Banner Corporation (BANR)
🔔 Watch stock
symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Buying today means buying a solid, thickly capitalized regional bank at 1.17 times book value — and at the same time two open questions, each with a date attached. First: does the merger clear the vote on August 12, 2026, and what does integration cost? Second: does the margin hold once deposits stop getting cheaper? Watching here means checking the next filings for three numbers. What is the net interest margin (Q2 2026: 4.13 percent)? Where do non-performing loans and their coverage stand ($54.8 million, 295 percent)? And do Federal Home Loan Bank advances still sit at $320.0 million, or back at zero? Anyone here for the $2.08 annual dividend will find it well cushioned at a payout ratio of just 34.2 percent. The decision is yours.
symbol.quality_note
Banner Bank of Walla Walla is earning again: net interest margin up from 3.75 percent in 2024 to 4.13 percent in the second quarter of 2026, and 2025 net income up to $195.4 million. Our turnaround scanner put the stock on our research list on the morning of July 25, 2026 — and dropped it again the same evening, because the mandatory Altman Z score barely works on a bank balance sheet. Yet in the middle of that recovery, on April 30, 2026, the bank signed an acquisition that costs up to 2,699,587 new shares — and that gets decided on August 12, 2026. We read the filings before the votes are counted.
Read the analysis
Stock Watch
This analysis is as of July 25, 2026. Stock Watch will tell you what's changed at BANR since then.
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Appears in These Scanners
This stock currently matches 3 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 70.40 $ — 86% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
ThreatenedBanner nennt im Geschäftsbericht 2025 generative und agentische KI zweimal als konkreten Wettbewerbsdruck auf das eigene Einlagen- und Kreditgeschäft — im Kapitel Wettbewerb und als eigenen Risikofaktor; eine KI-Umsatzquelle gibt es nicht.
View the full file — quotes, sources, reviewed filings
„In addition, new technological developments, including the development and use of generative and agentic artificial intelligence, are rapidly evolving; we expect these technologies will continue to impact the competitive landscape, possibly to an increasing extent."
Darüber hinaus entwickeln sich neue technologische Entwicklungen rasant, darunter die Entwicklung und Nutzung generativer und agentischer künstlicher Intelligenz; wir erwarten, dass diese Technologien den Wettbewerb weiterhin beeinflussen werden, möglicherweise in zunehmendem Maße.
„Competitive risks also arise from differences in adoption of new technological developments, including generative and agentic artificial intelligence. If our competitors gain an advantage by using such technologies, our ability to compete effectively and our results of operations could be adversely impacted."
Wettbewerbsrisiken entstehen auch aus Unterschieden bei der Einführung neuer technologischer Entwicklungen, darunter generative und agentische künstliche Intelligenz. Wenn unsere Wettbewerber sich durch den Einsatz solcher Technologien einen Vorteil verschaffen, könnten unsere Fähigkeit zum wirksamen Wettbewerb und unser Betriebsergebnis nachteilig beeinflusst werden.
„The increasing adoption of AI in financial services presents significant opportunities but also introduces a range of risks that could impact our operations, regulatory compliance, and client trust. AI introduces model risk, where flawed algorithms or biased data could result in compliance violations or discriminatory outcomes in lending or client service."
Die zunehmende Einführung von KI im Finanzdienstleistungssektor eröffnet erhebliche Chancen, bringt aber auch eine Reihe von Risiken mit sich, die unseren Betrieb, die Einhaltung aufsichtsrechtlicher Vorgaben und das Vertrauen unserer Kunden beeinträchtigen könnten. KI bringt Modellrisiken mit sich, bei denen fehlerhafte Algorithmen oder verzerrte Daten zu Compliance-Verstößen oder diskriminierenden Ergebnissen in der Kreditvergabe oder im Kundenservice führen könnten.
Filings Reviewed: 10-Q 2026-05-05 · 10-Q 2025-11-04 · 10-Q 2025-08-05 · 10-Q 2025-05-06 · 10-K 2026-02-25 · 10-K 2025-02-26
Rated on July 25, 2026 · How the Rating Is Built
Analysts & Price Target
The price target sits 8.2% above the current price.
- Consensus
- Sell
- Analyst Ratings
- 5
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 6.19 | 6.03 – 6.28 | 723 | 8.5% | 5 |
| 12/31/2027 | 6.70 | 6.44 – 6.85 | 799 | 8.3% | 5 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Next Reporting Date
- Expected Earnings per Share
- 1.56 $
Expected date of the next quarterly or annual figures. Dates do shift occasionally — only the invitation issued by the company is binding.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
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· Total · per year
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The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q3 | 1.30 | -9.10 | 213 | 11.40 | 21.20 | 64 | 60 |
| 2024: Q4 | 1.33 | -0.70 | 215 | 9.90 | 21.60 | 99 | 96 |
| 2026: Q2 | 1.44 | 6.70 | 59 | -72.90 | 82.80 | – | – |
| 2025: Q1 | 1.29 | 5.70 | 211 | 8.40 | 21.40 | 57 | 56 |
| 2025: Q2 | 1.35 | 15.40 | 218 | 6.20 | 20.90 | 55 | 52 |
| 2025: Q3 | 1.52 | 16.90 | 171 | -19.80 | 31.30 | 120 | 119 |
| 2025: Q4 | 1.55 | 16.50 | 220 | 2.50 | 23.30 | 25 | 22 |
| 2026: Q1 | 1.59 | 23.30 | 217 | 3.00 | 25.20 | 110 | 109 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 472 | 130 | 85 | 2.52 | -76 | 9,644 | 9,794 |
| 2017 | 488 | 151 | 61 | 1.84 | 347 | 9,664 | 9,763 |
| 2018 | 550 | 165 | 137 | 4.15 | 31 | 11,217 | 11,871 |
| 2019 | 620 | 183 | 146 | 4.18 | 149 | 12,035 | 12,604 |
| 2020 | 637 | 142 | 116 | 3.26 | 125 | 14,607 | 15,032 |
| 2021 | 631 | 247 | 201 | 5.76 | 302 | 16,477 | 16,805 |
| 2022 | 643 | 241 | 195 | 5.67 | 238 | 15,554 | 15,833 |
| 2023 | 742 | 227 | 184 | 5.33 | 257 | 1,653 | 15,670 |
| 2024 | 827 | 209 | 169 | 4.88 | 293 | 1,774 | 16,200 |
| 2025 | 819 | 241 | 195 | 5.68 | 257 | 1,946 | 16,354 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
Core deposits make up 89 percent of $13.79 billion, and total deposit costs were 1.33 percent in the second quarter of 2026 against 1.47 percent a year earlier. Common equity Tier 1 of 12.82 percent and total capital of 14.67 percent as of June 30, 2026 sit far above regulatory thresholds; unused liquidity lines total roughly $5.2 billion.
Net interest margin rose from 3.75 percent (2024) through 3.96 percent (2025) to 4.13 percent in the second quarter of 2026, and annual net income from $168.9 million to $195.4 million. Return on average assets was 1.21 percent in 2025 — a good level for a regional bank.
The engine is the rate cycle: interest expense jumped from $125.6 million to $224.4 million in 2024 and has been falling since, while the yield on interest-earning assets was essentially flat between the second quarter of 2025 and the second quarter of 2026 at 5.40 and 5.41 percent. The cost line moved against the bank most recently: non-interest expense of $108.0 million and an efficiency ratio of 62.80 percent in the second quarter of 2026, after $102.6 million and 60.60 percent in the prior quarter.
Non-performing loans rose from $43.0 million to $54.8 million over twelve months, and allowance coverage fell from 373 percent to 295 percent as of June 30, 2026. Working the other way, substandard loans fell from $235.0 million to $218.4 million, and net charge-offs in the quarter came to just $101,000. Non-performing assets stand at 0.36 percent of total assets.
Up to 2,699,587 new shares are registered for the Pacific Financial Corporation acquisition agreed on April 30, 2026 — 7.9 percent of the 33,984,909 shares outstanding on June 30, 2026. Closing depends on a two-thirds vote of target shareholders on August 12, 2026, on approvals from the Federal Reserve, the FDIC and the Washington State Division of Banks, and on an adjusted equity floor of $124,269,000; the termination fee is $6.3 million.
Equity carried $209.5 million of accumulated unrealized losses as of June 30, 2026 — a good tenth of the $2.00 billion of common equity. The effective duration of the securities portfolio is 6.1 years. On top of that, the bank took $320.0 million of Federal Home Loan Bank advances at an average 3.88 percent during the second quarter of 2026, after carrying none at March 31, 2026.
Banner Corporation is the recovery trap in its purest form: the rebound is real and documented in every figure — net interest margin from 3.75 percent (2024) to 4.13 percent in the second quarter of 2026, annual net income from $168.9 million to $195.4 million, common equity Tier 1 of 12.82 percent, 89 percent core deposits. But its engine is the rate cycle, not a better business: interest expense is falling while the loan yield stands still. And mid-recovery Banner is acquiring Pacific Financial Corporation for up to 2,699,587 new shares — 7.9 percent of dilution, decided on August 12, 2026. Add $209.5 million of unrealized losses inside equity and non-performing loans up 27 percent over twelve months. Not investment advice.
- Banner reached our research list through our in-house stock scanner "Turnaround Candidates": rank 13 in the U.S. selection (62 hits), turnaround check 7 of 8, on the morning of July 25, 2026. By the evening of that same day the stock had dropped out of this scanner, which has shown 61 hits since. The decisive factor was not the turnaround check, which still stands at 7 of 8, but the mandatory pillar "survival secured": it requires an Altman Z score of at least 1.1 while the data set reports -0.74 for Banner. The Altman Z was built for industrial balance sheets and says little about a bank — Banner has an 11.9 percent equity ratio, a 12.82 percent common equity tier 1 ratio and counts as "well capitalized" under U.S. banking rules. The stock does still appear in the "Benjamin Graham: Defensive Investor" and "David Dreman: Contrarian" scanners (as of July 25, 2026). Scanner lists are recalculated daily, so the ranking is a dated snapshot. The turnaround check measures the direction of metrics, not their level — seven of eight ticks say nothing about whether a metric is high enough.
- Bank metrics are not comparable to industrial metrics: a bank's "revenue" is the sum of net interest income and non-interest income ($172.0 million in the second quarter of 2026), not the $202.7 million of interest income. Gross margin, free cash flow or net debt have no meaningful equivalent at a lender; what matters is net interest margin, capital ratios, credit provisions and deposit mix.
- Data and recency: the most recent periodic report is the quarterly report (10-Q) for March 31, 2026, filed May 5, 2026. Every document filed after it was reviewed — the Form 8-K of May 22, 2026 (annual meeting), the Form S-4 registration statement of June 3, 2026 with its amendment of June 15, the notice of effectiveness of June 16, the 424B3 prospectus of June 17, the Form 425 of July 20 and the Form 8-K of July 22, 2026 with results for June 30, 2026. The share count comes from the most recent document naming one (33,984,909 as of June 30, 2026). Valuation figures are magnitudes as of July 25, 2026, not daily prices.
About the Company
Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of 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; one- to four-family residential real estate lending; construction, land, and land development loans; commercial business loans; agricultural mortgage and business loans; 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; and loan solicitation and processing services. In addition, it provides electronic and digital banking services comprising debit cards and ATM programs, internet banking, remote deposit capture, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.
| Employees | 1,888 |
|---|---|
| Headquarters | Walla Walla, WA |
| Address | 10 South First Avenue, 99362 Walla Walla, United States |
| Phone | 509 527 3636 |
| Website | bannerbank.com |
| IPO Date | 24. Aug 1995 |
| ISIN | US06652V2088 |
| Stock Split | 1:7 on 06/01/2011 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Mark J. Grescovich | President, CEO & Director | 1964 |
| Robert G. Butterfield | Executive VP, CFO & Treasurer | 1969 |
| Cynthia D. Purcell | Executive VP and Chief Strategy & Administration Officer of Banner Bank | 1957 |
| James M. Costa | Executive VP & COO of Banner Bank | 1969 |
| Mark Charles Borrecco | EVP & Chief Banking Officer | 1972 |
| Janet M. Brown | Executive VP & Chief Information Officer | 1968 |
| Rich Arnold | Head of Investor Relations | – |
| Sherrey L. Luetjen | Executive VP, General Counsel, Ethics Officer & Secretary | 1972 |
| Kayleen R. Kohler | Executive Vice President of Human Resources | 1973 |
| Jill M. Rice | Executive VP & Chief Credit Officer | 1966 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.