Banner Corp. (BANR)
NASDAQ:BANR
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Banner
(NASDAQ:BANR)
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Rating:67Neutral
Price Target:
$64.00
▲(6.52% Upside)
Action:ReiteratedDate: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.
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.
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Positive Factors
Negative 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.
Read all positive factors
Banner (BANR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend Yield2.97%
Average Volume (3M)194.99K
Price to Earnings (P/E)11.0
Beta (1Y)0.87
Revenue Growth6.98%
EPS Growth15.08%
CountryUS
Employees1,910
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.49
Shares Outstanding34,097,855
10 Day Avg. Volume245,026
30 Day Avg. Volume194,987
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 Cap1.10
Enterprise Value/Revenue2.76
Enterprise Value/Gross Profit3.49
Enterprise Value/Ebitda8.94
Forecast
1Y Price Target
$71.00Price Target Upside18.18% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)5.89
Revenue Forecast (FY)$705.11M
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 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 mainten...
Banner Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong year-over-year financial improvement (higher full-year net income and EPS, core earnings growth, improved capital metrics, dividend and buybacks, and multiple external recognitions) and solid credit reserve coverage. Near-term challenges include limited sequential loan growth driven by prepayments and lower line utilization, modest upticks in delinquencies and adversely classified loans, some one-time expense items and sensitivity of net interest margin to potential Fed rate cuts. Management views the bank as well-capitalized and positioned for mid-single-digit loan growth in 2026 if the economy holds.Positive Updates
Quarterly and Full-Year Profitability
Net income available to common shareholders of $51.2M in Q4 2025 ($1.49 diluted EPS) and full-year net income of $195.4M ($5.64 diluted EPS) versus $168.9M ($4.88 EPS) in 2024, reflecting a meaningful year-over-year improvement in profitability.
Negative Updates
Limited Loan Growth in the Quarter
Despite higher originations, loan balances showed negligible sequential growth in Q4 as originations were offset by affordable housing tax-credit paydowns, certain CRE and shared national credit payoffs, and reduced C&I line utilization.
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Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Profitability
Net income available to common shareholders of $51.2M in Q4 2025 ($1.49 diluted EPS) and full-year net income of $195.4M ($5.64 diluted EPS) versus $168.9M ($4.88 EPS) in 2024, reflecting a meaningful year-over-year improvement in profitability.
Read all positive updates
Company Guidance
Banner's forward guidance was cautious but constructive: management expects mid‑single‑digit loan growth in 2026 (if the economy holds) while modeling a 28% deposit beta, ~3% expense inflation, and a normalized tax rate near 19%. They anchored that outlook to current metrics — Q4 tax‑equivalent NIM 4.03% (December spot deposit cost 1.39%), average new loan yield 6.88% (vs. 7.35% prior), loan‑to‑deposit ratio 86%, core deposits 89% of total, noninterest‑bearing deposits 33%, tangible common equity ratio 9.84%, ~1.2M shares remaining on the buyback authorization after repurchasing ~250k shares, and a $0.50 quarterly dividend — and highlighted credit and liquidity cushions including allowance for credit losses $160.3M (1.37% of loans), delinquent loans 0.54%, NPAs $51.3M (0.31% of assets), core pretax pre‑provision income $255M for FY2025 and core revenue $661M; they noted NIM sensitivity to Fed moves (no cuts → gradual NIM expansion; rapid/multiple cuts → potential compression).Banner Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
56
Neutral
| 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
Neutral
60.08
Price Trends
61.53
Negative
62.31
Negative
62.88
Negative
Market Momentum
-0.50
Negative
49.23
Neutral
75.22
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 60.08 is above the 20-day moving average (MA) of 59.52, below the 50-day MA of 61.53, and below the 200-day MA of 62.88, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 75.22 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.42B | 9.57 | 9.46% | 3.72% | -1.76% | 32.44% | |
72 Outperform | $2.72B | 8.86 | 10.62% | 4.69% | 38.34% | 89.73% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.05B | 10.97 | 10.28% | 2.97% | 6.98% | 15.08% | |
66 Neutral | $1.92B | 13.61 | 13.69% | 1.88% | 11.74% | 26.27% | |
65 Neutral | $2.48B | 10.48 | 10.98% | 2.38% | 17.95% | ― | |
63 Neutral | $2.71B | 9.69 | 6.56% | 2.03% | 20.64% | ― |
* Financial Sector Average
BANR
Banner
60.08
-1.43
-2.33%
FRME
First Merchants
38.15
-0.56
-1.44%
BANC
Banc of California
16.98
3.20
23.20%
PFS
Provident Financial Services
20.80
4.44
27.14%
SYBT
Stock Yards Bancorp
65.18
-2.53
-3.73%
TRMK
Trustmark
42.08
8.41
24.99%
Banner Corporate Events
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...
Stock BuybackDividendsFinancial Disclosures
Banner Reports Strong Q4 2025 Results and Dividend
Positive
Jan 21, 2026
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 millio...
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.