Banner called and repaid $100 million of subordinated notes, reducing funding costs.
Banner Corporation reported a net profit available to common shareholders of $45.5 million or $1.31 per diluted share for Q2 2025, up from $1.15 per share in Q2 2024 and $1.30 in Q1 2025.
Core earnings (pretax pre-provision excluding certain items) were $62 million in Q2 2025, compared to $52 million in Q2 2024.
Loan losses were $1.7 million with recoveries of $600,000; net provision for credit losses was $4.8 million.
Loans increased 5% year-over-year and 9% annualized in the quarter; core deposits increased 4% year-over-year and represented 89% of total deposits.
Net interest income increased $3.3 million from prior quarter; net interest margin remained steady at 3.92%.
Noninterest expense was stable with some increases offset by higher capitalized loan origination costs.
Noninterest income decreased $1.4 million due to losses on asset disposals and fair value adjustments.
Return on average assets was 1.13% for Q2 2025.
Revenue from core operations was $163 million in Q2 2025 versus $150 million in Q2 2024.
Strong capital ratios and tangible common equity per share increased 13% year-over-year.
Dafinchi