Banner Corp. in Walla Walla, Wash., reported higher quarterly earnings as it continued to benefit from a recent acquisition.
The $9.9 billion-asset company said in a press release Tuesday that its second-quarter profit rose 58% from a year earlier to $21 million, or 61 cents a share. The comparisons were skewed some by the company's October purchase of AmericanWest Bank.
Net interest income rose 81% to $93 million. The company touted its ability to convert about $420 million of AmericaWest's interest-bearing deposits into non-interest-bearing deposits.
Noninterest income increased 27% to $20.5 million because of higher deposit fees and other service charges.
Banner recorded a $2 million loan-loss provision; it had no provision a year earlier. The company said the provision reflected "the post-purchase renewal-driven migration of acquired loans out of the discounted loan portfolio."
Noninterest expense rose 67% to $79.8 million, largely due to merger-related expenses tied to obtaining AmericanWest's 98 branches.