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Margin pressure, securities loss weigh down Banner’s 4Q profit

Banner Corp. in Walla Walla, Wash., reported lower quarterly profit that reflected balance sheet pressure and a securities loss.

The $15.7 billion-asset company said in a press release that its fourth-quarter net income fell by 22% from a year earlier, to $42.6 million.

Net interest income decreased by 13% to $138.4 million after the net interest margin compressed by 40 basis points, to 3.83%.

Banner also sold securities at a $4.8 million net loss.

The company offset some of the hits by recording a $3.5 million gain from transferring $43.5 million of multifamily loans held for sale to held-for-investment status.

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