Banner(BANR) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2025, was $45.14 million, an increase of 20.2$37.56 million for the same period in 2024[14]. - Earnings per common share for Q1 2025 were $1.31, compared to$1.09 for the same period in 2024, representing an increase of 20.2%[14]. - Net income for the three months ended March 31, 2025, was $45,135,000, an increase of 20$37,559,000 for the same period in 2024[16]. - Other comprehensive income for the same period was $29,348,000, compared to a loss of$10,347,000 in 2024[16]. - Total comprehensive income for Q1 2025 reached $74,483,000, significantly higher than$27,212,000 in Q1 2024[16]. Asset and Deposit Changes - Total assets decreased slightly to $16.17 billion as of March 31, 2025, from$16.20 billion at the end of 2024, representing a decline of 0.18%[12]. - Total deposits increased to $13.59 billion as of March 31, 2025, up from$13.51 billion at the end of 2024, marking a growth of 0.6%[12]. - The company reported an increase in deposits, netting $78,867,000, compared to$129,274,000 in the prior year[23]. - Total deposits increased to $13.593 billion as of March 31, 2025, compared to$13.514 billion at December 31, 2024, reflecting a growth of 0.58%[75]. Interest Income and Expenses - Total interest income rose to $193.87 million for Q1 2025, up 4.3$184.69 million in Q1 2024[14]. - Net interest income after provision for credit losses increased to $137.94 million, compared to$132.44 million in the prior year, reflecting a growth of 4.2%[14]. - Net interest income increased to $141.08 million for the three months ended March 31, 2025, up from$132.96 million in the same period of 2024, reflecting a growth of 6.4%[14]. - Total non-interest expense increased to $101.26 million in Q1 2025, compared to$97.64 million in Q1 2024, reflecting a rise of 3.4%[14]. Credit Loss Provisions - The provision for credit losses was $3.14 million for Q1 2025, significantly higher than$0.52 million in Q1 2024, indicating increased caution in lending practices[14]. - The allowance for credit losses on loans was $157.32 million as of March 31, 2025, compared to$155.52 million at the end of 2024[12]. - The provision for credit losses increased to $3,139,000 in Q1 2025, a significant increase from$520,000 in Q1 2024[21]. - The allowance for credit losses increased to $157,323 as of March 31, 2025, from$155,521 at the beginning of the period[70]. Loan Portfolio and Performance - Total loans receivable reached $11.439 billion as of March 31, 2025, an increase from$11.355 billion as of December 31, 2024[38]. - The net loans, after accounting for unearned loan fees and discounts, totaled $11.281 billion as of March 31, 2025[38]. - The company modified loans totaling$5.090 million for borrowers experiencing financial difficulty during the three months ended March 31, 2025[41]. - The commercial business loans that were 90 days or more past due totaled $1.183 million as of March 31, 2025[43]. Securities and Fair Value - As of March 31, 2025, the total amortized cost of available-for-sale securities was$2,426,395 thousand, with a fair value of $2,108,945 thousand, reflecting a gross unrealized loss of$319,418 thousand[32]. - The gross unrealized losses for available-for-sale securities were $319,418 thousand, with 199 securities in an unrealized loss position as of March 31, 2025, compared to 201 at December 31, 2024[33]. - The fair value of loans receivable, net, was estimated at$11.04 billion as of March 31, 2025, down from $11.20 billion at December 31, 2024[76]. - The fair value of mortgage servicing rights at March 31, 2025, was$36.03 million, compared to $37.93 million at December 31, 2024[76]. Tax and Regulatory Matters - The Company had a net deferred tax asset of$139.4 million as of March 31, 2025, and recognized $2.0 million of unrecognized tax benefits related to uncertain tax positions[96]. - Tax credits and other tax benefits recognized amounted to$4.245 million for Q1 2025, up from $2.994 million in Q1 2024, representing a growth of approximately 42$10.7 million for Q1 2025, with an effective tax rate of 19.1%, slightly higher than the 19.0% rate in Q1 2024[97]. Miscellaneous - The company reported a net loss on the sale of securities of $0 for Q1 2025, a significant improvement compared to a loss of$4.90 million in Q1 2024[14]. - The company does not currently provide profits interest awards, making the new FASB guidance on stock compensation not applicable to its consolidated financial statements[30]. - The total shareholders' equity as of March 31, 2025, was $1,833,453,000, an increase from$1,664,508,000 as of March 31, 2024[19].