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Banner
(NASDAQ:BANR)
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Rating:71Outperform
Price Target:
$79.00
â–²(12.28% Upside)
Action:Reiterated
Date:09/06/26
BANR’s score is driven primarily by solid underlying financial strength (profitability and improving leverage) but moderated by recent revenue/margin and cash-flow softness. Valuation is supportive with a reasonable P/E and dividend yield, while the earnings call and corporate actions (acquisition completion and buyback authorization) add a positive strategic and capital-return backdrop; technicals are neutral-to-mildly constructive.
Positive Factors
Expanded regional footprint and deposits
The completed acquisition expands Banner’s branch network, deposit base, and presence in Western Washington and Oregon. Integration under the Banner brand should broaden customer access to products and lending capacity, creating a larger platform for recurring commercial and consumer banking growth.
Negative Factors
Revenue and operating-margin compression
The sharp decline in trailing revenue and operating margin indicates weaker recent operating momentum despite healthy net profitability. Persistent compression would reduce earnings flexibility, limit internal capital generation, and make it harder for loan growth or the acquisition to translate into stronger returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Expanded regional footprint and deposits
The completed acquisition expands Banner’s branch network, deposit base, and presence in Western Washington and Oregon. Integration under the Banner brand should broaden customer access to products and lending capacity, creating a larger platform for recurring commercial and consumer banking growth.
Read all positive factors
Banner (BANR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend Yield2.87%
Average Volume (3M)309.23K
Price to Earnings (P/E)11.7
Beta (1Y)0.80
Revenue Growth2.89%
EPS Growth15.51%
CountryUS
Employees1,943
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.09
Shares Outstanding36,639,473
10 Day Avg. Volume250,525
30 Day Avg. Volume309,233
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$77.00Price Target Upside9.44% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)5.95
Revenue Forecast (FY)$723.69M
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 net interest income and noninterest income generated by its banking operations. Net interest income is earned from the spread between interest and fees collected on loans and other interest-earning assets (such...
Banner Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operating strengths — solid core revenue growth (~6%), strong loan originations and funded loan growth (~$287M, near 10% annualized), stable reserve coverage, healthy capital ratios and industry recognition — and confirmed planned strategic actions (Q3 Bank of the Pacific close, maintained core dividend). Offsetting items include sequential EPS pressure, a rise in nonperforming assets from a single condo project, temporary reliance on FHLB borrowings, higher noninterest expense driven partly by one-time technology write-offs and marketing, and some margin/headline pressure in new loan yields. Overall the positives around core earnings, loan growth, capital, and controlled credit metrics materially outweigh the manageable headwinds and one-time items.Positive Updates
Profitability and Earnings Power
Net profit available to common shareholders of $48.9M, or $1.43 per diluted share (up from $1.31 in Q2 2025, ~+9.2% YoY). Core pretax, pre-provision earnings of $64.4M, up from $62.5M (+3% YoY). Return on average tangible common equity of 12.27% and return on average assets of 1.20%.
Negative Updates
Sequential Earnings Pressure
Earnings per diluted share decreased sequentially to $1.43 from $1.60 in the prior quarter (driven by higher provision for credit losses, lower noninterest income, and higher noninterest expense).
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability and Earnings Power
Net profit available to common shareholders of $48.9M, or $1.43 per diluted share (up from $1.31 in Q2 2025, ~+9.2% YoY). Core pretax, pre-provision earnings of $64.4M, up from $62.5M (+3% YoY). Return on average tangible common equity of 12.27% and return on average assets of 1.20%.
Read all positive updates
Company Guidance
Management's forward guidance emphasized continued mid-single‑digit full‑year loan growth (after Q2 loan outstandings rose $287M, ~10% annualized, with originations +45% QoQ — commercial +85%, construction +73%, consumer +55%), modest further loan‑yield improvement of roughly 1–2 bps QoQ through year‑end (new loan production averaged 6.53% this quarter vs. 6.69% prior), and a modest NIM tailwind in Q3 (a few bps of expansion as FHLB advances roll off and deposit funding rebuilds seasonally); deposit costs are expected to remain roughly flat (≈1.33% during Q2) with the CD book largely repriced, and wholesale funding is anticipated to decline in Q3 as core deposits (89% of total) recover. They also reiterated capital and liquidity strength (loan‑to‑deposit 87%, TE NIM 4.13%, ROA 1.20%, ROTCE 12.27%, tangible common equity / assets 10.02%), affirmed a $0.52 core dividend, put buybacks on hold until the Bank of the Pacific deal closes (expected in Q3), and noted credit metrics and allowance coverage remain healthy (allowance 1.35% of loans, provision $3.8M this quarter, NPAs 0.36% of assets, nonperforming loans $54.8M).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 | 135.26M | 252.56M | 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
Positive
70.36
Price Trends
69.86
Positive
67.22
Positive
64.41
Positive
Market Momentum
0.05
Positive
53.24
Neutral
67.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANR, the sentiment is Positive. The current price of 70.36 is below the 20-day moving average (MA) of 71.44, above the 50-day MA of 69.86, and above the 200-day MA of 64.41, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 67.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.34B | 12.75 | 9.42% | 2.01% | 7.98% | -4.69% | |
74 Outperform | $2.53B | 11.03 | 9.51% | 3.36% | 35.64% | 113.53% | |
74 Outperform | $2.47B | 15.77 | 13.56% | 1.61% | 9.30% | 15.23% | |
71 Outperform | $2.61B | 11.68 | 10.65% | 2.87% | 2.89% | 15.51% | |
70 Outperform | $2.29B | 14.84 | 8.07% | 5.12% | 14.54% | -6.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $2.69B | 11.10 | 8.50% | 2.98% | -4.62% | 21.13% |
* Financial Sector Average
BANR
Banner
69.92
5.18
8.01%
EFSC
Enterprise Financial Services
64.00
4.49
7.54%
BUSE
First Busey
30.42
6.68
28.15%
NWBI
Northwest Bancshares
15.50
3.73
31.71%
SYBT
Stock Yards Bancorp
78.59
2.42
3.17%
WAFD
Washington Federal
34.28
3.78
12.39%
Banner Corporate Events
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.