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- **Record Profit & Dividend Growth**: $53.5M net profit (+18% Y/Y), 4% dividend increase to $0.50/share.
- **Margin Expansion**: 3.98% net interest margin, up 6bps Q/Q from loan repricing and cost control.
- **Deposit Strength**: Core deposits up 4% Y/Y, 89% of total deposits in low-cost categories.
- **Credit Quality**: Delinquency rate 0.39%, nonperforming assets 0.27%, allowance coverage 1.36%.
- **Strategic Investments**: $1.4B liquidity, new tech platform for scalability, AI initiatives in early stages.
- **M&A Appetite**: Open to accretive acquisitions, ample capital for growth.

**【CEO Summary Section】**
- Reported net profit of $53.5 million ($1.54 per diluted share), up from $1.30 per share in Q3 2024.
- Core earnings rose to $67.8 million, up 8.5% Q/Q and 18% Y/Y, driven by strong net interest income and expense control.
- Loans and core deposits grew 4% Y/Y, with 89% of deposits in low-cost core categories.
- Announced 4% dividend increase to $0.50 per share and repurchased 250,000 shares.
- Received multiple industry recognitions, including Forbes' "Best Banks in the World" and J.D. Power's "Best Bank in the Northwest."

**【CFO Financial Commentary】**
- Net interest margin expanded to 3.98% (up 6bps Q/Q), driven by 5bps loan yield increase and 3bps funding cost decline.
- Deposit growth of $426 million in core accounts, total deposits up $489 million Q/Q.
- Noninterest income increased $3 million Q/Q, including $1.4 million gain on asset disposals.
- Noninterest expense rose $674,000 Q/Q due to marketing, employee costs, and $1 million lease termination expenses.
- Liquidity remains strong with $1.4 billion available borrowing capacity.

**【Credit Officer Commentary】**
- Delinquency rate at 0.39%, nonperforming assets 0.27%, and allowance coverage 1.36% of loans.
- Loan originations down $172 million Q/Q but up 4% Y/Y, with small business loans growing 8%.
- Construction portfolio stable at 15% of loans, with 5% in residential construction.
- Expect mid-single-digit loan growth for full year, driven by strong fourth-quarter pipeline.

**【Q&A Highlights】**
- **Margin Outlook**: 3.98% net interest margin expected to remain flat in Q4 with Fed cuts, potential 1-2bps compression.
- **Deposit Pricing**: Reduced CD rates 25bps post-Fed cut, but commercial clients focus on relationship value.
- **Competitive Landscape**: Strong pipeline but facing longer IO periods in underwriting.
- **Capital Deployment**: Share buybacks at $63.50 average price, M&A appetite if accretive opportunities arise.
- **Technology Investment**: New loan/deposit system launching Q4 for scalability, AI initiatives in early stages.
- **Loan-to-Deposit Ratio**: Target 84-85%, no plans to exceed 95%.
- **Special Dividends**: Unlikely, focus on core dividend and buybacks.

Banner Corporation (BANR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BANR

BANR fundamentals

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