Banner (BANR) Q4 2023 earnings summary

Executive summary

• Q4 net income was $42.6M, or $1.24 diluted EPS; loan growth and higher asset yields were offset by rising funding costs and margin compression.

• Year-end assets were $15.67B, net loans $10.66B and deposits $13.03B; core deposits were 89% of deposits.

Financial highlights

• Q4 revenue was $152.5M versus $154.4M QoQ and $172.1M YoY; adjusted revenue was $157.1M versus $157.7M and $175.7M.

• Q4 net interest income was $138.4M versus $141.8M QoQ and $159.1M YoY; non-interest expense was $96.6M versus $95.9M and $99.0M.

• Adjusted pretax pre-provision earnings were $60.507M in Q4, $62.840M in Q3 and $77.530M in Q4 2022; FY 2023 was $262.670M versus $251.862M in FY 2022.

• FY 2023 net income was $183.6M, or $5.33 diluted EPS, versus $195.4M and $5.67 in FY 2022; adjusted earnings were $202.5M versus $195.9M.

• FY adjusted revenue was $643.9M versus $623.1M; reported revenue was $620.4M versus $628.4M in FY 2022.

Outlook and guidance

• Priorities included growing revenue, protecting net interest margin, improving earning-asset and funding mix, reducing deposit costs, managing the loan-to-deposit ratio and controlling core expenses.

• Capital priorities included maintaining a premium to tangible book value, paying appropriate dividends and preparing for future opportunities.