WALLA WALLA, Wash. - Banner (NASDAQ:BANR) Corporation (NASDAQ:BANR), the parent company of Banner Bank, reported a decline in net income for the first quarter of 2024, citing increased funding costs as a contributing factor.
The financial results showed a net income of $37.6 million, or $1.09 per diluted share, a decrease from $42.6 million, or $1.24 per diluted share, in the previous quarter, and down from $55.6 million, or $1.61 per diluted share, in the first quarter of 2023.
The company's net interest income for the quarter was $133.0 million, compared to $138.4 million in the preceding quarter and $153.3 million in the same period last year. The decline was attributed to rising funding costs, which were partially offset by higher yields on earning assets.
Banner also reported a net loss on the sale of securities amounting to $4.9 million and a provision for credit losses of $520,000 for the quarter.
Despite the challenging interest rate environment, Mark Grescovich, President and CEO, expressed confidence in the company's moderate risk profile and strong relationship banking strategy. He highlighted the bank's solid reserve for potential credit losses and strong core deposit base, which represented 89% of total deposits at the end of the quarter.
As of March 31, 2024, Banner Corporation had consolidated assets of $15.52 billion, net loans of $10.72 billion, and deposits totaling $13.16 billion. The company operates 135 full-service branch offices across four Western states.
In addition, Banner's Board of Directors declared a regular quarterly cash dividend of $0.48 per share, payable on May 10, 2024, to shareholders of record on April 30, 2024.
The information is based on a press release statement.
InvestingPro Insights
Banner Corporation's (NASDAQ:BANR) recent earnings report reflects a challenging financial landscape, with a notable decline in net income and increased funding costs. According to InvestingPro data, Banner Corporation has a market capitalization of approximately $1.48 billion and a price-to-earnings (P/E) ratio of 8.08, which is relatively low and may indicate that the stock is undervalued compared to its earnings.
The adjusted P/E ratio for the last twelve months as of Q4 2023 stands at a similar level of 8.03.
Despite the drop in net income, an InvestingPro Tip highlights that Banner Corporation has consistently maintained dividend payments for 30 consecutive years. This track record, coupled with a dividend yield of 4.47% as of early February 2024, may be of interest to income-focused investors.
While revenue has seen a slight decline of 1.37% over the last twelve months as of Q4 2023, another InvestingPro Tip points out that analysts predict the company will remain profitable this year. This is underscored by the fact that the company has been profitable over the last twelve months, with a basic earnings per share (EPS) from continuing operations at $5.35.
For investors seeking more in-depth analysis and additional insights, InvestingPro offers a wealth of information. Currently, there are 2 more InvestingPro Tips available for Banner Corporation, which can be explored at https://www.investing.com/pro/BANR. To access these tips and comprehensive financial data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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