Banner(US:BANR)2026-01-21 21:38Financial 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].