Banner Corporation (NASDAQ:BANR) Q1 2018 Earnings Conference Call - Final Transcript

Apr 24, 2018 • 11:00 am ET

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Banner Corporation (NASDAQ:BANR) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, and welcome to the Banner Corporation First Quarter 2018 Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mark Grescovich, President and CEO. Please go ahead.

Executive
Mark J. Grescovich

Thank you, Rachelle, and good morning, everyone. I would also like to welcome you to the first quarter 2018 earnings call for Banner Corporation. As is customary, joining me on the call today is Rick Barton, our Chief Credit Officer; Peter Conner, our Chief Financial Officer of Banner Bank; Albert Marshall, the Secretary of the Corporation; and in his final earnings call, Lloyd Baker, our Chief Financial Officer of the Corporation. Albert, would you please read our forward-looking safe harbor statement?

Executive
Albert H. Marshall

Certainly. Good morning. Our presentation today discusses Banner's business outlook and will include forward-looking statements. Those statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner's general outlook for economic and other conditions. We also may make other forward-looking statements in the question-and-answer period following management's discussion. These forward-looking statements are subject to a number of risks and uncertainties, and actual results may differ materially from those discussed today.

Information on the risk factors that could cause actual results to differ are available from the earnings press release that was released yesterday and a recently filed Form 10-K for the year-ended December 31, 2017. Forward-looking statements are effective only as of the date they are made, and Banner assumes no obligation to update information concerning its expectations. Thank you.

Executive
Mark J. Grescovich

Thank you, Al. As announced, Banner Corporation reported a net profit available to common shareholders of $28.8 million or $0.89 per diluted share for the quarter ended March 31, 2018. This compared to a net profit to common shareholders of $0.72 per share for the first quarter of 2017 and a loss of $0.41 per share in the fourth quarter of 2017. Excluding the impact of merger and acquisition expenses, gains and losses on the sale of securities and changes in fair value of financial instruments, earnings were $26.3 million for the first quarter 2018 compared to $24.2 million in the first quarter of 2017, an increase of 9%. Due to the hard work of our employees throughout the company, we are successfully executing on our strategies and priorities to deliver sustainable profitability and revenue growth to Banner.

Our core operating performance continued to reflect the success of our proven client acquisition strategies, which are producing strong core revenue, and we are benefiting from the successful integration of our recent acquisitions, which have had a dramatic impact on the scale and reach of the company and are providing a great opportunity for revenue growth. Our first quarter 2018 performance clearly demonstrates that our strategic plan continues to be effective and we are building shareholder value.

First quarter 2018 core revenue was $117.4 million compared to $114.6 million in the first quarter of 2017. We benefited