Yahoo Finanza Banner Corp (BANR) (Q1 2024) Earnings Call Transcript Highlights: Robust Growth and Strategic ...
Net Profit: $37.6 million for Q1 2024.
Earnings Per Share (EPS): $1.9 per diluted share for Q1 2024.
Revenue: $150 million from core operations for Q1 2024.
Core Earnings: $53 million for Q1 2024.
Net Interest Margin: 3.74% on a tax equivalent basis.
Loan Growth: Loans increased 7% year-over-year.
Dividend: Core dividend of $0.48 per common share announced.
Core Deposits: Represent 89% of total deposits.
Delinquent Loans: Ended the quarter at 0.36%.
Nonperforming Assets: Represent a modest 0.19% of total assets.
Provision for Credit Losses: Net provision was $520,000 for the quarter.
Release Date: April 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss the expected trends in loan yields throughout the year, especially considering potential Federal Reserve actions? A: Rob Butterfield, EVP and CFO of Banner Corp, mentioned that a 10 basis points increase per quarter in loan yields could be expected as long as the Fed maintains current rates. However, if the Fed begins to cut rates in the second half of the year, the increase in adjustable rate loans might offset those cuts, potentially flattening the loan yield curve.
Q: What are the expectations for loan growth going forward, particularly considering some large payoffs this quarter? A: Jill Rice, EVP and Chief Credit Officer, anticipates a low single-digit growth rate for the remainder of 2024, following a quarter where significant loan payoffs impacted overall loan growth figures.
Q: How is the deposit mix changing, particularly with regards to savings accounts, and what impact do you foresee from potential Fed rate cuts? A: Rob Butterfield explained that the high-yield savings accounts are attracting funds from non-interest-bearing accounts, with the top tier currently at 4%. He anticipates that once the Fed starts cutting rates, there might be a stabilization in deposit flows and costs.
Q: Could you provide insights into the current strategies for managing the securities portfolio, especially in light of uncertain interest rate movements? A: Rob Butterfield discussed considering further securities sales similar to those in Q1, depending on loan growth, deposit flows, and market conditions. The decision will also consider the maturity of brokered CDs and normal security cash flows.
Q: What are the plans for technological investments and hiring to support growth and efficiency at Banner Corp? A: Rob Butterfield highlighted ongoing investments in technology, particularly in loan origination and deposit gathering systems to streamline processes. Additionally, the bank continues to hire relationship managers in key markets to enhance commercial lending capabilities.
Q: What is the approach to managing the construction loan portfolio, especially with regards to multifamily construction? A: Jill Rice affirmed the bank's comfort with the construction loan portfolio, noting ongoing growth in multifamily construction driven by affordable housing projects. She confirmed that the portfolio is not at internal concentration limits, allowing for further growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
