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Industry observers have commended the Walla Walla, Wash., company for righting the ship after it was hammered by exposure to bad construction loans. But now investors are wondering how it will grow in a weak economy.
September 20
The Walla Walla, Wash., company Banner (BANR) said profit rose on improved income from mortgage banking, deposit fees and other service charges.
Net income rose to $15.2 million, or 79 cents per share, from $4 million, or 24 cents, a year earlier. The results included a $2.1 million gain tied to its repurchase of about 40% of its senior preferred stock during the quarter, as well as other items.
Noninterest income rose 13% to $11.7 million, largely because of a rise in income from mortgage banking. Net interest income, before a provision for loan losses, rose 2.3% to $42.7 million.
Banner's net interest margin widened to 4.22% from 4.1%. Lower deposit costs contributed to the improved margin, the $4.3 billion-asset company said. Banner has cut deposit costs by
