Earnings fall at many banks with Spokane presence
Some institutions blame lack of PPP funds; others fault rising interest rates
Virginia ThomasAugust 11th, 2022
More than half of the banks with a presence in the Spokane area report a decrease in earnings for the second quarter of this year. Of 13 institutions with readily available earnings reports that have at least one branch in Spokane County, eight saw second-quarter net income decrease year-over-year.
W.T.B. Financial Corp., the Spokane-based parent company of Washington Trust Bank, is one of the institutions to buck the second-quarter lower earnings trend. The company has reported second-quarter net income of $37.4 million, or $14.80 a share, an increase compared with $20.8 million, or $8.22 a share, in the year-earlier period. W.T.B. Financial says in a release that the increase in earnings was due to solid performance strengthened by the release of loan-loss reserves.
Washington Trust Bank has 19 branches in the Spokane-Coeur d’Alene area, according to Journal’s April 7 banks list.
Banner Corp., the Walla Walla-based parent company of Banner Bank, has reported second-quarter net income of $48 million, or $1.39 per diluted share, a decrease from 2021 second-quarter net income of $54.4 million, or $1.56 a share.
Banner says its second-quarter results include a $4.5 million provision for credit losses and a $7.8 million gain related to the sale of the former Banner Bank building at 41 W. Riverside, in downtown Spokane. Idaho Central Credit Union purchased the building in November for $13.5 million.
Banner Bank has six locations in Spokane, one in Spokane Valley, and one location each in Liberty Lake and Cheney.
Portland-based Umpqua Holdings Corp., the parent company of Umpqua Bank, reports second-quarter net income of $79 million, or 36 cents per diluted share. That’s down from the second quarter of 2021, in which the company saw earnings of $116 million, or 53 cents per share.
Umpqua Bank has four locations in Spokane, one in Spokane Valley, one in Liberty Lake, one in Coeur d’Alene, and one in Hayden.
Tacoma-based Columbia Banking System Inc., the holding company for Columbia Bank, reports second-quarter net income of $58.8 million, or 75 cents per share, which includes a 4 cent per share reduction stemming from expenses related to its pending merger with Umpqua Bank, which is expected to be completed in the next three months. That compares to net income of $55 million, or 77 cents per share, in the year-earlier period.
On July 5, Columbia announced the expansion of its business lending division into Utah.
“Our teams have been outwardly focused on building and expanding relationships with existing and new clients, generating new loan balances and related income,” says Chris Merrywell, Columbia’s chief operating officer and executive vice president.
Columbia Bank has two locations in Spokane, one in Coeur d’Alene, one in Post Falls, and one in Rathdrum.
RiverBank Holding Co., the holding company for Spokane-based RiverBank, reports net income for the first half of the year at $542,099, or 63 cents per share. That’s down from the year-earlier period net income of $699,747, or 82 cents per share. The bank notes in its midyear earnings release that 2022 lacks the PPP loan income of 2021.
RiverBank’s sole physical branch and its administrative offices are located at 202 E. Spokane Falls Boulevard, just east of downtown Spokane.
Kalispell, Montana-based Glacier Bancorp Inc., the parent company of Coeur d’Alene-based Mountain West Bank, has reported net income for the second quarter of $76.4 million, or 69 cents a share, a decrease from net income of $77.6 million, or 81 cents per share, in the year-earlier quarter.
The company says the decrease is due to factors such as a $10.3 million decrease in federal Paycheck Protection Program income and a $976,000 increase in acquisition-related expenses. Glacier bought Utah-based Altabancorp, the holding company for Altabank, late last year.
Mountain West Bank has one location in Spokane, a financial center in Spokane Valley, and three locations in the Coeur d’Alene area.
Coeur d’Alene Bancorp Inc., the Coeur d’Alene-based holding company for bankcda, reports net income of $413,500 for the second quarter of 2022. That’s an increase from the year-earlier period net income of $408,900. Wes Veach, president and CEO of the company, says the decrease is due to absence of income from the Paycheck Protection Program. Per-share net income remained flat at 22 cents per diluted share.
Bankcda has one location in Coeur d’Alene, one in Hayden, and one in Post Falls.
First Interstate BancSystem Inc., the Billings, Montana-based parent company of First Interstate Bank, has reported a year-over-year second-quarter earnings increase of more than 50%. Net income for the second quarter of 2022 was $64.1 million, an increase from the year-earlier period net income of $42.5 million. Per-share earnings decreased to 59 cents, from 69 cents per diluted share in the year earlier quarter.
In its second-quarter earnings release, the bank notes that it acquired South Dakota-based community bank parent company Great Western on Feb. 1 for $1.7 billion, which consisted of the issuance of 46.9 million shares of the company’s stock valued at $36.76 per share, the opening price of First Interstate’s stock as quoted on the NASDAQ stock market on the acquisition date.
“Our higher level of loan growth enabled us to redeploy more of our excess liquidity into higher earning assets, while our asset-sensitive balance sheet benefited from the increase in interest rates, resulting in a 45-basis point increase in our net interest margin,” says Kevin P. Riley, president and CEO of First Interstate BancSystem.
First Interstate Bank has four locations in Spokane, one in Spokane Valley, one in Airway Heights, one in Post Falls, and two in Coeur d’Alene.
San Francisco-based Wells Fargo & Co. reports second-quarter net income of $3.1 billion, or 74 cents per share. That’s down from net income of $6 billion, or $1.38 per share in the year-earlier period.
Wells Fargo has five locations in Spokane, one in Post Falls, one in Rathdrum, two in Coeur d’Alene, and one in Hayden Lake.
Minneapolis-based U.S. Bancorp, parent company of U.S. Bank, has reported net income of $1.5 billion, or 99 cents per share for the second quarter of 2022, a decrease from the 2021 second-quarter net income of $1.9 billion, or $1.28 per share.
U.S. Bank has seven locations in Spokane, three in Spokane Valley, one in Liberty Lake, one in Post Falls, and three in the Coeur d’Alene-Hayden area.
Charlotte, North Carolina-based Bank of America Corp., the parent company of Bank of America, reports second-quarter net income of $6.2 billion, or 73 cents per share, a decrease compared with net income of $9.2 billion, or $1.04 per share from the year-earlier period.
Bank of America has two locations in Spokane, one in Spokane Valley, and one in Post Falls.
Washington Federal Inc., the Seattle-based parent company of WaFd Bank, has reported second-quarter net income of $63.3 million, or 91 cents per share.
That’s up from net income of $47.4 million, or 61 cents per share in the year-earlier quarter.
Brent J. Beardall, president and CEO of Washington Federal, says the period represents the most successful quarter in the institution’s 105 years.
“Growing core deposits and expanding our commercial banking capabilities directly contributed to our net interest margin expanding from 2.82% a year ago to 3.22% this quarter, which was the primary driver of earnings growth,” Beardall says.
WaFd Bank has one location in Spokane and one in Deer Park.
New York-based JPMorgan Chase & Co., parent company of Chase Bank, reports net income for the second quarter of $8.6 billion, or $2.76 per share, a decrease from the year-earlier period net income of $11.9 billion, or $3.78 per share.
Chase Bank currently has eight locations in Spokane and two in Spokane Valley.
However, a note on Chase Bank’s website states that the bank’s location at 2215 W. Northwest Boulevard will close Sept. 19.