Banner Corporation's First Quarter Profits Increase 44% to Record $6.8 Million.WALLA WALLA Walla Walla (wŏl`ə wŏl`ə), city (1990 pop. 26,478), seat of Walla Walla co., SE Wash., at the junction of the Walla Walla River and Mill Creek, near the Oregon line; inc. 1862. , Wash. -- Banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. Corporation (Nasdaq:BANR BANR Board on Agriculture and Natural Resources ), the parent company of Banner Bank Banner Bank is a Washington financial institution based in Walla Walla. Originally known as First Federal Savings And Loan Of Walla Walla, it was the oldest Savings and Loan institution in the state of Washington. , today reported improved net interest margin contributed to record first quarter earnings. In the first quarter of 2006, net income increased 44% to $6.8 million, or $0.56 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $4.7 million, or $0.39 per diluted share, in the first quarter a year ago. "Dramatic improvement in our first quarter net interest margin was a result of our balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). completed at the end of 2005, changes in the mix of our loan portfolio and our growing ability to attract and retain core deposits. As planned, the restructuring transactions eliminated positions that had become a significant drag on Verb 1. drag on - last unnecessarily long drag out last, endure - persist for a specified period of time; "The bad weather lasted for three days" 2. earnings and now allow us to place less reliance on wholesale assets and liabilities," said D. Michael Jones Mike or Michael Jones may refer to: In sports:
In the fourth quarter of 2005, Banner sold $207 million of securities and prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. $142 million of high-cost, fixed-term Federal
Home Loan Bank (FHLB FHLB Federal Home Loan Bank ) borrowings. The remainder of the proceeds were
applied to repay other relatively high-cost short-term Short-termAny investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowings from the FHLB. First Quarter 2006 Highlights (compared to first quarter 2005) --Net income increased 44% to $6.8 million. --Net interest margin improved 53 basis points to 4.24%. --Revenues advanced 18% to $34.4 million. --Net interest income before provision for loan losses grew 19% to $29.9 million. --Loans increased 19% to $2.54 billion. --Non-interest bearing deposits increased 26% to $325.3 million and total deposits increased 21% to $2.42 billion. --Credit quality continues to improve with non-performing assets down 54% and representing 0.28% of total assets. Income Statement Review Banner's net interest margin improved 31 basis points to 4.24% for the first quarter of 2006 from 3.93% in the previous quarter, and gained 53 basis points from 3.71% in the first quarter a year ago. "In addition to the benefits from the restructuring transactions, net interest margin also expanded as a result of our success in attracting higher earning loans and lower cost deposits. Further, the net interest margin has benefited modestly as rising interest rates have had a more immediate impact on floating rate loan yields than on the rates paid on most deposit products. We expect our net interest margin to further expand as we continue to replace high-cost funding with non-interest bearing and other transaction deposits," said Jones. Funding costs increased 22 basis points compared to the previous quarter and 72 basis points from the first quarter a year earlier. Asset yields, however, were also higher, increasing by 53 basis points from the prior linked quarter and 125 basis points from a year ago. Revenues (net interest income before the provision for loan losses plus other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ) grew 18% to $34.4 million in the first quarter compared to $29.2 million in the first quarter of 2005. For the first quarter of 2006, net interest income before the provision for loan losses increased 19% to $29.9 million compared to $25.2 million in the same quarter a year ago. Net interest income included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $400,000 of non-accrued delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. interest collected in the first quarter. "Over the past few years, we have adopted a conservative approach to loan classification and accounting for problem loans. As the economic recovery in the Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. accelerates, we believe there will be additional opportunities to recognize the collection of past-due interest and generate recoveries from previously charged-off loans in future periods," said Jones. Total other operating income for the first quarter increased 13% to $4.5 million compared to $4.0 million in the same quarter last year. Income from deposit fees and other service charges increased 25% to $2.5 million in the first quarter, reflecting the strong growth in deposit accounts and balances. Income from mortgage banking operations increased slightly from the fourth quarter of 2005 and decreased only 6% from the first quarter of 2005, despite the effect of rising interest rates on demand for residential loans, particularly in the refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. sector. Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $23.2 million in the first quarter of 2006, up 9% from $21.3 million in the first quarter a year ago, and down 3% from operating expenses (excluding FHLB prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. fees) in the fourth quarter of 2005. The ratio of other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. (expense ratio) to average assets was 3.09% in the first quarter of 2006, compared to 2.95% for the first quarter last year and 3.05% (excluding FHLB prepayment fees) for the fourth quarter of 2005. "In the first quarter we opened a branch office in Meridian, Idaho Meridian is the second-largest city in Ada County, Idaho, United States and the third-largest in the state. As of the 2000 Census the population of Meridian was 34,919 (2006 estimate: 59,832)[1]. and made progress on the construction of two additional southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). branch offices, which we expect to open later this year. We continue to explore further branch expansion opportunities in our major markets: the Puget Sound Puget Sound (py  `jĕt), arm of the Pacific Ocean, NW Wash., connected with the Pacific by Juan de Fuca Strait, entered through the Admiralty Inlet and extending in two arms c. area, the Portland Portland, town, EnglandPortland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. area and southwestern Idaho. Although expenses were down on a linked quarter basis, we expect to see higher operating expenses in future periods as a result of our expansion. However, over time these new branches should further improve our profitability by providing low-cost deposits and proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. reducing our borrowings from the Federal Home Loan Bank, which were cut by more than half in the last year," said Jones. Banner's return on equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) was 12.07% for the first quarter compared to 8.69% a year ago. The efficiency ratio was 67.42% in the quarter ended March 31, 2006, versus 72.89% a year earlier. Balance Sheet Review Net loans increased $407 million, or 19%, to $2.54 billion at March 31, 2006, compared to $2.13 billion a year earlier. "Loan production for the quarter was strong and the major components of the loan portfolio showed significant growth over the prior year's balances," said Jones. "Compared to a year ago, we increased commercial and multifamily real estate loans 6%, construction and land loans 43%, commercial and agricultural business loans 9% and consumer loans 21%. In addition, our credit quality continues to improve." Total deposits increased $422 million, or 21%, to $2.42 billion at March 31, 2006, compared to $1.99 billion at the end of March 2005. Non-interest bearing deposits increased 26% at quarter-end compared to a year earlier. Total transaction and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: increased 20% during the twelve months ending March 31, 2006, while certificates of deposit increased 22%. "We have seen a shift towards certificates of deposits as interest rates have risen to a level customers find attractive; however, we continue to have significant success in adding transaction and savings accounts as well," noted Jones. "As we continue to expand our delivery system, we are adding customers and account totals, as well as deposit balances, which should contribute to continued earnings growth in future periods." Largely as a result of the restructuring transactions in the fourth quarter of 2005, but also reflecting maturities and principal prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. , the securities portfolio declined by 49% to $299 million at March 31, 2006, from $591 million a year earlier. Similarly, FHLB borrowings declined by 55% to $269 million at March 31, 2006, from $595 million a year earlier and were nearly unchanged from the level at December December: see month. 31, 2005. Assets were $3.12 billion at March 31, 2006, a 5% increase from $2.97 billion a year earlier. Book value per share improved to $19.05 at March 31, 2006, from $18.55 a year earlier, and tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per share was $15.99 at quarter-end, compared to $15.40 a year earlier. Credit Quality Non-performing assets decreased 54% to $8.6 million, or 0.28% of total assets, at March 31, 2006, compared to $18.9 million, or 0.64% of total assets, a year ago, reflecting significant progress in reducing credit risk. Non-performing assets decreased 21% compared to the previous quarter. "We successfully resolved one of our largest problem credit issues during the quarter, which resulted in a substantial decrease in non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. and the collection of more than $550,000 in delinquent interest and attorneys' fees," said Jones. The provision for loan losses for the first quarter was $1.2 million, relatively unchanged from the provision in the first quarter of 2005. Net loan charge-offs in the first quarter of 2006 were $204,000, or 0.01% of average loans outstanding, compared to $1.1 million, or 0.05% of average loans outstanding in the first quarter of 2005. At March 31, 2006, the allowance for loan losses totaled $31.9 million, representing 1.24% of total loans outstanding. Conference Call The Company will host a conference call on Wednesday Wednesday: see week. , April 26, 2006, at 8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT , to discuss first quarter results. The conference call can be accessed live by telephone at 303-262-2139. To listen to the call online, go to the Company's website at www.bannerbank.com or to www.fulldisclosure.com. Institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. 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 11057624# until Wednesday, May 3, 2006 or via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.fulldisclosure.com. About the Company Banner Corporation is the parent company of Banner Bank, a commercial bank that operates a total of 58 branch offices and 12 loan offices in 24 counties in Washington This is a list of counties in Washington. There are thirty-nine counties in the U.S. state of Washington. Certain residents of Snohomish County consider themselves to be part of Freedom County. , Oregon and Idaho. Banner Bank serves the Pacific Northwest region
The 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. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , 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 delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. rates, the successful operation of the newly-opened branches and loan offices, changes in accounting principles, practices, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , changes in legislation or regulation, other economic, competitive, governmental, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and technological factors affecting operations, pricing, products and services and Banner's ability to successfully resolve outstanding credit issues and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. recover check kiting The unlawful practice of drawing checks against a bank account containing insufficient funds to cover them, with the expectation that the necessary funds will be deposited before such checks are presented for payment. losses and other risks detailed in Banner's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2005. 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.
RESULTS OF OPERATIONS Quarters Ended
--------------------- -------------------------------------
(In thousands except share and Mar 31, Dec 31, Mar 31,
per share data) 2006 2005 2005
----------- ----------- -----------
INTEREST INCOME:
Loans receivable $ 49,126 $ 45,773 $ 36,137
Mortgage-backed securities 2,083 2,747 3,673
Securities and cash
equivalents 1,778 2,644 2,849
----------- ----------- -----------
52,987 51,164 42,659
INTEREST EXPENSE:
Deposits 17,431 15,607 10,414
Federal Home Loan Bank
advances 3,126 4,442 5,617
Other borrowings 698 569 332
Junior subordinated
debentures 1,828 1,788 1,067
----------- ----------- -----------
23,083 22,406 17,430
----------- ----------- -----------
Net interest income before
provision for loan losses 29,904 28,758 25,229
PROVISION FOR LOAN LOSSES 1,200 1,100 1,203
----------- ----------- -----------
Net interest income 28,704 27,658 24,026
OTHER OPERATING INCOME:
Deposit fees and other
service charges 2,492 2,516 2,004
Mortgage banking operations 1,152 1,099 1,231
Loan servicing fees 390 315 439
Miscellaneous 468 321 323
----------- ----------- -----------
4,502 4,251 3,997
Gain (loss) on sale of
securities -- (7,310) --
----------- ----------- -----------
Total other operating income
(loss) 4,502 (3,059) 3,997
OTHER OPERATING EXPENSE:
Salary and employee benefits 15,489 15,337 13,793
Less capitalized loan
origination costs (2,592) (2,342) (2,041)
Occupancy and equipment 3,794 3,623 3,227
Information / computer data
services 1,300 1,214 1,117
Miscellaneous 5,207 5,975 5,207
----------- ----------- -----------
23,198 23,807 21,303
FHLB prepayment penalties -- 6,077 --
----------- ----------- -----------
Total other operating expense 23,198 29,884 21,303
----------- ----------- -----------
Income (loss) before
provision for income taxes 10,008 (5,285) 6,720
PROVISION (BENEFIT) FOR INCOME
TAXES 3,220 (2,340) 2,013
----------- ----------- -----------
NET INCOME (LOSS) $ 6,788 $ (2,945) $ 4,707
=========== =========== ===========
Earnings (loss) per share
Basic $ 0.58 $ (0.25) $ 0.41
Diluted $ 0.56 $ (0.25) $ 0.39
Cumulative dividends declared
per common share $ 0.18 $ 0.18 $ 0.17
Weighted average shares
outstanding
Basic 11,789,858 11,635,243 11,470,028
Diluted 12,124,533 12,006,686 11,920,812
Shares repurchased during the
period 8,068 24,924 8,028
PROFORMA DISCLOSURES OF FOURTH QUARTER 2005 RESTRUCTURING CHARGES
NET INCOME (LOSS) from above $ 6,788 $ (2,945) $ 4,707
ADJUSTMENTS FOR BALANCE-SHEET
RESTRUCTURING CHARGES
Loss on sale of securities -- 7,310 --
FHLB prepayment penalties -- 6,077 --
Income tax benefit related to
restructuring charges -- (4,819) --
----------- ----------- -----------
Restructuring charges net
of income tax benefit -- 8,568 --
----------- ----------- -----------
NET INCOME FROM RECURRING
OPERATIONS $ 6,788 $ 5,623 $ 4,707
=========== =========== ===========
Earnings per share EXCLUDING
restructuring charges
Basic $ 0.58 $ 0.48 $ 0.41
Diluted $ 0.56 $ 0.47 $ 0.39
FINANCIAL CONDITION
--------------------
(In thousands except share and Mar 31, Dec 31, Mar 31,
per share data) 2006 2005 2005
----------- ----------- -----------
ASSETS
------
Cash and due from banks $ 82,923 $ 116,448 $ 57,994
Securities available for sale 249,012 260,284 540,706
Securities held to maturity 49,993 50,949 50,515
Federal Home Loan Bank stock 35,844 35,844 35,844
Loans receivable:
Held for sale 4,208 4,779 3,217
Held for portfolio 2,566,323 2,434,952 2,158,620
Allowance for loan losses (31,894) (30,898) (29,736)
----------- ----------- -----------
2,538,637 2,408,833 2,132,101
Accrued interest receivable 16,881 17,395 15,982
Real estate owned held for
sale, net 287 315 1,034
Property and equipment, net 51,136 50,205 42,261
Goodwill and other intangibles,
net 36,306 36,280 36,347
Deferred income tax asset, net 8,488 7,606 7,964
Bank-owned life insurance 37,313 36,930 35,773
Other assets 15,137 19,466 16,261
----------- ----------- -----------
$ 3,121,957 $ 3,040,555 $ 2,972,782
=========== =========== ===========
LIABILITIES
-----------
Deposits:
Non-interest-bearing $ 325,265 $ 328,840 $ 257,437
Interest-bearing transaction
and savings accounts 801,048 792,370 678,483
Interest-bearing
certificates 1,290,143 1,202,103 1,058,610
----------- ----------- -----------
2,416,456 2,323,313 1,994,530
Advances from Federal Home Loan
Bank 268,930 265,030 594,958
Other borrowings 78,900 96,849 63,263
Junior subordinated debentures 97,942 97,942 72,168
Accrued expenses and other
liabilities 26,907 29,503 25,294
Deferred compensation 6,546 6,253 5,531
Income taxes payable 591 -- 3,375
----------- ----------- -----------
2,896,272 2,818,890 2,759,119
STOCKHOLDERS' EQUITY
--------------------
Common stock 131,574 130,573 127,829
Retained earnings 101,417 96,783 95,082
Accumulated other comprehensive
income (loss) (4,384) (2,736) (5,613)
Unearned shares of common stock
issued to Employee Stock
Ownership Plan (ESOP)
trust: at cost (2,494) (2,480) (3,096)
Net carrying value of stock
related deferred compensation
plans (428) (475) (539)
----------- ----------- -----------
225,685 221,665 213,663
----------- ----------- -----------
$ 3,121,957 $ 3,040,555 $ 2,972,782
=========== =========== ===========
Shares Issued:
Shares outstanding at end of
period 12,146,992 12,082,476 11,890,541
Less unearned ESOP shares at
end of period 301,786 300,120 374,595
----------- ----------- -----------
Shares outstanding at end of
period excluding unearned ESOP
shares 11,845,206 11,782,356 11,515,946
=========== =========== ===========
Book value per share (1) $ 19.05 $ 18.81 $ 18.55
Tangible book value per share
(1) $ 15.99 $ 15.73 $ 15.40
Consolidated Tier 1 leverage
capital ratio 8.96% 8.59% 8.72%
(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).
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
Mar 31, Dec 31, Mar 31,
2006 2005 2005
---------- ---------- ----------
LOANS (including loans held for sale):
--------------------------------------
Commercial real estate $ 565,752 $ 555,889 $ 559,195
Multifamily real estate 144,354 144,512 113,205
Commercial construction 73,514 51,931 39,468
Multifamily construction 62,990 62,624 78,236
One- to four-family construction 412,046 348,661 274,868
Land and land development 246,765 228,436 161,988
Commercial business 447,582 442,232 406,948
Agricultural business including
secured by farmland 137,747 147,562 130,776
One- to four-family real estate 382,007 365,903 316,345
Consumer 97,774 91,981 80,808
---------- ---------- ----------
Total loans outstanding $2,570,531 $2,439,731 $2,161,837
========== ========== ==========
Mar 31, Dec 31, Mar 31,
NON-PERFORMING ASSETS: 2006 2005 2005
---------------------- ---------- ---------- ----------
Loans on non-accrual status $ 8,225 $ 10,349 $ 17,718
Loans more than 90 days
delinquent, still on accrual 64 104 108
---------- ---------- ----------
Total non-performing loans 8,289 10,453 17,826
Real estate owned (REO)/
Repossessed assets 328 506 1,072
---------- ---------- ----------
Total non-performing assets $ 8,617 $ 10,959 $ 18,898
========== ========== ==========
Total non-performing assets/
Total assets 0.28% 0.36% 0.64%
Quarters Ended
---------- ----------- -----------
Mar 31, Dec 31, Mar 31,
2006 2005 2005
CHANGE IN THE ---------- ---------- ----------
ALLOWANCE FOR LOAN LOSSES:
----------------------------------
Balance, beginning of period $ 30,898 $ 30,561 $ 29,610
Provision 1,200 1,100 1,203
Recoveries of loans previously
charged off 156 269 373
Loans charged-off (360) (1,032) (1,450)
---------- ---------- ----------
Net (charge-offs) recoveries (204) (763) (1,077)
---------- ---------- ----------
Balance, end of period $ 31,894 $ 30,898 $ 29,736
========== ========== ==========
Net charge-offs/Average loans
outstanding 0.01% 0.03% 0.05%
Allowance for loan losses/
Total loans outstanding 1.24% 1.27% 1.38%
Mar 31, Dec 31, Mar 31,
DEPOSITS 2006 2005 2005
-------- ---------- ---------- ----------
Non-interest-bearing $ 325,265 $ 328,840 $ 257,437
---------- ---------- ----------
Interest-bearing checking 306,706 293,395 246,201
Regular savings accounts 141,000 153,218 159,102
Money market accounts 353,342 345,757 273,180
---------- ---------- ----------
Interest-bearing transaction &
savings accounts 801,048 792,370 678,483
---------- ---------- ----------
Three-month maturity money market
certificates 188,672 151,515 132,187
Other certificates 1,101,471 1,050,588 926,423
---------- ---------- ----------
Interest-bearing certificates 1,290,143 1,202,103 1,058,610
---------- ---------- ----------
Total deposits $2,416,456 $2,323,313 $1,994,530
========== ========== ==========
Included in other borrowings
----------------------------
Retail repurchase agreements/
"Sweep accounts" $ 61,086 $ 52,166 $ 36,057
---------- ---------- ----------
ADDITIONAL FINANCIAL INFORMATION
(Dollars in thousands)
(Rates/Ratios Annualized)
Quarters Ended
----------------------------------
Mar 31, Dec 31, Mar 31,
OPERATING PERFORMANCE: 2006 2005 2005
---------------------- ---------- ---------- ----------
Average loans $2,509,552 $2,394,069 $2,125,833
Average securities and deposits 349,197 510,808 633,420
Average non-interest-earning
assets 190,350 189,087 169,633
---------- ---------- ----------
Total average assets $3,049,099 $3,093,964 $2,928,886
========== ========== ==========
Average deposits $2,321,217 $2,272,710 $1,960,545
Average borrowings 468,540 562,239 719,544
Average non-interest-earning
liabilities 31,260 36,739 29,163
---------- ---------- ----------
Total average liabilities 2,821,017 2,871,688 2,709,252
Total average stockholders' equity 228,082 222,276 219,634
---------- ---------- ----------
Total average liabilities and
equity $3,049,099 $3,093,964 $2,928,886
========== ========== ==========
Interest rate yield on loans 7.94% 7.59% 6.89%
Interest rate yield on securities
and deposits 4.48% 4.19% 4.18%
---------- ---------- ----------
Interest rate yield on interest-
earning assets 7.52% 6.99% 6.27%
---------- ---------- ----------
Interest rate expense on deposits 3.05% 2.72% 2.15%
Interest rate expense on
borrowings 4.89% 4.80% 3.95%
---------- ---------- ----------
Interest rate expense on
interest-bearing liabilities 3.36% 3.14% 2.64%
---------- ---------- ----------
Interest rate spread 4.16% 3.85% 3.63%
========== ========== ==========
Net interest margin 4.24% 3.93% 3.71%
========== ========== ==========
Other operating income/Average
assets 0.60% (0.39%) 0.55%
Other operating expense/Average
assets 3.09% 3.83% 2.95%
Efficiency ratio (other operating
expense/revenue) 67.42% 116.28% 72.89%
Return on average assets 0.90% (0.38%) 0.65%
Return on average equity 12.07% (5.26%) 8.69%
Average equity/Average assets 7.48% 7.18% 7.50%
Operating performance for the quarter ended December 31, 2005
EXCLUDING the effects of the BALANCE-SHEET RESTRUCTURING CHARGES
Other operating income EXCLUDING
restructuring loss/Average assets 0.55%
Other operating expense EXCLUDING
restructuring expense/Average
assets 3.05%
Efficiency ratio (other operating
expense/revenue EXCLUDING effects
of restructuring charges) 72.12%
Return on average assets EXCLUDING
net restructuring charges 0.72%
Return on average equity EXCLUDING
net restructuring charges 10.04%
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