Washington | 91-1691604 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||
10 South First Avenue, Walla Walla, Washington 99362 | ||||
(Address of principal executive offices and zip code) | ||||
Registrant's telephone number, including area code: (509) 527-3636 | ||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |||||||||||||||||||||||
Yes | [x] | No | [ ] | ||||||||||||||||||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). | |||||||||||||||||||||||
Yes | [x] | No | [ ] | ||||||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. | |||||||||||||||||||||||
Large accelerated filer [ ] | Accelerated filer [x] | Non-accelerated filer [ ] | Smaller reporting company [ ] | ||||||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | [ ] | No | [x] | |||||||||||||||||||
APPLICABLE ONLY TO CORPORATE ISSUERS | |||||||||||||||||||||||
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. | |||||||||||||||||||||||
Title of class: | As of October 31, 2012 | ||||||||||||||||||||||
Common Stock, $.01 par value per share | 19,454,965 shares * | ||||||||||||||||||||||
* Includes 34,340 shares held by the Employee Stock Ownership Plan that have not been released, committed to be released, or allocated to participant accounts. | |||||||||||||||||||||||
PART I - FINANCIAL INFORMATION | |
Item 1 - Financial Statements. The Consolidated Financial Statements of Banner Corporation and Subsidiaries filed as a part of the report are as follows: | |
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3 - Quantitative and Qualitative Disclosures About Market Risk | |
Item 4 - Controls and Procedures | |
PART II - OTHER INFORMATION | |
Item 1 - Legal Proceedings | |
Item 1A - Risk Factors | |
Item 3 - Defaults upon Senior Securities | |
Item 4 – Mine Safety Disclosures | |
Item 5 - Other Information | |
Item 6 - Exhibits | |
September 30 | December 31 | ||||||
ASSETS | 2012 | 2011 | |||||
Cash and due from banks | $ | 203,756 | $ | 132,436 | |||
Securities—trading, amortized cost $92,017 and $112,663, respectively | 72,593 | 80,727 | |||||
Securities—available-for-sale, amortized cost $456,228 and $462,579, respectively | 459,958 | 465,795 | |||||
Securities—held-to-maturity, fair value $95,176 and $80,107, respectively | 88,626 | 75,438 | |||||
Federal Home Loan Bank stock | 37,038 | 37,371 | |||||
Loans receivable: | |||||||
Held for sale | 6,898 | 3,007 | |||||
Held for portfolio | 3,206,625 | 3,293,331 | |||||
Allowance for loan losses | (78,783 | ) | (82,912 | ) | |||
3,134,740 | 3,213,426 | ||||||
Accrued interest receivable | 16,118 | 15,570 | |||||
Real estate owned, held for sale, net | 20,356 | 42,965 | |||||
Property and equipment, net | 89,202 | 91,435 | |||||
Intangible assets, net | 4,740 | 6,331 | |||||
Bank-owned life insurance (BOLI) | 60,395 | 58,563 | |||||
Deferred tax assets, net | 41,474 | — | |||||
Other assets | 39,668 | 37,255 | |||||
$ | 4,268,664 | $ | 4,257,312 | ||||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest-bearing | $ | 918,962 | $ | 777,563 | |||
Interest-bearing transaction and savings accounts | 1,480,234 | 1,447,594 | |||||
Interest-bearing certificates | 1,087,176 | 1,250,497 | |||||
3,486,372 | 3,475,654 | ||||||
Advances from FHLB at fair value | 10,367 | 10,533 | |||||
Other borrowings | 82,275 | 152,128 | |||||
Junior subordinated debentures at fair value (issued in connection with Trust Preferred Securities) | 73,071 | 49,988 | |||||
Accrued expenses and other liabilities | 36,109 | 23,253 | |||||
Deferred compensation | 14,375 | 13,306 | |||||
3,702,569 | 3,724,862 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 15) | |||||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock - $0.01 par value, 500,000 shares authorized; Series A – liquidation preference $1,000 per share, 73,416 and 124,000 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively | 72,242 | 120,702 | |||||
Common stock and paid in capital - $0.01 par value per share, 50,000,000 shares authorized, 19,454,879 shares issued: 19,420,539 shares and 17,519,132 shares outstanding at September 30, 2012 and December 31, 2011, respectively | 567,659 | 531,149 | |||||
Accumulated deficit | (74,212 | ) | (119,465 | ) | |||
Accumulated other comprehensive income | 2,393 | 2,051 | |||||
Unearned shares of common stock issued to Employee Stock Ownership Plan (ESOP) trust at cost 34,340 restricted shares outstanding at September 30, 2012 and December 31, 2011 | (1,987 | ) | (1,987 | ) | |||
566,095 | 532,450 | ||||||
$ | 4,268,664 | $ | 4,257,312 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST INCOME: | |||||||||||||||
Loans receivable | $ | 43,953 | $ | 45,641 | $ | 131,981 | $ | 139,242 | |||||||
Mortgage-backed securities | 1,089 | 799 | 3,011 | 2,533 | |||||||||||
Securities and cash equivalents | 2,132 | 3,121 | 6,645 | 7,337 | |||||||||||
47,174 | 49,561 | 141,637 | 149,112 | ||||||||||||
INTEREST EXPENSE: | |||||||||||||||
Deposits | 3,536 | 6,169 | 12,019 | 20,995 | |||||||||||
FHLB advances | 64 | 64 | 191 | 306 | |||||||||||
Other borrowings | 71 | 559 | 694 | 1,706 | |||||||||||
Junior subordinated debentures | 805 | 1,041 | 2,619 | 3,120 | |||||||||||
4,476 | 7,833 | 15,523 | 26,127 | ||||||||||||
Net interest income before provision for loan losses | 42,698 | 41,728 | 126,114 | 122,985 | |||||||||||
PROVISION FOR LOAN LOSSES | 3,000 | 5,000 | 12,000 | 30,000 | |||||||||||
Net interest income | 39,698 | 36,728 | 114,114 | 92,985 | |||||||||||
OTHER OPERATING INCOME: | |||||||||||||||
Deposit fees and other service charges | 6,681 | 6,096 | 18,833 | 17,068 | |||||||||||
Mortgage banking operations | 3,397 | 1,401 | 8,901 | 3,218 | |||||||||||
Loan servicing fees, net of amortization and impairment | 377 | 289 | 937 | 942 | |||||||||||
Miscellaneous | 1,146 | 586 | 2,182 | 1,448 | |||||||||||
11,601 | 8,372 | 30,853 | 22,676 | ||||||||||||
Gain on sale of securities | 19 | — | 48 | — | |||||||||||
Other-than-temporary impairment recovery (loss) | (409 | ) | 3,000 | (409 | ) | 3,000 | |||||||||
Net change in valuation of financial instruments carried at fair value | 473 | (1,032 | ) | (16,901 | ) | 1,163 | |||||||||
Total other operating income | 11,684 | 10,340 | 13,591 | 26,839 | |||||||||||
OTHER OPERATING EXPENSES: | |||||||||||||||
Salary and employee benefits | 19,614 | 18,226 | 58,514 | 53,769 | |||||||||||
Less capitalized loan origination costs | (2,655 | ) | (1,929 | ) | (7,652 | ) | (5,597 | ) | |||||||
Occupancy and equipment | 5,811 | 5,352 | 16,492 | 16,182 | |||||||||||
Information/computer data services | 1,807 | 1,547 | 5,068 | 4,635 | |||||||||||
Payment and card processing expenses | 2,335 | 2,132 | 6,341 | 5,718 | |||||||||||
Professional services | 993 | 1,950 | 3,561 | 4,807 | |||||||||||
Advertising and marketing | 1,897 | 1,602 | 5,613 | 5,245 | |||||||||||
Deposit insurance | 791 | 1,299 | 2,970 | 4,657 | |||||||||||
State/municipal business and use taxes | 582 | 553 | 1,715 | 1,591 | |||||||||||
REO operations | (1,304 | ) | 6,698 | 3,263 | 17,897 | ||||||||||
Amortization of core deposit intangibles | 508 | 554 | 1,583 | 1,721 | |||||||||||
Miscellaneous | 2,976 | 3,054 | 9,466 | 8,812 | |||||||||||
Total other operating expenses | 33,355 | 41,038 | 106,934 | 119,437 | |||||||||||
Income before provision for income taxes | 18,027 | 6,030 | 20,771 | 387 | |||||||||||
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 2,407 | — | (29,423 | ) | — | ||||||||||
NET INCOME | 15,620 | 6,030 | 50,194 | 387 | |||||||||||
PREFERRED STOCK DIVIDEND, DISCOUNT ACCRETION AND GAINS | |||||||||||||||
Preferred stock dividend | 1,227 | 1,550 | 4,327 | 4,650 | |||||||||||
Preferred stock discount accretion | 1,216 | 425 | 2,124 | 1,276 | |||||||||||
Gain on repurchase and retirement of preferred stock | (2,070 | ) | — | (2,070 | ) | — | |||||||||
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ | 15,247 | $ | 4,055 | $ | 45,813 | $ | (5,539 | ) | ||||||
Earnings (loss) per common share: | |||||||||||||||
Basic | $ | 0.80 | $ | 0.24 | $ | 2.49 | $ | (0.33 | ) | ||||||
Diluted | $ | 0.79 | $ | 0.24 | $ | 2.48 | $ | (0.33 | ) | ||||||
Cumulative dividends declared per common share: | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.09 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
NET INCOME | $ | 15,620 | $ | 6,030 | $ | 50,194 | $ | 387 | |||||||
OTHER COMPREHENSIVE INCOME, NET OF INCOME TAXES: | |||||||||||||||
Unrealized holding gain during the period, net of deferred income tax provision of $228, $0, $179 and $0, respectively | 422 | 651 | 335 | 1,940 | |||||||||||
Amortization of unrealized gain on tax exempt securities transferred from available-for-sale to held-to-maturity | 2 | 3 | 7 | 12 | |||||||||||
Other comprehensive income | 424 | 654 | 342 | 1,952 | |||||||||||
COMPREHENSIVE INCOME | $ | 16,044 | $ | 6,684 | $ | 50,536 | $ | 2,339 |
Preferred Stock | Common Stock and Paid in Capital | (Accumulated Deficit) | Accumulated Other Comprehensive Income | Stockholders’ Equity | |||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Balance, January 1, 2012 | 124,000 | $ | 120,702 | 17,519,132 | $ | 529,162 | $ | (119,465 | ) | $ | 2,051 | $ | 532,450 | ||||||||||||
Net income | 50,194 | 50,194 | |||||||||||||||||||||||
Change in valuation of securities—available-for-sale, net of income tax | 335 | 335 | |||||||||||||||||||||||
Amortization of unrealized loss on tax exempt securities transferred from available-for-sale to held-to-maturity, net of income tax | 7 | 7 | |||||||||||||||||||||||
Accretion of preferred stock discount | 2,124 | (2,124 | ) | — | |||||||||||||||||||||
Accrual of dividends on preferred stock | (4,327 | ) | (4,327 | ) | |||||||||||||||||||||
Repurchase of preferred stock | (50,584 | ) | (50,584 | ) | 2,070 | (48,514 | ) | ||||||||||||||||||
Accrual of dividends on common stock ($.03/share cumulative) | (560 | ) | (560 | ) | |||||||||||||||||||||
Proceeds from issuance of common stock for stockholder reinvestment program | 1,814,234 | 36,314 | 36,314 | ||||||||||||||||||||||
Amortization of compensation related to restricted stock grant | 87,173 | 189 | 189 | ||||||||||||||||||||||
Amortization of compensation related to stock options | 7 | 7 | |||||||||||||||||||||||
BALANCE, September 30, 2012 | 73,416 | $ | 72,242 | 19,420,539 | $ | 565,672 | $ | (74,212 | ) | $ | 2,393 | $ | 566,095 |
Preferred Stock | Common Stock and Paid in Capital | (Accumulated Deficit) | Accumulated Other Comprehensive Income | Stockholders’ Equity | |||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Balance, January 1, 2011 | 124,000 | $ | 119,000 | 16,130,441 | $ | 507,470 | $ | (115,348 | ) | $ | 350 | $ | 511,472 | ||||||||||||
Net income | 5,457 | 5,457 | |||||||||||||||||||||||
Change in valuation of securities—available-for-sale, net of income tax | 1,685 | 1,685 | |||||||||||||||||||||||
Amortization of unrealized loss on tax exempt securities transferred from available-for-sale to held-to-maturity, net of income tax | 16 | 16 | |||||||||||||||||||||||
Accretion of preferred stock discount | 1,701 | (1,701 | ) | — | |||||||||||||||||||||
Accrual of dividends on preferred stock | (6,200 | ) | (6,200 | ) | |||||||||||||||||||||
Accrual of dividends on common stock ($.10/share cumulative) | (1,673 | ) | (1,673 | ) | |||||||||||||||||||||
Proceeds from issuance of common stock for stockholder reinvestment program | 1,372,625 | 21,556 | 21,556 | ||||||||||||||||||||||
Amortization of compensation related to restricted stock grant | 16,066 | 111 | 111 | ||||||||||||||||||||||
Amortization of compensation related to stock options | 25 | 25 | |||||||||||||||||||||||
Other | 1 | 1 | |||||||||||||||||||||||
BALANCE, December 31, 2011 | 124,000 | $ | 120,702 | 17,519,132 | $ | 529,162 | $ | (119,465 | ) | $ | 2,051 | $ | 532,450 |
Nine Months Ended September 30 | |||||||
2012 | 2011 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 50,194 | $ | 387 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 6,048 | 6,509 | |||||
Deferred income and expense, net of amortization | 1,871 | 1,207 | |||||
Amortization of core deposit intangibles | 1,583 | 1,721 | |||||
Other-than-temporary impairment (recovery) or loss | 409 | (3,000 | ) | ||||
Net change in valuation of financial instruments carried at fair value | 16,901 | (1,163 | ) | ||||
Purchases of securities-trading | (2,161 | ) | — | ||||
Proceeds from sales of securities-trading | 2,170 | — | |||||
Principal repayments and maturities of securities—trading | 13,838 | 11,305 | |||||
Increase in deferred taxes | (41,474 | ) | — | ||||
Increase in current taxes payable | 10,177 | — | |||||
Equity-based compensation | 195 | 91 | |||||
Increase in cash surrender value of bank-owned life insurance | (1,489 | ) | (1,405 | ) | |||
Gain on sale of loans, net of capitalized servicing rights | (6,117 | ) | (1,992 | ) | |||
(Gain) loss on disposal of real estate held for sale and property and equipment | (3,645 | ) | 1,254 | ||||
Provision for losses on loans and real estate held for sale | 16,451 | 42,407 | |||||
Origination of loans held for sale | (369,251 | ) | (186,341 | ) | |||
Proceeds from sales of loans held for sale | 371,477 | 187,830 | |||||
Net change in: | |||||||
Other assets | (2,000 | ) | 16,308 | ||||
Other liabilities | 3,678 | (677 | ) | ||||
Net cash provided from operating activities | 68,855 | 74,441 | |||||
INVESTING ACTIVITIES: | |||||||
Purchases of available-for-sale securities | (299,985 | ) | (420,910 | ) | |||
Principal repayments and maturities of available-for-sale securities | 290,440 | 224,716 | |||||
Proceeds from sales of securities available-for-sale | 13,282 | 13,179 | |||||
Purchases of securities held-to-maturity | (16,115 | ) | (11,303 | ) | |||
Principal repayments and maturities of securities held-to-maturity | 2,800 | 7,066 | |||||
Principal repayments of loans, net of originations | 63,755 | 92,156 | |||||
Purchases of loans and participating interest in loans | (4,863 | ) | (620 | ) | |||
Purchases of property and equipment | (3,823 | ) | (2,486 | ) | |||
Proceeds from sale of real estate held for sale, net | 33,516 | 66,653 | |||||
Other | (8 | ) | (169 | ) | |||
Net cash provided from (used by) investing activities | 78,999 | (31,718 | ) | ||||
FINANCING ACTIVITIES: | |||||||
Increase (decrease) in deposits, net | 10,718 | (53,764 | ) | ||||
Repayment of FHLB advances | (4 | ) | (32,804 | ) | |||
Decrease in other borrowings, net | (69,853 | ) | (36,109 | ) | |||
Cash dividends paid | (5,195 | ) | (7,107 | ) | |||
Cash proceeds from issuance of stock for stockholder reinvestment plan | 36,314 | 13,736 | |||||
Repurchase of preferred stock | (48,514 | ) | — | ||||
Net cash used by financing activities | (76,534 | ) | (116,048 | ) | |||
NET INCREASE (DECREASE) IN CASH AND DUE FROM BANKS | 71,320 | (73,325 | ) | ||||
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD | 132,436 | 361,652 | |||||
CASH AND DUE FROM BANKS, END OF PERIOD | $ | 203,756 | $ | 288,327 |
Nine Months Ended September 30 | |||||||
2012 | 2011 | ||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Interest paid in cash | $ | 16,585 | $ | 28,231 | |||
Taxes paid (received) in cash | 2,579 | (13,048 | ) | ||||
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||||||
Loans, net of discounts, specific loss allowances and unearned income, transferred to real estate owned and other repossessed assets | 11,632 | 45,880 |
September 30 2012 | December 31 2011 | September 30 2011 | |||||||||
Interest-bearing deposits included in cash and due from banks | $ | 143,251 | $ | 69,758 | $ | 234,824 | |||||
U.S. Government and agency obligations | 159,885 | 341,606 | 292,012 | ||||||||
Municipal bonds: | |||||||||||
Taxable | 26,742 | 18,497 | 15,220 | ||||||||
Tax exempt | 106,171 | 88,963 | 92,432 | ||||||||
Total municipal bonds | 132,913 | 107,460 | 107,652 | ||||||||
Corporate bonds | 40,505 | 42,565 | 52,238 | ||||||||
Mortgage-backed or related securities: | |||||||||||
Fannie Mae (FNMA) | 158,334 | 66,519 | 47,177 | ||||||||
Freddie Mac (FHLMC) | 65,661 | 42,001 | 25,350 | ||||||||
Ginnie Mae (GNMA) | 29,665 | 19,572 | 20,815 | ||||||||
Private issuer | 1,412 | 1,835 | 2,589 | ||||||||
Total mortgage-backed or related securities | 255,072 | 129,927 | 95,931 | ||||||||
Asset-backed securities: | |||||||||||
Student Loan Marketing Association (SLMA) | 32,752 | — | — | ||||||||
Equity securities (excludes FHLB stock) | 50 | 402 | 545 | ||||||||
Total securities | 621,177 | 621,960 | 548,378 | ||||||||
FHLB stock | 37,038 | 37,371 | 37,371 | ||||||||
$ | 801,466 | $ | 729,089 | $ | 820,573 |
September 30, 2012 | December 31, 2011 | ||||||||||||||||||||
Amortized Cost | Fair Value | Percent of Total | Amortized Cost | Fair Value | Percent of Total | ||||||||||||||||
U.S. Government and agency obligations | $ | 1,380 | $ | 1,642 | 2.3 | % | $ | 2,401 | $ | 2,635 | 3.3 | % | |||||||||
Municipal bonds: | |||||||||||||||||||||
Taxable | — | — | — | 391 | 420 | 0.5 | |||||||||||||||
Tax exempt | 5,439 | 5,535 | 7.6 | 5,431 | 5,542 | 6.9 | |||||||||||||||
Total municipal bonds | 5,439 | 5,535 | 7.6 | 5,822 | 5,962 | 7.4 | |||||||||||||||
Corporate bonds | 57,820 | 35,180 | 48.4 | 63,502 | 35,055 | 43.4 | |||||||||||||||
Mortgage-backed or related securities: | |||||||||||||||||||||
FNMA | 19,383 | 21,543 | 29.7 | 23,489 | 25,427 | 31.5 | |||||||||||||||
FHLMC | 7,981 | 8,643 | 11.9 | 10,535 | 11,246 | 13.9 | |||||||||||||||
Total mortgage-backed or related securities | 27,364 | 30,186 | 41.6 | 34,024 | 36,673 | 45.4 | |||||||||||||||
Equity securities | 14 | 50 | 0.1 | 6,914 | 402 | 0.5 | |||||||||||||||
$ | 92,017 | $ | 72,593 | 100.0 | % | $ | 112,663 | $ | 80,727 | 100.0 | % |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | — | $ | — | $ | 1,000 | $ | 1,009 | |||||||
Due after one year through five years | 1,543 | 1,614 | 1,545 | 1,626 | |||||||||||
Due after five years through ten years | 4,076 | 4,101 | 4,087 | 4,123 | |||||||||||
Due after ten years through twenty years | 1,626 | 1,645 | 6,544 | 6,184 | |||||||||||
Due after twenty years | 57,394 | 34,997 | 58,549 | 30,710 | |||||||||||
64,639 | 42,357 | 71,725 | 43,652 | ||||||||||||
Mortgage-backed securities | 27,364 | 30,186 | 34,024 | 36,673 | |||||||||||
Equity securities | 14 | 50 | 6,914 | 402 | |||||||||||
$ | 92,017 | $ | 72,593 | $ | 112,663 | $ | 80,727 |
September 30, 2012 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percent of Total | ||||||||||||||
U.S. Government and agency obligations | $ | 157,662 | $ | 584 | $ | (4 | ) | $ | 158,242 | 34.4 | % | |||||||
Municipal bonds: | ||||||||||||||||||
Taxable | 15,940 | 268 | (41 | ) | 16,167 | 3.5 | ||||||||||||
Tax exempt | 23,571 | 269 | (4 | ) | 23,836 | 5.2 | ||||||||||||
Total municipal bonds | 39,511 | 537 | (45 | ) | 40,003 | 8.7 | ||||||||||||
Corporate bonds | 4,027 | 48 | — | 4,075 | 0.9 | |||||||||||||
Mortgage-backed or related securities: | ||||||||||||||||||
FNMA | 135,929 | 1,276 | (414 | ) | 136,791 | 29.7 | ||||||||||||
FHLMC | 56,631 | 476 | (89 | ) | 57,018 | 12.4 | ||||||||||||
GNMA | 28,533 | 1,211 | (79 | ) | 29,665 | 6.5 | ||||||||||||
Private issuer | 1,329 | 83 | — | 1,412 | 0.3 | |||||||||||||
Total mortgage-backed or related securities | 222,422 | 3,046 | (582 | ) | 224,886 | 48.9 | ||||||||||||
Asset-backed securities: | ||||||||||||||||||
SLMA | 32,606 | 194 | (48 | ) | 32,752 | 7.1 | ||||||||||||
$ | 456,228 | $ | 4,409 | $ | (679 | ) | $ | 459,958 | 100.0 | % | ||||||||
December 31, 2011 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percent of Total | ||||||||||||||
U.S. Government and agency obligations | $ | 338,165 | $ | 862 | $ | (56 | ) | $ | 338,971 | 72.8 | % | |||||||
Municipal bonds: | ||||||||||||||||||
Taxable | 10,358 | 225 | (2 | ) | 10,581 | 2.3 | ||||||||||||
Tax exempt | 16,535 | 210 | (16 | ) | 16,729 | 3.6 | ||||||||||||
Total municipal bonds | 26,893 | 435 | (18 | ) | 27,310 | 5.9 | ||||||||||||
Corporate bonds | 6,240 | 20 | — | 6,260 | 1.3 | |||||||||||||
Mortgage-backed or related securities: | ||||||||||||||||||
FHLMC | 30,504 | 284 | (33 | ) | 30,755 | 6.6 | ||||||||||||
FNMA | 40,897 | 310 | (115 | ) | 41,092 | 8.8 | ||||||||||||
GNMA | 18,145 | 1,427 | — | 19,572 | 4.2 | |||||||||||||
Private issuer | 1,735 | 100 | — | 1,835 | 0.4 | |||||||||||||
Total mortgage-backed or related securities | 91,281 | 2,121 | (148 | ) | 93,254 | 20.0 | ||||||||||||
$ | 462,579 | $ | 3,438 | $ | (222 | ) | $ | 465,795 | 100.0 | % |
September 30, 2012 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Government and agency obligations | $ | 11,054 | $ | (4 | ) | $ | — | $ | — | $ | 11,054 | $ | (4 | ) | |||||||||
Municipal bonds: | |||||||||||||||||||||||
Taxable | 5,224 | (41 | ) | — | — | 5,224 | (41 | ) | |||||||||||||||
Tax exempt | 2,519 | (4 | ) | — | — | 2,519 | (4 | ) | |||||||||||||||
Total municipal bonds | 7,743 | (45 | ) | — | — | 7,743 | (45 | ) | |||||||||||||||
Mortgage-backed or related securities: | |||||||||||||||||||||||
FNMA | 48,467 | (414 | ) | — | — | 48,467 | (414 | ) | |||||||||||||||
FHLMC | 17,239 | (89 | ) | — | — | 17,239 | (89 | ) | |||||||||||||||
GNMA | 9,417 | (79 | ) | — | — | 9,417 | (79 | ) | |||||||||||||||
Total mortgage-backed or related securities | 75,123 | (582 | ) | — | — | 75,123 | (582 | ) | |||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||
SLMA | 5,013 | (48 | ) | — | — | 5,013 | (48 | ) | |||||||||||||||
$ | 98,933 | $ | (679 | ) | $ | — | $ | — | $ | 98,933 | $ | (679 | ) | ||||||||||
December 31, 2011 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
U.S. Government and agency obligations | $ | 74,326 | $ | (56 | ) | $ | — | $ | — | $ | 74,326 | $ | (56 | ) | |||||||||
Municipal bonds: | |||||||||||||||||||||||
Taxable | 3,599 | (2 | ) | — | — | 3,599 | (2 | ) | |||||||||||||||
Tax exempt | 4,075 | (16 | ) | — | — | 4,075 | (16 | ) | |||||||||||||||
Total municipal bonds | 7,674 | (18 | ) | — | — | 7,674 | (18 | ) | |||||||||||||||
Mortgage-backed or related securities: | |||||||||||||||||||||||
FNMA | 27,332 | (115 | ) | — | — | 27,332 | (115 | ) | |||||||||||||||
FHLMC | 6,556 | (33 | ) | — | — | 6,556 | (33 | ) | |||||||||||||||
Total mortgage-backed or related securities | 33,888 | (148 | ) | — | — | 33,888 | (148 | ) | |||||||||||||||
$ | 115,888 | $ | (222 | ) | $ | — | $ | — | $ | 115,888 | $ | (222 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | 17,266 | $ | 17,301 | $ | 19,520 | $ | 19,602 | |||||||
Due after one year through five years | 157,169 | 158,130 | 312,862 | 313,930 | |||||||||||
Due after five years through ten years | 37,693 | 37,776 | 38,916 | 39,009 | |||||||||||
Due after ten years through twenty years | 21,678 | 21,865 | — | — | |||||||||||
Due after twenty years | — | — | — | — | |||||||||||
233,806 | 235,072 | 371,298 | 372,541 | ||||||||||||
Mortgage-backed securities | 222,422 | 224,886 | 91,281 | 93,254 | |||||||||||
$ | 456,228 | $ | 459,958 | $ | 462,579 | $ | 465,795 |
September 30, 2012 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percent of Total | ||||||||||||||
Municipal bonds: | ||||||||||||||||||
Taxable | $ | 10,575 | $ | 462 | $ | (91 | ) | $ | 10,946 | 11.5 | % | |||||||
Tax exempt | 76,801 | 6,179 | — | 82,980 | 87.2 | |||||||||||||
Total municipal bonds | 87,376 | 6,641 | (91 | ) | 93,926 | 98.7 | ||||||||||||
Corporate bonds | 1,250 | — | — | 1,250 | 1.3 | |||||||||||||
$ | 88,626 | $ | 6,641 | $ | (91 | ) | $ | 95,176 | 100.0 | % | ||||||||
December 31, 2011 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percent of Total | ||||||||||||||
Municipal bonds: | ||||||||||||||||||
Taxable | $ | 7,496 | $ | 390 | $ | — | $ | 7,886 | 9.8 | % | ||||||||
Tax exempt | 66,692 | 4,281 | — | 70,973 | 88.6 | |||||||||||||
Total municipal bonds | 74,188 | 4,671 | — | 78,859 | 98.4 | |||||||||||||
Corporate bonds | 1,250 | — | (2 | ) | 1,248 | 1.6 | ||||||||||||
$ | 75,438 | $ | 4,671 | $ | (2 | ) | $ | 80,107 | 100.0 | % |
September 30, 2012 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Municipal bonds: | |||||||||||||||||||||||
Taxable | $ | 4,238 | $ | (91 | ) | $ | — | $ | — | $ | 4,238 | $ | (91 | ) | |||||||||
$ | 4,238 | $ | (91 | ) | $ | — | $ | — | $ | 4,238 | $ | (91 | ) | ||||||||||
December 31, 2011 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
Corporate bonds | $ | — | — | $ | 498 | $ | (2 | ) | $ | 498 | $ | (2 | ) | ||||||||||
$ | — | — | $ | 498 | $ | (2 | ) | $ | 498 | $ | (2 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | 4,152 | $ | 4,164 | $ | 2,707 | $ | 2,768 | |||||||
Due after one year through five years | 14,539 | 15,332 | 14,420 | 15,150 | |||||||||||
Due after five years through ten years | 11,395 | 11,823 | 9,726 | 10,254 | |||||||||||
Due after ten years through twenty years | 56,248 | 61,334 | 46,741 | 49,936 | |||||||||||
Due after twenty years | 2,292 | 2,523 | 1,844 | 1,999 | |||||||||||
$ | 88,626 | $ | 95,176 | $ | 75,438 | $ | 80,107 |
Amortized Cost | Fair Value | ||||||
Purpose or beneficiary: | |||||||
State and local governments public deposits | $ | 92,740 | $ | 99,358 | |||
Interest rate swap counterparties | 10,841 | 11,025 | |||||
Retail repurchase agreements | 101,315 | 104,036 | |||||
Other | 5,976 | 6,149 | |||||
Total pledged securities | $ | 210,872 | $ | 220,568 |
September 30, 2012 | December 31, 2011 | September 30, 2011 | ||||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner-occupied | $ | 477,871 | 14.9 | % | $ | 469,806 | 14.2 | % | $ | 474,863 | 14.7 | % | ||||||||
Investment properties | 604,265 | 18.8 | 621,622 | 18.9 | 586,652 | 18.2 | ||||||||||||||
Multifamily real estate | 138,716 | 4.3 | 139,710 | 4.2 | 134,146 | 4.2 | ||||||||||||||
Commercial construction | 28,598 | 0.9 | 42,391 | 1.3 | 38,124 | 1.2 | ||||||||||||||
Multifamily construction | 14,502 | 0.5 | 19,436 | 0.6 | 16,335 | 0.5 | ||||||||||||||
One- to four-family construction | 163,521 | 5.1 | 144,177 | 4.4 | 145,776 | 4.5 | ||||||||||||||
Land and land development | ||||||||||||||||||||
Residential | 79,932 | 2.5 | 97,491 | 3.0 | 96,875 | 3.0 | ||||||||||||||
Commercial | 14,242 | 0.4 | 15,197 | 0.5 | 19,173 | 0.6 | ||||||||||||||
Commercial business | 603,606 | 18.8 | 601,440 | 18.2 | 580,876 | 18.0 | ||||||||||||||
Agricultural business, including secured by farmland | 219,084 | 6.8 | 218,171 | 6.6 | 211,571 | 6.6 | ||||||||||||||
One- to four-family real estate | 594,413 | 18.5 | 642,501 | 19.5 | 639,909 | 19.8 | ||||||||||||||
Consumer | 103,393 | 3.2 | 103,347 | 3.1 | 98,794 | 3.1 | ||||||||||||||
Consumer secured by one- to four-family | 171,380 | 5.3 | 181,049 | 5.5 | 182,152 | 5.6 | ||||||||||||||
Total consumer | 274,773 | 8.5 | 284,396 | 8.6 | 280,946 | 8.7 | ||||||||||||||
Total loans outstanding | 3,213,523 | 100.0 | % | 3,296,338 | 100.0 | % | 3,225,246 | 100.0 | % | |||||||||||
Less allowance for loan losses | (78,783 | ) | (82,912 | ) | (86,128 | ) | ||||||||||||||
Net loans | $ | 3,134,740 | $ | 3,213,426 | $ | 3,139,118 |
Washington | Oregon | Idaho | Other | Total | |||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 360,406 | $ | 53,929 | $ | 58,799 | $ | 4,737 | $ | 477,871 | |||||||||
Investment properties | 471,723 | 81,874 | 44,187 | 6,481 | 604,265 | ||||||||||||||
Multifamily real estate | 117,769 | 13,190 | 7,436 | 321 | 138,716 | ||||||||||||||
Commercial construction | 20,030 | 4,998 | 2,159 | 1,411 | 28,598 | ||||||||||||||
Multifamily construction | 9,498 | 5,004 | — | — | 14,502 | ||||||||||||||
One- to four-family construction | 88,350 | 73,375 | 1,796 | — | 163,521 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 39,181 | 38,781 | 1,970 | — | 79,932 | ||||||||||||||
Commercial | 9,205 | 3,107 | 1,930 | — | 14,242 | ||||||||||||||
Commercial business | 387,598 | 75,609 | 59,461 | 80,938 | 603,606 | ||||||||||||||
Agricultural business, including secured by farmland | 109,099 | 45,418 | 64,567 | — | 219,084 | ||||||||||||||
One- to four-family real estate | 365,510 | 201,898 | 24,542 | 2,463 | 594,413 | ||||||||||||||
Consumer | 66,837 | 31,154 | 5,402 | — | 103,393 | ||||||||||||||
Consumer secured by one- to four- family | 116,127 | 43,054 | 11,668 | 531 | 171,380 | ||||||||||||||
Total consumer | 182,964 | 74,208 | 17,070 | 531 | 274,773 | ||||||||||||||
Total loans | $ | 2,161,333 | $ | 671,391 | $ | 283,917 | $ | 96,882 | $ | 3,213,523 | |||||||||
Percent of total loans | 67.3 | % | 20.9 | % | 8.8 | % | 3.0 | % | 100.0 | % |
Washington | Oregon | Idaho | Total | ||||||||||||
Residential: | |||||||||||||||
Acquisition and development | $ | 6,229 | $ | 15,820 | $ | 1,710 | $ | 23,759 | |||||||
Improved land and lots | 22,727 | 20,273 | 260 | 43,260 | |||||||||||
Unimproved land | 10,225 | 2,688 | — | 12,913 | |||||||||||
Commercial: | |||||||||||||||
Acquisition and development | 1,370 | — | 484 | 1,854 | |||||||||||
Improved land and lots | 3,470 | 138 | 558 | 4,166 | |||||||||||
Unimproved land | 4,365 | 2,969 | 888 | 8,222 | |||||||||||
Total land and land development loans | $ | 48,386 | $ | 41,888 | $ | 3,900 | $ | 94,174 | |||||||
Percent of land and land development loans | 51.4 | % | 44.5 | % | 4.1 | % | 100.0 | % |
September 30, 2012 | December 31, 2011 | September 30, 2011 | |||||||||
Fixed-rate (term to maturity): | |||||||||||
Due in one year or less | $ | 185,379 | $ | 216,782 | $ | 194,153 | |||||
Due after one year through three years | 168,307 | 250,715 | 237,087 | ||||||||
Due after three years through five years | 168,348 | 182,647 | 170,747 | ||||||||
Due after five years through ten years | 165,973 | 157,559 | 162,461 | ||||||||
Due after ten years | 456,758 | 502,196 | 494,989 | ||||||||
Total fixed-rate loans | 1,144,765 | 1,309,899 | 1,259,437 | ||||||||
Adjustable-rate (term to rate adjustment): | |||||||||||
Due in one year or less | 1,283,783 | 1,200,182 | 1,172,572 | ||||||||
Due after one year through three years | 291,778 | 425,309 | 431,373 | ||||||||
Due after three years through five years | 441,773 | 336,382 | 336,984 | ||||||||
Due after five years through ten years | 45,951 | 23,618 | 23,932 | ||||||||
Due after ten years | 5,473 | 948 | 948 | ||||||||
Total adjustable-rate loans | 2,068,758 | 1,986,439 | 1,965,809 | ||||||||
Total loans | $ | 3,213,523 | $ | 3,296,338 | $ | 3,225,246 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Loan Amount | Allocated Reserves | Loan Amount | Allocated Reserves | ||||||||||||
Impaired loans: | |||||||||||||||
Nonaccrual loans | |||||||||||||||
Commercial real estate | |||||||||||||||
Owner-occupied | $ | 2,895 | $ | 111 | $ | 4,306 | $ | 281 | |||||||
Investment properties | 2,679 | 62 | 4,920 | 626 | |||||||||||
Multifamily real estate | — | — | 362 | 11 | |||||||||||
Commercial construction | — | — | 949 | — | |||||||||||
One- to four-family construction | 3,271 | 40 | 6,622 | 1,921 | |||||||||||
Land and land development | |||||||||||||||
Residential | 3,840 | 519 | 19,060 | 1,485 | |||||||||||
Commercial | 340 | 9 | 1,100 | 45 | |||||||||||
Commercial business | 6,158 | 220 | 13,460 | 1,871 | |||||||||||
Agricultural business/farmland | 645 | 66 | 1,896 | 629 | |||||||||||
One- to four-family residential | 14,234 | 571 | 17,408 | 243 | |||||||||||
Consumer | 1,168 | 13 | 1,115 | 62 | |||||||||||
Consumer secured by one- to four-family | 1,403 | 25 | 1,790 | 23 | |||||||||||
Total consumer | 2,571 | 38 | 2,905 | 85 | |||||||||||
Total nonaccrual loans | $ | 36,633 | $ | 1,636 | $ | 72,988 | $ | 7,197 | |||||||
Past due and still accruing | 2,078 | 3 | 2,324 | 19 | |||||||||||
TDRs on accrual status | 62,438 | 6,523 | 54,533 | 3,100 | |||||||||||
Total impaired loans | $ | 101,149 | $ | 8,162 | $ | 129,845 | $ | 10,316 |
At or For the Nine Months Ended September 30, 2012 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
Without a specific allowance reserve (1) | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 2,186 | $ | 2,437 | $ | 134 | $ | 2,355 | $ | — | |||||||||
Investment properties | 649 | 886 | 96 | 769 | — | ||||||||||||||
Multifamily real estate | 2,134 | 2,134 | 433 | 2,137 | — | ||||||||||||||
One- to four-family construction | 5,816 | 5,878 | 516 | 5,066 | 118 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 2,383 | 2,994 | 467 | 3,094 | 15 | ||||||||||||||
Commercial | 46 | 46 | 9 | 46 | — | ||||||||||||||
Commercial business | 3,728 | 3,924 | 810 | 3,810 | 1 | ||||||||||||||
Agricultural business/farmland | 645 | 1,328 | 66 | 923 | — | ||||||||||||||
One- to four-family residential | 22,220 | 23,585 | 201 | 22,530 | 17 | ||||||||||||||
Consumer | 953 | 1,053 | 13 | 1,048 | — | ||||||||||||||
Consumer secured by one- to four-family | 1,642 | 2,061 | 54 | 1,773 | 12 | ||||||||||||||
42,402 | 46,326 | 2,799 | 43,551 | 163 | |||||||||||||||
With a specific allowance reserve (2) | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 2,481 | $ | 2,481 | $ | 4 | $ | 2,500 | $ | — | |||||||||
Investment properties | 9,386 | 10,372 | 951 | 9,642 | — | ||||||||||||||
Multifamily real estate | 5,000 | 5,000 | 1,414 | 5,000 | — | ||||||||||||||
One- to-four family construction | 6,384 | 6,460 | 667 | 5,181 | 131 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 7,342 | 11,535 | 772 | 7,894 | — | ||||||||||||||
Commercial | 294 | 454 | — | 383 | — | ||||||||||||||
Commercial business | 6,115 | 7,447 | 383 | 7,683 | — | ||||||||||||||
One- to four-family residential | 20,719 | 21,277 | 1,139 | 19,970 | 38 | ||||||||||||||
Consumer | 727 | 743 | 33 | 743 | — | ||||||||||||||
Consumer secured by one- to four-family | 299 | 398 | — | 294 | — | ||||||||||||||
58,747 | 66,167 | 5,363 | 59,290 | 169 | |||||||||||||||
Total | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 4,667 | $ | 4,918 | $ | 138 | $ | 4,855 | $ | — | |||||||||
Investment properties | 10,035 | 11,258 | 1,047 | 10,411 | — | ||||||||||||||
Multifamily real estate | 7,134 | 7,134 | 1,847 | 7,137 | — | ||||||||||||||
One- to four-family construction | 12,200 | 12,338 | 1,183 | 10,247 | 249 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 9,725 | 14,529 | 1,239 | 10,988 | 15 | ||||||||||||||
Commercial | 340 | 500 | 9 | 429 | — | ||||||||||||||
Commercial business | 9,843 | 11,371 | 1,193 | 11,493 | 1 | ||||||||||||||
Agricultural business/farmland | 645 | 1,328 | 66 | 923 | — | ||||||||||||||
One- to four-family residential | 42,939 | 44,862 | 1,340 | 42,500 | 55 | ||||||||||||||
Consumer | 1,680 | 1,796 | 46 | 1,791 | — | ||||||||||||||
Consumer secured by one- to four-family | 1,941 | 2,459 | 54 | 2,067 | 12 | ||||||||||||||
$ | 101,149 | $ | 112,493 | $ | 8,162 | $ | 102,841 | $ | 332 |
At or For the Year Ended December 31, 2011 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
Without a specific allowance reserve (1) | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 852 | $ | 853 | $ | 78 | $ | 874 | $ | — | |||||||||
Investment properties | 1,576 | 1,618 | 261 | 1,728 | 9 | ||||||||||||||
Multifamily real estate | 452 | 452 | 6 | 456 | 32 | ||||||||||||||
One- to four-family construction | 5,429 | 5,488 | 437 | 5,580 | 242 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 4,064 | 4,679 | 1,176 | 4,524 | 99 | ||||||||||||||
Commercial | 645 | 645 | 45 | 616 | — | ||||||||||||||
Commercial business | 5,173 | 5,535 | 932 | 5,587 | 81 | ||||||||||||||
Agricultural business/farmland | 412 | 632 | 37 | 529 | — | ||||||||||||||
One- to four-family residential | 27,529 | 28,121 | 277 | 27,933 | 919 | ||||||||||||||
Consumer | 559 | 666 | 5 | 624 | 7 | ||||||||||||||
Consumer secured by one- to four-family | 1,707 | 2,162 | 29 | 2,042 | 22 | ||||||||||||||
48,398 | 50,851 | 3,283 | 50,493 | 1,411 | |||||||||||||||
With a specific allowance reserve (2) | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 3,643 | $ | 4,013 | $ | 207 | $ | 3,901 | $ | 13 | |||||||||
Investment properties | 11,750 | 14,200 | 1,485 | 13,471 | 424 | ||||||||||||||
Multifamily real estate | 1,997 | 1,997 | 11 | 1,967 | 82 | ||||||||||||||
Commercial construction | 949 | 1,493 | — | 1,465 | — | ||||||||||||||
One- to-four family construction | 9,556 | 9,821 | 1,998 | 9,185 | 277 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 20,331 | 34,068 | 616 | 36,747 | 220 | ||||||||||||||
Commercial | 454 | 454 | — | 454 | — | ||||||||||||||
Commercial business | 12,889 | 13,333 | 1,404 | 13,721 | 144 | ||||||||||||||
Agricultural business/farmland | 1,483 | 1,671 | 592 | 1,855 | — | ||||||||||||||
One- to four-family residential | 16,877 | 18,301 | 658 | 17,555 | 469 | ||||||||||||||
Consumer | 915 | 915 | 62 | 881 | 18 | ||||||||||||||
Consumer secured by one- to four-family | 603 | 630 | — | 585 | — | ||||||||||||||
81,447 | 100,896 | 7,033 | 101,787 | 1,647 | |||||||||||||||
Total | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||
Owner-occupied | $ | 4,495 | $ | 4,866 | $ | 285 | $ | 4,775 | $ | 13 | |||||||||
Investment properties | 13,326 | 15,818 | 1,746 | 15,199 | 433 | ||||||||||||||
Multifamily real estate | 2,449 | 2,449 | 17 | 2,423 | 114 | ||||||||||||||
Commercial construction | 949 | 1,493 | — | 1,465 | — | ||||||||||||||
One- to four-family construction | 14,985 | 15,309 | 2,435 | 14,765 | 519 | ||||||||||||||
Land and land development | |||||||||||||||||||
Residential | 24,395 | 38,747 | 1,792 | 41,271 | 319 | ||||||||||||||
Commercial | 1,099 | 1,099 | 45 | 1,070 | — | ||||||||||||||
Commercial business | 18,062 | 18,868 | 2,336 | 19,308 | 225 | ||||||||||||||
Agricultural business/farmland | 1,895 | 2,303 | 629 | 2,384 | — | ||||||||||||||
One- to four-family residential | 44,406 | 46,422 | 935 | 45,488 | 1,388 | ||||||||||||||
Consumer | 1,474 | 1,581 | 67 | 1,505 | 25 | ||||||||||||||
Consumer secured by one- to four-family | 2,310 | 2,792 | 29 | 2,627 | 22 | ||||||||||||||
$ | 129,845 | $ | 151,747 | $ | 10,316 | $ | 152,280 | $ | 3,058 |
(1) | Loans without a specific allowance reserve have not been individually evaluated for impairment, but have been included in pools of homogeneous loans for evaluation of related allowance reserves. |
(2) | Loans with a specific allowance reserve have been individually evaluated for impairment using either a discounted cash flow analysis or, for collateral dependent loans, current appraisals to establish realizable value. These analyses may identify a specific impairment amount needed or may conclude that no reserve is needed. Any specific impairment that is identified is included in the category’s Related Allowance column. |
September 30, 2012 | |||||||||||
Accrual Status | Nonaccrual Status | Total Modifications | |||||||||
Commercial real estate | |||||||||||
Owner-occupied | $ | 1,772 | $ | 1,111 | $ | 2,883 | |||||
Investment properties | 7,357 | 1,448 | 8,805 | ||||||||
Multifamily real estate | 7,134 | — | 7,134 | ||||||||
One-to-four family construction | 8,929 | 2,518 | 11,447 | ||||||||
Land and land development | |||||||||||
Residential | 5,884 | 210 | 6,094 | ||||||||
Commercial | — | — | — | ||||||||
Commercial business | 3,669 | 274 | 3,943 | ||||||||
One- to four-family residential | 26,668 | 2,911 | 29,579 | ||||||||
Consumer | 491 | 398 | 889 | ||||||||
Consumer secured by one-to-four family | 534 | 502 | 1,036 | ||||||||
Total consumer | 1,025 | 900 | 1,925 | ||||||||
$ | 62,438 | $ | 9,372 | $ | 71,810 |
December 31, 2011 | |||||||||||
Accrual Status | Nonaccrual Status | Total Modifications | |||||||||
Commercial real estate | |||||||||||
Owner-occupied | $ | — | $ | 142 | $ | 142 | |||||
Investment properties | 7,751 | 1,822 | 9,573 | ||||||||
Multifamily real estate | 2,088 | — | 2,088 | ||||||||
One-to-four family construction | 8,362 | 271 | 8,633 | ||||||||
Land and land development | |||||||||||
Residential | 5,334 | 557 | 5,891 | ||||||||
Commercial | — | 949 | 949 | ||||||||
Commercial business | 4,401 | — | 4,401 | ||||||||
One- to four-family residential | 23,291 | 3,086 | 26,377 | ||||||||
Consumer | 2,935 | 3,974 | 6,909 | ||||||||
Consumer secured by one-to-four family | 371 | 549 | 920 | ||||||||
Total consumer | 3,306 | 4,523 | 7,829 | ||||||||
$ | 54,533 | $ | 11,350 | $ | 65,883 |
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Number of Contracts | Pre- modification Outstanding Recorded Investment | Post- modification Outstanding Recorded Investment | Number of Contracts | Pre- modification Outstanding Recorded Investment | Post- modification Outstanding Recorded Investment | ||||||||||||||||
Recorded Investment (1) (2) | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 1 | $ | 946 | $ | 946 | 1 | $ | 946 | $ | 946 | |||||||||||
Investment properties | 3 | 2,784 | 2,784 | 6 | 3,708 | 3,708 | |||||||||||||||
Multifamily real estate | — | — | — | 2 | 5,054 | 5,054 | |||||||||||||||
One-to-four family construction | 11 | 1,711 | 1,711 | 19 | 4,504 | 4,504 | |||||||||||||||
Land and land development- residential | — | — | — | 6 | 2,059 | 2,059 | |||||||||||||||
Commercial business | 3 | 94 | 94 | 9 | 1,309 | 1,309 | |||||||||||||||
One- to four-family residential | 1 | 153 | 153 | 18 | 9,182 | 9,182 | |||||||||||||||
Consumer | — | — | — | 4 | 371 | 371 | |||||||||||||||
19 | $ | 5,688 | $ | 5,688 | 65 | $ | 27,133 | $ | 27,133 | ||||||||||||
Three Months Ended September 30, 2011 | Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Number of Contracts | Pre- modification Outstanding Recorded Investment | Post- modification Outstanding Recorded Investment | Number of Contracts | Pre- modification Outstanding Recorded Investment | Post- modification Outstanding Recorded Investment | ||||||||||||||||
Recorded Investment (1) (2) | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner-occupied | — | $ | — | $ | — | 1 | $ | 189 | $ | 189 | |||||||||||
Investment properties | — | — | — | 3 | 1,976 | 1,976 | |||||||||||||||
Multifamily real estate | 1 | 455 | 455 | 3 | 2,452 | 2,452 | |||||||||||||||
One-to-four family construction | 5 | 1,566 | 1,566 | 8 | 3,848 | 3,848 | |||||||||||||||
Land and land development - residential | 3 | 681 | 681 | 3 | 681 | 681 | |||||||||||||||
Commercial business | 2 | 855 | 645 | 3 | 905 | 695 | |||||||||||||||
One- to four-family residential | — | — | — | 4 | 1,097 | 1,097 | |||||||||||||||
Consumer | — | — | — | 3 | 136 | 136 | |||||||||||||||
11 | $ | 3,557 | $ | 3,347 | 28 | $ | 11,284 | $ | 11,074 |
(1) | Since most loans were already considered classified and/or on nonaccrual status prior to restructuring, the modifications did not have a material effect on the Company’s determination of the allowance for loan losses. |
(2) | The majority of these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Commercial real estate-owner occupied | $ | — | $ | — | $ | 1,358 | $ | — | |||||||
Land and land development - residential | — | 2,227 | — | 2,227 | |||||||||||
One- to four-family residential | — | — | 559 | 873 | |||||||||||
Total | $ | — | $ | 2,227 | $ | 1,917 | $ | 3,100 |
September 30, 2012 | |||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily Real Estate | Construction and Land | Commercial Business | Agricultural Business | One- to Four- Family Residential | Consumer | Total Loans | ||||||||||||||||||||||||
Risk-rated loans: | |||||||||||||||||||||||||||||||
Pass (Risk Ratings 1-5) (1) | $ | 1,018,552 | $ | 131,782 | $ | 263,281 | $ | 560,320 | $ | 217,084 | $ | 571,146 | $ | 268,463 | $ | 3,030,628 | |||||||||||||||
Special mention | 19,223 | — | 3,267 | 13,482 | 331 | 440 | 151 | 36,894 | |||||||||||||||||||||||
Substandard | 44,361 | 6,934 | 34,189 | 29,804 | 1,669 | 22,827 | 6,159 | 145,943 | |||||||||||||||||||||||
Doubtful | — | — | 58 | — | — | — | — | 58 | |||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total loans | $ | 1,082,136 | $ | 138,716 | $ | 300,795 | $ | 603,606 | $ | 219,084 | $ | 594,413 | $ | 274,773 | $ | 3,213,523 | |||||||||||||||
Performing loans | $ | 1,076,562 | $ | 138,716 | $ | 293,345 | $ | 597,433 | $ | 218,438 | $ | 578,142 | $ | 272,176 | $ | 3,174,812 | |||||||||||||||
Non-performing loans | 5,574 | — | 7,450 | 6,173 | 646 | 16,271 | 2,597 | 38,711 | |||||||||||||||||||||||
Total loans | $ | 1,082,136 | $ | 138,716 | $ | 300,795 | $ | 603,606 | $ | 219,084 | $ | 594,413 | $ | 274,773 | $ | 3,213,523 | |||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily Real Estate | Construction and Land | Commercial Business | Agricultural Business | One- to Four-Family Residential | Consumer | Total Loans | ||||||||||||||||||||||||
Risk-rated loans: | |||||||||||||||||||||||||||||||
Pass (Risk Ratings 1-5) (1) | $ | 1,003,990 | $ | 132,108 | $ | 257,685 | $ | 542,625 | $ | 213,512 | $ | 607,793 | $ | 276,642 | $ | 3,034,355 | |||||||||||||||
Special mention | 29,751 | 5,000 | 3,359 | 13,447 | 923 | 772 | 402 | 53,654 | |||||||||||||||||||||||
Substandard | 57,687 | 2,602 | 57,648 | 45,032 | 3,736 | 33,936 | 7,352 | 207,993 | |||||||||||||||||||||||
Doubtful | — | — | — | 336 | — | — | — | 336 | |||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Total loans | $ | 1,091,428 | $ | 139,710 | $ | 318,692 | $ | 601,440 | $ | 218,171 | $ | 642,501 | $ | 284,396 | $ | 3,296,338 | |||||||||||||||
Performing loans | $ | 1,082,202 | $ | 139,348 | $ | 290,961 | $ | 587,976 | $ | 216,275 | $ | 622,946 | $ | 281,318 | $ | 3,221,026 | |||||||||||||||
Non-performing loans (2) | 9,226 | 362 | 27,731 | 13,464 | 1,896 | 19,555 | 3,078 | 75,312 | |||||||||||||||||||||||
Total loans | $ | 1,091,428 | $ | 139,710 | $ | 318,692 | $ | 601,440 | $ | 218,171 | $ | 642,501 | $ | 284,396 | $ | 3,296,338 |
September 30, 2012 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans | Loans 90 Days or More Past Due and Accruing | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||
Owner-occupied | $ | 846 | $ | 1,684 | $ | 938 | $ | 3,468 | $ | 474,403 | $ | 477,871 | $ | — | |||||||||||||
Investment properties | — | — | 1,418 | 1,418 | 602,847 | 604,265 | — | ||||||||||||||||||||
Multifamily real estate | — | — | — | — | 138,716 | 138,716 | — | ||||||||||||||||||||
Commercial construction | — | — | — | — | 28,598 | 28,598 | — | ||||||||||||||||||||
Multifamily construction | — | — | — | — | 14,502 | 14,502 | — | ||||||||||||||||||||
One-to-four-family construction | — | — | 243 | 243 | 163,278 | 163,521 | — | ||||||||||||||||||||
Land and land development | |||||||||||||||||||||||||||
Residential | — | 389 | 3,630 | 4,019 | 75,913 | 79,932 | — | ||||||||||||||||||||
Commercial | — | 46 | 445 | 491 | 13,751 | 14,242 | — | ||||||||||||||||||||
Commercial business | 273 | 391 | 2,226 | 2,890 | 600,716 | 603,606 | 15 | ||||||||||||||||||||
Agricultural business | 22 | — | 626 | 648 | 218,436 | 219,084 | — | ||||||||||||||||||||
One-to four-family residential | 1,098 | 2,171 | 10,566 | 13,835 | 580,578 | 594,413 | 2,037 | ||||||||||||||||||||
Consumer | 448 | 72 | 195 | 715 | 102,678 | 103,393 | 21 | ||||||||||||||||||||
Consumer secured by one- to four-family | 324 | 1,074 | 1,248 | 2,646 | 168,734 | 171,380 | 5 | ||||||||||||||||||||
Total | $ | 3,011 | $ | 5,827 | $ | 21,535 | $ | 30,373 | $ | 3,183,150 | $ | 3,213,523 | $ | 2,078 | |||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans | Loans 90 Days or More Past Due and Accruing | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||
Owner-occupied | $ | 1,251 | $ | 2,703 | $ | 3,462 | $ | 7,416 | $ | 462,390 | $ | 469,806 | $ | — | |||||||||||||
Investment properties | — | — | 3,087 | 3,087 | 618,535 | 621,622 | — | ||||||||||||||||||||
Multifamily real estate | — | — | — | — | 139,710 | 139,710 | — | ||||||||||||||||||||
Commercial construction | — | — | 949 | 949 | 41,442 | 42,391 | — | ||||||||||||||||||||
Multifamily construction | — | — | — | — | 19,436 | 19,436 | — | ||||||||||||||||||||
One-to-four-family construction | 643 | — | 3,819 | 4,462 | 139,715 | 144,177 | — | ||||||||||||||||||||
Land and land development | |||||||||||||||||||||||||||
Residential | 638 | — | 15,919 | 16,557 | 80,934 | 97,491 | — | ||||||||||||||||||||
Commercial | 308 | — | 791 | 1,099 | 14,098 | 15,197 | — | ||||||||||||||||||||
Commercial business | 2,411 | 4,170 | 5,612 | 12,193 | 589,247 | 601,440 | 4 | ||||||||||||||||||||
Agricultural business | 99 | — | 1,849 | 1,948 | 216,223 | 218,171 | — | ||||||||||||||||||||
One-to four-family residential | 794 | 585 | 15,770 | 17,149 | 625,352 | 642,501 | 2,147 | ||||||||||||||||||||
Consumer | 670 | 363 | 769 | 1,802 | 101,545 | 103,347 | 25 | ||||||||||||||||||||
Consumer secured by one- to four-family | 1,072 | 109 | 1,374 | 2,555 | 178,494 | 181,049 | 148 | ||||||||||||||||||||
Total | $ | 7,886 | $ | 7,930 | $ | 53,401 | $ | 69,217 | $ | 3,227,121 | $ | 3,296,338 | $ | 2,324 |
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 16,834 | $ | 5,108 | $ | 16,974 | $ | 12,352 | $ | 1,294 | $ | 14,213 | $ | 1,365 | $ | 12,081 | $ | 80,221 | |||||||||||||||||
Provision for loan losses | (263 | ) | (367 | ) | (628 | ) | (118 | ) | 1,044 | 2,614 | 814 | (96 | ) | 3,000 | |||||||||||||||||||||
Recoveries | 130 | — | 35 | 154 | 30 | 34 | 91 | — | 474 | ||||||||||||||||||||||||||
Charge-offs | (924 | ) | — | (617 | ) | (1,687 | ) | (26 | ) | (709 | ) | (949 | ) | — | (4,912 | ) | |||||||||||||||||||
Ending balance | $ | 15,777 | $ | 4,741 | $ | 15,764 | $ | 10,701 | $ | 2,342 | $ | 16,152 | $ | 1,321 | $ | 11,985 | $ | 78,783 |
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 16,457 | $ | 3,952 | $ | 18,184 | $ | 15,159 | $ | 1,548 | $ | 12,299 | $ | 1,253 | $ | 14,060 | $ | 82,912 | |||||||||||||||||
Provision for loan losses | 2,065 | 789 | 1,369 | (97 | ) | 1,050 | 7,021 | 1,878 | (2,075 | ) | 12,000 | ||||||||||||||||||||||||
Recoveries | 762 | — | 1,455 | 1,030 | 45 | 412 | 422 | — | 4,126 | ||||||||||||||||||||||||||
Charge-offs | (3,507 | ) | — | (5,244 | ) | (5,391 | ) | (301 | ) | (3,580 | ) | (2,232 | ) | — | (20,255 | ) | |||||||||||||||||||
Ending balance | $ | 15,777 | $ | 4,741 | $ | 15,764 | $ | 10,701 | $ | 2,342 | $ | 16,152 | $ | 1,321 | $ | 11,985 | $ | 78,783 |
At September 30, 2012 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance individually evaluated for impairment | $ | 955 | $ | 1,414 | $ | 1,439 | $ | 383 | $ | — | $ | 1,139 | $ | 33 | $ | — | $ | 5,363 | |||||||||||||||||
Allowance collectively evaluated for impairment | 14,822 | 3,327 | 14,325 | 10,318 | 2,342 | 15,013 | 1,288 | 11,985 | 73,420 | ||||||||||||||||||||||||||
Total allowance for loan losses | $ | 15,777 | $ | 4,741 | $ | 15,764 | $ | 10,701 | $ | 2,342 | $ | 16,152 | $ | 1,321 | $ | 11,985 | $ | 78,783 |
At September 30, 2012 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 11,867 | $ | 5,000 | $ | 14,020 | $ | 6,115 | $ | — | $ | 20,719 | $ | 1,026 | $ | — | $ | 58,747 | |||||||||||||||||
Loans collectively evaluated for impairment | 1,070,269 | 133,716 | 286,775 | 597,491 | 219,084 | 573,694 | 273,747 | — | 3,154,776 | ||||||||||||||||||||||||||
Total loans | $ | 1,082,136 | $ | 138,716 | $ | 300,795 | $ | 603,606 | $ | 219,084 | $ | 594,413 | $ | 274,773 | $ | — | $ | 3,213,523 |
For the Three Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 13,087 | $ | 5,404 | $ | 25,976 | $ | 19,912 | $ | 1,409 | $ | 8,254 | $ | 1,445 | $ | 16,513 | $ | 92,000 | |||||||||||||||||
Provision for loan losses | 2,773 | (2,446 | ) | 3,063 | (2,569 | ) | (162 | ) | 5,444 | (183 | ) | (920 | ) | 5,000 | |||||||||||||||||||||
Recoveries | 1 | — | 89 | 414 | 10 | 34 | 69 | — | 617 | ||||||||||||||||||||||||||
Charge-offs | (1,644 | ) | — | (6,445 | ) | (863 | ) | — | (2,483 | ) | (54 | ) | — | (11,489 | ) | ||||||||||||||||||||
Ending balance | $ | 14,217 | $ | 2,958 | $ | 22,683 | $ | 16,894 | $ | 1,257 | $ | 11,249 | $ | 1,277 | $ | 15,593 | $ | 86,128 |
For the Nine Months Ended September 30, 2011 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 11,779 | $ | 3,963 | $ | 33,121 | $ | 24,545 | $ | 1,846 | $ | 5,829 | $ | 1,794 | $ | 14,524 | $ | 97,401 | |||||||||||||||||
Provision for loan losses | 6,926 | (334 | ) | 11,781 | (998 | ) | (315 | ) | 11,891 | (20 | ) | 1,069 | 30,000 | ||||||||||||||||||||||
Recoveries | 16 | — | 840 | 571 | 15 | 115 | 231 | — | 1,788 | ||||||||||||||||||||||||||
Charge-offs | (4,504 | ) | (671 | ) | (23,059 | ) | (7,224 | ) | (289 | ) | (6,586 | ) | (728 | ) | — | (43,061 | ) | ||||||||||||||||||
Ending balance | $ | 14,217 | $ | 2,958 | $ | 22,683 | $ | 16,894 | $ | 1,257 | $ | 11,249 | $ | 1,277 | $ | 15,593 | $ | 86,128 |
At September 30, 2011 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Allowance individually evaluated for impairment | $ | 609 | $ | 14 | $ | 4,619 | $ | 1,891 | $ | — | $ | 436 | $ | 1,416 | $ | — | $ | 8,985 | |||||||||||||||||
Allowance collectively evaluated for impairment | 13,608 | 2,944 | 18,064 | 15,003 | 1,257 | 10,813 | (139 | ) | 15,593 | 77,143 | |||||||||||||||||||||||||
Total allowance for loan losses | $ | 14,217 | $ | 2,958 | $ | 22,683 | $ | 16,894 | $ | 1,257 | $ | 11,249 | $ | 1,277 | $ | 15,593 | $ | 86,128 |
At September 30, 2011 | |||||||||||||||||||||||||||||||||||
Commercial Real Estate | Multifamily | Construction and Land | Commercial Business | Agricultural business | One- to Four- Family | Consumer | Commitments and Unallocated | Total | |||||||||||||||||||||||||||
Loan balances: | |||||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 10,936 | $ | 1,997 | $ | 39,884 | $ | 12,321 | $ | 797 | $ | 17,338 | $ | 3,089 | $ | — | $ | 86,362 | |||||||||||||||||
Loans collectively evaluated for impairment | 1,050,579 | 132,149 | 276,399 | 568,555 | 210,774 | 622,571 | 277,857 | — | 3,138,884 | ||||||||||||||||||||||||||
Total loans | $ | 1,061,515 | $ | 134,146 | $ | 316,283 | $ | 580,876 | $ | 211,571 | $ | 639,909 | $ | 280,946 | $ | — | $ | 3,225,246 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance, beginning of the period | $ | 25,816 | $ | 71,205 | $ | 42,965 | $ | 100,872 | |||||||
Additions from loan foreclosures | 3,111 | 18,881 | 11,598 | 45,715 | |||||||||||
Additions from capitalized costs | 97 | 1,107 | 231 | 4,254 | |||||||||||
Dispositions of REO | (10,368 | ) | (19,440 | ) | (33,608 | ) | (70,771 | ) | |||||||
Gain (loss) on sale of REO | 2,955 | (725 | ) | 3,621 | (1,204 | ) | |||||||||
Valuation adjustments in the period | (1,255 | ) | (4,569 | ) | (4,451 | ) | (12,407 | ) | |||||||
Balance, end of the period | $ | 20,356 | $ | 66,459 | $ | 20,356 | $ | 66,459 |
Washington | Oregon | Idaho | Total | ||||||||||||
Commercial real estate | $ | 948 | $ | — | $ | 198 | $ | 1,146 | |||||||
One- to four-family construction | 90 | — | — | 90 | |||||||||||
Land development- commercial | 2,219 | — | 195 | 2,414 | |||||||||||
Land development- residential | 3,629 | 6,038 | 257 | 9,924 | |||||||||||
One- to four-family real estate | 4,394 | 2,388 | — | 6,782 | |||||||||||
Balance, end of period | $ | 11,280 | $ | 8,426 | $ | 650 | $ | 20,356 |
Core Deposit Intangibles | Other | Total | |||||||||
Balance, December 31, 2011 | $ | 6,322 | $ | 9 | $ | 6,331 | |||||
Amortization | (1,583 | ) | (8 | ) | (1,591 | ) | |||||
Balance, September 30, 2012 | $ | 4,739 | $ | 1 | $ | 4,740 |
Core Deposit Intangibles | Other | Total | |||||||||
Balance, December 31, 2010 | $ | 8,598 | $ | 11 | $ | 8,609 | |||||
Amortization | (2,276 | ) | (2 | ) | (2,278 | ) | |||||
Balance, December 31, 2011 | $ | 6,322 | $ | 9 | $ | 6,331 |
Year Ended | Core Deposit Intangibles | Other | Total | |||||||||
December 31, 2012 | $ | 2,092 | $ | 9 | $ | 2,101 | ||||||
December 31, 2013 | 1,908 | — | 1,908 | |||||||||
December 31, 2014 | 1,724 | — | 1,724 | |||||||||
December 31, 2015 | 598 | — | 598 | |||||||||
Thereafter | — | — | — | |||||||||
$ | 6,322 | $ | 9 | $ | 6,331 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance, beginning of the period | $ | 6,202 | $ | 5,369 | $ | 5,584 | $ | 5,441 | |||||||
Amounts capitalized | 931 | 573 | 2,784 | 1,226 | |||||||||||
Amortization (1) | (682 | ) | (448 | ) | (1,917 | ) | (1,173 | ) | |||||||
Balance, end of the period | $ | 6,451 | $ | 5,494 | $ | 6,451 | $ | 5,494 |
September 30, 2012 | December 31, 2011 | September 30, 2011 | ||||||||||||||||||
Amount | Percent of Total | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||||
Non-interest-bearing accounts | $ | 918,962 | 26.3 | % | $ | 777,563 | 22.4 | % | $ | 763,008 | 21.6 | % | ||||||||
Interest-bearing checking | 379,650 | 10.9 | 362,542 | 10.4 | 362,090 | 10.2 | ||||||||||||||
Regular savings accounts | 689,322 | 19.8 | 669,596 | 19.3 | 670,210 | 18.9 | ||||||||||||||
Money market accounts | 411,262 | 11.8 | 415,456 | 11.9 | 429,083 | 12.1 | ||||||||||||||
Total transaction and saving accounts | 2,399,196 | 68.8 | 2,225,157 | 64.0 | 2,224,391 | 62.8 | ||||||||||||||
Certificates which mature or reprice: | ||||||||||||||||||||
Within 1 year | 818,283 | 23.5 | 972,315 | 28.0 | 1,045,171 | 29.6 | ||||||||||||||
After 1 year, but within 3 years | 205,030 | 5.9 | 214,091 | 6.2 | 204,040 | 5.8 | ||||||||||||||
After 3 years | 63,863 | 1.8 | 64,091 | 1.8 | 63,832 | 1.8 | ||||||||||||||
Total certificate accounts | 1,087,176 | 31.2 | 1,250,497 | 36.0 | 1,313,043 | 37.2 | ||||||||||||||
Total deposits | $ | 3,486,372 | 100.0 | % | $ | 3,475,654 | 100.0 | % | $ | 3,537,434 | 100.0 | % | ||||||||
Included in total deposits: | ||||||||||||||||||||
Public fund transaction accounts | $ | 72,407 | 2.1 | % | $ | 72,064 | 2.1 | % | $ | 67,753 | 1.9 | % | ||||||||
Public fund interest-bearing certificates | 61,628 | 1.7 | % | 67,112 | 1.9 | % | 69,321 | 2.0 | % | |||||||||||
Total public deposits | $ | 134,035 | 3.8 | % | $ | 139,176 | 4.0 | % | $ | 137,074 | 3.9 | % | ||||||||
Total brokered deposits | $ | 21,403 | 0.6 | % | $ | 49,194 | 1.4 | % | $ | 59,576 | 1.7 | % |
Washington | Oregon | Idaho | Total | ||||||||||||
Total deposits | $ | 2,660,783 | $ | 597,826 | $ | 227,763 | $ | 3,486,372 |
September 30 2012 | December 31 2011 | September 30 2011 | |||||||||
Retail repurchase agreements | $ | 82,275 | $ | 102,131 | $ | 89,633 |
• | Level 1 – Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. |
• | Level 2 – Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. |
• | Level 3 – Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. |
• | The securities assets primarily consist of U.S. Government and agency obligations, municipal bonds, corporate bonds, single issue trust preferred securities (TPS), pooled trust preferred collateralized debt obligation securities (TRUP CDO), mortgage-backed securities, asset-backed securities, equity securities and certain other financial instruments. Level 1 measurements are based upon quoted prices in active markets. Level 2 measurements are generally based upon a matrix pricing model from an investment reporting and valuation service. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. Level 3 measurements are based primarily on unobservable inputs. In developing Level 3 measurements, management incorporates whatever market |
◦ | The few observable transactions and market quotations that were available were not reliable for purposes of determining fair value, |
◦ | An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs was equally or more representative of fair value than the market approach valuation technique, and |
◦ | The Company’s TRUP CDOs should be classified exclusively within Level 3 of the fair value hierarchy because of the significant assumptions required to determine fair value at the measurement date. |
• | Fair valuations for FHLB advances are estimated using fair market values provided by the lender, the FHLB of Seattle. The FHLB of Seattle prices advances by discounting the future contractual cash flows for individual advances using its current cost of funds curve to provide the discount rate. Management considers this to be a Level 2 input method. |
• | The fair valuations of junior subordinated debentures (TPS-related debt that the Company has issued) were also valued using discounted cash flows. As of September 30, 2012, all of these debentures carry interest rates that reset quarterly, using the three-month LIBOR index plus spreads of 1.38% to 3.35%. While the quarterly reset of the index on this debt would seemingly keep its fair value reasonably close to book value, the disparity in the fixed spreads above the index and the inability to determine realistic current market spreads, due to lack of new issuances and trades, resulted in having to rely more heavily on assumptions about what spread would be appropriate if market transactions were to take place. In periods prior to the third quarter of 2008, the discount rate used was based on recent issuances or quotes from brokers on the date of valuation for comparable bank holding companies and was considered to be a Level 2 input method. However, as noted above in the discussions of TPS securities and TRUP CDOs, because of the unprecedented disruption of certain financial markets, management concluded that there were insufficient transactions or other indicators to continue to reflect these measurements as Level 2 inputs. Due to this reliance on assumptions and not on directly observable transactions, management believes fair value for this instrument should follow a Level 3 input methodology. From March 2009 to March 2012, the Company used a discount rate of LIBOR plus 800 basis points to value its junior subordinated debentures. However, similar to the discussion above about the TPS securities, in June 2012, management assessed the performance of Banner and concluded that it has demonstrated sufficient improvement in asset quality, capital position and other performance measures to project sustainable profitability for the foreseeable future sufficient to warrant a reduction in the discount rate used in its fair value modeling. Since the discount rate used in the fair value modeling is the most sensitive unobservable estimate in the calculation, the Company again utilized input from the same independent third party noted above to help it establish an appropriate set of parameters to identify a reasonable range of discount rates for use in its fair value model. In valuing the debentures at June 30, 2012, these changes in credit quality were the primary factor contributing to a reduction in the discount rate from 800 basis points to 550 basis points. In further valuing the debentures at September 30, 2012, management evaluated the general market tightening of credit spreads as noted above and for the discount rate used the period-ending three-month LIBOR plus 525 basis points, resulting in a fair value loss on these instruments of $2.5 million in the current quarter ended September 30, 2012. |
• | Derivative instruments include interest rate commitments related to one- to four family loans and residential mortgage backed securities and interest rate swaps. The fair value of interest rate lock commitments and forward sales commitments are estimated using quoted or published market prices for similar instruments, adjusted for factors such as pull-through rate assumptions based on historical trends, where appropriate. The fair value of interest rate swaps is determined by using current market quotes on similar instruments provided by active broker/dealers in the swap market. Management considers these to be Level 2 input methods. The changes in the fair value of all of these derivative instruments are primarily attributable to changes in the level of market interest rates. The Company has elected to record the fair value of these derivative instruments on a net basis. |
September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Securities—available-for-sale | |||||||||||||||
U.S. Government and agency | $ | — | $ | 158,242 | $ | — | $ | 158,242 | |||||||
Municipal bonds | — | 40,003 | — | 40,003 | |||||||||||
Corporate bonds | — | 4,075 | — | 4,075 | |||||||||||
Mortgage-backed securities | — | 224,886 | — | 224,886 | |||||||||||
Asset-backed securities | — | 32,752 | — | 32,752 | |||||||||||
— | 459,958 | — | 459,958 | ||||||||||||
Securities—trading | |||||||||||||||
U.S. Government and agency | — | 1,642 | — | 1,642 | |||||||||||
Municipal bonds | — | 5,535 | — | 5,535 | |||||||||||
TPS and TRUP CDOs | — | — | 35,180 | 35,180 | |||||||||||
Mortgage-backed securities | — | 30,186 | — | 30,186 | |||||||||||
Equity securities and other | — | 50 | — | 50 | |||||||||||
— | 37,413 | 35,180 | 72,593 | ||||||||||||
Derivatives | |||||||||||||||
Interest rate lock commitments | — | 1,255 | — | 1,255 | |||||||||||
Interest rate swaps | — | 8,834 | — | 8,834 | |||||||||||
$ | — | $ | 507,460 | $ | 35,180 | $ | 542,640 | ||||||||
Liabilities: | |||||||||||||||
Advances from FHLB at fair value | $ | — | $ | 10,367 | $ | — | $ | 10,367 | |||||||
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | — | — | 73,071 | 73,071 | |||||||||||
Derivatives | |||||||||||||||
Interest rate sales forward commitments, net | — | 1,081 | — | 1,081 | |||||||||||
Interest rate swaps | — | 8,834 | — | 8,834 | |||||||||||
$ | — | $ | 20,282 | $ | 73,071 | $ | 93,353 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | |||||||||||||||
Securities—available-for-sale | |||||||||||||||
U.S. Government and agency | $ | — | $ | 338,971 | $ | — | $ | 338,971 | |||||||
Municipal bonds | — | 6,260 | — | 6,260 | |||||||||||
Corporate bonds | — | 27,310 | — | 27,310 | |||||||||||
Mortgage-backed securities | — | 93,254 | — | 93,254 | |||||||||||
Asset-backed securities | — | — | — | — | |||||||||||
— | 465,795 | — | 465,795 | ||||||||||||
Securities—trading | |||||||||||||||
U.S. Government and agency | — | 2,635 | — | 2,635 | |||||||||||
Municipal bonds | — | 5,962 | — | 5,962 | |||||||||||
TPS and TRUP CDOs | — | 4,600 | 30,455 | 35,055 | |||||||||||
Mortgage-backed securities | — | 36,673 | — | 36,673 | |||||||||||
Equity securities and other | — | 402 | — | 402 | |||||||||||
— | 50,272 | 30,455 | 80,727 | ||||||||||||
Derivatives | |||||||||||||||
Interest rate lock commitments | — | 617 | — | 617 | |||||||||||
Interest rate swaps | — | 5,667 | — | 5,667 | |||||||||||
$ | — | $ | 522,351 | $ | 30,455 | $ | 552,806 | ||||||||
Liabilities: | |||||||||||||||
Advances from FHLB at fair value | $ | — | $ | 10,533 | $ | — | $ | 10,533 | |||||||
Junior subordinated debentures net of unamortized deferred issuance costs at fair value | — | — | 49,988 | 49,988 | |||||||||||
Derivatives | |||||||||||||||
Interest rate sales forward commitments, net | — | 617 | — | 617 | |||||||||||
Interest rate swaps | — | 5,666 | — | 5,666 | |||||||||||
$ | — | $ | 16,816 | $ | 49,988 | $ | 66,804 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2012 | September 30, 2012 | ||||||||||||||
Level 3 Fair Value Inputs | Level 3 Fair Value Inputs | ||||||||||||||
TPS and TRUP CDOs | Borrowings— Junior Subordinated Debentures | TPS and TRUP CDOs | Borrowings— Junior Subordinated Debentures | ||||||||||||
Beginning balance | $ | 32,493 | $ | 70,553 | $ | 30,455 | $ | 49,988 | |||||||
Total gains or losses recognized | |||||||||||||||
Assets gains, including OTTI | 2,687 | — | 4,725 | — | |||||||||||
Liabilities (gains) | — | 2,518 | — | 23,083 | |||||||||||
Ending balance at September 30, 2012 | $ | 35,180 | $ | 73,071 | $ | 35,180 | $ | 73,071 | |||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2011 | September 30, 2011 | ||||||||||||||
Level 3 Fair Value Inputs | Level 3 Fair Value Inputs | ||||||||||||||
TPS and TRUP CDOs | Borrowings— Junior Subordinated Debentures | TPS and TRUP CDOs | Borrowings— Junior Subordinated Debentures | ||||||||||||
Beginning balance | $ | 30,728 | $ | 47,986 | $ | 29,661 | $ | 48,425 | |||||||
Total gains or losses recognized | |||||||||||||||
Assets gains, including OTTI | (91 | ) | — | 1,018 | — | ||||||||||
Liabilities (gains) | — | 784 | 345 | ||||||||||||
Paydowns and maturities | (17 | ) | — | (59 | ) | — | |||||||||
Ending balance at September 30, 2011 | $ | 30,620 | $ | 48,770 | $ | 30,620 | $ | 48,770 |
At or For the Nine Months Ended September 30, 2012 | |||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Losses Recognized During the Period | |||||||||||||||
Impaired loans | $ | 40,548 | $ | — | $ | — | $ | 40,548 | $ | 11,184 | |||||||||
REO | 20,356 | — | — | 20,356 | 3,196 | ||||||||||||||
At or For the Year Ended December 31, 2011 | |||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Losses Recognized During the Period | |||||||||||||||
Impaired loans | $ | 47,959 | $ | — | $ | — | $ | 47,959 | $ | 21,902 | |||||||||
REO | 42,965 | — | — | 42,965 | 7,325 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
Assets: | |||||||||||||||
Cash and due from banks | $ | 203,756 | $ | 203,756 | $ | 132,436 | $ | 132,436 | |||||||
Securities—trading | 72,593 | 72,593 | 80,727 | 80,727 | |||||||||||
Securities—available-for-sale | 459,958 | 459,958 | 465,795 | 465,795 | |||||||||||
Securities—held-to-maturity | 88,626 | 95,176 | 75,438 | 80,107 | |||||||||||
Loans receivable held for sale | 6,898 | 6,960 | 3,007 | 3,069 | |||||||||||
Loans receivable | 3,206,625 | 3,131,598 | 3,293,331 | 3,224,112 | |||||||||||
FHLB stock | 37,038 | 37,038 | 37,371 | 37,371 | |||||||||||
Bank-owned life insurance | 60,395 | 60,395 | 58,563 | 58,563 | |||||||||||
Mortgage servicing rights | 6,451 | 6,451 | 5,584 | 5,584 | |||||||||||
Derivatives | 10,090 | 10,090 | 6,284 | 6,284 | |||||||||||
Liabilities: | |||||||||||||||
Demand, interest checking and money market accounts | 1,709,874 | 1,646,377 | 1,555,561 | 1,487,080 | |||||||||||
Regular savings | 689,322 | 659,117 | 669,596 | 630,450 | |||||||||||
Certificates of deposit | 1,087,176 | 1,092,828 | 1,250,497 | 1,258,431 | |||||||||||
FHLB advances at fair value | 10,367 | 10,367 | 10,533 | 10,533 | |||||||||||
Junior subordinated debentures at fair value | 73,071 | 73,071 | 49,988 | 49,988 | |||||||||||
Other borrowings | 82,275 | 82,275 | 152,128 | 152,128 | |||||||||||
Derivatives | 9,915 | 9,915 | 6,283 | 6,283 | |||||||||||
Off-balance-sheet financial instruments: | |||||||||||||||
Commitments to originate loans | 1,255 | 1,255 | 617 | 617 | |||||||||||
Commitments to sell loans | (1,081 | ) | (1,081 | ) | (617 | ) | (617 | ) |
September 30 2012 | December 31 2011 | ||||||
Deferred tax assets: | |||||||
REO and loan loss reserves | $ | 33,697 | $ | 31,156 | |||
Deferred compensation | 5,567 | 6,032 | |||||
Net operating loss carryforward | 25,538 | 27,992 | |||||
Low income housing tax credits | 6,481 | 7,202 | |||||
Other | 309 | 309 | |||||
Total deferred tax assets | 71,592 | 72,691 | |||||
Deferred tax liabilities: | |||||||
FHLB stock dividends | (6,137 | ) | (6,137 | ) | |||
Depreciation | (2,854 | ) | (3,570 | ) | |||
Deferred loan fees, servicing rights and loan origination costs | (5,042 | ) | (4,863 | ) | |||
Intangibles | (1,455 | ) | (2,243 | ) | |||
Financial instruments accounted for under fair value accounting | (10,294 | ) | (16,499 | ) | |||
Total deferred tax liabilities | (25,782 | ) | (33,312 | ) | |||
Deferred income tax asset | 45,810 | 39,379 | |||||
Unrealized gain on securities available-for-sale | (1,336 | ) | (1,151 | ) | |||
Valuation allowance | (3,000 | ) | (38,228 | ) | |||
Deferred tax asset, net | $ | 41,474 | $ | — |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income (loss) | $ | 15,620 | $ | 6,030 | $ | 50,194 | $ | 387 | |||||||
Preferred stock dividend accrual | 1,227 | 1,550 | 4,327 | 4,650 | |||||||||||
Preferred stock discount accretion | 1,216 | 425 | 2,124 | 1,276 | |||||||||||
Gain on repurchase and retirement of preferred stock | (2,070 | ) | — | (2,070 | ) | — | |||||||||
Net income (loss) available to common shareholders | $ | 15,247 | $ | 4,055 | $ | 45,813 | $ | (5,539 | ) | ||||||
Basic weighted average shares outstanding | 19,172 | 16,809 | 18,428 | 16,540 | |||||||||||
Plus unvested restricted stock | 113 | 28 | 61 | 29 | |||||||||||
Diluted weighted shares outstanding | 19,285 | 16,837 | 18,489 | 16,569 | |||||||||||
Earnings (loss) per common share | |||||||||||||||
Basic | $ | 0.80 | $ | 0.24 | $ | 2.49 | $ | (0.33 | ) | ||||||
Diluted | $ | 0.79 | $ | 0.24 | $ | 2.48 | $ | (0.33 | ) |
Contract or Notional Amount | |||||||
September 30, 2012 | December 31, 2011 | ||||||
Commitments to extend credit | $ | 886,129 | $ | 772,153 | |||
Standby letters of credit and financial guarantees | 6,584 | 7,872 | |||||
Commitments to originate loans held for sale | 90,573 | 54,082 | |||||
Commitments to sell loans secured by one- to four residential properties | 78,705 | 54,082 |
September 30, 2012 | December 31, 2011 | ||||||
Notional amount | $ | 198,195 | $ | 117,110 | |||
Weighted average pay rate | 4.55 | % | 4.66 | % | |||
Weighted average receive rate | 4.07 | % | 3.85 | % | |||
Weighted average maturity in years | 7.8 | 7.7 | |||||
Unrealized gain included in total loans | $ | 3,495 | $ | 3,559 | |||
Unrealized gain included in other assets | $ | 5,340 | $ | 2,108 | |||
Unrealized loss included in other liabilities | $ | 8,834 | $ | 5,666 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total other operating income | $ | 11,684 | $ | 10,340 | $ | 13,591 | $ | 26,839 | |||||||
Less other-than-temporary impairment loss (recovery) | 409 | (3,000 | ) | 409 | (3,000 | ) | |||||||||
Less change in valuation of financial instruments carried at fair value | (473 | ) | 1,032 | 16,901 | (1,163 | ) | |||||||||
Total other operating income, excluding fair value adjustments and OTTI | $ | 11,620 | $ | 8,372 | $ | 30,901 | $ | 22,676 | |||||||
Net interest income before provision for loan losses | $ | 42,698 | $ | 41,728 | $ | 126,114 | $ | 122,985 | |||||||
Total other operating income | 11,684 | 10,340 | 13,591 | 26,839 | |||||||||||
Less other-than-temporary impairment loss (recovery) | 409 | (3,000 | ) | 409 | (3,000 | ) | |||||||||
Less change in valuation of financial instruments carried at fair value | (473 | ) | 1,032 | 16,901 | (1,163 | ) | |||||||||
Total revenue, excluding fair value adjustments and OTTI | $ | 54,318 | $ | 50,100 | $ | 157,015 | $ | 145,661 | |||||||
Net income | $ | 15,620 | $ | 6,030 | $ | 50,194 | $ | 387 | |||||||
Income tax expense (benefit) | 2,407 | — | (29,423 | ) | — | ||||||||||
Income before income taxes | 18,027 | 6,030 | 20,771 | 387 | |||||||||||
Less other-than-temporary impairment (recovery) loss | 409 | (3,000 | ) | 409 | (3,000 | ) | |||||||||
Less change in valuation of financial instruments carried at fair value | (473 | ) | 1,032 | 16,901 | (1,163 | ) | |||||||||
Pre-tax net income (loss), excluding fair value adjustments and OTTI | $ | 17,963 | $ | 4,062 | $ | 38,081 | $ | (3,776 | ) |
September 30 2012 | December 31 2011 | September 30 2011 | |||||||||
Stockholders’ equity | $ | 566,095 | $ | 532,450 | $ | 521,491 | |||||
Other intangible assets, net | 4,740 | 6,331 | 6,887 | ||||||||
Tangible equity | 561,355 | 526,119 | 514,604 | ||||||||
Preferred equity | 72,242 | 120,702 | 120,276 | ||||||||
Tangible common stockholders’ equity | $ | 489,113 | $ | 405,417 | $ | 394,328 | |||||
Total assets | $ | 4,268,664 | $ | 4,257,312 | $ | 4,291,764 | |||||
Other intangible assets, net | 4,740 | 6,331 | 6,887 | ||||||||
Tangible assets | $ | 4,263,924 | $ | 4,250,981 | $ | 4,284,877 | |||||
Tangible common stockholders’ equity to tangible assets | 11.47 | % | 9.54 | % | 9.20 | % |
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
Average Balances | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest-bearing deposits | $ | 142,437 | $ | 224,993 | $ | 125,668 | $ | 242,937 | ||||||||
Investment securities | 429,507 | 434,823 | 455,390 | 393,326 | ||||||||||||
Mortgage-backed obligations | 206,303 | 72,274 | 163,938 | 76,513 | ||||||||||||
FHLB stock | 37,346 | 37,371 | 37,363 | 37,371 | ||||||||||||
Total average interest-earning securities and cash equivalents | 815,593 | 769,461 | 782,359 | 750,147 | ||||||||||||
Loans receivable | 3,211,133 | 3,271,728 | 3,231,294 | 3,317,986 | ||||||||||||
Total average interest-earning assets | 4,026,726 | 4,041,189 | 4,013,653 | 4,068,133 | ||||||||||||
Non-interest-earning assets (including fair value adjustments on interest-earning assets) | 210,660 | 206,420 | 189,992 | 218,338 | ||||||||||||
Total average assets | $ | 4,237,386 | $ | 4,247,609 | $ | 4,203,645 | $ | 4,286,471 | ||||||||
Deposits | $ | 3,452,393 | $ | 3,498,594 | $ | 3,427,995 | $ | 3,521,272 | ||||||||
Advances from FHLB | 10,212 | 10,219 | 10,214 | 16,192 | ||||||||||||
Other borrowings | 85,759 | 136,713 | 109,530 | 151,932 | ||||||||||||
Junior subordinated debentures | 123,716 | 123,716 | 123,716 | 123,716 | ||||||||||||
Total average interest-bearing liabilities | 3,672,080 | 3,769,242 | 3,671,455 | 3,813,112 | ||||||||||||
Non-interest-bearing liabilities (including fair value adjustments on interest-bearing liabilities) | (14,710 | ) | (41,337 | ) | (29,691 | ) | (40,792 | ) | ||||||||
Total average liabilities | 3,657,370 | 3,727,905 | 3,641,764 | 3,772,320 | ||||||||||||
Equity | 580,016 | 519,704 | 561,881 | 514,151 | ||||||||||||
Total average liabilities and equity | $ | 4,237,386 | $ | 4,247,609 | $ | 4,203,645 | $ | 4,286,471 | ||||||||
Interest Rate Yield/Expense (rates are annualized) | ||||||||||||||||
Interest Rate Yield: | ||||||||||||||||
Interest-bearing deposits | 0.23 | % | 0.26 | % | 0.24 | % | 0.23 | % | ||||||||
Investment securities | 1.90 | 2.71 | 1.88 | 2.35 | ||||||||||||
Mortgage-backed obligations | 2.10 | 4.39 | 2.45 | 4.43 | ||||||||||||
FHLB stock | — | — | — | — | ||||||||||||
Total interest rate yield on securities and cash equivalents | 1.57 | 2.02 | 1.65 | 1.76 | ||||||||||||
Loans receivable | 5.45 | 5.53 | 5.46 | 5.61 | ||||||||||||
Total interest rate yield on interest-earning assets | 4.66 | 4.87 | 4.71 | 4.90 | ||||||||||||
Interest Rate Expense: | ||||||||||||||||
Deposits | 0.41 | 0.70 | 0.47 | 0.80 | ||||||||||||
Advances from FHLB | 2.49 | 2.48 | 2.50 | 2.53 | ||||||||||||
Other borrowings | 0.33 | 1.62 | 0.85 | 1.50 | ||||||||||||
Junior subordinated debentures | 2.59 | 3.34 | 2.83 | 3.37 | ||||||||||||
Total interest rate expense on interest-bearing liabilities | 0.48 | 0.82 | 0.56 | 0.92 | ||||||||||||
Interest spread | 4.18 | % | 4.05 | % | 4.15 | % | 3.98 | % | ||||||||
Net interest margin on interest earning assets | 4.22 | % | 4.10 | % | 4.20 | % | 4.04 | % | ||||||||
Additional Key Financial Ratios (income and expense ratios are annualized) | ||||||||||||||||
Return on average assets | 1.47 | % | 0.56 | % | 1.59 | % | 0.01 | % | ||||||||
Return on average equity | 10.71 | 4.60 | 11.93 | 0.10 | ||||||||||||
Average equity / average assets | 13.69 | 12.24 | 13.37 | 11.99 | ||||||||||||
Average interest-earning assets /average interest-bearing liabilities | 109.66 | 107.21 | 109.32 | 106.69 | ||||||||||||
Non-interest (other operating) income / average assets | 1.10 | 0.97 | 0.43 | 0.84 | ||||||||||||
Non-interest (other operating) expenses / average assets | 3.13 | 3.83 | 3.40 | 3.73 | ||||||||||||
Efficiency ratio (1) | 61.33 | 78.82 | 76.54 | 79.72 |
(1) | Other operating expense divided by the total of net interest income (before provision for loan losses) and other operating income (non-interest income) |
September 30 2012 | December 31 2011 | September 30 2011 | |||||||||
Nonaccrual Loans: (1) | |||||||||||
Secured by real estate: | |||||||||||
Commercial | $ | 5,574 | $ | 9,226 | $ | 8,908 | |||||
Multifamily | — | 362 | — | ||||||||
Construction and land | 7,450 | 27,731 | 35,841 | ||||||||
One- to four-family | 14,234 | 17,408 | 15,274 | ||||||||
Commercial business | 6,159 | 13,460 | 15,754 | ||||||||
Agricultural business, including secured by farmland | 645 | 1,896 | 1,301 | ||||||||
Consumer | 2,571 | 2,905 | 4,232 | ||||||||
36,633 | 72,988 | 81,310 | |||||||||
Loans more than 90 days delinquent, still on accrual: | |||||||||||
Secured by real estate: | |||||||||||
Commercial | — | — | — | ||||||||
Multifamily | — | — | — | ||||||||
Construction and land | — | — | — | ||||||||
One- to four-family | 2,037 | 2,147 | 1,111 | ||||||||
Commercial business | 15 | 4 | 687 | ||||||||
Agricultural business, including secured by farmland | — | — | — | ||||||||
Consumer | 26 | 173 | 41 | ||||||||
2,078 | 2,324 | 1,839 | |||||||||
Total non-performing loans | 38,711 | 75,312 | 83,149 | ||||||||
Securities on nonaccrual at fair value | — | 500 | 1,942 | ||||||||
REO and other repossessed assets held for sale, net | 20,356 | 43,039 | 66,538 | ||||||||
Total non-performing assets | $ | 59,067 | $ | 118,851 | $ | 151,629 | |||||
Total non-performing loans to loans before allowance for loan losses | 1.20 | % | 2.28 | % | 2.58 | % | |||||
Total non-performing loans to total assets | 0.91 | % | 1.77 | % | 1.94 | % | |||||
Total non-performing assets to total assets | 1.38 | % | 2.79 | % | 3.53 | % | |||||
TDRs (2) | $ | 62,438 | $ | 54,533 | $ | 51,990 | |||||
Loans 30-89 days past due and on accrual | $ | 7,739 | $ | 9,962 | $ | 7,895 |
(1) | For the three and nine months ended September 30, 2012, interest income of $520,000 and $2.6 million, respectively, would have been recorded had nonaccrual loans been current, and no interest income on these loans was included in net income for this period. |
(2) | These loans are performing under their restructured terms. |
Washington | Oregon | Idaho | Total | ||||||||||||
Secured by real estate: | |||||||||||||||
Commercial | $ | 5,514 | $ | — | $ | 60 | $ | 5,574 | |||||||
Construction and land | |||||||||||||||
One- to four-family construction | 3,028 | — | 242 | 3,270 | |||||||||||
Residential land acquisition & development | — | 1,452 | — | 1,452 | |||||||||||
Residential land improved lots | 292 | 1,361 | — | 1,653 | |||||||||||
Residential land unimproved | 47 | 688 | — | 735 | |||||||||||
Commercial land improved | 294 | — | — | 294 | |||||||||||
Commercial land unimproved | 46 | — | — | 46 | |||||||||||
Total construction and land | 3,707 | 3,501 | 242 | 7,450 | |||||||||||
One- to four-family | 12,397 | 2,157 | 1,717 | 16,271 | |||||||||||
Commercial business | 6,070 | 104 | — | 6,174 | |||||||||||
Agricultural business, including secured by farmland | 510 | — | 135 | 645 | |||||||||||
Consumer | 2,074 | 43 | 480 | 2,597 | |||||||||||
Total non-performing loans | 30,272 | 5,805 | 2,634 | 38,711 | |||||||||||
REO and other repossessed assets held for sale, net | 11,280 | 8,426 | 650 | 20,356 | |||||||||||
Total non-performing assets | $ | 41,552 | $ | 14,231 | $ | 3,284 | $ | 59,067 | |||||||
Percent of non-performing assets | 70 | % | 24 | % | 6 | % | 100 | % |
Amount | Percent of Total Non-Performing Loans | Collateral Securing the Indebtedness | Geographic Location | ||||||
$ | 2,646 | 6.8 | % | 14 single family residences | Greater Seattle-Puget Sound area | ||||
1,909 | 4.9 | Accounts receivable and inventory | Greater Seattle-Puget Sound area | ||||||
1,828 | 4.7 | Business assets, accounts receivable and vehicles | Greater Spokane, Washington area | ||||||
1,358 | 3.5 | Commercial building | Central Washington | ||||||
1,314 | 3.4 | Seven single family residences | Greater Portland, Oregon area | ||||||
1,236 | 3.3 | Third party notes secured by six commercial buildings plus miscellaneous partnership interest and other collateral | Greater Seattle-Puget Sound and Denver, Colorado areas | ||||||
1,111 | 2.9 | 61 acre camp, 15 building units | Central Washington | ||||||
1,086 | 2.8 | Four commercial lots and one commercial acreage lot | Greater Portland, Oregon area | ||||||
1,003 | 2.6 | One two-story mixed use structure and two parcels used as parking lots | Central Washington | ||||||
25,220 | 65.1 | Various collateral; relationships under $1.0 million | Sum of 145 loans located throughout our market areas | ||||||
$ | 38,711 | 100.0 | % | Total non-performing loans |
Amount | Percent of Total REO | REO Description | Geographic Location | ||||||
$ | 9,550 | 46.9 | % | 11 single family residences 25 residential lots 83 acres undeveloped buildable land One completed residential condominium unit | Greater Portland, Oregon area | ||||
6,107 | 30.0 | 13 single family residences One residential lot Nine parcels of commercial land Three parcels of undeveloped residential land One acre of buildable residential land | Greater Seattle-Puget Sound area | ||||||
2,527 | 12.4 | Three single family residences Three single family residences under construction 21 residential lots 13 acres of residential land One residence with 31 acres of agricultural land One parcel of bare land One residential duplex One 79 acre farm | Other Washington locations | ||||||
1,708 | 8.4 | Two single family residences 22 residential lots One parcel of residential land Three commercial office buildings 63 acres of forest land | Greater Spokane, Washington area | ||||||
464 | 2.3 | 56 residential lots Three commercial lots One commercial office building Two acres raw land zoned residential | Greater Boise, Idaho area | ||||||
$ | 20,356 | 100.0 | % |
Actual | Minimum for Capital Adequacy Purposes | Minimum to be Categorized as “Well-Capitalized” Under Prompt Corrective Action Provisions | |||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||
Banner Corporation—consolidated | |||||||||||||||||||||
Total capital to risk-weighted assets | $ | 643,089 | 19.01 | % | $ | 270,597 | 8.00 | % | n/a | n/a | |||||||||||
Tier 1 capital to risk-weighted assets | 600,343 | 17.74 | 135,298 | 4.00 | n/a | n/a | |||||||||||||||
Tier 1 leverage capital to average assets | 600,343 | 14.29 | 168,063 | 4.00 | n/a | n/a | |||||||||||||||
Banner Bank | |||||||||||||||||||||
Total capital to risk-weighted assets | 503,699 | 15.71 | 256,398 | 8.00 | $ | 320,497 | 10.00 | % | |||||||||||||
Tier 1 capital to risk-weighted assets | 463,180 | 14.45 | 128,199 | 4.00 | 192,298 | 6.00 | |||||||||||||||
Tier 1 leverage capital to average assets | 463,180 | 11.67 | 158,794 | 4.00 | 198,492 | 5.00 | |||||||||||||||
Islanders Bank | |||||||||||||||||||||
Total capital to risk-weighted assets | 31,768 | 17.13 | 14,835 | 8.00 | 18,544 | 10.00 | |||||||||||||||
Tier 1 capital to risk-weighted assets | 29,443 | 15.88 | 7,418 | 4.00 | 11,127 | 6.00 | |||||||||||||||
Tier 1 leverage capital to average assets | 29,443 | 12.60 | 9,346 | 4.00 | 11,683 | 5.00 |
Estimated Change in | ||||||||||||||
Change (in Basis Points) in Interest Rates (1) | Net Interest Income Next 12 Months | Net Economic Value | ||||||||||||
+400 | $ | 2,347 | 1.4 | % | $ | (154,947 | ) | (23.7 | )% | |||||
+300 | 1,592 | 1.0 | (118,356 | ) | (18.1 | ) | ||||||||
+200 | 853 | 0.5 | (77,605 | ) | (11.9 | ) | ||||||||
+100 | (385 | ) | (0.2 | ) | (36,145 | ) | (5.5 | ) | ||||||
0 | — | — | — | — | ||||||||||
-25 | 293 | 0.2 | 3,726 | 0.6 | ||||||||||
-50 | (665 | ) | (0.4 | ) | (1,917 | ) | (0.3 | ) |
Within 6 Months | After 6 Months Within 1 Year | After 1 Year Within 3 Years | After 3 Years Within 5 Years | After 5 Years Within 10 Years | Over 10 Years | Total | |||||||||||||||||||||
Interest-earning assets: (1) | |||||||||||||||||||||||||||
Construction loans | $ | 157,879 | $ | 13,573 | $ | 21,614 | $ | 4,264 | $ | 1,984 | $ | 46 | $ | 199,360 | |||||||||||||
Fixed-rate mortgage loans | 152,630 | 112,346 | 232,835 | 133,813 | 158,222 | 58,291 | 848,137 | ||||||||||||||||||||
Adjustable-rate mortgage loans | 434,001 | 147,945 | 326,520 | 244,663 | 8,318 | — | 1,161,447 | ||||||||||||||||||||
Fixed-rate mortgage-backed securities | 29,436 | 26,194 | 85,894 | 62,419 | 24,274 | 8,663 | 236,880 | ||||||||||||||||||||
Adjustable-rate mortgage-backed securities | 1,148 | 3,683 | 397 | — | — | — | 5,228 | ||||||||||||||||||||
Fixed-rate commercial/agricultural loans | 53,878 | 33,371 | 81,571 | 32,554 | 8,921 | 1,967 | 212,262 | ||||||||||||||||||||
Adjustable-rate commercial/agricultural loans | 485,434 | 9,579 | 37,571 | 15,538 | 424 | — | 548,546 | ||||||||||||||||||||
Consumer and other loans | 164,364 | 16,465 | 31,428 | 18,748 | 17,785 | 1,001 | 249,791 | ||||||||||||||||||||
Investment securities and interest-earning deposits | 316,750 | 42,622 | 56,675 | 31,585 | 57,221 | 68,999 | 573,852 | ||||||||||||||||||||
Total rate sensitive assets | 1,795,520 | 405,778 | 874,505 | 543,584 | 277,149 | 138,967 | 4,035,503 | ||||||||||||||||||||
Interest-bearing liabilities: (2) | |||||||||||||||||||||||||||
Regular savings and interest checking accounts | 175,410 | 157,688 | 367,938 | 367,938 | — | — | 1,068,974 | ||||||||||||||||||||
Money market deposit accounts | 205,631 | 123,379 | 82,252 | — | — | — | 411,262 | ||||||||||||||||||||
Certificates of deposit | 483,627 | 329,081 | 210,605 | 60,552 | 3,277 | 34 | 1,087,176 | ||||||||||||||||||||
FHLB advances | 10,000 | — | — | — | — | — | 10,000 | ||||||||||||||||||||
Other borrowings | — | — | — | — | — | — | — | ||||||||||||||||||||
Junior subordinated debentures | 123,716 | — | — | — | — | — | 123,716 | ||||||||||||||||||||
Retail repurchase agreements | 82,275 | — | — | — | — | — | 82,275 | ||||||||||||||||||||
Total rate sensitive liabilities | 1,080,659 | 610,148 | 660,795 | 428,490 | 3,277 | 34 | 2,783,403 | ||||||||||||||||||||
Excess (deficiency) of interest-sensitive assets over interest-sensitive liabilities | $ | 714,861 | $ | (204,370 | ) | $ | 213,710 | $ | 115,094 | $ | 273,872 | $ | 138,933 | $ | 1,252,100 | ||||||||||||
Cumulative excess (deficiency) of interest-sensitive assets | $ | 714,861 | $ | 510,491 | $ | 724,201 | $ | 839,295 | $ | 1,113,167 | $ | 1,252,100 | $ | 1,252,100 | |||||||||||||
Cumulative ratio of interest-earning assets to interest-bearing liabilities | 166.15 | % | 130.19 | % | 130.80 | % | 130.19 | % | 139.99 | % | 144.98 | % | 144.98 | % | |||||||||||||
Interest sensitivity gap to total assets | 16.75 | % | (4.79 | )% | 5.01 | % | 2.70 | % | 6.42 | % | 3.25 | % | 29.33 | % | |||||||||||||
Ratio of cumulative gap to total assets | 16.75 | % | 11.96 | % | 16.97 | % | 19.66 | % | 26.08 | % | 29.33 | % | 29.33 | % |
(1) | Adjustable-rate assets are included in the period in which interest rates are next scheduled to adjust rather than in the period in which they are due to mature, and fixed-rate assets are included in the period in which they are scheduled to be repaid based upon scheduled amortization, in each case adjusted to take into account estimated prepayments. Mortgage loans and other loans are not reduced for allowances for loan losses and non-performing loans. Mortgage loans, mortgage-backed securities, other loans and investment securities are not adjusted for deferred fees, unamortized acquisition premiums and discounts. |
(2) | Adjustable-rate liabilities are included in the period in which interest rates are next scheduled to adjust rather than in the period they are due to mature. Although regular savings, demand, interest checking, and money market deposit accounts are subject to immediate withdrawal, based on historical experience management considers a substantial amount of such accounts to be core deposits having significantly longer maturities. For the purpose of the gap analysis, these accounts have been assigned decay rates to reflect their longer effective maturities. If all of these accounts had been assumed to be short-term, the one-year cumulative gap of interest-sensitive assets would have been $(308) million, or (7.21)% of total assets at September 30, 2012. Interest-bearing liabilities for this table exclude certain non-interest-bearing deposits which are included in the average balance calculations in the table contained in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Comparison of Results of Operations for the Three and Nine Months Ended September 30, 2012 and 2011” of this report on Form 10-Q. |
(a) | Evaluation of Disclosure Controls and Procedures: An evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) was carried out under the supervision and with the participation of our Chief Executive Officer, Chief Financial Officer and several other members of our senior management as of the end of the period covered by this report. Based on their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2012, our disclosure controls and procedures were effective in ensuring that the information required to be disclosed by us in the reports it files or submits under the Exchange Act is (i) accumulated and communicated to our management (including the Chief Executive Officer and Chief Financial Officer) in a timely manner, and (ii) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. |
(b) | Changes in Internal Controls Over Financial Reporting: In the quarter ended September 30, 2012, there was no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit | Index of Exhibits |
3{a} | Amended and Restated Articles of Incorporation of Registrant [incorporated by reference to the Registrant’s Current Report on Form 8-K filed on April 28, 2010 (File No. 000-26584)]. |
3{b} | Certificate of designation relating to the Company’s Fixed Rate Cumulative Perpetual Preferred Stock Series A [incorporated by reference to the Registrant’s Current Report on Form 8-K filed on November 24, 2008 (File No. 000-26584)]. |
3{c} | Bylaws of Registrant [incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K filed on April 1, 2011 (File No. 0-26584)]. |
4{a} | Warrant to purchase shares of Company’s common stock dated November 21, 2008 [incorporated by reference to the Registrant’s Current Report on Form 8-K filed on November 24, 2008 (File No. 000-26584)]. |
4{b} | Letter Agreement (including Securities Purchase Agreement Standard Terms attached as Exhibit A) dated November 21, 2008 between the Company and the United States Department of the Treasury [incorporated by reference to the Registrant’s Current Report on Form 8-K filed on November 24, 2008 (File No. 000-26584)]. |
10{a} | Executive Salary Continuation Agreement with Gary L. Sirmon [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended March 31, 1996 (File No. 0-26584)]. |
10{b} | Employment Agreement with Michael K. Larsen [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended March 31, 1996 (File No. 0-26584)]. |
10{c} | Amended Employment Agreement with Mark J. Grescovich [incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on March 28, 2012 (File No. 000-265840]. |
10{d} | Executive Salary Continuation Agreement with Michael K. Larsen [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended March 31, 1996 (File No. 0-26584)]. |
10{e} | 1996 Stock Option Plan [incorporated by reference to Exhibit 99.1 to the Registration Statement on Form S-8 dated August 26, 1996 (File No. 333-10819)]. |
10{f} | 1996 Management Recognition and Development Plan [incorporated by reference to Exhibit 99.2 to the Registration Statement on Form S-8 dated August 26, 1996 (File No. 333-10819)]. |
10{g} | Consultant Agreement with Jesse G. Foster, dated as of December 19, 2003. [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 0-23584)]. |
10{h} | Supplemental Retirement Plan as Amended with Jesse G. Foster [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended March 31, 1997 (File No. 0-26584)]. |
10{i} | Employment Agreement with Lloyd W. Baker [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 0-26584)]. |
10{j} | Employment Agreement with D. Michael Jones [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2001 (File No. 0-26584)]. |
10{k} | Supplemental Executive Retirement Program Agreement with D. Michael Jones [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 0-26584)]. |
10{l} | Form of Supplemental Executive Retirement Program Agreement with Gary Sirmon, Michael K. Larsen, Lloyd W. Baker, Cynthia D. Purcell, Richard B. Barton and Paul E. Folz [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2001 and the exhibits filed with the Form 8-K on May 6, 2008]. |
10{m} | 1998 Stock Option Plan [incorporated by reference to exhibits filed with the Registration Statement on Form S-8 dated February 2, 1999 (File No. 333-71625)]. |
10{n} | 2001 Stock Option Plan [incorporated by reference to Exhibit 99.1 to the Registration Statement on Form S-8 dated August 8, 2001 (File No. 333-67168)]. |
10{o} | Form of Employment Contract entered into with Cynthia D. Purcell, Richard B. Barton, Paul E. Folz and Douglas M. Bennett [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 0-26584)]. |
10{p} | 2004 Executive Officer and Director Stock Account Deferred Compensation Plan [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2005 (File No. 0-26584)]. |
10{q} | 2004 Executive Officer and Director Investment Account Deferred Compensation Plan [incorporated by reference to exhibits filed with the Annual Report on Form 10-K for the year ended December 31, 2005 (File No. 0-26584)]. |
10{r} | Long-Term Incentive Plan [incorporated by reference to the exhibits filed with the Form 8-K on May 6, 2008]. |
10{s} | Form of Compensation Modification Agreement [incorporated by reference to the Registrant’s Current Report on Form 8-K filed on November 24, 2008 (File No. 000-26584)]. |
10{t} | 2005 Executive Officer and Director Stock Account Deferred Compensation Plan. |
10{u} | Entry into an Indemnification Agreement with each of the Company’s Directors [incorporated by reference to exhibits filed with the Form 8-K on January 29, 2010]. |
10(v) | 2012 Restricted Stock Plan [incorporated by reference as Appendix B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 21, 2012]. |
31.1 | Certification of Chief Executive Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer pursuant to the Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 | The following materials from Banner Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, formatted in Extensible Business Reporting Language (XBRL): (a) Consolidated Statements of Financial Condition; (b) Consolidated Statements of Operations; (c) Consolidated Statements of Comprehensive Income (Loss); (d) Consolidated Statements of Stockholders’ Equity; (e) Consolidated Statements of Cash Flows; and (f) Selected Notes to Consolidated Financial Statements. * |
*Pursuant to Rule 406T of Regulations S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
Banner Corporation | ||
November 6, 2012 | /s/Mark J. Grescovich | |
Mark J. Grescovich | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
November 6, 2012 | /s/Lloyd W. Baker | |
Lloyd W. Baker | ||
Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 of Banner Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; an |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
November 6, 2012 | /s/Mark J. Grescovich | |
Mark J. Grescovich | ||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2012 of Banner Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
November 6, 2012 | /s/Lloyd W. Baker | |
Lloyd W. Baker | ||
Chief Financial Officer |
• | the report fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, and |
• | the information contained in the report fairly presents, in all material respects, the Company’s financial condition and results of operations as of the dates and for the periods presented in the financial statements included in such report. |
November 6, 2012 | /s/Mark J. Grescovich | |
Mark J. Grescovich | ||
Chief Executive Officer | ||
November 6, 2012 | /s/Lloyd W. Baker | |
Lloyd W. Baker | ||
Chief Financial Officer |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Loans by Type) (Details) (USD $)
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | $ 3,213,523,000 | $ 3,296,338,000 | $ 3,225,246,000 | |||
Less allowance for loan losses | (78,783,000) | (80,221,000) | (82,912,000) | (86,128,000) | (92,000,000) | (97,401,000) |
Total loans | 3,134,740,000 | 3,213,426,000 | 3,139,118,000 | |||
Percent of total loans | 100.00% | 100.00% | 100.00% | |||
Unearned, unamortized loan fees (and costs) | 9,000,000 | 10,000,000 | 10,000,000 | |||
Commerical real estate - owner-occupied [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 477,871,000 | 469,806,000 | 474,863,000 | |||
Percent of total loans | 14.90% | 14.20% | 14.70% | |||
Commerical real estate - investment properties [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 604,265,000 | 621,622,000 | 586,652,000 | |||
Percent of total loans | 18.80% | 18.90% | 18.20% | |||
Multifamily real estate [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 138,716,000 | 139,710,000 | 134,146,000 | |||
Percent of total loans | 4.30% | 4.20% | 4.20% | |||
Commercial construction [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 28,598,000 | 42,391,000 | 38,124,000 | |||
Percent of total loans | 0.90% | 1.30% | 1.20% | |||
Multifamily construction [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 14,502,000 | 19,436,000 | 16,335,000 | |||
Percent of total loans | 0.50% | 0.60% | 0.50% | |||
One-to four-family construction [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 163,521,000 | 144,177,000 | 145,776,000 | |||
Percent of total loans | 5.10% | 4.40% | 4.50% | |||
Land and land development - residential [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 79,932,000 | 97,491,000 | 96,875,000 | |||
Percent of total loans | 2.50% | 3.00% | 3.00% | |||
Land and land development - commercial [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 14,242,000 | 15,197,000 | 19,173,000 | |||
Percent of total loans | 0.40% | 0.50% | 0.60% | |||
Commercial business [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 603,606,000 | 601,440,000 | 580,876,000 | |||
Percent of total loans | 18.80% | 18.20% | 18.00% | |||
Agricultural business, including secured by farming [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 219,084,000 | 218,171,000 | 211,571,000 | |||
Percent of total loans | 6.80% | 6.60% | 6.60% | |||
One- to four-family real estate [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 594,413,000 | 642,501,000 | 639,909,000 | |||
Percent of total loans | 18.50% | 19.50% | 19.80% | |||
Total consumer [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 274,773,000 | 284,396,000 | 280,946,000 | |||
Percent of total loans | 8.50% | 8.60% | 8.70% | |||
Consumer [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | 103,393,000 | 103,347,000 | 98,794,000 | |||
Percent of total loans | 3.20% | 3.10% | 3.10% | |||
Consumer secured by one- to four-family [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans outstanding | $ 171,380,000 | $ 181,049,000 | $ 182,152,000 | |||
Percent of total loans | 5.30% | 5.50% | 5.60% |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Newly Restructured Loans) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
contract
|
Sep. 30, 2011
contract
|
Sep. 30, 2012
contract
|
Sep. 30, 2011
contract
|
|||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 19 | [1],[2] | 11 | [1],[2] | 65 | [1],[2] | 28 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | $ 5,688 | [1],[2] | $ 3,557 | [1],[2] | $ 27,133 | [1],[2] | $ 11,284 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 5,688 | [1],[2] | 3,347 | [1],[2] | 27,133 | [1],[2] | 11,074 | [1],[2] | ||||
Commerical real estate - owner-occupied [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 1 | [1],[2] | 0 | [1],[2] | 1 | [1],[2] | 1 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 946 | [1],[2] | 0 | [1],[2] | 946 | [1],[2] | 189 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 946 | [1],[2] | 0 | [1],[2] | 946 | [1],[2] | 189 | [1],[2] | ||||
Commerical real estate - investment properties [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 3 | [1],[2] | 0 | [1],[2] | 6 | [1],[2] | 3 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 2,784 | [1],[2] | 0 | [1],[2] | 3,708 | [1],[2] | 1,976 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 2,784 | [1],[2] | 0 | [1],[2] | 3,708 | [1],[2] | 1,976 | [1],[2] | ||||
Multifamily real estate [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 0 | [1],[2] | 1 | [1],[2] | 2 | [1],[2] | 3 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 0 | [1],[2] | 455 | [1],[2] | 5,054 | [1],[2] | 2,452 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 0 | [1],[2] | 455 | [1],[2] | 5,054 | [1],[2] | 2,452 | [1],[2] | ||||
One-to four-family construction [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 11 | [1],[2] | 5 | [1],[2] | 19 | [1],[2] | 8 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 1,711 | [1],[2] | 1,566 | [1],[2] | 4,504 | [1],[2] | 3,848 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 1,711 | [1],[2] | 1,566 | [1],[2] | 4,504 | [1],[2] | 3,848 | [1],[2] | ||||
Construction and land - residential [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 0 | [1],[2] | 3 | [1],[2] | 6 | [1],[2] | 3 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 0 | [1],[2] | 681 | [1],[2] | 2,059 | [1],[2] | 681 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 0 | [1],[2] | 681 | [1],[2] | 2,059 | [1],[2] | 681 | [1],[2] | ||||
Commercial business [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 3 | [1],[2] | 2 | [1],[2] | 9 | [1],[2] | 3 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 94 | [1],[2] | 855 | [1],[2] | 1,309 | [1],[2] | 905 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 94 | [1],[2] | 645 | [1],[2] | 1,309 | [1],[2] | 695 | [1],[2] | ||||
One- to four-family residential [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 1 | [1],[2] | 0 | [1],[2] | 18 | [1],[2] | 4 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 153 | [1],[2] | 0 | [1],[2] | 9,182 | [1],[2] | 1,097 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | 153 | [1],[2] | 0 | [1],[2] | 9,182 | [1],[2] | 1,097 | [1],[2] | ||||
Consumer [Member]
|
||||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||||
Number of Contracts | 0 | [1],[2] | 0 | [1],[2] | 4 | [1],[2] | 3 | [1],[2] | ||||
Pre-Modification Outstanding Recorded Investments | 0 | [1],[2] | 0 | [1],[2] | 371 | [1],[2] | 136 | [1],[2] | ||||
Post-Modification Outstanding Recorded Investments | $ 0 | [1],[2] | $ 0 | [1],[2] | $ 371 | [1],[2] | $ 136 | [1],[2] | ||||
|
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS (LOSS) PER SHARE (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Earnings Per Share [Abstract] | |||||
Net income | $ 15,620 | $ 6,030 | $ 50,194 | $ 387 | $ 5,457 |
Preferred stock dividend accrual | 1,227 | 1,550 | 4,327 | 4,650 | 6,200 |
Preferred stock discount accretion | 1,216 | 425 | 2,124 | 1,276 | |
Gain on repurchase and retirement of preferred stock | (2,070) | 0 | (2,070) | 0 | |
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS | $ 15,247 | $ 4,055 | $ 45,813 | $ (5,539) | |
Basic weighted average shares outstanding | 19,172 | 16,809 | 18,428 | 16,540 | |
Plus unvested restricted stock | 113 | 28 | 61 | 29 | |
Diluted weighted shares outstanding | 19,285 | 16,837 | 18,489 | 16,569 | |
Earnings (loss) per common share | |||||
Basic (in dollars per share) | $ 0.80 | $ 0.24 | $ 2.49 | $ (0.33) | |
Diluted (in dollars per share) | $ 0.79 | $ 0.24 | $ 2.48 | $ (0.33) |
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS (LOSS) PER SHARE (EPS) (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Weighted Shares Outstanding | The following table reconciles basic to diluted weighted shares outstanding used to calculate earnings per share data dollars and shares (in thousands, except per share data):
|
CALCULATION OF WEIGHTED AVERAGE SHARES OUTSTANDING FOR EARNINGS (LOSS) PER SHARE - Textuals (Details)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Stock Options [Member]
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 47,671 |
Warrant [Member]
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 243,998 |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Risk-Rate and Non-Risk Rated Loans by Grade and Other Characteristic) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
||||||
---|---|---|---|---|---|---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | $ 3,213,523 | $ 3,296,338 | $ 3,225,246 | ||||||
Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 1,082,136 | 1,091,428 | |||||||
Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 138,716 | 139,710 | 134,146 | ||||||
Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 300,795 | 318,692 | |||||||
Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 603,606 | 601,440 | 580,876 | ||||||
Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 219,084 | 218,171 | 211,571 | ||||||
One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 594,413 | 642,501 | 639,909 | ||||||
Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 274,773 | 284,396 | 280,946 | ||||||
Pass (Risk Ratings 1-5) [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 3,030,628 | [1] | 3,034,355 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 1,018,552 | [1] | 1,003,990 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 131,782 | [1] | 132,108 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 263,281 | [1] | 257,685 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 560,320 | [1] | 542,625 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 217,084 | [1] | 213,512 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 571,146 | [1] | 607,793 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 268,463 | [1] | 276,642 | [1] | |||||
Pass (Risk Ratings 1-5) [Member] | Small Credit-Scored Business Loans [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 70,000 | 58,000 | |||||||
Special mention [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 36,894 | 53,654 | |||||||
Special mention [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 19,223 | 29,751 | |||||||
Special mention [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 5,000 | |||||||
Special mention [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 3,267 | 3,359 | |||||||
Special mention [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 13,482 | 13,447 | |||||||
Special mention [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 331 | 923 | |||||||
Special mention [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 440 | 772 | |||||||
Special mention [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 151 | 402 | |||||||
Substandard [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 145,943 | 207,993 | |||||||
Substandard [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 44,361 | 57,687 | |||||||
Substandard [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 6,934 | 2,602 | |||||||
Substandard [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 34,189 | 57,648 | |||||||
Substandard [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 29,804 | 45,032 | |||||||
Substandard [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 1,669 | 3,736 | |||||||
Substandard [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 22,827 | 33,936 | |||||||
Substandard [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 6,159 | 7,352 | |||||||
Doubtful [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 58 | 336 | |||||||
Doubtful [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Doubtful [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Doubtful [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 58 | 0 | |||||||
Doubtful [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 336 | |||||||
Doubtful [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Doubtful [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Doubtful [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Loss [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 0 | |||||||
Performing loans [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 3,174,812 | 3,221,026 | |||||||
Performing loans [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 1,076,562 | 1,082,202 | |||||||
Performing loans [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 138,716 | 139,348 | |||||||
Performing loans [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 293,345 | 290,961 | |||||||
Performing loans [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 597,433 | 587,976 | |||||||
Performing loans [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 218,438 | 216,275 | |||||||
Performing loans [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 578,142 | 622,946 | |||||||
Performing loans [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 272,176 | 281,318 | |||||||
Nonperforming loans [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 38,711 | 75,312 | [2] | ||||||
Nonperforming loans [Member] | Commercial real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 5,574 | 9,226 | [2] | ||||||
Nonperforming loans [Member] | Multifamily real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 0 | 362 | [2] | ||||||
Nonperforming loans [Member] | Construction and Land [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 7,450 | 27,731 | [2] | ||||||
Nonperforming loans [Member] | Commercial business [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 6,173 | 13,464 | [2] | ||||||
Nonperforming loans [Member] | Agricultural business, including secured by farming [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 646 | 1,896 | [2] | ||||||
Nonperforming loans [Member] | One- to four-family real estate [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | 16,271 | 19,555 | [2] | ||||||
Nonperforming loans [Member] | Consumer [Member]
|
|||||||||
Financing Receivable, Recorded Investment [Line Items] | |||||||||
Total loans outstanding | $ 2,597 | $ 3,078 | [2] | ||||||
|
INCOME TAXES AND DEFERRED TAXES (Deferred Tax Asset and Liability) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Deferred tax assets: | |||
REO and loan loss reserves | $ 33,697 | $ 31,156 | |
Deferred compensation | 5,567 | 6,032 | |
Net operating loss carryforward | 25,538 | 27,992 | |
Low income housing tax credits | 6,481 | 7,202 | |
Other | 309 | 309 | |
Total deferred tax assets | 71,592 | 72,691 | |
Deferred tax liabilities: | |||
FHLB stock dividends | (6,137) | (6,137) | |
Depreciation | (2,854) | (3,570) | |
Deferred loan fees, servicing rights and loan origination costs | (5,042) | (4,863) | |
Intangibles | (1,455) | (2,243) | |
Financial instruments accounted for under fair value accounting | (10,294) | (16,499) | |
Total deferred tax liabilities | (25,782) | (33,312) | |
Deferred income tax asset | 45,810 | 39,379 | |
Unrealized gain on securities available-for-sale | (1,336) | (1,151) | |
Valuation Allowance | (3,000) | (7,000) | (38,228) |
Deferred tax assets, net | $ 41,474 | $ 0 |
INCOME TAXES AND DEFERRED TAXES (Textuals) (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
|
Operating Loss Carryforwards [Line Items] | |||
Valuation Allowance, Amount Utilized | $ 4,000,000 | ||
Valuation Allowance | 3,000,000 | 7,000,000 | 38,228,000 |
Bad Debt Reserve for Tax Purposes of US Savings and Loan Associations or Other Qualified Thrift Lender [Member]
|
|||
Operating Loss Carryforwards [Line Items] | |||
Tax Basis Bad Debt Reserves, No Income Tax Liability | 5,400,000 | 5,400,000 | |
Bad Debt Reserves, Amount of Unrecognized Deferred Tax Liability | 1,900,000 | ||
Internal Revenue Service (IRS) [Member]
|
|||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 66,500,000 | ||
Tax Credit Carryforward | 5,800,000 | ||
State and Local Jurisdiction [Member]
|
|||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 17,100,000 | ||
Tax Credit Carryforward | $ 711,000 |
FAIR VALUE ACCOUNTING AND MEASUREMENT (Unobservable Inputs Rollforward) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Junior Subordinated Debt [Member]
|
||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 70,553 | $ 47,986 | $ 49,988 | $ 48,425 |
Liabilities (gains) | 2,518 | 784 | 23,083 | 345 |
Paydowns and maturities | 0 | |||
Ending balance | 73,071 | 48,770 | 73,071 | 48,770 |
TPS and TRUP CDOs [Member]
|
||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 32,493 | 30,728 | 30,455 | 29,661 |
Assets gains, including OTTI | 2,687 | (91) | 4,725 | 1,018 |
Paydowns and maturities | (17) | (59) | ||
Ending balance | $ 35,180 | $ 30,620 | $ 35,180 | $ 30,620 |
BASIS OF PRESENTATION AND CRITICAL ACCOUNTING POLICIES (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements include the accounts of Banner Corporation (the Company or Banner), a bank holding company incorporated in the State of Washington and its wholly-owned subsidiaries, Banner Bank and Islanders Bank (the Banks). These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Certain reclassifications have been made to the 2011 Consolidated Financial Statements and/or schedules to conform to the 2012 presentation. These reclassifications may have affected certain ratios for the prior periods. The effect of these reclassifications is considered immaterial. All significant intercompany transactions and balances have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company’s accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, management has identified several accounting policies that, due to the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of Banner’s financial statements. These policies relate to (i) the methodology for the recognition of interest income, (ii) determination of the provision and allowance for loan and lease losses, (iii) the valuation of financial assets and liabilities recorded at fair value, including other-than-temporary impairment (OTTI) losses, (iv) the valuation of intangibles, such as core deposit intangibles and mortgage servicing rights, (v) the valuation of real estate held for sale and (vi) the valuation of or recognition of deferred tax assets and liabilities. These policies and judgments, estimates and assumptions are described in greater detail in subsequent notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission (SEC). Management believes that the judgments, estimates and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to these critical accounting policies, the use of other judgments, estimates and assumptions could result in material differences in the Company’s results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on these estimates and the Company’s financial condition and operating results in future periods. The information included in this Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC (2011 Form 10-K). Interim results are not necessarily indicative of results for a full year. |
Segment Reporting Policy | The Company is managed by legal entity and not by lines of business. Each of the Banks is a community oriented commercial bank chartered in the State of Washington. The Banks’ primary business is that of a traditional banking institution, gathering deposits and originating loans for portfolio in its respective primary market areas. The Banks offer a wide variety of deposit products to their consumer and commercial customers. Lending activities include the origination of real estate, commercial/agriculture business and consumer loans. Banner Bank is also an active participant in the secondary market, originating residential loans for sale on both a servicing released and servicing retained basis. In addition to interest income on loans and investment securities, the Banks receive other income from deposit service charges, loan servicing fees and from the sale of loans and investments. The performance of the Banks is reviewed by the Company’s executive management and Board of Directors on a monthly basis. All of the executive officers of the Company are members of Banner Bank’s management team. Generally accepted accounting principles establish standards to report information about operating segments in annual financial statements and require reporting of selected information about operating segments in interim reports to stockholders. The Company has determined that its current business and operations consist of a single business segment. |
LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES (Land and Land Development by State) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 3,213,523 | $ 3,296,338 | $ 3,225,246 |
Percent of total loans | 100.00% | 100.00% | 100.00% |
Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,161,333 | ||
Percent of total loans | 67.30% | ||
Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 671,391 | ||
Percent of total loans | 20.90% | ||
Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 283,917 | ||
Percent of total loans | 8.80% | ||
Land and land development [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 94,174 | ||
Percent of total loans | 100.00% | ||
Land and land development [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 48,386 | ||
Percent of total loans | 51.40% | ||
Land and land development [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 41,888 | ||
Percent of total loans | 44.50% | ||
Land and land development [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,900 | ||
Percent of total loans | 4.10% | ||
Land and land development - residential [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 79,932 | 97,491 | 96,875 |
Percent of total loans | 2.50% | 3.00% | 3.00% |
Land and land development - residential [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 39,181 | ||
Land and land development - residential [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 38,781 | ||
Land and land development - residential [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,970 | ||
Land and land development - residential [Member] | Acquisition and Development [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 23,759 | ||
Land and land development - residential [Member] | Acquisition and Development [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 6,229 | ||
Land and land development - residential [Member] | Acquisition and Development [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 15,820 | ||
Land and land development - residential [Member] | Acquisition and Development [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,710 | ||
Land and land development - residential [Member] | Improved Land and Lots [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 43,260 | ||
Land and land development - residential [Member] | Improved Land and Lots [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 22,727 | ||
Land and land development - residential [Member] | Improved Land and Lots [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 20,273 | ||
Land and land development - residential [Member] | Improved Land and Lots [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 260 | ||
Land and land development - residential [Member] | Unimproved Land [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 12,913 | ||
Land and land development - residential [Member] | Unimproved Land [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 10,225 | ||
Land and land development - residential [Member] | Unimproved Land [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,688 | ||
Land and land development - residential [Member] | Unimproved Land [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 0 | ||
Land and land development - commercial and industrial [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 14,242 | 15,197 | 19,173 |
Percent of total loans | 0.40% | 0.50% | 0.60% |
Land and land development - commercial and industrial [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 9,205 | ||
Land and land development - commercial and industrial [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,107 | ||
Land and land development - commercial and industrial [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,930 | ||
Land and land development - commercial and industrial [Member] | Acquisition and Development [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,854 | ||
Land and land development - commercial and industrial [Member] | Acquisition and Development [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,370 | ||
Land and land development - commercial and industrial [Member] | Acquisition and Development [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 0 | ||
Land and land development - commercial and industrial [Member] | Acquisition and Development [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 484 | ||
Land and land development - commercial and industrial [Member] | Improved Land and Lots [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 4,166 | ||
Land and land development - commercial and industrial [Member] | Improved Land and Lots [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 3,470 | ||
Land and land development - commercial and industrial [Member] | Improved Land and Lots [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 138 | ||
Land and land development - commercial and industrial [Member] | Improved Land and Lots [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 558 | ||
Land and land development - commercial and industrial [Member] | Unimproved Land [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 8,222 | ||
Land and land development - commercial and industrial [Member] | Unimproved Land [Member] | Washington [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 4,365 | ||
Land and land development - commercial and industrial [Member] | Unimproved Land [Member] | Oregon [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,969 | ||
Land and land development - commercial and industrial [Member] | Unimproved Land [Member] | Idaho [Member]
|
|||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 888 |
DEPOSITS AND CUSTOMER REPURCHASE AGREEMENTS (Retail Repurchase Agreements) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|---|
Banking and Thrift [Abstract] | |||
Retail repurchase agreements | $ 82,275 | $ 102,131 | $ 89,633 |
REAL ESTATE OWNED, NET (REO by Type and Geographic Location by State) (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | $ 20,356 | $ 25,816 | $ 42,965 | $ 66,459 | $ 71,205 | $ 100,872 |
Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 11,280 | |||||
Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 8,426 | |||||
Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 650 | |||||
Commercial real estate [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 1,146 | |||||
Commercial real estate [Member] | Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 948 | |||||
Commercial real estate [Member] | Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 0 | |||||
Commercial real estate [Member] | Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 198 | |||||
One-to four-family construction [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 90 | |||||
One-to four-family construction [Member] | Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 90 | |||||
One-to four-family construction [Member] | Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 0 | |||||
One-to four-family construction [Member] | Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 0 | |||||
Land development- commercial [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 2,414 | |||||
Land development- commercial [Member] | Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 2,219 | |||||
Land development- commercial [Member] | Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 0 | |||||
Land development- commercial [Member] | Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 195 | |||||
Land development-residential [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 9,924 | |||||
Land development-residential [Member] | Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 3,629 | |||||
Land development-residential [Member] | Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 6,038 | |||||
Land development-residential [Member] | Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 257 | |||||
One- to four-family real estate [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 6,782 | |||||
One- to four-family real estate [Member] | Washington [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 4,394 | |||||
One- to four-family real estate [Member] | Oregon [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | 2,388 | |||||
One- to four-family real estate [Member] | Idaho [Member]
|
||||||
Real Estate Owned [Line Items] | ||||||
Real Estate Owned, Net | $ 0 |
FHLB STOCK (Details) (USD $)
|
0 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 24, 2012
|
Sep. 30, 2012
|
Sep. 30, 2012
|
Dec. 31, 2011
|
|
Banking and Thrift [Abstract] | ||||
Federal Home Loan Bank Stock, Par Value Per Share | $ 100 | $ 100 | ||
Dividend Income on FHLB Stock | $ 0 | $ 0 | ||
Federal Home Loan Bank stock | 37,038,000 | 37,038,000 | 37,371,000 | |
Impairment Recognized on FHLB Stock | 0 | |||
Proceeds from Sale of Federal Reserve Stock | $ 333,000 |
INTANGIBLE ASSETS AND MORTGAGE SERVICING RIGHTS (Finite-Lived Intangible Assets) (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
Dec. 31, 2007
acquisition
|
|
Finite-Lived Intangible Assets [Line Items] | |||
Number of Bank Acquisitions, Created Finite-Lived Intangible Asset | 3 | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance, beginning of period | $ 6,331 | $ 8,609 | |
Amortization | (1,591) | (2,278) | |
Balance, end of period | 4,740 | 6,331 | |
Core Deposit Intangibles [Member]
|
|||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance, beginning of period | 6,322 | 8,598 | |
Amortization | (1,583) | (2,276) | |
Balance, end of period | 4,739 | 6,322 | |
Other [Member]
|
|||
Finite-lived Intangible Assets [Roll Forward] | |||
Balance, beginning of period | 9 | 11 | |
Amortization | (8) | (2) | |
Balance, end of period | $ 1 | $ 9 |