Banner (BANR) Q4 2025 earnings summary

Executive summary

• Net income for Q4 2025 was $51.2 million ($1.49 per diluted share), down from $53.5 million in Q3 2025 but up from $46.4 million in Q4 2024; full-year 2025 net income was $195.4 million ($5.64 per share), up from $168.9 million in 2024.

• Core earnings for 2025 were $255 million, up from $223.2 million in 2024.

• Core deposits increased by $196 million year-over-year (2%) and represented 89% of total deposits at year-end.

• Announced a $0.50 per share dividend to be paid in February 2026 and repurchased approximately 250,000 shares during the quarter.

• Return on average assets for Q4 2025 was 1.24%.

Financial highlights

• Net interest margin for Q4 2025 was 4.03%, up from 3.98% in Q3 2025 and 3.82% in Q4 2024.

• Full year 2025 EPS was $5.64, up from $4.88 in 2024, driven by an 8.5% increase in net interest income.

• Efficiency ratio for Q4 2025 was 62.11%; adjusted efficiency ratio was 59.87%.

• Return on average tangible common equity for Q4 2025 was 13.11%.

• Allowance for credit losses on loans was $160.3 million, covering 1.37% of total loans.

Outlook and guidance

• Expectation for mid-single digit loan growth in 2026, contingent on economic stability.

• Net interest margin outlook depends on Federal Reserve actions; flat to slight expansion if rates hold, potential compression with multiple rate cuts.

• Expense growth for 2026 projected at normal inflationary levels (~3%).

• Tax rate for 2026 expected around 19%.

• Management highlights ongoing strategic investments, strong credit quality, and robust capital position as key to long-term growth.