Wednesday, September 12, 2007

Next generation interlibrary loan: not even close to dead

Whenever I hear a powerful story about the impact of library services, I save it. Real-life stories bring richness to the information experience that is impossible to create with facts and figures. At the ILL Conference in 2004, two library users at the University of Colorado in Boulder spoke about their experiences with the library; specifically, with interlibrary loan services. Both speakers were totally engaging. Here are my memories of their stories.

Friedman spoke first. Friedman leads the University of Colorado Friedman Lab as well as being a professor in the Department of Ecology and Evolutionary Biology. His primary research interests are the origin and early evolution of flowering plants; heterochrony and plant developmental evolution; cell cycle activity during gametogenesis and fertilization; evolution of multicellularity; and anatomical complexity and symbioses in early land plants. Friedman has requested hundreds, if not thousands, of interlibrary loans; indeed, he has blown through any library rules and regulations about the number of ILLs one may request. He is very particular, too. Since he is collecting and converting to electronic format the earliest works on evolution, he specifically borrows the original copies of some of the most important works in the field. He exhorts the ILL department of the CU library to borrow the original copies of Charles Darwin's books and notes, original lab books from the earliest scientists, and irreplaceable pages of hand-drawn flowers. He challenges these librarians to convince major research libraries and rare book collections to let him see and scan these precious works.

As Friedman discussed his research needs and goals, you could easily imagine the librarians' groans when they saw him coming: the ILL requestor from hell. But Friedman delivered the kicker when he asked his audience to think about why his research is important. This is not just the history of science, nor is it the capricious actions of a passionate collector. He told the audience that over 70 percent of global human nutritional intake today comes directly from flowers, one of the last items to appear in the biological record. If we can understand how flowers have evolved, we have a greater chance of improving the nutritional standards and capacity of the world. Each ILL Friedman requests contributes to that goal.

A lively discussion followed on whether a library should impose limits on the number of ILLs (e.g., three per day per user) and the unique challenges in acquiring access to original copies and rare manuscripts. However, what really hit everyone between the eyes was the large role that simple ILL transactions play in the overall research life of a scientist.

The next speaker that day was Erin Robertson from the Center for Native Ecosystems. She spoke on the topic of "Doing Research Outside the Academy: How ILL Helps the Center for Native Ecosystems Protect Endangered Plants and Animals." Her story involved the complexities of getting information to support research and lobbying efforts to save precious biological resources. Ecologists and plant and animal biologists keep the location of rare plant and animal species secret to protect their lives and ecological viability. However, fellow scientists need notes and background papers. When scientists request the "real" background papers, they need a trusted conduit to acquire and return the works, so as not to endanger these living resources. ILL services are just such a trusted conduit. Robertson told a number of heart-tugging stories about protecting rare pants and animals with the support of ILL. This is another example of how an ILL transaction can be imbued with meaning beyond the simple delivery of an item. The respect for privacy and confidentiality and the fine hand required to protect secrets without damaging the research process are all exemplified here.

I was reminded of these two stories when I went to a presentation at the University of Toronto's Faculty of Information Studies Research Day. Linda Quirk (MISt) gave highlights of her thesis research in "The Remarkable Bibliographic Record and Publishing History of Canada's Mohawk Poetess: E. Pauline Johnson (Tekahionwake)." Pauline Johnson is a famous Canadian poet. For her research, Quirk depended on ILL to view copies of almost every extant edition of Johnson's works from libraries around the world. She challenged ILL clerks and librarians to find specific editions, specific covers, and new versions of Johnson's work. She found some catalogs sorely lacking in key metadata to describe the work. She also found unique Canadian folk art (such as Boy Scout book covers for merit badges) in the discovery process. Highlights of Quirk's discoveries are included in the major work History of the Book in Canada, a three-volume set published in French and English. Volume I was released in August 2004 to much fanfare at an event at the Library and Archives Canada. We can see the role ILLs and libraries played in capturing information about this poet and Canada's cultural history.
Whenever I hear a powerful story about the impact of library services, I save it. Real-life stories bring richness to the information experience that is impossible to create with facts and figures. At the ILL Conference in 2004, two library users at the University of Colorado in Boulder spoke about their experiences with the library; specifically, with interlibrary loan services. Both speakers were totally engaging. Here are my memories of their stories.

Friedman spoke first. Friedman leads the University of Colorado Friedman Lab as well as being a professor in the Department of Ecology and Evolutionary Biology. His primary research interests are the origin and early evolution of flowering plants; heterochrony and plant developmental evolution; cell cycle activity during gametogenesis and fertilization; evolution of multicellularity; and anatomical complexity and symbioses in early land plants. Friedman has requested hundreds, if not thousands, of interlibrary loans; indeed, he has blown through any library rules and regulations about the number of ILLs one may request. He is very particular, too. Since he is collecting and converting to electronic format the earliest works on evolution, he specifically borrows the original copies of some of the most important works in the field. He exhorts the ILL department of the CU library to borrow the original copies of Charles Darwin's books and notes, original lab books from the earliest scientists, and irreplaceable pages of hand-drawn flowers. He challenges these librarians to convince major research libraries and rare book collections to let him see and scan these precious works.

As Friedman discussed his research needs and goals, you could easily imagine the librarians' groans when they saw him coming: the ILL requestor from hell. But Friedman delivered the kicker when he asked his audience to think about why his research is important. This is not just the history of science, nor is it the capricious actions of a passionate collector. He told the audience that over 70 percent of global human nutritional intake today comes directly from flowers, one of the last items to appear in the biological record. If we can understand how flowers have evolved, we have a greater chance of improving the nutritional standards and capacity of the world. Each ILL Friedman requests contributes to that goal.

A lively discussion followed on whether a library should impose limits on the number of ILLs (e.g., three per day per user) and the unique challenges in acquiring access to original copies and rare manuscripts. However, what really hit everyone between the eyes was the large role that simple ILL transactions play in the overall research life of a scientist.

The next speaker that day was Erin Robertson from the Center for Native Ecosystems. She spoke on the topic of "Doing Research Outside the Academy: How ILL Helps the Center for Native Ecosystems Protect Endangered Plants and Animals." Her story involved the complexities of getting information to support research and lobbying efforts to save precious biological resources. Ecologists and plant and animal biologists keep the location of rare plant and animal species secret to protect their lives and ecological viability. However, fellow scientists need notes and background papers. When scientists request the "real" background papers, they need a trusted conduit to acquire and return the works, so as not to endanger these living resources. ILL services are just such a trusted conduit. Robertson told a number of heart-tugging stories about protecting rare pants and animals with the support of ILL. This is another example of how an ILL transaction can be imbued with meaning beyond the simple delivery of an item. The respect for privacy and confidentiality and the fine hand required to protect secrets without damaging the research process are all exemplified here.

I was reminded of these two stories when I went to a presentation at the University of Toronto's Faculty of Information Studies Research Day. Linda Quirk (MISt) gave highlights of her thesis research in "The Remarkable Bibliographic Record and Publishing History of Canada's Mohawk Poetess: E. Pauline Johnson (Tekahionwake)." Pauline Johnson is a famous Canadian poet. For her research, Quirk depended on ILL to view copies of almost every extant edition of Johnson's works from libraries around the world. She challenged ILL clerks and librarians to find specific editions, specific covers, and new versions of Johnson's work. She found some catalogs sorely lacking in key metadata to describe the work. She also found unique Canadian folk art (such as Boy Scout book covers for merit badges) in the discovery process. Highlights of Quirk's discoveries are included in the major work History of the Book in Canada, a three-volume set published in French and English. Volume I was released in August 2004 to much fanfare at an event at the Library and Archives Canada. We can see the role ILLs and libraries played in capturing information about this poet and Canada's cultural history.

Open Solutions and Mortgage.com Form Strategic Partnership to Offer Online Loans to Underserved Market

Provider of integrated enterprise, Internet banking and e-commerce solutions for community banks and credit unions, and Mortgage.com (NASDAQ: MDCM), a leader in providing business-to-business online home-financing solutions, announced a strategic partnership to offer Mortgage.com's online mortgage technology platforms as part of the e-banking platforms that Open Solutions provides to financial institutions across the country.

Under the terms of the agreement, Mortgage.com will offer a suite of solutions enabling banks and credit unions to expand their products and services, backed by Mortgage.com's guaranteed service commitments to the financial institutions using Open Solutions' e-Commerce platform. With the new offering, financial institutions have three options for packaging the service to consumers: Co-brand, powered by Mortgage.com where Mortgage.com and the financial institution appear jointly; Private label, where the financial institution remains the lender; and Virtual Mortgage Company, where the financial institution is the virtual lender leveraging the Mortgage.com technical and transactional infrastructure.

Louis Hernandez, Jr., Open Solutions' chairman and chief executive officer, said, "We're helping our bank and credit union customers expand the scope of their online financial services. Institutions using Open Solutions' e-Commerce Mart(TM) can now offer a unique online mortgage product that is best in class with minimal up front investment."

The Open Solutions-Mortgage.com partnership demonstrates the Open Solutions philosophy of continuously offering additional capabilities to its signature financial software solutions. The partnership complements OSI's e-Commerce Mart software suite, the company's electronic commerce platform, which facilitates business-to-business and business-to-consumer transactions between nationally recognized partner-suppliers and the financial institution's customers.

Hernandez continued, "We are our customers' partners for life, and we are doing everything possible to ensure that their customers and members feel the same way about the institutions we serve."

Under the agreement, Open Solutions will market Mortgage.com technology and solutions to its existing and potential customers.

"Our partnership with Open Solutions expands our reach into the online mortgage solution market for community banks and credit unions," said Seth Werner, Mortgage.com chairman and chief executive officer. "These financial institutions have historically played a central role in developing communities across America. Partnering with Open Solutions allows us to give them the online tools they need to better serve their customers and communities."

Mortgage.com was founded in 1994 and is based in Sunrise, Florida. Mortgage.com is a pioneer in online mortgage banking. Mortgage.com is dedicated to reducing the cost of mortgage origination and funding by supplying financial institutions, Realtors(R) and homebuilders with point-of-sale and Internet technology, business management, loan processing, call center and mortgage funding capabilities. The Company's business-to-business customer list includes GE Capital Mortgage Services, TD Waterhouse, Prudential California Realty and Arvida Home Builders. Mortgage.com is publicly traded on the NASDAQ system under the symbol MDCM.

Open Solutions Inc. offers the Open Community Network (OCN), a comprehensive enabling platform that integrates electronic commerce with Internet banking and enterprise processing applications. OCN consists of three primary components:

e-Commerce Mart(TM) (eCM), an electronic commerce platform facilitating business-to-business and business-to-consumer transactions between nationally recognized partner-suppliers and a financial institution's customers in addition to promoting a financial institution's unique local identity.

e-Commerce Banker(TM) (eCB), a fully featured Internet banking product specifically designed to provide a financial institution's end-users with a trusted access point to financial information.

The Complete Banking Solution(R) (TCBS) and The Complete Credit Union Solution(R) (TCCUS), OSI's open architecture real time relational database enterprise processing applications that support a financial institution's entire core data processing requirements.

Open Solutions' combination of enterprise processing applications, electronic commerce and Internet banking enables community banks and credit unions to use technology and the Internet to expand their customer relationships and generate new, profitable revenue streams.
Provider of integrated enterprise, Internet banking and e-commerce solutions for community banks and credit unions, and Mortgage.com (NASDAQ: MDCM), a leader in providing business-to-business online home-financing solutions, announced a strategic partnership to offer Mortgage.com's online mortgage technology platforms as part of the e-banking platforms that Open Solutions provides to financial institutions across the country.

Under the terms of the agreement, Mortgage.com will offer a suite of solutions enabling banks and credit unions to expand their products and services, backed by Mortgage.com's guaranteed service commitments to the financial institutions using Open Solutions' e-Commerce platform. With the new offering, financial institutions have three options for packaging the service to consumers: Co-brand, powered by Mortgage.com where Mortgage.com and the financial institution appear jointly; Private label, where the financial institution remains the lender; and Virtual Mortgage Company, where the financial institution is the virtual lender leveraging the Mortgage.com technical and transactional infrastructure.

Louis Hernandez, Jr., Open Solutions' chairman and chief executive officer, said, "We're helping our bank and credit union customers expand the scope of their online financial services. Institutions using Open Solutions' e-Commerce Mart(TM) can now offer a unique online mortgage product that is best in class with minimal up front investment."

The Open Solutions-Mortgage.com partnership demonstrates the Open Solutions philosophy of continuously offering additional capabilities to its signature financial software solutions. The partnership complements OSI's e-Commerce Mart software suite, the company's electronic commerce platform, which facilitates business-to-business and business-to-consumer transactions between nationally recognized partner-suppliers and the financial institution's customers.

Hernandez continued, "We are our customers' partners for life, and we are doing everything possible to ensure that their customers and members feel the same way about the institutions we serve."

Under the agreement, Open Solutions will market Mortgage.com technology and solutions to its existing and potential customers.

"Our partnership with Open Solutions expands our reach into the online mortgage solution market for community banks and credit unions," said Seth Werner, Mortgage.com chairman and chief executive officer. "These financial institutions have historically played a central role in developing communities across America. Partnering with Open Solutions allows us to give them the online tools they need to better serve their customers and communities."

Mortgage.com was founded in 1994 and is based in Sunrise, Florida. Mortgage.com is a pioneer in online mortgage banking. Mortgage.com is dedicated to reducing the cost of mortgage origination and funding by supplying financial institutions, Realtors(R) and homebuilders with point-of-sale and Internet technology, business management, loan processing, call center and mortgage funding capabilities. The Company's business-to-business customer list includes GE Capital Mortgage Services, TD Waterhouse, Prudential California Realty and Arvida Home Builders. Mortgage.com is publicly traded on the NASDAQ system under the symbol MDCM.

Open Solutions Inc. offers the Open Community Network (OCN), a comprehensive enabling platform that integrates electronic commerce with Internet banking and enterprise processing applications. OCN consists of three primary components:

e-Commerce Mart(TM) (eCM), an electronic commerce platform facilitating business-to-business and business-to-consumer transactions between nationally recognized partner-suppliers and a financial institution's customers in addition to promoting a financial institution's unique local identity.

e-Commerce Banker(TM) (eCB), a fully featured Internet banking product specifically designed to provide a financial institution's end-users with a trusted access point to financial information.

The Complete Banking Solution(R) (TCBS) and The Complete Credit Union Solution(R) (TCCUS), OSI's open architecture real time relational database enterprise processing applications that support a financial institution's entire core data processing requirements.

Open Solutions' combination of enterprise processing applications, electronic commerce and Internet banking enables community banks and credit unions to use technology and the Internet to expand their customer relationships and generate new, profitable revenue streams.

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.
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.