Dec 31, 2022

Banner Q4 2022 Earnings Report

Reported net income of $54.4 million, or $1.58 per diluted share.

Key Takeaways

Banner Corporation reported a net income of $54.4 million, or $1.58 per diluted share, for the fourth quarter of 2022, an 11% increase compared to the preceding quarter and a 9% increase compared to the fourth quarter of 2021. The results benefited from solid loan growth and higher yields on interest-earning assets that led to net interest margin expansion.

Revenues increased 6% to $172.1 million compared to the preceding quarter and increased 18% compared to the fourth quarter a year ago.

Net interest income increased 9% to $159.1 million compared to the preceding quarter and increased 31% compared to the fourth quarter a year ago.

Net interest margin was 4.23%, compared to 3.85% in the preceding quarter and 3.17% in the fourth quarter a year ago.

Net loans receivable increased 3% to $10.01 billion compared to the preceding quarter and increased 12% compared to the fourth quarter a year ago.

Total Revenue
$172M
Previous year: $146M
+17.9%
EPS
$1.68
Previous year: $1.47
+14.3%
Return on Avg. Assets
1.34%
Previous year: 1.18%
+13.6%
Efficiency Ratio
57.52%
Previous year: 62.88%
-8.5%
Cash and Equivalents
$243M
Previous year: $2.13B
-88.6%
Free Cash Flow
$78.2M
Previous year: -$32.3M
-342.2%
Total Assets
$15.8B
Previous year: $16.8B
-5.8%

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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.

Positive Outlook

  • Accelerating growth in commercial banking
  • Deepening relationships with retail clients
  • Advancing technology strategies to enhance our digital service channels
  • Streamlining underwriting
  • Streamlining back office processes