Banner Corporation beats Q3 earnings estimates, misses on revenue

WALLA WALLA, Wash. - Banner (NASDAQ:BANR ) Corporation (NASDAQ:BANR), the parent company of Banner Bank, reported third quarter net income of $45.2 million, or $1.30 per diluted share, beating analyst estimates of $1.16 per share. However, revenue of $153.7 million fell short of the $154.55 million consensus estimate.

Net interest income rose to $135.7 million in Q3, up from $132.5 million in the previous quarter but down from $141.8 million a year ago. The increase from Q2 reflects higher interest-earning assets and net interest margin. Compared to last year, net interest income declined due to increased funding costs, partially offset by higher yields on earning assets.

Banner's net interest margin expanded to 3.72% in Q3, up from 3.70% in Q2 but down from 3.93% in Q3 2022. The margin benefited from higher loan yields as new loans were originated at higher rates and adjustable-rate loans repriced upwards. However, this was partially offset by increased deposit costs.

Total loans increased 1% sequentially and 6% YoY to $11.22 billion. Total deposits grew 4% from the previous quarter and 3% YoY to $13.54 billion. Core deposits represented 89% of total deposits at quarter-end.

"Banner's third quarter operating results reflect the continued successful execution of our super community bank strategy," said President and CEO Mark Grescovich. "Our earnings benefited from our solid year-over-year loan growth coupled with our expanded net interest margin."

The company maintained its quarterly dividend of $0.48 per share.

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Source: Investing.com