Banner (BANR) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $45.5 million ($1.31 per diluted share), up from $39.8 million ($1.15) year-over-year and $45.1 million ($1.30) sequentially.

• Revenue grew 8% year-over-year to $162.2 million; adjusted revenue was $163.0 million, up from $150.5 million.

• Net interest margin held steady at 3.92% quarter-over-quarter, with return on average assets at 1.13%.

• Core deposits represented 89% of total deposits at quarter-end.

• Board declared a $0.48 per share quarterly dividend, payable August 15, 2025.

Financial highlights

• Net interest income rose to $144.4 million, up 9% year-over-year and 2% sequentially.

• Efficiency ratio improved to 62.50% from 65.53% year-over-year; adjusted efficiency ratio was 60.28%.

• Allowance for credit losses on loans was $160.5 million (1.37% of total loans).

• Non-performing assets were $49.8 million (0.30% of total assets), up from $33.3 million (0.21%) a year ago.

• Tangible common equity per share rose 10% year-over-year to $53.95; tangible common equity to tangible assets was 9.28%.

Outlook and guidance

• Management expects mid-single digit loan growth for full year 2025, with Q3 typically slower than Q2.

• Margin outlook benefits from potential seasonal deposit inflows and reduced reliance on FHLB advances.

• Loan yields expected to increase 4–5 basis points per quarter if Fed remains on pause.

• Focus remains on scalable growth, core banking competency, and maintaining a moderate risk profile.

• Forward-looking statements caution on economic, interest rate, and geopolitical risks, as well as regulatory and competitive pressures.