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| 8-K - 8-K - BANNER CORP | a63020188-kearningspressre.htm |
Exhibit 99.1
 |  | CONTACT: | MARK J. GRESCOVICH, |
PRESIDENT & CEO | |||
PETER J. CONNER, CFO | |||
(509) 527-3636 | |||
NEWS RELEASE | |||
Banner Corporation Reports Second Quarter Net Income of $32.4 Million, or $1.00 Per Diluted Share;
Results Highlighted by Solid Growth in Revenue and Net Interest Margin Expansion
Walla Walla, WA - July 25, 2018 - Banner Corporation (NASDAQ GSM: BANR), the parent company of Banner Bank and Islanders Bank, today reported that growth in earning assets and improved net interest margin contributed to continuing solid revenue growth. In addition, $2.1 million in miscellaneous non-interest income from the sale of its Poulsbo branch deposits and two former business locations contributed to the substantial increase in second quarter 2018 earnings. Net income in the second quarter of 2018 increased 13% to $32.4 million, or $1.00 per diluted share, compared to $28.8 million, or $0.89 per diluted share, in the preceding quarter and increased 27% when compared to $25.5 million, or $0.77 per diluted share, in the second quarter a year ago when federal income tax rates were substantially higher.
In the first six months of 2018, net income increased 24% to $61.2 million, or $1.89 per diluted share, compared to $49.2 million, or $1.49 per diluted share, in the first six months of 2017.
“Banner’s second quarter 2018 performance clearly demonstrates that our strategic plan continues to be effective, as we complete the build-out of the company’s support infrastructure and improve operating leverage,” stated Mark J. Grescovich, President and Chief Executive Officer. “Due to the hard work of our employees, we are successfully executing on our strategies and priorities to deliver sustainable profitability and revenue growth to shareholders. Our core operating performance continues to reflect the success of our proven client-acquisition strategies, which are producing strong core revenue and a healthy net interest margin. These factors contributed to a return on average assets of 1.25% for the quarter. Additionally, our continuing strong earnings trends allowed us to declare a special dividend of $0.50 per share in addition to the regular quarterly dividend of $0.35 per share, which were both paid on July 29, 2018, while effectively managing and maintaining a solid capital position.”
At June 30, 2018, Banner Corporation had $10.38 billion in assets, $7.59 billion in net loans and $8.53 billion in deposits. Banner operates 177 branch offices located in eight of the top 20 largest western Metropolitan Statistical Areas by population.
Second Quarter 2018 Highlights
• | Net income increased 13% to $32.4 million, or $1.00 per diluted share, compared to $28.8 million, or $0.89 per diluted share, in the preceding quarter and increased 27% compared to $25.5 million, or $0.77 per diluted share, in the second quarter a year ago. |
• | Net interest income, before the provision for loan losses, increased 6% to $105.1 million, compared to $99.4 million in the preceding quarter and increased 5% from $99.7 million in the second quarter a year ago. |
• | Net interest margin was 4.39% for the current quarter, compared to 4.35% in the preceding quarter and 4.33% in the second quarter a year ago. |
• | Revenues were $126.3 million during the quarter ended June 30, 2018, $120.7 million during the preceding quarter and $120.1 million during the second quarter a year ago. |
• | Return on average assets was 1.25% in the current quarter, compared to 1.16% in the preceding quarter and 1.01% in the second quarter a year ago. |
• | Return on average equity was 10.25% in the current quarter, compared to 9.14% in the preceding quarter and 7.60% in the second quarter a year ago. |
• | Provision for loan losses remained steady at $2.0 million, increasing the allowance for loan losses to $93.9 million or 1.22% of total loans compared to an allowance for loan losses of $88.6 million or 1.17% of total loans as of June 30, 2017. |
• | Net loans receivable were $7.59 billion at June 30, 2018, compared to $7.46 billion at both March 31, 2018, and June 30, 2017. |
• | Core deposits increased 1% compared to June 30, 2017, and represented 87% of total deposits at June 30, 2018. |
• | Quarterly dividends to shareholders were $0.35 per share, and a special cash dividend of $0.50 per share was also declared. |
• | Tangible common shareholders' equity per share* was $30.57 at June 30, 2018, compared to $30.54 at the preceding quarter end and $31.21 a year ago. |
• | The ratio of tangible common shareholders' equity to tangible assets* remained strong at 9.79% at June 30, 2018, compared to 9.85% at the preceding quarter end and 10.46% a year ago. |
• | Non-performing assets declined by $7.0 million to $16.5 million or 0.16% of total assets at June 30, 2018 and were $24.5 million or 0.24% of total assets a year ago. |
*Tangible common shareholders' equity per share and the ratio of tangible common equity to tangible assets (both of which exclude goodwill and other intangible assets, net), and references to revenues from core operations (which excludes fair value adjustments and gains and losses on the sale of securities) and adjusted efficiency ratio (which excludes fair value adjustments and gains and losses on the sale of securities from adjusted non-interest
BANR - Second Quarter 2018 Results
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income and excludes amortization of core deposit intangibles, real estate owned, gain (loss) and state/municipal business and use taxes from adjusted non-interest expense) represent non-GAAP (Generally Accepted Accounting Principles) financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner's core operations reflected in the current quarter's results and facilitate the comparison of our performance with the performance of our peers. Where applicable, comparable earnings information using GAAP financial measures is also presented. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of this press release.
Certain reclassifications have been made to the 2017 Consolidated Financial Statements and/or schedules to conform to the 2018 presentation. These reclassifications have affected certain line items and ratios for the prior periods but have not changed net income or shareholders’ equity for those periods. The effect of these reclassifications is considered immaterial.
Significant Recent Initiatives and Events
On May 11, 2018, Banner Bank completed the sale of its Poulsbo, Washington, branch deposits totaling $20.4 million to Liberty Bay Bank, recording a deposit premium of $249,000. In addition, during the second quarter of 2018 Banner Bank sold two former business locations, recording a combined net gain of $1.9 million.
On October 6, 2017, Banner Bank completed the sale of its seven branches and related assets and liabilities in Utah to People’s Intermountain Bank, a banking subsidiary of People’s Utah Bancorp (NASDAQ: PUB). Under the terms of the purchase and assumption agreement, the sale included $253.8 million in loans and $160.3 million in deposits.
During the fourth quarter of 2017, Banner recorded a one-time net tax charge of $42.6 million, or $1.30 per diluted share, related to the revaluation of deferred tax items as a result of the Tax Cuts and Jobs Act. This increase in income tax expense was reflected in operating results for the fourth quarter of 2017 and was in addition to the normal provision for income tax related to pre-tax net operating income.
In addition, during the fourth quarter Banner implemented a number of strategic balance sheet initiatives designed to keep its assets below $10 billion at December 31, 2017, in order to postpone the adverse impact of certain enhanced regulatory requirements and the Durbin Amendment to the Dodd-Frank Act limits on, among other things, debit card interchange fees. Based on current debit card transaction volumes, Banner anticipates that the Durbin Amendment will have a $13 million annualized negative impact on pre-tax revenues commencing in July 2019.
In December 2017, Banner sold approximately $470 million of investment securities in the available-for-sale portfolio, using the proceeds to fund loan originations and to pay down certain wholesale borrowings and maturing brokered deposits. Banner incurred pre-tax net losses of $2.3 million in connection with the sale of these investment securities, which produced tax benefits based upon the 2017 marginal federal income tax rate of 35%. Beginning in 2018 net interest income on investment securities is subject to the new lower marginal corporate federal income tax rate. In recent periods Banner has incurred a blended effective federal and state tax rate of 33% to 34%. As a result of the reduced marginal federal tax rate, Banner anticipates that its blended effective federal and state tax rate will be approximately 22% to 23% in 2018.
Income Statement Review
“We benefited from rising interest rates during the quarter, which produced higher yields on loans and improved our net interest margin,” said Grescovich. Banner's net interest margin was 4.39% for the second quarter of 2018, a four basis point improvement compared to 4.35% in the preceding quarter and a six basis point improvement compared to 4.33% in the second quarter a year ago. Acquisition accounting adjustments, principally loan discount accretion, added six basis points to the net interest margin in the current quarter compared to eight basis points in the preceding quarter and 15 basis points in the second quarter a year ago. The total purchase discount for acquired loans was $18.1 million at June 30, 2018, a decrease from $19.4 million at March 31, 2018 and $25.8 million a year ago, primarily as a result of discount accretion. In the first six months of the year, Banner’s net interest margin expanded eight basis points to 4.37% compared to 4.29% in the first six months a year ago.
Average interest-earning asset yields increased 11 basis points to 4.70% compared to 4.59% for the preceding quarter and increased 17 basis points compared to 4.53% in the second quarter a year ago. Average loan yields increased 17 basis points to 5.15% compared to 4.98% for both the preceding quarter and second quarter a year ago. Loan discount accretion added eight basis points to loan yields in the second quarter, compared to ten basis points in the preceding quarter and 18 basis points in the second quarter a year ago. Deposit costs were 0.20% in the second quarter, a four basis point increase compared to the preceding quarter and a five basis point increase compared to the second quarter a year ago. The total cost of funds was 0.33% during the second quarter, an eight basis point increase compared to the preceding quarter and an 11 basis point increase compared to the second quarter a year ago largely reflecting increased borrowing costs.
Primarily as a result of the origination of new loans, the renewal of acquired loans out of the discounted acquired loan portfolio and net charge-offs, Banner recorded a $2.0 million provision for loan losses during the second quarter, the same as in both the preceding and year ago quarters as credit quality metrics remained very strong.
Deposit fees and other service charges were $12.0 million in the second quarter, compared to $11.3 million in the preceding quarter and $11.2 million in the second quarter a year ago. Mortgage banking revenues, including gains on one- to four-family and multifamily loan sales and loan servicing fees, decreased to $4.6 million in the second quarter compared to $4.9 million in the preceding quarter and $6.8 million in the second quarter of 2017. Home purchase activity accounted for 81% of second quarter 2018 one- to four-family mortgage loan originations.
Second quarter 2018 results included a $224,000 net gain for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value, principally certain investment securities held for trading, and $44,000 net gain on the sale of securities. In the preceding quarter, results included a $3.3 million net gain for fair value adjustments. In the second quarter a year ago, results included a $650,000 net loss for fair value adjustments and a $54,000 net loss on the sale of securities. Following the adoption of new accounting guidance, beginning in the preceding quarter, Banner no longer reflects changes in the fair value of its junior subordinated debentures related to instrument-specific credit risk in the Consolidated Statements
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of Operations, but rather reports those changes in the Consolidated Statements of Comprehensive Income and includes them in total shareholders’ equity in the Consolidated Statements of Financial Condition.
Total revenues increased 5% to $126.3 million for the second quarter of 2018, compared to $120.7 million in the preceding quarter and $120.1 million in the second quarter a year ago. In the first six months of 2018, total revenues increased 6% to $247.0 million, compared to $234.0 million in the first six months of 2017. Revenues from core operations* (revenues excluding gains and losses on the sale of securities and the net change in valuation of financial instruments) increased to $126.0 million in the second quarter of 2018, compared to $117.4 million in the preceding quarter, and $120.8 million in the second quarter of 2017. In the first six months of 2018, revenues from core operations* increased to $243.4 million from $235.4 million in the first six months a year ago.
Total non-interest income, which includes the changes in the valuation of financial instruments carried at fair value and gains and losses on the sale of securities, was $21.2 million in the second quarter of 2018, compared to $21.4 million in the first quarter of 2018 and $20.4 million in the second quarter a year ago. In the first six months of 2018, total non-interest income was $42.6 million, compared to $39.4 million in the same period a year ago.
Banner’s total non-interest expense was $82.6 million in the second quarter of 2018, compared to $81.7 million in the preceding quarter and $79.9 million in the second quarter of 2017. In addition to normal wage increases, the current and preceding quarter's non-interest expenses included increased salary and employee benefits as compared to the second quarter a year ago largely due to enhanced regulatory requirements attributable to compliance and risk management infrastructure build-out. Banner’s adjusted efficiency ratio* improved to 64.09% for the current quarter, compared to 67.42% in the prior quarter and 64.83% in the year ago quarter.
For the second quarter of 2018, Banner recorded $9.2 million in state and federal income tax expense for an effective tax rate of 22.1%, reflecting the new lower federal corporate income tax rate beginning in 2018, and for the year ago quarter, Banner recorded $12.8 million in state and federal income tax expense for an effective tax rate of 33.4%.
Balance Sheet Review
Banner’s total assets were $10.38 billion at June 30, 2018, compared to $10.32 billion at March 31, 2018, and $10.20 billion at June 30, 2017. The total of securities and interest-bearing deposits held at other banks was $1.74 billion at June 30, 2018, compared to $1.75 billion at March 31, 2018 and $1.66 billion at June 30, 2017. The increase in the securities portfolio during both the current quarter and preceding quarter compared to December 31, 2017, reflects Banner's renewed leveraging strategy as it crossed the $10 billion in total assets threshold. In the fourth quarter of 2017, Banner reduced its holdings of securities and use of wholesale funding to ensure that it remained below $10 billion in total assets at December 31, 2017, to postpone the adverse impact of the Durbin Amendment. The average effective duration of Banner's securities portfolio was approximately 4.0 years at June 30, 2018, compared to 3.5 years at June 30, 2017.
Net loans receivable increased 2% to $7.59 billion at June 30, 2018, compared to $7.46 billion at both March 31, 2018 and June 30, 2017. The sale of our Utah branches in the fourth quarter of 2017 included the sale of $253.8 million of loans. Commercial real estate and multifamily real estate loans increased slightly to $3.51 billion at June 30, 2018, compared to $3.48 billion at March 31, 2018, but decreased compared to $3.62 billion a year ago, reflecting significant payoffs of both owner occupied and investment commercial real estate loans, partially offset by growth in multifamily real estate loans. Commercial business loans increased modestly to $1.31 billion at June 30, 2018, compared to $1.30 billion three months earlier and increased 2% compared to $1.29 billion a year ago. Reflecting normal seasonal trends, agricultural business loans increased by 10% to $336.7 million at June 30, 2018, compared to $307.2 million three months earlier and were $344.4 million a year ago. Total construction, land and land development loans increased 3% to $980.4 million at June 30, 2018, compared to $948.7 million at March 31, 2018, and increased 21% compared to $811.5 million a year earlier. Consumer loans increased 2% to $706.8 million at June 30, 2018, compared to $693.0 million at March 31, 2018, and increased 3% compared to $687.8 million a year ago. One- to four-family loans increased modestly to $840.5 million compared to $833.6 million at March 31, 2018, and increased 5% compared to $800.0 million a year ago.
Loans held for sale decreased 44% to $78.8 million at June 30, 2018, compared to $141.8 million at March 31, 2018, but increased 19% compared to $66.2 million at June 30, 2017. The volume of one- to four- family residential mortgage loans sold remained relatively constant at $124.1 million in the current quarter compared to $124.5 million in the preceding quarter and was $131.1 million in the second quarter a year ago. During the current quarter Banner sold $135.7 million in multifamily loans compared to none during the quarter ended March 31, 2018, and $114.8 million in multifamily loans sold during the second quarter a year ago. Loans held for sale at June 30, 2018 included $51.3 million of multifamily loans and $27.6 million of one- to four-family loans.
Total deposits were $8.53 billion at June 30, 2018, compared to $8.54 billion at March 31, 2018, and increased modestly compared to $8.48 billion a year ago, as strong core deposit growth over the last year was partially offset by continuing declines in retail or non-brokered certificates of deposit. The sale of $20.4 million of Poulsbo Branch deposits during the current quarter contributed to the slight decline in deposits compared to the prior quarter. Compared to a year earlier, total deposits at June 30, 2018, were negatively impacted by the sale of the Utah branches during the fourth quarter of 2017 which included $160.3 million of deposits. Non-interest-bearing account balances decreased slightly to $3.35 billion at June 30, 2018, compared to $3.38 billion at March 31, 2018, and increased 3% compared to $3.25 billion a year ago. Core deposits (non-interest-bearing and interest-bearing transaction and savings accounts) decreased 2% from the prior quarter and increased 1% compared to June 30, 2017, despite the sale of the Utah branches. Core deposits represented 87% of total deposits at June 30, 2018, compared to 88% of total deposits at March 31, 2018, and 86% of total deposits a year earlier. Certificates of deposit were $1.15 billion at June 30, 2018, compared to $1.02 million at March 31, 2018, and $1.21 billion a year earlier. Brokered deposits increased to $280.1 million at June 30, 2018, compared to $169.5 million at March 31, 2018, and were $250.0 million a year earlier. The average cost of deposits was 0.20% for the quarter ended June 30, 2018, compared to 0.16% in the preceding quarter and 0.15% in the quarter ended June 30, 2017.
At June 30, 2018, total common shareholders' equity was $1.25 billion, or $38.67 per share, compared to $1.25 billion at March 31, 2018, and $1.31 billion a year ago. At June 30, 2018, tangible common shareholders' equity*, which excludes goodwill and other intangible assets, was $990.5 million,
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or 9.79% of tangible assets*, compared to $990.2 million, or 9.85% of tangible assets, at March 31, 2018 and $1.04 billion, or 10.46% of tangible assets, a year ago. Banner's tangible book value per share* was $30.57 at June 30, 2018, compared to $31.21 per share a year ago.
During the first quarter of 2018, Banner repurchased 269,711 shares of its common stock at an average price per share of $56.93 for a total purchase price of $15.4 million. There were no repurchases during the second quarter of 2018. Banner Corporation and its subsidiary banks continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” under the Basel III and Dodd Frank regulatory standards. At June 30, 2018, Banner Corporation's common equity Tier 1 capital ratio was 11.05%, its Tier 1 leverage capital to average assets ratio was 10.80%, and its total capital to risk-weighted assets ratio was 13.73%.
Credit Quality
“Credit quality remained strong again during the quarter, which further solidifies the moderate risk profile of our loan portfolio and positions us well for the future,” said Grescovich. The allowance for loan losses was $93.9 million at June 30, 2018, or 1.22% of total loans outstanding and 613% of non-performing loans compared to $92.2 million at March 31, 2018, or 1.22% of total loans outstanding and 410% of non-performing loans, and $88.6 million at June 30, 2017, or 1.17% of total loans outstanding and 405% of non-performing loans. Net loan charge-offs totaled $332,000 in the second quarter compared to net loan recoveries of $1.2 million in the preceding quarter and $59,000 in the second quarter a year ago. Primarily as a result of the origination of new loans, the renewal of acquired loans out of the discounted acquired loan portfolio and net charge-offs, Banner recorded a $2.0 million provision for loan losses in the current quarter which was the same amount as recorded in the prior quarter and in the year ago quarter. Non-performing loans declined to $15.3 million at June 30, 2018, compared to $22.5 million at March 31, 2018 and $21.9 million a year ago. Real estate owned and other repossessed assets were $1.2 million at June 30, 2018, compared to $1.0 million at March 31, 2018 and $2.6 million a year ago.
In accordance with acquisition accounting, loans acquired from acquisitions were recorded at their estimated fair value, which resulted in a net discount to the loans’ contractual amounts, a portion of which reflects a discount for possible credit losses. Credit discounts are included in the determination of fair value, and as a result, no allowance for loan and lease losses is recorded for acquired loans at the acquisition date. Although the discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios. At June 30, 2018, the total purchase discount for acquired loans was $18.1 million.
Banner's non-performing assets were $16.5 million, or 0.16% of total assets, at June 30, 2018, compared to $23.5 million, or 0.23% of total assets, at March 31, 2018 and $24.5 million, or 0.24% of total assets, a year ago. In addition to non-performing assets, purchased credit-impaired loans decreased to $18.1 million at June 30, 2018, compared to $19.3 million at March 31, 2018 and $26.3 million a year ago.
Conference Call
Banner will host a conference call on Thursday, July 26, 2018, at 8:00 a.m. PDT, to discuss its second quarter results. To listen to the call on-line, go to www.bannerbank.com. Investment professionals are invited to dial (866) 235-9915 to participate in the call. A replay will be available for one week at (877) 344-7529 using access code 10121440, or at www.bannerbank.com.
About the Company
Banner Corporation is a $10.38 billion bank holding company operating two commercial banks in four Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.
Forward-Looking Statements
When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements and could negatively affect Banner's operating and stock price performance.
Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses, which could necessitate additional provisions for loan losses, resulting both from loans originated and loans acquired from other financial institutions; (2) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for loan losses or writing down of assets or impose restrictions or penalties with respect to Banner's activities; (3) competitive pressures among depository institutions; (4) interest rate movements and their impact on customer behavior and net interest margin; (5) the impact of repricing and competitors' pricing initiatives on loan and deposit products; (6) fluctuations in real estate values; (7) the ability to adapt successfully to technological changes to meet customers' needs and developments in the market place; (8) the ability to access cost-effective funding; (9) changes in financial markets; (10) changes in economic conditions in general and in Washington, Idaho, Oregon and California in particular; (11) the costs, effects and outcomes of litigation; (12) new legislation or regulatory changes, including but not limited to the Dodd-Frank Act and regulations adopted thereunder, changes in capital requirements pursuant to the Dodd-Frank Act and the implementation of the Basel III capital standards, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (13) changes in accounting principles, policies or guidelines; (14) future acquisitions by Banner of other
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depository institutions or lines of business; (15) future goodwill impairment due to changes in Banner's business, changes in market conditions, or other factors and (16) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks detailed from time to time in our filings with the Securities and Exchange Commission including our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K.
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RESULTS OF OPERATIONS | Quarters Ended | Six months ended | ||||||||||||||||||
(in thousands except shares and per share data) | Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Loans receivable | $ | 99,853 | $ | 94,022 | $ | 94,795 | $ | 193,875 | $ | 186,083 | ||||||||||
Mortgage-backed securities | 8,899 | 7,331 | 6,239 | 16,230 | 10,886 | |||||||||||||||
Securities and cash equivalents | 3,671 | 3,467 | 3,402 | 7,138 | 6,563 | |||||||||||||||
112,423 | 104,820 | 104,436 | 217,243 | 203,532 | ||||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Deposits | 4,264 | 3,358 | 3,182 | 7,622 | 5,973 | |||||||||||||||
Federal Home Loan Bank advances | 1,499 | 677 | 301 | 2,177 | 574 | |||||||||||||||
Other borrowings | 49 | 70 | 83 | 119 | 157 | |||||||||||||||
Junior subordinated debentures | 1,548 | 1,342 | 1,164 | 2,889 | 2,268 | |||||||||||||||
7,360 | 5,447 | 4,730 | 12,807 | 8,972 | ||||||||||||||||
Net interest income before provision for loan losses | 105,063 | 99,373 | 99,706 | 204,436 | 194,560 | |||||||||||||||
PROVISION FOR LOAN LOSSES | 2,000 | 2,000 | 2,000 | 4,000 | 4,000 | |||||||||||||||
Net interest income | 103,063 | 97,373 | 97,706 | 200,436 | 190,560 | |||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||
Deposit fees and other service charges | 11,985 | 11,296 | 11,165 | 23,281 | 21,553 | |||||||||||||||
Mortgage banking operations | 4,643 | 4,864 | 6,754 | 9,507 | 11,357 | |||||||||||||||
Bank owned life insurance | 933 | 853 | 1,461 | 1,785 | 2,556 | |||||||||||||||
Miscellaneous | 3,388 | 1,037 | 1,720 | 4,426 | 5,356 | |||||||||||||||
20,949 | 18,050 | 21,100 | 38,999 | 40,822 | ||||||||||||||||
Net gain (loss) on sale of securities | 44 | 4 | (54 | ) | 48 | (41 | ) | |||||||||||||
Net change in valuation of financial instruments carried at fair value | 224 | 3,308 | (650 | ) | 3,532 | (1,338 | ) | |||||||||||||
Total non-interest income | 21,217 | 21,362 | 20,396 | 42,579 | 39,443 | |||||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||||
Salary and employee benefits | 51,494 | 50,067 | 49,019 | 101,561 | 95,083 | |||||||||||||||
Less capitalized loan origination costs | (4,733 | ) | (4,011 | ) | (4,598 | ) | (8,744 | ) | (8,914 | ) | ||||||||||
Occupancy and equipment | 11,574 | 11,766 | 12,045 | 23,340 | 24,041 | |||||||||||||||
Information / computer data services | 4,564 | 4,381 | 4,100 | 8,945 | 8,094 | |||||||||||||||
Payment and card processing services | 3,731 | 3,700 | 3,719 | 7,431 | 6,942 | |||||||||||||||
Professional services | 3,838 | 4,428 | 3,732 | 8,266 | 8,885 | |||||||||||||||
Advertising and marketing | 2,141 | 1,830 | 1,766 | 3,971 | 3,095 | |||||||||||||||
Deposit insurance | 1,021 | 1,341 | 1,071 | 2,362 | 2,337 | |||||||||||||||
State/municipal business and use taxes | 816 | 713 | 279 | 1,529 | 1,078 | |||||||||||||||
Real estate operations | (319 | ) | 439 | (363 | ) | 121 | (1,329 | ) | ||||||||||||
Amortization of core deposit intangibles | 1,382 | 1,382 | 1,624 | 2,764 | 3,248 | |||||||||||||||
Miscellaneous | 7,128 | 5,670 | 7,463 | 12,797 | 13,577 | |||||||||||||||
Total non-interest expense | 82,637 | 81,706 | 79,857 | 164,343 | 156,137 | |||||||||||||||
Income before provision for income taxes | 41,643 | 37,029 | 38,245 | 78,672 | 73,866 | |||||||||||||||
PROVISION FOR INCOME TAXES | 9,219 | 8,239 | 12,791 | 17,458 | 24,619 | |||||||||||||||
NET INCOME | $ | 32,424 | $ | 28,790 | $ | 25,454 | $ | 61,214 | $ | 49,247 | ||||||||||
Earnings per share available to common shareholders: | ||||||||||||||||||||
Basic | $ | 1.01 | $ | 0.89 | $ | 0.77 | $ | 1.89 | $ | 1.49 | ||||||||||
Diluted | $ | 1.00 | $ | 0.89 | $ | 0.77 | $ | 1.89 | $ | 1.49 | ||||||||||
Cumulative dividends declared per common share | $ | 0.85 | $ | 0.35 | $ | 1.25 | $ | 1.20 | $ | 1.50 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||
Basic | 32,250,514 | 32,397,568 | 32,982,126 | 32,323,635 | 32,957,920 | |||||||||||||||
Diluted | 32,331,609 | 32,516,456 | 33,051,527 | 32,422,287 | 33,052,205 | |||||||||||||||
(Decrease) increase in common shares outstanding | (17,977 | ) | (302,812 | ) | 125,167 | (320,789 | ) | 84,644 | ||||||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 7
FINANCIAL CONDITION | Percentage Change | |||||||||||||||||||||
(in thousands except shares and per share data) | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | Prior Qtr | Prior Yr Qtr | ||||||||||||||||
ASSETS | ||||||||||||||||||||||
Cash and due from banks | $ | 195,652 | $ | 188,418 | $ | 199,624 | $ | 196,178 | 3.8 | % | (0.3 | )% | ||||||||||
Interest-bearing deposits | 53,773 | 53,630 | 61,576 | 77,370 | 0.3 | % | (30.5 | )% | ||||||||||||||
Total cash and cash equivalents | 249,425 | 242,048 | 261,200 | 273,548 | 3.0 | % | (8.8 | )% | ||||||||||||||
Securities - trading | 25,640 | 25,574 | 22,318 | 24,950 | 0.3 | % | 2.8 | % | ||||||||||||||
Securities - available for sale | 1,400,312 | 1,406,505 | 919,485 | 1,290,159 | (0.4 | )% | 8.5 | % | ||||||||||||||
Securities - held to maturity | 263,176 | 262,645 | 260,271 | 268,050 | 0.2 | % | (1.8 | )% | ||||||||||||||
Federal Home Loan Bank stock | 19,916 | 18,036 | 10,334 | 12,334 | 10.4 | % | 61.5 | % | ||||||||||||||
Loans held for sale | 78,833 | 141,808 | 40,725 | 66,164 | (44.4 | )% | 19.1 | % | ||||||||||||||
Loans receivable | 7,684,732 | 7,556,046 | 7,598,884 | 7,551,563 | 1.7 | % | 1.8 | % | ||||||||||||||
Allowance for loan losses | (93,875 | ) | (92,207 | ) | (89,028 | ) | (88,586 | ) | 1.8 | % | 6.0 | % | ||||||||||
Net loans receivable | 7,590,857 | 7,463,839 | 7,509,856 | 7,462,977 | 1.7 | % | 1.7 | % | ||||||||||||||
Accrued interest receivable | 34,004 | 32,824 | 31,259 | 30,722 | 3.6 | % | 10.7 | % | ||||||||||||||
Real estate owned held for sale, net | 473 | 328 | 360 | 2,427 | 44.2 | % | (80.5 | )% | ||||||||||||||
Property and equipment, net | 153,224 | 156,005 | 154,815 | 161,095 | (1.8 | )% | (4.9 | )% | ||||||||||||||
Goodwill | 242,659 | 242,659 | 242,659 | 244,583 | — | % | (0.8 | )% | ||||||||||||||
Other intangibles, net | 19,858 | 21,251 | 22,655 | 26,813 | (6.6 | )% | (25.9 | )% | ||||||||||||||
Bank-owned life insurance | 164,225 | 163,519 | 162,668 | 160,609 | 0.4 | % | 2.3 | % | ||||||||||||||
Other assets | 136,592 | 140,223 | 124,604 | 175,389 | (2.6 | )% | (22.1 | )% | ||||||||||||||
Total assets | $ | 10,379,194 | $ | 10,317,264 | $ | 9,763,209 | $ | 10,199,820 | 0.6 | % | 1.8 | % | ||||||||||
LIABILITIES | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest-bearing | $ | 3,346,777 | $ | 3,383,439 | $ | 3,265,544 | $ | 3,254,581 | (1.1 | )% | 2.8 | % | ||||||||||
Interest-bearing transaction and savings accounts | 4,032,283 | 4,141,268 | 3,950,950 | 4,022,909 | (2.6 | )% | 0.2 | % | ||||||||||||||
Interest-bearing certificates | 1,148,607 | 1,018,355 | 966,937 | 1,206,241 | 12.8 | % | (4.8 | )% | ||||||||||||||
Total deposits | 8,527,667 | 8,543,062 | 8,183,431 | 8,483,731 | (0.2 | )% | 0.5 | % | ||||||||||||||
Advances from Federal Home Loan Bank at fair value | 239,190 | 192,195 | 202 | 50,212 | 24.5 | % | nm | |||||||||||||||
Customer repurchase agreements and other borrowings | 112,458 | 101,844 | 95,860 | 116,455 | 10.4 | % | (3.4 | )% | ||||||||||||||
Junior subordinated debentures at fair value | 112,774 | 112,516 | 98,707 | 96,852 | 0.2 | % | 16.4 | % | ||||||||||||||
Accrued expenses and other liabilities | 93,281 | 72,497 | 71,344 | 102,511 | 28.7 | % | (9.0 | )% | ||||||||||||||
Deferred compensation | 40,814 | 41,027 | 41,039 | 40,208 | (0.5 | )% | 1.5 | % | ||||||||||||||
Total liabilities | 9,126,184 | 9,063,141 | 8,490,583 | 8,889,969 | 0.7 | % | 2.7 | % | ||||||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Common stock | 1,173,656 | 1,172,960 | 1,187,127 | 1,215,316 | 0.1 | % | (3.4 | )% | ||||||||||||||
Retained earnings | 84,485 | 79,773 | 90,535 | 94,541 | 5.9 | % | (10.6 | )% | ||||||||||||||
Other components of shareholders' equity | (5,131 | ) | 1,390 | (5,036 | ) | (6 | ) | nm | nm | |||||||||||||
Total shareholders' equity | 1,253,010 | 1,254,123 | 1,272,626 | 1,309,851 | (0.1 | )% | (4.3 | )% | ||||||||||||||
Total liabilities and shareholders' equity | $ | 10,379,194 | $ | 10,317,264 | $ | 9,763,209 | $ | 10,199,820 | 0.6 | % | 1.8 | % | ||||||||||
Common Shares Issued: | ||||||||||||||||||||||
Shares outstanding at end of period | 32,405,696 | 32,423,673 | 32,726,485 | 33,278,031 | ||||||||||||||||||
Common shareholders' equity per share (1) | $ | 38.67 | $ | 38.68 | $ | 38.89 | $ | 39.36 | ||||||||||||||
Common shareholders' tangible equity per share (1) (2) | $ | 30.57 | $ | 30.54 | $ | 30.78 | $ | 31.21 | ||||||||||||||
Common shareholders' tangible equity to tangible assets (2) | 9.79 | % | 9.85 | % | 10.61 | % | 10.46 | % | ||||||||||||||
Consolidated Tier 1 leverage capital ratio | 10.80 | % | 11.06 | % | 11.33 | % | 11.51 | % | ||||||||||||||
(1) | Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding. | ||||
(2) | Common shareholders' tangible equity excludes goodwill and other intangible assets. Tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of the press release tables. | ||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 8
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
Percentage Change | ||||||||||||||||||||||
LOANS | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | Prior Qtr | Prior Yr Qtr | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||
Owner occupied | $ | 1,256,730 | $ | 1,278,814 | $ | 1,284,363 | $ | 1,358,094 | (1.7 | )% | (7.5 | )% | ||||||||||
Investment properties | 1,920,790 | 1,876,937 | 1,937,423 | 1,975,075 | 2.3 | % | (2.7 | )% | ||||||||||||||
Multifamily real estate | 330,384 | 321,039 | 314,188 | 288,442 | 2.9 | % | 14.5 | % | ||||||||||||||
Commercial construction | 166,089 | 163,314 | 148,435 | 144,092 | 1.7 | % | 15.3 | % | ||||||||||||||
Multifamily construction | 147,576 | 159,108 | 154,662 | 111,562 | (7.2 | )% | 32.3 | % | ||||||||||||||
One- to four-family construction | 480,591 | 434,204 | 415,327 | 380,782 | 10.7 | % | 26.2 | % | ||||||||||||||
Land and land development: | ||||||||||||||||||||||
Residential | 163,335 | 167,783 | 164,516 | 147,149 | (2.7 | )% | 11.0 | % | ||||||||||||||
Commercial | 22,849 | 24,331 | 24,583 | 27,917 | (6.1 | )% | (18.2 | )% | ||||||||||||||
Commercial business | 1,312,424 | 1,296,691 | 1,279,894 | 1,286,204 | 1.2 | % | 2.0 | % | ||||||||||||||
Agricultural business including secured by farmland | 336,709 | 307,243 | 338,388 | 344,412 | 9.6 | % | (2.2 | )% | ||||||||||||||
One- to four-family real estate | 840,470 | 833,598 | 848,289 | 800,008 | 0.8 | % | 5.1 | % | ||||||||||||||
Consumer: | ||||||||||||||||||||||
Consumer secured by one- to four-family real estate | 536,007 | 522,826 | 522,931 | 527,623 | 2.5 | % | 1.6 | % | ||||||||||||||
Consumer-other | 170,778 | 170,158 | 165,885 | 160,203 | 0.4 | % | 6.6 | % | ||||||||||||||
Total loans receivable | $ | 7,684,732 | $ | 7,556,046 | $ | 7,598,884 | $ | 7,551,563 | 1.7 | % | 1.8 | % | ||||||||||
Restructured loans performing under their restructured terms | $ | 13,793 | $ | 14,264 | $ | 16,115 | $ | 13,531 | ||||||||||||||
Loans 30 - 89 days past due and on accrual (1) | $ | 8,040 | $ | 23,557 | $ | 29,278 | $ | 15,564 | ||||||||||||||
Total delinquent loans (including loans on non-accrual), net (2) | $ | 22,620 | $ | 42,186 | $ | 50,503 | $ | 32,961 | ||||||||||||||
Total delinquent loans / Total loans receivable | 0.29 | % | 0.56 | % | 0.66 | % | 0.44 | % | ||||||||||||||
(1) Includes $6,000 of purchased credit-impaired loans at June 30, 2018 compared to $1.5 million at March 31, 2018, $943,000 at December 31, 2017, and $835,000 at June 30, 2017.
(2) Delinquent loans include $1.0 million of delinquent purchased credit-impaired loans at June 30, 2018 compared to $2.3 million at March 31, 2018, $2.2 million at December 31, 2017, and $2.5 million at June 30, 2017.
LOANS BY GEOGRAPHIC LOCATION | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||
Washington | $ | 3,550,945 | 46.2% | $ | 3,490,646 | 46.2 | % | $ | 3,508,542 | 46.2 | % | $ | 3,425,627 | 45.3% | ||||||||||||
Oregon | 1,601,939 | 20.9% | 1,580,278 | 20.9 | % | 1,590,233 | 20.9 | % | 1,532,460 | 20.3% | ||||||||||||||||
California | 1,477,293 | 19.2% | 1,405,411 | 18.6 | % | 1,415,076 | 18.6 | % | 1,304,194 | 17.3% | ||||||||||||||||
Idaho | 500,201 | 6.5% | 481,972 | 6.4 | % | 492,603 | 6.5 | % | 487,378 | 6.5% | ||||||||||||||||
Utah | 76,414 | 1.0% | 83,637 | 1.1 | % | 73,382 | 1.0 | % | 294,467 | 3.9% | ||||||||||||||||
Other | 477,940 | 6.2% | 514,102 | 6.8 | % | 519,048 | 6.8 | % | 507,437 | 6.7% | ||||||||||||||||
Total loans receivable | $ | 7,684,732 | 100.0% | $ | 7,556,046 | 100.0 | % | $ | 7,598,884 | 100.0 | % | $ | 7,551,563 | 100.0% | ||||||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 9
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Quarters Ended | Six months ended | |||||||||||||||||||
CHANGE IN THE | Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Balance, beginning of period | $ | 92,207 | $ | 89,028 | $ | 86,527 | $ | 89,028 | $ | 85,997 | ||||||||||
Provision for loan losses | 2,000 | 2,000 | 2,000 | 4,000 | 4,000 | |||||||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||
Commercial real estate | 216 | 1,352 | 264 | 1,568 | 334 | |||||||||||||||
Multifamily real estate | — | — | 11 | — | 11 | |||||||||||||||
Construction and land | 11 | 174 | 1,024 | 185 | 1,107 | |||||||||||||||
One- to four-family real estate | 356 | 290 | 109 | 646 | 254 | |||||||||||||||
Commercial business | 100 | 170 | 171 | 270 | 344 | |||||||||||||||
Agricultural business, including secured by farmland | 41 | — | 19 | 41 | 132 | |||||||||||||||
Consumer | 106 | 112 | 101 | 218 | 195 | |||||||||||||||
830 | 2,098 | 1,699 | 2,928 | 2,377 | ||||||||||||||||
Loans charged off: | ||||||||||||||||||||
Commercial real estate | (299 | ) | — | (47 | ) | (299 | ) | (47 | ) | |||||||||||
One- to four-family real estate | — | (16 | ) | — | (16 | ) | — | |||||||||||||
Commercial business | (375 | ) | (519 | ) | (1,169 | ) | (894 | ) | (2,795 | ) | ||||||||||
Agricultural business, including secured by farmland | (329 | ) | (7 | ) | (104 | ) | (336 | ) | (263 | ) | ||||||||||
Consumer | (159 | ) | (377 | ) | (320 | ) | (536 | ) | (683 | ) | ||||||||||
(1,162 | ) | (919 | ) | (1,640 | ) | (2,081 | ) | (3,788 | ) | |||||||||||
Net (charge-offs) recoveries | (332 | ) | 1,179 | 59 | 847 | (1,411 | ) | |||||||||||||
Balance, end of period | $ | 93,875 | $ | 92,207 | $ | 88,586 | $ | 93,875 | $ | 88,586 | ||||||||||
Net (charge-offs) recoveries / Average loans receivable | (0.004 | )% | 0.015 | % | 0.001 | % | 0.011 | % | (0.018 | )% | ||||||||||
ALLOCATION OF | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||
Specific or allocated loss allowance: | ||||||||||||||||
Commercial real estate | $ | 24,413 | $ | 23,461 | $ | 22,824 | $ | 24,232 | ||||||||
Multifamily real estate | 3,718 | 2,592 | 1,633 | 1,562 | ||||||||||||
Construction and land | 27,034 | 28,766 | 27,568 | 27,312 | ||||||||||||
One- to four-family real estate | 3,932 | 3,779 | 2,055 | 2,010 | ||||||||||||
Commercial business | 19,141 | 19,885 | 18,311 | 19,126 | ||||||||||||
Agricultural business, including secured by farmland | 3,162 | 2,999 | 4,053 | 3,808 | ||||||||||||
Consumer | 5,725 | 5,514 | 3,866 | 3,987 | ||||||||||||
Total allocated | 87,125 | 86,996 | 80,310 | 82,037 | ||||||||||||
Unallocated | 6,750 | 5,211 | 8,718 | 6,549 | ||||||||||||
Total allowance for loan losses | $ | 93,875 | $ | 92,207 | $ | 89,028 | $ | 88,586 | ||||||||
Allowance for loan losses / Total loans receivable | 1.22 | % | 1.22 | % | 1.17 | % | 1.17 | % | ||||||||
Allowance for loan losses / Non-performing loans | 613 | % | 410 | % | 329 | % | 405 | % | ||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 10
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||
(dollars in thousands) | |||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||
NON-PERFORMING ASSETS | |||||||||||||||
Loans on non-accrual status: | |||||||||||||||
Secured by real estate: | |||||||||||||||
Commercial | $ | 4,341 | $ | 6,877 | $ | 10,646 | $ | 6,267 | |||||||
Construction and land | 1,176 | 984 | 798 | 1,726 | |||||||||||
One- to four-family | 2,281 | 2,815 | 3,264 | 2,955 | |||||||||||
Commercial business | 2,673 | 3,037 | 3,406 | 7,037 | |||||||||||
Agricultural business, including secured by farmland | 1,712 | 6,120 | 6,132 | 1,456 | |||||||||||
Consumer | 1,176 | 1,237 | 1,297 | 1,494 | |||||||||||
13,359 | 21,070 | 25,543 | 20,935 | ||||||||||||
Loans more than 90 days delinquent, still on accrual: | |||||||||||||||
Secured by real estate: | |||||||||||||||
Construction and land | 784 | — | 298 | — | |||||||||||
One- to four-family | 905 | 591 | 1,085 | 754 | |||||||||||
Commercial business | 1 | 1 | 18 | 77 | |||||||||||
Agricultural business, including secured by farmland | — | 820 | — | — | |||||||||||
Consumer | 253 | 7 | 85 | 108 | |||||||||||
1,943 | 1,419 | 1,486 | 939 | ||||||||||||
Total non-performing loans | 15,302 | 22,489 | 27,029 | 21,874 | |||||||||||
Real estate owned (REO) | 473 | 328 | 360 | 2,427 | |||||||||||
Other repossessed assets | 733 | 694 | 107 | 181 | |||||||||||
Total non-performing assets | $ | 16,508 | $ | 23,511 | $ | 27,496 | $ | 24,482 | |||||||
Total non-performing assets to total assets | 0.16 | % | 0.23 | % | 0.28 | % | 0.24 | % | |||||||
Purchased credit-impaired loans, net | $ | 18,063 | $ | 19,316 | $ | 21,310 | $ | 26,267 | |||||||
Quarters Ended | Six months ended | ||||||||||||||||||
REAL ESTATE OWNED | Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||
Balance, beginning of period | $ | 328 | $ | 360 | $ | 3,040 | $ | 360 | $ | 11,081 | |||||||||
Additions from loan foreclosures | 393 | 128 | 46 | 521 | 46 | ||||||||||||||
Additions from capitalized costs | — | — | 54 | — | 54 | ||||||||||||||
Proceeds from dispositions of REO | (314 | ) | — | (1,228 | ) | (314 | ) | (10,421 | ) | ||||||||||
Gain on sale of REO | 66 | — | 721 | 66 | 1,923 | ||||||||||||||
Valuation adjustments in the period | — | (160 | ) | (206 | ) | (160 | ) | (256 | ) | ||||||||||
Balance, end of period | $ | 473 | $ | 328 | $ | 2,427 | $ | 473 | $ | 2,427 | |||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 11
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
DEPOSIT COMPOSITION | Percentage Change | |||||||||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | Prior Qtr | Prior Yr | |||||||||||||||||
Non-interest-bearing | $ | 3,346,777 | $ | 3,383,439 | $ | 3,265,544 | $ | 3,254,581 | (1.1 | )% | 2.8 | % | ||||||||||
Interest-bearing checking | 1,012,519 | 1,043,840 | 971,137 | 953,227 | (3.0 | )% | 6.2 | % | ||||||||||||||
Regular savings accounts | 1,635,080 | 1,637,814 | 1,557,500 | 1,530,517 | (0.2 | )% | 6.8 | % | ||||||||||||||
Money market accounts | 1,384,684 | 1,459,614 | 1,422,313 | 1,539,165 | (5.1 | )% | (10.0 | )% | ||||||||||||||
Total interest-bearing transaction and savings accounts | 4,032,283 | 4,141,268 | 3,950,950 | 4,022,909 | (2.6 | )% | 0.2 | % | ||||||||||||||
Interest-bearing certificates | 1,148,607 | 1,018,355 | 966,937 | 1,206,241 | 12.8 | % | (4.8 | )% | ||||||||||||||
Total deposits | $ | 8,527,667 | $ | 8,543,062 | $ | 8,183,431 | $ | 8,483,731 | (0.2 | )% | 0.5 | % | ||||||||||
GEOGRAPHIC CONCENTRATION OF DEPOSITS | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||
Washington | $ | 4,735,357 | 55.6% | $ | 4,766,646 | 55.8% | $ | 4,506,249 | 55.0% | $ | 4,615,284 | 54.4% | ||||||||||||
Oregon | 1,886,435 | 22.1% | 1,868,043 | 21.9% | 1,797,147 | 22.0% | 1,806,639 | 21.3% | ||||||||||||||||
California | 1,444,413 | 16.9% | 1,454,421 | 17.0% | 1,432,819 | 17.5% | 1,445,621 | 17.0% | ||||||||||||||||
Idaho | 461,462 | 5.4% | 453,952 | 5.3% | 447,216 | 5.5% | 416,933 | 4.9% | ||||||||||||||||
Utah | — | —% | — | —% | — | —% | 199,254 | 2.3% | ||||||||||||||||
Total deposits | $ | 8,527,667 | 100.0% | $ | 8,543,062 | 100.0% | $ | 8,183,431 | 100.0% | $ | 8,483,731 | 100.0% | ||||||||||||
INCLUDED IN TOTAL DEPOSITS | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||
Public non-interest-bearing accounts | $ | 86,040 | $ | 78,714 | $ | 86,987 | $ | 85,760 | ||||||||
Public interest-bearing transaction & savings accounts | 114,457 | 111,597 | 111,732 | 124,075 | ||||||||||||
Public interest-bearing certificates | 24,390 | 24,928 | 23,685 | 30,496 | ||||||||||||
Total public deposits | $ | 224,887 | $ | 215,239 | $ | 222,404 | $ | 240,331 | ||||||||
Total brokered deposits | $ | 280,055 | $ | 169,523 | $ | 57,228 | $ | 250,001 | ||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 12
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Actual | Minimum to be categorized as "Adequately Capitalized" | Minimum to be categorized as "Well Capitalized" | |||||||||||||||||||
REGULATORY CAPITAL RATIOS AS OF JUNE 30, 2018 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Banner Corporation-consolidated: | |||||||||||||||||||||
Total capital to risk-weighted assets | $ | 1,190,024 | 13.73 | % | $ | 693,399 | 8.00 | % | $ | 866,749 | 10.00 | % | |||||||||
Tier 1 capital to risk-weighted assets | 1,093,700 | 12.62 | % | 520,049 | 6.00 | % | 520,049 | 6.00 | % | ||||||||||||
Tier 1 leverage capital to average assets | 1,093,700 | 10.80 | % | 404,968 | 4.00 | % | n/a | n/a | |||||||||||||
Common equity tier 1 capital to risk-weighted assets | 957,700 | 11.05 | % | 390,037 | 4.50 | % | n/a | n/a | |||||||||||||
Banner Bank: | |||||||||||||||||||||
Total capital to risk-weighted assets | 1,108,529 | 13.08 | % | 677,868 | 8.00 | % | 847,335 | 10.00 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 1,014,649 | 11.97 | % | 508,401 | 6.00 | % | 677,868 | 8.00 | % | ||||||||||||
Tier 1 leverage capital to average assets | 1,014,649 | 10.31 | % | 393,726 | 4.00 | % | 492,157 | 5.00 | % | ||||||||||||
Common equity tier 1 capital to risk-weighted assets | 1,014,649 | 11.97 | % | 381,301 | 4.50 | % | 550,768 | 6.50 | % | ||||||||||||
Islanders Bank: | |||||||||||||||||||||
Total capital to risk-weighted assets | 33,330 | 16.98 | % | 15,701 | 8.00 | % | 19,627 | 10.00 | % | ||||||||||||
Tier 1 capital to risk-weighted assets | 30,886 | 15.74 | % | 11,776 | 6.00 | % | 15,701 | 8.00 | % | ||||||||||||
Tier 1 leverage capital to average assets | 30,886 | 11.03 | % | 11,202 | 4.00 | % | 14,002 | 5.00 | % | ||||||||||||
Common equity tier 1 capital to risk-weighted assets | 30,886 | 15.74 | % | 8,832 | 4.50 | % | 12,757 | 6.50 | % | ||||||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 13
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
(rates / ratios annualized) | ||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD | Quarters Ended | |||||||||||||||||||||||||
June 30, 2018 | March 31, 2018 | June 30, 2017 | ||||||||||||||||||||||||
Average Balance | Interest and Dividends | Yield / Cost(3) | Average Balance | Interest and Dividends | Yield / Cost(3) | Average Balance | Interest and Dividends | Yield / Cost(3) | ||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Mortgage loans | $ | 6,163,224 | $ | 78,203 | 5.09 | % | $ | 6,065,199 | $ | 74,346 | 4.97 | % | $ | 5,987,295 | $ | 74,459 | 4.99 | % | ||||||||
Commercial/agricultural loans | 1,479,148 | 19,381 | 5.26 | % | 1,456,303 | 17,423 | 4.85 | % | 1,503,548 | 18,179 | 4.85 | % | ||||||||||||||
Consumer and other loans | 141,401 | 2,269 | 6.44 | % | 140,627 | 2,253 | 6.50 | % | 138,724 | 2,157 | 6.24 | % | ||||||||||||||
Total loans(1) | 7,783,773 | 99,853 | 5.15 | % | 7,662,129 | 94,022 | 4.98 | % | 7,629,567 | 94,795 | 4.98 | % | ||||||||||||||
Mortgage-backed securities | 1,261,809 | 8,899 | 2.83 | % | 1,057,878 | 7,331 | 2.81 | % | 1,067,255 | 6,239 | 2.34 | % | ||||||||||||||
Other securities | 473,953 | 3,331 | 2.82 | % | 462,947 | 3,090 | 2.71 | % | 471,894 | 3,192 | 2.71 | % | ||||||||||||||
Interest-bearing deposits with banks | 51,886 | 211 | 1.63 | % | 64,512 | 231 | 1.45 | % | 54,051 | 139 | 1.03 | % | ||||||||||||||
FHLB stock | 22,231 | 129 | 2.33 | % | 16,549 | 146 | 3.58 | % | 14,472 | 71 | 1.97 | % | ||||||||||||||
Total investment securities | 1,809,879 | 12,570 | 2.79 | % | 1,601,886 | 10,798 | 2.73 | % | 1,607,672 | 9,641 | 2.41 | % | ||||||||||||||
Total interest-earning assets | 9,593,652 | 112,423 | 4.70 | % | 9,264,015 | 104,820 | 4.59 | % | 9,237,239 | 104,436 | 4.53 | % | ||||||||||||||
Non-interest-earning assets | 804,229 | 805,503 | 896,136 | |||||||||||||||||||||||
Total assets | $ | 10,397,881 | $ | 10,069,518 | $ | 10,133,375 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||
Interest-bearing checking accounts | $ | 1,051,409 | 281 | 0.11 | % | $ | 1,003,929 | 246 | 0.10 | % | $ | 927,375 | 210 | 0.09 | % | |||||||||||
Savings accounts | 1,648,739 | 811 | 0.20 | % | 1,601,671 | 627 | 0.16 | % | 1,553,019 | 527 | 0.14 | % | ||||||||||||||
Money market accounts | 1,419,578 | 792 | 0.22 | % | 1,442,685 | 666 | 0.19 | % | 1,534,551 | 689 | 0.18 | % | ||||||||||||||
Certificates of deposit | 1,067,742 | 2,380 | 0.89 | % | 998,738 | 1,819 | 0.74 | % | 1,200,435 | 1,756 | 0.59 | % | ||||||||||||||
Total interest-bearing deposits | 5,187,468 | 4,264 | 0.33 | % | 5,047,023 | 3,358 | 0.27 | % | 5,215,380 | 3,182 | 0.24 | % | ||||||||||||||
Non-interest-bearing deposits | 3,324,104 | — | — | % | 3,282,686 | — | — | % | 3,158,727 | — | — | % | ||||||||||||||
Total deposits | 8,511,572 | 4,264 | 0.20 | % | 8,329,709 | 3,358 | 0.16 | % | 8,374,107 | 3,182 | 0.15 | % | ||||||||||||||
Other interest-bearing liabilities: | ||||||||||||||||||||||||||
FHLB advances | 296,495 | 1,499 | 2.03 | % | 155,540 | 677 | 1.77 | % | 103,848 | 301 | 1.16 | % | ||||||||||||||
Other borrowings | 105,013 | 49 | 0.19 | % | 101,111 | 70 | 0.28 | % | 116,513 | 83 | 0.29 | % | ||||||||||||||
Junior subordinated debentures | 140,212 | 1,548 | 4.43 | % | 140,212 | 1,342 | 3.88 | % | 140,212 | 1,164 | 3.33 | % | ||||||||||||||
Total borrowings | 541,720 | 3,096 | 2.29 | % | 396,863 | 2,089 | 2.13 | % | 360,573 | 1,548 | 1.72 | % | ||||||||||||||
Total funding liabilities | 9,053,292 | 7,360 | 0.33 | % | 8,726,572 | 5,447 | 0.25 | % | 8,734,680 | 4,730 | 0.22 | % | ||||||||||||||
Other non-interest-bearing liabilities(2) | 75,784 | 65,978 | 56,175 | |||||||||||||||||||||||
Total liabilities | 9,129,076 | 8,792,550 | 8,790,855 | |||||||||||||||||||||||
Shareholders' equity | 1,268,805 | 1,276,968 | 1,342,520 | |||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 10,397,881 | $ | 10,069,518 | $ | 10,133,375 | ||||||||||||||||||||
Net interest income/rate spread | $ | 105,063 | 4.37 | % | $ | 99,373 | 4.34 | % | $ | 99,706 | 4.31 | % | ||||||||||||||
Net interest margin | 4.39 | % | 4.35 | % | 4.33 | % | ||||||||||||||||||||
Additional Key Financial Ratios: | ||||||||||||||||||||||||||
Return on average assets | 1.25 | % | 1.16 | % | 1.01 | % | ||||||||||||||||||||
Return on average equity | 10.25 | % | 9.14 | % | 7.60 | % | ||||||||||||||||||||
Average equity/average assets | 12.20 | % | 12.68 | % | 13.25 | % | ||||||||||||||||||||
Average interest-earning assets/average interest-bearing liabilities | 167.45 | % | 170.17 | % | 165.66 | % | ||||||||||||||||||||
Average interest-earning assets/average funding liabilities | 105.97 | % | 106.16 | % | 105.75 | % | ||||||||||||||||||||
Non-interest income/average assets | 0.82 | % | 0.86 | % | 0.81 | % | ||||||||||||||||||||
Non-interest expense/average assets | 3.19 | % | 3.29 | % | 3.16 | % | ||||||||||||||||||||
Efficiency ratio(4) | 65.44 | % | 67.67 | % | 66.49 | % | ||||||||||||||||||||
Adjusted efficiency ratio(5) | 64.09 | % | 67.42 | % | 64.83 | % | ||||||||||||||||||||
(1) | Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
(2) | Average other non-interest-bearing liabilities include fair value adjustments related to FHLB advances and junior subordinated debentures. |
(3) | Yields and costs have not been adjusted for the effect of tax-exempt interest. |
(4) | Non-interest expense divided by the total of net interest income (before provision for loan losses) and non-interest income. |
(5) | Adjusted non-interest expense divided by adjusted revenue. Adjusted revenue excludes net gain (loss) on sale of securities and fair value adjustments. Adjusted non-interest expense excludes amortization of core deposit intangibles (CDI), REO gain (loss), and state/municipal business and use taxes. These represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of the press release tables. |
BANR - Second Quarter 2018 Results
July 25, 2018
Page 14
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
(rates / ratios annualized) | |||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD | Six months ended | ||||||||||||||||
June 30, 2018 | June 30, 2017 | ||||||||||||||||
Average Balance | Interest and Dividends | Yield/Cost(3) | Average Balance | Interest and Dividends | Yield/Cost(3) | ||||||||||||
Interest-earning assets: | |||||||||||||||||
Mortgage loans | $ | 6,114,482 | $ | 152,549 | 5.03 | % | $ | 6,045,712 | $ | 147,008 | 4.90 | % | |||||
Commercial/agricultural loans | 1,467,789 | 36,803 | 5.06 | % | 1,484,148 | 34,725 | 4.72 | % | |||||||||
Consumer and other loans | 141,016 | 4,523 | 6.47 | % | 138,380 | 4,350 | 6.34 | % | |||||||||
Total loans(1) | 7,723,287 | 193,875 | 5.06 | % | 7,668,240 | 186,083 | 4.89 | % | |||||||||
Mortgage-backed securities | 1,160,407 | 16,230 | 2.82 | % | 955,285 | 10,886 | 2.30 | % | |||||||||
Other securities | 468,480 | 6,420 | 2.76 | % | 462,894 | 6,229 | 2.71 | % | |||||||||
Interest-bearing deposits with banks | 58,164 | 442 | 1.53 | % | 43,183 | 232 | 1.08 | % | |||||||||
FHLB stock | 19,406 | 276 | 2.87 | % | 15,008 | 102 | 1.37 | % | |||||||||
Total investment securities | 1,706,457 | 23,368 | 2.76 | % | 1,476,370 | 17,449 | 2.38 | % | |||||||||
Total interest-earning assets | 9,429,744 | 217,243 | 4.65 | % | 9,144,610 | 203,532 | 4.49 | % | |||||||||
Non-interest-earning assets | 804,862 | 909,576 | |||||||||||||||
Total assets | $ | 10,234,606 | $ | 10,054,186 | |||||||||||||
Deposits: | |||||||||||||||||
Interest-bearing checking accounts | $ | 1,027,800 | 527 | 0.10 | % | $ | 912,154 | 410 | 0.09 | % | |||||||
Savings accounts | 1,625,335 | 1,438 | 0.18 | % | 1,555,363 | 1,050 | 0.14 | % | |||||||||
Money market accounts | 1,431,068 | 1,458 | 0.21 | % | 1,528,545 | 1,340 | 0.18 | % | |||||||||
Certificates of deposit | 1,033,431 | 4,199 | 0.82 | % | 1,145,182 | 3,173 | 0.56 | % | |||||||||
Total interest-bearing deposits | 5,117,634 | 7,622 | 0.30 | % | 5,141,244 | 5,973 | 0.23 | % | |||||||||
Non-interest-bearing deposits | 3,303,509 | — | — | % | 3,153,652 | — | — | % | |||||||||
Total deposits | 8,421,143 | 7,622 | 0.18 | % | 8,294,896 | 5,973 | 0.15 | % | |||||||||
Other interest-bearing liabilities: | |||||||||||||||||
FHLB advances | 226,407 | 2,177 | 1.94 | % | 116,988 | 574 | 0.99 | % | |||||||||
Other borrowings | 103,073 | 119 | 0.23 | % | 112,325 | 157 | 0.28 | % | |||||||||
Junior subordinated debentures | 140,212 | 2,889 | 4.16 | % | 140,212 | 2,268 | 3.26 | % | |||||||||
Total borrowings | 469,692 | 5,185 | 2.23 | % | 369,525 | 2,999 | 1.64 | % | |||||||||
Total funding liabilities | 8,890,835 | 12,807 | 0.29 | % | 8,664,421 | 8,972 | 0.21 | % | |||||||||
Other non-interest-bearing liabilities(2) | 70,908 | 57,325 | |||||||||||||||
Total liabilities | 8,961,743 | 8,721,746 | |||||||||||||||
Shareholders' equity | 1,272,863 | 1,332,440 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 10,234,606 | $ | 10,054,186 | |||||||||||||
Net interest income/rate spread | $ | 204,436 | 4.36 | % | $ | 194,560 | 4.28 | % | |||||||||
Net interest margin | 4.37 | % | 4.29 | % | |||||||||||||
Additional Key Financial Ratios: | |||||||||||||||||
Return on average assets | 1.21 | % | 0.99 | % | |||||||||||||
Return on average equity | 9.70 | % | 7.45 | % | |||||||||||||
Average equity/average assets | 12.44 | % | 13.25 | % | |||||||||||||
Average interest-earning assets/average interest-bearing liabilities | 168.77 | % | 165.94 | % | |||||||||||||
Average interest-earning assets/average funding liabilities | 106.06 | % | 105.54 | % | |||||||||||||
Non-interest income/average assets | 0.84 | % | 0.79 | % | |||||||||||||
Non-interest expense/average assets | 3.24 | % | 3.13 | % | |||||||||||||
Efficiency ratio(4) | 66.53 | % | 66.72 | % | |||||||||||||
Adjusted efficiency ratio(5) | 65.70 | % | 65.06 | % | |||||||||||||
(1) | Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
(2) | Average other non-interest-bearing liabilities include fair value adjustments related to FHLB advances and junior subordinated debentures. |
(3) | Yields and costs have not been adjusted for the effect of tax-exempt interest. |
(4) | Non-interest expense divided by the total of net interest income (before provision for loan losses) and non-interest income. |
(5) | Adjusted non-interest expense divided by adjusted revenue. Adjusted revenue excludes net gain (loss) on sale of securities and fair value adjustments. Adjusted non-interest expense excludes acquisition related costs, amortization of CDI, real estate operations expense, and state/municipal business and use taxes. These represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of the press release tables. |
BANR - Second Quarter 2018 Results
July 25, 2018
Page 15
ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||
* Non-GAAP Financial Measures | |||||||||||||||||||
In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner's core operations reflected in the current quarter's results and facilitate the comparison of our performance with the performance of our peers. Where applicable, comparable earnings information using GAAP financial measures is also presented. | |||||||||||||||||||
REVENUE FROM CORE OPERATIONS | Quarters Ended | Six months ended | |||||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||
Net interest income before provision for loan losses | $ | 105,063 | $ | 99,373 | $ | 99,706 | $ | 204,436 | $ | 194,560 | |||||||||
Total non-interest income | 21,217 | 21,362 | 20,396 | 42,579 | 39,443 | ||||||||||||||
Total GAAP revenue | 126,280 | 120,735 | 120,102 | 247,015 | 234,003 | ||||||||||||||
Exclude net (gain) loss on sale of securities | (44 | ) | (4 | ) | 54 | (48 | ) | 41 | |||||||||||
Exclude change in valuation of financial instruments carried at fair value | (224 | ) | (3,308 | ) | 650 | (3,532 | ) | 1,338 | |||||||||||
Revenue from core operations (non-GAAP) | $ | 126,012 | $ | 117,423 | $ | 120,806 | $ | 243,435 | $ | 235,382 | |||||||||
EARNINGS FROM CORE OPERATIONS | Quarters Ended | Six months ended | ||||||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||||
Net income (GAAP) | $ | 32,424 | $ | 28,790 | $ | 25,454 | $ | 61,214 | $ | 49,247 | ||||||||||
Exclude net (gain) loss on sale of securities | (44 | ) | (4 | ) | 54 | (48 | ) | 41 | ||||||||||||
Exclude change in valuation of financial instruments carried at fair value | (224 | ) | (3,308 | ) | 650 | (3,532 | ) | 1,338 | ||||||||||||
Exclude related tax expense (benefit) | 64 | 795 | (253 | ) | 859 | (496 | ) | |||||||||||||
Total earnings from core operations (non-GAAP) | $ | 32,220 | $ | 26,273 | $ | 25,905 | $ | 58,493 | $ | 50,130 | ||||||||||
Diluted earnings per share (GAAP) | $ | 1.00 | $ | 0.89 | $ | 0.77 | $ | 1.89 | $ | 1.49 | ||||||||||
Diluted core earnings per share (non-GAAP) | $ | 1.00 | $ | 0.81 | $ | 0.78 | $ | 1.80 | $ | 1.52 | ||||||||||
BANR - Second Quarter 2018 Results
July 25, 2018
Page 16
ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
ADJUSTED EFFICIENCY RATIO | Quarters Ended | Six months ended | ||||||||||||||||||
Jun 30, 2018 | Mar 31, 2018 | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||||
Non-interest expense (GAAP) | $ | 82,637 | $ | 81,706 | $ | 79,857 | $ | 164,343 | $ | 156,137 | ||||||||||
Exclude CDI amortization | (1,382 | ) | (1,382 | ) | (1,624 | ) | (2,764 | ) | (3,248 | ) | ||||||||||
Exclude state/municipal tax expense | (816 | ) | (713 | ) | (279 | ) | (1,529 | ) | (1,078 | ) | ||||||||||
Exclude REO gain (loss) | 319 | (439 | ) | 363 | (121 | ) | 1,329 | |||||||||||||
Adjusted non-interest expense (non-GAAP) | $ | 80,758 | $ | 79,172 | $ | 78,317 | $ | 159,929 | $ | 153,140 | ||||||||||
Net interest income before provision for loan losses (GAAP) | $ | 105,063 | $ | 99,373 | $ | 99,706 | $ | 204,436 | $ | 194,560 | ||||||||||
Non-interest income (GAAP) | 21,217 | 21,362 | 20,396 | 42,579 | 39,443 | |||||||||||||||
Total revenue | 126,280 | 120,735 | 120,102 | 247,015 | 234,003 | |||||||||||||||
Exclude net (gain) loss on sale of securities | (44 | ) | (4 | ) | 54 | (48 | ) | 41 | ||||||||||||
Exclude net change in valuation of financial instruments carried at fair value | (224 | ) | (3,308 | ) | 650 | (3,532 | ) | 1,338 | ||||||||||||
Adjusted revenue (non-GAAP) | $ | 126,012 | $ | 117,423 | $ | 120,806 | $ | 243,435 | $ | 235,382 | ||||||||||
Efficiency ratio (GAAP) | 65.44 | % | 67.67 | % | 66.49 | % | 66.53 | % | 66.72 | % | ||||||||||
Adjusted efficiency ratio (non-GAAP) | 64.09 | % | 67.42 | % | 64.83 | % | 65.70 | % | 65.06 | % | ||||||||||
TANGIBLE COMMON SHAREHOLDERS' EQUITY TO TANGIBLE ASSETS | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Jun 30, 2017 | ||||||||||||
Shareholders' equity (GAAP) | $ | 1,253,010 | $ | 1,254,123 | $ | 1,272,626 | $ | 1,309,851 | ||||||||
Exclude goodwill and other intangible assets, net | 262,517 | 263,910 | 265,314 | 271,396 | ||||||||||||
Tangible common shareholders' equity (non-GAAP) | $ | 990,493 | $ | 990,213 | $ | 1,007,312 | $ | 1,038,455 | ||||||||
Total assets (GAAP) | $ | 10,379,194 | $ | 10,317,264 | $ | 9,763,209 | $ | 10,199,820 | ||||||||
Exclude goodwill and other intangible assets, net | 262,517 | 263,910 | 265,314 | 271,396 | ||||||||||||
Total tangible assets (non-GAAP) | $ | 10,116,677 | $ | 10,053,354 | $ | 9,497,895 | $ | 9,928,424 | ||||||||
Common shareholders' equity to total assets (GAAP) | 12.07 | % | 12.16 | % | 13.03 | % | 12.84 | % | ||||||||
Tangible common shareholders' equity to tangible assets (non-GAAP) | 9.79 | % | 9.85 | % | 10.61 | % | 10.46 | % | ||||||||
TANGIBLE COMMON SHAREHOLDERS' EQUITY PER SHARE | ||||||||||||||||
Tangible common shareholders' equity | $ | 990,493 | $ | 990,213 | $ | 1,007,312 | $ | 1,038,455 | ||||||||
Common shares outstanding at end of period | 32,405,696 | 32,423,673 | 32,726,485 | 33,278,031 | ||||||||||||
Common shareholders' equity (book value) per share (GAAP) | $ | 38.67 | $ | 38.68 | $ | 38.89 | $ | 39.36 | ||||||||
Tangible common shareholders' equity (tangible book value) per share (non-GAAP) | $ | 30.57 | $ | 30.54 | $ | 30.78 | $ | 31.21 | ||||||||