| SECURITIES AND EXCHANGE COMMISSION | ||
| WASHINGTON, D.C. 20549 | ||
| FORM 8-K | ||
| CURRENT REPORT | ||
| PURSUANT TO SECTION 13 OR 15 (d) OF THE | ||
| SECURITIES EXCHANGE ACT OF 1934 | ||
| Date of Report (Date of earliest event reported): January 26, 2005 | ||
| Banner Corporation | ||
| (Exact name of registrant as specified in its charter) | ||
| Washington | 0-26584 | 91-1691604 |
| State or other jurisdiction | Commission | (I.R.S. Employer |
| of incorporation | File Number | Identification No.) |
| 10 S. First Avenue, Walla Walla, Washington | 99362 | |
| (Address of principal executive offices) | (Zip Code) | |
| Registrant's telephone number (including area code) (509) 527-3636 | ||
| Not Applicable | ||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On January 26, 2005, Banner Corporation issued its earnings release for the quarter ended December 31, 2004. A copy of the earnings release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.Item 9.01 Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release of Banner Corporation dated January 26, 2005.
<PAGE>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| BANNER CORPORATION | |
| Date: January 26, 2005 | By: /s/ D. Michael Jones |
| D. Michael Jones | |
| President and Chief Executive Officer |
<PAGE>
<PAGE>
| The Cereghino Group CORPORATE INVESTOR RELATIONS 5333 - 15th AVE So., Suite 1500 SEATTLE, WA 98108 206.762.0993 www.stockvalues.com |
 |
Contact: D. Michael Jones, President and CEO Lloyd W. Baker, CFO (509) 527-3636 News Release |
BANNER CORPORATION'S NET INCOME INCREASES 20% FOR FOURTH QUARTER AND YEAR;
NET INTEREST INCOME CLIMBS 24% AS LOANS INCREASE 21% FOR THE YEAR
Walla Walla, WA - January 26, 2005 - Banner Corporation (Nasdaq: BANR), the parent company of Banner Bank, today reported that continued growth in loans and net interest income contributed to a 20% increase in profits for the fourth quarter and full year ended December 31, 2004, compared to the quarter and year ended December 31, 2003. For all of 2004, net income increased 20% to $19.3 million, or $1.65 per diluted share, compared to $16.1 million, or $1.44 per diluted share, a year ago. For the fourth quarter of 2004, net income increased to $5.3 million, or $0.45 per diluted share, compared to $4.4 million, or $0.39 per diluted share, for the fourth quarter of 2003.
"Our primary goals for 2004 were to improve our performance results and credit quality while being aggressive in growing our franchise," said D. Michael Jones, President and Chief Executive Officer. "To those ends, we have produced increased earnings quarter over quarter and significantly decreased our non-performing assets to more acceptable levels. With respect to franchise growth, earlier this year we opened new offices in Hillsboro, Oregon, Walla Walla, Washington, and Boise and Twin Falls, Idaho. During the fourth quarter we began the process of opening branches in Kent, Edmonds and Everett, Washington. We expect them to be fully operational in the first quarter. In the next 30 days, we expect to open branches in Lynnwood and Mercer Island, Washington, and relocate our Lynden, Washington branch. During the first quarter of 2005, we will also relocate our Spokane Valley branch. In addition, we have broken ground on a Vancouver, Washington branch and are working on plans for three new branches in Southern Idaho."
Fourth Quarter 2004 Highlights (Compared to Fourth Quarter 2003)
| · · · · · · · |
Net income increased 20% to $5.3 million. Non-performing assets to total assets declined by 50%. Assets increased 10% to $2.90 billion. Loans increased 21% to $2.06 billion. Deposits grew 15% to $1.93 billion. Net interest income, after the provision for loan loss, increased 19% to $23.8 million. Revenues increased 16% to $29.4 million. |
Income Statement Review
Net interest margin increased 18 basis points to 3.71% for the year ended December 31, 2004, compared to 3.53% for the prior year. In the fourth quarter of 2004, the net interest margin was 3.72%, compared to 3.57% in the fourth quarter a year ago. "We have seen steady improvements in our net interest margin on a year over year basis as strong loan growth and increasing asset yields more than offset recent pressures on funding costs," said Jones. "Although net interest margin for the fourth quarter improved 15 basis points from the fourth quarter last year, it was lower than third quarter net interest margin primarily due to the collection of more than $600,000 of delinquent interest on non-accrual loans that occurred in the third quarter." Banner's third quarter net interest margin was 3.79%. Funding costs were up ten basis points compared to the previous quarter and up four basis points from the fourth quarter a year earlier. By contrast, asset yields were higher by two and 17 basis points, respectively, compared to the quarters ended September 30, 2004 and December 31, 2003.
Revenues (net interest income before the provision for loan losses plus other operating income) for 2004 increased 13% to $113.3 million, compared to $100.2 million for 2003. For the fourth quarter, revenues increased 16% to $29.4 million, compared to $25.3 million for the same quarter of 2003.
For the year, net interest income before the provision for loan losses increased 20% to $96.3 million, compared to $80.6 million in 2003. For the fourth quarter, net interest income before the provision for loan losses increased 17% to $25.1 million, compared to $21.5 million in the same quarter a year ago, reflecting asset growth and improved credit quality. Banner's net interest income, after the provision for loan losses, increased 24% and 19% for the year and the fourth quarter 2004 compared to the respective periods a year ago.
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BANR - Fourth Quarter Results
January 26, 2005
Page 2
Total other operating income for the fourth quarter increased 11% to $4.3 million, compared to $3.8 million for the same quarter last year. For all of 2004, other operating income was $17.0 million compared to $19.6 million in fiscal 2003. Income from deposit fees and other service charges increased to $2.1 million in the fourth quarter and $8.1 million for the year, compared to $1.8 million and $7.2 million for the respective periods in 2003. For all of 2004, income from mortgage banking operations, including loan servicing fees, decreased to $7.3 million compared to $10.5 million in 2003, as generally higher interest rates had an adverse effect on loan origination and refinancing activity. However, mortgage banking operations and loan servicing fees increased 17% to $1.9 million in the fourth quarter compared to $1.6 million for the fourth quarter a year ago.
Reflecting the increased size of the Bank and its new offices, other operating expense was $20.4 million for the quarter ended December 31, 2004, compared to $17.7 million for the fourth quarter a year ago and $20.9 million for the third quarter of 2004. For the full year, other operating expense totaled $79.7 million, compared to $69.9 million in 2003. The ratio of other operating expense (expense ratio) to average assets was 2.85% for the fourth quarter, compared to 2.98% for the third quarter of 2004 and 2.75% for the fourth quarter of 2003. For the year, the expense ratio was 2.90%, compared to 2.86% for 2003.
"In 2004, we focused on building our franchise by adding seven branches, three lending centers and one operations center and advancing plans for further expansion in 2005. Hiring personnel to staff this expansion and increased occupancy costs have contributed to a higher level of non-interest expenses," said Jones. "One of the primary purposes of the rapid branch expansion is to proportionally reduce our reliance on borrowed funds and large certificates of deposit by emphasizing core deposit growth and thereby reducing the relative level of our cost of funds. This expansion will temporarily impact our short-term profitability but if successful will improve our net interest margin, a needed action to improve our performance metrics."
Balance Sheet Review
Net loans increased 21%, to $2.06 billion at December 31, 2004, from $1.70 billion a year ago. "Our lending personnel have generated steady growth in commercial and multifamily real estate loans, construction and land loans, and commercial and agricultural business loans, which now account for 81% of the loan portfolio," said Jones. "We are pleased with the growth in balances and the new loan relationships that have been added in 2004."
Assets reached a record $2.90 billion, a 10% increase from $2.64 billion a year earlier. "Banner Bank's deposit growth has also been solid this year, in part reflecting some of our new locations, but also resulting from continued success at many of our existing branches," added Jones. Deposits grew 15%, to $1.93 billion, compared to $1.67 billion at December 31, 2003. Core deposits grew 26% in 2004, while certificates of deposit increased only 8% as the Bank continues to change its funding mix. Book value per share increased to $18.74 at December 31, 2004, from $18.37 a year earlier. Tangible book value per share increased to $15.58 at year-end, compared to $15.06 a year earlier.
Credit Quality
"Our key credit quality ratios have improved significantly as a result of a 50% reduction in non-performing assets to total assets during 2004," said Jones. "Net charge-offs to average loans outstanding, at 11 basis points for 2004, also shows dramatic improvement from 47 basis points a year ago." Non-performing assets were $17.4 million, or 0.60% of total assets, at December 31, 2004, a 45% improvement from $31.6 million, or 1.20% of total assets, a year ago. The loan loss provision for the fourth quarter of 2004 was $1.3 million, compared to $1.4 million in the like quarter of 2003. At December 31, 2004, the allowance for loan losses totaled $29.6 million, representing 1.41% of total loans outstanding.
Conference Call
The Company will host a conference call today, Wednesday, January 26, 2005, at 8:00 a.m. PST, to discuss fourth quarter and year-end results. The conference call can be accessed live by telephone at 303-262-2211. To listen to the call online, go to the Company's website at www.bannerbank.com or to www.fulldisclosure.com. Institutional investors may access the call via the subscriber-only site, www.streetevents.com. An archived recording of the call can be accessed by dialing 303-590-3000, passcode 11020058# until Wednesday, February 2, 2005 or via the Internet at www.fulldisclosure.com.
About the Company
Banner Corporation is the parent company of Banner Bank, a commercial bank, which operates a total of 49 branch offices and 12 loan offices in 23 counties in Washington, Oregon and Idaho. Banner Bank serves the Pacific Northwest region with 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.
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BANR - Fourth Quarter Results
January 26, 2005
Page 3
Statements concerning future performance, developments or events, expectations for earnings, growth and market forecasts, and any other guidance on future periods, constitute forward-looking statements, which are subject to a number of risks and uncertainties that are beyond Banner's control and might cause actual results to differ materially from the expectations and stated objectives. Factors which could cause actual results to differ materially include, but are not limited to, regional and general economic conditions, management's ability to generate continued improvement in asset quality and profitability, changes in interest rates, deposit flows, demand for mortgages and other loans, real estate values, competition, loan delinquency rates, the successful operation of the newly-opened branches and loan offices, changes in accounting principles, practices, policies or guidelines, changes in legislation or regulation, other economic, competitive, governmental, regulatory and technological factors affecting operations, pricing, products and services and Banner's ability to successfully resolve the outstanding credit issues and/or recover check kiting losses. Accordingly, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. Banner undertakes no responsibility to update or revise any forward-looking statements.
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<PAGE>
BANR - Fourth Quarter Results
January 26, 2005
Page 4
| RESULTS OF OPERATIONS |
Quarters Ended |
12 Months Ended |
||||||||||||
| ( In thousands except share and per share data ) | Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
Dec 31, 2004 |
Dec 31, 2003 |
|||||||||
| INTEREST INCOME: | ||||||||||||||
| Loans receivable | $ | 34,624 | $ | 33,051 | $ | 28,711 | $ | 126,992 | $ | 116,211 | ||||
| Mortgage-backed securities | 3,806 | 4,155 | 3,857 | 16,882 | 12,319 | |||||||||
| Securities and cash equivalents | 2,941 |
3,194 |
3,221 |
12,356 |
11,911 |
|||||||||
| 41,371 | 40,400 | 35,789 | 156,230 | 140,441 | ||||||||||
| INTEREST EXPENSE: | ||||||||||||||
| Deposits | 9,725 | 9,074 | 8,373 | 35,067 | 34,984 | |||||||||
| Federal Home Loan Bank advances | 5,191 | 5,058 | 5,056 | 20,336 | 21,842 | |||||||||
| Junior subordinated debentures | 1,015 | 911 | 674 | 3,461 | 2,233 | |||||||||
| Other borrowings | 334 |
257 |
226 |
1,051 |
789 |
|||||||||
| 16,265 |
15,300 |
14,329 |
59,915 |
59,848 |
||||||||||
| Net interest income before provision for loan losses | 25,106 | 25,100 | 21,460 | 96,315 | 80,593 | |||||||||
| PROVISION FOR LOAN LOSSES | 1,300 |
1,444 |
1,400 |
5,644 |
7,300 |
|||||||||
| Net interest income | 23,806 | 23,656 | 20,060 | 90,671 | 73,293 | |||||||||
| OTHER OPERATING INCOME: | ||||||||||||||
| Deposit fees and other service charges | 2,084 | 2,148 | 1,832 | 8,132 | 7,224 | |||||||||
| Mortgage banking operations | 1,435 | 1,383 | 1,217 | 5,522 | 9,447 | |||||||||
| Loan servicing fees | 417 | 711 | 368 | 1,741 | 1,056 | |||||||||
| Gain on sale of securities | 1 | 67 | 45 | 141 | 63 | |||||||||
| Miscellaneous | 340 |
441 |
379 |
1,432 |
1,791 |
|||||||||
| Total other operating income | 4,277 | 4,750 | 3,841 | 16,968 | 19,581 | |||||||||
| OTHER OPERATING EXPENSE: | ||||||||||||||
| Salary and employee benefits | 13,485 | 13,719 | 11,737 | 52,331 | 47,032 | |||||||||
| Less capitalized loan origination costs | (1,824) | (1,806) | (1,618) | (7,008) | (7,196) | |||||||||
| Occupancy and equipment | 3,177 | 2,791 | 2,407 | 11,100 | 9,575 | |||||||||
| Information / computer data services | 1,063 | 1,107 | 896 | 4,212 | 3,532 | |||||||||
| Professional services | 807 | 746 | 784 | 3,258 | 2,684 | |||||||||
| Advertising | 1,348 | 1,108 | 788 | 4,905 | 3,373 | |||||||||
| Miscellaneous | 2,372 |
3,257 |
2,682 |
10,916 |
10,876 |
|||||||||
| Total other operating expense | 20,428 |
20,922 |
17,676 |
79,714 |
69,876 |
|||||||||
| Income before provision for income taxes | 7,655 | 7,484 | 6,225 | 27,925 | 22,998 | |||||||||
| PROVISION FOR INCOME TAXES | 2,388 |
2,322 |
1,821 |
8,585 |
6,891 |
|||||||||
| NET INCOME | $ | 5,267 | $ | 5,162 | $ | 4,404 | $ | 19,340 | $ | 16,107 | ||||
| Earnings per share | ||||||||||||||
| Basic | $ | 0.47 | $ | 0.46 | $ | 0.40 | $ | 1.74 | $ | 1.49 | ||||
| Diluted | $ | 0.45 | $ | 0.44 | $ | 0.39 | $ | 1.65 | $ | 1.44 | ||||
| Cumulative dividends declared per common share | $ | 0.17 | $ | 0.16 | $ | 0.15 | $ | 0.61 | $ | 0.61 | ||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 11,207,582 | 11,168,735 | 10,885,611 | 11,142,254 | 10,830,365 | |||||||||
| Diluted | 11,828,644 | 11,736,415 | 11,423,742 | 11,734,507 | 11,216,784 | |||||||||
| Shares repurchased during the period | 114,477 | 104 | 14,931 | 134,263 | 23,657 | |||||||||
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<PAGE>
BANR - Fourth Quarter Results
January 26, 2005
Page 5
| FINANCIAL CONDITION |
|||||||||
| ( In thousands except share and per share data ) | Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 51,767 | $ | 65,800 | $ | 77,298 | |||
| Securities available for sale | 547,835 | 583,196 | 674,942 | ||||||
| Securities held to maturity | 49,914 | 49,554 | 27,232 | ||||||
| Federal Home Loan Bank stock | 35,698 | 35,698 | 34,693 | ||||||
| Loans receivable: | |||||||||
| Held for sale | 2,145 | 8,303 | 15,912 | ||||||
| Held for portfolio | 2,090,703 | 1,976,100 | 1,711,013 | ||||||
| Allowance for loan losses | (29,610) |
(29,407) |
(26,060) |
||||||
| 2,063,238 | 1,954,996 | 1,700,865 | |||||||
| Accrued interest receivable | 15,097 | 14,930 | 13,410 | ||||||
| Real estate owned held for sale, net | 1,485 | 2,923 | 2,967 | ||||||
| Property and equipment, net | 39,315 | 35,351 | 22,818 | ||||||
| Goodwill and other intangibles, net | 36,369 | 36,405 | 36,513 | ||||||
| Deferred income tax asset, net | 5,888 | 5,266 | 1,941 | ||||||
| Bank-owned life insurance | 35,371 | 34,957 | 33,669 | ||||||
| Other assets | 15,090 |
11,086 |
8,965 |
||||||
| $ | 2,897,067 | $ | 2,830,162 | $ | 2,635,313 | ||||
| LIABILITIES | |||||||||
| Deposits: | |||||||||
| Non-interest-bearing | $ | 234,761 | $ | 229,624 | $ | 205,656 | |||
| Interest-bearing | 1,691,148 | 1,681,548 | 1,465,284 | ||||||
| 1,925,909 | 1,911,172 | 1,670,940 | |||||||
| Borrowings: | |||||||||
| Advances from Federal Home Loan Bank | 583,558 | 530,958 | 612,552 | ||||||
| Junior subordinated debentures | 72,168 | 72,168 | 56,703 | ||||||
| Other borrowings | 68,116 |
79,080 |
69,444 |
||||||
| 723,842 | 682,206 | 738,699 | |||||||
| Accrued expenses and other liabilities | 25,027 | 21,288 | 18,444 | ||||||
| Deferred compensation | 5,208 | 4,931 | 4,252 | ||||||
| Income taxes payable | 1,861 |
50 |
178 |
||||||
| 2,681,847 | 2,619,647 | 2,432,513 | |||||||
| STOCKHOLDERS' EQUITY | |||||||||
| Common stock | 127,460 | 125,672 | 123,375 | ||||||
| Retained earnings | 92,327 | 88,796 | 80,286 | ||||||
| Accumulated other comprehensive income (loss) | (888) | 183 | 3,191 | ||||||
| Unearned shares of common stock issued to Employee Stock | |||||||||
| Ownership Plan ( ESOP ) trust: at cost | (3,096) | (3,628) | (3,589) | ||||||
| Net carrying value of stock related deferred compensation plans | (583) |
(508) |
(463) |
||||||
| 215,220 |
210,515 |
202,800 |
|||||||
| $ | 2,897,067 | $ | 2,830,162 | $ | 2,635,313 | ||||
| Shares Issued: | |||||||||
| Shares outstanding at end of period | 11,856,889 | 11,652,816 | 11,473,331 | ||||||
| Less unearned ESOP shares at end of period | 374,595 |
438,985 |
434,299 |
||||||
| Shares outstanding at end of period excluding unearned ESOP shares | 11,482,294 | 11,213,831 | 11,039,032 | ||||||
| Book value per share (1) | $ | 18.74 | $ | 18.77 | $ | 18.37 | |||
| Tangible book value per share (1) | $ | 15.58 | $ | 15.53 | $ | 15.06 | |||
| Consolidated Tier 1 leverage capital ratio | 8.93% | 8.85% | 8.73% | ||||||
| (1) | - Calculation is based on number of shares outstanding at the end of the period rather than weighted average shares outstanding and excludes unallocated shares in the employee stock ownership plan ( ESOP ). |
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BANR - Fourth Quarter Results
January 26, 2005
Page 6
| ADDITIONAL FINANCIAL INFORMATION | ||||||||||||||
| ( Dollars in thousands ) | ||||||||||||||
| LOANS ( including loans held for sale ): |
Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
|||||||||||
| Commercial real estate | $ | 547,574 | $ | 531,714 | $ | 455,964 | ||||||||
| Multifamily real estate | 107,745 | 104,713 | 89,072 | |||||||||||
| Construction and land | 506,137 | 451,393 | 398,954 | |||||||||||
| Commercial business | 395,281 | 364,235 | 321,671 | |||||||||||
| Agricultural business including secured by farmland | 148,343 | 156,110 | 118,903 | |||||||||||
| One- to four-family real estate | 307,986 | 298,759 | 275,197 | |||||||||||
| Consumer | 79,782 |
77,479 |
67,164 |
|||||||||||
| Total loans outstanding | $ | 2,092,848 | $ | 1,984,403 | $ | 1,726,925 | ||||||||
| NON-PERFORMING ASSETS: |
Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
|||||||||||
| Loans on non-accrual status | $ | 15,416 | $ | 20,091 | $ | 28,010 | ||||||||
| Loans more than 90 days delinquent, still on accrual | 472 |
579 |
421 |
|||||||||||
| Total non-performing loans | 15,888 | 20,670 | 28,431 | |||||||||||
| Real estate owned ( REO ) / Repossessed assets | 1,559 |
3,051 |
3,132 |
|||||||||||
| Total non-performing assets | $ | 17,447 | $ | 23,721 | $ | 31,563 | ||||||||
| Total non-performing assets / Total assets | 0.60% | 0.84% | 1.20% | |||||||||||
| Quarters Ended |
12 Months Ended |
|||||||||||||
| CHANGE IN THE ALLOWANCE FOR LOAN LOSSES: |
Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
Dec 31, 2004 |
Dec 31, 2003 |
|||||||||
| Balance, beginning of period | $ | 29,407 | $ | 28,037 | $ | 26,161 | $ | 26,060 | $ | 26,539 | ||||
| Provision | 1,300 | 1,444 | 1,400 | 5,644 | 7,300 | |||||||||
| Recoveries of loans previously charged off | 176 | 975 | 155 | 1,587 | 1,075 | |||||||||
| Loans charged-off | (1,273) |
(1,049) |
(1,656) |
(3,681) |
(8,854) |
|||||||||
| Net ( charge-offs ) recoveries | (1,097) |
(74) |
(1,501) |
(2,094) |
(7,779) |
|||||||||
| Balance, end of period | $ | 29,610 | $ | 29,407 | $ | 26,060 | $ | 29,610 | $ | 26,060 | ||||
| Net charge-offs / Average loans outstanding | 0.05% | 0.00% | 0.09% | 0.11% | 0.47% | |||||||||
| Allowance for loan losses / Total loans outstanding | 1.41% | 1.48% | 1.51% | 1.41% | 1.51% | |||||||||
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<PAGE>
BANR - Fourth Quarter Results
January 26, 2005
Page 7
| ADDITIONAL FINANCIAL INFORMATION ( Dollars in thousands ) ( Rates / Ratios Annualized ) |
|||||||||||||
| Quarters Ended |
12 Months Ended |
||||||||||||
| OPERATING PERFORMANCE: |
Dec 31, 2004 |
Sep 30, 2004 |
Dec 31, 2003 |
Dec 31, 2004 |
Dec 31, 2003 |
||||||||
| Average loans | $ | 2,031,006 | $ | 1,952,163 | $ | 1,701,335 | $ | 1,898,664 | $ | 1,654,344 | |||
| Average securities and deposits | 656,762 | 683,520 | 685,836 | 694,365 | 625,804 | ||||||||
| Average non-interest-earning assets | 166,997 |
155,668 |
167,042 |
158,891 |
163,481 |
||||||||
| Total average assets | $ | 2,854,765 | $ | 2,791,351 | $ | 2,554,213 | $ | 2,751,920 | $ | 2,443,629 | |||
| Average deposits | $ | 1,928,851 | $ | 1,858,240 | $ | 1,678,097 | $ | 1,809,072 | $ | 1,619,297 | |||
| Average borrowings | 684,303 | 700,034 | 654,057 | 710,443 | 609,356 | ||||||||
| Average non-interest-earning liabilities | 26,458 |
24,321 |
22,407 |
22,695 |
18,735 |
||||||||
| Total average liabilities | 2,639,612 | 2,582,595 | 2,354,561 | 2,542,210 | 2,247,388 | ||||||||
| Total average stockholders' equity | 215,153 |
208,756 |
199,652 |
209,710 |
196,241 |
||||||||
| Total average liabilities and equity | $ | 2,854,765 | $ | 2,791,351 | $ | 2,554,213 | $ | 2,751,920 | $ | 2,443,629 | |||
| Interest rate yield on loans | 6.78% | 6.74% | 6.70% | 6.69% | 7.02% | ||||||||
| Interest rate yield on securities and deposits | 4.09% |
4.28% |
4.09% |
4.21% |
3.87% |
||||||||
| Interest rate yield on interest-earning assets | 6.12% |
6.10% |
5.95% |
6.03% |
6.16% |
||||||||
| Interest rate expense on deposits | 2.01% | 1.94% | 1.98% | 1.94% | 2.16% | ||||||||
| Interest rate expense on borrowings | 3.80% |
3.54% |
3.61% |
3.50% |
4.08% |
||||||||
| Interest rate expense on interest-bearing liabilities | 2.48% |
2.38% |
2.44% |
2.38% |
2.69% |
||||||||
| Interest rate spread | 3.64% | 3.72% | 3.51% | 3.65% | 3.47% | ||||||||
| Net interest margin | 3.72% | 3.79% | 3.57% | 3.71% | 3.53% | ||||||||
| Other operating income / Average assets | 0.60% | 0.68% | 0.60% | 0.62% | 0.80% | ||||||||
| Other operating expense / Average assets | 2.85% | 2.98% | 2.75% | 2.90% | 2.86% | ||||||||
| Efficiency ratio ( other operating expense / revenue ) | 69.52% | 70.09% | 69.86% | 70.37% | 69.75% | ||||||||
| Return on average assets | 0.73% | 0.74% | 0.68% | 0.70% | 0.66% | ||||||||
| Return on average equity | 9.74% | 9.84% | 8.75% | 9.22% | 8.21% | ||||||||
| Average equity / Average assets | 7.54% | 7.48% | 7.82% | 7.62% | 8.03% | ||||||||
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Transmitted on Business Wire on Wednesday, January 26, 2005, at 5:00 a.m. PST.