Banner Corporation (BANR) has reported 84.22 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $23.85 million, or $0.70 a share in the quarter, compared with $12.95 million, or $0.62 a share for the same period last year.
Revenue during the quarter surged 73.82 percent to $115.22 million from $66.29 million in the previous year period. Net interest income for the quarter rose 79.56 percent over the prior year period to $93.71 million. Non-interest income for the quarter rose 66.78 percent over the last year period to $23.51 million.
Net interest margin improved 1 basis points to 4.15 percent in the quarter from 4.14 percent in the last year period. Efficiency ratio for the quarter improved to 67.47 percent from 70.45 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"Our third quarter core operating performance continued to reflect the success of our proven client acquisition, balance sheet management and product pricing strategies, which produced additional core revenue and core deposit growth. We also benefited from the successful integration of last year's AmericanWest Bank acquisition, which had a dramatic impact on the scale and reach of the Company and is providing enhanced opportunity for future client and revenue growth," stated Mark J. Grescovich, president and chief executive officer.
Assets outpace liabilities growth
Total assets stood at $9,841.03 million as on Sep. 30, 2016, up 85.25 percent compared with $5,312.31 million on Sep. 30, 2015. On the other hand, total liabilities stood at $8,509.76 million as on Sep. 30, 2016, up 83.36 percent from $4,641.11 million on Sep. 30, 2015.
Loans outpace deposit growth
Net loans stood at $7,314.42 million as on Sep. 30, 2016, up 70.41 percent compared with $4,292.14 million on Sep. 30, 2015. Deposits stood at $8,111.97 million as on Sep. 30, 2016, up 84.88 percent compared with $4,387.65 million on Sep. 30, 2015.
Noninterest-bearing deposit liabilities were $3,190.29 million or 39.33 percent of total deposits on Sep. 30, 2016, compared with $1,561.52 million or 35.59 percent of total deposits on Sep. 30, 2015.
Investments stood at $1,309.28 million as on Sep. 30, 2016, up 122.70 percent or $721.36 million from year-ago. Shareholders equity stood at $1,331.27 million as on Sep. 30, 2016, up 98.34 percent or $660.07 million from year-ago.
Return on average assets moved down 1 basis points to 0.96 percent in the quarter from 0.97 percent in the last year period. At the same time, return on average equity decreased 65 basis points to 7.02 percent in the quarter from 7.67 percent in the last year period.
Nonperforming assets moved up 7.64 percent or $2.28 million to $32.18 million on Sep. 30, 2016 from $29.89 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.33 percent in the quarter, down from 0.56 percent in the last year period.
Tier-1 leverage ratio stood at 11.68 percent for the quarter, down from 13.85 percent for the previous year quarter. Average equity to average assets ratio was 13.66 percent for the quarter, up from 12.68 percent for the previous year quarter. Book value per share was $39.31 for the quarter, up 22.77 percent or $7.29 compared to $32.02 for the same period last year.
