This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Banner Corporation Reports Net Income Of $15.6 Million, Or $0.79 Per Diluted Share, In Third Quarter; Net Income Highlighted By Strong Revenue Generation And Improved Credit Quality

Stocks in this article: BANR

Total other operating expenses (non-interest expenses) were $33.4 million in the third quarter of 2012, compared to $35.7 million in the preceding quarter and $41.0 million in the third quarter of 2011. In the first nine months of 2012, total other operating expenses were $106.9 million compared to $119.4 million in the first nine months of 2011. The decrease was largely a result of decreased costs related to real estate owned and FDIC deposit insurance.

Credit Quality

“We made very good progress in continuing to reduce problem assets during the third quarter and our credit costs continued to decline and were significantly below those of a year ago. As a result of this progress, all of our key credit quality metrics have further improved and Banner’s reserve levels remain substantial,” said Grescovich.

Banner recorded a $3.0 million provision for loan losses in the third quarter of 2012, compared to a $4.0 million provision in the preceding quarter and a $5.0 million provision in the third quarter a year ago. The allowance for loan losses at September 30, 2012 totaled $78.8 million, representing 2.45% of total loans outstanding and 204% of non-performing loans. Non-performing loans decreased 18% to $38.7 million at September 30, 2012, compared to $47.4 million three months earlier, and decreased 53% when compared to $83.1 million a year earlier.

Banner’s real estate owned and repossessed assets decreased 21% to $20.4 million at September 30, 2012, compared to $25.8 million three months earlier, and decreased 69% when compared to $66.5 million a year ago. Net charge-offs in the third quarter of 2012 totaled $4.4 million, or 0.14% of average loans outstanding, compared to $5.3 million, or 0.16% of average loans outstanding for the second quarter of 2012 and $10.9 million, or 0.33% of average loans outstanding for the third quarter a year ago.

6 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs