Banner(BANR)2025-04-16 20:35Financial Performance - Banner Corporation reported net income of $45.1 million, or $1.30 per diluted share, for Q1 2025, compared to $46.4 million, or $1.34 per diluted share, in the previous quarter and $37.6 million, or $1.09 per diluted share, in Q1 2024[2]. - Net interest income for Q1 2025 was $141.1 million, an increase from $140.5 million in the previous quarter and $133.0 million in Q1 2024, reflecting higher yields on interest-earning assets and lower funding costs[7]. - Non-interest income was $19.1 million in Q1 2025, down from $20.0 million in the previous quarter but up from $11.6 million in Q1 2024[12]. - Total revenue for Q1 2025 was $160,191,000, compared to $160,571,000 in Q4 2024 and $144,550,000 in Q1 2024[39]. - Net income for Q1 2025 was $45,135,000, compared to $46,391,000 in Q4 2024 and $37,559,000 in Q1 2024[39]. - Return on average assets was 1.15% for Q1 2025, consistent with the previous quarter and up from 0.97% in Q1 2024[11]. - Return on average equity for Q1 2025 was 10.17%, down from 10.35% in Q4 2024 but up from 9.14% in Q1 2024[39]. Deposits and Loans - Total deposits increased to $13.59 billion at March 31, 2025, up 3% from $13.16 billion at March 31, 2024[11]. - Core deposits represented 89% of total deposits at March 31, 2025, indicating a strong core funding position[4]. - Total deposits increased to $13.593 billion in Q1 2025, up 1% from $13.514 billion in Q4 2024 and 3% from $13.158 billion in Q1 2024[28]. - Total loans receivable increased to $11,438,796 thousand, a 1% increase from the prior quarter and a 5% increase year-over-year[30]. - Loans held for sale decreased to $24.5 million at March 31, 2025, from $32.0 million at December 31, 2024, and increased from $9.4 million a year ago[17]. - Commercial business loans decreased by 3% from the prior quarter, totaling $1,283,754 thousand, but increased by 2% year-over-year[30]. Credit Quality - The provision for credit losses was $3.1 million in Q1 2025, compared to $3.0 million in the previous quarter and $520,000 in Q1 2024, reflecting loan growth in the construction portfolio[10]. - The allowance for credit losses on loans was $157.3 million, or 1.38% of total loans receivable, as of March 31, 2025[11]. - Non-performing loans increased to $39.0 million at March 31, 2025, from $37.0 million at December 31, 2024, and $29.5 million a year ago[22]. - Total non-performing assets rose to $42,727 thousand, with a non-performing assets to total assets ratio of 0.26%[34]. - The total delinquent loans as a percentage of total loans receivable increased to 0.63% from 0.49% in the prior quarter[30]. Capital and Ratios - Total common shareholders' equity increased to $1.83 billion, or 11.34% of total assets, at March 31, 2025, compared to $1.77 billion, or 10.95% of total assets, at December 31, 2024[20]. - Banner's estimated common equity Tier 1 capital ratio was 12.60% at March 31, 2025, indicating strong capital levels[21]. - The consolidated Tier 1 leverage capital ratio improved to 11.22% in Q1 2025 from 11.05% in Q4 2024, indicating a stronger capital position[28]. - Total capital to risk-weighted assets ratio for Banner Corporation was 15.23%, significantly above the minimum requirement for "Well Capitalized" status[36]. - Common equity tier 1 capital to risk-weighted assets ratio for Banner Corporation was 12.60%, well above the 4.50% minimum requirement[36]. Operational Highlights - The company plans to host a conference call on April 17, 2025, to discuss its first quarter results[23]. - Banner Corporation operates a commercial bank with total assets of $16.17 billion, providing a full range of financial services[24]. - Forward-looking statements indicate potential risks including economic conditions, interest rate changes, and regulatory impacts[25]. - The efficiency ratio (GAAP) improved to 63.21% in Q1 2025 from 67.55% in Q1 2024[40]. - Tangible common shareholders' equity increased to $1,457,730 thousand in Q1 2025 from $1,398,147 thousand in Q4 2024 and $1,286,426 thousand in Q1 2024[41].