Banner in Walla Walla, Wash., reported a big increase in second-quarter earnings thanks to its recent branch acquisitions in Oregon.

Net income increased 44% from a year earlier, to $17 million, Banner said in a press release Thursday. It earned 88 cents per share.

Banner gained approximately $211 million in deposits and $88 million in loans from the acquisition last month of six branches in southwestern Oregon from Umpqua Holdings. Sterling Financial, which Umpqua bought in April, had originally owned the branches.

Banner's total loans increased nearly 15%, to $3.7 billion, primarily driven by a 25% increase in commercial and multifamily real estate loans. Total assets increased 12%, to $4.75 billion.

Net interest income improved 3.7%, to $43.8 million. Revenues from core operations increased 2% to $54.4 million. The net interest margin was 4.06%, up from 4.20% a year earlier, reflecting improvements in Banner's earning-assets mix.

Total deposits increased 13%, to $3.92 billion, as core deposits increased 19%. Deposit fees and other service charges increased 11%, to $7.3 million, primarily because of marketing initiatives, the release said.

Asset quality improved as nonperforming assets decreased 27%, to $24.2 million; there was no provision for loan losses.

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