SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 25, 2002
Banner Corporation
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(Exact name of registrant as specified in its charter)
Washington 0-26584 91-1632900
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State or other jurisdiction Commission (I.R.S. Employer
of incorporation File Number Identification No.)
10 S. First Avenue, Walla Walla, Washington 99362
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code) (509) 527-3636
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
On February 25, 2002, the Registrant announced that as a result of
further deterioration in the quality of the previously disclosed problem loans
associated with a former senior lending officer, it anticipates its first
quarter loan loss provision will be increased and that expected earnings per
share for the year 2002 will be $1.90 to $2.00.
For further information, reference is made to the Registrant's press
release dated February 25, 2002, which is attached hereto as Exhibit 99 and
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
Exhibit
99 Press Release dated February 25, 2002.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
BANNER CORPORATION
DATE: February 25, 2002 By: /s/Gary Sirmon
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Gary Sirmon
President
Exhibit 99
Press Release
SOURCE: Banner Corporation
BANNER CORPORATION ANNOUNCES REVISED EARNINGS GUIDANCE FOR 2002
WALLA WALLA, Wash.--(BUSINESS WIRE)--Feb. 25, 2002--Banner Corporation
(Nasdaq: BANR - news), announced that as a result of further deterioration in
the quality of five problem loans associated with a former senior lending
officer in the greater Seattle area, it anticipates the first quarter loan
loss provision will be increased over previously projected amounts included in
the model that the Company uses to estimate earnings per share for the year
2002. While economic conditions will continue to play a large role with
respect to net interest margin and loan losses, the Company now anticipates
that expected earnings per share for the year 2002 will be $1.90 to $2.00. The
increased loss provision with respect to these five loans is projected to be
$1.2 million after tax.
``All five of these problem credits were identified in 2001 with associated
loss provisions recorded in that year and workout plans were developed for
each of these credits at that time. However, they have not performed as
planned and, due to the continued weakness of the Puget Sound economy, we
believe adding to the loan loss provision is prudent,'' said Gary Sirmon,
President and Chief Executive Officer.
Banner Corporation is the parent of Banner Bank, a Washington state chartered
commercial bank, which operates a total of 39 branch offices and six loan
offices in 18 counties in Washington, Oregon and Idaho. Banner serves the
Pacific Northwest region with a full range of deposit services and business,
commercial real estate, construction, residential, agricultural and consumer
loans. Visit Banner Bank of the web at www.banrbank.com.
Statements concerning future performance, developments or events, expectations
for earnings, growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements, which are subject to a number
of risks and uncertainties that are beyond the Company's control and might
cause actual results to differ materially from the expectations and stated
objectives. Factors which could cause actual results to differ materially
include, but are not limited to, regional and general economic conditions,
changes in interest rates, deposit flows, demand for mortgages and other
loans, real estate values, competition, loan delinquency rates, changes in
accounting principles, practices, policies or guidelines, changes in
legislation or regulation, other economic, competitive, governmental,
regulatory and technological factors affecting operations, pricing, products
and services and Banner's ability to successfully resolve the outstanding
credit issues and recover check kiting losses. Accordingly, these factors
should be considered in evaluating the forward-looking statements, and undue
reliance should not be placed on such statements. Banner undertakes no
responsibility to update or revise any forward-looking statements.
Such forward-looking statements include projections. Such projections have not
been audited, examined or otherwise reviewed by independent auditors of
Banner. In addition, such projections are based upon many estimates and
inherently subject to significant economic and competitive uncertainties and
contingencies, many of which are beyond the control of management of Banner.
Accordingly, actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be regarded as
a representation by Banner that the projections will prove to be correct.
Contact:
Banner Corporation
Gary Sirmon, President and CEO
Lloyd Baker, CFO
(509) 527-3636