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Banner
(NASDAQ:BANR)
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Rating:66Neutral
Price Target:
$73.00
â–²(3.75% Upside)
Action:Reiterated
Date:10/22/26
BANR’s score is anchored by solid underlying financial quality (profitability and improved leverage) but tempered by weakening recent operating and cash-flow trends (revenue decline, margin compression, and sharply lower free cash flow). Valuation is supportive (low P/E and ~3% yield), while technical indicators are mixed with negative momentum signals. The latest earnings call adds a constructive outlook via potential NIM improvement, cost synergies, and continued loan growth, partially offset by funding-cost pressure and rate uncertainty.
Positive Factors
Core Revenue Growth
Core revenue growth, supported by a strong deposit base, net interest margin and expense control, indicates that Banner is expanding its underlying banking franchise. If sustained, this operating momentum can support recurring earnings, improve efficiency and strengthen competitiveness across its regional markets.
Negative Factors
Revenue and Margin Compression
The recent decline in revenue and operating margin signals weaker underlying momentum despite continued profitability. Persistent compression could reduce earnings resilience, limit internal capital generation and make it harder for Banner to offset higher funding costs or integration expenses through organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Core Revenue Growth
Core revenue growth, supported by a strong deposit base, net interest margin and expense control, indicates that Banner is expanding its underlying banking franchise. If sustained, this operating momentum can support recurring earnings, improve efficiency and strengthen competitiveness across its regional markets.
Read all positive factors
Banner (BANR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.52B
Dividend Yield2.97%
Average Volume (3M)257.79K
Price to Earnings (P/E)11.6
Beta (1Y)0.74
Revenue Growth1.62%
EPS Growth7.14%
CountryUS
Employees1,943
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.09
Shares Outstanding36,639,473
10 Day Avg. Volume251,010
30 Day Avg. Volume257,792
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)1.10
Price to Sales (P/S)2.62
P/FCF Ratio8.65
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue3.51
Enterprise Value/Gross Profit4.52
Enterprise Value/Ebitda16.10
Forecast
1Y Price Target
$75.67Price Target Upside7.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)5.92
Revenue Forecast (FY)$723.17M
Banner Business Overview & Revenue Model
Company Description
Banner Corporation, the parent entity of Banner Bank, delivers a comprehensive suite of commercial banking and financial solutions. It serves a diverse clientele, including private individuals, commercial enterprises, and governmental organization...
How the Company Makes Money
Banner primarily makes money through traditional banking spread and fee-based income. (1) Net interest income: The largest driver is generally the difference between interest earned on interest-earning assets (such as commercial loans, commercial ...
Banner Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Banner reported 6% core revenue growth, higher core earnings, strong organic loan and deposit growth, stable credit metrics, a robust capital and funding position, and meaningful acquisition and efficiency opportunities. These strengths were partly offset by lower reported earnings per share, acquisition-related expenses, higher deposit costs, lower fee income, increased nonperforming assets, intense competition, and uncertainty around rates and future loan demand.Positive Updates
Core Earnings and Revenue Growth
Third-quarter 2026 core pretax, pre-provision earnings were $68.6 million, compared with $67.8 million in the third quarter of 2025. Revenue from core operations was $179 million versus $169 million, an increase of 6%, supported by a strong core deposit base, a very good net interest margin, and core expense control.
Negative Updates
Lower Earnings Per Share Year Over Year
Net profit available to common shareholders was $47.7 million, or $1.36 per diluted share, compared with $1.54 per share in the third quarter of 2025. Third-quarter 2026 performance was impacted by the Pacific Financial acquisition.
Read all updates
Q3-2026 Updates
Positive
Negative
Core Earnings and Revenue Growth
Third-quarter 2026 core pretax, pre-provision earnings were $68.6 million, compared with $67.8 million in the third quarter of 2025. Revenue from core operations was $179 million versus $169 million, an increase of 6%, supported by a strong core deposit base, a very good net interest margin, and core expense control.
Read all positive updates
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%.Banner Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 666.86M | 819.49M | 827.33M | 741.69M | 643.14M | 630.77M |
| Gross Profit | 517.96M | 647.71M | 595.36M | 605.34M | 613.38M | 640.55M |
| EBITDA | 145.26M | 259.36M | 230.19M | 248.72M | 262.99M | 270.51M |
| Net Income | 208.35M | 195.38M | 168.90M | 183.62M | 195.38M | 201.05M |
Balance Sheet | ||||||
| Total Assets | 16.59B | 16.35B | 16.20B | 15.67B | 15.83B | 16.80B |
| Cash, Cash Equivalents and Short-Term Investments | 215.51M | 225.67M | 525.14M | 254.46M | 3.03B | 5.77B |
| Total Debt | 546.26M | 372.62M | 606.48M | 713.80M | 511.81M | 592.63M |
| Total Liabilities | 14.59B | 14.41B | 14.43B | 14.02B | 14.38B | 15.11B |
| Stockholders Equity | 2.00B | 1.95B | 1.77B | 1.65B | 1.46B | 1.69B |
Cash Flow | ||||||
| Free Cash Flow | 285.17M | 247.95M | 279.44M | 242.55M | 223.33M | 291.08M |
| Operating Cash Flow | 294.25M | 257.46M | 293.19M | 257.20M | 238.05M | 301.58M |
| Investing Cash Flow | -236.25M | -224.74M | -371.17M | 191.93M | -1.44B | -1.02B |
| Financing Cash Flow | -105.89M | -111.94M | 325.38M | -437.73M | -684.73M | 1.61B |
Banner Technical Analysis
Neutral
70.36
Price Trends
69.19
Negative
68.89
Negative
65.51
Positive
Market Momentum
0.16
Negative
50.83
Neutral
66.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANR, the sentiment is Neutral. The current price of 70.36 is above the 20-day moving average (MA) of 67.80, above the 50-day MA of 69.19, and above the 200-day MA of 65.51, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 66.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BANR.
Banner Risk Analysis
Banner disclosed 32 risk factors in its most recent earnings report. Banner reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banner Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.41B | 11.84 | 9.65% | 3.56% | 17.25% | 112.71% | |
74 Outperform | $2.39B | 15.24 | 13.56% | 1.68% | 9.62% | 13.15% | |
71 Outperform | $2.23B | 12.44 | 9.35% | 2.15% | 1.68% | -3.12% | |
69 Neutral | $2.23B | 11.03 | 10.53% | 5.26% | 13.24% | 55.58% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $2.52B | 11.62 | 10.07% | 3.00% | 1.62% | 7.14% | |
65 Neutral | $2.17B | 8.86 | 8.50% | 3.68% | 0.49% | 21.69% |
* Financial Sector Average
BANR
Banner
68.68
9.50
16.06%
EFSC
Enterprise Financial Services
62.43
11.23
21.93%
BUSE
First Busey
29.24
7.54
34.73%
NWBI
Northwest Bancshares
15.22
4.17
37.73%
SYBT
Stock Yards Bancorp
76.81
11.58
17.76%
WAFD
Washington Federal
29.32
1.09
3.85%
Banner Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Banner Posts Lower Q3 Earnings Amid Ongoing Expansion
Positive
Oct 21, 2026
Banner Corporation reported third quarter 2026 net income of $47.7 million, or $1.36 per diluted share, down from both the prior quarter and the year-earlier period, even as net interest income rose to $161.9 million on stronger loan growth and hi...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Banner completes Pacific Financial acquisition, expands regional footprint
Positive
Sep 1, 2026
On September 1, 2026, Banner Corporation completed its acquisition of Pacific Financial Corporation and its wholly owned subsidiary, Bank of the Pacific, in an all-stock transaction converting each Pacific Financial share into 0.2633 shares of Ban...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Banner clears regulatory path for Pacific Financial merger
Positive
Aug 17, 2026
Banner Corporation and Pacific Financial Corporation, both regional bank holding companies focused on commercial and retail banking in the U.S. Pacific Northwest, are advancing a previously announced merger plan. Banner brings a larger multi-state...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Banner advances Pacific Financial merger with key approvals
Positive
Aug 13, 2026
Banner Corporation and Pacific Financial Corporation, both regional banking organizations, entered into a merger agreement dated April 30, 2026 under which Pacific Financial will be merged into Banner. The transaction is intended to expand Banner&...
Business Operations and StrategyStock Buyback
Banner Corporation Authorizes Significant Share Repurchase Program
Positive
Aug 3, 2026
On August 3, 2026, Banner Corporation announced that its board authorized a stock repurchase program covering up to 1.7 million shares, representing about 5% of its outstanding common stock. Management described the shares as an attractive value p...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Banner posts solid Q2 results and supports dividend
Positive
Jul 22, 2026
At June 30, 2026, Banner reported second‑quarter net income of $48.9 million, or $1.43 per diluted share, down from the prior quarter but above the year‑earlier period, as higher net interest income and robust loan originations offset ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.