Banner Corporation posts solid Q4 earnings, declares dividend

Published 22/01/2025, 22:06
Banner Corporation posts solid Q4 earnings, declares dividend
BANR
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WALLA WALLA, Wash. - Banner Corporation (NASDAQ:BANR), the parent company of Banner Bank, reported a net income of $46.4 million, or $1.34 per diluted share, for the fourth quarter of 2024. This performance marks an improvement from the $45.2 million, or $1.30 per diluted share, recorded in the preceding quarter and the $42.6 million, or $1.24 per diluted share, from the same period in the previous year. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, suggesting continued momentum in the company’s performance.

The company’s net interest income for the quarter was $140.5 million, a rise from both the preceding quarter’s $135.7 million and the $138.4 million reported in the fourth quarter of 2023. The increase is attributed to a decrease in funding costs and growth in interest-earning assets, despite a decrease in yields on these assets. Compared to the previous year, the boost in net interest income was driven by higher yields and average balances of interest-earning assets, balanced against increased funding costs.

For the full year ended December 31, 2024, Banner Corporation saw a net income of $168.9 million, or $4.88 per diluted share, a decrease from the $183.6 million, or $5.33 per diluted share, for the year ended December 31, 2023. The annual net interest income also declined to $541.7 million from the previous year’s $576.0 million, mainly due to increased deposit costs, which were partially offset by a rise in interest income on loans.

The Board of Directors declared a regular quarterly cash dividend of $0.48 per share, payable on February 14, 2025, to common shareholders of record as of February 4, 2025. Notably, InvestingPro analysis reveals that Banner Corporation has maintained dividend payments for 30 consecutive years, demonstrating a strong commitment to shareholder returns. The current dividend yield stands at 2.72%.

As of December 31, 2024, Banner’s consolidated assets totaled $16.20 billion, with net loans of $11.20 billion and deposits amounting to $13.51 billion. The company operates 135 full-service branch offices across four Western states.

Banner’s President and CEO, Mark Grescovich, commented on the results, highlighting the company’s strategy, loan growth, and margin expansion due to lower funding costs. He also noted the company’s strong credit metrics, solid reserve for loan losses, and robust capital base. This strength is reflected in the company’s market performance, with a remarkable 50.13% total return over the past year. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with a "GOOD" overall Financial Health rating. For deeper insights into Banner Corporation’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The company’s financial performance, including the provision for credit losses and non-interest income and expenses, was detailed in the press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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