Mar 31

Banner Q1 2025 Earnings Report

Banner reported strong Q1 results with stable earnings and solid loan growth.

Key Takeaways

Banner Corporation posted a net income of $45.1 million for Q1 2025, driven by a higher net interest margin, steady deposit levels, and continued loan portfolio growth. EPS reached $1.30, with adjusted EPS slightly lower at $1.29.

Net income was $45.1 million, supported by improved interest margins and strong loan performance.

Revenue held steady at $160.2 million, slightly down from the previous quarter but up year-over-year.

Total deposits grew to $13.59 billion with 89% categorized as core deposits.

Net loans receivable reached $11.28 billion, reflecting solid commercial and construction lending activity.

Total Revenue
$160M
Previous year: $145M
+10.8%
EPS
$1.29
Previous year: $1.22
+5.7%
Net Interest Margin
3.92%
Previous year: 3.74%
+4.8%
Return on Avg. Assets
1.15%
Previous year: 0.97%
+18.6%
Efficiency Ratio
63.21%
Previous year: 67.55%
-6.4%
Cash and Equivalents
$442M
Previous year: $209M
+111.2%
Total Assets
$16.2B
Previous year: $15.5B
+4.2%

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Banner Revenue by Segment

Banner Revenue by Geographic Location

Forward Guidance

Banner expects continued strength from core deposits and loan growth, though economic uncertainty and credit risk remain under watch.

Positive Outlook

  • Strong core deposit base representing 89% of total deposits
  • Improved loan yields and interest margin expansion
  • Well-capitalized with CET1 ratio at 12.60%
  • Steady loan growth across commercial and construction segments
  • Low cost of funding and deposit stability

Challenges Ahead

  • Increased non-interest expense impacting efficiency
  • Lower non-interest income, including mortgage banking
  • Economic uncertainty necessitating elevated credit provisions
  • Slight decrease in average interest-earning asset balances
  • Subtle rise in non-performing assets and loans