Q4 2020 Banner Corp Earnings Call
Good day and welcome to the banner corporations for acute 'twenty conference call and webcast.
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I would now like to turn the conference over to microscopy, That's President and Chief Executive Officer of Banner Corporation. Please go ahead.
Thank you Sarah and good morning, everyone. I would also like to welcome you to the fourth quarter and full year 2020 earnings call for Banner Corporation.
As is customary joining me on the call today is Peter Conner, our Chief Financial Officer.
Joe Rice, our Chief Credit Officer, and Rich Arnold our head of Investor Relations.
Rich would you please read our forward looking safe Harbor statement.
Sure Mark good morning.
Our presentation today discusses banner's business outlook and will include forward looking statements.
These statements include descriptions of management's plans objectives or goals for future operations products or services forecast of financial or other performance measures and <unk>.
<unk> about banner's general outlook for economic and other conditions. We also may make other forward looking statements on the question and answer pyramid 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-Q for the quarter ended September 30th 2020.
Forward looking statements are effective only as of the day. They are made and banner assumes no obligation to update information concerning its expectations Mark.
Thank you rich.
'twenty was certainly an interesting and challenging year and I Hope you and your families are well as we all continue to battle, the Covid virus and its effects on our communities and the economy.
Today, we will cover four primary items with you first I will provide you a high level commentary on the quarter and full year performance.
Second the actions banner continues to take to support our stakeholders all of them on our stakeholders, including our banner team our clients our communities and our shareholders.
Third Joe Rice will provide comments on the current status of our loan portfolio and accommodations. We have made to assist our clients and finally, Peter Conner will provide more detail on our operating performance for the quarter and full year 2020.
I wanted to begin by thanking all of my 2100 colleagues in our company that are working extremely hard to assist our clients and communities. During these difficult times.
Banner has lived our core values summed up as doing the right thing for 130 years it.
It is critically important that we continue to do the right thing for our clients our communities our colleagues our company and our shareholders to provide a consistent and reliable source of commerce in capital through all economic cycles and change events.
I am pleased to report that is exactly what we continue to do.
I am very proud of the entire banner team that are living our core values.
Now, let me turn to an overview of our performance.
As announced banner Corporation reported a net profit available to common shareholders of $39 million or $1 10 per diluted share for the quarter ended December 31 2020.
This compared to a net profit to common shareholders of $1 three per share for the third quarter of 2020, and 95 cents per share for the fourth quarter of 2019.
For the full year ended December 31, 2020 Banner Corporation reported net income available to common shareholders of $115 $9 million compared to $146 $3 million for the full year of 2019.
The full year performance was impacted by the allowance for credit losses build based on the estimated impact of the Covid virus on the economy.
Our strategy to maintain a moderate risk profile.
An inflow of liquidity, coupled with very low interest rates and strong mortgage banking revenue.
Peter will discuss these items in more detail shortly.
Directing your attention to pretax pre provision earnings and excluding the impact of merger and acquisition expenses Covid expenses gains and losses on the sale of securities and changes in fair value of financial instruments earnings were $211.9 million for the full year 2020.
Compared to 201 $6 million for the full year of 2019, an increase of 5%.
This measure I believe it's helpful for illustrating the core earnings power of banner.
Our full year 2020 revenue from core operations also increased 5% to $579 $6 million compared to $551 million for the full year of 2019.
We benefited from a larger earning asset mix a good net interest margin and strong mortgage banking fee revenue.
Overall this resulted in a return on average assets a 0.83% for the year.
Once again, our core performance this quarter and for free for the full year reflects the continued execution on our Super community Bank strategy.
Even with the challenges of the pandemic.