Banner Corporation, a prominent player in the state commercial banking sector, has reported its earnings for the third quarter of 2026. The company posted a net income of $47.7 million, or $1.36 per diluted share. This figure indicates a slight decrease from the previous quarter's net income of $48.9 million and a drop from $53.5 million in the same quarter last year. The results reflect the impact of the company's recent acquisition of Pacific Financial Corporation.
On October 21, 2026, Banner Corporation released its earnings report for the quarter ending September 30, 2026. The report revealed that net interest income reached $161.9 million, up from $153.7 million in the preceding quarter and $150 million a year ago. The increase was attributed to a rise in average interest-earning assets following the acquisition of Pacific Financial, along with organic loan growth.
In addition to the earnings announcement, Banner's Board of Directors declared a quarterly cash dividend of $0.52 per share. This dividend is payable on November 13, 2026, to shareholders of record as of November 5, 2026. The declaration of the dividend underscores the company's commitment to returning value to its shareholders.
As part of the earnings report, Banner Corporation also disclosed that its results included $5.2 million in merger-related costs for the third quarter, a significant increase from the $238,000 reported in the previous quarter. The company also set aside $2.8 million for credit losses during this period, compared to $3.8 million in the preceding quarter.
Mark Grescovich, President and CEO of Banner Corporation, commented on the results, stating, "During the third quarter, we completed the merger with Pacific Financial Corporation, the holding company of Bank of the Pacific. This transaction expands our presence in attractive Western Washington and Western Oregon markets while offering Bank of the Pacific customers broader product offerings and technology tools."
Banner Corporation's total assets reached $18.08 billion, with $12.82 billion in net loans and $15.39 billion in deposits as of September 30, 2026. The company operates 153 full-service branches across several key markets in the western United States.
Looking ahead, Banner Corporation will continue to focus on leveraging its recent acquisition to enhance its market position and drive future growth. The company’s next steps include ongoing integration efforts with Pacific Financial and maintaining a strong focus on client relationships and service excellence.
Details were not available in the SEC filing regarding any upcoming filings or votes.