Banner Corp. (BANR)
NASDAQ:BANR
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Banner
(NASDAQ:BANR)
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Rating:78Outperform
Price Target:
$74.00
â–²(14.59% Upside)
Action:Reiterated
Date:05/23/26
BANR scores well primarily on strong financial performance (profitability, conservative leverage, and strong recent cash generation) and attractive valuation (low P/E with a solid dividend). The score is moderated by neutral technicals and earnings-call risks around loan-growth lumpiness, deposit competition/near-term margin seasonality, and the increase in adversely classified loans despite otherwise stable credit metrics.
Positive Factors
Conservative Balance Sheet
Low leverage and rising tangible equity provide durable loss-absorption capacity and optionality. A conservatively levered balance sheet reduces funding vulnerability in stress, supports continued capital returns and M&A, and underpins steady regulatory ratios that matter over multiple quarters.
Negative Factors
Lumpy Loan Growth
Volatile, payoff-driven loan balances create an uncertain net interest income baseline and make organic revenue growth uneven. Reliance on originations to replace lumpier CRE/land payoffs risks variability in margins and core earnings over several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and rising tangible equity provide durable loss-absorption capacity and optionality. A conservatively levered balance sheet reduces funding vulnerability in stress, supports continued capital returns and M&A, and underpins steady regulatory ratios that matter over multiple quarters.
Read all positive factors
Banner (BANR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.20B
Dividend Yield2.97%
Average Volume (3M)241.13K
Price to Earnings (P/E)10.8
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. Volume199,934
30 Day Avg. Volume241,130
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 Cap1.02
Enterprise Value/Revenue2.72
Enterprise Value/Gross Profit3.39
Enterprise Value/Ebitda8.54
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, 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 (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 | 263.42M | 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
Neutral
64.58
Price Trends
64.78
Positive
62.82
Positive
62.75
Positive
Market Momentum
0.36
Positive
49.06
Neutral
35.62
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 64.58 is below the 20-day moving average (MA) of 65.11, below the 50-day MA of 64.78, and above the 200-day MA of 62.75, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 35.62 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.20B | 10.77 | 10.66% | 2.97% | 3.87% | 16.71% | |
75 Outperform | $2.16B | 14.99 | 13.58% | 1.88% | 9.58% | 17.44% | |
72 Outperform | $2.62B | 11.60 | 10.75% | 2.38% | 19.81% | 3091.83% | |
71 Outperform | $3.10B | 12.63 | 7.07% | 2.03% | 0.22% | 104.08% | |
71 Outperform | $2.96B | 9.67 | 10.98% | 4.69% | 8.48% | 111.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $2.57B | 12.50 | 8.03% | 3.72% | 0.97% | -4.32% |
* Financial Sector Average
BANR
Banner
64.83
4.93
8.23%
FRME
First Merchants
40.72
6.09
17.59%
BANC
Banc of California
20.09
6.62
49.16%
PFS
Provident Financial Services
22.72
7.27
47.07%
SYBT
Stock Yards Bancorp
73.18
0.37
0.51%
TRMK
Trustmark
44.67
11.38
34.18%
Banner Corporate Events
Executive/Board ChangesShareholder Meetings
Banner Shareholders Back Directors, Pay and Auditor at AGM
Positive
May 22, 2026
Banner Corporation held its Annual Meeting of Shareholders on May 20, 2026, with 26,898,124 of 33,872,305 eligible common shares represented in person or by proxy, constituting a quorum. Shareholders elected 12 directors, including Ellen R.M. Boye...
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.