Banner | 8-K: FY2025 Q4 Revenue: USD 167.67 B

Revenue: As of FY2025 Q4, the actual value is USD 167.67 B.EPS: As of FY2025 Q4, the actual value is USD 1.49, beating the estimate of USD 1.4517.EBIT: As of FY2025 Q4, the actual value is USD -91.36 B.Financial and Operational MetricsNet IncomeBanner Corporation reported net income of $51.2 million for the fourth quarter of 2025, compared to $53.5 million in the preceding quarter and $46.4 million for the fourth quarter of 2024. For the full year ended December 31, 2025, net income was $195.4 million, an increase from $168.9 million for the year ended December 31, 2024. The return on average assets was 1.24%, down from 1.30% in the prior quarter. Return on average tangible common equity was 13.11%, compared to 14.17% in the prior quarter.RevenueRevenue for the fourth quarter of 2025 was $167.7 million, a decrease from $170.7 million in the preceding quarter but an increase of 4% from $160.6 million in the fourth quarter of 2024. Adjusted revenue (non-GAAP) was $169.9 million in the fourth quarter of 2025, compared to $168.7 million in the preceding quarter and $160.1 million in the fourth quarter a year ago. Core revenue for the quarter ending December 31, 2025, was $170 million, and $661 million for the last 12 months.Net Interest IncomeNet interest income for the fourth quarter of 2025 was $152.4 million, up from $150.0 million in the preceding quarter and an 8% increase from $140.5 million in the fourth quarter of 2024. For the year ended December 31, 2025, net interest income was $587.9 million, compared to $541.7 million for the same period in 2024.Net Interest MarginNet interest margin, on a tax equivalent basis, was 4.03% for the fourth quarter of 2025, an increase from 3.98% in the preceding quarter and 3.82% in the fourth quarter of 2024. The net interest margin for the quarter ending December 31, 2025, was 3.94%, and 3.87% for the last 12 months.Non-Interest IncomeTotal non-interest income was $15.2 million in the fourth quarter of 2025, a decrease from $20.7 million in the preceding quarter and $20.0 million in the fourth quarter of 2024. For the year ended December 31, 2025, total non-interest income was $72.8 million, compared to $66.9 million for the year ended December 31, 2024. Non-interest income for the quarter ending December 31, 2025, was $17.4 million, and $73.5 million for the last 12 months. Mortgage banking operations revenue was $3.6 million for the fourth quarter of 2025, compared to $3.3 million in the preceding quarter and $3.7 million in the fourth quarter of 2024.Provision for Credit LossesA provision for credit losses of $2.4 million was recorded in the fourth quarter of 2025, consisting of a $1.5 million provision for credit losses on loans and a $945,000 provision for unfunded loan commitments. This compares to a $2.7 million provision in the preceding quarter and $3.0 million in the fourth quarter of 2024. For the year ended December 31, 2025, the provision for credit losses was $13.0 million, compared to $7.6 million for the year ended December 31, 2024.Non-Interest ExpenseTotal non-interest expense was $104.1 million in the fourth quarter of 2025, an increase from $102.0 million in the preceding quarter and $99.5 million in the fourth quarter of 2024. For the year ended December 31, 2025, total non-interest expense was $408.8 million, compared to $391.5 million for the year ended December 31, 2024. Core operating expenses for the quarter ending December 31, 2025, were $102 million, and $398 million for the last 12 months.Efficiency RatioBanner Corporation’s efficiency ratio was 62.11% for the fourth quarter of 2025, compared to 59.76% in the preceding quarter and 61.95% in the fourth quarter of 2024. The adjusted efficiency ratio (non-GAAP) was 59.87% for the fourth quarter of 2025, compared to 58.54% in the preceding quarter and 60.74% in the year-ago quarter.Pre-Tax Pre-Provision EarningsPre-tax pre-provision earnings (non-GAAP) for the fourth quarter of 2025 were $63,528 thousand, compared to $68,697 thousand for the prior quarter and $61,093 thousand for the fourth quarter of 2024. Adjusted pre-tax pre-provision earnings (non-GAAP) for the fourth quarter of 2025 were $66,141 thousand, compared to $67,766 thousand for the prior quarter and $60,657 thousand for the fourth quarter of 2024.Total AssetsTotal assets were $16.35 billion at December 31, 2025, a decrease from $16.56 billion at September 30, 2025, but an increase from $16.20 billion at December 31, 2024. [Banner Corporation] reported total assets of $16.4 billion.Net Loans ReceivableNet loans receivable were $11.56 billion at December 31, 2025, a slight increase from $11.54 billion at September 30, 2025, and a 3% increase compared to $11.20 billion at December 31, 2024. Total loans for [Banner 银行] were $11.8 billion. HFI Loan growth was $367 million year-over-year, representing a 3% increase. Total loan originations (excluding HFS) were $867 million. 67% of the loan portfolio is floating/adjustable, with 72% of these having floors, and 25% of loans with floors are currently at the floor.Total DepositsTotal deposits were $13.74 billion at December 31, 2025, down from $14.02 billion at September 30, 2025, but up from $13.51 billion at December 31, 2024. Total deposits for [Banner 银行] were $13.7 billion. Core deposits represented 89% of total deposits at December 31, 2025, and grew by $196 million year-over-year, a 2% increase. Core deposits as of December 31, 2025, were $12,211 million. The loan-to-deposit ratio for [Banner Corporation] was approximately 85% as of December 31, 2025.Allowance for Credit Losses - LoansThe allowance for credit losses on loans was $160.3 million, or 1.37% of total loans receivable, at December 31, 2025, compared to $159.7 million, or 1.36%, at September 30, 2025, and $155.5 million, or 1.37%, at December 31, 2024. The total allowance for credit losses – loans was $160,276 thousand as of December 31, 2025, covering 1.37% of total loans and 351% of non-performing loans.Non-Performing AssetsNon-performing assets totaled $51.2 million, or 0.31% of total assets, at December 31, 2025, compared to $45.3 million, or 0.27% of total assets, at September 30, 2025, and $39.6 million, or 0.24% of total assets, at December 31, 2024. Non-performing assets remained low at 0.31% of total assets, an increase of 4 basis points from the last quarter.Capital RatiosAt December 31, 2025, Banner Corporation’s estimated common equity Tier 1 capital ratio was 12.81%, its estimated Tier 1 leverage capital to average assets ratio was 11.41%, and its estimated total capital to risk-weighted assets ratio was 14.69%. Banner Corporation and Banner Bank continue to maintain capital levels in excess of the requirements to be categorized as “well-capitalized.”Dividends and Share RepurchasesBanner Corporation’s Board of Directors declared a regular quarterly cash dividend of $0.50 per share payable February 13, 2026. Dividends paid to shareholders were $0.50 per share in the quarter ended December 31, 2025, up from $0.48 per share paid in the preceding quarter. Banner Corporation repurchased 249,975 shares of its common stock during the fourth quarter of 2025 at an average price of $63.14 per share.Investment PortfolioThe investment portfolio, totaling $2.98 billion, is composed of CMO (33.6%), MBS (26.1%), Municipal (15.9%), CMBS (15.1%), ABS (5.1%), Corporate (4.0%), Agency (0.2%), and Other (0.1%). 76% of investments are Agency MBS/CMO or AAA rated, with 8.1% being non-rated, primarily CRA investments.Company Size and Structure[Banner Corporation] operates 135 offices and employs 1,906 individuals.Outlook / GuidanceThe report does not provide explicit forward-looking financial guidance or specific outlook statements beyond general positive sentiment regarding the company’s strategy and credit quality. The CEO commented that Banner Corporation’s fourth quarter performance reaffirms the value of its super community bank strategy, with strategic investments delivering tangible returns and strengthening the company for long-term success. He also noted that Banner Corporation’s credit quality remains strong, supported by stable credit metrics, a well-funded reserve for loan losses, and a robust capital position for resilience and future growth. The presentation includes forward-looking statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of financial or other performance measures, though actual results may differ due to risks and uncertainties.