Banner Corp beats Q1 expectations on strong loan growth

Published 16/04/2025, 21:18
Banner Corp beats Q1 expectations on strong loan growth

WALLA WALLA, Wash. - Banner Corporation (NASDAQ:BANR), the parent company of Banner Bank, reported first quarter 2025 net income of $45.1 million, or $1.30 per diluted share, beating analyst estimates. The results were driven by solid loan growth and net interest margin expansion.

Banner’s Q1 earnings per share of $1.30 exceeded the analyst consensus of $1.22. Revenue came in at $160.2 million, also topping expectations of $159.72 million.

Net interest income rose to $141.1 million in Q1, up 6% from $133.0 million a year ago. The increase was attributed to higher yields on interest-earning assets and growth in average loan balances.

Total (EPA:TTEF) loans receivable increased 5% year-over-year to $11.28 billion. Construction, land and land development loans saw particularly strong growth, rising 10% from the previous quarter to $1.67 billion.

"Our earnings for the first quarter of 2025 benefited from our solid year over year loan growth as well as net interest margin expansion during the first quarter as a result of higher yields on interest-earning assets and lower funding costs," said Mark Grescovich, President and CEO.

The company’s net interest margin expanded to 3.92% in Q1, up from 3.74% in the year-ago quarter.

Banner maintained strong credit quality, with non-performing assets at just 0.26% of total assets. The company’s capital position also remained robust, with tangible common equity to tangible assets at 9.23%.

The board declared a quarterly cash dividend of $0.48 per share, payable May 9 to shareholders of record on April 29.

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