Banner (BANR) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 2.97%
• Average Volume (3M): 194.99K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.90
• Revenue Growth: 6.98%
• EPS Growth: 15.08%
• Country: US
• Employees: 1,910
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.49
• Shares Outstanding: 34,097,855
• 10 Day Avg. Volume: 245,026
• 30 Day Avg. Volume: 194,987
• PEG Ratio: 0.70
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 8.65
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 3.48
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $71.00
• Price Target Upside: 15.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 5.89
• Revenue Forecast (FY): $705.11M

• Rating: 67 Neutral
• Price Target: $64.00 ▲(4.47% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is supported by solid underlying financial performance (profitability and improved leverage) and favorable valuation (low P/E with a meaningful dividend). It is held back primarily by weak technicals (downtrend and negative momentum) and a cautious earnings outlook with loan/deposit growth headwinds and rate-cut sensitivity.

Positive Factors

Funding & Deposit Mix

A high share of core and noninterest-bearing deposits creates a durable, low-cost funding base that reduces reliance on volatile wholesale funding. This supports stable net interest margin, underwriting capacity and resilience through credit cycles, aiding sustainable loan growth and liquidity planning.

Capital Position & Returns

Improving tangible equity and demonstrated buybacks/dividends signal strong capital allocation discipline and excess capital capacity. A healthier capital buffer increases regulatory resilience, supports underwriting during stress, and allows continued shareholder returns without materially weakening the balance sheet.

Revenue & Margin Recovery

A marked revenue rebound and elevated margins reflect stronger net interest income and fee generation, indicating improved core earnings power. If sustained, this enhances internal capital generation and cushions periods of slower loan growth, supporting medium-term profitability and strategic reinvestment.

Negative Factors

NIM Sensitivity to Rates

Material floating-rate exposure and a modeled deposit beta mean net interest margin is structurally sensitive to Fed easing. Significant or rapid cuts would reduce interest spread and earnings unless offset by lower deposit costs or increased loan repricing, creating downside risk to medium-term profitability.

CRE Payoffs Limiting Loan Growth

Ongoing CRE paydowns, including affordable housing and stabilized multifamily moves to secondary markets, structurally reduce loan balances and constrain organic balance-sheet expansion. This suppresses interest income growth and requires stronger origination or acquisitions to meet mid-single-digit growth targets.

Cash Flow Volatility

A sharp FCF decline and historically volatile cash conversion weaken predictability of internal funding for growth and capital returns. For a bank, swings can reflect working capital, securities or loan-sale timing; recurring volatility limits planning flexibility and could press liquidity under adverse conditions.

Banner Business Overview & Revenue Model

Company Description

Banner Corporation operates as the bank holding company for Banner Bank that provide commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; residential mortgage loans; commercial business loans; agricultural loans; and consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts. In addition, it engages in the mortgage banking operations through the origination and sale of one-to four-family and multi-family residential loans, as well as small business administration loans. Further, the company provides electronic and digital banking services. As of December 31, 2021, it operated 150 branch offices and 18 loan production offices located in Washington, Oregon, California, Idaho, and Utah. Banner Corporation was founded in 1890 and is headquartered in Walla Walla, Washington.

How the Company Makes Money

Banner generates revenue through multiple streams, primarily from interest income on loans and mortgages, which constitutes a significant portion of its earnings. The company also earns fees from various banking services, including account maintenance, transaction fees, and financial advisory services. Additionally, investment income from securities and other financial instruments contributes to its revenue. Strategic partnerships with local businesses and financial institutions enhance its market reach and customer base, thereby supporting its overall financial performance.

Banner Financial Statement Overview

Summary

Strong 2025 revenue rebound and solid profitability with improved leverage support fundamentals, but uneven earnings versus prior peaks and sharply lower/volatile 2025 free cash flow temper the score.

Income Statement

Revenue growth accelerated sharply in 2025 (annual revenue growth of ~65%), while profitability remains strong with healthy net margins (~24% in 2025) and solid operating profitability. However, earnings have been somewhat choppy over time (net income down in 2024 vs. 2023, and margins below the 2021–2022 highs), suggesting sensitivity to the rate/credit cycle despite the strong 2025 rebound.

Balance Sheet

Leverage has improved meaningfully, with debt-to-equity declining to ~0.19 in 2025 from ~0.34 in 2024 and ~0.43 in 2023, while equity has grown over the period. Returns on equity have been consistently around ~10% recently (2024–2025) and were higher earlier (notably 2022), indicating good but not peak-level profitability; as a bank, balance-sheet risk is still tied to asset quality and cycle exposure even with the stronger leverage profile.

Cash Flow

Cash generation is positive, and free cash flow has generally tracked net income closely (near 1.0 across most years). The key weakness is volatility: free cash flow fell sharply in 2025 (down ~55% year over year) after a stronger 2024, pointing to less consistent cash conversion and potential working-capital or balance-sheet-driven swings common in financial institutions.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	819.49M	827.33M	741.69M	643.14M	630.77M
Gross Profit	647.71M	595.36M	605.34M	613.38M	640.55M
EBITDA	252.56M	230.19M	248.72M	262.99M	270.51M
Net Income	195.38M	168.90M	183.62M	195.38M	201.05M
Balance Sheet
Total Assets	16.35B	16.20B	15.67B	15.83B	16.80B
Cash, Cash Equivalents and Short-Term Investments	225.67M	525.14M	254.46M	3.03B	5.77B
Total Debt	372.62M	606.48M	713.80M	511.81M	592.63M
Total Liabilities	14.41B	14.43B	14.02B	14.38B	15.11B
Stockholders Equity	1.95B	1.77B	1.65B	1.46B	1.69B
Cash Flow
Free Cash Flow	247.95M	279.44M	242.55M	223.33M	291.08M
Operating Cash Flow	257.46M	293.19M	257.20M	238.05M	301.58M
Investing Cash Flow	-224.74M	-371.17M	191.93M	-1.44B	-1.02B
Financing Cash Flow	-111.94M	325.38M	-437.73M	-684.73M	1.61B

Banner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 61.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANR, the sentiment is Negative. The current price of 61.26 is below the 20-day moving average (MA) of 62.86, below the 50-day MA of 63.13, and below the 200-day MA of 63.03, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 45.34 is Neutral, neither overbought nor oversold. The STOCH value of 38.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BANR.

Banner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRME	76 Outperform	$2.48B	9.57	9.47%	3.72%	-1.76%	32.44%
PFS	72 Outperform	$2.82B	8.86	9.51%	4.69%	38.34%	89.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BANR	67 Neutral	$2.07B	10.97	10.28%	2.97%	6.98%	15.08%
SYBT	66 Neutral	$1.90B	13.61	13.69%	1.88%	11.74%	26.27%
TRMK	66 Neutral	$2.55B	10.48	10.98%	2.38%	17.95%	―
BANC	63 Neutral	$2.80B	13.10	6.50%	2.03%	20.64%	―

Banner Corporate Events

Banner Expands Board With Governance and Risk Experts

On February 25, 2026, Banner Corporation’s Board of Directors appointed seasoned financial services executives Monica B. O’Reilly and Judith A. Steiner to the boards of both Banner Corporation and its wholly owned subsidiary, Banner Bank, with their appointments effective March 1, 2026. The board size was expanded from 12 to 13 members, and both will receive standard non-employee director compensation, including annual cash retainers and restricted stock units, with their committee assignments emphasizing corporate governance, credit and risk oversight.

O’Reilly brings more than three decades of experience advising global financial institutions and Fortune 500 boards on regulatory compliance, enterprise risk, artificial intelligence and cybersecurity, while Steiner contributes over 30 years in financial services with deep expertise in legal, risk and compliance, including prior service as Banner Bank’s chief risk officer. Their addition is expected to significantly strengthen Banner’s board-level capabilities in governance and risk management, supporting the company’s efforts to bolster long-term growth and regulatory resilience for shareholders, clients and other stakeholders.

The most recent analyst rating on (BANR) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on Banner stock, see the BANR Stock Forecast page.

Banner Reports Strong Q4 2025 Results and Dividend

On January 21, 2026, Banner Corporation reported fourth-quarter 2025 net income of $51.2 million, or $1.49 per diluted share, slightly below the prior quarter but above the year-earlier period, driven by higher net interest income of $152.4 million and an improved net interest margin of 4.03% as funding costs declined. For full-year 2025, net income rose to $195.4 million, or $5.64 per diluted share, up from $168.9 million in 2024, reflecting loan growth, stronger asset yields, and disciplined credit provisioning, while maintaining solid asset quality with non-performing assets at 0.31% of total assets and an allowance for credit losses of 1.37% of total loans. The board declared a regular quarterly cash dividend of $0.50 per share payable on February 13, 2026, after increasing the dividend in the fourth quarter of 2025 and repurchasing nearly 250,000 shares, underscoring ongoing capital returns to shareholders alongside growth in book value and tangible book value per share.

The most recent analyst rating on (BANR) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Banner stock, see the BANR Stock Forecast page.