Banner Corp. (BANR)
NASDAQ:BANR
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Banner
(NASDAQ:BANR)
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Rating:81Outperform
Price Target:
$76.00
â–²(17.68% Upside)
Action:Reiterated
Date:05/09/26
BANR scores well primarily on strong financial performance (healthy profitability, low leverage, and solid TTM cash generation) and attractive valuation (low P/E with a ~3% dividend). Technicals are supportive with price above key moving averages and positive momentum. The earnings call and recent corporate actions add confidence via stable-to-improving margin guidance and an accretive merger, tempered by lumpy loan growth and higher adversely classified loans that require monitoring.
Positive Factors
Low leverage and improving capital
Banner's very low trailing leverage (debt-to-equity ~0.12) and rising tangible common equity provide durable financial flexibility. That capital buffer supports dividends, buybacks, M&A and loss absorption through cycles, reducing solvency risk and enabling strategic optionality over the next several quarters.
Negative Factors
Lumpy and modest loan growth
Near-term loan balances were constrained by large payoffs despite strong originations, producing only mid-single-digit annual guidance. Lumpy growth limits reliable interest income expansion and forces management to rely on repricing, fee income or M&A to drive durable revenue increases over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage and improving capital
Banner's very low trailing leverage (debt-to-equity ~0.12) and rising tangible common equity provide durable financial flexibility. That capital buffer supports dividends, buybacks, M&A and loss absorption through cycles, reducing solvency risk and enabling strategic optionality over the next several quarters.
Read all positive factors
Banner (BANR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.13B
Dividend Yield2.97%
Average Volume (3M)256.34K
Price to Earnings (P/E)9.4
Beta (1Y)0.86
Revenue Growth3.87%
EPS Growth16.71%
CountryUS
Employees1,910
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)5.97
Shares Outstanding33,967,940
10 Day Avg. Volume272,758
30 Day Avg. Volume256,339
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 Cap1.05
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit3.35
Enterprise Value/Ebitda8.57
Forecast
1Y Price Target
$71.33Price Target Upside10.46% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)6.25
Revenue Forecast (FY)$718.67M
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 ins...
How the Company Makes Money
Banner primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets (especially loans and, to a lesser extent, securities/othe...
Banner Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call presents a generally positive financial and operational picture: strong profitability (EPS up 23% YoY), core earnings and revenue growth, robust deposit franchise, improved capital metrics, active capital returns (dividend increase and buybacks), and stable credit metrics. Headwinds include lumpiness from CRE and land payoffs that constrained loan growth (loans down QoQ, modest +2.4% YoY), a $42M rise in adversely classified loans concentrated in a few relationships, and near-term margin seasonality and deposit competitive pressures. Management expects loan growth to resume at mid-single-digit levels, anticipates NIM stability in Q2 with potential H2 expansion, and is actively managing capital and talent. Overall, the highlights materially outweigh the lowlights.Positive Updates
Strong Earnings and EPS Growth
Net profit available to common shareholders of $54.7M; diluted EPS $1.60 for Q1 2026 versus $1.30 in Q1 2025 (+23%) and $1.49 in Q4 2025 (+7.4%).
Negative Updates
Modest Loan Growth and Quarter-End Loan Decline
Total portfolio loans decreased $14M vs Dec 31, 2025; year-over-year loan growth modest at 2.4%. Strong originations were largely offset by payoffs, limiting near-term loan growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings and EPS Growth
Net profit available to common shareholders of $54.7M; diluted EPS $1.60 for Q1 2026 versus $1.30 in Q1 2025 (+23%) and $1.49 in Q4 2025 (+7.4%).
Read all positive updates
Company Guidance
Management guided to a relatively steady margin in Q2 with net interest margin expected to be roughly flat before modest expansion in Q3 and into the back half of the year if the Fed remains on pause; Q1 tax‑equivalent NIM was 4.11% (4.03% prior) and average new loan production yield was 6.69% (6.88% prior) with loan repricing roughly +3 bps/quarter. They reiterated a mid‑single‑digit loan growth target for 2026, highlighted ample liquidity and capacity with a loan‑to‑deposit ratio of 85%, core deposits up $165M (5.5% annualized) representing 89% of deposits and 33% noninterest‑bearing, and noted ~40% of CDs roll in Q2 (new CD yields ≈3.0% vs roll‑offs ≈3.30%). Capital priorities remain balanced: tangible common equity rose to 9.97% (from 9.84%), Banner repurchased 250,000 shares, raised the quarterly dividend 4% to $0.52 (targeting a 35–40% core payout), and emphasized strong credit metrics with an ACL of $160.4M (1.37% of loans), delinquencies 0.56% of loans, adversely classified loans 2% of loans, and NPAs of $51.7M (0.32% of assets).Banner Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 825.80M | 819.49M | 827.33M | 741.69M | 643.14M | 630.77M |
| Gross Profit | 663.09M | 647.71M | 595.36M | 605.34M | 613.38M | 640.55M |
| EBITDA | 259.52M | 252.56M | 230.19M | 248.72M | 262.99M | 270.51M |
| Net Income | 204.96M | 195.38M | 168.90M | 183.62M | 195.38M | 201.05M |
Balance Sheet | ||||||
| Total Assets | 16.34B | 16.35B | 16.20B | 15.67B | 15.83B | 16.80B |
| Cash, Cash Equivalents and Short-Term Investments | 180.16M | 225.67M | 525.14M | 254.46M | 3.03B | 5.77B |
| Total Debt | 228.99M | 372.62M | 606.48M | 713.80M | 511.81M | 592.63M |
| Total Liabilities | 14.38B | 14.41B | 14.43B | 14.02B | 14.38B | 15.11B |
| Stockholders Equity | 1.97B | 1.95B | 1.77B | 1.65B | 1.46B | 1.69B |
Cash Flow | ||||||
| Free Cash Flow | 301.79M | 247.95M | 279.44M | 242.55M | 223.33M | 291.08M |
| Operating Cash Flow | 310.06M | 257.46M | 293.19M | 257.20M | 238.05M | 301.58M |
| Investing Cash Flow | -177.27M | -224.74M | -371.17M | 191.93M | -1.44B | -1.02B |
| Financing Cash Flow | -135.50M | -111.94M | 325.38M | -437.73M | -684.73M | 1.61B |
Banner Technical Analysis
Positive
64.58
Price Trends
61.63
Positive
62.69
Positive
62.98
Positive
Market Momentum
0.95
Negative
66.75
Neutral
65.57
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 64.58 is above the 20-day moving average (MA) of 61.87, above the 50-day MA of 61.63, and above the 200-day MA of 62.98, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.13B | 9.44 | 10.66% | 2.97% | 3.87% | 16.71% | |
75 Outperform | $2.04B | 13.31 | 13.58% | 1.88% | 9.58% | 17.44% | |
72 Outperform | $2.53B | 11.05 | 10.75% | 2.38% | 19.81% | 3091.83% | |
71 Outperform | $2.82B | 9.50 | 7.07% | 2.03% | 0.22% | 104.08% | |
71 Outperform | $2.80B | 8.69 | 10.98% | 4.69% | 8.48% | 111.63% | |
69 Neutral | $2.46B | 20.98 | 8.03% | 3.72% | 0.97% | -4.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
BANR
Banner
64.05
1.33
2.12%
FRME
First Merchants
39.58
1.66
4.38%
BANC
Banc of California
18.64
4.61
32.90%
PFS
Provident Financial Services
21.73
5.18
31.26%
SYBT
Stock Yards Bancorp
70.60
-4.53
-6.03%
TRMK
Trustmark
43.91
8.82
25.12%
Banner Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Banner Announces All-Stock Merger With Pacific Financial
Positive
May 1, 2026
On April 30, 2026, Banner Corporation and Pacific Financial Corporation agreed to an all-stock merger in which Pacific Financial will be absorbed into Banner, valuing the deal at about $177 million based on Banner’s April 29 share price. The...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Banner Posts Strong Q1 2026 Results, Hikes Dividend
Positive
Apr 22, 2026
On April 22, 2026, Banner Corporation reported first-quarter 2026 net income of $54.7 million, or $1.60 per diluted share, up from both the prior quarter and the same period in 2025. The quarter featured an 8-basis-point expansion in tax-equivalen...
Business Operations and StrategyExecutive/Board Changes
Banner Expands Board With Governance and Risk Experts
Positive
Mar 2, 2026
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 Ba...
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.