Sep 30, 2022

Banner Q3 2022 Earnings Report

Banner reported net income with solid loan growth and net interest margin expansion.

Key Takeaways

Banner Corporation reported a net income of $49.1 million, or $1.43 per diluted share, for the third quarter of 2022. This represents a 2% increase compared to the preceding quarter and a 2% decrease compared to the third quarter of 2021. The results reflect successful execution of their super community bank strategy and the ongoing implementation of Banner Forward.

Revenues increased 4% to $162.0 million compared to the preceding quarter and the third quarter a year ago.

Net interest income increased 14% to $146.4 million compared to the preceding quarter and increased 13% compared to the third quarter a year ago.

Net interest margin was 3.85%, compared to 3.44% in the preceding quarter and 3.47% in the third quarter a year ago.

Net loans receivable increased 4% to $9.69 billion compared to the preceding quarter and increased 7% compared to the third quarter a year ago.

Total Revenue
$162M
Previous year: $155M
+4.2%
EPS
$1.42
Previous year: $1.57
-9.6%
Net Interest Margin
3.85%
Previous year: 3.47%
+11.0%
Return on Avg. Assets
1.18%
Previous year: 1.2%
-1.7%
Efficiency Ratio
58.65%
Previous year: 65.7%
-10.7%
Gross Profit
$163M
Previous year: $158M
+3.1%
Cash and Equivalents
$822M
Previous year: $2.2B
-62.6%
Free Cash Flow
$37.2M
Previous year: $8.84M
+320.3%
Total Assets
$16.4B
Previous year: $16.6B
-1.7%

Banner

Banner

Banner Revenue by Geographic Location

Forward Guidance

Banner Forward is focused on accelerating growth in commercial banking, deepening relationships with retail clients, and advancing technology strategies to enhance our digital service channels, while streamlining underwriting and back office processes. The revenue enhancements associated with Banner Forward are already starting to have a positive impact on earnings, and the implementation of the revenue initiatives are expected to continue ramping up over the fourth quarter and into 2023. The remaining efficiency-related initiatives associated with Banner Forward are anticipated to be implemented during the fourth quarter, and we expect full implementation of Banner Forward by the end of next year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income