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Banner Corp. (BANR)
NASDAQ:BANR
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Banner
(NASDAQ:BANR)71Outperform
Banner (BANR) vs. S&P 500 (SPY)
Market Cap
$2.20B
Dividend Yield3%
Average Volume (3M)201.41K
Price to Earnings (P/E)13.1
Beta (1Y)1.15
Revenue Growth11.14%
EPS Growth-8.38%
CountryUS
Employees1,966
SectorFinancial
Sector Strength93
IndustryBanking
Share Statistics
EPS (TTM)4.88
Shares Outstanding34,459,830
10 Day Avg. Volume232,874
30 Day Avg. Volume201,411
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.73
Price to Cash Flow (P/CF)5.60
P/FCF Ratio3.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$77.00Price Target Upside20.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Banner Business Overview & Revenue Model
Company DescriptionBanner Corporation (BANR) is a bank holding company primarily engaged in providing commercial banking services to individuals, businesses, and public entities. Headquartered in Walla Walla, Washington, Banner operates through its subsidiary, Banner Bank, offering a comprehensive range of financial products and services including consumer and commercial loans, deposit services, and wealth management solutions. The company focuses on serving customers across the Western United States, with a strong presence in Washington, Oregon, Idaho, and California.
How the Company Makes MoneyBanner Corporation generates revenue primarily through interest income from its lending activities, which include commercial and consumer loans, as well as real estate loans. The company also earns income from service charges and fees associated with deposit accounts and other banking services. Additionally, Banner benefits from non-interest income sources such as wealth management services and mortgage banking activities. Key revenue streams include net interest income, which is the difference between the interest earned on loans and the interest paid on deposits, and non-interest income from fees and service charges. Strategic acquisitions and organic growth in its core markets also contribute to Banner's earnings, alongside maintaining strong relationships with local communities and fostering customer loyalty.
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.75
Positive
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.68
Positive
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.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 602.94M | 620.41M | 623.75M | 607.16M | 598.67M | Gross Profit |
| 601.02M | 620.41M | 623.75M | 607.16M | 598.67M | EBIT |
| 259.52M | 227.09M | 240.78M | 246.59M | 142.45M | EBITDA |
| 0.00 | 248.72M | 262.99M | 270.51M | 168.31M | Net Income Common Stockholders |
| 168.90M | 183.62M | 195.38M | 201.05M | 115.93M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 501.86M | 254.46M | 3.03B | 5.77B | 3.56B | Total Assets |
| 16.20B | 15.67B | 15.83B | 16.80B | 15.03B | Total Debt |
| 147.75M | 713.80M | 279.01M | 328.13M | 424.52M | Net Debt |
| -354.10M | 459.34M | 35.95M | -1.81B | -809.66M | Total Liabilities |
| 14.43B | 14.02B | 279.01M | 328.13M | 424.52M | Stockholders Equity |
| 1.77B | 1.65B | 1.46B | 1.69B | 1.67B |
| Cash Flow | Free Cash Flow | |||
| 279.44M | 242.55M | 223.33M | 291.08M | 112.58M | Operating Cash Flow |
| 293.19M | 257.20M | 238.05M | 301.58M | 125.39M | Investing Cash Flow |
| -51.16M | 191.93M | -1.44B | -1.02B | -1.45B | Financing Cash Flow |
| 325.38M | -437.73M | -684.73M | 1.61B | 2.26B |
Banner Technical Analysis
Negative
63.92
Price Trends
68.07
Negative
68.75
Negative
60.91
Positive
Market Momentum
-1.31
Positive
30.59
Neutral
13.44
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 63.92 is below the 20-day moving average (MA) of 67.41, below the 50-day MA of 68.07, and above the 200-day MA of 60.91, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 30.59 is Neutral, neither overbought nor oversold. The STOCH value of 13.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.58B | 9.88 | 10.44% | ― | -3.61% | -29.58% | |
71 Outperform | $2.20B | 13.11 | 9.86% | 3.00% | 11.14% | -8.38% | |
65 Neutral | $5.25B | 9.82 | 10.55% | 5.75% | 7.84% | 54.79% | |
64 Neutral | $14.34B | 10.61 | 9.28% | 4.07% | 18.04% | -9.54% | |
63 Neutral | $5.19B | 23.28 | 14.39% | 1.98% | 18.54% | 12.22% | |
60 Neutral | $8.54B | 10.90 | 12.32% | 1.94% | 13.60% | 8.85% |
* Financial Sector Average
Performance Comparison
BANR
Banner
62.95
17.82
39.49%
COLB
Columbia Banking System
24.51
6.10
33.13%
FFIN
First Financial Bankshares
35.57
4.12
13.10%
WAL
Western Alliance
77.31
19.42
33.55%
CUBI
Customers Bancorp
48.06
-5.72
-10.64%
Banner Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -8.27% | Next Earnings Date: Apr 16, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong core performance, stable revenue growth, and recognition from industry bodies. However, challenges such as increased delinquent loans and impacts from the California wildfires were notable concerns.Highlights
Solid Revenue Growth
Banner Corporation reported fourth quarter revenue from core operations of $160 million, up from $154 million in the third quarter of 2024.
Strong Core Deposit Base
Core deposits represent 89% of total deposits, indicating a stable funding source.
Positive Net Income Trends
Net profit available to common shareholders was $46.4 million or $1.34 per diluted share for Q4 2024, up from $1.30 per share in Q3 2024.
Recognition and Awards
Banner was named one of America's 100 Best Banks and Best Banks in the World by Forbes, and received several other accolades.
Lowlights
Increase in Delinquent and Adversely Classified Loans
Delinquent loans rose to 0.49%, up 9 basis points from the previous quarter, and adversely classified loans increased to 1.69% of total loans.
Impacts of California Wildfires
The wildfires in California resulted in limited exposure of $1 million in HELOC commitments, but personal losses for clients were significant.
Loan Originations Decline
Loan originations declined moderately due to muted construction and development loan closings, along with reduced consumer demand.
Company Guidance
During the Banner Corporation's fourth quarter 2024 earnings call, the company provided guidance that highlighted several key financial metrics and strategic initiatives. Banner Corporation reported a net profit of $46.4 million, or $1.34 per diluted share, for the quarter, marking an increase from $1.24 per share in the same quarter of 2023 and $1.30 per share in the third quarter of 2024. For the full year, net income was $168.9 million. The company's core earnings for 2024 were $223.2 million, with fourth-quarter revenue from core operations at $160 million, compared to $154 million in the previous quarter, and $615 million for the year. Banner's core deposit base remained strong, representing 89% of total deposits, contributing to a net interest margin of 3.82% and a return on average assets of 1.15% for the fourth quarter. Additionally, the company announced a core dividend of $0.48 per share and emphasized its commitment to environmental, social, and governance (ESG) principles, as well as marketplace recognition as one of America's 100 Best Banks by Forbes and other accolades. Looking forward, Banner Corporation is targeting mid-single-digit loan growth for 2025, despite uncertainties related to interest rates, immigration reform, and tariffs.Banner Corporate Events
DividendsFinancial Disclosures
Banner Reports Q4 2024 Growth and Dividend Announcement
Positive
Jan 22, 2025
On January 22, 2025, Banner Corporation reported a net income of $46.4 million for the fourth quarter of 2024, showing an increase from the previous quarter and the same quarter a year prior. The company announced a quarterly cash dividend of $0.48 per share, payable on February 14, 2025. Banner’s financial performance benefited from loan growth and lower funding costs, although this was partially offset by a declining interest rate environment. The company maintained strong credit metrics and a robust capital base, with core deposits representing a significant portion of total deposits, highlighting a resilient position in a competitive market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.