The core earnings power (adjusted EPS $1.51) was roughly flat YoY, but the GAAP miss vs consensus was sharp. Watch for integration progress on Pacific Financial and whether the adjusted efficiency ratio (59.53%) can sustain below 60% as merger costs roll off.
Price Chart
Executive Summary
Banner Corp reported Q3 2026 GAAP diluted EPS of $1.36, a 13.9% miss vs the $1.58 consensus, and revenue of $177.3M vs $195.4M consensus. The miss was driven by $5.2M in merger-related costs from the Pacific Financial acquisition and a $2.1M loss on securities sales. Net interest income grew to $161.9M on asset growth from the acquisition, but GAAP EPS declined YoY from $1.54. The company maintained its $0.52 quarterly dividend and repurchased 200,000 shares.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $1.36 missed consensus of $1.58 by 13.9%
- Revenue of $177.3M vs $195.4M consensus (9.3% miss)
- Net income of $47.7M vs $53.5M in Q3 2025 (-10.8% YoY)
- Net interest income rose to $161.9M from $150.0M YoY (+7.9%)
- Net interest margin (tax-equivalent) expanded to 4.14% from 3.98% YoY
- Completed acquisition of Pacific Financial Corp on Sept 1, 2026 for $186.8M in stock
- Merger-related costs of $5.2M and $2.1M loss on securities sales weighed on results
- Adjusted diluted EPS (non-GAAP) was $1.51 vs $1.52 in Q3 2025
- Quarterly dividend maintained at $0.52 per share
- Repurchased 200,000 shares at avg $71.03 during Q3
- Total assets grew 9% to $18.08B; net loans up 11% YoY to $12.82B
- Non-performing assets at 0.35% of total assets, up from 0.27% YoY
- Allowance for credit losses at 1.32% of total loans, down from 1.36% YoY
Financial Impact
GAAP EPS miss of 13.9% vs consensus; revenue miss of 9.3% vs consensus; net income down 10.8% YoY
Risk Factors
- Integration risk from Pacific Financial acquisition — $61.2M in goodwill recorded
- Rising non-performing assets (0.35% vs 0.27% YoY) and substandard loans ($209.7M)
- Tangible book value per share declined 4% QoQ to $45.84 due to AOCI losses
- GAAP efficiency ratio deteriorated to 65.25% from 59.76% YoY
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000946673-26-000196 |
| Document: a2026-q3presentation.htm | 0000946673-26-000196 |
| Document: banr-20261021.htm | 0000946673-26-000196 |
| Document: 0000946673-26-000196-index-headers.html | 0000946673-26-000196 |
| Document: 0000946673-26-000196-index.html | 0000946673-26-000196 |
| Document: 0000946673-26-000196.txt | 0000946673-26-000196 |
| 8-K Data (Synthetic) | 0000946673-26-000196 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $70.10 $70.28 | ▼ −0.26% | ▼ −0.78% | $69.32 (+1.11%) |
Sep 1, 2026 8w ago | 8-K | $68.58 $70.04 | ▲ +2.13% | ▲ +1.69% | $69.32 (+1.08%) |
Jul 20, 2026 14w ago | 425 | $70.74 $69.62 | ▼ −1.58% | ▼ −1.47% | $69.32 (−2.01%) |
Jun 17, 2026 18w ago | EFFECT | $64.76 $64.83 | ▲ +0.11% | ▼ −0.67% | $69.32 (+7.04%) |
Jun 15, 2026 19w ago | S-4/A | $66.12 $64.76 | ▼ −2.06% | ▼ −0.81% | $69.32 (+4.84%) |
Jun 3, 2026 20w ago | S-4 | $64.61 $64.86 | ▲ +0.39% | ▲ +2.99% | $69.32 (+7.29%) |
Apr 22, 2026 26w ago | 8-K | $67.22 $66.30 | ▼ −1.36% | ▼ −2.15% | $69.32 (+3.13%) |
US Market Status
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