NASDAQ$BANR

Banner Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Banner reported net income with solid loan growth and net interest margin expansion.

Banner Corporation reported a net income of $49.1 million, or $1.43 per diluted share, for the third quarter of 2022. This represents a 2% increase compared to the preceding quarter and a 2% decrease compared to the third quarter of 2021. The results reflect successful execution of their super community bank strategy and the ongoing implementation of Banner Forward.

  • Revenues increased 4% to $162.0 million compared to the preceding quarter and the third quarter a year ago.
  • Net interest income increased 14% to $146.4 million compared to the preceding quarter and increased 13% compared to the third quarter a year ago.
  • Net interest margin was 3.85%, compared to 3.44% in the preceding quarter and 3.47% in the third quarter a year ago.
  • Net loans receivable increased 4% to $9.69 billion compared to the preceding quarter and increased 7% compared to the third quarter a year ago.

Headline financials

Total Revenue

$146M

Previous: $130M+12.5%
EPS (adj)

$1.42

Previous: $1.57-9.6%
Net Interest Margin

3.9%

Previous: 3.5%+11.0%
Return on Avg Assets

1.2%

Previous: 1.2%-1.7%
Efficiency Ratio

58.6%

Previous: 65.7%-10.7%
Capital Expenditures

-$12.2M

Previous: -$6.36M-92.7%
Free Cash Flow

$36.8M

Previous: $43.5M-15.4%
Net Income

$49.1M

Previous: $49.9M-1.6%
Operating Income

$15.6M

Previous: $25.3M-38.5%
Gross Profit

$140M

Previous: $122M+15.5%
Cash & Equivalents

$822M

Previous: $2.2B-62.6%
Total Assets

$16.4B

Previous: $16.6B-1.7%
Stock-Based Comp

$2.18M

Previous: $2.36M-7.9%

Revenue & EPS history

Banner · Revenue · Quarterly

$146M

Q3 2022+12.5%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Banner · $2.05M total across 1 segment · Q3 2023

  • Mortgage banking
    $2.05M

Forward guidance

Banner Forward is focused on accelerating growth in commercial banking, deepening relationships with retail clients, and advancing technology strategies to enhance our digital service channels, while streamlining underwriting and back office processes. The revenue enhancements associated with Banner Forward are already starting to have a positive impact on earnings, and the implementation of the revenue initiatives are expected to continue ramping up over the fourth quarter and into 2023. The remaining efficiency-related initiatives associated with Banner Forward are anticipated to be implemented during the fourth quarter, and we expect full implementation of Banner Forward by the end of next year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.1%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.2%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+11.5%

Q1 2020

Best reaction

-18.2%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%+5.9%+1.6%
Q4 2025+0.2%-7.1%-2.6%
Q3 2025-0.3%+0.7%-1.7%
Q2 2025-2.7%-2.1%+0.9%
Q1 2025+1.4%+2.7%+8.6%
Q4 2024+0.1%+1.2%-4.1%
Q3 2024+4.4%-0.6%+13.0%
Q2 2024+0.0%+1.1%-3.1%
Q1 2024+1.8%+5.2%+9.5%
Q4 2023-0.6%-0.9%-7.9%
Q3 2023-0.9%-6.6%+4.7%
Q2 2023-5.8%-7.1%-8.5%
Q1 2023-0.8%-4.6%-12.3%
Q4 2022+5.1%+3.3%+4.8%
Q3 2022-0.4%+0.4%+3.1%
Q2 2022+0.5%+1.0%+8.4%
Q1 2022+0.1%-1.4%-5.1%
Q4 2021-4.6%-1.9%-4.2%
Q3 2021+4.8%+6.3%+7.7%
Q2 2021+1.6%+3.1%+9.2%
Q1 2021+2.6%+7.5%+11.4%
Q4 2020+0.5%-5.0%-0.3%
Q3 2020+5.4%+6.0%+16.9%
Q2 2020+2.1%-2.8%-5.7%
Q1 2020+11.5%+12.1%+19.9%
Q4 2019-1.8%-3.3%-1.4%
Q3 2019-1.0%+1.5%-3.7%
Q2 2019+6.6%+7.3%-2.2%
Q1 2019-6.6%-2.9%-4.3%
Q4 2018-0.3%-3.3%+13.7%
Q3 2018+6.3%+6.8%+7.9%
Q2 2018+2.3%+1.3%+5.5%
Q1 2018+3.8%+3.7%+6.7%
Q4 2017-3.4%-5.1%-2.9%
Q3 2017-6.6%-9.0%-9.5%
Q2 2017+1.4%+0.4%-2.2%
Q1 2017+3.5%+0.7%-0.9%
Q4 2016+0.4%-2.2%+2.3%
Q3 2016-0.6%+0.3%+16.0%
Q2 2016-0.2%-3.2%+0.4%
Q1 2016-0.8%
Q4 2015-0.2%
Q3 2015-0.1%
Q2 2015+1.3%
Q1 2015-0.7%
Q4 2014+4.9%
Q3 2014+3.3%
Q2 2014+4.8%
Q1 2014+2.1%
Q4 2013-1.5%
Q3 2013+1.8%
Q2 2013-0.9%
Q1 2013+1.7%
Q1 2010+1.1%
Q4 2012-5.0%
Q3 2012-0.7%
Q2 2012-0.9%
Q1 2011+1.5%
Q1 2012+1.5%
Q4 2011+3.6%
Q4 2009+3.6%
Q4 2010+3.6%
Q3 2010-6.3%
Q3 2011-6.3%
Q2 2010-18.2%
Q2 2011-18.2%

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