Banner Corporation's Third Quarter Profits Increase 24% to $5.2 Million as Loans Increase 17%, Margins Expand and Loan Quality Improves
Banner Corporation the parent company of Banner Bank, today reported that improved net interest income and continued growth in loans and deposits contributed to a 24% increase in profits for the third quarter of 2004. For the quarter ended September 30, 2004, net income was $5.2 million, or $0.44 per diluted share, compared to $4.2 million, or $0.37 per diluted share, for the same period a year earlier. For the first nine months of 2004, net income grew 20% to $14.1 million, or $1.20 per diluted share, compared to $11.7 million, or $1.05 per diluted share, for the first nine months of 2003.
"We have generated both top and bottom line improvements, with revenues increasing 18%, loans expanding 17% and net income improving 24% from year ago levels," said D. Michael Jones, President and Chief Executive Officer. "We also continue to focus efforts into growing our franchise in key markets. Last week we announced plans to build three new full-service branches in the Boise and Twin Falls markets, which we expect to open during the summer of 2005. These branches complement our existing network and will allow us to deliver improved customer service and convenient locations to new and existing customers. Earlier this year, we opened new offices in Hillsboro, Oregon, Walla Walla, Washington, and Boise and Twin Falls, Idaho. The previously announced purchased branches in Kent, Edmonds and Everett, Washington will also open later this year."
Third quarter revenues (net interest income before the provision for loan losses plus other operating income) increased 18% to $29.9 million, compared to $25.2 million for the same quarter of 2003. For the first nine months, revenues increased 12% to $83.9 million, compared to $74.9 million for the same period of 2003. For the quarter, net interest income before the provision for loan losses increased 28% to $25.1 million, compared to $19.7 million in the third quarter of 2003. For the first nine months of the year, net interest income before the provision for loan losses increased 20% to $71.2 million, compared to $59.1 million in the same period of 2003.
"We experienced improved performance in our net interest margin during the third quarter, aided by the collection of more than $600,000 of delinquent interest on non-accrual loans, as strong loan growth and increasing asset yields more than offset recent pressures on funding costs," said Jones. Banner's net interest margin increased 44 basis points to 3.79% for the quarter ended September 30, 2004, from 3.35% in the third quarter of 2003 and 14 basis points from 3.65% in the quarter ended June 30, 2004. While funding costs increased modestly, up six basis points compared to the previous quarter, they remained significantly -- 21 basis points -- below the same quarter a year earlier. By contrast, asset yields were higher by 20 and 21 basis points, respectively, compared to the quarters ended June 30, 2004 and September 30, 2003. For the first nine months of 2004, net interest margin increased to 3.71%, from 3.52% in the first nine months of 2003, as substantially lower funding costs led to an improved net interest rate spread.
Income from fees and service charges increased 13% for the quarter and 12% for the first nine months compared to the respective periods last year. Deposit fees and other service charges increased to $2.1 million in the third quarter, compared to $1.9 million for the third quarter of 2003, reflecting core deposit growth. Mortgage banking operations declined from the third quarter a year ago when refinancing activity was at higher levels. For the third quarter of 2004, income from mortgage banking operations, including loan servicing fees, was $2.1 million compared to $3.2 million for the third quarter of 2003. Total other operating income for the quarter ended September 30, 2004 was $4.8 million compared to $5.5 million for the same quarter last year, declining principally as a result of the decrease in mortgage banking operations.
"Over the last nine months, we have been building our franchise through the addition of four branches, three lending centers and one operations center. Hiring personnel to staff this expansion and increased occupancy costs have contributed to a higher level of non-interest expenses," said Jones. "In addition, the continued legal and collection costs associated with certain non-performing assets, and expenses related to compliance with the Sarbanes-Oxley Act also added to operating expense in the period." Other operating expense was $20.9 million for the quarter ended September 30, 2004, compared to $17.9 million in the third quarter of 2003. For the first nine months of the year, other operating expense was $59.3 million compared to $52.2 million for the first nine months of 2003.
Net loans increased 17%, to $2.0 billion at September 30, 2004, from $1.7 billion a year ago. "Our lending personnel have generated steady growth in commercial and multifamily real estate loans, construction and land loans, and agricultural business loans," said Jones. "Commercial and multifamily real estate and construction and land development loans have increased 20% from year ago levels and now represent 55% of the loan portfolio. Commercial business and agricultural lending has increased 16% over the past twelve months and now represents 26% of the total portfolio."
Assets reached record levels, closing the quarter at $2.8 billion, a 13% increase from $2.5 billion a year earlier. Deposits grew 12%, to $1.9 billion, compared to $1.7 billion at September 30, 2003, including a 13% increase in non-interest-bearing deposits. "Strong deposit growth reflecting our significant commitment to growing our franchise continues to be an important element of our strategic plan which is producing improving results," said Jones. Book value per share increased to $18.77 at September 30, 2004, from $18.18 per share a year earlier. Tangible book value increased to $15.53 per share at September 30, 2004, compared to $14.83 a year earlier.
"Our key credit quality ratios have improved significantly, with a 25% reduction in non-performing assets since the first of the year," continued Jones. "Net charge-offs to average loans outstanding, at five basis points year-to-date, also shows dramatic improvement from 38 basis points at the same time last year." Non-performing assets were $23.7 million, or 0.84% of total assets, at September 30, 2004, a 25% improvement from $31.6 million, or 1.26% of total assets, at September 30, 2003. The loan loss provision for the third quarter of 2004 was $1.4 million, which is about level with the provision in the second quarter and the provision for the third quarter a year ago. At September 30, 2004, the allowance for loan losses totaled $29.4 million, representing 1.48% of total loans outstanding.
Banner Corporation is the parent company of Banner Bank, a commercial bank which operates a total of 46 branch offices and twelve loan offices in 23 counties in Washington, Oregon and Idaho. Banner Bank serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.
"We have generated both top and bottom line improvements, with revenues increasing 18%, loans expanding 17% and net income improving 24% from year ago levels," said D. Michael Jones, President and Chief Executive Officer. "We also continue to focus efforts into growing our franchise in key markets. Last week we announced plans to build three new full-service branches in the Boise and Twin Falls markets, which we expect to open during the summer of 2005. These branches complement our existing network and will allow us to deliver improved customer service and convenient locations to new and existing customers. Earlier this year, we opened new offices in Hillsboro, Oregon, Walla Walla, Washington, and Boise and Twin Falls, Idaho. The previously announced purchased branches in Kent, Edmonds and Everett, Washington will also open later this year."
Third quarter revenues (net interest income before the provision for loan losses plus other operating income) increased 18% to $29.9 million, compared to $25.2 million for the same quarter of 2003. For the first nine months, revenues increased 12% to $83.9 million, compared to $74.9 million for the same period of 2003. For the quarter, net interest income before the provision for loan losses increased 28% to $25.1 million, compared to $19.7 million in the third quarter of 2003. For the first nine months of the year, net interest income before the provision for loan losses increased 20% to $71.2 million, compared to $59.1 million in the same period of 2003.
"We experienced improved performance in our net interest margin during the third quarter, aided by the collection of more than $600,000 of delinquent interest on non-accrual loans, as strong loan growth and increasing asset yields more than offset recent pressures on funding costs," said Jones. Banner's net interest margin increased 44 basis points to 3.79% for the quarter ended September 30, 2004, from 3.35% in the third quarter of 2003 and 14 basis points from 3.65% in the quarter ended June 30, 2004. While funding costs increased modestly, up six basis points compared to the previous quarter, they remained significantly -- 21 basis points -- below the same quarter a year earlier. By contrast, asset yields were higher by 20 and 21 basis points, respectively, compared to the quarters ended June 30, 2004 and September 30, 2003. For the first nine months of 2004, net interest margin increased to 3.71%, from 3.52% in the first nine months of 2003, as substantially lower funding costs led to an improved net interest rate spread.
Income from fees and service charges increased 13% for the quarter and 12% for the first nine months compared to the respective periods last year. Deposit fees and other service charges increased to $2.1 million in the third quarter, compared to $1.9 million for the third quarter of 2003, reflecting core deposit growth. Mortgage banking operations declined from the third quarter a year ago when refinancing activity was at higher levels. For the third quarter of 2004, income from mortgage banking operations, including loan servicing fees, was $2.1 million compared to $3.2 million for the third quarter of 2003. Total other operating income for the quarter ended September 30, 2004 was $4.8 million compared to $5.5 million for the same quarter last year, declining principally as a result of the decrease in mortgage banking operations.
"Over the last nine months, we have been building our franchise through the addition of four branches, three lending centers and one operations center. Hiring personnel to staff this expansion and increased occupancy costs have contributed to a higher level of non-interest expenses," said Jones. "In addition, the continued legal and collection costs associated with certain non-performing assets, and expenses related to compliance with the Sarbanes-Oxley Act also added to operating expense in the period." Other operating expense was $20.9 million for the quarter ended September 30, 2004, compared to $17.9 million in the third quarter of 2003. For the first nine months of the year, other operating expense was $59.3 million compared to $52.2 million for the first nine months of 2003.
Net loans increased 17%, to $2.0 billion at September 30, 2004, from $1.7 billion a year ago. "Our lending personnel have generated steady growth in commercial and multifamily real estate loans, construction and land loans, and agricultural business loans," said Jones. "Commercial and multifamily real estate and construction and land development loans have increased 20% from year ago levels and now represent 55% of the loan portfolio. Commercial business and agricultural lending has increased 16% over the past twelve months and now represents 26% of the total portfolio."
Assets reached record levels, closing the quarter at $2.8 billion, a 13% increase from $2.5 billion a year earlier. Deposits grew 12%, to $1.9 billion, compared to $1.7 billion at September 30, 2003, including a 13% increase in non-interest-bearing deposits. "Strong deposit growth reflecting our significant commitment to growing our franchise continues to be an important element of our strategic plan which is producing improving results," said Jones. Book value per share increased to $18.77 at September 30, 2004, from $18.18 per share a year earlier. Tangible book value increased to $15.53 per share at September 30, 2004, compared to $14.83 a year earlier.
"Our key credit quality ratios have improved significantly, with a 25% reduction in non-performing assets since the first of the year," continued Jones. "Net charge-offs to average loans outstanding, at five basis points year-to-date, also shows dramatic improvement from 38 basis points at the same time last year." Non-performing assets were $23.7 million, or 0.84% of total assets, at September 30, 2004, a 25% improvement from $31.6 million, or 1.26% of total assets, at September 30, 2003. The loan loss provision for the third quarter of 2004 was $1.4 million, which is about level with the provision in the second quarter and the provision for the third quarter a year ago. At September 30, 2004, the allowance for loan losses totaled $29.4 million, representing 1.48% of total loans outstanding.
Banner Corporation is the parent company of Banner Bank, a commercial bank which operates a total of 46 branch offices and twelve loan offices in 23 counties in Washington, Oregon and Idaho. Banner Bank serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.
Banner Corporation the parent company of Banner Bank, today reported that improved net interest income and continued growth in loans and deposits contributed to a 24% increase in profits for the third quarter of 2004. For the quarter ended September 30, 2004, net income was $5.2 million, or $0.44 per diluted share, compared to $4.2 million, or $0.37 per diluted share, for the same period a year earlier. For the first nine months of 2004, net income grew 20% to $14.1 million, or $1.20 per diluted share, compared to $11.7 million, or $1.05 per diluted share, for the first nine months of 2003.
"We have generated both top and bottom line improvements, with revenues increasing 18%, loans expanding 17% and net income improving 24% from year ago levels," said D. Michael Jones, President and Chief Executive Officer. "We also continue to focus efforts into growing our franchise in key markets. Last week we announced plans to build three new full-service branches in the Boise and Twin Falls markets, which we expect to open during the summer of 2005. These branches complement our existing network and will allow us to deliver improved customer service and convenient locations to new and existing customers. Earlier this year, we opened new offices in Hillsboro, Oregon, Walla Walla, Washington, and Boise and Twin Falls, Idaho. The previously announced purchased branches in Kent, Edmonds and Everett, Washington will also open later this year."
Third quarter revenues (net interest income before the provision for loan losses plus other operating income) increased 18% to $29.9 million, compared to $25.2 million for the same quarter of 2003. For the first nine months, revenues increased 12% to $83.9 million, compared to $74.9 million for the same period of 2003. For the quarter, net interest income before the provision for loan losses increased 28% to $25.1 million, compared to $19.7 million in the third quarter of 2003. For the first nine months of the year, net interest income before the provision for loan losses increased 20% to $71.2 million, compared to $59.1 million in the same period of 2003.
"We experienced improved performance in our net interest margin during the third quarter, aided by the collection of more than $600,000 of delinquent interest on non-accrual loans, as strong loan growth and increasing asset yields more than offset recent pressures on funding costs," said Jones. Banner's net interest margin increased 44 basis points to 3.79% for the quarter ended September 30, 2004, from 3.35% in the third quarter of 2003 and 14 basis points from 3.65% in the quarter ended June 30, 2004. While funding costs increased modestly, up six basis points compared to the previous quarter, they remained significantly -- 21 basis points -- below the same quarter a year earlier. By contrast, asset yields were higher by 20 and 21 basis points, respectively, compared to the quarters ended June 30, 2004 and September 30, 2003. For the first nine months of 2004, net interest margin increased to 3.71%, from 3.52% in the first nine months of 2003, as substantially lower funding costs led to an improved net interest rate spread.
Income from fees and service charges increased 13% for the quarter and 12% for the first nine months compared to the respective periods last year. Deposit fees and other service charges increased to $2.1 million in the third quarter, compared to $1.9 million for the third quarter of 2003, reflecting core deposit growth. Mortgage banking operations declined from the third quarter a year ago when refinancing activity was at higher levels. For the third quarter of 2004, income from mortgage banking operations, including loan servicing fees, was $2.1 million compared to $3.2 million for the third quarter of 2003. Total other operating income for the quarter ended September 30, 2004 was $4.8 million compared to $5.5 million for the same quarter last year, declining principally as a result of the decrease in mortgage banking operations.
"Over the last nine months, we have been building our franchise through the addition of four branches, three lending centers and one operations center. Hiring personnel to staff this expansion and increased occupancy costs have contributed to a higher level of non-interest expenses," said Jones. "In addition, the continued legal and collection costs associated with certain non-performing assets, and expenses related to compliance with the Sarbanes-Oxley Act also added to operating expense in the period." Other operating expense was $20.9 million for the quarter ended September 30, 2004, compared to $17.9 million in the third quarter of 2003. For the first nine months of the year, other operating expense was $59.3 million compared to $52.2 million for the first nine months of 2003.
Net loans increased 17%, to $2.0 billion at September 30, 2004, from $1.7 billion a year ago. "Our lending personnel have generated steady growth in commercial and multifamily real estate loans, construction and land loans, and agricultural business loans," said Jones. "Commercial and multifamily real estate and construction and land development loans have increased 20% from year ago levels and now represent 55% of the loan portfolio. Commercial business and agricultural lending has increased 16% over the past twelve months and now represents 26% of the total portfolio."
Assets reached record levels, closing the quarter at $2.8 billion, a 13% increase from $2.5 billion a year earlier. Deposits grew 12%, to $1.9 billion, compared to $1.7 billion at September 30, 2003, including a 13% increase in non-interest-bearing deposits. "Strong deposit growth reflecting our significant commitment to growing our franchise continues to be an important element of our strategic plan which is producing improving results," said Jones. Book value per share increased to $18.77 at September 30, 2004, from $18.18 per share a year earlier. Tangible book value increased to $15.53 per share at September 30, 2004, compared to $14.83 a year earlier.
"Our key credit quality ratios have improved significantly, with a 25% reduction in non-performing assets since the first of the year," continued Jones. "Net charge-offs to average loans outstanding, at five basis points year-to-date, also shows dramatic improvement from 38 basis points at the same time last year." Non-performing assets were $23.7 million, or 0.84% of total assets, at September 30, 2004, a 25% improvement from $31.6 million, or 1.26% of total assets, at September 30, 2003. The loan loss provision for the third quarter of 2004 was $1.4 million, which is about level with the provision in the second quarter and the provision for the third quarter a year ago. At September 30, 2004, the allowance for loan losses totaled $29.4 million, representing 1.48% of total loans outstanding.
Banner Corporation is the parent company of Banner Bank, a commercial bank which operates a total of 46 branch offices and twelve loan offices in 23 counties in Washington, Oregon and Idaho. Banner Bank serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.
"We have generated both top and bottom line improvements, with revenues increasing 18%, loans expanding 17% and net income improving 24% from year ago levels," said D. Michael Jones, President and Chief Executive Officer. "We also continue to focus efforts into growing our franchise in key markets. Last week we announced plans to build three new full-service branches in the Boise and Twin Falls markets, which we expect to open during the summer of 2005. These branches complement our existing network and will allow us to deliver improved customer service and convenient locations to new and existing customers. Earlier this year, we opened new offices in Hillsboro, Oregon, Walla Walla, Washington, and Boise and Twin Falls, Idaho. The previously announced purchased branches in Kent, Edmonds and Everett, Washington will also open later this year."
Third quarter revenues (net interest income before the provision for loan losses plus other operating income) increased 18% to $29.9 million, compared to $25.2 million for the same quarter of 2003. For the first nine months, revenues increased 12% to $83.9 million, compared to $74.9 million for the same period of 2003. For the quarter, net interest income before the provision for loan losses increased 28% to $25.1 million, compared to $19.7 million in the third quarter of 2003. For the first nine months of the year, net interest income before the provision for loan losses increased 20% to $71.2 million, compared to $59.1 million in the same period of 2003.
"We experienced improved performance in our net interest margin during the third quarter, aided by the collection of more than $600,000 of delinquent interest on non-accrual loans, as strong loan growth and increasing asset yields more than offset recent pressures on funding costs," said Jones. Banner's net interest margin increased 44 basis points to 3.79% for the quarter ended September 30, 2004, from 3.35% in the third quarter of 2003 and 14 basis points from 3.65% in the quarter ended June 30, 2004. While funding costs increased modestly, up six basis points compared to the previous quarter, they remained significantly -- 21 basis points -- below the same quarter a year earlier. By contrast, asset yields were higher by 20 and 21 basis points, respectively, compared to the quarters ended June 30, 2004 and September 30, 2003. For the first nine months of 2004, net interest margin increased to 3.71%, from 3.52% in the first nine months of 2003, as substantially lower funding costs led to an improved net interest rate spread.
Income from fees and service charges increased 13% for the quarter and 12% for the first nine months compared to the respective periods last year. Deposit fees and other service charges increased to $2.1 million in the third quarter, compared to $1.9 million for the third quarter of 2003, reflecting core deposit growth. Mortgage banking operations declined from the third quarter a year ago when refinancing activity was at higher levels. For the third quarter of 2004, income from mortgage banking operations, including loan servicing fees, was $2.1 million compared to $3.2 million for the third quarter of 2003. Total other operating income for the quarter ended September 30, 2004 was $4.8 million compared to $5.5 million for the same quarter last year, declining principally as a result of the decrease in mortgage banking operations.
"Over the last nine months, we have been building our franchise through the addition of four branches, three lending centers and one operations center. Hiring personnel to staff this expansion and increased occupancy costs have contributed to a higher level of non-interest expenses," said Jones. "In addition, the continued legal and collection costs associated with certain non-performing assets, and expenses related to compliance with the Sarbanes-Oxley Act also added to operating expense in the period." Other operating expense was $20.9 million for the quarter ended September 30, 2004, compared to $17.9 million in the third quarter of 2003. For the first nine months of the year, other operating expense was $59.3 million compared to $52.2 million for the first nine months of 2003.
Net loans increased 17%, to $2.0 billion at September 30, 2004, from $1.7 billion a year ago. "Our lending personnel have generated steady growth in commercial and multifamily real estate loans, construction and land loans, and agricultural business loans," said Jones. "Commercial and multifamily real estate and construction and land development loans have increased 20% from year ago levels and now represent 55% of the loan portfolio. Commercial business and agricultural lending has increased 16% over the past twelve months and now represents 26% of the total portfolio."
Assets reached record levels, closing the quarter at $2.8 billion, a 13% increase from $2.5 billion a year earlier. Deposits grew 12%, to $1.9 billion, compared to $1.7 billion at September 30, 2003, including a 13% increase in non-interest-bearing deposits. "Strong deposit growth reflecting our significant commitment to growing our franchise continues to be an important element of our strategic plan which is producing improving results," said Jones. Book value per share increased to $18.77 at September 30, 2004, from $18.18 per share a year earlier. Tangible book value increased to $15.53 per share at September 30, 2004, compared to $14.83 a year earlier.
"Our key credit quality ratios have improved significantly, with a 25% reduction in non-performing assets since the first of the year," continued Jones. "Net charge-offs to average loans outstanding, at five basis points year-to-date, also shows dramatic improvement from 38 basis points at the same time last year." Non-performing assets were $23.7 million, or 0.84% of total assets, at September 30, 2004, a 25% improvement from $31.6 million, or 1.26% of total assets, at September 30, 2003. The loan loss provision for the third quarter of 2004 was $1.4 million, which is about level with the provision in the second quarter and the provision for the third quarter a year ago. At September 30, 2004, the allowance for loan losses totaled $29.4 million, representing 1.48% of total loans outstanding.
Banner Corporation is the parent company of Banner Bank, a commercial bank which operates a total of 46 branch offices and twelve loan offices in 23 counties in Washington, Oregon and Idaho. Banner Bank serves the Pacific Northwest region with a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans.
posted by zzzzzzzzzzz at
12:39 AM
<< Home