Mar 31, 2021

Banner Q1 2021 Earnings Report

Net income increased significantly driven by recapture of provision for credit losses.

Key Takeaways

Banner Corporation reported a strong first quarter with net income of $46.9 million, or $1.33 per diluted share, representing a substantial increase compared to both the previous quarter and the same period last year. The results were positively influenced by an $8.0 million recapture of provision for credit losses and strong mortgage banking fee revenue.

Net income was $46.9 million, or $1.33 per diluted share.

Revenues decreased to $141.9 million.

Net loans receivable increased to $9.79 billion.

Core deposits increased 8% to $12.64 billion.

Total Revenue
$142M
Previous year: $138M
+2.5%
EPS
$1.33
Previous year: $0.6
+121.7%
Net Interest Margin
3.44%
Previous year: 4.19%
-17.9%
Return on Avg. Assets
1.24%
Previous year: 0.54%
+129.6%
Efficiency Ratio
65.04%
Previous year: 68.76%
-5.4%
Cash and Equivalents
$1.65B
Previous year: $295M
+459.3%
Free Cash Flow
$320M
Previous year: $49.5M
+547.1%
Total Assets
$16.1B
Previous year: $12.8B
+26.1%

Banner

Banner

Banner Revenue by Geographic Location

Forward Guidance

This press release contains forward-looking statements subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements and could negatively affect Banner’s operating and stock price performance.

Challenges Ahead

  • The COVID-19, pandemic is adversely affecting us, our clients, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain.
  • Deterioration in general business and economic conditions, including increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and increase stock price volatility.
  • In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways.
  • Other factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses, which could necessitate additional provisions for credit losses, resulting both from loans originated and loans acquired from other financial institutions
  • (2) results of examinations by regulatory authorities, including the possibility that any such regulatory authority may, among other things, require increases in the allowance for credit losses or writing down of assets or impose restrictions or penalties with respect to Banner’s activities