-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WMTRKnR+XorZ2Y/fYKtxeCItko8aXQiDNs9jGzNrTEcpogWW25XbYXd8GfG6mJ2l TuOns9RAFy0oe4qsLMqCRw== 0000939057-04-000405.txt : 20041025 0000939057-04-000405.hdr.sgml : 20041025 20041025151111 ACCESSION NUMBER: 0000939057-04-000405 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20041022 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041025 DATE AS OF CHANGE: 20041025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANNER CORP CENTRAL INDEX KEY: 0000946673 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTIONS, NOT FEDERALLY CHARTERED [6036] IRS NUMBER: 911691604 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26584 FILM NUMBER: 041093875 BUSINESS ADDRESS: STREET 1: 10 S FIRST AVENUE CITY: WALLA WALLA STATE: WA ZIP: 99362 BUSINESS PHONE: 5095273636 MAIL ADDRESS: STREET 1: 10 S FIRST AVENUE CITY: WALLA WALLA STATE: WA ZIP: 99362 FORMER COMPANY: FORMER CONFORMED NAME: FIRST WASHINGTON BANCORP INC /WA/ DATE OF NAME CHANGE: 19980727 FORMER COMPANY: FORMER CONFORMED NAME: FIRST SAVINGS BANK OF WASHINGTON BANCORP INC DATE OF NAME CHANGE: 19950614 8-K 1 k8102204.txt BANNER CORPORATION FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2004 Banner Corporation ------------------------------------------------------ (Exact name of registrant as specified in its charter) Washington 0-26584 91-1691604 ---------------------------- ----------- ------------------ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 10 S. First Avenue, Walla Walla, Washington 99362 ------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number (including area code): (509) 527-3636 Not Applicable -------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition - -------------------------------------------------------- On October 22, 2004, Banner Corporation issued its earnings release for the quarter ended September 30, 2004. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference. Item 9.01 Financial Statements and Exhibits - -------------------------------------------- (c) Exhibits 99.1 Press Release of Banner Corporation dated October 22, 2004. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. BANNER CORPORATION DATE: October 22, 2004 By: /s/ D. Michael Jones ------------------------------------- D. Michael Jones President and Chief Executive Officer Exhibit 99.1 Contact: D. Michael Jones, President and CEO Lloyd W. Baker, CFO (509) 527-3636 News Release ============================================================================== BANNER CORPORATION'S THIRD QUARTER PROFITS INCREASE 24% TO $5.2 MILLION ----------------------------------------------------------------------- AS LOANS INCREASE 17%, MARGINS EXPAND AND LOAN QUALITY IMPROVES --------------------------------------------------------------- Walla Walla, WA--October 22, 2004--Banner Corporation (Nasdaq:BANR), 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 2004 Highlights (Compared to Third Quarter 2003) . Net income increased 24% to $5.2 million. . Net interest income, after the provision for loan loss, increased 30% to $23.7 million. . Non-performing assets are 25% lower. . Net interest margin improved by 44 basis points. . Revenues increased 18% to $29.9 million. . Assets grew 13% to $2.8 billion. . Loans grew 17% to $1.95 billion. . Deposits grew 12% to $1.91 billion. Income Statement Review 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. BANR-Third Quarter Results October 22, 2004 Page 2 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. Balance Sheet Review 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. Credit Quality "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. Conference Call The Company will host a conference call today, Friday, October 22, 2004, at 8:00 a.m. PDT, to discuss the third quarter results. The conference call can be accessed live by telephone at 303-262-2211. To listen to the call online, go to the Company's website at www.bannerbank.com or to www.fulldisclosure.com. Institutional investors may access the call via the subscriber-only site, www.streetevents.com. An archived recording of the call can be accessed by dialing 303-590-3000, passcode 11010735# until Friday, October 29, 2004 or via the Internet at www.fulldisclosure.com. BANR-Third Quarter Results October 22, 2004 Page 3 About the Company 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. Visit Banner Bank on the Web at www.bannerbank.com. Statements concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that are beyond the Company's control and might cause actual results to differ materially from the expectations and stated objectives. Factors which could cause actual results to differ materially include, but are not limited to, regional and general economic conditions, management's ability to generate continued improvement in asset quality and profitability, changes in interest rates, deposit flows, demand for mortgages and other loans, real estate values, competition, loan delinquency rates, the successful operation of the newly-opened branches and loan offices, changes in accounting principles, practices, policies or guidelines, changes in legislation or regulation, other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products and services and Banner's ability to successfully resolve the outstanding credit issues and/or recover check kiting losses. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Banner undertakes no responsibility to update or revise any forward-looking statements. (tables follow) BANR-Third Quarter Results October 22, 2004 Page 4 RESULTS OF OPERATIONS - --------------------- (In thousands except share and per share data) Quarters Ended 9 Months Ended ------------------------------------- --------------------------- Sept 30, Jun 30, Sep 30, Sept 30, Sep 30, 2004 2004 2003 2004 2003 ----------- ----------- ----------- ------------ ----------- INTEREST INCOME: Loans receivable $ 33,051 $ 30,298 $ 29,260 $ 92,368 $ 87,500 Mortgage-backed securities 4,155 4,394 2,227 13,076 8,462 Securities and cash equivalents 3,194 3,140 3,035 9,415 8,690 ----------- ----------- ----------- ----------- ----------- 40,400 37,832 34,522 114,859 104,652 INTEREST EXPENSE: Deposits 9,074 8,404 8,889 25,342 26,611 Federal Home Loan Bank advances 5,058 4,962 5,339 15,145 16,786 Junior subordinated debentures / trust preferred securities 911 843 446 2,446 1,559 Other borrowings 257 223 188 717 563 ----------- ----------- ----------- ----------- ----------- 15,300 14,432 14,862 43,650 45,519 ----------- ----------- ----------- ----------- ----------- Net interest income before provision for loan losses 25,100 23,400 19,660 71,209 59,133 PROVISION FOR LOAN LOSSES 1,444 1,450 1,400 4,344 5,900 ----------- ----------- ----------- ----------- ----------- Net interest income 23,656 21,950 18,260 66,865 53,233 OTHER OPERATING INCOME: Deposit fees and other service charges 2,148 2,057 1,895 6,048 5,392 Mortgage banking operations 1,383 1,452 2,924 4,087 8,230 Loan servicing fees 711 347 241 1,324 688 Gain (loss) on sale of securities 67 62 15 140 18 Miscellaneous 441 207 464 1,092 1,412 ----------- ----------- ----------- ----------- ----------- Total other operating income 4,750 4,125 5,539 12,691 15,740 OTHER OPERATING EXPENSE: Salary and employee benefits 13,719 13,024 12,495 38,846 35,295 Less capitalized loan origination costs (1,806) (1,891) (2,028) (5,184) (5,578) Occupancy and equipment 2,791 2,645 2,447 7,923 7,168 Information / computer data services 1,107 1,016 930 3,149 2,636 Professional services 746 790 626 2,451 1,899 Advertising 1,108 1,341 919 3,557 2,586 Miscellaneous 3,257 2,611 2,479 8,544 8,194 ----------- ----------- ----------- ----------- ----------- Total other operating expense 20,922 19,536 17,868 59,286 52,200 ----------- ----------- ----------- ----------- ----------- Income before provision for income taxes 7,484 6,539 5,931 20,270 16,773 PROVISION FOR INCOME TAXES 2,322 1,991 1,778 6,197 5,070 ----------- ----------- ----------- ----------- ----------- NET INCOME $ 5,162 $ 4,548 $ 4,153 $ 14,073 $ 11,703 =========== =========== =========== =========== =========== Earnings per share Basic $ 0.46 $ 0.41 $ 0.38 $ 1.27 $ 1.08 Diluted $ 0.44 $ 0.39 $ 0.37 $ 1.20 $ 1.05 Cumulative dividends declared per common share $ 0.16 $ 0.16 $ 0.15 $ 0.48 $ 0.45 Weighted average shares outstanding Basic 11,168,735 11,140,502 10,842,791 11,120,318 10,811,745 Diluted 11,736,415 11,720,499 11,268,718 11,702,890 11,147,048 Shares repurchased during the period 104 11,953 5,701 19,786 8,726 (more)
BANR-Third Quarter Results October 22, 2004 Page 5 FINANCIAL CONDITION - ------------------- In thousands except share and per share data) Sept 30, Jun 30, Sept 30, Dec 31, ASSETS 2004 2004 2003 2003 - ------ ----------- ----------- ----------- ----------- Cash and due from banks $ 65,800 $ 53,699 $ 72,320 $ 77,298 Securities available for sale 583,196 600,048 592,830 674,942 Securities held to maturity 49,554 51,211 12,528 27,232 Federal Home Loan Bank stock 35,698 35,387 34,262 34,693 Loans receivable: Held for sale 8,303 5,887 23,593 15,912 Held for portfolio 1,976,100 1,903,532 1,668,392 1,711,013 Allowance for loan losses (29,407) (28,037) (26,161) (26,060) ----------- ----------- ----------- ----------- 1,954,996 1,881,382 1,665,824 1,700,865 Accrued interest receivable 14,930 14,341 13,944 13,410 Real estate owned held for sale, net 2,923 3,564 6,849 2,967 Property and equipment, net 35,351 32,815 22,074 22,818 Goodwill and other intangibles, net 36,405 36,441 36,563 36,513 Deferred income tax asset, net 5,266 7,024 1,391 1,941 Bank-owned life insurance 34,957 34,529 33,218 33,669 Other assets 11,086 9,629 10,563 8,965 ----------- ----------- ----------- ----------- $ 2,830,162 $ 2,760,070 $ 2,502,366 $ 2,635,313 =========== =========== =========== =========== LIABILITIES - ----------- Deposits: Non-interest- bearing $ 229,624 $ 209,704 $ 203,396 $ 205,656 Interest-bearing 1,681,548 1,622,889 1,502,324 1,465,284 ----------- ----------- ----------- ----------- 1,911,172 1,832,593 1,705,720 1,670,940 Borrowings: Advances from Federal Home Loan Bank 530,958 555,058 461,552 612,552 Junior subordinated debentures 72,168 72,168 55,000 56,703 Other borrowings 79,080 72,539 58,764 69,444 ----------- ----------- ----------- ----------- 682,206 699,765 575,316 738,699 Accrued expenses and other liabilities 21,288 17,911 19,139 18,444 Deferred compensation 4,931 4,739 4,006 4,252 Income taxes payable 50 2,768 - - 178 ----------- ----------- ----------- ----------- 2,619,647 2,557,776 2,304,181 2,432,513 STOCKHOLDERS' EQUITY - --------------------- Common stock 125,672 125,438 121,383 123,375 Retained earnings 88,796 85,494 77,411 80,286 Accumulated other comprehensive income 183 (4,461) 4,166 3,191 Unearned shares of common stock issued to Employee Stock Ownership Plan (ESOP) trust: at cost (3,628) (3,628) (4,264) (3,589) Net carrying value of stock related deferred compensation plans (508) (549) (511) (463) ----------- ----------- ----------- ----------- 210,515 202,294 198,185 202,800 ----------- ----------- ----------- ----------- $ 2,830,162 $ 2,760,070 $ 2,502,366 $ 2,635,313 =========== =========== =========== =========== Shares Issued: Shares outstanding at end of period 11,652,816 11,630,434 11,415,636 11,473,331 Less unearned ESOP shares at end of period 438,985 438,985 515,960 434,299 ----------- ----------- ----------- ----------- Shares outstanding at end of period excluding unearned ESOP shares 11,213,831 11,191,449 10,899,676 11,039,032 =========== =========== =========== =========== Book value per share (1) $ 18.77 $ 18.08 $ 18.18 $ 18.37 Tangible book value per share (1) $ 15.53 $ 14.82 $ 14.83 $ 15.06 Consolidated Tier 1 leverage capital ratio 8.85% 8.86% 8.64% 8.73% (1) Calculation is based on number of shares outstanding at the end of the period rather than weighted average shares outstanding and excludes unallocated shares in the employee stock ownership plan (ESOP). (more) BANR-Third Quarter Results October 22, 2004 Page 6 ADDITIONAL FINANCIAL INFORMATION (Dollars in thousands) LOANS (including loans - ---------------------- Sept 30, Jun 30, Sept 30, Dec 31, held for sale): 2004 2004 2003 2003 ------------- ---------- ---------- ---------- ---------- Commercial real estate $ 531,714 $ 506,411 $ 433,800 $ 455,964 Multifamily real estate 104,713 104,936 76,397 89,072 Construction and land 451,393 433,611 392,819 398,954 Commercial business 364,235 340,493 326,368 321,671 Agricultural business including secured by farmland 156,110 160,920 122,890 118,903 One- to four-family real estate 298,759 287,990 274,723 275,197 Consumer 77,479 75,058 64,988 67,164 ---------- ---------- ---------- ---------- Total loans outstanding $1,984,403 $1,909,419 $1,691,985 $1,726,925 ========== ========== ========== ========== Sept 30, Jun 30, Sept 30, Dec 31, NON-PERFORMING ASSETS: 2004 2004 2003 2003 - --------------------- ---------- ---------- ---------- ---------- Loans on non-accrual status $ 20,091 $ 24,118 $ 23,209 $ 28,010 Loans more than 90 days delinquent, still on accrual 579 1,139 1,227 421 ---------- ---------- ---------- ---------- Total non-performing loans 20,670 25,257 24,436 28,431 Real estate owned (REO) / Repossessed assets 3,051 3,613 7,164 3,132 ---------- ---------- ---------- ---------- Total non-performing assets $ 23,721 $ 28,870 $ 31,600 $ 31,563 ========== ========== ========== ========== Total non-performing assets / Total assets 0.84% 1.05% 1.26% 1.20% Quarters Ended 9 Months Ended -------------------------- ----------------- CHANGE IN THE ALLOWANCE Sept 30, Jun 30, Sept 30, Sept 30, Sept 30, FOR LOAN LOSSES: 2004 2004 2003 2004 2003 --------------- ------- ------- ------- ------- ------- Balance, beginning of period $28,037 $26,885 $26,075 $26,060 $26,539 Provision 1,444 1,450 1,400 4,344 5,900 Recoveries of loans previously charged off 975 285 566 1,411 920 Loans charged-off (1,049) (583) (1,880) (2,408) (7,198) ------- ------- ------- ------- ------- Net ( charge-offs ) recoveries (74) (298) (1,314) (997) (6,278) ------- ------- ------- ------- ------- Balance, end of period $29,407 $28,037 $26,161 $29,407 $26,161 ======= ======= ======= ======= ======= Net charge-offs / Average loans outstanding 0.00% 0.02% 0.08% 0.05% 0.38% Allowance for loan losses / Total loans outstanding 1.48% 1.47% 1.55% 1.48% 1.55% (more) BANR-Third Quarter Results October 22, 2004 Page 7 ADDITIONAL FINANCIAL INFORMATION (Dollars in thousands) (Rates / Ratios Annualized) Quarters Ended 9 Months Ended ----------------------------------- ------------------------- Sept 30, Jun 30, Sep 30, Sept 30, Sep 30, OPERATING PERFORMANCE: 2004 2004 2003 2004 2003 - ---------------------- ---------- ---------- ---------- ---------- ---------- Average loans $1,952,163 $1,858,449 $1,698,796 $1,854,229 $1,638,508 Average securities and deposits 683,520 721,778 628,485 706,990 605,574 Average non-interest-earning assets 155,668 149,293 170,972 156,169 162,623 ---------- ---------- ---------- ---------- ---------- Total average assets $2,791,351 $2,729,520 $2,498,253 $2,717,388 $2,406,705 ========== ========== ========== ========== ========== Average deposits $1,858,240 $1,776,837 $1,691,159 $1,768,856 $1,599,482 Average borrowings 700,034 725,047 586,894 719,220 594,292 Average non-interest-earning liabilities 24,321 20,468 23,470 21,429 17,840 ---------- ---------- ---------- ---------- ---------- Total average liabilities 2,582,595 2,522,352 2,301,523 2,509,505 2,211,614 Total average stock-holders' equity 208,756 207,168 196,730 207,883 195,091 ---------- ---------- ---------- ---------- ---------- Total average liabilities and equity $2,791,351 $2,729,520 $2,498,253 $2,717,388 $2,406,705 ========== ========== ========== ========== ========== Interest rate yield on loans 6.74% 6.56% 6.83% 6.65% 7.14% Interest rate yield on securities and deposits 4.28% 4.20% 3.32% 4.25% 3.79% ---------- ---------- ---------- ---------- ---------- Interest rate yield on interest- earning assets 6.10% 5.90% 5.89% 5.99% 6.24% ---------- ---------- ---------- ---------- ---------- Interest rate expense on deposits 1.94% 1.90% 2.09% 1.91% 2.22% Interest rate expense on borrowings 3.54% 3.34% 4.04% 3.40% 4.25% ---------- ---------- ---------- ---------- ---------- Interest rate expense on interest- bearing liabilities 2.38% 2.32% 2.59% 2.34% 2.77% ---------- ---------- ---------- ---------- ---------- Interest rate spread 3.72% 3.58% 3.30% 3.65% 3.47% ========== ========== ========== ========== ========== Net interest margin 3.79% 3.65% 3.35% 3.71% 3.52% ========== ========== ========== ========== ========== Other operating income / Average assets 0.68% 0.61% 0.88% 0.62% 0.87% Other operating expense / Average assets 2.98% 2.88% 2.84% 2.91% 2.90% Efficiency ratio (other operating expense / revenue) 70.09% 70.98% 70.91% 70.66% 69.72% Return on average assets 0.74% 0.67% 0.66% 0.69% 0.65% Return on average equity 9.84% 8.83% 8.38% 9.04% 8.02% Average equity / Average assets 7.48% 7.59% 7.87% 7.65% 8.11% (# # #)
-----END PRIVACY-ENHANCED MESSAGE-----