WALLA WALLA, Wash., July 26, 2017 (GLOBE NEWSWIRE) -- Banner Corporation (NASDAQ GSM:BANR), the parent company of Banner Bank and Islanders Bank, today reported that continued revenue growth contributed to strong second quarter 2017 operating results. Net income in the second quarter of 2017 increased 7% to $25.5 million, or $0.77 per diluted share, compared to $23.8 million, or $0.72 per diluted share, in the preceding quarter and increased 21% compared to $21.0 million, or $0.61 per diluted share, in the second quarter a year ago. There were no acquisition-related costs in the second quarter of 2017 or the preceding quarter. In the second quarter a year ago acquisition costs totaled $2.4 million. In the first six months of 2017, net income increased 27% to $49.2 million, or $1.49 per diluted share, compared to $38.7 million, or $1.14 per diluted share, in the first six months of 2016. There were no acquisition-related costs in the first half of 2017, compared to $9.2 million in acquisition-related costs in the first half of 2016.
“Banner’s strong second quarter operating results were fueled by increased net interest income driven by a solid net interest margin and the Company’s earning asset expansion following the renewed leveraging of the balance sheet, which occurred during the preceding quarter and had its full effect in the second quarter,” stated Mark J. Grescovich, President and Chief Executive Officer. “Accelerated business activity resulted in loan growth and deposit gathering which generated increases in net interest income, deposit fees and improved mortgage banking activity. Earlier this year we crossed the threshold of $10.0 billion in total assets, incurring increased expenses related to enhanced infrastructure and regulatory compliance costs. While increasing regulatory costs are a significant headwind, through the hard work of our employees, we are continuing to execute our strategies to deliver revenue growth, sustainable profitability and increasing value to our shareholders. Our continuing strong earnings trends allowed us to declare a special dividend of $1.00 per share in addition to the regular quarterly dividend of $0.25 per share while effectively managing and maintaining an appropriate capital position.”
At June 30, 2017, Banner Corporation had $10.20 billion in assets, $7.46 billion in net loans and $8.48 billion in deposits. Banner operates 190 branch offices located in nine of the top 20 largest western Metropolitan Statistical Areas by population.
Second Quarter 2017 Highlights
- Net income increased 7% to $25.5 million, compared to $23.8 million in the preceding quarter and increased 21% compared to $21.0 million in the second quarter of 2016.
- Return on average assets was 1.01% in the current quarter, compared to 0.97% in the preceding quarter and 0.86% in the same quarter a year ago.
- Revenues from core operations* increased 6% to $122.9 million, compared to $116.4 million in the preceding quarter, and increased 7% compared to $114.4 million in the second quarter a year ago.
- Net interest margin was 4.33% for the current quarter, compared to 4.25% in the preceding quarter and 4.20% in the second quarter a year ago.
- Deposit fees and other service charges were $13.2 million, a 9% increase compared to $12.2 million in both the preceding quarter and in the same quarter a year ago.
- Revenues from mortgage banking operations increased 48% to $6.8 million compared to $4.6 million in the preceding quarter and $6.6 million in the second quarter a year ago.
- Provision for loan losses was $2.0 million, increasing the allowance for loan losses to $88.6 million or 1.17% of total loans.
- Core deposits represented 86% of total deposits at June 30, 2017.
- Quarterly dividends to shareholders were $0.25 per share, and a special cash dividend of $1.00 per share was also declared.
- Common shareholders' tangible equity per share* was $31.21 at June 30, 2017, compared to $31.68 at the preceding quarter end and $30.86 a year ago.
- The ratio of tangible common shareholders' equity to tangible assets* remained strong at 10.46% at June 30, 2017, compared to 10.72% at the preceding quarter end and 11.00% a year ago.
*Revenues from core operations and non-interest income from core operations (both of which exclude fair value adjustments and gains and losses on the sale of securities), and references to tangible common shareholders' equity per share and the ratio of tangible common equity to tangible assets (both of which exclude goodwill and other intangible assets, net) represent non-GAAP (Generally Accepted Accounting Principles) financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner's core operations reflected in the current quarter's results and facilitate the comparison of our performance with the performance of our peers. Where applicable, comparable earnings information using GAAP financial measures is also presented. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of this press release.
Income Statement Review
Banner’s second quarter net interest income, before the provision for loan losses, increased 5% to $99.7 million, compared to $94.9 million in the preceding quarter and increased 7% compared to $93.1 million in the second quarter a year ago. In the first six months of 2017, net interest income, before the provision for loan losses, increased 6% to $194.6 million compared to $184.2 million in the first six months of 2016.
“Our net interest margin increased eight basis points compared to the preceding quarter, largely reflecting higher loan yields as a result of rising short-term interest rates and increased purchased loan discount accretion,” said Grescovich. Banner's net interest margin was 4.33% for the second quarter of 2017, compared to 4.25% in the preceding quarter and a 13 basis point improvement compared to 4.20% in the second quarter a year ago. Purchase accounting adjustments, principally discount accretion, added 15 basis points to the net interest margin in the current quarter compared to 10 basis points in the preceding quarter and 19 basis points in the second quarter a year ago. In the first six months of 2017, Banner’s net interest margin improved 13 basis points to 4.29% compared to 4.16% in the first six months of 2016. Purchase accounting adjustments added 13 basis points to the net interest margin for the first six months of 2017 compared to 15 basis points for the first six months of 2016.
Average interest-earning asset yields increased nine basis points to 4.53% compared to 4.44% for the preceding quarter and increased 15 basis points compared to 4.38% in the second quarter a year ago. Average loan yields increased 18 basis points to 4.98% compared to the preceding quarter and increased 12 basis points from the second quarter a year ago. Loan discount accretion added 13 basis points to loan yields in the second quarter, eight basis points to the preceding quarter and 14 basis points to the second quarter a year ago. Deposit costs increased one basis point to 0.15% compared to both the preceding quarter and the second quarter a year ago. The total cost of funds increased two basis points to 0.22% during the second quarter compared to 0.20% for both the preceding quarter and the second quarter a year ago.
“As expected, due to the addition of new loans and the renewal of acquired loans out of the discounted loan portfolio, we recorded a $2.0 million provision for loan losses during the second quarter, the same as in the preceding quarter and the year ago quarter,” said Grescovich. "While our asset quality metrics remain exceptionally good, adding to the loan loss allowance will likely continue as we strive to maintain an appropriate level of reserves and a moderate risk profile."
Mortgage banking revenues, including gains on one- to four-family and multifamily loan sales and loan servicing fees, increased to $6.8 million in the second quarter compared to $4.6 million in the preceding quarter and $6.6 million in the second quarter of 2016. Sales of multifamily loans in the current quarter resulted in gains of $1.2 million, while sales of multifamily loans generated $70,000 of gains in the preceding quarter. Home purchase activity accounted for 78% of second quarter one- to four-family mortgage banking loan originations.
Banner’s deposit fees and other service charges were $13.2 million in the second quarter, a 9% increase compared to $12.2 million in both the preceding quarter and in the second quarter a year ago.
Second quarter 2017 results included a $650,000 net loss for fair value adjustments as a result of changes in the valuation of financial instruments carried at fair value and a $54,000 net loss on the sale of securities. In the preceding quarter, results included a $688,000 net loss for fair value adjustments that was partly offset by a $13,000 net gain on the sale of securities. In the second quarter a year ago, results included a $377,000 net loss for fair value adjustments and a $380,000 net loss on the sale of securities.
Total revenues increased 6% to $122.2 million for the second quarter of 2017, compared to $115.7 million in the preceding quarter and increased 7% compared to $113.7 million in the second quarter a year ago. In the first six months of 2017, total revenues increased 6% to $237.9 million, compared to $224.7 million in the first six months of 2016. Revenues from core operations* (revenues excluding gains and losses on the sale of securities and net change in valuation of financial instruments) increased 6% to $122.9 million in the second quarter of 2017, compared to $116.4 million in the preceding quarter, and increased 7% compared to $114.4 million in the second quarter of 2016. In the first six months of 2017, revenues from core operations* was $239.3 million, compared to $225.4 million in the first six months of 2016.
Total non-interest income, which includes the changes in the valuation of financial instruments carried at fair value and gains and losses on the sale of securities, was $22.5 million in the second quarter of 2017, compared to $20.8 million in the first quarter of 2017 and $20.1 million in the second quarter a year ago. In the first six months of 2017, total non-interest income was $43.3 million compared to $40.5 million in the first six months of 2016. Non-interest income from core operations,* which excludes gains and losses on sale of securities and net changes in the valuation of financial instruments, was $23.2 million in the second quarter of 2017, compared to $21.5 million for the first quarter of 2017 and $21.3 million in the second quarter a year ago. In the first six months of 2017, non-interest income from core operations* was $44.7 million, compared to $41.2 million in the first six months of 2016.
Banner’s total non-interest expenses were $81.9 million in the second quarter of 2017, compared to $78.1 million in the preceding quarter and $79.9 million in the second quarter of 2016. The current and preceding quarter's non-interest expenses included increased salary and employee benefits and elevated costs for professional services as compared to the second quarter a year ago largely as result of enhanced regulatory requirements attributable to compliance and risk management infrastructure build-out as a result of crossing the $10 billion threshold. There were no acquisition-related expenses in the current quarter or in the preceding quarter, compared to $2.4 million in the second quarter a year ago. In the first six months of 2017, non-interest expense was $160.0 million compared to $163.9 million in the first six months of 2016. The first six months of 2016 included $9.2 million of acquisition expenses. There were no acquisition-related expenses in the first six months of 2017.
For the second quarter of 2017, Banner recorded $12.8 million in state and federal income tax expense for an effective tax rate of 33.4%, which reflects normal statutory tax rates reduced by the effect of tax-exempt income and certain tax credits.
Balance Sheet Review
Banner’s total assets increased to $10.20 billion at June 30, 2017, from $10.07 billion at March 31, 2017 and $9.92 billion a year ago. The total of securities and interest-bearing deposits held at other banks was $1.66 billion at June 30, 2017, compared to $1.62 billion at March 31, 2017 and $1.16 billion at December 31, 2016. The increase in the securities portfolio during two most recent quarters reflects Banner's renewed leveraging strategy as it crossed the $10 billion assets threshold. In the third and fourth quarters of 2016, Banner reduced its holdings of securities and use of wholesale funding to ensure that it remained below $10 billion in total assets at December 31, 2016. The average effective duration of Banner's securities portfolio was approximately 3.5 years at June 30, 2017, compared to 3.8 years at December 31, 2016 and 2.6 years at June 30, 2016.
“Net loans increased $128 million during the quarter and increased 3% year over year, with good production in targeted loan types, including commercial and agricultural business, commercial real estate, construction and development loans and consumer loans,” said Grescovich. “We continue to be encouraged by robust economic activity in the markets that we serve and see significant potential for growth in our loan origination pipelines.”
Net loans receivable increased 2% to $7.46 billion at June 30, 2017, compared to $7.33 billion at March 31, 2017, and increased 3% compared to $7.24 billion a year ago. Commercial real estate and multifamily real estate loans decreased slightly to $3.62 billion at June 30, 2017, compared to $3.63 billion at March 31, 2017, but increased 4% compared to $3.49 billion a year ago. Commercial business loans increased 5% to $1.29 billion at June 30, 2017, compared to $1.22 billion three months earlier and increased 4% compared to $1.23 billion a year ago. Agricultural business loans increased 10% to $344.4 million at June 30, 2017, compared to $313.4 million three months earlier but declined compared to $370.5 million a year ago. Total construction, land and land development loans increased modestly to $811.5 million at June 30, 2017, compared to $803.7 million at March 31, 2017, and increased 14% compared to $713.3 million a year earlier. Consumer loans increased largely as a result of a successful second quarter campaign to generate additional home equity lines of credit. One- to four-family loans continued to decline as a result of repayments with nearly all newly originated mortgage loans being sold in the secondary market.
Loans held for sale decreased to $66.2 million at June 30, 2017, compared to $86.7 million at March 31, 2017, and $113.2 million at June 30, 2016. Banner sold $114.8 million of multifamily loans during the quarter ended June 30, 2017 and $200.7 million during the preceding quarter. Loans held for sale at June 30, 2017 included $42.9 million of multifamily loans and $23.3 million of one- to four-family loans.
Total deposits were $8.48 billion at June 30, 2017, a modest increase compared to $8.42 billion at March 31, 2017, and a 7% increase compared to $7.92 billion a year ago. Non-interest-bearing account balances increased 8% to $3.25 billion at June 30, 2017, compared to $3.02 billion a year ago. Interest-bearing transaction and savings accounts increased 9% to $4.02 billion compared to $3.69 billion a year ago. Certificates of deposit were $1.21 billion at June 30, 2017, unchanged from a year earlier. Brokered deposits totaled $250.0 million at June 30, 2017, compared to $171.5 million at March 31, 2017 and $93.0 million a year ago. Brokered deposits increased in the current quarter and six months year-to-date to provide funding for the purchase of investment securities in connection with Banner's renewed leveraging strategy.
Core deposits (non-interest bearing and interest-bearing transaction and savings accounts) were essentially unchanged during the current quarter as a result of expected seasonal trends but increased 8% compared to June 30, 2016, reflecting additional account growth as well as increased balances from existing clients. Core deposits represented 86% of total deposits at both June 30, 2017 and March 31, 2017 and 85% of total deposits a year earlier. The average cost of deposits was 0.15% for the quarter ended June 30, 2017, a one basis point increase compared to both the preceding quarter and the quarter ended June 30, 2016.
At June 30, 2017, total common shareholders' equity was $1.31 billion, or $39.36 per share, compared to $1.32 billion at March 31, 2017 and $1.34 billion a year ago. During the second quarter Banner declared and accrued a regular $0.25 per share quarterly dividend as well as a $1.00 per share special dividend. At June 30, 2017, tangible common shareholders' equity*, which excludes goodwill and other intangible assets, was $1.04 billion, or 10.46% of tangible assets*, compared to $1.05 billion, or 10.72% of tangible assets, at March 31, 2017 and $1.06 billion, or 11.00% of tangible assets, a year ago. Banner's tangible book value per share* increased to $31.21 at June 30, 2017, compared to $30.86 per share a year ago.
Banner Corporation and its subsidiary banks continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” under the Basel III and Dodd Frank regulatory standards. At June 30, 2017, Banner Corporation's common equity Tier 1 capital ratio was 11.26%, its Tier 1 leverage capital to average assets ratio was 11.51%, and its total capital to risk-weighted assets ratio was 13.68%.
Credit Quality
In accordance with acquisition accounting, loans acquired from AmericanWest Bank and Siuslaw Bank were recorded at their estimated fair value, which resulted in a net discount to the loans’ contractual amounts, a portion of which reflects a discount for possible credit losses. Credit discounts are included in the determination of fair value, and as a result, no allowance for loan and lease losses is recorded for acquired loans at the acquisition date. Although the discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios, we believe it should be considered when comparing the current ratios to similar ratios in periods prior to the acquisitions of AmericanWest Bank and Siuslaw Bank.
The allowance for loan losses was $88.6 million at June 30, 2017, or 1.17% of total loans outstanding and 405% of non-performing loans compared to $81.3 million at June 30, 2016, or 1.11% of total loans outstanding and 321% of non-performing loans. Banner had net recoveries of $59,000 in the second quarter compared to net charge-offs of $1.5 million in the first quarter of 2017 and net recoveries of $1.1 million in the second quarter a year ago. Primarily as a result of the addition of new loans and the renewal of acquired loans out of the discounted loan portfolio, Banner recorded a $2.0 million provision for loan losses in the current quarter which was the same amount as recorded in the prior quarter and in the year ago quarter. Non-performing loans were $21.9 million at June 30, 2017, compared to $18.1 million at March 31, 2017 and $25.3 million a year ago. Real estate owned and other repossessed assets were $2.6 million at June 30, 2017, compared to $3.2 million at March 31, 2017 and $6.4 million a year ago.
Banner's non-performing assets were $24.5 million, or 0.24% of total assets, at June 30, 2017, compared to $21.3 million, or 0.21% of total assets, at March 31, 2017 and $31.7 million, or 0.32% of total assets, a year ago. In addition to non-performing assets, purchased credit-impaired loans decreased to $26.3 million at June 30, 2017, compared to $30.5 million at March 31, 2017 and $45.4 million a year ago.
Conference Call
Banner will host a conference call on Thursday, July 27, 2017, at 8:00 a.m. PDT, to discuss its second quarter results. To listen to the call on-line, go to www.bannerbank.com. Investment professionals are invited to dial (866) 235-9915 to participate in the call. A replay will be available for one week at (877) 344-7529 using access code 10109479, or at www.bannerbank.com.
About the Company
Banner Corporation is a $10.2 billion bank holding company operating two commercial banks in five Western states through a network of branches offering a full range of deposit services and business, commercial real estate, construction, residential, agricultural and consumer loans. Visit Banner Bank on the Web at www.bannerbank.com.
Forward-Looking Statements
When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date such statements are made and based only on information then actually known to Banner. Banner does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These statements may relate to future financial performance, strategic plans or objectives, revenues or earnings projections, or other financial information. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements and could negatively affect Banner's operating and stock price performance.
Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses, which could necessitate additional provisions for loan losses, resulting both from loans originated and loans acquired from other financial institutions; (2) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for loan losses or writing down of assets or impose restrictions or penalties with respect to Banner's activities; (3) competitive pressures among depository institutions; (4) interest rate movements and their impact on customer behavior and net interest margin; (5) the impact of repricing and competitors' pricing initiatives on loan and deposit products; (6) fluctuations in real estate values; (7) the ability to adapt successfully to technological changes to meet customers' needs and developments in the market place; (8) the ability to access cost-effective funding; (9) changes in financial markets; (10) changes in economic conditions in general and in Washington, Idaho, Oregon, Utah and California in particular; (11) the costs, effects and outcomes of litigation; (12) new legislation or regulatory changes, including but not limited to the Dodd-Frank Act and regulations adopted thereunder, changes in capital requirements pursuant to the Dodd-Frank Act and the implementation of the Basel III capital standards, other governmental initiatives affecting the financial services industry and changes in federal and/or state tax laws or interpretations thereof by taxing authorities; (13) changes in accounting principles, policies or guidelines; (14) future acquisitions by Banner of other depository institutions or lines of business; (15) future goodwill impairment due to changes in Banner's business, changes in market conditions, or other factors and (16) other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks detailed from time to time in our filings with the Securities and Exchange Commission including our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K.
| RESULTS OF OPERATIONS | Quarters Ended | Six months ended | ||||||||||||||||||
| (in thousands except shares and per share data) | Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | |||||||||||||||
| INTEREST INCOME: | ||||||||||||||||||||
| Loans receivable | $ | 94,795 | $ | 91,288 | $ | 88,935 | $ | 186,083 | $ | 175,893 | ||||||||||
| Mortgage-backed securities | 6,239 | 4,647 | 5,274 | 10,886 | 10,664 | |||||||||||||||
| Securities and cash equivalents | 3,402 | 3,161 | 3,112 | 6,563 | 6,065 | |||||||||||||||
| 104,436 | 99,096 | 97,321 | 203,532 | 192,622 | ||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||
| Deposits | 3,182 | 2,791 | 2,771 | 5,973 | 5,717 | |||||||||||||||
| Federal Home Loan Bank advances | 301 | 273 | 339 | 574 | 618 | |||||||||||||||
| Other borrowings | 83 | 74 | 78 | 157 | 153 | |||||||||||||||
| Junior subordinated debentures | 1,164 | 1,104 | 985 | 2,268 | 1,944 | |||||||||||||||
| 4,730 | 4,242 | 4,173 | 8,972 | 8,432 | ||||||||||||||||
| Net interest income before provision for loan losses | 99,706 | 94,854 | 93,148 | 194,560 | 184,190 | |||||||||||||||
| PROVISION FOR LOAN LOSSES | 2,000 | 2,000 | 2,000 | 4,000 | 2,000 | |||||||||||||||
| Net interest income | 97,706 | 92,854 | 91,148 | 190,560 | 182,190 | |||||||||||||||
| NON-INTEREST INCOME: | ||||||||||||||||||||
| Deposit fees and other service charges | 13,238 | 12,186 | 12,213 | 25,423 | 24,031 | |||||||||||||||
| Mortgage banking operations | 6,754 | 4,603 | 6,625 | 11,357 | 12,268 | |||||||||||||||
| Bank owned life insurance | 1,461 | 1,095 | 1,128 | 2,556 | 2,313 | |||||||||||||||
| Miscellaneous | 1,720 | 3,636 | 1,328 | 5,356 | 2,592 | |||||||||||||||
| 23,173 | 21,520 | 21,294 | 44,692 | 41,204 | ||||||||||||||||
| Net (loss) gain on sale of securities | (54 | ) | 13 | (380 | ) | (41 | ) | (359 | ) | |||||||||||
| Net change in valuation of financial instruments carried at fair value | (650 | ) | (688 | ) | (377 | ) | (1,338 | ) | (348 | ) | ||||||||||
| Total non-interest income | 22,469 | 20,845 | 20,537 | 43,313 | 40,497 | |||||||||||||||
| NON-INTEREST EXPENSE: | ||||||||||||||||||||
| Salary and employee benefits | 49,019 | 46,063 | 45,175 | 95,083 | 91,738 | |||||||||||||||
| Less capitalized loan origination costs | (4,598 | ) | (4,316 | ) | (4,907 | ) | (8,914 | ) | (9,157 | ) | ||||||||||
| Occupancy and equipment | 12,045 | 11,996 | 11,052 | 24,041 | 21,440 | |||||||||||||||
| Information / computer data services | 4,100 | 3,994 | 4,852 | 8,094 | 9,772 | |||||||||||||||
| Payment and card processing services | 5,792 | 5,020 | 5,501 | 10,812 | 10,286 | |||||||||||||||
| Professional services | 3,732 | 5,152 | 865 | 8,885 | 3,479 | |||||||||||||||
| Advertising and marketing | 1,766 | 1,328 | 2,474 | 3,095 | 4,207 | |||||||||||||||
| Deposit insurance | 1,071 | 1,266 | 1,311 | 2,337 | 2,649 | |||||||||||||||
| State/municipal business and use taxes | 279 | 799 | 770 | 1,078 | 1,608 | |||||||||||||||
| Real estate operations | (363 | ) | (966 | ) | 137 | (1,329 | ) | 534 | ||||||||||||
| Amortization of core deposit intangibles | 1,624 | 1,624 | 1,808 | 3,248 | 3,615 | |||||||||||||||
| Miscellaneous | 7,463 | 6,118 | 8,437 | 13,577 | 14,526 | |||||||||||||||
| 81,930 | 78,078 | 77,475 | 160,007 | 154,697 | ||||||||||||||||
| Acquisition related expenses | — | — | 2,412 | — | 9,224 | |||||||||||||||
| Total non-interest expense | 81,930 | 78,078 | 79,887 | 160,007 | 163,921 | |||||||||||||||
| Income before provision for income taxes | 38,245 | 35,621 | 31,798 | 73,866 | 58,766 | |||||||||||||||
| PROVISION FOR INCOME TAXES | 12,791 | 11,828 | 10,841 | 24,619 | 20,035 | |||||||||||||||
| NET INCOME | $ | 25,454 | $ | 23,793 | $ | 20,957 | $ | 49,247 | $ | 38,731 | ||||||||||
| Earnings per share available to common shareholders: | ||||||||||||||||||||
| Basic | $ | 0.77 | $ | 0.72 | $ | 0.62 | $ | 1.49 | $ | 1.14 | ||||||||||
| Diluted | $ | 0.77 | $ | 0.72 | $ | 0.61 | $ | 1.49 | $ | 1.14 | ||||||||||
| Cumulative dividends declared per common share | $ | 1.25 | $ | 0.25 | $ | 0.21 | $ | 1.50 | $ | 0.42 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 32,982,126 | 32,933,444 | 34,069,234 | 32,957,920 | 34,053,105 | |||||||||||||||
| Diluted | 33,051,527 | 33,051,459 | 34,116,498 | 33,052,205 | 34,090,647 | |||||||||||||||
| Increase (decrease) in common shares outstanding | 125,167 | (40,523 | ) | 129,109 | 84,644 | 108,305 | ||||||||||||||
| FINANCIAL CONDITION | Percentage Change | |||||||||||||||||||||
| (in thousands except shares and per share data) | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | Prior Qtr | Prior Yr Qtr | ||||||||||||||||
| ASSETS | ||||||||||||||||||||||
| Cash and due from banks | $ | 196,178 | $ | 196,277 | $ | 177,083 | $ | 158,446 | (0.1 | )% | 23.8 | % | ||||||||||
| Interest-bearing deposits | 77,370 | 104,431 | 70,636 | 76,210 | (25.9 | )% | 1.5 | % | ||||||||||||||
| Total cash and cash equivalents | 273,548 | 300,708 | 247,719 | 234,656 | (9.0 | )% | 16.6 | % | ||||||||||||||
| Securities - trading | 24,950 | 24,753 | 24,568 | 33,753 | 0.8 | % | (26.1 | )% | ||||||||||||||
| Securities - available for sale | 1,290,159 | 1,223,764 | 800,917 | 1,177,757 | 5.4 | % | 9.5 | % | ||||||||||||||
| Securities - held to maturity | 268,050 | 266,391 | 267,873 | 254,666 | 0.6 | % | 5.3 | % | ||||||||||||||
| Federal Home Loan Bank stock | 12,334 | 10,334 | 12,506 | 23,347 | 19.4 | % | (47.2 | )% | ||||||||||||||
| Loans held for sale | 66,164 | 86,707 | 246,353 | 113,230 | (23.7 | )% | (41.6 | )% | ||||||||||||||
| Loans receivable | 7,551,563 | 7,421,255 | 7,451,148 | 7,325,925 | 1.8 | % | 3.1 | % | ||||||||||||||
| Allowance for loan losses | (88,586 | ) | (86,527 | ) | (85,997 | ) | (81,318 | ) | 2.4 | % | 8.9 | % | ||||||||||
| Net loans | 7,462,977 | 7,334,728 | 7,365,151 | 7,244,607 | 1.7 | % | 3.0 | % | ||||||||||||||
| Accrued interest receivable | 30,722 | 30,312 | 30,178 | 30,052 | 1.4 | % | 2.2 | % | ||||||||||||||
| Real estate owned held for sale, net | 2,427 | 3,040 | 11,081 | 6,147 | (20.2 | )% | (60.5 | )% | ||||||||||||||
| Property and equipment, net | 161,095 | 162,467 | 166,481 | 167,597 | (0.8 | )% | (3.9 | )% | ||||||||||||||
| Goodwill | 244,583 | 244,583 | 244,583 | 244,583 | — | % | — | % | ||||||||||||||
| Other intangibles, net | 26,813 | 28,488 | 30,162 | 33,724 | (5.9 | )% | (20.5 | )% | ||||||||||||||
| Bank-owned life insurance | 160,609 | 159,948 | 158,936 | 158,001 | 0.4 | % | 1.7 | % | ||||||||||||||
| Other assets | 175,389 | 192,155 | 187,160 | 194,085 | (8.7 | )% | (9.6 | )% | ||||||||||||||
| Total assets | $ | 10,199,820 | $ | 10,068,378 | $ | 9,793,668 | $ | 9,916,205 | 1.3 | % | 2.9 | % | ||||||||||
| LIABILITIES | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Non-interest-bearing | $ | 3,254,581 | $ | 3,213,044 | $ | 3,140,451 | $ | 3,023,986 | 1.3 | % | 7.6 | % | ||||||||||
| Interest-bearing transaction and savings accounts | 4,022,909 | 4,064,198 | 3,935,630 | 3,687,118 | (1.0 | )% | 9.1 | % | ||||||||||||||
| Interest-bearing certificates | 1,206,241 | 1,144,718 | 1,045,333 | 1,208,671 | 5.4 | % | (0.2 | )% | ||||||||||||||
| Total deposits | 8,483,731 | 8,421,960 | 8,121,414 | 7,919,775 | 0.7 | % | 7.1 | % | ||||||||||||||
| Advances from Federal Home Loan Bank at fair value | 50,212 | 213 | 54,216 | 325,383 | nm | (84.6 | )% | |||||||||||||||
| Customer repurchase agreements and other borrowings | 116,455 | 120,245 | 105,685 | 112,308 | (3.2 | )% | 3.7 | % | ||||||||||||||
| Junior subordinated debentures at fair value | 96,852 | 96,040 | 95,200 | 93,298 | 0.8 | % | 3.8 | % | ||||||||||||||
| Accrued expenses and other liabilities | 102,511 | 66,201 | 71,369 | 87,441 | 54.8 | % | 17.2 | % | ||||||||||||||
| Deferred compensation | 40,208 | 40,315 | 40,074 | 39,483 | (0.3 | )% | 1.8 | % | ||||||||||||||
| Total liabilities | 8,889,969 | 8,744,974 | 8,487,958 | 8,577,688 | 1.7 | % | 3.6 | % | ||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
| Common stock | 1,215,316 | 1,214,517 | 1,213,837 | 1,263,085 | 0.1 | % | (3.8 | )% | ||||||||||||||
| Retained earnings | 94,541 | 110,783 | 95,328 | 63,967 | (14.7 | )% | 47.8 | % | ||||||||||||||
| Other components of shareholders' equity | (6 | ) | (1,896 | ) | (3,455 | ) | 11,465 | (99.7 | )% | (100.1 | )% | |||||||||||
| Total shareholders' equity | 1,309,851 | 1,323,404 | 1,305,710 | 1,338,517 | (1.0 | )% | (2.1 | )% | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,199,820 | $ | 10,068,378 | $ | 9,793,668 | $ | 9,916,205 | 1.3 | % | 2.9 | % | ||||||||||
| Common Shares Issued: | ||||||||||||||||||||||
| Shares outstanding at end of period | 33,278,031 | 33,152,864 | 33,193,387 | 34,350,560 | ||||||||||||||||||
| Common shareholders' equity per share (1) | $ | 39.36 | $ | 39.92 | $ | 39.34 | $ | 38.97 | ||||||||||||||
| Common shareholders' tangible equity per share (1) (2) | $ | 31.21 | $ | 31.68 | $ | 31.06 | $ | 30.86 | ||||||||||||||
| Common shareholders' tangible equity to tangible assets (2) | 10.46 | % | 10.72 | % | 10.83 | % | 11.00 | % | ||||||||||||||
| Consolidated Tier 1 leverage capital ratio | 11.51 | % | 11.79 | % | 11.83 | % | 11.85 | % | ||||||||||||||
| (1 | ) | Calculation is based on number of common shares outstanding at the end of the period rather than weighted average shares outstanding. |
| (2 | ) | Common shareholders' tangible equity excludes goodwill and other intangible assets. Tangible assets exclude goodwill and other intangible assets. These ratios represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last four pages of the press release tables. |
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Percentage Change | ||||||||||||||||||||||
| LOANS | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | Prior Qtr | Prior Yr Qtr | ||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||||
| Owner occupied | $ | 1,358,094 | $ | 1,361,095 | $ | 1,352,999 | $ | 1,351,015 | (0.2 | )% | 0.5 | % | ||||||||||
| Investment properties | 1,975,075 | 2,011,618 | 1,986,336 | 1,849,123 | (1.8 | )% | 6.8 | % | ||||||||||||||
| Multifamily real estate | 288,442 | 254,246 | 248,150 | 287,783 | 13.4 | % | 0.2 | % | ||||||||||||||
| Commercial construction | 144,092 | 141,505 | 124,068 | 105,594 | 1.8 | % | 36.5 | % | ||||||||||||||
| Multifamily construction | 111,562 | 114,728 | 124,126 | 97,697 | (2.8 | )% | 14.2 | % | ||||||||||||||
| One- to four-family construction | 380,782 | 366,191 | 375,704 | 330,474 | 4.0 | % | 15.2 | % | ||||||||||||||
| Land and land development: | ||||||||||||||||||||||
| Residential | 147,149 | 151,649 | 170,004 | 156,964 | (3.0 | )% | (6.3 | )% | ||||||||||||||
| Commercial | 27,917 | 29,597 | 29,184 | 22,578 | (5.7 | )% | 23.6 | % | ||||||||||||||
| Commercial business | 1,286,204 | 1,224,541 | 1,207,879 | 1,231,182 | 5.0 | % | 4.5 | % | ||||||||||||||
| Agricultural business including secured by farmland | 344,412 | 313,374 | 369,156 | 370,515 | 9.9 | % | (7.0 | )% | ||||||||||||||
| One- to four-family real estate | 800,008 | 802,991 | 813,077 | 878,986 | (0.4 | )% | (9.0 | )% | ||||||||||||||
| Consumer: | ||||||||||||||||||||||
| Consumer secured by one- to four-family real estate | 527,623 | 493,495 | 493,211 | 485,545 | 6.9 | % | 8.7 | % | ||||||||||||||
| Consumer-other | 160,203 | 156,225 | 157,254 | 158,469 | 2.5 | % | 1.1 | % | ||||||||||||||
| Total loans receivable | $ | 7,551,563 | $ | 7,421,255 | $ | 7,451,148 | $ | 7,325,925 | 1.8 | % | 3.1 | % | ||||||||||
| Restructured loans performing under their restructured terms | $ | 13,531 | $ | 17,193 | $ | 18,907 | $ | 18,835 | ||||||||||||||
| Loans 30 - 89 days past due and on accrual (1) | $ | 15,564 | $ | 22,214 | $ | 11,571 | $ | 14,447 | ||||||||||||||
| Total delinquent loans (including loans on non-accrual), net (2) | $ | 32,961 | $ | 37,563 | $ | 30,553 | $ | 38,038 | ||||||||||||||
| Total delinquent loans / Total loans outstanding | 0.44 | % | 0.51 | % | 0.41 | % | 0.52 | % | ||||||||||||||
(1) Includes $835,000 of purchased credit-impaired loans at June 30, 2017 compared to $2.4 million at March 31, 2017, $470,000 at December 31, 2016 and $1.4 million at June 30, 2016.
(2) Delinquent loans include $2.5 million of delinquent purchased credit-impaired loans June 30, 2017 compared to $3.5 million at March 31, 2017, $1.7 million at December 31, 2016 and $4.4 million at June 30, 2016.
| LOANS BY GEOGRAPHIC LOCATION | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||||
| Washington | $ | 3,425,627 | 45.3 | % | $ | 3,401,005 | 45.8 | % | $ | 3,433,617 | 46.1 | % | $ | 3,401,656 | 46.4 | % | ||||||||||||
| Oregon | 1,532,460 | 20.3 | % | 1,493,054 | 20.1 | % | 1,505,369 | 20.2 | % | 1,461,906 | 20.0 | % | ||||||||||||||||
| California | 1,304,194 | 17.3 | % | 1,255,597 | 16.9 | % | 1,239,989 | 16.6 | % | 1,184,392 | 16.2 | % | ||||||||||||||||
| Idaho | 487,378 | 6.5 | % | 471,519 | 6.4 | % | 495,992 | 6.7 | % | 505,594 | 6.9 | % | ||||||||||||||||
| Utah | 294,467 | 3.9 | % | 281,379 | 3.8 | % | 283,890 | 3.8 | % | 294,102 | 4.0 | % | ||||||||||||||||
| Other | 507,437 | 6.7 | % | 518,701 | 7.0 | % | 492,291 | 6.6 | % | 478,275 | 6.5 | % | ||||||||||||||||
| Total loans | $ | 7,551,563 | 100.0 | % | $ | 7,421,255 | 100.0 | % | $ | 7,451,148 | 100.0 | % | $ | 7,325,925 | 100.0 | % | ||||||||||||
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Quarters Ended | Six months ended | |||||||||||||||||||
| CHANGE IN THE | Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | |||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance, beginning of period | $ | 86,527 | $ | 85,997 | $ | 78,197 | $ | 85,997 | $ | 78,008 | ||||||||||
| Provision for loan losses | 2,000 | 2,000 | 2,000 | 4,000 | 2,000 | |||||||||||||||
| Recoveries of loans previously charged off: | ||||||||||||||||||||
| Commercial real estate | 264 | 70 | 26 | 334 | 64 | |||||||||||||||
| Multifamily real estate | 11 | — | — | 11 | — | |||||||||||||||
| Construction and land | 1,024 | 83 | 124 | 1,107 | 595 | |||||||||||||||
| One- to four-family real estate | 109 | 145 | 558 | 254 | 570 | |||||||||||||||
| Commercial business | 171 | 173 | 622 | 344 | 1,342 | |||||||||||||||
| Agricultural business, including secured by farmland | 19 | 113 | 160 | 132 | 177 | |||||||||||||||
| Consumer | 101 | 94 | 249 | 195 | 456 | |||||||||||||||
| 1,699 | 678 | 1,739 | 2,377 | 3,204 | ||||||||||||||||
| Loans charged off: | ||||||||||||||||||||
| Commercial real estate | (47 | ) | — | — | (47 | ) | (180 | ) | ||||||||||||
| One- to four-family real estate | — | — | (34 | ) | — | (34 | ) | |||||||||||||
| Commercial business | (1,169 | ) | (1,626 | ) | (171 | ) | (2,795 | ) | (310 | ) | ||||||||||
| Agricultural business, including secured by farmland | (104 | ) | (159 | ) | — | (263 | ) | (567 | ) | |||||||||||
| Consumer | (320 | ) | (363 | ) | (413 | ) | (683 | ) | (803 | ) | ||||||||||
| (1,640 | ) | (2,148 | ) | (618 | ) | (3,788 | ) | (1,894 | ) | |||||||||||
| Net recoveries (charge-offs) | 59 | (1,470 | ) | 1,121 | (1,411 | ) | 1,310 | |||||||||||||
| Balance, end of period | $ | 88,586 | $ | 86,527 | $ | 81,318 | $ | 88,586 | $ | 81,318 | ||||||||||
| Net recoveries (charge-offs) / Average loans outstanding | 0.001 | % | (0.019 | )% | 0.015 | % | (0.018 | )% | 0.018 | % | ||||||||||
| ALLOCATION OF | ||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||
| Specific or allocated loss allowance: | ||||||||||||||||
| Commercial real estate | $ | 24,232 | $ | 20,472 | $ | 20,993 | $ | 20,149 | ||||||||
| Multifamily real estate | 1,562 | 1,378 | 1,360 | 1,515 | ||||||||||||
| Construction and land | 27,312 | 29,464 | 34,252 | 31,861 | ||||||||||||
| One- to four-family real estate | 2,010 | 1,974 | 2,238 | 2,204 | ||||||||||||
| Commercial business | 19,126 | 19,768 | 16,533 | 17,758 | ||||||||||||
| Agricultural business, including secured by farmland | 3,808 | 3,245 | 2,967 | 2,891 | ||||||||||||
| Consumer | 3,987 | 3,840 | 4,104 | 3,743 | ||||||||||||
| Total allocated | 82,037 | 80,141 | 82,447 | 80,121 | ||||||||||||
| Unallocated | 6,549 | 6,386 | 3,550 | 1,197 | ||||||||||||
| Total allowance for loan losses | $ | 88,586 | $ | 86,527 | $ | 85,997 | $ | 81,318 | ||||||||
| Allowance for loan losses / Total loans outstanding | 1.17 | % | 1.17 | % | 1.15 | % | 1.11 | % | ||||||||
| Allowance for loan losses / Non-performing loans | 405 | % | 479 | % | 381 | % | 321 | % | ||||||||
| ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||
| NON-PERFORMING ASSETS | |||||||||||||||
| Loans on non-accrual status: | |||||||||||||||
| Secured by real estate: | |||||||||||||||
| Commercial | $ | 6,267 | $ | 6,910 | $ | 8,237 | $ | 11,753 | |||||||
| Multifamily | — | 147 | — | 31 | |||||||||||
| Construction and land | 1,726 | 1,775 | 1,748 | 1,738 | |||||||||||
| One- to four-family | 2,955 | 3,386 | 2,263 | 3,512 | |||||||||||
| Commercial business | 7,037 | 2,700 | 3,074 | 1,426 | |||||||||||
| Agricultural business, including secured by farmland | 1,456 | 1,012 | 3,229 | 4,459 | |||||||||||
| Consumer | 1,494 | 1,285 | 1,875 | 1,165 | |||||||||||
| 20,935 | 17,215 | 20,426 | 24,084 | ||||||||||||
| Loans more than 90 days delinquent, still on accrual: | |||||||||||||||
| Secured by real estate: | |||||||||||||||
| Commercial | — | — | 701 | — | |||||||||||
| Multifamily | — | — | 147 | — | |||||||||||
| One- to four-family | 754 | 545 | 1,233 | 896 | |||||||||||
| Commercial business | 77 | — | — | — | |||||||||||
| Consumer | 108 | 297 | 72 | 337 | |||||||||||
| 939 | 842 | 2,153 | 1,233 | ||||||||||||
| Total non-performing loans | 21,874 | 18,057 | 22,579 | 25,317 | |||||||||||
| Real estate owned (REO) | 2,427 | 3,040 | 11,081 | 6,147 | |||||||||||
| Other repossessed assets | 181 | 162 | 166 | 256 | |||||||||||
| Total non-performing assets | $ | 24,482 | $ | 21,259 | $ | 33,826 | $ | 31,720 | |||||||
| Total non-performing assets to total assets | 0.24 | % | 0.21 | % | 0.35 | % | 0.32 | % | |||||||
| Purchased credit-impaired loans, net | $ | 26,267 | $ | 30,501 | $ | 32,322 | $ | 45,376 | |||||||
| Quarters Ended | Six months ended | ||||||||||||||||||
| REAL ESTATE OWNED | Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | ||||||||||||||
| Balance, beginning of period | $ | 3,040 | $ | 11,081 | $ | 7,207 | $ | 11,081 | $ | 11,627 | |||||||||
| Additions from loan foreclosures | 46 | — | 376 | 46 | 378 | ||||||||||||||
| Additions from acquisitions | — | — | — | — | 400 | ||||||||||||||
| Additions from capitalized costs | 54 | — | — | 54 | — | ||||||||||||||
| Proceeds from dispositions of REO | (1,228 | ) | (9,193 | ) | (1,656 | ) | (10,421 | ) | (6,322 | ) | |||||||||
| Gain on sale of REO | 721 | 1,202 | 651 | 1,923 | 700 | ||||||||||||||
| Valuation adjustments in the period | (206 | ) | (50 | ) | (431 | ) | (256 | ) | (636 | ) | |||||||||
| Balance, end of period | $ | 2,427 | $ | 3,040 | $ | 6,147 | $ | 2,427 | $ | 6,147 | |||||||||
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| DEPOSIT COMPOSITION | Percentage Change | |||||||||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | Prior Qtr | Prior Yr | |||||||||||||||||
| Non-interest-bearing | $ | 3,254,581 | $ | 3,213,044 | $ | 3,140,451 | $ | 3,023,986 | 1.3 | % | 7.6 | % | ||||||||||
| Interest-bearing checking | 953,227 | 928,232 | 914,484 | 830,625 | 2.7 | % | 14.8 | % | ||||||||||||||
| Regular savings accounts | 1,530,517 | 1,592,023 | 1,523,391 | 1,321,518 | (3.9 | )% | 15.8 | % | ||||||||||||||
| Money market accounts | 1,539,165 | 1,543,943 | 1,497,755 | 1,534,975 | (0.3 | )% | 0.3 | % | ||||||||||||||
| Total interest-bearing transaction and savings accounts | 4,022,909 | 4,064,198 | 3,935,630 | 3,687,118 | (1.0 | )% | 9.1 | % | ||||||||||||||
| Interest-bearing certificates | 1,206,241 | 1,144,718 | 1,045,333 | 1,208,671 | 5.4 | % | (0.2 | )% | ||||||||||||||
| Total deposits | $ | 8,483,731 | $ | 8,421,960 | $ | 8,121,414 | $ | 7,919,775 | 0.7 | % | 7.1 | % | ||||||||||
| GEOGRAPHIC CONCENTRATION OF DEPOSITS | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | Amount | Percentage | Amount | Percentage | |||||||||||||||||||||
| Washington | $ | 4,615,284 | 54.5 | % | $ | 4,619,457 | 54.9 | % | $ | 4,347,644 | 53.6 | % | $ | 4,158,639 | 52.5 | % | ||||||||||||
| Oregon | 1,806,639 | 21.3 | % | 1,746,143 | 20.7 | % | 1,708,973 | 21.0 | % | 1,686,160 | 21.3 | % | ||||||||||||||||
| California | 1,445,621 | 17.0 | % | 1,469,351 | 17.4 | % | 1,469,748 | 18.1 | % | 1,485,795 | 18.8 | % | ||||||||||||||||
| Idaho | 416,933 | 4.9 | % | 429,850 | 5.1 | % | 447,019 | 5.5 | % | 421,427 | 5.3 | % | ||||||||||||||||
| Utah | 199,254 | 2.3 | % | 157,159 | 1.9 | % | 148,030 | 1.8 | % | 167,754 | 2.1 | % | ||||||||||||||||
| Total deposits | $ | 8,483,731 | 100.0 | % | $ | 8,421,960 | 100.0 | % | $ | 8,121,414 | 100.0 | % | $ | 7,919,775 | 100.0 | % | ||||||||||||
| INCLUDED IN TOTAL DEPOSITS | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||
| Public non-interest-bearing accounts | $ | 85,760 | $ | 80,322 | $ | 92,789 | $ | 102,486 | ||||||||
| Public interest-bearing transaction & savings accounts | 124,075 | 125,921 | 128,976 | 127,045 | ||||||||||||
| Public interest-bearing certificates | 30,496 | 31,024 | 25,650 | 26,574 | ||||||||||||
| Total public deposits | $ | 240,331 | $ | 237,267 | $ | 247,415 | $ | 256,105 | ||||||||
| Total brokered deposits | $ | 250,001 | $ | 171,521 | $ | 34,074 | $ | 92,982 | ||||||||
| ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| Actual | Minimum to be categorized as "Adequately Capitalized" | Minimum to be categorized as "Well Capitalized" | |||||||||||||||||||
| REGULATORY CAPITAL RATIOS AS OF JUNE 30, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
| Banner Corporation-consolidated: | |||||||||||||||||||||
| Total capital to risk-weighted assets | $ | 1,220,389 | 13.68 | % | $ | 713,907 | 8.00 | % | $ | 892,384 | 10.00 | % | |||||||||
| Tier 1 capital to risk-weighted assets | 1,129,354 | 12.66 | % | 535,431 | 6.00 | % | 535,431 | 6.00 | % | ||||||||||||
| Tier 1 leverage capital to average assets | 1,129,354 | 11.51 | % | 392,603 | 4.00 | % | n/a | n/a | |||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 1,005,226 | 11.26 | % | 401,573 | 4.50 | % | n/a | n/a | |||||||||||||
| Banner Bank: | |||||||||||||||||||||
| Total capital to risk-weighted assets | 1,073,818 | 12.31 | % | 697,992 | 8.00 | % | 872,489 | 10.00 | % | ||||||||||||
| Tier 1 capital to risk-weighted assets | 985,051 | 11.29 | % | 523,494 | 6.00 | % | 697,992 | 8.00 | % | ||||||||||||
| Tier 1 leverage capital to average assets | 985,051 | 10.32 | % | 381,966 | 4.00 | % | 477,458 | 5.00 | % | ||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 985,051 | 11.29 | % | 392,620 | 4.50 | % | 567,118 | 6.50 | % | ||||||||||||
| Islanders Bank: | |||||||||||||||||||||
| Total capital to risk-weighted assets | 31,171 | 16.29 | % | 15,304 | 8.00 | % | 19,131 | 10.00 | % | ||||||||||||
| Tier 1 capital to risk-weighted assets | 28,903 | 15.11 | % | 11,478 | 6.00 | % | 15,304 | 8.00 | % | ||||||||||||
| Tier 1 leverage capital to average assets | 28,903 | 11.12 | % | 10,394 | 4.00 | % | 12,993 | 5.00 | % | ||||||||||||
| Common equity tier 1 capital to risk-weighted assets | 28,903 | 15.11 | % | 8,609 | 4.50 | % | 12,435 | 6.50 | % | ||||||||||||
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| (rates / ratios annualized) | ||||||||||||||||||||||||||
| ANALYSIS OF NET INTEREST SPREAD | Quarters Ended | |||||||||||||||||||||||||
| June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||||||||||||||||||||
| Average Balance | Interest and Dividends | Yield / Cost(3) | Average Balance | Interest and Dividends | Yield / Cost(3) | Average Balance | Interest and Dividends | Yield / Cost(3) | ||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||
| Mortgage loans | $ | 5,987,295 | $ | 74,459 | 4.99 | % | $ | 6,104,779 | $ | 72,549 | 4.82 | % | $ | 5,715,740 | $ | 68,914 | 4.85 | % | ||||||||
| Commercial/agricultural loans | 1,503,548 | 18,179 | 4.85 | % | 1,464,532 | 16,546 | 4.58 | % | 1,504,969 | 17,816 | 4.76 | % | ||||||||||||||
| Consumer and other loans | 138,724 | 2,157 | 6.24 | % | 138,033 | 2,193 | 6.44 | % | 140,355 | 2,205 | 6.32 | % | ||||||||||||||
| Total loans(1) | 7,629,567 | 94,795 | 4.98 | % | 7,707,344 | 91,288 | 4.80 | % | 7,361,064 | 88,935 | 4.86 | % | ||||||||||||||
| Mortgage-backed securities | 1,067,255 | 6,239 | 2.34 | % | 842,071 | 4,647 | 2.24 | % | 1,004,044 | 5,274 | 2.11 | % | ||||||||||||||
| Other securities | 471,894 | 3,192 | 2.71 | % | 453,793 | 3,037 | 2.71 | % | 450,528 | 2,931 | 2.62 | % | ||||||||||||||
| Interest-bearing deposits with banks | 54,051 | 139 | 1.03 | % | 32,195 | 93 | 1.17 | % | 95,668 | 101 | 0.42 | % | ||||||||||||||
| FHLB stock | 14,472 | 71 | 1.97 | % | 15,550 | 31 | 0.81 | % | 18,911 | 80 | 1.70 | % | ||||||||||||||
| Total investment securities | 1,607,672 | 9,641 | 2.41 | % | 1,343,609 | 7,808 | 2.36 | % | 1,569,151 | 8,386 | 2.15 | % | ||||||||||||||
| Total interest-earning assets | 9,237,239 | 104,436 | 4.53 | % | 9,050,953 | 99,096 | 4.44 | % | 8,930,215 | 97,321 | 4.38 | % | ||||||||||||||
| Non-interest-earning assets | 896,136 | 923,165 | 903,706 | |||||||||||||||||||||||
| Total assets | $ | 10,133,375 | $ | 9,974,118 | $ | 9,833,921 | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Interest-bearing checking accounts | $ | 927,375 | 210 | 0.09 | % | $ | 896,764 | 200 | 0.09 | % | $ | 789,626 | 185 | 0.09 | % | |||||||||||
| Savings accounts | 1,553,019 | 527 | 0.14 | % | 1,557,734 | 523 | 0.14 | % | 1,329,104 | 431 | 0.13 | % | ||||||||||||||
| Money market accounts | 1,534,551 | 689 | 0.18 | % | 1,522,470 | 651 | 0.17 | % | 1,577,320 | 811 | 0.21 | % | ||||||||||||||
| Certificates of deposit | 1,200,435 | 1,756 | 0.59 | % | 1,089,316 | 1,417 | 0.53 | % | 1,244,796 | 1,344 | 0.43 | % | ||||||||||||||
| Total interest-bearing deposits | 5,215,380 | 3,182 | 0.24 | % | 5,066,284 | 2,791 | 0.22 | % | 4,940,846 | 2,771 | 0.23 | % | ||||||||||||||
| Non-interest-bearing deposits | 3,158,727 | — | — | % | 3,148,520 | — | — | % | 3,029,890 | — | — | % | ||||||||||||||
| Total deposits | 8,374,107 | 3,182 | 0.15 | % | 8,214,804 | 2,791 | 0.14 | % | 7,970,736 | 2,771 | 0.14 | % | ||||||||||||||
| Other interest-bearing liabilities: | ||||||||||||||||||||||||||
| FHLB advances | 103,848 | 301 | 1.16 | % | 130,274 | 273 | 0.85 | % | 214,290 | 339 | 0.64 | % | ||||||||||||||
| Other borrowings | 116,513 | 83 | 0.29 | % | 108,091 | 74 | 0.28 | % | 111,987 | 78 | 0.28 | % | ||||||||||||||
| Junior subordinated debentures | 140,212 | 1,164 | 3.33 | % | 140,212 | 1,104 | 3.19 | % | 140,212 | 985 | 2.83 | % | ||||||||||||||
| Total borrowings | 360,573 | 1,548 | 1.72 | % | 378,577 | 1,451 | 1.55 | % | 466,489 | 1,402 | 1.21 | % | ||||||||||||||
| Total funding liabilities | 8,734,680 | 4,730 | 0.22 | % | 8,593,381 | 4,242 | 0.20 | % | 8,437,225 | 4,173 | 0.20 | % | ||||||||||||||
| Other non-interest-bearing liabilities(2) | 56,175 | 58,489 | 62,858 | |||||||||||||||||||||||
| Total liabilities | 8,790,855 | 8,651,870 | 8,500,083 | |||||||||||||||||||||||
| Shareholders' equity | 1,342,520 | 1,322,248 | 1,333,838 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,133,375 | $ | 9,974,118 | $ | 9,833,921 | ||||||||||||||||||||
| Net interest income/rate spread | $ | 99,706 | 4.31 | % | $ | 94,854 | 4.24 | % | $ | 93,148 | 4.18 | % | ||||||||||||||
| Net interest margin | 4.33 | % | 4.25 | % | 4.20 | % | ||||||||||||||||||||
| Additional Key Financial Ratios: | ||||||||||||||||||||||||||
| Return on average assets | 1.01 | % | 0.97 | % | 0.86 | % | ||||||||||||||||||||
| Return on average equity | 7.60 | % | 7.30 | % | 6.32 | % | ||||||||||||||||||||
| Average equity/average assets | 13.25 | % | 13.26 | % | 13.56 | % | ||||||||||||||||||||
| Average interest-earning assets/average interest-bearing liabilities | 165.66 | % | 166.23 | % | 165.15 | % | ||||||||||||||||||||
| Average interest-earning assets/average funding liabilities | 105.75 | % | 105.32 | % | 105.84 | % | ||||||||||||||||||||
| Non-interest income/average assets | 0.89 | % | 0.85 | % | 0.84 | % | ||||||||||||||||||||
| Non-interest expense/average assets | 3.24 | % | 3.17 | % | 3.27 | % | ||||||||||||||||||||
| Efficiency ratio(4) | 67.06 | % | 67.48 | % | 70.27 | % | ||||||||||||||||||||
| Adjusted efficiency ratio(5) | 65.42 | % | 65.84 | % | 65.33 | % | ||||||||||||||||||||
| (1 | ) | Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
| (2 | ) | Average other non-interest-bearing liabilities include fair value adjustments related to FHLB advances and junior subordinated debentures. |
| (3 | ) | Yields and costs have not been adjusted for the effect of tax-exempt interest. |
| (4 | ) | Non-interest expense divided by the total of net interest income (before provision for loan losses) and non-interest income. |
| (5 | ) | Adjusted non-interest expense divided by adjusted revenue. Adjusted revenue excludes net gain (loss) on sale of securities and fair value adjustments. Adjusted non-interest expense excludes acquisition related costs, amortization of core deposit intangibles (CDI), real estate operations expense, and state/municipal business and use taxes. These represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of the press release tables. |
| ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| (rates / ratios annualized) | |||||||||||||||||
| ANALYSIS OF NET INTEREST SPREAD | Six months ended | ||||||||||||||||
| June 30, 2017 | June 30, 2016 | ||||||||||||||||
| Average Balance | Interest and Dividends | Yield/Cost(3) | Average Balance | Interest and Dividends | Yield/Cost(3) | ||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Mortgage loans | $ | 6,045,712 | $ | 147,008 | 4.90 | % | $ | 5,711,811 | $ | 137,658 | 4.85 | % | |||||
| Commercial/agricultural loans | 1,484,148 | 34,725 | 4.72 | % | 1,488,304 | 33,841 | 4.57 | % | |||||||||
| Consumer and other loans | 138,380 | 4,350 | 6.34 | % | 140,858 | 4,394 | 6.27 | % | |||||||||
| Total loans(1) | 7,668,240 | 186,083 | 4.89 | % | 7,340,973 | 175,893 | 4.82 | % | |||||||||
| Mortgage-backed securities | 955,285 | 10,886 | 2.30 | % | 1,004,427 | 10,664 | 2.14 | % | |||||||||
| Other securities | 462,894 | 6,229 | 2.71 | % | 439,012 | 5,702 | 2.61 | % | |||||||||
| Interest-bearing deposits with banks | 43,183 | 232 | 1.08 | % | 99,721 | 202 | 0.41 | % | |||||||||
| FHLB stock | 15,008 | 102 | 1.37 | % | 18,221 | 161 | 1.78 | % | |||||||||
| Total investment securities | 1,476,370 | 17,449 | 2.38 | % | 1,561,381 | 16,729 | 2.15 | % | |||||||||
| Total interest-earning assets | 9,144,610 | 203,532 | 4.49 | % | 8,902,354 | 192,622 | 4.35 | % | |||||||||
| Non-interest-earning assets | 909,576 | 898,887 | |||||||||||||||
| Total assets | $ | 10,054,186 | $ | 9,801,241 | |||||||||||||
| Deposits: | |||||||||||||||||
| Interest-bearing checking accounts | $ | 912,154 | 410 | 0.09 | % | $ | 861,849 | 382 | 0.09 | % | |||||||
| Savings accounts | 1,555,363 | 1,050 | 0.14 | % | 1,318,236 | 853 | 0.13 | % | |||||||||
| Money market accounts | 1,528,545 | 1,340 | 0.18 | % | 1,598,922 | 1,673 | 0.21 | % | |||||||||
| Certificates of deposit | 1,145,182 | 3,173 | 0.56 | % | 1,286,769 | 2,809 | 0.44 | % | |||||||||
| Total interest-bearing deposits | 5,141,244 | 5,973 | 0.23 | % | 5,065,776 | 5,717 | 0.23 | % | |||||||||
| Non-interest-bearing deposits | 3,153,652 | — | — | % | 2,909,131 | — | — | % | |||||||||
| Total deposits | 8,294,896 | 5,973 | 0.15 | % | 7,974,907 | 5,717 | 0.14 | % | |||||||||
| Other interest-bearing liabilities: | |||||||||||||||||
| FHLB advances | 116,988 | 574 | 0.99 | % | 191,747 | 618 | 0.65 | % | |||||||||
| Other borrowings | 112,325 | 157 | 0.28 | % | 107,426 | 153 | 0.29 | % | |||||||||
| Junior subordinated debentures | 140,212 | 2,268 | 3.26 | % | 140,212 | 1,944 | 2.79 | % | |||||||||
| Total borrowings | 369,525 | 2,999 | 1.64 | % | 439,385 | 2,715 | 1.24 | % | |||||||||
| Total funding liabilities | 8,664,421 | 8,972 | 0.21 | % | 8,414,292 | 8,432 | 0.20 | % | |||||||||
| Other non-interest-bearing liabilities(2) | 57,325 | 62,936 | |||||||||||||||
| Total liabilities | 8,721,746 | 8,477,228 | |||||||||||||||
| Shareholders' equity | 1,332,440 | 1,324,013 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 10,054,186 | $ | 9,801,241 | |||||||||||||
| Net interest income/rate spread | $ | 194,560 | 4.28 | % | $ | 184,190 | 4.15 | % | |||||||||
| Net interest margin | 4.29 | % | 4.16 | % | |||||||||||||
| Additional Key Financial Ratios: | |||||||||||||||||
| Return on average assets | 0.99 | % | 0.79 | % | |||||||||||||
| Return on average equity | 7.45 | % | 5.88 | % | |||||||||||||
| Average equity/average assets | 13.25 | % | 13.51 | % | |||||||||||||
| Average interest-earning assets/average interest-bearing liabilities | 165.94 | % | 161.71 | % | |||||||||||||
| Average interest-earning assets/average funding liabilities | 105.54 | % | 105.80 | % | |||||||||||||
| Non-interest income/average assets | 0.87 | % | 0.83 | % | |||||||||||||
| Non-interest expense/average assets | 3.21 | % | 3.36 | % | |||||||||||||
| Efficiency ratio(4) | 67.27 | % | 72.96 | % | |||||||||||||
| Adjusted efficiency ratio(5) | 65.63 | % | 66.08 | % | |||||||||||||
| (1 | ) | Average balances include loans accounted for on a nonaccrual basis and loans 90 days or more past due. Amortization of net deferred loan fees/costs is included with interest on loans. |
| (2 | ) | Average other non-interest-bearing liabilities include fair value adjustments related to FHLB advances and junior subordinated debentures. |
| (3 | ) | Yields and costs have not been adjusted for the effect of tax-exempt interest. |
| (4 | ) | Non-interest expense divided by the total of net interest income (before provision for loan losses) and non-interest income. |
| (5 | ) | Adjusted non-interest expense divided by adjusted revenue. Adjusted revenue excludes net gain (loss) on sale of securities and fair value adjustments. Adjusted non-interest expense excludes acquisition related costs, amortization of CDI, real estate operations expense, and state/municipal business and use taxes. These represent non-GAAP financial measures. See also Non-GAAP Financial Measures reconciliation tables on the last two pages of the press release tables. |
| ADDITIONAL FINANCIAL INFORMATION | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| * Non-GAAP Financial Measures | |||||||||||||||||||
| In addition to results presented in accordance with generally accepted accounting principles in the United States of America (GAAP), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Banner's core operations reflected in the current quarter's results and facilitate the comparison of our performance with the performance of our peers. Where applicable, comparable earnings information using GAAP financial measures is also presented. | |||||||||||||||||||
| REVENUE FROM CORE OPERATIONS | Quarters Ended | Six months ended | |||||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | |||||||||||||||
| Net interest income before provision for loan losses | $ | 99,706 | $ | 94,854 | $ | 93,148 | $ | 194,560 | $ | 184,190 | |||||||||
| Total non-interest income | 22,469 | 20,845 | 20,537 | 43,313 | 40,497 | ||||||||||||||
| Total GAAP revenue | 122,175 | 115,699 | 113,685 | 237,873 | 224,687 | ||||||||||||||
| Exclude net loss (gain) on sale of securities | 54 | (13 | ) | 380 | 41 | 359 | |||||||||||||
| Exclude change in valuation of financial instruments carried at fair value | 650 | 688 | 377 | 1,338 | 348 | ||||||||||||||
| Revenue from core operations (non-GAAP) | $ | 122,879 | $ | 116,374 | $ | 114,442 | $ | 239,252 | $ | 225,394 | |||||||||
| NON-INTEREST INCOME FROM CORE OPERATIONS | Quarters Ended | Six months ended | ||||||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | ||||||||||||||||
| Total non-interest income (GAAP) | $ | 22,469 | $ | 20,845 | $ | 20,537 | $ | 43,313 | $ | 40,497 | ||||||||||
| Exclude net loss (gain) on sale of securities | 54 | (13 | ) | 380 | 41 | 359 | ||||||||||||||
| Exclude change in valuation of financial instruments carried at fair value | 650 | 688 | 377 | 1,338 | 348 | |||||||||||||||
| Non-interest income from core operations (non-GAAP) | $ | 23,173 | $ | 21,520 | $ | 21,294 | $ | 44,692 | $ | 41,204 | ||||||||||
| EARNINGS FROM CORE OPERATIONS | Quarters Ended | Six months ended | ||||||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | ||||||||||||||||
| Net income (GAAP) | $ | 25,454 | $ | 23,793 | $ | 20,957 | $ | 49,247 | $ | 38,731 | ||||||||||
| Exclude net loss (gain) on sale of securities | 54 | (13 | ) | 380 | 41 | 359 | ||||||||||||||
| Exclude change in valuation of financial instruments carried at fair value | 650 | 688 | 377 | 1,338 | 348 | |||||||||||||||
| Exclude acquisition-related costs | — | — | 2,412 | — | 9,224 | |||||||||||||||
| Exclude related tax benefit | (253 | ) | (243 | ) | (1,141 | ) | (496 | ) | (3,557 | ) | ||||||||||
| Total earnings from core operations (non-GAAP) | $ | 25,905 | $ | 24,225 | $ | 22,985 | $ | 50,130 | $ | 45,105 | ||||||||||
| Diluted earnings per share (GAAP) | $ | 0.77 | $ | 0.72 | $ | 0.61 | $ | 1.49 | $ | 1.14 | ||||||||||
| Diluted core earnings per share (non-GAAP) | $ | 0.78 | $ | 0.73 | $ | 0.67 | $ | 1.52 | $ | 1.32 | ||||||||||
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| ADJUSTED EFFICIENCY RATIO | Quarters Ended | Six months ended | ||||||||||||||||||
| Jun 30, 2017 | Mar 31, 2017 | Jun 30, 2016 | Jun 30, 2017 | Jun 30, 2016 | ||||||||||||||||
| Non-interest expense (GAAP) | $ | 81,930 | $ | 78,078 | $ | 79,887 | $ | 160,007 | $ | 163,921 | ||||||||||
| Exclude acquisition-related costs | — | — | (2,412 | ) | — | (9,224 | ) | |||||||||||||
| Exclude CDI amortization | (1,624 | ) | (1,624 | ) | (1,808 | ) | (3,248 | ) | (3,615 | ) | ||||||||||
| Exclude state/municipal tax expense | (279 | ) | (799 | ) | (770 | ) | (1,078 | ) | (1,608 | ) | ||||||||||
| Exclude REO gain (loss) | 363 | 966 | (137 | ) | 1,329 | (534 | ) | |||||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 80,390 | $ | 76,621 | $ | 74,760 | $ | 157,010 | $ | 148,940 | ||||||||||
| Net interest income before provision for loan losses (GAAP) | $ | 99,706 | $ | 94,854 | $ | 93,148 | $ | 194,560 | $ | 184,190 | ||||||||||
| Non-interest income (GAAP) | 22,469 | 20,845 | 20,537 | 43,313 | 40,497 | |||||||||||||||
| Total revenue | 122,175 | 115,699 | 113,685 | 237,873 | 224,687 | |||||||||||||||
| Exclude net (gain) loss on sale of securities | 54 | (13 | ) | 380 | 41 | 359 | ||||||||||||||
| Exclude net change in valuation of financial instruments carried at fair value | 650 | 688 | 377 | 1,338 | 348 | |||||||||||||||
| Adjusted revenue (non-GAAP) | $ | 122,879 | $ | 116,374 | $ | 114,442 | $ | 239,252 | $ | 225,394 | ||||||||||
| Efficiency ratio (GAAP) | 67.06 | % | 67.48 | % | 70.27 | % | 67.27 | % | 72.96 | % | ||||||||||
| Adjusted efficiency ratio (non-GAAP) | 65.42 | % | 65.84 | % | 65.33 | % | 65.63 | % | 66.08 | % | ||||||||||
| TANGIBLE COMMON SHAREHOLDERS' EQUITY TO TANGIBLE ASSETS | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Jun 30, 2016 | ||||||||||||
| Shareholders' equity (GAAP) | $ | 1,309,851 | $ | 1,323,404 | $ | 1,305,710 | $ | 1,338,517 | ||||||||
| Exclude goodwill and other intangible assets, net | 271,396 | 273,071 | 274,745 | 278,307 | ||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 1,038,455 | $ | 1,050,333 | $ | 1,030,965 | $ | 1,060,210 | ||||||||
| Total assets (GAAP) | $ | 10,199,820 | $ | 10,068,378 | $ | 9,793,668 | $ | 9,916,205 | ||||||||
| Exclude goodwill and other intangible assets, net | 271,396 | 273,071 | 274,745 | 278,307 | ||||||||||||
| Total tangible assets (non-GAAP) | $ | 9,928,424 | $ | 9,795,307 | $ | 9,518,923 | $ | 9,637,898 | ||||||||
| Common shareholders' equity to total assets (GAAP) | 12.84 | % | 13.14 | % | 13.33 | % | 13.50 | % | ||||||||
| Tangible common shareholders' equity to tangible assets (non-GAAP) | 10.46 | % | 10.72 | % | 10.83 | % | 11.00 | % | ||||||||
| TANGIBLE COMMON SHAREHOLDERS' EQUITY PER SHARE | ||||||||||||||||
| Tangible common shareholders' equity | $ | 1,038,455 | $ | 1,050,333 | $ | 1,030,965 | $ | 1,060,210 | ||||||||
| Common shares outstanding at end of period | 33,278,031 | 33,152,864 | 33,193,387 | 34,350,560 | ||||||||||||
| Common shareholders' equity (book value) per share (GAAP) | $ | 39.36 | $ | 39.92 | $ | 39.34 | $ | 38.97 | ||||||||
| Tangible common shareholders' equity (tangible book value) per share (non-GAAP) | $ | 31.21 | $ | 31.68 | $ | 31.06 | $ | 30.86 | ||||||||