WALLA WALLA, Wash. - Banner (NASDAQ:BANR) Corporation (NASDAQ: BANR), the parent company of Banner Bank, declared stable earnings for the third quarter of 2024, with net income reaching $45.2 million, or $1.30 per diluted share. This performance is in line with the $45.9 million, or $1.33 per diluted share, reported in the same quarter of the previous year and represents an increase from the $39.8 million, or $1.15 per diluted share, in the preceding quarter.
Net interest income for the quarter was $135.7 million, up from $132.5 million in the previous quarter but down from $141.8 million year-over-year. The rise from the preceding quarter reflects growth in interest-earning assets and net interest margin. The year-over-year decrease is attributed to higher funding costs, partially mitigated by increased yields on earning assets.
For the nine-month period ending September 30, 2024, Banner reported net income of $122.5 million, or $3.54 per diluted share, compared to $141.0 million, or $4.09 per diluted share, for the same period in 2023. The results for the nine months included a $4.6 million provision for credit losses and a $5.5 million net loss on the sale of securities.
The corporation announced a quarterly cash dividend of $0.48 per share, payable on November 15, 2024, to shareholders of record on November 5, 2024.
Banner's total assets as of September 30, 2024, were $16.19 billion, with net loans of $11.07 billion and deposits totaling $13.54 billion. The company operates 135 full-service branch offices across four Western states.
The third quarter of 2024 highlights include a revenue of $153.7 million, adjusted revenue of $153.7 million, and a net interest margin of 3.72%. Mortgage banking operations revenue was $3.2 million, and return on average assets stood at 1.13%.
Banner's credit quality remains solid, with a $1.7 million provision for credit losses recorded in the current quarter, down from the previous quarter's $2.4 million. Non-performing assets were $45.2 million, or 0.28% of total assets.
This report is based on a press release statement and represents the financial performance of Banner Corporation for the third quarter of 2024.
In other recent news, Banner Bank, a subsidiary of Banner Corporation, has appointed Mark Borrecco as the new Chief Banking Officer. Borrecco, who brings over two decades of banking experience to the role, will oversee the bank's production lines, including commercial and real estate banking, community banking, and mortgage services. This appointment is part of Banner Bank's broader strategy to accelerate company growth and client acquisition.
Simultaneously, Banner Corporation announced a new stock repurchase program for up to 1,722,787 shares, approximately 5% of the company's current outstanding common stock. This decision is based on the company's view of its stock as an attractive investment and a strategy to enhance long-term shareholder value.
Furthermore, Banner Corporation reported a net profit of $39.8 million in the second quarter of 2024, with core earnings of $52.4 million. This reflects a robust core return on average assets of 1.02%. The company's loan portfolio saw a 6% increase compared to the same period last year, while non-interest income rose by $5.6 million. These recent developments are part of the company's ongoing operations and strategic initiatives.
InvestingPro Insights
Banner Corporation's recent financial performance aligns with several key insights from InvestingPro. The company's stable earnings and consistent dividend payments are reflected in the InvestingPro Tip that Banner "has maintained dividend payments for 30 consecutive years." This long-standing commitment to shareholder returns is particularly noteworthy in the context of the bank's recent quarterly cash dividend announcement.
The reported net income of $45.2 million for the third quarter correlates with the InvestingPro Data showing a P/E Ratio of 13.71, indicating that the company is trading at a reasonable valuation relative to its earnings. This is further supported by the InvestingPro Tip that Banner is "profitable over the last twelve months."
Additionally, the InvestingPro Data reveals a strong market performance, with a 54.46% price total return over the past six months and a 57.49% return over the last year. This aligns with the InvestingPro Tip noting a "significant return over the last week" and that Banner is "trading near 52-week high." These metrics suggest investor confidence in Banner's financial stability and growth prospects.
It's worth noting that InvestingPro offers 10 additional tips for Banner Corporation, providing investors with a more comprehensive analysis of the company's financial health and market position. For those seeking deeper insights, the InvestingPro product offers valuable information to guide investment decisions in the banking sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.