Banner Corporation Reports Net Income of $45.2 Million, or $1.30 Per Diluted Share, for Third Quarter 2024; Declares Quarterly Cash Dividend of $0.48 Per Share
Banner (NASDAQ: BANR) reported net income of $45.2 million, or $1.30 per diluted share, for Q3 2024, up from $39.8 million, or $1.15 per share, in the preceding quarter but down from $45.9 million, or $1.33 per share, in Q3 2023. Net interest income was $135.7 million, reflecting an increase from $132.5 million in Q2 2024 but a decrease from $141.8 million in Q3 2023. The company declared a quarterly dividend of $0.48 per share. Total assets reached $16.19 billion, with total deposits at $13.54 billion and net loans at $11.07 billion. Non-performing assets rose to $45.2 million, or 0.28% of total assets. The net interest margin was 3.72%, slightly up from 3.70% in Q2 2024 but down from 3.93% in Q3 2023. The allowance for credit losses was $154.6 million. Core deposits represented 89% of total deposits. Common shareholders' equity per share increased 6% to $52.06 from the previous quarter and 18% year-over-year.
Banner (NASDAQ: BANR) ha riportato un utile netto di $45.2 milioni, ovvero $1.30 per azione diluita, per il terzo trimestre del 2024, in aumento rispetto ai $39.8 milioni, o $1.15 per azione, del trimestre precedente, ma in diminuzione rispetto ai $45.9 milioni, o $1.33 per azione, del terzo trimestre del 2023. Il reddito netto da interessi è stato di $135.7 milioni, con un incremento rispetto ai $132.5 milioni del secondo trimestre del 2024, ma in calo rispetto ai $141.8 milioni del terzo trimestre del 2023. L'azienda ha dichiarato un dividendo trimestrale di $0.48 per azione. Il totale delle attività ha raggiunto $16.19 miliardi, con depositi totali di $13.54 miliardi e prestiti netti di $11.07 miliardi. I beni non performanti sono aumentati a $45.2 milioni, pari allo 0.28% del totale delle attività. Il margine d'interesse netto è stato del 3.72%, leggermente in aumento rispetto al 3.70% del secondo trimestre del 2024, ma in calo rispetto al 3.93% del terzo trimestre del 2023. Il fondo per perdite su crediti era di $154.6 milioni. I depositi core rappresentavano l'89% dei depositi totali. Il patrimonio netto degli azionisti comuni per azione è aumentato del 6% a $52.06 rispetto al trimestre precedente e del 18% su base annua.
Banner (NASDAQ: BANR) reportó un ingreso neto de $45.2 millones, o $1.30 por acción diluida, para el tercer trimestre de 2024, un aumento desde los $39.8 millones, o $1.15 por acción, en el trimestre anterior, pero una disminución desde los $45.9 millones, o $1.33 por acción, en el tercer trimestre de 2023. Los ingresos netos por intereses fueron de $135.7 millones, reflejando un incremento desde los $132.5 millones en el segundo trimestre de 2024, pero una disminución desde los $141.8 millones en el tercer trimestre de 2023. La compañía declaró un dividendo trimestral de $0.48 por acción. Los activos totales alcanzaron $16.19 mil millones, con depósitos totales de $13.54 mil millones y préstamos netos de $11.07 mil millones. Los activos no productivos aumentaron a $45.2 millones, o el 0.28% del total de activos. El margen de interés neto fue del 3.72%, ligeramente superior al 3.70% del segundo trimestre de 2024, pero inferior al 3.93% del tercer trimestre de 2023. La provisión para pérdidas de crédito fue de $154.6 millones. Los depósitos básicos representaron el 89% de los depósitos totales. El patrimonio neto por acción de los accionistas comunes aumentó un 6% a $52.06 respecto al trimestre anterior y un 18% interanual.
Banner (NASDAQ: BANR)는 2024년 3분기에 순익 4,520만 달러, 즉 희석주당 1.30달러를 보고했으며, 이는 이전 분기의 3,980만 달러, 즉 주당 1.15달러에서 증가했지만 2023년 3분기의 4,590만 달러, 즉 주당 1.33달러보다 감소한 수치입니다. 순이자 수익은 1억 3,570만 달러로, 2024년 2분기의 1억 3,250만 달러에서 증가했지만 2023년 3분기의 1억 4,180만 달러에서 감소했습니다. 회사는 분기 배당금을 주당 0.48달러로 선언했습니다. 총 자산은 161억 9천만 달러에 도달했으며, 총 예치금은 135억 4천만 달러, 순 대출은 110억 7천만 달러입니다. 부실 자산은 4,520만 달러로 증가했으며, 총 자산의 0.28%를 차지합니다. 순이자 마진은 3.72%로, 2024년 2분기의 3.70%보다 소폭 상승했지만 2023년 3분기의 3.93%보다는 하락했습니다. 신용 손실에 대한 준비금은 1억 5,460만 달러였습니다. 기본 예치금은 총 예치금의 89%를 차지했습니다. 보통주주 지분은 주당 52.06달러로 이전 분기 대비 6% 증가하고, 전년 동기 대비 18% 증가했습니다.
Banner (NASDAQ: BANR) a annoncé un revenu net de 45,2 millions de dollars, soit 1,30 dollar par action diluée, pour le 3ème trimestre 2024, en hausse par rapport à 39,8 millions de dollars, soit 1,15 dollar par action, au trimestre précédent, mais en baisse par rapport à 45,9 millions de dollars, soit 1,33 dollar par action, au 3ème trimestre 2023. Le revenu net d’intérêts était de 135,7 millions de dollars, reflétant une augmentation par rapport à 132,5 millions de dollars au 2ème trimestre 2024, mais une diminution par rapport à 141,8 millions de dollars au 3ème trimestre 2023. La société a déclaré un dividende trimestriel de 0,48 dollar par action. Les actifs totaux ont atteint 16,19 milliards de dollars, avec des dépôts totaux de 13,54 milliards de dollars et des prêts nets de 11,07 milliards de dollars. Les actifs non performants ont augmenté à 45,2 millions de dollars, soit 0,28 % des actifs totaux. La marge d'intérêts nette était de 3,72 %, légèrement en hausse par rapport à 3,70 % au 2ème trimestre 2024, mais en baisse par rapport à 3,93 % au 3ème trimestre 2023. La provision pour pertes de crédit était de 154,6 millions de dollars. Les dépôts de base représentaient 89 % des dépôts totaux. Les capitaux propres des actionnaires ordinaires par action ont augmenté de 6 % pour atteindre 52,06 dollars par rapport au trimestre précédent et de 18 % d’une année sur l’autre.
Banner (NASDAQ: BANR) hat für das 3. Quartal 2024 einen Nettogewinn von 45,2 Millionen US-Dollar oder 1,30 US-Dollar pro verwässerter Aktie gemeldet, was einem Anstieg im Vergleich zu 39,8 Millionen US-Dollar oder 1,15 US-Dollar pro Aktie im vorhergehenden Quartal entspricht, jedoch einem Rückgang von 45,9 Millionen US-Dollar oder 1,33 US-Dollar pro Aktie im 3. Quartal 2023. Die Zinserträge beliefen sich auf 135,7 Millionen US-Dollar und zeigen einen Anstieg von 132,5 Millionen US-Dollar im 2. Quartal 2024, aber einen Rückgang von 141,8 Millionen US-Dollar im 3. Quartal 2023. Das Unternehmen erklärte eine Quartalsdividende von 0,48 US-Dollar pro Aktie. Die Gesamtaktiva beliefen sich auf 16,19 Milliarden US-Dollar, mit Gesamteinlagen von 13,54 Milliarden US-Dollar und netto Darlehen von 11,07 Milliarden US-Dollar. Nicht leistungsfähige Vermögenswerte stiegen auf 45,2 Millionen US-Dollar oder 0,28% der Gesamtaktiva. Die Nettozinsspanne betrug 3,72%, leicht gestiegen von 3,70% im 2. Quartal 2024, aber gefallen von 3,93% im 3. Quartal 2023. Die Rückstellung für Kreditausfälle betrug 154,6 Millionen US-Dollar. Kern Einlagen machten 89% der Gesamteinlagen aus. Das Eigenkapital pro Stammaktionär stieg im Vergleich zum vorhergehenden Quartal um 6% auf 52,06 US-Dollar und um 18% im Vergleich zum Vorjahr.
- Net income increased to $45.2 million from $39.8 million in the preceding quarter.
- Net interest income rose to $135.7 million from $132.5 million in Q2 2024.
- Total assets increased to $16.19 billion from $15.82 billion in Q2 2024.
- Core deposits represented 89% of total deposits.
- Net income decreased from $45.9 million in Q3 2023 to $45.2 million in Q3 2024.
- Net interest income decreased from $141.8 million in Q3 2023 to $135.7 million in Q3 2024.
- Non-performing assets increased to $45.2 million from $33.3 million in the preceding quarter.
Insights
Banner 's Q3 2024 results show a solid performance with net income of
Key positives include:
- Net interest margin improvement to
3.72% from3.70% in Q2 1% increase in net loans to$11.07 billion 4% increase in core deposits to$12.02 billion - Strong capital position with tangible common shareholders' equity at
8.96% of tangible assets
However, there are some concerns:
- Increase in non-performing assets to
0.28% of total assets from0.21% in Q2 - Slight increase in deposit costs to
1.61% from1.50% in Q2
Overall, Banner's performance demonstrates resilience in a challenging environment, with strong loan growth and deposit base. The increased net interest margin and solid capital position provide a buffer against potential economic headwinds.
Banner's Q3 results highlight its successful execution of a "super community bank strategy." The
The bank's efficiency ratio of
Banner's capital position is a standout, with tangible common shareholders' equity increasing
The declared quarterly dividend of
Net income was
Banner announced that its Board of Directors declared a regular quarterly cash dividend of
“Banner’s third quarter operating results reflect the continued successful execution of our super community bank strategy, which emphasizes growing new client relationships, maintaining our core funding position, promoting client loyalty and advocacy through our responsive service model, and sustaining a moderate risk profile,” said Mark Grescovich, President and CEO. “Our earnings for the third quarter of 2024 benefited from our solid year over year loan growth coupled with our expanded net interest margin. Additionally, Banner's credit metrics continue to be strong, our reserve for loan losses remained solid, and our capital base continues to be robust. We continue to benefit from a strong core deposit base that has been resilient in a highly competitive environment, with core deposits representing
At September 30, 2024, Banner, on a consolidated basis, had
Third Quarter 2024 Highlights
-
Revenue was
for the third quarter of 2024, compared to$153.7 million in the preceding quarter and$149.7 million in the third quarter a year ago.$154.4 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 third quarter of 2024, compared to$153.7 million in the preceding quarter and$150.5 million in the third quarter a year ago.$157.7 million -
Net interest income was
in the third quarter of 2024, compared to$135.7 million in the preceding quarter and$132.5 million in the third quarter a year ago.$141.8 million -
Net interest margin, on a tax equivalent basis, was
3.72% , compared to3.70% in the preceding quarter and3.93% in the third quarter a year ago. -
Mortgage banking operations revenue was
for the third quarter of 2024, compared to$3.2 million in the preceding quarter and$3.0 million in the third quarter a year ago.$2.0 million -
Return on average assets was
1.13% , compared to1.02% in the preceding quarter and1.17% in the third quarter a year ago. -
Net loans receivable increased
1% to at September 30, 2024, compared to$11.07 billion at June 30, 2024, and increased$10.99 billion 6% compared to at September 30, 2023.$10.46 billion -
Non-performing assets were
, or$45.2 million 0.28% of total assets, at September 30, 2024, compared to , or$33.3 million 0.21% of total assets, at June 30, 2024 and , or$26.8 million 0.17% of total assets, at September 30, 2023. -
The allowance for credit losses - loans was
, or$154.6 million 1.38% of total loans receivable, as of September 30, 2024, compared to , or$152.8 million 1.37% of total loans receivable, as of June 30, 2024 and , or$147.0 million 1.38% of total loans receivable, as of September 30, 2023. -
Total deposits increased to
at September 30, 2024, compared to$13.54 billion at June 30, 2024 and$13.08 billion at September 30, 2023.$13.17 billion -
Core deposits represented
89% of total deposits at September 30, 2024. -
Dividends paid to shareholders were
per share in the quarter ended September 30, 2024.$0.48 -
Common shareholders’ equity per share increased
6% to at September 30, 2024, compared to$52.06 at the preceding quarter end, and increased$49.07 18% from at September 30, 2023.$44.27 -
Tangible common shareholders’ equity per share* increased
8% to at September 30, 2024, compared to$41.12 at the preceding quarter end, and increased$38.12 24% from at September 30, 2023.$33.22
*Non-GAAP (Generally Accepted Accounting Principles) financial measure; See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures.
Income Statement Review
Net interest income was
Average yields on interest-earning assets increased eight basis points to
Total deposit costs increased 11 basis points to
A
Total non-interest income was
Mortgage banking operations revenue was
Total non-interest expense was
Balance Sheet Review
Total assets increased to
Total loans receivable increased to
Loans held for sale were
Total deposits increased to
FHLB advances were
At September 30, 2024, total common shareholders’ equity was
Banner and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized.” At September 30, 2024, Banner’s estimated common equity Tier 1 capital ratio was
Credit Quality
The allowance for credit losses - loans was
An increase in adversely classified loans, offset in part by payoffs and paydowns, resulted in total substandard loans of
Total non-performing assets were
Conference Call
Banner will host a conference call on Thursday, October 17, 2024, at 8:00 a.m. PDT, to discuss its third 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 433614 to participate in the call. A replay of the call will be available 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) 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 recession or slowed economic growth, or increased political instability due to acts of war; (2) changes in the interest rate environment, including increases or decreases in the Board of Governors of the Federal Reserve System (the “Federal Reserve”) benchmark rate and duration at which such interest rate levels are maintained, which could affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; (3) the impact of 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) expectations regarding key growth initiatives and strategic priorities; (7) 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; (8) 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; (9) competitive pressures among depository institutions; (10) the effect of inflation on interest rate movements and their impact on client behavior and net interest margin; (11) the impact of repricing and competitors’ pricing initiatives on loan and deposit products; (12) fluctuations in real estate values; (13) the ability to adapt successfully to technological changes to meet clients’ needs and developments in the market place; (14) the ability to access cost-effective funding; (15) 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; (16) changes in financial markets; (17) changes in economic conditions in general and in
RESULTS OF OPERATIONS |
|
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
(in thousands except shares and per share data) |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
|
Sep 30, 2024 |
|
Sep 30, 2023 |
||||||||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans receivable |
|
$ |
168,338 |
|
|
$ |
161,191 |
|
|
$ |
149,254 |
|
|
$ |
486,004 |
|
|
$ |
423,359 |
|
Mortgage-backed securities |
|
|
16,357 |
|
|
|
16,708 |
|
|
|
17,691 |
|
|
|
49,999 |
|
|
|
54,954 |
|
Securities and cash equivalents |
|
|
11,146 |
|
|
|
11,239 |
|
|
|
12,119 |
|
|
|
33,664 |
|
|
|
39,521 |
|
Total interest income |
|
|
195,841 |
|
|
|
189,138 |
|
|
|
179,064 |
|
|
|
569,667 |
|
|
|
517,834 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
53,785 |
|
|
|
48,850 |
|
|
|
31,001 |
|
|
|
147,248 |
|
|
|
60,784 |
|
Federal Home Loan Bank (FHLB) advances |
|
|
2,263 |
|
|
|
3,621 |
|
|
|
2,233 |
|
|
|
8,856 |
|
|
|
8,654 |
|
Other borrowings |
|
|
1,147 |
|
|
|
1,160 |
|
|
|
1,099 |
|
|
|
3,482 |
|
|
|
2,251 |
|
Subordinated debt |
|
|
2,971 |
|
|
|
2,961 |
|
|
|
2,965 |
|
|
|
8,901 |
|
|
|
8,549 |
|
Total interest expense |
|
|
60,166 |
|
|
|
56,592 |
|
|
|
37,298 |
|
|
|
168,487 |
|
|
|
80,238 |
|
Net interest income |
|
|
135,675 |
|
|
|
132,546 |
|
|
|
141,766 |
|
|
|
401,180 |
|
|
|
437,596 |
|
PROVISION FOR CREDIT LOSSES |
|
|
1,692 |
|
|
|
2,369 |
|
|
|
2,027 |
|
|
|
4,581 |
|
|
|
8,267 |
|
Net interest income after provision for credit losses |
|
|
133,983 |
|
|
|
130,177 |
|
|
|
139,739 |
|
|
|
396,599 |
|
|
|
429,329 |
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit fees and other service charges |
|
|
10,741 |
|
|
|
10,590 |
|
|
|
10,916 |
|
|
|
32,353 |
|
|
|
32,078 |
|
Mortgage banking operations |
|
|
3,180 |
|
|
|
3,006 |
|
|
|
2,049 |
|
|
|
8,521 |
|
|
|
6,426 |
|
Bank-owned life insurance |
|
|
2,445 |
|
|
|
2,367 |
|
|
|
2,062 |
|
|
|
7,049 |
|
|
|
6,636 |
|
Miscellaneous |
|
|
1,658 |
|
|
|
1,988 |
|
|
|
942 |
|
|
|
5,538 |
|
|
|
4,010 |
|
|
|
|
18,024 |
|
|
|
17,951 |
|
|
|
15,969 |
|
|
|
53,461 |
|
|
|
49,150 |
|
Net loss on sale of securities |
|
|
— |
|
|
|
(562 |
) |
|
|
(2,657 |
) |
|
|
(5,465 |
) |
|
|
(14,436 |
) |
Net change in valuation of financial instruments carried at fair value |
|
|
39 |
|
|
|
(190 |
) |
|
|
(654 |
) |
|
|
(1,143 |
) |
|
|
(4,357 |
) |
Total non-interest income |
|
|
18,063 |
|
|
|
17,199 |
|
|
|
12,658 |
|
|
|
46,853 |
|
|
|
30,357 |
|
NON-INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Salary and employee benefits |
|
|
61,832 |
|
|
|
63,831 |
|
|
|
61,091 |
|
|
|
188,032 |
|
|
|
184,452 |
|
Less capitalized loan origination costs |
|
|
(4,354 |
) |
|
|
(4,639 |
) |
|
|
(4,498 |
) |
|
|
(12,669 |
) |
|
|
(12,386 |
) |
Occupancy and equipment |
|
|
12,040 |
|
|
|
12,128 |
|
|
|
11,722 |
|
|
|
36,630 |
|
|
|
35,686 |
|
Information and computer data services |
|
|
7,134 |
|
|
|
7,240 |
|
|
|
7,118 |
|
|
|
21,694 |
|
|
|
21,347 |
|
Payment and card processing services |
|
|
5,346 |
|
|
|
5,691 |
|
|
|
5,172 |
|
|
|
16,747 |
|
|
|
14,459 |
|
Professional and legal expenses |
|
|
2,102 |
|
|
|
1,201 |
|
|
|
3,042 |
|
|
|
4,833 |
|
|
|
7,563 |
|
Advertising and marketing |
|
|
1,161 |
|
|
|
1,198 |
|
|
|
1,362 |
|
|
|
3,438 |
|
|
|
3,108 |
|
Deposit insurance |
|
|
2,874 |
|
|
|
2,858 |
|
|
|
2,874 |
|
|
|
8,541 |
|
|
|
7,603 |
|
State and municipal business and use taxes |
|
|
1,432 |
|
|
|
1,394 |
|
|
|
1,359 |
|
|
|
4,130 |
|
|
|
3,888 |
|
Real estate operations, net |
|
|
103 |
|
|
|
297 |
|
|
|
(383 |
) |
|
|
180 |
|
|
|
(585 |
) |
Amortization of core deposit intangibles |
|
|
590 |
|
|
|
724 |
|
|
|
857 |
|
|
|
2,037 |
|
|
|
2,898 |
|
Miscellaneous |
|
|
6,031 |
|
|
|
6,205 |
|
|
|
6,175 |
|
|
|
18,467 |
|
|
|
17,884 |
|
Total non-interest expense |
|
|
96,291 |
|
|
|
98,128 |
|
|
|
95,891 |
|
|
|
292,060 |
|
|
|
285,917 |
|
Income before provision for income taxes |
|
|
55,755 |
|
|
|
49,248 |
|
|
|
56,506 |
|
|
|
151,392 |
|
|
|
173,769 |
|
PROVISION FOR INCOME TAXES |
|
|
10,602 |
|
|
|
9,453 |
|
|
|
10,652 |
|
|
|
28,885 |
|
|
|
32,769 |
|
NET INCOME |
|
$ |
45,153 |
|
|
$ |
39,795 |
|
|
$ |
45,854 |
|
|
$ |
122,507 |
|
|
$ |
141,000 |
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
$ |
1.31 |
|
|
$ |
1.15 |
|
|
$ |
1.33 |
|
|
$ |
3.56 |
|
|
$ |
4.11 |
|
Diluted |
|
$ |
1.30 |
|
|
$ |
1.15 |
|
|
$ |
1.33 |
|
|
$ |
3.54 |
|
|
$ |
4.09 |
|
Cumulative dividends declared per common share |
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
|
$ |
1.44 |
|
|
$ |
1.44 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
34,498,830 |
|
|
|
34,488,163 |
|
|
|
34,379,865 |
|
|
|
34,459,662 |
|
|
|
34,331,458 |
|
Diluted |
|
|
34,650,322 |
|
|
|
34,537,012 |
|
|
|
34,429,726 |
|
|
|
34,575,498 |
|
|
|
34,439,214 |
|
Increase in common shares outstanding |
|
|
936 |
|
|
|
60,531 |
|
|
|
1,322 |
|
|
|
108,319 |
|
|
|
151,931 |
|
FINANCIAL CONDITION |
|
|
|
|
|
|
|
|
|
Percentage Change |
||||||||||||
(in thousands except shares and per share data) |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
|
$ |
226,568 |
|
|
$ |
195,163 |
|
|
$ |
209,634 |
|
|
$ |
207,171 |
|
|
16 |
% |
|
9 |
% |
Interest-bearing deposits |
|
|
252,227 |
|
|
|
52,295 |
|
|
|
44,830 |
|
|
|
44,535 |
|
|
382 |
% |
|
466 |
% |
Total cash and cash equivalents |
|
|
478,795 |
|
|
|
247,458 |
|
|
|
254,464 |
|
|
|
251,706 |
|
|
93 |
% |
|
90 |
% |
Securities – trading |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,268 |
|
|
nm |
|
(100 |
)% |
|
Securities - available for sale, amortized cost |
|
|
2,237,939 |
|
|
|
2,197,693 |
|
|
|
2,373,783 |
|
|
|
2,287,993 |
|
|
2 |
% |
|
(2 |
)% |
Securities - held to maturity, fair value |
|
|
1,013,903 |
|
|
|
1,023,028 |
|
|
|
1,059,055 |
|
|
|
1,082,156 |
|
|
(1 |
)% |
|
(6 |
)% |
Total securities |
|
|
3,251,842 |
|
|
|
3,220,721 |
|
|
|
3,432,838 |
|
|
|
3,395,417 |
|
|
1 |
% |
|
(4 |
)% |
FHLB stock |
|
|
19,751 |
|
|
|
27,311 |
|
|
|
24,028 |
|
|
|
15,600 |
|
|
(28 |
)% |
|
27 |
% |
Loans held for sale |
|
|
78,841 |
|
|
|
13,421 |
|
|
|
11,170 |
|
|
|
54,158 |
|
|
487 |
% |
|
46 |
% |
Loans receivable |
|
|
11,224,606 |
|
|
|
11,143,848 |
|
|
|
10,810,455 |
|
|
|
10,611,417 |
|
|
1 |
% |
|
6 |
% |
Allowance for credit losses – loans |
|
|
(154,585 |
) |
|
|
(152,848 |
) |
|
|
(149,643 |
) |
|
|
(146,960 |
) |
|
1 |
% |
|
5 |
% |
Net loans receivable |
|
|
11,070,021 |
|
|
|
10,991,000 |
|
|
|
10,660,812 |
|
|
|
10,464,457 |
|
|
1 |
% |
|
6 |
% |
Accrued interest receivable |
|
|
66,981 |
|
|
|
67,520 |
|
|
|
63,100 |
|
|
|
61,040 |
|
|
(1 |
)% |
|
10 |
% |
Property and equipment, net |
|
|
125,256 |
|
|
|
126,465 |
|
|
|
132,231 |
|
|
|
136,504 |
|
|
(1 |
)% |
|
(8 |
)% |
Goodwill |
|
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
|
373,121 |
|
|
— |
% |
|
— |
% |
Other intangibles, net |
|
|
3,647 |
|
|
|
4,237 |
|
|
|
5,684 |
|
|
|
6,542 |
|
|
(14 |
)% |
|
(44 |
)% |
Bank-owned life insurance |
|
|
310,400 |
|
|
|
307,948 |
|
|
|
304,366 |
|
|
|
303,347 |
|
|
1 |
% |
|
2 |
% |
Operating lease right-of-use assets |
|
|
38,192 |
|
|
|
39,628 |
|
|
|
43,731 |
|
|
|
43,447 |
|
|
(4 |
)% |
|
(12 |
)% |
Other assets |
|
|
371,829 |
|
|
|
397,364 |
|
|
|
364,846 |
|
|
|
402,541 |
|
|
(6 |
)% |
|
(8 |
)% |
Total assets |
|
$ |
16,188,676 |
|
|
$ |
15,816,194 |
|
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
|
2 |
% |
|
4 |
% |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing |
|
$ |
4,688,244 |
|
|
$ |
4,537,803 |
|
|
$ |
4,792,369 |
|
|
$ |
5,197,854 |
|
|
3 |
% |
|
(10 |
)% |
Interest-bearing transaction and savings accounts |
|
|
7,328,051 |
|
|
|
7,016,327 |
|
|
|
6,759,661 |
|
|
|
6,518,385 |
|
|
4 |
% |
|
12 |
% |
Interest-bearing certificates |
|
|
1,521,853 |
|
|
|
1,525,133 |
|
|
|
1,477,467 |
|
|
|
1,458,313 |
|
|
— |
% |
|
4 |
% |
Total deposits |
|
|
13,538,148 |
|
|
|
13,079,263 |
|
|
|
13,029,497 |
|
|
|
13,174,552 |
|
|
4 |
% |
|
3 |
% |
Advances from FHLB |
|
|
230,000 |
|
|
|
398,000 |
|
|
|
323,000 |
|
|
|
140,000 |
|
|
(42 |
)% |
|
64 |
% |
Other borrowings |
|
|
154,533 |
|
|
|
165,956 |
|
|
|
182,877 |
|
|
|
188,440 |
|
|
(7 |
)% |
|
(18 |
)% |
Subordinated notes, net |
|
|
80,170 |
|
|
|
89,561 |
|
|
|
92,851 |
|
|
|
92,748 |
|
|
(10 |
)% |
|
(14 |
)% |
Junior subordinated debentures at fair value |
|
|
66,257 |
|
|
|
66,831 |
|
|
|
66,413 |
|
|
|
66,284 |
|
|
(1 |
)% |
|
— |
% |
Operating lease liabilities |
|
|
42,318 |
|
|
|
44,056 |
|
|
|
48,659 |
|
|
|
48,642 |
|
|
(4 |
)% |
|
(13 |
)% |
Accrued expenses and other liabilities |
|
|
237,128 |
|
|
|
235,515 |
|
|
|
228,428 |
|
|
|
231,478 |
|
|
1 |
% |
|
2 |
% |
Deferred compensation |
|
|
46,401 |
|
|
|
46,246 |
|
|
|
45,975 |
|
|
|
45,129 |
|
|
— |
% |
|
3 |
% |
Total liabilities |
|
|
14,394,955 |
|
|
|
14,125,428 |
|
|
|
14,017,700 |
|
|
|
13,987,273 |
|
|
2 |
% |
|
3 |
% |
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock |
|
|
1,304,792 |
|
|
|
1,302,236 |
|
|
|
1,299,651 |
|
|
|
1,297,307 |
|
|
— |
% |
|
1 |
% |
Retained earnings |
|
|
714,472 |
|
|
|
686,079 |
|
|
|
642,175 |
|
|
|
616,215 |
|
|
4 |
% |
|
16 |
% |
Accumulated other comprehensive loss |
|
|
(225,543 |
) |
|
|
(297,549 |
) |
|
|
(289,135 |
) |
|
|
(392,915 |
) |
|
(24 |
)% |
|
(43 |
)% |
Total shareholders’ equity |
|
|
1,793,721 |
|
|
|
1,690,766 |
|
|
|
1,652,691 |
|
|
|
1,520,607 |
|
|
6 |
% |
|
18 |
% |
Total liabilities and shareholders’ equity |
|
$ |
16,188,676 |
|
|
$ |
15,816,194 |
|
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
|
2 |
% |
|
4 |
% |
Common Shares Issued: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares outstanding at end of period |
|
|
34,456,688 |
|
|
|
34,455,752 |
|
|
|
34,348,369 |
|
|
|
34,345,949 |
|
|
|
|
|
||
Common shareholders’ equity per share (1) |
|
$ |
52.06 |
|
|
$ |
49.07 |
|
|
$ |
48.12 |
|
|
$ |
44.27 |
|
|
|
|
|
||
Common shareholders’ tangible equity per share (1) (2) |
|
$ |
41.12 |
|
|
$ |
38.12 |
|
|
$ |
37.09 |
|
|
$ |
33.22 |
|
|
|
|
|
||
Common shareholders’ equity to total assets |
|
|
11.08 |
% |
|
|
10.69 |
% |
|
|
10.55 |
% |
|
|
9.81 |
% |
|
|
|
|
||
Common shareholders’ tangible equity to tangible assets (2) |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.33 |
% |
|
|
7.54 |
% |
|
|
|
|
||
Consolidated Tier 1 leverage capital ratio |
|
|
10.91 |
% |
|
|
10.80 |
% |
|
|
10.56 |
% |
|
|
10.40 |
% |
|
|
|
|
nm |
Not meaningful |
|||||
(1) |
Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding. |
|||||
(2) |
Common shareholders’ tangible equity and tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Percentage Change |
||||||||||||
LOANS |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate (CRE): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Owner-occupied |
|
$ |
990,516 |
|
|
$ |
950,922 |
|
|
$ |
915,897 |
|
|
$ |
911,540 |
|
|
4 |
% |
|
9 |
% |
Investment properties |
|
|
1,583,863 |
|
|
|
1,536,142 |
|
|
|
1,541,344 |
|
|
|
1,530,087 |
|
|
3 |
% |
|
4 |
% |
Small balance CRE |
|
|
1,218,822 |
|
|
|
1,234,302 |
|
|
|
1,178,500 |
|
|
|
1,169,828 |
|
|
(1 |
)% |
|
4 |
% |
Multifamily real estate |
|
|
889,866 |
|
|
|
717,089 |
|
|
|
811,232 |
|
|
|
766,571 |
|
|
24 |
% |
|
16 |
% |
Construction, land and land development: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial construction |
|
|
124,051 |
|
|
|
173,296 |
|
|
|
170,011 |
|
|
|
168,061 |
|
|
(28 |
)% |
|
(26 |
)% |
Multifamily construction |
|
|
524,108 |
|
|
|
663,989 |
|
|
|
503,993 |
|
|
|
453,129 |
|
|
(21 |
)% |
|
16 |
% |
One- to four-family construction |
|
|
507,350 |
|
|
|
490,237 |
|
|
|
526,432 |
|
|
|
536,349 |
|
|
3 |
% |
|
(5 |
)% |
Land and land development |
|
|
370,690 |
|
|
|
352,184 |
|
|
|
336,639 |
|
|
|
346,362 |
|
|
5 |
% |
|
7 |
% |
Commercial business: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial business |
|
|
1,281,615 |
|
|
|
1,298,134 |
|
|
|
1,255,734 |
|
|
|
1,263,747 |
|
|
(1 |
)% |
|
1 |
% |
Small business scored |
|
|
1,087,714 |
|
|
|
1,074,465 |
|
|
|
1,022,154 |
|
|
|
1,000,714 |
|
|
1 |
% |
|
9 |
% |
Agricultural business, including secured by farmland: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agricultural business, including secured by farmland |
|
|
346,686 |
|
|
|
334,583 |
|
|
|
331,089 |
|
|
|
334,626 |
|
|
4 |
% |
|
4 |
% |
One- to four-family residential |
|
|
1,575,164 |
|
|
|
1,603,266 |
|
|
|
1,518,046 |
|
|
|
1,438,694 |
|
|
(2 |
)% |
|
9 |
% |
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer—home equity revolving lines of credit |
|
|
622,615 |
|
|
|
611,739 |
|
|
|
588,703 |
|
|
|
579,836 |
|
|
2 |
% |
|
7 |
% |
Consumer—other |
|
|
101,546 |
|
|
|
103,500 |
|
|
|
110,681 |
|
|
|
111,873 |
|
|
(2 |
)% |
|
(9 |
)% |
Total loans receivable |
|
$ |
11,224,606 |
|
|
$ |
11,143,848 |
|
|
$ |
10,810,455 |
|
|
$ |
10,611,417 |
|
|
1 |
% |
|
6 |
% |
Loans 30 - 89 days past due and on accrual |
|
$ |
13,030 |
|
|
$ |
11,850 |
|
|
$ |
19,744 |
|
|
$ |
6,108 |
|
|
|
|
|
||
Total delinquent loans (including loans on non-accrual), net |
|
$ |
44,656 |
|
|
$ |
32,081 |
|
|
$ |
43,164 |
|
|
$ |
28,312 |
|
|
|
|
|
||
Total delinquent loans / Total loans receivable |
|
|
0.40 |
% |
|
|
0.29 |
% |
|
|
0.40 |
% |
|
|
0.27 |
% |
|
|
|
|
LOANS BY GEOGRAPHIC LOCATION |
|
|
|
|
|
|
|
|
|
|
|
Percentage Change |
|||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Prior Qtr |
|
Prior Yr Qtr |
|||||||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Amount |
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
$ |
5,203,637 |
|
46 |
% |
|
$ |
5,182,378 |
|
$ |
5,095,602 |
|
$ |
5,046,028 |
|
— |
% |
|
3 |
% |
||||
|
|
|
2,796,965 |
|
|
25 |
% |
|
|
2,787,190 |
|
|
|
2,670,923 |
|
|
|
2,570,175 |
|
|
— |
% |
|
9 |
% |
|
|
|
2,108,229 |
|
|
19 |
% |
|
|
2,072,153 |
|
|
|
1,974,001 |
|
|
|
1,929,531 |
|
|
2 |
% |
|
9 |
% |
|
|
|
652,148 |
|
|
6 |
% |
|
|
641,209 |
|
|
|
610,064 |
|
|
|
600,648 |
|
|
2 |
% |
|
9 |
% |
|
|
|
85,316 |
|
|
1 |
% |
|
|
80,295 |
|
|
|
68,931 |
|
|
|
57,711 |
|
|
6 |
% |
|
48 |
% |
Other |
|
|
378,311 |
|
|
3 |
% |
|
|
380,623 |
|
|
|
390,934 |
|
|
|
407,324 |
|
|
(1 |
)% |
|
(7 |
)% |
Total loans receivable |
|
$ |
11,224,606 |
|
|
100 |
% |
|
$ |
11,143,848 |
|
|
$ |
10,810,455 |
|
|
$ |
10,611,417 |
|
|
1 |
% |
|
6 |
% |
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||
(dollars in thousands) |
|||||||||||
LOAN ORIGINATIONS |
Quarters Ended |
||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Commercial real estate |
$ |
114,372 |
|
$ |
102,258 |
|
$ |
62,337 |
|||
Multifamily real estate |
|
314 |
|
|
|
2,774 |
|
|
|
12,725 |
|
Construction and land |
|
472,506 |
|
|
|
546,675 |
|
|
|
421,656 |
|
Commercial business |
|
179,871 |
|
|
|
167,168 |
|
|
|
157,833 |
|
Agricultural business |
|
5,877 |
|
|
|
22,255 |
|
|
|
17,466 |
|
One- to four-family residential |
|
24,488 |
|
|
|
34,498 |
|
|
|
43,622 |
|
Consumer |
|
96,137 |
|
|
|
120,470 |
|
|
|
70,043 |
|
Total loan originations (excluding loans held for sale) |
$ |
893,565 |
|
|
$ |
996,098 |
|
|
$ |
785,682 |
|
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||
(dollars in thousands) |
||||||||||||
|
|
Quarters Ended |
||||||||||
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Balance, beginning of period |
|
$ |
152,848 |
|
|
$ |
151,140 |
|
|
$ |
144,680 |
|
Provision for credit losses – loans |
|
|
1,967 |
|
|
|
1,953 |
|
|
|
2,943 |
|
Recoveries of loans previously charged off: |
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
65 |
|
|
|
98 |
|
|
|
170 |
|
Construction and land |
|
|
— |
|
|
|
— |
|
|
|
29 |
|
One- to four-family real estate |
|
|
14 |
|
|
|
17 |
|
|
|
59 |
|
Commercial business |
|
|
613 |
|
|
|
324 |
|
|
|
403 |
|
Agricultural business, including secured by farmland |
|
|
1 |
|
|
|
195 |
|
|
|
19 |
|
Consumer |
|
|
41 |
|
|
|
112 |
|
|
|
126 |
|
|
|
|
734 |
|
|
|
746 |
|
|
|
806 |
|
Loans charged off: |
|
|
|
|
|
|
||||||
Commercial real estate |
|
|
— |
|
|
|
(347 |
) |
|
|
— |
|
Construction and land |
|
|
(145 |
) |
|
|
— |
|
|
|
— |
|
Commercial business |
|
|
(414 |
) |
|
|
(137 |
) |
|
|
(616 |
) |
Agricultural business, including secured by farmland |
|
|
— |
|
|
|
— |
|
|
|
(564 |
) |
Consumer |
|
|
(405 |
) |
|
|
(507 |
) |
|
|
(289 |
) |
|
|
|
(964 |
) |
|
|
(991 |
) |
|
|
(1,469 |
) |
Net charge-offs |
|
|
(230 |
) |
|
|
(245 |
) |
|
|
(663 |
) |
Balance, end of period |
|
$ |
154,585 |
|
|
$ |
152,848 |
|
|
$ |
146,960 |
|
Net charge-offs / Average loans receivable |
|
|
(0.002 |
)% |
|
|
(0.002 |
)% |
|
|
(0.006 |
)% |
ALLOCATION OF ALLOWANCE FOR CREDIT LOSSES – LOANS |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Commercial real estate |
|
$ |
40,040 |
|
|
$ |
39,064 |
|
|
$ |
44,016 |
|
Multifamily real estate |
|
|
10,233 |
|
|
|
8,253 |
|
|
|
8,804 |
|
Construction and land |
|
|
28,322 |
|
|
|
31,597 |
|
|
|
29,389 |
|
One- to four-family real estate |
|
|
20,463 |
|
|
|
20,906 |
|
|
|
17,925 |
|
Commercial business |
|
|
39,779 |
|
|
|
38,835 |
|
|
|
34,065 |
|
Agricultural business, including secured by farmland |
|
|
5,340 |
|
|
|
4,045 |
|
|
|
3,718 |
|
Consumer |
|
|
10,408 |
|
|
|
10,148 |
|
|
|
9,043 |
|
Total allowance for credit losses – loans |
|
$ |
154,585 |
|
|
$ |
152,848 |
|
|
$ |
146,960 |
|
Allowance for credit losses - loans / Total loans receivable |
|
|
1.38 |
% |
|
|
1.37 |
% |
|
|
1.38 |
% |
Allowance for credit losses - loans / Non-performing loans |
|
|
359 |
% |
|
|
498 |
% |
|
|
560 |
% |
|
|
Quarters Ended |
||||||||||
CHANGE IN THE ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS |
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Balance, beginning of period |
|
$ |
14,027 |
|
|
$ |
13,597 |
|
$ |
14,664 |
||
(Recapture) provision for credit losses - unfunded loan commitments |
|
|
(262 |
) |
|
|
430 |
|
|
|
346 |
|
Balance, end of period |
|
$ |
13,765 |
|
|
$ |
14,027 |
|
|
$ |
15,010 |
|
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||||||
(dollars in thousands) |
|||||||||||||||
NON-PERFORMING ASSETS |
|||||||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
||||||||
Loans on non-accrual status: |
|
|
|
|
|
|
|
||||||||
Secured by real estate: |
|
|
|
|
|
|
|
||||||||
Commercial |
$ |
2,127 |
|
|
$ |
2,326 |
|
|
$ |
2,677 |
|
|
$ |
1,365 |
|
Construction and land |
|
4,286 |
|
|
|
3,999 |
|
|
|
3,105 |
|
|
|
5,538 |
|
One- to four-family |
|
9,592 |
|
|
|
8,184 |
|
|
|
5,702 |
|
|
|
5,480 |
|
Commercial business |
|
10,705 |
|
|
|
8,694 |
|
|
|
9,002 |
|
|
|
5,289 |
|
Agricultural business, including secured by farmland |
|
7,703 |
|
|
|
1,586 |
|
|
|
3,167 |
|
|
|
3,170 |
|
Consumer |
|
4,636 |
|
|
|
3,380 |
|
|
|
3,204 |
|
|
|
3,378 |
|
|
|
39,049 |
|
|
|
28,169 |
|
|
|
26,857 |
|
|
|
24,220 |
|
Loans more than 90 days delinquent, still on accrual: |
|
|
|
|
|
|
|
||||||||
Secured by real estate: |
|
|
|
|
|
|
|
||||||||
Commercial |
|
2,258 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Construction and land |
|
380 |
|
|
|
— |
|
|
|
1,138 |
|
|
|
— |
|
One- to four-family |
|
961 |
|
|
|
1,861 |
|
|
|
1,205 |
|
|
|
1,799 |
|
Commercial business |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Consumer |
|
359 |
|
|
|
692 |
|
|
|
401 |
|
|
|
245 |
|
|
|
3,958 |
|
|
|
2,553 |
|
|
|
2,745 |
|
|
|
2,044 |
|
Total non-performing loans |
|
43,007 |
|
|
|
30,722 |
|
|
|
29,602 |
|
|
|
26,264 |
|
REO |
|
2,221 |
|
|
|
2,564 |
|
|
|
526 |
|
|
|
546 |
|
Total non-performing assets |
$ |
45,228 |
|
|
$ |
33,286 |
|
|
$ |
30,128 |
|
|
$ |
26,810 |
|
Total non-performing assets to total assets |
|
0.28 |
% |
|
|
0.21 |
% |
|
|
0.19 |
% |
|
|
0.17 |
% |
LOANS BY CREDIT RISK RATING |
|||||||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
||||||||
Pass |
$ |
11,022,014 |
|
$ |
10,971,850 |
|
$ |
10,671,281 |
|
$ |
10,467,498 |
||||
Special Mention |
|
52,497 |
|
|
|
50,027 |
|
|
|
13,732 |
|
|
|
19,394 |
|
Substandard |
|
150,095 |
|
|
|
121,971 |
|
|
|
125,442 |
|
|
|
124,525 |
|
Total |
$ |
11,224,606 |
|
|
$ |
11,143,848 |
|
|
$ |
10,810,455 |
|
|
$ |
10,611,417 |
|
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
DEPOSIT COMPOSITION |
|
|
|
|
|
|
|
|
|
Percentage Change |
||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Prior Qtr |
|
Prior Yr Qtr |
||||||||||
Non-interest-bearing |
|
$ |
4,688,244 |
|
$ |
4,537,803 |
|
$ |
4,792,369 |
|
$ |
5,197,854 |
|
3 |
% |
|
(10 |
)% |
||||
Interest-bearing checking |
|
|
2,344,561 |
|
|
|
2,208,742 |
|
|
|
2,098,526 |
|
|
|
2,006,866 |
|
|
6 |
% |
|
17 |
% |
Regular savings accounts |
|
|
3,339,859 |
|
|
|
3,192,036 |
|
|
|
2,980,530 |
|
|
|
2,751,453 |
|
|
5 |
% |
|
21 |
% |
Money market accounts |
|
|
1,643,631 |
|
|
|
1,615,549 |
|
|
|
1,680,605 |
|
|
|
1,760,066 |
|
|
2 |
% |
|
(7 |
)% |
Total interest-bearing transaction and savings accounts |
|
|
7,328,051 |
|
|
|
7,016,327 |
|
|
|
6,759,661 |
|
|
|
6,518,385 |
|
|
4 |
% |
|
12 |
% |
Total core deposits |
|
|
12,016,295 |
|
|
|
11,554,130 |
|
|
|
11,552,030 |
|
|
|
11,716,239 |
|
|
4 |
% |
|
3 |
% |
Interest-bearing certificates |
|
|
1,521,853 |
|
|
|
1,525,133 |
|
|
|
1,477,467 |
|
|
|
1,458,313 |
|
|
— |
% |
|
4 |
% |
Total deposits |
|
$ |
13,538,148 |
|
|
$ |
13,079,263 |
|
|
$ |
13,029,497 |
|
|
$ |
13,174,552 |
|
|
4 |
% |
|
3 |
% |
GEOGRAPHIC CONCENTRATION OF DEPOSITS |
|||||||||||||||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
|
Percentage Change |
|||||||||||||||
|
|
Amount |
|
Percentage |
|
Amount |
|
Amount |
|
Amount |
|
Prior Qtr |
|
Prior Yr Qtr |
|||||||||||
|
|
$ |
7,413,414 |
|
55 |
% |
|
$ |
7,171,699 |
|
$ |
7,247,392 |
|
$ |
7,241,341 |
|
3 |
% |
|
2 |
% |
||||
|
|
|
2,997,843 |
|
|
22 |
% |
|
|
2,909,838 |
|
|
|
2,852,677 |
|
|
|
2,918,446 |
|
|
3 |
% |
|
3 |
% |
|
|
|
2,423,295 |
|
|
18 |
% |
|
|
2,331,793 |
|
|
|
2,269,557 |
|
|
|
2,342,345 |
|
|
4 |
% |
|
3 |
% |
|
|
|
703,596 |
|
|
5 |
% |
|
|
665,933 |
|
|
|
659,871 |
|
|
|
672,420 |
|
|
6 |
% |
|
5 |
% |
Total deposits |
|
$ |
13,538,148 |
|
|
100 |
% |
|
$ |
13,079,263 |
|
|
$ |
13,029,497 |
|
|
$ |
13,174,552 |
|
|
4 |
% |
|
3 |
% |
INCLUDED IN TOTAL DEPOSITS |
||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Public non-interest-bearing accounts |
|
$ |
141,541 |
|
$ |
149,012 |
|
$ |
169,058 |
|||
Public interest-bearing transaction & savings accounts |
|
|
246,332 |
|
|
|
250,136 |
|
|
|
188,831 |
|
Public interest-bearing certificates |
|
|
28,144 |
|
|
|
29,101 |
|
|
|
46,349 |
|
Total public deposits |
|
$ |
416,017 |
|
|
$ |
428,249 |
|
|
$ |
404,238 |
|
Collateralized public deposits |
|
$ |
317,960 |
|
|
$ |
326,524 |
|
|
$ |
300,189 |
|
Total brokered deposits |
|
$ |
50,333 |
|
|
$ |
105,309 |
|
|
$ |
162,856 |
|
|
|
|
|
|
|
|
||||||
AVERAGE ACCOUNT BALANCE PER DEPOSIT ACCOUNT |
||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
||||||
Number of deposit accounts |
|
|
459,127 |
|
|
|
460,107 |
|
|
|
466,159 |
|
Average account balance per account |
|
$ |
30 |
|
|
$ |
29 |
|
|
$ |
28 |
|
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
ESTIMATED REGULATORY CAPITAL RATIOS AS OF SEPTEMBER 30, 2024 |
|
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 |
|
$ |
1,988,948 |
|
14.92 |
% |
|
$ |
1,066,549 |
|
8.00 |
% |
|
$ |
1,333,186 |
|
10.00 |
% |
|||
Tier 1 capital to risk-weighted assets |
|
|
1,725,690 |
|
|
12.94 |
% |
|
|
799,912 |
|
|
6.00 |
% |
|
|
799,912 |
|
|
6.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,725,690 |
|
|
10.91 |
% |
|
|
632,760 |
|
|
4.00 |
% |
|
|
n/a |
|
n/a |
||
Common equity tier 1 capital to risk-weighted assets |
|
|
1,639,190 |
|
|
12.30 |
% |
|
|
599,934 |
|
|
4.50 |
% |
|
|
n/a |
|
n/a |
||
Banner Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital to risk-weighted assets |
|
|
1,862,242 |
|
|
13.95 |
% |
|
|
1,067,758 |
|
|
8.00 |
% |
|
|
1,334,697 |
|
|
10.00 |
% |
Tier 1 capital to risk-weighted assets |
|
|
1,698,984 |
|
|
12.73 |
% |
|
|
800,818 |
|
|
6.00 |
% |
|
|
1,067,758 |
|
|
8.00 |
% |
Tier 1 leverage capital to average assets |
|
|
1,698,984 |
|
|
10.74 |
% |
|
|
632,851 |
|
|
4.00 |
% |
|
|
791,063 |
|
|
5.00 |
% |
Common equity tier 1 capital to risk-weighted assets |
|
|
1,698,984 |
|
|
12.73 |
% |
|
|
600,614 |
|
|
4.50 |
% |
|
|
867,553 |
|
|
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 |
|||||||||||||||||||||||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
|||||||||||||||||||||||||||
|
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 |
$ |
26,954 |
|
$ |
453 |
|
|
6.69 |
% |
|
$ |
11,665 |
|
$ |
206 |
|
|
7.10 |
% |
|
$ |
56,697 |
|
$ |
765 |
|
|
5.35 |
% |
|||
Mortgage loans |
|
9,207,468 |
|
|
|
135,497 |
|
|
5.85 |
% |
|
|
9,006,857 |
|
|
|
129,230 |
|
|
5.77 |
% |
|
|
8,596,705 |
|
|
|
118,285 |
|
|
5.46 |
% |
Commercial/agricultural loans |
|
1,879,215 |
|
|
|
32,547 |
|
|
6.89 |
% |
|
|
1,874,039 |
|
|
|
31,761 |
|
|
6.82 |
% |
|
|
1,826,907 |
|
|
|
29,894 |
|
|
6.49 |
% |
Consumer and other loans |
|
128,548 |
|
|
|
2,154 |
|
|
6.67 |
% |
|
|
132,661 |
|
|
|
2,156 |
|
|
6.54 |
% |
|
|
138,723 |
|
|
|
2,226 |
|
|
6.37 |
% |
Total loans (1) |
|
11,242,185 |
|
|
|
170,651 |
|
|
6.04 |
% |
|
|
11,025,222 |
|
|
|
163,353 |
|
|
5.96 |
% |
|
|
10,619,032 |
|
|
|
151,170 |
|
|
5.65 |
% |
Mortgage-backed securities |
|
2,623,399 |
|
|
|
16,498 |
|
|
2.50 |
% |
|
|
2,672,187 |
|
|
|
16,850 |
|
|
2.54 |
% |
|
|
2,863,345 |
|
|
|
17,834 |
|
|
2.47 |
% |
Other securities |
|
943,310 |
|
|
|
11,120 |
|
|
4.69 |
% |
|
|
958,809 |
|
|
|
11,181 |
|
|
4.69 |
% |
|
|
1,071,389 |
|
|
|
12,128 |
|
|
4.49 |
% |
Interest-bearing deposits with banks |
|
51,604 |
|
|
|
493 |
|
|
3.80 |
% |
|
|
58,022 |
|
|
|
578 |
|
|
4.01 |
% |
|
|
43,594 |
|
|
|
529 |
|
|
4.81 |
% |
FHLB stock |
|
16,664 |
|
|
|
412 |
|
|
9.84 |
% |
|
|
21,080 |
|
|
|
365 |
|
|
6.96 |
% |
|
|
16,443 |
|
|
|
385 |
|
|
9.29 |
% |
Total investment securities |
|
3,634,977 |
|
|
|
28,523 |
|
|
3.12 |
% |
|
|
3,710,098 |
|
|
|
28,974 |
|
|
3.14 |
% |
|
|
3,994,771 |
|
|
|
30,876 |
|
|
3.07 |
% |
Total interest-earning assets |
|
14,877,162 |
|
|
|
199,174 |
|
|
5.33 |
% |
|
|
14,735,320 |
|
|
|
192,327 |
|
|
5.25 |
% |
|
|
14,613,803 |
|
|
|
182,046 |
|
|
4.94 |
% |
Non-interest-earning assets |
|
981,290 |
|
|
|
|
|
|
|
926,411 |
|
|
|
|
|
|
|
932,364 |
|
|
|
|
|
|||||||||
Total assets |
$ |
15,858,452 |
|
|
|
|
|
|
$ |
15,661,731 |
|
|
|
|
|
|
$ |
15,546,167 |
|
|
|
|
|
|||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing checking accounts |
$ |
2,295,723 |
|
|
|
9,497 |
|
|
1.65 |
% |
|
$ |
2,156,214 |
|
|
|
7,621 |
|
|
1.42 |
% |
|
$ |
1,971,179 |
|
|
|
4,190 |
|
|
0.84 |
% |
Savings accounts |
|
3,268,647 |
|
|
|
19,299 |
|
|
2.35 |
% |
|
|
3,147,522 |
|
|
|
17,200 |
|
|
2.20 |
% |
|
|
2,659,890 |
|
|
|
8,400 |
|
|
1.25 |
% |
Money market accounts |
|
1,611,543 |
|
|
|
9,184 |
|
|
2.27 |
% |
|
|
1,659,327 |
|
|
|
9,124 |
|
|
2.21 |
% |
|
|
1,793,953 |
|
|
|
6,639 |
|
|
1.47 |
% |
Certificates of deposit |
|
1,540,637 |
|
|
|
15,805 |
|
|
4.08 |
% |
|
|
1,503,597 |
|
|
|
14,905 |
|
|
3.99 |
% |
|
|
1,412,542 |
|
|
|
11,772 |
|
|
3.31 |
% |
Total interest-bearing deposits |
|
8,716,550 |
|
|
|
53,785 |
|
|
2.45 |
% |
|
|
8,466,660 |
|
|
|
48,850 |
|
|
2.32 |
% |
|
|
7,837,564 |
|
|
|
31,001 |
|
|
1.57 |
% |
Non-interest-bearing deposits |
|
4,601,755 |
|
|
|
— |
|
|
— |
% |
|
|
4,634,738 |
|
|
|
— |
|
|
— |
% |
|
|
5,316,023 |
|
|
|
— |
|
|
— |
% |
Total deposits |
|
13,318,305 |
|
|
|
53,785 |
|
|
1.61 |
% |
|
|
13,101,398 |
|
|
|
48,850 |
|
|
1.50 |
% |
|
|
13,153,587 |
|
|
|
31,001 |
|
|
0.94 |
% |
Other interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
FHLB advances |
|
161,413 |
|
|
|
2,263 |
|
|
5.58 |
% |
|
|
259,549 |
|
|
|
3,621 |
|
|
5.61 |
% |
|
|
161,087 |
|
|
|
2,233 |
|
|
5.50 |
% |
Other borrowings |
|
159,439 |
|
|
|
1,147 |
|
|
2.86 |
% |
|
|
175,518 |
|
|
|
1,160 |
|
|
2.66 |
% |
|
|
194,659 |
|
|
|
1,099 |
|
|
2.24 |
% |
Junior subordinated debentures and subordinated notes |
|
179,075 |
|
|
|
2,971 |
|
|
6.60 |
% |
|
|
179,178 |
|
|
|
2,961 |
|
|
6.65 |
% |
|
|
182,678 |
|
|
|
2,965 |
|
|
6.44 |
% |
Total borrowings |
|
499,927 |
|
|
|
6,381 |
|
|
5.08 |
% |
|
|
614,245 |
|
|
|
7,742 |
|
|
5.07 |
% |
|
|
538,424 |
|
|
|
6,297 |
|
|
4.64 |
% |
Total funding liabilities |
|
13,818,232 |
|
|
|
60,166 |
|
|
1.73 |
% |
|
|
13,715,643 |
|
|
|
56,592 |
|
|
1.66 |
% |
|
|
13,692,011 |
|
|
|
37,298 |
|
|
1.08 |
% |
Other non-interest-bearing liabilities (2) |
|
311,803 |
|
|
|
|
|
|
|
294,794 |
|
|
|
|
|
|
|
296,578 |
|
|
|
|
|
|||||||||
Total liabilities |
|
14,130,035 |
|
|
|
|
|
|
|
14,010,437 |
|
|
|
|
|
|
|
13,988,589 |
|
|
|
|
|
|||||||||
Shareholders’ equity |
|
1,728,417 |
|
|
|
|
|
|
|
1,651,294 |
|
|
|
|
|
|
|
1,557,578 |
|
|
|
|
|
|||||||||
Total liabilities and shareholders’ equity |
$ |
15,858,452 |
|
|
|
|
|
|
$ |
15,661,731 |
|
|
|
|
|
|
$ |
15,546,167 |
|
|
|
|
|
|||||||||
Net interest income/rate spread (tax equivalent) |
|
|
$ |
139,008 |
|
|
3.60 |
% |
|
|
|
$ |
135,735 |
|
|
3.59 |
% |
|
|
|
$ |
144,748 |
|
|
3.86 |
% |
||||||
Net interest margin (tax equivalent) |
|
|
|
|
3.72 |
% |
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
3.93 |
% |
||||||||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Adjustments for taxable equivalent basis |
|
|
|
(3,333 |
) |
|
|
|
|
|
|
(3,189 |
) |
|
|
|
|
|
|
(2,982 |
) |
|
|
|||||||||
Net interest income and margin, as reported |
|
|
$ |
135,675 |
|
|
3.63 |
% |
|
|
|
$ |
132,546 |
|
|
3.62 |
% |
|
|
|
$ |
141,766 |
|
|
3.85 |
% |
||||||
Additional Key Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Return on average assets |
|
|
|
|
1.13 |
% |
|
|
|
|
|
1.02 |
% |
|
|
|
|
|
1.17 |
% |
||||||||||||
Adjusted return on average assets (4) |
|
|
|
|
1.13 |
% |
|
|
|
|
|
1.04 |
% |
|
|
|
|
|
1.25 |
% |
||||||||||||
Return on average equity |
|
|
|
|
10.39 |
% |
|
|
|
|
|
9.69 |
% |
|
|
|
|
|
11.68 |
% |
||||||||||||
Adjusted return on average equity (4) |
|
|
|
|
10.39 |
% |
|
|
|
|
|
9.83 |
% |
|
|
|
|
|
12.51 |
% |
||||||||||||
Average equity/average assets |
|
|
|
|
10.90 |
% |
|
|
|
|
|
10.54 |
% |
|
|
|
|
|
10.02 |
% |
||||||||||||
Average interest-earning assets/average interest-bearing liabilities |
|
|
|
|
161.42 |
% |
|
|
|
|
|
162.27 |
% |
|
|
|
|
|
174.47 |
% |
||||||||||||
Average interest-earning assets/average funding liabilities |
|
|
|
|
107.66 |
% |
|
|
|
|
|
107.43 |
% |
|
|
|
|
|
106.73 |
% |
||||||||||||
Non-interest income/average assets |
|
|
|
|
0.45 |
% |
|
|
|
|
|
0.44 |
% |
|
|
|
|
|
0.32 |
% |
||||||||||||
Non-interest expense/average assets |
|
|
|
|
2.42 |
% |
|
|
|
|
|
2.52 |
% |
|
|
|
|
|
2.45 |
% |
||||||||||||
Efficiency ratio |
|
|
|
|
62.63 |
% |
|
|
|
|
|
65.53 |
% |
|
|
|
|
|
62.10 |
% |
||||||||||||
Adjusted efficiency ratio (4) |
|
|
|
|
61.27 |
% |
|
|
|
|
|
63.60 |
% |
|
|
|
|
|
59.00 |
% |
(1) |
Average balances include loans accounted for on a nonaccrual basis and accruing loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
|
(2) |
Average other non-interest-bearing liabilities include fair value adjustments related to junior subordinated debentures. |
|
(3) |
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was |
|
(4) |
Represent non-GAAP financial measures. See, “Additional Financial Information - Non-GAAP Financial Measures” on the final two pages of this press release for a reconciliation of non-GAAP financial measures. |
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
(rates / ratios annualized) |
|||||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD |
Nine Months Ended |
||||||||||||||||||||
|
Sep 30, 2024 |
|
Sep 30, 2023 |
||||||||||||||||||
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost (3) |
|
Average Balance |
|
Interest and Dividends |
|
Yield/Cost (3) |
||||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Held for sale loans |
$ |
16,225 |
|
$ |
826 |
|
|
6.80 |
% |
|
$ |
55,157 |
|
$ |
2,174 |
|
|
5.27 |
% |
||
Mortgage loans |
|
9,036,256 |
|
|
|
390,011 |
|
|
5.77 |
% |
|
|
8,427,034 |
|
|
|
337,282 |
|
|
5.35 |
% |
Commercial/agricultural loans |
|
1,861,182 |
|
|
|
95,155 |
|
|
6.83 |
% |
|
|
1,768,685 |
|
|
|
82,803 |
|
|
6.26 |
% |
Consumer and other loans |
|
131,676 |
|
|
|
6,506 |
|
|
6.60 |
% |
|
|
138,246 |
|
|
|
6,478 |
|
|
6.26 |
% |
Total loans (1) |
|
11,045,339 |
|
|
|
492,498 |
|
|
5.96 |
% |
|
|
10,389,122 |
|
|
|
428,737 |
|
|
5.52 |
% |
Mortgage-backed securities |
|
2,674,555 |
|
|
|
50,424 |
|
|
2.52 |
% |
|
|
2,971,124 |
|
|
|
55,386 |
|
|
2.49 |
% |
Other securities |
|
962,183 |
|
|
|
33,802 |
|
|
4.69 |
% |
|
|
1,220,074 |
|
|
|
40,155 |
|
|
4.40 |
% |
Interest-bearing deposits with banks |
|
51,630 |
|
|
|
1,530 |
|
|
3.96 |
% |
|
|
47,330 |
|
|
|
1,694 |
|
|
4.79 |
% |
FHLB stock |
|
18,931 |
|
|
|
986 |
|
|
6.96 |
% |
|
|
18,772 |
|
|
|
632 |
|
|
4.50 |
% |
Total investment securities |
|
3,707,299 |
|
|
|
86,742 |
|
|
3.13 |
% |
|
|
4,257,300 |
|
|
|
97,867 |
|
|
3.07 |
% |
Total interest-earning assets |
|
14,752,638 |
|
|
|
579,240 |
|
|
5.24 |
% |
|
|
14,646,422 |
|
|
|
526,604 |
|
|
4.81 |
% |
Non-interest-earning assets |
|
950,588 |
|
|
|
|
|
|
|
930,934 |
|
|
|
|
|
||||||
Total assets |
$ |
15,703,226 |
|
|
|
|
|
|
$ |
15,577,356 |
|
|
|
|
|
||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing checking accounts |
$ |
2,185,796 |
|
|
|
23,834 |
|
|
1.46 |
% |
|
$ |
1,874,518 |
|
|
|
7,427 |
|
|
0.53 |
% |
Savings accounts |
|
3,161,266 |
|
|
|
51,778 |
|
|
2.19 |
% |
|
|
2,604,089 |
|
|
|
15,179 |
|
|
0.78 |
% |
Money market accounts |
|
1,648,208 |
|
|
|
26,696 |
|
|
2.16 |
% |
|
|
1,971,514 |
|
|
|
16,445 |
|
|
1.12 |
% |
Certificates of deposit |
|
1,514,982 |
|
|
|
44,940 |
|
|
3.96 |
% |
|
|
1,118,874 |
|
|
|
21,733 |
|
|
2.60 |
% |
Total interest-bearing deposits |
|
8,510,252 |
|
|
|
147,248 |
|
|
2.31 |
% |
|
|
7,568,995 |
|
|
|
60,784 |
|
|
1.07 |
% |
Non-interest-bearing deposits |
|
4,649,297 |
|
|
|
— |
|
|
— |
% |
|
|
5,571,896 |
|
|
|
— |
|
|
— |
% |
Total deposits |
|
13,159,549 |
|
|
|
147,248 |
|
|
1.49 |
% |
|
|
13,140,891 |
|
|
|
60,784 |
|
|
0.62 |
% |
Other interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
FHLB advances |
|
211,135 |
|
|
|
8,856 |
|
|
5.60 |
% |
|
|
219,461 |
|
|
|
8,654 |
|
|
5.27 |
% |
Other borrowings |
|
171,838 |
|
|
|
3,482 |
|
|
2.71 |
% |
|
|
203,932 |
|
|
|
2,251 |
|
|
1.48 |
% |
Junior subordinated debentures and subordinated notes |
|
179,941 |
|
|
|
8,901 |
|
|
6.61 |
% |
|
|
186,964 |
|
|
|
8,549 |
|
|
6.11 |
% |
Total borrowings |
|
562,914 |
|
|
|
21,239 |
|
|
5.04 |
% |
|
|
610,357 |
|
|
|
19,454 |
|
|
4.26 |
% |
Total funding liabilities |
|
13,722,463 |
|
|
|
168,487 |
|
|
1.64 |
% |
|
|
13,751,248 |
|
|
|
80,238 |
|
|
0.78 |
% |
Other non-interest-bearing liabilities (2) |
|
303,367 |
|
|
|
|
|
|
|
289,558 |
|
|
|
|
|
||||||
Total liabilities |
|
14,025,830 |
|
|
|
|
|
|
|
14,040,806 |
|
|
|
|
|
||||||
Shareholders’ equity |
|
1,677,396 |
|
|
|
|
|
|
|
1,536,550 |
|
|
|
|
|
||||||
Total liabilities and shareholders’ equity |
$ |
15,703,226 |
|
|
|
|
|
|
$ |
15,577,356 |
|
|
|
|
|
||||||
Net interest income/rate spread (tax equivalent) |
|
|
$ |
410,753 |
|
|
3.60 |
% |
|
|
|
$ |
446,366 |
|
|
4.03 |
% |
||||
Net interest margin (tax equivalent) |
|
|
|
|
3.72 |
% |
|
|
|
|
|
4.07 |
% |
||||||||
Reconciliation to reported net interest income: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjustments for taxable equivalent basis |
|
|
|
(9,573 |
) |
|
|
|
|
|
|
(8,770 |
) |
|
|
||||||
Net interest income and margin, as reported |
|
|
$ |
401,180 |
|
|
3.63 |
% |
|
|
|
$ |
437,596 |
|
|
3.99 |
% |
||||
Additional Key Financial Ratios: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets |
|
|
|
|
1.04 |
% |
|
|
|
|
|
1.21 |
% |
||||||||
Adjusted return on average assets (4) |
|
|
|
|
1.08 |
% |
|
|
|
|
|
1.34 |
% |
||||||||
Return on average equity |
|
|
|
|
9.76 |
% |
|
|
|
|
|
12.27 |
% |
||||||||
Adjusted return on average equity (4) |
|
|
|
|
10.16 |
% |
|
|
|
|
|
13.60 |
% |
||||||||
Average equity/average assets |
|
|
|
|
10.68 |
% |
|
|
|
|
|
9.86 |
% |
||||||||
Average interest-earning assets/average interest-bearing liabilities |
|
|
|
|
162.60 |
% |
|
|
|
|
|
179.07 |
% |
||||||||
Average interest-earning assets/average funding liabilities |
|
|
|
|
107.51 |
% |
|
|
|
|
|
106.51 |
% |
||||||||
Non-interest income/average assets |
|
|
|
|
0.40 |
% |
|
|
|
|
|
0.26 |
% |
||||||||
Non-interest expense/average assets |
|
|
|
|
2.48 |
% |
|
|
|
|
|
2.45 |
% |
||||||||
Efficiency ratio |
|
|
|
|
65.19 |
% |
|
|
|
|
|
61.10 |
% |
||||||||
Adjusted efficiency ratio (4) |
|
|
|
|
62.84 |
% |
|
|
|
|
|
57.19 |
% |
(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) |
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 |
|
Nine Months Ended |
||||||||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
|
Sep 30, 2024 |
|
Sep 30, 2023 |
||||||||||
Net interest income (GAAP) |
$ |
135,675 |
|
|
$ |
132,546 |
|
$ |
141,766 |
|
$ |
401,180 |
|
$ |
437,596 |
||||
Non-interest income (GAAP) |
|
18,063 |
|
|
|
17,199 |
|
|
|
12,658 |
|
|
|
46,853 |
|
|
|
30,357 |
|
Total revenue (GAAP) |
|
153,738 |
|
|
|
149,745 |
|
|
|
154,424 |
|
|
|
448,033 |
|
|
|
467,953 |
|
Exclude: Net loss on sale of securities |
|
— |
|
|
|
562 |
|
|
|
2,657 |
|
|
|
5,465 |
|
|
|
14,436 |
|
Net change in valuation of financial instruments carried at fair value |
|
(39 |
) |
|
|
190 |
|
|
|
654 |
|
|
|
1,143 |
|
|
|
4,357 |
|
Adjusted revenue (non-GAAP) |
$ |
153,699 |
|
|
$ |
150,497 |
|
|
$ |
157,735 |
|
|
$ |
454,641 |
|
|
$ |
486,746 |
|
ADJUSTED EARNINGS |
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
|
Sep 30, 2024 |
|
Sep 30, 2023 |
||||||||||
Net income (GAAP) |
$ |
45,153 |
|
|
$ |
39,795 |
|
|
$ |
45,854 |
|
|
$ |
122,507 |
|
|
$ |
141,000 |
|
Exclude: Net loss on sale of securities |
|
— |
|
|
|
562 |
|
|
|
2,657 |
|
|
|
5,465 |
|
|
|
14,436 |
|
Net change in valuation of financial instruments carried at fair value |
|
(39 |
) |
|
|
190 |
|
|
|
654 |
|
|
|
1,143 |
|
|
|
4,357 |
|
Banner Forward expenses (1) |
|
— |
|
|
|
— |
|
|
|
996 |
|
|
|
— |
|
|
|
1,334 |
|
Related net tax expense (benefit) |
|
9 |
|
|
|
(180 |
) |
|
|
(1,033 |
) |
|
|
(1,586 |
) |
|
|
(4,830 |
) |
Total adjusted earnings (non-GAAP) |
$ |
45,123 |
|
|
$ |
40,367 |
|
|
$ |
49,128 |
|
|
$ |
127,529 |
|
|
$ |
156,297 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted earnings per share (GAAP) |
$ |
1.30 |
|
|
$ |
1.15 |
|
|
$ |
1.33 |
|
|
$ |
3.54 |
|
|
$ |
4.09 |
|
Diluted adjusted earnings per share (non-GAAP) |
$ |
1.30 |
|
|
$ |
1.17 |
|
|
$ |
1.43 |
|
|
$ |
3.69 |
|
|
$ |
4.54 |
|
Return on average assets |
|
1.13 |
% |
|
|
1.02 |
% |
|
|
1.17 |
% |
|
|
1.04 |
% |
|
|
1.21 |
% |
Adjusted return on average assets (2) |
|
1.13 |
% |
|
|
1.04 |
% |
|
|
1.25 |
% |
|
|
1.08 |
% |
|
|
1.34 |
% |
Return on average equity |
|
10.39 |
% |
|
|
9.69 |
% |
|
|
11.68 |
% |
|
|
9.76 |
% |
|
|
12.27 |
% |
Adjusted return on average equity (3) |
|
10.39 |
% |
|
|
9.83 |
% |
|
|
12.51 |
% |
|
|
10.16 |
% |
|
|
13.60 |
% |
(1) |
Included in miscellaneous expenses in results of operations. |
|
(2) |
Adjusted earnings (non-GAAP) divided by average assets. |
|
(3) |
Adjusted earnings (non-GAAP) divided by average equity. |
ADDITIONAL FINANCIAL INFORMATION |
||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||
ADJUSTED EFFICIENCY RATIO |
|
Quarters Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Sep 30, 2023 |
|
Sep 30, 2024 |
|
Sep 30, 2023 |
||||||||||
Non-interest expense (GAAP) |
|
$ |
96,291 |
|
|
$ |
98,128 |
|
|
$ |
95,891 |
|
|
$ |
292,060 |
|
|
$ |
285,917 |
|
Exclude: Banner Forward expenses (1) |
|
|
— |
|
|
|
— |
|
|
|
(996 |
) |
|
|
— |
|
|
|
(1,334 |
) |
CDI amortization |
|
|
(590 |
) |
|
|
(724 |
) |
|
|
(857 |
) |
|
|
(2,037 |
) |
|
|
(2,898 |
) |
State/municipal tax expense |
|
|
(1,432 |
) |
|
|
(1,394 |
) |
|
|
(1,359 |
) |
|
|
(4,130 |
) |
|
|
(3,888 |
) |
REO operations |
|
|
(103 |
) |
|
|
(297 |
) |
|
|
383 |
|
|
|
(180 |
) |
|
|
585 |
|
Adjusted non-interest expense (non-GAAP) |
|
$ |
94,166 |
|
|
$ |
95,713 |
|
|
$ |
93,062 |
|
|
$ |
285,713 |
|
|
$ |
278,382 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income (GAAP) |
|
$ |
135,675 |
|
|
$ |
132,546 |
|
|
$ |
141,766 |
|
|
$ |
401,180 |
|
|
$ |
437,596 |
|
Non-interest income (GAAP) |
|
|
18,063 |
|
|
|
17,199 |
|
|
|
12,658 |
|
|
|
46,853 |
|
|
|
30,357 |
|
Total revenue (GAAP) |
|
|
153,738 |
|
|
|
149,745 |
|
|
|
154,424 |
|
|
|
448,033 |
|
|
|
467,953 |
|
Exclude: Net loss on sale of securities |
|
|
— |
|
|
|
562 |
|
|
|
2,657 |
|
|
|
5,465 |
|
|
|
14,436 |
|
Net change in valuation of financial instruments carried at fair value |
|
|
(39 |
) |
|
|
190 |
|
|
|
654 |
|
|
|
1,143 |
|
|
|
4,357 |
|
Adjusted revenue (non-GAAP) |
|
$ |
153,699 |
|
|
$ |
150,497 |
|
|
$ |
157,735 |
|
|
$ |
454,641 |
|
|
$ |
486,746 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency ratio (GAAP) |
|
|
62.63 |
% |
|
|
65.53 |
% |
|
|
62.10 |
% |
|
|
65.19 |
% |
|
|
61.10 |
% |
Adjusted efficiency ratio (non-GAAP) (2) |
|
|
61.27 |
% |
|
|
63.60 |
% |
|
|
59.00 |
% |
|
|
62.84 |
% |
|
|
57.19 |
% |
(1) |
Included in miscellaneous expenses in results of operations. |
|
(2) |
Adjusted non-interest expense (non-GAAP) divided by adjusted revenue. |
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
|
|
|
||||||||
|
|
Sep 30, 2024 |
|
Jun 30, 2024 |
|
Dec 31, 2023 |
|
Sep 30, 2023 |
||||||||
Shareholders’ equity (GAAP) |
|
$ |
1,793,721 |
|
|
$ |
1,690,766 |
|
|
$ |
1,652,691 |
|
|
$ |
1,520,607 |
|
Exclude goodwill and other intangible assets, net |
|
|
376,768 |
|
|
|
377,358 |
|
|
|
378,805 |
|
|
|
379,663 |
|
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,416,953 |
|
|
$ |
1,313,408 |
|
|
$ |
1,273,886 |
|
|
$ |
1,140,944 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total assets (GAAP) |
|
$ |
16,188,676 |
|
|
$ |
15,816,194 |
|
|
$ |
15,670,391 |
|
|
$ |
15,507,880 |
|
Exclude goodwill and other intangible assets, net |
|
|
376,768 |
|
|
|
377,358 |
|
|
|
378,805 |
|
|
|
379,663 |
|
Total tangible assets (non-GAAP) |
|
$ |
15,811,908 |
|
|
$ |
15,438,836 |
|
|
$ |
15,291,586 |
|
|
$ |
15,128,217 |
|
Common shareholders’ equity to total assets (GAAP) |
|
|
11.08 |
% |
|
|
10.69 |
% |
|
|
10.55 |
% |
|
|
9.81 |
% |
Tangible common shareholders’ equity to tangible assets (non-GAAP) |
|
|
8.96 |
% |
|
|
8.51 |
% |
|
|
8.33 |
% |
|
|
7.54 |
% |
|
|
|
|
|
|
|
|
|
||||||||
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE |
|
|
|
|
|
|
|
|
||||||||
Shareholders’ equity (GAAP) |
|
$ |
1,793,721 |
|
|
$ |
1,690,766 |
|
|
$ |
1,652,691 |
|
|
$ |
1,520,607 |
|
Tangible common shareholders’ equity (non-GAAP) |
|
$ |
1,416,953 |
|
|
$ |
1,313,408 |
|
|
$ |
1,273,886 |
|
|
$ |
1,140,944 |
|
Common shares outstanding at end of period |
|
|
34,456,688 |
|
|
|
34,455,752 |
|
|
|
34,348,369 |
|
|
|
34,345,949 |
|
Common shareholders’ equity (book value) per share (GAAP) |
|
$ |
52.06 |
|
|
$ |
49.07 |
|
|
$ |
48.12 |
|
|
$ |
44.27 |
|
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP) |
|
$ |
41.12 |
|
|
$ |
38.12 |
|
|
$ |
37.09 |
|
|
$ |
33.22 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016545160/en/
MARK J. GRESCOVICH, PRESIDENT & CEO
ROBERT G. BUTTERFIELD, CFO
(509) 527-3636
Source: Banner Corporation
FAQ
What was Banner 's net income for Q3 2024?
What is Banner 's net interest income for Q3 2024?
What dividend did Banner declare for Q3 2024?
How did Banner 's net loans change in Q3 2024?
What was Banner 's net interest margin for Q3 2024?