Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $51.2 million, or $1.49 per diluted share, for Q4 2025, compared to $1.54 per share in Q3 2025 and $1.34 per share in Q4 2024 [5][6] - For the full year 2025, net income available to common shareholders was $195.4 million, or $5.64 per diluted share, up from $168.9 million, or $4.88 per share in 2024 [6] - Core earnings for the full year 2025 were $255 million, compared to $223.2 million in 2024, with core revenue increasing by 8% to $661 million [7][8] Business Line Data and Key Metrics Changes - Loan originations increased by 9% compared to the linked quarter and 8% year-over-year, but overall loan growth was negligible due to higher-than-expected paydowns [10] - The commercial real estate portfolio showed solid growth, with investor CRE increasing by 5% and owner-occupied CRE by 11% year-over-year [10] - The small business segment grew by 8% year-over-year, contributing positively to overall loan performance [13] Market Data and Key Metrics Changes - Core deposits represented 89% of total deposits, reflecting a strong and loyal deposit base [8] - The loan-to-deposit ratio ended the quarter at 86%, indicating ample capacity to support existing and new clients [18] - Total borrowings increased by $40 million during the quarter, with a low reliance on wholesale borrowings [19] Company Strategy and Development Direction - The company aims to maintain a moderate risk profile while investing in operating performance to position itself well for future challenges [6] - The strategy focuses on growing new client relationships, maintaining core funding, and promoting client loyalty through responsive service [8] - The company continues to explore M&A opportunities, indicating a proactive approach to growth [49] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth in the mid-single digits for 2026, contingent on economic stability [25][62] - The competitive landscape remains challenging, but the company believes it competes well in terms of product offerings and pricing [27] - The outlook for net interest margin (NIM) is influenced by Federal Reserve actions, with potential for expansion if no rate cuts occur [28][29] Other Important Information - The company announced a core dividend of $0.50 per common share, reflecting strong capital and liquidity positions [8] - Banner was recognized as one of America's 100 best banks and received various accolades for client satisfaction and trustworthiness [9] Q&A Session Summary Question: Outlook for loan growth in 2026 - Management expects mid-single digit loan growth in 2026, despite potential headwinds from commercial real estate payoffs [25] Question: Competitive landscape for loan originations - The competitive environment remains strong, with some banks offering aggressive terms, but the company believes it can compete effectively [27] Question: Expectations for net interest margin - Future NIM will largely depend on Federal Reserve actions, with potential for expansion if no rate cuts occur [28][29] Question: Capital position and buyback plans - The company has approximately 1.2 million shares available for repurchase and will monitor market conditions for potential buybacks [47][48] Question: Tax rate expectations for 2026 - The expected tax rate for 2026 is around 19%, consistent with prior periods [59] Question: Impact of construction to permanent financing on growth - Management anticipates that commercial real estate payoffs will continue to be a headwind, projecting similar growth patterns as in 2025 [62]

Banner (NasdaqGS:BANR) Q4 2025 Earnings call January 22, 2026 11:00 AM ET Company ParticipantsJill Rice - Chief Credit OfficerRich Arnold - Head of Investor RelationsMark Grescovich - President and CEOKelly Motta - Equity Research AssociateRob Butterfield - Chief Financial OfficerConference Call ParticipantsLiam Cahill - AnalystJeff Rulis - Managing Director and Senior Research AnalystMatthew Clark - Managing Director and Senior Research AnalystAndrew Terrell - Managing Director and Senior Research AnalystO ...

Financial Data and Key Metrics Changes - Banner Corporation reported a net profit available to common shareholders of $51.2 million, or $1.49 per diluted share, for Q4 2025, compared to $1.54 per share in Q3 2025 and $1.34 per share in Q4 2024 [4] - For the full year 2025, net income available to common shareholders was $195.4 million, or $5.64 per diluted share, up from $168.9 million, or $4.88 per share in 2024 [5] - Core earnings for the full year 2025 were $255 million, compared to $223.2 million in 2024, reflecting an increase in core revenue to $661 million from $615 million, an 8% increase [6][5] - Return on average assets for Q4 2025 was 1.24% [6] Business Line Data and Key Metrics Changes - Loan originations increased by 9% compared to the linked quarter and 8% year-over-year, but overall loan growth was negligible due to higher-than-expected paydowns [9] - The commercial real estate portfolio showed solid growth year-over-year, with investor CRE increasing by 5% and owner-occupied CRE by 11% [9] - The small business segment grew by 8% year-over-year, contributing positively to overall loan production [11] Market Data and Key Metrics Changes - Core deposits represented 89% of total deposits, indicating a strong and loyal deposit base [7] - Total borrowings increased by $40 million during the quarter, reflecting low reliance on wholesale borrowings [18] Company Strategy and Development Direction - The company aims to maintain a moderate risk profile while investing to improve operating performance, positioning itself well for future challenges [5] - The strategy focuses on growing new client relationships, maintaining core funding, and promoting client loyalty through responsive service [7] Management's Comments on Operating Environment and Future Outlook - Management expects loan growth in the mid-single digits for 2026, contingent on economic stability [24] - The competitive landscape remains challenging, with some banks offering more aggressive terms, but the company believes it competes well in product offerings and pricing [26] - Management anticipates that net interest margin (NIM) will be influenced by Federal Reserve actions, with potential for margin expansion if no rate cuts occur [28] Other Important Information - The company was recognized as one of America's 100 best banks and received accolades for trustworthiness and client satisfaction [8] - The tangible common equity ratio increased from 9.5% to 9.84%, reflecting strong capital and liquidity positions [18] Q&A Session Summary Question: Outlook for loan growth in 2026 - Management expects mid-single digit loan growth in 2026, despite potential headwinds from commercial real estate payoffs [24] Question: Competitive landscape for loan originations - The competitive environment remains strong, with some banks offering aggressive terms, but the company believes it can compete effectively [26] Question: Expectations for net interest margin - Future NIM will largely depend on Federal Reserve actions, with potential for expansion if no rate cuts occur [28] Question: Capital position and buyback plans - The company has approximately 1.2 million shares available for repurchase and will monitor market conditions for potential buybacks [46] Question: Tax rate expectations for 2026 - The expected tax rate for 2026 is around 19%, consistent with prior periods [58] Question: Drivers of deposit growth - Year-on-year deposit growth is attributed to new client relationships and a focus on small business banking [68]

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Financial Performance - Net income was $51.2 million, compared to $53.5 million for the prior quarter[5] - HFI Loan growth of $367 million year-over-year, representing a 3% increase[5] - Core deposits grew by $196 million year-over-year, a 2% increase[5] - Net interest margin (tax equivalent) increased by 5 basis points to 4.03%[5] - Return on average assets was 1.24%, and return on average tangible common equity was 13.11%, compared to 1.30% and 14.17%, respectively, for the prior quarter[5] Loan Portfolio and Credit Quality - Total loan originations (excluding HFS) were $867 million[5] - Allowance for credit losses – loans was 1.37% of total loans[5] - Non-performing assets remained low at 0.31% of total assets, up 4 basis points from last quarter[5] Capital Management - Repurchased 249,975 shares of Banner common stock at an average price of $63.14 per share[5] - Announced dividend of $0.50 per share to be paid in February 2026[5] Revenue and Efficiency - Efficiency ratio (GAAP) was 62.11%, compared to 59.76% in the prior quarter; adjusted, non-GAAP efficiency ratio was 59.87% compared to 58.54% in the prior quarter[5] - Core revenue for the quarter ending December 31, 2025, was $170 million, and $661 million for the last 12 months[20]

Core Insights - Banner Corporation reported an EPS of $1.49 for the quarter ending January 21, 2026, exceeding the estimated EPS of $1.46, and showing growth from the previous year's EPS of $1.33 [2][5] - The company's revenue for the quarter was $167.67 million, which was below the estimated $173.2 million, representing a 4.4% increase from the previous year but resulting in a 1.53% negative surprise [3][5] Financial Metrics - Banner's price-to-earnings (P/E) ratio is 11.97, and its price-to-sales ratio is 2.80, indicating the market's valuation of the company [4] - The earnings yield stands at 8.35%, reflecting a solid return on investment for shareholders [4] - The company maintains a low debt-to-equity ratio of 0.18 and a current ratio of 19.00, demonstrating strong liquidity and a conservative approach to leveraging [4][5]

Banner (BANR) came out with quarterly earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.46 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +5.98%. A quarter ago, it was expected that this regional bank would post earnings of $1.41 per share when it actually produced earnings of $1.52, delivering a surprise of +7.8%.Over the last four quarters, the company has ...

Financial Performance - Banner Corporation reported net income of $51.2 million, or $1.49 per diluted share, for Q4 2025, compared to $53.5 million, or $1.54 per diluted share, in the previous quarter[3]. - Net income for the year ended December 31, 2025, was $195,382,000, up from $168,898,000 in 2024, representing a growth of 16%[29]. - Basic earnings per share for Q4 2025 was $1.50, compared to $1.34 in Q4 2024, marking an increase of 12%[29]. - Diluted earnings per share (GAAP) for 2025 was $5.64, compared to $4.88 in 2024, an increase of 15.61%[42]. Revenue and Income - Total interest income for Q4 2025 was $204,980,000, an increase of 4% from $196,436,000 in Q4 2024[29]. - Net interest income for the quarter ended December 31, 2025, was reported at $155,941 thousand, with a net interest margin of 4.03%[40]. - Total revenue (GAAP) for Q4 2025 was $167,673, a decrease of 1.2% from $170,719 in Q3 2025 but an increase of 4.0% from $160,571 in Q4 2024[43]. - Adjusted revenue for the year ended December 31, 2025, reached $661,458 thousand, up from $614,776 thousand in 2024, marking a growth of 7.57%[42]. Expenses - Total non-interest expense increased to $104.1 million in Q4 2025, compared to $102.0 million in the previous quarter and $99.5 million in Q4 2024[15]. - Total non-interest expense for the year ended December 31, 2025, was $408,774,000, an increase from $391,538,000 in 2024[30]. - Adjusted non-interest expense (non-GAAP) for Q4 2025 was $101,688, up from $98,781 in Q3 2025 and $97,258 in Q4 2024, indicating a year-over-year increase of 4.0%[43]. Assets and Liabilities - Banner's total assets were $16.35 billion at December 31, 2025, down from $16.56 billion at September 30, 2025[17]. - Total liabilities stood at $14,495,990 thousand as of December 31, 2025, compared to $14,429,886 thousand as of September 30, 2025[40]. - Total tangible assets (non-GAAP) were $15,979,876 in Q4 2025, slightly down from $16,188,154 in Q3 2025[44]. Deposits - Total deposits decreased to $13.74 billion at December 31, 2025, from $14.02 billion at September 30, 2025, but increased from $13.51 billion at December 31, 2024[12]. - Core deposits represented 89% of total deposits at year-end 2025, indicating a strong funding base[5]. - Total deposits decreased by 2% to $13,743,146,000 from $13,514,398,000 year-over-year[30]. Loans and Credit Quality - Total loans receivable increased to $11.72 billion at December 31, 2025, up 3% from $11.35 billion a year ago[18]. - Non-performing loans rose to $45.6 million at December 31, 2025, compared to $37.0 million a year ago[24]. - The allowance for credit losses - loans was $160.3 million, or 1.37% of total loans receivable, at December 31, 2025[24]. Capital Ratios - Banner's estimated common equity Tier 1 capital ratio was 12.81% at December 31, 2025[23]. - Total capital to risk-weighted assets ratio for Banner Corporation was 14.69%, exceeding the minimum requirement for "Well Capitalized" status[39]. - Tier 1 capital to risk-weighted assets ratio for Banner Corporation was 13.44%, also above the minimum threshold for "Well Capitalized" classification[39]. Efficiency and Performance Ratios - The efficiency ratio was 62.11% for Q4 2025, compared to 59.76% in the previous quarter, reflecting increased expenses[16]. - Return on average assets improved to 1.21% in 2025 from 1.07% in 2024, indicating enhanced asset efficiency[41]. - The adjusted return on average equity was 10.97% for the quarter ended December 31, 2025, compared to 11.18% for the previous quarter[40].

In its upcoming report, Banner (BANR) is predicted by Wall Street analysts to post quarterly earnings of $1.46 per share, reflecting an increase of 9.8% compared to the same period last year. Revenues are forecasted to be $170.27 million, representing a year-over-year increase of 6%.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Befor ...

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