Banner (BANR) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 2.95%
• Average Volume (3M): 162.21K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.93
• Revenue Growth: 8.40%
• EPS Growth: 9.46%
• Country: US
• Employees: 1,910
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.31
• Shares Outstanding: 34,584,503
• 10 Day Avg. Volume: 201,272
• 30 Day Avg. Volume: 162,206
• PEG Ratio: -1.62
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 8.24
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $71.00
• Price Target Upside: 8.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: $74.00 ▲(13.58% Upside)

Banner Corporation's strong financial performance and positive earnings call insights are the most significant factors driving its score. The company's solid profitability, robust balance sheet, and market recognition are key strengths. While technical indicators suggest a neutral trend, the reasonable valuation and attractive dividend yield further support the stock's potential. Concerns about economic headwinds and nonperforming assets are noted but are outweighed by the company's overall positive outlook.

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 a diversified portfolio of financial services. The primary source of income is from interest on loans, which includes personal, commercial, and mortgage loans. Additionally, the bank earns revenue from fees associated with deposit accounts, transaction services, and wealth management. Investment services also contribute to earnings, particularly through asset management fees and commissions. Significant partnerships with local businesses and community organizations help drive customer engagement and attract deposits, further enhancing the bank's financial performance.

Banner Financial Statement Overview

Summary

Banner exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with low leverage, and cash flow generation is robust despite recent declines in free cash flow growth. Continued monitoring of profitability margins and cash flow trends is advisable to ensure sustained financial performance.

Income Statement

Banner has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.51%. The company maintains strong profitability with a gross profit margin of 72.29% and a net profit margin of 21.27% for TTM. EBIT and EBITDA margins are also healthy at 26.35% and 28.09%, respectively. However, there is a slight decline in margins compared to previous years, indicating potential pressure on profitability.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.12, indicating conservative leverage. Return on equity is solid at 10.03%, reflecting efficient use of equity. The equity ratio stands at 11.35%, suggesting a stable financial structure. However, the declining trend in ROE from previous years could be a concern if it continues.

Cash Flow

Operating cash flow is strong with a coverage ratio of 6.60, indicating ample cash generation relative to net income. However, free cash flow growth is negative at -7.76%, which could signal potential challenges in maintaining cash flow levels. The free cash flow to net income ratio remains high at 95.81%, showing effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.37M	827.33M	741.69M	643.14M	630.77M	636.51M
Gross Profit	619.03M	595.36M	605.34M	613.38M	640.55M	530.79M
EBITDA	245.20M	230.19M	248.72M	262.99M	270.51M	168.31M
Net Income	182.18M	168.90M	183.62M	195.38M	201.05M	115.93M
Balance Sheet
Total Assets	16.44B	16.20B	15.67B	15.83B	16.80B	15.03B
Cash, Cash Equivalents and Short-Term Investments	521.73M	525.14M	254.46M	3.03B	5.77B	3.56B
Total Debt	797.17M	606.48M	713.80M	511.81M	592.63M	609.30M
Total Liabilities	14.57B	14.43B	14.02B	14.38B	15.11B	13.37B
Stockholders Equity	1.87B	1.77B	1.65B	1.46B	1.69B	1.67B
Cash Flow
Free Cash Flow	263.60M	279.44M	242.55M	223.33M	291.08M	112.58M
Operating Cash Flow	275.12M	293.19M	257.20M	238.05M	301.58M	125.39M
Investing Cash Flow	-454.44M	-371.17M	191.93M	-1.44B	-1.02B	-1.45B
Financing Cash Flow	415.20M	325.38M	-437.73M	-684.73M	1.61B	2.26B

Banner Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 65.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 65.15 is below the 20-day moving average (MA) of 66.45, below the 50-day MA of 65.18, and above the 200-day MA of 64.57, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 34.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BANR.

Banner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFS	79 Outperform	2.56B	11.02	8.53%	4.90%	66.96%	67.27%
BANR	76 Outperform	$2.25B	12.43	10.24%	2.95%	8.40%	9.46%
TRMK	73 Outperform	2.43B	11.31	10.48%	2.36%	17.17%	―
BANC	71 Outperform	2.63B	25.72	4.31%	2.40%	49.10%	―
FRME	70 Outperform	2.21B	10.12	9.61%	3.72%	-1.18%	23.43%
SYBT	60 Neutral	2.10B	16.30	12.76%	1.76%	13.28%	22.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Banner Corporate Events

Banner Appoints Millicent Tracey to Board of Directors

On September 1, 2025, Banner Corporation appointed Millicent Tracey to its Board of Directors, including its Corporate Governance/Nominating and Risk Committees, as well as to the Board of Directors of Banner Bank, its wholly owned subsidiary. Ms. Tracey, recognized as an independent director under NASDAQ standards, brings over 20 years of experience in banking, payment services, and fintech strategies. Her expertise is expected to contribute significantly to Banner’s strategic growth and success in the financial services industry.

The most recent analyst rating on (BANR) stock is a Buy with a $77.00 price target. To see the full list of analyst forecasts on Banner stock, see the BANR Stock Forecast page.

Banner Awards COO $300,000 Stock Units

In May 2024, Banner Corporation announced the promotion of James M. Costa to Chief Operating Officer of Banner Bank, in addition to his role as Executive Vice President and Chief Risk Officer. By July 2025, the Bank’s Board of Directors granted Mr. Costa a $300,000 restricted stock unit award, effective August 1, 2025, following the achievement of specified criteria. This award is subject to a three-year vesting schedule.

The most recent analyst rating on (BANR) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Banner stock, see the BANR Stock Forecast page.

Banner Corporation Announces Stock Repurchase Plan

On July 24, 2025, Banner Corporation announced that its Board of Directors authorized the repurchase of up to 1,729,199 shares of its common stock, which is approximately 5% of its issued and outstanding shares. This move is seen as a strategy to enhance long-term shareholder value, with the company considering its stock a compelling investment opportunity. The repurchase will be conducted through open market purchases, depending on market conditions and other corporate considerations.

The most recent analyst rating on (BANR) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on Banner stock, see the BANR Stock Forecast page.