Banner(US:BANR)2023-07-20 17:27Financial Performance Highlights - Loan growth reached $312 million, representing an annualized growth rate of 12%[4] - Total loan originations (excluding HFS) amounted to $909 million[4] - Total deposits experienced a slight decline of $55 million, a decrease of 0.4%[4] - Core deposits decreased by $462 million, representing a 3.8% decline, but still constitute 90% of total deposits[4] - Net interest margin (tax equivalent) decreased by 30 basis points to 4.00%[4] - The efficiency ratio (adjusted, non-GAAP) increased by 435 basis points to 58.6%[4] Risk and Credit Quality - Provision for credit losses was $6.8 million, driven by loan growth and a deteriorating economic forecast, including $2.0 million provision for credit losses related to AFS securities[4] - Allowance for credit losses on loans was 1.38% of total loans[4] - Non-performing assets remained low at 0.18% of total assets, a slight increase from 0.17% in the previous quarter[4] Revenue and Growth Strategy - The company focuses on growing revenue by offering a super community bank value proposition, guarding and improving reputation, and growing market share[8] - The company operates in a geography with strong population growth, with Washington, Oregon, and Idaho experiencing growth rates of 9%, 5%, and 20% respectively[9] - Noninterest income includes $159 million from deposit fees, $666 million from mortgage banking, $16.1 million from deposit fees, and $64.9 million from other fees[19]