Banner Corporation Completes Restructuring Transaction and Reports Fourth Quarter and Year-End Financial Results.
Business Wire › January 26, 2006
Linked as:
Extract
Banner Corporation Completes Restructuring Transaction and Reports Fourth Quarter and Year-End Financial Results.
WALLA WALLA, Wash. -- Banner Corporation (Nasdaq:BANR), the parent company of Banner Bank, today reported fourth quarter earnings from recurring operations (see footnote below), exclusive of the balance-sheet restructuring transactions announced and completed in the fourth quarter of 2005, were $5.6 million, or $0.47 per diluted share. In the fourth quarter of 2004, earnings were $5.3 million, or $0.45 per diluted share. For the full year ended December 31, 2005, earnings from recurring operations, exclusive of the restructuring charges, were $21.0 million, or $1.76 per diluted share, compared to earnings of $19.3 million, or $1.65 per diluted share for the prior year.
Late in the fourth quarter of 2005, Banner completed a balance-sheet restructuring designed to pay down high interest rate FHLB borrowings and reduce the size of the investment portfolio. To effect the restructuring, Banner sold $207 million of securities at a $7.3 million loss before tax and used a portion of the proceeds of the sale to prepay $142 million of high-cost, fixed-term Federal Home Loan Bank (FHLB) borrowings, incurring pre-tax prepayment penalties of $6.1 million. The remainder of the proceeds were applied to repay other relatively high-cost short-term borrowings from the FHLB. The total cost of the transactions was $13.4 million, with a tax benefit of $4.8 million, resulting in an after tax cost of $8.6 million or $0.72 per diluted share, whic...See the full content of this document
Sponsored links
