- Adjusted operating net income was $53.5 million or $1.25 diluted EPS, reflecting a 1.09% return on assets and 6.99% return on average common equity.
- Core deposit growth was strong with non-time deposits up 3.6% year-over-year and 1.6% from the prior quarter.
- Expenses increased 1.8% excluding merger costs, driven by salary increases, equity awards, and higher check and fraud losses.
- Net interest margin (NIM) was 3.37%, higher than previous guidance due to asset repricing and reduced deposit costs.
- Nonperforming loans decreased significantly from $89.5 million to $56.2 million, or 39 basis points of total loans.
- Second quarter GAAP net income was $51.1 million with diluted EPS of $1.20, yielding a 1.04% return on assets and 6.68% return on average common equity.
- Tangible book value per share increased by $0.99 during the quarter, including a $0.28 benefit from other comprehensive income.
- Total loans increased modestly with C&I loans up 3.4% and CRE loans down 1.7%.
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- Capital ratios showed slight changes: Tier 1 leverage capital ratio increased to 11.07%, risk-based capital ratios decreased slightly.
- Diluted earnings per share increased 12.2% to $1.10 in Q2 2025 from $0.98 in Q1 2025.
- Effective tax rate decreased to 19.56% from 19.82%, with updated guidance to 18.5%-19% due to California tax legislation.
- Net charge-offs increased to $12.7 million in Q2 2025 from $2 million in Q1 2025, including a large commercial loan charge-off.
- Net income for Q2 2025 was $77.4 million, an 11.4% increase from $69.5 million in Q1 2025.
- Net interest margin increased slightly from 3.25% to 3.27% due to lower cost of funds.
- Noninterest expense increased by 4% to $89.1 million, mainly due to housing amortization and professional expenses.
- Noninterest income increased by $4.2 million to $15.4 million, driven by foreign exchange and derivative fee income.
- Provision for credit losses decreased to $11.2 million in Q2 2025 from $15.5 million in Q1 2025.
- Total gross loans increased by $432 million or 8.9% annualized, driven by commercial, commercial real estate, and residential loans.
- 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.
- Asset quality remained stable with criticized loans down 8% quarter-over-quarter and allowance coverage at 1.04%.
- Charge-offs increased to $12 million annualized (33 bps) from $8 million (25 bps) in Q1.
- Earnings per diluted share excluding notable items remained flat at $0.19 due to 7 million shares issued in the Territorial acquisition.
- Net income excluding notable items was $24.5 million in Q2 2025, up 7% from $22.9 million in Q1 2025.
- Net interest income increased 17% quarter-over-quarter to $118 million, driven by Territorial acquisition, organic loan growth, and margin expansion.
- Net interest margin expanded 15 basis points to 2.69%.
- Noninterest expense excluding notable items increased to $92 million from $81 million due to Territorial operations addition.
- Noninterest income excluding notable items rose 44% year-over-year to $15.9 million.
- Pretax pre-provision net revenue excluding notable items grew 17% quarter-over-quarter to $41.2 million.
- Provision for credit losses excluding notable items was $10.5 million, up from $5 million in Q1.
- Book value per share decreased to a negative $43.14 as of June 30, 2025, from a negative $40.99 at year-end 2024, mainly due to the consolidated net loss for the first six months of 2025.
- MBIA Insurance Corp. reported statutory net income of $4 million in Q2 2025 compared to a statutory net loss of $35 million in Q2 2024.
- MBIA reported a consolidated GAAP net loss of $56 million for Q2 2025, a significant improvement from a $254 million net loss in Q2 2024.
- National reported statutory net income of $6 million in Q2 2025 versus a statutory net loss of $131 million in Q2 2024.
- The adjusted net loss was $8 million for Q2 2025 compared to $138 million in Q2 2024, primarily due to lower losses in Loss Adjustment Expenses (LAE) at National related to PREPA exposure.
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