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WALLA WALLA - Banner Corporation (NASDAQ:BANR), the parent company of Banner Bank, reported second quarter earnings that topped analyst expectations, while revenue came in slightly below estimates. The company’s shares were trading flat following the announcement.
Banner posted adjusted earnings per share of $1.35 for the second quarter, exceeding the analyst consensus of $1.30. Revenue reached $162.2 million, falling short of the $167.04 million analysts had expected, but still representing an 8% increase from $149.7 million in the same quarter last year. Net interest income rose 9% YoY to $144.4 million.
The bank’s net interest margin remained steady at 3.92% compared to the previous quarter, and improved from 3.70% in the second quarter of 2024. Total (EPA:TTEF) loans receivable increased 5% YoY to $11.69 billion, while deposits grew 3% to $13.53 billion compared to the prior year.
"Banner’s second quarter performance highlights the strength of our super community bank strategy, which focuses on building client relationships, preserving a strong funding base, and delivering exceptional service while sustaining a moderate risk profile," said Mark Grescovich, President and CEO.
The company’s credit quality metrics showed some deterioration, with non-performing assets increasing to $49.8 million, or 0.30% of total assets, compared to $33.3 million, or 0.21% of total assets a year ago. The bank recorded a $4.8 million provision for credit losses during the quarter, up from $2.4 million in the same period last year.
Banner’s efficiency ratio improved to 62.50% from 65.53% in the year-ago quarter. The company maintained its quarterly dividend at $0.48 per share, payable on August 15 to shareholders of record as of August 5.
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