Banner Corp. (BANR) in Walla Walla, Wash., reported higher than expected earnings because of a surge in mortgage-banking income and service fees.
The $4.3 billion-asset company's net income rose 188% from a year earlier, to $14.7 million. Per-share earnings of 69 cents beat average estimate of analysts polled by Bloomberg by 9 cents.
Net interest income was flat from a year earlier, at $41.5 million. Its loan-loss provision fell $4 million from a year earlier, to $1 million. The net interest margin widened by 2 basis points from a year earlier, to 4.09%.
Noninterest income rose 86% from a year earlier, to $13.3 million, because of increases in deposit-fee income and the sale of U.S. Small Business Administration loans.
Banner also sharply reduced its nonperforming assets, bringing the total down to $50 million from $119 million a year earlier.