Group 1 - Banner (BANR) is expected to report quarterly earnings of $1.23 per share, an increase of 0.8% year-over-year, with revenues forecasted at $156.19 million, reflecting an 8.1% increase [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] - The consensus estimate for the 'Efficiency Ratio' is 63.9%, down from 67.6% a year ago [4] Group 2 - Analysts expect 'Net interest margin (tax equivalent)' to be 3.8%, compared to 3.7% the previous year [4] - The estimate for 'Total non-performing loans' is projected at $41.82 million, up from $29.49 million year-over-year [4] - 'Total non-performing assets' are expected to reach $45.15 million, an increase from $29.94 million a year ago [5] Group 3 - The average prediction for 'Average Balance - Total interest-earning assets' is $15.09 billion, compared to $14.64 billion last year [5] - 'Net interest income' is projected to be $138.53 million, up from $132.96 million year-over-year [5] - 'Total non-interest income' is expected to reach $17.66 million, compared to $11.59 million in the same quarter last year [6] Group 4 - Over the past month, Banner shares have declined by 8.7%, while the Zacks S&P 500 composite has decreased by 6.1% [6] - Based on its Zacks Rank 3 (Hold), Banner is likely to perform in line with the overall market in the upcoming period [6]

Core Viewpoint - Banner (BANR) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Recent Performance of Banner - For the fiscal year ending December 2025, Banner is expected to earn $5.23 per share, reflecting a 4.4% increase from the previous year [7]. - Over the past three months, the Zacks Consensus Estimate for Banner has risen by 7.1%, indicating a positive trend in earnings estimates [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting their superior earnings estimate revision characteristics [8][9].

Core Viewpoint - The Zacks Savings and Loan industry is facing challenges due to weak asset quality and subdued economic growth, impacting net interest income (NII) improvement. However, digitization efforts by companies like Banner Corp., Berkshire Hills Bancorp, and Heritage Financial Corp. are expected to provide some growth opportunities [1][2]. Industry Overview - The Zacks Savings and Loan industry consists of specialized U.S. banks focused on residential mortgage finance, offering various loans including residential, commercial, and vehicle loans [3]. - These institutions fund mortgages with savings insured by the FDIC and have historically been required to invest a significant portion of their assets in mortgages, a restriction lifted in 2019 [4]. Current Trends - **Worsening Asset Quality**: Economic uncertainty and inflation are affecting consumers' loan repayment abilities, leading to increased reserves and deteriorating asset quality metrics [5]. - **Fed Rate Cuts & Loan Demand**: The Federal Reserve's interest rate cuts in 2024 have not significantly improved loan demand, with expectations of modest lending growth in 2025 [6][7]. - **Digital Transformation**: Companies are transitioning to technology-driven operations to enhance competitiveness and profitability, despite initial cost increases [8][9]. Industry Performance - The Zacks Savings and Loan industry has outperformed the Zacks Finance Sector and the S&P 500, with a collective gain of 20% over the past year compared to 10.1% for the S&P 500 [14]. - The industry's current trailing 12-month price-to-tangible book ratio (P/TBV) is 1.78X, below the five-year median of 1.95X, indicating a discount compared to the broader market [16][17]. Company Highlights - **Banner Corp**: A $16.2 billion bank holding company with a diversified loan portfolio and a conservative $3.43 billion investment portfolio. Non-performing assets were $39.6 million (0.24% of total assets) as of Dec 31, 2024, with earnings estimates indicating growth of 4.4% and 8.5% for 2025 and 2026, respectively [18][21][22]. - **Berkshire Hills Bancorp**: A community bank with a market capitalization of $1.2 billion, showing organic growth with a revenue CAGR of 2.7% and loan CAGR of 3.8% from 2020 to 2024. Non-performing assets were $26.7 million in 2024, with earnings estimates indicating increases of 13.5% and 50.1% for 2025 and 2026, respectively [23][24]. - **Heritage Financial**: A full-service commercial bank with a market capitalization of $804.6 million, showing a NII CAGR of 45.2% from 2019 to 2024. Non-performing assets were $5.2 million in 2024, with earnings estimates indicating growth of 9.7% and 12.5% for 2025 and 2026, respectively [25][26][27].

Financial Performance - Revenues for the year ended December 31, 2024, were $608.6 million, a decrease of 1.3% from $620.4 million in the prior year[253]. - Net income for the year ended December 31, 2024, was $168.9 million, or $4.88 per diluted share, down from $183.6 million, or $5.33 per diluted share in the prior year[253]. - Adjusted revenue for 2024 was $614.776 million, a decrease of 4.5% from $643.874 million in 2023[261]. - Net income for 2024 was $168.898 million, down 8.0% from $183.624 million in 2023[261]. - The company's net income for the year was $168.9 million, with cash dividends paid or accrued amounting to $67.0 million[276]. Interest Income and Expenses - Net interest income decreased to $541.7 million for the year ended December 31, 2024, compared to $576.0 million in the prior year, reflecting a net interest margin of 3.75% versus 4.01%[253]. - Interest expense rose to $224.4 million for the year ended December 31, 2024, an increase of $98.8 million, or 79%, driven by a 72 basis-point increase in the average cost of funding liabilities[324]. - The average yield on interest-earning assets increased by 39 basis points to 5.26%, with interest income for the year ended December 31, 2024, reaching $766.1 million, up from $701.6 million in the prior year[321]. - The net interest margin on a tax-equivalent basis was 3.75% for the year ended December 31, 2024, a decrease of 26 basis points from the prior year[320]. - The net change in net interest income (tax equivalent) for 2024 was a decrease of $33.253 million compared to 2023[333]. Loan and Deposit Growth - Total deposits rose to $13.51 billion at December 31, 2024, up from $13.03 billion a year ago, with core deposits representing 89% of total deposits[253]. - Total loans receivable increased by $544.2 million, or 5%, to $11.35 billion at December 31, 2024, compared to $10.81 billion at December 31, 2023[272]. - Total deposits increased by $484.9 million, or 4%, reaching $13.51 billion at December 31, 2024, compared to $13.03 billion at December 31, 2023[301]. - Total loans increased to $11.123 billion in 2024, up from $10.483 billion in 2023, reflecting a growth of approximately 6.1%[329]. - Total loans increased to $11.355 billion in 2024 from $10.810 billion in 2023, indicating a growth of approximately 5%[335]. Asset Quality - Non-performing assets increased to $39.6 million, or 0.24% of total assets, at December 31, 2024, compared to $30.1 million, or 0.19% of total assets a year ago[253]. - The provision for credit losses was $7.6 million for the year ended December 31, 2024, down from $10.8 million in 2023, reflecting risk rating downgrades and growth in loan balances[316]. - Total non-performing loans increased to $36.96 million for the year ended December 31, 2024, compared to $29.60 million in 2023[311]. - The allowance for credit losses on loans was $155.5 million, or 1.37% of total loans receivable, at December 31, 2024, compared to 1.38% a year ago[253]. - The provision for credit losses decreased to $8.6 million in 2024 from $11.1 million in 2023, indicating improved credit quality[333]. Equity and Capital Ratios - Common shareholders' equity per share increased to $51.49 at December 31, 2024, from $48.12 a year ago[253]. - Total shareholders' equity increased by $121.6 million to $1.77 billion at December 31, 2024, compared to $1.65 billion at December 31, 2023[276]. - Tangible common shareholders' equity rose to $1.40 billion, or 8.84% of tangible assets, at December 31, 2024, up from $1.27 billion, or 8.33%, at December 31, 2023[276]. - Banner Corporation's tier 1 common equity to risk-weighted assets ratio is 12.44%[381]. - Both Banner Corporation and Banner Bank exceeded all current regulatory capital requirements to be classified as "well capitalized" as of December 31, 2024[379]. Non-Interest Income and Expenses - Total non-interest income increased to $66.9 million for the year ended December 31, 2024, compared to $44.4 million in 2023, mainly due to a decrease in the net loss on the sale of securities[317]. - Non-interest income for 2024 was $66.888 million, a significant increase of 51% compared to $44.409 million in 2023[339]. - Non-interest expense for the year ended December 31, 2024, increased by $9 million, or 2%, compared to 2023, totaling $391.538 million[346]. - Salary and employee benefits rose by $5.992 million, or 2%, to $250.555 million in 2024, driven by annual salary increases and higher loan production commissions[346][347]. - Miscellaneous income surged by 60% to $8.289 million in 2024, primarily due to gains from the sale of SBA loans and a non-performing loan[342]. Interest Rate Risk Management - The company actively manages interest rate risk through adjustments in the mix of interest-earning assets and funding sources[356]. - The Bank actively uses interest rate swaps to manage interest rate risk and reduce volatility in net interest income[366]. - A positive interest rate sensitivity gap indicates that during rising rates, net interest income is likely to increase, while a negative gap would adversely affect it[361]. - The company anticipates a decrease in net interest income of $8.730 million, or 1.5%, over the next 12 months if interest rates drop by 100 basis points[360]. - As of December 31, 2024, total interest-earning assets maturing or repricing within one year exceeded total interest-bearing liabilities by $2.17 billion, representing a one-year cumulative gap to total assets ratio of 13.37%[363].

Core Viewpoint - Banner (BANR) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Banner suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating [9][10]. Recent Performance of Banner - Analysts have raised their earnings estimates for Banner, with the Zacks Consensus Estimate for the fiscal year ending December 2025 projected at $5.17 per share, reflecting a year-over-year increase of 3.2% [8]. - Over the past three months, the consensus estimate for Banner has increased by 6.7% [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Banner (BANR) - Banner currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Price Performance - Over the past week, BANR shares increased by 7.86%, outperforming the Zacks Financial - Savings and Loan industry, which rose by 3.05% [5] - In a longer timeframe, BANR's monthly price change is 3.96%, significantly better than the industry's 0.11% [5] - Over the last quarter, BANR shares rose by 7.1%, and over the past year, they increased by 44.12%, while the S&P 500 only moved 5.33% and 26.85%, respectively [6] Trading Volume - The average 20-day trading volume for BANR is 203,861 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for BANR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.87 to $5.06 [9] - For the next fiscal year, one estimate has moved upwards, with no downward revisions noted [9] Conclusion - Considering the positive momentum indicators and earnings outlook, BANR is classified as a 2 (Buy) stock with a Momentum Score of A, making it a strong candidate for near-term investment [11]

Core Viewpoint - Banner Corporation held its Fourth Quarter and Full Year 2024 earnings call, discussing the company's performance and outlook for the future [2]. Group 1: Company Overview - The call was hosted by Mark Grescovich, President and CEO of Banner Corporation, along with key executives including the Chief Financial Officer, Chief Credit Officer, and Head of Investor Relations [2]. - The company provided a forward-looking safe harbor statement, indicating that the presentation would include management's plans, objectives, and forecasts for financial performance [2][3]. Group 2: Financial Performance - The earnings call aimed to discuss the financial results for the fourth quarter and the full year of 2024, although specific financial metrics were not detailed in the provided text [2].

Financial Data and Key Metrics Changes - The fourth quarter and full year 2024 earnings call for Banner Corporation was held on January 23, 2025, indicating a focus on financial performance and outlook for the year [1] - Management highlighted that forward-looking statements regarding financial performance measures will be discussed, emphasizing the importance of understanding potential risks and uncertainties [2][3] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content, indicating a need for further information from the earnings press release or subsequent discussions Market Data and Key Metrics Changes - The earnings call did not include specific market data or key metrics changes, suggesting that this information may be covered in other sections of the earnings report Company Strategy and Development Direction - Management's discussion included forward-looking statements about the company's plans and objectives for future operations, although specific strategies were not detailed in the provided content [2] Management Comments on Operating Environment and Future Outlook - The management acknowledged the presence of risks and uncertainties that could affect actual results, indicating a cautious approach to future performance expectations [3] Other Important Information - The call was structured to include a question-and-answer session, where additional insights and clarifications may be provided, but specific details were not included in the current content Q&A Session Summary Question: What are the key risks affecting future performance? - Management indicated that various risk factors could lead to actual results differing from expectations, although specific risks were not detailed in the provided content [3]

Fourth Quarter 2024 Photo by Salvador Saldana Photo by Yvonne McDonald Photo by Maria DeVecchio Photo by Siti Alimah Disclosure Statement This presentation includes forward-looking statements. These statements include descriptions of management's plans, objectives or goals for future operations, products or services, forecast of financial or other performance measures and statements about Banner's general outlook for economic and other conditions. Additional forward-looking statements may be made in the que ...

Core Insights - Banner (BANR) reported revenue of $160.57 million for the quarter ended December 2024, reflecting a 5.3% increase year-over-year and a surprise of +4.60% over the Zacks Consensus Estimate of $153.5 million [1] - The earnings per share (EPS) was $1.33, slightly down from $1.34 in the same quarter last year, with an EPS surprise of +9.02% compared to the consensus estimate of $1.22 [1] Financial Performance Metrics - Net interest margin (tax equivalent) was reported at 3.7%, matching the average estimate from three analysts [4] - The efficiency ratio stood at 62%, better than the average estimate of 63.5% from three analysts [4] - Total non-performing assets were $39.62 million, significantly lower than the average estimate of $49.25 million from two analysts [4] - Total non-performing loans were $36.96 million, also below the average estimate of $46.91 million from two analysts [4] - Average balance of total interest-earning assets was $14.97 billion, slightly below the average estimate of $15.03 billion from two analysts [4] - Net charge-offs as a percentage of average loans receivable were 0%, better than the average estimate of 0.1% from two analysts [4] - Net interest income was reported at $140.54 million, exceeding the average estimate of $136.06 million from three analysts [4] - Total non-interest income reached $20.04 million, surpassing the average estimate of $17.45 million from three analysts [4] - Net interest income/rate spread (tax equivalent) was $143.80 million, above the average estimate of $139.06 million from two analysts [4] - Mortgage banking operations generated $3.69 million, significantly higher than the average estimate of $2.67 million from two analysts [4] Stock Performance - Shares of Banner have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]