First Quarter 2024 Photo by Photo by Photo by Photo by Siti Alimah Yvonne McDonald Maria DeVecchio Salvador Saldana 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 ques ...

Banner (BANR) reported $144.55 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 11.1%. EPS of $1.22 for the same period compares to $1.79 a year ago.The reported revenue represents a surprise of -4.06% over the Zacks Consensus Estimate of $150.67 million. With the consensus EPS estimate being $1.17, the EPS surprise was +4.27%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) This section provides a comprehensive review of the company's financial results for the first quarter of 2024, covering key performance indicators, income statement, balance sheet, and credit quality [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Banner Corporation reported first-quarter 2024 net income of **$37.6 million**, or **$1.09** per diluted share, a decrease from prior periods due to net interest margin compression, while maintaining strong credit quality and a solid core deposit base Q1 2024 Key Financial Results | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income | $37.6 million | $42.6 million | $55.6 million | | Diluted EPS | $1.09 | $1.24 | $1.61 | | Net Interest Income | $133.0 million | $138.4 million | $153.3 million | | Revenue | $144.6 million | $152.5 million | $162.6 million | | Net Interest Margin (tax equiv.) | 3.74% | 3.83% | 4.30% | - The Board of Directors declared a regular quarterly cash dividend of **$0.48** per share, payable on May 10, 2024, to shareholders of record on April 30, 2024[1](index=1&type=chunk) - At March 31, 2024, the company had **$15.52 billion** in assets, **$10.72 billion** in net loans, and **$13.16 billion** in deposits[1](index=1&type=chunk) - Core deposits represented **89%** of total deposits at quarter-end, highlighting a strong deposit base[1](index=1&type=chunk)[2](index=2&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) The income statement reflects pressure on profitability, with net interest income declining to **$133.0 million** and the net interest margin compressing to **3.74%** due to higher funding costs outpacing the increase in asset yields [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income was **$133.0 million**, down from **$138.4 million** in Q4 2023, with the net interest margin compressing by **9 basis points** sequentially to **3.74%** due to higher funding costs partially offset by increased asset yields Yield and Cost Analysis (Q1 2024 vs Q4 2023) | Metric | Q1 2024 | Q4 2023 | Change (bps) | | :--- | :--- | :--- | :--- | | Net Interest Margin (tax equiv.) | 3.74% | 3.83% | -9 bps | | Avg. Yield on Earning Assets | 5.16% | 5.06% | +10 bps | | Total Cost of Funding Liabilities | 1.53% | 1.31% | +22 bps | [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) A provision for credit losses of **$520,000** was recorded in Q1 2024, a significant decrease from the **$2.5 million** provision in Q4 2023, primarily driven by loan growth partially offset by a reduction in unfunded loan commitments - The provision for credit losses was **$520,000** in Q1 2024, compared to a **$2.5 million** provision in Q4 2023 and a **$524,000** recapture in Q1 2023[4](index=4&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Total non-interest income was **$11.6 million**, a decrease from **$14.1 million** in the prior quarter but an increase from **$9.3 million** in the prior-year quarter, mainly due to lower mortgage banking revenue sequentially and a smaller net loss on securities sales year-over-year - Mortgage banking operations revenue decreased to **$2.3 million** from **$5.4 million** in the preceding quarter, primarily due to a **$3.5 million** positive adjustment in Q4 2023 from transferring multifamily loans[5](index=5&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense rose slightly to **$97.6 million** from **$96.6 million** in Q4 2023, driven by higher salary and employee benefits, resulting in an increased efficiency ratio of **67.55%** - The increase in non-interest expense was mainly due to higher salary and employee benefits, partially offset by decreases in professional/legal and advertising/marketing expenses[5](index=5&type=chunk) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) Total assets remained stable at **$15.52 billion**, reflecting continued loan growth, particularly in residential and construction loans, funded by a slight increase in total deposits, while maintaining strong liquidity and capital levels [Assets, Loans, and Securities](index=3&type=section&id=Assets%20Loans%2C%20and%20Securities) Total assets decreased slightly to **$15.52 billion**, while total loans receivable grew by **0.5%** quarter-over-quarter to **$10.87 billion**, driven by increases in residential and construction loans, with the securities portfolio decreasing to **$3.32 billion** Loan Portfolio Changes (Q1 2024 vs Q4 2023) | Loan Category | Q1 2024 Balance | QoQ Change | | :--- | :--- | :--- | | Total Loans Receivable | $10.87 billion | +0.5% | | One- to four-family residential | $1.57 billion | +3% | | Construction, land and land development | $1.57 billion | +2% | | Agricultural business | $318.0 million | -4% | [Deposits and Liquidity](index=4&type=section&id=Deposits%20and%20Liquidity) Total deposits increased to **$13.16 billion**, with core deposits representing **89%** of the total, and the company maintained a strong liquidity position with **$5.05 billion** in available borrowing capacity - Total deposits increased **1%** QoQ to **$13.16 billion**; Certificates of deposit increased **56%** YoY to **$1.49 billion** as clients sought higher yields[8](index=8&type=chunk) - Estimated uninsured deposits were approximately **31%** of total deposits, or **28%** excluding collateralized public and affiliate deposits[2](index=2&type=chunk)[8](index=8&type=chunk) - Available borrowing capacity increased to **$5.05 billion** from **$4.65 billion** at the end of the prior quarter[2](index=2&type=chunk)[8](index=8&type=chunk) [Shareholders' Equity and Capital Ratios](index=4&type=section&id=Shareholders%27%20Equity%20and%20Capital%20Ratios) Total common shareholders' equity increased to **$1.66 billion**, or **10.73%** of total assets, driven by net income partially offset by dividends, with all regulatory capital ratios remaining well above 'well-capitalized' requirements Key Equity and Capital Ratios | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Common shareholders' equity per share | $48.39 | $48.12 | | Tangible common equity per share* | $37.40 | $37.09 | | Common equity Tier 1 capital ratio | 12.06% | N/A | | Tier 1 leverage capital ratio | 10.71% | 10.56% | | Total capital to risk-weighted assets | 14.70% | N/A | [Credit Quality](index=4&type=section&id=Credit%20Quality) Credit quality remained strong and stable in the first quarter, with the allowance for credit losses at **1.39%** of total loans, providing **513%** coverage of non-performing loans, and experiencing net loan recoveries Credit Quality Metrics | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Allowance for Credit Losses / Total Loans | 1.39% | 1.38% | 1.39% | | Non-performing Assets / Total Assets | 0.19% | 0.19% | 0.17% | | Net (Recoveries) Charge-offs | ($73,000) | $1.1 million | $782,000 | - Substandard loans decreased to **$116.1 million** at March 31, 2024, from **$125.4 million** at December 31, 2023, and **$148.0 million** a year ago, primarily due to paydowns and risk rating upgrades[10](index=10&type=chunk) [Detailed Financial Tables](index=6&type=section&id=Detailed%20Financial%20Tables) This section presents comprehensive financial tables, including income statements, balance sheets, loan portfolio details, and capital ratios, providing granular data for the reported periods [Results of Operations (Income Statement)](index=6&type=section&id=Results%20of%20Operations%20(Income%20Statement)) This table provides a detailed breakdown of the company's income and expenses for the first quarter of 2024, with comparisons to the preceding and prior-year quarters Condensed Income Statement (in thousands) | Description | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income | $132,959 | $138,409 | $153,312 | | Provision for Credit Losses | $520 | $2,522 | ($524) | | Total Non-interest Income | $11,591 | $14,052 | $9,277 | | Total Non-interest Expense | $97,641 | $96,621 | $94,621 | | **Net Income** | **$37,559** | **$42,624** | **$55,555** | [Financial Condition (Balance Sheet)](index=7&type=section&id=Financial%20Condition%20(Balance%20Sheet)) This table presents the company's consolidated balance sheet, detailing assets, liabilities, and shareholders' equity as of March 31, 2024, with comparisons to previous period ends Condensed Balance Sheet (in thousands) | Description | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | :--- | | Total Assets | $15,518,279 | $15,670,391 | $15,533,603 | | Net Loans Receivable | $10,717,956 | $10,660,812 | $10,019,227 | | Total Deposits | $13,158,771 | $13,029,497 | $13,154,202 | | Total Liabilities | $13,853,771 | $14,017,700 | $14,001,908 | | Total Shareholders' Equity | $1,664,508 | $1,652,691 | $1,531,695 | [Loan Portfolio Details](index=8&type=section&id=Loan%20Portfolio%20Details) These tables provide a detailed breakdown of the loan portfolio by type, geographic location, and originations for the quarter Total Loans by Type (in thousands) | Loan Type | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Commercial real estate (CRE) | $3,609,303 | $3,635,741 | | Multifamily real estate | $809,101 | $811,232 | | Construction, land and land development | $1,571,519 | $1,537,075 | | Commercial business | $2,290,783 | $2,277,888 | | One- to four-family residential | $1,566,834 | $1,518,046 | | **Total Loans Receivable** | **$10,869,096** | **$10,810,455** | - Total loan originations (excluding loans held for sale) were **$777.9 million** in Q1 2024, up from **$741.5 million** in Q4 2023, driven primarily by increased construction and land originations[19](index=19&type=chunk) [Allowance for Credit Losses](index=10&type=section&id=Allowance%20for%20Credit%20Losses) This section details the changes in the Allowance for Credit Losses (ACL) for both loans and unfunded commitments, including provisions, charge-offs, and recoveries Change in Allowance for Credit Losses – Loans (in thousands) | Description | Q1 2024 | | :--- | :--- | | Beginning Balance | $149,643 | | Provision for credit losses | $1,424 | | Net Recoveries | $73 | | **Ending Balance** | **$151,140** | - The allowance for credit losses on unfunded loan commitments decreased to **$13.6 million** from **$14.5 million** at the end of the prior quarter, following an **$887,000** recapture of provision[21](index=21&type=chunk) [Non-Performing Assets and Credit Risk](index=11&type=section&id=Non-Performing%20Assets%20and%20Credit%20Risk) These tables provide a breakdown of non-performing assets (NPAs) and classify the loan portfolio by internal credit risk ratings Non-Performing Assets (in thousands) | Category | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total non-performing loans | $29,489 | $29,602 | | REO and other repossessed assets | $448 | $526 | | **Total non-performing assets** | **$29,937** | **$30,128** | - Substandard loans, a key credit risk indicator, decreased to **$116.1 million** from **$125.4 million** in the prior quarter[22](index=22&type=chunk) [Deposit Details](index=12&type=section&id=Deposit%20Details) This section provides a detailed breakdown of deposit composition by account type and geographic concentration Deposit Composition (in thousands) | Deposit Type | Mar 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-interest-bearing | $4,699,553 | $4,792,369 | | Total core deposits | $11,672,891 | $11,552,030 | | Interest-bearing certificates | $1,485,880 | $1,477,467 | | **Total deposits** | **$13,158,771** | **$13,029,497** | - Geographically, Washington holds the largest share of deposits at **55.2%**, followed by Oregon (**22.1%**) and California (**17.6%**)[25](index=25&type=chunk) [Regulatory Capital Ratios](index=13&type=section&id=Regulatory%20Capital%20Ratios) This table shows the estimated regulatory capital ratios for both Banner Corporation (consolidated) and Banner Bank, demonstrating that both entities exceed the minimum requirements to be categorized as 'Well Capitalized' Estimated Regulatory Capital Ratios (Consolidated) - March 31, 2024 | Ratio | Actual | 'Well Capitalized' Minimum | | :--- | :--- | :--- | | Common equity tier 1 capital | 12.06% | n/a | | Tier 1 capital | 12.72% | 6.00% | | Total capital | 14.70% | 10.00% | | Tier 1 leverage | 10.71% | n/a | [Net Interest Spread Analysis](index=14&type=section&id=Net%20Interest%20Spread%20Analysis) This table provides a detailed analysis of average balances, interest income/expense, and yields/costs for all interest-earning assets and interest-bearing liabilities, leading to the calculation of the net interest margin Net Interest Margin Analysis (Tax Equivalent) | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Avg. Yield on Interest-Earning Assets | 5.16% | 5.06% | 4.68% | | Avg. Cost of Total Funding Liabilities | 1.53% | 1.31% | 0.40% | | Net Interest Rate Spread | 3.63% | 3.75% | 4.28% | | **Net Interest Margin** | **3.74%** | **3.83%** | **4.30%** | [Non-GAAP Financial Measures](index=15&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP measures used in the report, such as adjusted revenue, adjusted earnings, tangible common equity, and the adjusted efficiency ratio, to their nearest GAAP equivalents [Reconciliation of Adjusted Revenue and Earnings](index=15&type=section&id=Reconciliation%20of%20Adjusted%20Revenue%20and%20Earnings) This table reconciles GAAP net income and revenue to adjusted (non-GAAP) figures by excluding the net loss on the sale of securities and changes in the valuation of financial instruments Adjusted Earnings Reconciliation (in thousands) | Description | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net income (GAAP) | $37,559 | $42,624 | $55,555 | | Exclude: Net loss on sale of securities | $4,903 | $4,806 | $7,252 | | Exclude: Net change in valuation of financial instruments | $992 | ($139) | $552 | | **Total adjusted earnings (non-GAAP)** | **$42,039** | **$46,170** | **$61,595** | [Reconciliation of Adjusted Efficiency Ratio](index=16&type=section&id=Reconciliation%20of%20Adjusted%20Efficiency%20Ratio) This table calculates the adjusted efficiency ratio by removing certain non-core expenses from non-interest expense and non-core income items from total revenue Adjusted Efficiency Ratio | Ratio | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Efficiency ratio (GAAP) | 67.55% | 63.37% | 58.20% | | **Adjusted efficiency ratio (non-GAAP)** | **63.70%** | **60.04%** | **54.23%** | [Reconciliation of Tangible Common Equity](index=16&type=section&id=Reconciliation%20of%20Tangible%20Common%20Equity) This table reconciles GAAP shareholders' equity and total assets to tangible common shareholders' equity and tangible assets by excluding goodwill and other intangible assets Tangible Common Equity to Tangible Assets | Ratio | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | | :--- | :--- | :--- | :--- | | Common shareholders' equity to total assets (GAAP) | 10.73% | 10.55% | 9.86% | | **Tangible common equity to tangible assets (non-GAAP)** | **8.50%** | **8.33%** | **7.59%** | [Other Information](index=5&type=section&id=Other%20Information) This section includes important disclosures such as forward-looking statements and other relevant information for investors [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains standard cautionary language regarding forward-looking statements, outlining various risks and uncertainties that could cause actual results to differ materially from those projected - Key risk factors cited include changes in the interest rate environment, inflation, potential economic recession, credit risks of lending, competitive pressures, and regulatory changes[12](index=12&type=chunk)

Wall Street analysts expect Banner (BANR) to post quarterly earnings of $1.17 per share in its upcoming report, which indicates a year-over-year decline of 34.6%. Revenues are expected to be $150.67 million, down 7.3% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings announcement, it is crucial to cons ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________to__________ Commission File Number 0-26584 BANNER CORPORATION (Exact name of registrant as specified in its charter) Washington 91-1691604 (State or other jurisdic ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Huntsman Corporation (HUN) is a chemical manufacturer. The Zacks Consensus Estimate for its current year earnings has been revised 7.6% downward over the last 60 days.The Charles Schwab Corporation (SCHW) is a financial service holding company. The Zacks Consensus Estimate for its current year earnings has been revised 8.9% downward over the last 60 days.Banner Corporation (BANR) is a bank holding company for Banner Bank. The Zacks Co ...

Banner Corporation (NASDAQ:BANR) Q4 2023 Earnings Conference Call January 19, 2024 11:00 AM ET Company Participants Mark Grescovich - President and Chief Executive Officer Rich Arnold - Head of Investor Relations Jill Rice - Chief Credit Officer Robert Butterfield - Chief Financial Officer Conference Call Participants Jeff Rulis - D.A. Davidson Andrew Liesch - Piper Sandler Andrew Terrell - Stephens Kelly Motta - KBW Timothy Coffey - Janney Montgomery Scott Operator Good morning, everyone, and welcome to th ...

Fourth Quarter 2023 Photo by Photo by Photo by Photo by Siti Alimah Yvonne McDonald Maria DeVecchio Salvador Saldana 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 ...

WALLA WALLA, Wash.--(BUSINESS WIRE)--Banner Corporation (NASDAQ: BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $42.6 million, or $1.24 per diluted share, for the fourth quarter of 2023, a 7% decrease compared to $45.9 million, or $1.33 per diluted share, for the preceding quarter and a 22% decrease compared to $54.4 million, or $1.58 per diluted share, for the fourth quarter of 2022. Net interest income was $138.4 million in the fourth quarter of 2023, compared to $141.8 ...

The upcoming report from Banner (BANR) is expected to reveal quarterly earnings of $1.31 per share, indicating a decline of 22% compared to the year-ago period. Analysts forecast revenues of $155.54 million, representing a decrease of 9.6% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings announcement, it is cruc ...