NASDAQ$BANR

Banner Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Banner reported net income for Q4 2020, reflecting continued execution of their super community bank strategy.

Banner Corporation reported a net income of $39.0 million, or $1.10 per diluted share, for the fourth quarter of 2020. This represents a 7% increase compared to the preceding quarter and a 16% increase compared to the fourth quarter of 2019. The results reflect the continued execution of their super community bank strategy amidst the economic challenges of 2020.

  • Net income increased by 16% compared to Q4 2019, reaching $39.0 million.
  • Revenues increased 4% compared to Q4 2019, totaling $144.9 million.
  • Net loans receivable decreased to $9.70 billion at the end of the quarter.
  • Core deposits increased 31% compared to a year ago, reaching $11.65 billion.

Headline financials

Total Revenue

$145M

Previous: $140M+3.7%
EPS (adj)

$1.08

Previous: $1.07+0.9%
Net Interest Margin

3.6%

Previous: 4.2%-15.0%
Return on Avg Assets

1.0%

Previous: 1.1%-2.8%
Efficiency Ratio

66.8%

Previous: 67.0%-0.4%
Capital Expenditures

$2.87M

Previous: $7.96M-64.0%
Free Cash Flow

-$15.6M

Previous: $72.4M-121.6%
Net Income

$39M

Previous: $33.7M+15.9%
Operating Income

$48.8M

Previous: $42.1M+15.9%
Cash & Equivalents

$1.23B

Previous: $308M+301.1%
Total Assets

$15B

Previous: $12.6B+19.2%
Stock-Based Comp

$2.28M

Previous: $2.04M+11.5%

Revenue & EPS history

Banner · Revenue · Quarterly

$145M

Q4 2020+3.7%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Banner · $19M total across 2 segments · Q4 2020

  • Mortgage banking
    $10.7M+71.1%
  • Deposit & service fees
    $8.29M-13.9%

Forward guidance

While the provided document does not contain specific forward guidance, it highlights several factors that may influence future performance. These include the ongoing impact of the COVID-19 pandemic, changes in economic conditions, interest rate movements, competitive pressures, and regulatory changes.

Tailwinds

  • The Company maintains capital levels in excess of the requirements to be categorized as “well-capitalized.”
  • The company is actively participating in the latest SBA PPP loan program.
  • The company continues to offer payment and financial relief programs for borrowers impacted by COVID-19.
  • Client adoption of mobile and digital banking accelerated.
  • Non-performing assets decreased to 0.24% of total assets.

Headwinds

  • The COVID-19 pandemic is adversely affecting the company, its customers and counterparties.
  • The low interest rate environment continues to put downward pressure on loan yields.
  • Total revenue decreased 3% to $144.9 million for the fourth quarter of 2020, compared to $149.2 million in the preceding quarter
  • Mortgage banking revenues decreased 35% to $10.7 million, compared to $16.6 million in the preceding quarter
  • Continued deterioration in general business and economic conditions, including further increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility.

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 Q4 2020

Historical avgQ4 2020

+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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