Banner Corporation (BANR, Financial) disclosed its financial results for the second quarter, reporting revenue of $163 million, which fell short of the anticipated $167 million. The net interest margin, on a tax equivalent basis, stayed consistent at 3.92% for both the current and previous quarters, rising from 3.70% in the same period last year.
The company's second-quarter performance underscores its super community bank strategy, which emphasizes client relationship building, maintaining a solid funding base, and delivering excellent service while managing risk moderately. The earnings for this period were bolstered by noticeable loan growth compared to the previous year and increased yields on interest-earning assets, though these were somewhat offset by rising funding costs.
Banner's strategic investments have bolstered its operational capacities and set the company on a favorable path for sustained success. The institution's credit metrics remain robust, with a solid reserve for loan losses and a strong capital foundation. At the end of the quarter, core deposits constituted 89% of total deposits. For over a century, Banner has consistently adhered to its core values, focusing on the interests of its clients, communities, colleagues, company, and shareholders, while maintaining reliability throughout economic fluctuations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Banner Corp (BANR, Financial) is $70.00 with a high estimate of $73.00 and a low estimate of $65.00. The average target implies an upside of 4.84% from the current price of $66.77. More detailed estimate data can be found on the Banner Corp (BANR) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Banner Corp's (BANR, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Banner Corp (BANR, Financial) in one year is $57.16, suggesting a downside of 14.39% from the current price of $66.77. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Banner Corp (BANR) Summary page.
BANR Key Business Developments
Release Date: April 17, 2025
- Net Profit: $45.1 million or $1.30 per diluted share for Q1 2025.
- Core Earnings: $59 million for Q1 2025, up from $53 million in Q1 2024.
- Revenue from Core Operations: $160 million for Q1 2025, compared to $150 million in Q1 2024.
- Return on Average Assets: 1.15% for Q1 2025.
- Core Deposits: Represent 89% of total deposits.
- Loan Growth: Loans increased 5% year-over-year.
- Core Deposit Growth: Core deposits increased 3% year-over-year.
- Tangible Common Equity Per Share: Increased by 13% year-over-year.
- Dividend: Core dividend of $0.48 per common share announced.
- Delinquent Loans: 0.63% of total loans, up from 0.49% at year-end 2024.
- Adversely Classified Loans: 1.73% of total loans, up from 1.69% in the previous quarter.
- Nonperforming Assets: 0.26% of total assets.
- Loan Losses: $3.7 million for the quarter.
- Net Provision for Credit Losses: $3.1 million for the quarter.
- Loan Originations: Down 33% compared to the previous quarter.
- Loan Outstanding Growth: $84 million increase in the quarter.
- Net Interest Margin: Increased 10 basis points to 3.92%.
- Non-Interest Income: Decreased by $900,000 from the prior quarter.
- Non-Interest Expense: Increased by $1.8 million from the prior quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Banner Corp (BANR, Financial) reported a net profit of $45.1 million or $1.30 per diluted share for Q1 2025, an increase from $1.09 per share in Q1 2024.
- Core earnings for Q1 2025 were $59 million, up from $53 million in Q1 2024, demonstrating strong earnings power.
- The company maintained a strong core deposit base, representing 89% of total deposits, and achieved a 3% increase in core deposits year-over-year.
- Banner Corp (BANR) was recognized by Forbes as one of America's 100 Best Banks and one of the best banks in the world, highlighting its strong market reputation.
- The company announced a core dividend of $0.48 per common share, reflecting confidence in its financial stability and shareholder returns.
Negative Points
- Delinquent loans increased to 0.63% of total loans, up from 0.49% at year-end and 0.36% in March 2024, indicating rising credit risk.
- Adversely classified loans rose modestly to 1.73% of total loans, reflecting economic pressures and higher operating costs.
- Nonperforming assets increased by $3 million, representing 0.26% of total assets, which could impact future profitability.
- Loan originations were down 33% compared to the previous quarter, particularly in the commercial and commercial real estate portfolios.
- The impact of trade tariffs and economic uncertainty poses risks to small businesses and consumers, potentially affecting future loan performance.
