The parent company of Banner Bank and Islanders Bank, living up to the warning it issued two weeks ago, reported Tuesday a net quarterly loss of $42.7 million.
Walla Walla-based Banner Corp. had announced Oct. 6 an expected loss of $43 million to $45 million, driven by a $24 million non-cash hit for reducing the accounting value of deferred tax assets and a provision for loan losses of about $20 million.
The company also wrote down the value of bank-owned real estate and its investment portfolio by $11.6 million, as previously announced.
The quarterly loss dwarfs Banner's net loss of $4.9 million in the immediately preceding quarter and a net loss of $6.4 million in the third quarter a year ago.
After accounting for dividends and other adjustments related to its $128 million in TARP money from the U.S. Treasury, Banner's net loss attributable to common shareholders was $0.40 per share.