Banner Corp (BANR) Reports Q3 2023 Earnings: Net Income Rises to $45.9 Million
Banner Corp (NASDAQ:BANR) reports Q3 2023 net income of $45.9 million, a 16% increase from the preceding quarter.
Net interest income was $141.8 million, reflecting an increase in funding costs and yields on earning assets.
The company declared a regular quarterly cash dividend of $0.48 per share.
Total assets decreased to $15.51 billion at the end of Q3 2023.
On October 18, 2023, Banner Corp (NASDAQ:BANR) released its earnings report for the third quarter of 2023. The company reported a net income of $45.9 million, or $1.33 per diluted share, marking a 16% increase from the preceding quarter's $39.6 million, or $1.15 per diluted share. However, this represents a 7% decrease from the $49.1 million, or $1.43 per diluted share, reported for the third quarter of 2022.
Financial Performance
Net interest income for Q3 2023 was $141.8 million, compared to $142.5 million in the preceding quarter and $146.4 million in the same quarter a year ago. The decrease in net interest income reflects an increase in funding costs, partially offset by an increase in yields on earning assets. Banner Corp's results for the first nine months of 2023 include an $8.3 million provision for credit losses, compared to a $3.7 million provision for the same period in 2022.
Dividends and Share Performance
Banner Corp's Board of Directors declared a regular quarterly cash dividend of $0.48 per share, payable on November 13, 2023, to common shareholders of record on November 3, 2023. The company's net income for the nine months ended September 30, 2023, was $141.0 million, or $4.09 per diluted share, consistent with the same period in 2022.
Company Outlook
Mark Grescovich, President and CEO of Banner Corp, commented on the company's performance, stating,
Our super community bank business model, which emphasizes a moderate risk profile and strong relationship banking, continues to serve us well and we are well positioned to manage the uncertainties of these economic times."
He added that the company's Q3 2023 performance benefited from loan growth and higher yields on interest-earning assets, despite the higher interest rate environment and its effect on funding costs.
Balance Sheet Highlights
As of September 30, 2023, Banner Corp had $15.51 billion in assets, $10.46 billion in net loans, and $13.17 billion in deposits. The company operates 135 full-service branch offices, including branches located in eight of the top 20 largest western Metropolitan Statistical Areas by population.
Revenue and Non-Interest Income
Revenues for Q3 2023 increased 2% to $154.4 million, compared to $150.9 million in the preceding quarter, and decreased 5% compared to $162.0 million in the third quarter a year ago. Total non-interest income was $12.7 million in the third quarter of 2023, compared to $8.4 million in the preceding quarter and $15.6 million in the third quarter a year ago.
Loan and Deposit Portfolio
Net loans receivable increased 1% to $10.46 billion at the end of Q3 2023, compared to $10.33 billion at the end of Q2 2023, and increased 8% compared to $9.69 billion at the end of Q3 2022. Total deposits increased to $13.17 billion at the end of Q3 2023, compared to $13.10 billion at the end of Q2 2023, and decreased compared to $14.23 billion at the end of Q3 2022.
This article first appeared on GuruFocus.
