Banner Corporation (BANR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Banner Corporation (BANR) Financial Services Profile

Banner Corporation, through Banner Bank, delivers commercial banking and financial services across the Western U.S., focusing on relationship-based banking with a diverse portfolio of deposit and loan products. With a history dating back to 1890, the company maintains a strong regional presence and commitment to community banking.

What Is the Investment Thesis for BANR?

Banner Corporation presents a stable investment opportunity within the regional banking sector. With a market capitalization of $2.40B and a P/E ratio of 11.0, the company demonstrates a solid financial foundation. A dividend yield of 3.05% offers an income stream for investors. The company's diversified loan portfolio and expansion across multiple Western states provide a buffer against regional economic downturns. Key growth catalysts include ongoing digital banking initiatives and strategic expansion into underserved markets. However, investors should monitor potential risks such as interest rate fluctuations and increasing competition from larger national banks.

Based on FMP financials and quantitative analysis

BANR Key Highlights

• Market Cap of $2.40B indicates a strong regional banking presence.
• P/E ratio of 11.0 suggests the company is reasonably valued compared to its earnings.
• Profit Margin of 24.8% highlights efficient operations and profitability.
• Gross Margin of 80.3% demonstrates strong revenue management.
• Dividend Yield of 3.05% provides a steady income stream for investors.

Who Are BANR's Competitors?

BANR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BANR's Key Strengths?

• Strong regional presence in the Western United States.
• Diversified loan portfolio.
• Experienced management team.
• Solid financial performance with consistent profitability.

What Are BANR's Weaknesses?

• Limited geographic diversification compared to larger national banks.
• Reliance on traditional banking model may hinder innovation.
• Vulnerable to interest rate fluctuations.
• Higher cost structure compared to fintech competitors.

What Could Drive BANR Stock Higher?

• Digital banking initiatives enhancing customer experience and attracting new customers.
• Expansion into underserved markets driving loan and deposit growth.
• Potential strategic acquisitions of smaller banks or credit unions.
• Growth in treasury management services generating fee income.
• Mortgage banking expansion through digital application processes and competitive rates.

What Are the Key Risks for BANR?

• Financial-distress signal — its Altman Z-Score of 0.29 sits in the distress zone (elevated bankruptcy risk).
• Interest rate fluctuations impacting net interest margin.
• Increasing competition from larger national banks and fintech companies.
• Economic downturns in the Western United States affecting loan quality.
• Regulatory changes and compliance costs increasing operational expenses.
• Cybersecurity risks and data breaches compromising customer data.

What Are the Growth Opportunities for BANR?

• Growth opportunity 1: Expansion into Underserved Markets: Banner Corporation can capitalize on growth opportunities by expanding its presence in underserved markets within its existing geographic footprint. Identifying regions with limited banking services and a growing population can drive loan and deposit growth. This strategy requires targeted marketing and community engagement to build trust and attract new customers. The market size for underserved banking is estimated at $50 billion, with a potential timeline of 3-5 years for significant market penetration.
• Growth opportunity 2: Digital Banking Initiatives: Investing in digital banking platforms and mobile applications can enhance customer experience and attract tech-savvy customers. Offering seamless online account management, mobile check deposits, and personalized financial advice can differentiate Banner Bank from competitors. The digital banking market is projected to reach $9 trillion by 2028, presenting a substantial growth opportunity for Banner Corporation. Implementation can be phased over 2-3 years.
• Growth opportunity 3: Strategic Acquisitions: Pursuing strategic acquisitions of smaller community banks or credit unions can expand Banner Corporation's market share and geographic reach. Identifying targets with complementary business models and a strong customer base can create synergies and drive revenue growth. The market for community bank acquisitions is estimated at $10 billion annually, with a timeline of 1-2 years for identifying and integrating suitable targets.
• Growth opportunity 4: Enhanced Treasury Management Services: Expanding treasury management services for businesses can generate fee income and strengthen customer relationships. Offering advanced cash management tools, fraud prevention services, and international payment solutions can attract and retain business clients. The treasury management services market is projected to reach $40 billion by 2027, providing a significant growth opportunity for Banner Corporation. Implementation can be phased over 2-3 years.
• Growth opportunity 5: Mortgage Banking Expansion: Growing 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, can increase revenue. Focusing on digital mortgage application processes and competitive interest rates can attract more customers. The mortgage banking market is projected to reach $2.5 trillion by 2028, representing a substantial growth opportunity for Banner Corporation. This can be achieved within 3-5 years.

What Opportunities Does BANR Have?

• Expansion into underserved markets.
• Investment in digital banking technologies.
• Strategic acquisitions of smaller banks or credit unions.
• Growth in treasury management services for businesses.

What Threats Does BANR Face?

• Increasing competition from larger national banks and fintech companies.
• Regulatory changes and compliance costs.
• Economic downturns in the Western United States.
• Cybersecurity risks and data breaches.

What Are BANR's Competitive Advantages?

• Strong regional presence and brand recognition in the Western United States.
• Long-standing customer relationships built over decades.
• Diversified loan portfolio mitigates risk.
• Experienced management team with a proven track record.
• Extensive branch network across multiple states.

What Does BANR Do?

Founded in 1890 and headquartered in Walla Walla, Washington, Banner Corporation operates as the bank holding company for Banner Bank. Banner Bank provides a comprehensive suite of commercial banking and financial products and services tailored to individuals, businesses, and public sector entities. The bank's history is rooted in serving the financial needs of communities across the Western United States. Over the years, Banner Corporation has expanded its reach through strategic acquisitions and organic growth, establishing a network of 150 branch offices and 18 loan production offices spanning Washington, Oregon, California, Idaho, and Utah as of December 31, 2021. The bank's core offerings include a variety of deposit instruments, such as interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit. Banner Bank also provides treasury management services and retirement savings plans. On the lending side, Banner Bank offers commercial real estate loans, construction and land development loans, residential mortgage loans, commercial business loans, agricultural loans, and consumer loans, including home equity lines of credit, automobile loans, and recreational vehicle loans. Furthermore, Banner Corporation engages in mortgage banking operations, originating and selling residential and small business administration loans. The company also provides electronic and digital banking services, reflecting its commitment to modern banking solutions.

What Products and Services Does BANR Offer?

• Provides commercial banking services to individuals, businesses, and public sector entities.
• Offers a variety of deposit accounts, including checking, savings, and money market accounts.
• Provides commercial real estate loans for owner-occupied and investment properties.
• Offers construction, land, and land development loans.
• Provides residential mortgage loans and home equity lines of credit.
• Offers commercial business and agricultural loans.
• Engages in mortgage banking operations through loan origination and sales.
• Provides electronic and digital banking services.

How Does BANR Make Money?

• Generates revenue through interest income from loans.
• Earns fee income from services such as treasury management and mortgage banking.
• Gains revenue from the sale of originated loans.
• Manages risk through diversified loan portfolio and credit underwriting standards.

What Industry Does BANR Operate In?

Banner Corporation operates within the regional banking sector, which is characterized by intense competition and evolving customer expectations. The industry is undergoing digital transformation, with banks increasingly investing in technology to enhance customer experience and streamline operations. Regulatory compliance and interest rate sensitivity are significant factors influencing the performance of regional banks. Banner Corporation's focus on relationship-based banking and diversified loan portfolio positions it to compete effectively within this landscape. The regional banking sector is expected to see moderate growth, driven by economic expansion in the Western United States.

Who Are BANR's Key Customers?

• Individuals seeking personal banking services.
• Small and medium-sized businesses requiring commercial loans and treasury management.
• Real estate investors seeking financing for commercial properties.
• Agricultural businesses needing loans for operations and equipment.
• Public sector entities requiring banking services.

Banner Corporation Financial Trajectory

Banner Corporation (BANR) reported $216.9M in revenue for Q1 2026, a decline of 1.5% compared to the prior quarter. The company recorded net income of $54.7M, with diluted EPS of $1.60. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Financial Services. Across the four most recent quarters, BANR averaged $1.48 in diluted EPS.

Company Profile

Banner Corporation operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Walla Walla, US. The company is led by CEO Mark J. Grescovich. BANR has traded publicly since 1995.

How Banner Corporation Is Valued

Banner Corporation carries a market capitalization of $2.40B, placing it in the mid-cap category. Relative to its peer group, BANR's quantitative score of 92/100 is roughly in line with the peer average of 91/100.

ROE 11%Key Financial Metrics

Return on equity for Banner Corporation stands at 10.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.3%, showing how much profit it generates from its asset base. BANR trades at a trailing price-to-earnings ratio of 11.04, below the Financial Services sector average of ~18x. Its free cash flow yield is 13.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.11 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 9.1%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 8/9Financial Health

Banner Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.29 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Banner Corporation revenue of about $720.6M for fiscal 2026, with EPS near $6.16. The estimate reflects 3 contributing analysts.

Net buyingInsider Activity

Over the past six months, Banner Corporation insiders filed 30 SEC Form 4 transactions — 18 sales and 12 purchases. On net that is roughly 11K shares acquired (about $683K) — insiders putting money in tends to read as conviction.

BANR Financials

BANR Latest News

BANR Analyst Consensus

BANR MoonshotScore

What Investors Ask About Banner Corporation (BANR) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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