Banner(BANR) - 2024 Q4 - Annual Results

Financial Performance - Banner Corporation reported net income of $46.4 million, or $1.34 per diluted share, for Q4 2024, an increase from $45.2 million, or $1.30 per diluted share, in the previous quarter and $42.6 million, or $1.24 per diluted share, in Q4 2023[2]. - Net interest income for Q4 2024 was $140.5 million, up from $135.7 million in the preceding quarter and $138.4 million in the same quarter last year[2]. - Non-interest income increased to $20.0 million in Q4 2024, compared to $18.1 million in the preceding quarter and $14.1 million in the same quarter last year[13]. - Total revenue for Q4 2024 was $160,571 thousand, up from $152,461 thousand in Q4 2023, representing a year-over-year increase of 5.5%[43]. - Net income for Q4 2024 was $46,391,000, up from $42,624,000 in Q4 2023, marking a 8.5% increase[29]. - Basic earnings per share for Q4 2024 were $1.34, compared to $1.24 in Q4 2023, reflecting an increase of 8.1%[29]. Asset and Deposit Management - Total assets increased to $16.20 billion at December 31, 2024, compared to $16.19 billion at September 30, 2024, and $15.67 billion at December 31, 2023[16]. - Total deposits were $13.51 billion at December 31, 2024, compared to $13.54 billion at September 30, 2024, and $13.03 billion at December 31, 2023[12]. - Core deposits represented 89% of total deposits at December 31, 2024[12]. - Total deposits remained stable at $13,514,398,000, a 4% increase compared to $13,029,497,000 in Q4 2023[30]. - Total common shareholders' equity was $1.77 billion, or 10.95% of total assets, at December 31, 2024, compared to $1.79 billion, or 11.08%, at September 30, 2024[21]. Loan Performance - Total loans receivable increased to $11.35 billion at December 31, 2024, up from $11.22 billion at September 30, 2024, and $10.81 billion at December 31, 2023[17]. - Commercial real estate loans rose 2% to $3.86 billion at December 31, 2024, compared to $3.79 billion at September 30, 2024, and increased 6% from $3.64 billion at December 31, 2023[17]. - Non-performing loans were $37.0 million at December 31, 2024, down from $43.0 million at September 30, 2024, and $29.6 million a year ago[23]. - Total delinquent loans increased to $55,432, with a delinquency rate of 0.49% compared to 0.40% in the prior quarter[32]. - Loans charged off amounted to $4,033, leading to net charge-offs of $2,283 for the quarter[35]. Credit Loss Provisions - The provision for credit losses was $3.0 million in Q4 2024, up from $1.7 million in the previous quarter and $2.5 million in Q4 2023[11]. - The allowance for credit losses on loans was $155.5 million, or 1.37% of total loans receivable, as of December 31, 2024[12]. - The total allowance for credit losses on unfunded loan commitments was $13,562, down from $14,484 at the end of the previous year[36]. - The provision for credit losses was $3,219 for the quarter, compared to $1,967 in the prior quarter[35]. Efficiency and Ratios - The efficiency ratio improved to 61.95% in Q4 2024, compared to 62.63% in the previous quarter and 63.37% in Q4 2023[15]. - The estimated common equity Tier 1 capital ratio was 12.44% at December 31, 2024, indicating strong capital levels above regulatory requirements[22]. - Total capital to risk-weighted assets for Banner Corporation was reported at 15.04%, exceeding the minimum requirement for "Well Capitalized" status[39]. - Return on average assets improved to 1.15% for the quarter, up from 1.09% in the same quarter last year[40]. - Return on average equity was 10.35%, slightly down from 10.98% year-over-year[40]. Year-over-Year Comparisons - Total assets as of December 31, 2024, were $16,200,037,000, representing a 3% increase from $15,670,391,000 a year earlier[30]. - Total deposits rose to $13,259,451 in 2024, up from $13,151,459 in 2023, marking a growth of 0.8%[41]. - The adjusted return on average equity for the year ended December 31, 2024, was 10.19%, down from 13.17% in 2023[42]. - Total non-performing assets decreased to $39,623,000 as of December 31, 2024, down from $45,228,000 in the previous quarter, representing a reduction of 12%[37].