Banner (BANR) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 3%
• Average Volume (3M): 184.63K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.91
• Revenue Growth: 10.08%
• EPS Growth: 6.18%
• Country: US
• Employees: 1,910
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 1.30
• Shares Outstanding: 34,580,030
• 10 Day Avg. Volume: 250,188
• 30 Day Avg. Volume: 184,631
• PEG Ratio: 2.69
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.48
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 3.59
• Enterprise Value/Ebitda: 2.37
• 1Y Price Target: $69.67
• Price Target Upside: 8.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $69.00 ▲(7.78%Upside)

Banner's strong financial performance and reasonable valuation are key strengths, supported by solid profitability and dividend yield. Technical analysis suggests a neutral outlook, while the earnings call reflected both achievements and challenges. The overall score reflects these balanced prospects.

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 Corporation generates revenue primarily through interest income from its loan portfolio, which includes consumer, commercial, and real estate loans. The company earns interest by lending funds to customers and charging interest rates higher than what it pays on deposits and other borrowings. In addition to interest income, Banner Corporation earns fees from various banking services, such as account maintenance, transaction services, and loan origination. Wealth management and investment services also contribute to the company's revenue, providing advisory fees and commissions. Banner Corporation's earnings are further supported by its efforts to maintain strong relationships with local communities and businesses, which help drive customer loyalty and cross-selling opportunities within its service areas.

Banner Financial Statement Overview

Summary

Banner exhibits strong revenue growth and operational efficiency, though profitability concerns are evident with declining net profit margins. The balance sheet is robust with low leverage, yet the declining ROE suggests potential inefficiencies. Cash flow analysis is limited due to missing data, highlighting a need for careful monitoring of cash generation capabilities.

Income Statement

Banner shows a solid revenue growth of 23.46% from 2023 to 2024, with a strong gross profit margin consistently at 100% due to the nature of the banking industry. The EBIT margin improved significantly to 99.33% in 2024, indicating operational efficiency. However, the net profit margin decreased from 29.60% in 2023 to 22.05% in 2024, showing declining profitability.

Balance Sheet

Banner has a low debt-to-equity ratio of 0.083, reflecting strong leverage management. The equity ratio is healthy at 10.95%, indicating a sound capital structure. However, the return on equity decreased from 11.11% in 2023 to 9.52% in 2024, which may point to inefficiencies in generating profits from equity.

Cash Flow

Banner's free cash flow growth is unavailable for 2024 due to missing data. In 2023, the operating cash flow to net income ratio was positive at 1.40, indicating effective cash generation relative to earnings. However, the absence of free cash flow data for 2024 raises concerns about cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	843.64M	827.33M	741.69M	643.14M	630.77M	636.51M
Gross Profit	608.00M	595.36M	605.34M	613.38M	640.55M	530.79M
EBITDA	239.06M	230.19M	248.72M	262.99M	270.51M	168.31M
Net Income	176.47M	168.90M	183.62M	195.38M	201.05M	115.93M
Balance Sheet
Total Assets	16.17B	16.20B	15.67B	15.83B	16.80B	15.03B
Cash, Cash Equivalents and Short-Term Investments	473.03M	525.14M	254.46M	3.03B	5.77B	3.56B
Total Debt	487.15M	606.48M	713.80M	511.81M	592.63M	609.30M
Total Liabilities	14.34B	14.43B	14.02B	14.38B	15.11B	13.37B
Stockholders Equity	1.83B	1.77B	1.65B	1.46B	1.69B	1.67B
Cash Flow
Free Cash Flow	285.78M	279.44M	242.55M	223.33M	291.08M	112.58M
Operating Cash Flow	298.96M	293.19M	257.20M	238.05M	301.58M	125.39M
Investing Cash Flow	-495.17M	-371.17M	191.93M	-1.44B	-1.02B	-1.45B
Financing Cash Flow	428.88M	325.38M	-437.73M	-684.73M	1.61B	2.26B

Banner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 64.02 is above the 20-day moving average (MA) of 62.32, above the 50-day MA of 62.36, and below the 200-day MA of 64.62, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BANR.

Banner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBCF	81 Outperform	$2.36B	18.51	5.82%	2.62%	4.52%	7.58%
RNST	78 Outperform	$3.43B	11.24	7.83%	2.44%	13.47%	31.39%
BANR	74 Outperform	$2.21B	12.58	10.09%	3.00%	10.08%	6.18%
FBK	74 Outperform	$2.08B	16.71	8.27%	1.67%	2.70%	14.32%
PFS	73 Outperform	$2.31B	15.97	6.77%	5.42%	80.24%	-30.60%
WAFD	71 Outperform	$2.35B	11.11	7.70%	3.68%	24.53%	0.16%
Sector *	67 Neutral	$16.67B	11.44	9.71%	3.91%	11.61%	-9.60%

Banner Corporate Events

Banner Announces Redemption of Subordinated Notes

On June 9, 2025, Banner Corporation announced its plan to redeem all outstanding 5.00% Fixed-to-Floating Rate Subordinated Notes due June 30, 2030, with a total principal amount of $100,000,000. The redemption, set for June 30, 2025, will be funded using the company’s excess cash, reflecting a strategic financial decision to manage its debt obligations.

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 Holds Annual Shareholders Meeting

Banner Corporation held its Annual Meeting of Shareholders on May 22, 2025, where several key proposals were voted on by shareholders. The meeting saw the election of directors for a one-year term, approval of executive compensation, and the decision to hold annual advisory votes on executive compensation. Additionally, the appointment of Moss Adams LLP as the independent registered public accounting firm for 2025 was ratified, and the adoption of the 2025 Employee Stock Purchase Plan was approved.

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 Reports Q1 2025 Earnings and Dividend Announcement

On April 16, 2025, Banner Corporation reported a net income of $45.1 million for the first quarter of 2025, a slight decrease from the previous quarter but an increase from the same period in 2024. The company declared a regular quarterly cash dividend of $0.48 per share, payable on May 9, 2025. Banner’s first quarter results reflect successful execution of its super community bank strategy, with benefits from loan growth and net interest margin expansion, despite challenges from lower non-interest income and increased expenses. The company’s strong credit metrics and robust capital base position it well for future growth.