Banner Corporation's core operations remain strong.
Walla Walla, WA: Banner Corporation announced that core operations remain strong and year-over-year revenue growth contributed to increased fourth quarter and 2017 income before provision for income taxes.
For the year ended December 31, 2017, net income was $60.8 million, or $1.84 per diluted share, compared to $85.4 million, or $2.52 per diluted share, in 2016. There were no acquisition-related costs in 2017, compared to $11.7 million in acquisition-related expenses in 2016.
As a result of the previously announced write-down of deferred tax assets, which resulted in an additional tax expense of $42.6 million, or $1.30 per diluted share, Banner reported a net loss in the fourth quarter of 2017 of $13.5 million, or $0.41 per diluted share. This compares to net income of $25.1 million, or $0.76 per diluted share, in the preceding quarter and net income of $22.8 million, or $0.69 per diluted share, in the fourth quarter a year ago.
Banner Bank completed the sale of its seven branches and related assets and liabilities in Utah to People's Intermountain Bank, a banking subsidiary of People's Utah Bancorp (NASDAQ: PUB). Under the terms of the purchase and assumption agreement, the sale included approximately $255 million in loans and $160 million in deposits. In addition, on January 4, 2018, Banner announced that as a result of the Tax Cuts and Jobs Act, it was required to revalue its deferred tax assets and liabilities to account for the future impact of lower corporate tax rates and other provisions of the legislation. Banner recorded a one-time net tax charge during the fourth quarter of $42.6 million, or $1.30 per share, related to the revaluation of these deferred tax items. This increase in income tax expense was reflected in operating results for the fourth quarter of 2017 and was in addition to the normal provision for income tax related to pre-tax net operating income.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Feb 7, 2018|
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