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 represented 89% of total deposits at year-end, supporting a strong funding base and increased by $196 million year-over-year (2%).

• Announced a $0.50 per share dividend to be paid in February 2026 and repurchased approximately 250,000 shares at an average price of $63.14.

• Maintained strong capital position with tangible common equity per share up 14% year-over-year.

Financial highlights

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

• Return on average assets for Q4 2025 was 1.24%, down from 1.30% in Q3 2025 but up from 1.15% in Q4 2024.

• Return on tangible common equity for Q4 2025 was 13.11%; full year 2025 was 13.16%.

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

• Allowance for credit losses on loans was $160.3 million (1.37% of total loans), stable year-over-year.

Outlook and guidance

• Expect mid-single digit loan growth in 2026 if the economy holds up, despite ongoing headwinds from commercial real estate payoffs.

• 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 expected to be in the 3% range over 2025.

• Tax rate for 2026 projected at approximately 19%.

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