Banner Corporation (BANR) 2023 Financial Results Summary
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Banner Corporation (BANR) Q3 2025 Financial Results Summary
October 15, 2025
Banner Corporation (NASDAQ GSM: BANR) reported its financial results for the third quarter of 2025, highlighting a robust performance compared to prior periods. The results indicate significant growth in net income and net interest income, as well as improvements in operational metrics.
Key Highlights
- Net Income:
- $53.5 million, or $1.54 per diluted share in Q3 2025
- Up 17.9% from $45.5 million ($1.31 per diluted share) in Q2 2025
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Up 18.7% from $45.2 million ($1.30 per diluted share) in Q3 2024
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Net Interest Income:
- $150.0 million in Q3 2025
- Increased 3.9% from $144.4 million in Q2 2025
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Up 10.5% from $135.7 million in Q3 2024
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Revenue:
- Total revenue reached $170.7 million in Q3 2025
- Increased 5% from $162.2 million in Q2 2025
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Up 11% from $153.7 million in Q3 2024
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Adjusted Revenue:
- $168.7 million in Q3 2025
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Compared to $163.0 million in Q2 2025 and $153.7 million in Q3 2024
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Net Interest Margin:
- 3.98% in Q3 2025
- Up 6 basis points from 3.92% in Q2 2025
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Increased 26 basis points from 3.72% in Q3 2024
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Return on Average Assets:
- 1.30% in Q3 2025
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Improved from 1.13% in both Q2 2025 and Q3 2024
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Provision for Credit Losses:
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$2.7 million in Q3 2025, down from $4.8 million in Q2 2025 and up from $1.7 million in Q3 2024
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Core Deposits:
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Represented 89% of total deposits as of September 30, 2025
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Total Deposits:
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$14.02 billion, up 4% from $13.53 billion in Q2 2025 and 4% from $13.54 billion in Q3 2024
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Net Loans Receivable:
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$11.54 billion, a slight increase from $11.53 billion in Q2 2025 and up 4% from $11.07 billion in Q3 2024
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Non-Performing Assets:
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Totaled $45.3 million, or 0.27% of total assets, down from $49.8 million (0.30%) in Q2 2025 and slightly up from $45.2 million (0.28%) in Q3 2024
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Common Shareholders’ Equity per Share:
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Increased to $55.71, up 3% from $53.95 in Q2 2025 and 7% from $52.06 in Q3 2024
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Tangible Common Shareholders’ Equity per Share:
- Increased to $44.79, up 4% from $43.09 in Q2 2025 and 9% from $41.12 in Q3 2024
Dividends and Share Repurchase
- Quarterly Dividend:
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Declared an increase of 4% to $0.50 per share, to be paid on November 14, 2025
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Share Repurchase:
- Purchased 250,000 shares of common stock during Q3 2025 at an average price of $63.11 per share
Summary of Financial Metrics
- Credit Quality:
- Allowance for credit losses – loans was $159.7 million (1.36% of total loans)
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Non-performing loans decreased to $40.0 million from $43.0 million in Q2 2025
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Operational Efficiency:
- Efficiency ratio improved to 59.76% from 62.50% in Q2 2025 and 62.63% in Q3 2024
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Adjusted efficiency ratio reduced to 58.54%
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Asset Growth:
- Total assets of $16.56 billion, a slight increase from $16.44 billion in Q2 2025 and $16.19 billion in Q3 2024
These results reflect Banner’s strategic approach in enhancing its operational metrics while managing risks effectively. The continued focus on core values and client relationships has also contributed to its financial resilience during the quarter.
| Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | |
|---|---|---|---|---|---|
| INTEREST INCOME: | |||||
| Loans receivable | $179,065 | $175,373 | $168,338 | $523,115 | $486,004 |
| Mortgage-backed securities | 15,090 | 15,416 | 16,357 | 46,250 | 49,999 |
| Securities and cash equivalents | 11,693 | 9,470 | 11,146 | 30,610 | 33,664 |
| Total interest income | 205,848 | 200,259 | 195,841 | 599,975 | 569,667 |
| INTEREST EXPENSE: | |||||
| Deposits | 52,251 | 49,316 | 53,785 | 150,304 | 147,248 |
| Federal Home Loan Bank (FHLB) advances | 1,527 | 3,370 | 2,263 | 5,757 | 8,856 |
| Other borrowings | 694 | 675 | 1,147 | 2,063 | 3,482 |
| Subordinated debt | 1,387 | 2,499 | 2,971 | 6,380 | 8,901 |
| Total interest expense | 55,859 | 55,860 | 60,166 | 164,504 | 168,487 |
| Net interest income | 149,989 | 144,399 | 135,675 | 435,471 | 401,180 |
| PROVISION FOR CREDIT LOSSES | 2,670 | 4,795 | 1,692 | 10,604 | 4,581 |
| Net interest income after provision for credit losses | 147,319 | 139,604 | 133,983 | 424,867 | 396,599 |
| NON-INTEREST INCOME: | |||||
| Deposit fees and other service charges | 10,955 | 10,835 | 10,741 | 32,559 | 32,353 |
| Mortgage banking operations | 3,298 | 3,226 | 3,180 | 9,627 | 8,521 |
| Bank-owned life insurance | 2,702 | 2,384 | 2,445 | 7,661 | 7,049 |
| Miscellaneous | 3,175 | 1,221 | 1,658 | 6,742 | 5,538 |
| Net gain (loss) on sale of securities | 377 | (3) | — | 374 | (5,465) |
| Net change in valuation of financial instruments | 223 | 88 | 39 | 626 | (1,143) |
| Total non-interest income | 20,730 | 17,751 | 18,063 | 57,589 | 46,853 |
| NON-INTEREST EXPENSE: | |||||
| Salary and employee benefits | 64,935 | 65,486 | 61,832 | 195,278 | 188,032 |
| Less capitalized loan origination costs | (4,802) | (4,924) | (4,354) | (13,056) | (12,669) |
| Occupancy and equipment | 12,518 | 12,256 | 12,040 | 36,871 | 36,630 |
| Information and computer data services | 8,199 | 8,199 | 7,134 | 24,026 | 21,694 |
| Payment and card processing services | 6,060 | 5,899 | 5,346 | 17,709 | 16,747 |
| Professional and legal expenses | 2,190 | 2,271 | 2,102 | 6,891 | 4,833 |
| Advertising and marketing | 1,395 | 1,087 | 1,161 | 3,072 | 3,438 |
| Deposit insurance | 2,867 | 2,800 | 2,874 | 8,464 | 8,541 |
| State and municipal business and use taxes | 1,655 | 1,416 | 1,432 | 4,525 | 4,130 |
| Real estate operations, |