Banner Q3 EPS misses analyst expectations
Overview
U.S. commercial bank's Q3 revenue rose 4% yr/yr, driven by Pacific Financial acquisition and loan growth
Q3 EPS missed analyst expectations
Company completed Pacific Financial acquisition, expanding presence in Washington and Oregon
Outlook
Company expects solid credit quality and strong capital to support future growth
Banner says strategic investments are positioning the company for long-term success
Company expects to benefit from a strong core deposit base
Result Drivers
PACIFIC FINANCIAL ACQUISITION - Net interest income rose due to increased interest-earning assets from Pacific Financial acquisition and organic loan growth
HIGHER ASSET YIELDS - Net interest margin improved due to higher average yields on interest-earning assets, partly offset by increased funding costs
MERGER COSTS - Higher non-interest expense driven by merger-related costs and increased expenses from acquired operations
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted Revenue | $179.07 mln | ||
Q3 Adjusted EPS | $1.51 | ||
Q3 EPS | Miss | $1.36 | $1.44 (7 Analysts) |
Q3 Net Income | Miss | $47.71 mln | $48.21 mln (7 Analysts) |
Q3 Net Interest Income | $161.89 mln | ||
Q3 Credit Loss Provision | $2.82 mln | ||
Q3 Dividend | $0.52 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "hold."
Wall Street's median 12-month price target for Banner Corp is $76.50, about 12.2% above its October 20 closing price of $68.17
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
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Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)