Banner (BANR) AI Stock Analysis

Company Guidance

Management expects some expansion in loan yields in the fourth quarter, with about 25% of the loan portfolio repriced up, the Pacific Financial deal adding a couple basis points to loan yield, and portfolio yield increasing in that 6 to 7 basis point range; despite some increase in the cost of deposits, it expects some expansion in NIM in the fourth quarter. For 2027, NIM could show some expansion with 1 to 2 increases in 2027, moderate expansion if the Fed is on pause, or be either flat to a moderate compression if the FED decides to decrease some interest rates in 2027. Banner is still anticipating a mid-single-digit loan growth as we close out 2026 and expects the same loan growth rate into 2027; organic deposits could see a $100 million reduction in early fourth quarter before typically seeing some increase in deposits in the fourth quarter. Fourth-quarter fees are expected to include an additional $800 thousand from 2 more months of Bank of the Pacific activity and normalization of maybe a $500 thousand or something in that range, while total cost synergies are expected to reach 40%, with another 20% realized starting 01/01/2027 and the last 10% by mid next year, call it July 1. Fixed asset repricing is expected to be a couple basis points a quarter, and the upper end of the TCE target range is 9.5%.