Banner Corp (BANR) Q4 2024 Earnings Call Highlights: Strong Core Earnings Amid Loan Challenges

In This Article:

  • Net Profit: $46.4 million or $1.34 per diluted share for Q4 2024.

  • Full-Year Net Income: $168.9 million for 2024.

  • Core Earnings: $223.2 million for full-year 2024.

  • Q4 Revenue from Core Operations: $160 million.

  • Full-Year Revenue from Core Operations: $615 million for 2024.

  • Return on Average Assets: 1.15% for Q4 2024.

  • Core Deposits: 89% of total deposits.

  • Loan Growth: Loans increased by 5% year-over-year.

  • Core Deposit Growth: Core deposits increased by 4% year-over-year.

  • Tangible Common Equity Per Share: Increased by 9% year-over-year.

  • Dividend: Core dividend of $0.48 per common share.

  • Delinquent Loans: 0.49%, up 9 basis points from the previous quarter.

  • Adversely Classified Loans: Increased by $42 million, totaling 1.69% of total loans.

  • Non-Performing Assets: Declined by $6 million, representing 0.24% of total assets.

  • Net Provision for Credit Losses: $3 million for the quarter.

  • Loan Originations: Declined moderately compared to the previous quarter.

  • Loan-to-Deposit Ratio: 84% at the end of the quarter.

  • Net Interest Margin: Increased 10 basis points to 3.82%.

  • Non-Interest Income: Increased by $2 million from the prior quarter.

  • Non-Interest Expense: Increased by $3.2 million from the prior quarter.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Banner Corp (NASDAQ:BANR) reported a net profit of $46.4 million or $1.34 per diluted share for Q4 2024, an increase from $1.24 per share in Q4 2023.

  • The company maintained a strong core deposit base, with core deposits representing 89% of total deposits.

  • Banner Corp's core earnings for the full year 2024 were $223.2 million, showcasing strong operational performance.

  • The company was recognized by Forbes and Newsweek as one of America's 100 best banks and one of the most trustworthy companies.

  • Banner Corp's liquidity and capital profile remain robust, with all capital ratios exceeding regulatory well-capitalized levels.

Negative Points

  • Delinquent loans increased to 0.49%, up 9 basis points compared to the previous quarter and year-end 2023.

  • Adversely classified loans rose by $42 million, now totaling 1.69% of total loans.

  • Loan originations declined moderately due to reduced consumer demand and muted construction and development loan closings.

  • Non-interest expense increased by $3.2 million from the prior quarter, reflecting higher professional fees and marketing expenses.

  • The agricultural loan portfolio faced challenges due to lower commodity prices, impacting smaller borrowers.