
|
3.6 |
|
% |
|
25.5 |
|
% |
Regular savings accounts |
|
2,773,995 |
|
|
2,646,302 |
|
|
2,398,482 |
|
|
2,332,287 |
|
|
4.8 |
|
% |
|
18.9 |
|
% |
Money market accounts |
|
2,339,107 |
|
|
2,290,600 |
|
|
2,191,135 |
|
|
2,120,908 |
|
|
2.1 |
|
% |
|
10.3 |
|
% |
Total interest-bearing transaction and savings accounts |
|
6,912,759 |
|
|
6,673,598 |
|
|
6,159,052 |
|
|
5,887,419 |
|
|
3.6 |
|
% |
|
17.4 |
|
% |
Total core deposits |
|
13,313,623 |
|
|
12,763,661 |
|
|
11,651,976 |
|
|
11,299,989 |
|
|
4.3 |
|
% |
|
17.8 |
|
% |
Interest-bearing
certificates |
|
851,054 |
|
|
873,047 |
|
|
915,320 |
|
|
915,352 |
|
|
(2.5 |
) |
% |
|
(7.0 |
) |
% |
Total deposits |
|
$ |
14,164,677 |
|
|
$ |
13,636,708 |
|
|
$ |
12,567,296 |
|
|
$ |
12,215,341 |
|
|
3.9 |
|
% |
|
16.0 |
|
% |
GEOGRAPHIC
CONCENTRATION OF DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
|
Percentage Change |
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Amount |
|
Prior Qtr |
|
Prior Yr Qtr |
Washington |
|
$ |
7,877,919 |
|
|
55.6 |
% |
|
$ |
7,547,591 |
|
|
$ |
7,058,404 |
|
|
$ |
6,820,329 |
|
|
4.4 |
% |
|
15.5 |
% |
Oregon |
|
3,030,109 |
|
|
21.4 |
% |
|
2,939,667 |
|
|
2,604,908 |
|
|
2,486,760 |
|
|
3.1 |
% |
|
21.8 |
% |
California |
|
2,501,521 |
|
|
17.7 |
% |
|
2,417,387 |
|
|
2,237,949 |
|
|
2,254,681 |
|
|
3.5 |
% |
|
10.9 |
% |
Idaho |
|
755,128 |
|
|
5.3 |
% |
|
732,063 |
|
|
666,035 |
|
|
653,571 |
|
|
3.2 |
% |
|
15.5 |
% |
Total deposits |
|
$ |
14,164,677 |
|
|
100.0 |
% |
|
$ |
13,636,708 |
|
|
$ |
12,567,296 |
|
|
$ |
12,215,341 |
|
|
3.9 |
% |
|
16.0 |
% |
INCLUDED IN TOTAL
DEPOSITS |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
Public non-interest-bearing accounts |
|
$ |
193,414 |
|
|
$ |
187,702 |
|
|
$ |
175,352 |
|
|
$ |
142,415 |
|
Public interest-bearing
transaction & savings accounts |
|
161,407 |
|
|
156,987 |
|
|
127,523 |
|
|
117,514 |
|
Public interest-bearing
certificates |
|
40,851 |
|
|
41,444 |
|
|
59,127 |
|
|
54,219 |
|
Total public deposits |
|
$ |
395,672 |
|
|
$ |
386,133 |
|
|
$ |
362,002 |
|
|
$ |
314,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
|
Minimum to be
categorized as
"Adequately Capitalized" |
|
Minimum to be
categorized as
"Well Capitalized" |
REGULATORY CAPITAL
RATIOS AS OF SEPTEMBER 30, 2021 |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Banner
Corporation-consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted assets |
|
$ |
1,635,458 |
|
|
14.55 |
% |
|
$ |
899,302 |
|
|
8.00 |
% |
|
$ |
1,124,128 |
|
|
10.00 |
% |
Tier 1 capital to
risk-weighted assets |
|
1,407,993 |
|
|
12.53 |
% |
|
674,477 |
|
|
6.00 |
% |
|
674,477 |
|
|
6.00 |
% |
Tier 1 leverage capital to
average assets |
|
1,407,993 |
|
|
8.79 |
% |
|
640,528 |
|
|
4.00 |
% |
|
n/a |
|
n/a |
Common equity tier 1 capital
to risk-weighted assets |
|
1,264,493 |
|
|
11.25 |
% |
|
505,857 |
|
|
4.50 |
% |
|
n/a |
|
n/a |
Banner Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted
assets |
|
1,524,897 |
|
|
13.57 |
% |
|
898,803 |
|
|
8.00 |
% |
|
1,123,504 |
|
|
10.00 |
% |
Tier 1 capital to
risk-weighted assets |
|
1,397,432 |
|
|
12.44 |
% |
|
674,102 |
|
|
6.00 |
% |
|
898,803 |
|
|
8.00 |
% |
Tier 1 leverage capital to
average assets |
|
1,397,432 |
|
|
8.73 |
% |
|
640,385 |
|
|
4.00 |
% |
|
800,482 |
|
|
5.00 |
% |
Common equity tier 1 capital
to risk-weighted assets |
|
1,397,432 |
|
|
12.44 |
% |
|
505,577 |
|
|
4.50 |
% |
|
730,278 |
|
|
6.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(rates / ratios
annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET
INTEREST SPREAD |
Quarters Ended |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
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 |
$ |
114,938 |
|
|
$ |
996 |
|
|
3.44 |
% |
|
$ |
69,908 |
|
|
$ |
544 |
|
|
3.12 |
% |
|
$ |
161,385 |
|
|
$ |
1,535 |
|
|
3.78 |
% |
Mortgage loans |
7,245,962 |
|
|
83,803 |
|
|
4.59 |
% |
|
7,147,733 |
|
|
80,673 |
|
|
4.53 |
% |
|
7,339,181 |
|
|
88,011 |
|
|
4.77 |
% |
Commercial/agricultural loans |
1,534,978 |
|
|
15,776 |
|
|
4.08 |
% |
|
1,480,954 |
|
|
15,818 |
|
|
4.28 |
% |
|
1,721,186 |
|
|
18,553 |
|
|
4.29 |
% |
SBA PPP loans |
566,515 |
|
|
15,421 |
|
|
10.80 |
% |
|
1,144,195 |
|
|
17,796 |
|
|
6.24 |
% |
|
1,141,105 |
|
|
7,843 |
|
|
2.73 |
% |
Consumer and other loans |
120,112 |
|
|
1,774 |
|
|
5.86 |
% |
|
122,951 |
|
|
1,828 |
|
|
5.96 |
% |
|
140,493 |
|
|
2,195 |
|
|
6.22 |
% |
Total loans(1)(3) |
9,582,505 |
|
|
117,770 |
|
|
4.88 |
% |
|
9,965,741 |
|
|
116,659 |
|
|
4.70 |
% |
|
10,503,350 |
|
|
118,137 |
|
|
4.47 |
% |
Mortgage-backed securities |
2,560,027 |
|
|
11,820 |
|
|
1.83 |
% |
|
2,440,913 |
|
|
11,563 |
|
|
1.90 |
% |
|
1,250,759 |
|
|
7,333 |
|
|
2.33 |
% |
Other securities |
1,491,035 |
|
|
7,873 |
|
|
2.09 |
% |
|
1,250,417 |
|
|
7,088 |
|
|
2.27 |
% |
|
884,916 |
|
|
6,036 |
|
|
2.71 |
% |
Equity securities |
— |
|
|
— |
|
|
— |
% |
|
— |
|
|
— |
|
|
— |
% |
|
379,483 |
|
|
186 |
|
|
0.19 |
% |
Interest-bearing deposits with banks |
1,486,839 |
|
|
586 |
|
|
0.16 |
% |
|
1,139,749 |
|
|
376 |
|
|
0.13 |
% |
|
171,894 |
|
|
123 |
|
|
0.28 |
% |
FHLB stock |
13,957 |
|
|
135 |
|
|
3.84 |
% |
|
14,001 |
|
|
161 |
|
|
4.61 |
% |
|
16,363 |
|
|
163 |
|
|
3.96 |
% |
Total investment securities (3) |
5,551,858 |
|
|
20,414 |
|
|
1.46 |
% |
|
4,845,080 |
|
|
19,188 |
|
|
1.59 |
% |
|
2,703,415 |
|
|
13,841 |
|
|
2.04 |
% |
Total interest-earning assets |
15,134,363 |
|
|
138,184 |
|
|
3.62 |
% |
|
14,810,821 |
|
|
135,847 |
|
|
3.68 |
% |
|
13,206,765 |
|
|
131,978 |
|
|
3.98 |
% |
Non-interest-earning
assets |
1,301,383 |
|
|
|
|
|
|
1,227,167 |
|
|
|
|
|
|
1,259,816 |
|
|
|
|
|
Total assets |
$ |
16,435,746 |
|
|
|
|
|
|
$ |
16,037,988 |
|
|
|
|
|
|
$ |
14,466,581 |
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
1,771,869 |
|
|
282 |
|
|
0.06 |
% |
|
$ |
1,754,363 |
|
|
302 |
|
|
0.07 |
% |
|
$ |
1,413,085 |
|
|
321 |
|
|
0.09 |
% |
Savings accounts |
2,721,028 |
|
|
458 |
|
|
0.07 |
% |
|
2,622,716 |
|
|
454 |
|
|
0.07 |
% |
|
2,251,294 |
|
|
813 |
|
|
0.14 |
% |
Money market accounts |
2,322,453 |
|
|
668 |
|
|
0.11 |
% |
|
2,288,638 |
|
|
668 |
|
|
0.12 |
% |
|
2,096,037 |
|
|
1,224 |
|
|
0.23 |
% |
Certificates of deposit |
863,971 |
|
|
1,341 |
|
|
0.62 |
% |
|
889,020 |
|
|
1,604 |
|
|
0.72 |
% |
|
966,028 |
|
|
2,821 |
|
|
1.16 |
% |
Total interest-bearing deposits |
7,679,321 |
|
|
2,749 |
|
|
0.14 |
% |
|
7,554,737 |
|
|
3,028 |
|
|
0.16 |
% |
|
6,726,444 |
|
|
5,179 |
|
|
0.31 |
% |
Non-interest-bearing deposits |
6,275,634 |
|
|
— |
|
|
— |
% |
|
6,057,884 |
|
|
— |
|
|
— |
% |
|
5,340,688 |
|
|
— |
|
|
— |
% |
Total deposits |
13,954,955 |
|
|
2,749 |
|
|
0.08 |
% |
|
13,612,621 |
|
|
3,028 |
|
|
0.09 |
% |
|
12,067,132 |
|
|
5,179 |
|
|
0.17 |
% |
Other interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB advances |
98,370 |
|
|
655 |
|
|
2.64 |
% |
|
100,000 |
|
|
655 |
|
|
2.63 |
% |
|
150,000 |
|
|
988 |
|
|
2.62 |
% |
Other borrowings |
252,720 |
|
|
125 |
|
|
0.20 |
% |
|
240,229 |
|
|
124 |
|
|
0.21 |
% |
|
177,628 |
|
|
128 |
|
|
0.29 |
% |
Junior subordinated debentures and subordinated notes |
247,944 |
|
|
2,193 |
|
|
3.51 |
% |
|
247,944 |
|
|
2,204 |
|
|
3.57 |
% |
|
247,944 |
|
|
2,260 |
|
|
3.63 |
% |
Total borrowings |
599,034 |
|
|
2,973 |
|
|
1.97 |
% |
|
588,173 |
|
|
2,983 |
|
|
2.03 |
% |
|
575,572 |
|
|
3,376 |
|
|
2.33 |
% |
Total funding liabilities |
14,553,989 |
|
|
5,722 |
|
|
0.16 |
% |
|
14,200,794 |
|
|
6,011 |
|
|
0.17 |
% |
|
12,642,704 |
|
|
8,555 |
|
|
0.27 |
% |
Other non-interest-bearing
liabilities(2) |
202,918 |
|
|
|
|
|
|
199,619 |
|
|
|
|
|
|
193,256 |
|
|
|
|
|
Total liabilities |
14,756,907 |
|
|
|
|
|
|
14,400,413 |
|
|
|
|
|
|
12,835,960 |
|
|
|
|
|
Shareholders’ equity |
1,678,839 |
|
|
|
|
|
|
1,637,575 |
|
|
|
|
|
|
1,630,621 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
16,435,746 |
|
|
|
|
|
|
$ |
16,037,988 |
|
|
|
|
|
|
$ |
14,466,581 |
|
|
|
|
|
Net interest income/rate
spread (tax equivalent) |
|
|
$ |
132,462 |
|
|
3.46 |
% |
|
|
|
$ |
129,836 |
|
|
3.51 |
% |
|
|
|
$ |
123,423 |
|
|
3.71 |
% |
Net interest margin (tax
equivalent) |
|
|
|
|
3.47 |
% |
|
|
|
|
|
3.52 |
% |
|
|
|
|
|
3.72 |
% |
Reconciliation to reported
net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for taxable
equivalent basis |
|
|
(2,316 |
) |
|
|
|
|
|
(2,282 |
) |
|
|
|
|
|
(2,397 |
) |
|
|
Net interest income and
margin, as reported |
|
|
$ |
130,146 |
|
|
3.41 |
% |
|
|
|
$ |
127,554 |
|
|
3.45 |
% |
|
|
|
$ |
121,026 |
|
|
3.65 |
% |
Additional Key
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
1.20 |
% |
|
|
|
|
|
1.36 |
% |
|
|
|
|
|
1.01 |
% |
Return on average equity |
|
|
|
|
11.79 |
% |
|
|
|
|
|
13.32 |
% |
|
|
|
|
|
8.92 |
% |
Average equity/average
assets |
|
|
|
|
10.21 |
% |
|
|
|
|
|
10.21 |
% |
|
|
|
|
|
11.27 |
% |
Average interest-earning
assets/average interest-bearing liabilities |
|
|
|
|
182.82 |
% |
|
|
|
|
|
181.89 |
% |
|
|
|
|
|
180.86 |
% |
Average interest-earning
assets/average funding liabilities |
|
|
|
|
103.99 |
% |
|
|
|
|
|
104.30 |
% |
|
|
|
|
|
104.46 |
% |
Non-interest income/average
assets |
|
|
|
|
0.61 |
% |
|
|
|
|
|
0.56 |
% |
|
|
|
|
|
0.78 |
% |
Non-interest expense/average
assets |
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
2.48 |
% |
Efficiency
ratio(4) |
|
|
|
|
65.70 |
% |
|
|
|
|
|
61.79 |
% |
|
|
|
|
|
60.32 |
% |
Adjusted efficiency
ratio(5) |
|
|
|
|
59.65 |
% |
|
|
|
|
|
58.50 |
% |
|
|
|
|
|
58.02 |
% |
(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 $1.3
million, $1.3 million, and $1.4 million for the three months ended
September 30, 2021, June 30, 2021, and September 30,
2020, respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $1.0 million, $1.0 million, and
$976,000 for the three months ended September 30, 2021, June
30, 2021, and September 30, 2020, respectively. |
(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 the non-GAAP Financial
Measures on the final two pages of the press release tables. |
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
(rates / ratios
annualized) |
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET
INTEREST SPREAD |
Nine Months Ended |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost(3) |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost(3) |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Held for sale loans |
$ |
101,380 |
|
|
$ |
2,465 |
|
|
3.25 |
% |
|
$ |
155,571 |
|
|
$ |
4,506 |
|
|
3.87 |
% |
Mortgage loans |
7,179,859 |
|
|
245,056 |
|
|
4.56 |
% |
|
7,321,206 |
|
|
268,244 |
|
|
4.89 |
% |
Commercial/agricultural loans |
1,511,723 |
|
|
47,513 |
|
|
4.20 |
% |
|
1,811,854 |
|
|
61,424 |
|
|
4.53 |
% |
SBA PPP loans |
958,848 |
|
|
44,009 |
|
|
6.14 |
% |
|
638,380 |
|
|
13,131 |
|
|
2.75 |
% |
Consumer and other loans |
123,483 |
|
|
5,549 |
|
|
6.01 |
% |
|
151,968 |
|
|
7,151 |
|
|
6.29 |
% |
Total loans(1)(3) |
9,875,293 |
|
|
344,592 |
|
|
4.67 |
% |
|
10,078,979 |
|
|
354,456 |
|
|
4.70 |
% |
Mortgage-backed securities |
2,320,474 |
|
|
32,855 |
|
|
1.89 |
% |
|
1,297,020 |
|
|
24,652 |
|
|
2.54 |
% |
Other securities |
1,265,056 |
|
|
21,648 |
|
|
2.29 |
% |
|
710,967 |
|
|
15,205 |
|
|
2.86 |
% |
Equity securities |
574 |
|
|
— |
|
|
— |
% |
|
165,395 |
|
|
309 |
|
|
0.25 |
% |
Interest-bearing deposits with banks |
1,221,241 |
|
|
1,224 |
|
|
0.13 |
% |
|
159,065 |
|
|
688 |
|
|
0.58 |
% |
FHLB stock |
14,629 |
|
|
457 |
|
|
4.18 |
% |
|
19,822 |
|
|
785 |
|
|
5.29 |
% |
Total investment securities(3) |
4,821,974 |
|
|
56,184 |
|
|
1.56 |
% |
|
2,352,269 |
|
|
41,639 |
|
|
2.36 |
% |
Total interest-earning assets |
14,697,267 |
|
|
400,776 |
|
|
3.65 |
% |
|
12,431,248 |
|
|
396,095 |
|
|
4.26 |
% |
Non-interest-earning
assets |
1,255,512 |
|
|
|
|
|
|
1,232,997 |
|
|
|
|
|
Total assets |
$ |
15,952,779 |
|
|
|
|
|
|
$ |
13,664,245 |
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
1,714,920 |
|
|
899 |
|
|
0.07 |
% |
|
$ |
1,352,369 |
|
|
1,164 |
|
|
0.11 |
% |
Savings accounts |
2,611,046 |
|
|
1,433 |
|
|
0.07 |
% |
|
2,133,780 |
|
|
3,566 |
|
|
0.22 |
% |
Money market accounts |
2,284,904 |
|
|
2,111 |
|
|
0.12 |
% |
|
1,940,096 |
|
|
5,228 |
|
|
0.36 |
% |
Certificates of deposit |
888,502 |
|
|
4,943 |
|
|
0.74 |
% |
|
1,069,145 |
|
|
10,665 |
|
|
1.33 |
% |
Total interest-bearing deposits |
7,499,372 |
|
|
9,386 |
|
|
0.17 |
% |
|
6,495,390 |
|
|
20,623 |
|
|
0.42 |
% |
Non-interest-bearing deposits |
6,001,354 |
|
|
— |
|
|
— |
% |
|
4,738,559 |
|
|
— |
|
|
— |
% |
Total deposits |
13,500,726 |
|
|
9,386 |
|
|
0.09 |
% |
|
11,233,949 |
|
|
20,623 |
|
|
0.25 |
% |
Other interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
FHLB advances |
114,103 |
|
|
2,244 |
|
|
2.63 |
% |
|
236,949 |
|
|
4,036 |
|
|
2.28 |
% |
Other borrowings |
232,142 |
|
|
358 |
|
|
0.21 |
% |
|
195,977 |
|
|
482 |
|
|
0.33 |
% |
Junior subordinated debentures and subordinated notes |
247,944 |
|
|
6,605 |
|
|
3.56 |
% |
|
181,886 |
|
|
4,988 |
|
|
3.66 |
% |
Total borrowings |
594,189 |
|
|
9,207 |
|
|
2.07 |
% |
|
614,812 |
|
|
9,506 |
|
|
2.07 |
% |
Total funding liabilities |
14,094,915 |
|
|
18,593 |
|
|
0.18 |
% |
|
11,848,761 |
|
|
30,129 |
|
|
0.34 |
% |
Other non-interest-bearing
liabilities(2) |
203,349 |
|
|
|
|
|
|
197,912 |
|
|
|
|
|
Total liabilities |
14,298,264 |
|
|
|
|
|
|
12,046,673 |
|
|
|
|
|
Shareholders’ equity |
1,654,515 |
|
|
|
|
|
|
1,617,572 |
|
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
15,952,779 |
|
|
|
|
|
|
$ |
13,664,245 |
|
|
|
|
|
Net interest income/rate
spread (tax equivalent) |
|
|
$ |
382,183 |
|
|
3.47 |
% |
|
|
|
$ |
365,966 |
|
|
3.92 |
% |
Net interest margin (tax
equivalent) |
|
|
|
|
3.48 |
% |
|
|
|
|
|
3.93 |
% |
Reconciliation to reported
net interest income: |
|
|
|
|
|
|
|
|
|
|
|
Adjustments for taxable
equivalent basis |
|
|
(6,822 |
) |
|
|
|
|
|
(6,102 |
) |
|
|
Net interest income and
margin, as reported |
|
|
$ |
375,361 |
|
|
3.41 |
% |
|
|
|
$ |
359,864 |
|
|
3.87 |
% |
Additional Key
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
1.27 |
% |
|
|
|
|
|
0.75 |
% |
Return on average equity |
|
|
|
|
12.21 |
% |
|
|
|
|
|
6.36 |
% |
Average equity/average
assets |
|
|
|
|
10.37 |
% |
|
|
|
|
|
11.84 |
% |
Average interest-earning
assets/average interest-bearing liabilities |
|
|
` |
|
181.59 |
% |
|
|
|
|
|
174.84 |
% |
Average interest-earning
assets/average funding liabilities |
|
|
|
|
104.27 |
% |
|
|
|
|
|
104.92 |
% |
Non-interest income/average
assets |
|
|
|
|
0.60 |
% |
|
|
|
|
|
0.73 |
% |
Non-interest expense/average
assets |
|
|
|
|
2.42 |
% |
|
|
|
|
|
2.68 |
% |
Efficiency
ratio(4) |
|
|
|
|
64.45 |
% |
|
|
|
|
|
63.00 |
% |
Adjusted efficiency
ratio(5) |
|
|
|
|
60.39 |
% |
|
|
|
|
|
59.59 |
% |
(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 $3.8
million and $3.6 million for the nine months ended
September 30, 2021 and September 30, 2020, respectively.
The tax equivalent yield adjustment to interest earned on tax
exempt securities was $3.0 million and $2.5 million for the nine
months ended September 30, 2021 and September 30, 2020,
respectively. |
(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 the non-GAAP Financial
Measures on the final two pages of the press release tables. |
|
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Non-GAAP
Financial Measures |
|
|
|
|
|
|
|
|
|
|
In addition to results presented in accordance with generally
accepted accounting principles in the United States of America
(GAAP), this press release contains certain non-GAAP financial
measures. Management has presented these non-GAAP financial
measures in this earnings release because it believes that they
provide useful and comparative information to assess trends in
Banner’s core operations reflected in the current quarter’s results
and facilitate the comparison of our performance with the
performance of our peers. However, these non-GAAP financial
measures are supplemental and are not a substitute for any analysis
based on GAAP. Where applicable, comparable earnings information
using GAAP financial measures is also presented. Because not all
companies use the same calculations, our presentation may not be
comparable to other similarly titled measures as calculated by
other companies. For a reconciliation of these non-GAAP financial
measures, see the tables below: |
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED
REVENUE |
|
Quarters Ended |
|
Nine Months Ended |
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
Net interest income |
|
$ |
130,146 |
|
|
|
$ |
127,554 |
|
|
|
$ |
121,026 |
|
|
|
$ |
375,361 |
|
|
|
$ |
359,864 |
|
|
Total non-interest income |
|
25,334 |
|
|
|
22,336 |
|
|
|
28,222 |
|
|
|
71,942 |
|
|
|
75,107 |
|
|
Total revenue (GAAP) |
|
155,480 |
|
|
|
149,890 |
|
|
|
149,248 |
|
|
|
447,303 |
|
|
|
434,971 |
|
|
Exclude net gain on sale of securities |
|
(56 |
) |
|
|
(77 |
) |
|
|
(644 |
) |
|
|
(618 |
) |
|
|
(815 |
) |
|
Exclude net change in valuation of financial instruments carried at
fair value |
|
(1,778 |
) |
|
|
(58 |
) |
|
|
(37 |
) |
|
|
(1,895 |
) |
|
|
2,360 |
|
|
Adjusted revenue
(non-GAAP) |
|
$ |
153,646 |
|
|
|
$ |
149,755 |
|
|
|
$ |
148,567 |
|
|
|
$ |
444,790 |
|
|
|
$ |
436,516 |
|
|
ADJUSTED
EARNINGS |
|
Quarters Ended |
|
Nine Months Ended |
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
Net income (GAAP) |
|
$ |
49,884 |
|
|
|
$ |
54,382 |
|
|
|
$ |
36,548 |
|
|
|
$ |
151,121 |
|
|
|
$ |
76,971 |
|
|
Exclude net gain on sale of securities |
|
(56 |
) |
|
|
(77 |
) |
|
|
(644 |
) |
|
|
(618 |
) |
|
|
(815 |
) |
|
Exclude net change in valuation of financial instruments carried at
fair value |
|
(1,778 |
) |
|
|
(58 |
) |
|
|
(37 |
) |
|
|
(1,895 |
) |
|
|
2,360 |
|
|
Exclude merger and acquisition-related expenses |
|
10 |
|
|
|
79 |
|
|
|
5 |
|
|
|
660 |
|
|
|
1,483 |
|
|
Exclude COVID-19 expenses |
|
44 |
|
|
|
117 |
|
|
|
778 |
|
|
|
309 |
|
|
|
3,169 |
|
|
Exclude Banner Forward expenses |
|
7,592 |
|
|
|
1,905 |
|
|
|
— |
|
|
|
10,447 |
|
|
|
— |
|
|
Exclude related net tax expense (benefit) |
|
(1,395 |
) |
|
|
(472 |
) |
|
|
(24 |
) |
|
|
(2,137 |
) |
|
|
(1,476 |
) |
|
Total adjusted earnings
(non-GAAP) |
|
$ |
54,301 |
|
|
|
$ |
55,876 |
|
|
|
$ |
36,626 |
|
|
|
$ |
157,887 |
|
|
|
$ |
81,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP) |
|
$ |
1.44 |
|
|
|
$ |
1.56 |
|
|
|
$ |
1.03 |
|
|
|
$ |
4.32 |
|
|
|
$ |
2.17 |
|
|
Diluted adjusted earnings per
share (non-GAAP) |
|
$ |
1.57 |
|
|
|
$ |
1.60 |
|
|
|
$ |
1.04 |
|
|
|
$ |
4.51 |
|
|
|
$ |
2.30 |
|
|
ADDITIONAL FINANCIAL
INFORMATION |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EFFICIENCY RATIO |
|
Quarters Ended |
|
Nine Months Ended |
|
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Sep 30, 2020 |
|
Sep 30, 2021 |
|
Sep 30, 2020 |
Non-interest expense (GAAP) |
|
$ |
102,145 |
|
|
|
$ |
92,624 |
|
|
|
$ |
90,028 |
|
|
|
$ |
288,296 |
|
|
|
$ |
274,033 |
|
|
Exclude merger and acquisition-related expenses |
|
(10 |
) |
|
|
(79 |
) |
|
|
(5 |
) |
|
|
(660 |
) |
|
|
(1,483 |
) |
|
Exclude COVID-19 expenses |
|
(44 |
) |
|
|
(117 |
) |
|
|
(778 |
) |
|
|
(309 |
) |
|
|
(3,169 |
) |
|
Exclude Banner Forward expenses |
|
(7,592 |
) |
|
|
(1,905 |
) |
|
|
— |
|
|
|
(10,447 |
) |
|
|
— |
|
|
Exclude CDI amortization |
|
(1,575 |
) |
|
|
(1,711 |
) |
|
|
(1,864 |
) |
|
|
(4,997 |
) |
|
|
(5,867 |
) |
|
Exclude state/municipal tax expense |
|
(1,219 |
) |
|
|
(1,083 |
) |
|
|
(1,196 |
) |
|
|
(3,367 |
) |
|
|
(3,284 |
) |
|
Exclude REO operations |
|
(53 |
) |
|
|
(118 |
) |
|
|
11 |
|
|
|
71 |
|
|
|
(93 |
) |
|
Adjusted non-interest expense
(non-GAAP) |
|
$ |
91,652 |
|
|
|
$ |
87,611 |
|
|
|
$ |
86,196 |
|
|
|
$ |
268,587 |
|
|
|
$ |
260,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
$ |
130,146 |
|
|
|
$ |
127,554 |
|
|
|
$ |
121,026 |
|
|
|
$ |
375,361 |
|
|
|
$ |
359,864 |
|
|
Non-interest income
(GAAP) |
|
25,334 |
|
|
|
22,336 |
|
|
|
28,222 |
|
|
|
71,942 |
|
|
|
75,107 |
|
|
Total revenue |
|
155,480 |
|
|
|
149,890 |
|
|
|
149,248 |
|
|
|
447,303 |
|
|
|
434,971 |
|
|
Exclude net gain on sale of securities |
|
(56 |
) |
|
|
(77 |
) |
|
|
(644 |
) |
|
|
(618 |
) |
|
|
(815 |
) |
|
Exclude net change in valuation of financial instruments carried at
fair value |
|
(1,778 |
) |
|
|
(58 |
) |
|
|
(37 |
) |
|
|
(1,895 |
) |
|
|
2,360 |
|
|
Adjusted revenue
(non-GAAP) |
|
$ |
153,646 |
|
|
|
$ |
149,755 |
|
|
|
$ |
148,567 |
|
|
|
$ |
444,790 |
|
|
|
$ |
436,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
65.70 |
|
% |
|
61.79 |
|
% |
|
60.32 |
|
% |
|
64.45 |
|
% |
|
63.00 |
|
% |
Adjusted efficiency ratio
(non-GAAP) |
|
59.65 |
|
% |
|
58.50 |
|
% |
|
58.02 |
|
% |
|
60.39 |
|
% |
|
59.59 |
|
% |
TANGIBLE COMMON
SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS |
|
Sep 30, 2021 |
|
Jun 30, 2021 |
|
Dec 31, 2020 |
|
Sep 30, 2020 |
Shareholders’ equity (GAAP) |
|
$ |
1,667,119 |
|
|
|
$ |
1,669,211 |
|
|
|
$ |
1,666,264 |
|
|
|
$ |
1,646,529 |
|
|
Exclude goodwill and other intangible assets, net |
|
389,550 |
|
|
|
391,125 |
|
|
|
394,547 |
|
|
|
396,412 |
|
|
Tangible common shareholders’
equity (non-GAAP) |
|
$ |
1,277,569 |
|
|
|
$ |
1,278,086 |
|
|
|
$ |
1,271,717 |
|
|
|
$ |
1,250,117 |
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
16,637,879 |
|
|
|
$ |
16,181,857 |
|
|
|
$ |
15,031,623 |
|
|
|
$ |
14,642,075 |
|
|
Exclude goodwill and other intangible assets, net |
|
389,550 |
|
|
|
391,125 |
|
|
|
394,547 |
|
|
|
396,412 |
|
|
Total tangible assets
(non-GAAP) |
|
$ |
16,248,329 |
|
|
|
$ |
15,790,732 |
|
|
|
$ |
14,637,076 |
|
|
|
$ |
14,245,663 |
|
|
Common shareholders’ equity to
total assets (GAAP) |
|
10.02 |
|
% |
|
10.32 |
|
% |
|
11.09 |
|
% |
|
11.25 |
|
% |
Tangible common shareholders’
equity to tangible assets (non-GAAP) |
|
7.86 |
|
% |
|
8.09 |
|
% |
|
8.69 |
|
% |
|
8.78 |
|
% |
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON
SHAREHOLDERS’ EQUITY PER SHARE |
|
|
|
|
|
|
|
|
Tangible common shareholders’
equity (non-GAAP) |
|
$ |
1,277,569 |
|
|
|
$ |
1,278,086 |
|
|
|
$ |
1,271,717 |
|
|
|
$ |
1,250,117 |
|
|
Common shares outstanding at
end of period |
|
34,251,991 |
|
|
|
34,550,888 |
|
|
|
35,159,200 |
|
|
|
35,158,568 |
|
|
Common shareholders’ equity
(book value) per share (GAAP) |
|
$ |
48.67 |
|
|
|
$ |
48.31 |
|
|
|
$ |
47.39 |
|
|
|
$ |
46.83 |
|
|
Tangible common shareholders’
equity (tangible book value) per share (non-GAAP) |
|
$ |
37.30 |
|
|
|
$ |
36.99 |
|
|
|
$ |
36.17 |
|
|
|
$ |
35.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT: |
MARK J. GRESCOVICH,
PRESIDENT & CEO
PETER J. CONNER, CFO
(509) 527-3636 |
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