Banner Corporation (NASDAQ GSM:BANR), the parent company of Banner
Bank and Islanders Bank, today reported continued strong revenue
generation contributed to solid first quarter 2017 operating
results. Net income in the first quarter of 2017 increased 4%
to $23.8 million, or $0.72 per diluted share, compared to $22.8
million, or $0.69 per diluted share, in the preceding quarter and
increased 34% compared to $17.8 million, or $0.52 per diluted
share, in the first quarter a year ago. The current quarter
results did not include any acquisition-related expenses. The
results for the preceding quarter included $788,000 of
acquisition-related expenses which, net of tax benefit, reduced net
income by $0.02 per diluted share, while operating results in the
first quarter a year ago included $6.8 million of
acquisition-related expenses which, net of tax benefit, reduced net
income by $0.13 per diluted share.
“During the first quarter of 2017 we continued
to improve our operating performance, with good loan origination
and core deposit growth as well as continued strong core revenues,”
stated Mark J. Grescovich, President and Chief Executive
Officer. “We also benefited from the very positive economic
conditions in our market areas, as well as the successful
integration of the AmericanWest Bank acquisition, which has made a
dramatic impact on our scale and reach and is providing enhanced
opportunities for client and revenue growth. During the first
quarter, we crossed the threshold of $10 billion in total assets
and again incurred increased expenses related to enhanced
infrastructure and regulatory compliance costs. While
increasing regulatory costs are a significant headwind, through the
hard work of our employees, we are continuing to execute our
strategies to deliver revenue growth, sustainable profitability and
increasing value to our shareholders.”
At March 31, 2017, Banner Corporation had $10.07
billion in assets, $7.33 billion in net loans and $8.42 billion in
deposits. Banner operates 190 branch offices located in nine
of the top 20 largest western Metropolitan Statistical Areas by
population.
First Quarter 2017
Highlights
- Net income was $23.8 million, compared to $22.8 million in the
preceding quarter and increased substantially compared to $17.8
million in the first quarter of 2016.
- Return on average assets was 0.97% in the current quarter,
0.92% in the preceding quarter and 0.73% in the same quarter a year
ago.
- Revenues from core operations* were $116.4 million, compared to
$117.5 million in the preceding quarter, and increased 5% compared
to $111.0 million in the first quarter a year ago.
- Net interest margin was 4.25% for the current quarter, compared
to 4.32% in the preceding quarter and 4.13% in the first quarter a
year ago.
- Excluding the impact of acquisition accounting adjustments, the
net interest margin was 4.15%*, compared to 4.13%* in the fourth
quarter and was 4.01%* in the first quarter a year ago.
- Deposit fees and other service charges were $12.2 million, the
same as in the preceding quarter and increased compared to $11.8
million in the same quarter a year ago.
- Revenues from mortgage banking operations decreased to $4.6
million compared to $5.1 million in the preceding quarter and $5.6
million in the first quarter a year ago.
- Provision for loan losses was $2.0 million, increasing the
allowance for loan losses to $86.5 million or 1.17% of total
loans.
- Core deposits increased 3% during the current quarter and
represented 86% of total deposits at March 31, 2017.
- Quarterly dividends to shareholders were increased to $0.25 per
share, providing a current yield of 1.8% based on our March 31,
2017, closing price.
- Common shareholders' tangible equity per share* was $31.68 at
March 31, 2017, compared to $31.06 at the preceding quarter end and
$30.38 a year ago.
- The ratio of tangible common shareholders' equity to tangible
assets* remained strong at 10.72% at March 31, 2017, compared to
10.83% at the preceding quarter end and 10.98% a year ago.
*Revenues from core operations and non-interest
income from core operations (both of which exclude fair value
adjustments and gains and losses on the sale of securities),
acquisition accounting impact on net interest margin, non-interest
expense from core operations (which excludes acquisition-related
costs), the adjusted allowance for loan losses to adjusted loans
(which includes net loan discounts on acquired loans) and
references to 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) 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 four pages of this press
release.
Income Statement Review
Banner’s first quarter net interest income,
before the provision for loan losses, decreased slightly to $94.9
million, compared to $97.2 million in the preceding quarter.
First quarter 2017 net interest income, before the provision for
loan losses, increased 4% compared to $91.0 million in the first
quarter a year ago.
“Our net interest margin decreased seven basis
points compared to the preceding quarter, largely as a result
of decreased accretion from acquisition accounting loan
discounts,” said Grescovich. "In addition, in the preceding
quarter our loan yields and the net interest margin were elevated
as a result of significant prepayment fees on a single large credit
relationship. Excluding the impact of acquisition accounting,
the net interest margin increased two basis points compared to the
preceding quarter, and increased by 14 basis points compared to a
year ago.*”
Net interest margin is enhanced by the
amortization of acquisition accounting discounts on loans acquired
in the acquisitions, which are accreted into loan interest income,
as well as by net premiums on non-market-rate certificate of
deposit liabilities assumed, which are amortized as a reduction to
deposit interest expense. Banner's net interest margin was
4.25% for the first quarter of 2017, which included eight basis
points as a result of accretion from acquisition accounting loan
discounts, one basis point from the amortization of deposit
premiums and one basis point as a result of the impact of the net
loan acquisition discounts on average earning assets. The net
interest margin was 4.32% in the preceding quarter and 4.13% in the
first quarter a year ago. Excluding the effects of
acquisition accounting, the net interest margin was 4.15%* in the
first quarter, 4.13%* in the preceding quarter and 4.01%* in the
first quarter a year ago.
Average interest-earning asset yields decreased
five basis points to 4.44% compared to 4.49% for the preceding
quarter and increased 12 basis points compared to 4.32% in the
first quarter a year ago. Average loan yields decreased 13
basis points to 4.80% compared to the preceding quarter, reflecting
significantly less discount accretion, but increased two basis
points from the first quarter a year ago. Accretion of the
acquisition accounting discounts added 11 basis points to loan
yields in the current quarter compared to 21 basis points in the
preceding quarter and 12 basis points in the first quarter a year
ago. Deposit costs increased one basis point to 0.14%
compared to the preceding quarter and decreased one basis point
compared to the first quarter a year ago. Amortization of
acquisition accounting net premiums on certificates of deposit
reduced the cost of deposits by one basis point in the first
quarter of 2017, compared to two basis points in the preceding
quarter and two basis points in the first quarter a year ago.
The total cost of funds increased two basis points to 0.20% during
the first quarter compared to the preceding quarter and was
unchanged compared to the first quarter a year ago.
“As expected, due to the addition of new loans
and the renewal of acquired loans out of the discounted loan
portfolio, we recorded a $2.0 million provision for loan losses
during the first quarter, the same as in the preceding quarter,”
added Grescovich. "While our asset quality metrics remain
exceptionally good, adding to the loan loss allowance as the
acquisition accounting discounts are accreted to income and growth
in new and renewed loans occurs will likely continue as we strive
to maintain an appropriate level of reserves and maintain a
moderate risk profile." In the first quarter a year ago,
Banner did not record a provision.
Reflecting seasonal trends and the adverse
impact of higher interest rates, mortgage banking revenues,
including gains on one- to four-family and multifamily loan sales
and loan servicing fees, decreased to $4.6 million in the first
quarter compared to $5.1 million in the preceding quarter and $5.6
million in the first quarter of 2016. Sales of multifamily
loans in the current quarter resulted in gains of $70,000, while
sales of multifamily loans generated $254,000 of gains in the
preceding quarter. Home purchase activity accounted for 64%
of first quarter one- to four-family mortgage banking loan
originations.
Banner’s deposit fees and other service charges
were $12.2 million in the first quarter, which was unchanged
compared to the preceding quarter and increased 3% compared to
$11.8 million in the first quarter a year ago.
Miscellaneous income for the current quarter
included a one-time gain of $2.5 million on the sale of a
single loan that had been acquired a number of years ago as a
partial settlement on a non-performing credit relationship and was
carried at a significant discount to its contractual loan amount
and eventual sales price.
First quarter 2017 results included a $688,000
net loss for fair value adjustments as a result of changes in the
valuation of financial instruments carried at fair value that was
partly offset by a $13,000 net gain on the sale of
securities. In the preceding quarter, results included a $1.1
million net loss for fair value adjustments that was partly offset
by a $311,000 net gain on the sale of securities. In the
first quarter a year ago, results included a $29,000 net gain for
fair value adjustments and a $21,000 net gain on the sale of
securities.
Total revenues were $115.7 million for the first
quarter of 2017, compared to $116.6 million in the preceding
quarter and $111.0 million in the first quarter a year ago.
Revenues from core operations* (revenues excluding gains and losses
on the sale of securities and net change in valuation of financial
instruments) was $116.4 million in the first quarter of 2017,
compared to $117.5 million in the preceding quarter and increased
5% compared to $111.0 million in the first quarter of 2016.
Total non-interest income, which includes the
changes in the valuation of financial instruments carried at fair
value and gains and losses on the sale of securities, was $20.8
million in the first quarter of 2017, compared to $19.5 million in
the fourth quarter of 2016 and $20.0 million in the first quarter a
year ago. Non-interest income from core operations,* which
excludes gains and losses on sale of securities and net changes in
the valuation of financial instruments, was $21.5 million in the
first quarter of 2017, compared to $20.3 million for the fourth
quarter of 2017 and $19.9 million in the first quarter a year
ago.
Banner’s total non-interest expenses were $78.1
million in the first quarter of 2017, compared to $79.9 million in
the preceding quarter and $84.0 million in the first quarter of
2016. The current quarter's non-interest expenses included
increased compensation and employee benefit expense, elevated costs
for professional services largely as result of enhanced regulatory
compliance requirements and additional charges for customer refunds
related to prior periods, which were generally offset compared to
the preceding quarter by reductions in other expenses and a $1.2
million gain on the sale of real estate owned reflected in real
estate operations. Miscellaneous expenses for the current
quarter included accruals of $865,000 for customer refunds for
deposit fees that we determined should not have been charged during
a six-year period from 2010 to 2015, which was more than offset by
the release of a $1.2 million reserve for possible credit losses on
an unfunded commitment for a credit relationship that was
terminated. There were no acquisition-related expenses in the
current quarter compared to $788,000 in the preceding quarter and
$6.8 million in the first quarter a year ago.
For the first quarter of 2017, Banner recorded
$11.8 million in state and federal income tax expense for an
effective tax rate of 33.2%, which reflects normal statutory tax
rates reduced by the effect of tax-exempt income and certain tax
credits.
Balance Sheet Review
Banner’s total assets increased to $10.07
billion at March 31, 2017, from $9.79 billion at December 31, 2016
and $9.75 billion a year ago. The total of securities and
interest-bearing deposits held at other banks was $1.62 billion at
March 31, 2017, compared to $1.16 billion at December 30, 2016 and
$1.59 billion a year ago. The increase in the securities
portfolio during the current quarter reflects Banner's renewed
leveraging strategy as it crossed the $10 billion assets
threshold. In the third and fourth quarters of 2016, Banner
reduced its holdings of securities and use of wholesale funding to
ensure that it remained below $10 billion in total assets at
December 31, 2016. The average effective duration of Banner's
securities portfolio was approximately 3.8 years at March 31, 2017,
compared to 2.9 years at March 31, 2016.
“Net loans decreased slightly during the
quarter, but were up 3% year over year, with good production in
targeted loan types, including increases in commercial real estate
and construction and development loans,” said Grescovich. “We
continue to see significant potential for growth in our loan
origination pipelines.”
Net loans receivable decreased slightly to $7.33
billion at March 31, 2017, compared to $7.37 billion at December
31, 2016, largely as a result of seasonal factors and continuing
repayments on one- to four-family loans, but increased 3% compared
to $7.11 billion a year ago. Commercial real estate and
multifamily real estate loans increased modestly to $3.63 billion
at March 31, 2017, compared to $3.59 billion at December 31, 2016,
and increased 5% compared to $3.44 billion a year ago.
Commercial business loans increased slightly to $1.22 billion at
March 31, 2017, compared to $1.21 billion three months earlier and
were unchanged compared to a year ago. Agricultural business
loans, which are seasonal by nature, decreased to $313.4 million at
March 31, 2017, compared to $369.2 million three months earlier and
$340.4 million a year ago. Total construction, land and land
development loans decreased to $803.7 million at March 31, 2017,
compared to $823.1 million at December 31, 2016, but increased 27%
compared to $632.1 million a year earlier. One- to
four-family loans continued to decline as a result of repayments,
with nearly all newly originated mortgage loans being sold in the
secondary market.
Loans held for sale decreased significantly to
$86.7 million at March 31, 2017, compared to $246.4 million at
December 31, 2016, largely due to the sale of $200.7 million of
multifamily loans during the first quarter. Loans held for
sale were $47.5 million at March 31, 2016. Loans held for
sale at March 31, 2017, included $72.5 million of multifamily loans
and $14.2 million of one- to four-family loans.
Total deposits were $8.42 billion at March 31,
2017, a 4% increase compared to $8.12 billion at December 31, 2016,
and a 5% increase compared to $8.03 billion a year ago.
Non-interest-bearing account balances increased 6% to $3.21 billion
at March 31, 2017, compared to $3.04 billion a year ago.
Interest-bearing transaction and savings accounts increased 10% to
$4.06 billion compared to $3.71 billion a year ago.
Certificates of deposit decreased 11% to $1.14 billion at March 31,
2017, compared to $1.29 billion a year earlier. Brokered
deposits totaled $171.5 million at March 31, 2017, compared to
$34.1 million at December 31, 2016 and $135.6 million a year
ago. Brokered deposits increased in the current quarter in
connection with Banner's leveraging strategy as higher yielding
investment securities were purchased and total assets were allowed
to increase above the $10 billion threshold.
Reflecting additional account growth as well as
increased balances for existing clients, core deposits
(non-interest bearing and interest-bearing transaction and savings
accounts) increased by 3% during the current quarter. Core
deposits represented 86% of total deposits at March 31, 2017,
compared to 87% of total deposits at December 31, 2016, and 84% of
total deposits a year earlier. The average cost of deposits
was 0.14% for the quarter ended March 31, 2017, a one basis point
increase compared to the preceding quarter, and a one basis point
decline compared to the quarter ended March 31, 2016.
At March 31, 2017, total common shareholders'
equity was $1.32 billion, or $39.92 per share, compared to $1.31
billion at December 31, 2016 and $1.32 billion a year ago.
During the quarter Banner declared and accrued a $0.25 per share
quarterly dividend. At March 31, 2017, tangible common
shareholders' equity*, which excludes goodwill and other intangible
assets, was $1.05 billion, or 10.72% of tangible assets*, compared
to $1.03 billion, or 10.83% of tangible assets, at December 31,
2016, and $1.04 billion, or 10.98% of tangible assets, a year
ago. Banner's tangible book value per share* increased to
$31.68 at March 31, 2017, compared to $30.38 per share a year
ago.
Banner Corporation and its subsidiary banks
continue to maintain capital levels in excess of the requirements
to be categorized as “well-capitalized” under the Basel III and
Dodd Frank regulatory standards. At March 31, 2017, Banner
Corporation's common equity Tier 1 capital ratio was 11.46%, its
Tier 1 leverage capital to average assets ratio was 11.79%, and its
total capital to risk-weighted assets ratio was 13.85%.
Credit Quality
In accordance with acquisition accounting, loans
acquired from AmericanWest Bank and Siuslaw Bank were recorded at
their estimated fair value, which resulted in a net discount to the
loans’ contractual amounts, a portion of which reflects a discount
for possible credit losses. Credit discounts are included in
the determination of fair value, and as a result, no allowance for
loan and lease losses is recorded for acquired loans at the
acquisition date. Although the discount recorded on the
acquired loans is not reflected in the allowance for loan losses or
related allowance coverage ratios, we believe it should be
considered when comparing the current ratios to similar ratios in
periods prior to the acquisitions of AmericanWest Bank and Siuslaw
Bank.
The allowance for loan losses was $86.5 million
at March 31, 2017, or 1.17% of total loans outstanding and 479% of
non-performing loans compared to $78.2 million at March 31, 2016,
or 1.09% of total loans outstanding and 501% of non-performing
loans. Banner had net charge-offs of $1.5 million in the
first quarter compared to net charge-offs of $253,000 in the fourth
quarter of 2016 and net recoveries of $189,000 in the first quarter
a year ago. Primarily as a result of the addition of new
loans and the renewal of acquired loans out of the discounted loan
portfolio, Banner recorded a $2.0 million provision for loan losses
in the current quarter which was the same amount as recorded in the
prior quarter. Banner did not record a provision for the
first quarter of 2016. If the allowance for loan losses
included the remaining loan discount*, the adjusted allowance for
loan losses to adjusted loans would have been 1.56% as of March 31,
2017 as compared to 1.67% a year ago. Non-performing loans
were $18.1 million at March 31, 2017, compared to $22.6 million at
December 31, 2016 and $15.6 million a year ago. Real estate
owned and other repossessed assets were $3.2 million at March 31,
2017, compared to $11.2 million at December 31, 2016, and $7.4
million a year ago.
Banner's non-performing assets were $21.3
million, or 0.21% of total assets, at March 31, 2017, compared to
$33.8 million, or 0.35% of total assets, at December 31, 2016 and
$23.0 million, or 0.24% of total assets, a year ago. In
addition to non-performing assets, purchased credit-impaired loans
decreased to $30.5 million at March 31, 2017, compared to $32.3
million at December 31, 2016, and $53.3 million a year ago.
Conference Call
Banner will host a conference call on Tuesday,
April 25, 2017, at 8:00 a.m. PDT, to discuss its first 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
10103898, or at www.bannerbank.com.
About the Company
Banner Corporation is a $10.1 billion bank
holding company operating two commercial banks in five 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
“believe,” “will,” “will likely result,” “are expected to,” “will
continue,” “is anticipated,” “estimate,” “project,” “plans,” 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.
Important 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 loan losses, which
could necessitate additional provisions for loan 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 loan 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 customer 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 customers' 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, Utah and
California in particular; (11) the costs, effects and outcomes of
litigation; (12) new legislation or regulatory changes, including
but not limited to the Dodd-Frank Act and regulations adopted
thereunder, changes in capital requirements pursuant to the
Dodd-Frank Act and 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, or other factors
and (16) 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 |
(in thousands except
shares and per share data) |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
|
|
|
|
|
|
INTEREST
INCOME: |
|
|
|
|
|
|
Loans
receivable |
|
$ |
91,288 |
|
|
$ |
93,915 |
|
|
$ |
86,958 |
|
Mortgage-backed securities |
|
4,647 |
|
|
3,861 |
|
|
5,390 |
|
Securities and cash equivalents |
|
3,161 |
|
|
3,231 |
|
|
2,953 |
|
|
|
99,096 |
|
|
101,007 |
|
|
95,301 |
|
INTEREST
EXPENSE: |
|
|
|
|
|
|
Deposits |
|
2,791 |
|
|
2,604 |
|
|
2,946 |
|
Federal
Home Loan Bank advances |
|
273 |
|
|
79 |
|
|
279 |
|
Other
borrowings |
|
74 |
|
|
76 |
|
|
75 |
|
Junior
subordinated debentures |
|
1,104 |
|
|
1,077 |
|
|
958 |
|
|
|
4,242 |
|
|
3,836 |
|
|
4,258 |
|
Net
interest income before provision for loan losses |
|
94,854 |
|
|
97,171 |
|
|
91,043 |
|
PROVISION FOR
LOAN LOSSES |
|
2,000 |
|
|
2,030 |
|
|
— |
|
Net
interest income |
|
92,854 |
|
|
95,141 |
|
|
91,043 |
|
NON-INTEREST
INCOME: |
|
|
|
|
|
|
Deposit
fees and other service charges |
|
12,186 |
|
|
12,199 |
|
|
11,818 |
|
Mortgage
banking operations |
|
4,603 |
|
|
5,143 |
|
|
5,643 |
|
Bank
owned life insurance |
|
1,095 |
|
|
893 |
|
|
1,185 |
|
Miscellaneous |
|
3,636 |
|
|
2,065 |
|
|
1,263 |
|
|
|
21,520 |
|
|
20,300 |
|
|
19,909 |
|
Net gain
on sale of securities |
|
13 |
|
|
311 |
|
|
21 |
|
Net
change in valuation of financial instruments carried at fair
value |
|
(688 |
) |
|
(1,148 |
) |
|
29 |
|
Total
non-interest income |
|
20,845 |
|
|
19,463 |
|
|
19,959 |
|
NON-INTEREST
EXPENSE: |
|
|
|
|
|
|
Salary
and employee benefits |
|
46,063 |
|
|
44,387 |
|
|
46,564 |
|
Less
capitalized loan origination costs |
|
(4,316 |
) |
|
(4,785 |
) |
|
(4,250 |
) |
Occupancy
and equipment |
|
11,996 |
|
|
12,581 |
|
|
10,388 |
|
Information / computer data services |
|
3,994 |
|
|
4,674 |
|
|
4,920 |
|
Payment
and card processing services |
|
5,020 |
|
|
5,440 |
|
|
4,785 |
|
Professional services |
|
5,152 |
|
|
2,384 |
|
|
2,614 |
|
Advertising and marketing |
|
1,328 |
|
|
3,220 |
|
|
1,734 |
|
Deposit
insurance |
|
1,266 |
|
|
1,012 |
|
|
1,338 |
|
State/municipal business and use taxes |
|
799 |
|
|
952 |
|
|
838 |
|
Real
estate operations |
|
(966 |
) |
|
(338 |
) |
|
397 |
|
Amortization of core deposit intangibles |
|
1,624 |
|
|
1,722 |
|
|
1,808 |
|
Miscellaneous |
|
6,118 |
|
|
7,820 |
|
|
6,085 |
|
|
|
78,078 |
|
|
79,069 |
|
|
77,221 |
|
Acquisition related expenses |
|
— |
|
|
788 |
|
|
6,813 |
|
Total
non-interest expense |
|
78,078 |
|
|
79,857 |
|
|
84,034 |
|
Income
before provision for income taxes |
|
35,621 |
|
|
34,747 |
|
|
26,968 |
|
PROVISION
FOR INCOME TAXES |
|
11,828 |
|
|
11,943 |
|
|
9,194 |
|
NET
INCOME |
|
$ |
23,793 |
|
|
$ |
22,804 |
|
|
$ |
17,774 |
|
Earnings per share
available to common shareholders: |
|
|
|
|
|
|
Basic |
|
$ |
0.72 |
|
|
$ |
0.69 |
|
|
$ |
0.52 |
|
Diluted |
|
$ |
0.72 |
|
|
$ |
0.69 |
|
|
$ |
0.52 |
|
Cumulative dividends
declared per common share |
|
$ |
0.25 |
|
|
$ |
0.23 |
|
|
$ |
0.21 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
Basic |
|
32,933,444 |
|
|
33,134,222 |
|
|
34,023,800 |
|
Diluted |
|
33,051,459 |
|
|
33,201,333 |
|
|
34,103,727 |
|
Decrease in common
shares outstanding |
|
(40,523 |
) |
|
(673,924 |
) |
|
(20,804 |
) |
FINANCIAL CONDITION |
|
|
|
|
|
|
|
Percentage Change |
(in thousands except
shares and per share data) |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
196,277 |
|
|
$ |
177,083 |
|
|
$ |
153,706 |
|
|
10.8 |
% |
|
27.7 |
% |
Interest-bearing
deposits |
|
104,431 |
|
|
70,636 |
|
|
106,864 |
|
|
47.8 |
% |
|
(2.3 |
)% |
Total
cash and cash equivalents |
|
300,708 |
|
|
247,719 |
|
|
260,570 |
|
|
21.4 |
% |
|
15.4 |
% |
Securities -
trading |
|
24,753 |
|
|
24,568 |
|
|
33,994 |
|
|
0.8 |
% |
|
(27.2 |
)% |
Securities - available
for sale |
|
1,223,764 |
|
|
800,917 |
|
|
1,199,279 |
|
|
52.8 |
% |
|
2.0 |
% |
Securities - held to
maturity |
|
266,391 |
|
|
267,873 |
|
|
246,320 |
|
|
(0.6 |
)% |
|
8.1 |
% |
Federal Home Loan Bank
stock |
|
10,334 |
|
|
12,506 |
|
|
13,347 |
|
|
(17.4 |
)% |
|
(22.6 |
)% |
Loans held for
sale |
|
86,707 |
|
|
246,353 |
|
|
47,523 |
|
|
(64.8 |
)% |
|
82.5 |
% |
Loans receivable |
|
7,421,255 |
|
|
7,451,148 |
|
|
7,185,999 |
|
|
(0.4 |
)% |
|
3.3 |
% |
Allowance for loan
losses |
|
(86,527 |
) |
|
(85,997 |
) |
|
(78,197 |
) |
|
0.6 |
% |
|
10.7 |
% |
Net
loans |
|
7,334,728 |
|
|
7,365,151 |
|
|
7,107,802 |
|
|
(0.4 |
)% |
|
3.2 |
% |
Accrued interest
receivable |
|
30,312 |
|
|
30,178 |
|
|
30,674 |
|
|
0.4 |
% |
|
(1.2 |
)% |
Real estate owned held
for sale, net |
|
3,040 |
|
|
11,081 |
|
|
7,207 |
|
|
(72.6 |
)% |
|
(57.8 |
)% |
Property and equipment,
net |
|
162,467 |
|
|
166,481 |
|
|
168,807 |
|
|
(2.4 |
)% |
|
(3.8 |
)% |
Goodwill |
|
244,583 |
|
|
244,583 |
|
|
244,811 |
|
|
— |
% |
|
(0.1 |
)% |
Other intangibles,
net |
|
28,488 |
|
|
30,162 |
|
|
35,598 |
|
|
(5.6 |
)% |
|
(20.0 |
)% |
Bank-owned life
insurance |
|
159,948 |
|
|
158,936 |
|
|
156,928 |
|
|
0.6 |
% |
|
1.9 |
% |
Other assets |
|
192,155 |
|
|
187,160 |
|
|
192,734 |
|
|
2.7 |
% |
|
(0.3 |
)% |
Total
assets |
|
$ |
10,068,378 |
|
|
$ |
9,793,668 |
|
|
$ |
9,745,594 |
|
|
2.8 |
% |
|
3.3 |
% |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
3,213,044 |
|
|
$ |
3,140,451 |
|
|
$ |
3,036,330 |
|
|
2.3 |
% |
|
5.8 |
% |
Interest-bearing transaction and savings accounts |
|
4,064,198 |
|
|
3,935,630 |
|
|
3,705,658 |
|
|
3.3 |
% |
|
9.7 |
% |
Interest-bearing certificates |
|
1,144,718 |
|
|
1,045,333 |
|
|
1,287,873 |
|
|
9.5 |
% |
|
(11.1 |
)% |
Total
deposits |
|
8,421,960 |
|
|
8,121,414 |
|
|
8,029,861 |
|
|
3.7 |
% |
|
4.9 |
% |
Advances from Federal
Home Loan Bank at fair value |
|
213 |
|
|
54,216 |
|
|
75,400 |
|
|
(99.6 |
)% |
|
(99.7 |
)% |
Customer repurchase
agreements and other borrowings |
|
120,245 |
|
|
105,685 |
|
|
106,132 |
|
|
13.8 |
% |
|
13.3 |
% |
Junior subordinated
debentures at fair value |
|
96,040 |
|
|
95,200 |
|
|
92,879 |
|
|
0.9 |
% |
|
3.4 |
% |
Accrued expenses and
other liabilities |
|
66,201 |
|
|
71,369 |
|
|
81,485 |
|
|
(7.2 |
)% |
|
(18.8 |
)% |
Deferred
compensation |
|
40,315 |
|
|
40,074 |
|
|
39,682 |
|
|
0.6 |
% |
|
1.6 |
% |
Total
liabilities |
|
8,744,974 |
|
|
8,487,958 |
|
|
8,425,439 |
|
|
3.0 |
% |
|
3.8 |
% |
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
1,214,517 |
|
|
1,213,837 |
|
|
1,262,050 |
|
|
0.1 |
% |
|
(3.8 |
)% |
Retained earnings |
|
110,783 |
|
|
95,328 |
|
|
50,230 |
|
|
16.2 |
% |
|
120.6 |
% |
Other components of
shareholders' equity |
|
(1,896 |
) |
|
(3,455 |
) |
|
7,875 |
|
|
(45.1 |
)% |
|
(124.1 |
)% |
Total
shareholders' equity |
|
1,323,404 |
|
|
1,305,710 |
|
|
1,320,155 |
|
|
1.4 |
% |
|
0.2 |
% |
Total
liabilities and shareholders' equity |
|
$ |
10,068,378 |
|
|
$ |
9,793,668 |
|
|
$ |
9,745,594 |
|
|
2.8 |
% |
|
3.3 |
% |
Common Shares
Issued: |
|
|
|
|
|
|
|
|
|
|
Shares outstanding at
end of period |
|
33,152,864 |
|
|
33,193,387 |
|
|
34,221,451 |
|
|
|
|
|
Common shareholders'
equity per share (1) |
|
$ |
39.92 |
|
|
$ |
39.34 |
|
|
$ |
38.58 |
|
|
|
|
|
Common shareholders'
tangible equity per share (1) (2) |
|
$ |
31.68 |
|
|
$ |
31.06 |
|
|
$ |
30.38 |
|
|
|
|
|
Common shareholders'
tangible equity to tangible assets (2) |
|
10.72 |
% |
|
10.83 |
% |
|
10.98 |
% |
|
|
|
|
Consolidated Tier 1
leverage capital ratio |
|
11.79 |
% |
|
11.83 |
% |
|
11.28 |
% |
|
|
|
|
(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 last four pages of the press release tables. |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Change |
LOANS |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
Prior Qtr |
|
Prior Yr Qtr |
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate: |
|
|
|
|
|
|
|
|
|
|
Owner
occupied |
|
$ |
1,361,095 |
|
|
$ |
1,352,999 |
|
|
$ |
1,328,034 |
|
|
0.6 |
% |
|
2.5 |
% |
Investment properties |
|
2,011,618 |
|
|
1,986,336 |
|
|
1,805,243 |
|
|
1.3 |
% |
|
11.4 |
% |
Multifamily real
estate |
|
254,246 |
|
|
248,150 |
|
|
307,019 |
|
|
2.5 |
% |
|
(17.2 |
)% |
Commercial
construction |
|
141,505 |
|
|
124,068 |
|
|
87,711 |
|
|
14.1 |
% |
|
61.3 |
% |
Multifamily
construction |
|
114,728 |
|
|
124,126 |
|
|
79,737 |
|
|
(7.6 |
)% |
|
43.9 |
% |
One- to four-family
construction |
|
366,191 |
|
|
375,704 |
|
|
297,348 |
|
|
(2.5 |
)% |
|
23.2 |
% |
Land and land
development: |
|
|
|
|
|
|
|
|
|
|
Residential |
|
151,649 |
|
|
170,004 |
|
|
142,841 |
|
|
(10.8 |
)% |
|
6.2 |
% |
Commercial |
|
29,597 |
|
|
29,184 |
|
|
24,493 |
|
|
1.4 |
% |
|
20.8 |
% |
Commercial
business |
|
1,224,541 |
|
|
1,207,879 |
|
|
1,224,915 |
|
|
1.4 |
% |
|
— |
% |
Agricultural business
including secured by farmland |
|
313,374 |
|
|
369,156 |
|
|
340,350 |
|
|
(15.1 |
)% |
|
(7.9 |
)% |
One- to four-family
real estate |
|
802,991 |
|
|
813,077 |
|
|
910,719 |
|
|
(1.2 |
)% |
|
(11.8 |
)% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
Consumer
secured by one- to four-family real estate |
|
493,495 |
|
|
493,211 |
|
|
481,590 |
|
|
0.1 |
% |
|
2.5 |
% |
Consumer-other |
|
156,225 |
|
|
157,254 |
|
|
155,999 |
|
|
(0.7 |
)% |
|
0.1 |
% |
Total
loans receivable |
|
$ |
7,421,255 |
|
|
$ |
7,451,148 |
|
|
$ |
7,185,999 |
|
|
(0.4 |
)% |
|
3.3 |
% |
Restructured loans
performing under their restructured terms |
|
$ |
17,193 |
|
|
$ |
18,907 |
|
|
$ |
19,450 |
|
|
|
|
|
Loans 30 - 89 days past
due and on accrual (1) |
|
$ |
22,214 |
|
|
$ |
11,571 |
|
|
$ |
28,264 |
|
|
|
|
|
Total delinquent loans
(including loans on non-accrual), net (2) |
|
$ |
37,563 |
|
|
$ |
30,553 |
|
|
$ |
43,986 |
|
|
|
|
|
Total delinquent
loans / Total loans outstanding |
|
0.51 |
% |
|
0.41 |
% |
|
0.61 |
% |
|
|
|
|
(1) Includes $2.4 million of purchased credit-impaired loans at
March 31, 2017 compared to $470,000 at December 31, 2016 and $1.6
million at March 31, 2016.(2) Delinquent loans include $3.5 million
of delinquent purchased credit-impaired loans at March 31, 2017
compared to $1.7 million at December 31, 2016 and $4.9 million at
March 31, 2016.
LOANS BY
GEOGRAPHIC LOCATION |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
|
Amount |
|
Percentage |
|
Amount |
|
Percentage |
|
Amount |
|
Percentage |
|
|
|
|
|
|
|
|
|
|
|
|
|
Washington |
|
$ |
3,401,005 |
|
|
45.8 |
% |
|
$ |
3,433,617 |
|
|
46.1 |
% |
|
$ |
3,333,912 |
|
|
46.4 |
% |
Oregon |
|
1,493,054 |
|
|
20.1 |
% |
|
1,505,369 |
|
|
20.2 |
% |
|
1,420,749 |
|
|
19.8 |
% |
California |
|
1,255,597 |
|
|
16.9 |
% |
|
1,239,989 |
|
|
16.6 |
% |
|
1,173,203 |
|
|
16.3 |
% |
Idaho |
|
471,519 |
|
|
6.4 |
% |
|
495,992 |
|
|
6.7 |
% |
|
493,905 |
|
|
6.9 |
% |
Utah |
|
281,379 |
|
|
3.8 |
% |
|
283,890 |
|
|
3.8 |
% |
|
289,082 |
|
|
4.0 |
% |
Other |
|
518,701 |
|
|
7.0 |
% |
|
492,291 |
|
|
6.6 |
% |
|
475,148 |
|
|
6.6 |
% |
Total loans |
|
$ |
7,421,255 |
|
|
100.0 |
% |
|
$ |
7,451,148 |
|
|
100.0 |
% |
|
$ |
7,185,999 |
|
|
100.0 |
% |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
Quarters Ended |
CHANGE IN
THE |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
ALLOWANCE FOR
LOAN LOSSES |
|
|
|
|
|
|
Balance, beginning of
period |
|
$ |
85,997 |
|
|
$ |
84,220 |
|
|
$ |
78,008 |
|
Provision for loan
losses |
|
2,000 |
|
|
2,030 |
|
|
— |
|
Recoveries of loans
previously charged off: |
|
|
|
|
|
|
Commercial real estate |
|
70 |
|
|
484 |
|
|
38 |
|
Construction and land |
|
83 |
|
|
903 |
|
|
471 |
|
One- to
four-family real estate |
|
145 |
|
|
231 |
|
|
12 |
|
Commercial business |
|
173 |
|
|
218 |
|
|
720 |
|
Agricultural business, including secured by farmland |
|
113 |
|
|
20 |
|
|
17 |
|
Consumer |
|
94 |
|
|
81 |
|
|
207 |
|
|
|
678 |
|
|
1,937 |
|
|
1,465 |
|
Loans charged off: |
|
|
|
|
|
|
Commercial real estate |
|
— |
|
|
(566 |
) |
|
(180 |
) |
Construction and land |
|
— |
|
|
(616 |
) |
|
— |
|
One- to
four-family real estate |
|
— |
|
|
(249 |
) |
|
— |
|
Commercial business |
|
(1,626 |
) |
|
(305 |
) |
|
(139 |
) |
Agricultural business, including secured by farmland |
|
(159 |
) |
|
— |
|
|
(567 |
) |
Consumer |
|
(363 |
) |
|
(454 |
) |
|
(390 |
) |
|
|
(2,148 |
) |
|
(2,190 |
) |
|
(1,276 |
) |
Net
(charge-offs) recoveries |
|
(1,470 |
) |
|
(253 |
) |
|
189 |
|
Balance, end of
period |
|
$ |
86,527 |
|
|
$ |
85,997 |
|
|
$ |
78,197 |
|
Net (charge-offs)
recoveries / Average loans outstanding |
|
(0.019 |
)% |
|
(0.003 |
)% |
|
0.003 |
% |
ALLOCATION
OF |
|
|
|
|
|
|
ALLOWANCE FOR
LOAN LOSSES |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Specific or allocated
loss allowance: |
|
|
|
|
|
|
Commercial real estate |
|
$ |
20,472 |
|
|
$ |
20,993 |
|
|
$ |
19,732 |
|
Multifamily real estate |
|
1,378 |
|
|
1,360 |
|
|
2,853 |
|
Construction and land |
|
29,464 |
|
|
34,252 |
|
|
29,318 |
|
One- to
four-family real estate |
|
1,974 |
|
|
2,238 |
|
|
2,170 |
|
Commercial business |
|
19,768 |
|
|
16,533 |
|
|
15,118 |
|
Agricultural business, including secured by farmland |
|
3,245 |
|
|
2,967 |
|
|
4,282 |
|
Consumer |
|
3,840 |
|
|
4,104 |
|
|
3,541 |
|
Total
allocated |
|
80,141 |
|
|
82,447 |
|
|
77,014 |
|
Unallocated |
|
6,386 |
|
|
3,550 |
|
|
1,183 |
|
Total allowance for loan losses |
|
$ |
86,527 |
|
|
$ |
85,997 |
|
|
$ |
78,197 |
|
Allowance for loan
losses / Total loans outstanding |
|
1.17 |
% |
|
1.15 |
% |
|
1.09 |
% |
Allowance for loan
losses / Non-performing loans |
|
479 |
% |
|
381 |
% |
|
501 |
% |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
NON-PERFORMING
ASSETS |
|
|
|
|
|
Loans on non-accrual
status: |
|
|
|
|
|
Secured
by real estate: |
|
|
|
|
|
Commercial |
$ |
6,910 |
|
|
$ |
8,237 |
|
|
$ |
4,145 |
|
Multifamily |
147 |
|
|
— |
|
|
— |
|
Construction and land |
1,775 |
|
|
1,748 |
|
|
2,250 |
|
One- to
four-family |
3,386 |
|
|
2,263 |
|
|
4,803 |
|
Commercial business |
2,700 |
|
|
3,074 |
|
|
1,558 |
|
Agricultural business, including secured by farmland |
1,012 |
|
|
3,229 |
|
|
663 |
|
Consumer |
1,285 |
|
|
1,875 |
|
|
906 |
|
|
17,215 |
|
|
20,426 |
|
|
14,325 |
|
Loans more than 90 days
delinquent, still on accrual: |
|
|
|
|
|
Secured
by real estate: |
|
|
|
|
|
Commercial |
— |
|
|
701 |
|
|
— |
|
Multifamily |
— |
|
|
147 |
|
|
— |
|
One- to
four-family |
545 |
|
|
1,233 |
|
|
1,039 |
|
Consumer |
297 |
|
|
72 |
|
|
251 |
|
|
842 |
|
|
2,153 |
|
|
1,290 |
|
Total non-performing
loans |
18,057 |
|
|
22,579 |
|
|
15,615 |
|
Real estate owned
(REO) |
3,040 |
|
|
11,081 |
|
|
7,207 |
|
Other repossessed
assets |
162 |
|
|
166 |
|
|
202 |
|
Total
non-performing assets |
$ |
21,259 |
|
|
$ |
33,826 |
|
|
$ |
23,024 |
|
Total non-performing
assets to total assets |
0.21 |
% |
|
0.35 |
% |
|
0.24 |
% |
Purchased
credit-impaired loans, net |
$ |
30,501 |
|
|
$ |
32,322 |
|
|
$ |
53,271 |
|
|
Quarters Ended |
REAL ESTATE
OWNED |
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Balance, beginning of
period |
$ |
11,081 |
|
|
$ |
4,717 |
|
|
$ |
11,627 |
|
Additions
from loan foreclosures |
(68 |
) |
|
8,375 |
|
|
2 |
|
Additions
from acquisitions |
— |
|
|
— |
|
|
400 |
|
Proceeds
from dispositions of REO |
(9,125 |
) |
|
(2,791 |
) |
|
(4,666 |
) |
Gain on
sale of REO |
1,202 |
|
|
852 |
|
|
49 |
|
Valuation
adjustments in the period |
(50 |
) |
|
(72 |
) |
|
(205 |
) |
Balance, end of
period |
$ |
3,040 |
|
|
$ |
11,081 |
|
|
$ |
7,207 |
|
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT
COMPOSITION |
|
|
|
|
|
|
|
Percentage Change |
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
Prior Qtr |
|
Prior Yr |
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing |
|
$ |
3,213,044 |
|
|
$ |
3,140,451 |
|
|
$ |
3,036,330 |
|
|
2.3 |
% |
|
5.8 |
% |
Interest-bearing
checking |
|
928,232 |
|
|
914,484 |
|
|
767,460 |
|
|
1.5 |
% |
|
20.9 |
% |
Regular savings
accounts |
|
1,592,023 |
|
|
1,523,391 |
|
|
1,327,558 |
|
|
4.5 |
% |
|
19.9 |
% |
Money market
accounts |
|
1,543,943 |
|
|
1,497,755 |
|
|
1,610,640 |
|
|
3.1 |
% |
|
(4.1 |
)% |
Total
interest-bearing transaction and savings accounts |
|
4,064,198 |
|
|
3,935,630 |
|
|
3,705,658 |
|
|
3.3 |
% |
|
9.7 |
% |
Interest-bearing
certificates |
|
1,144,718 |
|
|
1,045,333 |
|
|
1,287,873 |
|
|
9.5 |
% |
|
(11.1 |
)% |
Total
deposits |
|
$ |
8,421,960 |
|
|
$ |
8,121,414 |
|
|
$ |
8,029,861 |
|
|
3.7 |
% |
|
4.9 |
% |
GEOGRAPHIC
CONCENTRATION OF DEPOSITS |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
|
|
Amount |
|
Percentage |
|
Amount |
|
Percentage |
|
Amount |
|
Percentage |
Washington |
|
$ |
4,619,457 |
|
|
54.9 |
% |
|
$ |
4,347,644 |
|
|
53.6 |
% |
|
$ |
4,209,332 |
|
|
52.4 |
% |
Oregon |
|
1,746,143 |
|
|
20.7 |
% |
|
1,708,973 |
|
|
21.0 |
% |
|
1,668,421 |
|
|
20.8 |
% |
California |
|
1,469,351 |
|
|
17.4 |
% |
|
1,469,748 |
|
|
18.1 |
% |
|
1,565,326 |
|
|
19.5 |
% |
Idaho |
|
429,850 |
|
|
5.1 |
% |
|
447,019 |
|
|
5.5 |
% |
|
428,681 |
|
|
5.3 |
% |
Utah |
|
157,159 |
|
|
1.9 |
% |
|
148,030 |
|
|
1.8 |
% |
|
158,101 |
|
|
2.0 |
% |
Total deposits |
|
$ |
8,421,960 |
|
|
100.0 |
% |
|
$ |
8,121,414 |
|
|
100.0 |
% |
|
$ |
8,029,861 |
|
|
100.0 |
% |
INCLUDED IN
TOTAL DEPOSITS |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Public
non-interest-bearing accounts |
|
$ |
80,322 |
|
|
$ |
92,789 |
|
|
$ |
82,527 |
|
Public interest-bearing
transaction & savings accounts |
|
125,921 |
|
|
128,976 |
|
|
123,713 |
|
Public interest-bearing
certificates |
|
31,024 |
|
|
25,650 |
|
|
29,983 |
|
Total
public deposits |
|
$ |
237,267 |
|
|
$ |
247,415 |
|
|
$ |
236,223 |
|
Total brokered
deposits |
|
$ |
171,521 |
|
|
$ |
34,074 |
|
|
$ |
135,603 |
|
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
|
Minimum to be categorized as "Adequately
Capitalized" |
|
Minimum to becategorized
as"Well Capitalized" |
REGULATORY
CAPITAL RATIOS AS OF March 31, 2017 |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Banner
Corporation-consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to
risk-weighted assets |
|
$ |
1,227,333 |
|
|
13.85 |
% |
|
$ |
708,897 |
|
|
8.00 |
% |
|
$ |
886,122 |
|
|
10.00 |
% |
Tier 1 capital
to risk-weighted assets |
|
1,138,357 |
|
|
12.85 |
% |
|
531,673 |
|
|
6.00 |
% |
|
531,673 |
|
|
6.00 |
% |
Tier 1 leverage
capital to average assets |
|
1,138,357 |
|
|
11.79 |
% |
|
386,229 |
|
|
4.00 |
% |
|
n/a |
|
n/a |
Common equity
tier 1 capital to risk-weighted assets |
|
1,015,251 |
|
|
11.46 |
% |
|
398,755 |
|
|
4.50 |
% |
|
n/a |
|
n/a |
Banner Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to
risk-weighted assets |
|
1,053,255 |
|
|
12.15 |
% |
|
693,425 |
|
|
8.00 |
% |
|
866,781 |
|
|
10.00 |
% |
Tier 1 capital
to risk-weighted assets |
|
966,485 |
|
|
11.15 |
% |
|
520,068 |
|
|
6.00 |
% |
|
693,425 |
|
|
8.00 |
% |
Tier 1 leverage
capital to average assets |
|
966,485 |
|
|
10.29 |
% |
|
375,777 |
|
|
4.00 |
% |
|
469,721 |
|
|
5.00 |
% |
Common equity
tier 1 capital to risk-weighted assets |
|
966,485 |
|
|
11.15 |
% |
|
390,051 |
|
|
4.50 |
% |
|
563,407 |
|
|
6.50 |
% |
Islanders Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
Total capital to
risk-weighted assets |
|
35,728 |
|
|
19.02 |
% |
|
15,031 |
|
|
8.00 |
% |
|
18,788 |
|
|
10.00 |
% |
Tier 1 capital
to risk-weighted assets |
|
33,522 |
|
|
17.84 |
% |
|
11,273 |
|
|
6.00 |
% |
|
15,031 |
|
|
8.00 |
% |
Tier 1 leverage
capital to average assets |
|
33,522 |
|
|
13.06 |
% |
|
10,271 |
|
|
4.00 |
% |
|
12,839 |
|
|
5.00 |
% |
Common equity
tier 1 capital to risk-weighted assets |
|
33,522 |
|
|
17.84 |
% |
|
8,455 |
|
|
4.50 |
% |
|
12,212 |
|
|
6.50 |
% |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
(rates / ratios
annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET
INTEREST SPREAD |
Quarters Ended |
|
March 31, 2017 |
|
December 31, 2016 |
|
March 31, 2016 |
|
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: |
|
|
|
|
|
|
|
|
|
|
|
Mortgage
loans |
$ |
6,104,779 |
|
$ |
72,549 |
|
4.82 |
% |
|
$ |
5,960,506 |
|
$ |
74,538 |
|
4.97 |
% |
|
$ |
5,707,882 |
|
$ |
68,743 |
|
4.84 |
% |
Commercial/agricultural loans |
1,464,532 |
|
16,546 |
|
4.58 |
% |
|
1,469,407 |
|
17,192 |
|
4.65 |
% |
|
1,471,638 |
|
16,025 |
|
4.38 |
% |
Consumer
and other loans |
138,033 |
|
2,193 |
|
6.44 |
% |
|
141,133 |
|
2,185 |
|
6.16 |
% |
|
141,361 |
|
2,190 |
|
6.23 |
% |
Total
loans(1) |
7,707,344 |
|
91,288 |
|
4.80 |
% |
|
7,571,046 |
|
93,915 |
|
4.93 |
% |
|
7,320,881 |
|
86,958 |
|
4.78 |
% |
Mortgage-backed securities |
842,071 |
|
4,647 |
|
2.24 |
% |
|
796,625 |
|
3,861 |
|
1.93 |
% |
|
1,004,836 |
|
5,390 |
|
2.16 |
% |
Other
securities |
453,793 |
|
3,037 |
|
2.71 |
% |
|
469,377 |
|
3,062 |
|
2.60 |
% |
|
421,241 |
|
2,772 |
|
2.65 |
% |
Interest-bearing deposits with banks |
32,195 |
|
93 |
|
1.17 |
% |
|
91,625 |
|
95 |
|
0.41 |
% |
|
103,775 |
|
101 |
|
0.39 |
% |
FHLB
stock |
15,550 |
|
31 |
|
0.81 |
% |
|
11,668 |
|
74 |
|
2.52 |
% |
|
17,531 |
|
80 |
|
1.84 |
% |
Total
investment securities |
1,343,609 |
|
7,808 |
|
2.36 |
% |
|
1,369,295 |
|
7,092 |
|
2.06 |
% |
|
1,547,383 |
|
8,343 |
|
2.17 |
% |
Total
interest-earning assets |
9,050,953 |
|
99,096 |
|
4.44 |
% |
|
8,940,341 |
|
101,007 |
|
4.49 |
% |
|
8,868,264 |
|
95,301 |
|
4.32 |
% |
Non-interest-earning
assets |
923,165 |
|
|
|
|
904,846 |
|
|
|
|
900,296 |
|
|
|
Total
assets |
$ |
9,974,118 |
|
|
|
|
$ |
9,845,187 |
|
|
|
|
$ |
9,768,560 |
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
896,764 |
|
200 |
|
0.09 |
% |
|
$ |
876,904 |
|
197 |
|
0.09 |
% |
|
$ |
934,072 |
|
196 |
|
0.08 |
% |
Savings
accounts |
1,557,734 |
|
523 |
|
0.14 |
% |
|
1,470,548 |
|
493 |
|
0.13 |
% |
|
1,307,369 |
|
423 |
|
0.13 |
% |
Money
market accounts |
1,522,470 |
|
651 |
|
0.17 |
% |
|
1,541,258 |
|
677 |
|
0.17 |
% |
|
1,620,524 |
|
862 |
|
0.21 |
% |
Certificates of deposit |
1,089,316 |
|
1,417 |
|
0.53 |
% |
|
1,089,337 |
|
1,237 |
|
0.45 |
% |
|
1,328,741 |
|
1,465 |
|
0.44 |
% |
Total
interest-bearing deposits |
5,066,284 |
|
2,791 |
|
0.22 |
% |
|
4,978,047 |
|
2,604 |
|
0.21 |
% |
|
5,190,706 |
|
2,946 |
|
0.23 |
% |
Non-interest-bearing deposits |
3,148,520 |
|
— |
|
— |
% |
|
3,193,172 |
|
— |
|
— |
% |
|
2,788,372 |
|
— |
|
— |
% |
Total
deposits |
8,214,804 |
|
2,791 |
|
0.14 |
% |
|
8,171,219 |
|
2,604 |
|
0.13 |
% |
|
7,979,078 |
|
2,946 |
|
0.15 |
% |
Other interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
FHLB
advances |
130,274 |
|
273 |
|
0.85 |
% |
|
32,932 |
|
79 |
|
0.95 |
% |
|
169,204 |
|
279 |
|
0.66 |
% |
Other
borrowings |
108,091 |
|
74 |
|
0.28 |
% |
|
107,819 |
|
76 |
|
0.28 |
% |
|
102,865 |
|
75 |
|
0.29 |
% |
Junior
subordinated debentures |
140,212 |
|
1,104 |
|
3.19 |
% |
|
140,212 |
|
1,077 |
|
3.06 |
% |
|
140,212 |
|
958 |
|
2.75 |
% |
Total
borrowings |
378,577 |
|
1,451 |
|
1.55 |
% |
|
280,963 |
|
1,232 |
|
1.74 |
% |
|
412,281 |
|
1,312 |
|
1.28 |
% |
Total
funding liabilities |
8,593,381 |
|
4,242 |
|
0.20 |
% |
|
8,452,182 |
|
3,836 |
|
0.18 |
% |
|
8,391,359 |
|
4,258 |
|
0.20 |
% |
Other
non-interest-bearing liabilities(2) |
58,489 |
|
|
|
|
67,536 |
|
|
|
|
63,014 |
|
|
|
Total
liabilities |
8,651,870 |
|
|
|
|
8,519,718 |
|
|
|
|
8,454,373 |
|
|
|
Shareholders'
equity |
1,322,248 |
|
|
|
|
1,325,469 |
|
|
|
|
1,314,187 |
|
|
|
Total
liabilities and shareholders' equity |
$ |
9,974,118 |
|
|
|
|
$ |
9,845,187 |
|
|
|
|
$ |
9,768,560 |
|
|
|
Net interest
income/rate spread |
|
$ |
94,854 |
|
4.24 |
% |
|
|
$ |
97,171 |
|
4.31 |
% |
|
|
$ |
91,043 |
|
4.12 |
% |
Net interest
margin |
|
|
4.25 |
% |
|
|
|
4.32 |
% |
|
|
|
4.13 |
% |
Additional Key
Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets |
|
|
0.97 |
% |
|
|
|
0.92 |
% |
|
|
|
0.73 |
% |
Return on average
equity |
|
|
7.30 |
% |
|
|
|
6.84 |
% |
|
|
|
5.44 |
% |
Average equity/average
assets |
|
|
13.26 |
% |
|
|
|
13.46 |
% |
|
|
|
13.45 |
% |
Average
interest-earning assets/average interest-bearing liabilities |
|
|
166.23 |
% |
|
|
|
170.00 |
% |
|
|
|
158.28 |
% |
Average
interest-earning assets/average funding liabilities |
|
|
105.32 |
% |
|
|
|
105.78 |
% |
|
|
|
105.68 |
% |
Non-interest
income/average assets |
|
|
0.85 |
% |
|
|
|
0.79 |
% |
|
|
|
0.82 |
% |
Non-interest
expense/average assets |
|
|
3.17 |
% |
|
|
|
3.23 |
% |
|
|
|
3.46 |
% |
Efficiency
ratio(4) |
|
|
67.48 |
% |
|
|
|
68.47 |
% |
|
|
|
75.70 |
% |
Adjusted efficiency
ratio(5) |
|
|
65.84 |
% |
|
|
|
65.32 |
% |
|
|
|
66.86 |
% |
(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 FHLB advances and junior subordinated debentures. |
(3 |
) |
Yields and costs have
not been adjusted for the effect of tax-exempt interest. |
(4 |
) |
Non-interest expense
divided by the total of net interest income (before provision for
loan losses) and non-interest income. |
(5 |
) |
Adjusted non-interest
expense divided by adjusted revenue. Adjusted revenue
excludes net gain (loss) on sale of securities and fair value
adjustments. Adjusted non-interest expense excludes
acquisition related costs, amortization of core deposit intangibles
(CDI), real estate operations expense, and state/municipal business
and use taxes. These represent non-GAAP financial
measures. See also Non-GAAP Financial Measures reconciliation
tables on the last four 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. Where applicable,
comparable earnings information using GAAP financial measures is
also presented. |
|
|
|
|
|
|
REVENUE FROM
CORE OPERATIONS |
Quarters Ended |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Net interest income
before provision for loan losses |
$ |
94,854 |
|
|
$ |
97,171 |
|
|
$ |
91,043 |
|
Total non-interest
income |
20,845 |
|
|
19,463 |
|
|
19,959 |
|
Total GAAP revenue |
115,699 |
|
|
116,634 |
|
|
111,002 |
|
Exclude
net gain on sale of securities |
(13 |
) |
|
(311 |
) |
|
(21 |
) |
Exclude
change in valuation of financial instruments carried at fair
value |
688 |
|
|
1,148 |
|
|
(29 |
) |
Revenue from core
operations (non-GAAP) |
$ |
116,374 |
|
|
$ |
117,471 |
|
|
$ |
110,952 |
|
NON-INTEREST
INCOME/EXPENSE FROM CORE OPERATIONS |
|
Quarters Ended |
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Total non-interest
income (GAAP) |
|
$ |
20,845 |
|
|
$ |
19,463 |
|
|
$ |
19,959 |
|
Exclude
net gain on sale of securities |
|
(13 |
) |
|
(311 |
) |
|
(21 |
) |
Exclude
change in valuation of financial instruments carried at fair
value |
|
688 |
|
|
1,148 |
|
|
(29 |
) |
Non-interest income
from core operations (non-GAAP) |
|
$ |
21,520 |
|
|
$ |
20,300 |
|
|
$ |
19,909 |
|
|
|
|
|
|
|
|
Total non-interest
expense (GAAP) |
|
$ |
78,078 |
|
|
$ |
79,857 |
|
|
$ |
84,034 |
|
Exclude
acquisition related costs |
|
— |
|
|
(788 |
) |
|
(6,813 |
) |
Non-interest expense
from core operations (non-GAAP) |
|
$ |
78,078 |
|
|
$ |
79,069 |
|
|
$ |
77,221 |
|
INCOME FROM
CORE OPERATIONS |
Quarters Ended |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Income before provision
for taxes (GAAP) |
$ |
35,621 |
|
|
$ |
34,747 |
|
|
$ |
26,968 |
|
Exclude
net gain on sale of securities |
(13 |
) |
|
(311 |
) |
|
(21 |
) |
Exclude
change in valuation of financial instruments carried at fair
value |
688 |
|
|
1,148 |
|
|
(29 |
) |
Exclude
acquisition costs |
— |
|
|
788 |
|
|
6,813 |
|
Income from core
operations before provision for taxes (non-GAAP) |
$ |
36,296 |
|
|
$ |
36,372 |
|
|
$ |
33,731 |
|
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
EARNINGS FROM
CORE OPERATIONS |
|
Quarters Ended |
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Net income (GAAP) |
|
$ |
23,793 |
|
|
$ |
22,804 |
|
|
$ |
17,774 |
|
Exclude
net gain on sale of securities |
|
(13 |
) |
|
(311 |
) |
|
(21 |
) |
Exclude
change in valuation of financial instruments carried at fair
value |
|
688 |
|
|
1,148 |
|
|
(29 |
) |
Exclude
acquisition-related costs |
|
— |
|
|
788 |
|
|
6,813 |
|
Exclude
related tax benefit |
|
(243 |
) |
|
(585 |
) |
|
(2,417 |
) |
Total earnings from
core operations (non-GAAP) |
|
$ |
24,225 |
|
|
$ |
23,844 |
|
|
$ |
22,120 |
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP) |
|
$ |
0.72 |
|
|
$ |
0.69 |
|
|
$ |
0.52 |
|
Diluted core earnings
per share (non-GAAP) |
|
$ |
0.73 |
|
|
$ |
0.72 |
|
|
$ |
0.65 |
|
RETURN ON
AVERAGE ASSETS - CORE |
|
|
|
|
|
|
Average assets |
|
$ |
9,974,118 |
|
|
$ |
9,845,187 |
|
|
$ |
9,768,560 |
|
Return on average
assets (GAAP) |
|
0.97 |
% |
|
0.92 |
% |
|
0.73 |
% |
Core return on average
assets (non-GAAP) |
|
0.99 |
% |
|
0.96 |
% |
|
0.91 |
% |
|
|
|
|
|
|
|
NET EFFECT OF
ACQUISITION-RELATED COSTS ON EARNINGS |
|
Quarters Ended |
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Acquisition-related
costs |
|
$ |
— |
|
|
$ |
(788 |
) |
|
$ |
(6,813 |
) |
Related tax
benefit |
|
— |
|
|
284 |
|
|
2,435 |
|
Total net effect of
acquisition-related costs on earnings |
|
$ |
— |
|
|
$ |
(504 |
) |
|
$ |
(4,378 |
) |
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding |
|
33,051,459 |
|
|
33,201,333 |
|
|
34,103,727 |
|
Total net effect of
acquisition-related costs on diluted weighted average earnings per
share |
|
$ |
— |
|
|
$ |
(0.02 |
) |
|
$ |
(0.13 |
) |
ACQUISITION
ACCOUNTING IMPACT ON NET INTEREST MARGIN |
Quarters Ended |
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Net interest income
before provision for loan losses (GAAP) |
$ |
94,854 |
|
|
$ |
97,171 |
|
|
$ |
91,043 |
|
Exclude
discount accretion on acquired loans |
(1,777 |
) |
|
(3,635 |
) |
|
(1,689 |
) |
Exclude
premium amortization on acquired certificates of deposit |
(132 |
) |
|
(315 |
) |
|
(461 |
) |
Net interest income
before acquisition accounting impact (non-GAAP) |
$ |
92,945 |
|
|
$ |
93,221 |
|
|
$ |
88,893 |
|
|
|
|
|
|
|
Average
interest-earning assets (GAAP) |
$ |
9,050,953 |
|
|
$ |
8,940,341 |
|
|
$ |
8,868,264 |
|
Exclude
average net loan discount on acquired loans |
30,058 |
|
|
32,773 |
|
|
43,347 |
|
Average
interest-earning assets before acquired loan discount
(non-GAAP) |
$ |
9,081,011 |
|
|
$ |
8,973,114 |
|
|
$ |
8,911,611 |
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
4.25 |
% |
|
4.32 |
% |
|
4.13 |
% |
Exclude
impact on net interest margin from discount accretion on acquired
loans |
(0.08 |
) |
|
(0.16 |
) |
|
(0.08 |
) |
Exclude
impact on net interest margin from acquired certificates of deposit
premium amortization |
(0.01 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
Exclude
impact on net interest margin of net loan discount on average
earning assets |
(0.01 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
Net margin before
acquisition accounting impact (non-GAAP) |
4.15 |
% |
|
4.13 |
% |
|
4.01 |
% |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
Quarters Ended |
ACQUISITION
ACCOUNTING IMPACT ON LOAN YIELD |
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Average total loans
(GAAP) |
$ |
7,707,344 |
|
|
$ |
7,571,046 |
|
|
$ |
7,320,881 |
|
Exclude
average net loan discount on acquired loans |
30,058 |
|
|
32,773 |
|
|
43,347 |
|
Adjusted average total
loans (non-GAAP) |
$ |
7,737,402 |
|
|
$ |
7,603,819 |
|
|
$ |
7,364,228 |
|
|
|
|
|
|
|
Interest income on
loans (GAAP) |
$ |
91,288 |
|
|
$ |
93,915 |
|
|
$ |
86,958 |
|
Exclude
discount accretion on acquired loans |
(1,777 |
) |
|
(3,635 |
) |
|
(1,689 |
) |
Adjusted interest
income on loans (non-GAAP) |
$ |
89,511 |
|
|
$ |
90,280 |
|
|
$ |
85,269 |
|
|
|
|
|
|
|
Loan yield (GAAP) |
4.80 |
% |
|
4.93 |
% |
|
4.78 |
% |
Loan yield before
acquisition accounting impact (non-GAAP) |
4.69 |
% |
|
4.72 |
% |
|
4.66 |
% |
Impact on loan yield
from acquisition accounting |
0.11 |
% |
|
0.21 |
% |
|
0.12 |
% |
|
|
|
|
|
|
ACQUISITION
ACCOUNTING IMPACT ON DEPOSIT COST |
|
|
|
|
|
Average deposits |
$ |
8,214,804 |
|
|
$ |
8,171,219 |
|
|
$ |
7,979,078 |
|
|
|
|
|
|
|
Interest expense on
deposits (GAAP) |
$ |
2,791 |
|
|
$ |
2,604 |
|
|
$ |
2,946 |
|
Exclude
premium amortization on acquired certificates of deposit |
132 |
|
|
315 |
|
|
461 |
|
Adjusted interest
expense on deposits (non-GAAP) |
$ |
2,923 |
|
|
$ |
2,919 |
|
|
$ |
3,407 |
|
|
|
|
|
|
|
Deposit cost
(GAAP) |
0.14 |
% |
|
0.13 |
% |
|
0.15 |
% |
Deposit cost before
acquisition accounting impact (non-GAAP) |
0.15 |
% |
|
0.15 |
% |
|
0.17 |
% |
Impact on deposit cost
from acquisition accounting |
(0.01 |
)% |
|
(0.02 |
)% |
|
(0.02 |
)% |
ADJUSTED
EFFICIENCY RATIO |
|
Quarters Ended |
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Non-interest expense
(GAAP) |
|
$ |
78,078 |
|
|
$ |
79,857 |
|
|
$ |
84,034 |
|
Exclude
acquisition-related costs |
|
— |
|
|
(788 |
) |
|
(6,813 |
) |
Exclude
CDI amortization |
|
(1,624 |
) |
|
(1,722 |
) |
|
(1,808 |
) |
Exclude
state/municipal tax expense |
|
(799 |
) |
|
(952 |
) |
|
(838 |
) |
Exclude
REO gain (loss) |
|
966 |
|
|
338 |
|
|
(397 |
) |
Adjusted non-interest
expense (non-GAAP) |
|
$ |
76,621 |
|
|
$ |
76,733 |
|
|
$ |
74,178 |
|
|
|
|
|
|
|
|
Net interest income
before provision for loan losses (GAAP) |
|
$ |
94,854 |
|
|
$ |
97,171 |
|
|
$ |
91,043 |
|
Non-interest income
(GAAP) |
|
20,845 |
|
|
19,463 |
|
|
19,959 |
|
Total revenue |
|
115,699 |
|
|
116,634 |
|
|
111,002 |
|
Exclude
net gain on sale of securities |
|
(13 |
) |
|
(311 |
) |
|
(21 |
) |
Exclude
net change in valuation of financial instruments carried at fair
value |
|
688 |
|
|
1,148 |
|
|
(29 |
) |
Adjusted revenue
(non-GAAP) |
|
$ |
116,374 |
|
|
$ |
117,471 |
|
|
$ |
110,952 |
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP) |
|
67.48 |
% |
|
68.47 |
% |
|
75.70 |
% |
Adjusted efficiency
ratio (non-GAAP) |
|
65.84 |
% |
|
65.32 |
% |
|
66.86 |
% |
ADDITIONAL
FINANCIAL INFORMATION |
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
RATIO OF
ADJUSTED ALLOWANCE FOR LOAN LOSSES TO ADJUSTED LOANS |
|
|
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
Loans receivable
(GAAP) |
|
$ |
7,421,255 |
|
|
$ |
7,451,148 |
|
|
$ |
7,185,999 |
|
Net loan discount on
acquired loans |
|
29,352 |
|
|
31,110 |
|
|
42,302 |
|
Adjusted loans
(non-GAAP) |
|
$ |
7,450,607 |
|
|
$ |
7,482,258 |
|
|
$ |
7,228,301 |
|
|
|
|
|
|
|
|
Allowance for loan
losses (GAAP) |
|
$ |
86,527 |
|
|
$ |
85,997 |
|
|
$ |
78,197 |
|
Net loan discount on
acquired loans |
|
29,352 |
|
|
31,110 |
|
|
42,302 |
|
Adjusted allowance for
loan losses (non-GAAP) |
|
$ |
115,879 |
|
|
$ |
117,107 |
|
|
$ |
120,499 |
|
|
|
|
|
|
|
|
Allowance for loan
losses / Total loans (GAAP) |
|
1.17 |
% |
|
1.15 |
% |
|
1.09 |
% |
Adjusted allowance for
loan losses / Adjusted loans (non-GAAP) |
|
1.56 |
% |
|
1.57 |
% |
|
1.67 |
% |
|
|
|
|
|
|
|
|
|
Mar 31, 2017 |
|
Dec 31, 2016 |
|
Mar 31, 2016 |
TANGIBLE COMMON
SHAREHOLDERS' EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
|
Shareholders' equity
(GAAP) |
|
$ |
1,323,404 |
|
|
$ |
1,305,710 |
|
|
$ |
1,320,155 |
|
Exclude
goodwill and other intangible assets, net |
|
273,071 |
|
|
274,745 |
|
|
280,409 |
|
Tangible common
shareholders' equity (non-GAAP) |
|
$ |
1,050,333 |
|
|
$ |
1,030,965 |
|
|
$ |
1,039,746 |
|
|
|
|
|
|
|
|
Total assets
(GAAP) |
|
$ |
10,068,378 |
|
|
$ |
9,793,668 |
|
|
$ |
9,745,594 |
|
Exclude
goodwill and other intangible assets, net |
|
273,071 |
|
|
274,745 |
|
|
280,409 |
|
Total tangible assets
(non-GAAP) |
|
$ |
9,795,307 |
|
|
$ |
9,518,923 |
|
|
$ |
9,465,185 |
|
Common shareholders'
equity to total assets (GAAP) |
|
13.14 |
% |
|
13.33 |
% |
|
13.55 |
% |
Tangible common
shareholders' equity to tangible assets (non-GAAP) |
|
10.72 |
% |
|
10.83 |
% |
|
10.98 |
% |
|
|
|
|
|
|
|
TANGIBLE COMMON
SHAREHOLDERS' EQUITY PER SHARE |
|
|
|
|
|
|
Tangible common
shareholders' equity |
|
$ |
1,050,333 |
|
|
$ |
1,030,965 |
|
|
$ |
1,039,746 |
|
Common shares
outstanding at end of period |
|
33,152,864 |
|
|
33,193,387 |
|
|
34,221,451 |
|
Common shareholders'
equity (book value) per share (GAAP) |
|
$ |
39.92 |
|
|
$ |
39.34 |
|
|
$ |
38.58 |
|
Tangible common
shareholders' equity (tangible book value) per share
(non-GAAP) |
|
$ |
31.68 |
|
|
$ |
31.06 |
|
|
$ |
30.38 |
|
CONTACT: MARK J. GRESCOVICH
PRESIDENT & CEO
LLOYD W. BAKER, CFO
(509) 527-3636
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