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) provides assistance to small businesses impacted by COVID-19 through the Paycheck Protection Program (PPP), which was designed to provide near-term relief to help small
businesses sustain operations. Under the initial PPP program, Banner funded 9,103 applications totaling $1.15 billion of loans in its service area. In January 2021, Banner began accepting and processing loan applications under the second
PPP program enacted in December 2020. As of March 31, 2021, Banner had funded 4,107 applications totaling $410.8 million of loans under the second PPP program. As of March 31, 2021, Banner had received SBA forgiveness for 1,255 PPP loans
totaling $259.9 million.
|
•
|
Loan Accommodations.
Banner is continuing to offer payment and financial relief programs for borrowers impacted by COVID-19. These programs include initial loan payment deferrals or interest-only payments for up to 90 days, waived late fees, and, on a more
limited basis, waived interest and temporarily suspended foreclosure proceedings. Deferred loans are re-evaluated at the end of the initial deferral period and will either return to the original loan terms or may be eligible for an
additional deferral period for up to 90 days. In addition, Banner has entered into payment forbearance agreements with other clients for periods of up to six months. At March 31, 2021, Banner had 91 loans totaling $33.9 million still on
deferral. Of the loans still on deferral, 79 loans totaling $25.7 million are mortgage loans operating under forbearance agreements. Since these
|
|
loans were performing loans that were current on their payments prior to the COVID-19 pandemic, these modifications are
not considered to be troubled debt restructurings pursuant to applicable accounting and regulatory guidance.
|
•
|
Allowance for Credit Losses.
Banner recorded a recapture of provision for credit losses of $8.0 million for the first quarter of 2021. This compares to a $601,000 recapture of provision for credit losses recorded in the preceding quarter and a $21.7 million provision
for credit losses recorded in the first quarter a year ago. The recapture of provision for credit losses for the current quarter primarily reflects the decrease in loan balances, excluding the increase in PPP loans, as well as improvement
in the forecasted economic indicators, while the recapture of the provision for credit losses recorded in the preceding quarter primarily reflected the decrease in loan balances. The provision for credit losses recorded in the first
quarter a year ago reflected the deterioration in forecasted economic indicators and the economic outlook that existed at March 31, 2020 as a result of the COVID-19 pandemic.
|
•
|
Branch Operations, IT
Changes and One-Time Expenses. Banner has been taking steps to resume more normal branch activities with specific guidelines in place to help safeguard the safety of our clients and personnel. To further the well-being of staff
and clients, 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 Banner’s network capabilities with
several upgrades. These expenses plus other expenses incurred in response to the COVID-19 pandemic resulted in $148,000 of related costs during the first quarter of 2021, compared to $333,000 of related costs in the preceding quarter and
$239,000 of related costs in the first quarter a year ago.
|
•
|
Capital Management. At
March 31, 2021, the tangible common shareholders’ equity to tangible assets* ratio was 7.80% and Banner’s capital was well in excess of all regulatory requirements. On December 21, 2020, Banner announced that its Board of Directors
authorized the repurchase of up to 1,757,781 shares of Banner’s common stock, which is equivalent to approximately 5% of its common stock. During the current quarter, Banner repurchased 500,000 shares of its common stock at an average cost
of $50.62 per share.
|
•
|
Revenues decreased to $141.9 million, compared to $144.9 million in the preceding quarter, and increased 3% when compared to
$138.4 million in the first quarter a year ago.
|
•
|
Net interest income, before the recapture of provision for credit losses, decreased to $117.7 million in the first quarter
of 2021, compared to $121.4 million in the preceding quarter and $119.3 million in the first quarter a year ago.
|
•
|
Net interest margin on a tax equivalent basis was 3.44%, compared to 3.64% in the preceding quarter and 4.25% in the first
quarter a year ago.
|
•
|
Mortgage banking revenues increased 7% to $11.4 million, compared to $10.7 million in the preceding quarter, and 12%
compared to $10.2 million in the first quarter a year ago.
|
•
|
Return on average assets was 1.24%, compared to 1.04% in the preceding quarter and 0.54% in the first quarter a year ago.
|
•
|
Net loans receivable increased to $9.79 billion at March 31, 2021, compared to $9.70 billion at December 31, 2020, and 7%
when compared to $9.16 billion at March 31, 2020.
|
•
|
Non-performing assets increased slightly to $37.0 million, or 0.23% of total assets, at March 31, 2021, compared to $36.5
million, or 0.24% of total assets in the preceding quarter, and decreased from $46.1 million, or 0.36% of total assets, at March 31, 2020.
|
•
|
The allowance for credit losses - loans was $156.1 million, or 1.57% of total loans receivable, as of March 31, 2021,
compared to $167.3 million, or 1.69% of total loans receivable as of December 31, 2020 and $130.5 million or 1.41% of total loans receivable as of March 31, 2020.
|
•
|
A $1.2 million recapture of provision for credit losses - unfunded loan commitments was recorded and the allowance for
credit losses - unfunded loan commitments was $12.1 million as of March 31, 2021, compared to $13.3 million as of December 31, 2020 and $11.5 million as of March 31, 2020.
|
•
|
Core deposits (non-interest-bearing and interest-bearing transaction and savings accounts) increased 8% to $12.64 billion at
March 31, 2021, compared to $11.65 billion at December 31, 2020, and increased 36% compared to $9.28 billion a year ago. Core deposits represented 93% of total deposits at March 31, 2021.
|
•
|
Dividends to shareholders were $0.41 per share in the quarter ended March 31, 2021.
|
•
|
Common shareholders’ equity per share decreased 2% to $46.60 at March 31, 2021, compared to $47.39 at the preceding quarter
end, and increased 2% from $45.63 a year ago.
|
•
|
Tangible common shareholders’ equity per share* decreased 2% to $35.29 at March 31, 2021, compared to $36.17 at the
preceding quarter end, and increased 3% from $34.23 a year ago.
|
RESULTS OF OPERATIONS
|
Quarters Ended
|
|||||||||||
(in thousands except shares and per share data)
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
INTEREST INCOME:
|
|
|
||||||||||
Loans receivable
|
$
|
108,924
|
$
|
115,545
|
$
|
118,926
|
||||||
Mortgage-backed securities
|
9,371
|
7,438
|
9,137
|
|||||||||
Securities and cash equivalents
|
6,226
|
6,170
|
3,602
|
|||||||||
|
124,521
|
129,153
|
131,665
|
|||||||||
INTEREST EXPENSE:
|
|
|
||||||||||
Deposits
|
3,609
|
4,392
|
8,750
|
|||||||||
Federal Home Loan Bank advances
|
934
|
987
|
2,064
|
|||||||||
Other borrowings
|
109
|
121
|
116
|
|||||||||
Junior subordinated debentures and subordinated notes
|
2,208
|
2,216
|
1,477
|
|||||||||
|
6,860
|
7,716
|
12,407
|
|||||||||
Net interest income before (recapture)/provision for credit losses
|
117,661
|
121,437
|
119,258
|
|||||||||
(RECAPTURE)/PROVISION FOR CREDIT LOSSES
|
(8,031)
|
(601)
|
21,748
|
|||||||||
Net interest income
|
125,692
|
122,038
|
97,510
|
|||||||||
NON-INTEREST INCOME:
|
|
|
||||||||||
Deposit fees and other service charges
|
8,939
|
8,293
|
9,803
|
|||||||||
Mortgage banking operations
|
11,440
|
10,690
|
10,191
|
|||||||||
Bank-owned life insurance
|
1,307
|
1,319
|
1,050
|
|||||||||
Miscellaneous
|
2,042
|
1,306
|
2,639
|
|||||||||
|
23,728
|
21,608
|
23,683
|
|||||||||
Net gain on sale of securities
|
485
|
197
|
78
|
|||||||||
Net change in valuation of financial instruments carried at fair value
|
59
|
1,704
|
(4,596)
|
|||||||||
Total non-interest income
|
24,272
|
23,509
|
19,165
|
|||||||||
NON-INTEREST EXPENSE:
|
|
|
||||||||||
Salary and employee benefits
|
64,819
|
60,906
|
59,908
|
|||||||||
Less capitalized loan origination costs
|
(9,696)
|
(9,415)
|
(5,806)
|
|||||||||
Occupancy and equipment
|
12,989
|
14,248
|
13,107
|
|||||||||
Information / computer data services
|
6,203
|
6,402
|
5,810
|
|||||||||
Payment and card processing services
|
4,326
|
3,960
|
4,240
|
|||||||||
Professional and legal expenses
|
3,328
|
5,643
|
1,919
|
|||||||||
Advertising and marketing
|
1,263
|
2,828
|
1,827
|
|||||||||
Deposit insurance expense
|
1,533
|
1,548
|
1,635
|
|||||||||
State/municipal business and use taxes
|
1,065
|
1,071
|
984
|
|||||||||
Real estate operations
|
(242)
|
(283)
|
100
|
|||||||||
Amortization of core deposit intangibles
|
1,711
|
1,865
|
2,001
|
|||||||||
(Recapture)/provision for credit losses - unfunded loan commitments
|
(1,220)
|
1,203
|
1,722
|
|||||||||
Miscellaneous
|
5,509
|
5,871
|
6,357
|
|||||||||
91,588
|
95,847
|
93,804
|
||||||||||
COVID-19 expenses
|
148
|
333
|
239
|
|||||||||
Merger and acquisition-related expenses
|
571
|
579
|
1,142
|
|||||||||
Total non-interest expense
|
92,307
|
96,759
|
95,185
|
|||||||||
Income before provision for income taxes
|
57,657
|
48,788
|
21,490
|
|||||||||
PROVISION FOR INCOME TAXES
|
10,802
|
9,831
|
4,608
|
|||||||||
NET INCOME
|
$
|
46,855
|
$
|
38,957
|
$
|
16,882
|
||||||
Earnings per share available to common shareholders:
|
|
|
||||||||||
Basic
|
$
|
1.34
|
$
|
1.11
|
$
|
0.48
|
||||||
Diluted
|
$
|
1.33
|
$
|
1.10
|
$
|
0.47
|
||||||
Cumulative dividends declared per common share
|
$
|
0.41
|
$
|
0.41
|
$
|
0.41
|
||||||
Weighted average common shares outstanding:
|
|
|
||||||||||
Basic
|
34,973,383
|
35,200,769
|
35,463,541
|
|||||||||
Diluted
|
35,303,483
|
35,425,810
|
35,640,463
|
|||||||||
(Decrease) increase in common shares outstanding
|
(423,857)
|
632
|
(649,117)
|
FINANCIAL CONDITION
|
|
|
Percentage
Change
|
|||||||||||||||
(in thousands except shares and per share data)
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
Prior
Qtr
|
Prior Yr
Qtr
|
|||||||||||||
ASSETS
|
|
|
||||||||||||||||
Cash and due from banks
|
$
|
296,184
|
$
|
311,899
|
$
|
211,013
|
(5.0)
|
%
|
40.4
|
%
|
||||||||
Interest-bearing deposits
|
1,353,743
|
922,284
|
83,988
|
46.8
|
%
|
nm
|
||||||||||||
Total cash and cash equivalents
|
1,649,927
|
1,234,183
|
295,001
|
33.7
|
%
|
459.3
|
%
|
|||||||||||
Securities - trading
|
25,039
|
24,980
|
21,040
|
0.2
|
%
|
19.0
|
%
|
|||||||||||
Securities - available for sale
|
2,989,760
|
2,322,593
|
1,608,224
|
28.7
|
%
|
85.9
|
%
|
|||||||||||
Securities - held to maturity
|
441,857
|
421,713
|
437,846
|
4.8
|
%
|
0.9
|
%
|
|||||||||||
Total securities
|
3,456,656
|
2,769,286
|
2,067,110
|
24.8
|
%
|
67.2
|
%
|
|||||||||||
Federal Home Loan Bank stock
|
14,001
|
16,358
|
20,247
|
(14.4)
|
%
|
(30.8)
|
%
|
|||||||||||
Loans held for sale
|
135,263
|
243,795
|
182,428
|
(44.5)
|
%
|
(25.9)
|
%
|
|||||||||||
Loans receivable
|
9,947,697
|
9,870,982
|
9,285,744
|
0.8
|
%
|
7.1
|
%
|
|||||||||||
Allowance for credit losses - loans
|
(156,054)
|
(167,279)
|
(130,488)
|
(6.7)
|
%
|
19.6
|
%
|
|||||||||||
Net loans receivable
|
9,791,643
|
9,703,703
|
9,155,256
|
0.9
|
%
|
7.0
|
%
|
|||||||||||
Accrued interest receivable
|
49,214
|
46,617
|
40,732
|
5.6
|
%
|
20.8
|
%
|
|||||||||||
Real estate owned held for sale, net
|
340
|
816
|
2,402
|
(58.3)
|
%
|
(85.8)
|
%
|
|||||||||||
Property and equipment, net
|
161,268
|
164,556
|
175,235
|
(2.0)
|
%
|
(8.0)
|
%
|
|||||||||||
Goodwill
|
373,121
|
373,121
|
373,121
|
—
|
%
|
—
|
%
|
|||||||||||
Other intangibles, net
|
19,715
|
21,426
|
27,157
|
(8.0)
|
%
|
(27.4)
|
%
|
|||||||||||
Bank-owned life insurance
|
191,388
|
191,830
|
193,140
|
(0.2)
|
%
|
(0.9)
|
%
|
|||||||||||
Other assets
|
277,256
|
265,932
|
249,121
|
4.3
|
%
|
11.3
|
%
|
|||||||||||
Total assets
|
$
|
16,119,792
|
$
|
15,031,623
|
$
|
12,780,950
|
7.2
|
%
|
26.1
|
%
|
||||||||
LIABILITIES
|
|
|
||||||||||||||||
Deposits:
|
|
|
||||||||||||||||
Non-interest-bearing
|
$
|
5,994,693
|
$
|
5,492,924
|
$
|
4,107,262
|
9.1
|
%
|
46.0
|
%
|
||||||||
Interest-bearing transaction and savings accounts
|
6,647,196
|
6,159,052
|
5,175,969
|
7.9
|
%
|
28.4
|
%
|
|||||||||||
Interest-bearing certificates
|
906,978
|
915,320
|
1,166,306
|
(0.9)
|
%
|
(22.2)
|
%
|
|||||||||||
Total deposits
|
13,548,867
|
12,567,296
|
10,449,537
|
7.8
|
%
|
29.7
|
%
|
|||||||||||
Advances from Federal Home Loan Bank
|
100,000
|
150,000
|
247,000
|
(33.3)
|
%
|
(59.5)
|
%
|
|||||||||||
Customer repurchase agreements and other borrowings
|
216,260
|
184,785
|
128,764
|
17.0
|
%
|
68.0
|
%
|
|||||||||||
Subordinated notes, net
|
98,290
|
98,201
|
—
|
0.1
|
%
|
nm
|
||||||||||||
Junior subordinated debentures at fair value
|
117,248
|
116,974
|
99,795
|
0.2
|
%
|
17.5
|
%
|
|||||||||||
Accrued expenses and other liabilities
|
373,685
|
202,643
|
208,753
|
84.4
|
%
|
79.0
|
%
|
|||||||||||
Deferred compensation
|
46,625
|
45,460
|
45,401
|
2.6
|
%
|
2.7
|
%
|
|||||||||||
Total liabilities
|
14,500,975
|
13,365,359
|
11,179,250
|
8.5
|
%
|
29.7
|
%
|
|||||||||||
SHAREHOLDERS’ EQUITY
|
|
|
||||||||||||||||
Common stock
|
1,326,269
|
1,349,879
|
1,343,699
|
(1.7)
|
%
|
(1.3)
|
%
|
|||||||||||
Retained earnings
|
279,582
|
247,316
|
177,922
|
13.0
|
%
|
57.1
|
%
|
|||||||||||
Other components of shareholders’ equity
|
12,966
|
69,069
|
80,079
|
(81.2)
|
%
|
(83.8)
|
%
|
|||||||||||
Total shareholders’ equity
|
1,618,817
|
1,666,264
|
1,601,700
|
(2.8)
|
%
|
1.1
|
%
|
|||||||||||
Total liabilities and shareholders’ equity
|
$
|
16,119,792
|
$
|
15,031,623
|
$
|
12,780,950
|
7.2
|
%
|
26.1
|
%
|
||||||||
Common Shares Issued:
|
|
|
||||||||||||||||
Shares outstanding at end of period
|
34,735,343
|
35,159,200
|
35,102,459
|
|||||||||||||||
Common shareholders’ equity per share (1)
|
$
|
46.60
|
$
|
47.39
|
$
|
45.63
|
||||||||||||
Common shareholders’ tangible equity per share (1) (2)
|
$
|
35.29
|
$
|
36.17
|
$
|
34.23
|
||||||||||||
Common shareholders’ tangible equity to tangible assets (2)
|
7.80
|
%
|
8.69
|
%
|
9.70
|
%
|
||||||||||||
Consolidated Tier 1 leverage capital ratio
|
9.10
|
%
|
9.50
|
%
|
10.45
|
%
|
(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, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
Prior Qtr
|
Prior Yr
Qtr
|
|||||||||||||
|
|
|||||||||||||||||
Commercial real estate:
|
|
|
||||||||||||||||
Owner-occupied
|
$
|
1,045,656
|
$
|
1,076,467
|
$
|
1,024,089
|
(2.9)
|
%
|
2.1
|
%
|
||||||||
Investment properties
|
1,931,805
|
1,955,684
|
2,007,537
|
(1.2)
|
%
|
(3.8)
|
%
|
|||||||||||
Small balance CRE
|
639,330
|
573,849
|
591,783
|
11.4
|
%
|
8.0
|
%
|
|||||||||||
Multifamily real estate
|
433,775
|
428,223
|
400,206
|
1.3
|
%
|
8.4
|
%
|
|||||||||||
Construction, land and land development:
|
||||||||||||||||||
Commercial construction
|
199,037
|
228,937
|
205,476
|
(13.1)
|
%
|
(3.1)
|
%
|
|||||||||||
Multifamily construction
|
305,694
|
305,527
|
250,410
|
0.1
|
%
|
22.1
|
%
|
|||||||||||
One- to four-family construction
|
542,840
|
507,810
|
534,956
|
6.9
|
%
|
1.5
|
%
|
|||||||||||
Land and land development
|
266,730
|
248,915
|
232,506
|
7.2
|
%
|
14.7
|
%
|
|||||||||||
Commercial business:
|
||||||||||||||||||
Commercial business
|
2,376,594
|
2,178,461
|
1,357,817
|
9.1
|
%
|
75.0
|
%
|
|||||||||||
Small business scored
|
717,502
|
743,451
|
807,539
|
(3.5)
|
%
|
(11.1)
|
%
|
|||||||||||
Agricultural business, including secured by farmland
|
262,410
|
299,949
|
330,257
|
(12.5)
|
%
|
(20.5)
|
%
|
|||||||||||
One- to four-family residential
|
655,627
|
717,939
|
881,387
|
(8.7)
|
%
|
(25.6)
|
%
|
|||||||||||
Consumer:
|
||||||||||||||||||
Consumer—home equity revolving lines of credit
|
466,132
|
491,812
|
521,618
|
(5.2)
|
%
|
(10.6)
|
%
|
|||||||||||
Consumer—other
|
104,565
|
113,958
|
140,163
|
(8.2)
|
%
|
(25.4)
|
%
|
|||||||||||
Total loans receivable
|
$
|
9,947,697
|
$
|
9,870,982
|
$
|
9,285,744
|
0.8
|
%
|
7.1
|
%
|
||||||||
Restructured loans performing under their restructured terms
|
$
|
6,424
|
$
|
6,673
|
$
|
6,423
|
||||||||||||
Loans 30 - 89 days past due and on accrual
|
$
|
19,233
|
$
|
12,291
|
$
|
39,974
|
||||||||||||
Total delinquent loans (including loans on non-accrual), net
|
$
|
42,444
|
$
|
36,131
|
$
|
61,101
|
||||||||||||
Total delinquent loans / Total loans receivable
|
0.43
|
%
|
0.37
|
%
|
0.66
|
%
|
LOANS BY GEOGRAPHIC LOCATION
|
Percentage Change
|
|||||||||||||||||||
Mar 31, 2021
|
Dec 31,
2020
|
Mar 31,
2020
|
Prior
Qtr
|
Prior Yr
Qtr
|
||||||||||||||||
Amount
|
Percentage
|
Amount
|
Amount
|
|||||||||||||||||
Washington
|
$
|
4,683,600
|
47.1%
|
$
|
4,647,553
|
$
|
4,350,273
|
0.8
|
%
|
7.7
|
%
|
|||||||||
California
|
2,320,384
|
23.3%
|
2,279,749
|
2,140,895
|
1.8
|
%
|
8.4
|
%
|
||||||||||||
Oregon
|
1,801,104
|
18.1%
|
1,792,156
|
1,664,652
|
0.5
|
%
|
8.2
|
%
|
||||||||||||
Idaho
|
539,061
|
5.4%
|
537,996
|
524,663
|
0.2
|
%
|
2.7
|
%
|
||||||||||||
Utah
|
92,399
|
0.9%
|
80,704
|
52,747
|
14.5
|
%
|
75.2
|
%
|
||||||||||||
Other
|
511,149
|
5.2%
|
532,824
|
552,514
|
(4.1)
|
%
|
(7.5)
|
%
|
||||||||||||
Total loans receivable
|
$
|
9,947,697
|
100.0%
|
$
|
9,870,982
|
$
|
9,285,744
|
0.8
|
%
|
7.1
|
%
|
LOAN ORIGINATIONS
|
Quarters Ended
|
||||||||||
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
Commercial real estate
|
$
|
199,294
|
$
|
93,838
|
$
|
76,359
|
|||||
Multifamily real estate
|
13,271
|
7,900
|
10,171
|
||||||||
Construction and land
|
451,545
|
515,280
|
369,613
|
||||||||
Commercial business:
|
|||||||||||
Commercial business
|
168,049
|
133,112
|
199,873
|
||||||||
SBA PPP
|
428,180
|
—
|
—
|
||||||||
Agricultural business
|
27,267
|
11,552
|
31,261
|
||||||||
One-to four-family residential
|
64,286
|
28,402
|
31,041
|
||||||||
Consumer
|
131,671
|
97,416
|
67,357
|
||||||||
Total loan originations (excluding loans held for sale)
|
$
|
1,483,563
|
$
|
887,500
|
$
|
785,675
|
ADDITIONAL FINANCIAL INFORMATION
|
|
|
|
|||||||||
(dollars in thousands)
|
|
|
|
|||||||||
|
Quarters Ended
|
|||||||||||
CHANGE IN THE
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS
|
|
|
|
|||||||||
Balance, beginning of period
|
$
|
167,279
|
$
|
167,965
|
$
|
100,559
|
||||||
Beginning balance adjustment for adoption of ASC 326
|
—
|
—
|
7,812
|
|||||||||
(Recapture)/provision for credit losses - loans
|
(8,035)
|
(593)
|
21,713
|
|||||||||
Recoveries of loans previously charged off:
|
||||||||||||
Commercial real estate
|
24
|
31
|
167
|
|||||||||
Construction and land
|
100
|
—
|
—
|
|||||||||
One- to four-family real estate
|
113
|
194
|
148
|
|||||||||
Commercial business
|
979
|
2,444
|
205
|
|||||||||
Agricultural business, including secured by farmland
|
—
|
51
|
1,750
|
|||||||||
Consumer
|
296
|
90
|
96
|
|||||||||
|
1,512
|
2,810
|
2,366
|
|||||||||
Loans charged off:
|
||||||||||||
Commercial real estate
|
(3,763)
|
(1,375)
|
(100)
|
|||||||||
Multifamily real estate
|
—
|
—
|
(66)
|
|||||||||
One- to four-family real estate
|
—
|
—
|
(64)
|
|||||||||
Commercial business
|
(789)
|
(1,019)
|
(1,384)
|
|||||||||
Agricultural business, including secured by farmland
|
—
|
(37)
|
—
|
|||||||||
Consumer
|
(150)
|
(472)
|
(348)
|
|||||||||
|
(4,702)
|
(2,903)
|
(1,962)
|
|||||||||
Net charge-offs
|
(3,190)
|
(93)
|
404
|
|||||||||
Balance, end of period
|
$
|
156,054
|
$
|
167,279
|
$
|
130,488
|
||||||
Net charge-offs / Average loans receivable
|
(0.032)
|
%
|
(0.001)
|
%
|
0.004
|
%
|
ALLOCATION OF
|
|
|||||||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
Specific or allocated credit loss allowance:
|
|
|||||||||||
Commercial real estate
|
$
|
59,411
|
$
|
57,791
|
$
|
29,339
|
||||||
Multifamily real estate
|
4,367
|
3,893
|
2,805
|
|||||||||
Construction and land
|
36,440
|
41,295
|
34,217
|
|||||||||
One- to four-family real estate
|
7,988
|
9,913
|
11,884
|
|||||||||
Commercial business
|
31,411
|
35,007
|
31,648
|
|||||||||
Agricultural business, including secured by farmland
|
4,617
|
4,914
|
4,513
|
|||||||||
Consumer
|
11,820
|
14,466
|
16,082
|
|||||||||
Total allowance for credit losses - loans
|
$
|
156,054
|
$
|
167,279
|
$
|
130,488
|
||||||
Allowance for credit losses - loans / Total loans receivable
|
1.57
|
%
|
1.69
|
%
|
1.41
|
%
|
||||||
Allowance for credit losses - loans / Non-performing loans
|
426
|
%
|
470
|
%
|
299
|
%
|
|
Quarters Ended
|
|||||||||||
CHANGE IN THE
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
ALLOWANCE FOR CREDIT LOSSES - UNFUNDED LOAN COMMITMENTS
|
|
|
|
|||||||||
Balance, beginning of period
|
$
|
13,297
|
$
|
12,094
|
$
|
2,716
|
||||||
Beginning balance adjustment for adoption of ASC 326
|
—
|
—
|
7,022
|
|||||||||
(Recapture)/provision for credit losses - unfunded loan commitments
|
(1,220)
|
1,203
|
1,722
|
|||||||||
Balance, end of period
|
$
|
12,077
|
$
|
13,297
|
$
|
11,460
|
ADDITIONAL FINANCIAL INFORMATION
|
|||||||||||
(dollars in thousands)
|
|||||||||||
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
||||||||
NON-PERFORMING ASSETS
|
|
|
|||||||||
Loans on non-accrual status:
|
|
|
|||||||||
Secured by real estate:
|
|
|
|||||||||
Commercial
|
$
|
21,615
|
$
|
18,199
|
$
|
8,512
|
|||||
Construction and land
|
986
|
936
|
1,393
|
||||||||
One- to four-family
|
4,456
|
3,556
|
3,045
|
||||||||
Commercial business
|
4,194
|
5,407
|
25,027
|
||||||||
Agricultural business, including secured by farmland
|
1,536
|
1,743
|
495
|
||||||||
Consumer
|
2,244
|
2,719
|
1,812
|
||||||||
|
35,031
|
32,560
|
40,284
|
||||||||
Loans more than 90 days delinquent, still on accrual:
|
|
|
|||||||||
Secured by real estate:
|
|
|
|||||||||
Commercial
|
—
|
—
|
24
|
||||||||
Construction and land
|
—
|
—
|
1,407
|
||||||||
One- to four-family
|
1,524
|
1,899
|
1,089
|
||||||||
Commercial business
|
37
|
1,025
|
77
|
||||||||
Agricultural business, including secured by farmland
|
—
|
—
|
461
|
||||||||
Consumer
|
—
|
130
|
320
|
||||||||
|
1,561
|
3,054
|
3,378
|
||||||||
Total non-performing loans
|
36,592
|
35,614
|
43,662
|
||||||||
Real estate owned (REO)
|
340
|
816
|
2,402
|
||||||||
Other repossessed assets
|
37
|
51
|
47
|
||||||||
Total non-performing assets
|
$
|
36,969
|
$
|
36,481
|
$
|
46,111
|
|||||
Total non-performing assets to total assets
|
0.23
|
%
|
0.24
|
%
|
0.36
|
%
|
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
||||||||
LOANS BY CREDIT RISK RATING
|
|
|
|||||||||
|
|
||||||||||
Pass
|
$
|
9,584,429
|
$
|
9,494,147
|
$
|
9,095,264
|
|||||
Special Mention
|
51,692
|
36,598
|
64,406
|
||||||||
Substandard
|
311,576
|
340,237
|
126,074
|
||||||||
Total
|
$
|
9,947,697
|
$
|
9,870,982
|
$
|
9,285,744
|
|
Quarters Ended
|
||||||||||
REAL ESTATE OWNED
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
||||||||
Balance, beginning of period
|
$
|
816
|
$
|
1,795
|
$
|
814
|
|||||
Additions from loan foreclosures
|
—
|
—
|
1,588
|
||||||||
Proceeds from dispositions of REO
|
(783)
|
(1,555)
|
—
|
||||||||
Gain on sale of REO
|
307
|
603
|
—
|
||||||||
Valuation adjustments in the period
|
—
|
(27)
|
—
|
||||||||
Balance, end of period
|
$
|
340
|
$
|
816
|
$
|
2,402
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||
DEPOSIT COMPOSITION
|
Percentage Change
|
|||||||||||||||||
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
Prior Qtr
|
Prior Yr
Qtr
|
||||||||||||||
Non-interest-bearing
|
$
|
5,994,693
|
$
|
5,492,924
|
$
|
4,107,262
|
9.1
|
%
|
46.0
|
%
|
||||||||
Interest-bearing checking
|
1,722,085
|
1,569,435
|
1,331,860
|
9.7
|
%
|
29.3
|
%
|
|||||||||||
Regular savings accounts
|
2,597,731
|
2,398,482
|
1,997,265
|
8.3
|
%
|
30.1
|
%
|
|||||||||||
Money market accounts
|
2,327,380
|
2,191,135
|
1,846,844
|
6.2
|
%
|
26.0
|
%
|
|||||||||||
Total interest-bearing transaction and savings accounts
|
6,647,196
|
6,159,052
|
5,175,969
|
7.9
|
%
|
28.4
|
%
|
|||||||||||
Total core deposits
|
12,641,889
|
11,651,976
|
9,283,231
|
8.5
|
%
|
36.2
|
%
|
|||||||||||
Interest-bearing certificates
|
906,978
|
915,320
|
1,166,306
|
(0.9)
|
%
|
(22.2)
|
%
|
|||||||||||
Total deposits
|
$
|
13,548,867
|
$
|
12,567,296
|
$
|
10,449,537
|
7.8
|
%
|
29.7
|
%
|
GEOGRAPHIC CONCENTRATION OF DEPOSITS
|
|||||||||||||||||||||
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
Percentage Change
|
||||||||||||||||||
Amount
|
Percentage
|
Amount
|
Amount
|
Prior Qtr
|
Prior Yr
Qtr
|
||||||||||||||||
Washington
|
$
|
7,504,389
|
55.4
|
%
|
$
|
7,058,404
|
$
|
6,037,864
|
6.3
|
%
|
24.3
|
%
|
|||||||||
Oregon
|
2,929,027
|
21.6
|
%
|
2,604,908
|
2,093,738
|
12.4
|
%
|
39.9
|
%
|
||||||||||||
California
|
2,401,299
|
17.7
|
%
|
2,237,949
|
1,828,064
|
7.3
|
%
|
31.4
|
%
|
||||||||||||
Idaho
|
714,152
|
5.3
|
%
|
666,035
|
489,871
|
7.2
|
%
|
45.8
|
%
|
||||||||||||
Total deposits
|
$
|
13,548,867
|
100.0
|
%
|
$
|
12,567,296
|
$
|
10,449,537
|
7.8
|
%
|
29.7
|
%
|
INCLUDED IN TOTAL DEPOSITS
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
Public non-interest-bearing accounts
|
$
|
151,850
|
$
|
175,352
|
$
|
115,354
|
||||||
Public interest-bearing transaction & savings accounts
|
169,192
|
127,523
|
130,958
|
|||||||||
Public interest-bearing certificates
|
51,021
|
59,127
|
48,232
|
|||||||||
Total public deposits
|
$
|
372,063
|
$
|
362,002
|
$
|
294,544
|
||||||
Total brokered deposits
|
$
|
—
|
$
|
—
|
$
|
250,977
|
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, 2021
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||
Banner Corporation-consolidated:
|
|
|
|
|
|||||||||||||||||
Total capital to risk-weighted assets
|
$
|
1,594,230
|
14.74
|
%
|
$
|
865,281
|
8.00
|
%
|
$
|
1,081,602
|
10.00
|
%
|
|||||||||
Tier 1 capital to risk-weighted assets
|
1,358,958
|
12.56
|
%
|
648,961
|
6.00
|
%
|
648,961
|
6.00
|
%
|
||||||||||||
Tier 1 leverage capital to average assets
|
1,358,958
|
9.10
|
%
|
597,434
|
4.00
|
%
|
n/a
|
n/a
|
|||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
1,215,458
|
11.24
|
%
|
486,721
|
4.50
|
%
|
n/a
|
n/a
|
|||||||||||||
Banner Bank:
|
|
|
|
|
|||||||||||||||||
Total capital to risk-weighted assets
|
1,473,846
|
13.63
|
%
|
865,096
|
8.00
|
%
|
1,081,370
|
10.00
|
%
|
||||||||||||
Tier 1 capital to risk-weighted assets
|
1,338,602
|
12.38
|
%
|
648,822
|
6.00
|
%
|
865,096
|
8.00
|
%
|
||||||||||||
Tier 1 leverage capital to average assets
|
1,338,602
|
8.95
|
%
|
598,565
|
4.00
|
%
|
748,207
|
5.00
|
%
|
||||||||||||
Common equity tier 1 capital to risk-weighted assets
|
1,338,602
|
12.38
|
%
|
486,616
|
4.50
|
%
|
702,890
|
6.50
|
%
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||
(rates / ratios annualized)
|
||||||||||||||||||||||||||||||||
ANALYSIS OF NET INTEREST SPREAD
|
Quarters Ended
|
|||||||||||||||||||||||||||||||
March 31, 2021
|
December 31, 2020
|
March 31, 2020
|
||||||||||||||||||||||||||||||
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
|
$
|
119,341
|
$
|
925
|
3.14
|
%
|
$
|
110,414
|
$
|
976
|
3.52
|
%
|
$
|
152,627
|
$
|
1,520
|
4.01
|
%
|
||||||||||||||
Mortgage loans
|
7,144,770
|
80,580
|
4.57
|
%
|
7,251,101
|
84,634
|
4.64
|
%
|
7,310,115
|
93,061
|
5.12
|
%
|
||||||||||||||||||||
Commercial/agricultural loans
|
2,691,554
|
26,711
|
4.02
|
%
|
2,752,352
|
29,145
|
4.21
|
%
|
1,884,006
|
22,959
|
4.90
|
%
|
||||||||||||||||||||
Consumer and other loans
|
127,469
|
1,947
|
6.19
|
%
|
135,498
|
2,057
|
6.04
|
%
|
163,098
|
2,595
|
6.40
|
%
|
||||||||||||||||||||
Total loans(1)(3)
|
10,083,134
|
110,163
|
4.43
|
%
|
10,249,365
|
116,812
|
4.53
|
%
|
9,509,846
|
120,135
|
5.08
|
%
|
||||||||||||||||||||
Mortgage-backed securities
|
1,953,820
|
9,472
|
1.97
|
%
|
1,429,635
|
7,536
|
2.10
|
%
|
1,354,585
|
9,236
|
2.74
|
%
|
||||||||||||||||||||
Other securities
|
1,048,856
|
6,687
|
2.59
|
%
|
975,166
|
6,634
|
2.71
|
%
|
458,116
|
3,310
|
2.91
|
%
|
||||||||||||||||||||
Equity securities
|
1,742
|
—
|
—
|
%
|
234,822
|
64
|
0.11
|
%
|
—
|
—
|
—
|
%
|
||||||||||||||||||||
Interest-bearing deposits with banks
|
1,032,138
|
262
|
0.10
|
%
|
611,234
|
219
|
0.14
|
%
|
92,659
|
393
|
1.71
|
%
|
||||||||||||||||||||
FHLB stock
|
15,952
|
161
|
4.09
|
%
|
16,361
|
162
|
3.94
|
%
|
26,522
|
322
|
4.88
|
%
|
||||||||||||||||||||
Total investment securities (3)
|
4,052,508
|
16,582
|
1.66
|
%
|
3,267,218
|
14,615
|
1.78
|
%
|
1,931,882
|
13,261
|
2.76
|
%
|
||||||||||||||||||||
Total interest-earning assets
|
14,135,642
|
126,745
|
3.64
|
%
|
13,516,583
|
131,427
|
3.87
|
%
|
11,441,728
|
133,396
|
4.69
|
%
|
||||||||||||||||||||
Non-interest-earning assets
|
1,237,281
|
|
|
1,349,055
|
1,193,256
|
|
|
|||||||||||||||||||||||||
Total assets
|
$
|
15,372,923
|
|
|
$
|
14,865,638
|
$
|
12,634,984
|
|
|
||||||||||||||||||||||
Deposits:
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Interest-bearing checking accounts
|
$
|
1,616,824
|
315
|
0.08
|
%
|
$
|
1,483,183
|
315
|
0.08
|
%
|
$
|
1,266,647
|
469
|
0.15
|
%
|
|||||||||||||||||
Savings accounts
|
2,486,820
|
521
|
0.08
|
%
|
2,375,015
|
691
|
0.12
|
%
|
2,039,857
|
1,755
|
0.35
|
%
|
||||||||||||||||||||
Money market accounts
|
2,242,748
|
775
|
0.14
|
%
|
2,165,960
|
1,047
|
0.19
|
%
|
1,743,118
|
2,439
|
0.56
|
%
|
||||||||||||||||||||
Certificates of deposit
|
913,053
|
1,998
|
0.89
|
%
|
916,286
|
2,339
|
1.02
|
%
|
1,124,994
|
4,087
|
1.46
|
%
|
||||||||||||||||||||
Total interest-bearing deposits
|
7,259,445
|
3,609
|
0.20
|
%
|
6,940,444
|
4,392
|
0.25
|
%
|
6,174,616
|
8,750
|
0.57
|
%
|
||||||||||||||||||||
Non-interest-bearing deposits
|
5,663,820
|
—
|
—
|
%
|
5,499,240
|
—
|
—
|
%
|
3,965,380
|
—
|
—
|
%
|
||||||||||||||||||||
Total deposits
|
12,923,265
|
3,609
|
0.11
|
%
|
12,439,684
|
4,392
|
0.14
|
%
|
10,139,996
|
8,750
|
0.35
|
%
|
||||||||||||||||||||
Other interest-bearing liabilities:
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
FHLB advances
|
144,444
|
934
|
2.62
|
%
|
150,000
|
987
|
2.62
|
%
|
405,429
|
2,064
|
2.05
|
%
|
||||||||||||||||||||
Other borrowings
|
202,930
|
109
|
0.22
|
%
|
187,560
|
121
|
0.26
|
%
|
124,771
|
116
|
0.37
|
%
|
||||||||||||||||||||
Junior subordinated debentures and subordinated notes
|
247,944
|
2,208
|
3.61
|
%
|
247,944
|
2,216
|
3.56
|
%
|
147,944
|
1,477
|
4.02
|
%
|
||||||||||||||||||||
Total borrowings
|
595,318
|
3,251
|
2.21
|
%
|
585,504
|
3,324
|
2.26
|
%
|
678,144
|
3,657
|
2.17
|
%
|
||||||||||||||||||||
Total funding liabilities
|
13,518,583
|
6,860
|
0.21
|
%
|
13,025,188
|
7,716
|
0.24
|
%
|
10,818,140
|
12,407
|
0.46
|
%
|
||||||||||||||||||||
Other non-interest-bearing liabilities(2)
|
207,560
|
|
|
195,965
|
212,162
|
|
|
|||||||||||||||||||||||||
Total liabilities
|
13,726,143
|
|
|
13,221,153
|
11,030,302
|
|
|
|||||||||||||||||||||||||
Shareholders’ equity
|
1,646,780
|
|
|
1,644,485
|
1,604,682
|
|
|
|||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
15,372,923
|
|
|
$
|
14,865,638
|
$
|
12,634,984
|
|
|
||||||||||||||||||||||
Net interest income/rate spread (tax equivalent)
|
$
|
119,885
|
3.43
|
%
|
$
|
123,711
|
3.63
|
%
|
$
|
120,989
|
4.23
|
%
|
||||||||||||||||||||
Net interest margin (tax equivalent)
|
3.44
|
%
|
3.64
|
%
|
4.25
|
%
|
||||||||||||||||||||||||||
Reconciliation to reported net interest income:
|
||||||||||||||||||||||||||||||||
Adjustments for taxable equivalent basis
|
(2,224)
|
(2,274)
|
(1,731)
|
|||||||||||||||||||||||||||||
Net interest income and margin, as reported
|
$
|
117,661
|
3.38
|
%
|
$
|
121,437
|
3.57
|
%
|
$
|
119,258
|
4.19
|
%
|
||||||||||||||||||||
Additional Key Financial Ratios:
|
||||||||||||||||||||||||||||||||
Return on average assets
|
1.24
|
%
|
1.04
|
%
|
0.54
|
%
|
||||||||||||||||||||||||||
Return on average equity
|
11.54
|
%
|
9.42
|
%
|
4.23
|
%
|
||||||||||||||||||||||||||
Average equity/average assets
|
10.71
|
%
|
11.06
|
%
|
12.70
|
%
|
||||||||||||||||||||||||||
Average interest-earning assets/average interest-bearing liabilities
|
179.96
|
%
|
179.60
|
%
|
166.97
|
%
|
||||||||||||||||||||||||||
Average interest-earning assets/average funding liabilities
|
104.56
|
%
|
103.77
|
%
|
105.76
|
%
|
||||||||||||||||||||||||||
Non-interest income/average assets
|
0.64
|
%
|
0.63
|
%
|
0.61
|
%
|
||||||||||||||||||||||||||
Non-interest expense/average assets
|
2.44
|
%
|
2.59
|
%
|
3.03
|
%
|
||||||||||||||||||||||||||
Efficiency ratio(4)
|
65.04
|
%
|
66.76
|
%
|
68.76
|
%
|
||||||||||||||||||||||||||
Adjusted efficiency ratio(5)
|
63.85
|
%
|
64.31
|
%
|
62.26
|
%
|
(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)
|
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was
$1.2 million, $1.3 million, and $1.2 million for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $985,000, $1.0
million, and $522,000 for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.
|
(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. These represent non-GAAP financial measures. See the non-GAAP
Financial Measures on the final two pages of the press release tables.
|
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, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
Net interest income before (recapture)/provision for credit losses
|
$
|
117,661
|
$
|
121,437
|
$
|
119,258
|
|||||
Total non-interest income
|
24,272
|
23,509
|
19,165
|
||||||||
Total GAAP revenue
|
141,933
|
144,946
|
138,423
|
||||||||
Exclude net gain on sale of securities
|
(485)
|
(197)
|
(78)
|
||||||||
Exclude net change in valuation of financial instruments carried at fair value
|
(59)
|
(1,704)
|
4,596
|
||||||||
Adjusted revenue (non-GAAP)
|
$
|
141,389
|
$
|
143,045
|
$
|
142,941
|
ADJUSTED EARNINGS
|
Quarters Ended
|
|||||||||||
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
||||||||||
Net income (GAAP)
|
$
|
46,855
|
$
|
38,957
|
$
|
16,882
|
||||||
Exclude net gain on sale of securities
|
(485)
|
(197)
|
(78)
|
|||||||||
Exclude net change in valuation of financial instruments carried at fair value
|
(59)
|
(1,704)
|
4,596
|
|||||||||
Exclude merger and acquisition-related expenses
|
571
|
579
|
1,142
|
|||||||||
Exclude COVID-19 expenses
|
148
|
333
|
239
|
|||||||||
Exclude related net tax (benefit) expense
|
(42)
|
237
|
(1,405)
|
|||||||||
Total adjusted earnings (non-GAAP)
|
$
|
46,988
|
$
|
38,205
|
$
|
21,376
|
||||||
Diluted earnings per share (GAAP)
|
$
|
1.33
|
$
|
1.10
|
$
|
0.47
|
||||||
Diluted adjusted earnings per share (non-GAAP)
|
$
|
1.33
|
$
|
1.08
|
$
|
0.60
|
ADDITIONAL FINANCIAL INFORMATION
|
||||||||||||
(dollars in thousands)
|
||||||||||||
ADJUSTED EFFICIENCY RATIO
|
Quarters Ended
|
|||||||||||
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
||||||||||
Non-interest expense (GAAP)
|
$
|
92,307
|
$
|
96,759
|
$
|
95,185
|
||||||
Exclude merger and acquisition-related expenses
|
(571)
|
(579)
|
(1,142)
|
|||||||||
Exclude COVID-19 expenses
|
(148)
|
(333)
|
(239)
|
|||||||||
Exclude CDI amortization
|
(1,711)
|
(1,865)
|
(2,001)
|
|||||||||
Exclude state/municipal tax expense
|
(1,065)
|
(1,071)
|
(984)
|
|||||||||
Exclude REO operations
|
242
|
283
|
(100)
|
|||||||||
Exclude recapture/(provision) for credit losses - unfunded loan commitments
|
1,220
|
(1,203)
|
(1,722)
|
|||||||||
Adjusted non-interest expense (non-GAAP)
|
$
|
90,274
|
$
|
91,991
|
$
|
88,997
|
||||||
Net interest income before (recapture)/provision for credit losses (GAAP)
|
$
|
117,661
|
$
|
121,437
|
$
|
119,258
|
||||||
Non-interest income (GAAP)
|
24,272
|
23,509
|
19,165
|
|||||||||
Total revenue
|
141,933
|
144,946
|
138,423
|
|||||||||
Exclude net gain on sale of securities
|
(485)
|
(197)
|
(78)
|
|||||||||
Exclude net change in valuation of financial instruments carried at fair value
|
(59)
|
(1,704)
|
4,596
|
|||||||||
Adjusted revenue (non-GAAP)
|
$
|
141,389
|
$
|
143,045
|
$
|
142,941
|
||||||
Efficiency ratio (GAAP)
|
65.04
|
%
|
66.76
|
%
|
68.76
|
%
|
||||||
Adjusted efficiency ratio (non-GAAP)
|
63.85
|
%
|
64.31
|
%
|
62.26
|
%
|
TANGIBLE COMMON SHAREHOLDERS’ EQUITY TO TANGIBLE ASSETS
|
Mar 31, 2021
|
Dec 31, 2020
|
Mar 31, 2020
|
|||||||||
Shareholders’ equity (GAAP)
|
$
|
1,618,817
|
$
|
1,666,264
|
$
|
1,601,700
|
||||||
Exclude goodwill and other intangible assets, net
|
392,836
|
394,547
|
400,278
|
|||||||||
Tangible common shareholders’ equity (non-GAAP)
|
$
|
1,225,981
|
$
|
1,271,717
|
$
|
1,201,422
|
||||||
Total assets (GAAP)
|
$
|
16,119,792
|
$
|
15,031,623
|
$
|
12,780,950
|
||||||
Exclude goodwill and other intangible assets, net
|
392,836
|
394,547
|
400,278
|
|||||||||
Total tangible assets (non-GAAP)
|
$
|
15,726,956
|
$
|
14,637,076
|
$
|
12,380,672
|
||||||
Common shareholders’ equity to total assets (GAAP)
|
10.04
|
%
|
11.09
|
%
|
12.53
|
%
|
||||||
Tangible common shareholders’ equity to tangible assets (non-GAAP)
|
7.80
|
%
|
8.69
|
%
|
9.70
|
%
|
||||||
TANGIBLE COMMON SHAREHOLDERS’ EQUITY PER SHARE
|
||||||||||||
Tangible common shareholders’ equity (non-GAAP)
|
$
|
1,225,981
|
$
|
1,271,717
|
$
|
1,201,422
|
||||||
Common shares outstanding at end of period
|
34,735,343
|
35,159,200
|
35,102,459
|
|||||||||
Common shareholders’ equity (book value) per share (GAAP)
|
$
|
46.60
|
$
|
47.39
|
$
|
45.63
|
||||||
Tangible common shareholders’ equity (tangible book value) per share (non-GAAP)
|
$
|
35.29
|
$
|
36.17
|
$
|
34.23
|