Banner Q2 EPS misses as expenses offset loan growth

Overview

• U.S. regional bank's Q2 revenue rose 6% yr/yr

• Adjusted EPS and net income for Q2 missed analyst expectations

• Company cited robust loan growth but higher non-interest expenses weighed on results

Outlook

• Company expects recent software investments to enhance efficiency and support long-term growth

• Banner anticipates closing its acquisition of Pacific Financial in the third qtr of 2026

• Company says strong core deposit base and capital position provide resilience for future growth

Result Drivers

• LOAN GROWTH - Banner said robust loan growth contributed to higher net interest income and revenue in Q2

• HIGHER NON-INTEREST EXPENSES - Increased non-interest expense, including higher salary and benefits, software investments, and marketing, weighed on results

• LOWER FUNDING COSTS - Lower deposit and borrowing costs supported net interest margin expansion

Company press release: ID:nBw4tBLVYa

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", 4 "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 $74.00, about 4.6% above its July 21 closing price of $70.74

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - United Community Banks Q2 adjusted EPS misses estimates

• July 21 - Western Alliance Bancorp Q2 revenue rises, beating estimates on robust loan growth

• July 21 - KeyCorp quarterly profit rises on interest income strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)