Banner Q2 adjusted revenue beats expectations

Overview

• Banner Q2 adjusted revenue beats analyst expectations, per LSEG data

• Net income for Q2 in-line with analyst estimates, per LSEG data

• Company declared a quarterly cash dividend of $0.48 per share

Outlook

• Banner's credit metrics remain strong with a solid reserve for loan losses.

• Company focuses on building client relationships and sustaining a moderate risk profile.

Result Drivers

• LOAN GROWTH - Banner attributes earnings benefit to "solid" year-over-year loan growth, per CEO Mark Grescovich

• HIGHER YIELDS - Increased yields on interest-earning assets contributed to higher net interest income

• FUNDING COSTS - Higher funding costs partially offset benefits from increased yields and loan growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Banner Corp is $72.00, about 7.3% above its July 15 closing price of $66.71

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw6fMHCna