Banner Corporation Reports Net Income of $42.6 Million, or $1.24 Per Diluted Share, for 4th Quarter 2023; Earns $183.6 Million in Net Income, or $5.33 Per Diluted Share, for the Full Year of 2023; Declares Quarterly Cash Dividend of $0.48 Per Share
- Stable operating performance despite market headwinds
- Strong loan growth and higher yields on interest-earning assets
- Strong credit quality metrics and solid reserve for potential loan losses
- Core deposits representing 89% of total deposits at quarter end
- Increased net loans receivable and non-performing assets
- Increased funding costs and net loss on the sale of securities
- 7% decrease in net income compared to the previous quarter and a 22% decrease compared to Q4 2022
- Decrease in net interest income compared to the preceding quarter and prior year quarter
- 22% decrease in net income compared to Q4 2022
- 22% decrease in net income compared to Q4 2022
- Increase in funding costs and net loss on the sale of securities
Insights
The reported net income decline for Banner Corporation in the fourth quarter of 2023, which is a 22% decrease compared to the same quarter of the previous year, is indicative of a contraction in profitability. This decrease is significant as it may signal underlying challenges in the bank's operations, particularly in a period marked by increasing interest rates. The net interest margin compression, from 4.23% in the fourth quarter of 2022 to 3.83% in the same period of 2023, suggests that the cost of funding is rising faster than the yields on earning assets. This could be due to a higher proportion of costlier deposits like retail CDs or a lag in asset repricing relative to liabilities. Investors and stakeholders should note the bank's solid reserve for potential loan losses and strong core deposit base, which may provide some resilience against potential credit downturns.
Banner's strategic focus on a moderate risk profile and relationship banking is designed to stabilize performance amidst market volatility. The 7% loan growth and the increase in yields on interest-earning assets are positive signs of the bank's underlying business strength. However, the increase in funding costs that led to a decrease in net interest income is a concern as it reflects the impact of the higher interest rate environment on the bank's margins. The bank's performance must be monitored for how it manages interest rate risk and cost of funds going forward. Additionally, the 2% increase in net loans receivable indicates an expansion in lending activities, which is a critical growth metric for banks. The bank's positioning in several of the largest western Metropolitan Statistical Areas could provide a competitive advantage in securing new lending opportunities.
The financial results of Banner Corporation reflect broader economic trends, such as the impact of the Federal Reserve's interest rate hikes on the banking sector. The rise in funding costs and the compression of net interest margins are consistent with a tightening monetary policy environment. The bank's ability to navigate this landscape, particularly with the reported strong core deposit base, will be crucial for its long-term stability. Furthermore, the increase in the provision for credit losses, although lower than the previous year, suggests a cautious approach to potential credit risks in the economy. The bank's performance will be influenced by macroeconomic factors, including the trajectory of interest rates and the health of the labor market, which affects loan repayment capacities.
Banner announced that its Board of Directors declared a regular quarterly cash dividend of
“Our super community bank business strategy of emphasizing a moderate risk profile and strong relationship banking, continues to provide stable operating performance and has positioned the Company well to weather recent market headwinds,” said Mark Grescovich, President and CEO. “Banner’s performance for the fourth quarter of 2023 benefited from strong loan growth and higher yields on interest-earning assets. However, the continued higher interest rate environment and its effect on funding costs resulted in moderate compression in our net interest margin during the quarter. We continue to maintain very strong credit quality metrics and a solid reserve for potential loan losses. Additionally, we continue to benefit from a strong core deposit base, with core deposits representing
At December 31, 2023, Banner, on a consolidated basis, had
Fourth Quarter 2023 Highlights
-
Revenues were
for the fourth quarter of 2023, compared to$152.5 million in the preceding quarter, and$154.4 million in the fourth quarter a year ago.$172.1 million -
Adjusted revenue* (the total of net interest income and total non-interest income adjusted for the net gain or loss on the sale of securities and the net change in valuation of financial instruments) was
in the fourth quarter of 2023, compared to$157.1 million in the preceding quarter and$157.7 million in the fourth quarter a year ago.$175.7 million -
Net interest income was
in the fourth quarter of 2023, compared to$138.4 million in the preceding quarter and$141.8 million in the fourth quarter a year ago.$159.1 million -
Net interest margin, on a tax equivalent basis, was
3.83% , compared to3.93% in the preceding quarter and4.23% in the fourth quarter a year ago. -
Mortgage banking operations revenue was
for the fourth quarter of 2023, compared to$5.4 million in the preceding quarter and$2.0 million in the fourth quarter a year ago.$2.3 million -
Return on average assets was
1.09% , compared to1.17% in the preceding quarter and1.34% in the fourth quarter a year ago. -
Net loans receivable increased
2% to at December 31, 2023, compared to$10.66 billion at September 30, 2023, and increased$10.46 billion 7% compared to at December 31, 2022.$10.01 billion -
Non-performing assets were
, or$30.1 million 0.19% of total assets, at December 31, 2023, compared to , or$26.8 million 0.17% of total assets at September 30, 2023, and , or$23.4 million 0.15% of total assets, at December 31, 2022. -
The allowance for credit losses - loans was
, or$149.6 million 1.38% of total loans receivable, as of December 31, 2023, compared to , or$147.0 million 1.38% of total loans receivable as of September 30, 2023 and , or$141.5 million 1.39% of total loans receivable as of December 31, 2022. -
Total deposits decreased to
at December 31, 2023, compared to$13.03 billion at September 30, 2023 and$13.17 billion at December 31, 2022. Core deposits represented$13.62 billion 89% of total deposits at December 31, 2023. -
Banner Bank’s estimated uninsured deposits were approximately
31% of total deposits at both December 31, 2023 and September 30, 2023. -
Banner Bank’s estimated uninsured deposits, excluding collateralized public deposits and affiliate deposits, were approximately
28% of total deposits at both December 31, 2023 and September 30, 2023. -
Available borrowing capacity was
at December 31, 2023, compared to$4.65 billion at September 30, 2023.$4.62 billion -
On-balance sheet liquidity was
at December 31, 2023, compared to$2.93 billion at September 30, 2023.$2.86 billion -
Dividends paid to shareholders were
per share in the quarter ended December 31, 2023.$0.48 -
Common shareholders’ equity per share increased
9% to at December 31, 2023, compared to$48.12 at the preceding quarter end, and increased$44.27 13% from at December 31, 2022.$42.59 -
Tangible common shareholders’ equity per share* increased
12% to at December 31, 2023, compared to$37.09 at the preceding quarter end, and increased$33.22 18% from at December 31, 2022.$31.41
*Non-GAAP (Generally Accepted Accounting Principles) measure; See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.
Income Statement Review
Net interest income was
Average yields on interest-earning assets increased 12 basis points to
A
Total non-interest income was
Mortgage banking operations revenue, including gains on one- to four-family and multifamily loan sales and loan servicing fees, was
Fourth quarter 2023 non-interest income included a
Total revenue decreased
Total non-interest expense was
*Non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a discussion and reconciliation of non-GAAP financial measures.
Federal and state income tax expense totaled
Balance Sheet Review
Total assets increased to
Total loans receivable increased to
Loans held for sale were
Total deposits decreased to
Banner Bank’s estimated uninsured deposits were
Banner had
Subordinated notes, net of issuance costs, were
At December 31, 2023, total common shareholders’ equity was
*Non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.
Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized.” At December 31, 2023, Banner’s estimated common equity Tier 1 capital ratio was
Credit Quality
The allowance for credit losses - loans was
Substandard loans were
Total non-performing assets were
Conference Call
Banner will host a conference call on Friday January 19, 2024, at 8:00 a.m. PDT, to discuss its fourth quarter results. Interested investors may listen to the call live at www.bannerbank.com. Investment professionals are invited to dial (833) 470-1428 using access code 238589 to participate in the call. A replay will be available for one week at (866) 813-9403 using access code 197139 or at www.bannerbank.com.
About the Company
Banner Corporation is a
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.
Factors that could cause Banner’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: (1) potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth, or increased political instability due to acts of war; (2) changes in the interest rate environment, including the recent increases in the Board of Governors of the Federal Reserve System (the “Federal Reserve”) benchmark rate and duration at which such increased interest rate levels are maintained, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; (3) the impact of continuing high inflation and the current and future monetary policies of the Federal Reserve in response thereto; (4) the effects of any federal government shutdown; (5) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (6) 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; (7) 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; (8) competitive pressures among depository institutions; (9) the effect of inflation on interest rate movements and their impact on client behavior and net interest margin; (10) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (11) fluctuations in real estate values; (12) the ability to adapt successfully to technological changes to meet clients’ needs and developments in the market place; (13) the ability to access cost-effective funding; (14) disruptions, security breaches or other adverse events, failures or interruptions in, or attacks on, information technology systems or on the third-party vendors who perform critical processing functions; (15) changes in financial markets; (16) changes in economic conditions in general and in
RESULTS OF OPERATIONS |
|
Quarters Ended |
|
Year Ended |
||||||||||||||||
(in thousands except shares and per share data) |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable |
|
$ |
154,532 |
|
|
$ |
149,254 |
|
|
$ |
129,450 |
|
|
$ |
577,891 |
|
|
$ |
450,916 |
|
Mortgage-backed securities |
|
|
17,398 |
|
|
|
17,691 |
|
|
|
19,099 |
|
|
|
72,352 |
|
|
|
67,585 |
|
Securities and cash equivalents |
|
|
11,808 |
|
|
|
12,119 |
|
|
|
17,009 |
|
|
|
51,329 |
|
|
|
54,068 |
|
Total interest income |
|
|
183,738 |
|
|
|
179,064 |
|
|
|
165,558 |
|
|
|
701,572 |
|
|
|
572,569 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
39,342 |
|
|
|
31,001 |
|
|
|
3,623 |
|
|
|
100,126 |
|
|
|
10,124 |
|
Federal Home Loan Bank (FHLB) advances |
|
|
1,870 |
|
|
|
2,233 |
|
|
|
198 |
|
|
|
10,524 |
|
|
|
489 |
|
Other borrowings |
|
|
1,125 |
|
|
|
1,099 |
|
|
|
132 |
|
|
|
3,376 |
|
|
|
377 |
|
Subordinated debt |
|
|
2,992 |
|
|
|
2,965 |
|
|
|
2,534 |
|
|
|
11,541 |
|
|
|
8,400 |
|
Total interest expense |
|
|
45,329 |
|
|
|
37,298 |
|
|
|
6,487 |
|
|
|
125,567 |
|
|
|
19,390 |
|
Net interest income |
|
|
138,409 |
|
|
|
141,766 |
|
|
|
159,071 |
|
|
|
576,005 |
|
|
|
553,179 |
|
PROVISION FOR CREDIT LOSSES |
|
|
2,522 |
|
|
|
2,027 |
|
|
|
6,704 |
|
|
|
10,789 |
|
|
|
10,364 |
|
Net interest income after provision for credit losses |
|
|
135,887 |
|
|
|
139,739 |
|
|
|
152,367 |
|
|
|
565,216 |
|
|
|
542,815 |
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit fees and other service charges |
|
|
9,560 |
|
|
|
10,916 |
|
|
|
10,821 |
|
|
|
41,638 |
|
|
|
44,459 |
|
Mortgage banking operations |
|
|
5,391 |
|
|
|
2,049 |
|
|
|
2,311 |
|
|
|
11,817 |
|
|
|
10,834 |
|
Bank-owned life insurance |
|
|
2,609 |
|
|
|
2,062 |
|
|
|
2,120 |
|
|
|
9,245 |
|
|
|
7,794 |
|
Miscellaneous |
|
|
1,159 |
|
|
|
942 |
|
|
|
1,382 |
|
|
|
5,169 |
|
|
|
6,805 |
|
|
|
|
18,719 |
|
|
|
15,969 |
|
|
|
16,634 |
|
|
|
67,869 |
|
|
|
69,892 |
|
Net loss on sale of securities |
|
|
(4,806 |
) |
|
|
(2,657 |
) |
|
|
(3,721 |
) |
|
|
(19,242 |
) |
|
|
(3,248 |
) |
Net change in valuation of financial instruments carried at fair value |
|
|
139 |
|
|
|
(654 |
) |
|
|
157 |
|
|
|
(4,218 |
) |
|
|
807 |
|
Gain on sale of branches, including related deposits |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,804 |
|
Total non-interest income |
|
|
14,052 |
|
|
|
12,658 |
|
|
|
13,070 |
|
|
|
44,409 |
|
|
|
75,255 |
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Salary and employee benefits |
|
|
60,111 |
|
|
|
61,091 |
|
|
|
60,309 |
|
|
|
244,563 |
|
|
|
242,266 |
|
Less capitalized loan origination costs |
|
|
(3,871 |
) |
|
|
(4,498 |
) |
|
|
(4,877 |
) |
|
|
(16,257 |
) |
|
|
(24,313 |
) |
Occupancy and equipment |
|
|
12,200 |
|
|
|
11,722 |
|
|
|
13,506 |
|
|
|
47,886 |
|
|
|
52,018 |
|
Information and computer data services |
|
|
7,098 |
|
|
|
7,118 |
|
|
|
6,535 |
|
|
|
28,445 |
|
|
|
25,986 |
|
Payment and card processing services |
|
|
6,088 |
|
|
|
5,172 |
|
|
|
5,109 |
|
|
|
20,547 |
|
|
|
21,195 |
|
Professional and legal expenses |
|
|
2,267 |
|
|
|
3,042 |
|
|
|
6,328 |
|
|
|
9,830 |
|
|
|
14,005 |
|
Advertising and marketing |
|
|
1,686 |
|
|
|
1,362 |
|
|
|
1,350 |
|
|
|
4,794 |
|
|
|
3,959 |
|
Deposit insurance |
|
|
2,926 |
|
|
|
2,874 |
|
|
|
1,739 |
|
|
|
10,529 |
|
|
|
6,649 |
|
State and municipal business and use taxes |
|
|
1,372 |
|
|
|
1,359 |
|
|
|
1,304 |
|
|
|
5,260 |
|
|
|
4,693 |
|
Real estate operations, net |
|
|
47 |
|
|
|
(383 |
) |
|
|
28 |
|
|
|
(538 |
) |
|
|
(104 |
) |
Amortization of core deposit intangibles |
|
|
858 |
|
|
|
857 |
|
|
|
1,215 |
|
|
|
3,756 |
|
|
|
5,279 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
793 |
|
Miscellaneous |
|
|
5,839 |
|
|
|
6,175 |
|
|
|
6,467 |
|
|
|
23,723 |
|
|
|
24,869 |
|
Total non-interest expense |
|
|
96,621 |
|
|
|
95,891 |
|
|
|
99,013 |
|
|
|
382,538 |
|
|
|
377,295 |
|
Income before provision for income taxes |
|
|
53,318 |
|
|
|
56,506 |
|
|
|
66,424 |
|
|
|
227,087 |
|
|
|
240,775 |
|
PROVISION FOR INCOME TAXES |
|
|
10,694 |
|
|
|
10,652 |
|
|
|
12,044 |
|
|
|
43,463 |
|
|
|
45,397 |
|
NET INCOME |
|
$ |
42,624 |
|
|
$ |
45,854 |
|
|
$ |
54,380 |
|
|
$ |
183,624 |
|
|
$ |
195,378 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
1.24 |
|
|
$ |
1.33 |
|
|
$ |
1.59 |
|
|
$ |
5.35 |
|
|
$ |
5.70 |
|
Diluted |
|
$ |
1.24 |
|
|
$ |
1.33 |
|
|
$ |
1.58 |
|
|
$ |
5.33 |
|
|
$ |
5.67 |
|
Cumulative dividends declared per common share |
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
0.44 |
|
|
$ |
1.92 |
|
|
$ |
1.76 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
34,381,780 |
|
|
|
34,379,865 |
|
|
|
34,226,162 |
|
|
|
34,344,142 |
|
|
|
34,264,322 |
|
Diluted |
|
|
34,472,155 |
|
|
|
34,429,726 |
|
|
|
34,437,151 |
|
|
|
34,450,412 |
|
|
|
34,459,922 |
|
Increase (decrease) in common shares outstanding |
|
|
2,420 |
|
|
|
1,322 |
|
|
|
2,259 |
|
|
|
154,351 |
|
|
|
(58,614 |
) |
FINANCIAL CONDITION |
|
|
|
|
|
|
|
Percentage Change |
||||||||||
(in thousands except shares and per share data) |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
209,634 |
|
|
$ |
207,171 |
|
|
$ |
198,154 |
|
|
1.2 |
% |
|
5.8 |
% |
Interest-bearing deposits |
|
|
44,830 |
|
|
|
44,535 |
|
|
|
44,908 |
|
|
0.7 |
% |
|
(0.2 |
)% |
Total cash and cash equivalents |
|
|
254,464 |
|
|
|
251,706 |
|
|
|
243,062 |
|
|
1.1 |
% |
|
4.7 |
% |
Securities - trading |
|
|
— |
|
|
|
25,268 |
|
|
|
28,694 |
|
|
(100.0 |
)% |
|
(100.0 |
)% |
Securities - available for sale, amortized cost |
|
|
2,373,783 |
|
|
|
2,287,993 |
|
|
|
2,789,031 |
|
|
3.7 |
% |
|
(14.9 |
)% |
Securities - held to maturity, fair value |
|
|
1,059,055 |
|
|
|
1,082,156 |
|
|
|
1,117,588 |
|
|
(2.1 |
)% |
|
(5.2 |
)% |
Total securities |
|
|
3,432,838 |
|
|
|
3,395,417 |
|
|
|
3,935,313 |
|
|
1.1 |
% |
|
(12.8 |
)% |
FHLB stock |
|
|
24,028 |
|
|
|
15,600 |
|
|
|
12,000 |
|
|
54.0 |
% |
|
100.2 |
% |
Securities purchased under agreements to resell |
|
|
— |
|
|
|
— |
|
|
|
300,000 |
|
|
nm |
|
(100.0 |
)% |
|
Loans held for sale |
|
|
11,170 |
|
|
|
54,158 |
|
|
|
56,857 |
|
|
(79.4 |
)% |
|
(80.4 |
)% |
Loans receivable |
|
|
10,810,455 |
|
|
|
10,611,417 |
|
|
|
10,146,724 |
|
|
1.9 |
% |
|
6.5 |
% |
Allowance for credit losses – loans |
|
|
(149,643 |
) |
|
|
(146,960 |
) |
|
|
(141,465 |
) |
|
1.8 |
% |
|
5.8 |
% |
Net loans receivable |
|
|
10,660,812 |
|
|
|
10,464,457 |
|
|
|
10,005,259 |
|
|
1.9 |
% |
|
6.6 |
% |
Accrued interest receivable |
|
|
63,100 |
|
|
|
61,040 |
|
|
|
57,284 |
|
|
3.4 |
% |
|
10.2 |
% |
Property and equipment, net |
|
|
132,231 |
|
|
|
136,504 |
|
|
|
138,754 |
|
|
(3.1 |
)% |
|
(4.7 |
)% |
Goodwill |
|
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
— |
% |
|
— |
% |
Other intangibles, net |
|
|
5,684 |
|
|
|
6,542 |
|
|
|
9,440 |
|
|
(13.1 |
)% |
|
(39.8 |
)% |
Bank-owned life insurance |
|
|
304,366 |
|
|
|
303,347 |
|
|
|
297,565 |
|
|
0.3 |
% |
|
2.3 |
% |
Operating lease right-of-use assets |
|
|
43,731 |
|
|
|
43,447 |
|
|
|
49,283 |
|
|
0.7 |
% |
|
(11.3 |
)% |
Other assets |
|
|
364,846 |
|
|
|
402,541 |
|
|
|
355,493 |
|
|
(9.4 |
)% |
|
2.6 |
% |
Total assets |
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
|
$ |
15,833,431 |
|
|
1.0 |
% |
|
(1.0 |
)% |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest-bearing |
|
$ |
4,792,369 |
|
|
$ |
5,197,854 |
|
|
$ |
6,176,998 |
|
|
(7.8 |
)% |
|
(22.4 |
)% |
Interest-bearing transaction and savings accounts |
|
|
6,759,661 |
|
|
|
6,518,385 |
|
|
|
6,719,531 |
|
|
3.7 |
% |
|
0.6 |
% |
Interest-bearing certificates |
|
|
1,477,467 |
|
|
|
1,458,313 |
|
|
|
723,530 |
|
|
1.3 |
% |
|
104.2 |
% |
Total deposits |
|
|
13,029,497 |
|
|
|
13,174,552 |
|
|
|
13,620,059 |
|
|
(1.1 |
)% |
|
(4.3 |
)% |
Advances from FHLB |
|
|
323,000 |
|
|
|
140,000 |
|
|
|
50,000 |
|
|
130.7 |
% |
|
546.0 |
% |
Other borrowings |
|
|
182,877 |
|
|
|
188,440 |
|
|
|
232,799 |
|
|
(3.0 |
)% |
|
(21.4 |
)% |
Subordinated notes, net |
|
|
92,851 |
|
|
|
92,748 |
|
|
|
98,947 |
|
|
0.1 |
% |
|
(6.2 |
)% |
Junior subordinated debentures at fair value |
|
|
66,413 |
|
|
|
66,284 |
|
|
|
74,857 |
|
|
0.2 |
% |
|
(11.3 |
)% |
Operating lease liabilities |
|
|
48,659 |
|
|
|
48,642 |
|
|
|
55,205 |
|
|
— |
% |
|
(11.9 |
)% |
Accrued expenses and other liabilities |
|
|
228,428 |
|
|
|
231,478 |
|
|
|
200,839 |
|
|
(1.3 |
)% |
|
13.7 |
% |
Deferred compensation |
|
|
45,975 |
|
|
|
45,129 |
|
|
|
44,293 |
|
|
1.9 |
% |
|
3.8 |
% |
Total liabilities |
|
|
14,017,700 |
|
|
|
13,987,273 |
|
|
|
14,376,999 |
|
|
0.2 |
% |
|
(2.5 |
)% |
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock |
|
|
1,299,651 |
|
|
|
1,297,307 |
|
|
|
1,293,959 |
|
|
0.2 |
% |
|
0.4 |
% |
Retained earnings |
|
|
642,175 |
|
|
|
616,215 |
|
|
|
525,242 |
|
|
4.2 |
% |
|
22.3 |
% |
Accumulated other comprehensive loss |
|
|
(289,135 |
) |
|
|
(392,915 |
) |
|
|
(362,769 |
) |
|
(26.4 |
)% |
|
(20.3 |
)% |
Total shareholders’ equity |
|
|
1,652,691 |
|
|
|
1,520,607 |
|
|
|
1,456,432 |
|
|
8.7 |
% |
|
13.5 |
% |
Total liabilities and shareholders’ equity |
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
|
$ |
15,833,431 |
|
|
1.0 |
% |
|
(1.0 |
)% |
Common Shares Issued: |
|
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding at end of period |
|
|
34,348,369 |
|
|
|
34,345,949 |
|
|
|
34,194,018 |
|
|
|
|
|
||
Common shareholders’ equity per share (1) |
|
$ |
48.12 |
|
|
$ |
44.27 |
|
|
$ |
42.59 |
|
|
|
|
|
||
Common shareholders’ tangible equity per share (1) (2) |
|
$ |
37.09 |
|
|
$ |
33.22 |
|
|
$ |
31.41 |
|
|
|
|
|
||
Common shareholders’ tangible equity to tangible assets (2) |
|
|
8.33 |
% |
|
|
7.54 |
% |
|
|
6.95 |
% |
|
|
|
|
||
Consolidated Tier 1 leverage capital ratio |
|
|
10.56 |
% |
|
|
10.40 |
% |
|
|
9.45 |
% |
|
|
|
|
(1) | Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding. |
(2) |
Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
Percentage Change |
||||||||||
LOANS |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate (CRE): |
|
|
|
|
|
|
|
|
|
|
||||||||
Owner-occupied |
|
$ |
915,897 |
|
|
$ |
911,540 |
|
|
$ |
845,320 |
|
|
0.5 |
% |
|
8.3 |
% |
Investment properties |
|
|
1,541,344 |
|
|
|
1,530,087 |
|
|
|
1,589,975 |
|
|
0.7 |
% |
|
(3.1 |
)% |
Small balance CRE |
|
|
1,178,500 |
|
|
|
1,169,828 |
|
|
|
1,200,251 |
|
|
0.7 |
% |
|
(1.8 |
)% |
Multifamily real estate |
|
|
811,232 |
|
|
|
766,571 |
|
|
|
645,071 |
|
|
5.8 |
% |
|
25.8 |
% |
Construction, land and land development: |
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial construction |
|
|
170,011 |
|
|
|
168,061 |
|
|
|
184,876 |
|
|
1.2 |
% |
|
(8.0 |
)% |
Multifamily construction |
|
|
503,993 |
|
|
|
453,129 |
|
|
|
325,816 |
|
|
11.2 |
% |
|
54.7 |
% |
One- to four-family construction |
|
|
526,432 |
|
|
|
536,349 |
|
|
|
647,329 |
|
|
(1.8 |
)% |
|
(18.7 |
)% |
Land and land development |
|
|
336,639 |
|
|
|
346,362 |
|
|
|
328,475 |
|
|
(2.8 |
)% |
|
2.5 |
% |
Commercial business: |
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial business |
|
|
1,255,734 |
|
|
|
1,263,747 |
|
|
|
1,283,407 |
|
|
(0.6 |
)% |
|
(2.2 |
)% |
Small business scored |
|
|
1,022,154 |
|
|
|
1,000,714 |
|
|
|
947,092 |
|
|
2.1 |
% |
|
7.9 |
% |
Agricultural business, including secured by farmland: |
|
|
|
|
|
|
|
|
|
|
||||||||
Agricultural business, including secured by farmland |
|
|
331,089 |
|
|
|
334,626 |
|
|
|
295,077 |
|
|
(1.1 |
)% |
|
12.2 |
% |
One- to four-family residential |
|
|
1,518,046 |
|
|
|
1,438,694 |
|
|
|
1,173,112 |
|
|
5.5 |
% |
|
29.4 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer—home equity revolving lines of credit |
|
|
588,703 |
|
|
|
579,836 |
|
|
|
566,291 |
|
|
1.5 |
% |
|
4.0 |
% |
Consumer—other |
|
|
110,681 |
|
|
|
111,873 |
|
|
|
114,632 |
|
|
(1.1 |
)% |
|
(3.4 |
)% |
Total loans receivable |
|
$ |
10,810,455 |
|
|
$ |
10,611,417 |
|
|
$ |
10,146,724 |
|
|
1.9 |
% |
|
6.5 |
% |
Loans 30 - 89 days past due and on accrual |
|
$ |
19,744 |
|
|
$ |
6,108 |
|
|
$ |
17,186 |
|
|
|
|
|
||
Total delinquent loans (including loans on non-accrual), net |
|
$ |
43,164 |
|
|
$ |
28,312 |
|
|
$ |
32,371 |
|
|
|
|
|
||
Total delinquent loans / Total loans receivable |
|
|
0.40 |
% |
|
|
0.27 |
% |
|
|
0.32 |
% |
|
|
|
|
LOANS BY GEOGRAPHIC LOCATION |
|
|
|
|
|
|
|
|
|
Percentage Change |
||||||||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
5,095,602 |
|
47.2 |
% |
|
$ |
5,046,028 |
|
$ |
4,777,546 |
|
1.0 |
% |
|
6.7 |
% |
|
|
|
2,670,923 |
|
24.7 |
% |
|
|
2,570,175 |
|
|
2,484,980 |
|
3.9 |
% |
|
7.5 |
% |
|
|
|
1,974,001 |
|
18.3 |
% |
|
|
1,929,531 |
|
|
1,826,743 |
|
2.3 |
% |
|
8.1 |
% |
|
|
|
610,064 |
|
5.6 |
% |
|
|
600,648 |
|
|
565,586 |
|
1.6 |
% |
|
7.9 |
% |
|
|
|
68,931 |
|
0.6 |
% |
|
|
57,711 |
|
|
75,967 |
|
19.4 |
% |
|
(9.3 |
)% |
Other |
|
|
390,934 |
|
3.6 |
% |
|
|
407,324 |
|
|
415,902 |
|
(4.0 |
)% |
|
(6.0 |
)% |
Total loans receivable |
|
$ |
10,810,455 |
|
100.0 |
% |
|
$ |
10,611,417 |
|
$ |
10,146,724 |
|
1.9 |
% |
|
6.5 |
% |
ADDITIONAL FINANCIAL INFORMATION (dollars in thousands) |
||||||||||||||
LOAN ORIGINATIONS |
Quarters Ended |
|
Year Ended |
|||||||||||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
|||||
Commercial real estate |
$ |
76,277 |
|
$ |
62,337 |
|
$ |
117,787 |
|
$ |
309,022 |
|
$ |
418,635 |
Multifamily real estate |
|
5,360 |
|
|
12,725 |
|
|
8,881 |
|
|
57,046 |
|
|
37,612 |
Construction and land |
|
382,905 |
|
|
421,656 |
|
|
301,804 |
|
|
1,541,383 |
|
|
1,935,476 |
Commercial business |
|
166,984 |
|
|
157,833 |
|
|
298,396 |
|
|
585,047 |
|
|
1,034,950 |
Agricultural business |
|
15,058 |
|
|
17,466 |
|
|
24,314 |
|
|
84,072 |
|
|
89,655 |
One-to four-family residential |
|
37,446 |
|
|
43,622 |
|
|
83,491 |
|
|
167,951 |
|
|
358,976 |
Consumer |
|
57,427 |
|
|
70,043 |
|
|
102,502 |
|
|
300,913 |
|
|
545,254 |
Total loan originations (excluding loans held for sale) |
$ |
741,457 |
|
$ |
785,682 |
|
$ |
937,175 |
|
$ |
3,045,434 |
|
$ |
4,420,558 |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Quarters Ended |
|
Year Ended |
||||||||||||||||
CHANGE IN THE |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, beginning of period |
|
$ |
146,960 |
|
|
$ |
144,680 |
|
|
$ |
135,918 |
|
|
$ |
141,465 |
|
|
$ |
132,099 |
|
Provision for credit losses – loans |
|
|
3,821 |
|
|
|
2,943 |
|
|
|
6,043 |
|
|
|
11,097 |
|
|
|
8,158 |
|
Recoveries of loans previously charged off: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
|
129 |
|
|
|
170 |
|
|
|
88 |
|
|
|
557 |
|
|
|
392 |
|
Construction and land |
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
29 |
|
|
|
384 |
|
One- to four-family real estate |
|
|
18 |
|
|
|
59 |
|
|
|
18 |
|
|
|
230 |
|
|
|
181 |
|
Commercial business |
|
|
237 |
|
|
|
403 |
|
|
|
616 |
|
|
|
1,283 |
|
|
|
1,923 |
|
Agricultural business, including secured by farmland |
|
|
16 |
|
|
|
19 |
|
|
|
91 |
|
|
|
146 |
|
|
|
475 |
|
Consumer |
|
|
131 |
|
|
|
126 |
|
|
|
153 |
|
|
|
543 |
|
|
|
566 |
|
|
|
|
531 |
|
|
|
806 |
|
|
|
966 |
|
|
|
2,788 |
|
|
|
3,921 |
|
Loans charged off: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Construction and land |
|
|
(933 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,089 |
) |
|
|
(30 |
) |
One- to four-family real estate |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
(42 |
) |
|
|
— |
|
Commercial business |
|
|
(310 |
) |
|
|
(616 |
) |
|
|
(1,231 |
) |
|
|
(2,650 |
) |
|
|
(1,699 |
) |
Agricultural business, including secured by farmland |
|
|
— |
|
|
|
(564 |
) |
|
|
— |
|
|
|
(564 |
) |
|
|
(42 |
) |
Consumer |
|
|
(418 |
) |
|
|
(289 |
) |
|
|
(231 |
) |
|
|
(1,362 |
) |
|
|
(940 |
) |
|
|
|
(1,669 |
) |
|
|
(1,469 |
) |
|
|
(1,462 |
) |
|
|
(5,707 |
) |
|
|
(2,713 |
) |
Net (charge-offs) recoveries |
|
|
(1,138 |
) |
|
|
(663 |
) |
|
|
(496 |
) |
|
|
(2,919 |
) |
|
|
1,208 |
|
Balance, end of period |
|
$ |
149,643 |
|
|
$ |
146,960 |
|
|
$ |
141,465 |
|
|
$ |
149,643 |
|
|
$ |
141,465 |
|
Net (charge-offs) recoveries / Average loans receivable |
|
|
(0.011 |
)% |
|
|
(0.006 |
)% |
|
|
(0.005 |
)% |
|
|
(0.028 |
)% |
|
|
0.013 |
% |
|
|
|
|
|
|
|
||||||
ALLOCATION OF |
|
|
|
|
|
|
||||||
ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
||||||
Commercial real estate |
|
$ |
44,384 |
|
|
$ |
44,016 |
|
|
$ |
44,086 |
|
Multifamily real estate |
|
|
9,326 |
|
|
|
8,804 |
|
|
|
7,734 |
|
Construction and land |
|
|
28,095 |
|
|
|
29,389 |
|
|
|
29,171 |
|
One- to four-family real estate |
|
|
19,271 |
|
|
|
17,925 |
|
|
|
14,729 |
|
Commercial business |
|
|
35,464 |
|
|
|
34,065 |
|
|
|
33,299 |
|
Agricultural business, including secured by farmland |
|
|
3,865 |
|
|
|
3,718 |
|
|
|
3,475 |
|
Consumer |
|
|
9,238 |
|
|
|
9,043 |
|
|
|
8,971 |
|
Total allowance for credit losses – loans |
|
$ |
149,643 |
|
|
$ |
146,960 |
|
|
$ |
141,465 |
|
Allowance for credit losses - loans / Total loans receivable |
|
|
1.38 |
% |
|
|
1.38 |
% |
|
|
1.39 |
% |
Allowance for credit losses - loans / Non-performing loans |
|
|
506 |
% |
|
|
560 |
% |
|
|
615 |
% |
|
|
Quarters Ended |
|
Year Ended |
|||||||||||||
CHANGE IN THE |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
|||||||
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS |
|
|
|
|
|
|
|
|
|
|
|||||||
Balance, beginning of period |
|
$ |
15,010 |
|
|
$ |
14,664 |
|
$ |
14,041 |
|
$ |
14,721 |
|
|
$ |
12,432 |
(Recapture) provision for credit losses - unfunded loan commitments |
|
|
(526 |
) |
|
|
346 |
|
|
680 |
|
|
(237 |
) |
|
|
2,289 |
Balance, end of period |
|
$ |
14,484 |
|
|
$ |
15,010 |
|
$ |
14,721 |
|
$ |
14,484 |
|
|
$ |
14,721 |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
||||||
(dollars in thousands) |
|
|
|
|
|
||||||
NON-PERFORMING ASSETS |
|
|
|
|
|
||||||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
||||||
Loans on non-accrual status: |
|
|
|
|
|
||||||
Secured by real estate: |
|
|
|
|
|
||||||
Commercial |
$ |
2,677 |
|
|
$ |
1,365 |
|
|
$ |
3,683 |
|
Construction and land |
|
3,105 |
|
|
|
5,538 |
|
|
|
181 |
|
One- to four-family |
|
5,702 |
|
|
|
5,480 |
|
|
|
5,236 |
|
Commercial business |
|
9,002 |
|
|
|
5,289 |
|
|
|
9,886 |
|
Agricultural business, including secured by farmland |
|
3,167 |
|
|
|
3,170 |
|
|
|
594 |
|
Consumer |
|
3,204 |
|
|
|
3,378 |
|
|
|
2,126 |
|
|
|
26,857 |
|
|
|
24,220 |
|
|
|
21,706 |
|
Loans more than 90 days delinquent, still on accrual: |
|
|
|
|
|
||||||
Secured by real estate: |
|
|
|
|
|
||||||
Construction and land |
|
1,138 |
|
|
|
— |
|
|
|
— |
|
One- to four-family |
|
1,205 |
|
|
|
1,799 |
|
|
|
1,023 |
|
Commercial business |
|
1 |
|
|
|
— |
|
|
|
— |
|
Consumer |
|
401 |
|
|
|
245 |
|
|
|
264 |
|
|
|
2,745 |
|
|
|
2,044 |
|
|
|
1,287 |
|
Total non-performing loans |
|
29,602 |
|
|
|
26,264 |
|
|
|
22,993 |
|
REO |
|
526 |
|
|
|
546 |
|
|
|
340 |
|
Other repossessed assets |
|
— |
|
|
|
— |
|
|
|
17 |
|
Total non-performing assets |
$ |
30,128 |
|
|
$ |
26,810 |
|
|
$ |
23,350 |
|
Total non-performing assets to total assets |
|
0.19 |
% |
|
|
0.17 |
% |
|
|
0.15 |
% |
LOANS BY CREDIT RISK RATING |
|
|
|
|
|
|||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|||
Pass |
$ |
10,671,281 |
|
$ |
10,467,498 |
|
$ |
10,000,493 |
Special Mention |
|
13,732 |
|
|
19,394 |
|
|
9,081 |
Substandard |
|
125,442 |
|
|
124,525 |
|
|
137,150 |
Total |
$ |
10,810,455 |
|
$ |
10,611,417 |
|
$ |
10,146,724 |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
DEPOSIT COMPOSITION |
|
|
|
|
|
|
|
Percentage Change |
|||||||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Prior Qtr |
|
Prior Yr Qtr |
|||||
Non-interest-bearing |
|
$ |
4,792,369 |
|
$ |
5,197,854 |
|
$ |
6,176,998 |
|
(7.8 |
)% |
|
(22.4 |
)% |
Interest-bearing checking |
|
|
2,098,526 |
|
|
2,006,866 |
|
|
1,811,153 |
|
4.6 |
% |
|
15.9 |
% |
Regular savings accounts |
|
|
2,980,530 |
|
|
2,751,453 |
|
|
2,710,090 |
|
8.3 |
% |
|
10.0 |
% |
Money market accounts |
|
|
1,680,605 |
|
|
1,760,066 |
|
|
2,198,288 |
|
(4.5 |
)% |
|
(23.5 |
)% |
Total interest-bearing transaction and savings accounts |
|
|
6,759,661 |
|
|
6,518,385 |
|
|
6,719,531 |
|
3.7 |
% |
|
0.6 |
% |
Total core deposits |
|
|
11,552,030 |
|
|
11,716,239 |
|
|
12,896,529 |
|
(1.4 |
)% |
|
(10.4 |
)% |
Interest-bearing certificates |
|
|
1,477,467 |
|
|
1,458,313 |
|
|
723,530 |
|
1.3 |
% |
|
104.2 |
% |
Total deposits |
|
$ |
13,029,497 |
|
$ |
13,174,552 |
|
$ |
13,620,059 |
|
(1.1 |
)% |
|
(4.3 |
)% |
GEOGRAPHIC CONCENTRATION OF DEPOSITS |
|
|
|
|
|
|
||||||||||||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Percentage Change |
||||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||
|
|
$ |
7,247,392 |
|
55.6 |
% |
|
$ |
7,241,341 |
|
$ |
7,563,056 |
|
0.1 |
% |
|
(4.2 |
)% |
|
|
|
2,852,677 |
|
21.9 |
% |
|
|
2,918,446 |
|
|
2,998,572 |
|
(2.3 |
)% |
|
(4.9 |
)% |
|
|
|
2,269,557 |
|
17.4 |
% |
|
|
2,342,345 |
|
|
2,331,524 |
|
(3.1 |
)% |
|
(2.7 |
)% |
|
|
|
659,871 |
|
5.1 |
% |
|
|
672,420 |
|
|
726,907 |
|
(1.9 |
)% |
|
(9.2 |
)% |
Total deposits |
|
$ |
13,029,497 |
|
100.0 |
% |
|
$ |
13,174,552 |
|
$ |
13,620,059 |
|
(1.1 |
)% |
|
(4.3 |
)% |
INCLUDED IN TOTAL DEPOSITS |
|
|
|
|
|
|
|||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|||
Public non-interest-bearing accounts |
|
$ |
146,916 |
|
$ |
169,058 |
|
$ |
212,533 |
Public interest-bearing transaction & savings accounts |
|
|
209,699 |
|
|
188,831 |
|
|
180,326 |
Public interest-bearing certificates |
|
|
52,048 |
|
|
46,349 |
|
|
26,810 |
Total public deposits |
|
$ |
408,663 |
|
$ |
404,238 |
|
$ |
419,669 |
Collateralized public deposits |
|
$ |
305,306 |
|
$ |
300,189 |
|
$ |
304,244 |
Total brokered deposits |
|
$ |
108,058 |
|
$ |
162,856 |
|
$ |
— |
|
|
|
|
|
|
|
|||
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT |
|
|
|
|
|
|
|||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|||
Number of deposit accounts |
|
|
463,750 |
|
|
466,159 |
|
|
471,140 |
Average account balance per account |
|
$ |
29 |
|
$ |
28 |
|
$ |
29 |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
ESTIMATED REGULATORY CAPITAL RATIOS AS OF DECEMBER 31, 2023 |
|
Actual |
|
Minimum to be categorized as "Adequately Capitalized" |
|
Minimum to be categorized as "Well Capitalized" |
||||||||||||
|
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
|
Amount |
|
Ratio |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Banner Corporation-consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets |
|
$ |
1,904,533 |
|
14.58 |
% |
|
$ |
1,045,181 |
|
8.00 |
% |
|
$ |
1,306,476 |
|
10.00 |
% |
Tier 1 capital to risk-weighted assets |
|
|
1,650,872 |
|
12.64 |
% |
|
|
783,886 |
|
6.00 |
% |
|
|
783,886 |
|
6.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,650,872 |
|
10.56 |
% |
|
|
625,387 |
|
4.00 |
% |
|
|
n/a |
|
n/a |
|
Common equity tier 1 capital to risk-weighted assets |
|
|
1,564,372 |
|
11.97 |
% |
|
|
587,914 |
|
4.50 |
% |
|
|
n/a |
|
n/a |
|
Banner Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total capital to risk-weighted assets |
|
|
1,789,371 |
|
13.69 |
% |
|
|
1,045,273 |
|
8.00 |
% |
|
|
1,306,592 |
|
10.00 |
% |
Tier 1 capital to risk-weighted assets |
|
|
1,635,710 |
|
12.52 |
% |
|
|
783,955 |
|
6.00 |
% |
|
|
1,045,273 |
|
8.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,635,710 |
|
10.46 |
% |
|
|
625,298 |
|
4.00 |
% |
|
|
781,622 |
|
5.00 |
% |
Common equity tier 1 capital to risk-weighted assets |
|
|
1,635,710 |
|
12.52 |
% |
|
|
587,966 |
|
4.50 |
% |
|
|
849,285 |
|
6.50 |
% |
These regulatory capital ratios are estimates, pending completion and filing of Banner’s regulatory reports. |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(rates / ratios annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ANALYSIS OF NET INTEREST SPREAD |
Quarters Ended |
||||||||||||||||||||||||||||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
||||||||||||||||||||||||
|
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 |
$ |
31,148 |
|
$ |
447 |
|
|
5.69 |
% |
|
$ |
56,697 |
|
$ |
765 |
|
|
5.35 |
% |
|
$ |
45,654 |
|
$ |
527 |
|
|
4.58 |
% |
Mortgage loans |
|
8,770,029 |
|
|
123,382 |
|
|
5.58 |
% |
|
|
8,596,705 |
|
|
118,285 |
|
|
5.46 |
% |
|
|
8,175,281 |
|
|
103,478 |
|
|
5.02 |
% |
Commercial/agricultural loans |
|
1,818,198 |
|
|
30,420 |
|
|
6.64 |
% |
|
|
1,822,609 |
|
|
29,866 |
|
|
6.50 |
% |
|
|
1,742,517 |
|
|
24,727 |
|
|
5.63 |
% |
SBA PPP loans |
|
3,871 |
|
|
27 |
|
|
2.77 |
% |
|
|
4,298 |
|
|
28 |
|
|
2.58 |
% |
|
|
9,347 |
|
|
224 |
|
|
9.51 |
% |
Consumer and other loans |
|
138,049 |
|
|
2,237 |
|
|
6.43 |
% |
|
|
138,723 |
|
|
2,226 |
|
|
6.37 |
% |
|
|
140,801 |
|
|
2,125 |
|
|
5.99 |
% |
Total loans(1) |
|
10,761,295 |
|
|
156,513 |
|
|
5.77 |
% |
|
|
10,619,032 |
|
|
151,170 |
|
|
5.65 |
% |
|
|
10,113,600 |
|
|
131,081 |
|
|
5.14 |
% |
Mortgage-backed securities |
|
2,798,647 |
|
|
17,541 |
|
|
2.49 |
% |
|
|
2,863,345 |
|
|
17,834 |
|
|
2.47 |
% |
|
|
3,187,557 |
|
|
19,244 |
|
|
2.40 |
% |
Other securities |
|
1,035,842 |
|
|
11,993 |
|
|
4.59 |
% |
|
|
1,071,389 |
|
|
12,128 |
|
|
4.49 |
% |
|
|
1,628,553 |
|
|
15,945 |
|
|
3.88 |
% |
Interest-bearing deposits with banks |
|
45,286 |
|
|
506 |
|
|
4.43 |
% |
|
|
43,594 |
|
|
529 |
|
|
4.81 |
% |
|
|
245,538 |
|
|
2,126 |
|
|
3.44 |
% |
FHLB stock |
|
15,326 |
|
|
215 |
|
|
5.57 |
% |
|
|
16,443 |
|
|
385 |
|
|
9.29 |
% |
|
|
10,773 |
|
|
76 |
|
|
2.80 |
% |
Total investment securities |
|
3,895,101 |
|
|
30,255 |
|
|
3.08 |
% |
|
|
3,994,771 |
|
|
30,876 |
|
|
3.07 |
% |
|
|
5,072,421 |
|
|
37,391 |
|
|
2.92 |
% |
Total interest-earning assets |
|
14,656,396 |
|
|
186,768 |
|
|
5.06 |
% |
|
|
14,613,803 |
|
|
182,046 |
|
|
4.94 |
% |
|
|
15,186,021 |
|
|
168,472 |
|
|
4.40 |
% |
Non-interest-earning assets |
|
875,719 |
|
|
|
|
|
|
932,364 |
|
|
|
|
|
|
927,585 |
|
|
|
|
|||||||||
Total assets |
$ |
15,532,115 |
|
|
|
|
|
$ |
15,546,167 |
|
|
|
|
|
$ |
16,113,606 |
|
|
|
|
|||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing checking accounts |
$ |
2,060,226 |
|
|
5,907 |
|
|
1.14 |
% |
|
$ |
1,971,179 |
|
|
4,190 |
|
|
0.84 |
% |
|
$ |
1,818,907 |
|
|
566 |
|
|
0.12 |
% |
Savings accounts |
|
2,885,167 |
|
|
12,560 |
|
|
1.73 |
% |
|
|
2,659,890 |
|
|
8,400 |
|
|
1.25 |
% |
|
|
2,761,323 |
|
|
866 |
|
|
0.12 |
% |
Money market accounts |
|
1,723,426 |
|
|
7,644 |
|
|
1.76 |
% |
|
|
1,793,953 |
|
|
6,639 |
|
|
1.47 |
% |
|
|
2,256,867 |
|
|
1,337 |
|
|
0.24 |
% |
Certificates of deposit |
|
1,477,474 |
|
|
13,231 |
|
|
3.55 |
% |
|
|
1,412,542 |
|
|
11,772 |
|
|
3.31 |
% |
|
|
709,974 |
|
|
854 |
|
|
0.48 |
% |
Total interest-bearing deposits |
|
8,146,293 |
|
|
39,342 |
|
|
1.92 |
% |
|
|
7,837,564 |
|
|
31,001 |
|
|
1.57 |
% |
|
|
7,547,071 |
|
|
3,623 |
|
|
0.19 |
% |
Non-interest-bearing deposits |
|
5,036,523 |
|
|
— |
|
|
— |
% |
|
|
5,316,023 |
|
|
— |
|
|
— |
% |
|
|
6,402,297 |
|
|
— |
|
|
— |
% |
Total deposits |
|
13,182,816 |
|
|
39,342 |
|
|
1.18 |
% |
|
|
13,153,587 |
|
|
31,001 |
|
|
0.94 |
% |
|
|
13,949,368 |
|
|
3,623 |
|
|
0.10 |
% |
Other interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
FHLB advances |
|
129,630 |
|
|
1,870 |
|
|
5.72 |
% |
|
|
161,087 |
|
|
2,233 |
|
|
5.50 |
% |
|
|
19,337 |
|
|
198 |
|
|
4.06 |
% |
Other borrowings |
|
185,518 |
|
|
1,125 |
|
|
2.41 |
% |
|
|
194,659 |
|
|
1,099 |
|
|
2.24 |
% |
|
|
238,217 |
|
|
132 |
|
|
0.22 |
% |
Junior subordinated debentures and subordinated notes |
|
182,678 |
|
|
2,992 |
|
|
6.50 |
% |
|
|
182,678 |
|
|
2,965 |
|
|
6.44 |
% |
|
|
189,178 |
|
|
2,534 |
|
|
5.31 |
% |
Total borrowings |
|
497,826 |
|
|
5,987 |
|
|
4.77 |
% |
|
|
538,424 |
|
|
6,297 |
|
|
4.64 |
% |
|
|
446,732 |
|
|
2,864 |
|
|
2.54 |
% |
Total funding liabilities |
|
13,680,642 |
|
|
45,329 |
|
|
1.31 |
% |
|
|
13,692,011 |
|
|
37,298 |
|
|
1.08 |
% |
|
|
14,396,100 |
|
|
6,487 |
|
|
0.18 |
% |
Other non-interest-bearing liabilities(2) |
|
311,539 |
|
|
|
|
|
|
296,578 |
|
|
|
|
|
|
292,480 |
|
|
|
|
|||||||||
Total liabilities |
|
13,992,181 |
|
|
|
|
|
|
13,988,589 |
|
|
|
|
|
|
14,688,580 |
|
|
|
|
|||||||||
Shareholders’ equity |
|
1,539,934 |
|
|
|
|
|
|
1,557,578 |
|
|
|
|
|
|
1,425,026 |
|
|
|
|
|||||||||
Total liabilities and shareholders’ equity |
$ |
15,532,115 |
|
|
|
|
|
$ |
15,546,167 |
|
|
|
|
|
$ |
16,113,606 |
|
|
|
|
|||||||||
Net interest income/rate spread (tax equivalent) |
|
|
$ |
141,439 |
|
|
3.75 |
% |
|
|
|
$ |
144,748 |
|
|
3.86 |
% |
|
|
|
$ |
161,985 |
|
|
4.22 |
% |
|||
Net interest margin (tax equivalent) |
|
|
|
|
3.83 |
% |
|
|
|
|
|
3.93 |
% |
|
|
|
|
|
4.23 |
% |
|||||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjustments for taxable equivalent basis |
|
|
|
(3,030 |
) |
|
|
|
|
|
|
(2,982 |
) |
|
|
|
|
|
|
(2,914 |
) |
|
|
||||||
Net interest income and margin, as reported |
|
|
$ |
138,409 |
|
|
3.75 |
% |
|
|
|
$ |
141,766 |
|
|
3.85 |
% |
|
|
|
$ |
159,071 |
|
|
4.16 |
% |
|||
Additional Key Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets |
|
|
|
|
1.09 |
% |
|
|
|
|
|
1.17 |
% |
|
|
|
|
|
1.34 |
% |
|||||||||
Return on average equity |
|
|
|
|
10.98 |
% |
|
|
|
|
|
11.68 |
% |
|
|
|
|
|
15.14 |
% |
|||||||||
Average equity/average assets |
|
|
|
|
9.91 |
% |
|
|
|
|
|
10.02 |
% |
|
|
|
|
|
8.84 |
% |
|||||||||
Average interest-earning assets/average interest-bearing liabilities |
|
|
|
|
169.55 |
% |
|
|
|
|
|
174.47 |
% |
|
|
|
|
|
189.97 |
% |
|||||||||
Average interest-earning assets/average funding liabilities |
|
|
|
|
107.13 |
% |
|
|
|
|
|
106.73 |
% |
|
|
|
|
|
105.49 |
% |
|||||||||
Non-interest income/average assets |
|
|
|
|
0.36 |
% |
|
|
|
|
|
0.32 |
% |
|
|
|
|
|
0.32 |
% |
|||||||||
Non-interest expense/average assets |
|
|
|
|
2.47 |
% |
|
|
|
|
|
2.45 |
% |
|
|
|
|
|
2.44 |
% |
|||||||||
Efficiency ratio(4) |
|
|
|
|
63.37 |
% |
|
|
|
|
|
62.10 |
% |
|
|
|
|
|
57.52 |
% |
|||||||||
Adjusted efficiency ratio(5) |
|
|
|
|
60.04 |
% |
|
|
|
|
|
59.00 |
% |
|
|
|
|
|
54.43 |
% |
(1) |
Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
(2) |
Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. |
(3) |
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was |
(4) |
Non-interest expense divided by the total of net interest income and non-interest income. |
(5) |
Adjusted non-interest expense divided by adjusted revenue. Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
(rates / ratios annualized) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
ANALYSIS OF NET INTEREST SPREAD |
Year Ended |
||||||||||||||||||
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||||||||||
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost(3) |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost(3) |
||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Held for sale loans |
$ |
49,106 |
|
$ |
2,621 |
|
|
5.34 |
% |
|
$ |
82,030 |
|
$ |
2,973 |
|
|
3.62 |
% |
Mortgage loans |
|
8,513,487 |
|
|
460,664 |
|
|
5.41 |
% |
|
|
7,731,195 |
|
|
364,499 |
|
|
4.71 |
% |
Commercial/agricultural loans |
|
1,777,099 |
|
|
113,078 |
|
|
6.36 |
% |
|
|
1,617,191 |
|
|
77,309 |
|
|
4.78 |
% |
SBA PPP loans |
|
5,042 |
|
|
172 |
|
|
3.41 |
% |
|
|
41,167 |
|
|
4,677 |
|
|
11.36 |
% |
Consumer and other loans |
|
138,196 |
|
|
8,715 |
|
|
6.31 |
% |
|
|
123,667 |
|
|
7,332 |
|
|
5.93 |
% |
Total loans(1) |
|
10,482,930 |
|
|
585,250 |
|
|
5.58 |
% |
|
|
9,595,250 |
|
|
456,790 |
|
|
4.76 |
% |
Mortgage-backed securities |
|
2,927,650 |
|
|
72,927 |
|
|
2.49 |
% |
|
|
3,130,124 |
|
|
68,148 |
|
|
2.18 |
% |
Other securities |
|
1,173,637 |
|
|
52,148 |
|
|
4.44 |
% |
|
|
1,625,250 |
|
|
48,278 |
|
|
2.97 |
% |
Interest-bearing deposits with banks |
|
46,815 |
|
|
2,200 |
|
|
4.70 |
% |
|
|
969,952 |
|
|
9,633 |
|
|
0.99 |
% |
FHLB stock |
|
17,903 |
|
|
847 |
|
|
4.73 |
% |
|
|
10,628 |
|
|
357 |
|
|
3.36 |
% |
Total investment securities |
|
4,166,005 |
|
|
128,122 |
|
|
3.08 |
% |
|
|
5,735,954 |
|
|
126,416 |
|
|
2.20 |
% |
Total interest-earning assets |
|
14,648,935 |
|
|
713,372 |
|
|
4.87 |
% |
|
|
15,331,204 |
|
|
583,206 |
|
|
3.80 |
% |
Non-interest-earning assets |
|
917,018 |
|
|
|
|
|
|
1,169,271 |
|
|
|
|
||||||
Total assets |
$ |
15,565,953 |
|
|
|
|
|
$ |
16,500,475 |
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest-bearing checking accounts |
$ |
1,921,326 |
|
|
13,334 |
|
|
0.69 |
% |
|
$ |
1,890,917 |
|
|
1,557 |
|
|
0.08 |
% |
Savings accounts |
|
2,674,936 |
|
|
27,739 |
|
|
1.04 |
% |
|
|
2,810,264 |
|
|
2,053 |
|
|
0.07 |
% |
Money market accounts |
|
1,908,983 |
|
|
24,089 |
|
|
1.26 |
% |
|
|
2,364,122 |
|
|
3,143 |
|
|
0.13 |
% |
Certificates of deposit |
|
1,209,261 |
|
|
34,964 |
|
|
2.89 |
% |
|
|
764,255 |
|
|
3,371 |
|
|
0.44 |
% |
Total interest-bearing deposits |
|
7,714,506 |
|
|
100,126 |
|
|
1.30 |
% |
|
|
7,829,558 |
|
|
10,124 |
|
|
0.13 |
% |
Non-interest-bearing deposits |
|
5,436,953 |
|
|
— |
|
|
— |
% |
|
|
6,434,670 |
|
|
— |
|
|
— |
% |
Total deposits |
|
13,151,459 |
|
|
100,126 |
|
|
0.76 |
% |
|
|
14,264,228 |
|
|
10,124 |
|
|
0.07 |
% |
Other interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
FHLB advances |
|
196,819 |
|
|
10,524 |
|
|
5.35 |
% |
|
|
15,285 |
|
|
489 |
|
|
3.20 |
% |
Other borrowings |
|
199,291 |
|
|
3,376 |
|
|
1.69 |
% |
|
|
249,681 |
|
|
377 |
|
|
0.15 |
% |
Junior subordinated debentures and subordinated notes |
|
185,883 |
|
|
11,541 |
|
|
6.21 |
% |
|
|
189,870 |
|
|
8,400 |
|
|
4.42 |
% |
Total borrowings |
|
581,993 |
|
|
25,441 |
|
|
4.37 |
% |
|
|
454,836 |
|
|
9,266 |
|
|
2.04 |
% |
Total funding liabilities |
|
13,733,452 |
|
|
125,567 |
|
|
0.91 |
% |
|
|
14,719,064 |
|
|
19,390 |
|
|
0.13 |
% |
Other non-interest-bearing liabilities(2) |
|
295,098 |
|
|
|
|
|
|
253,983 |
|
|
|
|
||||||
Total liabilities |
|
14,028,550 |
|
|
|
|
|
|
14,973,047 |
|
|
|
|
||||||
Shareholders’ equity |
|
1,537,403 |
|
|
|
|
|
|
1,527,428 |
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
15,565,953 |
|
|
|
|
|
$ |
16,500,475 |
|
|
|
|
||||||
Net interest income/rate spread (tax equivalent) |
|
|
$ |
587,805 |
|
|
3.96 |
% |
|
|
|
$ |
563,816 |
|
|
3.67 |
% |
||
Net interest margin (tax equivalent) |
|
|
|
|
4.01 |
% |
|
|
|
|
|
3.68 |
% |
||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments for taxable equivalent basis |
|
|
|
(11,800 |
) |
|
|
|
|
|
|
(10,637 |
) |
|
|
||||
Net interest income and margin, as reported |
|
|
$ |
576,005 |
|
|
3.93 |
% |
|
|
|
$ |
553,179 |
|
|
3.61 |
% |
||
Additional Key Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets |
|
|
|
|
1.18 |
% |
|
|
|
|
|
1.18 |
% |
||||||
Return on average equity |
|
|
|
|
11.94 |
% |
|
|
|
|
|
12.79 |
% |
||||||
Average equity/average assets |
|
|
|
|
9.88 |
% |
|
|
|
|
|
9.26 |
% |
||||||
Average interest-earning assets/average interest-bearing liabilities |
|
|
|
|
176.57 |
% |
|
|
|
|
|
185.06 |
% |
||||||
Average interest-earning assets/average funding liabilities |
|
|
|
|
106.67 |
% |
|
|
|
|
|
104.16 |
% |
||||||
Non-interest income/average assets |
|
|
|
|
0.29 |
% |
|
|
|
|
|
0.46 |
% |
||||||
Non-interest expense/average assets |
|
|
|
|
2.46 |
% |
|
|
|
|
|
2.29 |
% |
||||||
Efficiency ratio(4) |
|
|
|
|
61.66 |
% |
|
|
|
|
|
60.04 |
% |
||||||
Adjusted efficiency ratio(5) |
|
|
|
|
57.89 |
% |
|
|
|
|
|
57.99 |
% |
(1) |
Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
(2) |
Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. |
(3) |
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was |
(4) |
Non-interest expense divided by the total of net interest income and non-interest income. |
(5) |
Adjusted non-interest expense divided by adjusted revenue. These represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
* Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
||||||||
In addition to results presented in accordance with generally accepted accounting principles in |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
ADJUSTED REVENUE |
Quarters Ended |
|
Year Ended |
||||||||||||||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||
Net interest income (GAAP) |
$ |
138,409 |
|
|
$ |
141,766 |
|
$ |
159,071 |
|
|
$ |
576,005 |
|
$ |
553,179 |
|
Non-interest income (GAAP) |
|
14,052 |
|
|
|
12,658 |
|
|
13,070 |
|
|
|
44,409 |
|
|
75,255 |
|
Total revenue (GAAP) |
|
152,461 |
|
|
|
154,424 |
|
|
172,141 |
|
|
|
620,414 |
|
|
628,434 |
|
Exclude: Net loss on sale of securities |
|
4,806 |
|
|
|
2,657 |
|
|
3,721 |
|
|
|
19,242 |
|
|
3,248 |
|
Net change in valuation of financial instruments carried at fair value |
|
(139 |
) |
|
|
654 |
|
|
(157 |
) |
|
|
4,218 |
|
|
(807 |
) |
Gain on sale of branches |
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
(7,804 |
) |
Adjusted revenue (non-GAAP) |
$ |
157,128 |
|
|
$ |
157,735 |
|
$ |
175,705 |
|
|
$ |
643,874 |
|
$ |
623,071 |
|
ADJUSTED EARNINGS |
Quarters Ended |
|
Year Ended |
||||||||||||||||
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||||
Net income (GAAP) |
$ |
42,624 |
|
|
$ |
45,854 |
|
|
$ |
54,380 |
|
|
$ |
183,624 |
|
|
$ |
195,378 |
|
Exclude: Net loss on sale of securities |
|
4,806 |
|
|
|
2,657 |
|
|
|
3,721 |
|
|
|
19,242 |
|
|
|
3,248 |
|
Net change in valuation of financial instruments carried at fair value |
|
(139 |
) |
|
|
654 |
|
|
|
(157 |
) |
|
|
4,218 |
|
|
|
(807 |
) |
Gain on sale of branches |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,804 |
) |
Banner Forward expenses (1) |
|
— |
|
|
|
996 |
|
|
|
838 |
|
|
|
1,334 |
|
|
|
5,293 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
793 |
|
Related net tax benefit |
|
(1,121 |
) |
|
|
(1,033 |
) |
|
|
(1,057 |
) |
|
|
(5,951 |
) |
|
|
(174 |
) |
Total adjusted earnings (non-GAAP) |
$ |
46,170 |
|
|
$ |
49,128 |
|
|
$ |
57,725 |
|
|
$ |
202,467 |
|
|
$ |
195,927 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share (GAAP) |
$ |
1.24 |
|
|
$ |
1.33 |
|
|
$ |
1.58 |
|
|
$ |
5.33 |
|
|
$ |
5.67 |
|
Diluted adjusted earnings per share (non-GAAP) |
$ |
1.34 |
|
|
$ |
1.43 |
|
|
$ |
1.68 |
|
|
$ |
5.88 |
|
|
$ |
5.69 |
|
(1) |
Included in miscellaneous expenses in results of operations. |
ADDITIONAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
|
|
|
||||||||||
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
||||||||||
ADJUSTED EFFICIENCY RATIO |
|
Quarters Ended |
|
Year Ended |
||||||||||||||||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
|
Dec 31, 2023 |
|
Dec 31, 2022 |
||||||||||
Non-interest expense (GAAP) |
|
$ |
96,621 |
|
|
$ |
95,891 |
|
|
$ |
99,013 |
|
|
$ |
382,538 |
|
|
$ |
377,295 |
|
Exclude: Banner Forward expenses (1) |
|
|
— |
|
|
|
(996 |
) |
|
|
(838 |
) |
|
|
(1,334 |
) |
|
|
(5,293 |
) |
CDI amortization |
|
|
(858 |
) |
|
|
(857 |
) |
|
|
(1,215 |
) |
|
|
(3,756 |
) |
|
|
(5,279 |
) |
State/municipal tax expense |
|
|
(1,372 |
) |
|
|
(1,359 |
) |
|
|
(1,304 |
) |
|
|
(5,260 |
) |
|
|
(4,693 |
) |
REO operations |
|
|
(47 |
) |
|
|
383 |
|
|
|
(28 |
) |
|
|
538 |
|
|
|
104 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(793 |
) |
Adjusted non-interest expense (non-GAAP) |
|
$ |
94,344 |
|
|
$ |
93,062 |
|
|
$ |
95,628 |
|
|
$ |
372,726 |
|
|
$ |
361,341 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (GAAP) |
|
$ |
138,409 |
|
|
$ |
141,766 |
|
|
$ |
159,071 |
|
|
$ |
576,005 |
|
|
$ |
553,179 |
|
Non-interest income (GAAP) |
|
|
14,052 |
|
|
|
12,658 |
|
|
|
13,070 |
|
|
|
44,409 |
|
|
|
75,255 |
|
Total revenue (GAAP) |
|
|
152,461 |
|
|
|
154,424 |
|
|
|
172,141 |
|
|
|
620,414 |
|
|
|
628,434 |
|
Exclude: Net loss on sale of securities |
|
|
4,806 |
|
|
|
2,657 |
|
|
|
3,721 |
|
|
|
19,242 |
|
|
|
3,248 |
|
Net change in valuation of financial instruments carried at fair value |
|
|
(139 |
) |
|
|
654 |
|
|
|
(157 |
) |
|
|
4,218 |
|
|
|
(807 |
) |
Gain on sale of branches |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,804 |
) |
Adjusted revenue (non-GAAP) |
|
$ |
157,128 |
|
|
$ |
157,735 |
|
|
$ |
175,705 |
|
|
$ |
643,874 |
|
|
$ |
623,071 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio (GAAP) |
|
|
63.37 |
% |
|
|
62.10 |
% |
|
|
57.52 |
% |
|
|
61.66 |
% |
|
|
60.04 |
% |
Adjusted efficiency ratio (non-GAAP) |
|
|
60.04 |
% |
|
|
59.00 |
% |
|
|
54.43 |
% |
|
|
57.89 |
% |
|
|
57.99 |
% |
(1) |
Included in miscellaneous expenses in results of operations. |
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
|
||||||
|
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Dec 31, 2022 |
||||||
Shareholders’ equity (GAAP) |
|
$ |
1,652,691 |
|
|
$ |
1,520,607 |
|
|
$ |
1,456,432 |
|
Exclude goodwill and other intangible assets, net |
|
|
378,805 |
|
|
|
379,663 |
|
|
|
382,561 |
|
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,273,886 |
|
|
$ |
1,140,944 |
|
|
$ |
1,073,871 |
|
|
|
|
|
|
|
|
||||||
Total assets (GAAP) |
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
|
$ |
15,833,431 |
|
Exclude goodwill and other intangible assets, net |
|
|
378,805 |
|
|
|
379,663 |
|
|
|
382,561 |
|
Total tangible assets (non-GAAP) |
|
$ |
15,291,586 |
|
|
$ |
15,128,217 |
|
|
$ |
15,450,870 |
|
Common shareholders’ equity to total assets (GAAP) |
|
|
10.55 |
% |
|
|
9.81 |
% |
|
|
9.20 |
% |
Tangible common shareholders’ equity to tangible assets (non-GAAP) |
|
|
8.33 |
% |
|
|
7.54 |
% |
|
|
6.95 |
% |
|
|
|
|
|
|
|
||||||
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE |
|
|
|
|
|
|
||||||
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,273,886 |
|
|
$ |
1,140,944 |
|
|
$ |
1,073,871 |
|
Common shares outstanding at end of period |
|
|
34,348,369 |
|
|
|
34,345,949 |
|
|
|
34,194,018 |
|
Common shareholders’ equity (book value) per share (GAAP) |
|
$ |
48.12 |
|
|
$ |
44.27 |
|
|
$ |
42.59 |
|
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) |
|
$ |
37.09 |
|
|
$ |
33.22 |
|
|
$ |
31.41 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240117582408/en/
MARK J. GRESCOVICH,
PRESIDENT & CEO
ROBERT G. BUTTERFIELD, CFO
(509) 527-3636
Source: Banner Corporation
FAQ
What is the net income reported by Banner Corporation for Q4 2023?
What was the net income for the preceding quarter and Q4 2022?
What was the net interest income for Q4 2023?
What was the percentage decrease in net interest income compared to the preceding quarter and prior year quarter?