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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on BANR

Banner Corporation's recent performance was negatively impacted by a decline in its stock price following a strong Q4 earnings beat. Despite reporting quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $1.22 per share, the company's revenue growth was slower than expected. Additionally, the company's credit costs and loan loss provisions rose, indicating potential challenges in its lending business. However, the company's management expressed optimism about its future prospects, citing a strong balance sheet and a growing pipeline of new business opportunities.

1.c. Company Highlights

2. Banner Corp. Shines: Strong Earnings, Solid Margin, and Shareholder‑Friendly Moves

Banner Corporation delivered a robust first‑quarter 2026 performance, net profit of $54.7 million translating to $1.60 per diluted share—well above the $1.38 estimate and a 23 % increase YoY. Core earnings rose to $66.3 million on $169 million of revenue, up 6 % from Q1 2025, while the net interest margin remained stable. The company’s P/TBV sits at 1.15, and its dividend yield is 2.96 %, underscoring a solid valuation profile for a bank with strong capital and earnings momentum.

Publication Date: Apr -27

📋 Highlights
  • Net Profit Growth:: Net profit available to common shareholders was $54.7M ($1.60/share) in Q1 2026, up from $1.30/share in Q1 2025 and $1.49/share in Q4 2025.
  • Core Revenue Growth:: Core revenue from operations rose 6% YoY to $169M, with a return on average assets of 1.37%.
  • Dividend Increase:: Declared a 4% core dividend hike to $0.52/share and repurchased 250,000 shares.
  • Loan Production vs. Portfolio Decline:: Loan originations surged 61% YoY, but portfolio loans fell $14M due to commercial real estate and ag portfolio payoffs.
  • Deposit Growth & Equity Strength:: Deposits rose $97M (5.5% annualized core deposit growth), and tangible common equity ratio hit 9.97%.

Revenue & Core Earnings

Core operating revenue grew 6 % year‑over‑year, driven by a 61 % jump in loan originations and a 5.5 % annualized rise in core deposits. Core earnings of $66.3 million outpaced the prior year’s $60.6 million, reflecting disciplined expense management and a 1.37 % return on average assets.

Deposit & Loan Dynamics

The bank’s deposit base expanded by $97 million, with core deposits accounting for 89 % of total deposits. The loan‑to‑deposit ratio held at 85 %, providing ample capacity for future growth. While portfolio loans dipped $14 million due to commercial real‑estate payoffs, loan balances remained flat, balancing production with timely paydowns.

Credit Quality & Provisioning

Credit metrics stayed healthy: delinquency at 0.56 % and non‑performing assets at 0.32 % of total loans. The allowance for credit losses, $160.4 million, covers 1.37 % of total loans, ensuring a buffer against potential downturns.

Capital Management & Shareholder Returns

Banner repurchased 250,000 shares and increased the core dividend by 4 % to $0.52 per share. The tangible common equity ratio climbed to 9.97 %, approaching the 10 % target, positioning the firm to support future capital initiatives or strategic acquisitions.

Future Outlook & Growth Drivers

Management projects flat NIM in Q2 due to funding cost upticks, with a rebound expected in Q3 as yields rise. Loan production is projected to grow mid‑single digits in 2026, while payoffs will decelerate, supporting steady earnings expansion.

Technology & Innovation

The fintech council is advancing AI deployments in BSA/AML and call centers, while maintaining rigorous data integrity standards. Investment in loan and deposit origination systems aims to enhance operational efficiency and client experience.

Valuation Snapshot

With a P/TBV of 1.15 and dividend yield of 2.96 %, Banner trades at a modest multiple, offering upside potential as earnings normalize and capital allocation strategies unfold. The firm’s strong balance sheet, disciplined credit portfolio, and shareholder‑friendly policy position it well for sustainable long‑term value creation.

3. NewsRoom

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Picard Medical / SynCardia Recognizes Banner Health as Global Leader and Supporter in the Advancement of Total Artificial Heart Technology

12:00

Source: globenewswire.com

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Is Banner (BANR) Outperforming Other Finance Stocks This Year?

Apr -24

Source: zacks.com

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Banner Corporation (BANR) Q1 2026 Earnings Call Transcript

Apr -23

Source: seekingalpha.com

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Compared to Estimates, Banner (BANR) Q1 Earnings: A Look at Key Metrics

Apr -22

Source: zacks.com

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Banner (BANR) Q1 Earnings and Revenues Surpass Estimates

Apr -22

Source: zacks.com

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Banner Corporation Reports Net Income of $54.7 Million, or $1.60 Per Diluted Share, for First Quarter 2026; Increases Quarterly Cash Dividend Declared by 4% to $0.52 Per Share

Apr -22

Source: businesswire.com

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Head to Head Review: Banner (NASDAQ:BANR) vs. Security Bancorp (OTCMKTS:SCYT)

Apr -21

Source: defenseworld.net

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Banner Corporation (NASDAQ:BANR) Receives Consensus Rating of “Moderate Buy” from Brokerages

Apr -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.50%)

6. Segments

Banking and Related Activities

Expected Growth: 7.5%

Banner Corporation's 7.5% growth in Banking and Related Activities is driven by increasing loan demand, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

7. Detailed Products

Deposit Accounts

Checking and savings accounts for individuals and businesses, offering convenient banking services and competitive interest rates.

Loans and Credit

Personal and commercial loans, lines of credit, and credit cards for various purposes, including mortgages, home equity, and construction loans.

Investment and Insurance Services

Wealth management, investment, and insurance products, including brokerage services, retirement accounts, and life insurance.

Treasury Management

Cash management and treasury services for businesses, including account management, payment processing, and fraud prevention.

Online and Mobile Banking

Digital banking platforms for individuals and businesses to manage their accounts, transfer funds, and pay bills online or through mobile devices.

8. Banner Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Banner Corporation is medium due to the presence of alternative banking services and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers for Banner Corporation is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Banner Corporation is medium due to the presence of multiple suppliers of technology and services, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants for Banner Corporation is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Banner Corporation is high due to the presence of multiple competitors in the banking industry, including large national banks and regional banks.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.14%
Debt Cost 3.95%
Equity Weight 70.86%
Equity Cost 9.08%
WACC 7.58%
Leverage 41.13%

11. Quality Control: Banner Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
FS Bancorp

A-Score: 6.3/10

Value: 7.4

Growth: 7.4

Quality: 6.0

Yield: 6.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
First Busey

A-Score: 6.1/10

Value: 6.1

Growth: 5.2

Quality: 5.6

Yield: 8.0

Momentum: 3.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Banner

A-Score: 5.9/10

Value: 5.6

Growth: 5.0

Quality: 7.8

Yield: 6.0

Momentum: 3.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
CF Bankshares

A-Score: 5.8/10

Value: 8.2

Growth: 6.9

Quality: 6.5

Yield: 2.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Park National

A-Score: 5.6/10

Value: 3.7

Growth: 5.4

Quality: 6.9

Yield: 7.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
HomeTrust Bancshares

A-Score: 5.4/10

Value: 6.5

Growth: 8.0

Quality: 5.0

Yield: 2.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.84$

Current Price

66.84$

Potential

-0.00%

Expected Cash-Flows