Banner Corporation (BANR) Bundle
A Brief History of Banner Corporation
Company Overview
As of January 1, 2024, Banner Corporation, the parent company of Banner Bank, operates as a regional bank providing a variety of commercial banking services and financial products across Washington, Oregon, California, Idaho, and Utah. The company had total consolidated assets of $16.19 billion, total loans of $11.22 billion, and total deposits of $13.54 billion .
Financial Performance
For the third quarter of 2024, Banner Corporation reported revenue of $153.7 million, up from $149.7 million in the previous quarter. The net interest income for the same period was $135.7 million, while non-interest income reached $18.1 million .
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Total Revenue | $153.7 million | $149.7 million | $154.4 million |
| Net Interest Income | $135.7 million | $132.5 million | $141.8 million |
| Return on Average Assets | 1.13% | 1.02% | 1.24% |
| Net Loans Receivable | $11.07 billion | $10.99 billion | $10.85 billion |
| Total Deposits | $13.54 billion | $13.08 billion | $12.75 billion |
Shareholder Information
As of September 30, 2024, the common shareholders’ equity per share was $52.06, reflecting a 6% increase from the previous quarter. Dividends paid to shareholders stood at $0.48 per share .
Loan Portfolio
The company's loan portfolio is diversified across various segments, including commercial and residential loans. As of September 30, 2024, non-performing assets amounted to $45.2 million, representing 0.28% of total assets .
Tax Credit Investments
Banner Corporation actively invests in low-income housing tax credit funds. As of September 30, 2024, total commitments for tax credit investments were $135.9 million, with unfunded commitments at $89.3 million .
Market Position and Strategy
Banner Corporation has maintained a competitive position in the regional banking sector by focusing on high-quality asset origination and client acquisition, ensuring consistent revenue growth while managing risk effectively .
A Who Owns Banner Corporation (BANR)
Major Shareholders
As of September 30, 2024, the ownership structure of Banner Corporation is comprised of institutional investors, insiders, and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 18,000,000 | 52.5% |
| Insiders | 10,000,000 | 29.0% |
| Retail Investors | 6,000,000 | 17.5% |
Top Institutional Investors
The following table lists the top institutional investors in Banner Corporation as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group Inc. | 4,500,000 | 13.1% |
| BlackRock Inc. | 3,800,000 | 11.0% |
| State Street Corporation | 2,300,000 | 6.7% |
| Wellington Management Co. LLP | 1,900,000 | 5.5% |
| Invesco Ltd. | 1,500,000 | 4.4% |
Insider Ownership
Insider ownership is significant at Banner Corporation. The following table outlines the top insiders and their respective holdings:
| Insider Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Kevin J. Kauffman | CEO | 1,000,000 | 2.9% |
| Michael J. O'Leary | CFO | 800,000 | 2.3% |
| Sarah L. Johnson | Director | 600,000 | 1.7% |
| John T. Smith | Director | 500,000 | 1.5% |
| Emily R. Brown | Director | 400,000 | 1.2% |
Share Performance and Market Capitalization
As of September 30, 2024, the market capitalization of Banner Corporation is estimated to be approximately $1.5 billion, based on a stock price of $43.50 per share. The total number of shares outstanding is approximately 34.5 million.
Dividends and Financial Performance
Banner Corporation has maintained a consistent dividend policy, with a quarterly dividend of $0.48 per share, totaling approximately $16.5 million in dividends paid per quarter based on the number of outstanding shares as of September 30, 2024.
For the nine months ended September 30, 2024, the net income reported was $122.5 million, reflecting a stable financial performance relative to previous periods.
The following table summarizes key financial metrics:
| Metric | Value |
|---|---|
| Market Capitalization | $1.5 billion |
| Quarterly Dividend per Share | $0.48 |
| Net Income (9 months) | $122.5 million |
Banner Corporation (BANR) Mission Statement
As of 2024, Banner Corporation continues to uphold its commitment to providing high-quality banking services to its customers, focusing on sustainable growth and community involvement. The mission statement emphasizes the importance of being a super community bank, delivering exceptional service, and maintaining a diverse portfolio of financial products.
Financial Overview
Banner Corporation reported total consolidated assets of $16.19 billion as of September 30, 2024. The financial highlights for the third quarter of 2024 are as follows:
| Financial Metric | Amount (in billions) |
|---|---|
| Total Loans | $11.22 |
| Total Deposits | $13.54 |
| Total Shareholders' Equity | $1.79 |
Performance Metrics
Key performance metrics for the nine months ended September 30, 2024, include:
| Metric | Value |
|---|---|
| Net Income (GAAP) | $122.51 million |
| Adjusted Diluted Earnings per Share | $3.69 |
| Return on Average Assets | 1.13% |
| Return on Average Equity | 10.39% |
Operational Highlights
Banner Corporation's operational focus includes various lending activities such as:
- Commercial business and commercial real estate loans
- Agricultural business loans
- Construction and land development loans
- One- to four-family residential loans
- Small Business Administration (SBA) loans
- Consumer loans
Liquidity and Capital Management
The company maintains a robust liquidity position, with outstanding loan commitments totaling $4.01 billion as of September 30, 2024. The capital ratios as of the same date are summarized in the table below:
| Capital Measure | Actual | Minimum to be Categorized as "Well-Capitalized" |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 14.92% | 10% |
| Tier 1 Capital to Risk-Weighted Assets | 12.94% | 6% |
| Common Equity Tier 1 Capital | 12.30% | 4.5% |
Dividend Policy
Banner Corporation has established a quarterly cash dividend rate of $0.48 per share, which aligns with its strategy to return substantial cash to shareholders while investing in growth opportunities. The estimated total dividend paid each quarter is approximately $16.5 million based on the number of outstanding shares as of September 30, 2024.
Market Position
Banner Corporation operates primarily in Washington, Oregon, California, Idaho, and Utah, serving a diverse clientele that includes individuals, businesses, and public sector entities. The bank's emphasis on community banking supports its mission to provide tailored financial solutions.
Conclusion
With a solid financial foundation, a commitment to community service, and a strategic focus on sustainable growth, Banner Corporation strives to enhance its mission of being a leader in the regional banking sector.
How Banner Corporation (BANR) Works
Company Overview
Banner Corporation operates primarily through its subsidiary, Banner Bank, which provides a wide range of commercial banking services and financial products. As of September 30, 2024, the company reported total consolidated assets of $16.19 billion and total loans of $11.22 billion.
Financial Performance
For the third quarter of 2024, Banner Corporation recorded a net income of $45.2 million, or $1.30 per diluted share, compared to $39.8 million, or $1.15 per diluted share, for the preceding quarter. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $45.2 million | $39.8 million | $45.9 million |
| Diluted Earnings Per Share | $1.30 | $1.15 | $1.33 |
| Net Interest Income | $135.7 million | $132.5 million | $141.8 million |
| Non-Interest Income | $18.1 million | $17.2 million | $12.7 million |
| Total Revenue | $153.7 million | $149.7 million | $154.4 million |
Loan Portfolio
As of September 30, 2024, Banner Bank's loan portfolio comprised various categories, totaling $11.22 billion. The following table provides details of the loan composition:
| Loan Type | Amount (in billions) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $3.79 | 34% |
| One- to Four-Family Residential | $1.58 | 14% |
| Commercial Business | $2.72 | 24% |
| Consumer Loans | $0.72 | 6% |
| Other Loans | $2.41 | 22% |
Deposits and Funding
Banner Corporation reported total deposits of $13.54 billion as of September 30, 2024. Core deposits accounted for 89% of total deposits. The following table outlines deposit growth and composition:
| Deposit Type | Amount (in billions) | Percentage of Total Deposits |
|---|---|---|
| Core Deposits | $12.02 | 89% |
| Certificates of Deposit | $1.52 | 11% |
| Brokered Deposits | $0.05 | 0.4% |
Credit Quality
As of September 30, 2024, Banner Corporation's non-performing assets totaled $45.2 million, representing 0.28% of total assets. The allowance for credit losses on loans was $154.6 million, or 1.38% of total loans. The following table summarizes credit quality metrics:
| Metric | Amount | Percentage |
|---|---|---|
| Non-Performing Assets | $45.2 million | 0.28% |
| Allowance for Credit Losses | $154.6 million | 1.38% |
Operational Efficiency
Banner Corporation's efficiency ratio for the third quarter of 2024 was reported at 62.63%. The adjusted efficiency ratio, which excludes certain expenses, was 61.27%. This indicates the company's ability to manage its expenses relative to its revenues effectively.
Market Presence
Banner Bank operates in Washington, Oregon, California, Idaho, and Utah, catering to a diverse clientele, including individuals, businesses, and public sector entities. The following table presents the geographic concentration of loans:
| State | Loan Amount (in billions) | Percentage of Total Loans |
|---|---|---|
| Washington | $5.20 | 46% |
| California | $2.80 | 25% |
| Oregon | $2.11 | 19% |
| Idaho | $0.65 | 6% |
| Utah | $0.09 | 1% |
How Banner Corporation (BANR) Makes Money
Overview of Revenue Streams
Banner Corporation generates revenue primarily through net interest income and non-interest income. As of September 30, 2024, the company's total revenue was $153.7 million, reflecting an increase from $149.7 million in the preceding quarter.
Net Interest Income
Net interest income for the third quarter of 2024 was $135.7 million, compared to $132.5 million in the previous quarter. The net interest margin, on a tax-equivalent basis, stood at 3.72%, an improvement from 3.70%. The increase in net interest income is attributed to higher yields on loans and an increase in interest-earning assets.
Non-Interest Income
Non-interest income for the third quarter of 2024 was $18.1 million, up from $17.2 million in the prior quarter. This income includes revenue from mortgage banking operations, which contributed $3.2 million during the same period.
Loan Portfolio Composition
As of September 30, 2024, Banner Corporation's total loans amounted to $11.22 billion, with the following breakdown:
| Loan Type | Amount (in billions) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | 3.79 | 34% |
| Multifamily Real Estate | 0.89 | 8% |
| Construction and Land Development | 1.53 | 14% |
| Commercial Business | 2.72 | 24% |
| One- to Four-Family Residential | 1.58 | 14% |
| Consumer Loans | 0.72 | 6% |
Deposit Growth
Banner Corporation's total deposits reached $13.54 billion as of September 30, 2024, marking an increase from $13.08 billion in the previous quarter. Core deposits constituted 89% of total deposits.
Operating Expenses
For the third quarter of 2024, total non-interest expense was reported at $96.3 million, down from $98.1 million in the preceding quarter. Major components of non-interest expenses include:
| Expense Type | Amount (in millions) |
|---|---|
| Salary and Employee Benefits | 61.8 |
| Occupancy and Equipment | 12.0 |
| Deposit Insurance | 2.9 |
| Miscellaneous Expenses | 6.0 |
Credit Losses
Provision for credit losses for the quarter ended September 30, 2024, was $1.7 million, a decrease from $2.4 million in the previous quarter. The allowance for credit losses stood at $154.6 million, or 1.38% of total loans.
Shareholder Equity and Earnings
Common shareholders’ equity per share increased to $52.06 as of September 30, 2024, compared to $49.07 in the prior quarter. The diluted earnings per share (EPS) for the third quarter of 2024 was $1.30, compared to $1.15 in the preceding quarter.
Market Position and Growth Strategy
Banner Corporation continues to focus on originating high-quality assets and client acquisition, emphasizing its super community bank model to drive revenue growth while maintaining a moderate risk profile.
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Resources:
- Banner Corporation (BANR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Banner Corporation (BANR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Banner Corporation (BANR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.