Banner Corporation Reports Net Income of $47.7 Million, or $1.36 Per Diluted Share, for Third Quarter 2026; Declares Quarterly Cash Dividend of $0.52 Per Share; Results Strengthened by Completion of Pacific Financial Corporation Acquisition
Key Highlights
- ➤Q3 net income $47.7 million, or $1.36 per diluted share
- ➤Net interest income $161.9 million, up from $153.7 million sequentially
- ➤Pacific Financial acquisition completed for $186.8 million in all-stock consideration
- ➤Acquisition added $1.29 billion of assets and $1.14 billion of deposits
- ➤Quarterly cash dividend declared at $0.52 per share, payable November 13
Expert Statements
Mark Grescovich, President and CEO of Banner Corporation
“During the third quarter, we completed the merger with Pacific Financial Corporation, the holding company of Bank of the Pacific.”
Mark Grescovich, President and CEO of Banner Corporation
“Bank of the Pacific was a highly respected, financially strong community bank with exceptional core deposits.”
Mark Grescovich, President and CEO of Banner Corporation
“This transaction expands our presence and density in attractive Western Washington and Western Oregon markets while offering Bank of the Pacific customers broader product offerings and technology tools, increased commercial lending limits and an expanded branch delivery system.”
Mark Grescovich, President and CEO of Banner Corporation
“Banner’s results for the third quarter reflect the continued strength of our super community bank model, which prioritizes deepening client relationships, maintaining a strong funding base, and delivering exceptional service while upholding a moderate risk profile.”
Mark Grescovich, President and CEO of Banner Corporation
“Our earnings for the third quarter of 2026 benefited from loan growth and the completion of the merger with Pacific Financial.”
Mark Grescovich, President and CEO of Banner Corporation
“These benefits were partially offset by higher non-interest expense, which primarily reflects merger related expenses.”
Mark Grescovich, President and CEO of Banner Corporation
“Banner continues to build on a foundation of solid credit quality, backed by a well-funded credit loss reserve and a robust capital position that offers both resilience and flexibility for future growth.”
Mark Grescovich, President and CEO of Banner Corporation
“At the same time, the strategic investments we have made across the organization are delivering tangible results, further positioning Banner for long-term success.”
Mark Grescovich, President and CEO of Banner Corporation
“We also continue to capitalize on a strong core deposit base, with core deposits representing 90% of total deposits at quarter-end.”
Mark Grescovich, President and CEO of Banner Corporation
“For more than 136 years, Banner has upheld its core values by consistently doing the right thing for our clients, communities, colleagues, company and shareholders.”
Mark Grescovich, President and CEO of Banner Corporation
“Our long-standing commitment has enabled us to earn trust, navigate change with confidence and continue building a strong foundation for the future.”
Banner Corporation Reports Net Income of $47.7 Million, or $1.36 Per Diluted Share, for Third Quarter 2026; Declares Quarterly Cash Dividend of $0.52 Per Share; Results Strengthened by Completion of Pacific Financial Corporation Acquisition
Banner Corporation (NASDAQ:BANR) (“Banner”), the parent company of Banner Bank, today reported net income of $47.7 million, or $1.36 per diluted share, for the third quarter of 2026, compared to $48.9 million, or $1.43 per diluted share, for the preceding quarter, and $53.5 million, or $1.54 per diluted share, for the third quarter of 2025. Net interest income was $161.9 million for the third quarter of 2026, compared to $153.7 million in the preceding quarter and $150.0 million for the third quarter a year ago. The increase in net interest income compared to both the prior quarter and the third quarter a year ago was primarily driven by an increase in average interest-earning assets resulting from the acquisition of Pacific Financial Corporation (“Pacific Financial”) on September 1, 2026 and organic loan growth, as well as expansion in Banner’s net interest margin reflecting higher yields on interest-earning assets. Funding costs increased compared to the prior quarter, partially offsetting the increase in interest income, but decreased compared to the third quarter a year ago. Third quarter 2026 results included $5.2 million of merger-and acquisition-related costs, compared to $238,000 in the preceding quarter and none in the third quarter of 2025. Third quarter 2026 results also included a $2.8 million provision for credit losses, compared to $3.8 million in the preceding quarter and $2.7 million in the third quarter of 2025.
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