SECURITIES AND EXCHANGE COMMISSION
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WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15 (d) OF THE
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SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): April 27, 2011
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Banner Corporation
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(Exact name of registrant as specified in its charter)
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Washington
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0-26584
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91-1691604
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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10 S. First Avenue, Walla Walla, Washington
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99362
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number (including area code) (509) 527-3636
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Not Applicable
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(Former name or former address, if changed since last report)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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BANNER CORPORATION
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Date: April 27, 2011
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By: /s/ Mark J. Grescovich
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Mark J. Grescovich
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President and
Chief Executive Officer
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![]() |
![]() |
Contact: Mark J. grescovich,
President & CEO
Lloyd W. Baker, CFO
(509) 527-3636
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News Release |
RESULTS OF OPERATIONS
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Quarters Ended
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(in thousands except shares and per share data)
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Mar 31, 2011
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Dec 31, 2010
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Mar 31, 2010
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|||||||||
INTEREST INCOME:
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||||||||||||
Loans receivable
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$ | 46,755 | $ | 49,390 | $ | 52,759 | ||||||
Mortgage-backed securities
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875 | 902 | 1,126 | |||||||||
Securities and cash equivalents
|
2,033 | 1,936 | 2,085 | |||||||||
49,663 | 52,228 | 55,970 | ||||||||||
INTEREST EXPENSE:
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||||||||||||
Deposits
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7,812 | 9,521 | 15,798 | |||||||||
Federal Home Loan Bank advances
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178 | 314 | 361 | |||||||||
Other borrowings
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579 | 584 | 634 | |||||||||
Junior subordinated debentures
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1,038 | 1,052 | 1,027 | |||||||||
9,607 | 11,471 | 17,820 | ||||||||||
Net interest income before provision for loan losses
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40,056 | 40,757 | 38,150 | |||||||||
PROVISION FOR LOAN LOSSES
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17,000 | 20,000 | 14,000 | |||||||||
Net interest income
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23,056 | 20,757 | 24,150 | |||||||||
OTHER OPERATING INCOME:
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||||||||||||
Deposit fees and other service charges
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5,279 | 5,515 | 5,169 | |||||||||
Mortgage banking operations
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962 | 2,086 | 948 | |||||||||
Loan servicing fees
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256 | 177 | 313 | |||||||||
Miscellaneous
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493 | 514 | 617 | |||||||||
6,990 | 8,292 | 7,047 | ||||||||||
Other-than-temporary impairment losses
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- - | - - | (1,231 | ) | ||||||||
Net change in valuation of financial instruments carried at fair value
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256 | (706 | ) | 1,908 | ||||||||
Total other operating income
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7,246 | 7,586 | 7,724 | |||||||||
OTHER OPERATING EXPENSE:
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||||||||||||
Salary and employee benefits
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17,255 | 17,045 | 16,559 | |||||||||
Less capitalized loan origination costs
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(1,720 | ) | (2,123 | ) | (1,605 | ) | ||||||
Occupancy and equipment
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5,394 | 5,501 | 5,604 | |||||||||
Information / computer data services
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1,567 | 1,531 | 1,506 | |||||||||
Payment and card processing services
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1,647 | 1,942 | 1,424 | |||||||||
Professional services
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1,672 | 1,740 | 1,287 | |||||||||
Advertising and marketing
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1,740 | 1,740 | 1,950 | |||||||||
Deposit insurance
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1,969 | 1,999 | 2,132 | |||||||||
State/municipal business and use taxes
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494 | 616 | 480 | |||||||||
Real estate operations
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4,631 | 7,044 | 3,058 | |||||||||
Amortization of core deposit intangibles
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597 | 600 | 644 | |||||||||
Miscellaneous
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2,898 | 3,399 | 2,376 | |||||||||
Total other operating expense
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38,144 | 41,034 | 35,415 | |||||||||
Income (loss) before provision for (benefit from) income taxes
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(7,842 | ) | (12,691 | ) | (3,541 | ) | ||||||
PROVISION FOR (BENEFIT FROM ) INCOME TAXES
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- - | - - | (2,024 | ) | ||||||||
NET INCOME (LOSS)
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(7,842 | ) | (12,691 | ) | (1,517 | ) | ||||||
PREFERRED STOCK DIVIDEND AND DISCOUNT ACCRETION:
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Preferred stock dividend
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1,550 | 1,550 | 1,550 | |||||||||
Preferred stock discount accretion
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426 | 398 | 398 | |||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
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$ | (9,818 | ) | $ | (14,639 | ) | $ | (3,465 | ) | |||
Earnings (loss) per share available to common shareholder | ||||||||||||
Basic
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$ | (0.09 | ) | $ | (0.13 | ) | $ | (0.16 | ) | |||
Diluted
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$ | (0.09 | ) | $ | (0.13 | ) | $ | (0.16 | ) | |||
Cumulative dividends declared per common share
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$ | 0.01 | $ | 0.01 | $ | 0.01 | ||||||
Weighted average common shares outstanding
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Basic
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113,901,348 | 112,059,269 | 22,131,671 | |||||||||
Diluted
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113,901,348 | 112,059,269 | 22,131,671 | |||||||||
Common shares issued in connection with exercise of stock options or DRIP
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1,952,577 | 1,691,572 | 1,561,559 |
FINANCIAL CONDITION
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(in thousands except shares and per share data)
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Mar 31, 2011
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Dec 31, 2010
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Mar 31, 2010
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ASSETS
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Cash and due from banks
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$ | 44,381 | $ | 39,756 | $ | 41,123 | |||||||
Federal funds and interest-bearing deposits
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271,924 | 321,896 | 236,629 | ||||||||||
Securities - at fair value
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90,881 | 95,379 | 138,659 | ||||||||||
Securities - available for sale
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240,968 | 200,227 | 96,718 | ||||||||||
Securities - held to maturity
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75,114 | 72,087 | 73,555 | ||||||||||
Federal Home Loan Bank stock
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37,371 | 37,371 | 37,371 | ||||||||||
Loans receivable:
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Held for sale
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1,493 | 3,492 | 4,398 | ||||||||||
Held for portfolio
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3,324,587 | 3,399,625 | 3,684,459 | ||||||||||
Allowance for loan losses
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(97,632 | ) | (97,401 | ) | (95,733 | ) | |||||||
3,228,448 | 3,305,716 | 3,593,124 | |||||||||||
Accrued interest receivable
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16,503 | 15,927 | 18,501 | ||||||||||
Real estate owned held for sale, net
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94,945 | 100,872 | 95,074 | ||||||||||
Property and equipment, net
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94,743 | 96,502 | 101,541 | ||||||||||
Other intangibles, net
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8,011 | 8,609 | 10,426 | ||||||||||
Bank-owned life insurance
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57,123 | 56,653 | 55,125 | ||||||||||
Other assets
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39,291 | 55,087 | 83,865 | ||||||||||
$ | 4,299,703 | $ | 4,406,082 | $ | 4,581,711 | ||||||||
LIABILITIES
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Deposits:
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Non-interest-bearing
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$ | 622,759 | $ | 600,457 | $ | 549,291 | |||||||
Interest-bearing transaction and savings accounts
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1,459,895 | 1,433,248 | 1,404,301 | ||||||||||
Interest-bearing certificates
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1,457,994 | 1,557,493 | 1,896,186 | ||||||||||
3,540,648 | 3,591,198 | 3,849,778 | |||||||||||
Advances from Federal Home Loan Bank at fair value
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10,567 | 43,523 | 62,108 | ||||||||||
Customer repurchase agreements and other borrowings
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159,902 | 175,813 | 177,244 | ||||||||||
Junior subordinated debentures at fair value
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48,395 | 48,425 | 48,147 | ||||||||||
Accrued expenses and other liabilities
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20,958 | 21,048 | 24,049 | ||||||||||
Deferred compensation
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14,489 | 14,603 | 13,661 | ||||||||||
3,794,959 | 3,894,610 | 4,174,987 | |||||||||||
STOCKHOLDERS' EQUITY
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Preferred stock - Series A
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119,426 | 119,000 | 117,805 | ||||||||||
Common stock
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513,950 | 509,457 | 335,877 | ||||||||||
Retained earnings (accumulated deficit)
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(126,318 | ) | (115,348 | ) | (45,775 | ) | |||||||
Other components of stockholders' equity
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(2,314 | ) | (1,637 | ) | (1,183 | ) | |||||||
504,744 | 511,472 | 406,724 | |||||||||||
$ | 4,299,703 | $ | 4,406,082 | $ | 4,581,711 | ||||||||
Common Shares Issued:
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Shares outstanding at end of period
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115,106,042 | 113,153,465 | 23,101,149 | ||||||||||
Less unearned ESOP shares at end of period
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240,381 | 240,381 | 240,381 | ||||||||||
Shares outstanding at end of period excluding unearned ESOP shares
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114,865,661 | 112,913,084 | 22,860,768 | ||||||||||
Common stockholders' equity per share (1)
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$ | 3.35 | $ | 3.48 | $ | 12.64 | |||||||
Common stockholders' tangible equity per share (1) (2)
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$ | 3.28 | $ | 3.40 | $ | 12.18 | |||||||
Tangible common stockholders' equity to tangible assets
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8.79 | % | 8.73 | % | 6.09 | % | |||||||
Consolidated Tier 1 leverage capital ratio
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12.50 | % | 12.24 | % | 9.76 | % | |||||||
(1)
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- Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares
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outstanding and excludes unallocated shares in the ESOP.
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(2)
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- Tangible common equity excludes preferred stock, goodwill, core deposit and other intangibles.
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ADDITIONAL FINANCIAL INFORMATION
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(dollars in thousands)
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Mar 31, 2011
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Dec 31, 2010
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Mar 31, 2010
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LOANS (including loans held for sale):
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Commercial real estate
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Owner occupied
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$ | 521,823 | $ | 515,093 | $ | 515,542 | ||||||
Investment properties
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564,337 | 550,610 | 557,134 | |||||||||
Multifamily real estate
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147,569 | 134,634 | 147,659 | |||||||||
Commercial construction
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26,580 | 62,707 | 83,879 | |||||||||
Multifamily construction
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19,694 | 27,394 | 61,924 | |||||||||
One- to four-family construction
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151,015 | 153,383 | 213,438 | |||||||||
Land and land development
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Residential
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147,913 | 167,764 | 256,607 | |||||||||
Commercial
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30,539 | 32,386 | 48,194 | |||||||||
Commercial business
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577,128 | 585,457 | 616,396 | |||||||||
Agricultural business including secured by farmland
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188,756 | 204,968 | 187,207 | |||||||||
One- to four-family real estate
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665,396 | 682,924 | 697,565 | |||||||||
Consumer
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104,129 | 99,761 | 109,092 | |||||||||
Consumer secured by one- to four-family real estate
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181,201 | 186,036 | 194,220 | |||||||||
Total loans outstanding
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$ | 3,326,080 | $ | 3,403,117 | $ | 3,688,857 | ||||||
Restructured loans performing under their restructured terms
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$ | 60,968 | $ | 60,115 | $ | 45,471 | ||||||
Loans 30 - 89 days past due and on accrual
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$ | 16,587 | $ | 28,847 | $ | 51,328 | ||||||
Total delinquent loans (including loans on non-accrual)
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$ | 148,285 | $ | 180,336 | $ | 247,338 | ||||||
Total delinquent loans / Total loans outstanding
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4.46 | % | 5.30 | % | 6.71 | % |
GEOGRAPHIC CONCENTRATION OF LOANS AT
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March 31, 2011
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Washington
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Oregon
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Idaho
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Other
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Total
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Commercial real estate
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Owner occupied
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$ | 401,610 | $ | 65,803 | $ | 51,014 | $ | 3,396 | $ | 521,823 | ||||||||||
Investment properties
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412,223 | 103,692 | 42,377 | 6,045 | 564,337 | |||||||||||||||
Multifamily real estate
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119,984 | 17,308 | 9,788 | 489 | 147,569 | |||||||||||||||
Commercial construction
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16,253 | 1,152 | 9,175 | - - | 26,580 | |||||||||||||||
Multifamily construction
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11,652 | 8,042 | - - | - - | 19,694 | |||||||||||||||
One- to four-family construction
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74,942 | 72,533 | 3,540 | - - | 151,015 | |||||||||||||||
Land and land development
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Residential
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79,627 | 57,137 | 11,149 | - - | 147,913 | |||||||||||||||
Commercial
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26,176 | 1,356 | 3,007 | - - | 30,539 | |||||||||||||||
Commercial business
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390,439 | 108,587 | 64,624 | 13,478 | 577,128 | |||||||||||||||
Agricultural business including secured by farmland
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100,560 | 36,410 | 51,778 | 8 | 188,756 | |||||||||||||||
One- to four-family real estate
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426,549 | 207,273 | 29,235 | 2,339 | 665,396 | |||||||||||||||
Consumer
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75,562 | 22,534 | 6,033 | - - | 104,129 | |||||||||||||||
Consumer secured by one- to four-family real estate
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125,231 | 43,001 | 12,471 | 498 | 181,201 | |||||||||||||||
Total loans outstanding
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$ | 2,260,808 | $ | 744,828 | $ | 294,191 | $ | 26,253 | $ | 3,326,080 | ||||||||||
Percent of total loans
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68.0 | % | 22.4 | % | 8.8 | % | 0.8 | % | 100.0 | % |
DETAIL OF LAND AND LAND DEVELOPMENT LOANS AT
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March 31, 2011
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Washington
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Oregon
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Idaho
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Other
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Total
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Residential
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Acquisition & development
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$ | 37,910 | $ | 33,985 | $ | 4,235 | $ | - - | $ | 76,130 | ||||||||||
Improved lots
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26,775 | 17,334 | 950 | - - | 45,059 | |||||||||||||||
Unimproved land
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14,942 | 5,818 | 5,964 | - - | 26,724 | |||||||||||||||
Total residential land and development
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$ | 79,627 | $ | 57,137 | $ | 11,149 | $ | - - | $ | 147,913 | ||||||||||
Commercial & industrial
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Acquisition & development
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$ | 4,402 | $ | - - | $ | 560 | $ | - - | $ | 4,962 | ||||||||||
Improved land
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9,456 | - - | - - | - - | 9,456 | |||||||||||||||
Unimproved land
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12,318 | 1,356 | 2,447 | - - | 16,121 | |||||||||||||||
Total commercial land and development
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$ | 26,176 | $ | 1,356 | $ | 3,007 | $ | - - | $ | 30,539 |
Quarters Ended | ||||||||||||
CHANGE IN THE
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Mar 31, 2011
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Dec 31, 2010
|
Mar 31, 2010
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ALLOWANCE FOR LOAN LOSSES
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Balance, beginning of period
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$ | 97,401 | $ | 96,435 | $ | 95,269 | ||||||
Acquisitions / (divestitures)
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- - | - - | - - | |||||||||
Provision
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17,000 | 20,000 | 14,000 | |||||||||
Recoveries of loans previously charged off:
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Commercial real estate
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- - | - - | - - | |||||||||
Multifamily real estate
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- - | - - | - - | |||||||||
Construction and land
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35 | 112 | 37 | |||||||||
One- to four-family real estate
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52 | 11 | 350 | |||||||||
Commercial business
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81 | 776 | 1,290 | |||||||||
Agricultural business, including secured by farmland
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- - | 36 | - - | |||||||||
Consumer
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78 | 79 | 59 | |||||||||
246 | 1,014 | 1,736 | ||||||||||
Loans charged off:
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Commercial real estate
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(989 | ) | (1,575 | ) | (92 | ) | ||||||
Multifamily real estate
|
(427 | ) | - - | - - | ||||||||
Construction and land
|
(10,537 | ) | (11,811 | ) | (7,724 | ) | ||||||
One- to four-family real estate
|
(2,209 | ) | (2,483 | ) | (2,115 | ) | ||||||
Commercial business
|
(2,368 | ) | (3,211 | ) | (4,784 | ) | ||||||
Agricultural business, including secured by farmland
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(123 | ) | (460 | ) | (2 | ) | ||||||
Consumer
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(362 | ) | (508 | ) | (555 | ) | ||||||
(17,015 | ) | (20,048 | ) | (15,272 | ) | |||||||
Net charge-offs
|
(16,769 | ) | (19,034 | ) | (13,536 | ) | ||||||
Balance, end of period
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$ | 97,632 | $ | 97,401 | $ | 95,733 | ||||||
Net charge-offs / Average loans outstanding
|
0.50 | % | 0.55 | % | 0.36 | % |
ALLOCATION OF
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||||||||||||
ALLOWANCE FOR LOAN LOSSES
|
Mar 31, 2011
|
Dec 31, 2010
|
Mar 31, 2010
|
|||||||||
Specific or allocated loss allowance
|
||||||||||||
Commercial real estate
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$ | 11,871 | $ | 11,779 | $ | 8,279 | ||||||
Multifamily real estate
|
6,055 | 3,963 | 2,072 | |||||||||
Construction and land
|
30,346 | 33,121 | 44,078 | |||||||||
Commercial business
|
22,054 | 24,545 | 24,530 | |||||||||
Agricultural business, including secured by farmland
|
1,441 | 1,846 | 949 | |||||||||
One- to four-family real estate
|
8,149 | 5,829 | 3,093 | |||||||||
Consumer
|
1,452 | 1,794 | 1,898 | |||||||||
Total allocated
|
81,368 | 82,877 | 84,899 | |||||||||
Estimated allowance for undisbursed commitments
|
1,158 | 1,426 | 1,161 | |||||||||
Unallocated
|
15,106 | 13,098 | 9,673 | |||||||||
Total allowance for loan losses
|
$ | 97,632 | $ | 97,401 | $ | 95,733 | ||||||
Allowance for loan losses / Total loans outstanding
|
2.94 | % | 2.86 | % | 2.60 | % | ||||||
Allowance for loan losses / Non-performing loans
|
74 | % | 64 | % | 49 | % |
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||
(dollars in thousands)
|
||||||||||||
Mar 31, 2011
|
Dec 31, 2010
|
Mar 31, 2010
|
||||||||||
NON-PERFORMING ASSETS
|
||||||||||||
Loans on non-accrual status
|
||||||||||||
Secured by real estate:
|
||||||||||||
Commercial
|
$ | 23,443 | $ | 24,727 | $ | 6,801 | ||||||
Multifamily
|
1,361 | 1,889 | 373 | |||||||||
Construction and land
|
67,163 | 75,734 | 138,245 | |||||||||
One- to four-family
|
16,571 | 16,869 | 19,777 | |||||||||
Commercial business
|
15,904 | 21,100 | 19,353 | |||||||||
Agricultural business, including secured by farmland
|
1,984 | 5,853 | 8,013 | |||||||||
Consumer
|
4,655 | 2,332 | 3,387 | |||||||||
131,081 | 148,504 | 195,949 | ||||||||||
Loans more than 90 days delinquent, still on accrual
|
||||||||||||
Secured by real estate:
|
||||||||||||
Commercial
|
- - | - - | - - | |||||||||
Multifamily
|
- - | - - | - - | |||||||||
Construction and land
|
- - | - - | - - | |||||||||
One- to four-family
|
561 | 2,955 | - - | |||||||||
Commercial business
|
14 | - - | - - | |||||||||
Agricultural business, including secured by farmland
|
- - | - - | - - | |||||||||
Consumer
|
42 | 30 | 61 | |||||||||
617 | 2,985 | 61 | ||||||||||
Total non-performing loans
|
131,698 | 151,489 | 196,010 | |||||||||
Securities on non-accrual
|
1,904 | 1,896 | 3,000 | |||||||||
Real estate owned (REO) and repossessed assets
|
94,969 | 100,945 | 95,167 | |||||||||
Total non-performing assets
|
$ | 228,571 | $ | 254,330 | $ | 294,177 | ||||||
Total non-performing assets / Total assets
|
5.32 | % | 5.77 | % | 6.42 | % |
DETAIL & GEOGRAPHIC CONCENTRATION OF
|
||||||||||||||||||||
NON-PERFORMING ASSETS AT
|
||||||||||||||||||||
March 31, 2011
|
Washington
|
Oregon
|
Idaho
|
Other
|
Total
|
|||||||||||||||
Secured by real estate:
|
||||||||||||||||||||
Commercial
|
$ | 18,781 | $ | 495 | $ | 4,167 | $ | - - | $ | 23,443 | ||||||||||
Multifamily
|
1,361 | - - | - - | - - | 1,361 | |||||||||||||||
Construction and land
|
||||||||||||||||||||
One- to four-family construction
|
8,202 | 4,314 | 1,075 | - - | 13,591 | |||||||||||||||
Commercial construction
|
1,521 | - - | - - | - - | 1,521 | |||||||||||||||
Multifamily construction
|
- - | 651 | - - | - - | 651 | |||||||||||||||
Residential land acquisition & development
|
21,496 | 10,203 | 1,748 | - - | 33,447 | |||||||||||||||
Residential land improved lots
|
3,530 | 3,903 | 131 | - - | 7,564 | |||||||||||||||
Residential land unimproved
|
3,619 | 1,090 | 3,428 | - - | 8,137 | |||||||||||||||
Commercial land acquisition & development
|
- - | - - | - - | - - | - - | |||||||||||||||
Commercial land improved
|
1,956 | - - | - - | - - | 1,956 | |||||||||||||||
Commercial land unimproved
|
296 | - - | - - | - - | 296 | |||||||||||||||
Total construction and land
|
40,620 | 20,161 | 6,382 | - - | 67,163 | |||||||||||||||
One- to four-family
|
11,532 | 4,279 | 1,321 | - - | 17,132 | |||||||||||||||
Commercial business
|
14,157 | 591 | 1,020 | 150 | 15,918 | |||||||||||||||
Agricultural business, including secured by farmland
|
754 | - - | 1,230 | - - | 1,984 | |||||||||||||||
Consumer
|
2,723 | 1,750 | 224 | - - | 4,697 | |||||||||||||||
Total non-performing loans
|
89,928 | 27,276 | 14,344 | 150 | 131,698 | |||||||||||||||
Securities on non-accrual
|
- - | - - | 500 | 1,404 | 1,904 | |||||||||||||||
Real estate owned (REO) and repossessed assets
|
48,259 | 35,562 | 11,148 | - - | 94,969 | |||||||||||||||
Total non-performing assets at end of the period
|
$ | 138,187 | $ | 62,838 | $ | 25,992 | $ | 1,554 | $ | 228,571 |
ADDITIONAL FINANCIAL INFORMATION
|
|||||||
(dollars in thousands)
|
|||||||
Quarters Ended | |||||||
REAL ESTATE OWNED
|
Mar 31, 2011
|
Mar 31, 2010
|
|||||
Balance, beginning of period
|
$ | 100,872 | $ | 77,743 | |||
Additions from loan foreclosures
|
14,916 | 27,327 | |||||
Additions from capitalized costs
|
1,615 | 1,136 | |||||
Dispositions of REO
|
(18,894 | ) | (9,879 | ) | |||
Transfers to property and equipment
|
- - | - - | |||||
Gain (loss) on sale of REO
|
(537 | ) | (737 | ) | |||
Valuation adjustments in the period
|
(3,027 | ) | (516 | ) | |||
Balance, end of period
|
$ | 94,945 | $ | 95,074 |
Quarters Ended
|
||||||||||||||||||||
REAL ESTATE OWNED- FIVE COMPARATIVE QUARTERS
|
Mar 31, 2011
|
Dec 31, 2010
|
Sep 30, 2010
|
Jun 30, 2010
|
Mar 31, 2010
|
|||||||||||||||
Balance, beginning of period
|
$ | 100,872 | $ | 107,159 | $ | 101,485 | $ | 95,074 | $ | 77,743 | ||||||||||
Additions from loan foreclosures
|
14,916 | 16,855 | 25,694 | 17,885 | 27,327 | |||||||||||||||
Additions from capitalized costs
|
1,615 | 1,650 | 841 | 380 | 1,136 | |||||||||||||||
Dispositions of REO
|
(18,894 | ) | (19,095 | ) | (12,145 | ) | (10,532 | ) | (9,879 | ) | ||||||||||
Gain (loss) on sale of REO
|
(537 | ) | (524 | ) | (133 | ) | (498 | ) | (737 | ) | ||||||||||
Valuation adjustments in the period
|
(3,027 | ) | (5,173 | ) | (8,583 | ) | (824 | ) | (516 | ) | ||||||||||
Balance, end of period
|
$ | 94,945 | $ | 100,872 | $ | 107,159 | $ | 101,485 | $ | 95,074 |
REAL ESTATE OWNED- BY TYPE AND STATE
|
Washington
|
Oregon
|
Idaho
|
Total
|
||||||||||||
Commercial real estate
|
$ | 15,182 | $ | - - | $ | 477 | $ | 15,659 | ||||||||
One- to four-family construction
|
472 | 2,088 | - - | 2,560 | ||||||||||||
Land development- commercial
|
3,875 | 6,065 | 200 | 10,140 | ||||||||||||
Land development- residential
|
18,591 | 19,141 | 5,241 | 42,973 | ||||||||||||
Agricultural land
|
- - | 256 | 1,205 | 1,461 | ||||||||||||
One- to four-family real estate
|
10,115 | 8,012 | 4,025 | 22,152 | ||||||||||||
Total
|
$ | 48,235 | $ | 35,562 | $ | 11,148 | $ | 94,945 |
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||
(dollars in thousands)
|
||||||||||||
DEPOSITS & OTHER BORROWINGS
|
||||||||||||
Mar 31, 2011
|
Dec 31, 2010
|
Mar 31, 2010
|
||||||||||
DEPOSIT COMPOSITION
|
||||||||||||
Non-interest-bearing
|
$ | 622,759 | $ | 600,457 | $ | 549,291 | ||||||
Interest-bearing checking
|
361,430 | 357,702 | 366,786 | |||||||||
Regular savings accounts
|
648,520 | 616,512 | 577,704 | |||||||||
Money market accounts
|
449,945 | 459,034 | 459,811 | |||||||||
Interest-bearing transaction & savings accounts
|
1,459,895 | 1,433,248 | 1,404,301 | |||||||||
Interest-bearing certificates
|
1,457,994 | 1,557,493 | 1,896,186 | |||||||||
Total deposits
|
$ | 3,540,648 | $ | 3,591,198 | $ | 3,849,778 | ||||||
INCLUDED IN TOTAL DEPOSITS
|
||||||||||||
Public transaction accounts
|
$ | 62,873 | $ | 64,482 | $ | 80,942 | ||||||
Public interest-bearing certificates
|
67,527 | 81,809 | 82,362 | |||||||||
Total public deposits
|
$ | 130,400 | $ | 146,291 | $ | 163,304 | ||||||
Total brokered deposits
|
$ | 92,940 | $ | 102,984 | $ | 150,577 | ||||||
INCLUDED IN OTHER BORROWINGS
|
||||||||||||
Customer repurchase agreements / "Sweep accounts"
|
$ | 109,227 | $ | 125,140 | $ | 126,954 |
GEOGRAPHIC CONCENTRATION OF DEPOSITS AT
|
||||||||||||||||
March 31, 2011
|
Washington
|
Oregon
|
Idaho
|
Total
|
||||||||||||
$ | 2,699,341 | $ | 610,340 | $ | 230,967 | $ | 3,540,648 |
Minimum for Capital Adequacy
|
||||||||||||||||
REGULATORY CAPITAL RATIOS AT
|
Actual |
or "Well Capitalized"
|
||||||||||||||
March 31, 2011
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
Banner Corporation-consolidated
|
||||||||||||||||
Total capital to risk-weighted assets
|
$ | 587,594 | 17.14 | % | $ | 274,302 | 8.00 | % | ||||||||
Tier 1 capital to risk-weighted assets
|
544,058 | 15.87 | % | 137,151 | 4.00 | % | ||||||||||
Tier 1 leverage capital to average assets
|
544,058 | 12.50 | % | 174,063 | 4.00 | % | ||||||||||
Banner Bank
|
||||||||||||||||
Total capital to risk-weighted assets
|
494,814 | 15.24 | % | 324,612 | 10.00 | % | ||||||||||
Tier 1 capital to risk-weighted assets
|
453,567 | 13.97 | % | 194,767 | 6.00 | % | ||||||||||
Tier 1 leverage capital to average assets
|
453,567 | 11.03 | % | 205,589 | 5.00 | % | ||||||||||
Islanders Bank
|
||||||||||||||||
Total capital to risk-weighted assets
|
29,829 | 14.46 | % | 20,635 | 10.00 | % | ||||||||||
Tier 1 capital to risk-weighted assets
|
27,248 | 13.20 | % | 12,381 | 6.00 | % | ||||||||||
Tier 1 leverage capital to average assets
|
27,248 | 11.53 | % | 11,815 | 5.00 | % |
ADDITIONAL FINANCIAL INFORMATION
|
|||||||||||||
(dollars in thousands)
|
|||||||||||||
(rates / ratios annualized)
|
|||||||||||||
Quarters Ended
|
|||||||||||||
OPERATING PERFORMANCE
|
Mar 31, 2011
|
Dec 31, 2010
|
Mar 31, 2010
|
||||||||||
Average loans
|
$ | 3,349,978 | $ | 3,458,400 | $ | 3,726,243 | |||||||
Average securities
|
465,017 | 418,647 | 391,992 | ||||||||||
Average interest earning cash
|
308,575 | 368,194 | 171,570 | ||||||||||
Average non-interest-earning assets
|
233,365 | 254,242 | 258,060 | ||||||||||
Total average assets
|
$ | 4,356,935 | $ | 4,499,483 | $ | 4,547,865 | |||||||
Average deposits
|
$ | 3,561,020 | $ | 3,669,442 | $ | 3,800,888 | |||||||
Average borrowings
|
322,261 | 344,906 | 373,192 | ||||||||||
Average non-interest-bearing liabilities
|
(39,755 | ) | (38,355 | ) | (36,459 | ) | |||||||
Total average liabilities
|
3,843,526 | 3,975,993 | 4,137,621 | ||||||||||
Total average stockholders' equity
|
513,409 | 523,490 | 410,244 | ||||||||||
`
|
|||||||||||||
Total average liabilities and equity
|
$ | 4,356,935 | $ | 4,499,483 | $ | 4,547,865 | |||||||
Interest rate yield on loans
|
5.66 | % | 5.67 | % | 5.74 | % | |||||||
Interest rate yield on securities
|
2.38 | % | 2.46 | % | 3.22 | % | |||||||
Interest rate yield on cash
|
0.23 | % | 0.26 | % | 0.23 | % | |||||||
Interest rate yield on interest-earning assets
|
4.88 | % | 4.88 | % | 5.29 | % | |||||||
Interest rate expense on deposits
|
0.89 | % | 1.03 | % | 1.69 | % | |||||||
Interest rate expense on borrowings
|
2.26 | % | 2.24 | % | 2.20 | % | |||||||
Interest rate expense on interest-bearing liabilities
|
1.00 | % | 1.13 | % | 1.73 | % | |||||||
Interest rate spread
|
3.88 | % | 3.75 | % | 3.56 | % | |||||||
Net interest margin
|
3.94 | % | 3.81 | % | 3.61 | % | |||||||
Other operating income / Average assets
|
0.67 | % | 0.67 | % | 0.69 | % | |||||||
Other operating income EXCLUDING change in valuation of
|
|||||||||||||
financial instruments carried at fair value / Average assets (1)
|
0.65 | % | 0.73 | % | 0.52 | % | |||||||
Other operating expense / Average assets
|
3.55 | % | 3.62 | % | 3.16 | % | |||||||
Efficiency ratio (other operating expense / revenue)
|
80.64 | % | 84.88 | % | 77.20 | % | |||||||
Return (Loss) on average assets
|
(0.73 | %) | (1.12 | %) | (0.14 | %) | |||||||
Return (Loss) on average equity
|
(6.19 | %) | (9.62 | %) | (1.50 | %) | |||||||
Return (Loss) on average tangible equity (2)
|
(6.30 | %) | (9.78 | %) | (1.54 | %) | |||||||
Average equity / Average assets
|
11.78 | % | 11.63 | % | 9.02 | % | |||||||
(1)
|
- Earnings information excluding the fair value adjustments and goodwill impairment charge (alternately referred to as operating
|
||||||||||||
income (loss) from core operations and expenses from core operations) represent non-GAAP (Generally Accepted
|
|||||||||||||
Accounting Principles) financial measures.
|
|||||||||||||
(2)
|
- Average tangible equity excludes goodwill, core deposit and other intangibles.
|