During the third quarter, Banner repurchased approximately 40% of its senior preferred stock in private transactions at an average price of $959 per share. As a result, Banner realized gains of $2.1 million on the repurchases, which was partially offset by accelerated amortization of a portion of the initial discount recorded at the issuance of the preferred shares. In addition, the accrual of the quarterly dividend was reduced by the retirement of the repurchased shares. Including the preferred stock dividend, related accretion and gains on repurchases, net income available to common shareholders was $0.79 per diluted share for the third quarter of 2012, compared to net income available to common shareholders of $1.27 per diluted share in the second quarter of 2012 and $0.24 per diluted share for the third quarter a year ago.Third Quarter 2012 Highlights (compared to third quarter 2011 except as noted)
- Net income was $15.6 million, compared to $6.0 million in the third quarter a year ago.
- Revenues from core operations* increased 8% to $54.3 million.
- The net interest margin was 4.22%, compared to 4.26% in the preceding quarter and 4.10% in the third quarter of 2011.
- Deposit fees and other service charges increased 10%.
- Revenues from mortgage banking increased 142%.
- Non-performing assets decreased to $59.1 million, or 1.38% of total assets, at September 30, 2012, a 19% decrease compared to three months earlier and a 61% decrease compared to a year earlier.
- Non-performing loans decreased to $38.7 million at September 30, 2012, an 18% decrease compared to three months earlier and a 53% decrease compared to a year earlier.
- The ratio of tangible common equity to tangible assets increased to 11.47% at September 30, 2012.*
- Banner repurchased 40% of its senior preferred stock at an average price of $959 per share.