Banner (BANR) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $48.9 million ($1.43 per diluted share), down from $54.7 million in Q1 2026 but up from $45.5 million in Q2 2025.

• HFI loan growth reached $286 million quarter-over-quarter (10% annualized), with total loan originations at $1.26 billion.

• Revenue reached $172.0 million, up 6% year-over-year; net interest income was $153.7 million, up from both prior quarter and year.

• Core deposits declined $59 million quarter-over-quarter but grew $267 million year-over-year.

• Announced a $0.52 per share dividend payable August 14, 2026.

Financial highlights

• Net interest margin (tax equivalent) increased by 2 basis points to 4.13%, up from 4.11% in Q1 2026 and 3.92% in Q2 2025.

• Efficiency ratio (GAAP) was 62.80%, with adjusted non-GAAP efficiency ratio at 61.30%.

• Return on average assets was 1.20%, down from 1.37% in Q1 2026 but up from 1.13% a year ago.

• Allowance for credit losses on loans was $161.8 million (1.35% of loans), with coverage of non-performing loans at 295%.

• Tangible common shareholders' equity per share increased 2% sequentially and 11% year-over-year to $47.82.

Outlook and guidance

• Kroll Bond Rating Agency affirmed senior unsecured debt at BBB+, subordinated debt at BBB, and short-term debt at K2.

• The acquisition of Pacific Financial Corp (Bank of the Pacific) is expected to close in Q3 2026, adding $1.3B in assets and expanding presence in Western Washington and Oregon.

• Management expects strategic investments in technology to enhance efficiency and support long-term growth.