DA Davidson lowered the firm's price target on Banner Corp. to $47 from $50 and keeps a Neutral rating on the shares after its Q1 earnings miss. Additional margin compression and securities losses once again weighed on earnings, though the bank's credit quality statistics offer a clear noticeable strength versus peers, and given the bank's conservative approach across several cycles, the firm anticipates Banner to remain a leader on this front, the analyst tells investors in a research note.

Reports Q1 provision for loan losses $520K vs. $524K last year.

Reports Q1 revenue $144.6M, consensus $135.8M. "Banner's operating performance for the first quarter of 2024 reflects our super community bank business strategy of emphasizing a moderate risk profile and strong relationship banking, positioning the Company to weather current market conditions," said Mark Grescovich, President and CEO. "Our results for the first quarter of 2024 benefited from higher yields on interest-earning assets. However, the continued high interest rate environment, and its effect on funding costs, resulted in moderate compression in our net interest margin during the quarter. We continue to maintain strong credit quality metrics and a solid reserve for potential credit losses. Additionally, we continue to benefit from a strong core deposit base, with core deposits representing 89% of total deposits at quarter end. Banner has upheld its core values for the past 133 years, which are to do the right thing for our clients, communities, colleagues, company and shareholders; and to provide consistent and reliable strength through all economic cycles and change events."