Banner (BANR) AI Stock Analysis

• Market Cap: $2.08B
• Dividend Yield: 2.97%
• Average Volume (3M): 194.99K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.86
• 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: 34,085,930
• 10 Day Avg. Volume: 245,026
• 30 Day Avg. Volume: 194,987
• 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: 1.11
• Enterprise Value/Revenue: 2.82
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 9.11
• 1Y Price Target: $71.00
• Price Target Upside: 16.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $68.00 ▲(11.70% Upside)

The score is driven primarily by solid underlying financial performance and attractive valuation (low P/E with a meaningful dividend). Offsetting factors are weak technical momentum (trading below key moving averages with a negative MACD) and a cautious earnings outlook that highlights NIM sensitivity to rate cuts and near-term loan growth headwinds.

Positive Factors

Strong balance sheet and low leverage

A low debt-to-equity ratio and mid-teens ROE indicate disciplined capital structure and efficient use of equity. This financial conservatism supports resilience through economic cycles, preserves lending capacity, and underpins sustainable capital returns and regulatory flexibility over the medium term.

Stable, core-heavy deposit funding

A high share of core and noninterest-bearing deposits provides low-cost, sticky funding that reduces wholesale funding reliance and volatility. This funding profile supports margin stability, predictable liquidity, and the bank's ability to originate loans and manage balance sheet growth consistently over time.

Robust profitability and margins

Sustained high gross and net margins reflect effective pricing, credit discipline, and cost control. Durable profitability supports internally generated capital, funds dividends and buybacks, and provides a cushion against cyclical pressure, enabling steady shareholder returns and reinvestment.

Negative Factors

Sharp decline in free cash flow growth

A steep drop in free cash flow growth weakens the company’s internal funding for investments, buybacks, and unexpected credit needs. Even with strong operating cash-to-net-income, such a decline signals potential timing or structural pressures on cash conversion that could constrain strategic flexibility.

Net interest margin sensitivity to rate cuts

With ~30% of loans floating and modeled deposit sensitivity, material Fed easing could compress margins structurally. Persistent NIM pressure would reduce core earnings power, constrain loan-funded growth and force tougher trade-offs between margin, volume, and deposit competition over the medium term.

CRE payoffs limiting loan growth

Ongoing CRE paydowns and reduced line utilization create a structural headwind to loan balances and interest income growth. Slower asset growth limits revenue expansion, pressures return-on-assets, and may force management to rely more on fee income or riskier lending to sustain growth rates.

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 profitability and a solid balance sheet (Income Statement 78; Balance Sheet 82) are tempered by mixed cash-flow trends (Cash Flow 65), including a sharp decline in free cash flow growth and recent revenue contraction.

Income Statement

Banner has shown strong profitability with a consistent gross profit margin above 70% and a net profit margin around 23% in the TTM. However, the revenue growth rate has declined by 4.93% in the TTM, indicating potential challenges in revenue generation. Despite this, EBIT and EBITDA margins remain robust, reflecting efficient cost management.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.18 in the TTM, indicating prudent financial leverage. Return on equity is healthy at 10.32%, showcasing effective utilization of shareholder funds. The equity ratio is strong, suggesting a stable financial position.

Cash Flow

Cash flow performance has been mixed, with a significant decline in free cash flow growth by 63.78% in the TTM. However, the operating cash flow to net income ratio is strong at 7.09, indicating good cash generation relative to net income. The free cash flow to net income ratio remains high, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	814.17M	827.33M	741.69M	643.14M	630.77M	636.51M
Gross Profit	636.02M	595.36M	605.34M	613.38M	640.55M	530.79M
EBITDA	251.85M	230.19M	248.72M	262.99M	270.51M	168.31M
Net Income	190.52M	168.90M	183.62M	195.38M	201.05M	115.93M
Balance Sheet
Total Assets	16.56B	16.20B	15.67B	15.83B	16.80B	15.03B
Cash, Cash Equivalents and Short-Term Investments	672.86M	525.14M	254.46M	3.03B	5.77B	3.56B
Total Debt	335.61M	606.48M	713.80M	511.81M	592.63M	609.30M
Total Liabilities	14.65B	14.43B	14.02B	14.38B	15.11B	13.37B
Stockholders Equity	1.91B	1.77B	1.65B	1.46B	1.69B	1.67B
Cash Flow
Free Cash Flow	321.84M	279.44M	242.55M	223.33M	291.08M	112.58M
Operating Cash Flow	331.80M	293.19M	257.20M	238.05M	301.58M	125.39M
Investing Cash Flow	-284.74M	-371.17M	191.93M	-1.44B	-1.02B	-1.45B
Financing Cash Flow	147.02M	325.38M	-437.73M	-684.73M	1.61B	2.26B

Banner Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 60.88 is below the 20-day moving average (MA) of 63.63, below the 50-day MA of 63.96, and below the 200-day MA of 63.21, indicating a bearish trend. The MACD of -0.63 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 17.80 is Positive, 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	79 Outperform	$2.19B	9.76	9.47%	3.72%	-1.76%	32.44%
PFS	76 Outperform	$2.90B	9.96	10.72%	4.69%	38.34%	89.73%
SYBT	74 Outperform	$1.99B	14.24	13.69%	1.88%	11.74%	26.27%
TRMK	73 Outperform	$2.52B	11.38	10.98%	2.38%	17.95%	―
BANR	71 Outperform	$2.08B	10.79	10.28%	2.97%	6.98%	15.08%
BANC	69 Neutral	$3.12B	17.15	6.50%	2.03%	20.64%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Banner Corporate Events

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.