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CONTACT:
|
MARK J. GRESCOVICH,
|
PRESIDENT & CEO
|
|||
PETER J. CONNER, CFO
|
|||
(509) 527-3636
|
|||
NEWS RELEASE
|
|||
•
|
SBA Paycheck Protection Program. The U.S. Small Business Administration (SBA) is providing assistance to small businesses impacted by COVID-19
through the Paycheck Protection Program (PPP), which is designed to provide near-term relief to help small businesses sustain operations. Banner is offering small businesses loans to clients in its service area through this program. As
of April 16, 2020, the funds allocated to the PPP from the CARES Act had been fully allocated. Congress recently approved a second round of funding for the PPP. Banner will continue to process applications received under the PPP until
the available funds have been fully allocated. Banner is also planning to assist small businesses with accessing other borrowing options as they become available, including the Main Street Lending Program and other government sponsored
lending programs, as appropriate.
|
•
|
Loan Accommodations. Banner is offering payment and financial relief programs for borrowers impacted by COVID-19. These programs include loan
payment deferrals for up to 90 days, waived late fees, and, on a more limited basis, waived interest or allowed interest-only loan payments and we have temporarily suspended foreclosure proceedings. Since these loans were performing
loans that were current on their payments prior to COVID-19, these modifications are not considered to be troubled debt restructurings.
|
•
|
Allowance for Credit Losses - Loans. Banner recorded a provision for credit losses of $21.7 million for the first quarter of 2020, compared to
a $4.0 million provision in the preceding quarter and a $2.0 million provision in the first quarter a year ago. The provision for the current quarter reflects expected lifetime credit losses based upon the conditions and economic outlook
that existed as of March 31, 2020. The probability of further decline in economic conditions, including higher unemployment rates and lower gross domestic product, has increased since quarter end and should it materialize, an additional
provision for expected credit losses will be necessary.
|
•
|
Branch Operations, IT Changes and One-Time Expenses. We have taken various steps to help protect customers and staff by limiting branch
activities to appointment only and use of our drive-up facilities, and by encouraging the use of our digital and electronic banking channels, all the while adjusting for evolving State and Federal guidelines. To further the well-being of
staff and customers, Banner implemented measures to allow employees to work from home to the extent practicable. To facilitate this approach, Banner allocated additional computer equipment to staff and
|
•
|
enhanced the Company's network capabilities with several upgrades. These expenses plus other expenses incurred in response to the COVID-19 pandemic resulted in $239,000 of related
costs during the first quarter of 2020.
|
•
|
Capital Management. At March 31, 2020, the tangible common shareholders' equity to tangible assets ratio was 9.70% and Banner’s capital was
well in excess of all regulatory requirements. During the current quarter, prior to the COVID-19 pandemic outbreak, Banner repurchased 624,780 shares of its common stock. To preserve capital, Banner has discontinued any additional
repurchase of shares until further notice and will closely monitor capital levels going forward.
|
•
|
Revenues were $138.4 million, compared to $139.8 million in the preceding quarter, and increased 3% when compared to $134.2 million in the first quarter a year ago.
|
•
|
Net interest income, before the provision for loan losses, was $119.3 million in the first quarter of 2020, compared to $119.5 million in the preceding quarter and $116.1 million in
the first quarter a year ago.
|
•
|
Net interest margin was 4.19%, compared to 4.20% in the preceding quarter and 4.37% in the first quarter a year ago.
|
•
|
Mortgage banking revenues increased 63% to $10.2 million, compared to $6.2 million in the preceding quarter, and increased 198% compared to $3.4 million in the first quarter a year
ago, reflecting strong refinance demand due to decreasing market interest rates.
|
•
|
Return on average assets was 0.54%, compared to 1.07% in the preceding quarter and 1.15% in the first quarter a year ago.
|
•
|
Net loans receivable decreased modestly to $9.16 billion at March 31, 2020, compared to $9.20 billion at December 31, 2019, and increased 7% when compared to $8.60 billion at March 31,
2019.
|
•
|
Non-performing assets increased to $46.1 million, or 0.36% of total assets, at March 31, 2020, compared to $40.5 million, or 0.32% of total assets in the preceding quarter, and $22.0
million, or 0.19% of total assets, at March 31, 2019.
|
•
|
Provision for credit losses - loans was $21.7 million, and the allowance for credit losses - loans was $130.5 million, or 1.41% of total loans receivable, as of March 31, 2020,
compared to $100.6 million, or 1.08% of total loans receivable as of December 31, 2019.
|
•
|
Provision for credit losses - unfunded loan commitments was $1.7 million, and the allowance for credit losses - unfunded loan commitments was $11.5 million as of March 31, 2020,
compared to $2.7 million as of December 31, 2019.
|
•
|
Core deposits increased 4% to $9.28 billion at March 31, 2020, compared to $8.93 billion at December 31, 2019, and increased 13% compared to $8.21 billion a year ago. Core deposits
represented 89% of total deposits at March 31, 2020.
|
•
|
Dividends to shareholders were $0.41 per share in the quarter ended March 31, 2020.
|
•
|
Common shareholders’ equity per share increased 2% to $45.63 at March 31, 2020, compared to $44.59 at the preceding quarter end, and increased 6% from $42.99 a year ago.
|
•
|
Tangible common shareholders' equity per share* increased 3% to $34.23 at March 31, 2020, compared to $33.33 at the preceding quarter end, and increased 5% from $32.47 a year ago.
|
RESULTS OF OPERATIONS
|
Quarters Ended
|
|||||||||||
(in thousands except shares and per share data)
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
INTEREST INCOME:
|
||||||||||||
Loans receivable
|
$
|
118,926
|
$
|
120,915
|
$
|
115,455
|
||||||
Mortgage-backed securities
|
9,137
|
8,924
|
10,507
|
|||||||||
Securities and cash equivalents
|
3,602
|
3,570
|
4,034
|
|||||||||
131,665
|
133,409
|
129,996
|
||||||||||
INTEREST EXPENSE:
|
||||||||||||
Deposits
|
8,750
|
9,950
|
8,643
|
|||||||||
Federal Home Loan Bank advances
|
2,064
|
2,281
|
3,476
|
|||||||||
Other borrowings
|
116
|
121
|
60
|
|||||||||
Junior subordinated debentures
|
1,477
|
1,566
|
1,713
|
|||||||||
12,407
|
13,918
|
13,892
|
||||||||||
Net interest income before provision for credit losses
|
119,258
|
119,491
|
116,104
|
|||||||||
PROVISION FOR CREDIT LOSSES
|
21,748
|
4,000
|
2,000
|
|||||||||
Net interest income
|
97,510
|
115,491
|
114,104
|
|||||||||
NON-INTEREST INCOME:
|
||||||||||||
Deposit fees and other service charges
|
9,803
|
9,637
|
12,618
|
|||||||||
Mortgage banking operations
|
10,191
|
6,248
|
3,415
|
|||||||||
Bank-owned life insurance
|
1,050
|
1,170
|
1,276
|
|||||||||
Miscellaneous
|
2,639
|
3,201
|
804
|
|||||||||
23,683
|
20,256
|
18,113
|
||||||||||
Net gain on sale of securities
|
78
|
62
|
1
|
|||||||||
Net change in valuation of financial instruments carried at fair value
|
(4,596
|
)
|
(36
|
)
|
11
|
|||||||
Total non-interest income
|
19,165
|
20,282
|
18,125
|
|||||||||
NON-INTEREST EXPENSE:
|
||||||||||||
Salary and employee benefits
|
59,908
|
57,050
|
54,640
|
|||||||||
Less capitalized loan origination costs
|
(5,806
|
)
|
(8,797
|
)
|
(4,849
|
)
|
||||||
Occupancy and equipment
|
13,107
|
13,377
|
13,766
|
|||||||||
Information / computer data services
|
5,810
|
6,202
|
5,326
|
|||||||||
Payment and card processing services
|
4,240
|
4,638
|
3,984
|
|||||||||
Professional and legal expenses
|
1,919
|
2,262
|
2,434
|
|||||||||
Advertising and marketing
|
1,827
|
2,021
|
1,529
|
|||||||||
Deposit insurance expense
|
1,635
|
1,608
|
1,418
|
|||||||||
State/municipal business and use taxes
|
984
|
917
|
945
|
|||||||||
Real estate operations
|
100
|
40
|
(123
|
)
|
||||||||
Amortization of core deposit intangibles
|
2,001
|
2,061
|
2,052
|
|||||||||
Provision for credit losses - unfunded loan commitments
|
1,722
|
—
|
—
|
|||||||||
Miscellaneous
|
6,357
|
7,892
|
6,744
|
|||||||||
93,804
|
89,271
|
87,866
|
||||||||||
COVID-19 expenses
|
239
|
—
|
—
|
|||||||||
Acquisition-related expenses
|
1,142
|
4,419
|
2,148
|
|||||||||
Total non-interest expense
|
95,185
|
93,690
|
90,014
|
|||||||||
Income before provision for income taxes
|
21,490
|
42,083
|
42,215
|
|||||||||
PROVISION FOR INCOME TAXES
|
4,608
|
8,428
|
8,869
|
|||||||||
NET INCOME
|
$
|
16,882
|
$
|
33,655
|
$
|
33,346
|
||||||
Earnings per share available to common shareholders:
|
||||||||||||
Basic
|
$
|
0.48
|
$
|
0.96
|
$
|
0.95
|
||||||
Diluted
|
$
|
0.47
|
$
|
0.95
|
$
|
0.95
|
||||||
Cumulative dividends declared per common share
|
$
|
0.41
|
$
|
1.41
|
$
|
0.41
|
||||||
Weighted average common shares outstanding:
|
||||||||||||
Basic
|
35,463,541
|
35,188,399
|
35,050,376
|
|||||||||
Diluted
|
35,640,463
|
35,316,736
|
35,172,056
|
|||||||||
(Decrease) increase in common shares outstanding
|
(649,117
|
)
|
1,578,219
|
(30,026
|
)
|
FINANCIAL CONDITION
|
Percentage Change
|
|||||||||||||||||
(in thousands except shares and per share data)
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
Prior Qtr
|
Prior Yr Qtr
|
|||||||||||||
ASSETS
|
||||||||||||||||||
Cash and due from banks
|
$
|
211,013
|
$
|
234,359
|
$
|
218,458
|
(10.0
|
)%
|
(3.4
|
)%
|
||||||||
Interest-bearing deposits
|
83,988
|
73,376
|
43,080
|
14.5
|
%
|
95.0
|
%
|
|||||||||||
Total cash and cash equivalents
|
295,001
|
307,735
|
261,538
|
(4.1
|
)%
|
12.8
|
%
|
|||||||||||
Securities - trading
|
21,040
|
25,636
|
25,838
|
(17.9
|
)%
|
(18.6
|
)%
|
|||||||||||
Securities - available for sale
|
1,608,224
|
1,551,557
|
1,603,804
|
3.7
|
%
|
0.3
|
%
|
|||||||||||
Securities - held to maturity
|
437,846
|
236,094
|
218,993
|
85.5
|
%
|
99.9
|
%
|
|||||||||||
Total securities
|
2,067,110
|
1,813,287
|
1,848,635
|
14.0
|
%
|
11.8
|
%
|
|||||||||||
Federal Home Loan Bank stock
|
20,247
|
28,342
|
27,063
|
(28.6
|
)%
|
(25.2
|
)%
|
|||||||||||
Loans held for sale
|
182,428
|
210,447
|
45,865
|
(13.3
|
)%
|
297.7
|
%
|
|||||||||||
Loans receivable
|
9,285,744
|
9,305,357
|
8,692,657
|
(0.2
|
)%
|
6.8
|
%
|
|||||||||||
Allowance for credit losses - loans
|
(130,488
|
)
|
(100,559
|
)
|
(97,308
|
)
|
29.8
|
%
|
34.1
|
%
|
||||||||
Net loans receivable
|
9,155,256
|
9,204,798
|
8,595,349
|
(0.5
|
)%
|
6.5
|
%
|
|||||||||||
Accrued interest receivable
|
40,732
|
37,962
|
41,220
|
7.3
|
%
|
(1.2
|
)%
|
|||||||||||
Real estate owned held for sale, net
|
2,402
|
814
|
2,611
|
195.1
|
%
|
(8.0
|
)%
|
|||||||||||
Property and equipment, net
|
175,235
|
178,008
|
171,057
|
(1.6
|
)%
|
2.4
|
%
|
|||||||||||
Goodwill
|
373,121
|
373,121
|
339,154
|
—
|
%
|
10.0
|
%
|
|||||||||||
Other intangibles, net
|
27,157
|
29,158
|
30,647
|
(6.9
|
)%
|
(11.4
|
)%
|
|||||||||||
Bank-owned life insurance
|
193,140
|
192,088
|
178,202
|
0.5
|
%
|
8.4
|
%
|
|||||||||||
Other assets
|
249,121
|
228,271
|
198,944
|
9.1
|
%
|
25.2
|
%
|
|||||||||||
Total assets
|
$
|
12,780,950
|
$
|
12,604,031
|
$
|
11,740,285
|
1.4
|
%
|
8.9
|
%
|
||||||||
LIABILITIES
|
||||||||||||||||||
Deposits:
|
||||||||||||||||||
Non-interest-bearing
|
$
|
4,107,262
|
$
|
3,945,000
|
$
|
3,676,984
|
4.1
|
%
|
11.7
|
%
|
||||||||
Interest-bearing transaction and savings accounts
|
5,175,969
|
4,983,238
|
4,535,969
|
3.9
|
%
|
14.1
|
%
|
|||||||||||
Interest-bearing certificates
|
1,166,306
|
1,120,403
|
1,163,276
|
4.1
|
%
|
0.3
|
%
|
|||||||||||
Total deposits
|
10,449,537
|
10,048,641
|
9,376,229
|
4.0
|
%
|
11.4
|
%
|
|||||||||||
Advances from Federal Home Loan Bank
|
247,000
|
450,000
|
418,000
|
(45.1
|
)%
|
(40.9
|
)%
|
|||||||||||
Customer repurchase agreements and other borrowings
|
128,764
|
118,474
|
121,719
|
8.7
|
%
|
5.8
|
%
|
|||||||||||
Junior subordinated debentures at fair value
|
99,795
|
119,304
|
113,917
|
(16.4
|
)%
|
(12.4
|
)%
|
|||||||||||
Accrued expenses and other liabilities
|
208,753
|
227,889
|
158,669
|
(8.4
|
)%
|
31.6
|
%
|
|||||||||||
Deferred compensation
|
45,401
|
45,689
|
40,560
|
(0.6
|
)%
|
11.9
|
%
|
|||||||||||
Total liabilities
|
11,179,250
|
11,009,997
|
10,229,094
|
1.5
|
%
|
9.3
|
%
|
|||||||||||
SHAREHOLDERS' EQUITY
|
||||||||||||||||||
Common stock
|
1,343,699
|
1,373,940
|
1,338,386
|
(2.2
|
)%
|
0.4
|
%
|
|||||||||||
Retained earnings
|
177,922
|
186,838
|
152,911
|
(4.8
|
)%
|
16.4
|
%
|
|||||||||||
Other components of shareholders' equity
|
80,079
|
33,256
|
19,894
|
140.8
|
%
|
nm
|
||||||||||||
Total shareholders' equity
|
1,601,700
|
1,594,034
|
1,511,191
|
0.5
|
%
|
6.0
|
%
|
|||||||||||
Total liabilities and shareholders' equity
|
$
|
12,780,950
|
$
|
12,604,031
|
$
|
11,740,285
|
1.4
|
%
|
8.9
|
%
|
||||||||
Common Shares Issued:
|
||||||||||||||||||
Shares outstanding at end of period
|
35,102,459
|
35,751,576
|
35,152,746
|
|||||||||||||||
Common shareholders' equity per share (1)
|
$
|
45.63
|
$
|
44.59
|
$
|
42.99
|
||||||||||||
Common shareholders' tangible equity per share (1) (2)
|
$
|
34.23
|
$
|
33.33
|
$
|
32.47
|
||||||||||||
Common shareholders' tangible equity to tangible assets (2)
|
9.70
|
%
|
9.77
|
%
|
10.04
|
%
|
||||||||||||
Consolidated Tier 1 leverage capital ratio
|
10.45
|
%
|
10.71
|
%
|
10.73
|
%
|
(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 final two pages of the press release tables.
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||
Percentage Change
|
||||||||||||||||||
LOANS
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
Prior Qtr
|
Prior Yr Qtr
|
|||||||||||||
Commercial real estate:
|
||||||||||||||||||
Owner-occupied
|
$
|
1,024,089
|
$
|
980,021
|
$
|
869,634
|
4.5
|
%
|
17.8
|
%
|
||||||||
Investment properties
|
2,007,537
|
2,024,988
|
1,838,328
|
(0.9
|
)%
|
9.2
|
%
|
|||||||||||
Small balance CRE
|
591,783
|
613,484
|
619,646
|
(3.5
|
)%
|
(4.5
|
)%
|
|||||||||||
Multifamily real estate
|
400,206
|
388,388
|
300,684
|
3.0
|
%
|
33.1
|
%
|
|||||||||||
Construction, land and land development:
|
||||||||||||||||||
Commercial construction
|
205,476
|
210,668
|
181,888
|
(2.5
|
)%
|
13.0
|
%
|
|||||||||||
Multifamily construction
|
250,410
|
233,610
|
183,203
|
7.2
|
%
|
36.7
|
%
|
|||||||||||
One- to four-family construction
|
534,956
|
544,308
|
514,410
|
(1.7
|
)%
|
4.0
|
%
|
|||||||||||
Land and land development
|
232,506
|
245,530
|
271,038
|
(5.3
|
)%
|
(14.2
|
)%
|
|||||||||||
Commercial business:
|
||||||||||||||||||
Commercial business
|
1,357,817
|
1,364,650
|
1,199,930
|
(0.5
|
)%
|
13.2
|
%
|
|||||||||||
Small business scored
|
807,539
|
772,657
|
738,665
|
4.5
|
%
|
9.3
|
%
|
|||||||||||
Agricultural business, including secured by farmland
|
330,257
|
337,271
|
339,472
|
(2.1
|
)%
|
(2.7
|
)%
|
|||||||||||
One- to four-family residential
|
881,387
|
925,531
|
942,477
|
(4.8
|
)%
|
(6.5
|
)%
|
|||||||||||
Consumer:
|
||||||||||||||||||
Consumer—home equity revolving lines of credit
|
521,618
|
519,336
|
532,600
|
0.4
|
%
|
(2.1
|
)%
|
|||||||||||
Consumer—other
|
140,163
|
144,915
|
160,682
|
(3.3
|
)%
|
(12.8
|
)%
|
|||||||||||
Total loans receivable
|
$
|
9,285,744
|
$
|
9,305,357
|
$
|
8,692,657
|
(0.2
|
)%
|
6.8
|
%
|
||||||||
Restructured loans performing under their restructured terms
|
$
|
6,423
|
$
|
6,466
|
$
|
13,036
|
||||||||||||
Loans 30 - 89 days past due and on accrual
|
$
|
39,974
|
$
|
20,178
|
$
|
28,972
|
||||||||||||
Total delinquent loans (including loans on non-accrual), net
|
$
|
61,101
|
$
|
38,322
|
$
|
46,616
|
||||||||||||
Total delinquent loans / Total loans receivable
|
0.66
|
%
|
0.41
|
%
|
0.54
|
%
|
LOANS BY GEOGRAPHIC LOCATION
|
Percentage Change
|
|||||||||||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
Prior Qtr
|
Prior Yr Qtr
|
||||||||||||||||
Amount
|
Percentage
|
Amount
|
Amount
|
|||||||||||||||||
Washington
|
$
|
4,350,273
|
46.7%
|
$
|
4,364,764
|
$
|
4,329,759
|
(0.3
|
)%
|
0.5
|
%
|
|||||||||
California
|
2,140,895
|
23.1%
|
2,129,789
|
1,581,654
|
0.5
|
%
|
35.4
|
%
|
||||||||||||
Oregon
|
1,664,652
|
17.9%
|
1,650,704
|
1,639,427
|
0.8
|
%
|
1.5
|
%
|
||||||||||||
Idaho
|
524,663
|
5.7%
|
530,016
|
524,705
|
(1.0
|
)%
|
—
|
%
|
||||||||||||
Utah
|
52,747
|
0.6%
|
60,958
|
59,940
|
(13.5
|
)%
|
(12.0
|
)%
|
||||||||||||
Other
|
552,514
|
6.0%
|
569,126
|
557,172
|
(2.9
|
)%
|
(0.8
|
)%
|
||||||||||||
Total loans receivable
|
$
|
9,285,744
|
100.0%
|
$
|
9,305,357
|
$
|
8,692,657
|
(0.2
|
)%
|
6.8
|
%
|
LOAN ORIGINATIONS
|
Quarters Ended
|
||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
Commercial real estate
|
$
|
76,359
|
$
|
165,064
|
$
|
92,183
|
|||||
Multifamily real estate
|
10,171
|
20,034
|
3,733
|
||||||||
Construction and land
|
369,613
|
530,195
|
231,744
|
||||||||
Commercial business
|
199,873
|
228,050
|
137,142
|
||||||||
Agricultural business
|
31,261
|
25,992
|
30,483
|
||||||||
One-to four-family residential
|
31,041
|
30,432
|
31,186
|
||||||||
Consumer
|
67,357
|
70,539
|
62,370
|
||||||||
Total loan originations (excluding loans held for sale)
|
$
|
785,675
|
$
|
1,070,306
|
$
|
588,841
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||
(dollars in thousands)
|
||||||||||||
Quarters Ended
|
||||||||||||
CHANGE IN THE
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS
|
||||||||||||
Balance, beginning of period
|
$
|
100,559
|
$
|
97,801
|
$
|
96,485
|
||||||
Beginning balance adjustment for adoption of ASC 326
|
7,812
|
—
|
—
|
|||||||||
Provision for credit losses - loans
|
21,713
|
4,000
|
2,000
|
|||||||||
Recoveries of loans previously charged off:
|
||||||||||||
Commercial real estate
|
167
|
199
|
21
|
|||||||||
Construction and land
|
—
|
—
|
22
|
|||||||||
One- to four-family real estate
|
148
|
159
|
43
|
|||||||||
Commercial business
|
205
|
225
|
23
|
|||||||||
Agricultural business, including secured by farmland
|
1,750
|
10
|
—
|
|||||||||
Consumer
|
96
|
61
|
110
|
|||||||||
2,366
|
654
|
219
|
||||||||||
Loans charged off:
|
||||||||||||
Commercial real estate
|
(100
|
)
|
—
|
(431
|
)
|
|||||||
Multifamily real estate
|
(66
|
)
|
—
|
—
|
||||||||
Construction and land
|
—
|
(45
|
)
|
—
|
||||||||
One- to four-family real estate
|
(64
|
)
|
—
|
—
|
||||||||
Commercial business
|
(1,384
|
)
|
(1,180
|
)
|
(590
|
)
|
||||||
Agricultural business, including secured by farmland
|
—
|
(4
|
)
|
(4
|
)
|
|||||||
Consumer
|
(348
|
)
|
(667
|
)
|
(371
|
)
|
||||||
(1,962
|
)
|
(1,896
|
)
|
(1,396
|
)
|
|||||||
Net recoveries/(charge-offs)
|
404
|
(1,242
|
)
|
(1,177
|
)
|
|||||||
Balance, end of period
|
$
|
130,488
|
$
|
100,559
|
$
|
97,308
|
||||||
Net recoveries/(charge-offs) / Average loans receivable
|
0.004
|
%
|
(0.013
|
)%
|
(0.013
|
)%
|
ALLOCATION OF
|
||||||||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
Specific or allocated credit loss allowance:
|
||||||||||||
Commercial real estate
|
$
|
29,339
|
$
|
30,591
|
$
|
27,091
|
||||||
Multifamily real estate
|
2,805
|
4,754
|
4,020
|
|||||||||
Construction and land
|
34,217
|
22,994
|
23,713
|
|||||||||
One- to four-family real estate
|
11,884
|
4,136
|
4,711
|
|||||||||
Commercial business
|
31,648
|
23,370
|
18,662
|
|||||||||
Agricultural business, including secured by farmland
|
4,513
|
4,120
|
3,596
|
|||||||||
Consumer
|
16,082
|
8,202
|
7,980
|
|||||||||
Total allocated
|
130,488
|
98,167
|
89,773
|
|||||||||
Unallocated
|
—
|
2,392
|
7,535
|
|||||||||
Total allowance for credit losses - loans
|
$
|
130,488
|
$
|
100,559
|
$
|
97,308
|
||||||
Allowance for credit losses - loans / Total loans receivable
|
1.41
|
%
|
1.08
|
%
|
1.12
|
%
|
||||||
Allowance for credit losses - loans / Non-performing loans
|
299
|
%
|
254
|
%
|
504
|
%
|
Quarters Ended
|
||||||||||||
CHANGE IN THE
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
|
||||||||||||
Balance, beginning of period
|
$
|
2,716
|
$
|
2,599
|
$
|
2,599
|
||||||
Beginning balance adjustment for adoption of ASC 326
|
7,022
|
—
|
—
|
|||||||||
Provision for credit losses - unfunded loan commitments
|
1,722
|
—
|
—
|
|||||||||
Additions through acquisitions
|
—
|
117
|
—
|
|||||||||
Balance, end of period
|
$
|
11,460
|
$
|
2,716
|
$
|
2,599
|
ADDITIONAL FINANCIAL INFORMATION
|
|||||||||||
(dollars in thousands)
|
|||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
NON-PERFORMING ASSETS
|
|||||||||||
Loans on non-accrual status:
|
|||||||||||
Secured by real estate:
|
|||||||||||
Commercial
|
$
|
8,512
|
$
|
5,952
|
$
|
5,734
|
|||||
Multifamily
|
—
|
85
|
—
|
||||||||
Construction and land
|
1,393
|
1,905
|
3,036
|
||||||||
One- to four-family
|
3,045
|
3,410
|
1,538
|
||||||||
Commercial business
|
25,027
|
23,015
|
3,614
|
||||||||
Agricultural business, including secured by farmland
|
495
|
661
|
2,507
|
||||||||
Consumer
|
1,812
|
2,473
|
2,181
|
||||||||
40,284
|
37,501
|
18,610
|
|||||||||
Loans more than 90 days delinquent, still on accrual:
|
|||||||||||
Secured by real estate:
|
|||||||||||
Commercial
|
24
|
89
|
—
|
||||||||
Construction and land
|
1,407
|
332
|
—
|
||||||||
One- to four-family
|
1,089
|
877
|
640
|
||||||||
Commercial business
|
77
|
401
|
1
|
||||||||
Agricultural business, including secured by farmland
|
461
|
—
|
—
|
||||||||
Consumer
|
320
|
398
|
42
|
||||||||
3,378
|
2,097
|
683
|
|||||||||
Total non-performing loans
|
43,662
|
39,598
|
19,293
|
||||||||
Real estate owned (REO)
|
2,402
|
814
|
2,611
|
||||||||
Other repossessed assets
|
47
|
122
|
50
|
||||||||
Total non-performing assets
|
$
|
46,111
|
$
|
40,534
|
$
|
21,954
|
|||||
Total non-performing assets to total assets
|
0.36
|
%
|
0.32
|
%
|
0.19
|
%
|
Quarters Ended
|
|||||||||||
REAL ESTATE OWNED
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
||||||||
Balance, beginning of period
|
$
|
814
|
$
|
228
|
$
|
2,611
|
|||||
Additions from loan foreclosures
|
1,588
|
—
|
—
|
||||||||
Additions from acquisitions
|
—
|
650
|
—
|
||||||||
Proceeds from dispositions of REO
|
—
|
(105
|
)
|
—
|
|||||||
Gain on sale of REO
|
—
|
41
|
—
|
||||||||
Balance, end of period
|
$
|
2,402
|
$
|
814
|
$
|
2,611
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||
DEPOSIT COMPOSITION
|
Percentage Change
|
|||||||||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
Prior Qtr
|
Prior Yr
Qtr
|
||||||||||||||
Non-interest-bearing
|
$
|
4,107,262
|
$
|
3,945,000
|
$
|
3,676,984
|
4.1
|
%
|
11.7
|
%
|
||||||||
Interest-bearing checking
|
1,331,860
|
1,280,003
|
1,174,169
|
4.1
|
%
|
13.4
|
%
|
|||||||||||
Regular savings accounts
|
1,997,265
|
1,934,041
|
1,865,852
|
3.3
|
%
|
7.0
|
%
|
|||||||||||
Money market accounts
|
1,846,844
|
1,769,194
|
1,495,948
|
4.4
|
%
|
23.5
|
%
|
|||||||||||
Total interest-bearing transaction and savings accounts
|
5,175,969
|
4,983,238
|
4,535,969
|
3.9
|
%
|
14.1
|
%
|
|||||||||||
Total core deposits
|
9,283,231
|
8,928,238
|
8,212,953
|
4.0
|
%
|
13.0
|
%
|
|||||||||||
Interest-bearing certificates
|
1,166,306
|
1,120,403
|
1,163,276
|
4.1
|
%
|
0.3
|
%
|
|||||||||||
Total deposits
|
$
|
10,449,537
|
$
|
10,048,641
|
$
|
9,376,229
|
4.0
|
%
|
11.4
|
%
|
GEOGRAPHIC CONCENTRATION OF DEPOSITS
|
||||||||||||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
Percentage Change
|
|||||||||||||||||
Amount
|
Percentage
|
Amount
|
Amount
|
Prior Qtr
|
Prior Yr
Qtr
|
|||||||||||||||
Washington
|
$
|
6,037,864
|
57.8%
|
$
|
5,861,809
|
$
|
5,604,567
|
3.0
|
%
|
7.7
|
%
|
|||||||||
Oregon
|
2,093,738
|
20.0%
|
2,006,163
|
1,906,132
|
4.4
|
%
|
9.8
|
%
|
||||||||||||
California
|
1,828,064
|
17.5%
|
1,698,289
|
1,402,213
|
7.6
|
%
|
30.4
|
%
|
||||||||||||
Idaho
|
489,871
|
4.7%
|
482,380
|
463,317
|
1.6
|
%
|
5.7
|
%
|
||||||||||||
Total deposits
|
$
|
10,449,537
|
100.0%
|
$
|
10,048,641
|
$
|
9,376,229
|
4.0
|
%
|
11.4
|
%
|
INCLUDED IN TOTAL DEPOSITS
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
Public non-interest-bearing accounts
|
$
|
115,354
|
$
|
111,015
|
$
|
92,122
|
||||||
Public interest-bearing transaction & savings accounts
|
130,958
|
133,403
|
118,033
|
|||||||||
Public interest-bearing certificates
|
48,232
|
35,184
|
29,572
|
|||||||||
Total public deposits
|
$
|
294,544
|
$
|
279,602
|
$
|
239,727
|
||||||
Total brokered deposits
|
$
|
250,977
|
$
|
202,884
|
$
|
239,444
|
ADDITIONAL FINANCIAL INFORMATION
|
|||||
(in thousands)
|
|||||
ACQUISITION OF ALTAPACIFIC BANCORP
|
|||||
The following table* provides the estimated fair value of the assets acquired and liabilities assumed in the AltaPacific acquisition at November 1,
2019 (in thousands):
|
|||||
November 1, 2019
|
|||||
Cash paid
|
$
|
2,360
|
|||
Fair value of common shares issued
|
85,200
|
||||
Total consideration
|
87,560
|
||||
Fair value of assets acquired:
|
|||||
Cash and cash equivalents
|
39,686
|
||||
Securities
|
20,348
|
||||
Federal Home Loan Bank stock
|
2,005
|
||||
Loans receivable
|
332,355
|
||||
Real estate owned held for sale
|
650
|
||||
Property and equipment
|
3,809
|
||||
Core deposit intangible
|
4,610
|
||||
Bank-owned life insurance
|
11,890
|
||||
Deferred tax asset
|
166
|
||||
Other assets
|
10,150
|
||||
Total assets acquired
|
425,669
|
||||
Fair value of liabilities assumed:
|
|||||
Deposits
|
313,374
|
||||
Advances from FHLB
|
40,226
|
||||
Junior subordinated debentures
|
5,814
|
||||
Deferred compensation
|
4,508
|
||||
Other liabilities
|
8,154
|
||||
Total liabilities assumed
|
372,076
|
||||
Net assets acquired
|
53,593
|
||||
Goodwill
|
$
|
33,967
|
|||
* Amounts recorded in this table are preliminary estimates of fair value. Additional adjustments to the acquisition accounting may be required with
a measurement period of one-year from the acquisition date.
|
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 MARCH 31, 2020
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||
Banner Corporation-consolidated:
|
|||||||||||||||||||||
Total capital to risk-weighted assets
|
$
|
1,397,202
|
12.98
|
%
|
$
|
860,978
|
8.00
|
%
|
$
|
1,076,223
|
10.00
|
%
|
|||||||||
Tier 1 capital to risk-weighted assets
|
1,275,806
|
11.85
|
%
|
645,734
|
6.00
|
%
|
645,734
|
6.00
|
%
|
||||||||||||
Tier 1 leverage capital to average assets
|
1,275,806
|
10.45
|
%
|
488,124
|
4.00
|
%
|
n/a
|
n/a
|
|||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
1,132,306
|
10.52
|
%
|
484,300
|
4.50
|
%
|
n/a
|
n/a
|
|||||||||||||
Banner Bank:
|
|||||||||||||||||||||
Total capital to risk-weighted assets
|
1,331,615
|
12.59
|
%
|
846,284
|
8.00
|
%
|
1,057,856
|
10.00
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
1,212,733
|
11.46
|
%
|
634,713
|
6.00
|
%
|
846,284
|
8.00
|
%
|
||||||||||||
Tier 1 leverage capital to average assets
|
1,212,733
|
10.18
|
%
|
476,371
|
4.00
|
%
|
595,464
|
5.00
|
%
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
1,212,733
|
11.46
|
%
|
476,035
|
4.50
|
%
|
687,606
|
6.50
|
%
|
||||||||||||
Islanders Bank:
|
|||||||||||||||||||||
Total capital to risk-weighted assets
|
31,693
|
16.99
|
%
|
14,923
|
8.00
|
%
|
18,654
|
10.00
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
29,398
|
15.76
|
%
|
11,193
|
6.00
|
%
|
14,923
|
8.00
|
%
|
||||||||||||
Tier 1 leverage capital to average assets
|
29,398
|
10.05
|
%
|
11,706
|
4.00
|
%
|
14,632
|
5.00
|
%
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
29,398
|
15.76
|
%
|
8,394
|
4.50
|
%
|
12,125
|
6.50
|
%
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||
(rates / ratios annualized)
|
||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD
|
Quarters Ended
|
|||||||||||||||||||||||||
March 31, 2020
|
December 31, 2019
|
March 31, 2019
|
||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||
Held for sale loans
|
$
|
152,627
|
$
|
1,520
|
4.01
|
%
|
$
|
202,686
|
$
|
2,048
|
4.01
|
%
|
$
|
98,005
|
$
|
1,121
|
4.64
|
%
|
||||||||
Mortgage loans
|
7,310,115
|
92,454
|
5.09
|
%
|
7,134,231
|
92,926
|
5.17
|
%
|
6,833,933
|
88,602
|
5.26
|
%
|
||||||||||||||
Commercial/agricultural loans
|
1,884,006
|
22,357
|
4.77
|
%
|
1,853,447
|
23,256
|
4.98
|
%
|
1,703,503
|
22,812
|
5.43
|
%
|
||||||||||||||
Consumer and other loans
|
163,098
|
2,595
|
6.40
|
%
|
169,197
|
2,685
|
6.30
|
%
|
183,451
|
2,920
|
6.46
|
%
|
||||||||||||||
Total loans(1)
|
9,509,846
|
118,926
|
5.03
|
%
|
9,359,561
|
120,915
|
5.13
|
%
|
8,818,892
|
115,455
|
5.31
|
%
|
||||||||||||||
Mortgage-backed securities
|
1,354,585
|
9,137
|
2.71
|
%
|
1,371,438
|
8,924
|
2.58
|
%
|
1,392,118
|
10,507
|
3.06
|
%
|
||||||||||||||
Other securities
|
458,116
|
2,887
|
2.53
|
%
|
418,767
|
2,663
|
2.52
|
%
|
484,134
|
3,479
|
2.91
|
%
|
||||||||||||||
Interest-bearing deposits with banks
|
92,659
|
393
|
1.71
|
%
|
107,959
|
531
|
1.95
|
%
|
44,757
|
289
|
2.62
|
%
|
||||||||||||||
FHLB stock
|
26,522
|
322
|
4.88
|
%
|
26,036
|
376
|
5.73
|
%
|
31,761
|
266
|
3.40
|
%
|
||||||||||||||
Total investment securities
|
1,931,882
|
12,739
|
2.65
|
%
|
1,924,200
|
12,494
|
2.58
|
%
|
1,952,770
|
14,541
|
3.02
|
%
|
||||||||||||||
Total interest-earning assets
|
11,441,728
|
131,665
|
4.63
|
%
|
11,283,761
|
133,409
|
4.69
|
%
|
10,771,662
|
129,996
|
4.89
|
%
|
||||||||||||||
Non-interest-earning assets
|
1,193,256
|
1,152,751
|
1,031,591
|
|||||||||||||||||||||||
Total assets
|
$
|
12,634,984
|
$
|
12,436,512
|
$
|
11,803,253
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||
Interest-bearing checking accounts
|
$
|
1,266,647
|
469
|
0.15
|
%
|
$
|
1,228,936
|
564
|
0.18
|
%
|
$
|
1,153,949
|
475
|
0.17
|
%
|
|||||||||||
Savings accounts
|
2,039,857
|
1,755
|
0.35
|
%
|
1,999,656
|
2,027
|
0.40
|
%
|
1,854,123
|
1,920
|
0.42
|
%
|
||||||||||||||
Money market accounts
|
1,743,118
|
2,439
|
0.56
|
%
|
1,607,954
|
2,842
|
0.70
|
%
|
1,490,326
|
2,251
|
0.61
|
%
|
||||||||||||||
Certificates of deposit
|
1,124,994
|
4,087
|
1.46
|
%
|
1,189,530
|
4,517
|
1.51
|
%
|
1,253,613
|
3,997
|
1.29
|
%
|
||||||||||||||
Total interest-bearing deposits
|
6,174,616
|
8,750
|
0.57
|
%
|
6,026,076
|
9,950
|
0.66
|
%
|
5,752,011
|
8,643
|
0.61
|
%
|
||||||||||||||
Non-interest-bearing deposits
|
3,965,380
|
—
|
—
|
%
|
3,959,097
|
—
|
—
|
%
|
3,605,922
|
—
|
—
|
%
|
||||||||||||||
Total deposits
|
10,139,996
|
8,750
|
0.35
|
%
|
9,985,173
|
9,950
|
0.40
|
%
|
9,357,933
|
8,643
|
0.37
|
%
|
||||||||||||||
Other interest-bearing liabilities:
|
||||||||||||||||||||||||||
FHLB advances
|
405,429
|
2,064
|
2.05
|
%
|
387,435
|
2,281
|
2.34
|
%
|
534,238
|
3,476
|
2.64
|
%
|
||||||||||||||
Other borrowings
|
124,771
|
116
|
0.37
|
%
|
126,782
|
121
|
0.38
|
%
|
118,008
|
60
|
0.21
|
%
|
||||||||||||||
Junior subordinated debentures
|
147,944
|
1,477
|
4.02
|
%
|
145,339
|
1,566
|
4.27
|
%
|
140,212
|
1,713
|
4.95
|
%
|
||||||||||||||
Total borrowings
|
678,144
|
3,657
|
2.17
|
%
|
659,556
|
3,968
|
2.39
|
%
|
792,458
|
5,249
|
2.69
|
%
|
||||||||||||||
Total funding liabilities
|
10,818,140
|
12,407
|
0.46
|
%
|
10,644,729
|
13,918
|
0.52
|
%
|
10,150,391
|
13,892
|
0.56
|
%
|
||||||||||||||
Other non-interest-bearing liabilities(2)
|
212,162
|
189,682
|
151,937
|
|||||||||||||||||||||||
Total liabilities
|
11,030,302
|
10,834,411
|
10,302,328
|
|||||||||||||||||||||||
Shareholders' equity
|
1,604,682
|
1,602,101
|
1,500,925
|
|||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
12,634,984
|
$
|
12,436,512
|
$
|
11,803,253
|
||||||||||||||||||||
Net interest income/rate spread
|
$
|
119,258
|
4.17
|
%
|
$
|
119,491
|
4.17
|
%
|
$
|
116,104
|
4.33
|
%
|
||||||||||||||
Net interest margin
|
4.19
|
%
|
4.20
|
%
|
4.37
|
%
|
||||||||||||||||||||
Additional Key Financial Ratios:
|
||||||||||||||||||||||||||
Return on average assets
|
0.54
|
%
|
1.07
|
%
|
1.15
|
%
|
||||||||||||||||||||
Return on average equity
|
4.23
|
%
|
8.33
|
%
|
9.01
|
%
|
||||||||||||||||||||
Average equity/average assets
|
12.70
|
%
|
12.88
|
%
|
12.72
|
%
|
||||||||||||||||||||
Average interest-earning assets/average interest-bearing
liabilities
|
166.97
|
%
|
168.78
|
%
|
164.59
|
%
|
||||||||||||||||||||
Average interest-earning assets/average funding liabilities
|
105.76
|
%
|
106.00
|
%
|
106.12
|
%
|
||||||||||||||||||||
Non-interest income/average assets
|
0.61
|
%
|
0.65
|
%
|
0.62
|
%
|
||||||||||||||||||||
Non-interest expense/average assets
|
3.03
|
%
|
2.99
|
%
|
3.09
|
%
|
||||||||||||||||||||
Efficiency ratio(4)
|
68.76
|
%
|
67.03
|
%
|
67.06
|
%
|
||||||||||||||||||||
Adjusted efficiency ratio(5)
|
63.47
|
%
|
61.19
|
%
|
63.32
|
%
|
(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 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 expenses, COVID-19 expenses, amortization of core deposit intangibles (CDI), REO gain (loss), FHLB prepayment penalties 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 this press release.
|
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. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis
based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled
measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below:
|
|||||||||||
|
|||||||||||
ADJUSTED REVENUE
|
Quarters Ended
|
||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
Net interest income before provision for loan losses
|
$
|
119,258
|
$
|
119,491
|
$
|
116,104
|
|||||
Total non-interest income
|
19,165
|
20,282
|
18,125
|
||||||||
Total GAAP revenue
|
138,423
|
139,773
|
134,229
|
||||||||
Exclude net gain on sale of securities
|
(78
|
)
|
(62
|
)
|
(1
|
)
|
|||||
Exclude net change in valuation of financial instruments carried at fair value
|
4,596
|
36
|
(11
|
)
|
|||||||
Adjusted revenue (non-GAAP)
|
$
|
142,941
|
$
|
139,747
|
$
|
134,217
|
ADJUSTED EARNINGS
|
Quarters Ended
|
|||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
||||||||||
Net income (GAAP)
|
$
|
16,882
|
$
|
33,655
|
$
|
33,346
|
||||||
Exclude net gain on sale of securities
|
(78
|
)
|
(62
|
)
|
(1
|
)
|
||||||
Exclude net change in valuation of financial instruments carried at fair value
|
4,596
|
36
|
(11
|
)
|
||||||||
Exclude acquisition-related expenses
|
1,142
|
4,419
|
2,148
|
|||||||||
Exclude COVID-19 expenses
|
239
|
—
|
—
|
|||||||||
Exclude related net tax benefit
|
(1,405
|
)
|
(1,074
|
)
|
(513
|
)
|
||||||
Exclude FHLB prepayment penalties
|
—
|
735
|
—
|
|||||||||
Total adjusted earnings (non-GAAP)
|
$
|
21,376
|
$
|
37,709
|
$
|
34,969
|
||||||
Diluted earnings per share (GAAP)
|
$
|
0.47
|
$
|
0.95
|
$
|
0.95
|
||||||
Diluted adjusted earnings per share (non-GAAP)
|
$
|
0.60
|
$
|
1.07
|
$
|
0.99
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||
(dollars in thousands)
|
||||||||||||
ADJUSTED EFFICIENCY RATIO
|
Quarters Ended
|
|||||||||||
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
||||||||||
Non-interest expense (GAAP)
|
$
|
95,185
|
$
|
93,690
|
$
|
90,014
|
||||||
Exclude acquisition-related expenses
|
(1,142
|
)
|
(4,419
|
)
|
(2,148
|
)
|
||||||
Exclude COVID-19 expenses
|
(239
|
)
|
—
|
—
|
||||||||
Exclude CDI amortization
|
(2,001
|
)
|
(2,061
|
)
|
(2,052
|
)
|
||||||
Exclude state/municipal tax expense
|
(984
|
)
|
(917
|
)
|
(945
|
)
|
||||||
Exclude REO operations
|
(100
|
)
|
(40
|
)
|
123
|
|||||||
Exclude FHLB prepayment penalties
|
—
|
(735
|
)
|
—
|
||||||||
Adjusted non-interest expense (non-GAAP)
|
$
|
90,719
|
$
|
85,518
|
$
|
84,992
|
||||||
Net interest income before provision for loan losses (GAAP)
|
$
|
119,258
|
$
|
119,491
|
$
|
116,104
|
||||||
Non-interest income (GAAP)
|
19,165
|
20,282
|
18,125
|
|||||||||
Total revenue
|
138,423
|
139,773
|
134,229
|
|||||||||
Exclude net gain on sale of securities
|
(78
|
)
|
(62
|
)
|
(1
|
)
|
||||||
Exclude net change in valuation of financial instruments carried at fair value
|
4,596
|
36
|
(11
|
)
|
||||||||
Adjusted revenue (non-GAAP)
|
$
|
142,941
|
$
|
139,747
|
$
|
134,217
|
||||||
Efficiency ratio (GAAP)
|
68.76
|
%
|
67.03
|
%
|
67.06
|
%
|
||||||
Adjusted efficiency ratio (non-GAAP)
|
63.47
|
%
|
61.19
|
%
|
63.32
|
%
|
TANGIBLE COMMON SHAREHOLDERS' EQUITY TO TANGIBLE ASSETS
|
Mar 31, 2020
|
Dec 31, 2019
|
Mar 31, 2019
|
|||||||||
Shareholders' equity (GAAP)
|
$
|
1,601,700
|
$
|
1,594,034
|
$
|
1,511,191
|
||||||
Exclude goodwill and other intangible assets, net
|
400,278
|
402,279
|
369,801
|
|||||||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,201,422
|
$
|
1,191,755
|
$
|
1,141,390
|
||||||
Total assets (GAAP)
|
$
|
12,780,950
|
$
|
12,604,031
|
$
|
11,740,285
|
||||||
Exclude goodwill and other intangible assets, net
|
400,278
|
402,279
|
369,801
|
|||||||||
Total tangible assets (non-GAAP)
|
$
|
12,380,672
|
$
|
12,201,752
|
$
|
11,370,484
|
||||||
Common shareholders' equity to total assets (GAAP)
|
12.53
|
%
|
12.65
|
%
|
12.87
|
%
|
||||||
Tangible common shareholders' equity to tangible assets (non-GAAP)
|
9.70
|
%
|
9.77
|
%
|
10.04
|
%
|
||||||
TANGIBLE COMMON SHAREHOLDERS' EQUITY PER SHARE
|
||||||||||||
Tangible common shareholders' equity (non-GAAP)
|
$
|
1,201,422
|
$
|
1,191,755
|
$
|
1,141,390
|
||||||
Common shares outstanding at end of period
|
35,102,459
|
35,751,576
|
35,152,746
|
|||||||||
Common shareholders' equity (book value) per share (GAAP)
|
$
|
45.63
|
$
|
44.59
|
$
|
42.99
|
||||||
Tangible common shareholders' equity (tangible book value) per share (non-GAAP)
|
$
|
34.23
|
$
|
33.33
|
$
|
32.47
|